Subtitle 1. General Provisions

Cross References. Annual list of eligible banks for deposits by local governments, § 19-8-105.

Emergency temporary location for political subdivisions, § 14-14-308.

Immunity from tort liability, § 16-120-101 et seq.

Chapter 1 General Provisions

A.C.R.C. Notes. Acts 2015, No. 1070, § 71, provided: “ARKADELPHIA 2025 COMMISSION.

“(a) There is hereby created the Arkadelphia 2025 Commission to be composed of the Mayor, City Manager, and Chairman of the City Planning Commission of Arkadelphia, the Superintendent of the Arkadelphia Public School District, the member of the Arkansas House of Representatives representing the Arkadelphia area, the member of the Arkansas Senate representing the Arkadelphia area, the County Judge of Clark County, the Presidents of Ouachita Baptist University and Henderson State University, the President and Executive Secretary of the Arkadelphia Chamber of Commerce, and at least an equal number of citizens of the Arkadelphia area to be appointed by the members just named. The Commission shall be as broadly based as possible to represent all the diverse interests and to represent every race, gender, income level, and geographic area.

“(b) The Commission shall have the following powers and duties:

“(1) Determine the immediate needs of Arkadelphia and its surrounding area;

“(2) Determine the long-range needs and opportunities of the Arkadelphia area;

“(3) Seek and expend funds from all sources, both public and private;

“(4) Coordinate the activities of the various federal, state, and local agencies as well as the private sector in providing for the economic, social, and physical needs of the area;

“(5) To serve as the lead agency in the rebuilding and revitalization of the Arkadelphia area;

“(6) Adopt bylaws and establish goals; and

“(7) Perform all other powers and functions necessary to fulfill its duties.

“(c) The Commission shall be subject to audit by the Division of Legislative Audit [Arkansas Legislative Audit].

“The provisions of this section shall be in effect only from July 1, 2015 through June 30, 2016.”

Acts 2016, No. 251, § 71, provided: “ARKADELPHIA 2025 COMMISSION.

“(a) There is hereby created the Arkadelphia 2025 Commission to be composed of the Mayor, City Manager, and Chairman of the City Planning Commission of Arkadelphia, the Superintendent of the Arkadelphia Public School District, the member of the Arkansas House of Representatives representing the Arkadelphia area, the member of the Arkansas Senate representing the Arkadelphia area, the County Judge of Clark County, the Presidents of Ouachita Baptist University and Henderson State University, the President and Executive Secretary of the Arkadelphia Chamber of Commerce, and at least an equal number of citizens of the Arkadelphia area to be appointed by the members just named. The Commission shall be as broadly based as possible to represent all the diverse interests and to represent every race, gender, income level, and geographic area.

“(b) The Commission shall have the following powers and duties:

“(1) Determine the immediate needs of Arkadelphia and its surrounding area;

“(2) Determine the long-range needs and opportunities of the Arkadelphia area;

“(3) Seek and expend funds from all sources, both public and private;

“(4) Coordinate the activities of the various federal, state, and local agencies as well as the private sector in providing for the economic, social, and physical needs of the area;

“(5) To serve as the lead agency in the rebuilding and revitalization of the Arkadelphia area;

“(6) Adopt bylaws and establish goals; and

“(7) Perform all other powers and functions necessary to fulfill its duties.

“(c) The Commission shall be subject to audit by the Division of Legislative Audit.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Subchapter 1 — General Provisions

A.C.R.C. Notes. Acts 2020, No. 2, § 68, provided: “ARKADELPHIA 2025 COMMISSION.

“(a) There is hereby created the Arkadelphia 2025 Commission to be composed of the Mayor, City Manager, and Chairman of the City Planning Commission of Arkadelphia, the Superintendent of the Arkadelphia Public School District, the member of the Arkansas House of Representatives representing the Arkadelphia area, the member of the Arkansas Senate representing the Arkadelphia area, the County Judge of Clark County, the Presidents of Ouachita Baptist University and Henderson State University, the President and Executive Secretary of the Arkadelphia Chamber of Commerce, and at least an equal number of citizens of the Arkadelphia area to be appointed by the members just named. The Commission shall be as broadly based as possible to represent all the diverse interests and to represent every race, gender, income level, and geographic area.

“(b) The Commission shall have the following powers and duties:

“(1) Determine the immediate needs of Arkadelphia and its surrounding area;

“(2) Determine the long-range needs and opportunities of the Arkadelphia area;

“(3) Seek and expend funds from all sources, both public and private;

“(4) Coordinate the activities of the various federal, state, and local agencies as well as the private sector in providing for the economic, social, and physical needs of the area;

“(5) To serve as the lead agency in the rebuilding and revitalization of the Arkadelphia area;

“(6) Adopt bylaws and establish goals; and

“(7) Perform all other powers and functions necessary to fulfill its duties.

“(c) The Commission shall be subject to audit by the Division of Legislative Audit.

“The provisions of this section shall be in effect only from July 1, 2020 through June 30, 2021”.

Effective Dates. Acts 2019, No. 1076, § 1: effective by its own terms Jan. 1, 2020.

14-1-101. Sport shooting ranges and sports facilities.

  1. A sport shooting range or sports facility that is not in violation of a state law or an ordinance of a local unit of government prior to the enactment of a new ordinance of a local unit of government affecting the range or facility may continue to operate even if, at or after the time of enactment of the new ordinance affecting the range or facility, the operation is not in compliance with the new ordinance.
  2. No new ordinance of a local unit of government shall prohibit a sport shooting range or sports facility that is in existence on August 12, 2005, from doing any of the following within its existing geographic boundaries:
    1. Repairing, remodeling, or reinforcing any building or improvement as may be necessary in the interest of public safety or to secure the continued use of the building or improvement;
      1. Reconstructing, repairing, rebuilding, or resuming the use of a facility or building damaged by fire, collapse, explosion, act of nature, or act of war occurring after August 12, 2005.
      2. The reconstruction, repair, or rebuilding shall be completed within one (1) year following the date of the damage or settlement of any property damage claim. If reconstruction, repair, or rebuilding is not completed within one (1) year, the reconstruction, repair, or rebuilding may be terminated in the discretion of the local unit of government;
    2. Expanding or enhancing its membership or opportunities for public participation; or
    3. Reasonably expanding or increasing facilities or activities.
  3. Except as otherwise provided in this section, this section shall not prohibit a local unit of government from regulating the location and construction of a sport shooting range or sports facility.
  4. As used in this section:
    1. “Local unit of government” means a county, city of the first class, city of the second class, or incorporated town;
    2. “New ordinance” also includes an ordinance or an amendment to an existing ordinance;
    3. “Sport shooting range” means an area designed and operated for the use of rifles, shotguns, pistols, silhouettes, skeet, trap, black powder, or any other similar sport shooting; and
      1. “Sports facility” means a baseball field, basketball court, gymnasium, golf course, soccer field, swimming pool, tennis court, or other facility for recreational sports.
      2. “Sports facility” does not include a facility for go-carts, motorcycles, motor vehicles, or other motorized conveyances.

History. Acts 2005, No. 1011, § 1.

14-1-102. Noncriminal fingerprinting — Fee.

A local law enforcement agency may charge a reasonable fee for noncriminal fingerprinting services to offset the cost of expenses associated with offering a noncriminal fingerprinting service.

History. Acts 2015, No. 163, § 1.

14-1-103. Sanctuary policies prohibited — Definition. [Effective January 1, 2020.]

    1. A municipality shall not enact or adopt a sanctuary policy.
    2. A municipality that enacts or adopts a sanctuary policy is ineligible for discretionary moneys provided through funds or grants administered by the state until the sanctuary policy is repealed or no longer in effect.
  1. As used in this section, “sanctuary policy” means an order, ordinance, or law enforcement policy, whether formally enacted or informally adopted by custom or practice, that:
    1. Limits or prohibits a municipal official or person employed by the municipality from communicating or cooperating with federal agencies or officials to verify or report the immigration status of a person within the municipality;
    2. Grants to illegal immigrants the right to lawful presence or status within the municipality in violation of federal law;
    3. Violates 8 U.S.C. § 1373, as in effect January 1, 2019;
    4. Restricts or imposes any conditions upon the municipality's cooperation or compliance with detainers or other requests from United States Immigration and Customs Enforcement to maintain custody of an immigrant or to transfer an immigrant to the custody of United States Immigration and Customs Enforcement;
    5. Requires United States Immigration and Customs Enforcement to obtain a warrant or demonstrate more than probable cause before complying with detainers or other legal and valid requests from United States Immigration and Customs Enforcement to maintain custody of an immigrant or to transfer an immigrant to the custody of United States Immigration and Customs Enforcement; or
    6. Prevents law enforcement officers from asking a person about his or her citizenship or immigration status.
    1. Upon receiving a complaint from a resident of the state of a violation of this section by a municipality, the Attorney General shall issue an opinion stating whether the municipality is in violation of this section.
    2. If the Attorney General issues an opinion stating that the municipality has enacted or adopted a sanctuary policy that violates this section, the municipality is ineligible to receive discretionary moneys provided through funds or grants administered by the state until the Attorney General certifies that the sanctuary policy is repealed or no longer in effect.
    1. Before the provision of funds or the award of grants is made to a municipality, a member of the General Assembly may request that the Attorney General issue an opinion stating whether the municipality has current policies in violation of this section.
    2. A municipality deemed ineligible for discretionary moneys under this section is ineligible to receive discretionary moneys provided through funds or grants administered by the state until the Attorney General certifies that the municipality is in full compliance with this section.
  2. A municipality may appeal a decision of the Attorney General under this section to the Pulaski County Circuit Court.
  3. Records created in connection with administrative investigations related to this section are not subject to the Freedom of Information Act of 1967, § 25-19-101 et seq.

History. Acts 2019, No. 1076, § 1.

Effective Dates. Acts 2019, No. 1076, § 1: effective by its own terms Jan. 1, 2020.

Subchapter 2 — Flags

14-1-201. Definitions.

As used in this subchapter:

    1. “Flag of the United States” means the flag of the United States made of fabric, cloth, or paper suitable for display from a pole or staff, or in a window, and with dimensions not larger than ten feet (10') in length or eight feet (8') in width.
    2. “Flag of the United States” does not mean a depiction or emblem of the flag of the United States made in or of lights, paint, roofing, siding, paving materials, flora, balloons, or any other similar building, landscaping, or decorative components;
  1. “Legal right” means the freedom of use and enjoyment generally exercised by the owners and occupiers of land; and
  2. “Local government” means:
    1. A county;
    2. A city of the first class or city of the second class;
    3. An incorporated town; or
    4. Any other district or political subdivision or any board, commission, or agency of these political subdivisions.

History. Acts 2003, No. 1106, § 1.

14-1-202. Local government may not prohibit the flying of the flag of the United States.

  1. A local government shall not adopt any ordinance, regulation, or policy that prohibits or restricts a resident from properly displaying a flag of the United States on the resident's person, property, or motor vehicle unless the flag is used as, or in conjunction with, an advertising display.
    1. This section shall not prevent a local government from imposing reasonable restrictions as to the time, place, and manner of displaying the flag of the United States when necessary for the preservation of the public's health and safety or the public order.
    2. No restrictions solely to promote aesthetic considerations shall be imposed under subdivision (b)(1) of this section.

History. Acts 2003, No. 1106, § 2.

Research References

U. Ark. Little Rock. L. Rev.

Survey of Legislation, 2003 Arkansas General Assembly, Local Government, Flying United States Flag, 26 U. Ark. Little Rock. L. Rev. 434.

14-1-203. Private entity may not prohibit the flying of the flag of the United States.

  1. Except as provided in subsection (b) of this section, no person, homeowners' association, property owners' association, or other private entity shall adopt any rule, regulation, or policy or shall enter into any agreement or protective covenant that prevents any person or private entity that would otherwise have the legal right to properly display a flag of the United States on private property from exercising that right.
    1. Display of the flag may be restricted if the flag is used as, or in conjunction with, an advertising display.
    2. This section shall not apply to:
      1. Landlords of private rental property who operate fewer than twelve (12) rental units; and
      2. Property owned by churches or religious organizations.

History. Acts 2003, No. 1106, § 3.

14-1-204. Liability for costs and attorney's fees.

A prevailing party in an action to enforce the legal right to fly a flag of the United States shall be entitled to recover the court costs and reasonable attorney's fees incurred.

History. Acts 2003, No. 1106, § 4.

Subchapter 3 — Adult-Oriented Businesses in Proximity to Locations Frequented by Children

14-1-301. Findings and legislative intent.

  1. The purpose of this subchapter is to establish requirements governing the location of adult-oriented businesses in order to protect the public health, safety, and welfare and to prevent criminal activity.
  2. Based on evidence of the adverse secondary effects of adult-oriented businesses and on findings discussed in cases, including City of Los Angeles v. Alameda Books, Inc., 535 U.S. 425 (2002), Erie v. PAP's A.M., 529 U.S. 277 (2000), City of Renton v. Playtime Theatres, Inc., 475 U.S. 41 (1986), and Young v. American Mini Theatres, 427 U.S. 50 (1976), the General Assembly finds that:
    1. Adult-oriented businesses, as a category of commercial land uses, are associated with a wide variety of adverse secondary effects, including a negative impact on surrounding properties, personal and property crime, illicit drug use and trafficking, lewdness, prostitution, potential spread of disease, and sexual assault;
    2. Adult-oriented businesses should be separated from schools, playgrounds, places of worship, and other places frequented by children to minimize the impact of the secondary effects of the adult-oriented businesses on schools, playgrounds, places of worship, and other places frequented by children; and
      1. There is a substantial government interest in preventing each of the negative secondary effects described in subdivision (b)(1) of this section.
      2. The substantial government interest exists independently of any comparative analysis between adult-oriented businesses and nonadult-oriented businesses.

History. Acts 2007, No. 387, § 1.

14-1-302. Definitions.

As used in this subchapter:

  1. “Adult arcade” means any place where the public is permitted or invited and where a still or motion picture machine, projector, or other image-producing device is:
    1. Coin-operated or slug-operated or electronically, electrically, or mechanically controlled; and
    2. Maintained to show an image or images involving a specific sexual activity or a specific anatomical area to a person in a booth or viewing room;
  2. “Adult bookstore or video store” means a commercial establishment that offers for sale or rent any of the following as one (1) of its principal business purposes:
    1. A book, magazine, periodical or other printed matter, photograph, film, motion picture, videocassette, reproduction, slide, or other visual representation that depicts or describes a specific sexual activity; or
    2. An instrument, a device, or paraphernalia that is designed for use in connection with a specific sexual activity;
  3. “Adult cabaret” means any nightclub, bar, restaurant, or other similar commercial establishment that regularly features a:
    1. Person who appears in a state of nudity or who is seminude;
    2. Live performance that is characterized by the exposure of a specific anatomical area or a specific sexual activity; or
    3. Film, motion picture, videocassette, slide, or other photographic reproduction that is characterized by the depiction or description of a specific sexual activity or a specific anatomical area;
  4. “Adult live entertainment establishment” means an establishment that features either a:
    1. Person who appears in a state of nudity; or
    2. Live performance that is characterized by the exposure of a specific anatomical area or a specific sexual activity;
  5. “Adult motion picture theater” means a commercial establishment in which for any form of consideration a film, motion picture, videocassette, slide, or other similar photographic reproduction characterized by the depiction or description of a specific sexual activity or a specific anatomical area is predominantly shown;
  6. “Adult-oriented business” means an adult arcade, an adult bookstore or video store, an adult cabaret, an adult live entertainment establishment, an adult motion picture theater, an adult theater, a massage establishment that offers adult services, an escort agency, or a nude model studio;
  7. “Adult theater” means a theater, a concert hall, an auditorium, or a similar commercial establishment that predominantly features a person who appears in a state of nudity or who engages in a live performance that is characterized by the exposure of a specific anatomical area or a specific sexual activity;
  8. “Child care facility” means a facility that is licensed by the Division of Child Care and Early Childhood Education of the Department of Human Services to provide care or supervision for minor children;
  9. “Escort” means a person who:
    1. For consideration agrees or offers to act as a date for another person; or
    2. Agrees or offers to privately model lingerie or to privately perform a striptease for another person;
  10. “Escort agency” means a person or business association that furnishes, offers to furnish, or advertises the furnishing of an escort as one (1) of its primary business purposes for any fee, tip, or other consideration;
  11. “Local unit of government” means a city of the first class, a city of the second class, an incorporated town, or a county;
  12. “Massage establishment that offers adult services” means an establishment that offers massage services characterized by an emphasis on a specific sexual activity or a specific anatomical area;
  13. “Nude”, “nudity”, or “state of nudity” means any of the following:
    1. The appearance of a human anus, human genitals, or a female breast below a point immediately above the top of the areola; or
    2. A state of dress that fails to opaquely cover a human anus, human genitals, or a female breast below a point immediately above the top of the areola;
    1. “Nude model studio” means a place where a person who appears in a state of nudity or who displays a specific anatomical area is observed, sketched, drawn, painted, sculptured, photographed, or otherwise depicted by another person for money or other consideration.
    2. “Nude model studio” does not include a proprietary school that is licensed by this state, a college, community college, or university that is supported entirely or in part by taxation, a private college or university that maintains and operates educational programs in which credits are transferable to a college, community college, or university that is supported entirely or in part by taxation, or a structure containing an establishment to which the following apply:
      1. A sign is not visible from the exterior of the structure and no other advertising appears indicating that a nude person is available for viewing;
      2. A person must enroll at least three (3) days in advance of a class in order to participate; and
      3. No more than one (1) nude or seminude model is on the premises at a time;
  14. “Park” means any area primarily intended for recreational use that is dedicated or designated by any federal, state, or local unit of government, local agency or entity, or any private individual, business, or group including any land leased, reserved, or held open to the public for use as a park;
  15. “Place of worship” means a structure where persons regularly assemble for worship, ceremonies, rituals, and education relating to a particular form of religious belief and which a reasonable person would conclude is a place of worship by reason of design, signs, or architectural features;
  16. “Playground” means any:
    1. Public park or outdoor recreational area with play equipment installed and designed to be used by children; and
    2. Outdoor recreational area with play equipment installed that is owned and operated by a charitable organization or a business;
  17. “Public library” means:
    1. A city library established under § 13-2-501 et seq.;
    2. A county library established under § 13-2-401 et seq.;
    3. A joint city-county library established under § 13-2-401 et seq. or § 13-2-501 et seq.; and
    4. Any other library system established under § 13-2-401 et seq., § 13-2-501 et seq., or the Regional Library System Law, § 13-2-901 et seq.;
  18. “Recreational area or facility” means an area or facility open to the public for recreational purposes;
  19. “Residence” means a permanent dwelling place;
  20. “School” means a public or private elementary, secondary, charter, or postsecondary school;
  21. “Seminude” means a state of dress for which clothing covers no more than the genitals, the pubic region, and a female breast below a point immediately above the top of the areola, as well as portions of the body that are covered by supporting straps or devices;
  22. “Specific anatomical area” means any of the following:
    1. A human anus, genitals, pubic region, or a female breast below a point immediately above the top of the areola that is less than completely and opaquely covered; or
    2. Male genitals in a discernibly turgid state if less than completely and opaquely covered;
  23. “Specific sexual activity” means any of the following:
    1. A sex act, actual or simulated, including an act of human masturbation, sexual intercourse, oral copulation, or sodomy; or
    2. Fondling or other erotic touching of a human genital, a pubic region, a buttock, an anus, or a female breast; and
  24. “Walking trail” means a pedestrian trail or path primarily used for walking but also for cycling or other activities.

History. Acts 2007, No. 387, § 1.

14-1-303. Location of adult-oriented businesses.

  1. An adult-oriented business shall not be located within one thousand feet (1,000') of a child care facility, park, place of worship, playground, public library, recreational area or facility, residence, school, or walking trail.
  2. For the purposes of this section, the measurement required in subsection (a) of this section shall be made in a straight line in all directions, without regard to intervening structures or objects, from the nearest point on the property line of a parcel containing an adult-oriented business to the nearest point on the property line of a parcel containing a child care facility, park, place of worship, playground, public library, recreational area or facility, residence, school, or walking trail.
  3. An adult-oriented business lawfully operating in conformity with this section is not in violation of this section if a child care facility, park, place of worship, playground, public library, recreational area or facility, residence, school, or walking trail subsequently locates within one thousand feet (1,000') of the adult-oriented business.

History. Acts 2007, No. 387, § 1.

14-1-304. County and municipal ordinances.

This subchapter does not prohibit a local unit of government from enacting and enforcing ordinances that regulate the location of adult-oriented businesses in a manner that is at least as restrictive as § 14-1-303.

History. Acts 2007, No. 387, § 1.

14-1-305. Civil action.

If there is reason to believe that a violation of this subchapter is being committed in any local unit of government:

  1. The county attorney of the county where the adult-oriented business is located shall maintain an action to abate and prevent the violation and to enjoin perpetually any person who is committing the violation and the owner, lessee, or agent of the building or place in or where the violation is occurring from directly or indirectly committing or permitting the violation; or
  2. A citizen of this state who resides in the county, city, or town where the adult-oriented business is located may in the citizen's own name maintain an action to abate and prevent the violation and to enjoin perpetually any person who is committing the violation and the owner, lessee, or agent of the building or place in or where the violation is occurring from directly or indirectly committing or permitting the violation.

History. Acts 2007, No. 387, § 1.

14-1-306. Criminal penalties.

    1. A violation of § 14-1-303 is a Class A misdemeanor.
    2. Each day of violation constitutes a separate offense.
  1. A person violating § 14-1-303 is subject to a fine under § 5-4-201 et seq. and a sentence of imprisonment under § 5-4-401 et seq.

History. Acts 2007, No. 387, § 1.

14-1-307. Exceptions.

This subchapter shall not apply to an adult-oriented business that is lawfully operating on or before July 31, 2007.

History. Acts 2007, No. 387, § 1.

14-1-308. Posting information about National Human Trafficking Resource Center Hotline.

An entity governed by this subchapter shall post information about the National Human Trafficking Resource Center Hotline as required under § 12-19-102.

History. Acts 2013, No. 1157, § 6.

Subchapter 4 — Intrastate Commerce Improvement Act

Effective Dates. Acts 2015, No. 137, § 2: Emergency clause failed to pass. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that there are seventy-five (75) counties and five hundred (500) cities and towns in the state; that each county, city, and town can create its own local system for dealing with discrimination; and that this act is immediately necessary to create uniformity regarding discrimination laws across the state. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

14-1-401. Title.

This subchapter shall be known and may be cited as the “Intrastate Commerce Improvement Act”.

History. Acts 2015, No. 137, § 1.

Publisher's Notes. Acts 2015, No. 137 became law without the Governor's signature.

14-1-402. Purpose — Finding.

  1. The purpose of this subchapter is to improve intrastate commerce by ensuring that businesses, organizations, and employers doing business in the state are subject to uniform nondiscrimination laws and obligations, regardless of the counties, municipalities, or other political subdivisions in which the businesses, organizations, and employers are located or engage in business or commercial activity.
  2. The General Assembly finds that uniformity of law benefits the businesses, organizations, and employers seeking to do business in the state and attracts new businesses, organizations, and employers to the state.

History. Acts 2015, No. 137, § 1.

Publisher's Notes. Acts 2015, No. 137 became law without the Governor's signature.

Research References

U. Ark. Little Rock L. Rev.

John M. A. DiPippa, Bias in Disguise: The Constitutional Problems of Arkansas’s Intrastate Commerce Improvement Act, 37 U. Ark. Little Rock L. Rev. 469 (2015).

Case Notes

Ordinance Invalid.

City of Fayetteville Ordinance 5781 violated the Intrastate Commerce Improvement Act, § 14-1-401 et seq., by extending the city's discrimination laws to include two classifications not previously included under state law, i.e., sexual orientation and gender identity, thereby creating a nonuniform nondiscrimination law. Protect Fayetteville v. City of Fayetteville, 2017 Ark. 49, 510 S.W.3d 258 (2017).

Ark. Const., Art. 12, § 4, states that “[n]o municipal corporation shall be authorized to pass any laws contrary to the general laws of the state”, and case law has held that municipal corporations have only the power bestowed on them by statute or the state constitution; therefore, city ordinances that conflict with state statutes are void under the Arkansas Constitution. Protect Fayetteville v. City of Fayetteville, 2019 Ark. 30, 565 S.W.3d 477 (2019).

Supreme Court's prior opinion and mandate operated as a binding adjudication that a Fayetteville ordinance violated Acts 2015, No. 137, codified as § 14-1-401 et seq., which prohibits a county, municipality, or other political subdivision of the state from adopting or enforcing an ordinance, resolution, rule, or policy that creates a protected classification or prohibits discrimination on a basis not contained in state law. Because the circuit court exceeded its jurisdiction on remand in denying appellants' motion for a preliminary injunction enjoining enforcement of the ordinance, its actions following remand were void. Protect Fayetteville v. City of Fayetteville, 2019 Ark. 30, 565 S.W.3d 477 (2019).

14-1-403. Prohibited conduct.

  1. A county, municipality, or other political subdivision of the state shall not adopt or enforce an ordinance, resolution, rule, or policy that creates a protected classification or prohibits discrimination on a basis not contained in state law.
  2. This section does not apply to a rule or policy that pertains only to the employees of a county, municipality, or other political subdivision.

History. Acts 2015, No. 137, § 1.

Publisher's Notes. Acts 2015, No. 137 became law without the Governor's signature.

Research References

U. Ark. Little Rock L. Rev.

John M. A. DiPippa, Essay: Bias in Disguise: The Constitutional Problems of Arkansas’s Intrastate Commerce Improvement Act, 37 U. Ark. Little Rock L. Rev. 469 (2015).

Case Notes

Ordinance Invalid.

City of Fayetteville Ordinance 5781 violated the Intrastate Commerce Improvement Act, § 14-1-401 et seq., by extending the city's discrimination laws to include two classifications not previously included under state law, i.e., sexual orientation and gender identity, thereby creating a nonuniform nondiscrimination law. Protect Fayetteville v. City of Fayetteville, 2017 Ark. 49, 510 S.W.3d 258 (2017).

Ark. Const., Art. 12, § 4, states that “[n]o municipal corporation shall be authorized to pass any laws contrary to the general laws of the state”, and case law has held that municipal corporations have only the power bestowed on them by statute or the state constitution; therefore, city ordinances that conflict with state statutes are void under the Arkansas Constitution. Protect Fayetteville v. City of Fayetteville, 2019 Ark. 30, 565 S.W.3d 477 (2019).

Supreme Court's prior opinion and mandate operated as a binding adjudication that a Fayetteville ordinance violated Acts 2015, No. 137, codified as § 14-1-401 et seq., which prohibits a county, municipality, or other political subdivision of the state from adopting or enforcing an ordinance, resolution, rule, or policy that creates a protected classification or prohibits discrimination on a basis not contained in state law. Because the circuit court exceeded its jurisdiction on remand in denying appellants' motion for a preliminary injunction enjoining enforcement of the ordinance, its actions following remand were void. Protect Fayetteville v. City of Fayetteville, 2019 Ark. 30, 565 S.W.3d 477 (2019).

Chapter 2 Public Records Generally

Research References

Am. Jur. 37A Am. Jur. 2d, F.O.I. Acts, § 14.

Subchapter 1 — General Provisions

Effective Dates. Acts 1941, No. 277, § 2: approved Mar. 26, 1941. Emergency clause provided: “The legislature having found that this act is necessary for the benefit of the people of the State of Arkansas, and in order to save them much trouble and expense, it is further found that an emergency exists, and this act being necessary for the public peace, health and safety, an emergency is hereby declared, and this act shall become in full force and effect from and after its passage.”

Acts 1943, No. 147, § 4: approved Mar. 4, 1943. Emergency clause provided: “This Act being necessary for the immediate preservation of public peace, health, and safety, an emergency is hereby declared to exist and this Act shall take effect and be in force from and after its passage.”

Acts 2003, No. 275, § 3: Feb. 28, 2003. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that for many years, veterans were advised to file their military service discharge records or DD Form 214 with the court recorder; that these forms contain sensitive information that can be used by identity thieves to obtain credit in the veteran's name or otherwise defraud the veteran or his or her family; in recent years, the incident of identity theft has increased; that incidents of identity thieves using the military service discharge records or DD Form 214 to obtain credit in the veteran's name or otherwise defraud the veteran or his or her family has occurred; that the effects on the veteran and the veteran's family are devastating; and that this act is immediately necessary to protect veterans and their families from identity theft by making military service discharge records or DD Form 214 filed with the county recorder confidential and not subject to the Arkansas Freedom of Information Act. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2017, No. 788, § 2: July 1, 2018.

14-2-101. Recording personalty in only one district.

  1. In counties within the State of Arkansas which have two (2) or more districts with two (2) or more county sites, where it is necessary to record certain written instruments affecting personal property as provided by law, the recording shall be necessary in only one (1) district of the county.
  2. The written instruments affecting personal property shall be recorded or filed for record in the district where the person executing the instrument resides, and it shall not be necessary to make any additional record thereof in the same county.

History. Acts 1941, No. 277, § 1; A.S.A. 1947, § 16-304.

Cross References. Recorders, § 14-15-401 et seq.

Records in multiple judicial districts, § 14-15-901.

Case Notes

Sebastian County.

The two districts of Sebastian County are, in effect, separate counties, so far as the recording requirements of § 18-50-103 are involved. Henson v. Fleet Mtg. Co., 319 Ark. 491, 892 S.W.2d 250 (1995).

14-2-102. Records of military discharges.

  1. It shall be the duty of the quorum court in each county of the State of Arkansas to appropriate from any moneys in the general fund any sum as may be necessary, not exceeding in any county the sum of one hundred dollars ($100), for providing a suitable record book for the purpose of recording military certificates of discharge.
  2. The record shall contain a complete copy of discharges and shall contain an index of the names of the discharged soldiers, sailors, airmen, marines, members of the United States Coast Guard, merchant marines, members of the Women's Army Auxiliary Corps, Women's Reserve of the United States Naval Reserve, nurses, and members of all other branches of the United States Armed Forces with reference to page, alphabetically arranged.
    1. A military service discharge record or DD Form 214, the Certificate of Release or Discharge from Active Duty of the United States Department of Defense, filed with the county recorder for a veteran discharged from service less than seventy (70) years from the current date shall be confidential, kept in a secure location, and may be viewed or reproduced only by:
      1. The veteran;
      2. The veteran's spouse or child;
      3. A person with a signed and notarized authorization from the veteran;
      4. A funeral director who:
        1. Is licensed and regulated by the State Board of Embalmers, Funeral Directors, Cemeteries, and Burial Services under § 23-61-1101 et seq.;
        2. Is assisting with the veteran's funeral arrangements; and
        3. Presents a signed and notarized authorization from the veteran's spouse, child, or next of kin;
      5. A county or state veterans' service officer who is assisting the veteran or the veteran's family with a veteran's benefit application; or
      6. A person authorized by a court to view or copy the military service discharge record or DD Form 214 upon presentation of a court order.
    2. The county recorder shall record the names and addresses of all persons viewing or copying a military service discharge record or DD Form 214 under this subsection.
    3. No fee shall be charged for reproduction costs under this subsection.
    4. Upon petition by a veteran or other requestor eligible to view the records who has a notarized authorization from the veteran, the court may order the removal of the records from the county recorder's record book.
    1. A military service discharge record for a veteran discharged from service more than seventy (70) years from the current date and filed with the county recorder shall be a public record.
    2. No fee shall be charged for reproduction cost under this subsection.
    1. The county recorder may maintain a record book that contains any of the following information about veterans for public record:
      1. Name;
      2. Rank;
      3. Unit of military service;
      4. Dates of military service;
      5. Medals conferred upon veterans; and
      6. Awards conferred upon veterans.
    2. If the county recorder does not maintain a record book, then upon specific request for the information, the county recorder shall review a military service discharge record or DD Form 214 and provide only the information in subdivision (e)(1) of this section to the requestor, without allowing the requestor to review the military service discharge record or DD Form 214.

History. Acts 1943, No. 147, § 3; A.S.A. 1947, § 11-1707; Acts 2003, No. 275, § 1; 2005, No. 2208, § 1; 2005, No. 2249, § 1; 2017, No. 788, § 4.

Amendments. The 2017 amendment substituted “State Board of Embalmers, Funeral Directors, Cemeteries, and Burial Services under § 23-61-1101 et seq.” for “State Board of Embalmers and Funeral Directors under § 17-29-201 et seq.” in (c)(1)(D)(i).

Effective Dates. Acts 2017, No. 788, § 2: July 1, 2018.

Cross References. Recording certificate of discharge, § 12-62-411.

Military discharge records exempted from the Arkansas Freedom of Information Act of 1967, § 25-19-105(b)(15).

Research References

U. Ark. Little Rock. L. Rev.

Survey of Legislation, 2003 Arkansas General Assembly, Local Government, Protection for Veterans, 26 U. Ark. Little Rock. L. Rev. 433.

14-2-103. Book defined.

In all county offices, unless the context or definition requires otherwise, “book” means either paper, electronic files, or information maintained in a computer, computer system or network, or other electronic information storage and retrieval system.

History. Acts 1999, No. 1239, § 1.

Subchapter 2 — Reproduction of Records

Publisher's Notes. Acts 1947, No. 218, is also codified as § 25-18-101.

Effective Dates. Acts 1947, No. 218, § 6: Mar. 18, 1947. Emergency clause provided: “There being no provision of law whereby photostatic microfilm or photographic reproductions of writings, documents, or records may be admissible in evidence, and because facilities for storage of public records are now taxed to capacity; and because space must be provided for such public records and because it is necessary for the immediate preservation of the public peace, health and safety of the inhabitants of the state; an emergency exists within the meaning of the Constitution and this Act shall be in full force and effect from and after its passage and approval.”

14-2-201. Authority — Requirements.

  1. The head of any county or municipal department, commission, bureau, or board may cause any or all records kept by the official, department, commission, or board to be photographed, microfilmed, photostated, or reproduced on or by film, microcard, miniature photographic recording, optical disc, digital compact disc, electronic imaging, or other process that accurately reproduces or forms a durable medium for reproducing the original when provided with equipment necessary for such method of recording.
  2. At the time of reproduction, the agency head shall attach his or her certificate to the record certifying that it is the original record, and the certificate shall be reproduced with the original.
  3. The device used to reproduce the records shall be such as to accurately reproduce and perpetuate the original records in all details.

History. Acts 1947, No. 218, § 1; A.S.A. 1947, § 16-501; Acts 2001, No. 1630, § 1.

Cross References. Photographic recording authorized, § 16-46-101.

14-2-202. Copy of record — Admissibility.

  1. The reproduction made in accordance with § 14-2-201, when satisfactorily identified, shall be admissible into evidence as provided in § 16-46-101 or any other provision of law or court rules governing the admission of evidence.
  2. For all purposes recited in this section, a facsimile, exemplification, or certified copy thereof shall be deemed to be a transcript, exemplification, or certified copy of the original.

History. Acts 1947, No. 218, § 2; A.S.A. 1947, § 16-502; Acts 2001, No. 1630, § 2.

14-2-203. Disposal, etc., of copied records.

  1. Whenever reproductions of public records have been made in accordance with § 14-2-201 and have been placed in conveniently accessible files or other suitable format and provision has been made for preserving, examining, and using them, the head of a county office or department or city office or department may certify those facts to the county court or to the mayor of a municipality, respectively, who shall have the power to authorize the disposal, archival storage, or destruction of the records.
  2. Cities of the first class, cities of the second class, and incorporated towns may by ordinance declare a policy of record retention and disposal, provided that:
    1. The city or town complies with any specific statute regarding municipal records; and
    2. The following records are maintained permanently in either the original or electronic format as required by law:
      1. Ordinances;
      2. City council minutes;
      3. Resolutions;
      4. Annual financial audits; and
      5. Year-end financial statements.

History. Acts 1947, No. 218, § 4; A.S.A. 1947, § 16-504; Acts 2001, No. 1630, § 3; 2005, No. 1252, § 1.

RESEARCH REFERENCES

U. Ark. Little Rock. L. Rev.

Survey of Legislation, 2005 Arkansas General Assembly, Local Government, 28 U. Ark. Little Rock. L. Rev. 373.

14-2-204. Municipal police department records.

  1. All municipalities of the State of Arkansas shall maintain records for the city or town police department or marshal's office, if the records are currently being maintained, as follows:
    1. Maintain for seven (7) years after closure of the case file or permanently, as the municipality shall determine, provided that §§ 12-12-104 and 14-2-203(b)(1) are complied with and that records related to crimes of violence as defined by § 5-42-203 are maintained permanently:
      1. Closed municipal police case files for felony and Class A misdemeanor offenses; and
      2. Expungement orders of municipal police cases; and
    2. Maintain for three (3) years:
      1. Accident reports;
      2. Incident reports;
      3. Offense reports;
      4. Fine and bond records;
      5. Parking meter records;
      6. Radio logs and complaint cards; and
      7. Employment records, payroll sheets, time cards, and leave requests.
    1. If maintained for more than ten (10) years after the date the record was created, records under subdivision (a)(1) of this section may be copied and maintained in accordance with § 14-2-203.
    2. Records under subdivision (a)(2) of this section may be copied in accordance with § 14-2-203 or are subject to disposal after the specified time period has passed.

History. Acts 2003, No. 1187, § 1; 2005, No. 1252, § 2.

RESEARCH REFERENCES

U. Ark. Little Rock. L. Rev.

Survey of Legislation, 2005 Arkansas General Assembly, Local Government, 28 U. Ark. Little Rock. L. Rev. 373.

Subchapter 3 — Uniform Real Property Electronic Recording Act

Effective Dates. Identical Acts 2016 (3rd Ex. Sess.), Nos. 2 and 3, § 129: May 23, 2016. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the membership and duties of certain agencies, task forces, committees, and commissions and repeals other governmental entities; that these revisions and repeals of governmental entities impact the expenses and operations of state government; and that the provisions of this act should become effective as soon as possible to allow for implementation of the new provisions in advance of the upcoming fiscal year. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

14-2-301. Short title.

This subchapter may be cited as the “Uniform Real Property Electronic Recording Act”.

History. Acts 2007, No. 734, § 1.

14-2-302. Definitions.

In this subchapter:

  1. “Document” means information that is:
    1. inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form; and
    2. eligible to be recorded in the land records maintained by the county recorder.
  2. “Electronic” means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities.
  3. “Electronic document” means a document that is received by the county recorder in an electronic form.
  4. “Electronic signature” means an electronic sound, symbol, or process attached to or logically associated with a document and executed or adopted by a person with the intent to sign the document.
  5. “Person” means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, public corporation, government, or governmental subdivision, agency, or instrumentality, or any other legal or commercial entity.
  6. “State” means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States.

History. Acts 2007, No. 734, § 1.

14-2-303. Validity of electronic documents.

  1. If a law requires, as a condition for recording, that a document be an original, be on paper or another tangible medium, or be in writing, the requirement is satisfied by an electronic document satisfying this subchapter.
  2. If a law requires, as a condition for recording, that a document be signed, the requirement is satisfied by an electronic signature.
  3. A requirement that a document or a signature associated with a document be notarized, acknowledged, verified, witnessed, or made under oath is satisfied if the electronic signature of the person authorized to perform that act, and all other information required to be included, is attached to or logically associated with the document or signature. A physical or electronic image of a stamp, impression, or seal need not accompany an electronic signature.

History. Acts 2007, No. 734, § 1.

14-2-304. Recording of documents.

  1. In this section, “paper document” means a document that is received by the county recorder in a form that is not electronic.
  2. A county recorder:
    1. who implements any of the functions listed in this section shall do so in compliance with standards established by the Electronic Recording Commission.
    2. may receive, index, store, archive, and transmit electronic documents.
    3. may provide for access to, and for search and retrieval of, documents and information by electronic means.
    4. who accepts electronic documents for recording shall continue to accept paper documents as authorized by state law and shall place entries for both types of documents in the same index.
    5. may convert paper documents accepted for recording into electronic form.
    6. may convert into electronic form information recorded before the county recorder began to record electronic documents.
    7. may accept electronically any fee, tax, or revenue stamp that the county recorder is authorized to collect.
    8. may agree with other officials of a state or a political subdivision thereof, or of the United States, on procedures or processes to facilitate the electronic satisfaction of prior approvals and conditions precedent to recording and the electronic payment of fees, taxes, or revenue stamps.
      1. may enter into an agreement with a private entity to perform the duties under this section, including without limitation receiving, reviewing, scanning, and transmitting documents for electronic recording.
      2. An agreement under subdivision (b)(9)(A) of this section shall be a uniform agreement reviewed and formally approved by the commission.

History. Acts 2007, No. 734, § 1; 2017, No. 140, § 1.

A.C.R.C. Notes. The 2017 amendment to this section was not based upon an official revision of the Uniform Real Property Electronic Recording Act by the National Conference of Commissioners on Uniform State Laws.

Amendments. The 2017 amendment added (b)(9).

14-2-305. Administration and standards.

    1. An Electronic Recording Commission consisting of eleven (11) members appointed by the Governor is created to adopt standards to implement this subchapter.
    2. A majority of the members of the commission must be county recorders.
    3. A member of the commission must be an active state legislator.
    4. A member of the commission shall serve a term of two (2) years.
    5. The terms of the current commission members on July 31, 2009, shall expire on September 1, 2009.
    6. Each member of the commission may receive expense reimbursement in accordance with § 25-16-901 et seq.
  1. To keep the standards and practices of county recorders in this state in harmony with the standards and practices of recording offices in other jurisdictions that enact substantially this subchapter and to keep the technology used by county recorders in this state compatible with technology used by recording offices in other jurisdictions that enact substantially this subchapter, the Electronic Recording Commission, so far as is consistent with the purposes, policies, and provisions of this subchapter, in adopting, amending, and repealing standards shall consider:
    1. Standards and practices of other jurisdictions;
    2. The most recent standards promulgated by national standard-setting bodies, such as the Property Records Industry Association;
    3. The views of interested persons and governmental officials and entities;
    4. The needs of counties of varying size, population, and resources; and
    5. Standards requiring adequate information security protection to ensure that electronic documents are accurate, authentic, adequately preserved, and resistant to tampering.
    1. A staff member of the Association of Arkansas Counties shall be assigned to assist the Electronic Recording Commission.
    2. The staff member shall coordinate meetings, accumulate information, and provide general support to the commission.

History. Acts 2007, No. 734, § 1; 2009, No. 725, § 1; 2011, No. 1157, §§ 1, 2; 2016 (3rd Ex. Sess.), No. 2, § 27; 2016 (3rd Ex. Sess.), No. 3, § 27.

A.C.R.C. Notes. The 2009, 2011, and 2016 (3rd Ex. Sess.) amendments to this section were not based upon an official revision of the Uniform Real Property Electronic Recording Act by the National Conference of Commissioners on Uniform State Laws.

Identical Acts 2016 (3rd Ex. Sess.), Nos. 2 and 3, § 1, provided:

“(a) The General Assembly finds:

“(1) State government provides vital functions that impact the lives of Arkansas citizens on a daily basis;

“(2) While these functions are important, it is equally important to ensure that state government operates efficiently and effectively to eliminate unnecessary spending of tax dollars and provide timely and quality services to Arkansas citizens; and

“(3) Issues such as the administrative organization of a governmental entity, the appointment structure of a governmental entity's governing board, and extraneous duties assigned to governmental entities hamper the operation of state government and result in unnecessary expenses and delays in the provision of state services.

“(b) It is the intent of this act to amend provisions of law applicable to certain agencies, task forces, committees, and commission to promote efficiency and effectiveness in the operations of state government as a whole.”

Amendments. The 2009 amendment inserted (a)(2) through (a)(5) and redesignated the remaining text of (a) accordingly.

The 2011 amendment substituted “eleven (11) members” for “nine (9) members” in (a)(1); inserted present (a)(3) and redesignated the remaining subdivisions accordingly; and added (c).

The 2016 (3rd Ex. Sess.) amendment by identical acts Nos. 2 and 3 redesignated former (c) as (c)(1) and (2); substituted “Association of Arkansas Counties” for “Bureau of Legislative Research” in (c)(1); substituted “shall” for “will” in (c)(1) and (2); and made stylistic changes.

14-2-306. Uniformity of application and construction.

In applying and construing this Uniform Act, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.

History. Acts 2007, No. 734, § 1.

14-2-307. Relation to Electronic Signatures in Global and National Commerce Act.

This subchapter modifies, limits, and supersedes the federal Electronic Signatures in Global and National Commerce Act, 15 U.S.C.S. § 7001 et seq., but does not modify, limit, or supersede 15 U.S.C.S. § 7001(c) or authorize electronic delivery of any of the notices described in 15 U.S.C.S. § 7003(b).

History. Acts 2007, No. 734, § 1.

14-2-308. [Reserved.]

Publisher's Notes. Section 8 of the Uniform Real Property Electronic Recording Act, the effective date clause, was not adopted in Arkansas.

Chapters 3-12 [Reserved.]

[Reserved]

Subtitle 2. County Government

Chapter 13 General Provisions

[Reserved]

Chapter 14 County Government Code

Research References

Am. Jur. 56 Am. Jur. 2d, Mun. Corp. & Coun., § 1 et seq.

Case Notes

In General.

The enabling legislation for Ark. Const. Amend. 55 was Acts 1977, No. 742, now codified as this chapter. Venhaus v. Adams, 295 Ark. 606, 752 S.W.2d 20 (1988).

Elections.

The amount allowed for voting machine preparation is not fixed by state law, and there is nothing in Ark. Const. Amend. 55, the revision of county government amendment, and nothing in this chapter, to prohibit or curtail the power of the quorum court from exercising its discretion on the amount to be allowed, so long as it is reasonable. Union County v. Union County Election Comm'n, 274 Ark. 286, 623 S.W.2d 827 (1981).

Cited: Kreutzer v. Clark, 271 Ark. 243, 607 S.W.2d 670 (1980).

Subchapter 1 — General Provisions

Cross References. Arkansas Governmental Compliance Act, § 10-4-301 et seq.

Effective Dates. Acts 1977, No. 742, § 118: Mar. 24, 1977. Emergency clause provided: “It is hereby found by the General Assembly that the passage of Amendment 55 to the Arkansas Constitution has caused major changes in the structure of county government and that, because of said changes, a need exists to modernize laws affecting county government. It is further found that the citizens of the several counties of the State are in need of services provided by county governments and said services can best be provided under the provisions of this Act. Therefore, an emergency is hereby declared to exist and this Act, being necessary for the public health, welfare and safety, shall be in effect from and after its passage and approval.”

Acts 2009, No. 569, § 2: Mar. 24, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that some counties and county officials that have public records stored in an electronic record may not have complete access and control of the records and that this act is necessary because the lack of control has led or will lead to lawsuits of which the basis is the county officeholder's inability to access the county's own records. Therefore, an emergency is declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2017, No. 751, § 9: Mar. 30, 2017. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that several uncodified acts involving the allocation of revenue within counties composed of dual judicial districts have been subject to misinterpretation by the courts; that to prevent litigation arising from varying interpretations of the uncodified acts, certain sections of these uncodified acts need to be repealed; and that this act is immediately necessary to ensure that the standard operating procedures of the affected counties and the Department of Finance and Administration are lawful. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

14-14-101. Title.

This chapter constitutes the Arkansas “County Government Code”.

History. Acts 1977, No. 742, § 1; A.S.A. 1947, § 17-3101.

Case Notes

Cited: Ark. County v. Burris, 308 Ark. 490, 825 S.W.2d 590 (1992).

14-14-102. County defined.

A county is a political subdivision of the state for the more convenient administration of justice and the exercise of local legislative authority related to county affairs and is defined as a body politic and corporate operating within specified geographic limitations established by law.

History. Acts 1977, No. 742, § 11; A.S.A. 1947, § 17-3201.

Research References

U. Ark. Little Rock L.J.

Survey of Arkansas Law, Public Law, 1 U. Ark. Little Rock L.J. 230.

Case Notes

Cited: Mosier v. Robinson, 722 F. Supp. 555 (W.D. Ark. 1989).

14-14-103. Construction.

  1. Except when a specific definition is given or a technical interpretation is required, words and phrases used in this chapter shall be construed according to their ordinary usage in the English language.
  2. Words in the present tense include the future tense.

History. Acts 1977, No. 742, § 2; A.S.A. 1947, § 17-3102.

14-14-104. Publication requirements.

  1. Unless otherwise specifically provided, when a county government is required to publish, publication shall be by a one-time insertion in a newspaper of general circulation in the county.
  2. Where no newspaper of general circulation exists in a county, publication may be made by posting in three (3) public places which have been designated by ordinance.

History. Acts 1977, No. 742, § 3; A.S.A. 1947, § 17-3103.

14-14-105. Notice by publication.

Unless otherwise specifically provided, when notice of a hearing or other official act is required by a county government, the following provisions shall apply:

  1. The notice shall be published two (2) times with at least six (6) days separating each publication. The first publication shall be no more than thirty (30) days prior to the action, and the last publication shall be no less than three (3) days prior to the action;
  2. The published notice shall contain:
    1. The date, time, and place at which the hearing or other action will occur;
    2. A brief statement of the action to be taken; and
    3. Any other information which may be required by the specific provision of law requiring notice.

History. Acts 1977, No. 742, § 4; A.S.A. 1947, § 17-3104.

14-14-106. Notice by mailing.

    1. Notice by mailing shall be as provided by law or the ordinance of the county quorum court providing for notice by mailing.
    2. In those instances where a county government requires that notice of hearing or other official act be given by mail and the procedures therefor are not set forth by law or ordinance, the notice by mailing shall be made not less than seven (7) days nor more than thirty (30) days prior to the action to be taken, and the requirements of the notice shall be met by:
      1. Deposit of the notice properly addressed in the United States mail, with postage paid at the first-class rate;
      2. Sending the notice by registered or certified mail rather than first class; or
      3. Mailing the notice at the bulk rate instead of first class when notice is to be given by mail to all electors or residents of a county government.
  1. All notices by mailing shall contain:
    1. The date, time, and place at which the hearing or other action will be taken;
    2. A brief statement of the action to be taken; and
    3. Any other information required by the specific section requiring mail notice.

History. Acts 1977, No. 742, § 5; 1979, No. 413, § 1; A.S.A. 1947, § 17-3105.

14-14-107. Petitions.

  1. Requirements. Whenever a petition is authorized in the conduct of county affairs, except initiative and referendum petitions as provided in §§ 14-14-914 — 14-14-918, unless the statute authorizing the petition establishes different criteria, the petition shall be valid if it is signed by fifteen percent (15%) of the qualified electors of the county or portion of the county affected by the petition, with the number of electors of the county or portion of the county to be determined in the manner set forth in subdivision (a)(6) of this section, and if the petition meets the following requirements:
    1. Qualified Electors. Petitions shall be signed only by qualified electors of the county in which the measure of local application is sought by petition. A qualified elector shall be defined as any person duly registered and qualified to vote pursuant to the provisions of Arkansas Constitution, Amendment 51;
    2. Signatures.
      1. The signatures on all petitions shall be the signatures evidenced by voter registration. A signature which is in substantial compliance with these requirements and which is readily identifiable from the additional information required from the signer on the petition shall be counted as sufficient.
      2. Penalty for Fraudulent Signature. Any person who shall sign any name other than his or her own to a petition, who shall knowingly sign his or her name more than once for the same measure, or who shall sign the petition when he or she is not a legal voter of the county when the measure is of local application to the county only shall be guilty of a felony and may be imprisoned in the state penitentiary for not less than one (1) year nor more than five (5) years;
    3. Statement of Purpose. The petition shall contain a statement of the purpose for which it is circulated sufficient to meet the specific criteria set out in the statute authorizing the petition;
    4. Filing of Petitions. All petitions relating to county affairs shall be directed to the judge of the county court and filed with the county clerk. All petitions, upon verification of sufficiency by the county clerk, shall be referred to the county quorum court during the next regular meeting of that body for consideration and disposition. However, a special meeting of the quorum court may be called as provided by law for the consideration and disposition of petitions;
    5. Verification of Petitions.
      1. Only legal voters shall be counted upon petitions.
        1. Petitions may be circulated and presented in parts, but each part of any petition shall have attached to it the affidavit of the persons circulating the petition affirming that:
          1. All signatures on the petition were made in the presence of the affiant; and
          2. To the best of the affiant's knowledge and belief, each signature is genuine and the person signing is a legal voter.
        2. No other affidavit or verification shall be required to establish the genuineness of signatures under subdivision (a)(5)(B)(i) of this section;
    6. Sufficiency of Petitions. The sufficiency of all county petitions shall be decided in the first instance by the county clerk, subject to review by the circuit court. The number of signatures required in a county petition shall be based on the total number of votes cast in the last general election for the office of circuit clerk, or the Office of Governor in cases where the office of circuit clerk may have been abolished;
    7. Challenge of Petition. If the sufficiency of any petition is challenged, that cause shall be a preference cause and shall be tried at once. However, the failure of the courts to reach a decision prior to the election, if an election is required, as to the sufficiency of any petition shall not prevent the question from being placed upon the ballot at the election named in the petition, nor militate against the validity of the measure if it shall have been approved by a vote of the people; and
    8. Amendment of Petitions. If the county clerk shall decide any petition to be insufficient, without delay he or she shall notify the sponsors of the petition and permit at least thirty (30) days from the date of the notification for correction. In the event of legal proceedings to prevent giving legal effect to any petition upon any grounds, the burden of proof shall be upon the person attacking the validity of the petition.
  2. Unwarranted Restrictions Prohibited.
    1. No law shall be passed to prohibit any person from giving or receiving compensation for circulating petitions, nor to prohibit the circulation of petitions, nor in any manner to interfere with the freedom of the people in procuring petitions.
    2. Laws shall be enacted prohibiting and penalizing perjury, forgery, and all other felonies or other fraudulent practices in the securing of signatures or filing of petitions.
  3. Declaration of Sufficiency. Within ten (10) calendar days from the date a petition was filed with the county clerk, the clerk shall determine the adequacy of the petition.
  4. Withdrawal of Signatures. Any person may in writing withdraw his or her signature from a petition at any time prior to the time of filing the petition with the county clerk. Unless otherwise specifically provided by law, no elector shall be permitted to withdraw his or her signature from a petition after it has been filed.
  5. Publication — Costs. All petitions under the provisions of this section shall be published as provided by law. All costs of any petition shall be borne by the petitioners.

History. Acts 1977, No. 742, § 6; 1979, No. 413, § 2; A.S.A. 1947, § 17-3106; Acts 2019, No. 383, § 1.

Amendments. The 2019 amendment added the (a)(5)(A) through (a)(5)(B) designations; in (a)(5)(B)(i), substituted “to it” for “thereto” and substituted “the petition” for “them”; substituted “on the petition” for “thereon” in (a)(5)(B)(i) (a) ; and added “under subdivision (a)(5)(B)(i) of this section” in (a)(5)(B)(ii).

14-14-108. Public hearings.

Unless otherwise specifically provided, when a county court or county quorum court is required to conduct a public hearing for the purpose of providing reasonable opportunity for citizen participation prior to any final decision by either court, the hearing shall meet the following requirements:

  1. At a minimum, a public hearing shall provide for submission of both oral and written testimony for and against the action or matter at issue. If the hearing is not held before the ultimate decisionmakers, provision shall be made for the transmittal of a summary or transcript of the testimony received to the ultimate decisionmakers prior to their determination;
  2. Public hearings may be held at regular or special meetings of each of the courts;
  3. The person or authority holding the public hearing may include in the notice calling the hearing any special procedures or guidelines to be followed at the hearing;
  4. Petitions and letters received by the respective body conducting a public hearing prior to the hearing shall be entered into the minutes of the hearing and considered as other testimony received at the hearing; and
  5. Except for budget and appropriation hearings, the quorum court may designate a subcommittee to conduct any public hearings on county legislative affairs.

History. Acts 1977, No. 742, § 7; 1979, No. 413, § 3; A.S.A. 1947, § 17-3107.

Research References

U. Ark. Little Rock L.J.

Survey of Arkansas Law, Public Law, 1 U. Ark. Little Rock L.J. 230.

14-14-109. Public meetings.

    1. All meetings of a county government governing body, board, committee, or any other entity created by, or subordinate to, a county government shall be open to the public except as provided in subdivision (a)(2) of this section.
    2. A meeting, or part of a meeting, which involves or affects the employment, appointment, promotion, demotion, disciplining, dismissal, or resignation of a county government official or employee need not be open to the public unless the local government officer or employee requests a public meeting.
  1. In any meeting required to be open to the public, the county quorum court, committee, board, or other entity shall adopt rules for conducting the meeting which afford citizens a reasonable opportunity to participate prior to the final decision.
  2. Appropriate minutes shall be kept of all public meetings and shall be made available to the public for inspection and copying.

History. Acts 1977, No. 742, §§ 8, 9; A.S.A. 1947, §§ 17-3108, 17-3109.

Research References

Ark. L. Rev.

Watkins, Open Meetings Under the Arkansas Freedom of Information Act, 38 Ark. L. Rev. 268.

Case Notes

Cited: Baxter County Newspapers, Inc. v. Medical Staff of Baxter Gen. Hosp., 273 Ark. 511, 622 S.W.2d 495 (1981).

14-14-110. Public records.

  1. Except as provided in subsection (b) of this section, all records and other written materials in the possession of a local government shall be available for inspection and copying by any person during normal office hours.
  2. Personal records, medical records, and other records which relate to matters in which the right to individual privacy exceeds the merits of public disclosure shall not be available to the public unless the person they concern requests they be made public.

History. Acts 1977, No. 742, § 10; A.S.A. 1947, § 17-3110.

Research References

U. Ark. Little Rock L.J.

Survey of Arkansas Law, Public Law, 1 U. Ark. Little Rock L.J. 230.

14-14-111. Electronic records.

    1. County governments in Arkansas are the repository for vast numbers of public records necessary for the regulation of commerce and vital to the health, safety, and welfare of the citizens of the state.
    2. These records are routinely kept in electronic format by the county officials who are the custodians of the records.
    3. It is the intent of this section to:
      1. Ensure that all public records kept by county officials are under the complete care, custody, and control of the county officials responsible for the records; and
      2. Prevent a computer or software provider doing business with a county from obtaining complete care and control of county records and from becoming the de facto custodian of the records.
  1. As used in this section:
    1. “Administrative rights” means permissions and powers, including without limitation the permissions and powers to access, alter, copy, download, read, record, upload, write, or otherwise manipulate and maintain records kept by a county official;
    2. “Electronic record” means a record created, generated, sent, communicated, received, or stored by electronic means; and
        1. “Public records” means writings, recorded sounds, films, tapes, electronic or computer-based information, or data compilations in any medium required by law to be kept or otherwise kept and that constitute a record of the performance or lack of performance of official functions that are or should be carried out by a public official or employee, a governmental agency, or other agency wholly or partially supported by public funds or expending public funds.
        2. All records maintained in county offices or by county employees within the scope of employment are public records.
      1. “Public records” does not mean software acquired by purchase, lease, or license.
    1. A county official required by law to maintain public records and who in the normal performance of official duties chooses to keep and maintain the records in an electronic record retains administrative rights and complete access to all the records.
    2. A contract between a county and an electronic record provider shall include the information under subdivision (c)(1) of this section.

History. Acts 2009, No. 569, § 1.

Case Notes

Freedom of Information Act.

Circuit court abused its discretion in issuing a permanent injunction in favor of plaintiff competitor under the Freedom of Information Act of 1967, § 25-19-101 et seq., because the plaintiff failed to sue an entity covered under FOIA; the competitor could not sue a private corporation alone under FOIA and direct it to produce public records it possessed by virtue of its contracts with counties because the private corporation was not the custodian of the public records. The circuit court's conclusion that county officials were unnecessary parties to a dispute over access to their public records was clearly erroneous. Apprentice Info. Sys. v. DataScout, LLC, 2018 Ark. 146, 544 S.W.3d 39 (2018).

14-14-112. Bulk copying of public records.

  1. In the absence of an existing agreement or county ordinance, a county official may negotiate with a commercial, nonpress entity regarding a reasonable fee for mass duplication, copying, or bulk electronic access of public records.
  2. A negotiated agreement authorized by this section is not to the exclusion of any right to a public record a person has under this subchapter or § 25-19-109.
  3. As used in this section, “existing agreement” means a contract, custom, practice, or dealings that were in use as of January 1, 2011.

History. Acts 2011, No. 870, § 1.

14-14-113. Review of audit report by quorum court.

  1. Audit reports and accompanying comments and recommendations under § 10-4-418 relating to a county shall be reviewed by the quorum court.
    1. The audit report and accompanying comments and recommendations shall be reviewed at the first regularly scheduled meeting following receipt of the audit report if the audit report is received by the quorum court at least ten (10) days before the regularly scheduled meeting.
    2. If the audit report is received by the quorum court less than ten (10) days before a regularly scheduled meeting, the audit report shall be reviewed at the regularly scheduled meeting falling within the ten-day period or the next regularly scheduled meeting subsequent to the ten-day period.
  2. The appropriate official shall advise the quorum court concerning each finding and recommendation contained in the audit report.
  3. The minutes of the quorum court shall document the review of the findings and recommendations of the appropriate official.

History. Acts 2011, No. 837, § 2.

14-14-114. Allocation of revenue.

Revenues received by a county that contains within its boundary a circuit court composed of more than one (1) judicial district that was created by an uncodified act shall be allocated as determined by the quorum court and shall not be divided by the judicial district in which the revenues were collected.

History. Acts 2011, No. 1171, § 3; 2017, No. 751, § 8.

A.C.R.C. Notes. Acts 2011, No. 1171, § 5, provided: “The provisions of this act are not severable, and if any provision of this act is declared invalid for any reason, then all provisions of this act shall also be invalid.”

Amendments. The 2017 amendment substituted “Revenues received by a” for “A” at the beginning and substituted “more than one (1) judicial district that was created by an uncodified act shall be allocated as determined by the quorum court” for “both an east and a west judicial district that were created in 1883 shall enact an ordinance to establish that revenues received by the county shall be allocated for the entire county”.

14-14-115. Civil office-holding — Definition.

    1. A person elected or appointed to any of the following county offices shall not be elected or appointed to another civil office during the term for which he or she has been elected:
      1. County judge;
      2. Justice of the peace;
      3. Sheriff;
      4. Circuit clerk;
      5. County clerk;
      6. Assessor;
      7. Coroner;
      8. Treasurer;
      9. County surveyor; or
      10. Collector.
    2. An elected county official under subdivision (a)(1) of this section may run for a civil office during the term for which he or she has been elected.
    1. As used in this section, “civil office” means any one (1) of the following elected or appointed positions, including without limitation:
      1. County election commissioner;
      2. Member of the Parole Board;
      3. Member of a school board;
      4. Prosecuting attorney or deputy prosecuting attorney;
      5. Constable;
      6. Sheriff or deputy sheriff;
      7. Chief of police or city police officer;
      8. City attorney;
      9. City council member;
      10. Member of a drainage improvement district board;
      11. Member of a public facilities board;
      12. Member of a soil conservation district board;
      13. Member of a county library board;
      14. Member of a rural development authority;
      15. Member of a rural waterworks facilities board or regional water distribution board;
      16. Member of an airport commission;
      17. Member of a county or district board of health;
      18. Member of a levee board or levee improvement district board; and
      19. Member of the Career Education and Workforce Development Board.
    2. As used in this section, “civil office” does not include a position that a county official may be appointed to on an advisory board or task force established to assist:
      1. The Governor;
      2. The General Assembly;
      3. A state agency;
      4. A state department;
      5. A county office;
      6. A county department; or
      7. A subordinate service district.
    3. As used in this section, “civil office” does not include a position in which a county official is required to serve by law and that is related to the county official's duties, including without limitation:
      1. A member of an intergovernmental cooperation council;
      2. A member of a county equalization board;
      3. A member of a regional solid waste management district board;
      4. A member of a planning and development district board;
      5. A member of the Arkansas Commission on Law Enforcement Standards and Training;
      6. A member of the Electronic Recording Commission;
      7. A member of a county hospital board;
      8. A member of the Arkansas Workforce Development Board;
      9. A member of the State Board of Election Commissioners;
      10. A member of the Criminal Justice Institute Advisory Board for Law Enforcement Management Training and Education;
      11. A member of the Board of Trustees of the Arkansas Public Employees' Retirement System;
      12. A special judge appointment under Arkansas Constitution, Article 7, § 36;
      13. A member of the Arkansas 911 Board or any successor board; and
      14. A member of the Professional Bail Bond Company and Professional Bail Bondsman Licensing Board.
  1. This section does not prevent a person:
    1. From being elected or appointed to an office under subdivision (a)(1) of this section if he or she held a civil office before January 1, 2017; or
    2. From continuing to hold a civil office the person held before appointment or election to an office under subdivision (a)(1) of this section.

History. Acts 2019, No. 639, § 1.

Subchapter 2 — Boundaries

A.C.R.C. Notes. Acts 2013, No. 1067, § 1, provided:

“Legislative findings.

“The General Assembly of the State of Arkansas finds that:

“(1) Areas of Boone County and Carroll County are cut off from public and emergency services by the waters of Table Rock Lake;

“(2) The areas are commonly known as the Backbone Bluff and the Cricket Creek Public Use Area;

“(3) Problems associated with the provision of services in these areas have existed for several years, but the number of calls for service were minimal due to the sparse population of the areas; and

“(4) Changing the boundaries of Boone County and Carroll County will address these problems.”

Acts 2013, No. 1067, § 2, provided:

“The boundaries of Carroll County and Boone County are changed as follows:

“(a) Effective January 1, 2014, the western boundary of Boone County, Arkansas, is identified as follows: Beginning at the intersection center of channel of Table Rock Lake in the North East Quarter of Section 15, Township 21 North Range 22 West with the Eastern boundary of said Section; thence meandering West following the center of channel of Table Rock Lake through Section 15 Township 21 North Range 22 West past the Cricket Creek Public Use Area, thence meandering northeasterly following the center of channel of Table Rock Lake through Section 10 Township 21 North Range 22 West, thence meandering northerly following the center of channel of Table Rock Lake through Section 11 Township 21 North Range 22 West, thence meandering northwesterly following the center of channel of Table Rock Lake through Section 10 Township 21 North Range 22 West to a point due south of the center of channel of the strait between Backbone Bluff and the island lying to the west, thence north through the strait to a point in the center of channel of Table Rock Lake, thence meandering easterly following the center of channel of Table Rock Lake through Section 11 Township 21 North Range 22 West to the point of intersection with the Arkansas state and Missouri state boundary.

“(b) Effective January 1, 2014, the eastern boundary of Carroll County, Arkansas, is identified as follows: Beginning at the intersection center of channel of Table Rock Lake in the North East Quarter of Section 15, Township 21 North Range 22 West with the Eastern boundary of said Section; thence meandering West following the center of channel of Table Rock Lake through Section 15 Township 21 North Range 22 West past the Cricket Creek Public Use Area, thence meandering northeasterly following the center of channel of Table Rock Lake through Section 10 Township 21 North Range 22 West, thence meandering northerly following the center of channel of Table Rock Lake through Section 11 Township 21 North Range 22 West, thence meandering northwesterly following the center of channel of Table Rock Lake through Section 10 Township 21 North Range 22 West to a point due south of the center of channel of the strait between Backbone Bluff and the island lying to the west, thence north through the strait to a point in the center of channel of the Table Rock Lake, thence meandering easterly following the center of channel of Table Rock Lake through Section 11 Township 21 North Range 22 West to the point of intersection with the Arkansas state and Missouri state boundary.”

Effective Dates. Acts 1977, No. 742, § 118: Mar. 24, 1977. Emergency clause provided: “It is hereby found by the General Assembly that the passage of Amendment 55 to the Arkansas Constitution has caused major changes in the structure of county government and that, because of said changes, a need exists to modernize laws affecting county government. It is further found that the citizens of the several counties of the State are in need of services provided by county governments and said services can best be provided under the provisions of this Act. Therefore, an emergency is hereby declared to exist and this Act, being necessary for the public health, welfare and safety, shall be in effect from and after its passage and approval.”

Research References

Am. Jur. 56 Am. Jur. 2d, Mun. Corp., § 39 et seq.

C.J.S. 20 C.J.S., Counties, § 14 et seq.

14-14-201. Power to change.

  1. The power to change county boundaries is inherent in the General Assembly, subject to express constitutional restrictions.
    1. No county now established shall be reduced to an area of less than six hundred square miles (600 sq. mi.) nor to less than five thousand (5,000) inhabitants; nor shall any new county be established with less than six hundred square miles (600 sq. mi.) and five thousand (5,000) inhabitants.
    2. This section shall not apply to the counties of Lafayette, Pope, and Johnson nor be so construed as to prevent the General Assembly from changing the line between the counties of Pope and Johnson.
  2. No part of a county shall be taken off to form a new county, or a part thereof, without the consent of a majority of voters in the part to be taken off.
  3. In the formation of new counties, no line thereof shall run within ten (10) miles of the county seat of the county proposed to be divided, except the county seat of Lafayette County.
    1. Sebastian County may have two (2) districts and two (2) county seats, at which county and circuit courts shall be held as may be provided by law, each district paying its own expenses.
    2. However, nothing in this section shall be construed as requiring Sebastian County to maintain two (2) districts or two (2) county seats, nor construed as authorizing the establishment of two (2) county quorum courts and two (2) county courts.

History. Acts 1977, No. 742, §§ 12-16; A.S.A. 1947, § 17-3202.

Case Notes

In General.

The power to change county lines is inherent in the General Assembly, subject to express constitutional restrictions and the essential requisites of the state that are implied in our form of government. Reynolds v. Holland, 35 Ark. 56 (1879); Pulaski County v. County Judge, 37 Ark. 339 (1881) (decisions under prior law).

Area.

An act of the General Assembly reducing a county below 600 square miles is unconstitutional. Bittle v. Stuart, 34 Ark. 224 (1879) (decision under prior law).

New Counties.

Consent of a majority of voters in part taken off is only required in the case of new counties to be formed out of portions of old ones. Reynolds v. Holland, 35 Ark. 56 (1879); Pulaski County v. County Judge, 37 Ark. 339 (1881) (decisions under prior law).

Sebastian County.

The two districts of Sebastian County are, in effect, separate counties, so far as the recording requirements of § 18-50-103 are involved. Henson v. Fleet Mtg. Co., 319 Ark. 491, 892 S.W.2d 250 (1995).

Cited: In re Wallace, 61 B.R. 54 (Bankr. W.D. Ark. 1986); In re Henson, 157 B.R. 867 (Bankr. W.D. Ark. 1993).

14-14-202. Initiation of alteration.

Alteration of county boundaries may be initiated by the General Assembly or by a petition to the General Assembly by persons whose rights and interests would be affected by the boundary change.

History. Acts 1977, No. 742, § 17; A.S.A. 1947, § 17-3203.

Case Notes

Boundary Disputes.

Disputes as to county line boundaries may be decided by a court in suit between individuals, though counties are not parties to the action. Pruitt v. Sebastian County Coal & Mining Co., 215 Ark. 673, 222 S.W.2d 50 (1949) (decision under prior law).

14-14-203. Petition to General Assembly.

      1. A petition signed by not less than fifteen percent (15%) of the legal voters residing in the areas to be affected by a proposed county boundary change may be submitted to the General Assembly for consideration.
      2. A petition to form a new county shall be preceded by an election on the issue and consent by the majority of the voters in the part proposed to be taken off.
    1. The number of signatures required upon any petition shall be computed pursuant to subdivision (a)(1)(A) of this section as a percentage of the total vote cast for the Office of Governor at the preceding general election in the various townships affected by the petition.
  1. All petitions under the provisions of this section shall be published as provided by law.

History. Acts 1977, No. 742, §§ 18, 19; A.S.A. 1947, §§ 17-3204, 17-3205.

14-14-204. Accompanying documentation.

Petitions for the alteration of county boundaries shall be accompanied by the following documentation:

    1. A survey of the proposed boundary alterations, except where common boundaries are being dissolved.
    2. The survey shall be performed by a professional surveyor as defined in § 17-48-101; and
  1. A map drawn to scale of the area affected by the petition.

History. Acts 1977, No. 742, § 20; A.S.A. 1947, § 17-3206; Acts 2005, No. 1178, § 1; 2011, No. 898, § 7.

Amendments. The 2011 amendment substituted “a professional surveyor as defined in § 17-48-101” for “a registered professional surveyor of the State of Arkansas” in (1)(B).

14-14-205. Costs.

All costs of petitions, surveys, and mapping shall be borne by the petitioners.

History. Acts 1977, No. 742, § 21; A.S.A. 1947, § 17-3207.

14-14-206. Apportionment of property and indebtedness.

All property, bonded indebtedness, and outstanding indebtedness of counties affected by a change in boundaries shall be apportioned by the General Assembly.

History. Acts 1977, No. 742, § 22; A.S.A. 1947, § 17-3208.

Case Notes

In General.

When a county was divided, the old county would, without statutory provision, retain the property and remain liable for the debts of the county, and the severed part or new county would be released; however, it was competent for the General Assembly to apportion the property and the burden between the old and the new counties, as it deemed proper, and compel taxation for that purpose. Eagle v. Beard, 33 Ark. 497 (1878); Lee County v. State ex rel. Phillips County, 36 Ark. 276 (1880); Pulaski County v. County Judge, 37 Ark. 339 (1881) (decisions under prior law).

Apportionment may be done by a subsequent General Assembly. Perry County v. Conway County, 52 Ark. 430, 12 S.W. 877 (1890) (decision under prior law).

Bonded Indebtedness.

In apportioning the bonded indebtedness between a new county and an old county, under the act creating the former, the date of the negotiation of the bonds was held to be the time of the creation of the county's debt, and the new county was held to be only liable for its proportion of the bonds negotiated before its formation, although all may have been issued. Hempstead County v. Howard County, 51 Ark. 344, 11 S.W. 478 (1888) (decision under prior law).

The apportionment of interest goes with the bond. Hempstead County v. Howard County, 51 Ark. 344, 11 S.W. 478 (1888) (decision under prior law).

Outstanding Indebtedness.

Claims of a county for proportioned indebtedness under a special act do not have to be authenticated and presented to a county court as others claim. Perry County v. Conway County, 52 Ark. 430, 12 S.W. 877 (1890) (decision under prior law).

Judgment against parent county, rendered subsequent to division on obligations existing prior to division, is proportionately binding on new county. Garland County v. Hot Spring County, 68 Ark. 83, 56 S.W. 636 (1900) (decision under prior law).

Subchapter 3 — County Seats

Cross References. Change of county seat, Ark. Const., Art. 13, § 3.

County buildings, § 14-19-101 et seq.

Effective Dates. Acts 1875, No. 86, § 13, p. 201: in force from and after its passage. Approved March 2, 1875.

Acts 1977, No. 742, § 118: Mar. 24, 1977. Emergency clause provided: “It is hereby found by the General Assembly that the passage of Amendment 55 to the Arkansas Constitution has caused major changes in the structure of county government and that, because of said changes, a need exists to modernize laws affecting county government. It is further found that the citizens of the several counties of the State are in need of services provided by county governments and said services can best be provided under the provisions of this Act. Therefore, an emergency is hereby declared to exist and this Act, being necessary for the public health, welfare and safety, shall be in effect from and after its passage and approval.”

Acts 2019, No. 193, § 2: Feb. 26, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that there are meeting places of governing bodies across the state that are in disrepair; that often a meeting place needs to be closed and relocated temporarily; and that this act is immediately necessary because under current law a meeting place cannot be set up temporarily unless an emergency arises due to an enemy attack. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto”.

Research References

Am. Jur. 56 Am. Jur. 2d, Mun. Corp., § 44 et seq.

C.J.S. 20 C.J.S., Counties, § 53 et seq.

14-14-301. Definition.

  1. A “county seat” shall be defined as the principal site for the conducting of county affairs and maintaining records of the various courts.
  2. Nothing in this section, however, shall be construed as a limitation on a county to maintain several sites throughout the county for the conducting of county affairs.

History. Acts 1977, No. 742, § 23; A.S.A. 1947, § 17-3301.

Research References

U. Ark. Little Rock L.J.

Survey of Arkansas Law, Public Law, 1 U. Ark. Little Rock L.J. 230.

14-14-302. Establishment or change.

  1. Unless for the purpose of the temporary location of county seats in the formation of new counties, it shall be unlawful to establish or change any county seat in this state without the consent of a majority of the qualified voters of the county to be affected by the change; nor will a county seat be located until the place at which it is proposed to establish or change any county seat shall be fully designated, with the designation embracing a complete and intelligible description of the proposed locations, together with an abstract of the title thereto, and the terms and conditions upon which it can be purchased or donated by or to the county.
  2. The county court shall not order the election provided in this subchapter unless it shall be satisfied that a good and valid title can and will be made to the proposed new locations or one (1) of them.

History. Acts 1977, No. 742, § 24; A.S.A. 1947, § 17-3302.

Case Notes

Change.

Since the judgment of a county court directing the removal of the county seat is self-executing, and therefore cannot be stayed by a supersedeas bond, a circuit court, or the judge thereof in vacation, has power, upon proper showing, to stay proceedings during the pendency of an appeal therefrom. Reese v. Steel, 73 Ark. 66, 83 S.W. 335 (1904) (decision under prior law).

Former similar statute referred to removal of county seat from one town to another, and not from one lot to another in the same town. Graham v. Nix, 102 Ark. 277, 144 S.W. 214 (1912) (decision under prior law).

Where, in an action to stay an election on removal of a county seat, a question of law was raised whether the election petition had been brought under the proper statutory method and a question of fact was raised whether the petition was signed by the required number of qualified voters of the county, the contestants were entitled to trial on the merits prior to the election. Bruce v. Nicholas, 226 Ark. 890, 294 S.W.2d 772 (1956) (decision under prior law).

Title.

A county court has jurisdiction to pass upon the sufficiency of the abstract of title. Walsh v. Hampton, 96 Ark. 427, 132 S.W. 214 (1910) (decision under prior law).

14-14-303. Petition for change.

  1. Whenever fifteen percent (15%) of the legal voters of any county in this state shall join in a petition to the county court of the county for the change or removal of the county seat, the county court shall order an election to be held at the voting places in the county directing that the proposition of the petitioners for the change or removal shall be submitted to the qualified electors.
  2. The number of signatures required upon a petition for change of a county seat shall be computed upon the total vote cast for the Office of Governor at the preceding general election in the county affected by the petition.

History. Acts 1977, No. 742, § 26; A.S.A. 1947, § 17-3304.

Case Notes

Change of Courthouse.

When a county seat has been removed, until the courthouse has been erected, the court can lawfully sit in a building on other property than that to be used as a court when the courthouse is erected. Hudspeth v. State, 55 Ark. 323, 18 S.W. 183 (1892) (decision under prior law).

Where voters elected to abolish two districts and establish county seat at one new location, but nothing was done to facilitate the new county seat at the location, courts had jurisdiction to sit in old districts until new courthouse was certified as ready for use. Warren v. State, 241 Ark. 264, 407 S.W.2d 724 (1966) (decision under prior law).

Elections.

An offer, by interested persons, to build a courthouse and jail and donate them to the county, in case the county seat is changed to the desired point, is not an offer to bribe electors and will not invalidate an election at which such a change is made. Neal v. Shinn, 49 Ark. 227, 4 S.W. 771 (1887) (decision under prior law).

The general election law applies to a county seat election. Walsh v. Hampton, 96 Ark. 427, 132 S.W. 214 (1910) (decision under prior law).

In an election regarding the removal of a county seat, the canvassing board should not go behind the returns and purge the returns of illegal votes, as the board has no discretionary power. Pitts v. Stuckert, 111 Ark. 388, 163 S.W. 1173 (1914) (decision under prior law).

Where, in a given precinct, it was shown that fraud was promiscuously committed by the election officials that affected the result to an extent, the exact limits of which it was impossible to ascertain from the testimony and which fairly drew into question the integrity of the whole return, the same should have been thrown out entirely and omitted from the count, leaving each party the opportunity to prove, by other evidence, the number of legal ballots actually cast. Sailor v. Rankin, 125 Ark. 557, 189 S.W. 357 (1916) (decision under prior law).

14-14-304. Form of ballots.

The ballots of the voters shall have written or printed upon them the words “FOR CHANGE”, or “AGAINST CHANGE”, meaning for or against change from the existing county seat location, and the words “FOR ….” (one of the localities allowed by the act to be voted for, naming and describing the place to which the change or removal is proposed).

History. Acts 1875, No. 86, § 5, p. 201; C. & M. Dig., § 1874; Pope's Dig., § 2393; A.S.A. 1947, § 17-205.

14-14-305. Designation of new site.

  1. Where a majority of the qualified voters of the county have voted in favor of the change from the existing location and are in a majority agreement as to the location in cases where more than one (1) location is proposed, the county court shall proceed to carry into effect the will of the majority.
  2. Where a majority agreement is rendered in favor of a change but is not rendered on a specific location, where more than one (1) location is proposed, the court shall immediately order an election to decide which of the two (2) locations receiving the highest number of votes in the initial election on the issue shall be designated as the new site for the county seat.

History. Acts 1977, No. 742, § 28; A.S.A. 1947, § 17-3306.

Case Notes

Authority of County Courts.

The removal of a county seat is a matter of local concern over which the county court has exclusive original jurisdiction; the circuit court has no authority to determine the result of an election for removal in the first instance and before the county court has acted in the premises, and where it assumes to do so, a writ of prohibition will lie from the Supreme Court. Russell v. Jacoway, 33 Ark. 191 (1878) (decision under prior law).

As the power of a county court over the location of public buildings is a continuing one, the court, after ordering a courthouse to be built on a certain lot, may, at a subsequent term, order the courthouse to be built on another lot in the same town. Graham v. Nix, 102 Ark. 277, 144 S.W. 214 (1912) (decision under prior law).

Proceedings and Appeals.

Where the contest is heard in the circuit court on appeal from an order of the county court and it is adjudged there that a majority of the votes were for removal, but not for either place proposed, the circuit court has jurisdiction to order an election to determine the place to which the removal shall be made. Neal v. Shinn, 49 Ark. 227, 4 S.W. 771 (1887); Sailor v. Rankin, 125 Ark. 557, 189 S.W. 357 (1916) (decisions under prior law).

Voters have a right to make themselves parties to designation proceedings and appeal from an order of the county court. Rucks v. Renfrow, 54 Ark. 409, 16 S.W. 6 (1891); Butler v. Mills, 61 Ark. 477, 33 S.W. 632 (1896) (decisions under prior law).

14-14-306. Deed to county required.

Before proceeding to carry into effect the will of a majority voting on the issue of changing a county seat, the county court shall require the vendor or donor of the new location to deliver a good and sufficient deed, conveying to the county the land or location so sold or donated in fee simple, without reservation or condition, and also an abstract of the title, papers, deeds, and conveyances, and assurances by or through which the title thereof is derived, who shall file the deed for record in the recorder's office of the county, to be recorded as other title deeds and papers. The place so deeded shall then be the permanent county seat, and the title shall be vested in the county.

History. Acts 1977, No. 742, § 27; A.S.A. 1947, § 17-3305.

Case Notes

Deeds.

Where a person, knowing that a contest over the location of the county seat was pending, conveyed certain property to the county to be used for courthouse purposes and the county seat was finally located elsewhere, the deed to the county was not executed under a mistake and would not be canceled. Schuman v. George, 110 Ark. 486, 161 S.W. 1039 (1913) (decision under prior law).

14-14-307. Temporary location of county seat for new county.

  1. The temporary location for the county seat of any new county shall be fixed by the act of the General Assembly authorizing the formation and organization of the new county.
  2. The temporary location shall be considered the permanent and established location unless changed as provided in this subchapter for the change of county seats.

History. Acts 1977, No. 742, § 25; A.S.A. 1947, § 17-3303.

14-14-308. Emergency temporary location for political subdivision — Definition.

      1. Whenever, due to an emergency, it becomes imprudent, inexpedient, or impossible to conduct the affairs of local government at the regular or usual place, the governing body of each political subdivision of this state may meet at any place in the county whether within or without the territorial limits of the political subdivisions on the call of the presiding officer or any two (2) members of the governing body.
      2. The governing body shall proceed to establish and designate by ordinance, resolution, or other manner alternate or substitute sites or places as the emergency temporary location of government where all or any part of the public business may be transacted and conducted during the emergency situation.
    1. The sites or places may be in the county whether within or without the territorial limits of the political subdivisions.
    1. During the period when the public business is being conducted at an emergency temporary location, the governing body and other officers of a political subdivision of this state shall have and possess and shall exercise at the location all of the executive, legislative, and judicial powers and functions conferred upon the governing body and officers by or under the laws of this state.
    2. All acts of the governing body and officers shall be as valid and binding as if performed within the territorial limits of their political subdivision.
  1. As used in this section, “political subdivisions” means all duly formed and constituted governing bodies created and established under authority of the Arkansas Constitution and laws of this state.

History. Acts 1977, No. 742, §§ 29-31; A.S.A. 1947, §§ 17-3307 — 17-3309; Acts 2019, No. 193, § 1.

Amendments. The 2019 amendment, in (a)(1)(A), deleted “resulting from the effects of enemy attack, or the anticipated effects of a threatened enemy attack” following “emergency”, and deleted “thereof” following “usual place”; inserted “in the county whether” in (a)(1)(A) and in (a)(2); deleted “and may be within or without this state” from the end of (a)(2); inserted the second occurrence of “governing” in (b)(1); in (b)(2), deleted the former first sentence, and inserted “governing”; added “As used in this section” in (c); and made stylistic changes.

Subchapter 4 — Quorum Court Districts

Effective Dates. Acts 1977, No. 742, § 118: Mar. 24, 1977. Emergency clause provided: “It is hereby found by the General Assembly that the passage of Amendment 55 to the Arkansas Constitution has caused major changes in the structure of county government and that, because of said changes, a need exists to modernize laws affecting county government. It is further found that the citizens of the several counties of the State are in need of services provided by county governments and said services can best be provided under the provisions of this Act. Therefore, an emergency is hereby declared to exist and this Act, being necessary for the public health, welfare and safety, shall be in effect from and after its passage and approval.”

14-14-401. Establishment — Townships continued.

  1. Each county of the state shall divide its land area into convenient county quorum court districts in a manner and at times prescribed by the General Assembly.
  2. The county court of each county in this state shall have the authority to divide the county into convenient townships, subdivide those already established, and alter township lines.
  3. It shall be the duty of the clerk of the county court to enter on the minutes of the court a description of each township established by the court containing the name and boundaries of the township and the place appointed for holding elections and shall also note in the minutes every alteration that is made in any township lines.
  4. The clerk of the county court shall within thirty (30) days after establishing any new township or altering any existing township line, provide the Secretary of State a certified copy of the record made.
  5. If any county clerk in this state has not furnished the Secretary of State with a description of the several townships in the county, it shall be the duty of the county court to direct the clerk of that court to provide the Secretary of State with the description.
  6. Whenever the county court of any county in this state orders the formation of one (1) or more new townships or changes the boundary lines of any of the townships in the county, which formation or change shall require additional township officers, the additional township officer or officers shall be filled in accordance with Arkansas Constitution, Article 7, § 50 [repealed].

History. Acts 1977, No. 742, § 32; 1979, No. 413, § 4; A.S.A. 1947, § 17-3401; Acts 1997, No. 1090, § 1.

Publisher's Notes. Sections 1 and 4 of Amendment 55 to the Arkansas Constitution set forth specific powers assigned to the quorum court. One of these, as provided in Ark. Const. Amend. 55, § 4, is the power to fill vacancies in elective county offices. Arkansas Ark. Const. Amend. 55, § 7 provides that §§ 1 and 4 of the amendment shall be effective on January 1, 1977. Arkansas Ark. Const. Amend. 55 was adopted at the general election on November 5, 1974.

Cross References. Elective offices, Ark. Const., Amend. 29, § 1.

Case Notes

Appeals.

On appeal from the action of the circuit court in considering action of county court in alteration of townships (now quorum court districts), Supreme Court would not consider the preponderance of the evidence, but only the question of whether there was substantial evidence to support the judgment of the trial court. Caldwell v. Board of Election Comm'rs, 236 Ark. 719, 368 S.W.2d 85 (1963) (decision under prior law).

Power of County Courts.

It was unnecessary to determine whether board of election commissioners had power to file petition in county court for change of township (now quorum court districts) boundaries, since county court would have had such power on its own initiative. Garland County Bd. of Election Comm'rs v. Ennis, 227 Ark. 880, 302 S.W.2d 76 (1957) (decision under prior law).

County courts have full power over the formation of townships (now quorum court districts) in their respective counties, including the power to abolish townships already formed. Caldwell v. Board of Election Comm'rs, 236 Ark. 719, 368 S.W.2d 85 (1963) (decision under prior law).

Cited: Farnsworth v. White County, 39 Ark. App. 98, 839 S.W.2d 229 (1992); Riley v. Baxter County Election Comm'n, 311 Ark. 273, 843 S.W.2d 831 (1992); Gravett v. Villines, 314 Ark. 320, 862 S.W.2d 260 (1993).

14-14-402. Number of districts.

The number of convenient quorum court districts to be established in each county shall be determined according to the following population categories:

Quorum Court Districts Population 9 0 to 19,999 11 20,000 to 49,999 13 50,000 to 199,999 15 200,000 and above

Click to view table.

History. Acts 1977, No. 742, § 33; 1979, No. 413, § 4; A.S.A. 1947, § 17-3402.

Research References

U. Ark. Little Rock L.J.

Survey of Arkansas Law, Public Law, 1 U. Ark. Little Rock L.J. 230.

Case Notes

Cited: Riley v. Baxter County Election Comm'n, 311 Ark. 273, 843 S.W.2d 831 (1992).

14-14-403. Apportionment of districts.

  1. The county board of election commissioners in each county shall be responsible for the apportionment of the county into quorum court districts. Until otherwise changed in the method set forth in this subchapter, the districts of each county shall consist of the territory of the township established by the county board of election commissioners on or before November 3, 1975, pursuant to the provisions of Acts 1975, No. 128 [repealed]. Thereafter, districts shall be apportioned on or before the first Monday after January 1, 1982, and each ten (10) years thereafter.
  2. All apportionments shall be based on the population of the county as of the last federal decennial census, and the number of districts apportioned shall be equal to the number to which the county is entitled by law.
  3. The provisions of this subchapter shall not be construed to affect the composition of the county committees of the political parties, and the county committee of each political party shall designate the geographic area within the county from which county committee members shall be selected.

History. Acts 1977, No. 742, § 34; 1979, No. 413, § 4; A.S.A. 1947, § 17-3403.

Publisher's Notes. Acts 1975, No. 128, was repealed by Acts 1977, No. 742, § 117.

Case Notes

Constitutionality.

Unit voting systems which contain varying populations are unconstitutional per se because they deny residents equal representation ensured by U.S. Const. Amend. 14. Riley v. Baxter County Election Comm'n, 311 Ark. 273, 843 S.W.2d 831 (1992).

Purpose.

The overriding objective of apportionment must be substantial equality of population among the various districts. Riley v. Baxter County Election Comm'n, 311 Ark. 273, 843 S.W.2d 831 (1992).

The primary consideration of reapportionment is the numerical equality of the districts, or fair and effective representation for all citizens. Riley v. Baxter County Election Comm'n, 311 Ark. 273, 843 S.W.2d 831 (1992).

Burden of Proof.

Population variation among districts greater than 10% is a prima facie violation of the equal protection clause, and after such a prima facie case is established, the burden of proof shifts to the defendant to justify the variances. Riley v. Baxter County Election Comm'n, 311 Ark. 273, 843 S.W.2d 831 (1992).

Trial court did not err in finding that county election commission overcame prima facie case of discrimination, where 10.149% variance in quorum court districts was only slightly over the acceptable 10% variation, and the systematic approach taken by the commission revealed a rational policy of redistricting which justified the end result that two of 11 districts were over the 10% acceptable variance by four and three voters, respectively. Riley v. Baxter County Election Comm'n, 311 Ark. 273, 843 S.W.2d 831 (1992).

14-14-404. Federal decennial census data.

The Board of Apportionment shall provide each of the respective county boards of election commissioners with the appropriate and necessary federal decennial census information, not less than ninety (90) days prior to the date established for apportionment of county quorum court districts.

History. Acts 1977, No. 742, § 35; 1979, No. 413, § 4; A.S.A. 1947, § 17-3404.

Case Notes

Cited: Riley v. Baxter County Election Comm'n, 311 Ark. 273, 843 S.W.2d 831 (1992).

14-14-405. Filing and publishing of plan.

  1. Not later than the date set for the apportionment of county quorum court districts, the county board of election commissioners shall file its report with the clerk of the county court, setting forth the district boundaries and the number of inhabitants within them.
  2. Within fifteen (15) days of the filing of an apportionment plan, the clerk of the county court shall cause to be published in a newspaper of general circulation in the county the district boundaries apportioned and the number of inhabitants within them.

History. Acts 1977, No. 742, § 36; 1979, No. 413, § 4; A.S.A. 1947, § 17-3405.

Case Notes

Cited: Goldsby v. Brick, 281 Ark. 58, 661 S.W.2d 368 (1983); Riley v. Baxter County Election Comm'n, 311 Ark. 273, 843 S.W.2d 831 (1992).

14-14-406. Contest of apportionment.

Original jurisdiction of any suit to contest the apportionment made for county quorum court districts by a county board of election commissioners is vested in the circuit court of the affected county. Any such contest shall be filed with the circuit court within thirty (30) days following the date publication appears in a newspaper of general circulation.

History. Acts 1977, No. 742, § 37; 1979, No. 413, § 4; A.S.A. 1947, § 17-3406.

Case Notes

Suits to Contest.

To seek to set aside an apportionment plan filed and published in accordance with statutorily approved procedures is a contest in the sense contemplated by this section, which imposes a 30-day time limit on such suits. Goldsby v. Brick, 281 Ark. 58, 661 S.W.2d 368 (1983).

14-14-407. Certification of plan.

The clerk of the county court, within seven (7) calendar days following the expiration of the time period provided for the filing of contest of an apportionment plan, shall transmit to the Secretary of State a certified copy of the record made of an apportionment plan.

History. Acts 1977, No. 742, § 38; A.S.A. 1947, § 17-3407.

Subchapter 5 — Organization Generally

Effective Dates. Acts 1977, No. 742, § 118: Mar. 24, 1977. Emergency clause provided: “It is hereby found by the General Assembly that the passage of Amendment 55 to the Arkansas Constitution has caused major changes in the structure of county government and that, because of said changes, a need exists to modernize laws affecting county government. It is further found that the citizens of the several counties of the State are in need of services provided by county governments and said services can best be provided under the provisions of this Act. Therefore, an emergency is hereby declared to exist and this Act, being necessary for the public health, welfare and safety, shall be in effect from and after its passage and approval.”

Acts 2001, No. 997, § 2: July 1, 2001.

Acts 2001, No. 997, § 3: Mar. 21, 2001. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that portions of Amendment 80 to the Constitution of the State of Arkansas which merge courts of law and equity become effective July 1, 2001, and it is unclear what effect that will have on the county clerks' role as probate clerk; that this act should be effective July 1, 2001 to coincide with the related provisions of Amendment 80. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Research References

C.J.S. 20 C.J.S., Counties, § 42 et seq.

14-14-501. Body politic and corporate.

A county government is a body politic and corporate created by the General Assembly and subject to its exercise of power. However, county governments shall possess legislative powers not denied by the Arkansas Constitution or by law. As a corporate body, county governments shall have corporate and governmental powers, a corporate name, and perpetual succession subject to limitations imposed by the General Assembly.

History. Acts 1977, No. 742, § 39; A.S.A. 1947, § 17-3501.

14-14-502. Distribution of powers.

  1. Division. The powers of the county governments of the State of Arkansas shall be divided into three (3) distinct departments, each of them to be confined to a separate body, to wit: Those that are legislative to one, those that are executive to a second, and those that are judicial to a third.
    1. Legislative. All legislative powers of the county governments are vested in the quorum court. The people reserve to themselves the power to propose county legislative measures and to enact or reject them at the polls independent of the quorum court. The people also reserve to themselves the power, at their option, to approve or reject at the polls any entire ordinance enacted by a quorum court.
    2. Executive.
      1. The executive divisions of a county government shall consist of:
        1. The county judge, who shall perform the duties of the chief executive officer of the county as provided in Arkansas Constitution, Amendment 55, § 3, and as implemented in this chapter and who shall preside over the quorum court without a vote but with the power of veto;
        2. One (1) sheriff, who shall be ex officio collector of taxes unless otherwise provided by law;
        3. One (1) assessor;
        4. One (1) coroner;
        5. One (1) treasurer, who shall be ex officio treasurer of the common school fund of the county;
        6. One (1) surveyor; and
        7. One (1) clerk of the circuit court, who shall be clerk of the probate division of circuit court and ex officio clerk of the county court and recorder.
      2. There may be elected a county clerk in like manner as a circuit clerk, and in such cases, the county clerk may be ex officio clerk of the probate division of circuit court, if such division exists, of the county until otherwise provided by the General Assembly.
    3. Judicial. The judicial divisions of a county government are vested in the county court, except with respect to those powers formerly vested in the county court which, by the provisions of Arkansas Constitution, Amendment 55, are to be performed by the county judge, and in the respective courts of this state as provided by law.
  2. Limitations. No person or collection of persons being one of these departments, legislative, executive, or judicial, shall exercise any power belonging to either of the others, except in the instances expressly directed or permitted.

History. Acts 1977, No. 742, § 40; 1979, No. 413, § 5; A.S.A. 1947, § 17-3502; Acts 2001, No. 997, § 1.

Research References

U. Ark. Little Rock L.J.

Survey of Arkansas Law, Public Law, 1 U. Ark. Little Rock L.J. 230.

Case Notes

In General.

The clear division and separation of powers among the branches of county government provided by subsections (a) and (b) of this section makes it apparent that the government is no longer controlled and operated by only a single entity. Pulaski County v. Jacuzzi Bros., 317 Ark. 10, 875 S.W.2d 496 (1994).

Because terminated county employee's actions of reporting alleged misdeeds to quorum court members, sitting as a grievance committee, was reporting to the “appropriate authorities,” under § 21-1-602(2)(A)(ii), evidence supporting terminated employee's claim under the Whistle-Blower Act created a question of fact and it was thus an error for the trial court to have granted the county's motion for a directed verdict. Crawford County v. Jones, 365 Ark. 585, 232 S.W.3d 433 (2006).

Cited: Walker v. County of Washington, 263 Ark. 317, 564 S.W.2d 513 (1978); Davis v. Fulton County, 884 F. Supp. 1245 (E.D. Ark. 1995).

Subchapter 6 — Alternative Organizations

Effective Dates. Acts 1977, No. 742, § 118: Mar. 24, 1977. Emergency clause provided: “It is hereby found by the General Assembly that the passage of Amendment 55 to the Arkansas Constitution has caused major changes in the structure of county government and that, because of said changes, a need exists to modernize laws affecting county government. It is further found that the citizens of the several counties of the State are in need of services provided by county governments and said services can best be provided under the provisions of this Act. Therefore, an emergency is hereby declared to exist and this Act, being necessary for the public health, welfare and safety, shall be in effect from and after its passage and approval.”

Research References

C.J.S. 20 C.J.S., Counties, § 42 et seq.

U. Ark. Little Rock L.J.

Survey of Arkansas Law, Public Law, 1 U. Ark. Little Rock L.J. 230.

Case Notes

Authority Generally.

No county is authorized to pass an ordinance reorganizing its government in a manner contrary to the general law of the state. Clark County v. Miller, 291 Ark. 203, 723 S.W.2d 820 (1987).

14-14-601. Legislative determination — Purpose.

  1. It is determined by the General Assembly that:
    1. The present structure of county government does not meet the needs of every county in the state;
    2. County government can be made more responsive to the wishes of the people through selected structural changes and consolidation; and
    3. Greater economy, efficiency, and effectiveness in providing governmental services can be achieved through modernization of county government.
  2. It is the purpose of this subchapter to:
    1. Establish the basic procedures for the adoption and implementation of alternative county government organization pursuant to Arkansas Constitution, Amendment 55, § 2(b), which provides: “The Quorum Court may create, consolidate, separate, revise, or abandon any elective county office or offices except during the term thereof; provided, however, that a majority of those voting on the question at a general election have approved said action.”; and
    2. Provide the citizens of each county the opportunity to select the form of county government organization which best serves their needs and desires.

History. Acts 1977, No. 742, §§ 54, 55; A.S.A. 1947, §§ 17-3701, 17-3702.

Case Notes

Cited: Clark County v. Miller, 291 Ark. 203, 723 S.W.2d 820 (1987).

14-14-602. Definitions.

As used in this subchapter, unless the context otherwise requires:

  1. “Abandon” means to desert, surrender, forsake, or to give up absolutely;
  2. “Consolidate” means to unite offices into one (1) office;
  3. “Create” means to bring into being, to cause to exist, to produce;
  4. “Revise” means to review, reexamine for correction or for the purpose of amending, correcting, rearranging, or otherwise improving; and
  5. “Separate” means to disunite, divide, disconnect, or sever.

History. Acts 1977, No. 742, § 58; A.S.A. 1947, § 17-3705.

14-14-603. Offices included.

  1. Within the purposes of this chapter, the term “elective county office” shall mean any office created under the provisions of Arkansas Constitution Article 7, § 19, as amended by Arkansas Constitution, Amendment 24, § 3, and Arkansas Constitution, Article 7, § 46.
  2. The elective county offices established by these constitutional provisions are:
    1. One (1) sheriff, who shall be ex officio collector of taxes, unless otherwise provided by law;
    2. One (1) collector of taxes, where established by law;
    3. One (1) assessor;
    4. One (1) coroner;
    5. One (1) treasurer, who shall be ex officio treasurer of the common school fund;
    6. One (1) surveyor;
    7. One (1) clerk of the circuit court, who shall be clerk of the probate division of circuit court and ex officio clerk of the county court and recorder, unless otherwise provided by law; and
    8. One (1) county clerk, where established by law.

History. Acts 1977, No. 742, § 56; A.S.A. 1947, § 17-3703.

14-14-604. Offices excluded.

Offices expressly excluded from the provisions of this subchapter are:

  1. The judge of the county court created pursuant to Arkansas Constitution, Article 7, § 28, such office being an “elective county office” but not deemed separable from the county court which serves as a principal element of county government and constitutional organization;
  2. Justices of the peace who are deemed district offices; and
  3. Constables who are deemed township offices and who are not within the provisions of Arkansas Constitution, Amendment 55, § 2(b).

History. Acts 1977, No. 742, § 57; 1979, No. 413, § 11; A.S.A. 1947, § 17-3704.

Case Notes

Constables.

While the plain language of § 14-14-1207 authorized reimbursement for district officials, a constable was not a district official, but a township officer under constitutional and statutory law, and thus, the statute did not authorize the reimbursement of expenses for constables, and the circuit court did not err in denying the constable's claim for expenses. Graves v. Greene County, 2013 Ark. 493, 430 S.W.3d 722 (2013).

Limitation on Powers.

County ordinance failed because of the power it granted to the county judge to prepare payroll warrants. This section provides expressly that the offices of county judge, justice of the peace, and constable are excluded from the provisions of this subchapter, and those offices may not be revised pursuant to Ark. Const. Amend. 55. Clark County v. Miller, 291 Ark. 203, 723 S.W.2d 820 (1987).

14-14-605. Authority to adopt alternative provisions — Options.

  1. Each county quorum court may adopt, by ordinance, any one (1) or more of the alternative county government organizational provisions established in this subchapter if the electors have approved the adoption of the proposed provisions by majority vote at a general election.
  2. Alternative organizational proposals may include any one (1) or all of the following options. The principal officer of the office to be affected by the alternate organizational proposal shall be:
    1. Elected;
    2. Appointed in a manner prescribed by ordinance;
    3. Appointed by a county government board in a manner prescribed by ordinance;
    4. Selected as provided by ordinance; or
    5. Not included in the proposed alternative county organization as a separate office.

History. Acts 1977, No. 742, § 59; A.S.A. 1947, § 17-3706.

14-14-606. Analysis of each office required.

  1. All proposals for alternative county government organization adopted by a county quorum court through ordinance for referral to the electors, or an initiative petition referring an alternative organization proposal to the electors, shall be based on a comprehensive analysis of each office or department included in the ordinance or proposal.
  2. The analysis of each office or department shall consist of the following requirements:
    1. A comprehensive analysis of the existing office or department organization included in the proposal and the procedures established for providing governmental services;
    2. A comprehensive comparative analysis of the proposed alternative organization with regard to improved efficiency, effectiveness, responsiveness, and accountability to the people;
    3. The preparation of a proposed plan of organization embodying the selected characteristics to be referred to the electors. The plan shall:
      1. Establish the procedures for the election or appointment of any new officers. However, any appointive officer shall be deemed a part of the executive branch and, as such, shall be appointed by, and be responsible to, the county judge;
      2. Provide for the scheduling of any necessary transfer of powers, records, documents, properties, assets, funds, liabilities, and bonding which result from the changes in a proposed county organization;
      3. Provide for the continuity, where necessary, of existing officers and offices, the abolition of offices or their change from elective to appointive status, and the making of interim and temporary appointments; and
      4. Provide that the plan may be prepared in narrative form but shall be finally embodied in a single or series of ordinances styled in a manner provided by law.

History. Acts 1977, No. 742, § 60; 1979, No. 413, § 12; A.S.A. 1947, § 17-3707.

14-14-607. Initiation and conduct of analysis.

  1. Initiation. Any justice of the peace of each county may propose the initiation of an analysis for alternative county organization through the introduction and passage of an ordinance, or the initiation may be accomplished by an initiative petition of the electors.
  2. Conduct of Analysis. An ordinance adopted for conduct of an analysis of alternative county organizations shall provide for:
    1. The final date of completion of the analysis;
    2. The employment of any staff or other financial support where deemed necessary;
    3. The conduct of the analysis; and
    4. The selection of any one (1), or any combinations, of the following methods of conduct:
      1. Directly by the county quorum court through the establishment of an office or department;
      2. By interlocal agreement;
      3. By purchasing the analysis services from a private or public vendor; or
      4. By establishing a county board in a manner prescribed by the ordinance.

History. Acts 1977, No. 742, § 61; A.S.A. 1947, § 17-3708.

14-14-608. Limitations on adoption of alternatives.

  1. Services to be Maintained. A county government serving as a political subdivision of the state for the more convenient administration of justice is compelled by law to provide certain services relating to judicial administration, law enforcement, and other matters. No county ordinance adopted by the electors for the establishment of alternative county organizations shall serve to repeal or diminish any general law of the state directing or requiring a county government or any officer or employee of a county government to carry out any function or provide any service. However, nothing in this section shall be construed to limit or prevent counties from adopting alternative county organizations nor the reassignment of statutorily delegated functions or services where such alternative organization or reassignment shall not alter the obligation of the county to continue providing the services or functions which are or may be established by state law.
  2. Transfer of Duties. To encourage that a minimum level of consistency shall be maintained in county governments throughout the state, the following organizational limitations may apply where any one (1) or all elective county offices are abolished and consolidated, however, nothing in this section shall be construed to limit the consolidation of any nonelected county office or department by two (2) or more adjoining counties through interlocal agreement:
    1. All duties prescribed by law for the clerk of the circuit court may be assigned to a county department of records and court services;
    2. All duties prescribed by law for a county clerk exclusive of county financial management duties may be assigned to a county department of records and court services;
    3. All duties prescribed by law for a county clerk relating to county financial management may be assigned to a county department of financial management;
    4. All duties prescribed by law for the sheriff serving as an officer of the courts and law enforcement may be assigned to a county department of public safety;
    5. All duties prescribed by law for a sheriff serving as the collector of taxes may be assigned to a county department of financial management;
    6. All duties prescribed by law for a collector of taxes may be assigned to a county department of financial management;
    7. All duties prescribed by law for an assessor may be assigned to a county department of records and court services;
    8. All duties prescribed by law for a surveyor may be assigned to a county department of records and court services;
    9. All duties prescribed by law for a coroner may be assigned to a county department of records and court services; and
    10. All duties prescribed by law for a treasurer may be assigned to a county department of financial management. However, any plan for alternative county organization adopted by the electors which includes the abolishment of the treasurer as an elective office shall provide in that plan for the establishment of financial controls. The plan of financial controls shall not vest sole financial administration in a single elected official or in a department which is administratively controlled by the elected official.

History. Acts 1977, No. 742, § 62; 1979, No. 413, § 13; A.S.A. 1947, § 17-3709.

Case Notes

Reassignment of Duties.

While the general law of the state requires the office of sheriff to be maintained and includes as a duty of the office of sheriff the running of the county jail, this section allows a county to reassign statutorily imposed duties so long as the reassignment does not “alter the obligation of the county to continue providing the services.” Gravett v. Villines, 314 Ark. 320, 862 S.W.2d 260 (1993).

Sole Financial Administration.

Regarding the provisions of this section prohibiting the placement of “sole financial administration” in a single official or department, the court rejected the contention that “sole financial administration” meant all the subparts of administration including account, budgeting, and auditing, and not just the collecting and accounting revenues. Clark County v. Miller, 291 Ark. 203, 723 S.W.2d 820 (1987).

County ordinance which vested sole financial administration in a newly created office of tax and revenue was in violation of this section. Clark County v. Miller, 291 Ark. 203, 723 S.W.2d 820 (1987).

14-14-609. Referendum on proposed plan.

  1. All questions on alternative county organization as proposed by ordinance of the county quorum court, or as proposed by initiated petitions filed by electors of the county pursuant to Arkansas Constitution, Amendment 7, shall be submitted to the electors of a county only at the general election following the adoption of the ordinance or filing of the petitions.
    1. Any ordinance or initiative petition submitting an alternative organization proposal to the voters shall be published in a newspaper of general circulation within the county no later than the first day of filing for the preferential primary immediately preceding the general election at which the alternative county government proposal shall be decided.
    2. If approved by a majority of those voting on the question, the proposed plan for alternative county organization shall become effective on January 1 following the general election at which the plan was approved by the electors, or two (2) years following the general election at which the plan was approved by the electors.

History. Acts 1977, No. 742, § 63; 1979, No. 413, § 14; A.S.A. 1947, § 17-3710.

14-14-610. Election results.

  1. An affirmative majority vote by the electors voting on the adoption of an alternative county organization plan shall be deemed the will of the people.
  2. The election of any candidate during the same general election for any office consolidated, abandoned, or established as an appointive office by an adopted plan of alternative county organization shall be considered null and void.

History. Acts 1977, No. 742, § 64; A.S.A. 1947, § 17-3711.

14-14-611. Appointment of interim officers.

Where a proposed plan approved by the electors for alternative county organization provides for the creation of any elective office by consolidation of two (2) or more offices, the proposed plan shall establish procedures for the appointment of an interim officer, who shall serve in the office so created from the effective date of the plan and until the next general election, or until a successor is elected and qualified. The appointee shall meet all requirements prescribed by law for appointment to an elective office.

History. Acts 1977, No. 742, § 65; A.S.A. 1947, § 17-3712.

14-14-612. Abandonment of alternative plan.

  1. A county quorum court may abandon any alternative county organization plan, or any part or section thereof, adopted by the electors pursuant to this subchapter, by referral and adoption of a revised organizational plan at a general election. However, no revised alternative county organization plan shall be considered by the electors until four (4) years have elapsed after the date of the referendum at which the original plan was adopted.
  2. Nothing in this section, however, shall be construed as a limitation on a quorum court to submit a proposal to the electors at a general election for multicounty consolidation of an elective office.

History. Acts 1977, No. 742, § 66; A.S.A. 1947, § 17-3713.

14-14-613. Multicounty consolidations of offices and departments.

  1. Any two (2) or more adjoining counties may consolidate functionally similar county offices or departments, either elective or appointive, pursuant to the provisions of Arkansas Constitution, Amendment 55, §§ 1(c) and 2(b).
    1. Consolidation of Elective Offices.
      1. Initiation. Proposals for the consolidation of elective county offices may be initiated by the county quorum courts of each affected county by entering into an interlocal agreement and adoption of an ordinance for referral to the electors of each respective county, or by the filing of an initiative petition signed by not less than fifteen percent (15%) of the qualified voters as provided by law.
      2. Plan of Proposed Alternative Organization Required. All proposals for multicounty consolidation of elective offices referred to the electors shall be prepared in the manner prescribed by law for alternative county government organization proposals affecting a single county. Where applicable and possible, multicounty elective office consolidation proposals should be planned, combined, and referred to the electors jointly with proposals referring alternative single county organizations.
      3. Multicounty Consolidation Agreements Required. All interlocal agreements for consolidation of any elective office shall specify the offices to be consolidated, the duties and responsibilities of the consolidated offices, procedures for the selection and reassignment of personnel, procedures for the transfer of powers, records, documents, properties, assets, funds, and liabilities, and for the possible termination of the agreement. The agreement shall also provide for apportionment of the cost of the consolidated office, based on the equalized taxable valuation or the population, or a combination thereof, of the counties involved. The agreement may contain other provisions pertaining to the consolidated office that the participating counties deem necessary or advisable. Each interlocal agreement shall be adopted through ordinance by the quorum court of each county affected prior to submission to the electors.
      4. Referendum on Elective Office Consolidation. The question of multicounty consolidation of elective county offices shall be submitted to the electors in the affected counties at the next general election following the adoption of the agreements by the quorum courts. If approved by a majority of those voting on the question in each county, the proposed consolidation shall become effective on January 1 following the general election at which the consolidation was approved by the electors.
      5. Appointment of Interim Officer. All proposed multicounty consolidation agreements for a county elective office referred to the electors shall establish procedures for the appointment of an interim officer who shall serve in the consolidated office from the effective date of the agreement until the next general election or until his or her successor is elected and qualified. Such an appointee to an elective office shall meet all requirements prescribed by law for appointment to an office. The appointee to a multicounty elective office shall be deemed to be a district officer and shall be appointed by the Governor.
      6. Precedence of Election. An affirmative majority vote by the electors voting on the issue of multicounty consolidation of elective offices in each respective county shall be deemed the will of the people. The election of a candidate in each respective county for the offices affected by the adopted consolidation proposals shall be considered null and void.
      7. Elections for Multicounty Consolidated Offices. Election for multicounty consolidated offices shall be conducted at the next general election following the establishment of the consolidated office. Elections of persons for consolidated county offices shall be held in the same manner as prescribed for the election of district officers. A candidate for a consolidated county office shall possess the same qualifications for election as required of a candidate for the same office in a single county. The candidate for a consolidated county office receiving a majority of votes cast for the office in the affected counties, taken together, shall be elected. If no candidate receives a majority of votes cast for the office, a runoff election between the two (2) candidates receiving the highest number of votes cast shall be held in the same manner as a runoff election for district officers.
      8. Abandonment of a Multicounty Consolidated Elective Office Plan. A quorum court may abandon any multicounty consolidated elective office plan, or any part or section thereof, adopted by the electors in their respective county by referring the revised plan to the electors at a general election. However, no revised plan for multicounty elective office consolidation shall be considered by the electors until four (4) years have elapsed after the date of the referendum at which the original plan for consolidation was adopted.
    2. Consolidation of Nonelective County Offices or Departments.
      1. Authority to Adopt Consolidation Plans. Proposals for multicounty consolidation of nonelective county offices or departments may be introduced and adopted by the quorum court of each respective county by entering into an interlocal agreement by ordinance in each affected county. The consolidation of nonelective county offices or departments need not be referred to the electors for approval. However, any such ordinance shall be subject to the provisions of initiative and referendum in each respective county entering into such agreements.
      2. Multicounty Consolidation Agreements Required. All interlocal agreements for consolidation of nonelective county offices shall conform to the requirements of interlocal agreements prescribed by law.

History. Acts 1977, No. 742, § 67; A.S.A. 1947, § 17-3714.

14-14-614. Severability of ballot titles.

  1. Ballot Title.
    1. Upon receipt of an alternative county organization proposal for either a single county or multicounty which is to be referred to the electors, it shall be the duty of the members of the county board of election commissioners to take due cognizance and to certify the results of the vote cast thereon.
    2. Where the proposed measure is referred through more than one (1) or a series of ordinances, the board shall cause the ballot title of each separate ordinance to be placed on the ballot to be used in the election. The ballot shall state plainly and separately the title of each ordinance referred to the electors.
  2. Severability. If a single ordinance relating to a proposal for alternative county organization is rejected by the electors, the rejection shall not affect any other ordinance so adopted by the electors; or if any provision of an ordinance adopted by the electors for alternative county organization or the application thereof to any person or circumstance is held invalid, the invalidity shall not affect other provisions or applications of the ordinance which can be given effect without the invalid provisions or application. The provisions of any single ordinance and the validity of each voted upon by separate ballot titles are declared to be severable.

History. Acts 1977, No. 742, § 68; A.S.A. 1947, § 17-3715.

Subchapter 7 — Service Organizations

Cross References. City-county tourist meeting and entertainment facilities, § 14-171-201 et seq.

County museums, § 13-5-501 et seq.

Fire protection districts outside cities and towns, § 14-284-201 et seq.

Preambles. Acts 1981, No. 874 contained a preamble which read:

“Whereas, Section 106, of Chapter 6 of Act 742 of 1977 authorized the counties of this State to establish county subordinate service districts, providing for the purposes of creating such districts as well as financing, establishment and administrative procedures; and

“Whereas, Act 919 of 1979 repealed Section 106 of Chapter 6 of Act 742 of 1977 but did provide for the establishment of county subordinate service districts created for particular purposes but did not provide for financing, establishment or administrative procedures; and

“Whereas, there presently exists a state of confusion as to the legality of future subordinate service districts; and

“Whereas, this Act is necessary to clarify the present state of confusion;

“Now, therefore….”

Effective Dates. Acts 1977, No. 742, § 118: Mar. 24, 1977. Emergency clause provided: “It is hereby found by the General Assembly that the passage of Amendment 55 to the Arkansas Constitution has caused major changes in the structure of county government and that, because of said changes, a need exists to modernize laws affecting county government. It is further found that the citizens of the several counties of the State are in need of services provided by county governments and said services can best be provided under the provisions of this Act. Therefore, an emergency is hereby declared to exist and this Act, being necessary for the public health, welfare and safety, shall be in effect from and after its passage and approval.”

Acts 1977 (1st Ex. Sess.), No. 13, § 13: Aug. 15, 1977. Emergency clause provided: “It is hereby found and determined by the General Assembly that it is essential to the well being of the residents of the various counties that the county hospitals in the respective counties be under the management, control and operation of a separate Board of Governors selected and functioning in substantially the same manner as was provided for in Act 481 of 1949 and acts amendatory and supplemental thereto; that this Act is designed to substantially reenact the laws relating to County Hospital Boards of Governors which were repealed by Act 742 and to amend Section 107 of Act 742 to exempt County Hospital Boards of Governors from the reorganization provided for therein, and to thereby insure the continued effective and efficient operation of the various county hospitals under the supervision and direction of the respective County Boards of Governors in substantially the same manner as was provided for in the laws repealed by Act 742 and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Research References

U. Ark. Little Rock L.J.

Survey of Arkansas Law, Public Law, 1 U. Ark. Little Rock L.J. 230.

14-14-701. Legislative determination — Purpose.

  1. It is determined by the General Assembly that:
    1. The present service organization of county government does not meet the needs of every county in this state; and
    2. County governments can be made more responsive to the service needs of the people through the reorganization of county government into departments, boards, and subordinate service districts which are consistent in their organization and assignment of duties, responsibilities, and authorities.
  2. It is therefore the purpose of this subchapter to:
    1. Establish the basic procedures for the establishment of service organizations in county government; and
    2. Establish the authorities and limitations of these service organizations.

History. Acts 1977, No. 742, §§ 98, 99; A.S.A. 1947, §§ 17-4101, 17-4102.

Case Notes

Cited: Eaton v. McCuen, 273 Ark. 154, 617 S.W.2d 341 (1981); Freeman v. Curry, 299 Ark. 263, 772 S.W.2d 586 (1989); Gravett v. Villines, 314 Ark. 320, 862 S.W.2d 260 (1993).

14-14-702. Authority to establish — Restrictions.

The county quorum court of each county may prescribe, by ordinance, the department, board structure, and organization of their respective county governments and may prescribe the functions of all offices, departments, and boards. However, no ordinance shall be enacted by a quorum court which:

  1. Divests the county court of any of its original jurisdictions granted by the Arkansas Constitution. However, where any county ordinance establishing a department or board and the assignment of functions thereof interferes with the jurisdictions of the county court, it shall be implied that the functions and acts may be performed on order of the county court or proper order of superior courts on appeal;
  2. Alters the organization of elected county officials established by the Arkansas Constitution, except through the provisions of Arkansas Constitution, Amendment 55, § 2(b). However, any function or duty assigned by statute may be reassigned by ordinance; or
  3. Limits any provision of state law directing or requiring a county government or any officer or employee of a county government to carry out any function or provide any service. However, nothing in this section shall be construed to prevent the reassignment of functions or services assigned by statute where Arkansas reassignment does not alter the obligation of the county to continue providing the function or service.

History. Acts 1977, No. 742, § 100; A.S.A. 1947, § 17-4103.

Case Notes

Government Reorganization.

Notwithstanding the power of quorum courts under Ark. Const. Amend. 55, § 2(b) and subdivision (2) of this section, no county is authorized to pass an ordinance reorganizing its government in a manner contrary to the general law of the state. Gravett v. Villines, 314 Ark. 320, 862 S.W.2d 260 (1993).

Cited: Roberts v. Watts, 263 Ark. 822, 568 S.W.2d 1 (1978).

14-14-703. Office organization of county government.

  1. Unless otherwise provided or permitted by the Arkansas Constitution, county governments shall maintain the following organization of elected county offices:
    1. Office of the County Judge. The judge of the county court serves as the principal executive officer of the county and may establish divisions of his or her office to carry out any jurisdiction of the county court or duties assigned by county ordinance. No such delegation of administrative functions among departments of the office shall be construed as limiting or delegating any jurisdiction of the county court. Further, the county court may appoint advisory committees to assist in the formulation of policy for any department of the office. However, confirmation by the county quorum court of advisory committees so appointed or the oath of office is not required; and
    2. Other Executive Offices of the County. As established by the Arkansas Constitution, the organization of county offices shall include:
      1. The office of treasurer;
      2. The office of county clerk, as may be provided by law;
      3. The office of assessor;
      4. The office of clerk of the circuit court;
      5. The office of sheriff;
      6. The office of collector of taxes, as may be provided by law;
      7. The office of surveyor; and
      8. The office of coroner.
  2. Any executive officer of the county may establish divisions of the office to conduct any function or duty assigned by the Arkansas Constitution or by law.

History. Acts 1977, No. 742, § 101; A.S.A. 1947, § 17-4104.

Case Notes

Cited: Gravett v. Villines, 314 Ark. 320, 862 S.W.2d 260 (1993).

14-14-704. Establishment of county departments.

  1. The county quorum court of each county, by ordinance, may establish any number of departments for the conduct of county affairs and may prescribe the functions and duties of each department. This authority of a quorum court to establish county departments shall be conclusive and shall supersede any department organizations established by any elected county officer.
    1. Direction of Departments. All departments established by ordinance of the quorum court shall be under the direction and supervision of county judge except departments assigned to other elected officers of the county. Departments established and assigned to an elected officer other than the county judge shall be under the direction and supervision of the respective county officer.
    2. Joint Departments. Two (2) or more county governments may provide for the establishment of joint departments for the conduct of county affairs. Joint departments so created shall be established by interlocal agreements. The direction and supervision of joint departments shall be under the combined authorities of the county judge of each respective county in a manner to be prescribed by ordinance.
    3. Employment of Department Administrator. An ordinance establishing a department of county government may provide for the employment of a department administrator. The ordinance may prescribe minimum qualifications for the person so employed as administrator. However, the county judge alone shall employ all county personnel, except employees of other elected county officers. Where a department is established by the quorum court and the responsibility for direction and supervision of the department is assigned to an elected county officer other than the county judge, the elected county officer so designated shall employ all personnel authorized to be employed by the ordinance.
    4. Management Reports. A quorum court may require, by ordinance, reports for any purpose from any elective county office, department, board, or subordinate service district, or any administrator or employee of them.

History. Acts 1977, No. 742, § 102; A.S.A. 1947, § 17-4105.

14-14-705. County advisory or administrative boards.

  1. A county quorum court, by ordinance, may establish county advisory or administrative boards for the conduct of county affairs.
    1. Advisory Boards.
      1. An advisory board may be established to assist a county office, department, or subordinate service district. The advisory board may furnish advice, gather information, make recommendations, and perform other activities as may be prescribed by ordinance. A county advisory board shall not have the power to administer programs or set policy.
      2. All advisory board members shall be appointed by the county judge. Confirmation of advisory board members by a quorum court shall not be required.
      3. An advisory board may contain any number of members as may be provided by the ordinance creating the advisory board.
      4. The term of all advisory board members shall not exceed three (3) years.
    2. Administrative Boards.
      1. Administrative boards may be established to exercise administrative powers granted by county ordinance, except that the board may not be authorized to pledge the credit of the county. The administrative board shall be a body politic and corporate, with power to contract and be contracted with and sue and be sued. As to actions of tort, the board shall be considered as an agency of the county government and occupy the same status as a county. No board member shall be liable in court individually for an act performed by him or her as a board member unless the damages caused thereby were the results of the board member's malicious acts.
      2. No member of any administrative board shall be interested, either directly or indirectly, in any contract made with the administrative board. A violation of subdivision (2)(B) of this section shall be deemed a felony.
      3. An administrative board may be assigned responsibility for a county department or a subordinate service district.
      4. All administrative board members shall be appointed by the county judge. These appointments shall require confirmation by a quorum court.
      5. An administrative board shall contain five (5) members. Provided, a county library board created after August 1, 1997, shall consist of not less than five (5) members nor more than seven (7) members and shall serve until their successors are appointed and qualified.
      6. The term of any administrative board member shall be for a period of five (5) years. However, the initial appointment of any administrative board shall provide for the appointment of one (1) member for a one-year term, one (1) member for a two-year term, one (1) member for a three-year term, one (1) member for a four-year term, and the remaining member or members for a five-year term, thereby providing, except for county library boards with more than five (5) members, for the appointment of one (1) member annually thereafter.
    3. Boards Generally.
      1. No board member, either advisory or administrative, shall be appointed for more than two (2) consecutive terms.
      2. All persons appointed to an advisory or administrative board shall be qualified electors of the county. A quorum court may prescribe by ordinance additional qualifications for appointment to a county administrative board.
      3. All board members appointed to either an advisory or administrative board shall subscribe to the oath of office within ten (10) days from the date of appointment. Evidence of oath of office shall be filed with the county clerk. Failure to do so shall be deemed to constitute rejection of the office, and the county judge shall appoint a board member to fill the vacancy.
      4. No member of a quorum court shall serve as a member of a county advisory or administrative board.
      5. A person may be removed from a county board for cause by the county judge with confirmation by resolution of the quorum court. Written notification stating the causes for removal shall be provided to the board member prior to the date established for quorum court consideration of removal, and the board member shall be afforded the opportunity to meet with the quorum court in their deliberation of removal.
      6. Appeals from removal of a county board member shall be directed to the circuit court of the respective county within thirty (30) days after the removal is confirmed by the quorum court.

History. Acts 1977, No. 742, § 103; A.S.A. 1947, § 17-4106; Acts 1997, No. 359, § 1.

14-14-706. Register of board appointment.

The clerk of the county court shall maintain a register of county advisory and administrative board appointments established by a county quorum court, including:

  1. The name of the board;
  2. The ordinance reference number establishing the board;
  3. The name of the board member;
  4. The date of appointment; and
  5. The expiration date of the appointments.

History. Acts 1977, No. 742, § 104; A.S.A. 1947, § 17-4107.

14-14-707. Conduct of affairs of county boards.

  1. Initial Meeting. The time and place for the initial meeting of a county board shall be established by the county judge through written notification of each board member.
  2. Meeting Dates and Notification. All boards shall by rule provide for the date, time, and place of regular monthly meetings or other regularly scheduled meetings. This information shall be filed with the county court, and notification of all meetings shall be conducted as established by law for public meetings.
  3. Special Meetings. Special meetings may be called by two (2) or more board members upon written notification of all members not less than two (2) calendar days prior to the calendar day fixed for the time of the meeting.
  4. Quorum. A majority of board members shall constitute a quorum for the purpose of conducting business and exercising powers and responsibilities. Board action may be taken by a majority vote of those present and voting unless the ordinance creating the board requires otherwise.
  5. Organization and Voting. At its initial meeting of a quorum of members, each county board shall elect one (1) of their members to serve as chair of the board for a term of one (1) year. The chair shall thereafter preside over the board throughout his or her term as chair. In the absence of the chair, a quorum of the board may select one (1) of its members to preside and conduct the affairs of the board.
  6. Minutes. All boards shall provide for the keeping of written minutes which include the final vote on all board actions indicating the vote of each individual member on the question.

History. Acts 1977, No. 742, § 105; A.S.A. 1947, § 17-4108.

14-14-708. Subordinate service districts generally.

  1. Authority to Establish. Subordinate service districts to provide one (1) or more of the services authorized to be provided by county governments may be established, operated, altered, combined, enlarged, reduced, or abolished by the county quorum court by ordinance.
  2. Area Served. A subordinate service district may include all, or any part, of the jurisdictional areas of county government. Two (2) or more county governments may create a joint subordinate service district by interlocal agreement.
  3. Purposes of District. A subordinate service district is defined as a county service organization established to provide one (1) or more county services or additions to county services and financed from revenues secured from within the designated service area through the levy and collection of service charges. These districts may be created for the following purposes:
    1. Emergency services, including ambulance services, civil defense services, and fire prevention and protection services;
    2. Solid waste services, including recycling services, and solid waste collection and disposal services;
    3. Water, sewer, and other utility services, including sanitary and storm sewers and sewage treatment services, water supply and distribution services, water course, drainage, irrigation, and flood control services; and
    4. Transportation services, including roads, bridges, airports and aviation services, ferries, wharves, docks, and other marine services, parking services, and public transportation services.
  4. Financing. Notwithstanding any provisions of law requiring uniform taxation within a county, a quorum court, by ordinance, may establish subordinate service districts and levy service charges to provide and finance any county service or function which a county is otherwise authorized to undertake.

History. Acts 1981, No. 874, § 1; 1983, No. 233, § 2; A.S.A. 1947, § 17-4109.

Case Notes

Creation.

As to ordinances creating a subordinate service district under repealed statute, see Eaton v. McCuen, 273 Ark. 154, 617 S.W.2d 341 (1981).

Mandatory Fees.

Before mandatory fees, and tax liens for those mandatory fees, can be imposed, there must be notice and a public hearing. Freeman v. Curry, 299 Ark. 263, 772 S.W.2d 586 (1989).

14-14-709. Establishment of subordinate service districts.

  1. Procedure Generally. A subordinate service district may be established by ordinance of the quorum court in the following manner:
    1. Upon petition to the quorum court by twenty-five percent (25%) of the number of realty owners within the proposed subordinate service district, the owners of twenty-five percent (25%) of the realty in the area of the proposed subordinate service district, and the owners of twenty-five percent (25%) of the assessed value of the realty within the proposed subordinate service district, the quorum court shall set a date for a public hearing and shall give notice of the hearing on the petition to form the proposed subordinate service district. Following the public hearing, the court may either adopt an ordinance creating the subordinate service district or refuse to act further on the matter;
    2. If hearings indicate that a geographic area desires exclusion from the proposed subordinate service district, the quorum court may amend the boundaries of the proposed subordinate service district to exclude the property in that area; and
    3. Where an ordinance is adopted establishing a subordinate service district, the quorum court, in addition to all other requirements, shall publish notice of the adoption of the ordinance. The notice shall include a statement setting out the elector's right to protest. If within thirty (30) days of the notice, twenty-five percent (25%) or more of the number of realty owners within the proposed subordinate service district, the owners of twenty-five percent (25%) of the realty in the area of the proposed subordinate service district, and the owners of twenty-five percent (25%) of the assessed value of the realty within the proposed subordinate service district file a written protest, by individual letter or petition, then the ordinance creating the subordinate service district shall be void.
  2. Ordinance Requirements. An ordinance to establish a subordinate service district shall include:
    1. The name of the proposed district;
    2. A map containing the boundaries of the proposed district;
    3. The convenience or necessity of the proposed district;
    4. The services to be provided by the proposed district;
    5. The estimated cost of services to be provided and methods of financing the proposed services. Service charges adopted by a quorum court shall be equally administered on a per capita, per household, per unit of service, or a combination of these methods. Service charges adopted by the court on a per capita or per household method shall be administered equally without regard to an individual or household availing themselves of the service; and
    6. The method for administering the proposed district.
  3. Initiative and Referendum. All provisions of Arkansas Constitution, Amendment 7, shall apply to the establishment of county subordinate service areas.

History. Acts 1981, No. 874, § 1; 1983, No. 233, § 2; A.S.A. 1947, § 17-4109; Acts 1993, No. 317, § 1.

Case Notes

Interference with Property Ownership.

The General Assembly intended for taxpayers to have notice and an opportunity for a special referendum before a substantial interference with property ownership, such as a tax lien, is imposed. Freeman v. Curry, 299 Ark. 263, 772 S.W.2d 586 (1989).

14-14-710. Modification or dissolution of subordinate service districts.

  1. Modification. A quorum court may, after adoption of an ordinance, with notice and public hearing:
    1. Increase, decrease, or terminate the type of services that the subordinate service district is authorized to provide unless fifty percent (50%) of the electors residing in the district protest;
    2. Enlarge the district to include adjacent land if fifty percent (50%) or more of the electors residing in the proposed addition do not protest;
    3. Combine the subordinate service district with another subordinate service district unless fifty percent (50%) of the electors in either district protest;
    4. Abolish the subordinate service district unless fifty percent (50%) of the electors in the district protest;
    5. Reduce the area of a district by removing property from the district unless fifty percent (50%) of the electors residing in the territory to be removed from the district protest;
    6. Change the method for administering the subordinate service district unless fifty percent (50%) of the electors in the district protest;
    7. All changes in subordinate service districts may be submitted to the electors of the existing or proposed district, whichever is larger, by initiative or referendum.
  2. Dissolution. As provided in this section, a quorum court may abolish or combine subordinate service districts by ordinance. Dissolution or any combination of service districts shall provide for the following considerations:
    1. The transfer or other disposition of property and other rights, claims, and assets of the district;
    2. The payment of all obligations from the resources of the district;
    3. The payment of all costs of abolishing or combining a district from the resources of the districts involved;
    4. The honoring of any bond, debt, contract, obligation, or cause of action accrued or established under the subordinate district;
    5. The provision for the equitable disposition of the assets of the district, for adequate protection of the legal rights of employees of the district, and for adequate protection of legal rights of creditors; and
    6. The transfer of all property and assets to the jurisdiction of the county court.

History. Acts 1981, No. 874, § 1; 1983, No. 233, § 2; A.S.A. 1947, § 17-4109.

14-14-711. Administration of subordinate service districts.

  1. Generally. A subordinate service district may be administered directly as a part of the office of the county judge, as a part of a department with or without an advisory or administrative board, or as a separate department with or without an advisory or administrative board.
  2. Budget. The budget for each subordinate service district shall be appropriated as other funds of the county.
  3. Tax Lists. Upon request, the county assessor shall provide the quorum court with the assessed or taxable value of all property in a proposed established subordinate service district and a list of property owners and residential structures based on the last completed assessment roll of the county.
  4. Service Charges.
      1. Service charges for subordinate service districts shall be entered on tax statements by the county sheriff or county collector pursuant to § 26-35-705 and shall be collected with the real and personal property taxes of the county.
      2. No collector of taxes shall accept payment of any property taxes if the taxpayer has been billed for services authorized by a subordinate service district unless the service charge is also receipted.
      3. If a property owner fails to pay the service charge, the service charge shall become a lien on the property.
    1. A subordinate service district may choose to forgo county collection of its annual service charges and instead collect its service charges on a suitable periodic basis if the subordinate service district provides its own billing and collection service.
  5. Use of Funds. Funds raised through service charges for a subordinate service district may be used only for subordinate service district purposes. These public funds shall be maintained in the county treasury and accounted for as an enterprise fund. Disbursements of all subordinate service district funds shall be made only upon voucher or claim presented to and approved by the county judge, acting in his or her capacity as the chief executive officer of the county, unless otherwise provided by ordinance establishing the district.

History. Acts 1981, No. 874, § 1; 1983, No. 233, § 2; A.S.A. 1947, § 17-4109; Acts 1995, No. 552, § 1; 2013, No. 537, § 1.

Amendments. The 2013 amendment rewrote (d)(1).

Case Notes

Mandatory Fees.

Before mandatory fees, and tax liens for those mandatory fees, can be imposed, there must be notice and a public hearing. Freeman v. Curry, 299 Ark. 263, 772 S.W.2d 586 (1989).

14-14-712. Reorganization of existing county boards and commissions.

  1. All laws providing for the organization, jurisdiction, and operation of county boards and commissions, except the laws relating to county hospital boards of governors and except laws relating to county nursing home boards, shall be given the status of county ordinance until June 30, 1978. These organizations shall continue to function under those respective laws until reorganized by county ordinance. The organizations subject to reorganization by county ordinance are, but are not limited to, the following:
    1. County library boards;
    2. County planning boards;
    3. County park commissions; and
    4. County welfare boards.
  2. Advisory board members appointed as a result of a reorganizational ordinance shall have a term of appointment as specified in this subchapter.
  3. Ordinances enacted by a county quorum court for the reorganization of county government into county departments, with or without advisory or administrative boards or subordinate service districts, may be adopted in a single reading of the court.

History. Acts 1977, No. 742, § 107; 1977 (1st Ex. Sess.), No. 13, § 6; 1979, No. 741, § 1; A.S.A. 1947, § 17-4110.

Cross References. County hospitals board of governors, § 14-263-101 et seq.

Subchapter 8 — Legislative Powers

Cross References. Local government reserve funds, § 14-73-101.

Effective Dates. Acts 1977, No. 742, § 118: Mar. 24, 1977. Emergency clause provided: “It is hereby found by the General Assembly that the passage of Amendment 55 to the Arkansas Constitution has caused major changes in the structure of county government and that, because of said changes, a need exists to modernize laws affecting county government. It is further found that the citizens of the several counties of the State are in need of services provided by county governments and said services can best be provided under the provisions of this Act. Therefore, an emergency is hereby declared to exist and this Act, being necessary for the public health, welfare and safety, shall be in effect from and after its passage and approval.”

Research References

Am. Jur. 56 Am. Jur. 2d, Mun. Corp., §§ 193-230, 423-578.

C.J.S. 20 C.J.S., Counties, §§ 49, 50 and § 165 et seq.

U. Ark. Little Rock L.J.

Survey of Arkansas Law, Public Law, 1 U. Ark. Little Rock L.J. 230.

Derden, Survey of Arkansas Law: Constitutional Law, 2 U. Ark. Little Rock L.J. 188.

Goldner, A Call for Reform of Arkansas Municipal Law, 15 U. Ark. Little Rock L.J. 175.

14-14-801. Powers generally.

  1. As provided by Arkansas Constitution, Amendment 55, § 1, Part (a), a county government, acting through its county quorum court, may exercise local legislative authority not expressly prohibited by the Arkansas Constitution or by law for the affairs of the county.
  2. These powers include, but are not limited to, the power to:
    1. Levy taxes in a manner prescribed by law;
    2. Appropriate public funds for the expenses of the county in a manner prescribed by ordinance;
    3. Preserve peace and order and secure freedom from dangerous or noxious activities. However, no act may be declared a felony;
    4. For any public purpose, contract or join with any other county, with any political subdivision, or with the federal government;
    5. Create, consolidate, separate, revise, or abandon any elected office, except during the term thereof, if a majority of those voting on the question at a general election have approved the action;
    6. Fix the number and compensation of deputies and county employees;
    7. Fix the compensation of each county officer within a minimum and maximum to be determined by law;
    8. Fill vacancies in elected county offices;
    9. Have the power to override the veto of the county judge by a vote of three-fifths (3/5) of the total membership of the quorum court;
    10. Provide for any service or performance of any function relating to county affairs;
    11. Impose a special assessment reasonably related to the cost of any special service or special benefit provided by county government or impose a fee for the provisions of a service;
    12. Provide for its own organization and management of its affairs; and
    13. Exercise other powers, not inconsistent with law, necessary for effective administration of authorized services and functions.

History. Acts 1977, No. 742, § 69; A.S.A. 1947, § 17-3801.

Research References

Ark. L. Rev.

Jonathan L. Marshfield, Improving Amendment, 69 Ark. L. Rev. 477 (2016).

Case Notes

Constitutionality.

County quorum court ordinance that required all county constitutional offices to be open during certain hours related to the performance of person in providing necessary services as a tax collector and, as such, was within the express powers granted the quorum court by Ark. Const. Amend. 55 and this section, and not in violation of the separation of powers provisions of the Arkansas Constitution. Walker v. County of Washington, 263 Ark. 317, 564 S.W.2d 513 (1978).

Compensation.

While it is clear that a county sheriff has the authority to appoint his deputies, it is equally clear that the compensation for these individuals is within the exclusive jurisdiction of the quorum court. Venhaus v. Adams, 295 Ark. 606, 752 S.W.2d 20 (1988).

County Employees.

A county ordinance that expressly required that a county employee be given two weeks notice prior to involuntary termination, that the reasons for such action had to be filed in writing, and that the employee had a right to appeal such action to a grievance board, did not, on its face, or as applied to sheriff's deputies, violate the separation of powers doctrine under Arkansas law by encroaching upon the executive branch of county government. Wilson v. Robinson, 668 F.2d 380 (8th Cir. 1981).

Elected Officials.

Ordinance by county quorum court prohibiting nepotism by elected county officials is a valid and properly adopted ordinance. Henderson v. Russell, 267 Ark. 140, 589 S.W.2d 565 (1979).

Fees.

Where ordinances of county quorum court levying additional local recording fees on deeds and other instruments were inconsistent and in conflict with § 21-6-306, which established a uniform standard amount of recording fee to be charged throughout the state, such ordinances exceeded the local legislative authority granted to the counties by Ark. Const. Amend. 55 and this section and were, therefore, void, and the moneys collected thereunder had to be refunded. Kollmeyer v. Greer, 267 Ark. 632, 593 S.W.2d 29 (1980).

Medical Services.

Section 14-14-801 et seq. and § 20-13-301 et seq. were not intended to provide alternative procedures for the establishment of emergency medical services by a county, since to hold that these provisions were intended to provide alternative methods would effectively render § 20-13-301 et seq. a nullity, as there would be no reason for a quorum court to choose the more arduous route required by § 20-13-301 et seq. when it could accomplish the same result more easily under § 14-14-801 et seq.Vandiver v. Washington County, 274 Ark. 561, 628 S.W.2d 1 (1982).

Section 14-14-801 et seq. gives the quorum court of any county the authority to provide for emergency medical services; however, the authority created under these provisions is governed and limited by the procedural requirements of § 20-13-301 et seq.Vandiver v. Washington County, 274 Ark. 561, 628 S.W.2d 1 (1982).

The general county powers law found in this section is circumscribed by § 20-13-303 when the method of financing a county emergency medical service is by service charge. West Wash. County Emergency Medical Servs. v. Washington County, 313 Ark. 76, 852 S.W.2d 137 (1993).

The term “as provided by law” in this section does not refer to § 20-13-303 in cases in which a service charge is to be imposed. West Wash. County Emergency Medical Servs. v. Washington County, 313 Ark. 76, 852 S.W.2d 137 (1993).

14-14-802. Providing of services generally.

  1. A county government, acting through the county quorum court, shall provide, through ordinance, for the following necessary services for its citizens:
    1. The administration of justice through the several courts of record of the county;
    2. Law enforcement protection services and the custody of persons accused or convicted of crimes;
    3. Real and personal property tax administration, including assessments, collection, and custody of tax proceeds;
    4. Court and public records management, as provided by law, including registration, recording, and custody of public records; and
    5. All other services prescribed by state law for performance by each of the elected county officers or departments of county government.
    1. A county government, acting through the quorum court, may provide through ordinance for the establishment of any service or performance of any function not expressly prohibited by the Arkansas Constitution or by law.
    2. These legislative services and functions include, but are not limited to, the following services and facilities:
      1. Agricultural services, including:
        1. Extension services, including agricultural, home economic, and community development;
        2. Fairs and livestock shows and sales services;
        3. Livestock inspection and protection services;
        4. Market and marketing services;
        5. Rodent, predator, and vertebrate control services; and
        6. Weed and insect control services;
      2. Community and rural development services, including:
        1. Economic development services;
        2. Housing services;
        3. Open spaces;
        4. Planning, zoning, and subdivision control services;
        5. Urban and rural development, rehabilitation, and redevelopment services; and
        6. Watercourse, drainage, irrigation, and flood control services;
      3. Community services, including:
        1. Animal control services;
        2. Cemetery, burial, and memorial services;
        3. Consumer education and protection services;
        4. Exhibition and show services;
        5. Libraries, museums, civic center auditoriums, and historical, cultural, or natural site services;
        6. Park and recreation services; and
        7. Public camping services;
      4. Emergency services, including:
        1. Ambulance services;
        2. Civil defense services;
        3. Fire prevention and protection services; and
        4. Juvenile attention services;
      5. Human services, including:
        1. Air and water pollution control services;
        2. Child care, youth, and senior citizen services;
        3. Public health and hospital services;
        4. Public nursing and extended care services; and
        5. Social and rehabilitative services;
      6. Solid waste services, including:
        1. Recycling services; and
        2. Solid waste collection and disposal services;
      7. Transportation services, including:
        1. Roads, bridges, airports, and aviation services;
        2. Ferries, wharves, docks, and other marine services;
        3. Parking services; and
        4. Public transportation services;
      8. Water, sewer, and other utility services, including:
        1. Sanitary and storm sewers and sewage treatment services; and
        2. Water supply and distribution services;
      9. Job training services and facilities; and
      10. Other services related to county affairs.

History. Acts 1977, No. 742, § 70; A.S.A. 1947, § 17-3802; Acts 2017, No. 452, § 1.

Amendments. The 2017 amendment added (b)(2)(J) [now (b)(2)(I)].

Case Notes

Constitutionality.

Constitutionality of this section was upheld. Thruston v. Little River County, 310 Ark. 188, 832 S.W.2d 851 (1992).

This section does not violate the uniformity requirement of Ark. Const. Amend. 14. Villines v. Tucker, 324 Ark. 13, 918 S.W.2d 153 (1996).

This statute is not unconstitutional and in contravention Ark. Const. Amend. 55, § 1(a). Villines v. Tucker, 324 Ark. 13, 918 S.W.2d 153 (1996).

Construction.

Providing for the administration of justice under subdivision (a)(1) is a mandatory service; providing a museum under subdivision (b)(2)(C)(v) is a discretionary service the county is authorized to offer. Haynes v. Faulkner County, 326 Ark. 557, 932 S.W.2d 328 (1996).

Designation of county building as a museum was not an illegal exaction since § 14-14-1102(b)(3) and Ark. Const. Amend. 55, § 3, provide that the County Judge is the custodian of county property and is therefore authorized to determine how county property shall be used; moreover, subdivision (b)(2)(C)(v) of this section and § 13-5-501 et seq. authorize the County to provide for a county museum. Haynes v. Faulkner County, 326 Ark. 557, 932 S.W.2d 328 (1996).

Emergency Services.

Section 14-14-801 et seq. and § 20-13-301 et seq. were not intended to provide alternative procedures for the establishment of emergency medical services by a county, since to hold that these provisions were intended to provide alternative methods would effectively render § 20-13-301 et seq. a nullity, as there would be no reason for a quorum court to choose the more arduous route required by § 20-13-301 et seq. when it could accomplish the same result more easily under § 14-14-801 et seq.Vandiver v. Washington County, 274 Ark. 561, 628 S.W.2d 1 (1982).

Section 14-14-801 et seq. gives the quorum court of any county the authority to provide for emergency medical services; however, the authority created under these provisions is governed and limited by the procedural requirements of § 20-13-301 et seq.Vandiver v. Washington County, 274 Ark. 561, 628 S.W.2d 1 (1982).

Gravedigging.

Although gravedigging services can be provided when this section is complied with, where there was no indication from the record that the quorum court knew of the county's free gravedigging services other than testimony from a county judge, and even if the quorum court had known of the gravedigging services, it took no action by ordinance or otherwise to authorize such services; the provision of these services was invalid. Dudley v. Little River County, 305 Ark. 102, 805 S.W.2d 645 (1991).

Cited: Kollmeyer v. Greer, 267 Ark. 632, 593 S.W.2d 29 (1980); Wilson v. Robinson, 506 F. Supp. 1236 (E.D. Ark. 1981); Hall v. Fisher, 285 Ark. 222, 685 S.W.2d 803 (1985); Venhaus v. Adams, 295 Ark. 606, 752 S.W.2d 20 (1988); West Wash. County Emergency Medical Servs. v. Washington County, 313 Ark. 76, 852 S.W.2d 137 (1993).

14-14-803. Providing of facilities.

The power of county government to provide services includes the power to provide necessary and convenient facilities to support the services.

History. Acts 1977, No. 742, § 71; A.S.A. 1947, § 17-3803.

Case Notes

Cited: Mears v. Hall, 263 Ark. 827, 569 S.W.2d 91 (1978).

14-14-804. Regulatory powers.

The power of a county government to provide services includes the power to exercise regulatory powers in conjunction with the services.

History. Acts 1977, No. 742, § 72; A.S.A. 1947, § 17-3804.

14-14-805. Powers denied.

Each county quorum court in the State of Arkansas exercising local legislative authority is prohibited the exercise of the following:

  1. Any legislative act that applies to or affects any private or civil relationship, except as an incident to the exercise of local legislative authority;
  2. Any legislative act that applies to or affects the provision of collective bargaining, retirement, workers' compensation, or unemployment compensation. However, subject to the limitations imposed by the Arkansas Constitution and state law regarding these subject areas, a quorum court may exercise any legislative authority with regard to employee policy and practices of a general nature, including, but not limited to, establishment of general vacation and sick leave policies, general office hour policies, general policies with reference to nepotism, or general policies to be applicable in the hiring of county employees. Legislation promulgated by a quorum court dealing with matters of employee policy and practices shall be applicable only to employees of the county and shall not apply to the elected county officers of the county. Legislation applying to employee policy practices shall be only of a general nature and shall be uniform in application to all employees of the county. The day-to-day administrative responsibility of each county office shall continue to rest within the discretion of the elected county officials;
  3. Any legislative act that applies to or affects the public school system, except that a county government may impose an assessment, where established by the General Assembly, reasonably related to the cost of any service or specific benefit provided by county government and shall exercise any legislative authority which it is required by law to exercise regarding the public school system;
  4. Any legislative act which prohibits the grant or denial of a certificate of public convenience and necessity;
  5. Any legislative act that establishes a rate or price otherwise determined by a state agency;
  6. Any legislative act that defines as an offense conduct made criminal by state law, that defines an offense as a felony, or that fixes the penalty or sentence for a misdemeanor in excess of a fine of one thousand dollars ($1,000) for any one (1) specified offense or violation, or double that sum for repetition of the offense or violation. If an act prohibited or rendered unlawful is, in its nature, continuous in respect to time, the fine or penalty for allowing the continuance of the prohibited or unlawful act, in violation of the ordinance, shall not exceed five hundred dollars ($500) for each day that it is unlawfully continued;
  7. Any legislative act that applies to or affects the standards of professional or occupational competence as prerequisites to the carrying on of a profession or occupation;
  8. Any legislative act of attainder, ex post facto law, or law impairing the obligations of contract shall not be enacted, and no conviction shall work corruption of blood or forfeiture of estate;
  9. Any legislative act which grants to any citizen or class of citizens privileges or immunities which upon the terms shall not equally belong to all citizens;
  10. Any legislative act which denies the individual right of property without just compensation;
  11. Any legislative act which lends the credit of the county for any purpose whatsoever or upon any interest-bearing evidence of indebtedness, except bonds as may be provided for by the Arkansas Constitution. This subdivision (11) does not apply to revenue bonds which are deemed not to be a general obligation of the county;
  12. Any legislative act that conflicts with the exercise by municipalities of any expressed, implied, or essential powers of municipal government; and
  13. Any legislative act contrary to the general laws of the state.

History. Acts 1977, No. 742, § 73; 1979, No. 413, § 15; A.S.A. 1947, § 17-3805; Acts 2013, No. 127, § 1.

Amendments. The 2013 amendment, in (6), substituted “fine of one thousand dollars ($1,000)” for “fine of five hundred dollars ($500)” in the first sentence, and substituted “of the prohibited or unlawful act” for “thereof,” “five hundred dollars ($500)” for “two hundred fifty dollars ($250),” and ”is unlawfully” for “may be unlawfully” in the last sentence.

Cross References. Ordinances declaring agricultural operations nuisances void, § 2-4-105.

Research References

ALR.

Construction and Application of U.S. Const. Art. I, § 10, cl. 1, and State Constitutional Provisions Proscribing State Bills of Attainder. 63 A.L.R.6th 1.

Case Notes

Acts of Attainder.

All regulations, zoning or otherwise, which affect landowners are not acts of attainder. Johnson v. Sunray Servs., Inc., 306 Ark. 497, 816 S.W.2d 582 (1991).

County Employees.

A county ordinance that provided a comprehensive scheme of employment policies for county employees including procedural steps to be followed in terminating their employment was clearly authorized by subdivision (2), and where a sheriff failed to establish the existence of any state decisional or positive law that contradicted the presumption that the ordinance and statute were constitutionally valid, the sheriff was required to comply with the ordinance's notice and grievance procedures in order to terminate the employment of his deputy sheriffs. Wilson v. Robinson, 668 F.2d 380 (8th Cir. 1981).

A county ordinance that expressly required that a county employee be given two weeks notice prior to involuntary termination, that the reasons for such action had to be filed in writing, and that the employee had a right to appeal such action to a grievance board, did not, on its face, or as applied to sheriff's deputies, violate the separation of powers doctrine under Arkansas law by encroaching upon the executive branch of county government. Wilson v. Robinson, 668 F.2d 380 (8th Cir. 1981).

Defendants did not violate this section as the county quorum court did not pass any ordinance that prohibited the practice of collective bargaining, nor did it prescribe the manner in which collective bargaining should be utilized; the quorum court merely expressed its intent not to renew the collective bargaining agreement with the union and the county employees. AFSCME, Local 380 v. Hot Spring County, 362 F. Supp. 2d 1035 (W.D. Ark. 2004).

Former deputy's 42 U.S.C. § 1983 official capacity claim against a sheriff failed because the sheriff did not act as the final policymaker in terminating the deputy, as the sheriff's employment decisions were subject to review by the quorum court under this section. Thompson v. Shock, 852 F.3d 786 (8th Cir. 2017).

Public School Systems.

Where the General Assembly has not otherwise provided, the interest earned on school taxes collected belongs to the schools; therefore, a county quorum court ordinance that authorized the county collector to deposit into the county general fund all interest earned on school tax moneys held by the collector prior to transfer of those funds to the county treasurer was invalid, since the ordinance permitted the county to use the school tax money to earn money for the county without passing on any of the interest earned to the school districts, and also since the county was prohibited from passing any legislation “affecting public school systems,” which this ordinance surely did affect. Mears v. Little Rock School Dist., 268 Ark. 30, 593 S.W.2d 42 (1980).

Where the General Assembly had not passed any legislation establishing an “assessment” reasonably related to the cost of any service or specific benefit provided by the county government, the county quorum court was without the authority to order the school districts to pay a pro rata share of the salaries and expenses incurred in the collection of taxes by the county officers, other than the assessor's office. Mears v. Little Rock School Dist., 268 Ark. 30, 593 S.W.2d 42 (1980).

Cited: Wilson v. Robinson, 506 F. Supp. 1236 (E.D. Ark. 1981).

14-14-806. Powers requiring state delegation.

Each county quorum court in the State of Arkansas exercising local legislative authority is prohibited the exercise of the following powers, unless the power is specifically delegated by the General Assembly:

  1. The legislative power to authorize a tax on income or the sale of goods or services. This subdivision (1) shall not be construed to limit the authority of county government to levy any other tax or establish the rate of any other tax which is not inconsistent with the Arkansas Constitution or law;
  2. The legislative power to regulate private activities beyond its geographic limits;
  3. The legislative power to impose a duty on or regulate another unit of local government. However, nothing in this limitation shall affect the right of a county to enter into and enforce an agreement of intergovernmental cooperation; and
  4. The legislative power to regulate any form of gambling, lotteries, or gift enterprises.

History. Acts 1977, No. 742, § 74; A.S.A. 1947, § 17-3806.

Cross References. County gross receipts tax on hotels, motels and resturants, § 14-20-112.

Rural community projects, § 14-270-101 et seq.

Taxation generally, § 26-73-101 et seq.

Research References

Ark. L. Rev.

Kindt, Legalized Gambling Activities as Subsidized by Taxpayers, 48 Ark. L. Rev. 889.

14-14-807. Restrictive provisions.

A county exercising local legislative power is subject to the following provisions. These provisions are a prohibition on the legislative power of a county acting other than as provided:

  1. All state laws providing for the:
    1. Corporation or disincorporation of cities and towns;
    2. Annexation, disannexation, or exclusion of territory from a city or town; and
    3. Creation, abandonment, or boundary alteration of counties;
  2. All state laws establishing legislative procedures or requirements for county government;
  3. All laws requiring elections;
  4. All laws which regulate planning or zoning. However, a county quorum court, in the exercise of its local legislative power, may either accept, modify, or reject recommendations of the county planning board. Modifications of the recommendations shall be made by the procedures provided in § 14-17-201 et seq. The quorum court is empowered to initiate its own planning and zoning laws;
  5. All laws directing or requiring a county government, or any officer or employee of a county government, to carry out any function or provide any service. However, nothing in this subdivision (5) shall be construed to prevent counties from abolishing or consolidating an office under the provisions of Arkansas Constitution, Amendment 55, § 2(b), nor the reassignment of statutory delegated functions or services which the reassignment is permitted by law if the abolition, consolidation, or reassignment shall not alter the obligation of the county to continue providing the services previously provided by the abolished or consolidated office;
  6. All laws regulating finance or borrowing procedures and powers of local government;
  7. All laws governing eminent domain;
  8. All laws governing public information and open meetings; and
  9. All laws governing the vacation of roads, streets, or alleys.

History. Acts 1977, No. 742, § 75; 1981, No. 278, § 1; A.S.A. 1947, § 17-3807.

Cross References. County planning boards, § 14-17-201 et seq.

Case Notes

Elections.

An election commissioner is not given the sole authority under subdivision (3) to determine the amount of money necessary to conduct an election, since it is not intended by the General Assembly that the quorum courts be deprived of their fiscal authority over the funding of elections. Union County v. Union County Election Comm'n, 274 Ark. 286, 623 S.W.2d 827 (1981).

Cited: Walker v. County of Washington, 263 Ark. 317, 564 S.W.2d 513 (1978).

14-14-808. Consistency with state rules or regulations required.

  1. A county government exercising local legislative authority is prohibited the exercise of any power in any manner inconsistent with state law or administrative rule or regulation in any area affirmatively subjected by law to state regulation or control.
  2. The exercise of legislative authority is inconsistent with state law, rule, or regulation if it establishes standards or requirements which are lower or less stringent than those imposed by state law, rule, or regulation.
  3. An area is affirmatively subjected to state control if a state agency or officer is directed to establish administrative rules governing the matter or if enforcement of standards or requirements established by statute is vested in a state officer or agency.

History. Acts 1977, No. 742, § 76; A.S.A. 1947, § 17-3808; Acts 2019, No. 315, § 984.

Amendments. The 2019 amendment substituted “rules or regulations” for “regulation” in the section heading; inserted “rule or” and made similar changes in (a) and twice in (b); and deleted “and regulations” following “rules” in (c).

Case Notes

Cited: Kollmeyer v. Greer, 267 Ark. 632, 593 S.W.2d 29 (1980).

14-14-809. Concurrent powers.

  1. If a county government is authorized to regulate an area which the state by statute or administrative rule also regulates, the local government may regulate the area only by enacting ordinances which are consistent with state law or administrative rule.
  2. If a state statute or administrative rule prescribes a single standard of conduct, an ordinance is consistent if it is identical to the state statute or administrative rule.
  3. If a state statute or administrative rule prescribes a minimal standard of conduct, an ordinance is consistent if it establishes a standard which is the same as, or higher or more stringent than, the state standard.
  4. A county government may adopt ordinances which incorporate by reference state statutes and administrative rules in areas in which a local government is authorized to act.

History. Acts 1977, No. 742, § 77; A.S.A. 1947, § 17-3809; Acts 2019, No. 315, § 985.

Amendments. The 2019 amendment substituted “rule” for “regulation” and “rules” for “regulations” throughout the section.

Research References

Ark. L. Rev.

Case Note, Johnson v. Sunray Services, Inc.: Possible Solutions to the NIMBY Syndrome, 45 Ark. L. Rev. 657.

Case Notes

Cited: Johnson v. Sunray Servs., Inc., 306 Ark. 497, 816 S.W.2d 582 (1991).

14-14-810. Improvements to roadways serving private property.

    1. In the passage of this section, the General Assembly is cognizant of the responsibilities of the county judge and of the county quorum court with respect to the establishment and operation of public roads and for the construction, maintenance, repair, and upkeep of county roads. The General Assembly is also mindful of the importance of providing reasonable access to the public roads system for the procurement of emergency medical services; the education of school-age children transported by school buses; the obtaining of mail and the goods of commerce; the marketing of the agricultural, livestock, and poultry products produced on Arkansas farms; and access to numerous other services essential to the health, safety, and welfare of thousands of rural families in this state.
      1. It is, therefore, the purpose and intent of this section to authorize the quorum courts of counties having a population of no less than seven thousand (7,000) nor more than seven thousand five hundred (7,500), according to the 1980 Federal Decennial Census, to enact ordinances authorizing the county judge to provide for the use of county road machinery and equipment, materials, supplies, and labor to make improvements to the roadways serving private property that are deemed essential, under standards and procedures established by the court, to provide access to the public roads of the county in cases of bad weather or the occurrence of other events which may impair citizens of this state from obtaining reasonable and necessary access to the public roads of this state.
        1. The ordinance enacted by the quorum court shall prescribe the conditions, circumstances, and limitations under which the county judge is authorized to make improvements or to perform work upon roads used for access from private property to the public roads.
        2. In addition, the court may request the county judge to file reports from time to time, outlining the work performed in providing access of private property to the public roads, in such detail and at such frequencies as may be requested by the court.
    1. All work performed by the county judge on improvements necessary to make private property accessible to the public roads, as authorized in this section, and which is performed in compliance with the ordinance adopted by the county quorum court authorizing the work, shall be deemed to be public work for which public funds may be expended.
    2. All expenditures of county funds made by the county judge in compliance with this section are determined to be for a public purpose, as defined in this section.

History. Acts 1981, No. 268, §§ 1, 2; A.S.A. 1947, §§ 17-3810, 17-3811.

14-14-811. Salary of county judge and emergency management personnel.

  1. The quorum court of each county is authorized to pay a portion of the salary and related matching benefits of the county judge from the county road fund and the county solid waste fund.
    1. The portion of the county judge's salary paid from the county road fund shall not exceed fifty percent (50%).
    2. The portion paid from the county solid waste fund shall not exceed thirty-four percent (34%).
  2. However, the portion to be paid from the county general fund shall be at least one-third (1/3) of the total salary and matching benefits.
    1. At the discretion of the county judge, a county may pay a portion of the salary and related matching benefits of personnel of the local emergency management jurisdiction from the county road fund.
    2. The portion paid from the county road fund shall not exceed fifty percent (50%).

History. Acts 1987, No. 675, § 2; 1999, No. 725, § 1; 2011, No. 345, § 1.

A.C.R.C. Notes. Acts 1987, No. 675, § 1, provided:

“It is hereby found and determined by the General Assembly that Section 78 of Chapter 4 of Act 742 of 1977, as amended, and various other laws charge the county judge with the responsibility of constructing, maintaining, and operating a system of county roads, bridges, and ferries and gives the county judge broad administrative authority and responsibility with respect to the construction, maintenance, and operation of county roads; that as a result of this responsibility, a substantial portion of each county judge's time must be dedicated to the administration of the county road system; that under current interpretation of the present law, there is no clear authority to pay any portion of the salary of the county judge out of county road funds; that fairness and equity dictate that the county road system bear a fair share of the salary of the county judge since a substantial part of his time is dedicated to his responsibilities as administrator of the county road system. Therefore, it is the intent and purpose of this act to authorize the payment of up to one-half (½) of the salary of each county judge from the county road fund.”

Amendments. The 2011 amendment rewrote the section heading and added (d).

Cross References. Compensation of elected county officers, § 14-14-1204.

14-14-812. Cemetery access roads.

  1. A “cemetery”, as used in this section, means any burying place for the dead, a burial plot, a graveyard, or any land, public or private, dedicated and used for the interment of human remains which includes at least six (6) grave markers.
    1. The county judges of the several county governments in Arkansas shall be authorized to improve and maintain any roads across public or private lands used or to be used for access to a cemetery.
    2. The cemetery access roads shall be constructed to a standard and nature to permit their use by automobiles.

History. Acts 1995, No. 1317, § 2; 1997, No. 1286, § 2.

Cross References. Cemeteries — Access — Debris — Disturbance, § 5-39-212.

Cemeteries generally, § 20-17-901 et seq.

Cemetery Act for Perpetually Maintained Cemeteries, § 20-17-1001 et seq.

Cemetery improvement districts, § 20-17-1101 et seq.

14-14-813. Authority to regulate unsanitary conditions.

  1. To the extent that it is not inconsistent with the powers exercised by incorporated towns and cities of the first class and cities of the second class under § 14-54-901 et seq., counties are empowered to order the owner of real property within the county to:
    1. Abate, remove, or eliminate garbage, rubbish, and junk as defined in § 27-74-402, and other unsightly and unsanitary articles upon property situated in the county; and
    2. Abate, eliminate, or remove stagnant pools of water or any other unsanitary thing, place, or condition that might become a breeding place for mosquitoes and germs harmful to the health of the community.
  2. A copy of the order issued under subsection (a) of this section shall be posted upon the property and:
    1. Mailed to the last known address of the property owner by the county clerk or other person designated by the quorum court; or
    2. Published in accordance with § 14-14-104 if there is no last known address for the property owner.
    1. If the property owner has not complied with the order within thirty (30) days after notice is given in accordance with subsection (b) of this section, the county may:
      1. Do either of the following:
        1. Take any necessary corrective actions, including repairs, to bring the property into compliance with the order; or
        2. Remove or raze any structure ordered by the county to be removed or razed; and
      2. Charge the cost of any actions under subdivision (c)(1)(A) of this section to the owner of the real property.
    2. The county shall have a lien against the property for any unpaid cost incurred under subdivision (c)(1) of this section in addition to interest at the maximum legal rate.
  3. In all successful suits brought to enforce liens granted under this section, the county shall be reimbursed its costs, including title search fees and a reasonable attorney's fee.
  4. This section does not apply to:
    1. Land valued as agricultural property that is being farmed or otherwise used for agricultural purposes; or
    2. A parcel of land larger than ten (10) acres if the unsanitary condition on the parcel is not visible from a public road or highway.

History. Acts 2005, No. 1984, § 1; 2007, No. 126, § 1; 2007, No. 250, § 1; 2019, No. 383, § 2.

Amendments. The 2019 amendment rewrote the introductory paragraph of (b); deleted former (b)(1); redesignated former (b)(2)(A) and (b)(2)(B) as (b)(1) and (b)(2); and added the introductory language of (c)(1)(A).

14-14-814. Authority to regulate private communities.

  1. Upon the written request of a property owners' association of a private community that is located outside the boundaries of a municipality, a county may by ordinance regulate the health, safety, and welfare of the citizens of the private community within all or any part of the area included in the private community.
  2. The quorum court may by ordinance regulate animals upon petition by a majority of landowners or a property owners' association within the private community, including without limitation leash or harness requirements for domestic animals when the animals are outside the animal owner's property.
  3. As used in this section, “private community” means a community outside the corporate limits of a municipality but within a platted subdivision or a condominium complex.
  4. The quorum court may enforce this section under § 14-14-906.

History. Acts 2007, No. 144, § 1; 2013, No. 567, § 1.

Amendments. The 2013 amendment rewrote (a); and added (b) through (d).

Subchapter 9 — Legislative Procedures

Effective Dates. Acts 1977, No. 742, § 118: Mar. 24, 1977. Emergency clause provided: “It is hereby found by the General Assembly that the passage of Amendment 55 to the Arkansas Constitution has caused major changes in the structure of county government and that, because of said changes, a need exists to modernize laws affecting county government. It is further found that the citizens of the several counties of the State are in need of services provided by county governments and said services can best be provided under the provisions of this Act. Therefore, an emergency is hereby declared to exist and this Act, being necessary for the public health, welfare and safety, shall be in effect from and after its passage and approval.”

Acts 1979, No. 717, § 3: Apr. 3, 1979. Emergency clause provided: “It is hereby found and declared that a referendum period of longer than 30 days on measures pertaining to County bond issues requires an unreasonable waiting period between the adoption of a measure authorizing the bonds and actual issuance; that bond purchasers are reluctant to guarantee interest rates for longer than 30 days; and that counties are severally handicapped under present law in marketing bonds upon the most favorable terms. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1981, No. 220, § 3: Feb. 26, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that there is confusion regarding the right of the people to exercise the initiative and referendum with respect to county and municipal measures; that this Act is designed to clarify this confusion and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1991, No. 406, § 6: Mar. 8, 1991. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the law provides that the county tax is to be levied in November of each year; that the law is unclear on what county tax rate is to apply, if any, if the ordinance levying the tax is repealed by referendum; and that this act is immediately necessary to avoid severe financial hardship on county governments. Therefore, an emergency is hereby declared to exist and this act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1997, No. 1300, § 29: Apr. 10, 1997. Emergency clause provided: “It is found and determined by the General Assembly that Amendment No. 74 to the Arkansas Constitution was adopted by the electors of this state on November 5, 1996; that Amendment No. 74 became effective on adoption and applies to ad valorem property taxes due in 1997; that the tax books of each county will open for collection of taxes in the near future and that local officials and school districts must have direction on procedures and effects of the various actions required. The General Assembly further finds that Amendment No. 74 requires enactment of legislation to implement the provisions thereof and that this act provides such implementation and should be given effect immediately to accomplish the purposes of Amendment No. 74 in an orderly, effective and efficient manner. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2001, No. 901, § 2: Mar. 19, 2001. Emergency clause provided: “It is found and determined by the General Assembly that mistakes may occur in the levying of millage rates and court ordered millage rollback corrections are necessary in order to ensure that citizens are being taxed at the correct rate. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2001, No. 981, § 3: Mar. 20, 2001. Emergency clause provided: “It is found and determined by the General Assembly that a referendum period of longer than 30 days on measures pertaining to short-term financing obligations of counties requires an unreasonable waiting period between the adoption of a measure authorizing the obligation and the actual funding and that counties should be able to enter into such obligations upon the most favorable terms and that immediate passage of this act is necessary to enable counties to incur such short-term financing obligations in a timely manner. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2003 (2nd Ex. Sess.), No. 105, § 12: Feb. 10, 2004. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the Arkansas Supreme Court has declared that the current method that the state uses to determine compliance with Amendment 74 to be unconstitutional and has instructed the General Assembly to take action before the termination of the court's stay of its mandate. It has also found that the people must be informed as early as possible of the impact of the court's ruling on the property taxes that they pay for education. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2005, No. 543, § 2: Mar. 3, 2005. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the current law is unclear and confusing; that due to the confusing nature of the current law there have been delays in passing emergency legislation in the quorum courts of the State of Arkansas; and that this act is immediately necessary to clarify the current voting procedure and provide for more efficient county government. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2009, No. 1480, § 117: July 31, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act makes various revisions to Arkansas election laws that are designed to improve the administration of elections and special elections and that these revisions should be implemented as soon as possible so that the citizens of this state may benefit from improved election procedures. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Identical Acts 2016 (3rd Ex. Sess.), Nos. 14 and 15, § 8: May 23, 2016. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that school districts that have chosen to hold their annual school election in November of this year are currently required to print separate ballots from the general election ballots at an extraordinary and unnecessary expense to taxpayers; that some voters in the annual school election this November will have to vote at a separate location for the general election and for the annual school election even though the elections are held on the same day which may decrease voter turnout and infringe upon the suffrage rights of those voters; and that this act is immediately necessary to ensure the voting rights of all citizens of Arkansas and to eliminate unnecessary election costs. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2019, No. 564, § 3: Jan. 1, 2020.

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

Research References

U. Ark. Little Rock L.J.

Survey of Arkansas Law, Public Law, 1 U. Ark. Little Rock L.J. 230.

14-14-901. Legislative authority.

The legislative power of county government is vested in the quorum court of each county of the state, subject to the limitations imposed by the Arkansas Constitution and by state law.

History. Acts 1977, No. 742, § 84; A.S.A. 1947, § 17-4001.

Case Notes

County Employees.

Since county judge has power to hire and fire road department employees, a quorum court cannot provide by resolution a procedure for dismissal of such employees. Horton v. Taylor, 767 F.2d 471 (8th Cir. 1985).

Cited: Wilson v. Robinson, 506 F. Supp. 1236 (E.D. Ark. 1981).

14-14-902. Quorum court administration.

  1. Secretariat.
    1. The secretariat of the county quorum court shall be the clerk of the county court of each county unless otherwise provided by county ordinance.
    2. Alternative Designation. A quorum court may provide by ordinance for the establishment of minimum qualifications and an appropriation for the employment of a secretariat of the court. The employee so designated shall be a staff member of the county clerk or the county judge as may be specified by the ordinance. Where the separate position of secretariat is created by ordinance, all legislative duties prescribed in this chapter for a county clerk shall thereafter become the duties of the secretariat.
    3. Duties of the County Clerk. Unless otherwise provided for by county ordinance, the clerk or the deputy clerk shall:
      1. Attend all regular and special meetings of the court;
      2. Perform all administrative and recordkeeping duties prescribed in this chapter; and
      3. Perform all other duties as may be required by the quorum court through county ordinance.
  2. Counsel.
    1. Legal Counsel. The prosecuting attorney or his or her deputy serving each county shall serve as legal counsel of the quorum court unless otherwise provided by county ordinance.
    2. Alternative Designation of Legal Counsel. A quorum court may provide by ordinance for the appropriation of county funds for the employment of legal counsel to serve the court.
    3. Duties of Legal Counsel. The legal counsel of a quorum court shall:
      1. Attend all regular and special meetings of the court;
      2. Perform all duties prescribed in this chapter; and
      3. Perform all other duties as may be required by a quorum court.
  3. Other Administrative Services. A quorum court may authorize and provide through ordinance, for the employment of any additional staff or the purchase of technical services in support of legislative affairs.

History. Acts 1977, No. 742, § 97; 1979, No. 413, §§ 25-27; A.S.A. 1947, § 17-4014.

Case Notes

Legal Counsel.

Where county prosecuting attorney was asked to serve as legal counsel to the quorum court under subsection (b) in suit filed by county officials against the county judge and the quorum court, he should be relieved of his responsibility to represent the quorum court under Disciplinary Rules 5-101, 5-105, 5-107 and Canon 9 of the Code of Professional Responsibility, since he would otherwise be placed in the untenable position of representing county officials who have competing interests with respect to other county officials. McCuen v. Harris, 271 Ark. 863, 611 S.W.2d 503 (1981).

14-14-903. Record of proceedings.

  1. Minutes. The quorum court of each county shall provide for the keeping of written minutes which include the final vote on each ordinance or resolution indicating the vote of each individual member on the question.
  2. County Ordinance and Resolution Register.
    1. There shall be maintained by each quorum court a county ordinance and resolution register for all ordinances, resolutions, and amendments to each, adopted and approved by the court.
      1. Entries in this register shall be sequentially numbered in the order adopted and approved and shall be further designated by the year of adoption and approval.
      2. A separate sequential numbering system shall be maintained for both ordinances and resolutions.
    2. The register number shall be the official reference number designating an enactment.
    3. The register shall be maintained as a permanent record of the court and shall contain, in addition to the sequential register number, the following items of information:
      1. An index number which shall be the originating legislative agenda number of the enactment;
      2. The comprehensive title of the enactment;
      3. The type of ordinance or amendment: general, emergency, appropriation, initiative, or referendum;
      4. The date adopted by the quorum court;
      5. The date approved by the county judge, date of veto override, or date enacted by the electors;
      6. The effective date of the enactment;
      7. The expiration date of the enactment; and
      8. A recording index number designating the location of the enactments.
  3. Permanent Record of Ordinances and Resolutions.
      1. There shall be maintained a permanent record of all ordinances and resolutions in which each enactment is entered in full after passage and approval, except when a code or budget is adopted by reference.
      2. When a code or budget is adopted by reference, the date and source of the code shall be entered.
      1. The permanent record shall be so indexed to provide for efficient identification, location, and retrieval of all ordinances and resolutions by subject, register number, and date enacted.
      2. The permanent record indexing may be by book and page.
  4. Codification of Ordinances.
    1. At five-year intervals, county ordinances of a general and permanent nature enacted in each of the several counties shall be compiled into a uniform code and published.
      1. A quorum court may codify county ordinances and revise the codification of county ordinances at other periodic times as it considers necessary.
      2. The county ordinance adopting the codification or revision:
        1. Shall be enacted and published in accordance with the requirements for the passage of county ordinances under this subchapter; and
        2. May provide for the repeal of certain county ordinances and parts of county ordinances by the deletion or omission of them from the codification or revision.
    2. A quorum court shall file a code of county ordinances and subsequent revisions to the code of county ordinances with the county clerk under § 14-14-909(b).
    3. A code of county ordinances is prima facie evidence of the law contained within it.

History. Acts 1977, No. 742, § 96; A.S.A. 1947, § 17-4013; Acts 2015, No. 280, § 1.

Amendments. The 2015 amendment redesignated (d) as (d)(1); added (d)(2) through (4); and substituted “At five-year intervals, county ordinances of a general and permanent nature” for “No later than 1980 and at five-year intervals thereafter, all county ordinances” in (d)(1).

14-14-904. Procedures generally. [Effective until January 1, 2020.]

  1. Time and Place of Quorum Court Assembly.
        1. The justices of the peace elected in each county shall assemble and organize as a county quorum court body on the first regular meeting date after the beginning of the justices' term in office, or the county judge may schedule the biennial meeting date of the quorum court on a date in January other than the first regular meeting date of the quorum court after the beginning of the justices' term.
        2. At the first regular meeting, the quorum court shall establish the date, time, and location of meetings of the quorum court.
        3. The organizational ordinance adopted at the first regular meeting of the quorum court shall be effective upon adoption.
      1. Thereafter, the justices shall assemble each calendar month at a regular time and place as established by ordinance and in their respective counties to perform the duties of a quorum court, except that more frequent meetings may be required by ordinance.
    1. By declaration of emergency or determination that an emergency exists and the safety of the general public is at risk, the county judge may change the date, place, or time of the regular meeting of the quorum court upon twenty-four-hour notice.
  2. Levy of Taxes and Making of Appropriations.
        1. The quorum court at its regular meeting in November or December of each year shall levy the county taxes, municipal taxes, and school taxes for the current year.
        2. Before the end of each fiscal year, the quorum court shall make appropriations for the expenses of county government for the following year.
      1. The Director of the Assessment Coordination Division may authorize an extension of up to sixty (60) days of the date for levy of taxes upon application by the county judge and county clerk of any county for good cause shown resulting from reappraisal or rollback of taxes.
    1. Nothing in this subsection shall prohibit the quorum court from making appropriation amendments at any time during the current fiscal year.
    2. If the levy of taxes is repealed by referendum, the county may adopt a new ordinance levying taxes within thirty (30) days after the referendum vote is certified.
    3. If a county court determines that the levy of taxes by the quorum court is incorrect due to clerical errors, scrivener's errors, or failure of a taxing entity to report the correct millage rate to the quorum court, the county court shall issue an order directing the county clerk to correct the error in order to correct the millage levy.
    4. If a determination is made under this subchapter or § 26-80-101 et seq. that the taxes levied by the quorum court are out of compliance with Arkansas Constitution, Article 14, § 3, as amended by Arkansas Constitution, Amendment 11, Arkansas Constitution, Amendment 40, and Arkansas Constitution, Amendment 74, then upon notice from the Director of the Division of Elementary and Secondary Education, the county court shall immediately issue an order directing the county clerk to change the millage levy to bring the taxes levied into compliance with Arkansas Constitution, Article 14, § 3, as amended by Arkansas Constitution, Amendment 11, Arkansas Constitution, Amendment 40, and Arkansas Constitution, Amendment 74.
  3. Special Meetings of Quorum Court.
    1. The county judge or a majority of the elected justices may call a special meeting of the quorum court upon at least twenty-four (24) hours' notice in such manner as may be prescribed by local ordinance.
    2. In the absence of procedural rules, the county judge or a majority of the elected justices may call a special meeting of the quorum court upon written notification of all members not less than two (2) calendar days prior to the calendar day fixed for the time of the meeting. The notice of special meeting shall specify the subjects, date, time, and designated location of the special meeting.
      1. Notice of assembly of a county grievance committee or assembly of less than a quorum of the body, referred to under this section as a “regular committee” or “special committee”, may be provided upon oral notice to the members of at least forty-eight (48) hours unless an emergency exists.
      2. If an emergency exists, written notice of at least twenty-four (24) hours stating the basis of the emergency shall be provided.
  4. Presiding Officer.
      1. The county judge shall preside over the quorum court without a vote but with the power of veto.
      2. In the absence of the county judge, a quorum of the justices by majority vote shall elect one (1) of their number to preside but without the power to veto.
      1. The presiding officer shall appoint all regular and special committees of a quorum court, subject to any procedural rules that may be adopted by ordinance.
      2. A regular committee or special committee of the quorum court shall not consist of more than a quorum of the whole body without the consent of the county judge.
  5. Procedural Rules and Attendance at Meetings.
    1. Except as otherwise provided by law, the quorum court of each county shall determine at the first regular meeting its rules of procedure, whether by Robert's Rules of Order or otherwise, and may compel the attendance of absent members in such manner and under such penalties as may be prescribed by ordinance.
    2. The determination of rules of procedure under subdivision (e)(1) of this section shall be made at the first regular meeting of the quorum court in its organizational ordinance.
  6. Quorum. A majority of the whole number of justices composing a quorum court shall constitute a quorum and is necessary to conduct any legislative affairs of the county.
  7. Legislative Affairs. All legislative affairs of a quorum court shall be conducted through the passage of ordinances, resolutions, or motions.
  8. Majority Vote Required. All legislative actions of a quorum court, excluding the adoption of a motion, shall require a majority vote of the whole number of justices composing a quorum court unless otherwise provided by the Arkansas Constitution or by law. A motion shall require a majority vote of the whole number of justices composing a quorum for passage.
  9. County Ordinance. A county ordinance is defined as an enactment of compulsory law for a quorum court that defines and establishes the permanent or temporary organization and system of principles of a county government for the control and conduct of county affairs.
  10. County Resolution. A county resolution is defined as the adoption of a formal statement of policy by a quorum court, the subject matter of which would not properly constitute an ordinance. A resolution may be used whenever the quorum court wishes merely to express an opinion as to some matter of county affairs, and a resolution shall not serve to compel any executive action.
  11. Motion. A motion is defined as a proposal to take certain action or an expression of views held by the quorum court body. As such, a motion is merely a parliamentary procedure that precedes the adoption of resolutions or ordinances. Motions shall not serve to compel any executive action unless such action is provided for by a previously adopted ordinance or state law.
  12. Ordinances. Ordinances may be amended and repealed only by ordinances.
  13. Resolutions. Resolutions may be amended and repealed only by resolutions.
  14. Initiative and Referendum. All ordinances shall be subject to initiative and referendum as provided for through Arkansas Constitution, Amendment 7.

History. Acts 1977, No. 742, § 85; 1979, No. 413, § 21; A.S.A. 1947, § 17-4002; Acts 1991, No. 406, § 1; 1997, No. 1300, § 24; 2001, No. 901, § 1; 2003 (2nd Ex. Sess.), No. 105, § 5; 2005, No. 252, § 1; 2011, No. 837, § 3; 2013, No. 127, § 2; 2013, No. 985, §§ 1, 2; 2015, No. 1174, §§ 1, 2; 2016 (3rd Ex. Sess.), No. 14, § 7; 2016 (3rd Ex. Sess.), No. 15, § 7; 2019, No. 910, §§ 2236, 2237.

Publisher's Notes. For text of section effective January 1, 2020, see the following version.

Amendments. The 2011 amendment inserted (a)(2).

The 2013 amendment by No. 127 rewrote (a)(1).

The 2013 amendment by No. 985, in (c), designated paragraphs as (c)(1) and (c)(2) and inserted (c)(3); and, in (d), designated paragraphs as (d)(1)(A), (d)(1)(B), and (d)(2)(A) and inserted (d)(2)(B).

The 2015 amendment redesignated former (a)(1)(A)(ii) as part of (a)(1)(A)(i); substituted “or” for “Alternatively” following “term in office” in (a)(1)(A)(i); added (a)(1)(A)(ii) and (iii); redesignated (e) as (e)(1); in (e)(1), inserted “at the first regular meeting” and inserted “whether by Robert's Rules of Order or otherwise”; and added (e)(2).

The 2016 (3rd Ex. Sess.) amendment by identical acts Nos. 14 and 15 inserted “or December” in (b)(1)(A)(i).

The 2019 amendment substituted “Division” for “Department” in (b)(1)(B); and substituted “Division of Elementary and Secondary Education” for “Department of Education” in (b)(5).

Cross References. Limitation on counties — Tax levies, § 26-25-101.

Taxation generally, § 26-73-101 et seq.

Research References

Ark. L. Rev.

Watkins, Open Meetings Under the Arkansas Freedom of Information Act, 38 Ark. L. Rev. 268.

Case Notes

Ratification.

Even if the county judge had merely acted as the agent of the county in making an order laying out the highway right-of-way and fixing the width of the right-of-way on each side of the centerline, still the county court adopted and ratified the order by paying out county money arising for right-of-way claims because of the order. Bollinger v. Arkansas State Hwy. Comm'n, 229 Ark. 53, 315 S.W.2d 889 (1958), aff'd, 230 Ark. 877, 327 S.W.2d 381 (Ark. 1959) (decision under prior law).

Special Meetings.

Where a county's lease on a building used as a courthouse had expired and the rentals to be paid for a building used as a courthouse would in a few years amount to enough to build a courthouse, an emergency existed justifying a special session of the quorum court for the purpose of considering and voting an appropriation for the construction of a courthouse. Kleiner v. Parker, 177 Ark. 671, 8 S.W.2d 434 (1928) (decision under prior law).

Taxes and Appropriations.

Taxes must have been appropriated to the purpose for which collected. Lee County v. Phillips County, 46 Ark. 156 (1885) (decision under prior law).

Taxation for county purposes has to be uniform throughout the county; the levying court cannot provide for a dual system. Hutchinson v. Ozark Land Co., 57 Ark. 554, 22 S.W. 173 (1893) (decision under prior law).

A county tax levy will not be invalid on collateral attack because the levying court appropriated an amount in excess of the limits set in § 14-20-103, in the absence of any affirmative showing that the county had no funds derived from any other sources. Fussell v. Mallory, 97 Ark. 465, 134 S.W. 631 (1911) (decision under prior law).

Whether the county levying court levied a school tax in a certain district had to be determined by the records of that court and not by the depositions of the officers who composed the court. Alexander v. Capps, 100 Ark. 488, 140 S.W. 722 (1911) (decision under prior law).

Where quorum court failed to show a designation of the amount of the school levy in any school district by figures alone or otherwise, and it was impossible to determine from an examination of the record the amount of the millage sought to be levied, the levy made was void. Tyer v. Hazel, 212 Ark. 140, 205 S.W.2d 18 (1947) (decision under prior law).

There is no provision in law allowing a quorum court to turn over to the county judge a sum of money “to use as he sees fit and deems necessary,” and such an appropriation is invalid. Martin v. Bratton, 223 Ark. 159, 264 S.W.2d 635 (1954) (decision under prior law).

Quorum court has power and duty to determine and levy millages for county purposes only. Layne v. Strode, 229 Ark. 513, 317 S.W.2d 6 (1958) (decision under prior law).

In action involving the ad valorem assessment of real property where assessor, after making up his assessment books and an abstract of the assessed property, filed claim with the county clerk, who made out his report in accordance with the assessor's abstract, forwarding the report to the state, during which time the county board of equalization was in session, the action of the quorum court directing taxes be collected from the value established by the assessor was void, since the court was without authority to levy millages on any basis other than the assessment of the assessor, as were equalized and adjusted by the equalization board. Layne v. Strode, 229 Ark. 513, 317 S.W.2d 6 (1958) (decision under prior law).

There is no provision in the Arkansas Constitution or the statutes which gives a county court the specific authority to pay dues to a county judges association. Ark. Ass'n of County Judges v. Green, 232 Ark. 438, 338 S.W.2d 672 (1960) (decision under prior law).

Trial court did not err in denying a writ of mandamus brought by pension and retirement board to require county clerk and county collector to collect a four-tenths millage ad valorem tax as the city council did not approve the resolution for the tax prior to the county quorum court's meeting, as required by subdivision (b)(1) of this section. Russellville Police Pension Ret. Bd. v. Johnson, 365 Ark. 99, 225 S.W.3d 357 (2006).

Circuit court judge did not have statutory or constitutional authority to retroactively apply a millage-rate increase to 2007 library taxes after the special election because once a city issued an ordinance authorizing the ad valorem tax rates for 2007, a quorum court had authority pursuant to subdivision (b)(1)(A)(i) of this section to levy taxes for the current year in its November meeting. Robinson v. Villines, 2009 Ark. 632, 362 S.W.3d 870 (2009), appeal dismissed, 2012 Ark. 211 (2012).

Time and Place.

A quorum court was lawfully in session on giving notice of the session in any manner to justices of the peace affected. Cleveland County v. Pearce, 171 Ark. 1145, 287 S.W. 593 (1926) (decision under prior law).

Cited: Horton v. Taylor, 585 F. Supp. 224 (W.D. Ark. 1984).

14-14-904. Procedures generally. [Effective January 1, 2020.]

  1. Time and Place of Quorum Court Assembly.
        1. The justices of the peace elected in each county shall assemble and organize as a county quorum court body on the first regular meeting date after the beginning of the justices' term in office, or the county judge may schedule the biennial meeting date of the quorum court on a date in January other than the first regular meeting date of the quorum court after the beginning of the justices' term.
        2. At the first regular meeting, the quorum court shall establish the date, time, and location of meetings of the quorum court.
        3. The organizational ordinance adopted at the first regular meeting of the quorum court shall be effective upon adoption.
      1. Thereafter, the justices shall assemble each calendar month at a regular time and place as established by ordinance and in their respective counties to perform the duties of a quorum court, except that more frequent meetings may be required by ordinance.
    1. By declaration of emergency or determination that an emergency exists and the safety of the general public is at risk, the county judge may change the date, place, or time of the regular meeting of the quorum court upon twenty-four-hour notice.
  2. Levy of Taxes and Making of Appropriations.
        1. The quorum court at its regular meeting in November or December of each year shall levy the county taxes, municipal taxes, and school taxes for the current year.
          1. Before the end of each fiscal year, the quorum court shall make appropriations for the expenses of county government for the following year.
          2. Upon the final passage of the annual appropriations ordinance under subdivision (b)(1)(A)(ii)(a) of this section, the county clerk shall publish the ordinance and annual budget on a website owned or maintained by the county, the state, or the Association of Arkansas Counties.
      1. The Director of the Assessment Coordination Division may authorize an extension of up to sixty (60) days of the date for levy of taxes upon application by the county judge and county clerk of any county for good cause shown resulting from reappraisal or rollback of taxes.
    1. Nothing in this subsection shall prohibit the quorum court from making appropriation amendments at any time during the current fiscal year.
    2. If the levy of taxes is repealed by referendum, the county may adopt a new ordinance levying taxes within thirty (30) days after the referendum vote is certified.
    3. If a county court determines that the levy of taxes by the quorum court is incorrect due to clerical errors, scrivener's errors, or failure of a taxing entity to report the correct millage rate to the quorum court, the county court shall issue an order directing the county clerk to correct the error in order to correct the millage levy.
    4. If a determination is made under this subchapter or § 26-80-101 et seq. that the taxes levied by the quorum court are out of compliance with Arkansas Constitution, Article 14, § 3, as amended by Arkansas Constitution, Amendment 11, Arkansas Constitution, Amendment 40, and Arkansas Constitution, Amendment 74, then upon notice from the Director of the Division of Elementary and Secondary Education, the county court shall immediately issue an order directing the county clerk to change the millage levy to bring the taxes levied into compliance with Arkansas Constitution, Article 14, § 3, as amended by Arkansas Constitution, Amendment 11, Arkansas Constitution, Amendment 40, and Arkansas Constitution, Amendment 74.
  3. Special Meetings of Quorum Court.
    1. The county judge or a majority of the elected justices may call a special meeting of the quorum court upon at least twenty-four (24) hours' notice in such manner as may be prescribed by local ordinance.
    2. In the absence of procedural rules, the county judge or a majority of the elected justices may call a special meeting of the quorum court upon written notification of all members not less than two (2) calendar days prior to the calendar day fixed for the time of the meeting. The notice of special meeting shall specify the subjects, date, time, and designated location of the special meeting.
      1. Notice of assembly of a county grievance committee or assembly of less than a quorum of the body, referred to under this section as a “regular committee” or “special committee”, may be provided upon oral notice to the members of at least forty-eight (48) hours unless an emergency exists.
      2. If an emergency exists, written notice of at least twenty-four (24) hours stating the basis of the emergency shall be provided.
  4. Presiding Officer.
      1. The county judge shall preside over the quorum court without a vote but with the power of veto.
      2. In the absence of the county judge, a quorum of the justices by majority vote shall elect one (1) of their number to preside but without the power to veto.
      1. The presiding officer shall appoint all regular and special committees of a quorum court, subject to any procedural rules that may be adopted by ordinance.
      2. A regular committee or special committee of the quorum court shall not consist of more than a quorum of the whole body without the consent of the county judge.
  5. Procedural Rules and Attendance at Meetings.
    1. Except as otherwise provided by law, the quorum court of each county shall determine at the first regular meeting its rules of procedure, whether by Robert's Rules of Order or otherwise, and may compel the attendance of absent members in such manner and under such penalties as may be prescribed by ordinance.
    2. The determination of rules of procedure under subdivision (e)(1) of this section shall be made at the first regular meeting of the quorum court in its organizational ordinance.
  6. Quorum. A majority of the whole number of justices composing a quorum court shall constitute a quorum and is necessary to conduct any legislative affairs of the county.
  7. Legislative Affairs. All legislative affairs of a quorum court shall be conducted through the passage of ordinances, resolutions, or motions.
  8. Majority Vote Required. All legislative actions of a quorum court, excluding the adoption of a motion, shall require a majority vote of the whole number of justices composing a quorum court unless otherwise provided by the Arkansas Constitution or by law. A motion shall require a majority vote of the whole number of justices composing a quorum for passage.
  9. County Ordinance. A county ordinance is defined as an enactment of compulsory law for a quorum court that defines and establishes the permanent or temporary organization and system of principles of a county government for the control and conduct of county affairs.
  10. County Resolution. A county resolution is defined as the adoption of a formal statement of policy by a quorum court, the subject matter of which would not properly constitute an ordinance. A resolution may be used whenever the quorum court wishes merely to express an opinion as to some matter of county affairs, and a resolution shall not serve to compel any executive action.
  11. Motion. A motion is defined as a proposal to take certain action or an expression of views held by the quorum court body. As such, a motion is merely a parliamentary procedure that precedes the adoption of resolutions or ordinances. Motions shall not serve to compel any executive action unless such action is provided for by a previously adopted ordinance or state law.
  12. Ordinances. Ordinances may be amended and repealed only by ordinances.
  13. Resolutions. Resolutions may be amended and repealed only by resolutions.
  14. Initiative and Referendum. All ordinances shall be subject to initiative and referendum as provided for through Arkansas Constitution, Amendment 7.

History. Acts 1977, No. 742, § 85; 1979, No. 413, § 21; A.S.A. 1947, § 17-4002; Acts 1991, No. 406, § 1; 1997, No. 1300, § 24; 2001, No. 901, § 1; 2003 (2nd Ex. Sess.), No. 105, § 5; 2005, No. 252, § 1; 2011, No. 837, § 3; 2013, No. 127, § 2; 2013, No. 985, §§ 1, 2; 2015, No. 1174, §§ 1, 2; 2016 (3rd Ex. Sess.), No. 14, § 7; 2016 (3rd Ex. Sess.), No. 15, § 7; 2019, No. 564, § 1; 2019, No. 910, §§ 2236, 2237.

Publisher's Notes. For text of section effective until January 1, 2020, see the preceding version.

Amendments. The 2011 amendment inserted (a)(2).

The 2013 amendment by No. 127 rewrote (a)(1).

The 2013 amendment by No. 985, in (c), designated paragraphs as (c)(1) and (c)(2) and inserted (c)(3); and, in (d), designated paragraphs as (d)(1)(A), (d)(1)(B), and (d)(2)(A) and inserted (d)(2)(B).

The 2015 amendment redesignated former (a)(1)(A)(ii) as part of (a)(1)(A)(i); substituted “or” for “Alternatively” following “term in office” in (a)(1)(A)(i); added (a)(1)(A)(ii) and (iii); redesignated (e) as (e)(1); in (e)(1), inserted “at the first regular meeting” and inserted “whether by Robert's Rules of Order or otherwise”; and added (e)(2).

The 2016 (3rd Ex. Sess.) amendment by identical acts Nos. 14 and 15 inserted “or December” in (b)(1)(A)(i).

The 2019 amendment by No. 564 added the (b)(1)(A)(ii) (a) designation; and added (b)(1)(A)(ii) (b)

The 2019 amendment by No. 910 substituted “Division” for “Department” in (b)(1)(B); and substituted “Division of Elementary and Secondary Education” for “Department of Education” in (b)(5).

Cross References. Limitation on counties — Tax levies, § 26-25-101.

Taxation generally, § 26-73-101 et seq.

Effective Dates. Acts 2019, No. 564, § 3: Jan. 1, 2020.

Research References

Ark. L. Rev.

Watkins, Open Meetings Under the Arkansas Freedom of Information Act, 38 Ark. L. Rev. 268.

Case Notes

Ratification.

Even if the county judge had merely acted as the agent of the county in making an order laying out the highway right-of-way and fixing the width of the right-of-way on each side of the centerline, still the county court adopted and ratified the order by paying out county money arising for right-of-way claims because of the order. Bollinger v. Arkansas State Hwy. Comm'n, 229 Ark. 53, 315 S.W.2d 889 (1958), aff'd, 230 Ark. 877, 327 S.W.2d 381 (Ark. 1959) (decision under prior law).

Special Meetings.

Where a county's lease on a building used as a courthouse had expired and the rentals to be paid for a building used as a courthouse would in a few years amount to enough to build a courthouse, an emergency existed justifying a special session of the quorum court for the purpose of considering and voting an appropriation for the construction of a courthouse. Kleiner v. Parker, 177 Ark. 671, 8 S.W.2d 434 (1928) (decision under prior law).

Taxes and Appropriations.

Taxes must have been appropriated to the purpose for which collected. Lee County v. Phillips County, 46 Ark. 156 (1885) (decision under prior law).

Taxation for county purposes has to be uniform throughout the county; the levying court cannot provide for a dual system. Hutchinson v. Ozark Land Co., 57 Ark. 554, 22 S.W. 173 (1893) (decision under prior law).

A county tax levy will not be invalid on collateral attack because the levying court appropriated an amount in excess of the limits set in § 14-20-103, in the absence of any affirmative showing that the county had no funds derived from any other sources. Fussell v. Mallory, 97 Ark. 465, 134 S.W. 631 (1911) (decision under prior law).

Whether the county levying court levied a school tax in a certain district had to be determined by the records of that court and not by the depositions of the officers who composed the court. Alexander v. Capps, 100 Ark. 488, 140 S.W. 722 (1911) (decision under prior law).

Where quorum court failed to show a designation of the amount of the school levy in any school district by figures alone or otherwise, and it was impossible to determine from an examination of the record the amount of the millage sought to be levied, the levy made was void. Tyer v. Hazel, 212 Ark. 140, 205 S.W.2d 18 (1947) (decision under prior law).

There is no provision in law allowing a quorum court to turn over to the county judge a sum of money “to use as he sees fit and deems necessary,” and such an appropriation is invalid. Martin v. Bratton, 223 Ark. 159, 264 S.W.2d 635 (1954) (decision under prior law).

Quorum court has power and duty to determine and levy millages for county purposes only. Layne v. Strode, 229 Ark. 513, 317 S.W.2d 6 (1958) (decision under prior law).

In action involving the ad valorem assessment of real property where assessor, after making up his assessment books and an abstract of the assessed property, filed claim with the county clerk, who made out his report in accordance with the assessor's abstract, forwarding the report to the state, during which time the county board of equalization was in session, the action of the quorum court directing taxes be collected from the value established by the assessor was void, since the court was without authority to levy millages on any basis other than the assessment of the assessor, as were equalized and adjusted by the equalization board. Layne v. Strode, 229 Ark. 513, 317 S.W.2d 6 (1958) (decision under prior law).

There is no provision in the Arkansas Constitution or the statutes which gives a county court the specific authority to pay dues to a county judges association. Ark. Ass'n of County Judges v. Green, 232 Ark. 438, 338 S.W.2d 672 (1960) (decision under prior law).

Trial court did not err in denying a writ of mandamus brought by pension and retirement board to require county clerk and county collector to collect a four-tenths millage ad valorem tax as the city council did not approve the resolution for the tax prior to the county quorum court's meeting, as required by subdivision (b)(1) of this section. Russellville Police Pension Ret. Bd. v. Johnson, 365 Ark. 99, 225 S.W.3d 357 (2006).

Circuit court judge did not have statutory or constitutional authority to retroactively apply a millage-rate increase to 2007 library taxes after the special election because once a city issued an ordinance authorizing the ad valorem tax rates for 2007, a quorum court had authority pursuant to subdivision (b)(1)(A)(i) of this section to levy taxes for the current year in its November meeting. Robinson v. Villines, 2009 Ark. 632, 362 S.W.3d 870 (2009), appeal dismissed, 2012 Ark. 211 (2012).

Time and Place.

A quorum court was lawfully in session on giving notice of the session in any manner to justices of the peace affected. Cleveland County v. Pearce, 171 Ark. 1145, 287 S.W. 593 (1926) (decision under prior law).

Cited: Horton v. Taylor, 585 F. Supp. 224 (W.D. Ark. 1984).

14-14-905. Adoption and amendment of ordinances generally.

  1. Introduction of Ordinances and Amendments to Existing Ordinances. A county ordinance or amendment to an ordinance may be introduced only by a justice of the peace of the county or through the provisions of initiative and referendum pursuant to Arkansas Constitution, Amendment 7.
  2. Style Requirements.
    1. Generally.
      1. No ordinance or amendment to an existing ordinance passed by a county quorum court shall contain more than one (1) comprehensive topic and shall be styled “Be It Enacted by the Quorum Court of the County of , State of Arkansas; an Ordinance to be Entitled:”.
      2. Each ordinance shall contain this comprehensive title, and the body of the ordinance shall be divided into articles, sequentially numbered, each expressing a single general topic related to the single comprehensive topic.
    2. Amendment to Existing Ordinances. No county ordinance shall be revised or amended, or the provisions thereof extended or conferred, by reference to its title only, but so much thereof as is revised, amended, extended, or conferred shall be reenacted and published at length.
  3. Passage.
      1. On the passage of every ordinance or amendment to an existing ordinance, the yeas and nays shall be called and recorded.
      2. A concurrence by a majority of the whole number of members elected to the quorum court shall be required to pass any ordinance or amendment.
      1. All ordinances or amendments to existing ordinances of a general or permanent nature shall be fully and distinctly read on three (3) different days unless two-thirds (2/3) of the members composing the court shall dispense with the rule.
      2. This subdivision (c)(2) shall not serve to:
        1. Require a vote after each individual reading, but a vote only after the third and final reading;
        2. Require the ordinance or amendment to be read in its entirety on the first, second, or third reading; or
        3. Restrict the passage of emergency, appropriation, initiative, or referendum measures in a single meeting as provided by law.
  4. Approval and Publication.
      1. Upon passage, all ordinances or amendments shall be approved by the county judge within seven (7) days unless vetoed and shall become law without his or her signature if not signed within seven (7) days.
      2. The ordinances or amendments shall then be published by the county clerk as prescribed by law.
      1. Approval by the county judge shall be demonstrated by affixing his or her signature and his or her notation of the date signed on the face of an original copy of the proposed ordinance.
      2. This approval and authentication shall apply to all ordinances or amendments to existing ordinances unless the power of veto is invoked.
  5. Effective Date.
    1. No ordinance or amendment to an existing ordinance other than an emergency ordinance or appropriation ordinance shall be effective until thirty (30) calendar days after publication has appeared.
    2. An ordinance or amendment to an existing ordinance may provide for a delayed effective date or may provide for the ordinance or amendment to an existing ordinance to become effective upon the fulfillment of an indicated contingency.
  6. Reference to Electors.
    1. Generally.
        1. At the time of or within thirty (30) days of adoption and prior to the effective date of an ordinance, a quorum court may refer the ordinance to the electors for their acceptance or rejection.
        2. The referral shall be in the form of a resolution and shall require a three-fifths affirmative vote of the whole number of justices constituting a quorum court.
      1. This action by a court shall not be subject to veto and shall constitute a referendum measure.
    2. Manner and Procedure.
      1. Any ordinance enacted by the governing body of any county in the state may be referred to a vote of the electors of the county for approval or rejection in the manner and procedure prescribed in Arkansas Constitution, Amendment 7, and laws enacted pursuant thereto, for exercising the local initiative and referendum.
      2. The manner and procedure prescribed therein shall be the exclusive method of exercising the initiative and referendum regarding these local measures.

History. Acts 1977, No. 742, § 86; 1981, No. 220, § 1; A.S.A. 1947, §§ 17-4003, 17-4003.1; Acts 2005, No. 543, § 1.

Case Notes

Construction.

Subdivision (f)(2) did not repeal § 14-14-915(b)(2), but specifically preserved all previously enacted enabling legislation, including § 14-14-915(b)(2). Cox v. French, 277 Ark. 134, 640 S.W.2d 786 (1982).

Passage.

Law requiring the clerk to keep a record of the proceedings and to enter the name and the yea and nay votes of those voting on propositions to levy tax or to appropriate money was mandatory. Blakemore v. Brown, 142 Ark. 293, 219 S.W. 311 (1920) (decision under prior law).

Clerk's failure to keep record of voting on proposition to levy taxes, for nonpayment of which realty was subsequently sold, was a mere omission of an officer to do a positive duty required by statute and could be cured by curative statute. Kansas City Life Ins. Co. v. Moss, 196 Ark. 553, 118 S.W.2d 873 (1938) (decision under prior law).

After confirmation of the state's title to tax-forfeited land under former §§ 26-38-10826-38-118, it was too late to object to the validity of the tax sale on the ground that the record of the quorum court did not show the vote or the names of the justices voting for the motion levying the tax. Nichols v. Kesselberg, 211 Ark. 673, 201 S.W.2d 997 (1947) (decision under prior law).

Style Requirements.

Where an ordinance contains the word “ordained” rather than the statutorily prescribed word “enacted,” the ordinance is not void. Henderson v. Russell, 267 Ark. 140, 589 S.W.2d 565 (1979).

Cited: Foster v. Jefferson County Quorum Court, 321 Ark. 105, 901 S.W.2d 809 (1995); Massongill v. County of Scott, 329 Ark. 98, 947 S.W.2d 749 (1997).

14-14-906. Penalties for violation of ordinances.

  1. Authority to Establish.
      1. A county quorum court may fix penalties for the violation of any ordinance, and these penalties may be enforced by the imposition of fines, forfeitures, and penalties on any person offending against or violating the ordinance.
      2. The fine, forfeiture, or penalty shall be prescribed in each particular ordinance or in an ordinance prescribing fines, forfeitures, and penalties in general.
      1. A quorum court shall have power to provide, by ordinance, for the prosecution, recovery, and collection of the fines, forfeitures, and penalties.
        1. A quorum court shall not have the power to define an offense as a felony or to impose any fine or penalty in excess of one thousand dollars ($1,000) for any one (1) specified offense or violation, or double that sum for each repetition of the offense or violation.
        2. If an act prohibited or rendered unlawful is, in its nature, continuous in respect to time, the fine or penalty for allowing the continuance thereof, in violation of the ordinance, shall not exceed five hundred dollars ($500) for each day that it may be unlawfully continued.
  2. Disposition. All fines and penalties imposed for violation of any county ordinance shall be paid into the county general fund.

History. Acts 1977, No. 742, § 95; A.S.A. 1947, § 17-4012; Acts 2009, No. 319, § 1.

Amendments. The 2009 amendment substituted “one thousand dollars ($1,000)” for “five hundred dollars ($500)” in (a)(2)(B)(i), substituted “five hundred dollars ($500)” for “two hundred fifty dollars ($250)” in (a)(2)(B)(ii), and made a minor stylistic change.

14-14-907. Appropriation ordinances.

    1. Generally. An appropriation ordinance or amendment to an appropriation ordinance is defined as a measure by which the county quorum court designates a particular fund, or sets apart a specific portion of county revenue in the treasury, to be applied to some general object of expenditure or to some individual purchase or expense of the county.
    2. An appropriation ordinance or amendment to an existing appropriation ordinance may be introduced in the manner provided by law for the introduction of ordinances.
    3. Appropriation measures enacted by a quorum court shall include the following categories of financial management:
      1. The levy of taxes and special property tax assessments as provided by law; and
      2. The enactment of specific appropriations by which a specified sum has been set apart in the treasury and devoted to the payment of a particular demand. Specific appropriations may be enacted through the adoption of an annual budget, a statement of estimated receipts and expenditures, in a manner prescribed by law.
  1. Adoption and Amendment by Reference. Any quorum court may adopt, amend, or repeal an appropriation ordinance which incorporates by reference the provisions of any county budget or portion of a county budget, or any amendment thereof, properly identified as to date and source, without setting forth the provisions of the adopted budget in full. At least one (1) copy of a budget, portion, or amendment which is incorporated or adopted by reference shall be filed in the office of the county clerk and there kept available for public use, inspection, and examination.
  2. Designation. All appropriation ordinances or an amendment to an appropriation ordinance shall be designated “appropriation ordinance”.
  3. Readings and Publication. An appropriation ordinance may be enacted without separate readings or publication prior to passage. However, publication shall be initiated within two (2) calendar days, excepting holidays, after approval of the measure by the county judge.
  4. Voting Requirements. The passage of appropriation ordinances or amendments to existing appropriation ordinances enacted without separate readings shall require a two-thirds vote of the whole number of justices comprising a quorum court. On the passage of every appropriations measure, the yeas and nays shall be called and recorded in the minutes of the meeting.
  5. Effective Date. An appropriation measure is effective immediately upon passage by the quorum court and approval by the county judge.

History. Acts 1977, No. 742, § 87; A.S.A. 1947, § 17-4004.

Cross References. Appropriations to be specific — Limitations, § 14-20-103.

Political subdivisions not to become stockholders in or lend credit to private corporations, Ark. Const., Art. 12, § 5.

Case Notes

Appropriation Measures.

County ordinance was not labeled or designated an appropriation measure because it was not one as defined by this section. Massongill v. County of Scott, 329 Ark. 98, 947 S.W.2d 749 (1997).

Eligibility for Retirement System.

Substantial evidence supported the finding of the Board of Trustees of the Arkansas Public Employees' Retirement System that former employees of nursing homes owned by counties were not “county employees” under the relevant statutes and were not eligible for membership in the retirement system because their compensation was payable from patient revenues rather than from appropriated funds. Bd. of Trs. of the Ark. Pub. Emples. Ret. Sys. v. Garrison, 2019 Ark. App. 245, 576 S.W.3d 485 (2019).

Assuming that the nursing-home administrative boards and their respective counties were synonymous under the definitions of “County employees” and “Employees” in § 24-4-101, the Board of Trustees of the Arkansas Public Employees' Retirement System's finding that the former employees of county-owned nursing homes were not paid from appropriated funds as required by the definition of “Employees” in § 24-4-101 was affirmed as no ordinances in the record specifically designated county money for their compensation. Bd. of Trs. of the Ark. Pub. Emples. Ret. Sys. v. Garrison, 2019 Ark. App. 245, 576 S.W.3d 485 (2019).

Voting Requirements.

Where the record showed a unanimous vote for all appropriations, it was unnecessary to show the ayes and nays; record need not be signed. Hilliard v. Bunker, 68 Ark. 340, 58 S.W. 362 (1900) (decision under prior law).

14-14-908. Emergency ordinances or amendments.

  1. Generally. An emergency ordinance or emergency amendments to existing ordinances may be introduced in the manner provided by law for the introduction of ordinances. An emergency ordinance may be enacted only to meet public emergencies affecting life, health, safety, or the property of people.
  2. Limitations. An emergency ordinance or amendment shall not levy taxes, impose special property tax assessments, impose or change a service rate, or be enacted on any franchise or special privilege creating any vested right or interest or alienating any property. Every extension, enlargement, grant, or conveyance of franchise or any rights, property, easements, lease, or occupation of, or in, any road, street, alley, or any part thereof in real property or interest in real property owned by a county government exceeding in value three hundred dollars ($300), whether it be by ordinance or otherwise, shall be subject to referendum and shall not be subject to emergency enactment.
  3. Declaration of Emergency. An emergency ordinance must contain a declaration that an emergency exists and define the emergency. All emergency ordinances shall be designated “emergency ordinance”.
  4. Readings and Publication. An emergency measure does not require separate readings or publication prior to passage. However, publication shall be initiated within seven (7) calendar days, excepting holidays, after approval of the emergency measure by the county judge.
  5. Voting Requirements. The passage of emergency ordinances or emergency amendments to existing ordinances shall require a two-thirds vote of the whole number of justices comprising a quorum court. On the passage of every emergency measure, the yeas and nays shall be called and recorded in the minutes of the meeting.
  6. Effective Date. An emergency ordinance or emergency amendment to an existing ordinance is effective immediately upon passage by the quorum court and approval by the county judge.

History. Acts 1977, No. 742, § 88; 1979, No. 413, § 22; A.S.A. 1947, § 17-4005.

Case Notes

Enacting Clause.

Where an ordinance contains the word “ordained” rather than the statutorily prescribed word “enacted,” the ordinance is not void. Henderson v. Russell, 267 Ark. 140, 589 S.W.2d 565 (1979).

Ordinance Held Invalid.

Emergency clause in municipal ordinance containing no statement to show that some unforeseen occurrence caused the existing ordinance for special meetings to be injurious to life, health, or safety, was invalid. Burroughs v. Ingram, 319 Ark. 530, 893 S.W.2d 319 (1995).

Ordinance Held Valid.

Emergency ordinance allowing county to open and close graves without charge, complied with this section and was not clearly and unmistakably in violation of the state or federal constitutions. Thruston v. Little River County, 310 Ark. 188, 832 S.W.2d 851 (1992).

Ordinance calling for an election to submit one cent sales and use tax to voters did not violate this section because the ordinance did not itself levy a tax but was merely the first step in a process authorized by § 26-74-201 for the collection of the tax. Sanders v. County of Sebastian, 324 Ark. 433, 922 S.W.2d 334 (1996).

Readings and Publication.

Where the approval of an ordinance was on Thursday, and it was published in the next issue of the local weekly newspaper on Monday, with Saturday and Sunday excepted, the publication was at least initiated within two (now seven) days as contemplated by subsection (d). Henderson v. Russell, 267 Ark. 140, 589 S.W.2d 565 (1979) (decision prior to 1979 amendment).

14-14-909. Incorporation by reference.

  1. For the purpose of this section, “code” means any published compilation of rules which has been prepared by various technical trade associations, model code organizations, federal agencies, or this state, or any agency thereof, and shall include specifically, but shall not be limited to, building codes, plumbing codes, electrical wiring codes, health or sanitation codes, together with any other code which embraces rules pertinent to a subject which is a proper local county affair.
  2. Any county quorum court may adopt or repeal an ordinance that incorporates by reference the provisions of any code, or portions of any code, or any amendment thereof, properly identified as to date and source, without setting forth the provisions of the code in full. Notice of the intent to adopt a code by reference shall be published after the second reading and prior to final adoption of the code. At least one (1) copy of the code, portion, or amendment which is incorporated or adopted by reference shall be filed in the office of the county clerk and there kept available for public use, inspection, and examination. The filing requirements prescribed in this subsection shall not be considered to be complied with unless the required copies of the codes, portion, amendment, or public record are filed with the county clerk for a period of thirty (30) days prior to final adoption of the ordinance which incorporates the code, portion, or amendment by reference.
  3. The quorum court may adopt or amend a code by reference by an emergency ordinance and without notice.
  4. The process for repealing an ordinance which adopted or amended a code by reference shall be the same as for repealing any other ordinance.
  5. Any ordinance adopting a code, portion, or amendment by reference shall state the penalty for violating the code, portion, or amendment, or any provision thereof, separately, and no part of any penalty shall be incorporated by reference.

History. Acts 1977, No. 742, § 89; 1979, No. 413, § 23; A.S.A. 1947, § 17-4006.

14-14-910. Interlocal agreements.

  1. Generally. The county court of each county may contract, cooperate, or join with any one (1) or more other governments or public agencies, including any other county, or with any political subdivisions of the state or any other states, or their political subdivisions, or with the United States to perform any administrative service, activity, or undertaking which any contracting party is authorized by law to perform.
  2. Definitions.
    1. “County interlocal agreement” means any service contract entered into by the county court which establishes a permanent or perpetual relationship thereby obligating the financial resources of a county. Grant-in-aid agreements enacted through an appropriation ordinance shall not be considered an interlocal agreement.
    2. “Permanent or perpetual relationship” means for purposes of this section any agreement exhibiting an effective duration greater than one (1) year, twelve (12) calendar months, or an agreement exhibiting no fixed duration but where the apparent intent of the agreement is to establish a permanent or perpetual relationship. The interlocal agreements shall be authorized by ordinance of the quorum court. Any interlocal agreement enacted by ordinance may provide for the county to:
      1. Cooperate in the exercise of any function, power, or responsibility;
      2. Share the services of any officer, department, board, employee, or facility; and
      3. Transfer or delegate any function, power, responsibility, or duty.
  3. Contents. An interlocal agreement shall:
    1. Be authorized and approved by the governing body of each party to the agreement;
    2. Set forth fully the purposes, powers, rights, obligations, and responsibilities of the contracting parties; and
    3. Specify the following:
      1. Its duration;
      2. The precise organization, composition, and nature of any separate legal entity created;
      3. The purposes of the interlocal agreement;
      4. The manner of financing the joint or cooperative undertaking and establishing and maintaining a budget;
      5. The permissible methods to be employed in accomplishing the partial or complete termination of an agreement and for disposing of property upon partial or complete termination. The methods for termination shall include a requirement of six (6) months written notification of the intent to withdraw by the governing body of the public agency wishing to withdraw;
      6. Provision for an administrator or a joint board responsible for administering the joint or cooperative undertaking including representation of the contracting parties on the joint board;
      7. The manner of acquiring, holding, and disposing of real and personal property used in the joint or cooperative undertaking; and
      8. Any other necessary and proper matters.
  4. Submission to Legal Counsel. Prior to and as a condition precedent to its final adoption and performance, every agreement made shall be submitted to legal counsel who shall determine whether the agreement is in proper form and compatible with all applicable laws. The legal counsel shall approve any agreement submitted to him or her unless he or she finds it does not meet the conditions set forth in this section. Then he or she shall detail in writing addressed to the governing bodies of the public agencies concerned the specific respects in which the proposed agreement fails to meet the requirements of law. Failure to disapprove an agreement within thirty (30) days of its submission shall constitute approval.
  5. Submission to Attorney General. Prior to and as a condition precedent to its final adoption and performance, every agreement including a state or a state agency shall be submitted to the Attorney General who shall determine whether the agreement is in proper form and compatible with the laws of the State of Arkansas. The Attorney General shall approve any agreement submitted to him or her unless he finds it does not meet the conditions set forth in this section. Then he or she shall detail in writing addressed to the governing bodies of the public agencies concerned the specific respects in which the proposed agreement fails to meet the requirements of law. Failure to disapprove an agreement within thirty (30) days of its submission shall constitute approval.

History. Acts 1977, No. 742, § 90; A.S.A. 1947, § 17-4007.

A.C.R.C. Notes. Former subdivision (6) of this section provided that, effective February 1, 1978, all interlocal agreements subject to the provisions of this section should be reenacted or terminated by ordinance of the county quorum court and provided that no termination should impair the obligation of contract unless agreed to by the parties involved.

Case Notes

Construction.

Plain language of this section contemplates that counties may contract for any administrative service as long as either the county or the public agency is legally authorized to perform it; the plain language of this section contemplates that counties may delegate administrative powers to other public agencies under the provisions of this section. Sullins v. Central Arkansas Water, 2015 Ark. 29, 454 S.W.3d 727 (2015).

Applicability.

This section was applicable because a watershed protection agreement between a county and Central Arkansas Water required the county to expend money from its general tax revenues in executing the agreement and thus implicated the financial resources of the county; additionally, the actual enforcement of the agreement would, at times, involve existing members of the county staff beyond those for which Central Arkansas Water was reimbursing the county. Sullins v. Central Arkansas Water, 2015 Ark. 29, 454 S.W.3d 727 (2015).

Illegal Exaction.

Circuit court correctly ruled that a watershed protection agreement was valid under the Interlocal Agreement Act, § 14-14-910, because it was for administrative activities that either the county or Central Arkansas Water was legally authorized to perform and the county's financial resources were obligated in the agreement; because the contract between the county and Central Arkansas Water was authorized by the Act, the expenditure of funds under the contract was not an illegal exaction. Sullins v. Central Arkansas Water, 2015 Ark. 29, 454 S.W.3d 727 (2015).

Cited: Mears v. Hall, 263 Ark. 827, 569 S.W.2d 91 (1978).

14-14-911. Veto of ordinances or amendments.

  1. Authority to Veto. The county judge of each county shall preside over the county quorum court with the power of veto.
  2. Limitations of Veto. The power of veto shall be limited to the total text of an ordinance or amendment to an existing ordinance, and this veto power shall not be construed to permit the veto of any single part, section, or line item of any ordinance or amendment. The power of veto shall not apply to measures enacted through the provisions of initiative and referendum.
  3. Time Limitations for Veto. The veto of any ordinance of a general or permanent nature must be exercised within seven (7) calendar days after passage by a quorum court.
  4. Procedure and Authentication of Veto. The veto of any ordinance or amendment of a general or permanent nature shall be authenticated by the county judge and shall be demonstrated by the filing of a written statement of the reasons of veto with the county clerk.
  5. Notification of Veto. Upon filing of the written notification of veto by the county judge, the county clerk shall immediately provide written notification to each member of the quorum court and provide each member with a copy of the veto statement filed by the judge.
  6. Suspension of Force. No ordinance vetoed shall have any force or validity unless, at the next regular meeting after the filing of the veto statement, the quorum court shall exercise its power to override a veto pursuant to Arkansas Constitution, Amendment 55, § 4.

History. Acts 1977, No. 742, § 91; A.S.A. 1947, § 17-4008.

14-14-912. Veto override.

  1. Power of Veto Override. The quorum court of each county shall have the power to override the veto of the county judge.
  2. Vote Required. An affirmative vote of three-fifths (3/5) of the total membership of a quorum court shall be required to override the veto of any ordinance or amendment to an existing ordinance. On the consideration of a veto override by a court, the yeas and nays shall be called and recorded in the minutes of the meeting.
  3. Time of Veto Override. A quorum court shall exercise the power of veto override over permanent and temporary ordinances at the next regular session of the court following the written notification of veto. Failure to override a veto in a single vote of the court shall constitute a confirmation of veto by a court, and no further consideration of veto override on the measure shall be introduced in subsequent sessions of the court. However, any ordinance or amendment so vetoed and confirmed by failure to override the veto may be reintroduced in the manner prescribed by law for the introduction of ordinances and amendments to ordinances.

History. Acts 1977, No. 742, § 92; A.S.A. 1947, § 17-4009.

14-14-913. Adoption and amendment of resolutions.

  1. A county resolution or amendment to a resolution may be introduced only by a justice of the peace of the county.
  2. No resolution or amendment to a resolution passed by a county quorum court shall contain more than one (1) comprehensive topic and shall be styled “Be It Resolved by the Quorum Court of the County of , State of Arkansas That:”.
  3. No county resolution shall be revised or amended, or the provisions thereof extended or conferred, by references to its title only, but so much thereof as is revised, amended, extended, or conferred shall be reenacted and published at length.
  4. A proposed resolution must be read and adopted by a majority vote of the whole number of justices comprising a quorum court. On the passage of every resolution or amendment to an existing resolution, the yeas and nays shall be called and recorded in the minutes of the meeting.
  5. Resolutions or an amendment to an existing resolution may be introduced and adopted in a single meeting of the quorum court.
  6. Upon passage, all resolutions or amendments to existing resolutions shall be entered into the records of the quorum court. Publication of resolutions shall not be required except where publication is specified in the resolution adopted by a court.
  7. All resolutions shall be immediately effective unless a delayed effective date is specified.
  8. The power of veto shall not apply to the adoption of resolutions or amendments to resolutions.

History. Acts 1977, No. 742, § 93; A.S.A. 1947, § 17-4010.

14-14-914. Initiative and referendum generally.

  1. County Legislative Powers Reserved. The powers of initiative and referendum are reserved to the electors of each county government pursuant to Arkansas Constitution, Amendment 7.
  2. Restrictions. No county legislative measure shall be enacted contrary to the Arkansas Constitution or any general state law which operates uniformly throughout the state, and any general law of the state shall have the effect of repealing any county ordinance which is in conflict therewith. All ordinances adopted by the county quorum court providing for alternative county organizations and all proposed reorganizations of county government that may be proposed by initiative petition of electors of the county under Arkansas Constitution, Amendment 7, shall be submitted to the electors of the county only at the next following general election. However, such referendum shall be subject to initiative petition.
  3. Petition by Electors. The qualified electors of each county may initiate and amend ordinances and require submission of existing ordinances to a vote of the people by petition if signed by not less than fifteen percent (15%) of the qualified electors voting in the last general election for the office of circuit clerk, or the office of Governor where the electors have abolished the office of circuit clerk.
  4. Suspension of Force.
    1. General Ordinance. A referendum petition on a general ordinance, or any part thereof, shall delay the effective date on that part included in the petition until the ordinance is ratified by the electors. However, the filing of a referendum petition against one (1) or more items, sections, or parts of any ordinance shall not delay the remainder from becoming operative.
    2. Emergency Ordinance. A referendum petition on an emergency ordinance shall not suspend the force of the law, but the measure may be law until it is voted upon by the electors.

History. Acts 1977, No. 742, § 94; 1979, No. 413, § 24; A.S.A. 1947, § 17-4011.

Research References

U. Ark. Little Rock L.J.

Heller and Sallings, Survey of Public Law, 3 U. Ark. Little Rock L.J. 296.

Case Notes

Legislative Powers.

Where provisions of optional general stock law were never put in force in county, an initiated stock law covering the county was valid. Smith v. Plant, 179 Ark. 1024, 19 S.W.2d 1022 (1929) (decision under prior law).

The qualified electors of any particular county may enact salary laws applicable to that particular county. Dozier v. Ragsdale, 186 Ark. 654, 55 S.W.2d 779 (1932); Reeves v. Smith, 190 Ark. 213, 78 S.W.2d 72 (1935); Tindall v. Searan, 192 Ark. 173, 90 S.W.2d 476 (1936); Phillips v. Rothrock, 194 Ark. 945, 110 S.W.2d 26 (1937) (decisions under prior law).

Neither this section nor Ark. Const. Amend. 7, nor any other state law prohibits the voters of a county from using their right of initiative to call for a referendum whereby the people of the county can express their approval or disapproval of the quorum court's action in leasing a county owned hospital. Proctor v. Hammons, 277 Ark. 247, 640 S.W.2d 800 (1982).

Petition by Electors.

Where an elector wishes to place a bond issue on a special election ballot, but no votes were tabulated in the most recent general election for circuit clerk, the number of signatures required on the referendum petition should be determined by the total votes cast in the last general election in which votes were cast for the circuit clerk. Yarbrough v. Witty, 336 Ark. 479, 987 S.W.2d 257 (1999).

14-14-915. Initiative and referendum requirements.

  1. Style Requirements of Petitions. A petition for county initiative or referendum filed by the electors shall:
    1. Embrace only a single comprehensive topic and shall be styled and circulated for signatures in the manner prescribed for county ordinances and amendments to ordinances established in this section and § 7-9-101 et seq.;
    2. Set out fully in writing the ordinance sought by petitioners; or in the case of an amendment, set out fully in writing the ordinance sought to be amended and the proposed amendment; or in the case of referendum, set out the ordinance, or parts thereof, sought to be repealed; and
    3. Contain a written certification of legal review by an attorney at law duly registered and licensed to practice in the State of Arkansas. This legal review shall be conducted for the purpose of form, proper title, legality, constitutionality, and conflict with existing ordinances. Legal review shall be concluded prior to the circulations of the petition for signatures. No change shall be made in the text of any initiative or referendum petition measure after any or all signatures have been obtained.
  2. Time Requirements for Filing Petitions.
    1. Initiative Petitions. All petitions for initiated county measures shall be filed with the county clerk not less than ninety (90) calendar days nor more than one hundred twenty (120) calendar days prior to the date established for the next regular election.
    2. Referendum Petitions. All petitions for referendum on county measures must be filed with the county clerk within sixty (60) calendar days after passage and publication of the measure sought to be repealed.
    3. Certification. All initiative and referendum petitions must be certified sufficient to the county board of election commissioners not less than seventy (70) calendar days prior to a regular general election to be included on the ballot. If the adequacy of a petition is determined by the county clerk less than seventy (70) days prior to the next regular election, the election on the measure shall be delayed until the following regular election unless a special election is called on a referendum measure as provided by law.
  3. Filing of Petitions. Initiative and referendum petitions ordering the submission of county ordinances or measures to the electors shall be directed to and filed with the county clerk.
  4. Sufficiency of Petition. Within ten (10) days after the filing of any petition, the county clerk shall examine and ascertain its sufficiency. Where the petition contains evidence of forgery, perpetuated either by the circulator or with his or her connivance, or evidence that a person has signed a name other than his or her own to the petition, the prima facie verity of the circulator's affidavit shall be nullified and disregarded, and the burden of proof shall be upon the sponsors of petitions to establish the genuineness of each signature. If the petition is found sufficient, the clerk shall immediately certify the finding to the county board of election commissioners and the quorum court.
  5. Insufficiency of Petition and Recertification. If the county clerk finds the petition insufficient, within ten (10) days after the filing thereof the clerk shall notify the petitioners or their designated agent or attorney of record, in writing, setting forth in detail every reason for the findings of insufficiency. Upon notification of insufficiency of the petition, the petitioners shall be afforded ten (10) calendar days, exclusive of the day notice of insufficiency is receipted, in which to solicit and add additional signatures, or to submit proof tending to show that signatures rejected by the county clerk are correct and should be counted. Upon resubmission of a petition which was previously declared insufficient, within five (5) calendar days the county clerk shall recertify its sufficiency or insufficiency in the same manner as prescribed in this section and, thereupon, the clerk's jurisdiction as to the sufficiency of the petition shall cease.
  6. Appeal of Sufficiency or Insufficiency Findings. Any taxpayer aggrieved by the action of the clerk in certifying the sufficiency or insufficiency of any initiative or referendum petition, may within fifteen (15) calendar days, but not thereafter, may file a petition in circuit court for a review of the findings.

History. Acts 1977, No. 742, § 94; 1979, No. 891, § 1; A.S.A. 1947, § 17-4011; Acts 2009, No. 1480, § 50.

Amendments. The 2009 amendment substituted “not less than ninety (90) calendar days nor more than one hundred twenty (120) calendar days” for “not less than sixty (60) calendar days nor more than ninety (90) calendar days” in (b)(1); and substituted “seventy (70)” for “forty (40)” twice in (b)(3).

Research References

U. Ark. Little Rock L.J.

Heller and Sallings, Survey of Public Law, 3 U. Ark. Little Rock L.J. 296.

Case Notes

Constitutionality.

The 15-day time limit in subsection (f) of this section is not unconstitutional in violation of Ark. Const. Amend. 7. Committee for Util. Trimming, Inc. v. Hamilton, 290 Ark. 283, 718 S.W.2d 933 (1986).

Subsection (d) does not conflict with U.S. Const. amend. 7 because under the statute, the person attacking the petition must first meet the burden of proving the petition contains evidence of forgery or that there is evidence a person has signed a name other than his or her own, and this is consistent with the constitution, which places the burden of proof on the challenger; because the burden is on the contestant in the first instance, the statute does not conflict with the constitution. Our Cmty., Our Dollars v. Bullock, 2014 Ark. 457, 452 S.W.3d 552 (2014).

Construction.

Subsection (e) does not purport to preclude a circuit court from considering in its review the entirety of the petition, which includes all of the signatures submitted to a county clerk with the petition, but merely sets a deadline of five days for the county clerk to complete the task of determining whether thirty-eight percent of the registered voters signed the petition, after the sponsors have been given ten days to cure the previous deficiencies. Our Cmty., Our Dollars v. Bullock, 2014 Ark. 457, 452 S.W.3d 552 (2014).

Filing.

Procedural deficiencies by county clerk on proper filing of petition held not fatal when there is yet time in which the clerk may correct such deficiencies. Brown v. Davis, 226 Ark. 843, 294 S.W.2d 481 (1956) (decision under prior law).

Signatures.

Subsection (e) does envision the collection of signatures following the clerk's notification that the petition, as originally submitted, is insufficient; however, there is nothing in the statute that expressly prohibits a sponsor from collecting signatures after the petition has been filed with the county clerk. Our Cmty., Our Dollars v. Bullock, 2014 Ark. 457, 452 S.W.3d 552 (2014).

Circuit court clearly erred by refusing to consider 720 signatures in its review of the county clerk's certification of a ballot-question committee's local-option petition; a circuit court is called upon to determine whether the petition is sufficient, meaning whether thirty-eight percent of the registered voters signed the petition, and, in that review, a circuit court has to consider the entire petition, which includes all of the signatures submitted to a county clerk with the petition. Our Cmty., Our Dollars v. Bullock, 2014 Ark. 457, 452 S.W.3d 552 (2014).

Although the statute couches the deadline in jurisdictional terms, it does not follow that a circuit court is prohibited from considering uncounted signatures when determining the correctness of a clerk's certification that thirty-eight percent of registered voters signed the petition; although a county clerk is required to meet the deadline, the clerk's loss of jurisdiction after five days does not limit the evidence that can be received in circuit court upon de novo review of certification. Our Cmty., Our Dollars v. Bullock, 2014 Ark. 457, 452 S.W.3d 552 (2014).

Subsection (d) does not conflict with U.S. Const. amend. 7 because under the statute, the person attacking the petition must first meet the burden of proving the petition contains evidence of forgery or that there is evidence a person has signed a name other than his or her own, and this is consistent with the constitution, which places the burden of proof on the challenger; because the burden is on the contestant in the first instance, the statute does not conflict with the constitution. Our Cmty., Our Dollars v. Bullock, 2014 Ark. 457, 452 S.W.3d 552 (2014).

Because a ballot-question committee presented no evidence verifying excluded signatures, the circuit court correctly excluded all of the signatures found on petitions where any one signature was found to be invalid; nothing in the language of the statute limits its application to the county clerk's verification process. Our Cmty., Our Dollars v. Bullock, 2014 Ark. 457, 452 S.W.3d 552 (2014).

Sufficiency of Petition.

One affidavit to each petition consisting of many pages was held sufficient. Blocker v. Sewell, 189 Ark. 924, 75 S.W.2d 658 (1934) (decision under prior law).

Where evidence is satisfactory that names appearing on initiative petitions are not, prima facie, qualified electors, and no proof is offered to overcome this showing, the names will be stricken from the lists. Hargis v. Hall, 196 Ark. 878, 120 S.W.2d 335 (1938) (decision under prior law).

Evidence that names appearing on initiative petition were written in groups and in handwritings other than that of persons whose names were being used held sufficient to establish fraud, requiring the names be purged from lists. Hargis v. Hall, 196 Ark. 878, 120 S.W.2d 335 (1938) (decision under prior law).

If persons' names are signed by others to petition for the submission of a proposed initiated act to the voters, in the absence of wrongful intent or connivance between the signers and circulators of the petition, only those names wrongfully signed should be stricken. Sturdy v. Hall, 204 Ark. 785, 164 S.W.2d 884 (1942) (decision under prior law).

Where affidavits filed by circulators of petitions for an initiated measure were found to be false, the court was not wrong, as a matter of law, in excluding entirely the petitions of those affiants when the affiants merely said that they did not actually see all the persons sign in their presence. Parks v. Taylor, 283 Ark. 486, 678 S.W.2d 766 (1984).

Trial judge properly set aside a county clerk's certification of initiative petitions and properly instructed an election commission to remove the issue from the ballot because there was sufficient evidence on which the trial judge could rely to find that certain people signed names other than their own on various initiative petitions submitted to the clerk; the trial court was well within its bounds under subsection (d) of this section to reject the validity of those petitions and invalidate all of the signatures. Save Energy Reap Taxes v. Shaw, 374 Ark. 428, 288 S.W.3d 601 (2008).

Trial court erred in dismissing appellants' complaint challenging the validity of a county clerk's certification of a “wet/dry” initiative petition for placement on the ballot at a general election because appellants satisfied their burden of proof under subsection (d) of this section regarding two allegedly forged signatures on a petition; because the county clerk failed to produce any evidence on the issue, all of the signatures on the petition that contained the alleged forgeries had to be decertified. Mays v. Cole, 374 Ark. 532, 289 S.W.3d 1 (2008).

Time Requirements.

Where filing dates of initiative petitions showed they were filed less than 60 days before election contrary to Arkansas Constitution, there could be no presumption that the public had notice of proceeding contemplated and required by the constitution, and there was, therefore, no authority for holding the election and, the election was a nullity. Phillips v. Rothrock, 194 Ark. 945, 110 S.W.2d 26 (1937) (decision under prior law).

Section 14-14-905(f)(2) did not repeal subdivision (b)(2), but specifically preserved all previously enacted enabling legislation, including subdivision (b)(2). Cox v. French, 277 Ark. 134, 640 S.W.2d 786 (1982).

Paragraph three of the local petitions part of Ark. Const. Amend. 7, which states that the time for filing referendum petitions is from 30 to 90 days from the passage of the county measure, is not self-executing, because it clearly anticipates that general laws may be enacted fixing a time for filing a referendum petition at a specific time between 30 and 90 days; therefore, where the General Assembly, by enacting subdivision (b)(2), fixed the time at 60 days, the General Assembly exercised its lawful power to enact enabling legislation. Cox v. French, 277 Ark. 134, 640 S.W.2d 786 (1982).

Supreme Court of Arkansas had appellate jurisdiction over an appeal of a circuit court order affirming the county clerk's determination that a local-option petition was insufficient to place on the ballot; the 10-day appeal period of § 3-8-205(b) only applied when the county clerk had certified a petition and indicated that it would be placed on the ballot, and appellants had timely appealed under this section. Keep Our Dollars in Independence Cnty. v. Mitchell, 2017 Ark. 154, 518 S.W.3d 64 (2017).

Cited: Henard v. St. Francis Election Comm., 301 Ark. 459, 784 S.W.2d 598 (1990); Lawson v. St. Francis County Election Comm'n, 309 Ark. 135, 827 S.W.2d 159 (1992).

14-14-916. Judicial jurisdiction over initiative and referendum.

  1. Jurisdiction of Circuit Court. Jurisdiction is vested upon the circuit courts to hear and determine petitions for writs of mandamus, injunctions, and all other actions affecting the submission of any proposed county initiative or referendum petitions. All such proceedings and actions shall be heard summarily upon five (5) calendar days' notice in writing and shall have precedence over all other suits and matters before the court.
  2. Limitation of Injunction or Stay of Proceedings. No procedural steps in submitting an initiative or referendum measure shall be enjoined, stayed, or delayed by the order of any court or judge after the petition has been declared sufficient, except in circuit court on petition to review as provided in this section. During the pendency of any proceeding to review, the findings of the county clerk shall be conclusive and binding and shall not be changed or modified by any temporary order or ruling, and no court or judge shall entertain jurisdiction of any action or proceeding questioning the validity of any such ordinance or measure until after it shall have been adopted by the people.

History. Acts 1977, No. 742, § 94; A.S.A. 1947, § 17-4011; Acts 2003, No. 1185, § 21.

Research References

U. Ark. Little Rock L.J.

Heller and Sallings, Survey of Public Law, 3 U. Ark. Little Rock L.J. 296.

Case Notes

Injunction.

In suit to restrain enforcement of an initiative act and to have the act declared invalid, exhibits attached to motion to dissolve temporary restraining order, showing that jurisdictional requirements were met in respect of initiation of the act, showed prima facie the act was legally adopted. Sager v. Hibbard, 203 Ark. 672, 158 S.W.2d 922 (1942) (decision under prior law).

Jurisdiction.

The only jurisdiction conferred upon chancery courts is to review action of county clerk in determining the sufficiency of petitions for local laws. Hutto v. Rogers, 191 Ark. 787, 88 S.W.2d 68 (1935) (decision under prior law).

A chancery court has jurisdiction only to review the action of the county or city clerk in determining the sufficiency of petitions; proper jurisdiction of a suit to question the validity of a proposed measure lies in the circuit court. Dean v. Williams, 339 Ark. 439, 6 S.W.3d 89 (1999).

Cited: Moorman v. Priest, 310 Ark. 525, 837 S.W.2d 886 (1992).

14-14-917. Initiative and referendum elections.

  1. Time of Election for Initiative and Referendum Measures.
    1. Initiative. Initiative petition measures shall be considered by the electors only at a regular general election at which state and county officers are elected for regular terms.
    2. Referendum. Referendum petition measures may be submitted to the electors during a regular general election and shall be submitted if the adequacy of the petition is determined within the time limitation prescribed in this section. A referendum measure may also be referred to the electors at a special election called for the expressed purpose proposed by petition. However, no referendum petition certified within the time limitations established for initiative measures shall be referred to a special election, but shall be voted upon at the next regular election. No referendum election shall be held less than sixty (60) days after the certification of adequacy of the petition by the county clerk.
    3. Calling Special Elections. The jurisdiction to establish the necessity for a special election on referendum measures is vested in the electors through the provisions of petition. Where the jurisdiction is not exercised by the electors, the county court of each of the several counties may determine the necessity. However, a quorum court may compel the calling of a special election by a county court through resolution adopted during a regularly scheduled meeting of the quorum court. The resolution may specify a reasonable time limitation in which a county court order calling the special election shall be entered.
    4. Time of Special Election. The county court shall fix the date for the conduct of any special elections on referendum measures. The date shall be not less than established under § 7-11-201 et seq. When the electors exercise their powers to establish the necessity for a special election, the county court shall order an election according to the dates stated in § 7-11-201 et seq.
  2. Certification Requirements.
    1. Numeric Designation of Initiative and Referendum Measures. Upon finding an initiative or referendum petition sufficient and prior to delivery of the certification to a board of election commissioners and quorum court, the county clerk shall cause the measure to be entered into the legislative agenda register of the quorum court. This entry shall be in the order of the original filing of petition, and the register entry number shall be the official numeric designation of the proposed measure for election ballot purposes.
    2. Certification of Sufficiency. The certification of sufficiency for initiative and referendum petitions transmitted by the county clerk to the county board of election commissioners and quorum court shall include the ballot title of the proposed measure, the legislative agenda registration number, and a copy of the proposed measure, omitting signatures. The ballot title certified to the board shall be the comprehensive title of the measure proposed by petition, and the delivery of the certification to the chair or secretary of the board shall be deemed sufficient notice to the members of the board and their successors.
  3. Notice of Election.
    1. Initiative Petitions. Upon certification of any initiative or referendum petition measure submitted during the time limitations for a regular election, the county clerk shall give notice through publication by a two-time insertion, at not less than a seven-day interval, in a newspaper of general circulation in the county or as provided by law. Publication notice shall state that the measure will be submitted to the electors for adoption or rejection at the next regular election and shall include the full text, the ballot title, and the official numeric designation of the measure.
    2. Referendum Petition. Upon certifying any referendum petition prior to the time limitations of filing measures established for a regular election, the county clerk shall give notice through publication by a one-time insertion in a newspaper of general circulation in the county or as provided by law. Publication notice shall state that the measure will be submitted to the electors for adoption or rejection at the next regular election or a special election when ordered by the county court and shall include the full text, the ballot title, and the official numeric designation of the measure.
    3. Publication of Special Referendum Election Notice. Upon filing of a special election order by the county court, the county clerk shall give notice of the election through publication by a two-time insertion, at not less than a seven-day interval, in a newspaper of general circulation in the county or as provided by law. Publication shall state that the measure will be submitted to the electors for adoption or rejection at a special election and shall include the full text, the date of the election, the ballot title, and official numeric designation of the measure.
    4. Costs. The cost of all publication notices required in this section shall be paid out of the county general fund.
  4. Ballot Specifications for Initiative and Referendum Measures.
      1. Upon receipt of any initiative or referendum measure certified as sufficient by a county clerk, it shall be the duty of the members of the county board of election commissioners to take due cognizance and to certify the results of the vote cast thereon.
        1. Except as provided in subdivision (d)(1)(B)(ii) of this section, the board shall cause the ballot title to be placed on the ballot to be used in the election, stating plainly and separately the title of the ordinance or measure so initiated or referred by the quorum court to the electors with these words:
        2. If the election concerns repeal of an ordinance or measure by referendum petition, the ballot shall state plainly the title of the initiated ordinance or referred measure with these words:
    1. In arranging the ballot title on the ballot, the commissioners shall place it separate and apart from the ballot titles of the state acts, constitutional amendments, and the like. If the board of election commissioners fails or refuses to submit a proposed initiative or referendum ordinance when it is properly petitioned and certified as sufficient, the qualified electors of the county may vote for or against the ordinance or measure by writing or stamping on their ballots the proposed ballot title, followed by the word “FOR” or “AGAINST”, and a majority of the votes so cast shall be sufficient to adopt or reject the proposed ordinance.
  5. Conflicting Measures. Where two (2) or more ordinances or measures shall be submitted by separate petition at any one (1) election, covering the same subject matter and being for the same general purpose, but different in terms, words, and figures, the ordinance or measure receiving the greatest number of affirmative votes shall be declared the law, and all others shall be declared rejected.
  6. Contest of Election. The right to contest the returns and certification of the vote cast upon any proposed initiative or referendum measure is expressly conferred upon any ten (10) qualified electors of the county. The contest shall be brought in the circuit court and shall be conducted under the procedure for contesting the election of county officers, except that the complaint shall be filed within sixty (60) days after the certification of the vote, and no bond shall be required of the contestants.
  7. Vote Requirement for Enactment of Ordinance. Any measure submitted to the electors as provided in this section shall take effect and become law when approved by a majority of the votes cast upon the measure, and not otherwise, and shall not be required to receive a majority of the electors voting at the election. The measure so enacted shall be operative on and after the thirtieth day after the election at which it is approved, unless otherwise specified in the ordinance or amendment.

“FOR PROPOSED INITIATIVE (OR REFERRED) ORDINANCE (OR AMENDMENT OR MEASURE)

NO.

AGAINST PROPOSED INITIATIVE (OR REFERRED) ORDINANCE (OR AMENDMENT OR MEASURE)

NO.

“FOR REPEAL OF THE INITIATIVE (OR REFERRED) ORDINANCE (OR AMENDMENT OR MEASURE)

NO.

AGAINST REPEAL OF THE INITIATIVE (OR REFERRED) ORDINANCE (OR AMENDMENT OR MEASURE)

NO.

History. Acts 1977, No. 742, § 94; A.S.A. 1947, § 17-4011; Acts 2003, No. 1441, § 2; 2007, No. 1049, § 35; 2009, No. 1480, § 51; 2015, No. 1036, § 1.

Amendments. The 2009 amendment substituted “§ 7-11-201 et seq.” for “§ 7-5-103(b)” twice in (a)(4).

The 2015 amendment redesignated (d) as (d)(1) and (2); deleted “So that electors may vote upon the ordinance or measure” from the end of (d)(1)(A); in (d)(1)(B)(i), in the introductory language, added “Except as provided in subdivision (d)(1)(B)(ii) of this section” to the beginning and inserted “by the quorum court,” and added “OR MEASURE” twice throughout; and added (d)(1)(B)(ii).

Cross References. Special school elections, § 6-14-102.

Research References

U. Ark. Little Rock L.J.

Heller and Sallings, Survey of Public Law, 3 U. Ark. Little Rock L.J. 296.

Case Notes

Ballot Specifications.

The words “Initiative Act No. 1 of White County” preceding the title was no part of the title and the omission of the words “of White County” from the ballot did not affect its validity. Smith v. Plant, 179 Ark. 1024, 19 S.W.2d 1022 (1929) (decision under prior law).

Ballot title, “An act to fix the salaries and expenses of county officers and to fix the manner in which such compensations and salaries shall be paid and to reduce the costs of county government, and for other purposes,” was sufficient. Coleman v. Sherrill, 189 Ark. 843, 75 S.W.2d 248 (1934); Blocker v. Sewell, 189 Ark. 924, 75 S.W.2d 658 (1934); House v. Brazil, 196 Ark. 602, 119 S.W.2d 397 (1938) (decisions under prior law).

Calling Special Elections.

The matter of calling a special election, if not exercised by the electors, rests in the discretion of the county judge and/or the quorum court, either of which may determine the necessity of calling a special election. Quattlebaum v. Davis, 265 Ark. 588, 579 S.W.2d 599 (1979).

Contest of Elections.

Equity had no jurisdiction to try election contests involving initiated acts. Hutto v. Rogers, 191 Ark. 787, 88 S.W.2d 68 (1935) (decision under prior law).

Taxpayer's suit against county officials to enjoin disbursement of public revenues pursuant to provisions of initiated act by reason that submission of the question was unauthorized under the initiative and referendum act and enabling act passed pursuant thereto, and therefore did not become a law notwithstanding a favorable vote thereon, held not an election contest, and 60 day limitation would not apply to it. Phillips v. Rothrock, 194 Ark. 945, 110 S.W.2d 26 (1937) (decision under prior law).

In suit to restrain enforcement of an initiative act and to have the act declared invalid, exhibits attached to motion to dissolve temporary restraining order, showing that jurisdictional requirements were met in respect of initiation of the act, showed prima facie the act was legally adopted. Sager v. Hibbard, 203 Ark. 672, 158 S.W.2d 922 (1942) (decision under prior law).

Proper procedure to prevent calling of election on dog racing by board of commissioners was by suit against commissioners rather than against county clerk, since an election was under authority of former statutes relating to racing, and not under the power of initiative or referendum. Townes v. McCollum, 221 Ark. 920, 256 S.W.2d 716 (1953) (decision under prior law).

After a question is submitted to and voted upon by the people, the sufficiency of the petition was of no importance and could not be questioned. Herrington v. Hall, 238 Ark. 156, 381 S.W.2d 529 (1964) (decision under prior law).

Under former statute and Ark. Const. Amend. 7, validity of election wherein countywide stock law was adopted was not affected by failure of court to rule on action attacking validity of petition prior to the election where record showed no request for trial nor objection for failure to grant a trial. Herrington v. Hall, 238 Ark. 156, 381 S.W.2d 529 (1964) (decision under prior law).

When the Arkansas Constitution of 1874 was adopted, chancery courts had no jurisdiction with respect to election contests or the adjudication of political rights, and such jurisdiction could not be conferred by statute. McFerrin v. Knight, 265 Ark. 658, 580 S.W.2d 463 (1979) (decision under prior law).

Publication of Election Notices.

Acts 1911 (Ex. Sess.), No. 2, § 15, relating to the publication of initiated measures, could have no applicability to local or county measures after the adoption of Ark. Const. Amend. 7. Reeves v. Smith, 190 Ark. 213, 78 S.W.2d 72 (1935) (decision under prior law).

Vote Requirements.

An affirmative vote could not be given effect when the petition was not filed in compliance with the constitutional provisions. Phillips v. Rothrock, 194 Ark. 945, 110 S.W.2d 26 (1937) (decision under prior law).

Cited: Henard v. St. Francis Election Comm., 301 Ark. 459, 784 S.W.2d 598 (1990); Redd v. Sossomon, 315 Ark. 512, 868 S.W.2d 466 (1994).

14-14-918. Passage of initiative and referendum measures.

  1. Recording of Enactment. Upon passage of any initiative or referendum measure by the electors, the county clerk shall record the enactment in the county ordinance and resolution register in the manner provided by law for all county ordinances and resolutions. The register entry number designation shall thereby become the official reference number designating the enactment.
  2. Quorum Court Authority. No measure approved by a vote of the electors shall be amended or repealed by a quorum court except by affirmative vote of two-thirds (2/3) of the whole number of justices comprising a court. On the passage of an amendment or repealing measure, the yeas and nays shall be called and recorded in the minutes of the meeting.
  3. Preservation of Records. All petitions, certificates, notices, and other evidences of procedural steps taken in submitting any ordinance shall be filed and preserved for a period of three (3) years by the county clerk.

History. Acts 1977, No. 742, § 94; A.S.A. 1947, § 17-4011.

Research References

U. Ark. Little Rock L.J.

Heller and Sallings, Survey of Public Law, 3 U. Ark. Little Rock L.J. 296 (1980).

14-14-919. Referendum petitions on county bond issue.

All referendum petitions under Arkansas Constitution, Amendment 7, against any measure, as the term is used and defined in Arkansas Constitution, Amendment 7, pertaining to a county bond issue or a short-term financing obligation of a county under Arkansas Constitution, Amendment 78, must be filed with the county clerk within thirty (30) days after the adoption of any such measure.

History. Acts 1979, No. 717, § 1; A.S.A. 1947, § 17-4011.1; Acts 2001, No. 981, § 1.

A.C.R.C. Notes. Acts 2001, No. 981, § 2, provided:

“All laws and parts of laws in conflict herewith are hereby repealed to the extent of such conflict.”

Subchapter 10 — Judicial Powers

Effective Dates. Acts 1977, No. 742, § 118: Mar. 24, 1977. Emergency clause provided: “It is hereby found by the General Assembly that the passage of Amendment 55 to the Arkansas Constitution has caused major changes in the structure of county government and that, because of said changes, a need exists to modernize laws affecting county government. It is further found that the citizens of the several counties of the State are in need of services provided by county governments and said services can best be provided under the provisions of this Act. Therefore, an emergency is hereby declared to exist and this Act, being necessary for the public health, welfare and safety, shall be in effect from and after its passage and approval.”

Acts 1979, No. 413, § 28: Mar. 20, 1979. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that Act 742 of 1977 contains certain deficiencies and ambiguities detrimental to the citizens of this State; and that amendatory legislation must be immediately enacted to remedy the defects. Therefore, an emergency is hereby declared to exist, and this Act, being necessary for the immediate preservation of the public peace, health, and safety, shall be in full force and effect from and after its passage and approval.”

Research References

Am. Jur. 56 Am. Jur. 2d, Mun. Corp., §§ 193-230, 423-578.

14-14-1001. County court generally.

  1. Courts of Record. The county court shall be a court of record and shall keep just and faithful records of its proceedings.
  2. Seal of the Court. The county court of each county shall preserve and keep a seal with such emblems and devices as the court deems proper. The seal shall be clear and legible and capable of photographic reproduction. The impression of the seal of the court by stamp shall be sufficient sealing in all cases in which sealing is required.
  3. Establishment of Office. The county judge shall maintain an office in a county building at the county seat. The office shall be open to the public during normal business hours. However, in counties having more than one (1) county seat or judicial district, the county court may prescribe the times and places the offices shall be open to the public for the transaction of county business.
  4. Term of the County Court. The terms of the county courts shall be held at the times that are prescribed for holding the supervisor's courts or may otherwise be prescribed by law. There shall be no adjournment of county courts, but the courts shall be deemed in recess when not engaged in the transaction of county business. In counties having more than one (1) judicial district, the county court shall be concurrently in session in each district.
  5. Disqualification of Judges. Whenever a judge of the county may be disqualified for presiding in any cause pending in his or her court, he or she shall certify the facts to the Governor, who shall thereupon commission a special judge to preside in the cause during the time the disqualification may continue or until the cause may be fully disposed of.

History. Acts 1977, No. 742, § 81; 1979, No. 413, § 19; A.S.A. 1947, § 17-3904; Acts 2005, No. 1227, § 1; 2013, No. 469, § 1.

Amendments. The 2013 amendment inserted the second sentence in (b).

Case Notes

Unauthorized Practice of Law.

Circuit court did not err in dismissing a company's tax assessment appeal for lack of jurisdiction when its tax manager, a nonlawyer, initiated the appeal on its behalf because the company invoked the legal process and its nonattorney representative engaged in the unauthorized practice of law; the company, through a nonlawyer, lodged its appeal in the county court, initiating the appeal process in a court of record. Desoto Gathering Co., LLC v. Hill, 2017 Ark. 326, 531 S.W.3d 396 (2017).

14-14-1002. Other judicial authorities of county court.

  1. Injunctions, Restraining Orders, and Provisional Writs. In case of the absence of the circuit judge from the county, the county court may issue injunctions, restraining orders, and other provisional writs after the action has been commenced, but not before. However, either party may have the order reviewed by the circuit judge.
  2. Defense of County. In cases when appeals are prosecuted in the circuit court or Supreme Court, the county judge shall defend them, and all expenses or money paid out by reason of his or her defense shall be repaid by the proper county, by order of the county court.
  3. Writs of Habeas Corpus. The county judge shall have power, in the absence of the circuit judge from the county, to issue, hear, and determine writs of habeas corpus, under such regulations and restrictions as shall be provided by law.
  4. Compensation. The county judge shall receive such compensation for his or her services as presiding judge of the county court as may be provided by law.

History. Acts 1977, No. 742, § 82; 1979, No. 413, § 20; A.S.A. 1947, § 17-3905; Acts 2003, No. 1185, § 22.

Case Notes

Cited: Villines v. Harris, 340 Ark. 319, 11 S.W.3d 516 (2000).

14-14-1003. Appeals.

Appeals from all judgments of the county courts may be taken to the circuit court, under such restrictions and regulations as may be prescribed by law.

History. Acts 1977, No. 742, § 83; A.S.A. 1947, § 17-3906; Acts 2017, No. 260, § 1.

Amendments. The 2017 amendment deleted “or courts of common pleas, when established,” following “county courts”.

Case Notes

Cited: Mears v. Hall, 263 Ark. 827, 569 S.W.2d 91 (1978); Union County v. Union County Election Comm'n, 274 Ark. 286, 623 S.W.2d 827 (1981).

Subchapter 11 — Executive Powers

Effective Dates. Acts 1977, No. 742, § 118: Mar. 24, 1977. Emergency clause provided: “It is hereby found by the General Assembly that the passage of Amendment 55 to the Arkansas Constitution has caused major changes in the structure of county government and that, because of said changes, a need exists to modernize laws affecting county government. It is further found that the citizens of the several counties of the State are in need of services provided by county governments and said services can best be provided under the provisions of this Act. Therefore, an emergency is hereby declared to exist and this Act, being necessary for the public health, welfare and safety, shall be in effect from and after its passage and approval.”

Acts 1997, No. 394, § 5: Mar. 6, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that devastating tornadoes and flooding recently occurred in several counties of the state; that several of the affected counties have been declared disaster areas by the Governor; that as a result of the disaster considerable cleanup services and other services will be required on private property as well as public property; that it is in the best interests of the counties involved in such disasters as well as residents of those counties that the devastated areas be cleaned up and restored as quickly as is feasible; that the use of county equipment and labor to the extent the county judge deems appropriate would be beneficial to everyone involved, and that this act is designed to permit the use of county equipment and labor on private property in these limited circumstances and should be given effect immediately. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Research References

Am. Jur. 56 Am. Jur. 2d, Mun. Corp., §§ 193-230, 423-578.

U. Ark. Little Rock L.J.

Survey of Arkansas Law, Public Law, 1 U. Ark. Little Rock L.J. 230.

14-14-1101. Powers of county judge generally.

  1. Arkansas Constitution, Amendment 55, § 3, established the following executive powers to be administered by the county judge:
    1. To preside over the county quorum court, without a vote but with the power of veto;
    2. To authorize and approve disbursement of appropriated county funds;
    3. To operate the system of county roads;
    4. To administer ordinances enacted by the quorum court;
    5. To have custody of county property; and
    6. To hire county employees, except those persons employed by other elected officials of the county.
  2. In the performance of such executive duties, the county judge shall be bonded in the manner provided by law, as required in Arkansas Constitution, Amendment 55, § 6.

History. Acts 1977, No. 742, § 78; 1979, No. 98, § 1; 1981, No. 994, § 1; 1983, No. 183, § 1; 1983, No. 232, § 1; A.S.A. 1947, § 17-3901.

Publisher's Notes. Acts 1981, No. 994 became law without the Governor's signature.

Acts 1983, No. 183, § 3, provided that the General Assembly recognizes that the provisions of Acts 1981, No. 994 were confusing and contained language that could not be reconciled; that Acts 1981, No. 994 created considerable confusion and misunderstanding, and that some counties have entered into leases, contracts, and arrangements which may be questionable under the provisions of Acts 1981, No. 994; and that in order to avoid further confusion and misunderstanding, all such contracts, leases, or other arrangements entered into by any county during the period from the effective date of Acts 1981, No. 994 until the effective date of this act that were entered into in conformity with the law in existence prior to the effective date of Acts 1981, No. 994, or in conformity with Acts 1981, No. 994, were declared to be legal and binding.

Cross References. Self-Insured Fidelity Bond Program, § 21-2-701 et seq.

Case Notes

Bond.

Where an action was brought for damages against county judge for dismissing a person from position of director of county program on aging, the county judge, in hiring and firing county employees, was exercising administrative and ministerial functions under this section, since the last paragraph of this section requires the judge to be bonded in the performance of his executive duties, including the hiring of county employees, and such bonding requirement would be meaningless if hiring and firing of county officials was a judicial function; thus, the county judge was not entitled to judicial immunity for his actions under Ark. Const., Art. 7, § 28. Clark v. Campbell, 514 F. Supp. 1300 (W.D. Ark. 1981).

Cited: Mears v. Hall, 263 Ark. 827, 569 S.W.2d 91 (1978).

14-14-1102. Exercise of powers by county judge.

  1. Performance. The General Assembly determines that the executive powers of the county judge as enumerated in Arkansas Constitution, Amendment 55, § 3, are to be performed by him or her in an executive capacity and not by order of the county court.
  2. Procedures. In the exercise of the executive powers of the county judge as enumerated, the county judge shall adhere to the following procedures:
    1. Operation of System of County Roads, Bridges, and Ferries.
        1. The county judge shall be responsible for the administrative actions affecting the conduct of a plan of public roadways and bridges throughout the unincorporated areas of the county, including the maintenance and construction of public roadways and bridges and roadway drainage designated as eligible for expenditure of county funds. This jurisdiction shall be exercised pursuant to law, and nothing in this section shall be construed as limiting a county in performing public roadway and bridge maintenance and construction services within the incorporated municipal boundaries where permitted and in the manner prescribed by law.
        2. For the purposes of this section, the term “bridges” shall include all structures erected over a river, creek, ditch, or obstruction in a public roadway. The county judge shall administer the operation of county-owned ferries.
        1. The county court shall continue to exercise the powers granted by law for the granting of a right to maintain a ferry by a private individual at a particular place and at which a toll for the transportation of persons or property is levied to conduct an uninterrupted roadway over interrupted waters.
        2. The quorum court may establish by ordinance appropriate procedures and schedules of tolls that may be charged by private individuals who are granted authority to operate a private ferry on connecting public roadways;
    2. Authorization and Approval of the Disbursement of Appropriated County Funds.
        1. All vouchers for the payment of county funds out of the county treasury shall be approved and filed by the county judge or his or her designated representative, who shall be appointed by executive order of the judge and who shall be bonded in an amount equal to the county judge's bond in the manner provided by law.
        2. Approval for payment shall be signified by the signature of the county judge or his or her designated representative.
        3. A copy of the executive order evidencing the designated representative's appointment shall be filed in the office of county clerk with the original of the surety bond on the designated representative.
      1. Before approving any voucher for the payment of county funds, the county judge, or his or her designated representative, shall determine that:
        1. There is a sufficient appropriation available for the purpose and there is a sufficient unencumbered balance of funds on hand in the appropriate county fund to pay therefor;
        2. The expenditure is in compliance with the purposes for which the funds are appropriated;
        3. All state purchasing laws and other state laws or ordinances of the quorum court are complied with in the expenditure of the moneys;
        4. The goods or services for which expenditure is to be made have been rendered and the payment thereof has been incurred in a lawful manner and is owed by the county. However, a county judge may approve, in advance, claims payable to the University of Arkansas Cooperative Extension Service for educational services to be rendered during all or part of the current fiscal year.
        1. No money shall be paid out of the treasury until it shall have been appropriated by law and then only in accordance with the appropriation, and all contracts for erecting and repairing the public buildings in any county or for materials therefor, or for providing for the care and feeding of paupers where there are no public or private facilities or services available for such a purpose, shall be given to the lowest possible bidder under such regulations as may be prescribed by law.
        2. The county judge shall have the authority to enter into necessary contracts or other agreements to obligate county funds and to approve expenditure of county funds appropriated therefor in the manner provided by law.
          1. The county judge of each county may promulgate appropriate administrative rules and regulations, after notice and hearing thereon, for the conduct of county financial affairs.
          2. The administrative rules and regulations shall be consistent with the provisions of laws relating to financial management of county government and the appropriate ordinances enacted by the quorum court.
          3. All such administrative rules and regulations adopted after hearings by the county judge shall be certified by the county judge and filed in the office of the county clerk to be open to public inspection at all normal hours of business.
      1. Custody of County Property. The county judge, as the chief executive officer of the county, shall have custody of county property and is responsible for the administration, care, and keeping of such county property, including the right to dispose of county property in the manner and procedure provided by law for the disposal of county property by the county court. The county judge shall have the right to lease, assign, or not assign use of the property whether or not the county property was purchased with county funds or was acquired through donations, gifts, grants, confiscation, or condemnation.
      2. In addition to other terms the county court finds reasonable and proper, the contract for the lease of county property shall provide that when the leased property ceases to be used for the purpose expressed in the lease or needs to be used by the county, the lease may be cancelled by the county court after reasonable notice.
    3. Administration of Ordinances Enacted by the Quorum Court. The county judge shall be responsible for the administration and performing the executive functions necessary for the management and conduct of county affairs, as prescribed by ordinance of the quorum court, unless the performance of such duties is vested in the county court by ordinances enacted by the quorum court or by the general laws of this state.
      1. Hiring of County Employees, Except Those Persons Employed by Other Elected Officials of the County. The county judge, as the chief executive officer of the county, is responsible for the employment of the necessary personnel or for the purchase of labor or services performed by individuals or firms employed by the county or an agency thereof for salaries, wages, insurance, or other forms of compensation.
        1. “County or subdivisions thereof”, for the purposes of this section, means all departments except departments administratively assigned to other elected officials of the county, boards, and subordinate service districts created by county ordinance.
          1. Jurisdiction for the hiring of employees of counties, administrative boards, or subordinate service districts may be delegated by ordinance to the board or service district, but where any county ordinance delegating authority to hire county employees interferes with the jurisdiction of the county judge, as provided in this section, it shall be implied that the delegation shall be performed only with the approval of the county judge.
          2. The jurisdiction to purchase the labor of an individual for salary or wages employed by other elected officials of the county shall be vested in each respective elected official.
    4. Presiding Over the Quorum Court Without a Vote, but with the Power of Veto.
      1. In presiding over the quorum court, the county judge shall perform such duties in connection therewith as may be provided by state law and in accordance with rules and procedures promulgated by the court for the conduct of its business.
      2. Nothing in this subdivision shall limit the veto power of the county judge as provided in Arkansas Constitution, Amendment 55.
    5. Accepting Gifts, Grants, and Donations from Federal, Public, or Private Sources.
      1. The county judge, as the chief executive officer, is authorized to accept, in behalf of the county, gifts, grants, and donations of real or personal property for use of the county. He or she may apply for, enter into necessary contracts, receive, and administer for and in behalf of the county, subject to such appropriation controls that the quorum court may elect to adopt by ordinance, funds from the federal government, from other public agencies, or from private sources.
      2. All such contracts or agreements shall be filed as public record with the county clerk.

History. Acts 1977, No. 742, § 78; 1979, No. 98, § 1; 1979, No. 413, §§ 16, 17; 1981, No. 994, § 1; 1983, No. 183, § 1; 1983, No. 232, § 1; A.S.A. 1947, § 17-3901; Acts 1997, No. 387, § 1; 2009, No. 410, §§ 1, 2; 2011, No. 837, § 4.

Publisher's Notes. Acts 1981, No. 994 became law without the Governor's signature.

Amendments. The 2009 amendment inserted (b)(3)(B) and redesignated the remaining text accordingly, inserted “lease” in (b)(3)(A), inserted “insurance” in (b)(5)(A), and made minor stylistic and punctuation changes

The 2011 amendment inserted “or her” in (b)(2)(A)(i); and deleted “manual” preceding “signature” in (b)(2)(A)(ii).

Case Notes

Applicability.

This section does not apply to bribes received by a county judge. Anderson v. Sharp County, 295 Ark. 366, 749 S.W.2d 306 (1988).

County Employees.

The county judge, as an executive officer of the county, is vested with responsibility with respect to hiring county employees and with respect to salaries, wages, and other forms of compensation. McCuen v. Jackson, 265 Ark. 819, 581 S.W.2d 326 (1979).

When a county judge entered into a collective bargaining agreement (CBA) with the union, the judge exercised his executive responsibility to provide county employees with other forms of compensation; therefore, the judge acted within his capacity to bind the county to the CBA and the county had an obligation to pay the insurance premiums for the county employees' dependents. AFSCME, Local 380 v. Hot Spring County, 362 F. Supp. 2d 1035 (W.D. Ark. 2004).

County museum.

Designation of county building as a museum was not an illegal exaction since subdivision (b)(3) of this section and Ark. Const. Amend. 55, § 3, provide that the County Judge is the custodian of county property and is therefore authorized to determine how county property shall be used; moreover, §§ 14-14-802(b)(2)(C)(v) and 13-5-501 et seq. authorize the County to provide for a county museum. Haynes v. Faulkner County, 326 Ark. 557, 932 S.W.2d 328 (1996).

Expenditures.

By electing to appeal chancellor's award of a monetary judgment, the county judge was attempting to ensure that the requirements of this section that the expenses had been incurred in a lawful manner and that payment was owed by the county were met. Venhaus v. Pulaski County Quorum Court, 291 Ark. 558, 726 S.W.2d 668 (1987).

Summary judgment for gas company in its declaratory action was proper because the county's grant of a pipeline easement to manufacturer was null and void due to the county's failure to follow the appraisal, notice, and bidding procedures required in § 14-16-105; § 14-16-105 provides the “manner and procedure” for the conveyance of the pipeline easement and this section, which pertains to the use of county property, does not allow the county judge to forego the procedures set out in § 14-16-105. MacSteel Div. of Quanex v. Ark. Okla. Gas Corp., 363 Ark. 22, 210 S.W.3d 878 (2005).

Unlawful Activities.

A trial court properly prohibited a county judge from leasing county property to private interests and from contracting to use county property and employees to perform services for, and supply materials to, private interests, since such activities by the county judge would violate Ark. Const., Art. 16, § 13, and Ark. Const., Art. 12, § 5. Pogue v. Cooper, 284 Ark. 105, 679 S.W.2d 207 (1984).

Cited: Mears v. Hall, 263 Ark. 827, 569 S.W.2d 91 (1978).

14-14-1103. Other county officials.

Executive powers and duties of all county officials other than the county judge comprising the executive division of the county government shall be those established by the Arkansas Constitution and by law.

History. Acts 1977, No. 742, § 78; 1979, No. 98, § 1; 1979, No. 413, §§ 16, 17; A.S.A. 1947, § 17-3901.

Case Notes

Cited: Mears v. Hall, 263 Ark. 827, 569 S.W.2d 91 (1978).

14-14-1104. Administrative rules and regulations.

    1. The county judge may promulgate reasonable and necessary administrative rules and regulations, after notice and hearing thereon, for the administration and conduct of the various laws and programs to be administered by the judge in his or her capacity as the chief executive officer of the county.
    2. These administrative rules and regulations shall be consistent with the state laws relating to the administration of county affairs by the county judge and the appropriate ordinances enacted by the quorum court.
  1. The administrative rules and regulations promulgated by the county judge in the performance of his or her executive functions shall not be applicable to the conduct of county business which is within the jurisdiction of the county court.

History. Acts 1977, No. 742, § 79; A.S.A. 1947, § 17-3902.

14-14-1105. Jurisdiction of county court.

  1. The General Assembly determines that all powers not vested in the county judge under the provisions of Arkansas Constitution, Amendment 55, to be exercised by the county judge as the chief executive officer of the county, shall continue to be exercised and administered by the county court, over which the judge shall preside.
  2. The county court of each county shall have exclusive original jurisdiction in all matters relating to:
    1. County Taxes. Jurisdiction shall include all real and personal ad valorem taxes collected by a county government, including all related administrative processes, assessment of property, equalization of assessments on appeal, tax levies, tax collection, and distribution of tax proceeds. This jurisdiction shall be exercised pursuant to law;
    2. Paupers. Jurisdiction shall include all county administrative actions affecting the conduct of public human services programs serving indigent residents of the county where such services are financed, in total or in part, by county funds;
    3. Apprenticeship of Minors. Jurisdiction over juvenile matters is vested in the county courts of each county and shall be exclusive in all cases of delinquency, juveniles in need of supervision, and dependency-neglect;
    4. Jurisdiction in Each Other Case that May Be Necessary to the Internal Improvement and Local Concern of the Respective Counties. Jurisdiction shall include county financial activities and works of general public utility or advantage designed to promote intercommunications, trade and commerce, transportation of persons and property, or the development of natural resources, which are not otherwise transferred to the county judge to be administered in his or her executive capacity under the provision of Arkansas Constitution, Amendment 55; and
    5. Other Jurisdiction. The county court shall have all other jurisdiction vested by law in the county court, excepting with respect to those powers formerly vested in the county court under the provisions of Arkansas Constitution, Article 7, § 28, which were transferred to the county judge under the provisions of Arkansas Constitution, Amendment 55, § 3.

History. Acts 1977, No. 742, § 80; 1979, No. 413, § 18; A.S.A. 1947, § 17-3903; Acts 1993, No. 403, § 4.

Case Notes

County Taxes.

It is settled law that county courts have exclusive jurisdiction in all matters relating to county taxes under Ark. Const., Art. 7, § 28 and this section; however, a court of equity may grant relief against a void or illegal tax assessment. Pockrus v. Bella Vista Village Property Owners Ass'n, 316 Ark. 468, 872 S.W.2d 416 (1994).

Although illegal taxes can be enjoined by a court of equity, if the taxes complained of are not themselves illegal, a suit for illegal exaction will not lie in chancery court; a flaw in the assessment of collection procedure, no matter how serious from the taxpayer's point of view, does not make the exaction itself illegal, and any relief from such county taxes must be sought in county court. Pockrus v. Bella Vista Village Property Owners Ass'n, 316 Ark. 468, 872 S.W.2d 416 (1994).

The county court, and not the circuit court, had jurisdiction over a matter pertaining to the assessment of a penalty resulting from the delinquent payment of county taxes. Villines v. Pulaski County Bd. of Educ., 341 Ark. 125, 14 S.W.3d 510 (2000).

Circuit court was without jurisdiction and the claim against the county, tax assessor, city, and school district should have been filed in county court, pursuant to Ark. Const., Art. 7, § 28, because the taxpayers alleged that an erroneous assessment occurred for which they sought a refund of property taxes. Muldoon v. Martin, 103 Ark. App. 64, 286 S.W.3d 201 (2008).

Arkansas Supreme Court lacked jurisdiction to consider the appeal from the circuit court, because the circuit court lacked jurisdiction to dismiss the complaint for failure to state a cause of action, when appellants' complaint challenged how the county was distributing the proceeds collected from the library tax, and such a challenge to the distribution of the tax proceeds should have been raised in county court pursuant to Ark. Const. Art. 7, § 28 and subdivision (b)(1) of this section; it was undisputed that the case dealt with a county ad valorem tax. Carnegie Pub. Library v. Carroll County, 2012 Ark. 128 (2012).

14-14-1106. Appeals from administrative acts.

Appeals by any aggrieved party from any administrative act performed, or from the nonperformance of any administrative act required by law to be performed, by the county judge acting in his or her capacity as the chief executive officer of the county, or any other elected county official, may be taken to the court of competent jurisdiction in the manner provided by law.

History. Acts 1977, No. 742, § 83; A.S.A. 1947, § 17-3906.

Case Notes

Cited: Mears v. Hall, 263 Ark. 827, 569 S.W.2d 91 (1978); Union County v. Union County Election Comm'n, 274 Ark. 286, 623 S.W.2d 827 (1981).

14-14-1107. Natural disasters.

In any county in which a natural disaster, including but not limited to a tornado or flood, results in the county being declared a disaster area by the Governor, an appropriate official of the United States Government, or the county judge of the county, the county judge is authorized to use county labor and equipment on private property to provide services which are required as a result of the natural disaster.

History. Acts 1997, No. 394, § 1.

Subchapter 12 — Personnel Procedures

Effective Dates. Acts 1977, No. 742, § 118: Mar. 24, 1977. Emergency clause provided: “It is hereby found by the General Assembly that the passage of Amendment 55 to the Arkansas Constitution has caused major changes in the structure of county governments and that, because of said changes, a need exists to modernize laws affecting county government. It is further found that the citizens of the several counties of the State are in need of services provided by county governments and said services can best be provided under the provisions of this Act. Therefore, an emergency is hereby declared to exist and this Act, being necessary for the public health, welfare and safety, shall be in effect from and after its passage and approval.”

Acts 1979, No. 151, §§ 4, 5: effective retroactive to Jan. 1, 1979. Emergency clause provided: “It is hereby found and determined by the General Assembly that the present law establishing maximum and minimum salaries for elected county officers is unduly restrictive and in many cases denied certain officers reasonable compensation for their services; and that this Act is designed to alleviate this problem. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.” Approved February 20, 1979.

Acts 1981, No. 806, § 4: Mar. 28, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that the ranges of compensation now provided by law for the various county officials are inadequate to permit reasonable and equitable compensation to such officials for their services; that this Act is designed to permit the compensation of such officers to be increased to a fair level and to enable such officers to cope with the high rate of inflation, and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1983, No. 446, § 4: Mar. 14, 1983. Emergency clause provided: “It is hereby found and determined by the General Assembly that the ranges of compensation now provided by law for the various county officials are inadequate to permit reasonable and equitable compensation to such officials for their services; that this Act is designed to permit the compensation of such officers to be increased to a fair level and to enable such officers to cope with the high rate of inflation, and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1985, No. 104, § 4: Feb. 12, 1985. Emergency clause provided: “It is hereby found and determined by the General Assembly that County Sheriffs and the employees of the Sheriff's departments wear uniforms in the preservation of the public peace, health and safety and that requiring an itemized listing or numbered invoice for payment of a uniform allowance imposes a severe hardship on Sheriffs and the Sheriff's departments. Therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1985, No. 398, § 4: Mar. 18, 1985. Emergency clause provided: “It is hereby found and determined by the General Assembly that the ranges of compensation now provided by law for the various county officials are inadequate to permit reasonable and equitable compensation to such officials for their services; that this Act is designed to permit the compensation of such officers to be increased to a fair level and to enable such officers to cope with the high rate of inflation, and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1989, No. 694, § 5: Mar. 20, 1989. Emergency clause provided: “It is hereby found and determined by the General Assembly that the ranges of compensation now provided by law for the various county officials are inadequate to permit reasonable and equitable compensation to such officials for their services; that this act is designed to permit the compensation of such officers to be increased to a fair level and to enable such officers to cope with the high rate of inflation, and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1991, No. 1161, § 5: Apr. 10, 1991. Emergency clause provided: “It is hereby found and determined by the General Assembly that the ranges of compensation now provided by law for the various county officials are inadequate to permit reasonable and equitable compensation to such officials for their services; that this act is designed to permit the compensation of such officers to be increased to a fair level and to enable such officers to cope with the high rate of inflation, and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1993, No. 954, § 6: Apr. 8, 1993. Emergency clause provided: “It is hereby found and determined by the General Assembly that the ranges of compensation now provided by law for the various county officials are inadequate to permit reasonable and equitable compensation to such officials for their services; that this act is designed to permit the compensation of such officers to be increased to a fair level and to enable such officers to cope with the high rate of inflation, and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 2009, No. 616, § 3: July 1, 2009. Emergency clause provided: “It is found and determined by the General Assembly that the provisions of this act change the calculation of compensation for retirement purposes and should become effective on July 1, 2009, for consistent application and to avoid confusion; and that unless this emergency clause is adopted, this act will not go into effect until after the beginning of the next fiscal year. Therefore, an emergency is hereby declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall be in full force and effect from and after July 1, 2009.”

14-14-1201. Surety bond for certain county and township officers and employees.

  1. Surety Bond Required. All elected or appointed county and township officers, and employees thereof, who receipt for cash funds or disburse public funds of a county by virtue of their office or employment shall obtain a surety bond.
  2. Amount of Bond.
    1. The amount for which a county or township officer or employee shall be bonded shall be based on the amount of money or property handled and the opportunity for defalcation. These amounts shall be fixed annually by ordinance of the quorum court of each county based on the total cash receipts and disbursements of the office for the preceding calendar year.
      1. These surety bonds shall be initiated in minimum amounts computed as follows:
        1. On the first one hundred thousand dollars ($100,000), or any part thereof, of receipts or disbursements of the office, ten percent (10%) of the amount;
        2. On the next two hundred thousand dollars ($200,000), or any part thereof, of receipts or disbursements of the office, seven and one-half percent (7½%) of the amount;
        3. On the next two hundred thousand dollars ($200,000), or any part thereof, of receipts or disbursements of the office, five percent (5%) of the amount;
        4. On the next five hundred thousand dollars ($500,000), or any part thereof, of the amount, two and one-half percent (2½%); and
        5. On all amounts in excess of one million dollars ($1,000,000), one percent (1%) of the amount.
      2. The maximum amount of any bond required of any elected officer or employee thereof shall not exceed five hundred thousand dollars ($500,000).
  3. Authorized Bonding Companies. Bonds purchased by a county government shall be executed by responsible insurance or surety companies authorized and admitted to execute surety bonds in the state.
  4. Conditions of Sureties. The condition of every official bond must be that the covered officers and employees shall perform all official duties required of them by law and also such additional duties as may be imposed on them by any law subsequently enacted, and that they will account for and pay over and deliver to the person or officer entitled to receive the same all moneys or other property that may come into their hands as such officers or employees. The sureties upon any official bond are also in all cases liable for the neglect, default, or misconduct in office of any deputy, clerk, or employee, appointed or employed by an officer or employee of county government.
  5. Purchase of Bonds. The county judge of each county shall purchase all surety bonds for county and township officers, and employees thereof, in the amounts fixed by ordinance of the county quorum court pursuant to the purchasing laws governing county government. A bond may cover an individual officer or employee, or a blanket bond may cover all officers and employees, or any group or combination of officers and employees.
  6. Appropriation of Bond Premiums. The quorum court of each county shall provide for by appropriation the payment of premiums for surety bonds of all county and township officers, and employees thereof.
  7. Approval and Filing of Bonds. All official bonds must be signed and executed by the county court of each county and one (1) or more surety companies organized under the laws of this state or licensed to do business in this state. The original of each such executed bond, as required in this section, shall be filed in the office of county clerk.

History. Acts 1977, No. 742, § 113; A.S.A. 1947, § 17-4206.

Cross References. Self-Insured Fidelity Bond Program,, § 21-2-701 et seq.

Case Notes

Actions on Bonds.

The state may bring an action on a county officer's bond for the amount of the officer's defalcation. State ex rel. Benton County v. Wood, 51 Ark. 205, 10 S.W. 624 (1889) (decision under prior law).

Suit cannot be brought on a county officer's bond until the amount due has been determined by a court. Graham v. State, 100 Ark. 571, 140 S.W. 735 (1911) (decision under prior law).

Attorney's Fees.

For an indemnity agreement contained in bond executed to state to indemnify sheriff to include attorney's fees and to be recoverable by the indemnitee, the attorney's fees had to be reasonable, proper, necessary, and incurred in good faith and with due diligence; were factual questions to be determined by the trier of fact; and when properly placed in dispute, were not matters to be disposed of on motion for summary judgment. United States Fid. & Guar. Co. v. Love, 260 Ark. 374, 538 S.W.2d 558 (1976) (decision under prior law).

Conditions of Sureties.

A county officer's bond that obligates the officer and his sureties that he will truly account for and pay over all moneys that come to his hands by virtue of his office is valid, although it names no obligee. State ex rel. Benton County v. Wood, 51 Ark. 205, 10 S.W. 624 (1889) (decision under prior law).

The failure of a county treasurer to bring funds into court when ordered constituted a breach of his bond, although the funds could have been lost by the insolvency of the bank in which they were deposited. State ex rel. Benton County v. Wood, 51 Ark. 205, 10 S.W. 624 (1889) (decision under prior law).

Liability of Sureties.

It is in the discretion of a court, upon a proper showing by a surety on an official bond of a county officer, to require the officer to give a new bond and discharge the surety from future liability; however, the court has no power to discharge the surety from past liability. Ex parte Talbot, 32 Ark. 424 (1877) (decision under prior law).

The amount for which the bond for a county officer is liable is the amount fixed by a court, with legal interest from the date of auditing. State ex rel. Benton County v. Wood, 51 Ark. 205, 10 S.W. 624 (1889) (decision under prior law).

The General Assembly may release an officer and bondsmen from liability for a claim legally due, but which would be unjust and oppressive to collect. Pearson v. State, 56 Ark. 148, 19 S.W. 499 (1892) (decision under prior law).

Sureties on bond approved by circuit judge in vacation were not liable for any funds that came into a treasurer's hands after rejection of the bond by the circuit court and the expiration of 15 days thereafter within which the treasurer failed to file new bond. Wood v. State, 63 Ark. 337, 40 S.W. 87 (1897) (decision under prior law).

Sureties on an officer's bond are not liable for penalties imposed by a statute passed after the execution of the bond. Hunter State Bank v. Mills, 90 Ark. 10, 117 S.W. 760 (1909) (decision under prior law).

A county treasurer depositing county funds in a bank that had not executed a bond payable to the county as required by statute was not relieved from liability on his official bond on the bank's insolvency, although the treasurer took a bond from the bank payable to himself to secure his deposits, which bond was approved by the county court. Huffstuttler v. State, 183 Ark. 993, 39 S.W.2d 721 (1931) (decision under prior law).

A surety is not liable for punitive damages assessed against county officer. Arnold v. State ex rel. Burton, 220 Ark. 25, 245 S.W.2d 818 (1952) (decision under prior law).

Cited: Wilson v. Robinson, 506 F. Supp. 1236 (E.D. Ark. 1981).

14-14-1202. Ethics for county government officers and employees.

  1. Public Trust.
    1. The holding of public office or employment is a public trust created by the confidence which the electorate reposes in the integrity of officers and employees of county government.
    2. An officer or employee shall carry out all duties assigned by law for the benefit of the people of the county.
    3. The officer or employee may not use his or her office, the influence created by his or her official position, or information gained by virtue of his or her position to advance his or her individual personal economic interest or that of an immediate member of his or her family or an associate, other than advancing strictly incidental benefits as may accrue to any of them from the enactment or administration of law affecting the public generally.
  2. Officers and Employees of County Government Defined.
    1. For purposes of this section, officers and employees of county government include:
      1. All elected county and township officers and their employees;
      2. All district judicial officers serving a county and their employees; and
      3. All members of county boards and advisory, administrative, or subordinate service districts and their employees.
    2. Officials who are considered to be state officers or deputy prosecuting attorneys are not covered by this subsection.
  3. Rules of Conduct.
    1. No officer or employee of county government shall:
        1. Be interested, either directly or indirectly, in any contract or transaction made, authorized, or entered into on behalf of the county or an entity created by the county, or accept or receive any property, money, or other valuable thing for his or her use or benefit on account of, connected with, or growing out of any contract or transaction of a county.
          1. If in the purchase of any materials, supplies, equipment, or machinery for the county, any discounts, credits, or allowances are given or allowed, they shall be for the benefit of the county.
          2. It shall be unlawful for any officer or employee to accept or retain them for his or her own use or benefit;
      1. Be a purchaser at any sale or a vendor of any purchase made by him or her in his or her official capacity;
      2. Acquire an interest in any business or undertaking which he or she has reason to believe may be directly affected to its economic benefit by official action to be taken by county government;
        1. Perform an official act directly affecting a business or other undertaking to its economic detriment when he or she has a substantial financial interest in a competing firm or undertaking.
        2. Substantial financial interest is defined for purposes of this section as provided in Acts 1971, No. 313, § 7 [repealed].
        1. If the quorum court determines it is in the best interest of the county, the quorum court by ordinance upon a two-thirds (2/3) vote may permit the county to purchase goods, services, commodities, or real property directly or indirectly from a quorum court member, a county officer, or a county employee due to unusual circumstances.
        2. The ordinance permitting the purchase shall define specifically the unusual circumstances under which the purchase is permitted and the limitations of the authority.
      1. A quorum court member having an interest in the goods, services, commodities, or real property being considered under the procedures in this subdivision (c)(2) shall not vote upon the approval of the ordinance permitting the purchase of the goods, services, commodities, or real property.
      2. If goods, services, commodities, or real property are purchased under the procedures in this subdivision (c)(2), the county judge shall file an affidavit, together with a copy of the voucher and other documents supporting the disbursement, with the county clerk certifying that each disbursement has been made in accordance with the ordinance.
      1. No person shall simultaneously hold office and serve as an elected county justice of the peace and hold office and serve as an elected city council member.
      2. This subdivision (c)(3) shall not cut short the term of any office holder serving as such on September 1, 2005, but shall be implemented during the next election cycle of each office.
  4. Removal from Office or Employment.
    1. Court of Jurisdiction. Any citizen of a county or the prosecuting attorney of a county may bring an action in the circuit court in which the county government is located to remove from office any officer or employee who has violated the rules of conduct set forth in this section.
    2. Suspension Prior to Final Judgment.
      1. Pending final judgment, an officer or employee who has been charged as provided in this section may be suspended from his or her office or position of employment without pay.
      2. Suspension of any officer or employee pending final judgment shall be upon order of the circuit court or judge thereof in vacation.
    3. Punishment.
      1. Judgment upon conviction for violation of the rules of conduct set forth in this section shall be deemed a misdemeanor.
      2. Punishment shall be by a fine of not less than three hundred dollars ($300) nor more than one thousand dollars ($1,000), and the officer or employee shall be removed from office or employment of the county.
    4. Acquittal. Upon acquittal, an officer or employee shall be reinstated in his or her office or position of employment and shall receive all back pay.
    5. Legal Fees.
      1. Any officer or employee charged as provided in this section and subsequently acquitted shall be awarded reasonable legal fees incurred in his or her defense.
        1. Reasonable legal fees shall be determined by the circuit court or the Supreme Court on appeal.
        2. Such legal fees shall be ordered paid out of the general fund of the county treasury.

History. Acts 1977, No. 742, § 115; A.S.A. 1947, § 17-4208; Acts 1987, No. 930, § 1; 1989, No. 352, § 1; 1989, No. 681, § 1; 2005, No. 1924, § 1; 2017, No. 193, § 1; 2019, No. 383, § 3.

Amendments. The 2017 amendment rewrote (c)(2).

The 2019 amendment deleted “shall” following “government” in the introductory language of (b)(1); redesignated (b)(1)(A)(i), (b)(1)(A)(ii), and (b)(1)(A)(iii) as (b)(1)(A), (b)(1)(B), and (b)(1)(C); added “and their employees” in (b)(1)(A), (b)(1)(B), and (b)(1)(C); substituted “boards and advisory” for “boards, advisory” in (b)(1)(C); and deleted former (b)(1)(B).

Case Notes

Constable.

A constable is an official of the county and thus covered by workers' compensation. Farnsworth v. White County, 312 Ark. 574, 851 S.W.2d 451 (1993).

Cited: Hester v. Langston, 297 Ark. 87, 759 S.W.2d 797 (1988); Farnsworth v. White County, 39 Ark. App. 98, 839 S.W.2d 229 (1992); Post v. Harper, 980 F.2d 491 (8th Cir. 1992).

14-14-1203. Compensation and expense reimbursements generally.

  1. Appropriation Required. All compensation, including salary, hourly compensation, expense allowances, training expenses, and other remunerations, allowed to any county officer, district officer, county officer-elect, district officer-elect, or employee is made only on specific appropriation by the quorum court of the county.
  2. Payments on Claims Approved by the County Judge. All compensation, including salary, hourly compensation, expense allowances, training expenses, and other remuneration, allowed to any county officer, district officer, county officer-elect, district officer-elect, or employee is made only upon claim or voucher presented to the county judge and approved by him or her in the manner prescribed by law for disbursement of county funds.
  3. Expense Reimbursement.
    1. Except as provided under subdivision (c)(2) of this section, all expense allowances, training expenses, and remunerations other than salary provided in this subchapter shall be made only upon voucher or claim itemizing the allowances or expenses, prepared in the manner prescribed by law, and presented to and approved by the county judge in the manner prescribed by law for the disbursement of county funds.
    2. County officials may make cash advances for travel-related expenses to employees, subject to rules adopted by the Legislative Joint Auditing Committee.
  4. Decreases in Salary. Any decrease in the annual salary or compensation of a county officer shall not become effective until January 1 following a general election held after the decrease has been fixed by the quorum court of the county.
  5. Enterprise Accounts Prohibited. An elected county or district officer or employee of the county or district shall not individually maintain or operate an account for financing self-supporting activities that render services on a user charge basis to the general public.

History. Acts 1977, No. 742, § 112; 1983, No. 233, § 1; A.S.A. 1947, § 17-4205; Acts 2011, No. 614, § 1; 2015, No. 279, § 1.

Amendments. The 2011 amendment inserted “training expenses” in (a), (b) and (c)(1); substituted “district” for “township” in (a), (b) and (e); inserted “or her” in (b); inserted “Except as provided under subdivision (c)(2) of this section” in (c)(1); and added (c)(2).

The 2015 amendment, in (a) and (b), substituted “county officer, district officer, county officer-elect, district officer-elect, or employee is” for “county or district officer or employee thereof shall be.”

Case Notes

Eligibility for Retirement System.

Substantial evidence supported the finding of the Board of Trustees of the Arkansas Public Employees' Retirement System that former employees of nursing homes owned by counties were not “county employees” under the relevant statutes and were not eligible for membership in the retirement system because their compensation was payable from patient revenues rather than from appropriated funds. Bd. of Trs. of the Ark. Pub. Emples. Ret. Sys. v. Garrison, 2019 Ark. App. 245, 576 S.W.3d 485 (2019).

Assuming that the nursing-home administrative boards and their respective counties were synonymous under the definitions of “County employees” and “Employees” in § 24-4-101, the Board of Trustees of the Arkansas Public Employees' Retirement System's finding that the former employees of county-owned nursing homes were not paid from appropriated funds as required by the definition of “Employees” in § 24-4-101 was affirmed as no ordinances in the record specifically designated county money for their compensation. Bd. of Trs. of the Ark. Pub. Emples. Ret. Sys. v. Garrison, 2019 Ark. App. 245, 576 S.W.3d 485 (2019).

14-14-1204. Compensation of elected county officers.

    1. The quorum court of each county shall fix by ordinance the annual salaries of the following county officers within the minimums and maximums provided in this section:
      1. The county judge;
      2. The sheriff and ex officio collector of taxes;
      3. The collector of taxes, where established by law;
      4. The circuit clerk;
      5. The county clerk, where established by law;
      6. The assessor;
      7. The treasurer;
      8. The coroner; and
      9. The surveyor.
    2. The minimum and maximum salaries under this section do not include any county-provided insurance benefits or other county benefits required by federal or state law, rule, or regulation.
  1. For purposes of determining the salaries of the elected county officers, unless otherwise specifically provided in this section, the counties shall be classified on the basis of population, as determined by the preceding federal decennial census, according to the following classifications:
    1. The annual salary of a county judge shall be in compensation for his or her services as the executive and administrator for the county, as judge of the county court, as presiding officer of the quorum court, and for all other services performed as provided by the Arkansas Constitution, by law, or by county ordinance.
    2. The minimum and maximum salaries per annum of the county judge of a county shall be as follows:
      1. The annual salary of a sheriff shall be compensation for services as a law enforcement officer, as the supervisor of the county jail, as custodian of persons accused or convicted of crimes, as an officer of the circuit court or county court, as the ex officio county tax collector and delinquent tax collector in those counties where that office is combined with the office of sheriff, and for all other services performed as provided by the Arkansas Constitution, by law, or by county ordinance.
      2. In any county in which the offices of sheriff and collector are combined into a single office, the maximum and minimum salaries for that office in the appropriate county classification shall be increased by the following amounts:
    1. The minimum and maximum salaries per annum of the sheriff of a county shall be as follows:
    1. In those counties where the office of county tax collector has been separated from the office of sheriff, the annual salary of a county tax collector shall be in compensation for services as tax collector and delinquent tax collector and for all other services performed as provided by the Arkansas Constitution, by law, or by county ordinance.
    2. The minimum and maximum salaries per annum of the county tax collector in those counties where the office has been separated from the office of sheriff shall be as follows:
      1. The annual salary of a county and probate clerk shall be in compensation for his or her services as county clerk, probate clerk, clerk of the county court, clerk of the quorum court, registrar of voters, and for all other services performed as provided by the Arkansas Constitution, by law, or by county ordinance.
      2. In those counties where the office of county and probate clerk is combined with the office of circuit clerk and ex officio recorder, the salary shall be as provided in this section.
      3. In those counties where the office of county and probate clerk is combined with the office of circuit clerk and ex officio recorder, the minimum and maximum salaries for that office in the appropriate county classification shall be increased by the following amounts:
    1. The minimum and maximum salaries per annum of the county and probate clerk of a county shall be as follows:
      1. The annual salary of a circuit clerk and ex officio recorder shall be in compensation for his or her services as clerk of the circuit court, as ex officio recorder, and for all other services performed as provided by the Arkansas Constitution, by law, or by county ordinance.
      2. In those counties where the office of circuit clerk and ex officio recorder is combined with the office of county and probate clerk, the minimum and maximum salaries for that office in the appropriate county classification shall be increased by the following amounts:
    1. The minimum and maximum salaries per annum of the circuit clerk and ex officio recorder of a county shall be as follows:
      1. The annual salary of a county assessor shall be in compensation for all services performed as county assessor, appraiser, and as provided by the Arkansas Constitution, by law, or by county ordinance.
      2. In any county in which the offices of assessor and collector are combined into a single office, the maximum and minimum salaries of the county assessor and collector in the appropriate county classification shall be increased by the following amounts:
    1. The minimum and maximum salaries per annum of the county assessor of a county shall be as follows:
      1. The annual salary of a county treasurer shall be in compensation for all services performed as provided by the Arkansas Constitution, by law, or by county ordinance.
      2. In any county in which the offices of treasurer and collector are combined into a single office, the maximum and minimum salaries of the county treasurer and collector in the appropriate county classification shall be increased by the following amounts:
    1. The minimum and maximum salaries per annum for the county treasurer of a county shall be as follows:
    1. The compensation of a county coroner shall be for all services performed as provided by the Arkansas Constitution, by law, or by county ordinance.
    2. The minimum and maximum salaries per annum of the county coroner of a county shall be as follows:
  2. Compensation of the county surveyor shall be fixed by the quorum court.

Classification Population Class 1 0 to 9,999 Class 2 10,000 to 19,999 Class 3 20,000 to 29,999 Class 4 30,000 to 49,999 Class 5 50,000 to 69,999 Class 6 70,000 to 199,999 Class 7 200,000 and above

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Classification Salary per Annum Class 1 not less than $30,000 nor more than $74,640 Class 2 not less than $31,000 nor more than $76,095 Class 3 not less than $32,000 nor more than $77,550 Class 4 not less than $33,000 nor more than $79,005 Class 5 not less than $34,000 nor more than $80,459 Class 6 not less than $35,000 nor more than $86,278 Class 7 not less than $36,000 nor more than $99,223

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Classification Additional Salary Class 1 $1,500 Class 2 $1,500 Class 3 $2,500 Class 4 $2,500 Class 5 $3,000 Class 6 $3,000 Class 7 $4,000

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Classification Salary per Annum Class 1 not less than $30,000 nor more than $74,640 Class 2 not less than $31,000 nor more than $76,095 Class 3 not less than $32,000 nor more than $77,550 Class 4 not less than $33,000 nor more than $79,005 Class 5 not less than $34,000 nor more than $80,459 Class 6 not less than $35,000 nor more than $86,278 Class 7 not less than $36,000 nor more than $99,223

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Classification Salary per Annum Class 1 not less than $27,000 nor more than $70,276 Class 2 not less than $28,000 nor more than $71,731 Class 3 not less than $29,000 nor more than $73,186 Class 4 not less than $30,000 nor more than $74,640 Class 5 not less than $31,000 nor more than $76,095 Class 6 not less than $32,000 nor more than $80,459 Class 7 not less than $33,000 nor more than $93,404

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Classification Additional Salary Class 1 $1,500 Class 2 $1,500 Class 3 $2,500 Class 4 $2,500 Class 5 $3,000 Class 6 $3,000 Class 7 $4,000

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Classification Salary per Annum Class 1 not less than $27,000 nor more than $70,276 Class 2 not less than $28,000 nor more than $71,731 Class 3 not less than $29,000 nor more than $73,186 Class 4 not less than $30,000 nor more than $74,640 Class 5 not less than $31,000 nor more than $76,095 Class 6 not less than $32,000 nor more than $80,459 Class 7 not less than $33,000 nor more than $93,404

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Classification Additional Salary Class 1 $1,500 Class 2 $1,500 Class 3 $2,500 Class 4 $2,500 Class 5 $3,000 Class 6 $3,000 Class 7 $4,000

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Classification Salary per Annum Class 1 not less than $27,000 nor more than $70,276 Class 2 not less than $28,000 nor more than $71,731 Class 3 not less than $29,000 nor more than $73,186 Class 4 not less than $30,000 nor more than $74,640 Class 5 not less than $31,000 nor more than $76,095 Class 6 not less than $32,000 nor more than $80,459 Class 7 not less than $33,000 nor more than $93,404

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Classification Additional Salary Class 1 $1,500 Class 2 $1,500 Class 3 $2,500 Class 4 $2,500 Class 5 $3,000 Class 6 $3,000 Class 7 $4,000

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Classification Salary per Annum Class 1 not less than $27,000 nor more than $70,276 Class 2 not less than $28,000 nor more than $71,731 Class 3 not less than $29,000 nor more than $73,186 Class 4 not less than $30,000 nor more than $74,640 Class 5 not less than $31,000 nor more than $76,095 Class 6 not less than $32,000 nor more than $80,459 Class 7 not less than $33,000 nor more than $93,404

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Classification Additional Salary Class 1 $1,500 Class 2 $1,500 Class 3 $2,500 Class 4 $2,500 Class 5 $3,000 Class 6 $3,000 Class 7 $4,000

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Classification Salary per Annum Class 1 not less than $27,000 nor more than $70,276 Class 2 not less than $28,000 nor more than $71,731 Class 3 not less than $29,000 nor more than $73,186 Class 4 not less than $30,000 nor more than $74,640 Class 5 not less than $31,000 nor more than $76,095 Class 6 not less than $32,000 nor more than $80,459 Class 7 not less than $33,000 nor more than $93,404

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Classification Salary per Annum Class 1 not less than $3,802 nor more than $12,990 Class 2 not less than $4,302 nor more than $13,990 Class 3 not less than $4,803 nor more than $16,990 Class 4 not less than $5,303 nor more than $30,990 Class 5 not less than $5,800 nor more than $40,900 Class 6 not less than $6,300 nor more than $48,990 Class 7 not less than $33,000 nor more than $93,404

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History. Acts 1977, No. 742, § 108; 1979, No. 151, § 1; 1981, No. 806, § 1; 1983, No. 446, § 1; 1985, No. 398, § 1; A.S.A. 1947, § 17-4201; Acts 1989, No. 694, § 1; 1991, No. 1161, § 1; 1993, No. 954, § 1; 1995, No. 661, § 1; 1997, No. 759, § 1; 1999, No. 1424, § 1; 2001, No. 1170, § 1; 2003, No. 109, § 1; 2005, No. 1214, § 1; 2007, No. 526, § 1; 2009, No. 320, § 1; 2017, No. 260, § 2; 2019, No. 400, § 1.

Amendments. The 2009 amendment rewrote the salary per annum amounts throughout the section and (d)(1)(B), (f)(1)(C), (g)(1)(B), (h)(1)(B), and (i)(1)(B).

The 2017 amendment deleted “as judge of the court of common pleas, where established” following “county court” in (c)(1).

The 2019 amendment redesignated (a) as (a)(1) and redesignated the remaining subdivisions in (a) accordingly; and added (a)(2).

Cross References. County judge's salary, § 14-14-811.

Research References

U. Ark. Little Rock L.J.

Survey of Arkansas Law, Public Law, 1 U. Ark. Little Rock L.J. 230.

Case Notes

County Assessors.

A county court did not have the power to disallow a portion of the monthly salary claim of a deputy tax assessor, such salary allowance for the deputy being mandatory on the county court, and the court had no power to disallow any salary claims on the ground of no service rendered during a specified month. Cowling v. Howard County, 228 Ark. 1047, 312 S.W.2d 186 (1958) (decision under prior law).

A county assessor was merely a county officer, his salary may have been fixed by county under initiative and referendum amendment, and money paid by the state as half of the assessor's salary was not over and above the amount provided by the initiated act. Dew v. Ashley County, 199 Ark. 361, 133 S.W.2d 652 (1939) (decision under prior law).

County Clerks.

School district was not required to reimburse a county for overtime pay provided by the county to the county clerk for work related to a school district election because the clerk was not entitled to overtime pay, since (1) a contract to pay an officer more or less compensation than that fixed by law was contrary to public policy and void; (2) although this section provided ranges for the salaries of elected county officers such as the clerk, it still instructed that, pursuant to those ranges, the annual salaries were to be fixed by ordinance; and (3) overtime pay to the county clerk was not an appropriate election expense pursuant to § 6-14-118, as given the history of this statute, it was clear that the legislature did not anticipate overtime pay of elected county officials when it created a law requiring school districts to pay for election expenses. Helena-West Helena Sch. Dist. v. Fluker, 371 Ark. 574, 268 S.W.3d 879 (2007).

Sheriffs.

A sheriff was entitled to appoint a deputy to work with Junior Deputy Sheriffs League if the quorum court made an appropriation to pay the salary of the deputy, and the county court was required to allow deputy's claim for salary. Parker v. Adkins, 223 Ark. 455, 266 S.W.2d 799 (1954) (decision under prior law).

14-14-1205. Compensation of township officers.

      1. The per diem compensation for justices of the peace attending any official, regular, special, or committee meeting of a quorum court shall be fixed by ordinance in each county.
      2. The per diem compensation of justices shall not be less than one hundred twenty-five dollars ($125) per diem for each regular meeting nor exceed:
        1. Eight thousand seven hundred thirty-four dollars ($8,734) per calendar year in counties having a population of less than seventy thousand (70,000);
        2. Ten thousand three hundred seventy-six dollars ($10,376) per calendar year in counties having a population of at least seventy thousand (70,000) and less than two hundred thousand (200,000); and
        3. Thirteen thousand three hundred nineteen dollars ($13,319) per calendar year in counties having a population of two hundred thousand (200,000) or more.
    1. Per Diem Compensation Defined.
      1. Per diem compensation is defined as a per calendar day allowance, exclusive of allowable expenses, which shall be paid to a justice for attending meetings of the county quorum court. This compensation shall be based on attending meetings of a quorum court during any single calendar day without regard to the duration of the meetings.
      2. However, a member of the quorum court may receive per diem compensation for one (1) meeting per year for which the member is absent due to an emergency or for personal reasons.
    2. In addition to any other compensation expense reimbursement or expense allowances provided members of the quorum court, counties may provide medical insurance coverage or other insurance benefits for members of the quorum court.
  1. Justices of the Peace Serving in Judicial Capacity. The compensation of all justices of the peace serving in a judicial capacity shall be fixed by ordinance of the quorum court in each county. This basis of compensation shall not be computed on a percentage of the dollar amount of fines levied by a justice of the peace.
  2. Justice of the Peace as County Employee or Deputy. A justice of the peace shall not receive compensation as a county employee or deputy, nor shall any justice receive compensation or expenses from funds appropriated by the quorum court for any services performed within the county, other than as provided by this subchapter.
  3. Constables. The compensation of all constables serving in any official capacity established by law may be fixed by ordinance of the quorum court in each county.

History. Acts 1977, No. 742, § 109; 1979, No. 151, § 2; 1981, No. 806, § 2; 1983, No. 446, § 2; 1985, No. 398, § 2; A.S.A. 1947, § 17-4202; Acts 1989, No. 694, § 2; 1993, No. 954, § 2; 1995, No. 661, § 2; 1995, No. 1296, § 46; 1997, No. 363, § 1; 1997, No. 759, § 2; 1999, No. 749, § 1; 2001, No. 1170, § 2; 2003, No. 109, § 2; 2005, No. 1214, § 2; 2007, No. 526, § 2; 2009, No. 320, § 2; 2011, No. 561, § 2; 2019, No. 400, § 2.

Amendments. The 2009 amendment, in (a)(1)(B), substituted “Eight thousand seven hundred thirty-four dollars ($8,734)” for “Seven thousand five hundred thirty-four dollars ($7,534)” in (a)(1)(B)(i), “Ten thousand three hundred seventy-six dollars ($10,376)” for “Nine thousand one hundred seventy-six dollars ($9,176)” in (a)(1)(B)(ii), and “Thirteen thousand three hundred nineteen dollars ($13,319)” for “Twelve thousand one hundred nineteen dollars ($12,119)” in (a)(1)(B)(iii); and made minor stylistic changes.

The 2011 amendment substituted “may be fixed” for “shall be fixed” in (d).

The 2019 amendment inserted “or other insurance benefits” in (a)(3).

Case Notes

Constitutionality.

Former statutes which allowed a specified sum for an expense account in Pulaski County were not unconstitutional in violation of former Ark. Const., Art. 19, § 23 and Ark. Const., Art. 16, § 13, but were unconstitutionally applied where the expense allowances were paid to the officer whether or not the expenses were incurred and without any accounting for the expenses incurred. Tedford v. Mears, 258 Ark. 450, 526 S.W.2d 1 (1975) (decision under prior law).

Constitutionality of Ordinance.

County ordinance affecting compensation held to be contrary to Arkansas's applicable constitutional and statutory laws that specify and restrict the compensation and expenses that quorum court members and other county officials are entitled to receive. Massongill v. County of Scott, 329 Ark. 98, 947 S.W.2d 749 (1997).

County ordinance setting constable salaries at $25 per month did not violate equal protection because the evidence and testimony before the circuit court demonstrated that the quorum court had a rational basis for setting the $25-per-month salary for constables. Graves v. Greene County, 2013 Ark. 493, 430 S.W.3d 722 (2013).

14-14-1206. Compensation of county employees.

  1. Compensation. The quorum court of each county shall fix by ordinance the number and compensation of all county employees, including a bonus or lump-sum payment.
    1. County Employee Defined. “County employee” means an individual or firm providing labor or service to a county government for salary, wages, or any other form of compensation.
    2. As used in this section, “county government” means all offices, departments, boards, and subordinate service districts of county government created by law and subordinate to county government.

History. Acts 1977, No. 742, § 110; A.S.A. 1947, § 17-4203; Acts 2009, No. 616, § 1; 2011, No. 561, § 3.

Amendments. The 2009 amendment inserted “including a bonus or lump sum payment” in (a), and made a related change.

The 2011 amendment subdivided part of (b); in (b)(1), substituted “‘County employee’ means an” for “A county employee is defined as any” and inserted “government”; and deleted “including townships” preceding “created by” in (b)(2).

Case Notes

Constable.

A constable is an official of the county and thus covered by workers' compensation. Farnsworth v. White County, 312 Ark. 574, 851 S.W.2d 451 (1993).

Eligibility for Retirement System.

Substantial evidence supported the finding of the Board of Trustees of the Arkansas Public Employees' Retirement System that former employees of nursing homes owned by counties were not “county employees” under the relevant statutes and were not eligible for membership in the retirement system because their compensation was payable from patient revenues rather than from appropriated funds. Bd. of Trs. of the Ark. Pub. Emples. Ret. Sys. v. Garrison, 2019 Ark. App. 245, 576 S.W.3d 485 (2019).

Assuming that the nursing-home administrative boards and their respective counties were synonymous under the definitions of “County employees” and “Employees” in § 24-4-101, the Board of Trustees of the Arkansas Public Employees' Retirement System's finding that the former employees of county-owned nursing homes were not paid from appropriated funds as required by the definition of “Employees” in § 24-4-101 was affirmed as no ordinances in the record specifically designated county money for their compensation. Bd. of Trs. of the Ark. Pub. Emples. Ret. Sys. v. Garrison, 2019 Ark. App. 245, 576 S.W.3d 485 (2019).

Cited: Farnsworth v. White County, 39 Ark. App. 98, 839 S.W.2d 229 (1992).

14-14-1207. Reimbursement of allowable expenses.

  1. Reimbursement Authorized.
    1. All county and district officials and authorized deputies or employees are entitled to receive reimbursement of expenses incurred in the conduct of official and nondiscretionary duties under an appropriation for the operating expenses of an office, function, or service. Reimbursement of expenses incurred in the performance of discretionary functions and services may be permitted when authorized by a specific appropriation of the quorum court.
    2. Reimbursement of expenses for discretionary functions and services may include training expenses for a county official-elect and a district official-elect if authorized by the quorum court.
  2. Allowance for Meals, Lodging, and Other Allowable Expenses.
    1. All reimbursements for the purchase of meals, meal tips, lodging, and other allowable expenses are based on the actual expense incurred or on a per diem basis if authorized by the quorum court.
    2. Reimbursement for meal tips under subdivision (b)(1) of this section shall not exceed fifteen percent (15%) of the purchase amount of the meal.
    3. A per diem reimbursement under subdivision (b)(1) of this section shall be made under an accountable plan as defined by Internal Revenue Service regulations as in existence on January 1, 2009.
  3. Reimbursement of Travel Expense.
    1. Privately Owned Motor Vehicles.
        1. Any elected county officer, district officer, county officer-elect, district officer-elect, or employee using a privately owned motor vehicle in the conduct of county affairs may be reimbursed at a per-mile rate established by ordinance.
        2. Reimbursement is based only on official miles driven and legitimate automobile parking fees.
        3. When more than one (1) traveler is transported in the same vehicle, only the owner is entitled to mileage reimbursement.
      1. A county shall not assume responsibility for any maintenance, operational costs, accidents, and fines incurred by the owner of the vehicle while on official business for the county.
    2. Privately Owned Airplanes. Reimbursement for travel expense using privately owned airplanes is based upon the most direct route in air miles and at the same rate as established for privately owned motor vehicles.

History. Acts 1977, No. 742, § 111; A.S.A. 1947, § 17-4204; Acts 1999, No. 109, § 1; 2009, No. 74, § 1; 2009, No. 732, § 1; 2011, No. 614, § 2; 2015, No. 279, § 2.

Amendments. The 2009 amendment by No. 74, in (b), added (b)(2), inserted “meal tips” in the remaining text and redesignated it as (b)(1), and made a related change.

The 2009 amendment by No. 732 rewrote (a); inserted (b)(2) and (b)(3), redesignated the remaining text as (b)(1), and inserted “or on a per diem basis if approved by the quorum court” in (b)(1); substituted “district” for “township” in (c)(1)(A)(i); and made minor stylistic changes.

The 2011 amendment inserted “based upon the most direct route in air miles and” in (2); and deleted (2)(B).

The 2015 amendment redesignated (a) as (a)(1) and added (a)(2); in the second sentence of (a)(1), deleted “that are” preceding “incurred” and substituted “authorized” for “provided for”; substituted “authorized” for “approved” in (b)(1); substituted “county officer, district officer, county officer-elect, district officer-elect, or employee” for “county or district officer or employee thereof” in (c)(1)(A)(i); and made stylistic changes.

Case Notes

District Officials.

While the plain language of this section authorized reimbursement for district officials, a constable was not a district official, but a township officer under constitutional and statutory law, and thus, the statute did not authorize the reimbursement of expenses for constables, and the circuit court did not err in denying the constable's claim for expenses. Graves v. Greene County, 2013 Ark. 493, 430 S.W.3d 722 (2013).

14-14-1208. Professional memberships and meetings.

  1. The quorum court of each county may provide, through specific appropriations, for a county to join, pay membership fees and service charges, and cooperate with the organizations and associations of county government of this state and other states for the advancement of good government and the protection of local government interests.
  2. Elected county officers, district officers, township officers, county officers-elect, district officers-elect, and township officers-elect of a county government may be allowed per diem and either mileage or actual transportation expenses for attendance at meetings of the appropriate association of local government officials. Reasonable expenses or charges against each local government, as a member of the association, may be paid by a county.
  3. Employees of a county government may be allowed per diem and either mileage or actual transportation expenses for attendance at meetings of professional organizations or associations, and a county government may pay membership fees and service charges to the organizations.

History. Acts 1977, No. 742, § 114; A.S.A. 1947, § 17-4207; Acts 2015, No. 279, § 3.

Amendments. The 2015 amendment substituted “Elected county officers, district officers, township officers, county officers-elect, district officers-elect, and township officers-elect” for “Elected county and township officials” in (b).

14-14-1209. Uniform and equipment allowance for sheriff's department.

  1. Upon request by the county sheriff, the county quorum court may approve and appropriate a uniform and equipment allowance for the sheriff and employees of the sheriff's department in lieu of reimbursement for actual uniform and equipment expenses. The uniform and equipment allowance may be used for the purchase of uniforms, ammunition, and other equipment, excluding firearms, used in the performance of law enforcement duties.
  2. Claims for this uniform and equipment allowance shall be processed and paid in accordance with the laws of the State of Arkansas. However, an itemized listing or numbered invoice is not required for payment of this uniform and equipment allowance.

History. Acts 1985, No. 104, § 1; A.S.A. 1947, § 17-4205.1; Acts 1997, No. 223, § 1.

14-14-1210. Cost-of-living adjustment.

  1. Beginning January 1, 2011, and on each January 1 thereafter, three percent (3%) per annum shall be added to the minimum and maximum salaries and per diems of elected county officers as a cost-of- living adjustment.
  2. Beginning January 1, 2016, and on each January 1 thereafter, three percent (3%) per annum shall be added to the maximum per diem compensation of justices of the peace as a cost-of-living adjustment.
  3. Beginning September 1, 2010, and on each September 1 thereafter, the Association of Arkansas Counties shall provide each county and Arkansas Legislative Audit with a schedule of the minimum and maximum salaries and per diems of elected county officers and justices of the peace with the added cost-of-living adjustment for the following year.

History. Acts 2009, No. 320, § 3; 2015, No. 942, § 1.

Amendments. The 2015 amendment inserted (b) and redesignated former (b) as (c); and inserted “and justices of the peace” in (c).

14-14-1211. Monthly, bimonthly, biweekly, weekly, and hourly salaries for county employees.

      1. Except for those counties that operate principally on a scholastic year, or on a part-time basis, or where salaries or personal services are specifically established for a period less than one (1) year, all salaries established by the General Assembly or the governing body of the county shall be considered to be a maximum amount to be paid for a twelve-month payroll period.
      2. A greater amount than that established for the maximum annual salary of any county official or employee shall not be paid to the employee during any twelve-month payroll period, nor shall more than one-twelfth (1/12) of the annual salary be paid to an employee during a calendar month unless otherwise authorized.
    1. The limitations set out in this section may be converted to biweekly or weekly increments of one-twenty-sixth (1/26) or one-fifty-second (1/52) of the maximum annual salary.
    2. For complying with federal requirements, upon approval of the county judge, the maximum annual salaries may be converted to hourly rates of pay for positions established on the basis of twelve (12) months or less if authorized by law.
  1. The remuneration paid to an employee of the county may exceed the maximum annual salary as authorized by the General Assembly or governing body of the county as follows, and the following shall not be construed as payment for services or as salary as contemplated by Arkansas Constitution, Article 16, § 4:
    1. Overtime payments as authorized by law;
    2. Payment of a lump sum to a terminating employee, to include lump-sum payments of sick leave balances upon retirement as provided by law;
    3. Payment for overlapping pay periods at the end of a fiscal year as defined or authorized by law;
    4. Payment for the biweekly twenty-seven (27) pay periods; and
    5. Payments for incentive, certificate, holiday, or working out of classification.

History. Acts 2013, No. 572, § 1.

14-14-1212. Coroner medicolegal death investigation training — Authorization for salary adjustment for certified county coroner — Definition.

  1. As used in this section, “certified county coroner” means a county coroner who has obtained a certificate of satisfactory participation and completion of medicolegal death investigation training from the Arkansas Commission on Law Enforcement Standards and Training under § 14-15-308 or the American Board of Medicolegal Death Investigators.
  2. The quorum court of each county that has a certified county coroner is authorized to fix by ordinance the annual salary of a certified county coroner within the schedule of maximum salaries under § 14-14-1204.
  3. Beginning September 1, 2017, and on each September 1 thereafter, the compensation schedule prepared under § 14-14-1210(c) shall reflect a separate maximum annual salary for a certified county coroner with a salary adjustment made under subsection (b) of this section and § 14-14-1204(i).

History. Acts 2017, No. 194, § 1.

Subchapter 13 — Officers Generally

Effective Dates. Acts 1977, No. 742, § 118: Mar. 24, 1977. Emergency clause provided: “It is hereby found by the General Assembly that the passage of Amendment 55 to the Arkansas Constitution has caused major changes in the structure of county government and that, because of said changes, a need exists to modernize laws affecting county government. It is further found that the citizens of the several counties of the State are in need of services provided by county governments and said services can best be provided under the provisions of this Act. Therefore, an emergency is hereby declared to exist and this Act, being necessary for the public health, welfare and safety, shall be in effect from and after its passage and approval.”

Acts 2013, No. 378, § 2: Mar. 14, 2013. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that sometimes county officers resign from office during their term, often unavoidably; that some of these resignations and subsequent appointments to county office during the same term can conflict with certain retirement laws; and that this act is immediately necessary because it will ensure these conflicts do not occur and will preserve the integrity of county government. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

Research References

Am. Jur. 56 Am. Jur. 2d, Mun. Corp., § 231 et seq.

C.J.S. 20 C.J.S., Counties, § 100 et seq.

14-14-1301. County, quorum court district, and township officers.

  1. County Officers. There shall be elected, until otherwise determined by law, in each of the several counties of this state the following county officers:
    1. County Judge.
      1. The county judge shall:
        1. Perform the administrative and executive functions and duties, and such additional duties as may be provided by law, to be performed by the judge provided in Arkansas Constitution, Amendment 55, § 3;
        2. Preside over the county quorum court without a vote but with the power of veto; and
        3. Preside over the county court and exercise those judicial and ministerial duties of the county court that were not transferred to the judge to be performed in his or her capacity as the chief executive officer of the county by Arkansas Constitution, Amendment 55, or as may be provided by law.
      2. The judge shall be:
        1. At least twenty-five (25) years of age;
        2. A citizen of the United States;
        3. A person of upright character;
        4. A person of good business education; and
        5. A resident of the county at the time of his or her election and during his or her continuance in office;
    2. Clerk of the Circuit Court. The clerk of the circuit court shall be clerk of all divisions of the court, ex officio clerk of the county court, and recorder, except as provided in subdivision (a)(3) of this section;
    3. County Clerk. A county clerk may be elected in like manner as a circuit clerk, and in such cases, the clerk may be ex officio clerk of the probate division of circuit court, if such division exists, in the county until otherwise provided by the General Assembly, and if created as a separate office, bear witness and sign all writs and other judicial process acted upon by the respective courts served by the clerk;
    4. Assessor. The assessor shall perform such duties as are prescribed by law;
    5. Sheriff.
      1. The sheriff, who shall be ex officio collector of taxes, unless otherwise provided by law, shall perform such duties as are prescribed by law. It shall be the general duty of each sheriff to quell and suppress all assaults and batteries, affrays, insurrections, and unlawful assemblies.
      2. The sheriff shall:
        1. Apprehend and commit to jail all felons and other offenders;
        2. Execute all process directed to him or her by legal authority;
        3. Attend upon all courts held in his or her county until otherwise provided by law; and
        4. Perform all other acts and things that are required by law;
    6. Collector of Taxes. A separate collector of taxes may be elected as provided by law. Each collector, upon receiving the tax charge of the county, shall proceed to collect them as may be prescribed by law;
    7. Treasurer. The treasurer, who shall be ex officio treasurer of the common school fund of the county, shall perform such duties as are prescribed by law. However, nothing in this chapter shall be deemed to replace or modify any law of this state authorizing school boards to appoint a treasurer for school districts as provided by law;
    8. County Surveyor. The county surveyor shall perform such duties as are prescribed by law. It shall be the general duty of the surveyor to execute all orders directed by any court of record for surveying or resurveying any tract of land, the title of which is in dispute or in litigation before the court, and to obey all orders of surveys for the partition of real estate, and to provide services to the county court when required for the purpose of surveying and measuring any proposed road; and
    9. Coroner. The county coroner shall perform such duties as are prescribed by law.
  2. Quorum Court District and Township Officers.
      1. There shall be elected in each of the quorum court districts of the counties of this state one (1) justice of the peace who shall perform such judicial duties as may be prescribed by law and who shall serve as a member of the quorum court of the county in which elected and shall perform such legislative duties as may be prescribed by law.
      2. Each justice shall be a qualified elector and a resident of the district for which he or she is elected.
    1. There shall be elected in each township, as preserved and continued in § 14-14-401, one (1) constable who shall have the qualifications and perform such duties as may be provided by law.

History. Acts 1977, No. 742, § 41; 1979, No. 413, §§ 6-8; A.S.A. 1947, § 17-3601; Acts 2003, No. 1185, § 23; 2017, No. 260, § 3.

Amendments. The 2017 amendment redesignated (b)(1) as (b)(1)(A) and (B); and deleted “preside over the justice of the peace courts and” preceding “perform such judicial duties” in (b)(1)(A).

Cross References. Circuit clerks — Election — Term of office — Ex officio duties — County clerks elected in certain counties, Ark. Const., Art. 7, § 19.

Research References

U. Ark. Little Rock L.J.

Survey of Arkansas Law, Public Law, 1 U. Ark. Little Rock L.J. 230.

U. Ark. Little Rock. L. Rev.

Article, If the Constable Blunders, Does the County Pay?: Liability Under Title 42 U.S.C. § 1983, 28 U. Ark. Little Rock L. Rev. 519.

Case Notes

Constable.

A constable is an official of the county and thus covered by workers' compensation. Farnsworth v. White County, 39 Ark. App. 98, 839 S.W.2d 229 (1992), aff'd, 312 Ark. 574, 851 S.W.2d 451 (1993).

Where plaintiff was acting as constable when he sustained a gunshot wound to his abdomen, the county was required to furnish workers' compensation. Farnsworth v. White County, 312 Ark. 574, 851 S.W.2d 451 (1993).

While the plain language of § 14-14-1207 authorized reimbursement for district officials, a constable was not a district official, but a township officer under constitutional and statutory law, and thus, the statute did not authorize the reimbursement of expenses for constables, and the circuit court did not err in denying the constable's claim for expenses. Graves v. Greene County, 2013 Ark. 493, 430 S.W.3d 722 (2013).

Immunity.

Where sheriff acted pursuant to a writ of assistance in evicting plaintiff he was entitled to quasi-judicial immunity unless his conduct was beyond the scope of the immunity. Roach v. Madden, 728 F. Supp. 537 (E.D. Ark. 1989).

Sheriffs.

Except in cases of escape or the removal of property after order of attachment comes into his hands, a sheriff has no authority to execute process beyond his own county. Blevins v. State, 31 Ark. 53 (1876) (decision under prior law).

In a proceeding by a judgment creditor against a sheriff and his securities for failure to return an execution, it was no defense that the defendant in the execution was insolvent and the plaintiff was therefore not damaged; nor was it a defense that the deputy sheriff endorsed a return upon the execution and went to the clerk's office to file it, but the clerk was absent, and he afterwards was prevented by his official duties from returning to the clerk's office, without further showing that the office remained closed beyond the life of the execution and he returned it as soon afterwards as practicable. Atkinson v. Heer & Co., 44 Ark. 174 (1884) (decision under prior law).

No liability accrues for failure of a sheriff to sell attached property in his possession, condemned by order of court to be sold, until a legal demand has been made for an execution of the order. State ex rel. Cotton v. Atkinson, 53 Ark. 98, 13 S.W. 415 (1890) (decision under prior law).

When a sheriff attempts to justify a seizure of goods in the hands of a mortgagee under execution against the mortgagor by proving that the mortgage is fraudulent, the mortgagee may prove that the judgment, which was rendered in a justice court, while regular on its face, was void for want of jurisdiction of the mortgagor. Townsly-Myrick Dry Goods Co. v. Fuller, 58 Ark. 181, 24 S.W. 108 (1893); Fitzhugh v. Hackley, 70 Ark. 54, 66 S.W. 146 (1902) (decisions under prior law).

Where sheriff was acting pursuant to a writ of assistance specifically provided for in a decree of foreclosure executed by chancery court, and sheriff contacted plaintiff on three separate occasions to inquire whether plaintiff and his family would voluntarily surrender possession of the farm, and it was not until plaintiff refused for a third time that defendant took possession of the farm, it was of no consequence that sheriff may have used a minimal amount of force to evict plaintiff and his family, given sheriff's responsibilities as defined by the Arkansas legislature, the writ issued by chancery court, and plaintiff's confrontational attitude and refusal to leave the farm voluntarily. Roach v. Madden, 728 F. Supp. 537 (E.D. Ark. 1989).

Term Limits.

A county initiative fixing term limits for county officials was unlawful and invalid with respect to the county judge and justice of the peace as specific qualifications for those offices are listed in this section. Allred v. McLoud, 343 Ark. 35, 31 S.W.3d 836 (2000).

Cited: Henderson v. Dudley, 264 Ark. 697, 574 S.W.2d 658 (1978).

14-14-1302. Election of officers.

  1. County Officers. The qualified electors of each county in this state, at the time of electing members of the General Assembly, shall elect, until otherwise provided by law, all county officers for the term of two (2) years and until their successors are elected and qualified.
  2. Quorum Court District and Township Officers. The qualified electors of each county quorum court district and township in this state shall elect each district and township officer for the term of two (2) years and until his or her successor is elected and qualified. Election shall be held at the time of electing members of the General Assembly.

History. Acts 1977, No. 742, § 42; 1979, No. 413, § 9; A.S.A. 1947, § 17-3602.

Case Notes

Successors Elected and Qualified.

Defaulting treasurer elected to succeed himself was entitled to hold over until his successor was elected and qualified. Hill v. Goodwin, 82 Ark. 341, 101 S.W. 752 (1907) (decision under prior law).

Cited: Farnsworth v. White County, 39 Ark. App. 98, 839 S.W.2d 229 (1992); Farnsworth v. White County, 312 Ark. 574, 851 S.W.2d 451 (1993).

14-14-1303. Bond.

All county, county quorum court district, and township officers shall be bonded as prescribed by law.

History. Acts 1977, No. 742, § 47; 1979, No. 413, § 9; A.S.A. 1947, § 17-3607.

A.C.R.C. Notes. Self-Insured Fidelity Bond Program, § 21-2-701 et seq.

14-14-1304. Oath.

Each county, justice of the peace, and township officer, before entering upon the discharge of the duties of his or her office, shall take and subscribe to the oath prescribed in the Arkansas Constitution for officers.

History. Acts 1977, No. 742, § 43; 1979, No. 413, § 9; A.S.A. 1947, § 17-3603.

14-14-1305. Commission.

  1. County Officers. All county officers shall be commissioned by the Governor in a manner prescribed by law.
    1. Quorum Court District and Township Officers. All township and county quorum court district officers, except constables, shall be commissioned by the Governor in a manner prescribed by law.
    2. Constables shall be furnished with a certificate of election by the county court on which the constable's official oath shall be endorsed.

History. Acts 1977, No. 742, § 44; 1979, No. 413, § 9; A.S.A. 1947, § 17-3604.

14-14-1306. Residence required.

  1. All county, county quorum court district, and township officers shall reside within their respective townships, districts, and counties.
  2. An office shall be deemed vacant if a county officer removes his or her legal residence from the county or if a district or township officer removes his or her legal residence from the district township from which elected.
  3. For purposes of this section, legal residence shall be defined as the domicile of the officer evidenced by the intent to make such residence a fixed and permanent home.

History. Acts 1977, No. 742, § 45; 1979, No. 413, § 9; A.S.A. 1947, § 17-3605.

Case Notes

Construction.

This section does not alter Ark. Const., Art. 19, § 3, as interpreted by the Supreme Court. Davis v. Holt, 304 Ark. 619, 804 S.W.2d 362 (1991).

Determination of Residency.

In determining the residency of a candidate and whether he is qualified to run for office from a certain district, the conduct and actions of the candidate regarding his residency must be in conformity with his stated intent, and both the intent and conduct of the candidate must be considered as factors in determining his residency. Brick v. Simonetti, 279 Ark. 446, 652 S.W.2d 23 (1983).

Where, in an action challenging the residency qualifications of a candidate who had won an election for justice of the peace in District No. 11, the evidence showed that the candidate had resided in District No. 11 for many years until her place of residence was changed to District No. 10 by a quirk of redistricting that occurred shortly before her election, and that the candidate, after learning of the change, moved into an apartment within District No. 11, set up housekeeping, changed her voter registration to the new address, obtained a telephone at the apartment, ate most of her meals at the apartment, and began making the apartment her home, the evidence supported the finding that the candidate was a resident of District No. 11. Brick v. Simonetti, 279 Ark. 446, 652 S.W.2d 23 (1983).

Cited: State ex rel. Robinson v. Craighead County Bd. of Election Comm'rs, 300 Ark. 405, 779 S.W.2d 169 (1989).

14-14-1307. Offices.

  1. The county court shall determine the location of the office of the various county, county quorum court district, and township officers.
  2. Nothing in this section, however, shall be construed to compel the county court to provide justices of the peace, constables, coroners, or surveyors with a formal office.

History. Acts 1977, No. 742, § 46; 1979, No. 413, § 9; A.S.A. 1947, § 17-3606.

14-14-1308. Vacancy in office.

A county, county quorum court district, or township office shall be considered vacant if any one (1) of the following conditions exists:

  1. The incumbent fails to meet the qualifications for office prescribed by law as evidenced by failure to be commissioned;
  2. The incumbent refuses or neglects to take and subscribe to the official oath required by law as evidenced by failure to be commissioned;
  3. The incumbent refuses, neglects, or for any other reason fails to secure an official bond required by law as evidenced by failure to be commissioned;
  4. The incumbent resigns;
  5. The incumbent ceases to meet any residence requirements for office;
  6. The incumbent is removed from office by judicial proceedings;
  7. The election or appointment of the incumbent is declared void by a judicial proceeding;
  8. The incumbent is convicted of a felony, incompetency, corruption, gross immorality, criminal conduct, malfeasance, misfeasance, or nonfeasance in office by judicial proceedings;
  9. The incumbent ceases to discharge the duties of his or her office for a period of three (3) months, except when prevented by sickness or excused by a quorum court through resolution;
  10. The incumbent is declared of unsound mind by judicial proceedings;
  11. The quorum court determines that the incumbent has become disabled to the degree that he or she cannot perform the duties of his or her office;
  12. The incumbent holds more than one (1) office or position in conflict with the provisions of Arkansas Constitution, Article 4, § 2, or Arkansas Constitution, Article 19, § 6;
  13. The quorum court separates elective offices as provided by law; or
  14. The incumbent dies.

History. Acts 1977, No. 742, § 49; 1979, No. 413, § 9; A.S.A. 1947, § 17-3609.

14-14-1309. Declaration of vacancy.

  1. Conditions. The quorum court of each county shall declare a county, county quorum court district, or township office vacant where conditions of vacancy exist as demonstrated in the following manner:
    1. Upon receipt of certification that a condition of vacancy exists as evidenced by failure of an officer to be commissioned or finding of judicial proceedings where such conditions serve as the cause of vacancy; and
    2. Upon determination by a quorum court that a condition of vacancy exists in all other causes not governed by failure to be commissioned or finding of judicial proceedings. Such determination by a quorum court shall be conducted through the process of resolution as prescribed by law if the resolution shall have been published prior to the meeting date in which the resolution is to be considered by the court.
  2. Appeal. Appeals by the county, quorum court district, or township officer so affected from a declaration of vacancy by the quorum court may be taken to the circuit court if the appeal shall be filed within thirty (30) calendar days from the date of publication as required for county resolutions.
  3. Notification of Governor. The quorum court shall upon declaration of a vacancy, or within ten (10) calendar days thereafter, in any elective township office cause the declaration to be filed in writing with the Governor.

History. Acts 1977, No. 742, § 50; 1979, No. 413, § 9; A.S.A. 1947, § 17-3610.

14-14-1310. Filling vacancies in elective offices.

    1. County Elective Offices. Vacancies in all county elective offices shall be filled by the county quorum court through the process of resolution as prescribed by law.
    2. Eligibility Requirements and Term of Office.
      1. Qualifications. All officers appointed to fill a vacant county elective office shall meet all of the requirements for election to that office.
      2. Requirements. All officers appointed by a quorum court shall subscribe to the oath of office, be commissioned, and be bonded as prescribed by law.
        1. Persons Ineligible for Appointment. Any member of the quorum court shall be ineligible for appointment to fill any vacancy occurring in any county office, and resignation shall not remove the ineligibility. Husbands and wives of justices of the peace and relatives of the justices or their husbands and wives within the fourth degree of consanguinity or affinity shall likewise be ineligible.
        2. Any county elected officer who resigns during a term of office shall be ineligible for appointment to any county elective office during the term for which he or she resigned.
      3. Term of Office. All officers so appointed shall serve until their successor is elected and qualified.
      4. Successive Terms of Appointed Officer Prohibited. A person appointed to fulfill a vacant or unexpired term of an elective county office shall not be eligible for appointment or election to succeed himself or herself.
  1. Elective Township Offices. All vacancies in elective township offices, including justice of the peace offices, shall be filled by the Governor.
  2. Emergency Vacancies.
      1. During a declaration of an emergency or circumstances that warrant a declaration of an emergency under § 12-75-107 or § 12-75-108, a vacancy in the office of county judge due to death or disability to the degree of inability to perform the duties of office shall be temporarily filled by executive order of the county judge issued prior to the incapacity of the county judge, designating three (3) persons in succession to fill the vacancy of the office of county judge on an interim basis until such time as the vacancy is filled by the quorum court as provided by this chapter or the disability of the county judge is abated.
      2. Persons so designated shall be listed in succession and may be identified by title or position.
      3. The death or disability of a person in the line of succession shall result in disqualification of the person and appointment of the next successive person.
      1. During a declaration of an emergency or circumstances that warrant a declaration of emergency under § 12-75-107 or § 12-75-108, a vacancy in the office of sheriff due to death or disability to the degree of inability to perform the duties of office shall be temporarily filled by a policy statement of the sheriff issued prior to the incapacity of the sheriff and adopted by resolution of the quorum court, designating three (3) persons in succession to fill the vacancy in the office of sheriff on an interim basis until such time as the vacancy is filled by the quorum court as provided by this chapter or the disability of the sheriff is abated.
      2. Persons so designated by the sheriff shall be listed in succession and may be identified by title or position.
      3. The death or disability of a person in the line of succession shall result in disqualification of the person and appointment of the next successive person.
      4. The sheriff shall affix his or her signature to the policy statement and to the resolution of the quorum court to signify that the line of succession for the office of sheriff is in accordance with his or her authority.
      1. The county judge and the sheriff shall file the executive order and the resolution with policy statement under subdivisions (c)(1) and (2) of this section with the county clerk, and a file-marked copy shall be provided to the Director of the Division of Emergency Management no later than sixty (60) days from the beginning of the elected term of office.
      2. Members of the quorum court are not eligible to fill the vacancy in the office of county judge or sheriff under this section.

History. Acts 1977, No. 742, §§ 51, 52; 1979, No. 413, § 10; 1985, No. 682, §§ 1-3; A.S.A. 1947, §§ 17-3611, 17-3612; Acts 2009, No. 229, § 1; 2013, No. 378, § 1; 2019, No. 910, § 5920.

Amendments. The 2009 amendment added (c).

The 2013 amendment redesignated former (a)(2)(C) as (a)(2)(C)(i); added (a)(2)(C)(ii), and made stylistic changes.

The 2019 amendment substituted “Director of the Division of Emergency Management” for “Arkansas Department of Emergency Management” in (c)(3)(A).

Research References

U. Ark. Little Rock L.J.

Survey of Arkansas Law, Public Law, 1 U. Ark. Little Rock L.J. 230.

14-14-1311. Removal from office.

The circuit court shall have jurisdiction, upon information, presentment, or indictment, to remove any county or township officer from office for incompetency, corruption, gross immorality, criminal conduct, malfeasance, misfeasance, or nonfeasance in office.

History. Acts 1977, No. 742, § 53; A.S.A. 1947, § 17-3613.

14-14-1312. Remuneration.

No officer of any county, county quorum court district, or township shall receive from county funds, directly or indirectly, for salary, wages, and perquisites more than the amount appropriated by the respective quorum court for each respective office per annum in par funds and paid to the officer by instrument drawn by the county judge on the treasury.

History. Acts 1977, No. 742, § 48; 1979, No. 413, § 9; A.S.A. 1947, § 17-3608.

14-14-1313. Remittance of public funds.

All public funds coming into the possession of any officer of the county shall be remitted to the county treasury in a manner prescribed by law.

History. Acts 1977, No. 742, § 48; 1979, No. 413, § 9; A.S.A. 1947, § 17-3608.

14-14-1314. Constable training requirements — Uniform requirements.

      1. For a constable to have access to information from the Arkansas Crime Information Center:
        1. He or she shall satisfactorily complete the constable certification course provided by the Arkansas Commission on Law Enforcement Standards and Training; and
        2. Each year after completing the certification course required under subdivision (a)(1)(A)(i) of this section, he or she shall satisfactorily complete sixteen (16) hours of training certified by the Arkansas Commission on Law Enforcement Standards and Training.
      2. For a constable to carry a firearm:
        1. He or she shall attend sixteen (16) hours of firearms training; and
        2. Each year after completing the training required under subdivision (a)(1)(B)(i) of this section, he or she shall satisfy the firearm qualification standards for a law enforcement official.
    1. A constable holding office on July 31, 2007, is exempt from the requirements of subdivision (a)(1) of this section if the constable has completed:
      1. The Part-time Law Enforcement Officer training or higher level training course; and
      2. Mandatory racial profiling courses.
    1. In the performance of his or her official duties, a constable shall wear a uniform consisting of:
      1. A white shirt on formal occasions at any time;
        1. A constable identification patch on the left shoulder of the shirt and an American flag on the right shoulder.
        2. The top of each patch shall be one inch (1") down from the shoulder seam of the shirt;
      2. A name tag above the right pocket flap of the shirt;
      3. A six-point star containing the words “Arkansas Constable” on the left side of the shirt; and
      4. The following pants:
        1. Tan pants; or
        2. Blue or black pants on formal occasions.
    2. If a constable is engaged in search or rescue activities, he or she shall wear a uniform consisting of:
      1. A black shirt; and
      2. Black pants.
  1. In the performance of his or her official duties, a constable shall drive a motor vehicle that is:
    1. Equipped with emergency equipment; and
    2. Clearly marked with a six-point star and the words “Arkansas Constable”.
  2. The county may pay reasonable expenses associated with the requirements of this section.

History. Acts 2007, No. 841, § 2; 2011, No. 561, § 4; 2013, No. 1113, § 1; 2019, No. 151, § 10; 2019, No. 910, § 5921.

Amendments. The 2011 amendment added (d).

The 2013 amendment deleted (b)(1)(A) through (b)(1)(A)(ii), (b)(1)(F) and (b)(2)(C) and redesignated the remaining subdivisions accordingly; redesignated former (b)(1)(A)(iii) as present (b)(1)(A); deleted “shall be” following “’Arkansas Constable’” in (b)(1)(D); and substituted “Equipped” for “Fully equipped” in (c)(1).

The 2019 amendment by No. 151 substituted “Officer training” for “Officer II training” in (a)(2)(A).

The 2019 amendment by No. 910 substituted “training certified” for “training provided” in (a)(1)(A)(ii).

Cross References. Access to criminal history records, § 12-12-211.

Training for constables, § 12-9-115.

Chapter 15 Officers

Cross References. Term of office of certain officers, § 21-1-102.

Research References

Am. Jur. 56 Am. Jur. 2d, Mun. Corp., § 231 et seq.

C.J.S. 20 C.J.S., Counties, § 100 et seq.

Subchapter 1 — General Provisions

Effective Dates. Acts 1927, No. 85, § 5: effective on passage.

14-15-101. Audit of accounts after expiration of term.

When the term of any sheriff and ex officio collector or a county collector or county treasurer or any county official required by law to make bond expires, within ten (10) days the county judge shall employ a reputable public accountant or a qualified Division of Legislative Audit employee to audit the account of the retiring official and ascertain the amount due the county, state, and other funds. However, this audit shall not be made if the county judge of the county affected decides that the audit is unnecessary.

History. Acts 1927, No. 85, § 3; Pope's Dig., § 10442; A.S.A. 1947, § 12-235.

14-15-102. Environmental officer.

  1. Each county within this state may employ an environmental officer who shall inspect all landfills within that county, ensure compliance with all environmental ordinances, collect evidence of noncompliance and present the evidence to the prosecuting attorney. This officer shall issue citations for violation of any county ordinance prohibiting dumping of waste, garbage, litter, or any hazardous materials throughout the county.
  2. The environmental officer may complete the training course for law enforcement officers at the Arkansas Law Enforcement Training Academy. After satisfactory completion of the course the environmental officer shall be a law enforcement officer.
  3. After completing the training course at the Arkansas Law Enforcement Training Academy, the environmental officer may carry firearms, execute and serve any warrant or other processes issued under the authority of the county pertaining to violations of county ordinances concerning environmental protection, and make arrests and issue citations for violations of county ordinances concerning environmental protection.

History. Acts 1991, No. 722, §§ 1-3.

Subchapter 2 — County Assessors

Effective Dates. Acts 1883, No. 114, § 226: effective on passage.

Acts 1889, No. 9, § 2: effective on passage.

Acts 1947, No. 111, § 4: July 1, 1947.

Acts 1991, No. 484, § 5: Mar. 13, 1991. Emergency clause provided: “It is hereby found and determined by the Seventy-Eighth General Assembly that school districts and other taxing units, which are required to pay the expenses of the office of county assessor, are not, under present law, provided with notice or knowledge of the proposed budgets of county assessors, or of proposed amendments thereto. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 2001, No. 1275, § 4: Apr. 4, 2001. Emergency clause provided: “It is found and determined by the General Assembly that property tax reimbursements to the counties will most likely begin in April and it is critical to the counties to account for costs borne by the certification of amounts of real property tax reduction to the Chief Fiscal Officer of the State as soon as possible. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

14-15-201. Form of oath.

On or before January 1 succeeding his or her election and before entering upon or discharging any of the duties of his or her office, every assessor shall take and subscribe to the oath prescribed in Arkansas Constitution, Article 19, § 20, and in addition thereto, the following oath or affirmation, which shall be endorsed upon the assessment books prior to their delivery to the assessor:

“I , assessor for County, do solemnly swear that the value of all real and personal property, moneys, credits, investments in bonds, stocks, joint-stock companies, of which statements may be made to me by persons required by law, will be appraised at its actual cash value, that in no case will I, knowingly, omit to demand of any person, or corporation, of whom by law I may be required to make such demand, a statement of the description and value of personal property, or the amount of moneys and credits, investments in bonds, stocks, joint-stock companies, or otherwise, which he or she may be required to list, or in any way connive at any violation or evasion of any of the requirements of the law or laws in relation to the listing or valuation of property, credits, investments in bonds, stocks, joint-stock companies or otherwise, of any kind for taxation.”

History. Acts 1883, No. 114, § 58, p. 199; C. & M. Dig., § 9874; Pope's Dig., § 13623; A.S.A. 1947, § 12-802.

Cross References. Constitutional oath requirement, § 14-14-1304.

Case Notes

Failure to Take Oath.

Tax deed based on sale for nonpayment of taxes for a year during which assessor took oath prescribed by Arkansas Constitution, but neglected to take the special statutory oath, is valid. Barton v. Lattourette, 55 Ark. 81, 17 S.W. 588 (1891).

A tax sale is not rendered invalid by an assessor's failure to take the oath. Sawyer v. Wilson, 81 Ark. 319, 99 S.W. 389 (1907).

Failure of tax assessor to take oath of office is no ground for quashing an assessment on certiorari. Moore v. Turner, 43 Ark. 243 (1884).

Failure of assessor to append proper oath to his assessment return is not ground to enjoin extending of assessment on tax books. Stell v. Watson, 51 Ark. 516, 11 S.W. 822 (1889).

Cited: Wildman v. Enfield, 174 Ark. 1005, 298 S.W. 196 (1927).

14-15-202. Extension of time to take oath.

Every assessor who shall have failed to take and subscribe to the oath prescribed in § 14-15-201 at the time therein stated is granted, until the time provided by law for entering upon the discharge of his or her duties, to take and subscribe to the oath prescribed in § 14-15-201, and the acts of every assessor who shall take the oath within the time granted in this section shall be as valid as if he or she had taken and subscribed to the oath at the time provided by law.

History. Acts 1889, No. 9, § 1, p. 8; C. & M. Dig., § 9875; Pope's Dig., § 13624; A.S.A. 1947, § 12-803.

14-15-203. Pro rata contribution to salaries.

    1. It is declared to be the policy of the state and local governments of Arkansas that from and after July 1, 1947, the state and every county, municipality, school district, and other taxing unit, excepting only special improvement districts to which the county assessor is not required by law to render service, receiving ad valorem or other tax funds collected by county collectors or certified to the Chief Fiscal Officer of the State pursuant to § 26-26-310 by county collectors shall contribute funds for the payment of the salaries, and the necessary expenses incurred in the performance of their official duties, of the county assessors and their deputies.
      1. At least twenty (20) days prior to the quorum court meeting at which the annual budget is adopted, the county assessor shall provide to each taxing unit a copy of the proposed budget of the county assessor for the next year.
      2. At least ten (10) days prior to any meeting of the quorum court at which an amendment adding an appropriation exceeding one percent (1%) of the original budget amount to the budget of the county assessor shall be presented, the county assessor shall provide to each taxing unit a copy of the proposed amendment.
      3. Copies of the budget and any amendments shall be provided by giving copies to the following:
        1. For the county, to the county clerk;
        2. For a municipality, to the clerk or recorder; and
        3. For a school district, to the superintendent.
    1. For the purpose of carrying out this policy, the amount to be contributed annually by each of the taxing units shall be in the proportion that the total of such taxes collected or certified to the state pursuant to § 26-26-310 for the benefit of each taxing unit bears to the total of taxes collected for the benefit of all taxing units.
    2. The pro rata contribution of the salaries and expenses of any taxing unit that receives taxes collected or certified to the state pursuant to § 26-26-310 for the purpose of meeting debt service requirements of its issued and outstanding bonds shall be charged to and paid out of the taxing unit's general fund, and not to, or out of, any special fund it may maintain for this purpose, nor in such other manner as will diminish the amount necessary to meet the debt service requirements.

History. Acts 1947, No. 111, § 1; A.S.A. 1947, § 12-806; Acts 1991, No. 484, § 1; 2001, No. 1275, § 2.

Case Notes

In General.

The assessor's office can recover for its “salaries and necessary expenses” on a pro rata basis from taxing units it services for the collection of taxes. Mears v. Little Rock School Dist., 268 Ark. 30, 593 S.W.2d 42 (1980).

School Districts.

Where the General Assembly had not passed any legislation establishing an “assessment” reasonably related to the cost of any service or specific benefit provided by the county government, the Pulaski County Quorum Court was without the authority to order the school districts to pay a pro rata share of the salaries and expenses incurred in the collection of taxes by the county officers, other than the assessor's office. Mears v. Little Rock School Dist., 268 Ark. 30, 593 S.W.2d 42 (1980).

It is the duty of the county, not the school districts, to furnish a courthouse and to provide the necessary offices for the several county officers, including the assessor and collector; therefore, the county judge erred when he diverted money from the school board's tax collection account to the county's general fund to pay the office expenses of the assessor and collector. Venhaus v. Board of Educ., 280 Ark. 441, 659 S.W.2d 179 (1983).

Cited: Strawn v. Campbell, 226 Ark. 449, 291 S.W.2d 508 (1956).

14-15-204. Claim for salaries and expenses.

  1. The county assessor shall file an itemized claim, no less often than quarterly, with the clerk of the county court for salaries earned and for reimbursement of authorized expenses incurred. The county court shall promptly examine each claim, and if it finds the claim to be correct, the county court shall enter an order directing the county clerk to issue a warrant upon the county treasury, payable from the county assessor's fund, hereby created, for the amount so found to be due.
    1. Annually, at the time of making the final settlement of taxes collected by the county tax collector, the county funds of the various taxing units shall be charged with such units' respective pro rata shares of the salaries and expenses, as provided in § 14-15-203, and the amounts so charged shall be credited to the county assessor's fund of the county.
    2. In order to facilitate the payment of salaries and expenses, the county court may authorize and direct by order duly entered the county treasurer to make advance transfers from the collector's unapportioned fund, or the county general fund, to the county assessor's fund, with advances to be repaid at the time of making final settlement of amounts due the county assessor's fund.

History. Acts 1947, No. 111, § 2; A.S.A. 1947, § 12-807.

14-15-205. Professional development recognition payments.

    1. County assessors, full-time employees of county assessors' offices, and state employees who actively work with ad valorem taxes shall become eligible for professional development recognition payments upon completion of the requirements enumerated in subsection (b) of this section for each year the employee is employed full time in the county assessor's office.
    2. Such payments shall be made from appropriated funds pro rata to eligible county assessors, full-time employees of county assessors' offices, and state employees who actively work with ad valorem taxes up to the designated amounts from such funds as may be specifically appropriated for such payments.
        1. County assessors, full-time employees of county assessors' offices, and state employees who actively work with ad valorem taxes designated as senior appraisers, Level 4, by the Assessment Coordination Department shall receive annually, to the extent moneys are available, a professional development recognition payment in an amount not to exceed five hundred dollars ($500).
        2. County assessors, full-time employees of county assessors' offices, and state employees who actively work with ad valorem taxes designated as senior appraiser managers, Level 4, by the department shall receive annually, to the extent moneys are available, a professional development recognition payment in an amount not to exceed seven hundred fifty dollars ($750).
      1. A senior appraiser, Level 4, with four (4) years of appraisal experience may serve as an appraisal or reappraisal manager in a county if the appraiser complies with the standards established by the department.
    1. To the extent moneys are available, county assessors, full-time employees of county assessors' offices, and state employees who actively work with ad valorem taxes designated as certified residential appraisers by the Arkansas Appraiser Licensing and Certification Board or as cadastral mapping specialists by the International Association of Assessing Officers shall annually receive a professional development recognition payment in an amount not to exceed one thousand dollars ($1,000).
    2. To the extent moneys are available, county assessors, full-time employees of county assessors' offices, and state employees who actively work with ad valorem taxes designated as certified general appraisers by the Arkansas Appraiser Licensing and Certification Board or as certified assessment evaluators by the International Association of Assessing Officers shall annually receive a professional development recognition payment in an amount not to exceed two thousand dollars ($2,000).
    1. A county assessor, full-time employee, or state employee who actively works with ad valorem taxes is eligible for only one (1) professional development recognition payment annually.
    2. To the extent moneys are available, if any county assessor, full-time employee, or state employee who actively works with ad valorem taxes is eligible for professional development recognition payments in two (2) or more categories enumerated in subsection (b) of this section, he or she shall annually receive the professional development recognition payment in the amount of the higher recognition payment category.
    1. In order to be eligible to receive a professional development recognition payment, the county assessor, full-time employee, or state employee who actively works with ad valorem taxes shall present proof of the appropriate agency's designation and proof that the appropriate agency's designation has been maintained for a minimum of twelve (12) months before the June 30 for which the payment is being requested to the Director of the Assessment Coordination Department, who shall authorize payment to the county assessor or employee no later than July 15.
    2. In order to receive professional development recognition payments in subsequent years, the county assessor or employee shall annually present proof to the director by June 1 that he or she has fulfilled the requirements to maintain a professional designation and that the employee has been a full-time county assessor or assessment employee for the previous year and continues to be a full-time assessor or employee.
  1. Professional development recognition payments authorized by this section shall be subject to withholding of all applicable state and federal taxes but shall not be included by retirement systems in determining benefits.

History. Acts 1995, No. 903, §§ 1, 2; 2001, No. 1393, § 1; 2013, No. 707, § 1.

Amendments. The 2013 amendment inserted “and state employees who actively work with ad valorem taxes” in (a)(1) and (a)(2); inserted “full-time” in (a)(1), (b)(1)(A)(i), (iii), (b)(2) through (3), (c)(1), (2) and (d)(1); inserted “of county assessors' offices, and state employees who actively work with ad valorem taxes” in (b)(1)(A)(i), (ii), (b)(1)(B)(2) and (B)(3); inserted “or state employee who actively works with ad valorem taxes” in (c)(1), (2) and (d)(1); and added “and proof that the appropriate agency's designation has been maintained for a minimum of twelve (12) months before the June 30 for which the payment is being requested” in (d)(1).

Subchapter 3 — County Coroners

Publisher's Notes. Former §§ 14-15-30114-15-304, concerning the conservator of peace, his powers generally, and the issuance of recognizances and execution of process, were repealed by Acts 1993, No. 1301, § 3. They were derived from the following sources:

14-15-301. Rev. Stat., ch. 32, § 4; C. & M. Dig., § 1571; Pope's Dig., § 1895; A.S.A. 1947, § 12-903.

14-15-302. Rev. Stat., ch. 32, § 5; C. & M. Dig., § 1572; Pope's Dig., § 1896; A.S.A. 1947, § 12-904.

14-15-303. Rev. Stat., ch. 32, § 6; C. & M. Dig., § 1573; Pope's Dig., § 1897; A.S.A. 1947, § 12-905.

14-15-304. Rev. Stat., ch. 32, §§ 7, 8; Acts 1917, No. 206, § 1; C. & M. Dig., §§ 1574, 1575; Pope's Dig., §§ 1898, 1899; A.S.A. 1947, §§ 12-906, 12-907.

Cross References. State and local officers — Income and expenditures, § 21-7-201 et seq.

Actions against sheriffs, coroners, and other officials, § 16-56-109.

Procurement of transplantable tissue — Procurement agencies, § 20-17-617.

Deaths, § 20-18-601 et seq.

Coroners' fees, § 21-6-304.

Coroners to report deaths, § 27-53-204.

Effective Dates. Acts 1989, No. 484, § 4: Mar. 10, 1989. Emergency clause provided: “It is hereby found and determined by the General Assembly that county coroners should be allowed to be employed by local emergency medical services; that this act so provides; and that this act should go into effect immediately in order to grant such authorization as soon as possible. Therefore, an emergency is hereby declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1993, No. 1301, § 7: Apr. 23, 1993. Emergency clause provided: “It is hereby found and determined by the Seventy-Ninth General Assembly that there exists confusion over the powers and duties of the various county coroners; that the confusion is compounded by a series of antiquated laws that bestow responsibilities on a coroner not connected to his duties in modern times. Therefore, an emergency is declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

Research References

ALR.

Liability for wrongful autopsy. 18 A.L.R.4th 858.

14-15-301. Powers and duties of a coroner.

When a death is reported to the coroner, he or she shall conduct an investigation concerning the circumstances surrounding the death of an individual and gather and review background information, including, but not limited to, medical information and any other information which may be helpful in determining the cause and manner of death.

History. Acts 1993, No. 1301, § 1.

14-15-302. Coroner's investigation.

  1. A coroner's investigation does not include criminal investigation responsibilities. However, the coroner shall assist any law enforcement agency or the State Crime Laboratory upon request.
    1. A coroner shall be given access to all death scenes in order to perform the duties set forth in this subchapter.
    2. A coroner may issue subpoenas as necessary to secure pertinent medical or other records and testimony relevant to the determination of the cause and manner of death.
    1. A coroner or his or her deputy who has received instruction and has been deemed qualified by the State Crime Laboratory to take and handle toxicological samples from dead human bodies may do so for the purpose of determining the presence of chemical agents that may have contributed to the cause of death.
    2. Toxicological samples may be taken from dead human bodies in those cases in which the coroner is required by law to conduct an investigation.
    1. A person, institution, or office in this state that makes available information or material under this section is not criminally liable.
    2. A person, institution, or office in this state is not liable in tort for compliance with this section.
    1. A preliminary written report of the coroner's investigation shall be completed within five (5) working days and shall include a pronouncement of death. If indicated, a subsequent report shall be completed.
    2. If the death occurred without medical attendance or was the result of a homicide, an accident, or a suicide, then the preliminary written report shall include without limitation the following information regarding the decedent:
      1. Name;
      2. Date of birth or approximate age if unknown;
      3. Sex;
      4. Social security number if available;
      5. Home address;
      6. Location where the body was discovered;
      7. Time of death or approximate time if unknown;
      8. Condition of the body, including any recent trauma, body temperature, and position;
      9. Any prescribed medications;
      10. Pertinent medical history;
      11. Cause and manner of death;
      12. Photographs or information where photographs may be accessed in cases of non-natural deaths and deaths of persons under eighteen (18) years of age;
      13. List of all other governmental entities investigating the death; and
      14. Disposition of the body.
    3. Nothing in this section shall limit or otherwise restrict the exercise of professional judgment or discretion by a coroner or prohibit access to information or testimony necessary to complete a coroner's investigation.

History. Acts 1993, No. 1301, § 1; 1999, No. 812, § 1; 2007, No. 194, § 2; 2009, No. 1288, § 1.

Amendments. The 2009 amendment inserted “dead human” preceding “bodies” in (c)(2); subdivided (d); inserted “and shall include a pronouncement of death” in (e)(1); inserted “preliminary written” in the introductory language of (e)(2); substituted “date of birth” for “age” at the beginning of (e)(2)(E); and made minor stylistic changes.

Cross References. Coroner may collect and secure decedent's prescription medication, § 14-15-306.

Notification of certain deaths, § 12-12-315.

14-15-303. Death certificate.

If, after conducting an investigation, the law enforcement agency and prosecuting attorney of the jurisdiction are satisfied that no crime has occurred, the coroner is satisfied that the death is not the result of a crime, and the coroner knows to a reasonable certainty the cause and manner of death, the coroner or his or her designated deputy shall proceed to execute a death certificate in the form and manner required by law and release the body for final disposition.

History. Acts 1993, No. 1301, § 1.

14-15-304. Confidentiality.

  1. Records gathered and created during the course of a coroner's investigation shall be confidential and deemed exempt from the Freedom of Information Act of 1967, § 25-19-101 et seq., but only until such time that the coroner issues his or her final report.
  2. Confidential medical information gathered during the course of the investigation shall remain exempt from public inspection and copying except as quoted in the coroner's final report.

History. Acts 1993, No. 1301, § 2.

14-15-305. Employment.

County coroners may be employed by any city emergency medical service, county emergency medical service, or joint city and county emergency medical service.

History. Acts 1989, No. 484, § 1.

14-15-306. Disposition of prescription medication.

  1. A coroner may collect and secure any prescription medication of the decedent to ensure that the medication does not come into the possession of a person who might use the medication in an illegal or harmful manner.
  2. Collected medication shall be disposed of under circuit court order or shall be forwarded to the Department of Health within thirty (30) days for proper destruction under § 20-64-214.
  3. This section shall not apply to any prescription medication in the custody or possession of an institutional healthcare provider or attending hospice nurse that is subject to other laws, rules, and regulations governing the destruction or disposition of patient or resident medication.

History. Acts 2007, No. 194, § 3; 2019, No. 315, § 986.

Amendments. The 2019 amendment inserted “rules” following “laws” in (c).

Cross References. Notification of certain deaths, § 12-12-315.

14-15-307. [Repealed.]

A.C.R.C. Notes. The repeal of this section by Acts 2019, No. 383, supersedes the amendment of this section by Acts 2019, No. 910. Acts 2019, No. 910, § 4855, amended subdivision (a)(2)(G) to read as follows: “(G) The Secretary of the Department of Health or his or her designee; and”.

Publisher's Notes. This section, concerning the creation, powers, and duties of the Coroner's Advisory Task Force, was repealed by Acts 2019, No. 383, § 4, effective July 24, 2019. The section was derived from Acts 2009, No. 1275, § 1; 2019, No. 910, § 4855.

14-15-308. Training and instruction.

  1. The Division of Law Enforcement Standards and Training, in coordination with the Department of Health, shall establish a training curriculum for medicolegal death investigators, coroners, and deputy coroners in Arkansas that consists of no less than sixteen (16) hours nor more than forty (40) hours of instruction, including without limitation courses on:
    1. Medicolegal death investigation leading to certification as a medicolegal death investigator;
    2. Scene investigation;
    3. Body recovery;
    4. Safety;
    5. Statutes and rules;
    6. Documentation and reporting;
    7. Communication and interviewing; and
    8. Proper completion of a death certificate and assignment of cause of death.
  2. The division shall:
    1. Issue a certificate of satisfactory participation and completion to a coroner, deputy coroner, or medicolegal death investigator who completes the instructional program required under subsection (a) of this section; and
      1. Administer the funds for the payment and reimbursement for materials, speakers, mileage, lodging, meals, the cost of the certificate, and training equipment that are in addition to compensation allowed under §§ 14-14-1203, 14-14-1204, and 14-14-1206.
      2. The division may receive funding for coroner training through grants-in-aid, donations, and the County Coroners Continuing Education Fund.
  3. The commission shall provide death investigation training:
    1. Free of charge to a law enforcement officer, a state death investigator, and an employee of the State Crime Laboratory; and
    2. For a fee under a memorandum of understanding between the commission and the Arkansas Coroner's Association to coroners and deputy coroners.
      1. Within one (1) year of beginning employment as a deputy coroner, a person employed as a deputy coroner after January 1, 2020, shall complete the training required under this section and obtain a certificate under subdivision (b)(1) of this section or present a certificate from the American Board of Medicolegal Death Investigators.
      2. A deputy coroner under subdivision (d)(1)(A) of this section who does not comply with this subsection shall not continue employment or activity as a deputy coroner, including without limitation signing death certificates or assisting in death investigations.
    1. Within one (1) year of the date of employment of a deputy coroner, the coroner shall provide the county judge with the deputy coroner's:
      1. Name;
      2. Address;
      3. Starting date of employment; and
      4. Copy of the certificate under subdivision (d)(1)(A) of this section.

History. Acts 2013, No. 551, § 5; 2019, No. 238, § 1; 2019, No. 910, §§ 5922-5924.

A.C.R.C. Notes. Acts 2019, No. 238, § 2, provided:

“(a) Before January 1, 2021, a person who is employed as a deputy coroner as of January 1, 2020, shall complete the requirements of § 14-15-308.

“(b) A deputy coroner under subsection (a) of this section who does not comply with this section shall not continue employment or activity as a deputy coroner, including without limitation signing death certificates or assisting in death investigations”.

Amendments. The 2019 amendment by No. 238 added (d).

The 2019 amendment by No. 910 substituted “Division of Law Enforcement Standards and Training” for “Arkansas Commission on Law Enforcement Standards and Training” in (a); and substituted “division” for “commission” twice in (b).

14-15-309. Mass fatality resource inventory and mutual aid agreement.

  1. As used in this section:
    1. “Fixed assets” means items that are permanently located but can be made available for use, including without limitation:
      1. Office space;
      2. Body refrigeration units;
      3. Personnel rehabilitation areas; and
      4. Equipment storage facilities;
    2. “Mobile assets” means items that can be transported to an affected area, including without limitation:
      1. Personal protective equipment such as masks, tyvek suits, gloves, boots, environmental protection, and hazards protection;
      2. Investigative equipment such as cameras, measuring devices, collection bags, and labeling devices;
      3. Body recovery equipment such as sheets, body bags, ropes, boards, and stretchers;
      4. Administrative equipment for the purposes of data recording, financial management, and records preservation; and
      5. Vehicular equipment such as cars, trucks, vans, trailers, and boats; and
    3. “Personnel assets” means:
      1. Coroners, deputy coroners, and medicolegal death investigators; and
      2. Other individuals or entities that possess specialized skills necessary for the comprehensive investigation of deaths in a mass fatality incident.
    1. The Department of Health may enter into a mass fatality resource inventory and mutual aid agreement among coroners in this state.
    2. A mass fatality resource inventory and mutual aid agreement under this section is effective when signed by the county judge in a county in which a coroner enters into an agreement under subdivision (b)(1) of this section.
    3. A mass fatality resource inventory and mutual aid agreement under this section may provide for the sharing of fixed assets, mobile assets, and personnel assets.
  2. The signatures of the county judge and the coroner are necessary for a county to pledge its deputies, equipment, and resources to the mass fatality mutual aid agreement.
  3. Only a coroner, deputy coroner, or medicolegal death investigator who receives documentation reflecting satisfactory participation and completion from the commission and is in good standing under this section may be allocated for assignment and duty in the mass fatality resource inventory and mutual aid agreement.
  4. The Department of Health shall maintain records of coroners, deputy coroners, and medicolegal death investigators who have received training and certificates of course completion under this section from the Arkansas Commission on Law Enforcement Standards and Training.

History. Acts 2013, No. 551, § 5.

Subchapter 4 — Recorders

Preambles. Acts 1959, No. 110, contained a preamble which read:

“Whereas, under the present law of this State no notice of the commencement of a bankruptcy proceeding is required to be recorded in any county wherein is located any land in which a bankrupt or a debtor in any proceeding under the act of Congress relating to bankruptcy has any interest, and

“Whereas, an act of Congress, 11 U.S.C. Section 44(g), provides that such notice shall be recorded in any such county when the recording of the same is authorized by state law;

“Now therefore… .”

Effective Dates. Acts 1875, No. 77, § 53: effective on passage.

Acts 1959, No. 168, § 3: Aug. 1, 1959.

Acts 2013, No. 999, § 6: Apr. 8, 2013. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that many instruments affecting title to real estate are being found to not provide constructive notice because of defects in the certificates of acknowledgment; and that this act is immediately necessary to protect property rights and interests. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Publisher's Notes. The clerk of the circuit court shall be ex officio recorder. See Ark. Const., Art. 7, § 19, and § 14-14-1301.

Cross References. Acknowledgment of instruments — Officials authorized to make within the state, § 16-47-202.

Detachment of territory generally — Order for exclusion, § 14-40-1802.

Order of incorporation — Transcript, § 14-38-104.

Case Notes

Applicability.

This subchapter does not apply to promissory notes, and of two assignments of the same note, the first in point of time will take precedence, even though the second was recorded and the first was not. Neal v. Bradley, 238 Ark. 714, 384 S.W.2d 238 (1964).

Sebastian County.

The two districts of Sebastian County are, in effect, separate counties, so far as the recording requirements of § 18-50-103 are involved. Henson v. Fleet Mtg. Co., 319 Ark. 491, 892 S.W.2d 250 (1995).

Uniform Commercial Code.

Sections 14-15-101 et seq. were repealed by the Uniform Commercial Code insofar as they refer to the recording of instruments concerning “goods and chattels” as giving notice to all persons. In re King Furn. City, Inc., 240 F. Supp. 453 (E.D. Ark. 1965).

14-15-401. Duties generally.

    1. There shall be established in each county in this state an office to be styled the county recorder's office, which shall be kept at the seat of justice of each county.
      1. Unless otherwise provided by law, the county recorder is the circuit clerk of the county.
      2. In a county that under law has assigned the duties of the county recorder to the county clerk, all Arkansas Code references to circuit clerk that concern recording functions shall mean the county clerk.
  1. The county recorder:
    1. Shall duly attend to the duties of the county recorder's office;
    2. Shall provide and keep in the county recorder's office well-bound books in which the county recorder shall record in a fair and legible hand all instruments of writing authorized or required to be recorded in the manner provided; and
      1. May implement electronic filing and searching provisions and procedures under the Uniform Real Property Electronic Recording Act, § 14-2-301 et seq.
      2. Unless a county recorder has implemented the Uniform Real Property Electronic Recording Act, § 14-2-301 et seq., the transmission of an electronic document to the county recorder has no legal effect.
      3. A person that seeks to record an electronic document is solely responsible for determining if a county recorder has implemented the Uniform Real Property Electronic Recording Act, § 14-2-301 et seq.

History. Rev. Stat., ch. 124, § 1; C. & M. Dig., §§ 8616, 8617; Pope's Dig., §§ 11208, 11209; A.S.A. 1947, § 12-1001; Acts 2007, No. 734, § 2; 2009, No. 160, § 1.

Amendments. The 2009 amendment added (a)(2) and redesignated the remaining text accordingly.

Cross References. Public records generally, § 14-2-101 et seq.

Case Notes

Salary.

Although the clerk of a circuit court has the dual function of clerk and recorder, he fills but one office, so that a legislative act fixing the salary of the clerk of the circuit court fixes his salary both as clerk and as recorder. Durden v. Greenwood Dist., 73 Ark. 305, 83 S.W. 1048 (1904).

14-15-402. Instruments to be recorded.

  1. It shall be the duty of each recorder to record in the books provided for his or her office all deeds, mortgages, conveyances, deeds of trust, bonds, covenants, defeasances, affidavits, powers of attorney, assignments, contracts, agreements, leases, or other instruments of writing of or writing concerning any lands and tenements or goods and chattels, which shall be proved or acknowledged according to law, that are authorized to be recorded in his or her office.
    1. To be accepted by the county recorder for recording purposes, all documents shall:
      1. Be on eight and one-half by eleven inch (8½"x11") paper;
      2. Have a two and one-half inch (2.5") margin at the right top of the first page, one-half inch (0.5") margin on the sides and bottoms of all pages, and a two and one-half inch (2.5") margin at the bottom of the last page;
      3. Have an area reserved on the top right of the first page for the file mark of the recorder;
      4. Contain the following information:
        1. The title of the document; and
        2. The name of the grantor and grantee, when applicable;
      5. Be acknowledged or otherwise executed as permitted by § 16-47-107 or § 18-12-208; and
      6. Be legible.
      1. The county recorder shall have the discretion to waive the requirements of subdivision (b)(1) of this section for:
        1. Good cause; and
        2. Any document that complies with the Uniform Real Property Electronic Recording Act, § 14-2-301 et seq.
      2. All documents and instruments executed before January 1, 2004, shall be exempt from the requirements of subdivision (b)(1) of this section.
      3. All surveys and plats shall be exempt from the requirements of subdivision (b)(1) of this section.
    2. A county recorder shall not refuse to record a document that has been executed in a manner permitted by § 16-47-107 or § 18-12-208.

History. Rev. Stat., ch. 124, §§ 8, 9; C. & M. Dig., §§ 8624, 8625; Pope's Dig., §§ 11216, 11217; A.S.A. 1947, §§ 16-101, 16-102; Acts 2003, No. 757, § 1; 2005, No. 1428, § 1; 2007, No. 734, § 3; 2013, No. 999, § 5.

Amendments. The 2013 amendment substituted “or otherwise executed as permitted by § 16-47-107 or § 18-12-208” for “in accordance with § 16-47-207” in (b)(1)(E); added (b)(3), and made stylistic changes.

Case Notes

Complaint Not Reduced to Judgment.

As a matter of law, a complaint for money damages not yet reduced to judgment was not a matter of record required to be included in an abstract of title to real property. Bank of Cave City v. Abstract & Title Co., 38 Ark. App. 65, 828 S.W.2d 852 (1992).

Only the filing of a lis pendens against the property can render the complaint a matter of record before it is reduced to judgment, but lis pendens cannot be filed for a complaint merely for a money judgment and not directly affecting the title to the real estate. Bank of Cave City v. Abstract & Title Co., 38 Ark. App. 65, 828 S.W.2d 852 (1992).

Cited: Wasp Oil, Inc. v. Arkansas Oil & Gas, Inc., 280 Ark. 420, 658 S.W.2d 397 (1983).

14-15-403. Instruments affecting title to property.

  1. No instrument by which the title to real estate or personal property, or any interest therein, or lien thereon, is conveyed, created, encumbered, assigned, or otherwise affected or disposed of shall be received for record or filing by the recorder unless:
    1. The name and address of the person who, and the governmental agency, if any, which, prepared the instrument appears on the face of the first page thereof; and
    2. The name is either printed, typewritten, stamped, or signed in a legible manner.
  2. An instrument will be in compliance with this section if it contains a statement in the following form:
  3. The receipt for record or filing of any instrument by the recorder without complying with the provisions of this section shall not prevent the instrument from becoming notice as provided by law.
    1. Any fee charged by the recorder for recording or filing of any instrument which does not conform with the provisions of this section shall be returned by the recorder to the person who paid the fee upon request, if made within six (6) months after recording or filing of the instrument.
    2. If no such request is made within that time, the fee shall be paid into the county general fund by the recorder.
  4. This section does not apply to any instrument executed prior to August 1, 1959, nor to any decree, order, judgment, writ of any court, will, or death certificate.

“This instrument was prepared by , (name) ” (address)

Click to view form.

History. Acts 1959, No. 168, §§ 1, 2; 1961, No. 437, § 1; A.S.A. 1947, §§ 16-118, 16-119.

Cross References. Certification of recorded real estate transfer to tax collector in counties adopting unit tax ledger system, § 26-28-204.

Research References

Ark. L. Rev.

Secured Transactions: Article IX: Part 1, 16 Ark. L. Rev. 108.

Secured Transactions Under the Uniform Commercial Code, 18 Ark. L. Rev. 30.

14-15-404. Effect of recording instruments affecting title to property.

    1. Every deed, bond, or instrument of writing affecting the title, in law or equity, to any real or personal property within this state which is or may be required by law to be acknowledged or proved and recorded shall be constructive notice to all persons from the time the instrument is filed for record in the office of the county recorder of the proper county.
      1. A document filed under the Uniform Real Property Electronic Recording Act, § 14-2-301 et seq., is filed of record within the meaning of this subsection if recorded under § 14-15-407 during the county recorder's regular business hours.
      2. A document received after the county recorder's regular business hours shall be recorded in the order received.
  1. No deed, bond, or instrument of writing for the conveyance of any real estate, or by which the title thereto may be affected in law or equity, made or executed after December 21, 1846, shall be good or valid against a subsequent purchaser of the real estate for a valuable consideration without actual notice thereof or against any creditor of the person executing such an instrument obtaining a judgment or decree which by law may be a lien upon the real estate unless the deed, bond, or instrument, duly executed and acknowledged or proved as required by law, is filed for record in the office of the clerk and ex officio recorder of the county where the real estate is situated.

History. Acts 1846, §§ 1, 2, p. 77; 1846, §§ 1, 2, p. 108; C. & M. Dig., §§ 1536, 1537; Pope's Dig., §§ 1846, 1847; A.S.A. 1947, §§ 16-114, 16-115; Acts 2007, No. 734, § 4.

Publisher's Notes. Acts 1846, § 3, p. 77, and Acts 1846, § 3, p. 108, provided that nothing contained in the acts would be construed to change, or in any manner affect, §§ 14-15-411, 18-40-101, and 18-40-102.

Research References

Ark. L. Notes.

Laurence and Circo, An Exchange of Collegial Memoranda on the Attachment of a Judgment Lien to Real Property Subject to a Buy-Sell Agreement, 2006 Arkansas L. Notes 93.

Ark. L. Rev.

Secured Transactions: Article IX: Part 1, 16 Ark. L. Rev. 108.

Nickles, A Localized Treatise on Secured Transactions — Part 1: Scope of Article 9, 34 Ark. L. Rev. 377.

Case Note, Killam v. Texas Oil & Gas Corp.: A Portrait of Uncertainty for Title Examiners and Mineral Interest Owners, 45 Ark. L. Rev. 679.

U. Ark. Little Rock L. Rev.

Annual Survey of Caselaw, Property Law, 25 U. Ark. Little Rock L. Rev. 1025.

Case Notes

Applicability.

Subsection (b) applies only to instruments touching and affecting real estate and has no applicability to assignments of promissory notes even though the notes are secured by a lien on real estate. Neal v. Bradley, 238 Ark. 714, 384 S.W.2d 238 (1964).

Actual Notice.

Deed for conveyance of real estate, duly executed, is good and valid against creditor of person executing such deed, obtaining a judgment, which, by law, is a lien on real estate, and also against a purchaser of such real estate at a judicial sale under the judgment, if actual notice of the deed is given to the purchaser and to the creditor, or to his attorney of record, or if such deed is filed for record at any time before the sale, though not until after the judgment is rendered and execution levied upon the land; such notice must be given at any time before, or at, the time of the sale under execution, and will be sufficient, though the deed is not produced. Byers v. Engles, 16 Ark. 543 (1855).

Absent recorded notice, a new barn, stockpond, barbed fence, and general clean-up were sufficient facts and circumstances as would put a man of ordinary intelligence and prudence on inquiry, and thus a second purchaser was put on actual notice. Bowen v. Perryman, 256 Ark. 174, 506 S.W.2d 543 (1974).

Judgment was properly awarded to appellee in its quiet title action as appellee's chain of title was superior; evidence showed that appellants' predecessors had actual knowledge of the conveyance of the disputed strip of land to appellee's predecessor, and thus the deed of appellee's predecessor, although recorded later, took priority. Rice v. Welch Motor Co., 95 Ark. App. 100, 234 S.W.3d 327 (2006).

Constructive Notice.

Record of conveyance by mortgagee was not constructive notice to mortgagor. Turman v. Sanford, 69 Ark. 95, 61 S.W. 167 (1901).

Record of deed of owner as conveyed by an alias was constructive notice. Kendall v. J.I. Porter Lumber Co., 69 Ark. 442, 64 S.W. 220 (1901).

Record of deed of growing timber was constructive notice. Kendall v. J.I. Porter Lumber Co., 69 Ark. 442, 64 S.W. 220 (1901).

All persons are affected with notice of original instruments as they are filed for record in the recorder's office. Rowland v. Griffin, 179 Ark. 421, 16 S.W.2d 457 (1929).

An unrecorded deed is not constructive notice to a subsequent bona fide purchaser or mortgagee. Davis v. Burford, 197 Ark. 965, 125 S.W.2d 789 (1939).

Where purchasers of second lien attempted, under the aegis of Arkansas case law, to get around an SBA first lien, they were frustrated where court held their conduct culpable and neglectful in ignoring constructive notice under subsection (a) as well as other knowledge they evidenced of the SBA mortgage. United States v. Hughes, 499 F.2d 322 (8th Cir. 1974).

Recording of lien created by bill of assurance of property owners' association against property as a result of members' delinquent and unpaid assessments constituted constructive notice to all persons. Kell v. Bella Vista Village Property Owners' Ass'n, 258 Ark. 757, 528 S.W.2d 651 (1975).

Facts in bankruptcy trustee's preferential transfer action against two creditor banks demonstrated clearly that the bank's mortgages were granted by and recorded against entities which were not record owners of the property mortgaged; thus, absent any other argument, since the banks' mortgages were not properly recorded against the entities which possessed legal interests in the properties, those mortgages did not affect title to the properties and would not operate as constructive notice under § 18-40-102 and subsection (a) of this section. Rice v. First Ark. Valley Bank (In re May), 310 B.R. 405 (Bankr. E.D. Ark. 2004).

Although the farm argued that, even if the notice was constitutionally insufficient, the railroad's claim to the mineral rights was barred by the one-year limitations period in § 26-37-203, the court found that: (1) this section, which provided that subsequent purchasers of real estate were put on constructive notice of a properly recorded deed, this section did not govern the running of the statute of limitations as to the railroad because it was not a subsequent purchaser of the mineral rights; and (2) imposition of § 26-37-203 presupposed adequate notice to the landowner, and due process required notice reasonably calculated under all of the circumstances to inform the property owner of the taking so that he may object, and if that notice was lacking, the passage of one year from the taking, without more, would not satisfy the requirements of due process. Linn Farms Timber Ltd. P'ship v. Union Pac. R.R., No. 4:09CV00663 JLH, 2010 U.S. Dist. LEXIS 51714 (E.D. Ark. May 25, 2010), aff'd, 661 F.3d 354 (8th Cir. 2011) (decided under prior version of statute).

Recorded affidavit of lost mortgage, with a copy of the mortgage appended, was not constructive notice to a bankruptcy trustee of the mortgagee's interest in the subject property because the affidavit was not an “instrument of writing affecting title,” under subdivision (a)(1) of this section, as (1) the affidavit did not affect title, since the affidavit's purpose was to give notice that there was a mortgage executed which was lost, and (2) an instrument affecting real estate had to be acknowledged before being admitted to record, under § 16-47-101, but the grantor did not acknowledge the affidavit, nor was the grantor required to, as the affidavit was witnessed and notarized only for the purpose of attesting to the signature of the lender's employee who stated the mortgage was lost and the bank claimed an interest in the property, so the trustee, as a bona fide purchaser for value, under 11 U.S.C.S. § 544, could avoid the mortgagee's lien. Wetzel v. Mortgage Elec. Registration Sys., 2010 Ark. 242 (2010).

Transaction between the city and debtor appeared without doubt a deed absolute on its face intended by the parties to be a mortgage, and was treated as such under Arkansas law. Under the provisions of this section, the Lease and Agreement between the City and debtor which was duly recorded was “an instrument of writing affecting title, in law or equity, to any real or personal property” and constituted notice of the writing and was binding on the Trustee; therefore, the Trustee had constructive notice of the deed from debtor to the city and the Lease and Agreement containing the provision to repurchase the property back for a nominal sum because the documents were duly recorded in the records of White County, Arkansas. Ark. Dev. Fin. Auth. v. Rice (In re Yarnell's Ice Cream Co.), 486 B.R. 918 (Bankr. E.D. Ark. 2013).

Chapter 7 trustee was not allowed under 11 U.S.C.S. § 544 to avoid liens which a mortgagee held on real property Chapter 7 debtors owned in Arkansas because he was on notice of the mortgagee's interests; although two mortgages the mortgagee recorded contained only the street address of the debtors' property, the mortgages were not defective, they gave the trustee constructive notice of the mortgagee's liens and imposed a duty on the trustee to conduct an inquiry concerning the mortgagee's interests, and the trustee could have discovered the mortgagee's interests by making an inquiry to the assessor's office where the mortgages were recorded. Lee v. Ocwen Loan Servicing, LLC (In re Savage), 504 B.R. 921 (Bankr. W.D. Ark. 2014).

Fraud.

In fraud actions, for purposes of determining when the statute of limitations begins to run, parties alleging fraud are charged with knowledge of any pertinent real estate conveyances from the time such conveyances are placed in public records, since filing for public record and concealment are mutually exclusive. Hughes v. McCann, 13 Ark. App. 28, 678 S.W.2d 784 (1984).

Although Debtor deeded 600 acres of land to his son for $10 in 1986, for purposes of the Arkansas fraudulent transfer statute, the transfer and the effect upon the debtor and his insolvency status must be analyzed at the time the deed was recorded in 1995. Williams v. Marlar, 246 B.R. 606 (Bankr. W.D. Ark. 2000), aff'd, Williams v. Marlar (In re Marlar), 252 B.R. 743 (B.A.P. 8th Cir. 2000).

Implied Repeal.

Subsection (a) was repealed by the Uniform Commercial Code insofar as it refers to the recording of instruments concerning “goods and chattels” as giving notice to all persons. In re King Furn. City, Inc., 240 F. Supp. 453 (E.D. Ark. 1965).

Instruments Not Recorded.

Grant of mineral deed from person in possession under recorded deed that apparently conveyed title would not be set aside on ground that prior to such deed, the title had been conveyed to the deceased husband of grantor, where deed was lost and never placed of record. Henry v. Texas Co., 201 Ark. 996, 147 S.W.2d 742 (1941).

In suit to establish title to mortgaged land against purchaser at foreclosure sale on ground that, prior to execution of mortgage, plaintiff had deeded land to his wife, evidence was held to show that alleged deed was not recorded and that mortgagee knew nothing about it. Teel v. Harnden, 204 Ark. 103, 161 S.W.2d 1 (1942).

One who takes a deed with knowledge of a prior unrecorded deed to another is in the same position as though the prior deed had been of record. Skelly Oil Co. v. Johnson, 209 Ark. 1107, 194 S.W.2d 425 (1946).

Agreement accepting a new survey as correct property line, notwithstanding existence of fences located elsewhere, which was not recorded until after litigation had arisen, was not valid against persons who had no other knowledge of such agreement. Rindeikis v. Coffman, 231 Ark. 422, 329 S.W.2d 550 (1959).

An assignment of a mortgage need not be recorded to be valid against later claims against the assignor. Bryan v. Easton Tire Co., 262 Ark. 731, 561 S.W.2d 79 (1978).

Obligation to Inquire Not Satisfied.

Where subsequent purchaser was put on notice of prior interest in the property, he did not satisfy his obligation to inquire by consulting his own attorney, or by searching the records. There was no evidence that his attorney had any knowledge of the circumstances, and subsequent purchaser's search of the records was not a diligent inquiry as the “actual notice” exception to the protection afforded by subsection (b) covers situations in which a property interest does not appear in the records. Massey v. Wynne, 302 Ark. 589, 791 S.W.2d 368 (1990).

Recording.

Record of an unacknowledged mortgage is not notice. Challis v. German Nat'l Bank, 56 Ark. 88, 19 S.W. 115 (1892).

In case of contemporaneous conveyances of same land, deed first recorded holds. Penrose v. Doherty, 70 Ark. 256, 67 S.W. 398 (1902); Storthz v. Chapline, 71 Ark. 31, 70 S.W. 465 (1902).

Presumption of delivery of deed from its being recorded was not rebutted by proof that deed was in grantor's possession. Estes v. German Nat'l Bank, 62 Ark. 7, 34 S.W. 85 (1896).

Where purchaser of lands records a deed absolute, and the intent of the parties is established by clear, satisfactory, and convincing evidence that the deed is intended to be a mortgage, the court properly declares the deed a mortgage. Gunnels v. Machen, 213 Ark. 800, 212 S.W.2d 702 (1948).

When a properly executed and properly acknowledged lease is filed for recording, it protects the parties to the lease against intervening rights of third parties, even though it is not properly recorded. Wasp Oil, Inc. v. Arkansas Oil & Gas, Inc., 280 Ark. 420, 658 S.W.2d 397 (1983).

To the extent the borrowers argued that the creditor had a duty to record any assignment of the note or mortgage, there was no such duty, given that a mortgage's efficacy as to the original parties was not diminished if the mortgage went unrecorded, as the purpose of recording was to give constructive notice to subsequent purchasers. Anderson v. CitiMortgage, Inc., 2014 Ark. App. 683, 450 S.W.3d 251 (2014).

In a declaratory judgment action, even if the five-year statute of limitations did not begin to run until there was notice that a first lease was being relied on, a complaint was time-barred due to a recordation of an assignment; the recording served as constructive notice from the time the instrument was filed for record, and the case was filed more than 5 years after an assignment was recorded. The circuit court did not err by treating the claim as raising contract enforcement issues and applying the relevant statutory period of limitations. McDougal v. Sabine River Land Co., 2015 Ark. App. 281, 461 S.W.3d 359 (2015).

Subsequent Purchasers.

A bona fide purchaser of real estate for a valuable consideration who enters into possession acquires a good title against a prior, unrecorded conveyance from the same vendor. Long v. Langsdale, 56 Ark. 239, 19 S.W. 603 (1892).

A subsequent purchaser is not charged with notice of any fact not connected with the course of his title. Abbott v. Parker, 103 Ark. 425, 147 S.W. 70 (1912).

Subsequent purchasers take subject to a lien mentioned in a recorded deed; assignment of such lien need not be recorded. Hebert v. Fellheimer, 115 Ark. 366, 171 S.W. 144 (1914).

Where range was omitted from description, purchaser would not be held to have had notice. Neas v. Whitener-London Realty Co., 119 Ark. 301, 178 S.W. 390 (1915).

Where purchaser quitclaimed back to grantor land erroneously included in his deed and quitclaim deed was recorded prior to the recording of purchaser's deed to a third person and without knowledge of it, original grantor should be regarded as an innocent purchaser for value without notice and entitled to the land. Davis v. Burford, 197 Ark. 965, 125 S.W.2d 789 (1939).

Where warranty deeds executed in 1932 and 1935 were not recorded until December, 1940, grantee who had obtained a deed in March, 1940, without notice of prior deeds, was an innocent purchaser under subsection (b). Sturgis v. Nunn, 203 Ark. 693, 158 S.W.2d 673 (1942).

A deed is effective to convey title upon its delivery to the grantee, whether recorded or not, and is good and valid against a subsequent purchaser for a valuable consideration who has actual knowledge of the deed. Halbrook v. Lewis, 204 Ark. 579, 163 S.W.2d 171 (1942).

A subsequent purchaser who places his deed on record acquires a title superior to a prior purchaser who does not file his deed for record until after the subsequent purchaser has filed his deed for record, if the subsequent purchase was for a valuable consideration and without actual knowledge of the prior conveyance. Halbrook v. Lewis, 204 Ark. 579, 163 S.W.2d 171 (1942).

Under subsection (b), a subsequent purchaser acquires a superior title when he places his title of record before a previous purchaser records his title only where the purchasers derived their interests from a common grantor. Richardson v. Fisher, 236 Ark. 612, 367 S.W.2d 440 (1963).

Where there was an executed contract by both deceased husband and widow that would be specifically enforced in equity against the prior unrecorded deed with deceased remaining in possession of the property and with widow having no knowledge of the unrecorded deed, it placed the widow in the position of being an innocent purchaser for value in possession and with title to her vested by the will relating back to death of decedent and prior to recording of unrecorded deed, and rule that a parol contract to execute a will may be enforced in equity only where the agreement is established by clear, cogent, and convincing testimony would not apply. Hogan v. Hogan, 241 Ark. 377, 407 S.W.2d 735 (1966).

Purchasers held to be innocent purchasers for value and, therefore, not bound by the terms of an unrecorded lease where lease was not recorded and because the circumstances were not such as to put purchasers on notice of the lease. Garmon v. Mitchell, 53 Ark. App. 10, 918 S.W.2d 201 (1996).

Trial court properly quieted title in the subsequent purchasers under the escrow contracts, which were also contracts of sale, because the subsequent purchasers' interests in the property was filed of record before the mortgage holder's later foreclosure action against the original purchaser, who executed a first mortgage which was released, then executed a subsequent mortgage, and the subsequent purchasers were thereby protected by this section. Hatchett v. Terry, 87 Ark. App. 276, 190 S.W.3d 302 (2004).

Court doubts that the principle that an unrecorded deed is not valid against a subsequent purchaser unless he had actual notice of the prior interest applies in mortgage priority disputes, given that every mortgage of real estate shall be a lien on the mortgaged property from the time it is filed in the recorder's office for record, and not before, and case law held that a defective mortgage constituted no notice to third parties of the existence of the mortgage. Ocwen Loan Servicing LLC v. Summit Bank, N.A. (In re Francis), 750 F.3d 754 (8th Cir. 2014).

Sufficiency of Notice.

Evidence sufficient to find that subsequent purchasers of mineral leases had sufficient notice of prior interest to put them on guard for an inquiry. Killam v. Texas Oil & Gas Corp., 303 Ark. 547, 798 S.W.2d 419 (1990).

Subsequent purchasers were not bona fide purchasers because a prior purchaser's possession of the property provided actual notice, and the subsequent purchasers were charged with notice when the land was in possession of someone other than the record owner, even though the subsequent purchasers were not aware of such. However, a fact issue remained as to whether the prior purchaser was in exclusive possession of the property. Walls v. Humphries, 2013 Ark. 286, 428 S.W.3d 517 (2013).

Tax Deeds.

Subsection (b) gives priority to the first recording only as between purchasers deriving their interest from a common grantor. It has no application to an intervening tax deed obtained from a county clerk. Thorne v. Magness, 34 Ark. App. 39, 805 S.W.2d 95 (1991).

Cited: Roach v. Terry, 263 Ark. 774, 567 S.W.2d 286 (1978); Reichenbach v. Kizer, 174 B.R. 997 (Bankr. E.D. Ark 1994).

14-15-405. Master Mortgage or Deed of Trust Recording Act of 1967.

  1. This section may be known and cited as the “Master Mortgage or Deed of Trust Recording Act of 1967”.
    1. An instrument containing a form or forms of covenants, conditions, obligations, powers, and other clauses of a mortgage or deed of trust may be recorded in the registry of deeds or mortgages of any county.
    2. The recorder of the county, upon the request of any person, on tender of the lawful fees therefor shall record the instrument in his or her registry.
    3. Every such instrument shall be entitled on the face thereof as a “Master form recorded by
    4. The instrument need not be acknowledged to be entitled to record.
  2. When the instrument is recorded, the recorder shall index the instrument under the name of the person causing it to be recorded in the manner provided for miscellaneous instruments relating to real estate.
    1. Thereafter any of the provisions of the master form instrument may be incorporated by reference in any mortgage or deed of trust of real estate situated within this state if the reference in the mortgage or deed of trust states:
      1. That the master form instrument was recorded in the county in which the mortgage or deed of trust is offered for record;
      2. The date when and the book and page where the master form instrument was recorded; and
      3. That a copy of the master form instrument was furnished to the person executing the mortgage or deed of trust.
    2. The recording of any mortgage or deed of trust which has so incorporated by reference therein any of the provisions of a master form instrument recorded as provided in this subsection shall have the same effect as if the provision of the master form so incorporated by reference had been set forth fully in the mortgage or deed of trust.
  3. Whenever a mortgage or deed of trust is presented for recording, on which is set forth matter purporting to be a copy or reproduction of the master form instrument or of part thereof, identified by its title as provided in subdivision (b)(3) of this section and stating the date when it was recorded and the book and page where it was recorded, preceded by the words “do not record” or “not to be recorded”, and plainly separated from the matter to be recorded as a part of the mortgage or deed of trust in such manner that it will not appear upon a photographic reproduction of any page containing any part of the mortgage or deed of trust, the matter shall not be recorded by the recorder to whom the instrument is presented for recording. In such a case the recorder shall record only the mortgage or deed of trust apart from the matter and shall not be liable for so doing, any other provisions of law to the contrary notwithstanding.
  4. This section shall be cumulative and supplemental to the laws of this state regarding the recording of instruments and shall repeal only such laws or parts of laws as are specifically in conflict herewith.

(name of person causing the instrument to be recorded).”

History. Acts 1967, No. 237, §§ 1-6; A.S.A. 1947, §§ 16-121 — 16-125, 16-125n.

14-15-406. Recording certified copies of bankruptcy proceedings.

  1. The recorder of deeds of any county where any land in which a bankrupt or a debtor in any proceeding under the act of United States Congress relating to bankruptcy has any interest is located shall receive for record, and record, a certified copy of any pleading, decree, order, or other paper filed in the proceeding which any act of the United States Congress provides may be recorded in the records of such a county.
  2. The record shall impart notice to all persons of the bankruptcy proceeding and of the contents of the certified copy.
  3. The certified copy of the pleading, decree, order, or other paper shall be recorded and indexed in the record of deeds in the office of the recorder in the name of the bankrupt or debtor as grantor, and in the name of the trustee or receiver in bankruptcy or other person, if any, to whom the interest, or any part thereof, may pass by virtue of law or of the decree, order, or other paper as grantee.
  4. The recorder shall charge and collect the same fee for filing and recording any such document as is provided by law for filing, indexing, and recording deeds.

History. Acts 1959, No. 110, § 1; A.S.A. 1947, § 16-120.

14-15-407. Manner of recording.

Without delay, each recorder shall record every deed, mortgage, conveyance, deed of trust, bond, or other writing delivered to him or her for record with the acknowledgment, proofs, and certificates written on or attached to the writing and all other papers therein referred to and annexed thereto in the order and as of the time when the writing has been delivered for record by:

  1. Entering them word for word and letter for letter;
  2. Noting at the foot of each record all interlineations, erasures, and words visibly written on erasures; and
  3. Noting at the foot of the record the date of the month and year when the instrument so recorded was delivered to him or her or deposited in his or her office for record.

History. Rev. Stat., ch. 124, § 11; C. & M. Dig., § 8629; Pope's Dig., § 11221; A.S.A. 1947, § 16-105.

Case Notes

Acknowledgment.

Fact that recorder fails to record acknowledgment is not a valid reason to strike instrument from record book. Wasp Oil, Inc. v. Arkansas Oil & Gas, Inc., 280 Ark. 420, 658 S.W.2d 397 (1983).

Interlineations.

Where record establishing a lost deed shows no interlineations, none will be presumed to have been made. Wasson v. Lillard, 189 Ark. 546, 74 S.W.2d 637 (1934).

14-15-408. Tender of fees required.

No recorder shall be required to endorse any instrument presented to him or her for record as filed or to record the instrument unless the fees for recording and the tax thereon, if any, are first tendered to him or her, nor shall any recorder be subject to any action or liable in any manner for a failure or refusal to record any instrument unless the fees are first tendered.

History. Acts 1875, No. 77, § 16, p. 167; C. & M. Dig., § 4584; Pope's Dig., § 5670; A.S.A. 1947, § 16-113.

Cross References. Credit for fees prohibited — Exception, § 21-7-209.

Fees of recorder, § 21-6-306.

Case Notes

Cited: First Nat'l Bank v. Bedford, 83 Ark. 109, 102 S.W. 683 (1907).

14-15-409. Entry of instruments.

When any deed, mortgage, deed of trust, bond, conveyance, or other instrument of writing authorized by law to be recorded is deposited in the recorder's office for record, the recorder shall enter in a book to be provided for that purpose in alphabetical order:

  1. The names of the persons;
  2. The date and the nature of the instrument; and
  3. The time of delivery for record.

History. Rev. Stat., ch. 124, § 10; C. & M. Dig., § 8628; Pope's Dig., § 11220; A.S.A. 1947, § 16-103.

14-15-410. Receipt for instrument filed.

When any deed, mortgage, deed of trust, bond, conveyance, or other instrument of writing authorized by law to be recorded shall be deposited in the recorder's office for record, the recorder shall give to the person delivering the instrument, if required, a receipt specifying the particulars of it.

History. Rev. Stat., ch. 124, § 10; C. & M. Dig., § 8628; Pope's Dig., § 11220; A.S.A. 1947, § 16-103.

14-15-411. Endorsement of filing time.

  1. It shall be the duty of the recorder to endorse the precise time the instrument is filed for record in his or her office on every deed, bond, or instrument of writing affecting the title in law or equity to any property, real or personal, within this state which is or may be required by law to be acknowledged or proved and recorded.
  2. It shall be the duty of the recorder to endorse on every mortgage filed in his or her office for record, and note in the record, the precise time the mortgage was filed for record.

History. Rev. Stat., ch. 101, § 3; Acts 1846, § 1, p. 77; 1846, § 1, p. 108; C. & M. Dig., §§ 1536, 7383; Pope's Dig., §§ 1846, 9437; A.S.A. 1947, §§ 16-104, 16-114.

Publisher's Notes. Acts 1846, § 3, p. 77, and Acts 1846, § 3, p. 108, provided that nothing contained in the acts would be construed to change, or in any manner affect this section or §§ 18-40-101 and 18-40-102.

Case Notes

Acknowledgment.

Fact that recorder fails to record acknowledgment is not a valid reason to strike instrument from record book. Wasp Oil, Inc. v. Arkansas Oil & Gas, Inc., 280 Ark. 420, 658 S.W.2d 397 (1983).

14-15-412. Certification of recording.

  1. Every deed, mortgage, conveyance, deed of trust, bond, or other instrument of writing shall be considered as recorded from the time it was delivered for record.
  2. The recorder shall certify and attach to every such deed, mortgage, conveyance, deed of trust, bond, and other instrument of writing so recorded:
    1. The day, month, and year when he or she received it; and
    2. The book and page in which it is recorded.

History. Rev. Stat., ch. 124, § 12; C. & M. Dig., § 8630; Pope's Dig., § 11222; A.S.A. 1947, § 16-106.

Cross References. Attachment of mortgage liens when recorded, § 18-40-102.

Case Notes

Delivered for Record.

A mortgage is filed within the meaning of this section when it is delivered to the proper officer and by him received for the purpose of being recorded. Case & Co. v. Hargadine, 43 Ark. 144 (1884).

In counties where there are two districts, delivery to the recorder or his deputy without instructions is prima facie delivery for filing in the district where delivered. Beaver v. Frick Co., 53 Ark. 18, 13 S.W. 134 (1890).

14-15-413. Return of instrument.

When recorded, the recorder shall deliver the deed, mortgage, conveyance, deed of trust, bond, or other instrument of writing to the party entitled to the instrument on his or her order.

History. Rev. Stat., ch. 124, § 12; C. & M. Dig., § 8630; Pope's Dig., § 11222; A.S.A. 1947, § 16-106.

14-15-414. Indexes to record books.

    1. Each recorder shall provide and keep in the recorder's office a well-bound book and make and enter in alphabetical order in the book an index to all books of record wherein deeds, mortgages, or other instruments in writing concerning lands and tenements are recorded, distinguishing the books and pages in which every deed or writing is recorded.
    2. The index shall contain:
      1. The names of the several grantors and grantees in alphabetical order;
      2. In case the deed is made by a sheriff, the name of the sheriff and the defendant in the execution;
      3. If by executors or administrators, their names and the names of their testator or intestate;
      4. If by attorney, the name of the attorney and his or her constituent; and
      5. If by a commissioner, the name of the commissioner and the person whose estate is conveyed.
    3. Each recorder shall make a reference in the several indexes of all deeds and conveyances that may be recorded, so as to afford, at all times, an easy reference to the records.
      1. If an assignment or a satisfaction or release of a mortgage, deed of trust, or other lien is presented for recording, the assignment, satisfaction, or release shall state:
        1. The date the mortgage, deed of trust, or other lien was recorded; and
        2. The instrument number, book and page numbers, or other recording reference at which the mortgage, deed of trust, or other lien appears of record.
      2. The recorder shall note in the index of the book or record in which the assignment, satisfaction, or release is recorded:
        1. The book and page numbers, instrument number, or other recording reference for the mortgage, deed of trust, or other lien assigned, satisfied, or released; and
        2. The name of the mortgagor or grantor under which the mortgage, deed of trust, or other lien is indexed.
  1. In a similar manner, each recorder shall make, keep, and preserve:
    1. A full and perfect alphabetical index to all books of record in his or her office in which all deeds and instruments of writing in relation to personal property, marriage contracts, certificates of marriage, and all other papers are recorded; and
    2. A similar index of all the books of record in which commissions and official bonds are recorded, the name of the officers appointed, the obligors in any bond recorded, and a reference to the book and page where they are recorded.

History. Rev. Stat., ch. 124, §§ 13-16; C. & M. Dig., §§ 8631-8634; Pope's Dig., §§ 11223-11226; A.S.A. 1947, §§ 16-107 — 16-110; Acts 2003, No. 1173, § 1.

Cross References. Index of lis pendens notices, § 16-59-104.

Research References

U. Ark. Little Rock. L. Rev.

Survey of Legislation, 2003 Arkansas General Assembly, Local Government, Information Regarding Assignment of Liens, 26 U. Ark. Little Rock. L. Rev. 434.

14-15-415. Destruction of chattel mortgages.

Circuit clerks are authorized to destroy all chattel mortgages previously filed where the due date of the obligation secured has expired six (6) years or more prior to date of destruction, together with all bound records of the chattel mortgages containing the index or abstract thereof, except such records as are utilized for the purpose of abstracting claims of wheelwright liens.

History. Acts 1975, No. 296, § 1; A.S.A. 1947, § 16-101n.

Publisher's Notes. Clerk of the circuit court is ex officio recorder. See Publisher's Notes at beginning of this subchapter.

14-15-416. Failure to perform duty.

Any recorder to whom any deed or other writing proved or acknowledged according to law is delivered for record shall forfeit and pay any sum not exceeding five hundred dollars ($500), to be recovered by action on his or her official bond, one-half (½) to the use of the county and one-half (½) to the use of the person who shall sue for it, and he or she shall also be liable to any person injured for all damages he or she may have sustained thereby, to be recovered by action on the official bond of the recorder if the recorder:

  1. Neglects or refuses to make an entry or give a receipt therefor, as required by §§ 14-15-402, 14-15-409, and 14-15-410;
  2. Neglects or refuses to record the deed or writing within a reasonable time after receiving the deed or writing;
  3. Records any deed or instrument of writing before another first deposited in his or her office and entitled to be recorded;
  4. Records any deed or other writing incorrectly; or
  5. Neglects or refuses to provide and keep in his or her office such indices as required by § 14-15-414.

History. Rev. Stat., ch. 124, § 17; C. & M. Dig., § 8635; Pope's Dig., § 11227; A.S.A. 1947, § 16-111.

14-15-417. Willful neglect of duty.

If any recorder willfully neglects to perform any of the duties required of him or her by §§ 14-15-401, 14-15-402, 14-15-407, 14-15-40914-15-414, and 14-14-41614-15-420 or willfully performs them in any other manner than is required by law, he or she shall be deemed guilty of a misdemeanor in office and shall be proceeded against accordingly.

History. Rev. Stat., ch. 124, § 18; C. & M. Dig., § 8636; Pope's Dig., § 11228; A.S.A. 1947, § 16-112.

14-15-418. Action on bond.

If any person shall be damaged by the conduct of the recorder, that person may commence an action on his or her official bond in the name of the state to his or her use.

History. Rev. Stat., ch. 124, § 3; C. & M. Dig., § 8619; Pope's Dig., § 11211; A.S.A. 1947, § 12-1003.

Cross References. Actions on official bonds, § 16-107-201 et seq.

14-15-419. Seal.

The seal of the circuit court shall be the seal of the recorder and shall be used as such in all cases in which his or her official seal may be required.

History. Rev. Stat., ch. 124, § 6; C. & M. Dig., § 8622; Pope's Dig., § 11214; A.S.A. 1947, § 12-1006.

Cross References. Seal of circuit court, § 16-10-110.

14-15-420. Books and accounts.

Each recorder shall provide suitable books for his or her office and keep regular and faithful accounts of the expenses thereof. These accounts shall be audited by the county court and be paid out of the county treasury.

History. Rev. Stat., ch. 124, § 7; C. & M. Dig., § 8623; Pope's Dig., § 11215; A.S.A. 1947, § 12-1007.

Cross References. Bonds of state, county, and district officers generally, § 21-2-107.

Subchapter 5 — Sheriffs — Generally

Effective Dates. Acts 1883, No. 114, § 226: effective on passage.

Acts 1975 (Extended Sess., 1976), No. 1172, § 3: Feb. 11, 1976. Emergency clause provided: “It is hereby found and determined by the General Assembly that new and expanded jail facilities have recently been constructed and placed into use in certain counties in the State; that the operation of such new and expanded facilities was not taken into consideration in prescribing the number of positions and compensation of deputies and other employees of the county sheriff's office when Act 830 of 1975 was enacted; that in such counties, it is essential that the sheriff's office be provided additional personnel in order that the new and expanded facilities may be utilized to their fullest capability; that this Act is designed to authorize the quorum court in such counties to provide such necessary additional positions and to prescribe the compensation therefor and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1977, No. 237, § 3: Feb. 23, 1977. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that due to the increase in crime rate, especially in suburban areas, it is necessary to expand the authority of deputy sheriffs to provide more adequate protection to the citizens of this State, and that crime protection can be afforded planned communities by their employment of deputy sheriffs as security officers. Therefore, an emergency is declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall take effect and be in force from the date of its approval.”

Acts 1983, No. 171, § 3: Feb. 14, 1983. Emergency clause provided: “It is hereby found and determined by the General Assembly that Arkansas Statue 12-1107(b) presently provides that deputy sheriffs are authorized to exercise all powers as deputy sheriffs while in the course of their employment as security officers for property owners associations; that the wording regarding their employment as security officers has resulted in confusion regarding the authority and duty of the Law Enforcement Training Academy to accept and train such deputies; that the elimination of such wording will result in the Law Enforcement Training Academy clearly having the authority and duty to train such deputy sheriffs; and that this Act is immediately necessary to clarify this law. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Research References

Am. Jur. 70 Am. Jur. 2d, Sheriff, § 1 et seq.

C.J.S. 80 C.J.S., Sheriffs & C., § 1 et seq.

14-15-501. Conservator of peace — Recognizances.

  1. Each sheriff shall be a conservator of the peace in his or her county and shall cause all offenders against the laws of this state, in his or her view or hearing, to enter into recognizance to keep the peace and appear at the next term of the circuit court of the county and, on the failure of the offender to enter into recognizance, to commit him or her to jail.
  2. The sheriff shall certify to the clerk of the circuit court all recognizances taken by him or her.

History. Rev. Stat., ch. 140, §§ 8, 9; C. & M. Dig., §§ 9156, 9157; Pope's Dig., §§ 11817, 11818; A.S.A. 1947, §§ 12-1108, 12-1109.

Case Notes

Municipal Courts.

Sheriff may serve process of municipal court. Miller County v. Magee, 177 Ark. 752, 7 S.W.2d 973 (1928).

14-15-502. Validity of bonds.

No bond entered into by a sheriff shall be deemed void for not having the approval of the court or clerk endorsed thereon.

History. Rev. Stat., ch. 140, § 4; C. & M. Dig., § 9150; Pope's Dig., § 11812; A.S.A. 1947, § 12-1103.

14-15-503. Powers of deputies.

  1. Every deputy sheriff appointed as provided by law shall possess all the powers of his or her principal and may perform any of the duties required by law to be performed by the sheriff.
  2. Deputy sheriffs are authorized to make arrests for misdemeanor offenses and felony offenses and exercise all other powers as deputy sheriffs while in the course of their employment for planned community property owners' associations or suburban improvement districts.
  3. Every deputy sheriff so appointed shall possess the minimum qualifications as provided by law.
  4. Planned community property owners' associations shall purchase and maintain liability insurance to protect deputy sheriffs employed by such associations. Liability insurance coverage shall be in a principal amount of no less than fifty thousand dollars ($50,000) for each deputy sheriff employed by the association.

History. Rev. Stat., ch. 140, § 7; C. & M. Dig., § 9155; Pope's Dig., § 11816; Acts 1977, No. 237, § 1; 1983, No. 171, § 1; 1985, No. 561, § 1; A.S.A. 1947, § 12-1107.

Research References

U. Ark. Little Rock L.J.

Seventeenth Annual Survey of Arkansas Law — Criminal Law, 17 U. Ark. Little Rock L.J. 448.

Case Notes

In General.

This section is merely declaratory of the common law. Davidson v. Chandler, 206 Ark. 375, 175 S.W.2d 567 (1943) (decision prior to 1977 amendment).

Appointment of Deputies.

Appointment of deputy expires with the term of the principal; on reelection of principal, new appointment is necessary. Greenwood v. State, 17 Ark. 332 (1856).

This section refers to general deputies and does not take away the common law right of a sheriff to depute his authority to another for a particular service. Putman v. State, 49 Ark. 449, 5 S.W. 715 (1887).

Sheriff was entitled to appoint deputy to work with Junior Deputy Sheriffs League if quorum court made an appropriation to pay the salary of the deputy, and county court was required to allow deputy's claim for salary. Parker v. Adkins, 223 Ark. 455, 266 S.W.2d 799 (1954).

Following a controlled-drug buy, defendant was arrested by Monticello, Arkansas, officers outside county limits; cocaine, the buy money, and drug paraphernalia were retrieved by the officers. Defendant was not entitled to suppress the evidence even though the officers were outside their jurisdiction; the officers carried commission cards which appointed them to act as deputies in Drew County, Arkansas, under § 14-15-503. Trotter v. State, 99 Ark. App. 37, 256 S.W.3d 521 (2007).

Authority of Deputies.

A deputy sheriff is not, by reason of such appointment, authorized to act as deputy collector, although both offices are held by his principal. Crowell v. Barham, 57 Ark. 195, 21 S.W. 33 (1893); Boone County Bank v. Eoff, 66 Ark. 321, 50 S.W. 688 (1899).

A deputy sheriff cannot, as such, engage to guard the property of a private person not in the custody of the law. Saint Louis, I.M. & S. Ry. v. Hackett, 58 Ark. 381, 24 S.W. 881 (1894).

Where sheriff appointed a deputy and signed a card for identification purposes, the introduction of the card in evidence was not prejudicial when the evidence showed that the deputy acted and assumed he had authority to make an arrest for a traffic violation. Wilkerson v. State, 212 Ark. 603, 206 S.W.2d 758 (1947).

As a sheriff is given the legislative authority to be a conservator of the peace in his county under § 14-15-501, the same is true of a deputy sheriff employed by a planned community, for he is likewise authorized to stand in the stead of his sheriff and discharge his duties throughout his county. Gritts v. State, 315 Ark. 1, 864 S.W.2d 859 (1993).

Deputies employed by planned communities have the authority to arrest. Gritts v. State, 315 Ark. 1, 864 S.W.2d 859 (1993).

Lieutenant did not have a letter from the director of the Arkansas State Police authorizing his activities, but he was working interdiction on the interstate to locate drugs in vehicles as a deputy sheriff commissioned by the county sheriff's department, he produced his identification card showing his commission dates, and he testified that when he discovered defendant appeared to be intoxicated, he notified another lieutenant who was specifically working driving while intoxicated investigations; there was no clear error in the trial court's finding that the lieutenant was acting on behalf of the county when he conducted the traffic stop. Batchelor v. State, 2014 Ark. App. 682, 450 S.W.3d 245 (2014).

Legislative Intent.

The legislature intended to provide all deputy sheriffs with the power to perform all duties as required by law to be performed by a sheriff, and, in addition, these powers are specifically provided to deputy sheriffs while in the course of their employment for planned community property owners associations. Gritts v. State, 315 Ark. 1, 864 S.W.2d 859 (1993).

Liability of Sheriffs.

Sheriff is liable for unjustifiable assault of his deputy while in discharge of his duty. Edgin v. Talley, 169 Ark. 662, 276 S.W. 591 (1925), overruled in part, Dillard v. State, 260 Ark. 743, 543 S.W.2d 925 (Ark. 1976).

Sheriff is not liable on account of his deputy's negligence in driving car on way to make an arrest. Usrey v. Yarnell, 181 Ark. 804, 27 S.W.2d 988 (1930).

The general rule is that for all civil purposes, the acts of a deputy sheriff are those of his principal; hence, a sheriff is liable for the act, default, tort, or other misconduct done or committed by his deputy, colore officii. Davidson v. Chandler, 206 Ark. 375, 175 S.W.2d 567 (1943).

Where citizen, who attempted to stop unjustified beating of elderly man by deputy sheriff following automobile collision while deputy was transporting prisoners to court, was killed by the deputy, sheriff was held not liable, since the act of the deputy was not, on the facts presented, done under the color of his office. Davidson v. Chandler, 206 Ark. 375, 175 S.W.2d 567 (1943).

Under the common law, a sheriff is liable for the actions of his appointed deputies and has control over their selection and retention. Dilday v. State, 300 Ark. 249, 778 S.W.2d 618 (1989).

Cited: Brenneman v. State, 264 Ark. 460, 573 S.W.2d 47 (1978); Pipes v. State, 22 Ark. App. 235, 738 S.W.2d 423 (1987).

14-15-504. Additional personnel for new jails.

In any county in this state in which newly constructed jail facilities have been put into use since November 1, 1975, the quorum court of the county is authorized to provide additional positions for the county sheriff's office, in addition to those positions authorized in Acts 1975, No. 830 [repealed], and to prescribe the compensation and allowances for persons holding such positions.

History. Acts 1975 (Extended Sess., 1976), No. 1172, § 1; A.S.A. 1947, § 12-1119.

Publisher's Notes. Acts 1975, No. 830, referred to in this section, was repealed by Acts 1977, No. 742, § 117.

14-15-505. Settlement moneys received or due.

  1. It shall be the duty of a clerk of a court of record, at each term thereof, to settle with the sheriff of each county for all moneys received by him or her, or which he or she ought to have collected for the use of the county and which have not been accounted for. He or she shall make out two (2) separate lists of all sums chargeable to any sheriff and payable to any county, specifying on what account, and certify them under the seal of the court.
  2. One (1) of the lists so certified shall be immediately transmitted to the clerk of the county court to which the sums are payable, who shall immediately charge it accordingly, and the other shall be transmitted to the treasurer of the county.

History. Acts 1883, No. 114, §§ 182, 183, p. 199; C. & M. Dig., §§ 9163, 9164, 10144, 10145; Pope's Dig., §§ 11824, 11825, 13926, 13927; A.S.A. 1947, §§ 12-1111, 12-1112.

Cross References. State and local officers — Income and expenditures, § 21-7-201 et seq.

Subchapter 6 — Sheriffs — Civil Service System

14-15-601 — 14-15-619. [Repealed.]

Publisher's Notes. This subchapter was repealed by Acts 1987, No. 657, § 1. The subchapter was derived from the following sources:

14-15-601. Acts 1977, No. 952, § 17; A.S.A. 1947, § 12-1136.

14-15-602. Acts 1977, No. 952, § 1; 1981, No. 705, § 1; 1981, No. 966, § 1; 1983, No. 190, § 1; 1985, No. 395, § 1; A.S.A. 1947, § 12-1120.

14-15-603. Acts 1977, No. 952, § 14; A.S.A. 1947, § 12-1133.

14-15-604. Acts 1977, No. 952, § 18; A.S.A. 1947, § 12-1137.

14-15-605. Acts 1977, No. 952, § 1; 1981, No. 705, § 1; 1981, No. 966, § 1; 1983, No. 190, § 1; 1985, No. 395, § 1; A.S.A. 1947, § 12-1120.

14-15-606. Acts 1977, No. 952, § 1; 1981, No. 705, § 1; 1981, No. 966, § 1; 1983, No. 190, § 1; 1985, No. 395, § 1; A.S.A. 1947, § 12-1120.

14-15-607. Acts 1977, No. 952, § 2; 1983, No. 190, § 2; A.S.A. 1947, § 12-1121.

14-15-608. Acts 1977, No. 952, § 3; A.S.A. 1947, § 12-1122.

14-15-609. Acts 1977, No. 952, § 4; A.S.A. 1947, § 12-1123.

14-15-610. Acts 1977, No. 952, § 5; A.S.A. 1947, § 12-1124; Acts 1987, No. 332, § 1.

14-15-611. Acts 1977, No. 952, § 6; A.S.A. 1947, § 12-1125.

14-15-612. Acts 1977, No. 952, § 10; A.S.A. 1947, § 12-1129.

14-15-613. Acts 1977, No. 952, § 9; A.S.A. 1947, § 12-1128.

14-15-614. Acts 1977, No. 952, § 8; A.S.A. 1947, § 12-1127.

14-15-615. Acts 1977, No. 952, § 13; A.S.A. 1947, § 12-1132.

14-15-616. Acts 1977, No. 952, § 16; A.S.A. 1947, § 12-1135.

14-15-617. Acts 1977, No. 952, §§ 7, 15; A.S.A. 1947, §§ 12-1126, 12-1134.

14-15-618. Acts 1977, No. 952, § 12; A.S.A. 1947, § 12-1131.

14-15-619. Acts 1977, No. 952, § 11; A.S.A. 1947, § 12-1130.

Subchapter 7 — County Surveyors

Cross References. State and local officers — Income and expenditures, § 21-7-201 et seq.

Field Notes and records — Fees for copies, § 22-5-704.

Delivery of records to successor, § 21-12-401 et seq.

Fees for county surveyors, § 21-6-303.

Furnishing accurate description of all tracts by county assessor, § 26-26-717.

County timber inspector, § 15-32-201 et seq.

14-15-701. Qualifications.

No person shall be eligible to seek or hold the office of county surveyor unless the person is registered as a professional surveyor by the State Board of Licensure for Professional Engineers and Professional Surveyors.

History. Acts 1963, No. 193, § 1; 1985, No. 549, § 1; A.S.A. 1947, § 12-1222; Acts 2005, No. 1178, § 2.

Publisher's Notes. Acts 1985, No. 549, § 2, provided that any person having held the office of county surveyor in any county in this state on June 28, 1985, shall be registered as a land surveyor by the State Board of Registration for Professional Engineers and Land Surveyors if the person: (1) Files an application with the board for registration; (2) Furnishes satisfactory proof that the applicant is either registered as a professional engineer or has had at least two years of experience as a practical surveyor; and (3) Pays an application fee of $35.00.

Cross References. Surveyors, § 17-48-101 et seq.

14-15-702. Duties generally.

It shall be the duty of the county surveyor to execute all orders directed to him or her by any court of record for surveying or resurveying any tract of land, the title of which is in dispute or in litigation before the court, and to obey all orders of survey for the partition of real estate, and also to accompany viewers and reviewers of roads for the purpose of running and measuring any proposed road, whenever required by the viewers or reviewers.

History. Rev. Stat., ch. 40, § 5; C. & M. Dig., § 1888; Pope's Dig., § 2405; A.S.A. 1947, § 12-1205.

14-15-703. Chainmen.

The necessary chainmen shall be employed by the person wanting surveying done, but they shall be good and disinterested persons, to be approved by the surveyor, and shall be sworn by the surveyor to measure justly and exactly, according to the best of their abilities.

History. Rev. Stat., ch. 40, § 17; C. & M. Dig., § 1900; Pope's Dig., § 2417; A.S.A. 1947, § 12-1204.

14-15-704. Appointment of another surveyor.

In all cases where the county surveyor may be interested in any survey which is required to be made by any court, the court shall direct the survey to be made by some competent person. The person so appointed shall have power to administer the necessary oaths to the chainmen, and shall return the survey under oath, and shall be entitled to the same fees for his or her services as the county surveyor would be entitled to receive for similar services.

History. Rev. Stat., ch. 40, § 19; C. & M. Dig., § 1902; Pope's Dig., § 2419; A.S.A. 1947, § 12-1206.

14-15-705. Survey of lands sold for taxes.

It shall be the duty of the county surveyor to survey all lands sold for taxes in his or her county on the application of any person producing to him or her a certificate of purchase from the officer by whom the lands may have been sold.

History. Rev. Stat., ch. 40, § 4; C. & M. Dig., § 1887; Pope's Dig., § 2404; A.S.A. 1947, § 12-1207.

14-15-706. Survey of public land.

  1. Any person who may have entered any of the public lands of the United States, having received from the proper officer a certificate of entry and desiring his or her lands surveyed and laid off according to the certificate, may apply to the county surveyor for that purpose, and the county surveyor shall make a survey in accordance with the entry.
  2. Before the county surveyor shall proceed to survey any such tract of land, he or she shall be satisfied that all persons owning lands adjoining and who may be in any manner affected by the survey have been notified to attend and be present at the surveying thereof.
  3. It shall be the duty of each county surveyor, when subdividing any section or part of a section of land originally surveyed under the authority of the United States, to make his or her survey conformably to the original survey.

History. Rev. Stat., ch. 40, §§ 6-8; C. & M. Dig., §§ 1889-1891; Pope's Dig., §§ 2406-2408; A.S.A. 1947, §§ 12-1208 — 12-1210.

Case Notes

Applicability.

Where facts are such as to lead to the conclusion that a government survey, if made at all, was made on paper only, this section does not apply. Luther v. Denny, 175 Ark. 846, 1 S.W.2d 6 (1927).

Errors.

Where the official government survey establishes the section and quarter-section corners, the sections will stand though erroneous, but a deficiency or overplus in a quarter section will be apportioned among the subdivisions of which it is composed. Tolson v. Southwestern Imp. Ass'n, 97 Ark. 193, 133 S.W. 603 (1911).

Evidence.

The plaintiffs in a boundary line dispute failed to satisfy their burden of persuasion by a preponderance of the evidence where their surveyor did not consult original field notes before making his survey and the survey offered in evidence by the defendants was a certified copy of a survey by the county surveyor and was consistent with two earlier surveys by two previous county surveyors. Forshee v. Canard, 488 F. Supp. 521 (E.D. Ark. 1980).

14-15-707. Establishment of corners.

For the purpose of perpetuating every survey, the surveyor shall establish his or her corners by taking bearings on trees and noting particularly their course and distance from the corner. When there are no trees within a reasonable distance, he or she shall perpetuate his or her corners by erecting mounds of turf at least two and one-half feet (2½') at the base and two feet (2') high. In lieu of mounds, stones may be planted in the ground to a depth not less than twelve inches (12"), which shall not be less than eighteen inches (18") long, eight inches (8") wide, and three inches (3") thick. The stones shall be described in the field book.

History. Rev. Stat., ch. 40, § 9; C. & M. Dig., § 1892; Pope's Dig., § 2409; A.S.A. 1947, § 12-1211.

14-15-708. Calculating tract contents.

All calculations to ascertain the content of any tract of land by any county surveyor or other person shall be made by differences of latitude and departure.

History. Rev. Stat., ch. 40, § 20; C. & M. Dig., § 1903; Pope's Dig., § 2420; A.S.A. 1947, § 12-1212.

14-15-709. Instruments required — Record book.

  1. It shall be the duty of each county surveyor to furnish himself or herself with a compass of approved construction, having a nonius division; also, a two-pole chain of fifty (50) links, and a well-bound book, in which he or she shall carefully and legibly record and note down every survey made by him or her, giving the name of the person the survey of whose lands is recorded, and describing as near as practicable, the metes and bounds of the tract, and noting the date on which the survey was made.
  2. The record book required by this section to be kept by each county surveyor shall be furnished at the expense of the county.
  3. The record shall be subject to the inspection of every person who may deem himself or herself interested in the land record.

History. Rev. Stat., ch. 40, §§ 10, 11, 21; C. & M. Dig., §§ 1893, 1894, 1904; Pope's Dig., §§ 2410, 2411, 2421; A.S.A. 1947, §§ 12-1215 — 12-1217.

Publisher's Notes. Revised Stat., ch. 40, § 22, provided that the provisions of the act should extend to all county surveyors who had previously been, as those who were thereafter, elected.

Case Notes

Cited: Sherrin v. Coffman, 143 Ark. 8, 219 S.W. 348 (1920).

14-15-710. Delivery of records to successor.

  1. It shall be the duty of the county surveyor, or other person having the official record of the surveyor in his or her possession, to deliver up the record to his or her successor whenever he or she may be applied to for that purpose.
  2. If the surveyor, or the person having the possession of the record, shall refuse to deliver it to such successor when demanded, he or she shall forfeit and pay the sum of one dollar ($1.00) per day for every day he or she may retain it after demanded, to be recovered by a civil action before any justice of the peace, in the name of any person who may sue for it, one-half (½) to the use of the person suing and one-half (½) to the use of the county.

History. Rev. Stat., ch. 40, §§ 12, 13; C. & M. Dig., §§ 1895, 1896; Pope's Dig., §§ 2412, 2413; A.S.A. 1947, §§ 12-1218, 12-1219.

14-15-711. Conclusiveness of official survey.

No act or record by any county surveyor, or his or her deputy, shall be conclusive, but may be reviewed by any competent tribunal in any case where the correctness thereof may be disputed.

History. Rev. Stat., ch. 40, § 15; C. & M. Dig., § 1898; Pope's Dig., § 2415; A.S.A. 1947, § 12-1221.

Case Notes

Prima Facie Evidence.

Preponderance of evidence, including survey by a duly qualified surveyor, overcomes the prima facie evidence of the correctness of a boundary line established by the introduction of the certificate of survey by a county surveyor. Mason v. Peck, 239 Ark. 208, 388 S.W.2d 84 (1965).

A state statute specifying that a certain record shall be prima facie evidence is binding upon a federal court, where the statute concerns not merely the admissibility of evidence (the certified copy of the county surveyor's record would be admissible whether such a state statute existed or not), but rather the legal effect of a certain type of survey in a case involving the title to land, traditionally a matter of state concern. Forshee v. Canard, 488 F. Supp. 521 (E.D. Ark. 1980).

If a certified copy of the official record of a county surveyor, as distinguished from his testimony only or a mere plat signed by him, is offered in evidence, then the corners and lines shown therein are established, unless the other party shows, by a preponderance of the evidence, that the location of the true line is other than as shown in the survey thus certified. Forshee v. Canard, 488 F. Supp. 521 (E.D. Ark. 1980).

The plaintiffs in a boundary line dispute failed to satisfy their burden of persuasion by a preponderance of the evidence where their surveyor did not consult original field notes before making his survey and the survey offered in evidence by the defendants was a certified copy of a survey by the county surveyor and was consistent with two earlier surveys by two previous county surveyors. Forshee v. Canard, 488 F. Supp. 521 (E.D. Ark. 1980).

14-15-712. Admissibility of certified copy.

A certified copy of the record of any county surveyor, under the hand of the surveyor, shall be admitted as prima facie evidence in any court of record in this state.

History. Rev. Stat., ch. 40, § 14; C. & M. Dig., § 1897; Pope's Dig., § 2414; A.S.A. 1947, § 12-1220.

Cross References. Surveys admissible in evidence, § 16-46-103.

Research References

Ark. L. Rev.

Documentary Evidence — Arkansas, 15 Ark. L. Rev. 79.

Case Notes

Certified Copy.

Where plaintiff introduced into evidence a plat with signature of surveyor thereon, defendant did not have burden of proof to show plat was erroneous, since plat introduced was not a certified copy of official record kept by the surveyor. Horn v. Hays, 219 Ark. 450, 243 S.W.2d 3 (1951).

Instructions.

In case involving dispute over boundary line in which county surveyor testified as to the actual survey line, an instruction by the court, which stated that testimony of surveyor and documentary evidence introduced by him along with stipulation of the parties constituted prima facie evidence of the correct line as it appears from the survey unless the defendant could prove by a preponderance of evidence a different line, was not erroneous. Polk v. Willey, 220 Ark. 506, 248 S.W.2d 693 (1952).

Prima Facie Evidence.

A certified copy of an official survey made by a county surveyor is prima facie correct, but any duly qualified surveyor may testify as to its correctness. Russell v. State, 97 Ark. 92, 133 S.W. 188 (1910).

Where a party to a controversy over a certain boundary line introduces the surveyor's record in evidence making a prima facie case, it becomes the duty of the other party to show that the location of the true line is otherwise than as shown in the survey thus certified. Buffalo Zinc & Copper Co. v. McCarty, 125 Ark. 582, 189 S.W. 355 (1916).

Oral testimony as to location of property line is properly excluded. Mason v. Mason, 167 Ark. 304, 267 S.W. 772 (1925).

A state statute specifying that a certain record shall be prima facie evidence is binding upon a federal court, where the statute concerns not merely the admissibility of evidence (the certified copy of the county surveyor's record would be admissible whether such a state statute existed or not), but rather the legal effect of a certain type of survey in a case involving the title to land, traditionally a matter of state concern. Forshee v. Canard, 488 F. Supp. 521 (E.D. Ark. 1980).

If a certified copy of the official record of a county surveyor, as distinguished from his testimony only or a mere plat signed by him, is offered in evidence, then the corners and lines shown therein are established, unless the other party shows, by a preponderance of the evidence, that the location of the true line is other than as shown in the survey thus certified. Forshee v. Canard, 488 F. Supp. 521 (E.D. Ark. 1980).

The plaintiffs in a boundary line dispute failed to satisfy their burden of persuasion by a preponderance of the evidence where their surveyor did not consult original field notes before making his survey and the survey offered in evidence by the defendants was a certified copy of a survey by the county surveyor and was consistent with two earlier surveys by two previous county surveyors. Forshee v. Canard, 488 F. Supp. 521 (E.D. Ark. 1980).

Unofficial Surveys.

A conviction for the wrongful cutting of timber was set aside where the evidence showed that an unofficial surveyor had surveyed the land and plainly marked the boundaries, but a subsequent official survey showed that the unofficial survey was less favorable to the defendant than the official survey. Sawyer & Austin Lumber Co. v. State, 75 Ark. 309, 87 S.W. 431 (1905).

Subchapter 8 — County Treasurers

Cross References. Fees — County treasurers, § 21-6-302.

Sale of county property generally, § 14-16-105.

Effective Dates. Acts 1877, No. 15, § 4: effective on passage.

Acts 1907, No. 190, § 7: effective on passage.

Acts 1989 (1st Ex. Sess.), No. 178, § 6: July 1, 1989. Emergency clause provided: “It is hereby found and determined by the Seventy-Seventh General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1989 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1989 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1989.”

Acts 1999, No. 342, § 12: July 1, 1999. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly, that the current contribution level for continuing education for county officials is insufficient and when the contribution level is raised, the appropriation for this purpose is insufficient. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1999.”

Acts 2001, No. 348, § 10: Feb. 21, 2001. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 2001 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 2001 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2001.”

14-15-801. [Repealed.]

Publisher's Notes. This section, concerning eligibility, was repealed by Acts 1993, No. 1279, § 1. The section was derived from Rev. Stat., ch. 41, § 39; A.S.A. 1947, § 12-1318.

14-15-802. Office.

County treasurers shall keep their offices at their respective county sites.

History. Acts 1877, No. 15, § 3, p. 10; C. & M. Dig., § 1909; Pope's Dig., § 2426; A.S.A. 1947, § 12-1304.

14-15-803. Counties having two judicial districts.

The treasurer shall keep in his or her office at each county site in counties having two (2) judicial districts, except Prairie, Woodruff, Lawrence, Yell, and Logan, the funds belonging to the school districts and road districts of the respective judicial districts for the purpose of paying warrants drawn thereon.

History. Acts 1907, No. 190, § 6, p. 446; C. & M. Dig., §§ 2044, 8360; Pope's Dig., §§ 2591, 10956; A.S.A. 1947, § 12-1305; Acts 1991, No. 183, § 1; 1995, No. 354, § 1.

A.C.R.C. Notes. Pursuant to § 1-2-207, this section is set out above as amended by Acts 1995, No. 354. Acts 1995, No. 334, § 1 purported to repeal this section.

14-15-804. Appointment of a deputy treasurer.

  1. Appointment of a deputy treasurer shall be:
    1. In writing;
    2. Signed by the county treasurer; and
    3. Recorded in the county recorder's office.
  2. A deputy treasurer shall possess powers as authorized by the county treasurer.

History. Acts 1883, No. 42, §§ 2-4, p. 65; C. & M. Dig., §§ 1911-1913; Pope's Dig., §§ 2428-2430; A.S.A. 1947, §§ 12-1307 — 12-1309; Acts 2007, No. 122, § 1.

14-15-805. Duties generally.

It shall be the duty of each county treasurer to:

    1. Receive and give receipt for all moneys payable into the county treasury and to pay and disburse the moneys on warrants or checks drawn by order of the county court.
    2. Any nonrevenue receipts as defined in § 21-6-302(f)(2) shall be deposited into the same county fund from which the original expenditure was made;
    1. Refuse payment of any warrant or check that would cause a deficit balance in any special revenue account without an appropriated transfer of general funds to cover the deficit, except as provided in this section.
      1. A grant account that operates as a reimbursable grant fund may operate with a deficit balance if there is a county general fund cash balance or an appropriate special revenue fund cash balance sufficient to support the deficit.
      2. When the grant moneys are received by the county, the moneys shall be receipted to the proper grant fund by the county treasurer.
      3. Any remaining deficit balance at the conclusion of the grant cycle shall be brought to a zero balance with an appropriated transfer of general funds or an appropriated transfer from the applicable special revenue fund; and
    1. Maintain a positive general fund balance.
    2. The general fund shall include county general and any other ledger account on the treasurer's books accruable to county general.
    3. The treasurer shall refuse payment of any warrant or check that would cause a deficit balance of the general fund in aggregate.

History. Special Acts of 1923, No. 240, § 3; Rev. Stat., ch. 41, § 5; C. & M. Dig., § 1914; Pope's Dig., § 2431; A.S.A. 1947, § 12-1310; Acts 1993, No. 200, § 1; 2019, No. 310, § 1.

Publisher's Notes. This section was amended as to certain counties by Special Acts of 1923, p. 487.

Amendments. The 2019 amendment restructured former (a) as the introductory language and (1)(A); added (1)(B); redesignated former (b) as (2)(A); redesignated the three sentences of former (c) as (3)(A)-(C); added “except as provided in this section” in (2)(A); deleted “It shall be the duty of each county treasurer to” from the beginning of (2)(A) and (3)(A); and made stylistic changes.

Case Notes

Legal Actions.

Treasurer is authorized to sue a bank to recover public funds that he has deposited which the bank has to pay on demand. Warren v. Nix, 97 Ark. 374, 135 S.W. 896 (1911).

Ministerial Duties.

County treasurer is a ministerial officer not vested with discretion in payment and disbursement of county funds, but acts only at the order of the county court. Mackey v. McDonald, 255 Ark. 978, 504 S.W.2d 726 (1974).

14-15-806. Neglect or refusal to pay warrant.

  1. If any county treasurer shall neglect or refuse to pay any warrant or check drawn on him or her by order of the county court of his or her county, having cash available in the fund on which the warrant or check is drawn, he or she shall forfeit and pay to the holder of the warrant four (4) times the amount thereof.
  2. The forfeiture may be recovered by a civil action in the name of the party aggrieved against the treasurer and his or her securities, and the treasurer shall be deemed guilty of a misdemeanor in office and upon conviction shall be removed from office.

History. Rev. Stat., ch. 41, §§ 10, 11; C. & M. Dig., §§ 1920, 1921; Pope's Dig., § 2437; A.S.A. 1947, §§ 12-1311, 12-1312; Acts 1993, No. 200, § 2.

Cross References. Removal or suspension of local officers, § 21-12-301 et seq.

14-15-807. Accounting of moneys received and disbursed.

  1. A county treasurer shall keep a true and just account of all moneys received and disbursed and a regular abstract of all warrants paid by him or her.
  2. A treasurer shall make duplicate receipts in favor of the proper person for all moneys paid into the treasury and keep the books, papers, and money pertaining to his or her office at all times ready for the inspection of the county court or the presiding judge thereof.
  3. A treasurer shall furnish the county court with an account of the receipts and expenditures of the county not previously accounted for at each term of the county court, if required.

History. Rev. Stat., ch. 41, §§ 6-8; C. & M. Dig., §§ 1915-1917; Pope's Dig., §§ 2432-2434; A.S.A. 1947, §§ 12-1313 — 12-1315.

Cross References. County clerks — Duties as to accounts, § 16-20-402.

Fraudulent statement of accounts by collecting officer, § 26-2-111.

Loan or use of public money by officials, § 26-2-103.

14-15-808. [Repealed.]

Publisher's Notes. This section, concerning annual settlements, was repealed by Acts 1993, No. 1279, § 1. The section was derived from Acts 1873, No. 124, § 189, p. 294; C. & M. Dig., §§ 1918, 10174; Pope's Dig., §§ 2435, 13955; A.S.A. 1947, § 12-1316.

14-15-809. Resignation, removal, or death.

If he or she resigns, is removed from office, or dies, a county treasurer, or his or her executor or administrator, shall immediately make his or her settlement and deliver to his or her successor in office all things pertaining to the office, together with all the moneys belonging to the county.

History. Rev. Stat., ch. 41, § 9; C. & M. Dig., § 1919; Pope's Dig., § 2436; A.S.A. 1947, § 12-1317.

Case Notes

Settlement.

When the administrator of a deceased treasurer makes settlement with the county court pursuant to this section, the settlement is binding upon the sureties upon the treasurer's bond, although they were not parties to the proceeding in county court. Wycough v. State, 50 Ark. 102, 6 S.W. 598 (1887).

14-15-810. Relief from liability.

In all cases where any funds in the hands of any county treasurer of this state have been lost or become unavailable by reason of the insolvency of any bank in which the funds were deposited, and not through defalcation of the county treasurer, the county treasurers and their bondsmen, in cases where the bondsmen have not become sureties on account of the payment of a cash consideration, and in such cases only, are released and relieved from any and all liability for loss of the funds.

History. Acts 1935, No. 16, § 1.

14-15-811. Continuing education — Board and fund.

  1. There is created the County Treasurer's Continuing Education Board, which shall be composed of the following members:
    1. Eight (8) members of the Arkansas County Treasurers' Association, designated by the Arkansas County Treasurers' Association;
    2. One (1) member designated by the Association of Arkansas Counties; and
    3. The Auditor of State or a person designated by the Auditor of State.
    1. It shall be the responsibility of the board to establish a continuing education program for county treasurers of the various counties in the state. This program shall be designed to better equip persons elected to serve as county treasurers to carry out their official responsibilities in an effective and efficient manner. The program shall include requirements and procedures for an effective certification program for county treasurers.
    2. It shall also be the responsibility of the board to disburse any funds made available to it from the County Treasurers' Continuing Education Fund to establish and maintain a continuing education program and a certification program for county treasurers.
    1. There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State the County Treasurers' Continuing Education Fund.
      1. The quorum court of each county shall annually appropriate and pay into the County Treasurers' Continuing Education Fund in the State Treasury the sum of seven hundred dollars ($700) from fees of the office of county treasurer.
      2. If any quorum court shall fail or refuse to appropriate and pay over the funds to the County Treasurers' Continuing Education Fund in the State Treasury, the Treasurer of State shall withhold funds from the county aid due to the county and shall credit the funds to the County Treasurers' Continuing Education Fund.
  2. The funds in the County Treasurers' Continuing Education Fund shall be used exclusively for:
    1. Establishing and operating a continuing education program for county treasurers;
    2. Paying the meals, lodging, registration fees, and mileage at the rate prescribed in state travel rules of county treasurers who attend the continuing education program;
    3. Acquiring educational materials; and
    4. Paying presenter fees and expenses.

History. Acts 1987, No. 944, §§ 1-3; 1989 (1st Ex. Sess.), No. 178, § 2; 1999, No. 342, § 1; 2001, No. 348, § 4; 2007, No. 246, § 1; 2013, No. 551, § 3; 2017, No. 443, §§ 1, 2; 2019, No. 315, § 987.

Publisher's Notes. For amount of appropriation for continuing education for county Treasurers of the Auditor of State - Continuing Education see Act 1999, No. 342, § 4.

Amendments. The 2013 amendment substituted “seven hundred dollars ($700)” for “six hundred dollars ($600)” in (c)(2)(A)

The 2017 amendment deleted “six (6)” preceding “members” in the introductory language of (a); in (a)(1), substituted “Eight (8)” for “Four (4)”; redesignated former (d) as the introductory language of (d), (d)(1), and (d)(2); deleted “the establishment and operation of” following “exclusively for” in the introductory language of (d); in (d)(1), inserted “Establishing and operating” and deleted “and for paying” following “treasurers” at the end; added “Paying” in (d)(2); added (d)(3) and (d)(4); and made stylistic changes.

The 2019 amendment substituted “rules” for “regulations” in (d)(2).

Cross References. County Treasurers' Continuing Education Fund, § 19-5-947.

Publication Development and Resale Revolving Fund, § 19-5-1001.

Subchapter 9 — County Clerks

Effective Dates. Acts 1907, No. 190, § 7: effective on passage.

Acts 1919, No. 507, § 2: approved Mar. 28, 1919. Emergency declared.

14-15-901. Records — Multiple judicial districts.

  1. In counties having two (2) judicial districts, it shall be the duty of the county clerk to keep at each county site, in addition to the records now required by law to be kept, the following records:
    1. Record of marks and brands;
    2. Record of incorporations;
    3. Record of estrays;
    4. Record of advertisements and sale of delinquent lands;
    5. Record of lands sold to the state; and
    6. Record of lands sold to individuals.
  2. It shall be the duty of the county courts of such counties to immediately purchase such records for the use of the various counties as are required by this section, and all other expenses made necessary by the provisions of this section shall be borne by the respective counties embraced in this section.
  3. The provisions of this section shall not apply to Prairie, Woodruff, and Lawrence counties.

History. Acts 1907, No. 190, §§ 1, 2, 7, p. 446; 1911, No. 94, § 1; 1919, No. 507, § 1; C. & M. Dig., §§ 2039, 2040, 8355, 8356, 8361; Pope's Dig., §§ 2586, 2587, 10951, 10952, 10957; A.S.A. 1947, §§ 16-301 — 16-303.

Cross References. Brands and marks of animals generally, § 2-34-101 et seq.

Drivers — Certificate of compliance, § 2-34-303.

Marriage licenses — Issuance of certificate by clerk and duty of clerk upon return of license, §§ 9-11-203, 9-11-220.

Record of livestock running at large or straying, § 2-38-110.

Recording personalty in only one district, § 14-2-101.

Case Notes

Failure to Record.

Failure to record delinquent tax list and publication of notice of sale are not mere irregularities, but matters of substance, rendering tax sale invalid beyond the features of a curative act. Carle v. Gehl, 193 Ark. 1061, 104 S.W.2d 445 (1937).

Subchapter 10 — County Collectors

Effective Dates. Acts 1999, No. 342, § 12: July 1, 1999. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly, that the current contribution level for continuing education for county officials is insufficient and when the contribution level is raised, the appropriation for this purpose is insufficient. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1999.”

Acts 2001, No. 348, § 10: Feb. 21, 2001. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 2001 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 2001 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2001.”

14-15-1001. Continuing education — Board and fund.

  1. There is created the County Collector's Continuing Education Board, which shall be composed of the following members:
    1. Eight (8) members of the Arkansas County Tax Collectors Association, designated by the Arkansas County Tax Collectors Association;
    2. One (1) member designated by the Association of Arkansas Counties; and
    3. The Auditor of State or a person designated by the Auditor of State.
    1. It shall be the responsibility of the board to establish a continuing education program for county collectors and sheriff-collectors of the various counties in the state. This program shall be designed to better equip persons elected to serve as county collectors and as sheriff-collectors to carry out their official responsibilities in an effective and efficient manner. The program shall include requirements and procedures for an effective certification program for county collectors.
    2. It shall also be the responsibility of the board to disburse any funds made available to it from the County Collectors' Continuing Education Trust Fund to establish and maintain a continuing education program and a certification program for county collectors.
      1. There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State the County Collectors’ Continuing Education Trust Fund.
      2. The quorum court of each county shall annually appropriate and pay into the fund in the State Treasury the sum of seven hundred dollars ($700) from fees of the office of county collector.
      3. If any quorum court shall fail or refuse to appropriate and pay over the funds to the County Collectors’ Continuing Education Trust Fund in the State Treasury, the Treasurer of State shall withhold funds from the county aid due to the county and shall credit the funds to the County Collectors’ Continuing Education Trust Fund.
    1. The County Collectors' Continuing Education Trust Fund shall consist of all moneys required to be paid in annually as set out herein, all interest earned from the investment of fund balances, and any remaining fund balances carried forward from year to year.
  2. The funds in the County Collectors' Continuing Education Trust Fund shall be used exclusively for:
    1. Establishing and operating a continuing education program for county collectors and sheriff-collectors;
    2. Paying the meals, lodging, registration fees, and mileage at the rate prescribed in state travel rules of county collectors and sheriff-collectors who attend the continuing education programs;
    3. Acquiring educational materials; and
    4. Paying presenter fees and expenses.

History. Acts 1989, No. 673, §§ 1-3; 1999, No. 342, § 2; 2001, No. 348, § 5; 2007, No. 246, § 2; 2013, No. 551, § 4; 2017, No. 443, §§ 3, 4; 2019, No. 315, § 988.

Publisher's Notes. For amount of appropriation for continuing education for county Collectors of the Auditor of State - Continuing Education see Act 1999, No. 342, § 5.

Amendments. The 2013 amendment substituted “seven hundred dollars ($700)” for “six hundred dollars ($600)” in (c)(1)(B).

The 2017 amendment, in the introductory language of (a), deleted “hereby” preceding “created” and deleted “six (6)” preceding “members” at the end; in (a)(1), substituted “Eight (8)” for “Four (4)” and twice substituted “Collectors” for “Collectors'”; redesignated former (d) as the introductory language of (d), (d)(1), and (d)(2); deleted “the establishment and operation of” following “exclusively for” in the introductory language of (d); in (d)(1), inserted “Establishing and operating” and deleted “and for paying” following “sheriff-collectors” at the end; added “Paying” in present (d)(2); added (d)(3) and (d)(4); and made stylistic changes.

The 2019 amendment substituted “rules” for “regulations” in (d)(2).

Cross References. Continuing education — Board and fund, § 14-15-811.

County Treasurers' Continuing Education Fund, § 19-5-947.

Publication Development and Resale Revolving Fund, § 19-5-1001.

Chapter 16 Powers of Counties Generally

Research References

Am. Jur. 4 Am. Jur. 2d, Animals, § 24.

22A Am. Jur. 2d, Dec. Judg., § 157.

56 Am. Jur. 2d, Mun. Corp., §§ 98 et seq., 193-230, 423-578, 848.

C.J.S. 20 C.J.S., Counties, §§ 49, 50 and 165 et seq.

U. Ark. Little Rock L.J.

Survey, Water and Environmental Law, 12 U. Ark. Little Rock L.J. 665.

Subchapter 1 — General Provisions

A.C.R.C. Notes. Acts 2015, No. 974, § 8, provided:

“MAXIMUM ANNUAL FUNDING FOR REAPPRAISALS/REVIEWS. Whether a county's reappraisal of real property is simply a review of existing data, or a more extensive reappraisal where every improvement is measured, funding to any county, provided through the Assessment Coordination Department, will be for the actual appraisal cost, up to a maximum of seven dollars per parcel, per year. Counties must use other taxing unit sources of revenue to provide for the cost of real property reappraisals if the cost to complete the reappraisal exceeds seven dollars per parcel.

“The provisions of this section shall be in effect only from July 1, 2015 through June 30, 2016.”

Cross References. Jurdisdiction of county courts over county affairs, Ark. Const., Art. 7, § 28.

Supervisor of county courts and county, local and municipal boards or officers exercised by circuit courts, § 16-13-203.

Effective Dates. Acts 1879, No. 16, § 4: effective on passage.

Acts 1949, No. 64, § 5: approved Feb. 8, 1949. Emergency clause provided: “Whereas, the United States is willing to convey lands for hospital purposes and,

“Whereas, the erection of county hospitals vitally affects the public health needs of the people of the State of Arkansas and this Act being necessary to preserve the public peace, health and safety of the inhabitants of the State of Arkansas, an emergency is hereby declared and this Act shall be in full force and effect from and after its passage.”

Acts 1951, No. 26, § 4: Jan. 30, 1951. Emergency clause provided: “It being found and determined that there are counties owning real and personal property not needed for use by the county, and that the same is necessary to be used by nonprofit, nonsectarian educational institutions, which, because of the lack thereof, are unable properly to provide adequate facilities necessary for education and instruction, the passage of this Act is found necessary for the preservation of the public peace, health and safety, and an emergency is hereby declared to exist, and this Act shall be in full force and effect from and after its passage and approval.”

Acts 1955, No. 73, § 2: Feb. 17, 1955. Emergency clause provided: “Whereas, the United States Government has made available funds to be used in the State of Arkansas for flood control purposes, and Whereas, it is necessary that Counties be given the authority to acquire land in order that such Federal funds may be used, and Whereas, it is important to the protection of the lives and property of the people of this State that such flood control projects be immediately commenced, Now Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1957, No. 37, § 2: Feb. 12, 1957. Emergency clause provided: “It being found and determined that there are counties in this state owning real and personal property not needed for use by the county, and that the same is necessary to be used by lawfully incorporated, nonprofit, nonsectarian Boys' Clubs or Girls' Clubs, in addition to educational institutions, which because of the lack thereof, are unable properly to provide adequate facilities for the welfare, betterment and recreation of boys or girls, the passage of this act having been found necessary for the public peace, health and safety, an emergency is hereby declared to exist, and this act shall be in full force and effect from and after its approval.”

Acts 1963, No. 213, § 3: Mar. 8, 1963. Emergency clause provided: “It is hereby found and determined by the General Assembly that the provisions of this Act will be of great benefit to the various counties in this State by making it possible for such counties to receive better value for used county equipment and other property which the county desires to trade in when purchasing new equipment or property, and that this Act is immediately necessary to permit said counties to make such savings. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in effect from the date of its passage and approval.”

Acts 1965, No. 115, § 6: Feb. 23, 1965. Emergency clause provided: “It is hereby found and determined by the General Assembly that certain counties of this State have county-owned hospitals which are vitally needed by municipalities in such counties for use as municipal hospitals and/or nursing homes; and, whereas, the General Assembly determines that it is immediately necessary for the preservation of the public health in such communities that legislation be immediately passed to authorize such sales or leases, Now, Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1971, No. 150, § 3: Feb. 22, 1971. Emergency clause provided: “It is hereby found and determined by the General Assembly that there are certain counties in this State which are partially bordered by navigable streams or through which navigable streams flow, including Chicot County, that wish to establish and operate river port facilities on such navigable streams; that the establishment and operation of such facilities would be advantageous to and would promote industrial development in such county; that this Act is designed to authorize any such county, alone or in conjunction with another county or municipality as authorized in Act 310 of 1959, to establish, equip and operate such port facility and should be given effect immediately in order that any county desiring to take advantage of the provisions of this Act may do so immediately. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1971, No. 444, § 3: Mar. 29, 1971. Emergency clause provided: “It is hereby found and determined by the General Assembly that under present law, counties in this State have the authority to sell lands to municipalities within the county but that there is presently no specific authority for a county to lease county-owned lands to municipalities; that certain counties in the State have lands which they desire to lease to various municipalities for particular uses and that the lease of such lands to municipalities by the county would be advantageous both to the county and to the leasing municipality and that this Act should be given effect immediately in order to permit the same. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1975, No. 192, § 3: Feb. 18, 1975. Emergency clause provided: “It is hereby found and determined by the General Assembly that there is a dire need for legal authority for counties to lease lands to lawfully incorporated, quasipublic, nonprofit, nonsectarian organizations; and that such authority to lease county lands to such organizations is immediately necessary to encourage and promote the further protection of the public peace, health, welfare and safety of the citizens of this State; therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1980 (1st Ex. Sess.), No. 41, § 3: Jan. 25, 1980. Emergency clause provided: “It is hereby found and determined by the General Assembly that it is unclear whether surplus county personal property can now be sold by public auction; that sale by public auction would in most cases result in receiving the highest sale price for surplus property and that this Act is immediately necessary to authorize such public auctions. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1980 (1st Ex. Sess.), No. 63, § 3: Feb. 4, 1980. Emergency clause provided: “It is hereby found and determined by the General Assembly that it is unclear whether surplus county personal property can now be sold by public auction; that sale by public auction would in most cases result in receiving the highest sale price for surplus property and that this Act is immediately necessary to authorize such public auctions. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1993, No. 732, § 5: Mar. 26, 1993. Emergency clause provided: “It is hereby found and determined by the Seventy-Ninth General Assembly of the State of Arkansas that county governments in Arkansas are operating recycling programs for solid waste; that county recycling programs generate recyclable materials which can technically be considered personal property of the county; that Arkansas law regulates the manner in which personal property of the county can be sold; and that, since the recycling markets are very time sensitive and price conscious, county government recycling programs should be exempt for these restrictions and procedures. Therefore, in order to permit county government to sell recyclable materials more rapidly and competitively, an emergency is hereby declared to exist, and this act being necessary for the immediate preservation of the public peace, health, and safety, shall be in full force and effect from and after its passage and approval.”

14-16-101. Actions on behalf of counties.

When any county has any demand against any persons or corporations, suit thereon may be brought by the county judge.

History. Acts 1879, No. 16, § 3, p. 13; C. & M. Dig., § 2045; Pope's Dig., § 2596; A.S.A. 1947, § 17-302; Acts 2009, No. 678, § 1.

Amendments. The 2009 amendment substituted “by the county judge” for “in the name of the state for the use of the county” and deleted the last sentence, which read: “In all such actions, all costs and expenses not recovered from the defendant shall be paid by the county.”

Cross References. Claims against counties, § 14-23-101 et seq.

Case Notes

Applicability.

This section had no applicability to a cause in equity that accrued prior to its passage. Griffith v. Sebastian County, 49 Ark. 24, 3 S.W. 886 (1887).

Actions Allowed.

A suit could be prosecuted in the name of the state, for the use of a county, to annul and cancel an illegal and fraudulent lease made by the county judge of the county property. State ex rel. Garland County v. Baxter, 38 Ark. 462 (1882).

The state could bring an action on a county treasurer's bond in which the obligee was named for the use of a county for a defalcation of the treasurer. State ex rel. Benton County v. Wood, 51 Ark. 205, 10 S.W. 624 (1889).

Costs and Expenses.

Costs could not be taxed against a county in cases of failure of prosecution of suits by state against railroad companies for failure to maintain sufficient lights during nighttime on all their main line switches, the county not being a party to the suit, and in the absence of a statute making it so liable, could not properly be taxed with costs. Chicot County v. Matthews, 120 Ark. 505, 179 S.W. 1002 (1915).

Cited: Wade v. Moody, 255 Ark. 266, 500 S.W.2d 593 (1973).

14-16-102. Rights under contracts.

All notes, bonds, bills, contracts, covenants, agreements, or writings, made or to be made, whereby any person is, or shall be, bound to any county, or the commissioners of any county, or to any other person, in whatever form, for the payment of any debt or duty, or the performance of any matter or thing, to the use of any county, shall be valid and effectual to all intents and purposes to vest in the county all rights, interests, and actions which would be vested in any individual if any such contract had been made directly to him or her.

History. Rev. Stat., ch. 35, § 6; C. & M. Dig., § 1975; Pope's Dig., § 2504; A.S.A. 1947, § 17-301.

14-16-103. Deeds, etc., to county.

All deeds, grants, and conveyances which are made and duly acknowledged and recorded as are other deeds of conveyance to any county, or to the commissioners of any county, or to any other person, by whatever form of conveyance, for the use and benefit of any county, for all intents and purposes shall be good and valid instruments for vesting in the county, in fee simple or otherwise, all such right, title, interest, and estate as the grantor in any such deed or conveyance had in the lands conveyed at the time of the execution of the instrument and was intended by that means to be conveyed.

History. Rev. Stat., ch. 35, § 4; C. & M. Dig., § 1948; Pope's Dig., § 2477; A.S.A. 1947, § 17-303.

Case Notes

Cancellation.

A conveyance to a county under a mutual mistake will be canceled. Griffith v. Sebastian County, 49 Ark. 24, 3 S.W. 886 (1887).

In Fee Simple or Otherwise.

A county is authorized to take title to land “in fee simple or otherwise,” and a deed accepted by the county conveys what was intended to be conveyed; a condition subsequent in a deed to a county does not convey a fee simple. Jeffries v. State ex rel. Woodruff County, 212 Ark. 213, 205 S.W.2d 194 (1947).

A county may acquire property for general county purposes by a deed that conveys less than the fee simple title; a condition subsequent in a deed to a county is in accordance with public policy and not void as against public policy. Jeffries v. State ex rel. Woodruff County, 212 Ark. 213, 205 S.W.2d 194 (1947).

In order to determine the validity of a condition subsequent in a deed to a county, the sources that must be consulted to determine an issue of public policy are the federal and state constitutions, the statutes, and court decisions. Jeffries v. State ex rel. Woodruff County, 212 Ark. 213, 205 S.W.2d 194 (1947).

14-16-104. Conveyances from federal government.

    1. Any and all counties of the State of Arkansas are authorized and empowered to accept conveyances of real estate from the federal government, or any authorized agency thereof, whether that conveyance contains reservations to oil, mineral, or fissionable material rights in the United States or not, and subject to such terms and conditions as the federal government, or an agency thereof, may reasonably require.
    2. Counties are authorized to accept conveyances containing reversion clauses providing for reversion of real estate to the federal government in case the real estate ceases to be used for the purposes for which conveyed.
  1. The word “conveyance” as used herein shall be construed to refer to either quit-claim or warranty deeds.
  2. The provisions of this section shall apply only to conveyances from the United States or from any authorized agency of the federal government.

History. Acts 1949, No. 64, §§ 1-3; A.S.A. 1947, §§ 17-310 — 17-312.

14-16-105. Sale of county property generally.

  1. The county court of each county shall have power and jurisdiction to sell and cause to be conveyed any real estate or personal property belonging to the county and to appropriate the proceeds of the sale for the use of the county by proceeding in the manner set forth in this section.
    1. When the county judge of a county shall consider it advisable and to the best interest of the county to sell and convey any real or personal property belonging to the county, he or she shall cause an order to be entered in the county court setting forth:
      1. A description of the property to be sold;
      2. The reason for the sale; and
      3. An order directing the county assessor to cause the property to be appraised at its fair market value and to certify his or her appraisal of the property to the county court within a time to be specified in the order.
    2. A certified copy of the order shall be delivered to the county assessor by the county clerk, and the county clerk shall certify the date of the delivery of the copy on the margin of the record where the order is recorded.
    3. An order and the procedures as used in this section shall not be required for any sale by the county of any materials separated, collected, recovered, or created by a recycling program authorized and operated by the county. However, the county judge shall maintain a record of the recyclable materials sold, whether they were sold at public or private sale, a description of the recyclables sold, the name of the purchaser, and the terms of the sale. All the proceeds of the sale shall be deposited with the county treasurer.
    4. An order and the procedures described in this section shall not be required for any conveyance by the county of a conservation easement as described in the Conservation Easement Act, § 15-20-401 et seq. However, this conveyance shall not be made unless authorized by a majority vote of the quorum court.
    5. If property is sold under § 14-16-106, the requirements of this section are not applicable.
    1. Upon receipt of the certified copy of the order, the county assessor shall view the property described in the order and shall cause the property to be appraised at its fair market value.
    2. Within the time specified in the order, the assessor shall file with the county clerk his or her written certificate of appraisal of the property.
    1. If the appraised value of the property described in the order is less than five thousand dollars ($5,000), the property may thereafter be sold and conveyed by the county judge, either at public or private sale, by sealed bids or internet sale for not less than three-fourths (¾) of the appraised value as shown by the certificate of appraisal filed by the assessor.
      1. If the property will be sold by internet sale, the notice of sale shall be placed on the website of the internet vendor for no less than eight (8) consecutive days before the date of sale and shall contain a description of the property to be sold and the time of the sale.
      2. An additional notice may be posted on a county-owned or county-affiliated website, trade website, or business website for no less than eight (8) consecutive days before the date of sale.
      1. When the sale has been completed, the county court shall enter its order approving the sale.
      2. The order shall set forth:
        1. The description of the property sold;
        2. The name of the purchaser;
        3. The terms of the sale;
        4. That the proceeds of the sale have been deposited with the county treasurer; and
        5. The fund or funds to which the proceeds were credited by the county treasurer.
      1. If the appraised value of the property to be sold exceeds five thousand dollars ($5,000), the county judge may sell the property to the highest bidder, upon sealed bids received by the judge or by internet sale.
      2. The county judge shall not sell property under subdivision (e)(1)(A) of this section for less than three-fourths (¾) of the appraised value of the property as determined by the certificate of the assessor.
      1. Notice of the sale shall be published for two (2) consecutive weekly insertions in some newspaper published and having a general circulation in the county.
      2. The notice shall specify:
        1. The description of the property to be sold;
        2. The time and place for submitting written bids; and
        3. The appraised value of the property to be sold.
      3. The notice shall be dated and signed by the judge.
      4. If the sale is conducted on the internet, the notice shall be placed on the internet under this section, and the invoice from the internet vendor or publisher shall be accompanied by a statement from the internet vendor or publisher that the sale was published and conducted on the internet.
    1. The judge shall have the right to reject any bids received by him or her under the notice.
      1. When the judge has accepted a bid for the property, the judge may sell and convey the property to the highest bidder.
      2. When the sale has been approved and completed, the county court shall enter an order approving the sale, which shall set forth the details of the sale as provided in subdivision (d)(3)(B) of this section.
      1. Any sale or conveyance of real or personal property belonging to any county not made under the terms of this section shall be null and void.
      2. The county fixed asset listing shall be amended to reflect all sales or conveyances made by the county under this section.
        1. Any taxpayer of the county may bring an action to cancel the sale and to recover possession of the property sold within two (2) years from the date a sale is consummated.
        2. This action for the use and benefit of the county is to be taken in the circuit court of the county in which the sale is made or in any county where personal property so sold may be found.
        3. In the event the property is recovered for the county in the action, the purchaser shall not be entitled to a refund of the consideration paid by him or her for the sale.
    1. The procedures for sale and conveyance of county property set forth in this section shall not apply in these instances:
      1. When personal property of the county is traded in on new or used equipment and credit approximating the fair market price of the personal property is given to the county toward the purchase price of new equipment;
      2. When the sale of the personal property of the county involves the sale by the county of any materials separated, collected, recovered, or created by a recycling program authorized and operated by the county;
      3. When the county is conveying an easement, including, but not limited to, easements granted upon county lands for water improvements, sewer improvements, gas lines, electric lines, phone lines, utilities, railways, public roads, highways, and conservation easements as described in the Conservation Easement Act, § 15-20-401 et seq., for any of the purposes enumerated in the Conservation Easement Act, § 15-20-401 et seq., as the same may be amended from time to time;
      4. When the county is leasing county property, including, but not limited to, leasing county lands or property under §§ 14-16-108 — 14-16-110, or the Municipalities and Counties Industrial Development Revenue Bond Law, § 14-164-201 et seq.; or
      5. When a sale or disposal of property is conducted under another section of the Arkansas Code.
    1. County hospitals constructed or maintained in whole or part by taxes approved by the voters shall not be sold unless the sale is approved by the majority of electors voting on the issue at a general or special election. This subsection is applicable to county hospitals constructed before and after July 20, 1987.
    2. An election shall not be required for the sale of a county hospital that has been vacant or not used as a county hospital for more than one hundred twenty (120) days.

History. Acts 1945, No. 193, §§ 1-6; 1963, No. 213, § 1; A.S.A. 1947, §§ 17-304 — 17-309; Acts 1987, No. 448, § 1; 1993, No. 732, § 1; 1997, No. 1107, §§ 1, 2; 2001, No. 1050, §§ 1, 2; 2005, No. 1240, § 1; 2009, No. 410, §§ 3 — 5; 2011, No. 614, § 3; 2011, No. 1014, § 1; 2019, No. 212, § 1.

Amendments. The 2009 amendment substituted “two thousand dollars ($2,000)” for “one thousand dollars ($1,000)” in (d)(1); in (e), substituted “two thousand dollars ($2,000)” for “one thousand dollars ($1,000)” in (e)(1)(A)(i) and (e)(1)(B), inserted “including that the sale may be conducted on the Internet” in (e)(2)(B)(ii) and made a related change, and inserted (e)(2)(D); and in (g), inserted (g)(2) and redesignated the remaining text accordingly.

The 2011 amendment by No. 614 inserted “or by Internet sale” in (e)(1)(A)(i); inserted “the notice shall be placed on the Internet under this section, and” in (e)(2)(D); redesignated former (e)(4)(A) and (e)(4)(B)(i) as (e)(4)(A); deleted “he or she, as chair of the approval board, shall immediately call a meeting of the board, and the proposals to sell at the acceptable bid shall be submitted to the board for its approval” following “bid for the property” in (e)(4)(A); redesignated former (e)(4)(B)(ii) as (e)(4)(B); added (f)(1)(B) and redesignated former (f)(1)(B) as (f)(1)(C); and substituted “§§ 14-16-10814-16-110” for “§ 14-16-108, § 14-16-109, § 14-16-110” in (f)(2)(D).

The 2011 amendment by No. 1014 substituted “as used” for “prescribed” in (b)(3); inserted “the Conservation Easement Act” in (b)(4); inserted (b)(5); inserted “by sealed bids or Internet sales” in (d)(1); and inserted present (d)(2) and redesignated the remaining subdivisions accordingly.

The 2019 amendment substituted “five thousand dollars ($5,000)” for “the sum of two thousand dollars ($2,000)” in (d)(1) and (e)(1)(A); in (e)(1), deleted the former (e)(1)(A)(i) designation and deleted (e)(1)(A)(ii); deleted “and best” following “highest” in (e)(1)(A); in (e)(1)(B), substituted “The county judge shall not sell property under subdivision (e)(1)(A) of this section” for “The property, when it exceeds the appraised value of two thousand dollars ($2,000), shall not be sold”, and inserted “of the property”; deleted “including that the sale may be conducted on the Internet” following “bids” in (e)(2)(B)(ii); deleted “and if a majority of the board approves the sale” preceding “the judge may sell” in (e)(4)(A), and made stylistic changes.

Cross References. Arkansas Governmental Compliance Act, § 10-4-301 et seq.

Disposition of public use property, § 22-4-501.

Exercise of powers by county judge, § 14-14-1102.

Sale of county issued firearms to deputies, § 12-15-301.

RESEARCH REFERENCES

U. Ark. Little Rock L. Rev.

Survey of Legislation, 2005 Arkansas General Assembly, Local Government, 28 U. Ark. Little Rock. L. Rev. 373.

Case Notes

Constitutionality.

The right of a county court to order sale of county property for such a consideration as it deemed proper did not conflict with Ark. Const., Art. 12, § 5. Little Rock Chamber of Commerce v. Pulaski County, 113 Ark. 439, 168 S.W. 848 (1914) (decision under prior law).

Purpose.

Purpose in providing procedure for sale of county property is to make public all dispositions of county property. State ex rel. Miller County v. Eason, 219 Ark. 36, 240 S.W.2d 36 (1951).

Applicability.

This section is superseded with respect to cases coming within the purview of § 14-164-201 et seq. relating to county industrial development revenue bonds. Dumas v. Jerry, 257 Ark. 1031, 521 S.W.2d 539 (1975).

County judge complied with the procedures set forth in § 14-16-106(c) when he sold a gravel crusher belonging to the county after he conferred with the county assessor and they agreed it was junk that should be sold for scrap. The general assembly did not intend for the provisions of this section for sales of county property generally to apply to sales or disposal of surplus property under § 14-16-106. Searcy County Counsel for Ethical Gov't v. Hinchey, 2013 Ark. 84 (2013).

Authority to Sell.

When agent for commissioner for sale of county property delivered the commissioner's deed to the purchaser without receiving the purchase price, he would be personally responsible to the county therefor. Jacks v. State, 44 Ark. 61 (1884) (decision under prior law).

When county court had authority to sell the property of the county, nothing short of fraud or grossly inadequate consideration as would amount to fraud would invalidate an order of the court in directing a conveyance. Little Rock Chamber of Commerce v. Pulaski County, 113 Ark. 439, 168 S.W. 848 (1914) (decision under prior law).

The consideration for the sale of county property could have been something other than money, and the county court in exercising its power could have determined what was to the best interests of the county. Little Rock Chamber of Commerce v. Pulaski County, 113 Ark. 439, 168 S.W. 848 (1914); Washington County v. Lynn Shelton Post, 201 Ark. 301, 144 S.W.2d 20 (1940) (decisions under prior law).

Former similar statute conferred power upon the county court to sell and convey property of the county not held in trust for specific purposes. Washington County v. Lynn Shelton Post, 201 Ark. 301, 144 S.W.2d 20 (1940) (decision under prior law).

“New.”

The word “new,” as used in the second clause of subdivision (f)(2), means new to the county, although it may be second-hand equipment; although this interpretation renders two different meanings of the term within the same sentence, it is nevertheless a reasonable and proper interpretation of this section. Robinson v. Clark Contracting Co., 992 F.2d 154 (8th Cir. 1993).

Procedure for Sale.

There was no substantial compliance by the county court with procedure for sale of county auto where it merely orally requested an appraisement by county assessor without entering an order describing the property to be sold for delivery by clerk to the assessor. State ex rel. Miller County v. Eason, 219 Ark. 36, 240 S.W.2d 36 (1951).

Allowance of claim by county court for purchase of new truck by county less allowance for old truck did not constitute ratification where county court had not substantially complied with law in having old truck appraised. State ex rel. Miller County v. Eason, 219 Ark. 36, 240 S.W.2d 36 (1951).

A judge has no right to sell county property without complying with this section. Goodwin v. State, 235 Ark. 457, 360 S.W.2d 490 (1962).

Timeliness.

Steel manufacturer's counterclaims against a gas corporation, which challenged easements that were granted to the gas corporation by a county, were procedurally barred under § 14-16-105(f)(1)(A) because they were not brought within two years from the date the sales were consummated. MacSteel Div. of Quanex v. Ark. Okla. Gas Corp., 363 Ark. 22, 210 S.W.3d 878 (2005).

Void or Voidable Transactions.

Lease made contrary to former similar statute was held void for that and other reasons. State ex rel. Garland County v. Baxter, 50 Ark. 447, 8 S.W. 188 (1888) (decision under prior law).

County was not estopped to deny validity of sale of used truck owned by county in suit by taxpayer in behalf of county where procedure for appraisement of county property was not substantially complied with by the county court, since sale was void. State ex rel. Miller County v. Eason, 219 Ark. 36, 240 S.W.2d 36 (1951).

Car belonging to a county and sold to a dealer who, after expending money in repairs on it, resold it to the county, was properly excluded from lien on all other property purchased from the dealer, since this sale could have been found to be a part of an overall scheme to defraud the county with the dealer a part of that scheme. Goodwin v. State, 235 Ark. 457, 360 S.W.2d 490 (1962).

Where sale of county property was not contrary to provisions of this section, but was subject to attack for stifling of bidding, the sale was merely voidable, and equity could mold a remedy to fit the case. State ex rel. Peevy v. Cate, 236 Ark. 836, 371 S.W.2d 541 (1963).

Provision giving lessee of county property option to purchase was void, as was provision giving him right to any money received in any eminent domain proceeding, such provisions failing to comply with this section governing disposition of county property; however, with the two provisions stricken, the lease was valid. State ex rel. Peevy v. Cate, 236 Ark. 836, 371 S.W.2d 541 (1963).

Where taxpayer, before protesting sale of county property, allowed purchaser to expend over $28,000 for improvements, to sell a small parcel to others who built a home thereon, and to receive proceeds from condemnation proceedings, resale would not be decreed unless or until purchaser failed to pay the actual value of the property at time of sale, with interest and costs. State ex rel. Peevy v. Cate, 236 Ark. 836, 371 S.W.2d 541 (1963).

The Arkansas Constitution vests exclusive jurisdiction over county property in the county court so that a deed executed by the county judge purporting to convey a tract of county property was void from the outset, and two-year limitation in subsection (f) on bringing taxpayer's suits to cancel improperly made conveyances, being curative in nature, could not remedy such a defect. Maroney v. Universal Leasing Corp., 263 Ark. 8, 562 S.W.2d 77 (1978).

Summary judgment for gas company in its declaratory action was proper as the county's grant of a pipeline easement to manufacturer was null and void due to the county's failure to follow the appraisal, notice, and bidding procedures required in this section, and the exemptions set out in subdivision (f)(2) for conservation easements did not include the pipeline easement; further, the 2005 amendment to this section, which exempted all easements, could not be applied retroactively because the amendment changed prior law rather than merely clarifying it. MacSteel Div. of Quanex v. Ark. Okla. Gas Corp., 363 Ark. 22, 210 S.W.3d 878 (2005).

Judgment was properly awarded to a gas corporation in its action for a declaratory judgment that the grant of a pipeline easement by a county, so that a steel manufacturer could obtain gas from the interstate natural gas market, was null and void pursuant to § 14-16-105(f)(1)(A) where the conveyance was not made pursuant to the procedures of the statute. MacSteel Div. of Quanex v. Ark. Okla. Gas Corp., 363 Ark. 22, 210 S.W.3d 878 (2005).

Cited: Daniels v. City of Ft. Smith, 268 Ark. 157, 594 S.W.2d 238 (1980); Bell v. Crawford County, 287 Ark. 251, 697 S.W.2d 910 (1985); Dudley v. Little River County, 305 Ark. 102, 805 S.W.2d 645 (1991); Ark. Okla. Gas Corp. v. MacSteel Div. of Quanex, 370 Ark. 481, 262 S.W.3d 147 (2007); Searcy County Counsel for Ethical Gov't v. Hinchey, 2011 Ark. 533 (2011).

14-16-106. Sale or disposal of surplus property.

  1. If it is determined by the county judge to be surplus, any personal or real property owned by a county may be sold at public auction or by internet sale to the highest bidder.
    1. Notice of the public auction shall be published at least one (1) time a week for two (2) consecutive weeks in a newspaper having general circulation in the county.
    2. The notice shall specify the description of the property to be sold and the time and place of the public auction or internet sale.
      1. If the property will be sold by internet sale, the notice of sale shall be placed on the website of the internet vendor for no less than eight (8) consecutive days before the date of sale and shall contain a description of the property to be sold and the time of the sale.
      2. An additional notice may be posted on a county-owned or county-affiliated website, trade website, or business website for no less than eight (8) consecutive days before the date of sale.
    1. If it is determined by the county judge and the county assessor that any personal property owned by a county is junk, scrap, discarded, or otherwise of no value to the county, then the property may be disposed of in any manner deemed appropriate by the county judge.
    2. However, the county judge shall report monthly to the quorum court any property that has been disposed of under subdivision (c)(1) of this section.
  2. The county fixed asset listing shall be amended to reflect all sales or disposal of county property made by the county under this section.
  3. If the sale is conducted on the internet, the invoice from the internet vendor or publisher shall be accompanied by a statement from the internet vendor or publisher that the sale was published and conducted on the internet.
    1. When the sale is complete, the county court shall enter an order approving the sale.
    2. The order shall set forth:
      1. The description of the property sold;
      2. The name of the purchaser;
      3. The terms of the sale;
      4. That the proceeds of the sale have been deposited with the county treasurer; and
      5. The funds to which the proceeds were credited by the county treasurer.

History. Acts 1980 (1st Ex. Sess.), No. 41, § 1; 1980 (1st Ex. Sess.), No. 63, § 1; A.S.A. 1947, § 17-322; Acts 1997, No. 364, § 1; 2005, No. 725, § 1; 2011, No. 614, § 4; 2011, No. 1014, § 2; 2019, No. 880, § 1.

Amendments. The 2011 amendment by No. 614 inserted “or by Internet sale” in (a), (b)(1) and (2); and added (d).

The 2011 amendment by No. 1014 added (b)(3), (e), and (f).

The 2019 amendment deleted “or Internet sale” following “public auction” in (b)(1).

Case Notes

Compliance.

County judge complied with the procedures set forth in subsection (c) of this section when he sold a gravel crusher belonging to the county after he conferred with the county assessor and they agreed it was junk that should be sold for scrap. The general assembly did not intend for the provisions of § 14-16-105 for sales of county property generally to apply to sales or disposal of surplus property under this section. Searcy County Counsel for Ethical Gov't v. Hinchey, 2013 Ark. 84 (2013).

Cited: Searcy County Counsel for Ethical Gov't v. Hinchey, 2011 Ark. 533 (2011).

14-16-107. Sale of realty to certain organizations.

Whenever a portion of county lands are dedicated for the benefit of any lawfully incorporated, quasi-public, nonprofit, nonsectarian organizations including, but not limited to, medical clinics, that county real property may be sold to any buyer, upon the approval of the county judge and a two-thirds vote of the quorum court of the county, without the necessity of soliciting for competitive bids.

History. Acts 1977, No. 750, § 1; A.S.A. 1947, § 17-321.

14-16-108. Sale or lease of county hospital to municipality.

  1. Any other law notwithstanding in this state, from and after the passage of this act, the county court of each county of the State of Arkansas shall have the right to sell or lease any county-owned hospital, where there is no outstanding bonded indebtedness, upon such terms and conditions as the court may deem advisable for the best interests of the county, to any municipality located within the county.
    1. Before any such sale or lease shall be entered into, the proposition shall be submitted to the county quorum court for approval or rejection.
    2. If a majority of the county quorum court voting thereon approves it, then the county court is authorized to execute other instruments that may be necessary to facilitate the sale or lease.
  2. Each sale or lease shall recite in the instrument of conveyance that should the municipality that has been granted the sale or lease of the county-owned hospital have any reason to discontinue to use it for hospital or nursing home purposes, then, in that event, the property shall revert back to the county, and title to the hospital shall be revested in the county.

History. Acts 1965, No. 115, §§ 1-3; A.S.A. 1947, §§ 17-316 — 17-318.

Publisher's Notes. In reference to the term “passage of this act,” Acts 1965, No. 115, was signed by the Governor and became effective on February 23, 1965.

Cross References. Sale of county property generally, § 14-16-105.

14-16-109. Lease of county lands to municipality.

  1. Any county in this state may lease any lands owned by the county to any municipality in the county to be used for such purposes, subject to such restrictions, and for such consideration or compensation as shall be agreed upon by the contracting county and municipality.
  2. In addition to other terms the county court finds reasonable and proper, the contract for the lease of county property shall provide that when the leased property ceases to be used for the purpose expressed in the lease or needs to be used by the county, the lease may be cancelled by the county court after reasonable notice.

History. Acts 1971, No. 444, § 1; A.S.A. 1947, § 17-319; Acts 2009, No. 410, § 6.

Amendments. The 2009 amendment in (a) substituted “may” for “is authorized and empowered to”, and added (b), redesignated the remaining text accordingly, and made a minor stylistic change.

14-16-110. Lease of county property to educational institutions.

  1. Any lawfully incorporated nonprofit, nonsectarian educational institution; any lawfully incorporated nonprofit, nonsectarian boys' club or girls' club; or any lawfully incorporated quasi-public, nonprofit, nonsectarian organizations including, but not limited to community mental health centers, may petition the county court of any county or county district in which the institution, club, or organization is located to lease to it real or personal property belonging to the county for use by the institution, club, or organization.
    1. Immediately upon the filing of the petition, the judge of the county court shall make an order fixing a time and place for a public hearing on the petition, notice of which order shall be given by the county clerk by publication one (1) time in a legal newspaper having a bona fide legal circulation in the county or county district at least ten (10) days prior to the date fixed for the hearing.
      1. The notice shall state the time of filing, the substance and purpose of the petition, and the time and place of hearing it.
        1. The hearing shall be public, and all persons having an interest in the subject matter of the petition shall be entitled to be heard either in person or by attorney.
        2. The hearing may be continued or adjourned to a further date, at the discretion of the court, but no further notice thereof by publication shall be required.
    1. When satisfied from the petition or the evidence, if any, at the hearing that any real or personal property belonging to the county or county district is not, and in the future will not be, needed for use by the county and that the property may be used by any lawfully incorporated, quasi-public, nonprofit, nonsectarian institution, club, or organization in the county or county district, then the county court may order the lease of any property to the legally constituted directors or trustees of the institution, club, or organization for such time and upon such terms and conditions as the county court, in its discretion, shall find just, reasonable, and proper.
    2. The lease shall be signed and approved by the judge of the county court and by the directors or trustees of the institution, club, or organization and shall thereafter be and become a binding and valid contract when the order authorizing it shall have become final as provided in this section.
    3. Any such lease shall provide, in addition to any other terms as the county court shall deem reasonable and proper, that when the property ceases to be used for the foregoing purposes or needs to be used by the county, the lease may be cancelled by the county court, after reasonable notice.
      1. When a hearing shall have been had pursuant to notice, as provided in this section, and an order granting or denying the petition shall have been made, the order shall become final and binding thirty (30) days after entry unless within that thirty (30) days any interested person or taxpayer of the county or county district shall appeal to the circuit court of the county or county district, the appeal from the order to be prosecuted and determined in the same manner as provided by law for appeals from the county court to the circuit court in municipal annexation cases.
      2. In like manner, the final judgment of the circuit court may be appealed by any interested person or taxpayer to the Supreme Court likewise as in such cases.
    1. Any appeal to the circuit court or from the circuit court to the Supreme Court must be taken and transcript lodged in the appellate court not later than thirty (30) days after the judgment or order of the court appealed from, and that appeal shall be advanced on motion of any party thereto.
    2. In the event of any appeal from the order of the county court as provided in this subsection, the order shall not become final until the appeal is finally determined.

History. Acts 1951, No. 26, §§ 1, 2; 1957, No. 37, § 1; 1975, No. 192, § 1; A.S.A. 1947, §§ 17-313, 17-314; Acts 2009, No. 410, § 7.

Amendments. The 2009 amendment in (c)(3) inserted “or needs to be used by the county” and made minor stylistic changes.

Case Notes

Appeals.

Appeal from action of county court denying petition for order nunc pro tunc because of loss of original order under subsections (a)-(c) granting lease to chamber of commerce by county was governed by general provisions of § 16-67-201 rather than subsection (d). Piggott Junior Chamber of Commerce, Inc. v. Hollis, 242 Ark. 205, 412 S.W.2d 595 (1967).

Cited: Piggott Junior Chamber of Commerce, Inc. v. Hollis, 242 Ark. 205, 412 S.W.2d 595 (1967); Hollis v. Piggott Junior Chamber of Commerce, 248 Ark. 725, 453 S.W.2d 410 (1970).

14-16-111. Development of port facilities.

  1. Any county in this state which is partially bounded by a navigable stream or through which a navigable stream flows may independently, or jointly with another county, or with one (1) or more municipalities, establish, equip, maintain, and operate a river port or port facility at an appropriate place in the county. The county may issue bonds to provide funds for the construction and operation of the port facility in the manner and under the conditions and requirements as prescribed in §§ 14-186-401 — 14-186-417.
  2. The provisions of this section shall be supplemental to and shall not repeal, modify, or otherwise affect any other laws of this state relating to the establishment of port facilities by counties and cities in this state.

History. Acts 1971, No. 150, §§ 1, 2; A.S.A. 1947, §§ 17-320, 17-320n.

Cross References. Harbors and port facilities generally, § 14-186-101 et seq.

14-16-112. Flood control.

    1. The counties of this state are authorized and empowered to enter upon, take, and hold any lands or interest, easement, or servitude therein, whether by purchase, grant, donation, devise, or otherwise, that may be necessary and proper for the location, construction, operation, repair, or maintenance of any floodway, reservoir, spillway, levee or diversion, or other flood control improvements.
      1. In order to acquire such rights, easements, and servitudes, the counties are given the authority and power to condemn lands or interest therein for these purposes.
      2. In the event it becomes necessary for counties to exercise the right of eminent domain, condemnation proceedings shall be instituted and conducted in the same manner as provided in §§ 18-15-304 — 18-15-307.
  1. Nothing in this section shall ever be so construed or applied as to relieve the federal government of any liability or responsibility which it has assumed by the passage of the Flood Control Act of May 15, 1928, or the Flood Control Act of June 15, 1936, or any other existing law, or any law that may hereafter be passed by the United States Congress.

History. Acts 1955, No. 73, § 1; A.S.A. 1947, § 17-315.

U.S. Code. The Flood Control Act of Congress approved May 15, 1928, referred to in this section, is codified as 33 U.S.C. §§ 702a, 702b-702d, 702e-702g, 702h-702j, 702k, 702l, 702m, and 704.

The Flood Control Act of Congress approved June 15, 1936, referred to in this section, is codified as 33 U.S.C. §§ 702a-1, 702a-2 — 702a-11, 702g-1, 702j-1, 702j-2, 702k-1, and 702k-2.

Cross References. Distribution of federal funds received for lease of lands for flood control purposes, § 19-7-403.

14-16-113. Sale proceeds paid into county road fund.

Upon the sale of county property which the county purchased with funds from the county road fund, the proceeds of the sale shall be paid into the county road fund. If, in addition to county road funds, other funds were used by the county to purchase the property, then the amount to be paid into the county road fund shall be a portion of the proceeds determined by using the ratio of the amount of county road funds used by the county in purchasing the property to the full purchase price paid by the county.

History. Acts 1989, No. 169, § 1.

14-16-114. Financial aid.

  1. Counties, pursuant to an ordinance properly and lawfully adopted by their quorum courts, are empowered and authorized to annually grant financial aid to any public postsecondary educational institution located within their borders for the purpose of assisting the institution in paying its lawful expenses of operation.
  2. The ordinance shall be effective for a period of twelve (12) months.

History. Acts 1993, No. 866, § 1.

Publisher's Notes. Acts 1993, No. 866, § 1, is also codified as § 14-58-505.

14-16-115. Resident bidding preference limitation.

Unless a bidding preference for firms resident in the county or in the state is authorized by state law, no county shall allow such a preference in the awarding of a construction contract.

History. Acts 1997, No. 1161, § 1.

14-16-116. Property exchange or transfer by counties.

  1. A county may:
    1. Exchange or transfer properties, real or personal, with other counties, municipalities, community colleges, or institutions of higher education; and
    2. Exchange real property with individuals or nonprofit corporations when in the best interest of the county.
    1. An exchange or transfer under this section shall be:
      1. Authorized, approved, or confirmed by ordinance of the quorum court; and
      2. Accomplished in accordance with procedures prescribed or confirmed by the quorum court.
    2. An ordinance adopted by the quorum court under this section shall be:
      1. Confirmed by a two-thirds (2/3) vote of the quorum court; and
      2. Filed with the county clerk and include a copy of the bill of sale setting forth the terms and conditions of the sale, transfer, deed, or conveyance.
  2. An agreement for service, legal tender, or other consideration may be accepted in exchange for real or personal property under this section.
  3. A transfer made under this section is exempt from §§ 14-16-105 and 14-16-106, § 14-22-101 et seq., and the Arkansas Procurement Law, § 19-11-201 et seq.

History. Acts 1999, No. 1248, § 1; 2015, No. 98, § 1; 2019, No. 502, § 1.

Publisher's Notes. Acts 1999, No. 1248 became law without the Governor's signature.

Amendments. The 2015 amendment designated the former section as (a) and (b); in (a), inserted “or transfer” and substituted “counties, municipalities, community colleges, or institutions of higher education” for “counties or with municipalities”; in (b), substituted “An exchange or transfer under this section” for “Provided, any such exchange,” deleted “shall be” preceding “accomplished,” and inserted “or confirmed”; added (c) and (d); and inserted “or transfer” in the section heading.

The 2019 amendment substituted “A county may” for “Counties are authorized to” in (a); added the (a)(1) designation; added “and” at the end of (a)(1); added (a)(2); added the (b)(1), (b)(1)(A), and (b)(1)(B) designations and made related changes; substituted “Authorized, approved, or confirmed by ordinance” for “approved by ordinances” in (b)(1)(A); and added (b)(2).

14-16-117. Controlled burns.

A property owner in an unincorporated area of a county may conduct a controlled burn of a residence or structure on the property owner's property in the county if:

  1. The property owner applies to the county judge of that county and the fire department that is responsible for providing fire protection services for the property for approval to conduct the controlled burn;
  2. The application under subdivision (1) of this section is approved by the county judge and the fire department; and
  3. Before the approval under subdivision (2) of this section, the property owner demonstrates to the county judge and the fire department that:
    1. The property owner has complied with applicable state and federal environmental laws, rules, and regulations regarding asbestos abatement;
    2. The property owner ensures that the residence or structure is free of asbestos-containing materials, is free of contents, and otherwise demonstrates compliance with applicable state and federal environmental laws, rules, and regulations regarding hazardous wastes; and
    3. Provisions are made for the proper disposal of any remaining debris.

History. Acts 2015, No. 1274, § 1; 2017, No. 299, § 1; 2019, No. 315, § 989.

Amendments. The 2017 amendment inserted “in an unincorporated area of a county” in the introductory language; and substituted “county judge” for “quorum court” in (1), (2), and (3).

The 2019 amendment inserted “rules” following “laws” in (3)(A) and (3)(B).

Subchapter 2 — Public Recreation and Playgrounds

Publisher's Notes. Acts 1941, No. 291 is also codified as § 6-21-501 et seq. and § 14-54-1301 et seq.

Cross References. Parks annexed to city, § 14-40-204.

Title to parks not acquired by adverse possession, § 22-1-201.

Effective Dates. Acts 1941, No. 291, § 6: approved Mar. 26, 1941. Emergency clause provided: “This act being necessary for the promotion of an adequate National Defense and an able-bodied citizenry, an emergency is declared to exist and the same shall take effect and be in force from and after its passage.”

Case Notes

Swimming Pools.

For cases discussing liability in operation of swimming pools by municipalities, see Handley v. City of Hope, 137 F. Supp. 442 (W.D. Ark. 1956), appeal dismissed, Handley v. Hope, 239 F.2d 647 (8th Cir. Ark. 1956); Cabbiness v. City of N. Little Rock, 228 Ark. 356, 307 S.W.2d 529 (1957).

Cited: Kendall v. Henderson, 238 Ark. 832, 384 S.W.2d 954, 384 S.W.2d 955 (1964).

14-16-201. Authority to operate.

  1. Any county or county board may:
    1. Operate a program of public recreation and playgrounds;
    2. Acquire, equip, and maintain land, buildings, or other recreational facilities; and
    3. Expend funds for the operation of the program pursuant to the provisions of this subchapter.
  2. The provisions of this subchapter shall not apply to § 17-22-201 et seq.

History. Acts 1941, No. 291, § 1; A.S.A. 1947, § 19-3601.

14-16-202. Operation of programs generally.

  1. Any county or county board may operate a program of public recreation and playgrounds independently; or they may cooperate in its conduct and in any manner in which they may mutually agree, including with cities, towns, or school districts; or they may delegate the cooperation of the program to a recreation board created by one or more of them and appropriate money voted for this purpose to the board.
  2. In the case of school districts, the right to enter into such agreements with any other public corporation, board, or body or the right to delegate power to a board for operating a program of recreation shall be authorized only by a majority vote cast at an annual school election.

History. Acts 1941, No. 291, § 2; A.S.A. 1947, § 19-3602.

14-16-203. State aid not used.

State aid shall not be used for recreational purposes as provided in this subchapter.

History. Acts 1941, No. 291, § 2; A.S.A. 1947, § 19-3602.

14-16-204. Use of school funds.

In all cases where school funds are utilized for programs under this subchapter, the State Board of Education shall prepare, or cause to be prepared, published, and distributed, adequate and appropriate manuals and other materials as it may deem necessary or suitable to carry out the provisions of this subchapter.

History. Acts 1941, No. 291, § 4; A.S.A. 1947, § 19-3604.

14-16-205. Gifts and bequests.

Any corporation, board, or body given charge of a recreation program shall have authority to accept gifts and bequests for the benefit of the recreational service.

History. Acts 1941, No. 291, § 3; A.S.A. 1947, § 19-3603.

14-16-206. Property used for activities.

Any corporation, board, or body given charge of a recreation program is authorized to conduct its activities on:

  1. Property under its custody and management;
  2. Other public property under the custody of any other public organization, body, or board, with the consent of the corporations, bodies, or boards; and
  3. Private property, with the consent of its owners.

History. Acts 1941, No. 291, § 3; A.S.A. 1947, § 19-3603.

14-16-207. Use of school facilities.

  1. The facilities of any school district operating a recreation program pursuant to the provisions of this subchapter shall be used primarily for the purpose of conducting the regular school curriculum and related activities, and the use of school facilities for recreation purposes authorized by this subchapter shall be secondary.
  2. In all cases where school property is utilized for programs under this subchapter, the State Board of Education shall prepare or cause to be prepared, published, and distributed adequate and appropriate manuals and other materials as it may deem necessary or suitable to carry out the provisions of this subchapter.

History. Acts 1941, No. 291, §§ 4, 5; A.S.A. 1947, §§ 19-3604, 19-3605.

14-16-208. Directors and instructors.

  1. Any corporation, board, or body given charge of a recreation program shall have authority to employ directors and instructors of recreational work.
  2. In all cases where school funds or property are utilized for programs under this subchapter, the State Board of Education shall establish minimum qualifications of local recreational directors and instructors.

History. Acts 1941, No. 291, §§ 3, 4; A.S.A. 1947, §§ 19-3603, 19-3604.

Subchapter 3 — Public Property for Processing Crude Biogenic Gases

Publisher's Notes. Acts 1983, No. 478, is also codified as § 14-54-401 et seq.

14-16-301. Authority to lease, etc.

Each county shall have the authority to lease, let, sell, or convey any real property owned or controlled by the county for the production, reclamation, and refining of crude biogenic gases pursuant to competitive sealed bidding procedures under this subchapter.

History. Acts 1983, No. 478, § 1; A.S.A. 1947, § 19-2356.

14-16-302. Bidding process.

    1. The county judge shall publish a notice inviting sealed bids for the leasing, letting, selling, or conveying of real property for the production, reclamation, and refining of crude biogenic gases. This notice shall be published in a legal newspaper in the county where the property is located one (1) time each week for the four (4) weeks immediately prior to the date set for receiving bids.
    2. No bid shall be received, accepted, or considered when received after the date set for the receipt of bids.
    1. Within thirty (30) days after the date set for the receipt of bids, the bids shall be opened and read at a public meeting of the county quorum court.
      1. At the meeting, the county judge shall select and award the lease to the property or award the property to the highest, responsible, and best bidder.
      2. The county judge may reject all bids and begin the bidding process anew.

History. Acts 1983, No. 478, § 2; A.S.A. 1947, § 19-2357.

14-16-303. Implementing legislation.

Each county may provide, by ordinance, for the implementation of this subchapter, but no provision shall be contrary to it.

History. Acts 1983, No. 478, § 3; A.S.A. 1947, § 19-2358.

14-16-304. Authority to issue bonds.

This subchapter shall not limit the authority of any county to lease, let, sell, or convey any real property pursuant to the Arkansas Constitution and the laws of Arkansas concerning the issuance of bonds for the purpose of industrial development and other lawful purposes.

History. Acts 1983, No. 478, § 4; A.S.A. 1947, § 19-2359.

Research References

U. Ark. Little Rock L.J.

Survey, Water and Environmental Law, 12 U. Ark. Little Rock L.J. 665.

Subchapter 4 — Areas Adjacent to Shopping Centers

Publisher's Notes. Acts 1973, No. 472, is also codified as § 14-54-501 et seq.

Effective Dates. Acts 1977, No. 796, § 3: Mar. 28, 1977. Emergency clause provided: “The General Assembly of the State of Arkansas hereby finds that the matters affected by this Act have a direct relation to the administration of justice and the preservation of public order and safety in the areas affected. Therefore, an emergency is hereby found and declared to exist, and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after the date of its passage and approval.”

14-16-401. Authority to control use.

The county courts of this state are delegated the power and authority to enter orders to limit and control the use of areas adjacent to shopping centers and other commercial enterprises which are privately owned but which are maintained for the convenience of the public so as to provide ingress and egress, loading and unloading areas, fire lanes, parking spaces, parking areas designated for the exclusive use of individuals with disabilities, and other measures for the safety and convenience of the public.

History. Acts 1973, No. 472, § 1; 1985, No. 527, § 1; A.S.A. 1947, § 19-2350.

14-16-402. Plat of area.

  1. No order shall be entered unless and until the owner or lessee of an area sought to be regulated has presented to the county court a plat of the area upon which is shown the proposed limitations and controls.
  2. The plat shall in no way limit the power and authority of the county court but shall be advisory only.

History. Acts 1973, No. 472, § 2; A.S.A. 1947, § 19-2351.

Research References

U. Ark. Little Rock L.J.

Survey, Water and Environmental Law, 12 U. Ark. Little Rock L.J. 665.

14-16-403. Posting of signs, etc. — Penalty.

  1. When the county court has entered an order, at his or her expense the owner or lessee of the area to be controlled shall post the signs, paint the lines, arrows, and curbings in the required colors, and install the devices and signals to apprise the public of the existence of the court order.
  2. Thereafter, persons who violate these orders shall be punished as provided in the orders. However, no fine shall be less than five dollars ($5.00) nor more than fifty dollars ($50.00).

History. Acts 1973, No. 472, § 3; A.S.A. 1947, § 19-2352.

14-16-404. Policing of area.

  1. No county shall be required to patrol the area which is controlled as provided in this subchapter, but, upon being called, law enforcement officers shall come to the scene of the alleged violation and, where warranted by law or ordinance, issue citations or make arrests.
  2. This section is cumulative to other laws on this subject and specifically does not repeal § 16-81-108.

History. Acts 1973, No. 472, § 4; 1977, No. 796, §§ 1, 2; A.S.A. 1947, §§ 19-2353, 19-2353.1.

14-16-405. Tort liability unchanged.

Nothing in this subchapter shall limit or extend the law of this state with reference to tort liability of any person, firm, or corporation.

History. Acts 1973, No. 472, § 5; A.S.A. 1947, § 19-2354.

Subchapter 5 — Regulation of Use of Firearms and Archery Equipment

A.C.R.C. Notes. References to “this subchapter” in §§ 14-16-50114-16-503 may not apply to § 14-16-504 which was enacted subsequently.

Cross References. Sport shooting range noise pollution, § 16-105-501 et seq.

14-16-501. Regulation upon request of suburban improvement district.

  1. Upon the written request of the governing body of a suburban improvement district, a county may by ordinance regulate the discharge of firearms and the shooting of archery equipment within all or any part of the suburban improvement district.
  2. As used in this section, “suburban improvement district” means a suburban improvement district which includes as one of its purposes for organization the construction or maintenance of roads or streets and which is governed by § 14-92-201 et seq. or its predecessor acts.

History. Acts 1991, No. 385, § 1; 1991, No. 681, § 1.

14-16-502. Regulation upon request of property owners' association.

Upon the written request of a property owners' association which has a population at least equal to that prescribed for cities of the first class and which is located outside the boundaries of a municipality, a county may by ordinance regulate the discharge of firearms and the shooting of archery equipment within all or any part of the area included in the property owners' association.

History. Acts 1991, No. 385, § 2.

14-16-503. Exemptions.

Nothing in this subchapter shall be construed to prohibit:

  1. The discharge of a firearm or archery equipment in the defense of life or property;
  2. The discharge of a firearm or archery equipment at a public or private shooting range or gallery; or
  3. The discharge of a firearm by a law enforcement officer in the performance of his or her duty.

History. Acts 1991, No. 385, § 3.

14-16-504. Regulation by local unit of government.

  1. As used in this section, “local unit of government” means a city, town, or county.
      1. A local unit of government shall not enact any ordinance or regulation pertaining to, or regulate in any other manner, the ownership, transfer, transportation, carrying, or possession of firearms, ammunition for firearms, or components of firearms, except as otherwise provided in state or federal law.
      2. The provision in subdivision (b)(1)(A) of this section does not prevent the enactment of an ordinance regulating or forbidding the unsafe discharge of a firearm.
      1. A local unit of government shall not have the authority to bring suit and shall not have the right to recover against any firearm or ammunition manufacturer, trade association, or dealer for damages, abatement, or injunctive relief resulting from or relating to the lawful design, manufacture, marketing, or sale of firearms or ammunition to the public.
      2. The authority to bring any suit and the right to recover against any firearm or ammunition manufacturer, trade association, or dealer for damages, abatement, or injunctive relief shall be reserved exclusively to the State of Arkansas.
      3. However, subdivisions (b)(1)(A) and (B) of this section do not prevent a local unit of government from bringing suit against a firearm or ammunition manufacturer or dealer for breach of contract or warranty as to firearms or ammunition purchased by the local unit of government.
    1. The governing body of a local unit of government, following the proclamation by the Governor of a state of emergency, is prohibited from enacting an emergency ordinance regulating the transfer, transportation, or carrying of firearms or components of firearms.
    2. A person who has his or her firearm seized in violation of subdivision (c)(1) of this section may bring an action in the circuit court having jurisdiction for the return of the seized firearm.

History. Acts 1993, No. 1100, §§ 1-3; 1999, No. 951, § 1; 2011, No. 165, § 1.

A.C.R.C. Notes. References to “this subchapter” in §§ 14-16-50114-16-503 may not apply to this section which was enacted subsequently.

Publisher's Notes. Acts 1993, No. 1100, §§ 1-3, are also codified as § 14-54-1411.

Amendments. The 2011 amendment substituted “The provision in subdivision (b)(1)(A) of this section does” for “This shall” in (b)(1)(B); substituted “However, subdivisions (b)(1)(A) and (B) of this section do” for “Provided, this shall” in (b)(2)(C); in (c)(1), deleted “Notwithstanding subsection (b) of this section” at the beginning and substituted “is prohibited from enacting” for “may enact”; and rewrote (c)(2).

Subchapter 6 — Rent Control Preemption

14-16-601. Rent control preemption.

  1. As used in this section, “local governmental unit” means a political subdivision of this state, including, but not limited to, a county, city, village, or township, if the political subdivision provides local government services for residents in a geographically limited area of this state as its primary purpose and has the power to act primarily on behalf of that area.
  2. A local governmental unit shall not enact, maintain, or enforce an ordinance or resolution that would have the effect of controlling the amount of rent charged for leasing private residential or commercial property.
  3. This section does not impair the right of any local governmental unit to manage and control residential property in which the local governmental unit has a property interest.

History. Acts 1993, No. 545, §§ 1-3.

Publisher's Notes. Acts 1993, No. 545, §§ 1-3 are also codified as § 14-54-1409.

Subchapter 7 — Regulation of Dogs and Cats

14-16-701. Regulation by suburban improvement district.

  1. Upon the written request of the governing body of a suburban improvement district, a county may by ordinance control and regulate dogs and cats within all or any part of the suburban improvement district.
  2. As used in this section, “suburban improvement district” means a suburban improvement district which includes as one of its purposes for organization the construction or maintenance of roads or streets and which is governed by § 14-92-201 et seq. or its predecessor acts.

History. Acts 1993, No. 622, § 1.

Subchapter 8 — Preservation of Local Public Roads Act

Effective Dates. Acts 2009, No. 810, § 2: Apr. 3, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that while oil or gas exploration has stimulated Arkansas's economy, the hauling operations for the disposal of materials and production fluids from oil or gas operations require the hauling of heavy loads that cause damage to roads; that the costs of repairing, resurfacing, and maintaining roads has increased dramatically in the last two (2) years, while many counties are facing declining revenue collections; and that this act is immediately necessary to provide a uniform procedure for counties that do not have road maintenance agreements with disposal haulers and disposal operators to use to ensure that adequate revenue is available to make repairs necessary to local public roads. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

14-16-801. Title.

This subchapter shall be known and may be cited as the “Preservation of Local Public Roads Act”.

History. Acts 2009, No. 810, § 1.

14-16-802. Purpose.

The purpose of this subchapter is to provide a procedure for addressing the anticipated damage to county roads caused by disposal hauling operations related to oil or gas exploration and to provide compensation for the anticipated damage to the roads from disposal haulers.

History. Acts 2009, No. 810, § 1.

14-16-803. Definitions.

As used in this subchapter:

  1. “Designated local road truck route” means a local public road established by the county judge as the route to be used by disposal haulers to transport materials and production fluids related to oil or gas exploration to and from a disposal facility;
  2. “Disposal facility” means a surface or injection well disposal facility designated for the disposal of materials and production fluids related to oil or gas exploration that is located on or off a local public road in the state;
  3. “Disposal hauler” means the driver, owner, or operator of a motor vehicle that is engaged in hauling materials or production fluids related to oil or gas exploration to a disposal facility;
  4. “Disposal operator” means the owner, manager, or operator of a disposal facility;
    1. “Local public road” means any public road that lies between the disposal facility and a road, street, or highway that is part of the state highway system.
    2. “Local public road” does not include a road, street, or highway that is part of the state highway system; and
  5. “Road maintenance agreement” means an agreement between the county and a disposal operator regarding compensation for damages caused by disposal haulers to any designated local road truck route.

History. Acts 2009, No. 810, § 1.

14-16-804. Evaluation by county judge.

  1. Notwithstanding any other procedure or authority available under law, if a county does not have a road maintenance agreement, the county judge may use the procedures under this section to evaluate the use and anticipated damage caused to local public roads in the county by disposal haulers.
  2. As part of the evaluation process, the county judge may:
    1. Receive and consider input from disposal operators on the designated local road truck route;
    2. Estimate the number of loads and damages to be sustained upon the designated local road truck route by disposal haulers;
    3. Estimate the total dedicated road revenues available to the county on an average per-mile basis for all of the local public roads in his or her respective county; and
    4. Estimate the additional revenue that may be necessary to repair and maintain the designated local road truck route because of anticipated damages.
  3. A county judge who has performed an evaluation under this section may file a report of the evaluation determinations with the quorum court.

History. Acts 2009, No. 810, § 1.

14-16-805. Recommendation for assessment ordinance.

  1. A county judge who has performed an evaluation under § 14-16-804 may submit to the quorum court a recommendation that an assessment be made by the county in the form of a proposed assessment ordinance as provided under this section.
    1. The proposed assessment ordinance shall include the amount that the county judge recommends to be assessed on a per-load basis for each load that is transported by a disposal hauler to a disposal facility.
    2. The maximum amount of the assessment in the proposed assessment ordinance is five dollars ($5.00) per load of materials or production fluids from oil or gas exploration.
  2. The proposed assessment ordinance shall include a penalty as provided under § 14-16-808.

History. Acts 2009, No. 810, § 1.

14-16-806. Assessment ordinance — Collection.

  1. If a quorum court enacts the proposed assessment ordinance recommended by the county judge under § 14-16-805, the assessment ordinance:
    1. Is limited to a maximum amount of five dollars ($5.00) per load of materials or production fluids from oil or gas exploration; and
    2. Shall include a penalty as provided under § 14-16-808.
    1. If a quorum court enacts an assessment ordinance under this subchapter, the assessment shall be collected by the disposal operator and remitted to the county treasurer on a monthly basis as provided in the ordinance.
    2. All revenue generated by this assessment shall be used exclusively to maintain and repair the designated local road truck route.

History. Acts 2009, No. 810, § 1.

14-16-807. Oversight.

  1. If a county judge makes recommendations under this subchapter, the county judge shall annually review his or her evaluation and recommendations as provided under this subchapter.
  2. If there is a significant change in conditions, the county judge shall file a revised evaluation and revised recommendations for consideration by the quorum court using the same procedures under which the original evaluation and recommendations were made under this subchapter.

History. Acts 2009, No. 810, § 1.

14-16-808. Penalties.

The quorum court may provide penalties for the violation of an ordinance enacted under this subchapter to include a fine to be levied:

  1. For the failure of a disposal hauler to follow the designated local road truck route; and
  2. Against a disposal operator who fails to comply with § 14-16-806(b).

History. Acts 2009, No. 810, § 1.

Chapter 17 County Planning

Research References

ALR.

Zoning regulations prohibiting or limiting fences, hedges, or walls. 1 A.L.R.4th 373.

Validity of “war zone” ordinances restricting location of sex-oriented businesses. 1 A.L.R.4th 1297.

Enforcement of zoning regulation as affected by other violations. 4 A.L.R.4th 462.

Validity and construction of provisions of zoning statute or ordinance regarding protest by neighboring property owners. 7 A.L.R.4th 732.

Standing of civic or property owners' association to challenge zoning board decision (as aggrieved party). 8 A.L.R.4th 1087.

Construction of new building or structure on premises devoted to nonconforming use as zoning violation. 10 A.L.R.4th 1122.

Ordinance restricting number of unrelated persons who can live together in residential zone. 12 A.L.R.4th 238.

Standing of zoning board of appeals or similar body to appeal reversal of its decision. 13 A.L.R.4th 1130.

Validity and construction of statute or ordinance protecting historical landmarks. 18 A.L.R.4th 990.

Local use zoning of wetlands or flood plain as taking without compensation. 19 A.L.R.4th 756.

Applicability and application of zoning regulations to single residences employed for group living of mentally retarded persons. 32 A.L.R.4th 1018.

Am. Jur. 56 Am. Jur. 2d, Mun. Corp. & Coun., § 161.7.

83 Am. Jur. 2d, Zoning, §§ 7 et seq., 13, 17 et seq., 128 et seq.

Ark. L. Rev.

Burton, Predatory Municipal Zoning Practices: Changing the Presumption of Constitutionality in the Wake of the “Takings Trilogy,” 44 Ark. L. Rev. 65.

U. Ark. Little Rock L.J.

Note, Property — Zoning — The Courts Further Define Their Limited Role. City of Little Rock v. Breeding, 273 Ark. 437, 619 S.W.2d 664 (1981). 5 U. Ark. Little Rock L.J. 279.

Subchapter 1 — General Provisions

[Reserved]

Subchapter 2 — County Planning Boards

Effective Dates. Acts 1981, No. 516, § 4: Mar. 16, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that the conflict contained in Section 1.0 of Act 422 of 1977 and in Section 103 of Chapter 6 of Act 742 of 1977 regarding the number of members of county planning boards has created considerable confusion and has been detrimental to the effective and efficient operation of planning boards in the respective counties; that this Act is designed to correct this conflict and to specifically provide that county planning boards shall consist of not less than five (5) nor more than twelve (12) members; and that this Act should be given effect immediately in order to enable the county planning board in the respective counties to carry out their functions and duties as prescribed by law. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1981, No. 532, § 2: Mar. 17, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that the filing of instruments transferring title to property is fundamental to protecting a person's title to such property, and that it is in the public interest that the county recorder accept such instruments as are presented for record, and that in order to assure said rights, it is immediately necessary to amend Act 422 of 1977 to clarify the provisions of the County Planning Law, and to prohibit the County Planning Board from adopting any regulation that might restrict a person's right to file deeds or other instruments of property transfer with the county recorder for record. Therefore, an emergency is hereby declared to exist and this Act, being necessary for the immediate preservation of the public peace, health, and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1981, No. 691, § 2: Mar. 23, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that the filing of plats is fundamental to protecting a person's title to property, and that it is in the public interest that the County Recorder cooperate with the Planning Board in counties with populations of 300,000 or greater in acceptance of such plats as are presented for record, and that in order to assure said rights and cooperation, it is immediately necessary to amend Act 422 of 1977, to clarify the provisions of the County Planning Law. Therefore, an emergency is hereby declared to exist and this Act, being necessary for the immediate preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

Research References

Ark. L. Notes.

Olson, Agricultural Zoning: A Remedy for Land Use Conflicts Between Poultry Production and Residential Development In Northwest Arkansas, 1997 Ark. L. Notes 119.

14-17-201. Construction.

This subchapter shall be construed liberally. The enumeration of any object, purpose, power, manner, method, or thing shall not be deemed to exclude like or similar objects, purposes, powers, manners, methods, or things.

History. Acts 1977, No. 422, § 10.0; A.S.A. 1947, § 17-1116.

14-17-202. Applicability.

  1. Nothing in this subchapter shall invalidate any plans, ordinances, or regulations duly adopted in accordance with the statutes in effect at the time of adoption.
  2. No alteration or amendments shall be made to existing plans, ordinances, and regulations unless in conformity with the provisions of this subchapter.

History. Acts 1977, No. 422, § 8.0; A.S.A. 1947, § 17-1114.

14-17-203. Creation and organization.

  1. With the approval of the majority of the members of the county quorum court, the county judge of any county may create a county planning board. The board shall consist of not less than five (5) members nor more than twelve (12) members appointed by the judge and confirmed by the court. At least one-third (1/3) of the members shall not hold any other elective office or appointment, except membership on a municipal or joint planning commission or a zoning board of adjustment.
  2. The term of each member shall be four (4) years. In the initial appointments to the board, a majority, but not exceeding three-fifths (3/5) of the total membership of the board, shall be appointed for two (2) years and the remaining members for four (4) years. A vacancy in the membership due to death, resignation, removal, or other cause shall be filled by an appointee of the judge, confirmed by the court, for the unexpired term. Any member of the board shall be subject to removal for cause upon recommendation of the judge and confirmation by the court.
  3. The board shall designate one (1) of its members as chair and select a vice chair and such other officers as it may require.
  4. A regular meeting date shall be established providing for at least one (1) regular meeting to be held in each quarter of each calendar year.
  5. The board shall adopt rules and regulations for the discharge of its duties and the transaction of business and shall keep a public record of all business, resolutions, transactions, findings, and determinations.
  6. County quorum courts may elect to assume the powers, duties, and functions of the board. Such a determination shall be implemented by ordinance. A court which elects to exercise this option shall not be bound by the provisions of this section and § 14-17-204, but may establish by ordinance such administrative changes as may be appropriate.
      1. A county quorum court may elect to act as a board of administrative appeal prior to an appeal to circuit court from a decision of the county planning board.
      2. The county judge shall be the chair of the board of administrative appeal but shall vote only in the event of a tie.
      3. The county quorum court shall determine the number of quorum court members who shall sit on the board of administrative appeal.
    1. Any appeal concerning roads shall be appealed directly to circuit court.

History. Acts 1981, No. 516, § 2; A.S.A. 1947, § 17-1107; Acts 2007, No. 565, § 1.

Publisher's Notes. Acts 1981, No. 516, § 1, provided that it is found and determined by the General Assembly that Acts 1977, No. 422, § 1.0, provides that the county planning board in each county shall consist of not less than five (5) nor more than twelve (12) members; that Acts 1977, No. 742 provides that county administrative boards shall consist of five (5) members; that as a result of the conflict in the two acts regarding the number of members on county planning boards, there is considerable confusion and disagreement regarding the membership of county planning boards; that this conflict and confusion should be corrected in order to enable county planning boards to carry out their responsibilities in an effective and efficient manner; therefore, it is the purpose and intent of this act to reenact Acts 1977, No. 422, § 1.0, to clarify this conflict and to remove the confusion regarding county planning boards by specifically providing that county planning boards shall consist of not less than five (5) nor more than twelve (12) members.

Case Notes

Constitutionality.

The General Assembly has the authority to create county planning boards and to provide rules and regulations for their government. Newton v. American Sec. Co., 201 Ark. 943, 148 S.W.2d 311 (1941) (decision under prior law).

Due Process.

Planning board member did not abuse the member's discretion as a board member, after a recusal due to a conflict of interest, by voicing the member's opposition as a member of the public at meetings and a review regarding an application for a large-scale development permit because the applicants for the permit, thereby. were not denied due process. Lewis v. Benton County, 2014 Ark. App. 316, 436 S.W.3d 181 (2014).

14-17-204. Employees and facilities.

  1. The county judge may appoint such employees as he or she may deem necessary for the county planning board's work, whose appointment, promotion, demotion, or removal shall be subject to the same provisions of the law as govern other employees of the county. In the manner provided by law, the county may contract for services necessary to carry out the functions of the board.
  2. The county may receive and spend funds from federal, state, county, municipal, and other public and private sources for planning activities and may contract with respect thereto. All board expenditures shall be within the amounts appropriated by the county quorum court.
  3. Members of the board established pursuant to the provisions of this subchapter shall be entitled to receive such compensation, if any, for attendance at board meetings and the carrying out of board-related activities as may be authorized by ordinance duly adopted by the court.
  4. The board shall be supplied with necessary office space in the county courthouse or other suitable quarters and shall be provided with the necessary equipment to carry out its activities.

History. Acts 1977, No. 422, § 2.0; A.S.A. 1947, § 17-1108.

14-17-205. Powers, duties, and functions.

  1. The general purpose of the county planning board is to promote public interest in planning, to prepare or have prepared plans for the county, to receive and make recommendations on public and private proposals for development, to prepare and transmit to the county quorum court recommended ordinances implementing plans, and to advise and counsel the county judge, the court, and other public bodies on planning-related matters.
  2. The board may prepare and recommend an official plan for the development of the county. The board shall have the authority to confer with federal, state, municipal, and other county and regional authorities regarding matters pertaining to or affecting the planning or development of the county, or vice versa, for the purpose of assuring proper coordination of county development with that of other political subdivisions.
  3. All public officials, departments, and agencies of the county, upon request and within a reasonable time, shall furnish the board with such available information as it may require for its work. The board may prepare and keep up-to-date a long-term coordinated program of public works and budgets therefor in conformity with an official county plan.
  4. The board, its members, officers, and employees, in the performance of their functions, may enter upon any land to make necessary inspections.
  5. For the purpose of special surveys, the county judge may assign or detail members of the staff or personnel of any county administrative department, bureau, or agency to the board or may direct any such department, bureau, or agency to make special surveys or studies for the board.
  6. The board shall have such powers, duties, and functions in the areas of plan adoption and enforcement, subdivision, and zoning as specified in §§ 14-17-207 — 14-17-209 and such other duties as may be assigned by the court.

History. Acts 1977, No. 422, § 3.0; A.S.A. 1947, § 17-1109.

Case Notes

Jurisdiction.

Where there was a conflict over the exercise of jurisdiction over roads in an unincorporated portion of a county, between the county court and any creature of the General Assembly, the latter had to give way. Butler v. City of Little Rock, 231 Ark. 834, 332 S.W.2d 812 (1960) (decision under prior law).

Zoning.

While the county planning commission could recommend zoning of unincorporated areas as to land use, such recommendations were not binding until adopted by the county court, after a public hearing; and where this necessary action was not disclosed in the record, landowners who sought to enforce provisions of bill of assurance covering nearby subdivision did not have standing under precedents permitting owners of nearby property to challenge changes in zoning, even though they owned no property in the rezoned area. Rickman v. Mobbs, 253 Ark. 969, 490 S.W.2d 129 (1973) (decision under prior law).

14-17-206. Purpose and content of county plan.

  1. The county plan shall be made with the general purpose of guiding and accomplishing a coordinated, efficient, and economic development of the county, or part thereof. In accordance with one (1) or more of the following criteria, the plan shall seek to best promote the health, safety, convenience, prosperity, and welfare of the people of the county.
  2. Each county plan shall reflect the county's development policies and shall contain a statement of the objectives and principles sought to be embodied therein. Each plan, with the accompanying maps, charts, and descriptive matter, may make recommendations, among other things, as to:
    1. The conservation of natural resources;
    2. The protection of areas of environmental concern;
    3. The development of land subject to flooding;
    4. The provision of adequate recreation, education, and community facilities, including water, sewer, solid waste, and drainage improvements;
    5. The development of transportation facilities, housing development, and redevelopment;
    6. The consideration of school district boundaries; and
    7. Other matters which are logically related to or form an integral part of a long-term plan for orderly development and redevelopment of the county.
    1. Areas of critical environmental concern include, among other things, aquifers and aquifer recharge areas, soils poorly suited to development, floodplains, wetlands, prime agricultural and forestlands, the natural habitat of rare or endangered species, areas with unique ecosystems, or areas recommended for protection in the Arkansas natural areas plan. Plans for these areas shall give consideration to protective mechanisms which seek to regulate activities or development in the areas.
    2. These mechanisms may include establishment of special zoning districts, adoption and enforcement of building codes, acquisition of easements or land through capital expenditures programming, and specialized development policies. Where appropriate, county management activities for areas of critical environmental concern shall involve cooperative agreements with interested state and federal agencies.
  3. In the preparation of all plans for the county or part of a county, the county planning board shall:
    1. Provide that plans are consistent with state plans and other related regional, county, and municipal plans, and school district boundaries in order to avoid inconvenience and economic waste and to assure a coordinated and harmonious development of the county, region, and state; and
    2. Notify by first-class mail the boards of directors of all school districts affected by a plan sufficiently in advance to allow representatives of all affected school districts to submit comments on any proposed plan.

History. Acts 1977, No. 422, § 4.0; A.S.A. 1947, § 17-1110; Acts 2005, No. 2144, § 1.

14-17-207. Adoption, amendment, and enforcement of official plans and implementing ordinances.

  1. The county planning board, by majority vote of its entire membership, may recommend to the county quorum court the adoption, revision, or rescission of an official plan for the county or zoning, subdivision, setback, or entry control ordinances referred to as implementing ordinances in this subchapter.
    1. Before the adoption or revision of an official plan or implementing ordinance, or parts thereof, the board shall hold at least one (1) public meeting on the adoption or revision. The meeting may be adjourned from time to time. Prior to the meeting, the board chair shall notify the court of the purpose and intent of the meeting in sufficient time to allow the justices to attend the meeting if they so desire. At the same time, the public shall be notified of the meeting through the local newspapers and other media.
    2. In addition, the board of directors of each school district affected by a proposed official plan or implementing ordinance shall be notified of the meeting by first class mail sufficiently in advance to allow representatives of each affected school district a reasonable opportunity to attend the public meeting and submit comments on any proposed official plan or implementing ordinance.
  2. Following the public meeting and endorsement of the plan or implementing ordinances by the board, as provided in this section, it shall be forwarded to the quorum court for its consideration. The court may adopt the plan as the official plan for the county by ordinance, may modify the plan or parts of the plan, or may return the plan or parts of the plan to the board for further consideration. In the event the court modifies the plan or parts of the plan, it shall return the plan, as modified, to the board with instructions to conduct a public hearing on the modifications as provided in subsection (b) of this section. Following the hearing, the court may adopt, modify, or reject the plan as modified, whether or not the board endorses the modified plan. The same procedures shall be followed for any implementing ordinances enacted by the county. Planning and zoning recommendations initiated by the court shall be sent to the board for the public meeting as required by this subsection.
  3. From and after the adoption by the court of the official county plan, no improvements shall be made or authorized and no property shall be acquired, or its acquisition authorized, by any county or public agency which has, or is likely to have, definite part in or relation to the official county plan unless the proposed location, character, and extent thereof shall have been submitted by the agency concerned to the board and a report and recommendation of the board thereon shall have been received. If the board fails to initiate deliberation on such improvement or acquisition within thirty (30) days after receipt thereof and to furnish in writing its report and recommendations upon a proposal within sixty (60) days thereafter, the agency may proceed without the report and recommendation.
  4. In case any such improvement, ground, building, structure, or property is given a location or extent which does not accord with the report and recommendations of the board, the county official, department, or any other public agency having charge of the location, authorization, acquisition, or construction of it shall file in the office of the board a statement of its or his or her reasons for the departure from the report and recommendation, and such statement shall be open to public inspection.
  5. The quorum court shall provide for the means of enforcing the official plan or zoning, subdivision, setback, and entry control ordinances, shall provide penalties for violations, and may seek appropriate remedies for violations. Any individual aggrieved by a violation of any such plan or ordinance may request an injunction against any individual or property owner in violation or may mandamus any official to enforce the provisions of the ordinance.

History. Acts 1977, No. 422, § 5.0; 1981, No. 278, § 2; A.S.A. 1947, § 17-1111; Acts 2005, No. 2144, § 2.

14-17-208. Subdivision, setback, and entry control ordinances.

  1. The county planning board may prepare and, after approval by the county quorum court, shall administer the ordinance controlling the development of land. The development of land includes, but is not limited to, the provision of access to lots and parcels, the provision of utilities, the subdividing of land into lots and blocks, and the parceling of land resulting in the need for access and utilities.
  2. The ordinance controlling the development of land may establish or provide for minimum requirements as to:
    1. Information to be included on the plat filed for record;
    2. The design and layout of the subdivision, including standards for lots and blocks, streets, public rights-of-way, easements, utilities, consideration of school district boundaries, and other similar items; and
    3. The standards for improvements to be installed by the developer at his or her expense, such as street grading and paving, curbs, gutters, and sidewalks, water, storm, and sewer mains, street lighting, and other amenities.
  3. The ordinance shall require that all plats of two (2) or more parcels be submitted to the county planning board for its approval and certification.
  4. The ordinance may require the installation or assurance of installation of required improvements before plat approval. Further, the regulations may provide for the dedication of all rights-of-way to the public.
  5. Neither the county planning board nor the court shall restrict nor limit the right of any person to file a deed or other instrument of transfer of property with the county recorder to be filed of record.
  6. The ordinance shall establish the procedure to be followed to secure plat approval by the county planning board.
  7. The ordinance shall require the development to conform to the official plan currently in effect. The ordinance may require the reservation or reasonable equivalent contribution of cash, other land, or considerations as approved by the county planning board for future public acquisition of land for community or public facilities indicated in the official plan. The reservation may extend over a period of not more than one (1) year from the date of recording the final plat with the county recorder.
  8. Adoption of a county subdivision ordinance shall be preceded by:
    1. The adoption of an official road plan for the unincorporated areas of the county. The plan shall include, as a minimum, designation of the general location, characteristics, and functions of roads, and the general location of roads to be reserved for future public acquisition. The plan may also recommend, among other things, the removal, relocation, widening, narrowing, vacating, abandonment, change of use, or extension of any public ways; and
    2. Notification by first class mail of the board of directors of each school district affected by a proposed county subdivision ordinance sufficiently in advance to allow representatives of all affected school districts a reasonable opportunity to submit comments on any proposed county subdivision ordinance.
  9. In unincorporated areas adjoining the corporate limits of a municipality in which the authority to control the subdivision of land is vested and is being exercised in accordance with and under the provisions of §§ 14-56-401 — 14-56-408 and 14-56-410 — 14-56-425, or any amendments thereto or thereof, or other acts of a similar nature enacted by the General Assembly, the municipal authority shall have subdivision jurisdiction, but shall transmit copies of proposed plats for the areas to the county planning board and the board of directors of each affected school district for review and comment, which shall be made to the municipal authority within sixty (60) days from the time it is received by the county planning board and the board of directors of each affected school district unless further time is allowed by the municipal authority.
  10. When an official road plan has been adopted and filed as provided for in § 14-17-207, the court, upon recommendation of the county planning board, may enact ordinances establishing setback lines on the major streets and highways as are designated by the plan and may prohibit the establishment of any structure or other improvements within the setback lines.
  11. When an official road plan has been adopted and filed as provided for in § 14-17-207, the court, upon recommendation of the county planning board, may enact ordinances providing for the control of entry into any of the roads shown in the official plan.
    1. Following the adoption of any subdivision, setback, or entry control ordinances by the court, the county recorder shall not accept any plat in the unincorporated area of the county not within the exercised extraterritorial jurisdiction of a municipality for record without the approval of the county planning board.
    2. The county recorder shall not accept any plats in the unincorporated area of the county without the county court's acceptance of:
      1. Roads for perpetual maintenance; and
      2. Any dedication of land for public purposes.

History. Acts 1977, No. 422, § 6.0; 1981, No. 532, § 1; 1981, No. 691, § 1; A.S.A. 1947, § 17-1112; Acts 2005, No. 862, § 1; 2005, No. 2144, § 3.

Cross References. Municipal planning commission territorial jurisdiction, § 14-56-413.

Case Notes

Descriptions.

In a boundary dispute between adjoining property owners involving an alleged “spite” fence, a metes-and-bounds description of the property was not required where the survey that was part of the record sufficiently identified the parties' respective properties so that each party was capable of knowing where their boundary was. Jenkins v. Fogerty, 2011 Ark. App. 720, 386 S.W.3d 704 (2011).

Plats.

In mandamus proceeding to compel circuit clerk to record plat not approved by county planning board because of refusal to dedicate additional strips for roads, court was held not authorized, without any evidence and without any claim that the board acted arbitrarily, to set aside its judgment. Newton v. American Sec. Co., 201 Ark. 943, 148 S.W.2d 311 (1941) (decision under prior law).

In mandamus proceedings to compel circuit clerk to record plat not approved by county planning board because of refusal to dedicate additional strips for roads, trial court's holding that action of the board was unauthorized because no provision was made for compensation to the landowner was held erroneous. Newton v. American Sec. Co., 201 Ark. 943, 148 S.W.2d 311 (1941) (decision under prior law).

Approval of bill of assurance and plat of subdivision by county planning commission did nothing more than entitle the owner to place them of record, and such approval did not operate to confer standing upon landowners outside the subdivision to enforce the bill of assurance; and cases holding that owners of nearby property could challenge changes in zoning, even though they owned no property in the rezoned area, had no applicability where it did not appear that there was any zoning of the subdivision in question. Rickman v. Mobbs, 253 Ark. 969, 490 S.W.2d 129 (1973) (decision under prior law).

14-17-209. Zoning ordinance — Board of zoning adjustment.

  1. The county planning board shall have authority to prepare, or to cause to be prepared, a zoning ordinance for all or part of the unincorporated area of the county, which ordinance shall include both a map and a text. The zoning ordinance may regulate the location, height, bulk, number of stories, and the size of building; open space; lot coverage; density and distribution of population; and the uses of land, buildings, and structures. It may require off-street parking and loading. It may provide for districts of compatible uses, for large-scale unified development, for the control and elimination of uses not in conformance with provisions of the ordinance, and for such other matters as are necessary to the health, safety, and general welfare of the county. The zoning ordinance shall designate districts or zones of such shape, size, or characteristics as deemed advisable for all, or part, of the unincorporated area of the county. The regulations imposed within each district or zone shall be uniform throughout the district or zone.
  2. The determination of zones shall be consistent with any officially adopted plans for the area to be zoned. In the development of zoning districts and their boundaries, due consideration shall be given to the adopted plans of municipal planning commissions for extraterritorial planning areas.
  3. The zoning ordinance shall be observed through denial of the issuance of building permits and use permits.
  4. It shall be unlawful to erect, construct, reconstruct, alter, maintain, or use any land, building, or structure in violation of any ordinance of the county quorum court.
  5. The zoning ordinance shall provide for a board of zoning adjustment which shall be formed in either of the following ways:
    1. A minimum of three (3) residents of the county may be appointed to the board of zoning adjustment; or
    2. The planning board as a whole may sit as the board of zoning adjustment.
  6. Whenever a separate board of zoning adjustment is established, appointments, length of term, vacancies, removal, and compensation shall be the same as for the county planning board.
  7. The board of zoning adjustment shall have the following functions:
    1. To hear appeals from administrative decisions with respect to the enforcement and application of the ordinance and affirm or reverse, in whole or part, the administrative decisions; and
    2. To hear requests for variances from the literal provisions of the zoning ordinance in instances where strict enforcement of the zoning ordinance would cause undue hardship due to circumstances unique to the individual property under consideration and to grant such variances only when it is demonstrated that such action will be in keeping with the spirit and intent of the provisions of the zoning ordinance. The board of zoning adjustment may impose conditions in the granting of a variance to ensure compliance and to protect adjacent property.
  8. The board of zoning adjustment shall not permit, as a variance, any use in a zone that is not permitted under the ordinance.
    1. Decisions of the board of zoning adjustment in respect to subsections (a)-(h) of this section shall be subject to appeal only to a court of record having jurisdiction.
      1. However, a county quorum court may elect to act as a board of administrative appeal prior to an appeal to a court of record from a decision of the board of zoning adjustment.
      2. The county judge shall be the chair of the board of administrative appeal but shall vote only in the event of a tie.
      3. The county quorum court shall determine the number of quorum court members who shall sit on the board of administrative appeal.
    2. Any appeal concerning roads shall be appealed directly to circuit court.

History. Acts 1977, No. 422, § 7.0; A.S.A. 1947, § 17-1113; Acts 2007, No. 565, § 2.

Research References

Ark. L. Rev.

Case Note, Johnson v. Sunray Services, Inc.: Possible Solutions to the NIMBY Syndrome, 45 Ark. L. Rev. 657.

Case Notes

Landfill Sites.

The planning board does have authority to prepare a zoning ordinance for the county, but that is not exclusive authority which divests the quorum court of its power to adopt standards for the location of landfill sites. Johnson v. Sunray Servs., Inc., 306 Ark. 497, 816 S.W.2d 582 (1991).

14-17-210. Unincorporated areas being developed with federal funds.

The county planning board shall have the exclusive zoning and planning jurisdiction over all unincorporated areas lying within a county and along a navigable stream notwithstanding the fact that such areas may be within five (5) miles of the corporate limits of a city having a planning commission if the unincorporated areas are lands upon which a new community has been or is being developed with funds guaranteed, in whole or in part, by the federal government under Title IV of the Housing and Urban Development Act of 1968 or under Title VII of the Housing and Urban Development Act of 1970.

History. Acts 1981, No. 134, § 1; A.S.A. 1947, § 17-1117.

U.S. Code. Title IV of the Housing and Urban Development Act of 1968, referred to in this section, has been largely repealed. A portion of the title is codified as 12 U.S.C. §§ 371 and 1464. Title VII of the Housing and Urban Development Act of 1970 is codified as 12 U.S.C. §§ 371 and 1464, 42 U.S.C. § 4501 et seq.

14-17-211. Appeals.

In addition to any remedy provided by law, appeals from final action taken by administrative, quasi-judicial, and legislative agencies concerned in the administration of this subchapter may be taken to the circuit court of the appropriate county where they shall be tried de novo according to the same procedure applicable to appeals in civil actions from decision of inferior courts, including the right of trial by jury.

History. Acts 1977, No. 422, § 9.0; A.S.A. 1947, § 17-1115.

Research References

Ark. L. Rev.

Case Note, Lost in Translation: Combs v. City of Springdale, An Overview of the Ins and Outs of Appeals Procedure for Administrative Decisions by Local Governments, 61 Ark. L. Rev. 351.

U. Ark. Little Rock L.J.

Stafford, Separation of Powers and Arkansas Administrative Agencies: Distinguishing Judicial Power and Legislative Power, 7 U. Ark. Little Rock L.J. 279.

Case Notes

Applicability.

Circuit court did not err in denying landowners a de novo, jury trial review of a quorum court's decision that changed the land use authorized by a local zoning ordinance when it granted an LLC a conditional use permit to operate a rock quarry. The quorum court's actions were legislative in nature; thus this section did not apply. Bolen v. Wash. County Zoning Bd. of Adjustments, 2011 Ark. App. 319, 384 S.W.3d 33 (2011).

Cited: Benton County v. Overland Dev. Co., 371 Ark. 559, 268 S.W.3d 885 (2007).

14-17-212. County regulation of residential building design elements prohibited — Findings — Exceptions — Definition.

  1. The General Assembly finds that:
    1. The Fair Housing Act, 42 U.S.C. § 3601 et seq., decisions of the United States Supreme Court, and other provisions of federal law establish the principles and standards in this section;
    2. It is difficult and expensive for citizens to readily access fundamental property rights protection in federal court; and
    3. This section is necessary to ensure property rights protection is accessible and to ensure state law is consistent with federal law.
  2. A county shall not regulate residential building design elements.
    1. As used in this section, “residential building design elements” means:
      1. Exterior building color;
      2. Type or style of exterior cladding material;
      3. Style or materials of roof structures, roof pitches, or porches;
      4. Exterior nonstructural architectural ornamentation;
      5. Location, design, placement, or architectural styling of windows and doors, including garage doors and garage structures;
      6. The number and types of rooms;
      7. The interior layout of rooms; and
      8. The minimum square footage of a structure.
    2. As used in this section, “residential building design elements” does not include:
      1. The height, bulk, orientation, or location of a structure on a lot; or
      2. Buffering or screening used to:
        1. Minimize visual impacts;
        2. Mitigate the impacts of light and noise; or
        3. Protect the privacy of neighbors.
  3. This section does not apply to:
    1. A structure located in an area designated as a local historic district under applicable state law;
    2. A structure located in an area designated as a historic district on the National Register of Historic Places;
    3. A structure designated as a local, state, or national historic landmark;
    4. A regulation created by a valid private covenant or other contractual agreement among property owners relating to residential building design elements, including without limitation a cooperative contractual agreement between a property owner and a county;
    5. A regulation directly and substantially related to the requirements of applicable state or federal building or safety codes;
    6. A regulation applied to manufactured housing in a manner consistent with applicable law;
    7. A regulation adopted as a condition for participation in the National Flood Insurance Program;
    8. A central business improvement district under the Central Business Improvement District Act, § 14-184-101 et seq.;
    9. A multifamily residential structure or other nonsingle-family dwelling;
    10. The application of a county policy, regulation, or ordinance affecting residential building design elements on an existing property on or before February 28, 2019, but not as to any other property thereafter;
    11. A county policy, regulation, or ordinance derived from the county's police power and directly related to an established immediate public health or safety hazard;
    12. A valid exercise of express statutory authority to regulate residential building design elements under § 14-95-101 et seq., concerning urban service districts; or
    13. A policy or regulation of an overlay district, if before the policy or regulation is implemented:
      1. Notice is provided to property owners of an overlay district under § 14-56-422;
      2. A petition to support the policy or regulation is attached with signatures of a majority of property owners in the proposed overlay district; and
      3. The overlay district makes a determination that the policy or regulation complies with the Private Property Protection Act, § 18-15-1701 et seq.

History. Acts 2019, No. 446, § 1.

Subchapter 3 — Metropolitan or Regional Planning Commissions

Publisher's Notes. Acts 1955, No. 26 is also codified as § 14-56-501 et seq.

Effective Dates. Acts 1955, No. 26, § 8: Feb. 1, 1955. Emergency clause provided: “It is hereby determined by the General Assembly that many cities and counties are faced with many problems which have arisen due to increased population, expansion of urban areas, and many other problems which have resulted from improper planning and which have resulted in the endangering of the health, safety and welfare of the people of such areas and that the immediate passage of this Act is necessary to alleviate such conditions. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall take effect and be in full force from and after its passage and approval.”

14-17-301. Provisions supplemental.

  1. Nothing in this subchapter shall be construed to remove or limit the powers of the cooperating cities and counties as provided by state law.
  2. All legislative power with respect to zoning and other planning legislation shall remain with the governing body of the cooperating cities and counties.
  3. Each participating city or county may continue to have its own planning commission or board, but under the joint agreement and in the interest of economy and efficiency and in the interest of uniform standards and procedures, may request the metropolitan or regional planning commission to assume duties and functions of local planning agencies, in whole or in part.

History. Acts 1955, No. 26, § 5; A.S.A. 1947, § 19-2824.

14-17-302. Authority generally.

Any two (2) or more cities of the first class, cities of the second class, incorporated towns, or counties, or other civil subdivisions having adjoining planning jurisdictions, or any counties and cities adjacent to or within the county may jointly cooperate in the exercise and performance of planning powers, duties, and functions as provided by state law for cities and counties.

History. Acts 1955, No. 26, § 1; A.S.A. 1947, § 19-2820.

Case Notes

Annexation.

Since Acts 1957, No. 26, concerning the establishment, powers, and duties of a joint planning commission in no way deals with annexation, the annexation of an area to a city will not be denied because the annexation has not been approved by a planning commission. City of Sherwood v. Hardin, 230 Ark. 762, 325 S.W.2d 75 (1959).

14-17-303. Contents of joint agreement.

  1. The cooperating cities and counties which join to create a metropolitan or regional planning commission shall determine through joint agreement the number and qualifications of the members of the commission.
  2. The joint agreement shall also provide for the manner of cooperation and the means and methods of the operation and functioning of the commission, including the employment of a director of planning and such staff and consultants as it may require, the proportionate share of costs and expenses, and the purchase of property and materials for the use of the commission.
  3. The joint agreement may also allow for the addition of other public bodies to the cooperative arrangement.

History. Acts 1955, No. 26, § 3; 1967, No. 29, § 1; A.S.A. 1947, § 19-2822.

14-17-304. Establishment of commission.

  1. When two (2) or more cities and counties shall adopt joint planning cooperation by ordinance, resolution, rule, or order, there shall be established a joint planning commission for the metropolitan area or region comprising the area coterminous with the areas of planning jurisdiction of the cities or counties cooperating jointly.
  2. A joint planning agency for the metropolitan area or region may be empowered to carry into effect such provisions of state law relating to planning which are authorized for the joining cities or counties and which each may separately exercise and perform under existing laws.
  3. Any other public authority or agency which operates within, wholly or in part, the area covered by this joint planning cooperation may likewise join with the cooperating cities or counties in cooperative planning through resolution of its governing board or commission.

History. Acts 1955, No. 26, § 1; A.S.A. 1947, § 19-2820.

14-17-305. Purpose of commission.

The general purpose of a metropolitan or regional planning commission shall be to make those studies and plans for the development of the metropolitan area or region that will:

  1. Guide the unified development of the area;
  2. Eliminate planning duplication;
  3. Promote economy and efficiency in the coordinated development of the area; and
  4. Promote the general welfare and prosperity of its people.

History. Acts 1955, No. 26, § 2; A.S.A. 1947, § 19-2821.

14-17-306. Duty of commission.

The metropolitan or regional planning commission shall have the duty and function of promoting public interest and understanding of the economic and social necessity for long-term coordinated planning for the metropolitan or regional area, but its official recommendations shall be made to the governing bodies or the county judges of the cooperating cities or counties.

History. Acts 1955, No. 26, § 5; A.S.A. 1947, § 19-2824.

14-17-307. Plans and recommendations.

    1. The metropolitan or regional commission shall make plans for development for the area. These plans may include, but shall not be limited to, recommendations for principal highways, bridges, airports, parks and recreational areas, schools and public institutions, and public utilities.
    2. Any metropolitan or regional plan so developed shall be based on studies of physical, social, economic, and governmental conditions and trends.
  1. The plans and its recommendations may be adopted in whole or in part by the governing bodies of the cooperating cities and counties as the general plans of such cities and counties.
  2. The commission may also assist:
    1. The cities and counties within its area of jurisdiction in carrying out any regional plans developed by the commission; and
    2. Any planning commission, board, or agency of the cooperating cities or counties in the preparation or effectuation of local plans and planning consistent with the program of the commission.

History. Acts 1955, No. 26, § 2; A.S.A. 1947, § 19-2821.

14-17-308. Receipt of funds.

A metropolitan or regional planning commission established under the provisions of this subchapter is authorized to receive, for its own uses and purposes, any funds or moneys from any participating city or county, from the state or federal government, and from any other source any other funds, including bequests, gifts, donations, or contributions.

History. Acts 1955, No. 26, § 4; A.S.A. 1947, § 19-2823.

14-17-309. Appropriations.

The participating cities and counties, or other public bodies, are authorized to appropriate funds for the expenses and costs required by the metropolitan or regional planning commission in the performance of its purposes and functions.

History. Acts 1955, No. 26, § 4; A.S.A. 1947, § 19-2823.

Subchapter 4 — Commercial Medical Waste Incinerators

Cross References. Municipal planning — Commercial medical waste incinerators, § 14-56-601 et seq.

Effective Dates. Acts 1993, No. 199, § 7: Feb. 24, 1993. Emergency clause provided: “It is hereby found and determined by the Seventy-Ninth General Assembly of the State of Arkansas that the powers of local governments in Arkansas to regulate the construction or operation of commercial medical waste incinerators are vague or incomplete; that the unregulated incineration of commercial medical waste poses a threat to the health and safety of the citizens of Arkansas cities and counties; and therefore commercial medical waste incinerators should be made subject to the regulation by and control of local governments in Arkansas. Therefore, in order to clearly establish the authority of local governments to limit and regulate commercial medical waste incinerators, an emergency is hereby declared to exist, and this act being necessary for the immediate preservation of the public peace, health, and safety, shall be in full force and effect from and after its passage and approval.”

14-17-401. Definition.

“Commercial medical waste” means any medical waste transported from a generator to an off-site facility for disposal where such off-site disposal facility is engaged in medical waste disposal for profit.

History. Acts 1993, No. 199, § 3.

Publisher's Notes. Acts 1993, No. 199, § 3 is also codified as § 14-56-601.

14-17-402. Authorization to establish zones.

Notwithstanding any and all laws regarding county planning and zoning, all counties in Arkansas are authorized to establish, by ordinance, zones to limit or to regulate the construction or operation, or both, of commercial medical waste incinerators within their boundaries.

History. Acts 1993, No. 199, § 2.

14-17-403. Enforcement.

The commercial medical waste incinerator zoning ordinance shall be enforced through the issuance or denial of building and use permits in accordance with the conditions and terms of the limitations and regulations established by the ordinance.

History. Acts 1993, No. 199, § 2.

14-17-404. Unlawful construction or operation.

When the county quorum court shall have laid off zones, by ordinance, to limit or to regulate the construction or operation, or both, of commercial medical waste incinerators, it shall be unlawful for anyone to construct or to operate a commercial medical waste incinerator within a given zone except in accordance with any building and use permits issued for the incinerator.

History. Acts 1993, No. 199, § 2.

14-17-405. Violation — Penalty — Injunction.

    1. Violation of any provision of an ordinance adopted as authorized by this subchapter shall be considered a misdemeanor.
    2. Each day's violation shall be considered a separate offense.
  1. The county adopting the ordinance or any individual aggrieved by a violation of the ordinance may request an injunction against any commercial medical waste incinerator or property owner who is in violation of the ordinance.

History. Acts 1993, No. 199, § 2.

Chapter 18 Platted Lands Outside Municipalities

Cross References. Additions to cities and incorporated towns — Filing and recording requirements, § 14-41-201 et seq.

Additions to cities and incorporated towns — Reduction to acreage, § 14-41-301 et seq.

Preambles. Acts 1943, No. 259 contained a preamble which read:

“Whereas, in the boom period prior to the depression, much acreage land not in any town or city, but adjacent to towns or cities, was platted into lots and blocks. In many instances, none of the lots were sold, or the lots that were sold came back to the original owners; and

“Whereas, under various proceedings the lands were thrown back into acreage and in some cases questions have arisen as to whether or not the reducing of the platted lots to acreage was entirely valid, and thus the conveying of the land is complicated….”

Effective Dates. Acts 1945, No. 56, § 5: approved Feb. 16, 1945. Emergency clause provided: “The public health, convenience and necessity requiring, this act shall become effective from and after its passage.”

Acts 1945, No. 164, § 8: approved Mar. 2, 1945. Emergency clause provided: “It has been found and it is hereby determined by the General Assembly that in some counties of the state, lands outside of cities and towns have been platted into additions and the plats filed of record in the county; that in many cases the streets and alleys, or parts thereof, dedicated by the plat have never been opened or used and are of no use to the public or the property owners in the addition as streets and alleys; that some tracts of land containing such streets and alleys are suitable sites for industries but can not be used, or sold to be used, for that purpose because the title is clouded by the dedication of said streets and alleys and uncertainty now exists as to the power to vacate such streets and alleys; that some industries are now considering coming into the state and purchasing such tracts if they can secure clear titles; that they might go to other states if there is delay in the taking effect of this act, which would deprive the counties of additional tax revenues badly needed by them for the preservation of the public peace, health and safety; that for said reasons it is hereby declared necessary for the preservation of the public peace, health and safety that this act shall become effective without delay. An emergency, therefore, exists and this act shall take effect and be in force from and after its passage.”

Acts 1965, No. 129, § 3: Mar. 1, 1965. Emergency clause provided: “It is hereby found and determined by the General Assembly that the present law relative to vacating platted streets and alleys outside municipal corporations is in a state of confusion, especially with respect to the period of nonuse which must be shown in order to vacate the same; that it is in the best interests of the citizens of this State that said law be clarified immediately, and that this Act will provide such clarification. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety, shall be in effect from the date of its passage and approval.”

14-18-101. Subdivision of lands — Filing.

  1. The owners of land lying beyond the confines of municipal corporations, which have not theretofore been subdivided as additions or subdivisions of any city or town, may have their lands surveyed and divided into numbered plots by a competent surveyor, who shall make a plat thereof.
  2. The plat, when duly certified by the surveyor, shall be filed for record with the recorder of deeds, and a copy of the plat shall be filed with the county assessor of the county in which the lands are situated.

History. Acts 1945, No. 56, § 1; 1963, No. 495, § 1; A.S.A. 1947, § 17-1201.

Case Notes

Evidence.

Private unauthenticated and unrecorded plat was inadmissible in condemnation proceedings where subdivision which it purported to show was not in existence, stakes were no longer in place, roads shown had not been dedicated and apparently had not been built, and there was no evidence that lots had been offered for sale. Arkansas La. Gas Co. v. Lawrence, 239 Ark. 365, 389 S.W.2d 431 (1965).

Cited: Butler v. City of Little Rock, 231 Ark. 834, 332 S.W.2d 812 (1960); Martin v. Shew, 96 Ark. App. 32, 237 S.W.3d 497 (2006).

14-18-102. Descriptions deemed legal.

The descriptions of the lands platted and recorded as set out in this chapter may be employed by any and all improvement districts for the purpose of assessing benefits for local improvements. These descriptions shall be legal descriptions in all deeds, mortgages, and other instruments relating to lands, or whereby the title to lands may be affected.

History. Acts 1945, No. 56, § 3; A.S.A. 1947, § 17-1203.

Publisher's Notes. As to validation of additions and subdivisions of lands pursuant to Acts 1945, No. 56 and Acts 1945, No. 164, see Acts 1959, No. 289, §§ 3, 4.

Case Notes

Deficiencies in Descriptions.

Where a description of property was deficient in stating that it was in Township 18 North, whereas it was in Township 19 North, but the description also contained a correct reference to the recorded plat, the mortgage description was valid as against a federal tax lien. Caraway Bank v. United States, 258 Ark. 858, 529 S.W.2d 351 (1975).

Trial court properly found that, as the 2002 conveyance from developer to trustees did not convey the property encompassing Tract 5 by reference to the July 2001 survey, the division was never effective; the 2002 conveyance only referred to a metes-and-bounds description of Tract 5 (and one-half of Tract 4) from the 1999 survey. Martin v. Shew, 96 Ark. App. 32, 237 S.W.3d 497 (2006).

14-18-103. Expense of survey — Recording.

  1. The expense of surveys shall be borne by the owners of the lands affected, and the recorder shall collect the same fees for recording plats of the lands as are collected by recorders for recording plats of lands platted as subdivisions of a municipal corporation.
  2. Each plat, as filed, shall be recorded, and the recorder for identification shall number each plat consecutively upon the record.

History. Acts 1945, No. 56, § 4; A.S.A. 1947, § 17-1204.

Cross References. Recorder's fees, § 21-6-306.

14-18-104. Taxation of platted lands.

After the recordation of a plat, the lands described therein and thereon shall be assessed in accordance with the descriptions on the plat, and taxes shall be levied and collected thereon in such manner as taxes are levied and collected on real estate in cities and towns. However, nothing in this section shall be construed as authorizing the levying and collecting of a city tax on property outside the city limits.

History. Acts 1945, No. 56, § 2; A.S.A. 1947, § 17-1202.

14-18-105. Authority to vacate street, alley, or roadway.

In all cases where the owner of lands situated in a county and outside of a city of the first or second class or incorporated town has dedicated a portion of the lands as streets, alleys, or roadways by platting the lands into additions or subdivisions and causing the plat to be filed for record in the county and any street, alley, or roadway, or portion thereof shown on the plat so filed shall not have been opened or actually used as a street, alley, or roadway for a period of five (5) years, or where any strip over the platted lands, although not dedicated as a street, has been used as a roadway, the county court shall have power and authority to vacate and abandon the street, alley, or roadway, or a portion thereof, by proceeding under the conditions and the manner provided in this chapter.

History. Acts 1945, No. 164, § 1; 1965, No. 129, § 1; A.S.A. 1947, § 17-1205.

Publisher's Notes. As to validation of the vacation of streets and alleys pursuant to Acts 1945, No. 164, see Acts 1959, No. 289, §§ 1, 4.

Case Notes

Applicability.

Sections 14-18-105 to 14-18-109 did not apply to an action pertaining to the vacation of a county road; the sections only apply to the vacation of streets in platted lands outside municipalities. Perry v. Lee County, 71 Ark. App. 47, 25 S.W.3d 443 (2000).

Cited: Andreasen v. South Mt. Estates Prop. Owners Ass'n, 2018 Ark. App. 530, 564 S.W.3d 262 (2018).

14-18-106. Petition to vacate street, etc.

    1. The owners of all lots and blocks abutting upon any street, alley, or roadway, or portion thereof, desired to be vacated shall file a petition in the county court requesting the court to vacate it.
    2. The petition shall clearly designate or describe the street, alley, or roadway, or portion thereof, to be vacated, give the name of the addition in which they are located and the date the plat was filed, and attach as an exhibit a certified copy of the plat.
    1. Upon the filing of the petition, the county clerk shall promptly give notice, by publication once a week for two (2) consecutive weeks in some newspaper published in the county and having a general circulation therein, that the petition has been filed and that on a certain day therein named the county court will hear all persons desiring to be heard on the question of whether the street, alley, or roadway, or portion thereof, shall be vacated.
    2. The notice shall give the names of property owners signing the petition, clearly describe the street, alley, or roadway, or portion thereof, to be vacated, and give the name of the addition in which they are located.

History. Acts 1945, No. 164, § 2; A.S.A. 1947, § 17-1206.

Case Notes

Consent.

Appellees' petition to vacate a section of a road in their subdivision was properly granted because, under the terms of subdivision (b)(2) of this section, appellant, who owned property outside and adjacent to the subdivision, did not need to sign the petition or consent to it; at most, appellant was entitled to an opportunity to be heard under § 14-18-107(a) as a member of the public or any other party otherwise affected by the vacation, and appellant was afforded that right. Weisenbach v. Dewayne, 104 Ark. App. 245, 290 S.W.3d 614 (2009).

14-18-107. Determination on vacation of street, etc.

  1. At the time named in the notice, the parties signing the petition and any other parties owning lots or blocks in the platted lands not abutting on the streets, alleys, or roadways, or portions thereof, to be vacated or otherwise affected by the vacation shall be heard; and the court shall determine whether the streets, alleys, roadways, or portion thereof, should be vacated as proposed in the petition.
  2. No street, alley, or roadway, or portion thereof, shall be vacated if the court finds that it would be against the interest of the public or that no means of ingress and egress would be left to any lots in the addition not abutting on them, unless the owners of the lots file their written consent to the vacation with the court.

History. Acts 1945, No. 164, § 3; A.S.A. 1947, § 17-1207.

Case Notes

Right to Be Heard.

Appellees' petition to vacate a section of a road in their subdivision was properly granted because, under the terms of § 14-18-106(b)(2), appellant, who owned property outside and adjacent to the subdivision, did not need to sign the petition or consent to it; at most, appellant was entitled to an opportunity to be heard under subsection (a) of this section as a member of the public or any other party otherwise affected by the vacation, and appellant was afforded that right. Weisenbach v. Dewayne, 104 Ark. App. 245, 290 S.W.3d 614 (2009).

14-18-108. Order vacating streets, etc.

  1. If the county court shall find that the petition should be granted, either in whole or in part, it shall enter an order vacating the streets, alleys, roadways, or portions thereof.
    1. The finding and order of the county court shall be conclusive on all parties having or claiming any rights or interest in the streets, alleys, roadways, or portions thereof, vacated. However, an appeal may be taken to the circuit court and perfected within thirty (30) days from the entry of the order, and an appeal may be taken from the circuit court to the Supreme Court and perfected within thirty (30) days from the entry of the order of the circuit court.
    2. A certified copy of the order shall be filed in the office of the recorder of the county and recorded in the deed records of the county.
    1. The costs of the publication of the notice, the recording of the order, and the court costs shall be paid by the petitioners.
    2. The court costs shall be paid by parties who unsuccessfully contest the petition.

History. Acts 1945, No. 164, § 4; A.S.A. 1947, § 17-1208.

14-18-109. Abutting lots reduced to acreage.

  1. The owners of all lots abutting on the streets, alleys, or roadways, or portions thereof, vacated by an order of the county court, as provided for in § 14-18-108, shall have the right to have reduced to acreage such lots and the streets or alleys so vacated by petition to the county court where the property is situated.
  2. The county court shall promptly hear the petition and, upon proper showing that it is signed by all of the owners, shall order that the lots and streets, alleys, or roadways be reduced to acreage, and they shall thereafter be assessed as acreage for taxation of all kinds.
  3. The petition may be included in the petition for the vacation of the streets, alleys, or roadways, and the order may be included in the order vacating it, or the petition may be filed and the order entered separately.

History. Acts 1945, No. 164, § 5; A.S.A. 1947, § 17-1209.

Publisher's Notes. As to validation of the reduction to acreage of lots and blocks in subdivisions pursuant to Acts 1945, No. 164, see Acts 1959, No. 289, §§ 2, 4.

14-18-110. Validating return of platted land to acreage.

  1. In all cases where land theretofore platted into lots and blocks has been returned to acreage under the order of the county court in which the land lies and where the return to acreage did not involve the closing of any public road or thoroughfare, the action of the court in ordering the land returned to acreage and in cancelling or annulling the platting of the lands into lots and blocks is validated and affirmed.
  2. The provisions of this section shall not apply to any lands lying within the corporate limits of any town or city, nor shall it affect the title to any lands but shall merely validate the conversion of the lands from lots and blocks into acreage.

History. Acts 1943, No. 259, §§ 1, 2; A.S.A. 1947, §§ 17-1210, 17-1211.

Chapter 19 County Buildings

Cross References. County seats, § 14-14-301 et seq.

Exemption of realty owned by counties from adverse possession, § 22-1-204.

Execution of judgments against corporations — Attachment, § 16-66-114.

Effective Dates. Acts 1885, No. 61, § 4: effective on passage.

Acts 1927, No. 43, § 2: effective on passage.

Acts 1953, No. 414, § 4: approved Mar. 28, 1953. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that a number of hospitals in judicial districts of counties having two judicial districts are in dire financial circumstances and are unable to operate properly to insure the proper care and correct treatment of the people of said areas and that the health and welfare of the people of these areas is endangered because of these conditions and a dire need exists to remedy these wants; that the maintaining and operating of hospitals are local concerns and that those counties having two judicial districts are two separate and distinct counties so far as to local concerns; that the passage of this act is necessary to the proper maintenance and operation of hospitals and is necessary for the preservation of the health and welfare of the people of these areas. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health and safety shall take effect and be in full force from and after its passage.”

Acts 1972 (1st Ex. Sess.), No. 60, § 6: Mar. 6, 1972. Emergency clause provided: “It is hereby found and determined by the Sixty-Eighth General Assembly that the present law is not clear regarding the authority of counties to expend county general funds to match available federal funds for the construction, reconstruction or expansion of the jail facilities of such county; that under present law there is some question regarding the authority of municipalities to expend funds of the municipality to assist financially in the construction, reconstruction or expansion of the county jail facility; that federal funds are available on a matching basis for construction of jail facilities and that counties should be given specific authority to use county general funds to match federal funds for constructing facilities in order that suitable jail facilities can be provided in the various counties; that municipalities in the State should be specifically authorized to contribute funds toward the construction, reconstruction or expansion of the county jail since the county jail is often used by certain municipalities in the county; that this authority should be granted the various counties and municipalities in the State immediately in order that such counties and municipalities may take advantage of the available federal funds for this purpose and that this Act is immediately necessary to provide such authority. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1994 (2nd Ex. Sess.), No. 64, § 7: Aug. 26, 1994. Emergency clause provided: “It is hereby found and determined by the Seventy-Ninth General Assembly of the State of Arkansas meeting in the Second Extraordinary Session of 1994 that some local governments have an immediate and pressing need to finance capital improvements for criminal justice projects without incurring unnecessary bond issue expenses; that until this act becomes effective, the local governments must either finance those capital improvements through bond issues or delay commencing the capital improvements which would in either case result in greater cost than using the method provided by this act and a greater threat to the general public safety from criminals; and that this act should be given effect immediately in order to minimize the amount of taxes necessary to finance capital improvements for criminal justice purposes and to insure the public safety. Therefore, in order to authorize the people of counties and cities to vote as soon as possible on the issue of levying sales taxes for capital improvements for criminal justice projects, an emergency is hereby declared to exist, and this act being necessary for the immediate preservation of the public peace, health, and safety, shall be in full force and effect from and after its passage and approval.”

Research References

ALR.

Waiver of competitive bidding requirements for state and local public building and construction contracts. 40 A.L.R.4th 968.

Amount of appropriation as limitation on damages for breach of contract recoverable by one contracting with government agency. 40 A.L.R.4th 998.

Am. Jur. 56 Am. Jur. 2d, Mun. Corp., § 532 et seq.

C.J.S. 20 C.J.S., Counties, § 165 et seq.

14-19-101. Commissioner of public buildings.

    1. When a county court shall have made an order for the erection of any public building, it shall appoint some suitable person as commissioner of public buildings, who shall superintend the erection of it.
    2. The court shall fill, from time to time, any vacancy that may happen in the office of the commissioner.
  1. The commissioner of public buildings for any county shall receive such compensation for his or her services as the court shall deem reasonable, to be paid out of the county treasury as other county claims are paid.

History. Rev. Stat., ch. 36, §§ 6, 7, 18; C. & M. Dig., §§ 1931, 1932, 1943; Pope's Dig., §§ 2453, 2454, 2465; A.S.A. 1947, §§ 17-903, 17-904, 17-915.

Case Notes

Compensation.

Order of a county court appointing an assistant commissioner of public buildings where a commissioner has already been appointed and order making the former an allowance for his services were ultra vires and void; more than one commissioner might have been appointed, but the compensation allowed can be a reasonable one for only one person. Izard County v. Williamson, 122 Ark. 596, 184 S.W. 420 (1916).

14-19-102. [Repealed.]

Publisher's Notes. This section, concerning sites for buildings, was repealed by Acts 1994 (2nd Ex. Sess.), No 64, § 3. The section was derived from Rev. Stat., ch. 36, §§ 8-10; C. & M. Dig., §§ 1933-1935; Pope's Dig., §§ 2455-2457; A.S.A. 1947, §§ 17-905 — 17-907.

14-19-103. Plans — Contracts.

  1. When the ground for erecting any public building shall be designated as indicated in § 14-19-102 [repealed], the commissioner of public buildings shall prepare and submit to the county court a plan of the building to be erected, the dimensions thereof, and the materials of which it is to be composed, with an estimate of the probable cost thereof.
    1. When the plan shall be approved by the court, the commissioner shall advertise for receiving proposals for erecting the building and shall contract with the person who will agree to do the work on the lowest and best terms, not exceeding the amount so appropriated by the court.
    2. The commissioner may let parts of the work to different persons.

History. Rev. Stat., ch. 36, §§ 11, 12, 14; C. & M. Dig., §§ 1936, 1937, 1939; Pope's Dig., §§ 2458, 2459, 2461; A.S.A. 1947, §§ 17-908, 17-909, 17-911.

Cross References. Legal notices and advertisements, § 16-3-101 et seq.

Contracts for public buildings, Ark. Const., Art. 19, § 16.

Case Notes

Architects.

Where a county undertakes the erection of a county courthouse, it is proper for the county court to employ an architect, in addition to the commissioner of public buildings, and to pay him a reasonable compensation. Mississippi County v. Grider, 126 Ark. 219, 190 S.W. 102 (1916).

14-19-104. Supervision of work.

It shall be the duty of the commissioner of public buildings to:

  1. Superintend and direct the execution of the work;
  2. See that the materials employed are good and the work is executed according to contract; and
  3. Make report of the progress and condition thereof from time to time to the county court.

History. Rev. Stat., ch. 36, § 15; C. & M. Dig., § 1940; Pope's Dig., § 2462; A.S.A. 1947, § 17-912.

Cross References. Public works — Observation by registered professionals required, § 22-9-101.

14-19-105. Payment of installments.

  1. When any installment shall become due to the contractor according to contract, the county court shall make an order that it be paid out of the county treasury.
  2. No such order shall be made, except on the certificate of the commissioner of public buildings, that due proportion of the work has been completed and executed according to contract.

History. Rev. Stat., ch. 36, §§ 16, 17; C. & M. Dig., §§ 1941, 1942; Pope's Dig., §§ 2463, 2464; A.S.A. 1947, §§ 17-913, 17-914.

Case Notes

Executed According to Contract.

A county court cannot make an order for the payment of any amount contracted to be paid for the building of a courthouse or jail before any part of the contract is performed. Armstrong v. Truitt, 53 Ark. 287, 13 S.W. 934 (1890).

14-19-106. Alteration and preservation.

The county court shall have power, from time to time, to alter, repair, or rebuild any county building which has been erected in their county and may cause necessary buildings and fixtures to be erected, as circumstances may require and the funds of the county may admit. Moreover, it shall take such measures as shall be necessary to preserve all buildings and property of the county from waste or damage.

History. Rev. Stat., ch. 36, § 19; C. & M. Dig., § 1944; Pope's Dig., § 2466; A.S.A. 1947, § 17-916.

14-19-107. Replacement or repair of destroyed buildings.

    1. In every case where any public buildings belonging to any county in this state have been destroyed by fire, or otherwise, and the loss of the building calls for speedy and prompt action for repair or rebuilding thereof, the county judge of the county may hold a special term of the county court for the purpose of taking such action and making such provisions as shall be proper for repairing or rebuilding the destroyed property.
      1. Notice of the meeting of the court shall be published ten (10) days by advertisement in some newspaper printed in the county.
      2. If there is no such paper, the publication shall be by written notices posted at some public place at the county site of the county and at nine (9) other public places in the county, ten (10) days before the convening of such court.
  1. In all cases provided for in subsection (a) of this section, the court for levying the county taxes and making appropriations for county purposes may convene in special session at such time as the county judge may name in a call for the meeting of the court. This call shall be published for the length of time and in the manner provided for the special terms of the county court as named in subsection (a) of this section.
      1. When so convened in special session, the county court and court for levying county taxes and making appropriations for county purposes shall have all the powers, right, and authority of the same courts when held at the times fixed by law.
        1. The county court may let contracts, and the levying courts may make appropriations and levy taxes.
        2. Either or both of the courts may take any and all steps proper in the premises to the same extent and with like effect as if done in regular term.
      1. The courts may adjourn from day to day and from time to time until the business for which they were convened is completed.
      2. A minority of the levying court, when so convened, shall have the right to adjourn from day to day until a quorum is secured as provided for in the law governing the court.

History. Acts 1885, No. 61, §§ 1-3, p. 84; C. & M. Dig., §§ 1945-1947; Pope's Dig., §§ 2474-2476; A.S.A. 1947, §§ 17-917 — 17-919.

Case Notes

In General.

Upon courthouse being destroyed by fire, county court had authority to direct erection of new building for use of the courts of the district. Law v. Falls, 109 Ark. 395, 159 S.W. 1130 (1913).

Applicability.

This section relates solely to repair or replacement of public buildings. Cleveland County v. Pearce, 171 Ark. 1145, 287 S.W. 593 (1926).

Temporary Facilities.

When courthouse has been destroyed by fire, the court may lawfully be held in a temporary courthouse. Lee v. State, 56 Ark. 4, 19 S.W. 16 (1892).

14-19-108. Courthouse and jail.

  1. There shall be erected in each county, at its established seat of justice, a good and sufficient courthouse and jail.
  2. The quorum court may determine by a majority vote or by referral to a vote of the people the location of the jail facility at some location other than the established seat of justice.

History. Rev. Stat., ch. 36, § 1; C. & M. Dig., § 1929; Pope's Dig., § 2451; A.S.A. 1947, § 17-901; Acts 1994 (2nd Ex. Sess.), No. 64, § 2.

Cross References. County bonds for construction of courthouses and jails, § 14-72-301 et seq.

County houses of correction, § 12-41-301.

Case Notes

In General.

County court had continuing control over an order to build a courthouse that extends beyond the close of the term. Craig v. Griffin, 107 Ark. 298, 154 S.W. 945 (1913).

County court could revoke order to build a courthouse at a subsequent term, subject to contractual liabilities incurred under the former order. Jennings v. Fort Smith Dist., 115 Ark. 130, 171 S.W. 920 (1914).

Contracts.

Validity of contract for building courthouse was not affected by former statute similar to § 14-20-106, relating to limitations on contracts by quorum or levying courts. Durritt v. Buxton, 63 Ark. 397, 39 S.W. 56 (1897); Sadler v. Craven, 93 Ark. 11, 123 S.W. 365 (1909).

Remedy of taxpayers where county court had proceeded irregularly to contract for building a courthouse was by becoming a party to the proceedings and then appealing. Bowman v. Frith, 73 Ark. 523, 84 S.W. 709 (1905); Sadler v. Craven, 93 Ark. 11, 123 S.W. 365 (1909).

Necessary changes in a contract for building a courthouse may be made. Shackleford v. Campbell, 110 Ark. 355, 161 S.W. 1019 (1913).

Where county judge contracted with an architect to draw plans for a county jail, but no order of the county court appointing an architect was made nor was any appropriation ever made to pay for the work, it was held that, although bids were taken and a contract let, the architect was not entitled to any compensation under his contract with the county judge. Klingensmith v. Logan County, 116 Ark. 65, 171 S.W. 1191 (1914).

Designation of Place.

A county court has no authority to order the erection of a county courthouse upon land that does not belong to the county. Jennings v. Fort Smith Dist., 115 Ark. 130, 171 S.W. 920 (1914).

A county court is authorized to select and purchase a site for a courthouse, if necessary, and a quorum court is only authorized to determine when the courthouse shall be built, the amount of expenditure, and the manner of payment. Ivy v. Edwards, 174 Ark. 1167, 298 S.W. 1006 (1927).

Under former Ark. Const. Amend. 17, a hospital did not have to be located at the seat of justice. Kervin v. Hillman, 226 Ark. 708, 292 S.W.2d 559 (1956).

Duties of Commissioners.

An appropriation by the levying court to build a county hospital carries authority to purchase ground on which to build it. Kerwin v. Caldwell, 80 Ark. 280, 96 S.W. 1058 (1906).

A commissioner of public buildings is required to select a proper piece of ground at the seat of justice, and may purchase or receive by donation a lot of ground for the purpose of erecting public buildings. Jeffries v. State ex rel. Woodruff County, 212 Ark. 213, 205 S.W.2d 194 (1947).

A county court has authority to purchase a site for a county hospital. Bond v. Kennedy, 213 Ark. 758, 212 S.W.2d 336 (1948).

A commissioner of public buildings is required to select a proper piece of ground for the erection of public buildings and take a good and sufficient deed in fee simple, if the county has no land suitable for the use intended. Bond v. Kennedy, 213 Ark. 758, 212 S.W.2d 336 (1948).

Examination and Approval.

Where a county court orders that proceedings be instituted to determine the right of a county to erect a courthouse on a certain piece of property, the county commissioner cannot make any valid contract looking to the erection of a courthouse until the title to the site upon which it is proposed to build is determined by a court of competent jurisdiction to be in the county. Jennings v. Fort Smith Dist., 115 Ark. 130, 171 S.W. 920 (1914).

Funding.

County court could build courthouse though no appropriation therefor had been made. Durritt v. Buxton, 63 Ark. 397, 39 S.W. 56 (1897); Bowman v. Frith, 73 Ark. 523, 84 S.W. 709 (1905); Thompson v. Mayo, 135 Ark. 143, 204 S.W. 747 (1918) (decisions prior to Ark. Const. Amend. 62).

The power to make an appropriation for a courthouse, and to fix the cost thereof, was transferred to the quorum court. Thompson v. Mayo, 135 Ark. 143, 204 S.W. 747 (1918) (decision prior to Ark. Const. Amend. 62).

14-19-109. [Repealed.]

Publisher's Notes. This section, concerning the expenditure of current funds for jail facilities, is repealed by Acts 2001, No. 1223, § 1. The section was derived from Acts 1972 (1st Ex. Sess.), No. 60, §§ 1-4; A.S.A. 1947, §§ 17-924, 17-924n, 17-925, 17-926.

14-19-110. Fireproof building or vault.

As soon as the courthouse and jail shall be erected and the circumstances of the county will permit, there shall also be erected a fireproof building at some convenient place near the courthouse or a fireproof vault in the courthouse, in which shall be kept the records of the recorder and of the clerks of the several courts held in the county.

History. Rev. Stat., ch. 36, § 2; C. & M. Dig., § 1930; Acts 1927, No. 43, § 1; Pope's Dig., § 2452; A.S.A. 1947, § 17-902.

14-19-111. Hospitals in counties having two judicial districts.

    1. In all counties which are divided into two (2) judicial districts, either by the Arkansas Constitution or by legislative enactment, the qualified electors of the county residing in each judicial district of a county so divided shall have and are vested with all the powers and rights for the judicial district that the qualified electors of counties have for the entire county for the purposes authorized by Arkansas Constitution, Amendment 32, and may authorize the maintaining, operating, and supporting of a county hospital in the judicial district and may authorize the levy of a tax not to exceed one (1) mill on the dollar of the assessed value of real and personal property in the county.
    2. No tax shall be levied on any property within the county or judicial district for the purposes authorized by the Arkansas Constitution and this section in excess of the total tax authorized by the Arkansas Constitution.
  1. It has been found and is declared by the General Assembly that the maintaining, operating, and supporting of a county hospital is a local concern, and, for the purposes of this section, the judicial districts of the counties are deemed and are declared by the General Assembly to be separate and distinct counties.

History. Acts 1953, No. 414, §§ 1, 2; A.S.A. 1947, §§ 17-922, 17-923.

Chapter 20 Quorum or Levying Courts

Effective Dates. Acts 1917, No. 217, § 5: approved Mar. 10, 1917. Emergency clause provided: “This Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is hereby declared, and this Act shall take effect and be in force from and after its passage.”

Acts 1969, No. 92, § 5: became law without Governor's signature, Feb. 24, 1969. Emergency clause provided: “It has been found and is hereby declared by the General Assembly: (a) that although funds have been appropriated from time to time for making studies of ways and means to improve the operation of the state government, no funds have ever been appropriated for making studies of ways and means to improve the operation of county government in this State; (b) that such county studies should be made for the purpose aforesaid, and that the same should be instituted at the earliest possible time; and (c) that only by the immediate passage and approval of this Act may the association be assured of adequate financing so that it may make and complete its plan of operation not later than the date on which the funds first become available. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public health, peace and safety shall take effect and be in full force from and after its passage and approval.”

Acts 1975, No. 130, § 21: Jan. 1, 1977.

Acts 1977, No. 178, § 8: Feb. 17, 1977. Emergency clause provided: “It is hereby found and determined by the General Assembly that certain cities within the State are in dire need of additional funds to provide essential services and facilities of the city; that the most appropriate way for such cities to increase revenues for this purpose is the levy of an increased gross receipts tax on the gross receipts derived from certain business within the city; that this Act is designed to specifically authorize the levy of a gross receipts tax or an additional gross receipts tax to provide much needed revenues to the levying city and should be given effect at the earliest possible date. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1977, No. 495, § 3: Mar. 18, 1977. Emergency clause provided: “It is hereby found and determined by the General Assembly that some confusion has arisen regarding the responsibility for collection of delinquent taxes in the various counties; that it is essential to the proper financing of the counties, cities, and school districts in the counties that appropriate action be taken to assure that delinquent taxes are collected at the earliest possible date; that the quorum court is the appropriate body in each county to determine who should have the responsibility for collecting delinquent taxes; that this Act is designed to give the quorum court the authority and responsibility to provide for the collection of such taxes. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1989, No. 465, § 4: Mar. 10, 1989. Emergency clause provided: “It is hereby found and determined by the General Assembly that due to the phasing out of revenue sharing by the federal government, many counties are faced with insufficient revenues to offer necessary services; that this act will provide the county with an optional source of revenue by collection of the additional fee; that the immediate passage of this act is necessary to insure that necessary services are not interrupted. Therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1991, No. 904, § 28: Mar. 29, 1991. Emergency clause provided: “It is hereby found and determined by the General Assembly that the language of certain court cost statutes lacks uniformity; that such lack of uniformity is detrimental to the proper collection of such court costs; and that such language should be standardized to promote the proper collection of such costs. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1991, No. 1003, § 5: Apr. 8, 1991. Emergency clause provided: “It is hereby found and determined by the General Assembly that the quorum court of any county should be authorized to appropriate monies from its general fund to pay the reasonable cost incurred in the defense of indigents; that this Act so provides; and that this Act should go into effect immediately in order to provide a mechanism to protect the constitutional rights of indigent defendants. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1993, No. 1193, § 21: July 1, 1993. Emergency clause provided: “It is hereby found and determined by the Seventy-Ninth General Assembly that the decision of the Arkansas Supreme Court in State v. Post et al, Case No. 92-787, has created great uncertainty regarding the payment of the legal fees and expenses in connection with the legal representation of indigent persons charged with crimes punishable by imprisonment and that delay in the effective date of this act beyond July 1, 1993, would cause irreparable harm to the proper implementation of a statewide public defender program. Therefore, and emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1993.”

Acts 1995 (1st Ex. Sess.), No. 13, § 13: Oct. 23, 1995. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that the current system of funding the state judicial system has created inequity in the level of judicial services available to the citizens of the state; and it is further determined that the current method of financing the state judicial system has become so complex as to make the administration of the system impossible, and the lack of reliable data on the current costs of the state judicial system prohibits any comprehensive change in the funding of the system at this time. Therefore, an emergency is declared to exist and this act being necessary for the immediate preservation of the public peace, health, and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1997, No. 711, § 5: Mar. 20, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that devastating tornadoes and flooding recently occurred in several counties of the state; that several of the affected counties have been declared disaster areas by the Governor; that as a result of the tornadoes and flooding, considerable expenditures will be required of the counties to clean and repair streets, to dispose of debris, to repair or replace county facilities and equipment damaged or destroyed, and to cover other necessary expenses occasioned by the natural disaster; that under present law, the county quorum court may not appropriate more than ninety percent of anticipated revenues for the year; and that it is the intent and purpose of this act to permit the appropriation and expenditure for disaster related expenses of all or a portion of the ten percent reserve otherwise required and that this act should be given effect immediately. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2005, No. 2314, § 3: Apr. 14, 2005. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that existing law restricts the ability of a county to levy an advertising and promotion tax within the county; that existing law restricts the ability of a municipality to collect advertising and promotion tax; that advertising and promotion tax provides a source of municipality and county funds for promoting tourism and enhances the state's economy; and that this act is immediately necessary in order to provide cities and counties with the ability to control local finances. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2007, No. 182, § 32: Jan. 1, 2008.

Acts 2007, No. 473, § 4: Mar. 23, 2007. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that tourist season is rapidly approaching and cities and towns depend on the local tax revenue generated through local hotels, motels, restaurants, or similar establishments; that the law as currently written does not allow the local government the flexibility to collect the tax in a manner that reflects local business establishments; and that this act is necessary because it is imperative to the successful operation of local government to capture the tax revenue from the approaching tourist season. Therefore, an emergency is declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2009, No. 1480, § 117: July 31, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act makes various revisions to Arkansas election laws that are designed to improve the administration of elections and special elections and that these revisions should be implemented as soon as possible so that the citizens of this state may benefit from improved election procedures. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2015, No. 693, § 2: Mar. 25, 2015. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that there are scores of volunteer fire departments in this state; that in many areas the only fire protection available is through the local volunteer fire department; and that this act is immediately necessary to ensure the volunteer fire departments can remain viable and continue to serve the state. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

14-20-101. Prohibition of and punishment for offenses.

  1. A county is authorized to prohibit and punish any act, matter, or thing which the laws of this state make a misdemeanor and to prescribe penalties for all offenses in violation of any ordinance of the county not greater nor less than the penalties prescribed for similar offenses against the laws of this state.
  2. Upon conviction of any person under such ordinance by any court, the conviction shall operate as a bar to further prosecution in any of the courts of this state for the same offense.

History. Acts 1975, No. 130, § 15; A.S.A. 1947, § 17-443.

14-20-102. County funds for defense of indigents — Fees assessed.

    1. There is hereby created on the books of the treasurer of each county in the state a fund to be used for the purpose of paying reasonable and necessary costs incurred in the defense of indigent persons accused of criminal offenses and in the representation of persons against whom involuntary admissions procedures for mental health or alcohol and narcotic commitments or criminal commitments have been brought, and for representation in civil and criminal matters of persons deemed incompetent by the court due to minority or mental incapacity, which have been brought in any circuit courts or city or county division of district courts, including, but not limited to, investigative expenses, expert witness fees, and legal fees.
    2. Where there are adequate unappropriated moneys in this fund, the quorum court may also provide for the use of the funds for the purpose of defraying the cost of the juvenile division of circuit court.
    3. Where there are adequate unappropriated moneys in this fund, the quorum court may also provide for the use of the funds for the purpose of defraying the cost of medical and dental costs incurred by the county for indigent defendants incarcerated in the county jail.
    4. The quorum court is authorized to supplement the fund by additional appropriation from the county general fund, and expenditures from the fund shall be made in the manner and amounts prescribed by the quorum court.
  1. In any county where a public defender commission has been established under §§ 16-87-101 — 16-87-112 [repealed], the amount to be paid for attorney fees, investigative costs, and other costs under subdivision (a)(1) of this section shall be determined in a manner prescribed by the quorum court acting with the advisory resolution of the public defender commission.

History. Acts 1983, No. 695, §§ 1-3; A.S.A. 1947, §§ 17-456 — 17-458; Acts 1987, No. 96, § 1; 1989, No. 406, §§ 1, 2; 1989 (3rd Ex. Sess.), No. 100, § 1; 1991, No. 904, §§ 4, 20; 1991, No. 1003, § 1; 1993, No. 1193, § 15; 1995, No. 1256, § 20; 1995 (1st Ex. Sess.), No. 13, § 4.

A.C.R.C. Notes. Pursuant to Acts 1971, No. 153, references to “mayor's courts” in this section were deleted.

Ark. Const. Amend. 80, § 19(B)(2) provided: “District Courts shall have the jurisdiction vested in Municipal Courts, Corporation Courts, Police Courts, Justice of the Peace Courts, and Courts of Common Pleas at the time this Amendment takes effect. District Courts shall assume the jurisdiction of these courts of limited jurisdiction and other jurisdiction conferred in this Amendment on January 1, 2005. City Courts shall continue in existence after the effective date of this Amendment unless such City Court is abolished by the governing body of the city or by appropriate action of the General Assembly. Immediately upon abolition of such City Court, the jurisdiction of the City Court shall vest in the nearest District Court in the county where the city is located.”

Research References

U. Ark. Little Rock L.J.

Arkansas Law Survey, Joiner, Criminal Procedure, 8 U. Ark. Little Rock L.J. 123.

Survey — Attorneys, 10 U. Ark. Little Rock L.J. 539.

Case Notes

Construction.

The purpose of §§ 16-10-307 and 16-87-306 is to provide representation for indigents in cases in which there is a potential for loss of liberty, but the provision of this section that grants authority for the trial court to appoint attorneys for minors in civil litigation to be paid by county funds was not incorporated in the statutes establishing and defining the duties and responsibilities of the Commission. Ark. Pub. Defender Comm'n v. Burnett, 340 Ark. 233, 12 S.W.3d 191 (2000).

Fee Cap.

Ordinance enacted pursuant to this section containing fee caps similar to those contained in § 16-92-108 (repealed), held invalid. State v. Post, 311 Ark. 510, 845 S.W.2d 487 (1993).

Civil Representation of Minor.

Section 16-10-307, which allocates to the Public Defender Commission a portion of county funds established by this section, does not contain language authorizing the Commission to expend funds for the civil representation of a minor. Ark. Pub. Defender Comm'n v. Burnett, 340 Ark. 233, 12 S.W.3d 191 (2000).

Cited: State v. Independence County, 312 Ark. 472, 850 S.W.2d 842 (1993).

14-20-103. Appropriations to be specific — Limitation.

  1. The quorum court shall specify the amount of appropriations for each purpose in dollars and cents, and except as authorized in this section, the total amount of appropriations for all county or district purposes for any one (1) year shall not exceed ninety percent (90%) of the anticipated revenues for that year.
    1. The quorum court may appropriate for any one (1) year up to one hundred percent (100%) of the anticipated revenues for that year for federal or state grants overseen by the county.
    2. For revenues to qualify as a grant under this section, the county shall demonstrate that the state or federal agency characterized the revenues as a grant.
    1. In any county in which a natural disaster, including without limitation a flood or tornado, results in the county's being declared a disaster area by the Governor or an appropriate official of the United States Government, the quorum court may appropriate in excess of ninety percent (90%) of anticipated revenues.
    2. However, appropriation of funds in excess of ninety percent (90%) of anticipated revenues shall be made only for street cleanup and repair, collection, transportation and disposal of debris, repair or replacement of county facilities and equipment, and other projects or costs directly related to or resulting from the natural disaster.
    1. In any county in which sales and use tax revenues have been dedicated for a specific purpose, the quorum court may appropriate up to one hundred percent (100%) of anticipated revenues from the dedicated sales and use tax, provided that any appropriation of funds up to one hundred percent (100%) of anticipated revenues shall be made and expended only for the dedicated specific purpose of the tax.
    2. Subdivision (d)(1) of this section shall not:
      1. Apply to dedicated revenues that have been pledged for bonds; or
      2. Include general sales and use tax revenues.
  2. In any county in which the quorum court deems it financially necessary, the quorum court may appropriate for any one (1) year in excess of ninety percent (90%) of the commissions and tax revenues anticipated for that year for the county general fund operation of the offices of assessor, collector, and treasurer.

History. Acts 1879, No. 77, § 7, p. 109; C. & M. Dig., § 1985; Pope's Dig., § 2530; Acts 1973, No. 128, § 1; A.S.A. 1947, § 17-411; Acts 1989, No. 141, § 1; 1991, No. 60, § 1; 1997, No. 711, § 1; 2005, No. 876, § 1; 2007, No. 17, § 1; 2015, No. 406, § 1.

Publisher's Notes. Acts 1879, No. 77, § 14, provided that nothing in the act shall be so construed as to enlarge the functions or powers of the County Court of Sebastian County as under existing laws.

Amendments. The 2015 amendment, in (a), deleted “county” preceding “quorum court”, deleted “subsections (c) and (d) of” preceding “this section”, and deleted “except for federal or state grants overseen by counties for which the court may appropriate up to one hundred percent (100%) of the anticipated revenues for that year” at the end; inserted (b)(1) and redesignated (b) as (b)(2); substituted “shall” for “must” in present (b)(2); in (c)(1), substituted “without limitation” for “but not limited to”, and deleted “of the county” preceding “may appropriate”; substituted “However” for “Provided, any” in (c)(2); deleted “of the county” preceding “may appropriate” in (d)(1); and added (e).

Cross References. Appropriation ordinances, § 14-14-907.

County or city hospital tax, Ark. Const., Amend. 32.

Limitation on county tax levy, § 26-25-101.

County library tax, Ark. Const., Amend. 38.

Case Notes

Limitation.

This section does not prevent a court from also appropriating the revenue accruing to a county from fines, forfeitures, and licenses. Allis v. Jefferson County, 34 Ark. 307 (1879).

This section does not inhibit a county court from appropriating all the county funds derived from any source after reserving 10 percent of the current tax levy. Kerwin v. Caldwell, 80 Ark. 280, 96 S.W. 1058 (1906).

An appropriation of more than 90 percent is good on collateral attack in the absence of any showing that the county had no funds derived from other sources. Fussell v. Mallory, 97 Ark. 465, 134 S.W. 631 (1911).

The limitation applies to current or ordinary expenses, not to appropriations for building courthouses. Thompson v. Mayo, 135 Ark. 143, 204 S.W. 747 (1918).

14-20-104. Appropriations and allowances.

  1. Every order of allowance made by the county court shall set forth the appropriation out of which it is to be paid.
  2. It shall be the duty of the clerk annually and immediately after the adjournment of the county quorum court for the levy of taxes and the making of the appropriations to open a book to be kept for that purpose in which he or she shall debit each appropriation by the amount appropriated therefor, and as the allowances are made by the county court, he or she shall credit each appropriation by the allowance ordered to be paid out of the appropriation.

History. Acts 1879, No. 77, §§ 8, 12, p. 109; C. & M. Dig., §§ 1986, 1989; Pope's Dig., §§ 2531, 2534; A.S.A. 1947, §§ 17-412, 17-414.

Publisher's Notes. Acts 1879, No. 77, § 14, provided that nothing in the act shall be so construed as to enlarge the functions or powers of the County Court of Sebastian County as under existing laws.

Case Notes

Allowances.

It is the duty of a clerk to issue warrants on allowances when made. Worthen v. Roots, 34 Ark. 356 (1879).

A county court is not prohibited from allowing claims against the county in excess of appropriations. Worthen v. Roots, 34 Ark. 356 (1879).

An assessment of benefits received by the public roads in a drainage district, although approved by the county court, is not a judgment against the county, rather, it is the basis of a claim against it. Rolfe v. Spybuck Drainage Dist. No. 1, 101 Ark. 29, 140 S.W. 988 (1911).

Appropriations.

There is no provision in law allowing a quorum court to turn over to a county judge a sum of money “to use as he sees fit and deems necessary,” and such an appropriation is invalid. Martin v. Bratton, 223 Ark. 159, 264 S.W.2d 635 (1954).

Cited: Lake v. Tatum, 175 Ark. 90, 1 S.W.2d 554 (1927).

14-20-105. Monthly report by county treasurer or county comptroller.

The county treasurer or the county comptroller shall submit each month to the county quorum court a full report and a detailed statement of the financial condition of the county, showing receipts, disbursements, and balance on hand.

History. Acts 1975, No. 130, § 20; A.S.A. 1947, § 17-448; Acts 1987, No. 724, § 1; 1995, No. 232, § 3; 2019, No. 310, § 2.

Amendments. The 2019 amendment inserted “or the county comptroller”.

14-20-106. Limitations on contracts.

No county court or agent of any county shall make any contract on behalf of the county unless an appropriation has been previously made therefor and is wholly or in part unexpended. In no event shall any county court or agent of any county make any contract in excess of any appropriation made, and the amount of the contract shall be limited to the amount of the appropriation made by the county quorum court.

History. Acts 1917, No. 217, § 3, p. 1184; C. & M. Dig., § 1976; Pope's Dig., § 2505; A.S.A. 1947, § 17-416.

Publisher's Notes. For amendment of section with respect to certain specified counties, see Acts 1923, No. 240, § 1.

Cross References. Contracts in excess of revenues prohibited, § 14-23-107.

Case Notes

Purpose.

Purpose of this section is to withdraw from a county court the power to make an order to build a courthouse if deemed expedient and if the circumstances of the county would permit a levy of taxes for that purpose. Thompson v. Mayo, 135 Ark. 143, 204 S.W. 747 (1918).

Applicability.

The circuit clerk of Madison County was authorized to purchase a typewriter, this section having no applicability to that county. Madison County v. Simpson, 173 Ark. 755, 293 S.W. 34 (1927).

Appropriations.

This section invests quorum court with power to make an appropriation for building a courthouse in any sum it may deem proper, regardless of the amount of taxes to be levied and of an appropriation for this purpose. Thompson v. Mayo, 135 Ark. 143, 204 S.W. 747 (1918).

An allowance by the county court for a street improvement out of a special bridge fund on hand was not invalid by reason of the fact that the county court agreed to make additional allowances out of the revenues of future years. Shofner v. Dowell, 168 Ark. 229, 269 S.W. 588 (1925).

Resolution of county quorum court appropriating money for street improvement in aid of an improvement district and reciting that the necessity for the appropriation arose from the state's failure to bear its share of the proposed improvement, was a mere expression of the court's opinion as to the state's duty, and the appropriation was proper, as the streets to be improved were part of the county highway system. Shofner v. Dowell, 168 Ark. 229, 269 S.W. 588 (1925).

Appropriation by county quorum court for expenses of county judge other than for current year, is void. Ladd v. Stubblefield, 195 Ark. 261, 111 S.W.2d 555 (1937).

Contract unenforceable where no appropriation was made to support the contract. Sanders v. Bradley County Human Servs. Pub. Facilities Bd., 330 Ark. 675, 956 S.W.2d 187 (1997).

Authority of County Judge.

County judges have no authority to make contracts on behalf of a county, such authority being conferred upon the county courts. Lyons Mach. Co. v. Pike County, 192 Ark. 531, 93 S.W.2d 130 (1936).

Furnisher of item under contract entered into by county judge, never approved by county court, is not entitled to recover on quantum meruit where county never accepts the items or makes claim to them, even though county judge accepts delivery and stores the shipment on county property. Lyons Mach. Co. v. Pike County, 192 Ark. 531, 93 S.W.2d 130 (1936).

Essential Services.

Arkansas Ark. Const. Amend. 10 was not effective to prevent county court from allowing claims for essential and indispensable government services although in excess of appropriation. Mackey v. McDonald, 255 Ark. 978, 504 S.W.2d 726 (1974).

Particular Contracts.

Although county court could not lawfully make a contract for the purchase of road machinery until an appropriation had been made for that purpose, yet when an appropriation for such purchase had been made after the purchase and the machinery was delivered to the county and kept by it, it could not defeat a recovery for the purchase money of the machinery. International Harvester Co. v. Searcy County, 136 Ark. 209, 206 S.W. 312 (1918).

In the absence of an appropriation, a sheriff is without authority to purchase a supply of items on behalf of the county and the county judge cannot make a contract on his own motion to purchase the items nor ratify a contract for them made by the sheriff. American Disinfecting Co. v. Franklin County, 181 Ark. 659, 27 S.W.2d 95 (1930).

Contract employing lawyers on a contingent basis, to be paid out of adjustments and settlements of amounts due the county, is not forbidden by this section where no appropriation is made for this purpose. Botts v. Arkansas County, 186 Ark. 981, 57 S.W.2d 563 (1933).

Even though a contract between a county and the United States would be void under the provisions of this section, where the federal government has fully performed its obligations under the contract, the county is in no position to defend on the ground of the alleged invalidity of the contract. Cravens v. United States, 163 F. Supp. 309 (W.D. Ark. 1958).

Contract where county agreed to hold and save federal government harmless from liability on account of inundation of roads in connection with construction of a dam could be enforced by the federal government, notwithstanding provisions of this section to the effect that contracts by county must be in consequence of valid appropriation, especially if the federal government had fully performed its obligations under the contract. Cravens v. United States, 163 F. Supp. 309 (W.D. Ark. 1958).

Warrants.

Warrant issued under contract of a county court for an amount in excess of the appropriation available are void. State ex rel. Prairie County v. E.F. Leathem & Co., 170 Ark. 1004, 282 S.W. 367 (1927).

Where county quorum court appropriated a maximum sum for building a courthouse, requiring the one-mill levy to be paid out of the levy of five mills and by levies to be paid each year covering all the expenses of government and not in excess of five-mill levy, there was no continuing levy of one mill annually for courthouse construction, and warrants should not be drawn on a specific fund, but on the general county fund out of which the appropriation was made. Ivy v. Edwards, 174 Ark. 1167, 298 S.W. 1006 (1927).

Cited: Dean Leasing, Inc. v. Van Buren County, 27 Ark. App. 134, 767 S.W.2d 316 (1989); AFSCME, Local 380 v. Hot Spring County, 362 F. Supp. 2d 1035 (W.D. Ark. 2004).

14-20-107. Appropriations for Association of Arkansas Counties.

    1. The quorum court of each county in this state may provide for the participation of its county in the services and activities of the Association of Arkansas Counties, a domestic corporation organized and existing under the provisions of the Arkansas Nonprofit Corporation Act, §§ 4-28-201 — 4-28-206 and 4-28-209 — 4-28-224.
    2. If the quorum court of a county authorizes the participation of the county in the association, then the quorum court shall annually appropriate from county general funds an amount that shall be equal to one percent (1%) of the general revenues received by that county from the County Aid Fund in the State Treasury during the preceding fiscal year.
    3. Participation by each county in the association shall be optional with the quorum court of each of the respective counties as provided in this section.
    1. The funds so received by the association shall be used exclusively by it to finance the object of its existence, namely, to aid in the improvement of county government in the State of Arkansas.
    2. All funds so received by the association shall be subject to audit by the State of Arkansas, and the association shall make available to the auditors at all reasonable times all books, files, and records concerning such funds.
  1. Moneys appropriated by the court as the county's contribution to the association shall be paid to the association during the month of July for the fiscal year commencing on July 1 and ending on June 30 next following.
  2. The association is recognized as the official agency of the counties of this state to receive funds and use them for making a continuing study of ways and means to improve county government in Arkansas.
    1. There is created on the books of the Association of Arkansas Counties a trust fund to be known as the “Automated Records Systems Fund”.
      1. The Automated Records Systems Fund shall be funded by counties in Class 6 and Class 7 in the State of Arkansas.
      2. The county recorder of the Class 6 and Class 7 counties shall remit one dollar ($1.00) for each document recorded in the county recorder's office directly to the Automated Records Systems Fund on a monthly basis.
      1. The Automated Records Systems Fund shall be administered by a committee composed of the county recorders of the counties in Class 6 and Class 7 to be known as the “Automated Records Systems Fund Committee”.
      2. The committee shall meet biannually to review grant applications made by county recorders in Class 1 — Class 5 solely for purposes directly related to office automation.
      3. The committee shall not disburse any moneys from the Automated Records Systems Fund to counties in Class 6 and Class 7.
      4. The committee shall expend substantially all of the money from the fund on an annual basis.
      5. Each member of the committee may receive expense reimbursement in accordance with § 25-16-901 et seq.

History. Acts 1969, No. 92, §§ 1-4; A.S.A. 1947, §§ 17-425 — 17-428; Acts 2007, No. 615, § 2; 2009, No. 725, § 2.

Amendments. The 2009 amendment inserted (e)(3)(E).

14-20-108. Dues for volunteer fire departments.

      1. The quorum court of each county, upon request filed with the quorum court by one (1) or more volunteer fire departments in the county, may adopt an ordinance authorizing a designated county official to collect and remit to the volunteer fire department the annual dues charged by the volunteer fire department in consideration of providing fire protection to unincorporated areas in the county.
          1. When a quorum court receives a request for the levy of volunteer fire department dues and the request has been signed by the fire chief and the chair and secretary of the board of directors, if any, of a volunteer fire department and filed with the county clerk, the quorum court by ordinance shall call for an election on the issue of the levy of the volunteer fire department dues on each residence and on each business having an occupiable structure.
            1. The issue may be placed on the ballot at a special election by order of the quorum court in accordance with § 7-11-201 et seq.
            2. The special election shall be held by August 1.
          2. If an attested petition is filed with the county clerk and signed by a majority of registered voters in the volunteer fire department district voting in the immediately preceding general election, then the quorum court by ordinance shall dispense with a special election on the issue of the levy of volunteer fire department dues.
            1. If the levy of volunteer fire department dues is approved by a majority of those voting on the issue or the county clerk determines that the number of signatures of registered voters is sufficient and the quorum court dispenses with a special election, the volunteer fire department dues shall be listed annually on real property tax statements and collected by the county collector at the same time and in the same manner as real property taxes.
              1. The county collector shall report delinquencies to the volunteer fire department for collection.
              2. A volunteer fire department may collect volunteer fire department dues that have become delinquent and may enforce collection by proceedings in a court of proper jurisdiction.
              3. If the issue is approved by a majority of those voting on the issue, the incorporated town or city of the second class shall be served by the volunteer fire department district with the volunteer fire department dues levied and collected in the same manner as in the unincorporated areas served by the volunteer fire department district.
              4. The cost of the election shall be borne by the governing body of the incorporated town or city of the second class that called for the election.
        1. The cost of the election shall be borne by the volunteer fire department that requested the levy.
    1. The ordinance enacted by the quorum court shall set forth the terms and conditions on which the volunteer fire department dues are to be collected by the county and for the remission of the volunteer fire department dues to the volunteer fire department.
    2. However, an active member of a volunteer fire department whose annual volunteer fire department dues are collected in this manner may be exempt from the annual volunteer fire department dues at the discretion of the volunteer fire department in consideration of providing services to the volunteer fire department.
    1. The quorum court by majority vote may designate the geographical area that a volunteer fire department serves.
    2. Upon request by a volunteer fire department, the quorum court of each county involved may authorize a volunteer fire department to extend its geographical service area across the county boundary lines.
  1. The quorum court may establish its own countywide fire department, either regular or voluntary.
  2. This section does not change the authority of intergovernmental cooperation councils to enter into reciprocal agreements or to distribute funds under § 14-284-401 et seq. and § 26-57-614.
    1. If approved by ordinance by the governing body of an incorporated town or a city of the second class on the signed request of the fire chief and the chair and secretary of the board of directors, if any, of a volunteer fire department, an incorporated town or a city of the second class located in the volunteer fire department district that is not served by a fire department may be included in the fire protection area with the volunteer fire department dues levied and collected in the same manner as in the unincorporated areas served by the volunteer fire department district.
      1. The governing body of the incorporated town or city of the second class by ordinance shall call for an election on the ordinance under subdivision (e)(1) of this section.
      2. The issue may be placed on the ballot at a special election by order of the governing body in accordance with § 7-11-201 et seq., and the special election shall be held by August 1.
  3. At the discretion of a volunteer fire department, a church served by a volunteer fire department may be exempt from volunteer fire department dues if the church is exempt from real property taxes.
      1. By December 15 of each year or upon the creation of a volunteer fire department, a volunteer fire department that uses or intends to use the county collector for collection of the volunteer fire department dues shall file an annual report with the county clerk in any county in which a portion of the volunteer fire department is located.
      2. The county clerk shall not charge any costs or fees for filing the annual report.
      3. The volunteer fire department shall deliver a filed copy of the annual report to the county collector within five (5) days of filing.
    1. The annual report shall contain the following information as of December 15 of the current calendar year:
      1. Identification of the volunteer fire department board members and contact information;
      2. The contact information for the volunteer fire department chief;
      3. Information concerning to whom the official designated to remit the volunteer fire department dues is to pay volunteer fire department dues; and
      4. The amount of the annual dues charged by the volunteer fire department by parcel or on each residence or business having an occupiable structure.
  4. The official designated to remit the volunteer fire department dues under this section shall not remit the dues collected by the county collector to any volunteer fire department until the annual report has been filed.
  5. A volunteer fire department that is required to file a report under § 14-86-2102 is not required to file a separate report under this section.
  6. This section applies to all volunteer fire departments, however organized.

History. Acts 1977, No. 512, § 1; A.S.A. 1947, § 17-455; Acts 1991, No. 1038, § 1; 1995, No. 744, § 1; 2001, No. 984, §§ 1, 2; 2003, No. 201, § 1; 2005, No. 2145, § 18; 2007, No. 96, § 1; 2007, No. 1049, § 36; 2009, No. 300, § 1; 2009, No. 1480, § 52; 2015, No. 693, § 1.

A.C.R.C. Notes. Acts 2007, No. 96, § 2, provided: “This act shall not be construed to invalidate any election under Arkansas Code § 14-20-108 held prior to the effective date of this act that levied volunteer fire department dues only on residences.”

Amendments. The 2009 amendment by No. 300 inserted “quorum” in (a)(1)(A), (b), and (c); rewrote (a)(1)(B); added (e); and made minor stylistic changes.

The 2009 amendment by No. 1480 substituted “§ 7-11-201 et seq.” for “§ 7-5-103(b)” in (a)(1)(B)(i)(b)(1).

The 2015 amendment inserted “volunteer fire department” preceding “dues” in (a)(1)(B)(i) (d)(2)(B) , (a)(2), (e)(1), (e)(2)(C), and (f); deleted “or quarterly” following “annual” in (a)(1)(A); inserted present (a)(1)(B)(i) (c) and redesignated former (a)(1)(B)(i) (c) as (a)(1)(B)(i) (d) ; in (a)(1)(B)(i) (d)(1) , inserted “of volunteer fire department dues,” “or the county clerk determines that the number of signatures of registered voters is sufficient and the quorum court dispenses with a special election,” and “volunteer fire department” preceding “dues shall be”; in (a)(3), substituted “whose annual volunteer fire department dues” for “whose annual or quarterly dues” and “annual volunteer fire department dues at the discretion” for “annual or quarterly dues charged by the volunteer fire department at the discretion”; substituted “to extend its geographical service area” for “to serve a geographical area to extend” in (b)(2); substituted “signed request of” for “request of and signed by” in (e)(1); and added (g) through (j).

Cross References. Civil immunity of volunteer firefighters, § 16-5-101.

14-20-109. Rural solid waste disposal services.

    1. The quorum court of each county is authorized to establish garbage and trash collecting services, solid waste disposal facilities, and similar services for the benefit of the rural residents of the counties to provide, for such rural residents, services comparable to those provided within cities and unincorporated towns.
        1. The court may assess reasonable fees to be paid by each property owner, or renter of property, benefiting from such services.
        2. The courts shall establish the amount of such fees and the methods of collection thereof.
      1. The courts may authorize the counties to contract with one (1) or more public utilities or municipally owned and operated utilities within the cities and towns of the county to collect the fees to be remitted to the county, after retaining therefrom a reasonable service charge agreed to by the court and the city or town to defray the cost of collecting the fees.
  1. The provisions of this section shall be supplemental to the existing laws of this state governing the powers and duties of the quorum courts and are intended to repeal only such laws or parts of laws specifically in conflict with it.

History. Acts 1977, No. 473, §§ 1, 2; A.S.A. 1947, §§ 17-453, 17-454.

Case Notes

Cited: Ark. County v. Burris, 308 Ark. 490, 825 S.W.2d 590 (1992).

14-20-110. Marriage officials.

The county quorum courts may appoint special officials to solemnize marriages within their respective counties. However, the maximum number of such officials shall not exceed two (2) per ten thousand (10,000), or fraction thereof, population in the county as determined by the last census.

History. Acts 1977, No. 95, § 1; A.S.A. 1947, § 17-449.

14-20-111. Marriage license fee.

  1. The quorum court of any county may levy, in addition to fees and taxes now charged, a fee not to exceed five dollars ($5.00) on each application for a marriage license. Such a fee shall be collected by the county clerk at the time application is made.
  2. All fees collected under the provisions of this section shall be credited by the county treasurer to the county general fund and shall be appropriated by the quorum court as provided by law.

History. Acts 1953, No. 45, § 1; A.S.A. 1947, § 17-423; Acts 1989, No. 465, § 1.

Cross References. Marriage license fee, § 21-6-406.

Other marriage license fee provisions, § 20-7-123.

14-20-112. County gross receipts tax on hotels and restaurants.

        1. Any county in which there is located a municipality that levies a gross receipts tax on hotels, motels, restaurants, or similar establishments as authorized in the Advertising and Promotion Commission Act, § 26-75-601 et seq., may levy by ordinance of the county quorum court a like tax at the same rate as the levying municipality or at a lesser rate upon the gross receipts from furnishing of hotel or motel accommodations and upon the gross receipts of restaurants or similar establishments located within the county outside the boundaries of the levying municipality.
        2. The tax levied under this subdivision (a)(1)(A) shall apply to hotels, motels, restaurants, or similar establishments located within unincorporated areas of the county.
      1. Any county in which there is located a municipality that levies a gross receipts tax on hotels, motels, restaurants, or similar establishments as authorized in § 26-75-701 et seq. may levy by ordinance of the county quorum court a like tax at the same rate as the levying municipality or at a lesser rate upon the furnishing of hotel or motel accommodations, the admission price to tourist attractions as defined in § 26-63-401, the gross receipts of gift shops referred to in § 26-75-701, restaurants, or similar establishments located within any township in the county outside the boundaries of the levying municipality.
    1. When any county levies the tax authorized in this section, the tax so levied shall be paid by the persons, firms, and corporations liable therefor and shall be collected by the levying county in the same manner and at the same time as the gross receipts tax levied by the Arkansas Gross Receipts Act of 1941, § 26-52-101 et seq.
        1. The quorum court levying such tax and the governing body of the municipality levying a like tax may enter into an agreement whereby the tax levied by the county will be collected by the municipality.
        2. If the tax levied by the county is collected by the municipality, all revenues derived from the tax shall be deposited into the municipality's advertising and promotion fund.
      1. If the tax is collected by the levying county, all revenues derived from the tax, after deducting an amount equal to the cost of collecting it, shall be deposited into the advertising and promotion fund of the municipality located within the county that levies a like tax.
      2. All such funds deposited in the municipality's advertising and promotion fund shall be used for the purposes prescribed in §§ 26-75-601 — 26-75-613.
  1. When any county levies a tax as authorized in this section, the tax shall be reported and remitted in the manner and on forms prescribed by the county or the municipality.

History. Acts 1977, No. 178, §§ 3-5; A.S.A. 1947, §§ 17-450 — 17-452; Acts 2001, No. 1647, § 1; 2005, No. 2314, § 1; 2007, No. 182, § 12; 2007, No. 473, § 1.

Publisher's Notes. The introductory language of Acts 2001, No. 1647, § 1 provided: “Arkansas Code 14-20-112 (a)… is amended to read as follows”; however, Acts 2001, No. 1647, § 1 only set out subdivision (a)(1) and did not specifically repeal subdivision (a)(2). Subdivision (a)(2) has been printed at the request of the Arkansas Code Revision Commission.

Cross References. County sales and use taxes for capital improvements, § 26-74-201 et seq.

Taxation generally, § 26-73-101.

14-20-113. Collection of delinquent taxes.

The quorum court in each county shall provide for the collection of delinquent taxes within the county and shall place by ordinance the responsibility therefor in the office of the county collector or the combined office of sheriff and collector, or may provide for the collection of delinquent taxes by a person designated by a board composed of the county judge, an appropriate representative of the public schools in the county, and the mayor of the county seat or of each county seat in the case of those counties having two (2) county seats.

History. Acts 1977, No. 495, § 1; A.S.A. 1947, § 17-401.1.

Case Notes

Purpose.

By the enactment of Ark. Const. Amend. 55, §§ 21-6-301 and 21-6-310, and this section, there was no intent to abolish the office of delinquent tax collector; rather only an intent to abolish the fee compensation system. Bahil v. Scribner, 265 Ark. 834, 581 S.W.2d 334 (1979).

14-20-114. Extension of levies on tax books.

The taxes levied for county purposes named and specified shall be extended upon the tax books under the general head of county expenses, and warrants drawn by the clerk shall specify the fund or appropriation upon which they are drawn, respectively, and shall be made payable to the person in whose favor the allowance was made, or to the bearer. When so lawfully drawn and issued, the warrants shall be receivable by the sheriff and collector of revenue of the county for all licenses or debts due to the county.

History. Acts 1879, No. 77, § 10, p. 109; C. & M. Dig., § 1987; Pope's Dig., § 2532; A.S.A. 1947, § 17-413.

Publisher's Notes. Acts 1879, No. 77, § 14, provided that nothing in the act shall be so construed as to enlarge the functions or powers of the County Court of Sebastian County as under existing laws.

Case Notes

Warrants.

Warrants issued should state on their face the purpose for which issued. Lake v. Tatum, 175 Ark. 90, 1 S.W.2d 554 (1927).

14-20-115. [Repealed.]

Publisher's Notes. This section, concerning fund for costs of court personnel and equipment in counties of 65,000 or more, was repealed by Acts 1995, No. 1256, § 20, as amended by Acts 1995 (1st Ex. Sess.), No. 13, § 4. The section was derived from Acts 1988 (3rd Ex. Sess.), No. 33, § 1; 1991, No. 786, § 11.

14-20-116. Youth accident prevention program.

  1. The quorum courts of the counties of Arkansas are hereby authorized by ordinance to establish a youth accident prevention program designed to educate junior and senior high school students about driving while intoxicated, seat belt safety, and injuries resulting from drinking and driving and not being belted. These programs may be conducted up to four (4) days in length, and the cost of salaries, equipment, supplies, and other items related to the operation of the program shall be paid by the county.
  2. The district courts of Arkansas are hereby authorized to allocate up to five dollars ($5.00) of every fine, penalty, and forfeiture imposed and collected from every person convicted of a moving traffic offense for any youth accident prevention program created under subsection (a) of this section, and the same allocation shall pertain to any bond which is forfeited for any such offenses. These funds are to be remitted to the county treasurer and deposited into a special fund. Funds may be expended from this fund only for the purposes of this section.

History. Acts 1993, No. 594, §§ 1, 2.

Cross References. District courts generally, § 16-17-101 et seq.

Chapter 21 County Funds

Research References

Am. Jur. 56 Am. Jur. 2d, Mun. Corp. & Coun., § 637 et seq.

Subchapter 1 — General Provisions

Cross References. Clerks of courts to pay money to county treasurers, § 16-20-106.

Depositories for public funds, § 19-8-101 et seq.

Effective Dates. Acts 1883, No. 37, § 3: effective on passage.

Acts 1883, No. 107, § 3: effective on passage.

Acts 1929, No. 210, § 2: approved Mar. 27, 1929. Emergency clause provided: “This act being necessary for the preservation of the public peace, health and safety, an emergency is hereby declared and this act shall be in full force and effect from and after its passage.”

Acts 1931, No. 201, § 2: approved Mar. 26, 1931. Emergency clause provided: “It is hereby found and ascertained that there are public funds on deposit in closed banks in this State and that it is imperative that said banks be re-opened that the public may have the benefit of said funds; that an emergency is hereby found and declared to exist, and this act should be in full force and effect from and after its passage.”

Acts 1943, No. 60, § 2: effective on passage.

Acts 1977, No. 276, § 3: Feb. 28, 1977. Emergency clause provided: “It is hereby found and determined by the General Assembly that in some cases when Amendment 49 bonds have been wholly retired, unexpended balances remain in the bond redemption fund; and that these funds could be put to effective use by the county, city or town that initially issued the bond. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 2019, No. 564, § 3: Jan. 1, 2020.

14-21-101. Comprehensive financial management system.

    1. In order to provide necessary financial information for the county judge, the members and committees of the county quorum court, and other interested officers and departments of the county, the Legislative Auditor is authorized and directed to develop a comprehensive financial management system for appropriate funds of the various counties in the State of Arkansas.
    2. This financial management system shall provide for adequate controls over revenues, expenditures, and balances to assure that current information will always be available concerning the financial condition of the county and its various offices and departments.
    3. The system shall include a budgeting and accounting system designed to classify the receipt of and the appropriations and disbursements of county funds in accordance with the object and purpose of the expenditures in such detail as will be suitable for an analysis of the operations of all county offices and departments and which will provide a breakdown and itemization of all expenditures compatible with and comparable to the appropriations of the quorum court.
  1. In the event any county is of the opinion that its system of budgeting and accounting for appropriated county funds is such that it equals or exceeds the basic system prescribed by this section, the county, acting through the quorum court, may request a review of its system by the Legislative Joint Auditing Committee. If the committee concurs with the county, the committee may issue a certificate to the county stating that the county's budgeting and accounting system is of such degree of sophistication that the basic requirements of this section are being met and exempting the county from the requirements of the particulars of the system prescribed by this section.

History. Acts 1981, No. 122, § 1; A.S.A. 1947, § 17-609.

Publisher's Notes. The former last two sentences of subdivision (a)(3) of this section provided that the Legislative Auditor should develop the system and prepare a manual for implementing it, to be supplied to all counties, on or before October 1, 1981, and that the system developed by the auditor should be implemented by the counties before January 1, 1983.

Cross References. Division of Legislative Audit, § 10-4-401 et seq.

14-21-102. Annual financial report. [Effective until January 1, 2020.]

    1. The clerk of the county court and the county treasurer shall make out or cause to be made out a full and complete annual financial report of the county, using the financial records of the county clerk and county treasurer, giving:
      1. The treasurer's report of the beginning cash balance;
      2. The treasurer's report as to the amount of revenue from each source classification;
      3. The treasurer's report as to the ending cash balance;
      4. The county clerk's report as to the amount expended during the fiscal year for all purposes; and
      5. A statement of the bonded indebtedness and short-term indebtedness of the county.
    2. The annual county financial report shall include all operating accounts of the county for which the quorum court has appropriating control.
    3. The treasurer shall submit all reports required under this section to the clerk of the county court by March 1.
      1. The clerk of the county court shall cause to be published one (1) time in one (1) newspaper published in the county the annual financial report of the county.
      2. If no newspaper is published in the county, then the clerk of the county court shall cause the annual financial report of the county to be published one (1) time in the newspaper having the largest circulation in the county.
    1. The annual financial report shall be published by March 15 of each year for the previous fiscal year of the county.
  1. All costs associated with the publication of the annual financial report of the county may be prorated equally between the clerk of the county court and the county treasurer.

History. Acts 1993, No. 538, §§ 2, 3; 1995, No. 232, § 4; 2009, No. 315, § 1; 2011, No. 614, § 5.

Publisher's Notes. Former § 14-21-102, concerning semiannual financial statement, was repealed by Acts 1993, No. 538, § 1. The former section was derived from Acts 1967, No. 314, § 1; 1981, No. 677, § 1; A.S.A. 1947, § 17-710.

For text of section effective January 1, 2020, see the following version.

Amendments. The 2009 amendment inserted “and short-term indebtedness” in (a)(3).

The 2011 amendment inserted “and the county treasurer” in (a)(1); rewrote (a)(1)(A) through (D); added (a)(1)(E); rewrote (a)(3); deleted the last sentence in (b)(1)(A); added (b)(1)(B); rewrote (b)(2); and added (c).

14-21-102. Annual financial report. [Effective January 1, 2020.]

    1. The clerk of the county court and the county treasurer shall make out or cause to be made out a full and complete annual financial report of the county, using the financial records of the county clerk and county treasurer, giving:
      1. The treasurer's report of the beginning cash balance;
      2. The treasurer's report as to the amount of revenue from each source classification;
      3. The treasurer's report as to the ending cash balance;
      4. The county clerk's report as to the amount expended during the fiscal year for all purposes; and
      5. A statement of the bonded indebtedness and short-term indebtedness of the county.
    2. The annual county financial report shall include all operating accounts of the county for which the quorum court has appropriating control.
    3. The treasurer shall submit all reports required under this section to the clerk of the county court by March 1.
      1. The clerk of the county court shall publish the annual financial report of the county:
        1. One (1) time in one (1) newspaper published in the county; and
        2. On a website owned or maintained by the county, the state, or the Association of Arkansas Counties.
      2. If a newspaper is not published in the county, the clerk of the county court shall publish the annual financial report of the county one (1) time in the newspaper having the largest circulation in the county.
    1. The annual financial report shall be published by March 15 of each year for the previous fiscal year of the county.
  1. All costs associated with the publication of the annual financial report of the county may be prorated equally between the clerk of the county court and the county treasurer.

History. Acts 1993, No. 538, §§ 2, 3; 1995, No. 232, § 4; 2009, No. 315, § 1; 2011, No. 614, § 5; 2019, No. 564, § 2.

Publisher's Notes. Former § 14-21-102, concerning semiannual financial statement, was repealed by Acts 1993, No. 538, § 1. The former section was derived from Acts 1967, No. 314, § 1; 1981, No. 677, § 1; A.S.A. 1947, § 17-710.

For text of section effective until January 1, 2020, see the preceding version.

Amendments. The 2009 amendment inserted “and short-term indebtedness” in (a)(3).

The 2011 amendment inserted “and the county treasurer” in (a)(1); rewrote (a)(1)(A) through (D); added (a)(1)(E); rewrote (a)(3); deleted the last sentence in (b)(1)(A); added (b)(1)(B); rewrote (b)(2); and added (c).

The 2019 amendment substituted “shall publish the annual financial report” for “shall cause to be published one (1) time in one (1) newspaper published in the county the annual financial report” in (b)(1)(A); added (b)(1)(A)(i) and (b)(1)(A)(ii); and substituted “If a newspaper is not published in the county, the clerk of the county court shall publish the annual financial report of the county one (1) time” for “If no newspaper is published in the county, then the clerk of the county court shall cause the annual financial report of the county to be published one (1) time” in (b)(1)(B).

Effective Dates. Acts 2019, No. 564, § 3: Jan. 1, 2020.

14-21-103. [Repealed.]

Publisher's Notes. This section, concerning the county salary fund, was repealed by Acts 1995, No. 232, § 11. The section was derived from Acts 1967, No. 184, § 1; 1975, No. 370, § 1; A.S.A. 1947, §§ 17-606, 17-608.

14-21-104. County funds in State Treasury.

    1. Whenever there is any money or funds of any kind, from whatever source derived, in the State Treasury belonging to any county, the county court of the county shall make an order authorizing and directing the county treasurer to draw them.
    2. Upon the county treasurer presenting to the Auditor of State a copy of the order, duly certified to by the clerk of the county court, under his or her official seal, the Auditor of State shall draw his or her warrant upon the Treasurer of State for whatever money or funds there may at the time be in the State Treasury belonging to the county. Then the county treasurer shall execute to the Auditor of State a receipt for the warrant. Upon the presentation of the warrant of the Auditor of State, the Treasurer of State shall pay it.
  1. Upon the receipt of any such funds or money by the county treasurer of any county, he or she shall receipt therefor in duplicate, one (1) of which shall be retained by the Treasurer of State and the other of which shall be filed in the office of the clerk of the county, and the county treasurer shall thereupon charge himself or herself with the funds or money so received by him or her as county treasurer.

History. Acts 1883, No. 37, §§ 1, 2, p. 59; 1883, No. 107, § 1, p. 191; C. & M. Dig., §§ 1925-1928; Pope's Dig., §§ 2441-2444; A.S.A. 1947, §§ 17-601, 17-602.

14-21-105. Funds in closed banks.

  1. Where various funds of counties are on deposit in a closed bank and the bank could be reopened by agreements for deferred payments of deposits, the county court of any county in which any closed bank is situated is authorized, by proper order of the county court, to consent to deferred payments of deposits of all public funds in the closed bank upon such terms as may be fixed by the order of the court.
  2. This section shall apply to all county general, roads, school, and all other funds which are handled by county treasurers.

History. Acts 1931, No. 201, § 1; Pope's Dig., § 2624; A.S.A. 1947, § 17-604.

14-21-106. Surplus funds.

When any surplus is left remaining unexpended and unappropriated in the county general fund, the county road fund, the school fund, or any other special fund provided by law from any previous year, the county court of any such county is authorized, by proper order made and entered, to transfer and add the surplus to the respective funds of which the surplus remains unexpended and use it as the revenues for the current fiscal year into which it is transferred and added if all outstanding indebtedness for the fiscal years in which the surplus accrued has been paid.

History. Acts 1929, No. 210, § 1; Pope's Dig., § 2623; A.S.A. 1947, § 17-603.

Case Notes

Cited: Western Sur. Co. v. Washington County, 244 Ark. 1227, 429 S.W.2d 99 (1968).

14-21-107. [Repealed.]

Publisher's Notes. This section, concerning transfer of unexpended balances in bond redemption funds, was repealed by Acts 2013, No. 1150, § 1. The section was derived from Acts 1943, No. 60, § 1; 1973, No. 51, § 1; 1977, No. 276, § 1; A.S.A. 1947, §§ 17-605, 17-607.

14-21-108. [Repealed.]

Publisher's Notes. This section, concerning photographic images of checks for county governments, was repealed by Acts 2001, No. 469, § 1. The section was derived from Acts 1997, No. 121, § 1.

14-21-109. Abolished positions — Transfer of designated funds.

If county funds are designated for a specific position in the county and the position is subsequently abolished, the county court, by appropriate order, may transfer any remaining balance of county funds designated for that purpose to the county general revenue fund to be used for all purposes for which the county general revenue fund may be used.

History. Acts 2013, No. 958, § 2.

Subchapter 2 — County Drug Enforcement Fund

14-21-201. Establishment of drug enforcement fund.

  1. Ordinance. Each quorum court may by ordinance establish a drug enforcement fund. The ordinance shall set a maximum amount for the fund, not to exceed fifty thousand dollars ($50,000). The drug enforcement fund shall be administered by the county sheriff in accordance with the provisions and procedures of this subchapter. All funds shall initially be deposited into a drug enforcement fund bank account. The bank account shall be established at a bank located in the State of Arkansas and authorized by law to receive the deposit of public funds.
  2. Source of Funds. The source of all funds deposited into the drug enforcement fund shall be funds appropriated by the quorum court. The initial funding and any subsequent reimbursements to the drug enforcement fund shall be appropriated by the quorum court and subject to the normal disbursement procedures required by law. No funds from other sources, including seized property, shall be deposited into the drug enforcement fund.

History. Acts 1997, No. 362, § 1; 2013, No. 154, § 1.

Amendments. The 2013 amendment substituted “fifty thousand dollars ($50,000)” for “ten thousand dollars ($10,000)” in the second sentence of (a).

14-21-202. Restrictions on use of funds.

  1. Drug enforcement funds shall be used only for direct expenses associated with the investigation of the criminal drug laws of this state, including without limitation:
    1. The purchase of evidence;
    2. The payment of informants;
    3. The relocation or security of witnesses, or both;
    4. Emergency supply purchases; and
    5. Emergency travel expenses.
  2. Drug enforcement funds shall not be used for:
    1. Equipment purchases or leasing, salaries or wages, professional services, training, or any other purpose not directly related to a criminal drug investigation; or
    2. Administrative costs associated with the sheriff's office.

History. Acts 1997, No. 362, § 2; 2019, No. 383, § 5.

Amendments. The 2019 amendment, in (a), substituted “shall be used only” for “may only be used” and substituted “including without limitation” for “such as, but not limited to”; added the (a)(1) through (a)(5), (b)(1), and (b)(2) designations; added “The” in (a)(2) and (a)(3); in (a)(3), substituted “or” for “and/or”, and added “or both”; substituted “shall” for “may” in the introductory language of (b); and deleted “In addition, these funds may not be used for” from the beginning of (b)(2).

14-21-203. Approval of claims by county judge.

  1. After a quorum court has approved a proper ordinance establishing a drug enforcement fund, set the maximum amount of the fund, and appropriated funds for the fund, the county judge may approve a county claim for the initial establishment of the drug enforcement fund.
  2. If adequate appropriations and funds are available, the drug enforcement fund may be replenished upon presentation and approval of a claim as provided in the normal county disbursement procedures. The total amount of funds held in the drug enforcement fund bank account and cash funds held by the sheriff's office shall not exceed the maximum amount established by the quorum court.

History. Acts 1997, No. 362, § 3.

14-21-204. Accounting records.

Accounting records shall be maintained by the sheriff's office for the receipt, disbursement, accounting, and documentation of funds according to the written procedures established by the Division of Legislative Audit.

History. Acts 1997, No. 362, § 4.

Chapter 22 County Purchasing Procedures

Cross References. Arkansas Governmental Compliance Act, § 10-4-301 et seq.

Effective Dates. Acts 1975, No. 439, § 7: Mar. 17, 1975. Emergency clause provided: “It is hereby found and determined by the General Assembly that the efficient operation of the affairs of county government necessitates the establishment of realistic and reasonable purchasing procedures, and that the immediate passage of this Act is necessary to make immediate changes and improvements in the existing laws governing county purchasing procedures, thereby promoting efficiency in the operation of county government. Therefore, an emergency is hereby declared to exist, and this Act being immediately necessary for the preservation of the public peace, health, and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1975, No. 617, § 7: Mar. 28, 1975. Emergency clause provided: “It is hereby found and determined by the General Assembly that the efficient operation of the affairs of county government necessitates the establishment of realistic and reasonable purchasing procedures, and that the immediate passage of this Act is necessary to make immediate changes and improvements in the existing laws governing county purchasing procedures, thereby promoting efficiency in the operation of county government. Therefore, an emergency is hereby declared to exist, and this Act being immediately necessary for the preservation of the public peace, health, and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1981, No. 306, § 3: Mar. 4, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that it is impractical and contrary to the best interests of the citizens of this State that advanced emergency medical services provided by a private nonprofit corporation to counties be covered by the County Purchasing Law and that this Act is immediately necessary to provide such exemption. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1985, No. 745, § 4: Aug. 1, 1985.

Acts 1989, No. 879, § 4: Mar. 22, 1989. Emergency clause provided: “It is hereby found and determined by the General Assembly that present law requires counties to purchase by competitive bids used pipes if the purchase would be in excess of five thousand dollars ($5,000.) that the opportunity now exists for counties to purchase such materials at a substantially lower price than they could purchase it if they are required to take bids due to the fact that the used pipe will not be available but for a short period of time; and that this Act should therefore be given immediate effect. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 2009, No. 756, § 25: Apr. 1, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that motor vehicle dealers are experiencing economic difficulties related to the state of the national economy and the motor vehicle industry in particular; that an unprecedented number of motor vehicle dealers may terminate their franchises as a result of these economic conditions; and that this act is immediately necessary to assist dealers that are facing possible termination of their franchise. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

Research References

ALR.

Waiver of competitive bidding requirements for state and local public building and construction contracts. 40 A.L.R.4th 968.

Amount of appropriation as limitation on damages for breach of contract recoverable by one contracting with government agency. 40 A.L.R.4th 998.

Public contracts: low bidder's monetary relief against state or local agency for nonaward of contract. 65 A.L.R.4th 93.

Validity, construction, and effect of state and local laws requiring governmental units to give “purchase preference” to goods manufactured or services performed in state. 84 A.L.R.4th 419.

Validity, construction, and effect of requirement under state statute or local ordinance giving local or locally qualified contractors a percentage preference in determining lowest bid. 89 A.L.R.4th 587.

Case Notes

Purpose.

Purpose of this chapter is to regulate purchasing procedures. Mackey v. State, 257 Ark. 497, 519 S.W.2d 760 (1975).

14-22-101. Definitions.

As used in this chapter, unless the context otherwise requires:

  1. “Commodities” means all supplies, goods, material, equipment, machinery, facilities, personal property, and services other than personal services, purchased for or on behalf of the county;
  2. “Formal bidding” means the procedure to be followed in the solicitation and receipt of sealed bids, wherein:
    1. Notice shall be given of the date, time, and place of opening of bids, and the names or a brief description and the specifications of the commodities for which bids are to be received, by one (1) insertion in a newspaper with a general circulation in the county, not less than ten (10) days nor more than thirty (30) days prior to the date fixed for opening such bids;
    2. Not less than ten (10) days in advance of the date fixed for opening the bids, notices and bid forms shall be furnished to all eligible bidders on the bid list for the class of commodities on which bids are to be received, and to all others requesting them; and
    3. At least ten (10) days in advance of the date fixed for opening bids, a copy of the notice of invitation to bid shall be posted in a conspicuous place in the county courthouse;
  3. “Open market purchases” means those purchases of commodities by any purchasing official in which competitive bidding is not required;
  4. “Purchase” means not only the outright purchase of a commodity, but also the acquisition of commodities under rental-purchase agreements or lease-purchase agreements or any other types of agreements whereby the county has an option to buy the commodity and to apply the rental payments on the purchase price thereof;
  5. “Purchase price” means the full sale or bid price of any commodity, without any allowance for trade-in;
  6. “Purchasing official” means any county official, individual, board, or commission, or his or her or its lawfully designated agent, with constitutional authority to contract or make purchases on behalf of the county;
  7. “Trade-in purchases” means all purchases where offers must be included with the bids of each bidder for trade-in allowance for used commodities; and
    1. “Used or secondhand motor vehicles, equipment, or machinery” means motor vehicles, equipment, or machinery at least one (1) year in age from the date of original manufacture or that has at least two hundred fifty (250) working hours' prior use or five thousand (5,000) miles' prior use.
      1. A purchase of a used motor vehicle, equipment, or machinery shall be accompanied by a statement in writing from the vendor on the bill of sale or other document that the motor vehicle, equipment, or machinery is at least one (1) year in age from the date of original manufacture or has been used a minimum of two hundred fifty (250) hours or driven a minimum of five thousand (5,000) miles.
      2. This statement shall be filed with the county clerk at the time of purchase.

History. Acts 1965 (1st Ex. Sess.), No. 52, § 2; 1975, No. 439, § 2; 1975, No. 617, § 2; 1985, No. 844, § 1; A.S.A. 1947, § 17-1602; Acts 2001, No. 219, § 1; 2009, No. 410, § 8; 2009, No. 756, § 21; 2015, No. 561, § 1.

Amendments. The 2009 amendment by No. 410 inserted “on the bill of sale or otherwise documenting” in (8)(B)(i).

The 2009 amendment by No. 756 inserted “on the bill of sale or other document” in (8)(B)(i).

The 2015 amendment, in (8)(A) and (B), substituted “one (1) year” for “two (2) years,” substituted two hundred fifty (250)” for “five hundred (500),” and substituted “five thousand (5,000)” for “ten thousand (10,000).”

Case Notes

Formal Bidding.

Purchase of voting machines without complying with subdivision (5) was invalid even though it was known that there were only two eligible bidders, who were notified and invited to submit bids and did submit bids. Davis v. Jerry, 245 Ark. 500, 432 S.W.2d 831 (1968).

14-22-102. Applicability.

  1. It is unlawful for any county official to make any purchases with county funds in excess of twenty thousand dollars ($20,000), unless the method of purchasing prescribed in this chapter is followed.
  2. This chapter shall not apply to any purchases under twenty thousand dollars ($20,000) or to the purchase of commodities set forth in § 14-22-106.

History. Acts 1965 (1st Ex. Sess.), No. 52, § 1; 1975, No. 439, § 1; 1975, No. 617, § 1; 1985, No. 745, § 1; A.S.A. 1947, § 17-1601; Acts 1995, No. 431, § 1; 2003, No. 209, § 1; 2007, No. 249, § 1.

Amendments. The 2003 amendment substituted “fifteen thousand dollars ($15,000)” for “ten thousand dollars ($10,000)” in (a) and (b).

Case Notes

Cited: Dean Leasing, Inc. v. Van Buren County, 27 Ark. App. 134, 767 S.W.2d 316 (1989).

14-22-103. Penalty.

Any person or official who intentionally violates the provisions of this chapter upon conviction shall be fined in any amount not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000). In addition thereto, he or she may be removed from his or her office or position of employment with the county.

History. Acts 1965 (1st Ex. Sess.), No. 52, § 13; A.S.A. 1947, § 17-1613.

14-22-104. Purchases permitted.

All purchases of commodities made by any county purchasing official with county funds, except those specifically exempted by this chapter, shall be made as follows:

  1. Formal bidding shall be required in each instance in which the estimated purchase price shall equal or exceed twenty thousand dollars ($20,000);
  2. Open market purchases may be made of any commodities where the purchase price is less than twenty thousand dollars ($20,000); and
  3. No purchasing official shall parcel or split any items of commodities or estimates with the intent or purpose to change the classification or to enable the purchase to be made under a less restrictive procedure.

History. Acts 1965 (1st Ex. Sess.), No. 52, § 3; 1975, No. 439, § 3; 1975, No. 617, § 3; 1985, No. 745, § 2; A.S.A. 1947, § 17-1603; Acts 1995, No. 431, § 2; 2003, No. 209, § 2; 2007, No. 249, § 2.

Amendments. The 2003 amendment substituted “fifteen thousand dollars ($15,000)” for “ten thousand dollars ($10,000)” in (1) and (2).

Case Notes

Purpose.

Purpose of this section is to regulate purchasing procedures. Mackey v. State, 257 Ark. 497, 519 S.W.2d 760 (1975).

Formal Bidding.

The purchase of sixty voting machines at a cost far in excess of the statutory amount required formal bidding under subdivision (1). Davis v. Jerry, 245 Ark. 500, 432 S.W.2d 831 (1968).

Parcel or Split.

Mere suspicion was not enough to prove that defendant intentionally violated the prohibition against splitting purchases to avoid the necessity of soliciting competitive bids where the evidence showed only that materials of the same kind were purchased on successive days for amounts under the statutory requirements. Mackey v. State, 257 Ark. 497, 519 S.W.2d 760 (1975).

Purchases.

Approval by county judge of purchases already made by others does not amount to purchases by the judge, and therefore a judge does not violate the purchasing restrictions, where no conspiracy between the judge and those making the purchases is proved. Mackey v. State, 257 Ark. 497, 519 S.W.2d 760 (1975).

Cited: Dean Leasing, Inc. v. Van Buren County, 27 Ark. App. 134, 767 S.W.2d 316 (1989).

14-22-105. Purchase of motor fuels and accessories.

For the purpose of this chapter, any county within this state may be considered a state agency for the purpose of purchasing gasoline, oil, and other motor fuels, and batteries, tires, and tubes for motor vehicles. Any county purchasing agent within this state may, by complying with Acts 1955, No. 313, §§ 13, 14 [repealed], purchase such commodities through the state purchasing agent under the authority set forth in these statutes.

History. Acts 1965 (1st Ex. Sess.), No. 52, § 11; A.S.A. 1947, § 17-1611.

Publisher's Notes. For present law on state purchasing, see the Arkansas Procurement Law, § 19-11-201 et seq..

14-22-106. Purchases exempted from soliciting bids.

The following listed commodities may be purchased without soliciting bids:

  1. Perishable foodstuffs for immediate use;
  2. Unprocessed feed for livestock and poultry;
  3. Advanced emergency medical services provided by a nonprofit corporation and proprietary medicines when specifically requested by a professional employee;
  4. Books, manuals, periodicals, films, and copyrighted educational aids for use in libraries and other informational material for institutional purposes;
  5. Scientific equipment and parts therefor;
  6. Replacement parts and labor for repairs of machinery and equipment;
  7. Commodities available only from the United States Government;
    1. Any commodities needed in instances in which an unforeseen and unavoidable emergency has arisen in which human life, health, or public property is in jeopardy.
    2. An emergency purchase under subdivision (8)(A) of this section shall not be approved unless a statement in writing is attached to the purchase order describing the emergency necessitating the purchase of the commodity without competitive bidding;
  8. Utility services, the rates for which are subject to regulation by a state agency or a federal regulatory agency;
  9. Sand, gravel, soil, lumber, used pipe, or used steel;
  10. Used or secondhand motor vehicles, machinery, or equipment, except a used or secondhand motor vehicle that has been under lease to a county when the vehicle has fewer than five thousand (5,000) miles of use shall not be purchased by the county when it has been used five thousand (5,000) miles or more except upon competitive bids as provided in this chapter;
  11. Machinery, equipment, facilities, or other personal property purchased or acquired for or in connection with the securing and developing of industry under the Municipalities and Counties Industrial Development Revenue Bond Law, § 14-164-201 et seq., or any other provision of law pertaining to the securing and developing of industry;
  12. Registered livestock to be used for breeding purposes;
  13. Motor fuels, oil, asphalt, asphalt oil, and natural gas;
  14. Motor vehicles, equipment, machinery, material, or supplies offered for sale at public auction or through a process requiring sealed bids;
  15. All goods and services that are regularly provided to state agencies and county government by the Division of Correction's various penal industries;
    1. New motor vehicles purchased from a licensed automobile dealership located in Arkansas for an amount not to exceed the fleet price awarded by the Office of State Procurement and in effect at the time the county submits the purchase order for the same make and model motor vehicle.
    2. The purchase amount for a new motor vehicle may include additional options up to six hundred dollars ($600) over the fleet price awarded;
  16. Renewal or an extension of the term of an existing contract;
  17. Purchase of insurance for county employees, including without limitation health insurance, workers’ compensation insurance, life insurance, risk management services, or dental insurance;
  18. Purchases made through programs of the National Association of Counties or the Association of Arkansas Counties;
  19. Goods or services if the quorum court has approved by resolution the purchase of goods or services through competitive bidding or procurement procedures used by:
    1. The United States Government or one (1) of its agencies;
    2. Another state; or
    3. An association of governments or governmental agencies including associations of governments or governmental agencies below the state level; and
    1. Goods or services available only from a single source.
    2. A purchase under this subdivision (22) shall be supported with:
      1. Documentation concerning the exclusivity of the single source; and
      2. A county court order filed with the county clerk that sets forth the basis for the single source procurement.

History. Acts 1965 (1st Ex. Sess.), No. 52, § 6; 1975, No. 439, §§ 5, 6; 1975, No. 617, §§ 5, 6; 1981, No. 306, § 1; 1985, No. 844, §§ 2, 3; A.S.A. 1947, § 17-1606; Acts 1989, No. 879, § 1; 1991, No. 786, § 12; 1993, No. 237, § 1; 2001, No. 219, § 2; 2007, No. 13, § 1; 2009, No. 410, §§ 9, 10; 2009, No. 756, § 22; 2011, No. 1044, § 1; 2013, No. 465, § 1; 2015, No. 561, § 2; 2019, No. 910, § 846.

A.C.R.C. Notes. Ark. Const., Amend. 62, § 11, provides that all provisions of the Arkansas Constitution, or amendments thereto, in conflict with Ark. Const., Amend. 62, including Ark. Const., Amends. 17 and 49, are repealed.

Acts 1991, No. 786, § 37, provided:

“The enactment and adoption of this Act shall not repeal, expressly or impliedly, the acts passed at the regular session of the 78th General Assembly. All such acts shall have full effect and, so far as those acts intentionally vary from or conflict with any provision contained in this Act, those acts shall have the effect of subsequent acts and as amending or repealing the appropriate parts of the Arkansas Code of 1987.”

Amendments. The 2009 amendment by No. 410 inserted “oil, asphalt, asphalt oil, and natural gas” in (14) and made a related change; and added (17) through (20).

The 2009 amendment by No. 756 subdivided (8) and inserted “under subdivision (8)(A) of this section” in (8)(B); deleted “or pursuant to the provisions of Arkansas Constitution, Amendment 49 [repealed]” following “under” in (12); inserted “oil, asphalt, asphalt oil, and natural gas” in (14); added (17) and (18); and made related and minor stylistic changes.

The 2011 amendment added (21).

The 2013 amendment added (22).

The 2015 amendment, in (11), deleted “that” following “except” and substituted “five thousand (5,000)” for “ten thousand (10,000)” twice.

The 2019 amendment substituted “Division of Correction’s” for “Department of Correction’s” in (16).

Case Notes

Attached Statement.

The purpose of the statement requirement in subdivision (8) is likely to assure that the exemption only applies to equipment that is truly used equipment. Robinson v. Clark Contracting Co., 992 F.2d 154 (8th Cir. 1993).

Where a party did not timely file a subdivision (8) statement, the party's substantial compliance as to the time of filing allowed the exemption in subdivision (11) to be applicable. Robinson v. Clark Contracting Co., 992 F.2d 154 (8th Cir. 1993).

Nonexempt Purchases.

The purchase of voting machines is not within the exceptions enumerated in this section. Davis v. Jerry, 245 Ark. 500, 432 S.W.2d 831 (1968).

14-22-107. List of eligible bidders.

  1. The county purchasing official shall establish and maintain a list of eligible bidders covering all commodities and shall furnish copies of it to all purchasing officials of the county.
  2. Any firm which desires to bid and have its name on the list of prospective bidders shall notify the purchasing official in writing of this desire, setting forth the class and description of commodities on which it desires to bid and the firm's qualifications as a responsible bidder.
  3. Every effort shall be made by the purchasing official to notify all eligible bidders before purchases are made.

History. Acts 1965 (1st Ex. Sess.), No. 52, § 7; A.S.A. 1947, § 17-1607.

14-22-108. Bidding procedure.

  1. All bids which require either formal or informal bidding shall be opened in public and read at the time and place specified in the notice.
  2. The awarding of contracts need not be upon the day of the opening of the bids but may be at a later date to be determined by the purchasing official.
  3. In order to assure that the bidder will accept and perform a contract under the terms of his or her bid, the purchasing official may require bids to be accompanied by certified check or surety bond furnished by a surety company authorized to do business in this state in such a reasonable amount as the purchasing official shall determine.

History. Acts 1965 (1st Ex. Sess.), No. 52, § 8; A.S.A. 1947, § 17-1608.

14-22-109. Descriptions and specifications.

  1. Descriptions and specifications shall be sufficiently restricted or specific so as to exclude cheap or inferior commodities which are not suitable or practicable for the purpose for which they are to be used, but at no time shall they be so specific in detail as to restrict or eliminate competitive bidding of any items of comparable quality and coming within a reasonably close price range.
  2. Brand names may be used to simplify or indicate the general description of the commodities required, but at no time, except for repair parts or items for use with existing equipment and machines or other health aids requested by a professional employee, shall such names be used to indicate any preference or to prevent bidding on commodities of like quality and coming within reasonably close price range.

History. Acts 1965 (1st Ex. Sess.), No. 52, § 4; 1975, No. 439, § 4; 1975, No. 617, § 4; A.S.A. 1947, § 17-1604.

14-22-110. Testing and examination of products.

  1. The purchasing official is authorized to establish and enforce standards for all commodities for which formal bidding is required and to make or cause to be made any test, examination, or analysis necessary therefor. He or she may require samples to be submitted and a certified analysis to accompany bids prior to awarding contracts.
  2. After the bids have been opened, the lowest responsible bidder may be required to submit his or her product or article to further testing and examination prior to awarding the contract.

History. Acts 1965 (1st Ex. Sess.), No. 52, § 4; 1975, No. 439, § 4; 1975, No. 617, § 4; A.S.A. 1947, § 17-1604.

14-22-111. Awarding of contracts.

  1. All contracts shall be awarded to the lowest responsible bidder, taking into consideration all relevant facts, including without limitation quality, time of performance, probability of performance, and location.
    1. Any bid may be rejected by the purchasing official.
      1. Where bids are rejected, but the proposed purchase is not abandoned, and the circumstances indicate that further solicitation for bids would be to the best interest of the county, new bids may be called for.
      2. If the low bid is not accepted, a written statement shall be made by the purchasing agent and filed with the county clerk giving reasons for such refusal.
  2. All bidders shall be given equal consideration under the provisions of this chapter, except that when the bid represents items manufactured or grown in the county or offered for sale by business establishments having their principal place of business in the county with the quality being equal to articles offered by competitors outside the county, then the bidder shall be allowed a differential of not to exceed three percent (3%) of the purchase price in determining the low bid. However, in each instance in which this bid preference is requested, the bidder must so indicate before the date and time fixed for opening the bids and thereafter furnish satisfactory proof if requested.
  3. In all cases where there are equal or tie bids, preference shall be given to residents or firms located and doing business in the county.

History. Acts 1965 (1st Ex. Sess.), No. 52, § 5; A.S.A. 1947, § 17-1605.

Case Notes

Cited: Massongill v. County of Scott, 329 Ark. 98, 947 S.W.2d 749 (1997).

14-22-112. Order of approval.

  1. No contract shall be awarded or any purchase made until it has been approved by the county court, and no contract shall be binding on any county until the court shall have issued its order of approval.
  2. The order of the court shall be properly docketed. All documents and bids pertaining to the solicitation of bids and awarding of contracts under the purchasing procedure of this chapter shall be filed with the county clerk, together with the order of the court, which shall be filed by the clerk.
  3. No claim filed with the county for payment of any commodity, the purchase of which is regulated by this chapter, shall be paid; or no warrant shall be issued by the county clerk for the payment of it until the order of the court approving it shall have been issued and filed with the clerk.

History. Acts 1965 (1st Ex. Sess.), No. 52, § 9; A.S.A. 1947, § 17-1609.

Case Notes

Cited: Dean Leasing, Inc. v. Van Buren County, 27 Ark. App. 134, 767 S.W.2d 316 (1989).

14-22-113. Trade-ins.

  1. In the case of a purchase contract in which trade-ins are being offered on the purchase of commodities, the full purchase price shall govern the classification or purchase procedure to be followed in the solicitation for bids and the awarding of the contract.
  2. The purchasing official shall determine, with respect to trade-ins, what procedure shall be for the best interest of the county. If he or she so determines, such equipment or machinery may be sold outright under the law as provided.

History. Acts 1965 (1st Ex. Sess.), No. 52, § 10; A.S.A. 1947, § 17-1610.

14-22-114. Failure of performance.

If any bidder to whom a purchase contract is awarded under the provisions of this chapter shall refuse or fail to perform the contract or to make delivery when required by the contract, or shall deliver commodities which are inferior or do not meet the specifications under the bid, the county may pursue any remedy available at law or in equity, including, without limitation, the voiding of the contract.

History. Acts 1965 (1st Ex. Sess.), No. 52, § 10; A.S.A. 1947, § 17-1610.

14-22-115. Legal counsel.

The purchasing official, upon approval of the county court, may call upon the prosecuting attorney of the district in which the county lies, or employ counsel for advice and aid in the preparation of necessary contracts and all other legal matters in connection with those purchases.

History. Acts 1965 (1st Ex. Sess.), No. 52, § 12; A.S.A. 1947, § 17-1612.

Chapter 23 Claims Against Counties

Subchapter 1 — General Provisions

Cross References. Indemnification by state for certain actions, § 21-9-304.

Immunity from tort liability, § 21-9-301 et seq.

Trees destroyed by State Plant Board, § 2-16-101.

Workers' compensation, § 14-26-101 et seq.

Effective Dates. Acts 1873, No. 31, § 30: effective on passage.

Acts 1873, No. 114, § 10: effective on passage.

Acts 1879, No. 16, § 4: effective on passage.

Acts 1881, No. 65, § 2: effective on passage.

Acts 1895, No. 135, § 3: effective 90 days after passage.

Acts 1937, No. 193, § 4: approved Mar. 3, 1937. Emergency clause provided: “Although the people of this State adopted Amendment No. 10 to the Constitution of the State of Arkansas for 1874, and although its provisions are adequate if properly enforced, the same have not been enforced and has thereby brought about a condition of laxity on the part of our county officials relative to expending more funds than received during each fiscal year; therefore, an emergency is hereby declared to exist and this act shall be in full force and effect from and after its passage.”

Acts 1939, No. 299, § 6: approved Mar. 14, 1939. Emergency clause provided: “It being found by the General Assembly that there are many counties in this state where the officers in good faith have allowed claims for highway purposes to accumulate prior to January 1, 1939, and with the intention of paying the same from Turnback funds due such counties prior to the decision of the Supreme Court of Arkansas construing Act 193 of the Acts of 1937; and it being further found that there are many citizens of the state who in good faith hold claims against many counties for highway purposes that should be paid, but cannot now be paid under the present law; and it being further found that the fiscal affairs of many counties of this state are in a bad condition as a result of the failure of some county officers to comply strictly with the provisions of Amendment No. 10; an emergency is hereby declared to exist and this Act shall take effect and be in force from and after its passage.”

Acts 1977, No. 756, § 4: Mar. 24, 1977. Emergency clause provided: “It is hereby found and determined by the General Assembly that there is currently no means of approving claims made on the county other than by certification; that this process is time consuming, cumbersome, and unnecessary to insure honesty in claims presented to the county; that this Act would make the payment of claims less cumbersome and more efficient, resulting in a saving of time and effort. Therefore, an emergency is declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Research References

ALR.

Validity and construction of statute or ordinance limiting the kinds or amount of actual damages recoverable in tort action against governmental unit. 43 A.L.R.4th 19.

Right of one government subdivision to sue another such subdivision for damages. 11 A.L.R.5th 630.

Am. Jur. 28 Am. Jur. 2d, Est. & Waiv., § 127.

56 Am. Jur. 2d, Mun. Corp., §§ 680 et seq., 848 et seq.

57 Am. Jur. 2d, Mun. & Coun. Tort., § 5 et seq.

Ark. L. Rev.

State Immunity and the Arkansas Claims Commission, 21 Ark. L. Rev. 180.

Hall v. University of Nevada: Sovereign Immunity and the Transitory Action, 27 Ark. L. Rev. 546.

C.J.S. 20 C.J.S., Counties, § 297 et seq.

14-23-101. Presentment to county court — Appeals.

  1. All persons having demands against any county shall present them, duly verified according to law, to the county court of the county for allowance or rejection.
  2. From the order of the court thereon, appeals may be prosecuted as provided by law. If on any such appeal the judgment of the county court is reversed, the judgment of reversal shall be certified by the court rendering it to the county court, and the court shall thereupon enter the judgment of the superior court as its own.

History. Acts 1879, No. 16, § 2, p. 13; C. & M. Dig., §§ 2025, 2026; Pope's Dig., §§ 2579, 2580; A.S.A. 1947, § 17-702.

Cross References. Allowance to set forth appropriation from which to be paid, § 14-20-104.

Appeal from county allowances to circuit court — Bond, Ark. Const., Art. 7, § 51.

Case Notes

Claims Allowed.

An allowance of interest on a judgment against a county is not a contract by a county to pay interest, and does not violate Ark. Const., Art. 16, § 1, prohibiting counties from lending credit. Nevada County v. Hicks, 50 Ark. 416, 8 S.W. 180 (1888).

County was liable for costs expended in procuring allowance, including fee for filing claim. Jefferson County v. Philpot, 66 Ark. 243, 50 S.W. 453 (1899).

Where construction of road was an accomplished fact, landowner's only remedy against county was to file a claim in the county court for just compensation for a completed taking, inasmuch as exclusive jurisdiction of a claim for compensation was vested in the county court as a matter relating to county roads, and the county could not be sued to recover this compensation by inverse condemnation proceedings. Chamberlain v. Newton County, 266 Ark. 516, 587 S.W.2d 4 (1979).

Claims Not Allowed.

A county is not the subject of garnishment, but may be required in equity to pay the creditor of its insolvent creditor. Riggin v. Hilliard, 56 Ark. 476, 20 S.W. 402 (1892).

County was not liable for clerk's fee for filing accounts of claimants against county. Prairie County v. Vaughan, 64 Ark. 203, 41 S.W. 420 (1897).

County was not liable to refund purchase money of tax land. Nevada County v. Dickey, 68 Ark. 160, 56 S.W. 779 (1900).

County was not liable for fee for filing warrants for allowance and reissuance. Duncan v. Scott County, 70 Ark. 607, 70 S.W. 314 (1902).

Jurisdiction.

This section does not prevent a citizen of another state from maintaining a suit against a county on its obligations or contracts in a federal court, when all other jurisdictional facts appear to give this jurisdiction. Chicot County v. Sherwood, 148 U.S. 529, 13 S. Ct. 695, 37 L. Ed. 546 (1893).

Cited: Pulaski County v. Reeve, 42 Ark. 54 (1883); Jones v. Capers, 231 Ark. 870, 333 S.W.2d 242 (1960); Deason v. City of Rogers, 247 Ark. 1061, 449 S.W.2d 410 (1970); Bigelow v. Union County, 287 Ark. 486, 701 S.W.2d 125 (1985).

14-23-102. Itemized account required.

In all cases, the county court shall require an itemized account of any claim presented to it for allowance, certified or sworn to as required by law, and, in addition, the court may require in all cases satisfactory evidence of the correctness of the account.

History. Acts 1873, No. 114, § 8, p. 277; C. & M. Dig., § 2030; Pope's Dig., § 2584; A.S.A. 1947, § 17-704.

Case Notes

In General.

On a claim against a county, it is error to allow charges that are not itemized. Desha County v. Jones, 51 Ark. 524, 11 S.W. 875 (1889); Clark County v. Callaway, 52 Ark. 361, 12 S.W. 756 (1890); St. Francis County v. Cummings, 55 Ark. 419, 18 S.W. 461 (1892).

Former statutes providing expense allowances for county officials were unconstitutional as applied, since, in some cases, the officials received the expenses in advance and made no accounting therefore and, in other cases, the officials filed a claim each month, but without an itemized account. Tedford v. Mears, 258 Ark. 450, 526 S.W.2d 1 (1975).

Appeals.

Where no objection is raised in a trial court that a claim against a county was not itemized, the objection cannot be raised on appeal. Hempstead County v. Wilson, 144 Ark. 267, 222 S.W. 48 (1920).

14-23-103. Examination of parties and documents.

In the investigation of any account, each county court may examine all the parties and witnesses, on oath, touching the matter, or any other matter arising under this act and shall have power to compel the production of all books, accounts, papers, or documents which may be necessary in the investigation of any matter arising under the provisions of this act.

History. Rev. Stat., ch. 41, § 35; C. & M. Dig., § 2030; Pope's Dig., § 2584; A.S.A. 1947, § 17-705.

Meaning of “this act”. Rev. Stat., ch. 41, codified as §§ 14-15-801, 14-15-80514-15-807, 14-15-809, 14-23-103, 14-24-10214-24-105, 14-24-110, 14-24-111, and 21-7-211.

14-23-104. Court order for payment.

No moneys appropriated by the county quorum court from a tax levied or from any other source shall be paid out of the county treasury, except on an order duly made by the county court, while in session, and entered upon the records of its proceedings.

History. Acts 1873, No. 31, § 11, p. 53; C. & M. Dig., § 2027; Pope's Dig., § 2581; Acts 1977, No. 756, § 1; A.S.A. 1947, § 17-701.

Case Notes

Payment.

Where circuit clerk and deputy sheriff rendered services for county in felony cases during 1937 and 1938 and the cases were disposed of in 1939, claims for such services accrued in 1939 and were allowable out of 1939 revenue, and not out of the revenue of previous years, and could still be paid out of such revenue in 1940 if there was a sufficient surplus at the close of 1939. Poinsett County v. Lady, 199 Ark. 657, 135 S.W.2d 665 (1940).

Cited: Rolfe v. Spybuck Drainage Dist. No. 1, 101 Ark. 29, 140 S.W. 988 (1911); Jones v. Capers, 231 Ark. 870, 333 S.W.2d 242 (1960).

14-23-105. Supporting documentation.

      1. Before any account, claim, demand, or fee bill shall be allowed by any county court, the court shall require the person, or his or her legal representative, claiming it to be due, to attach to the county claim for payment an itemized listing or numbered invoice which may be designated as supporting documentation.
      2. The itemized listing or numbered invoice shall be made a part of the county claim for payment and shall be approved for payment by the appropriate county elected official, or his or her designated representative, prior to the claim’s being filed and docketed with the county clerk.
      1. The allowed claim, demand, or fee bill, together with the itemized listing or numbered invoice for payment, shall be filed with the county clerk and kept in his or her office for the term of three (3) years, and these documents shall be subject to the inspection of any member of the grand jury of the county at each term of the grand jury or by the prosecuting attorney of the circuit court.
      2. Any claim which is a matter of record or any claim in the circuit court when it is duly certified down to the county court by the clerk of the circuit court shall be sufficient justification for the claim for the payment to be allowed.
  1. The county clerk shall preserve all claims and supporting documents for a period of seven (7) years after they have been audited by the Division of Legislative Audit and the audit report in regard thereto has been accepted and filed by the Legislative Joint Auditing Committee, at which time he or she may obtain a county court order to destroy them by shredding or other appropriate means.

History. Acts 1873, No. 31, § 12, p. 57; 1875 (Adj. Sess.), No. 44, § 2, p. 51; 1881, No. 65, § 1, p. 130; C. & M. Dig., § 2029; Pope's Dig., § 2583; Acts 1957, No. 162, § 1; 1977, No. 756, § 2; 1983, No. 727, § 1; A.S.A. 1947, § 17-703.

Case Notes

In General.

Where county court makes an order directing the payment of a claim against the county, it is not necessary to comply with this section. West Twelfth St. Road Improv. Dist. v. Kinstley, 188 Ark. 77, 63 S.W.2d 980 (1933).

The requirements of this section are not merely formal, but a substantial and substantive part of the law, and must be substantially followed either in the exact words of the statute or in words of equal import and meaning. National Supply Co. v. Izard County, 190 Ark. 744, 81 S.W.2d 842 (1935).

Applicability.

This section does not apply if there is a special statute directing the manner in which claims are to be presented. Saline County v. Kinkead, 84 Ark. 329, 105 S.W. 581 (1907).

Certification.

Objection that account was not verified could not be raised for first time on appeal. Road Dist. of Crawford County v. Spradley, 151 Ark. 494, 236 S.W. 842 (1922) (decision prior to 1977 amendment).

County was held liable for construction of bridge even though affidavit was defective. Woodruff County v. Road Improv. Dist., 165 Ark. 101, 262 S.W. 994 (1924) (decision prior to 1977 amendment).

Petition to restore lost record of claim against county and of the allowance thereof by the county court that alleged the filing of the claim, duly verified, and its allowance by the county court, but that the order was not placed on the court records and no warrant was issued and that the claim had been lost, stated a cause of action. McDaniel v. Prairie County, 187 Ark. 38, 58 S.W.2d 200 (1933) (decision prior to 1977 amendment).

Affidavit attached to claim against county alleging that account was true and correct, that no part of the account had been paid, and that it was due and payable was held not to comply with this section. National Supply Co. v. Izard County, 190 Ark. 744, 81 S.W.2d 842 (1935) (decision prior to 1977 amendment).

No affidavit as required in ordinary contractual claims against a county was required on claims by circuit clerk and deputy sheriff for services rendered in criminal cases. Poinsett County v. Lady, 199 Ark. 657, 135 S.W.2d 665 (1940) (decision prior to 1977 amendment).

A leasehold interest in realty was held to be a very real and tangible thing, and “services charged for or materials furnished” were actually furnished within meaning of this section when the lease contract was completed by formal ratification. Watts & Sanders v. Myatt, 216 Ark. 660, 226 S.W.2d 800 (1950) (decision prior to 1977 amendment).

Criminal Violations.

Before a conviction can be sustained on a charge of violating this section, there must be some showing of a willful violation of the statute inferring corrupt motives. Gordon v. State, 233 Ark. 256, 343 S.W.2d 780 (1961).

Jurisdiction.

This section does not take away the jurisdiction of a county court over claims against the county and does not prohibit the court from adjudicating the validity of a claim. Lamb & Rhodes v. Howton, 131 Ark. 211, 198 S.W. 521 (1917).

Cited: Jones v. Capers, 231 Ark. 870, 333 S.W.2d 242 (1960).

14-23-106. Allowance of more than amount due unlawful.

    1. It shall be unlawful for any county court in this state to allow any greater sums for any account, claim, demand, or fee bill against the county than the amount actually due, estimating one dollar ($1.00) in county warrants as at par with one dollar ($1.00) in lawful money of the United States, dollar for dollar, according to the legal or ordinary and customary compensation for services rendered, materials furnished, and salaries or fees of officers, when they are paid in such lawful money.
    2. No county court shall direct the issue of any warrants, nor, if directed in violation of this act, shall any clerk issue any such warrant upon such accounts, claims, demands, or fee bills for more than the actual amount so allowed, which is one dollar ($1.00) in lawful money of the United States for one dollar ($1.00) in county warrants, and no more.
  1. Any county court, or any judge of the county court, or clerk of the court who shall willfully violate any of the provisions of this act, or neglect or refuse to perform any duty imposed in this act, shall be deemed guilty of a misdemeanor and, upon conviction in a court of competent jurisdiction, shall be subject to a fine of not less than ten dollars ($10.00) nor more than one thousand dollars ($1,000) and shall be removed from office.

History. Acts 1873, No. 31, §§ 11, 26, p. 57; 1875 (Adj. Sess.), No. 44, § 1, p. 51; C. & M. Dig., §§ 2028, 2815; Pope's Dig., §§ 2582, 3533; A.S.A. 1947, §§ 17-706, 17-707.

Meaning of “this act”. Acts 1873, No. 31, codified as §§ 14-23-10414-23-106, 14-24-101, 14-319-101, 16-15-106, 16-15-107, 16-15-110, 16-15-112, 16-20-401, 16-67-208, 27-87-102, 27-87-301, 27-87-302, 27-87-401.

Case Notes

In General.

A county court is prohibited from allowing any greater sum against the county than is actually due in money. Goyne v. Ashley County, 31 Ark. 552 (1876); Barton v. Swepston, 44 Ark. 437 (1884); Chicot County v. Kruse, 47 Ark. 80, 14 S.W. 469 (1885).

Applicability.

This section applies to bridge contracts. Watkins v. Stough, 103 Ark. 468, 147 S.W. 443 (1912).

This section does not apply to sale of account due a county. Allen v. Barnett, 186 Ark. 494, 54 S.W.2d 399 (1932).

Penalty.

An indictment of a county judge under this section is defective if it fails to allege that the neglect was willful. Casey v. State, 53 Ark. 334, 14 S.W. 90 (1890).

If a county judge is liable to indictment for failure to require a sheriff to make a quarterly settlement of the fees and emoluments of his office, an indictment of a county judge for failure to make such a settlement is defective in failing to allege that the sheriff did not make the settlement. Williams v. State, 93 Ark. 81, 123 S.W. 780 (1909).

A county judge cannot be convicted for a mere negligent performance of his duty in allowance of an account against the county. Bromley v. State, 136 Ark. 270, 206 S.W. 436 (1918).

Cited: Chicot County v. Kruse, 47 Ark. 80, 14 S.W. 469 (1885).

14-23-107. Enforcing provisions against allowances in excess of revenues.

    1. It shall be the express duty of the prosecuting attorney in each respective judicial district in this state to enforce, without requiring affidavits of information, the terms and conditions of Arkansas Constitution, Amendment 10, wherein it is provided, among other things, that no county judge, county clerk, or other county officer shall sign or issue any scrip or warrant, or make any allowance for any purpose whatsoever, or authorize the issuance of any contracts or other scrip or other evidence of indebtedness in excess of the revenue received from all sources.
    2. Included within the terms and conditions of Arkansas Constitution, Amendment 10, are county turnback funds of every kind and character for any current fiscal year.
    1. If any prosecuting attorney or deputy prosecuting attorney in any judicial district of this state fails to enforce the provisions of Arkansas Constitution, Amendment 10, and the application of its terms and conditions to all turnback funds flowing to any county of the state, he or she shall be liable to impeachment in office.
    2. In order that the prosecuting attorney and deputy prosecuting attorney can carry out their duties as prescribed in this section, the county treasurer of each county shall provide upon request to the prosecuting attorney or deputy prosecuting attorney of the judicial district in which the county is located a copy of the financial report which the county treasurer is required by § 14-20-105 to file with the quorum court of the county.

History. Acts 1937, No. 193, §§ 1, 2; Pope's Dig., §§ 2558, 2559; Acts 1939, No. 299, §§ 2-4; A.S.A. 1947, §§ 17-711, 17-712, 17-712n; Acts 1987, No. 724, § 2; 1995, No. 232, § 5.

Cross References. Contracts in excess of appropriations prohibited, § 14-20-106.

Impeachment proceedings, § 21-12-201 et seq.

Case Notes

Constitutionality.

This section was constitutionally enacted. Carpenter v. McLeod, 202 Ark. 359, 150 S.W.2d 607 (1941).

This section is in conflict with Ark. Const. Amend. 20 as in effect, the state borrows money and pledges its revenues. Carpenter v. McLeod, 202 Ark. 359, 150 S.W.2d 607 (1941).

In General.

This section is not one where a law was revised, amended, or the provisions thereof extended or conferred by reference to its title only. Taylor v. J.A. Riggs Tractor Co., 197 Ark. 383, 122 S.W.2d 608 (1938).

Purpose.

This section is intended to prevent expenditures in excess of county revenues for fiscal year in which contract is made from county turnback fund. Taylor v. J.A. Riggs Tractor Co., 197 Ark. 383, 122 S.W.2d 608 (1938).

Prosecuting Attorney.

It is the express duty of a prosecuting attorney to enforce the terms of Ark. Const. Amend. 10, dealing with the prohibition against a county judge authorizing any contract in excess of the revenues. Goodwin v. State, 235 Ark. 457, 360 S.W.2d 490 (1962).

Turnback Funds.

Subsection (a), being purely descriptive, has no legislative force or effect and can place no limitation upon the expenditure of a turnback fund. Taylor v. J.A. Riggs Tractor Co., 197 Ark. 383, 122 S.W.2d 608 (1938).

Although the effect of this section was to give to a turnback fund all the attributes of a county fund, a turnback fund, not being one within the orbit of Ark. Const. Amend. 10, may be dealt with by the state through legislative action. Carpenter v. McLeod, 202 Ark. 359, 150 S.W.2d 607 (1941).

14-23-108. Unauthorized or constructive fees prohibited.

  1. The county courts of the counties in this state are prohibited from auditing an officer and from allowing to any officer any fee or allowance not specifically allowed the officer by law, and in no case shall constructive fees be allowed to or paid officers by any county of this state.
  2. Any person violating any of the provisions of this section or § 14-23-102, or corruptly charging or receiving from any county a greater sum than that allowed by law, shall be deemed guilty of a misdemeanor and, upon conviction, shall be punished by a fine not to exceed five hundred dollars ($500), with the conviction working a forfeiture of the office.

History. Acts 1873, No. 114, §§ 1, 9, p. 277; C. & M. Dig., §§ 2034, 2811; Pope's Dig., §§ 2585, 3529; A.S.A. 1947, §§ 17-708, 17-709.

Cross References. Penalty for illegal fees, § 21-6-103.

Case Notes

In General.

A court cannot allow fees except on statutory authority. Honey v. Greene County, 102 Ark. 106, 143 S.W. 592 (1912).

Traveling expenses and expenses incurred in the purchase of postage stamps could not be charged against the county, and an act placing the officers of a county on salary did not enlarge or vary this section. Columbia County v. Rowe, 111 Ark. 141, 163 S.W. 519 (1914).

Attorneys.

A person acting as deputy prosecuting attorney under authority of the prosecuting attorney, but not appointed in writing, without the appointment being approved by the circuit court, such a person is a de facto officer only, not one de jure, and is not entitled to collect the fees and emoluments of the office. Williford v. Eason, 110 Ark. 303, 161 S.W. 498 (1913).

County was not liable for fees for special attorney employed by county judge to defend proceedings brought to restrain building of county courthouse. Oglesby v. Ft. Smith Dist., 119 Ark. 567, 179 S.W. 178 (1915).

Clerks.

County clerk was not entitled to fee of 10 cents for each warrant presented by treasurer for allowance. Johnson County v. Bunch, 63 Ark. 315, 38 S.W. 518 (1896).

County was not liable to county clerk for his fee for filing accounts of claimant against county. Prairie County v. Vaughan, 64 Ark. 203, 41 S.W. 420 (1897).

County clerk was entitled to fee of 10 cents for entering each order of allowance and 10 cents for each warrant issued on allowance; however, the clerk was not entitled to be paid for warrants ordered but not issued. St. Francis County v. Folbre, 66 Ark. 91, 48 S.W. 1070 (1899).

County was liable to claimant for costs, including county clerk's fee for filing claim. Jefferson County v. Philpot, 66 Ark. 243, 50 S.W. 453 (1899).

Allowance of a warrant was not a settlement entitling a county clerk to a fee of 10 cents for making settlement of each account with the county. Duncan v. Scott County, 70 Ark. 607, 70 S.W. 314 (1902).

County was not liable for county clerk's fee for filing county warrants for allowance and reissuance. Duncan v. Scott County, 70 Ark. 607, 70 S.W. 314 (1902).

Sheriffs.

Sheriff was entitled to fees for keeping county prisoners. Cain v. Woodruff County, 89 Ark. 456, 117 S.W. 768 (1909).

Right of a sheriff to charge fees is derived from and dependent upon statute, and he is not entitled to any compensation except as is given to him by law. Miller County v. Magee, 177 Ark. 752, 7 S.W.2d 973 (1928).

Treasurers.

County treasurer who succeeded himself was entitled to commissions on funds carried over from one term to another, except as to school funds. Shaver v. Sharp County, 62 Ark. 76, 34 S.W. 261 (1896).

Where county treasurer collected a fee to which he was not entitled and which constituted a fraud in law, after the expiration of two years and the matter had passed beyond the control of the county court, equity had jurisdiction to relieve against the fraud. Fuller v. State, 112 Ark. 91, 164 S.W. 770 (1914).

Cited: Johnson County v. Bost, 139 Ark. 35, 213 S.W. 388 (1919).

14-23-109. Time limit on payment of allowed claims.

    1. Whenever any claim of any person for services rendered any county in this state or material furnished shall have been adjusted and allowed by the county court and ordered paid, it shall be the duty of the person for whom the allowance shall have been made to call on the county clerk of the county in which the allowance is made within three (3) years from the date of the allowance and procure a warrant on the treasurer of the county in which the allowance shall have been made.
    2. All allowances shall be barred if not demanded within three (3) years from the date of their allowance.
    3. All warrants issued by any county clerk and remaining unclaimed in his or her possession shall be cancelled by the county court whenever the allowances on which they are based shall be barred under this section.
  1. At the expiration of three (3) years from the date of the allowances, if the claimant has not demanded his or her warrant from the clerk, it shall be the duty of the clerk to enter a marginal note on the county court record to the effect that the claim is barred by limitation, and it shall be unlawful for any clerk to issue any warrant based upon the claim thereafter, and the claimants shall not thereafter be allowed anything for that particular service or material furnished, by revival or otherwise.

History. Acts 1895, No. 135, §§ 1, 2, p. 198; C. & M. Dig., §§ 2003, 2004; Pope's Dig., §§ 2549, 2550; A.S.A. 1947, §§ 17-713, 17-714.

Cross References. Issuance of warrant on claim, § 14-24-101.

Subchapter 2 — Presentment to County Court

Effective Dates. Acts 1961, No. 139, § 10: Feb. 22, 1961. Emergency clause provided: “It is hereby found and determined by the General Assembly that the laws of this State pertaining to the method of filing and approving claims against counties are totally inadequate and that in order to provide for the proper expenditure of county funds, the immediate passage of this Act is necessary. Therefore, an emergency is hereby declared to exist, and this Act, being immediately necessary for the preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

14-23-201. Applicability.

The provisions of this subchapter shall not be applicable to any county in this state having a county comptroller established pursuant to legislative act.

History. Acts 1961, No. 139, § 6; A.S.A. 1947, § 17-720.

14-23-202. Penalty.

Any person violating the provisions of this subchapter shall be guilty of a misdemeanor. In addition, any county official violating this subchapter shall be guilty of malfeasance in office and, upon conviction, shall be removed from office.

History. Acts 1961, No. 139, § 8; A.S.A. 1947, § 17-722.

14-23-203. Claims filed with county clerk.

  1. Any person, firm, partnership, corporation, or association having a claim against any county of this state for commodities, services, labor, goods and supplies, except sundry supplies used in the administration of the county offices, and materials, equipment, machinery, or any other item of tangible personal property payable from any county fund shall present a claim for payment to the county clerk of the county in the manner and form as is required by law.
  2. The clerk shall keep and maintain journals in which the claims and transfers shall be recorded, as provided in § 14-23-204, to include a county court claims journal for each fund in which all claims payable from the appropriate fund shall be recorded.

History. Acts 1961, No. 139, § 1; A.S.A. 1947, § 17-715; Acts 2011, No. 614, § 6.

Amendments. The 2011 amendment, in (a), inserted “commodities, services, labor” and substituted “any county fund” for “the county general fund or the county road fund”; deleted former (b)(2); in (b), substituted “journals” for “two (2) dockets,” inserted “and transfers,” substituted “to include a” for “as follows: A,” and “journal’ for each fund” for “docket,” deleted “shall be recorded” following “which,” and substituted “appropriate fund shall be recorded” for “county general fund; and.”

14-23-204. Information recorded on dockets.

The journals required under § 14-23-203 shall include the following information with respect to each claim filed:

  1. The claim number, to be listed consecutively;
  2. The date the claim is filed;
  3. The name and address of the person or firm presenting the claim;
  4. The amount of the claim;
  5. The date presented to the county court;
  6. The action of the county court regarding the claim and the date thereof; and
  7. The warrant or check number, and the date of issuance thereof, for payment of the claim, if any.

History. Acts 1961, No. 139, § 2; A.S.A. 1947, § 17-716; Acts 2011, No. 614, § 6.

A.C.R.C. Notes. The 2011 amendment omitted “to be listed consecutively” in subdivision (1) without striking through the language to indicate its repeal.

Amendments. The 2011 amendment, in the introductory paragraph, substituted “journals” for “dockets” and deleted “columns for recording” following “include”; and inserted “or check” in (7).

14-23-205. Recording in proper journal.

    1. Upon receipt of any claim against the county, the county clerk shall examine the claim and determine the appropriate fund from which it would be payable and if the claim is supported by an appropriation.
    2. The clerk shall record the claim in the appropriate journal as provided under § 14-23-203.
  1. All claims shall be recorded on the date of receipt, and at the time of recording them the clerk shall stamp or write on the statement or bill representing the claim the date of receipt and the number of the claim.

History. Acts 1961, No. 139, § 3; A.S.A. 1947, § 17-717; Acts 2011, No. 614, § 6.

Amendments. The 2011 amendment substituted “the appropriate fund from which it would be payable and if the claim is supported by an appropriation” for “whether, if allowed, it would be payable from the county general fund or county road fund” in (a)(1); in (a)(2), substituted “The clerk” for “Upon making this determination, he” and “journal” for “docket”; and deleted (b)(2).

14-23-206. Approval or disapproval by county court.

    1. The county clerk shall not present a claim later than fifteen (15) days, holidays excepted, from the date on which the claim is received and recorded. Within thirty (30) days from the date on which the claim is presented to the court, the court shall enter an order approving or disapproving the claim.
    2. The action of the court and the date thereof shall be entered in the appropriate journal in which the claim is recorded.
  1. The court shall consider each claim covered by this subchapter in the order in which it appears in the journal being considered. The county court shall not proceed to consider any claim bearing a subsequent number in the journal until an order of approval or disapproval of all preceding numbered claims has been entered.
  2. Any person aggrieved by the order of the court concerning any claim may appeal from the order in the manner provided by law for appeals from orders of the county court.

History. Acts 1961, No. 139, § 4; A.S.A. 1947, § 17-718; Acts 2011, No. 614, § 6.

Amendments. The 2011 amendment substituted “The county clerk shall not present a claim later than fifteen (15) days, holidays excepted, from the date on which the claim is received and recorded” for “No later than fifteen (15) days, holidays excepted, from the date on which any claim is received and recorded, the county clerk shall present it to the county court” in (a)(1); substituted “journal” for “docket” in (a)(2) and twice in (b); and inserted “county” in (c).

14-23-207. Payment of claims generally.

  1. All warrants or checks issued by the county clerk of any county in this state on order of the county court for the payment of any claim in any journal provided under § 14-23-203 shall be issued in the order in which the claim appears in the appropriate journal.
  2. The clerk shall be liable on his or her official bond for any loss suffered by any person due to any violation of the provisions of this subchapter by the clerk.

History. Acts 1961, No. 139, § 5; A.S.A. 1947, § 17-719; Acts 2011, No. 614, § 6.

Amendments. The 2011 amendment, in (a), inserted “or checks” and substituted “in any journal” for “on either of the dockets” and “journal” for “docket”; and inserted “or her” following “his” in (b).

14-23-208. Payment of rent on equipment and machinery.

  1. It shall be unlawful for the county court to approve any claim for the payment of rent on equipment and machinery used by the county, and it shall be unlawful for the county clerk to issue any warrant for the payment of any such claim which may have been allowed by the court, unless a written contract providing for the payment of the rent shall have been first approved by order of the court. This copy shall be delivered by the county judge to the clerk, who shall record it in the minutes of the court in the office of the clerk, to be kept with the appropriate docket provided for by § 14-23-203.
  2. The provisions of this section shall apply to all rentals of equipment and machinery by the county whether they shall be for temporary use only, or whether they shall be in the form of a rental-purchase or lease-purchase agreement or contract whereby the county rents or leases such equipment or machinery and under the terms of which agreement the county has the option to buy the equipment or machinery and to apply the rental payments on the purchase price.

History. Acts 1961, No. 139, § 7; A.S.A. 1947, § 17-721.

Chapter 24 County Warrants

Research References

C.J.S. 20 C.J.S., Counties, § 248 et seq.

Subchapter 1 — General Provisions

Cross References. Cancellation of warrant when claim barred, § 14-23-109.

Effective Dates. Acts 1846, p. 62, § 6: effective on passage.

Acts 1853, p. 81, § 2: effective on passage.

Acts 1857, p. 50, § 4: effective on passage.

Acts 1875, No. 57, § 3: effective on passage.

Acts 1875, No. 80, § 5: effective on passage.

Acts 1969, No. 306, § 5: Mar. 21, 1969. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that many warrants issued by the County Treasurer of the various counties in this State are not redeemed by the payee of such warrants; that under these circumstances the County Treasurer is not able to close his books to determine the actual liabilities of the County; and that only by placing a limitation upon the period for which such warrants may be redeemed can this situation be remedied; therefore, an emergency is declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after the date of its passage and approval.”

Acts 1987, No. 269, § 3: July 1, 1987. Emergency clause provided: “It is hereby found and determined by the General Assembly that under present law, county warrants are redeemable at any time within three (3) years from the date of issuance; that this extended period for redeemed county warrants places a severe hardship on the various counties; that it is essential to the efficient and effective operation of county government that warrants and checks issued by the county be redeemed within one (1) year from the date of issuance and that this Act is designed to limit the period within which such warrants and checks may be redeemed and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation of the public peace, health, and safety shall be in full force and effect on and after July 1, 1987.”

14-24-101. Issuance of warrant — Payment.

  1. Whenever any allowance has been approved by any county court, in accordance with §§ 14-23-104 and 14-23-105, when requested by the person in whose favor allowance has been approved or any person authorized to receive it, the county clerk shall issue a warrant or check on the treasurer of the county for the amount of the allowance. The treasurer shall pay it out of cash available in the fund on which the warrant or check is drawn.
    1. If money is not available in the fund on which the warrant or check is drawn, the treasurer, in accordance with § 14-15-805, shall refuse payment of the warrant or check until such time as the funds are available.
    2. In counties using the “batch-redeem” warrant system, the county clerk shall ascertain from the county treasurer's records that cash is available in the fund on which the warrant or check is to be drawn before the warrant or check is issued.

History. Acts 1873, No. 31, § 13, p. 53; A.S.A. 1947, § 17-801; Acts 1995, No. 232, § 6; 2011, No. 614, § 7.

Amendments. The 2011 amendment substituted “approved” for “made” twice in (a),

Case Notes

Allowance.

An order of allowance by a county court may be reviewed or opened: (1) By appeal to the circuit court; (2) By certiorari, where it appears upon the fact of the record that the claim allowed was not, by law, a charge against the county and the court had no authority or discretion to allow it upon any evidence that could be advanced; (3) The county court is authorized to call in its warrants for review, etc. and can then reject any warrants founded upon claims illegally or fraudulently allowed; (4) In chancery for fraud, accident, or mistake. State ex rel. Izard County v. Hinkle, 37 Ark. 532 (1881).

An order of allowance is in the nature of a judgment and cannot be impeached collaterally by proof that the debt had been paid before the order was made. Cope v. Collins, 37 Ark. 649 (1881).

The allowance or rejection of a claim by a county court is in the nature of a judgment, and after the lapse of the term, the court loses all control over it and the same matter cannot be litigated again between the same parties except upon review in a higher court. Lincoln County v. Simmons, 39 Ark. 485 (1882); Howard v. State, 72 Ark. 586, 82 S.W. 196 (1904).

Warrants.

Warrants issued by county clerk without an order of the county court directing their issue are void and cannot be made the foundation of a claim against the county. Parsel v. Barnes & Bro., 25 Ark. 261 (1868) (decision under prior law).

Warrants issued by pretended county court not sitting at authorized place are void. Williams v. Reutzel, 60 Ark. 155, 29 S.W. 374 (1895).

Delivery of warrant to wrong person does not pass title. Shelton v. Landers, 167 Ark. 638, 270 S.W. 522 (1925).

Cited: Jones v. Capers, 231 Ark. 870, 333 S.W.2d 242 (1960).

14-24-102. Form of warrant.

A county warrant shall be in the following form: “No Treasurer of the County of pay to , or order dollars, out of any money in the treasury appropriated for county expenditures (or express the particular fund out of which the warrant is to be paid). Given at , this day of , 20 $ A.B., Clerk.”

Click to view form.

History. Rev. Stat., ch. 41, § 28; C. & M. Dig., § 1999; Pope's Dig., § 2545; Acts 1957, No. 162, § 2; A.S.A. 1947, § 17-802.

Cross References. Warrant made payable to person in whose favor allowance was made or bearer, § 14-20-114.

Warrants to specify fund or appropriation on which drawn, § 14-20-114.

Case Notes

Irregular Form.

County warrants not strictly following this section, but containing all of its essential requirements, are invalid only to the extent that they contain provisions not authorized by statute. Franklin County v. Harriman Nat'l Bank, 19 F.2d 182 (8th Cir. 1927), cert. denied, 275 U.S. 542, 48 S. Ct. 37, 72 L. Ed. 416 (1927).

14-24-103. Signing — Numbering.

County warrants shall be signed by the clerk of the county court and shall be numbered progressively throughout the year, commencing on January 1 in each year.

History. Rev. Stat., ch. 41, § 29; C. & M. Dig., § 2000; Pope's Dig., § 2546; A.S.A. 1947, § 17-803.

14-24-104. Clerk's register of warrants.

  1. Each clerk of the county court shall keep a register of all warrants issued, in which he or she shall set forth the numbers, date, name of person in whose favor drawn, on what account, and the amount thereof.
  2. The register may be in the following form:

NO. DATE IN WHOSE FAVOR DRAWN ON WHAT ACCOUNT AMOUNT Dols. / Cts.

Click to view table.

History. Rev. Stat., ch. 41, § 30; C. & M. Dig., § 2001; Pope's Dig., § 2547; A.S.A. 1947, § 17-804.

14-24-105. Cancellation of scrip.

It shall be the duty of the county court of each county, on application of any person holding scrip against the county, to cancel the scrip and cause warrants to be issued therefor in accordance with the provisions of this subchapter.

History. Rev. Stat., ch. 41, § 40; C. & M. Dig., § 2006; Pope's Dig., § 2552; A.S.A. 1947, § 17-806.

14-24-106. Loss of certificates.

When any person shall produce proof, to the satisfaction of the county court, that he or she has lost any one (1) or more county certificates or scrip of any certain amount owned by him or her and that it has not been paid over on settlement with the county treasury, it shall be the duty of the county court to order other certificates to be issued to the owner.

History. Acts 1836, § 2, p. 94; C. & M. Dig., § 2005; Pope's Dig., § 2551; A.S.A. 1947, § 17-807.

Case Notes

Reissuance.

County court may issue new scrip for that which has been lost or burned. Craig v. Chicot County, 40 Ark. 233 (1882).

The owner of a lost warrant may apply through an agent for reissue. Twerell v. Ashley County, 137 Ark. 200, 208 S.W. 585 (1919).

Setoff.

In the settlement of accounts of collectors of public revenue, attempts to enforce their claims for scrip alleged to be burned by way of setoff ought not to be encouraged in the absence of statutory authority. Craig v. Chicot County, 40 Ark. 233 (1882).

14-24-107. Fraudulent or wrongfully issued warrants.

  1. If, upon adjudication of any warrant by the county court, the warrant shall be found to have been fraudulently or wrongfully issued, without due authority from the court, the court shall endorse that fact thereon and cause it to be deposited, without renewal, in the office of the clerk of the court.
  2. Any clerk who shall fraudulently or wrongfully, without authority of law, issue any such warrant shall be deemed guilty of a felony and, upon conviction, shall be imprisoned in the penitentiary for not less than one (1) year and not more than three (3) years.

History. Acts 1846, § 4, p. 62; 1875, No. 57, §§ 1, 2, p. 147; C. & M. Dig., § 2009; Pope's Dig., § 2555; A.S.A. 1947, § 17-808.

Case Notes

Construction.

Words “any such warrants” refer to words “fraudulently or wrongfully, without authority of law, issue ” and not to the words “shall endorse such fact thereon and cause it to be deposited.” Porter v. State, 188 Ark. 6, 64 S.W.2d 336 (1933).

Appeals.

An order of the county court rejecting and cancelling warrants as fraudulent or for any other purpose is a judgment from which the holder of such warrants adversely affected has a right to appeal. Covington v. Johnson County, 172 Ark. 442, 289 S.W. 326 (1926).

14-24-108. Order of payment.

All county scrip, and every warrant issued in cancellation of any county scrip in any county of this state, according to the provisions of § 14-24-105, shall be redeemed and paid by the county treasurer in the order of their number and date. No scrip or warrants shall be thus discharged in preference to any of older dates, or until all of a prior date are paid, if the county treasurer upon whom the scrip and warrants are drawn shall not be able to meet all demands against him or her.

History. Acts 1846, § 2, p. 62; C. & M. Dig., § 2007; Pope's Dig., § 2553; A.S.A. 1947, § 17-809.

Case Notes

Applicability.

This section applies to all county warrants and is not limited to warrants issued in cancellation of county scrip. Stanfield v. Kincannon, 185 Ark. 120, 46 S.W.2d 22 (1932).

Warrants drawn on county fund are redeemable in order of their number and date. Stanfield v. Kincannon, 185 Ark. 120, 46 S.W.2d 22 (1932); Stanfield v. Friddle, 185 Ark. 873, 50 S.W.2d 237 (1932).

Payment.

Statute of limitations could be pleaded to petition for mandamus to compel county treasurer to pay county warrant delivered more than five years, notwithstanding it had county seal affixed to it. Crudup v. Ramsey, 54 Ark. 168, 15 S.W. 458 (1891) (decision prior to enactment of § 14-24-120).

When there is an invalid judgment against county on valid warrants, invalidity of judgment is not ground for restraining county treasurer from paying funds raised therefor. Bush v. Wolf, 55 Ark. 124, 17 S.W. 709 (1891).

14-24-109. Receipt for public payments.

All county scrip and warrants drawn on the county treasury in any county in this state shall be received, irrespective of their number and date, in payment of all taxes, duties, fines, penalties, and forfeitures accruing to the county.

History. Acts 1846, § 3, p. 62; C. & M. Dig., § 2008; Pope's Dig., § 2554; A.S.A. 1947, § 17-810.

Cross References. County taxes may be paid in county warrants, §§ 26-35-502, 26-35-504.

Research References

Ark. L. Rev.

Case Note, Lost in Translation: Combs v. City of Springdale, An Overview of the Ins and Outs of Appeals Procedure for Administrative Decisions by Local Governments, 61 Ark. L. Rev. 351.

Case Notes

Constitutionality.

This section was held not to contravene provisions of the United States Constitution declaring that nothing but gold and silver shall be made legal tender. State ex rel. Chicot County v. Rives, 12 Ark. 721 (1852).

Fees.

Warrants were held not receivable in payment of clerk's fees. Powell v. Durden, 61 Ark. 21, 31 S.W. 740 (1895).

Taxes.

A county cannot refuse to receive its warrants for taxes, regardless of date of issue. Daniel v. Askew, 36 Ark. 487 (1880); Vale v. Buchanan, 98 Ark. 299, 135 S.W. 848 (1911) (decisions prior to enactment of § 14-24-120).

A tax to build a new courthouse may be paid in county warrants drawn upon funds appropriated for ordinary county purposes. Stillwell v. Jackson, 77 Ark. 250, 93 S.W. 71 (1905).

Valid county warrants may be received in payment of taxes due to the county even though they are prior warrants not paid or provided for. Stanfield v. Friddle, 185 Ark. 873, 50 S.W.2d 237 (1932).

On redemption of land sold to state for taxes, treasurer is required to accept county warrants for portion of taxes owing to the county. Bradford v. Burrow, 188 Ark. 380, 65 S.W.2d 554 (1933).

14-24-110, 14-24-111. [Repealed.]

Publisher's Notes. These sections, concerning treasurer's register of warrants and the filing of redeemed warrants, were repealed by Acts 1993, No. 1279, § 1. The sections were derived from the following sources:

14-24-110. Rev. Stat., ch. 41, §§ 31, 32; C. & M. Dig., §§ 1922, 1923; Pope's Dig., §§ 2438, 2439; A.S.A. 1947, §§ 17-811, 17-812.

14-24-111. Rev. Stat., ch. 41, § 34; C. & M. Dig., § 1924; Pope's Dig., § 2440; A.S.A. 1947, § 17-813.

14-24-112. Record of redeemed warrants.

It shall be the duty of the county clerk of each county in the State of Arkansas to enter in a book, to be provided by him or her for that purpose, the amount, number, and date of all redeemed scrip or warrants that may have been cancelled, so as to show at all times the full amount of the indebtedness of the county.

History. Acts 1853, § 1, p. 81; C. & M. Dig., § 2010; Pope's Dig., § 2556; A.S.A. 1947, § 17-814.

14-24-113. [Repealed.]

Publisher's Notes. This section, concerning preservation and destruction of warrants, was repealed by Acts 1993, No. 1279, § 1. The section was derived from Acts 1931, No. 41, § 11; Pope's Dig., §§ 1728, 2520; Acts 1979, No. 279, § 1; A.S.A. 1947, § 17-815.

14-24-114. Calling in outstanding scrip.

Whenever the county court of any county in this state may deem it expedient to call in the outstanding scrip of the county in order to redeem, cancel, reissue, or classify the scrip under existing laws, or for any other lawful purpose, it shall be the duty of the court to make an order for that purpose, fixing the time for the presentation of the scrip, which shall be at least three (3) months from the date of the order.

History. Acts 1857, § 1, p. 50; C. & M. Dig., § 1994; Pope's Dig., § 2540; A.S.A. 1947, § 17-816.

Case Notes

In General.

A federal court was not deprived of jurisdiction by the fact that, prior to a nonresident's action on county warrants, the nonresident, as required by a calling in order, had filed the warrants with the county court and that court had made no further order respecting the warrants. Desha County v. Crocker First Nat'l Bank, 72 F.2d 359 (8th Cir. 1934).

If county judge, disregarding his duty to pay indispensable obligations before permissive ones, allows contractual obligations within the revenue for the year, warrant issued in payment of contractual claims remains valid even after issuance of a warrant in payment of indispensable claim when county's total revenue had been expended, validity of any warrant being dependent upon the state of the county's revenues at the time of its allowance. Miller County v. Blocker, 192 Ark. 101, 90 S.W.2d 218 (1936).

Applicability.

This section applies to county road warrants. A.L. Greenberg Iron Co. v. Wood, 153 Ark. 371, 240 S.W. 1074 (1922).

County warrants issued by county court and payable out of road fund apportioned to a certain road district are within the contemplation of this section and are barred unless presented within the designated time. Wilkes v. Bank of Augusta & Trust Co., 163 Ark. 455, 260 S.W. 398 (1924).

Warrants drawn on highway turnback funds are county warrants within the meaning of this section. United States San. Specialty Corp. v. Pike County, 195 Ark. 724, 113 S.W.2d 1090 (1938).

Cancellation.

A warrant payable out of highway fund for sanitary supplies sold to county, being illegal on its face, was held subject to cancellation. United States San. Specialty Corp. v. Pike County, 195 Ark. 724, 113 S.W.2d 1090 (1938).

Exchange of Warrants.

A contract between a county judge and the holders of certain county warrants, each for a large amount, providing for the exchange of the warrants for warrants of smaller amounts payable over a longer period of years was not prohibited by Ark. Const. Amend. 10. Alphin v. Tatum, 189 Ark. 862, 75 S.W.2d 377 (1934).

Other Lawful Purposes.

The ascertainment of the actual financial condition of a county is a sufficient legal purpose to call in outstanding scrip of the county. Cole v. Schoonover, 117 Ark. 254, 174 S.W. 539 (1915).

Reissuance.

The county court, when examining scrip under a calling in order, may refuse to reissue when it is shown that the original judgment of allowance was void. Adams v. Van Buren County, 200 Ark. 269, 139 S.W.2d 9 (1940).

Time for Presentation.

An order under this section which gives less than three months from its date to the time appointed for presenting the warrants is invalid, and a scrip holder is not obliged to appeal from it or quash it by certiorari, but may compel the collector by mandamus to receive his scrip for county taxes. Fry v. Reynolds, 33 Ark. 450 (1878); Howell v. Hogins, 37 Ark. 110 (1881).

Cited: Irwin v. Alexander, 184 Ark. 572, 43 S.W.2d 85 (1931).

14-24-115. Notice of redemption, etc.

It shall be the duty of the clerk of the county court to furnish the sheriff of the county with a true copy of the order of the court within ten (10) days after the adjournment of the court. Then it shall be the duty of the sheriff to notify the holders of the county scrip to present the scrip to the court, at the time and place fixed, for redemption, cancellation, reissuance, or classification of it, or for any other purpose whatever specified in the order of the court, by putting up at the courthouse door and at the election precincts in each township of the county, at least thirty (30) days before the time appointed by the order of the court for the presentation of the scrip, a true copy of the order of the court in the premises, and by publishing it in newspapers printed and published in the State of Arkansas for two (2) weeks in succession, the last insertion to be at least thirty (30) days before the time fixed by the court for the presentation of the scrip.

History. Acts 1857, § 2, p. 50; C. & M. Dig., § 1995; Pope's Dig., § 2541; A.S.A. 1947, § 17-817.

Case Notes

In General.

Sheriff's return was held conclusive under this section. Monroe County v. Clark, 134 Ark. 100, 203 S.W. 264 (1918).

Construction.

This section must be strictly complied with. Lusk v. Perkins, 48 Ark. 238, 2 S.W. 847 (1887); Gibney v. Crawford, 51 Ark. 34, 9 S.W. 309 (1888); Crudup v. Richardson, 61 Ark. 259, 32 S.W. 684 (1895); Baker v. York, 65 Ark. 142, 45 S.W. 57 (1898); Miller County v. Gazola, 65 Ark. 353, 46 S.W. 423 (1898).

This section must be strictly complied with; notices must be posted in every voting precinct. Haltom v. Craighead County, 129 Ark. 207, 195 S.W. 354 (1917).

Posting.

That notices were posted as required by this section can only be proved by record, and not by parol. Gibney v. Crawford, 51 Ark. 34, 9 S.W. 309 (1888).

Where sheriff's return fails to show that the notice or the order was posted at the courthouse door, the finding of the court “that proper returns have been made and proper proofs filed” is void because not sustained by the record evidence. Nevada County v. Williams, 72 Ark. 394, 81 S.W. 384 (1904).

An order is not void because sheriff's return shows that the notice was posted at the “entrance” of the courthouse. Yell County v. Wills, 83 Ark. 229, 103 S.W. 618 (1907).

An order is not void because the sheriff's return shows that he posted the notice at each of the election precincts in the townships named in the return without showing that these townships were all the ones in the county. Chicago, R. I. & P. R. Co. v. Perry County, 87 Ark. 406, 112 S.W. 977 (1908).

Presentment.

Fixing Sunday as day for presenting warrants does not affect the validity of the proceedings. Crudup v. Richardson, 61 Ark. 259, 32 S.W. 684 (1895).

Publication.

When an order is published in only one newspaper, scrip will not be barred by the failure of a holder to present it within the time required by the order, though he has actual notice of it; the notice must be given as required by this section, but presentation of the scrip is a waiver of the insufficiency of the notice. Allen v. Bankston, 33 Ark. 740 (1878); Lusk v. Perkins, 48 Ark. 238, 2 S.W. 847 (1887).

An order is invalid where it appears neither in the judgment record nor sheriff's return that one of the newspapers in which notice was given is published in the county. Crudup v. Richardson, 61 Ark. 259, 32 S.W. 684 (1895).

14-24-116. Failure to present scrip.

All persons who shall hold any scrip of the county and neglect or refuse to present it, as required by the order of the county court of the county and the notice as provided in §§ 14-24-114 and 14-24-115, shall thereafter be forever debarred from deriving any benefits from their claims.

History. Acts 1857, § 3, p. 50; C. & M. Dig., § 1996; Pope's Dig., § 2542; A.S.A. 1947, § 17-818.

Case Notes

Constitutionality.

This section is constitutional. Parsel v. Barnes & Bro., 25 Ark. 261 (1868).

In General.

Warrants not presented as required by an order of a county court are forever barred. Parsel v. Barnes & Bro., 25 Ark. 261 (1868).

This section is the law of the contracts as to warrants issued after its passage. Allen v. Bankston, 33 Ark. 740 (1878); Desha County v. Newman, 33 Ark. 788 (1878); Cope v. Collins, 37 Ark. 649 (1881).

One who fails to present his warrants when called for is barred from the collection of the warrants thereafter, without any further order or judgment of the court. Cole v. Schoonover, 117 Ark. 254, 174 S.W. 539 (1915).

14-24-117. Right to call in annually.

Every year the county court of any county in this state may call in the outstanding scrip or warrants of the county for the purposes of cancelling and reissuing them.

History. Acts 1875, No. 80, § 1, p. 189; C. & M. Dig., § 1997; Pope's Dig., § 2543; A.S.A. 1947, § 17-819.

Case Notes

In General.

An order is not void because it fails to recite that no such order had been made by the court within the previous year. Yell County v. Wills, 83 Ark. 229, 103 S.W. 618 (1907); Chicago, R. I. & P. R. Co. v. Perry County, 87 Ark. 406, 112 S.W. 977 (1908).

14-24-118. Duty on presentation.

When the scrip or warrants so called in shall be presented to the county court, it shall be the duty of the court to examine them thoroughly and to reject all such evidences of indebtedness, as in their judgment, their county is not justly and legally bound to pay, subject to appeal to the circuit court.

History. Acts 1875, No. 80, § 3, p. 189; C. & M. Dig., § 1998; Pope's Dig., § 2544; A.S.A. 1947, § 17-820.

Case Notes

In General.

Orders with reference to calling in county warrants must be made by county court, not by county judge, and must be spread upon the record. Covington v. Johnson County, 172 Ark. 442, 289 S.W. 326 (1926).

Appeals.

On appeal to circuit court from an order rejecting warrants presented for reissuance, the court can render only such judgment as the county court could render; it can exercise no equity power, such as directing a reference to a master to state an account between the holder of the warrants and the county; it can only ascertain from the evidence whether the warrants are legal or illegal demands. Pride v. State, 52 Ark. 502, 13 S.W. 135 (1890).

Cancellation.

Warrants not presented are not affected by an order of cancellation unless all the statutory requirements are complied with and the compliance therewith shown in the statutory method. Gibney v. Crawford, 51 Ark. 34, 9 S.W. 309 (1888).

Publication.

When proof of publication fails to show that all of the requirements of the publication were complied with, it is a nullity and cannot be received as evidence of the publication required. Gibney v. Crawford, 51 Ark. 34, 9 S.W. 309 (1888).

A recital of the judgment of a county court that the notice of the order calling in warrants had been given as required by law is conclusive. Newton v. Askew, 53 Ark. 476, 14 S.W. 670 (1890).

Rejection.

It is the duty of the court to refuse to allow a warrant which, after its issuance, was invalidated by order of the circuit court on appeal. Murphy v. Garland County, 99 Ark. 173, 137 S.W. 813 (1911).

Those warrants may be rejected which could not have been valid claims against the county, or where the judgment of allowance was obtained by fraud. Monroe County v. Brown, 118 Ark. 524, 177 S.W. 40 (1915).

An order of rejection must be entered of record. Covington v. Johnson County, 172 Ark. 442, 289 S.W. 326 (1926).

14-24-119. Time scrip must be presented.

  1. Every two (2) years, all scrip outstanding and unredeemed in any county of the state shall be presented for adjudication to the county court of the county, and if found to be genuine and properly issued, warrants shall be issued upon the county treasurer in cancellation thereof.
  2. All persons holding any county scrip in any county in this state who do not present it for inspection to the county court of the county, at the times specified in this section shall be rated with the last class to be paid. However, it shall always be good in the payment of taxes and other dues to the county treasury.

History. Acts 1846, §§ 1, 5, p. 62; A.S.A. 1947, §§ 17-821, 17-822.

14-24-120. Time warrants and checks to be redeemed.

    1. All warrants and checks issued by any county of this state drawn upon the county treasurer shall be valid and redeemable only for a period of one (1) year from the date of issuance.
    2. All warrants and checks issued by a county shall contain on the face of the warrant or check the following words: “This warrant (check) void after one (1) year from date of issuance”.
    1. If any county warrant or check is not redeemed or reissued within the time prescribed in subdivision (a)(1) of this section, there is established a presumption that the payee declined its presentment, and it shall be the duty of the county treasurer to cancel the warrant or check and to credit the fund from which the warrant or check is drawn.
    2. If any county warrant or check is returned and is not deliverable to the payee, the warrant or check shall be considered unclaimed and shall be submitted as unclaimed property to the Auditor of State in accordance with the Uniform Disposition of Unclaimed Property Act, § 18-28-201 et seq.

History. Acts 1969, No. 306, §§ 1, 2; A.S.A. 1947, §§ 17-823, 17-824; Acts 1987, No. 269, § 1; 2001, No. 1261, § 1.

A.C.R.C. Notes. Acts 1987, No. 269, § 1, provided, in part, that warrants and checks issued prior to July 1, 1987, shall be null and void if not redeemed within three years from date of issuance.

Cross References. Time limit on payment of allowed claims, § 14-23-109.

14-24-121. Electronic warrants transfer system.

  1. The quorum court of each county may establish by ordinance an electronic warrants transfer system directly into payees' accounts in financial institutions in payment of any account allowed against the county.
    1. For purposes of this section, counties opting for the electronic warrants transfer system shall establish written policies and procedures to ensure that the electronic warrants transfer system provides for internal accounting controls and documentation for audit and accounting purposes.
    2. The electronic warrants transfer system under subdivision (b)(1) of this section shall comply with the information systems best practices approved by the Legislative Joint Auditing Committee before implementation by the county.
  2. A single electronic warrants transfer may contain payments to multiple payees, appropriations, characters, and funds.

History. Acts 1997, No. 329, § 1; 2009, No. 500, § 2; 2019, No. 138, § 1.

Amendments. The 2009 amendment rewrote (b).

The 2019 amendment substituted “written policies and procedures to ensure that the electronic warrants transfer system” for “their own electronic payment method that” in (b)(1); substituted “warrants transfer system” for “payment method”, and substituted “shall comply with the information systems best practices” for “shall be” in (b)(2).

Subchapter 2 — Payment by Check

14-24-201. Purpose.

It is the intent of this subchapter to allow the counties to change and modernize, to better comply with current business and banking practices, the warrant system as a means of payment of claims against counties, but all other provisions and procedures required by law relative to claims against counties and those relative to the allowance of payment thereof, shall remain as provided by law.

History. Acts 1975, No. 22, § 2; A.S.A. 1947, § 17-826.

14-24-202. Modification of warrant system permitted.

  1. Effective July 9, 1975, any county may modify the warrant system as a means of payment of claims properly presented and allowed against counties of this state to better comply with current business and banking practices.
  2. All claims properly presented and allowed by the respective county courts and school districts of this state, as provided by law, may be ordered paid by check drawn against county funds maintained by the county treasurer in his or her official capacity as custodian of the funds.

History. Acts 1975, No. 22, § 1; A.S.A. 1947, § 17-825.

14-24-203. Court approval of implementation.

  1. In implementing the procedures as set forth in §§ 14-24-204 and 14-24-205, the county treasurer and county clerk must jointly petition the county court for approval of such implementation, and none of the procedures set forth shall be followed without court approval.
  2. Adoption of § 14-24-206 shall require the treasurer and the superintendent of each school district to jointly petition the court for approval, and no such procedures shall be implemented without court approval.

History. Acts 1975, No. 22, § 7; A.S.A. 1947, § 17-831.

14-24-204. Payment generally.

    1. It is the intent of this subchapter that after a claim has been properly presented to a county court with a proper certification and itemization thereof, as provided by law, then upon approval the county clerk may cause a check to be prepared in payment of the claim. This check must be accompanied by an attached certification from the clerk stating that the check is for payment of a valid claim against the county, properly presented and allowed, as provided by law, the check being presented to the county treasurer for his or her signature, the check being in duplicate form, allowing for the following information and distribution:
      1. An original check, after being transmitted to the treasurer for his or her signature, will be delivered to the party presenting the claim to the treasurer; and
        1. A duplicate copy of the check, which will provide the printed certification thereon by the clerk to the treasurer and provide for the original signature of the clerk on the certification, will be maintained by the treasurer.
        2. A duplicate copy of the check may be retained in electronic form rather than paper.
      1. The checks shall be prenumbered and designed in such form that the particular fund affected out of which the check is to be paid is noted thereon.
      2. A county may use computer equipment for check preparation if the use of an automated software program that accomplishes the same purpose as prenumbered checks and other required denotations is in compliance with the Information Systems Best Practices Checklist provided by the Legislative Joint Auditing Committee.
    1. In lieu of the provisions of this section pertaining to the issuance of a check in duplicate form, if a county so chooses, the following provisions may apply:
      1. Once the aforementioned claim procedures have been completed, the treasurer may cause a check to be prepared in payment of claims filed with the county court;
      2. Each claim properly recorded and approved for payment by the county court shall be proper certification from the clerk to the treasurer that a valid claim exists; and
        1. The checks shall be prenumbered and so designed that the particular fund affected out of which the check is to be paid shall be noted thereon.
        2. A county may use computer equipment for check preparation if the use of an automated software program that accomplishes the same purpose as prenumbered checks and other required denotations is in compliance with the Information Systems Best Practices Checklist provided by the Legislative Joint Auditing Committee.
    2. The check drawn in connection with the disbursement of county funds for which the county treasurer is responsible shall:
      1. Bear the manual signature of the county treasurer or his or her authorized deputy; or
        1. Contain or bear a mechanically produced facsimile signature of the county treasurer under § 21-10-101.
        2. The county treasurer may use his or her computer-generated digitized signature when the county treasurer has established adequate internal administrative procedures and controls approved by the Legislative Joint Auditing Committee.

History. Acts 1975, No. 22, § 3; 1981, No. 525, § 1; A.S.A. 1947, § 17-827; Acts 2007, No. 75, § 1; 2009, No. 500, § 1; 2011, No. 614, § 8; 2013, No. 451, §§ 1, 2; 2017, No. 369, § 1.

Amendments. The 2009 amendment in (a) inserted (a)(1)(B)(ii), redesignated the remaining text of (a)(1)(B) accordingly, and deleted “specific appropriation applicable and” following “that the” in (a)(2); and substituted “particular fund affected” for “specific appropriation applicable, particular fund affected, and claim number” in (b)(3).

The 2011 amendment inserted “then upon approval” in (a)(1); and substituted “recorded” for “docketed” in (b)(2).

The 2013 amendment redesignated former (a)(2) as (a)(2)(A), and added (a)(2)(B); and redesignated former (b)(3) as (b)(3)(A), and added (b)(3)(B).

The 2017 amendment redesignated the former introductory language in (b) as present (b)(1); redesignated former (b)(1) and (b)(2) as (b)(1)(A) and (b)(1)(B); redesignated former (b)(3)(A) and (b)(3)(B) as (b)(1)(C)(i) and (b)(1)(C)(ii); and added present (b)(2).

14-24-205. Check disbursement record.

  1. If a county should adopt the payment by check system, the county treasurer shall maintain a check disbursement record which shall be a book or file of the duplicate copies of checks issued by the treasurer, arranged in numerical sequence. This book or file shall provide a detailed check-by-check record of the disbursements from the various funds accounts maintained by the treasurer in a fund account book reflecting receipts and disbursements of the various funds.
  2. In lieu of the provisions of this section pertaining to the requirement of the keeping of duplicate copies of the checks, if a county so chooses, the following provisions shall apply:
    1. The treasurer shall maintain a check disbursement record which shall provide a detailed check-by-check record, in numerical sequence, of the disbursements from the various fund accounts so maintained;
    2. For the purposes of this subsection, “check disbursement record” shall be a book or file similar to the warrant register previously maintained by the treasurer by § 14-24-110 [repealed], or, if the county utilizes computer equipment for check preparation, the computer product or check register showing the payee, specific appropriation, fund affected, check number, and claim number, the latter two (2) elements being in their respective numerical sequence; and
    3. The treasurer shall deliver to the county clerk a duplicate of the computer product or check register, which product shall be utilized for necessary posting to the claims docket.

History. Acts 1975, No. 22, § 4; 1981, No. 525, § 2; A.S.A. 1947, § 17-828.

14-24-206. Claims against school districts.

  1. It is the intent of this subchapter to allow that all claims duly verified and allowed against the school districts of this state may be handled in accordance with the following procedure:
    1. The ex officio financial secretary of the school district may cause a check to be prepared in payment of claims against the district. The check is to be accompanied by an attached certification from the ex officio financial secretary stating that the check is for payment of a valid claim against the school district properly presented and allowed, as provided by law, the check being presented to the county treasurer for his or her signature and the check being in triplicate snap-out form, allowing for the following information and distribution:
      1. Original check, after being transmitted to the county treasurer for his or her signature, will be delivered to the party presenting the claim to the school district;
      2. Duplicate copy of the check, which will provide the printed certification thereon by the ex officio financial secretary to the county treasurer and provide for the original signature of the ex officio financial secretary on the certification, will be maintained by the county treasurer; and
      3. Triplicate copy of the check and attached certification which is a part thereof, will be maintained by the school district, with all supporting documentation for the payment being filed with this copy; and
    2. The checks shall be prenumbered and designed in such form that the specific appropriation applicable and particular fund affected, out of which the check is to be paid, is noted thereon.
  2. A county may elect to adopt procedures as set forth in §§ 14-24-204 and 14-24-205 and not follow this section, leaving the procedures for payment of just claims against school districts as they exist.

History. Acts 1975, No. 22, §§ 5, 6; A.S.A. 1947, §§ 17-829, 17-830.

Chapter 25 County Accounting and Responsible Management Entity

Cross References. Arkansas Governmental Compliance Act, § 10-4-301 et seq.

Subchapter 1 — Arkansas County Accounting Law of 1973

Publisher's Notes. Due to the enactment of subchapter 2 by Acts 2007, No. 844, the existing provisions of this chapter have been designated as subchapter 1.

Effective Dates. Acts 2015, No. 741, § 6: Jan. 1, 2016.

14-25-101. Title.

This subchapter shall be known and cited as the “Arkansas County Accounting Law of 1973”.

History. Acts 1973, No. 173, § 1; A.S.A. 1947, § 17-1801.

14-25-102. Bank accounts.

All county officials of this state who receive public funds by virtue of their office shall maintain all public funds in depositories approved for such purposes by law. The funds shall be maintained in these depositories in the name of the county office, with the official's name appearing secondarily to the name of the county office.

History. Acts 1973, No. 173, § 2; A.S.A. 1947, § 17-1802.

14-25-103. Deposit of funds.

  1. All funds received by a county official by virtue of his or her official position shall be deposited intact to the accounts authorized in § 14-25-102. This section shall apply to all public funds coming into the hands of the official, including, but not limited to, the following: fines, fees, taxes, trust funds, federal funds, etc.
  2. Public funds received by one (1) county official and required by law to be transferred to another county official shall be deposited into the account of the first official receiving the funds, and then a check shall be written upon that account to properly transfer the funds.

History. Acts 1973, No. 173, § 3; A.S.A. 1947, § 17-1803.

14-25-104. Prenumbered checks.

  1. All disbursements of county funds, except as noted in § 14-25-105, which refers to petty cash funds, and § 14-25-112(b)(2), which refers to debit cards issued for the balance of an inmate commissary trust account, are to be made by prenumbered checks drawn upon the bank account of that county official.
  2. The checks shall be of the form normally provided by commercial banking institutions and shall contain as a minimum the following information:
    1. Date of issue;
    2. Check number;
    3. Payee;
    4. Amount both in numerical and written form; and
    5. Signature of authorized disbursing officer of the county office.
  3. The county official shall maintain printers' certificates as to the numerical sequence of checks printed.
  4. The county official shall retain all voided checks for audit purposes.
  5. A county may use computer equipment for check preparation if the use of an automated software program that accomplishes the same purpose as prenumbered checks and other required denotations is in compliance with the Information Systems Best Practices Checklist provided by the Legislative Joint Auditing Committee.

History. Acts 1973, No. 173, § 4; A.S.A. 1947, § 17-1804; Acts 2009, No. 287, § 1; 2013, No. 451, § 3; 2013, No. 1158, § 1.

Amendments. The 2009 amendment added (d).

The 2013 amendment by No. 451 added (e).

The 2013 amendment by No. 1158 inserted “and § 14-25-112(b)(2), which refers to debit cards issued for the balance of an inmate commissary trust account” in (a).

14-25-105. Petty cash funds.

  1. County officials are permitted to establish petty cash funds, so long as the funds are maintained on the basis set forth in this section.
    1. The establishment of a petty cash fund must be approved by the county quorum court.
      1. In establishing a petty cash fund, a check is to be drawn payable to “petty cash”.
      2. That amount may be maintained in the county offices for the handling of small operating expenditures.
    1. A paid-out slip is to be prepared for each item of expenditure from the fund and signed by the person receiving the moneys.
    2. These paid-out slips shall be maintained with the petty cash.
  2. When the fund becomes depleted, the county official may then draw another check payable to “petty cash” in an amount which equals the total paid-out slips issued, and, at that time, the paid-out slips shall be removed from the petty cash fund and utilized as invoice support for the check replenishing petty cash.

History. Acts 1973, No. 173, § 5; A.S.A. 1947, § 17-1805; Acts 2011, No. 614, § 9.

Amendments. The 2011 amendment substituted “a petty cash” for “such a” in (b)(1) and (b)(2)(A); and, in (b)(2)(B), inserted “operating” and deleted “for items such as light bulbs, delivery fees, etc.” at the end.

14-25-106. Fixed asset records.

    1. All county officials shall establish by major category and maintain, as a minimum, an itemized listing of all fixed assets owned by, or under the control of, their offices.
    2. Each county official shall maintain the listing unless the quorum court designates one (1) county official or employee of the county to be responsible for maintaining the list for the county.
    3. Each county official shall total the listing by category with a total of all categories. The categories of fixed assets may include without limitation:
      1. Land;
      2. Buildings;
      3. Motor vehicles; and
      4. Equipment.
    4. The listing shall contain as a minimum:
      1. Property item number, if used by the county;
      2. Brief description;
      3. Serial number, if available;
      4. Location of property;
      5. Date of acquisition; and
      6. Cost of property.
  1. Fixed asset records shall constitute a part of the general records of the county and, accordingly, shall be made available for utilization by the auditor at the time of audit.

History. Acts 1973, No. 173, § 6; A.S.A. 1947, § 17-1806; Acts 2009, No. 287, § 2.

Amendments. The 2009 amendment rewrote (a); and in (b), deleted “and equipment” following “asset,” substituted “county” for “office,” and made a minor stylistic change.

14-25-107. Reconciliation of bank accounts.

  1. All county officials maintaining bank accounts as prescribed in § 14-25-102 shall reconcile, on a monthly basis, the bank balance to the book balance.
  2. The reconciliations shall take the following form:

County of Date Amount Per Bank Statement Dated $ .00 ADD: Deposits in transit (Receipts recorded in Cash Receipts Journal not shown on this bank statement). DATE RECEIPT NO. AMOUNT $ .00 .00 .00 $ .00 DEDUCT: Outstanding Checks (Checks issued and dated prior to date of bank statement per Cash Disbursements Journal not having yet cleared the bank). DATE PAYEE AMOUNT $ .00 .00 .00 .00 RECONCILED BALANCE $ .00 This reconciled balance shall agree to either the cash balance as shown on the official's check stubs running bank balance, or the official's general ledger cash balance, whichever system the official employs.

Click to view form.

History. Acts 1973, No. 173, § 7; A.S.A. 1947, § 17-1807; Acts 2009, No. 287, § 3.

Amendments. The 2009 amendment substituted “the bank balance to the book balance” for “their cash receipts and cash disbursement journal to the amount on deposit in banks” in (a).

14-25-108. Prenumbered receipts.

    1. All items of income, except as noted in subsection (b) of this section, are to be formally receipted by the use of prenumbered receipts or mechanical receipting devices such as cash registers or validating equipment.
    2. In the use of prenumbered receipts the following minimum standards shall be met:
      1. Receipts are to be prenumbered by the printer, and a printer's certificate obtained and retained for audit purposes. The certificate shall state the date printing was done, the numerical sequence of receipts printed, and the name of the printer;
      2. The prenumbered receipts shall contain the following information for each item receipted:
        1. Date;
        2. Amount of receipt;
        3. Name of person or company from whom money was received;
        4. Purpose of payment;
        5. Fund to which receipt is to be credited; and
        6. Signature of employee receiving money;
      3. The original receipt should be given to the party making payment. One (1) duplicate copy of the receipt shall be maintained in numerical order in the receipt book and made available to the auditors during the course of annual audit. Additional copies of the receipt are optional with the county office and may be used for any purposes it deems fit; and
      4. All copies of voided receipts shall be retained for audit purposes.
    3. A county may use an electronic receipting system that accomplishes the same purpose as prenumbered receipts if the system is in compliance with the Information Systems Best Practices Checklist provided by the Legislative Joint Auditing Committee.
  1. This section shall not apply to the county collector's office in regard to the collection of property taxes. However, this section shall apply to the collector's office for receipting of all other moneys.

History. Acts 1973, No. 173, §§ 8, 9; A.S.A. 1947, §§ 17-1808, 17-1809; Acts 2009, No. 287, § 4; 2013, No. 451, § 4.

Amendments. The 2009 amendment inserted (a)(2)(D).

The 2013 amendment rewrote (a)(3).

14-25-109. County clerk.

    1. The county clerk shall maintain all bank accounts and records of accounts as prescribed by law in reference to the duties of his or her office. In addition, the clerk shall maintain separate records and separate bank accounts for fee accounts and for accounts pertaining to the court.
    2. The bank accounts shall be maintained as prescribed in § 14-25-102, and the provisions of §§ 14-25-103, 14-25-104, 14-25-107, and 14-25-108(a) shall apply to the accounts.
    1. Checks written shall be recorded in a cash disbursement journal that indicates the date, payee, check number, and amount of each check written.
    2. The cash disbursement journal shall also contain the classification of the disbursement.
    1. Receipts shall be recorded in a cash receipts journal that indicates:
      1. Date of receipt;
      2. Identification of payor;
      3. Receipt number;
      4. Total amount received; and
      5. Classification of receipts.
    2. If using mechanical receipting devices such as cash registers, the cash receipts journal shall indicate the:
      1. Date of collections;
      2. Tape number, if applicable;
      3. Total amount collected; and
      4. Classification of collections.
    1. The cash disbursement journal and the cash receipts journal shall be totaled monthly and on a year-to-date basis.
    2. The cash disbursement journal shall be reconciled monthly to total bank disbursements as indicated on the monthly bank statements.
    3. The cash receipts journal shall be reconciled monthly to total bank deposits as shown on the monthly bank statement.
    1. For each trust and agency account, the clerk shall establish a record showing the beginning balance, receipts, disbursements, and ending balance.
    2. All transactions affecting trust accounts shall be posted on the appropriate individual trust record, in addition to being posted on the cash disbursement journal, or cash receipts journal as prescribed in this section.
      1. Monthly, the clerk shall reconcile these individual detail trust and agency records to the bank balance of the trust account.
      2. Copies of such reconciliations shall be maintained and made a part of the records of the office.
      1. The county clerk shall establish and maintain, as a minimum, a listing of all bonded debt and short-term obligations of the county as authorized by §§ 14-72-101 and 14-72-102, § 14-72-201 et seq., § 14-72-301 et seq., and the Local Government Short-Term Financing Obligations Act of 2001, § 14-78-101 et seq.
      2. The listing shall contain as a minimum:
        1. A brief description of the obligation;
        2. The date of issuance;
        3. The date of final maturity;
        4. The rate of interest;
        5. The total amount authorized and issued;
        6. The total amount retired to date;
        7. The balance at the beginning of each calendar year;
        8. The amount authorized and issued during each calendar year;
        9. The amount retired during each calendar year; and
        10. The balance at the end of each calendar year.
    1. The bonded debt and short-term obligation records constitute a part of the general records of the county clerk's office and shall be made available for utilization by the auditor at the time of audit.

History. Acts 1973, No. 173, § 10; A.S.A. 1947, § 17-1810; Acts 2009, No. 287, § 5.

Amendments. The 2009 amendment rewrote (b) and (c), inserted (d) and (f), and redesignated the remaining subdivision accordingly; and in (e)(2), substituted “cash disbursement journal” for “check disbursement record,” substituted “cash receipts journal” for “cash receipts record,” and made a minor stylistic change.

Cross References. Investment of money held by circuit, chancery clerks — Disposition of funds, § 16-20-108.

14-25-110, 14-25-111. [Repealed.]

Publisher's Notes. These sections, concerning fee-basis sheriffs and fee-basis collectors, were repealed by Acts 2009, No. 287, § 6. The sections were derived from the following sources:

14-25-110. Acts 1973, No. 173, § 11; A.S.A. 1947, § 17-1811.

14-25-111. Acts 1973, No. 173, § 12; A.S.A. 1947, § 17-1812.

14-25-112. Sheriff.

  1. The sheriff, in addition to following the procedures and requirements of §§ 14-25-101 — 14-25-108, shall establish and maintain a cash receipts journal and a cash disbursements journal for each bank account.
    1. Checks written shall be recorded in a cash disbursements journal that indicates the date, payee, check number, and amount of each check written.
      1. A debit card may be issued to a released inmate rather than a check for the balance in his or her account in order to dispose of the inmate's commissary trust account.
      2. If a debit card is issued rather than a check, proper accounting of the funds must still be maintained in compliance with the written procedures established by the Legislative Joint Auditing Committee.
    2. The cash disbursements journal shall also contain the classification of the disbursement.
    1. Receipts shall be recorded in a cash receipts journal that indicates the:
      1. Date of the receipt;
      2. Identification of payor;
      3. Receipt number;
      4. Total amount received; and
      5. Classification of receipts.
    2. If mechanical receipting devices such as cash registers are used, the cash receipts journal shall indicate the:
      1. Date of collections;
      2. Tape number, if applicable;
      3. Total amount collected; and
      4. Classification of collections.
    1. The cash disbursements journal and the cash receipts journal shall be totaled monthly and on a year-to-date basis.
    2. The cash disbursements journal shall be reconciled monthly to total bank disbursements as indicated on the monthly bank statements.
    3. The cash receipts journal shall be reconciled monthly to total bank deposits as shown on the monthly bank statement.
  2. The sheriff shall be required to maintain such books and records as prescribed by this chapter and shall keep all books and records posted on a current basis, making an entry into the cash receipts journal for all items of cash receipts and an entry into the cash disbursements journal for each disbursement made.
  3. The sheriff shall provide a copy of the reconciled cash disbursements journal and a copy of the reconciled cash receipts journal to the county treasurer by the tenth day of each calendar month for the county sheriff's communications facility and equipment fund or other fund that may not be on the books of the county treasurer.
  4. Arkansas Legislative Audit shall review for substantial compliance with this section.

History. Acts 1973, No. 173, § 13; A.S.A. 1947, § 17-1813; Acts 2009, No. 287, § 7; 2013, No. 1158, § 2; 2015, No. 741, § 2.

Amendments. The 2009 amendment substituted “Sheriff” for “Fee-basis sheriffs” in the section heading; rewrote (a); inserted (b) through (d) and redesignated the remaining subdivision accordingly; and inserted “cash” twice in (e).

The 2013 amendment inserted present (b)(2) and redesignated former (b)(2) as (b)(3).

The 2015 amendment added (f) and (g).

Effective Dates. Acts 2015, No. 741, § 6: Jan. 1, 2016.

14-25-113. Collector.

  1. The collector, in addition to following the procedures and requirements of §§ 14-25-101 — 14-25-108, shall establish and maintain a system of bookkeeping that meets the minimum requirements of a cash receipts journal and a cash disbursements journal for the recording and disbursing of tax collections.
    1. Checks written shall be recorded in a cash disbursements journal that indicates the date, payee, check number, and amount of each check written.
    2. The cash disbursements journal shall also contain the classification of the disbursement.
    1. Receipts shall be recorded in a cash receipts journal that indicates the:
      1. Date of the receipt;
      2. Identification of payor;
      3. Receipt number;
      4. Total amount received; and
      5. Classification of receipts.
    2. If mechanical receipting devices such as cash registers are used, the cash receipts journal shall indicate the:
      1. Date of collections;
      2. Tape number, if applicable;
      3. Total amount collected; and
      4. Classification of collections.
    1. The cash disbursements journal and the cash receipts journal shall be totaled monthly and on a year-to-date basis.
    2. The cash disbursements journal shall be reconciled monthly to total bank disbursements as indicated on the monthly bank statements.
    3. The cash receipts journal shall be reconciled monthly to total bank deposits as shown on the monthly bank statement.
  2. The collector shall be required to maintain such books and records as prescribed by this chapter and shall keep all books and records posted on a current basis, making an entry into the cash receipts journal for all items of cash receipts and an entry into the cash disbursements journal for each disbursement made.

History. Acts 1973, No. 173, § 14; A.S.A. 1947, § 17-1814; Acts 2009, No. 287, § 7.

Amendments. The 2009 amendment rewrote (a); inserted (b) through (d) and redesignated the remaining subdivision accordingly; and inserted “cash” twice in (e).

14-25-114. County treasurer.

    1. The county treasurer shall receive and receipt for all moneys payable to the county treasury and pay and disburse them on warrants or checks drawn by order of the county court.
    2. The treasurer shall keep a true and accurate account of all moneys received and disbursed and a true and accurate record of all warrants or checks paid by him or her.
    3. The treasurer shall maintain and issue prenumbered receipts for all moneys paid into the treasury in accordance with § 14-25-108.
  1. The treasurer shall establish and maintain the following accounting practices, in relation to the operations of the office:
    1. The number and date of checks paying warrants where the county is using a system of paying several warrants presented by the bank shall be identified with the warrants in posting to the treasurer's book or record of accounts;
    2. The check number and its date shall be entered on the warrant, and the warrant number and its date shall be entered on the face of the check and on the check stub, as well as the account represented;
    3. Postings to the treasurer's book or record of accounts of warrants and checks shall be under the transaction date on the instruments, not the date the items are entered in the books or records of accounts;
    4. Banks shall be requested to present all warrants held at the end of the month promptly so that they may be included in the treasurer's book or record of accounts in the month to which they pertain;
    5. All funds in the treasurer's book or record of accounts shall be reconciled with the bank monthly. Reconciliations shall be retained and filed with the bank statements;
    6. Clear reference shall be made in the treasurer's book or record of accounts as to the origins of all moneys. This may be by notation citing the origin, date, receipt number, and other pertinent information;
    7. Transfers shall clearly state the fund to which the moneys are being transferred, and the recipient fund shall state the origin of its receipt;
    8. A brief explanation of the computation of the treasurer's commission to provide a clear and permanent record of how the commission was determined shall be maintained;
    9. Corrections to the treasurer's book or records of accounts shall be entered at the time of discovery and under the date of the entry into the treasurer's records. A notation shall be made at the erroneous balance if it is at a previous date, but under no circumstances shall a previous month's balance be changed when it has been brought forward into the succeeding period;
    10. Receipts shall be prepared for all moneys received, but shall never be used to effect any other type of accounting transaction. Bank deposits shall be intact, prompt, and identified as to type of receipts;
    11. Copies of all receipts shall be retained, including copies of voided receipts;
    12. Printers' certificates shall be obtained and kept for each printing order of formally prenumbered receipts;
    13. All balances on the treasurer's book not belonging to the county and awaiting clearance shall be remitted on or before December 31, or promptly thereafter, as of December 31; and
    14. Municipal fund revenue shall be remitted to the municipality by separate check for each appropriate dedicated municipal fund.

History. Acts 1973, No. 173, § 15; A.S.A. 1947, § 17-1815; Acts 2009, No. 287, § 8; 2011, No. 614, § 10; 2019, No. 132, § 1.

Amendments. The 2009 amendment in (b) inserted “or record of accounts” following “treasurer's book” throughout the subsection, deleted the second sentence in (b)(5), which read: “The reconciliation should, preferably, be from the bank statement to the books, since the book balance is what the treasurer is trying to prove.”, deleted the second sentence in (b)(7), which read: “Explanations on the treasurer's book as the reason for the transfer will be most helpful”, deleted the second sentence in (b)(13), which read: “Generally, these are moneys belonging to agencies of the state.” and made minor stylistic changes.

The 2011 amendment inserted “or checks” in (a)(1) and (a)(2).

The 2019 amendment added (b)(14).

14-25-115. [Repealed.]

Publisher's Notes. This section, concerning exemption of officials, was repealed by Acts 2009, No. 287, § 9. The section was derived from Acts 1973, No. 173, § 16; A.S.A. 1947, § 17-1816.

14-25-116. Circuit clerk.

    1. The circuit clerk shall maintain all bank accounts and records of bank accounts as prescribed by law in reference to the duties of his or her office. In addition, the circuit clerk shall maintain separate records and separate bank accounts for fee accounts and for accounts pertaining to the court.
    2. The bank accounts shall be maintained as prescribed in § 14-25-102, and the provisions of §§ 14-25-103, 14-25-104, 14-25-107, and 14-25-108(a) shall apply to the accounts.
    1. Checks written shall be recorded in a cash disbursement journal that indicates the date, payee, check number, and amount of each check written.
    2. The cash disbursement journal shall also contain the classification of the disbursement.
    1. Receipts shall be recorded in a cash receipts journal that indicates the:
      1. Date of receipt;
      2. Identification of payor;
      3. Receipt number;
      4. Total amount received; and
      5. Classification of receipts.
    2. If using mechanical receipting devices such as cash registers, the cash receipts journal shall indicate the:
      1. Date of collections;
      2. Tape number, if applicable;
      3. Total amount collected; and
      4. Classification of collections.
    1. The cash disbursement journal and the cash receipts journal shall be totaled monthly and on a year-to-date basis.
    2. The cash disbursement journal shall be reconciled monthly to total bank disbursements as indicated on the monthly bank statements.
    3. The cash receipts journal shall be reconciled monthly to total bank deposits as shown on the monthly bank statement.
    1. For each trust and agency account, the clerk shall establish a record showing the beginning balance, receipts, disbursements, and ending balance.
    2. All transactions affecting trust accounts shall be posted on the appropriate individual trust record, in addition to being posted on the cash disbursement journal, or cash receipts journal as prescribed above.
      1. Monthly, the clerk shall reconcile these individual detail trust and agency records to the bank balance of the trust account.
      2. Copies of such reconciliations shall be maintained and made a part of the records of the office.

History. Acts 2009, No. 287, § 10.

14-25-117. County assessor.

    1. The assessor shall maintain a bank account and record of the account for any public funds collected by virtue of his or her office.
    2. The bank account shall be maintained as prescribed in § 14-25-102, and the provisions of §§ 14-25-103, 14-25-104, 14-25-107, and 14-25-108(a) shall apply to the account.
    1. Checks written shall be recorded in a cash disbursement journal that indicates the date, payee, check number, and amount of each check written.
    2. The cash disbursement journal shall also contain the classification of the disbursement.
    1. Receipts shall be recorded in a cash receipts journal that indicates the:
      1. Date of receipt;
      2. Identification of payor;
      3. Receipt number;
      4. Total amount received; and
      5. Classification of receipts.
    2. If using mechanical receipting devices such as cash registers, the cash receipts journal shall indicate the:
      1. Date of collections;
      2. Tape number, if applicable;
      3. Total amount collected; and
      4. Classification of collections.
    1. The cash disbursement journal and the cash receipts journal shall be totaled monthly and on a year-to-date basis.
    2. The cash disbursement journal shall be reconciled monthly to total bank disbursements as indicated on the monthly bank statements.
    3. The cash receipts journal shall be reconciled monthly to total bank deposits as shown on the monthly bank statement.

History. Acts 2009, No. 287, § 11.

14-25-118. County judge.

    1. The county judge shall maintain a bank account and record of the account for any public funds collected by virtue of his or her office.
    2. The bank account shall be maintained as prescribed in § 14-25-102, and the provisions of §§ 14-25-103, 14-25-104, 14-25-107, and 14-25-108(a) shall apply to the account.
    1. Checks written shall be recorded in a cash disbursement journal that indicates the date, payee, check number, and amount of each check written.
    2. The cash disbursement journal shall also contain the classification of the disbursement.
    1. Receipts shall be recorded in a receipts journal that indicates the:
      1. Date of receipt;
      2. Identification of payor;
      3. Receipt number;
      4. Total amount received; and
      5. Classification of receipts.
    2. If using mechanical receipting devices such as cash registers, the receipts journal shall indicate the:
      1. Date of collections;
      2. Tape number, if applicable;
      3. Total amount collected; and
      4. Classification of collections.
    1. The cash disbursement journal and the cash receipts journal shall be totaled monthly and on a year-to-date basis.
    2. The cash disbursement journal shall be reconciled monthly to total bank disbursements as indicated on the monthly bank statements.
    3. The cash receipts journal shall be reconciled monthly to total bank deposits as shown on the monthly bank statement.

History. Acts 2009, No. 287, § 12.

Subchapter 2 — Community Sewer System Management

Effective Dates. Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

14-25-201. Responsible management entities — Wastewater treatment systems.

  1. As used in this section, “responsible management entity” means a wastewater treatment system service provider organized and operating under this section.
  2. A nonprofit corporation formed for the purpose of providing responsible management of wastewater treatment systems where municipal sewer service is not available shall operate in accordance with § 14-250-113 and have the powers set forth in § 14-250-111.
  3. Any of the following may enter into an agreement to become a responsible management entity for the purpose of providing responsible management of wastewater treatment systems, including community sewer systems and groups of septic systems in a contiguous development where municipal sewer service is not available:
    1. A political subdivision of the state;
    2. A district or an authority formed under the Joint County and Municipal Solid Waste Disposal Act, § 14-233-101 et seq., or § 8-6-723;
    3. A nonprofit corporation formed for the purpose of providing responsible management of wastewater treatment systems; or
    4. A rural water association.
    1. Any installation, operation, or maintenance performed on a wastewater treatment system on behalf of a responsible management entity shall be done in compliance with the Arkansas Water and Air Pollution Control Act, § 8-4-101 et seq., and the rules of the Arkansas Pollution Control and Ecology Commission as administered by the Division of Environmental Quality or its successor and the Department of Health or its successor.
    2. A responsible management entity must also ensure that all appropriate operator licenses are current and any continuing education requirements are fulfilled.
    1. A developer constructing a new wastewater treatment system where municipal sewer service is not available may transfer all liabilities for the wastewater treatment system to a responsible management entity if:
      1. Before the construction of a wastewater treatment system begins, the developer secures written approval of the proposed wastewater treatment system from the Department of Health and complies with all applicable permitting requirements, including stormwater, through the Division of Environmental Quality pursuant to the Arkansas Water and Air Pollution Control Act, § 8-4-101 et seq., and the rules of the Arkansas Pollution Control and Ecology Commission;
      2. Covenants are contained in the deed for the wastewater treatment system requiring payment of reasonable fees by the purchaser to the responsible management entity for ongoing operations and maintenance of the system; and
      3. Ownership of the wastewater treatment system is transferred to the responsible management entity upon completion.
    2. Under no circumstances shall the liability for fraud or negligence on the part of the developer be transferred.

History. Acts 2007, No. 844, § 1; 2019, No. 315, §§ 990, 991; 2019, No. 910, §§ 3030, 3031.

Amendments. The 2019 amendment by No. 315 substituted “rules” for “regulations” in (d)(1) and (e)(1)(A).

The 2019 amendment by No. 910 substituted “Division of Environmental Quality” for “Arkansas Department of Environmental Quality” in (d)(1) and (e)(1)(A).

Chapter 26 Workers' Compensation

Publisher's Notes. Acts 1985, No. 886, as amended, is also codified as § 14-60-101 et seq.

Cross References. Volunteer public safety workers, workers' compensation, § 14-28-101 et seq.

Effective Dates. Acts 1985 (1st Ex. Sess.), No. 43, § 2: July 11, 1985. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 866 of 1985 mandated that municipalities and counties provide Worker's Compensation coverage for their employees, with such coverage to be provided through private carriers or through one or more self-funding groups on a statewide basis; that such Act is in need of clarification with respect to the self-funding groups established on a statewide basis to authorize the formation of one or more self-funding groups of municipalities, or counties, or for both municipalities and counties, so long as safeguards are provided whereby any municipality or county shall have a right to participate in such group, if application is made for coverage thereunder; and that the immediate passage of this Act is necessary to make said clarification and to assure competition in the providing of Worker's Compensation coverage for employees of municipalities and counties in this State. Therefore, an emergency is hereby declared to exist and this Act, being immediately necessary for the preservation of the public peace, health, and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1987, No. 206, § 3: Mar. 13, 1987. Emergency clause provided: “Whereas, it is difficult, if not impossible, to buy adequate excess reinsurance in the commercial insurance market without paying an exorbitant price; and, Whereas, this Act will more than adequately insure that Workers' Compensation claims of municipal and county employees will be paid in a timely fashion and will save municipal and county governments thousands of dollars which can be used to provide better municipal and county services. Now, therefore, an emergency is hereby declared to exist and this Act being necessary to protect the public peace, health and safety shall take effect immediately on its passage and approval.”

Acts 1993, No. 901, § 52: Apr. 6, 1993. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that the present laws addressed in this omnibus Act on workers' compensation benefits and insurance licensure and other insurance regulatory issues are inadequate for the protection of the Arkansas public and immediate passage of this Act is necessary in order to provide for the protection of the public. Therefore, an emergency is hereby declared to exist and this omnibus Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Research References

U. Ark. Little Rock L.J.

Legislative Survey, Workers' Compensation, 8 U. Ark. Little Rock L.J. 617.

14-26-101. Requirement generally.

  1. All counties shall be required to provide workers' compensation coverage for their officials, employees, and municipal volunteer fire-fighters.
  2. Coverages shall be provided for losses incurred while performing work for the county.
  3. Individuals convicted of a criminal offense and committed to a county detention facility or state correctional facility who are required to perform work for the county shall not be considered employees of the county.

History. Acts 1985, No. 866, § 1; A.S.A. 1947, § 81-1364; Acts 1993, No. 901, § 2.

Case Notes

Applicability.

A constable is an official of the county and thus covered by workers' compensation. Farnsworth v. White County, 39 Ark. App. 98, 839 S.W.2d 229 (1992), aff'd, 312 Ark. 574, 851 S.W.2d 451 (1993).

Where plaintiff was acting as constable when he sustained a gunshot wound to his abdomen, the county was required to furnish workers' compensation. Farnsworth v. White County, 312 Ark. 574, 851 S.W.2d 451 (1993).

14-26-102. Date of coverage.

  1. This chapter shall be effective July 1, 1985.
    1. Claims incurred prior to July 1, 1985, shall continue to be the responsibility of the state.
    2. Claims incurred on and after July 1, 1985, shall be the responsibility of the counties.

History. Acts 1985, No. 866, § 3; A.S.A. 1947, § 81-1366.

14-26-103. Responsibility for providing coverage.

  1. County quorum courts shall be responsible for providing the workers' compensation coverage required by this chapter.
  2. Each county quorum court is authorized to require reimbursement of its general fund on a pro rata basis from the budgets of its various county departments and agencies for whom the workers' compensation coverage is provided.
  3. Failure of a county to provide the workers' compensation coverage as required in this chapter shall result in the loss of the county's general revenues turn-back from the State of Arkansas for the period for which workers' compensation coverage is not provided.

History. Acts 1985, No. 866, § 4; A.S.A. 1947, § 81-1367.

14-26-104. Coverage through private carrier or self-funding.

  1. Counties may provide workers' compensation coverage either through private carriers or through one (1) or more self-funding groups.
  2. Self-funding groups established for this purpose shall meet the following requirements:
    1. Any self-funding group established to provide coverage to counties only shall offer coverage to any county in the state that applies for coverage;
    2. Any self-funding group established to provide coverage for both municipalities and counties shall offer coverage to any municipality or county in the state desiring to participate;
    3. Any group established to provide workers' compensation coverage to counties or to counties and municipalities shall offer the coverage at rates as established and filed with the Workers' Compensation Commission by the organization establishing the self-funding group, and rates for counties participating in any self-funding group shall be revised annually based on the cost experience of the particular county, group of counties, or group of municipalities and counties;
      1. Any self-funding group of participating municipalities or counties that is governed by a board of trustees of elected municipal or county officials shall be subject to the rules of the Workers' Compensation Commission applicable to self-insured groups or providers.
      2. However, cities and counties shall not be required to enter into an indemnity agreement binding them jointly and severally.
      3. Each board governing a self-funded group shall be permitted to declare dividends or give credits against renewal premiums based on annual loss experience.
      4. All self-funded groups shall obtain excess reinsurance from an admitted or approved insurance company doing business in Arkansas; and
    4. However, in lieu of the reinsurance requirements in subdivision (b)(4)(D) of this section, any self-funded group under this section with one million five hundred thousand dollars ($1,500,000) or more in annually collected premiums may provide excess reserves of twenty percent (20%) of annual premiums by any one (1) of the following ways:
      1. Cash or certificates of deposit in Arkansas banks;
      2. Letters of credit from an Arkansas bank; or
      3. The purchase of reinsurance from the NLC Mutual Insurance Company or County Reinsurance, Limited, a national reinsurance facility for county governments.

History. Acts 1985, No. 866, § 2; 1985 (1st Ex. Sess.), No. 34, § 1; 1985 (1st Ex. Sess.), No. 43, § 1; A.S.A. 1947, § 81-1365; Acts 1987, No. 206, § 1; 1999, No. 583, § 1; 2019, No. 315, § 992.

Amendments. The 2019 amendment substituted “rules” for “regulations” in (b)(4)(A).

Chapter 27 County Intergovernmental Cooperation Councils

Effective Dates. Acts 1997, No. 385, § 9: Mar. 6, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 10 of the First Extraordinary Session of 1995 abolished the original ten subject matter joint interim committees of the General Assembly and in their place established House interim committees and Senate interim committees; that as a result, various sections of the Arkansas Code that refer to the joint interim committees should now refer to the House and Senate interim committees; that this act so provides; and that this act should go into effect as soon as possible in order to make those sections of the Arkansas Code compatible. Therefore an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2001, No. 784, § 2: Mar. 14, 2001. Emergency clause provided: “It is found and determined by the General Assembly that the existing requirement that county intergovernmental cooperation councils meet at least four (4) times a year is overly burdensome and results in inefficiency in the operation of local governments; this act removes that obstacle and provides more flexibility for the operation of local government; and that until this act becomes effective, local governments will be burdened with the unnecessarily overburdensome provisions of Arkansas Code 14-27-103(a). Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

14-27-101. Purpose.

  1. It is the purpose of this chapter to require the executives of all political subdivisions of each county to meet on a regular basis for the purpose of encouraging cooperation by the various local government jurisdictions within each county in the most efficient use of their mutual resources and in the providing of services to their local communities in the most efficient and mutually advantageous manner possible.
  2. It is expected that regular dialogue between the executives of the various local government subdivisions within each county will encourage these governmental units to:
    1. Share facilities, equipment, employees, and services to provide each with a mutual benefit to the advantage of all governments within the county;
    2. Explore the use of joint purchasing and buying agreements to purchase goods and services in an effort to achieve economies of scale that would not be possible without mutual cooperation; and
    3. Identify the areas of duplication of services so they may be eliminated to the maximum extent possible.

History. Acts 1987, No. 510, § 1.

14-27-102. Creation — Membership, etc.

  1. There is established within each county of this state a county intergovernmental cooperation council to facilitate cooperation among all the local government subdivisions of each county, to encourage the efficient use of local government resources, and to eliminate the duplication of services by local governments.
    1. The membership of each cooperation council shall consist of the county judge, the county clerk, and the mayor of each city and incorporated town within each county.
      1. The county judge of each county shall serve as chair of the cooperation council.
      2. The county judge shall have full voting power and shall have veto power over any action taken by the council.
      3. It shall require a two-thirds majority vote of all council members to override a veto.
    2. The county clerk of each county shall serve as the secretary of the cooperation council, shall preside over cooperation council meetings in the absence of the council chair, and shall be responsible for writing and submitting all reports of the cooperation council.
  2. Each member of the council shall have one (1) vote for the local government jurisdiction he or she represents on the cooperation council.
  3. The members of the cooperation council shall serve without compensation for their services.
  4. A quorum shall consist of a majority of the council's membership and shall be necessary to conduct its business.

History. Acts 1987, No. 510, § 2; 1993, No. 232, § 2; 1993, No. 776, § 1.

A.C.R.C. Notes. Pursuant to § 1-2-207, this section is set out as amended by Acts 1993, No. 776, § 1. This section was also amended by Acts 1993, No. 232, § 2 to read as follows:

“(a) There is established within each county of this state a county intergovernmental cooperation council to facilitate cooperation among all the local government subdivisions of each county, to encourage the efficient use of local government resources, and to eliminate the duplication of services by local governments.

“(b) The membership of each cooperation council shall consist of the county judge, the county clerk, and the mayor of each city and incorporated town within each county.

“(1) The county judge of each county shall serve as chairman and preside over the cooperation council with a vote and with the power of veto.

“It shall require a two-thirds (2/3's) majority of all council members to override a veto.

“All other members of the council shall have one (1) vote for the local government jurisdiction they represent on the cooperation council.

“(2) The county clerk of each county shall serve as the secretary of the cooperation council, shall preside over cooperation council meetings in the absence of the council chairman, and shall be responsible for writing and submitting all reports of the cooperation council.

“(c) The members of the cooperation council shall serve without compensation for their services.

“(d) A quorum shall consist of a majority of the council's membership and shall be necessary to conduct its business.”

Publisher's Notes. Acts 1993, No. 232, § 1, provided:

“It is hereby found and determined by the General Assembly of the State of Arkansas that the method of voting as outlined in Act 510 of 1987, which established the County Intergovernmental Cooperation Council is heavily weighted in favor of cities and incorporated towns and due to this inequity has left the rural, unincorporated areas of the several counties of Arkansas in danger of under representation. It is further found and determined that it is the public policy of the state to provide full and equal representation to all of its citizens at all levels and in all subdivisions of government and that the provisions of this act are necessary for the furtherance of the goal of fair and equal representation.”

14-27-103. Meetings — Notice.

  1. A county intergovernmental cooperation council shall meet at least one (1) time annually.
  2. Meetings of the council shall be open to the public and held in a public meeting room.
  3. Meetings of the council shall be at the call of the chair unless a majority of the council's membership petition for a meeting to be held.
  4. The secretary of the council shall notify the public and the press of council meetings at least three (3) days before the meetings.

History. Acts 1987, No. 510, § 3; 2001, No. 784, § 1; 2019, No. 291, § 1.

Amendments. The 2019 amendment substituted “at least three (3) days before the meetings” for “no later than ten (10) days prior to the date of such meetings” in (d); and made stylistic changes.

14-27-104. Annual review of services.

  1. At least one (1) time annually, the county intergovernmental cooperation council shall review the delivery of services by the various local government subdivisions within the county in the following areas:
    1. Law enforcement services;
    2. Fire protection services;
    3. Jail facilities and correctional services;
    4. Ambulance and emergency medical services;
    5. Library services;
    6. Motor vehicle liability insurance;
    7. Workers' compensation coverage;
    8. Solid waste management services;
    9. Street, road, and highway repair and construction;
    10. Parks and recreation facilities and services;
    11. Planning and zoning services;
    12. Health and sanitation services;
    13. Public transit and transportation services; and
    14. Any other service area of local government.
    1. The annual review of various services can occur at any or all meetings of the council during the year.
    2. Each service area shall be examined to determine whether or not the employees, equipment, or facilities of service areas could be shared to reduce cost or eliminated to avoid the duplication of services and whether or not the goods and services purchased individually in each of these areas could be purchased jointly or cooperatively to reduce the unit cost to all local governments within the county.
    3. If it is determined by the cooperation council that duplicative services exist and can be eliminated or that joint purchases could be made at reduced costs, this determination shall be reported to the governing body of the local government jurisdictions involved along with any recommendations for consolidation of services or purchases.

History. Acts 1987, No. 510, § 4.

14-27-105. [Repealed.]

Publisher's Notes. This section, concerning the annual report to the General Assembly, was repealed by Acts 2001, No. 916, § 1. The section was derived from Acts 1987, No. 510, § 5; 1997, No. 385, § 1.

Chapter 28 Volunteer Public Safety Workers

Cross References. Workers' compensation for county employees, § 14-26-101 et seq.

14-28-101. Definitions.

As used in this chapter, unless the context otherwise requires:

  1. “Volunteer public safety organization” means:
    1. A county organization for emergency services formed pursuant to the Arkansas Emergency Services Act of 1973, § 12-75-101 et seq.;
    2. A sheriff's auxiliary formed pursuant to § 12-9-301 et seq.;
    3. An ambulance service or rescue squad formed pursuant to § 14-282-101 et seq. or any other improvement district law of this state or formed as a subordinate service district of the county; or
    4. A rural volunteer fire department formed as a subordinate service district of the county or as an improvement district, or a subscription fire service department formed as a nonprofit organization under the laws of this state; and
  2. “Volunteer public safety worker” means an active volunteer member of a volunteer public safety organization.

History. Acts 1987, No. 527, § 1.

14-28-102. Workers' compensation coverage generally.

  1. The county governments of this state are authorized to provide workers' compensation coverage pursuant to this chapter for personal injury, disability, or death of volunteer public safety workers while actually engaged in performing volunteer public safety duties.
  2. Any volunteer public safety organization desiring workers' compensation coverage for volunteer public safety workers of the organization may petition the quorum court of the county served by the organization for workers' compensation coverage under this chapter. By majority vote, the quorum court may elect to include the volunteer public safety workers as county employees for the sole purpose of workers' compensation coverage under the provisions of this chapter and §§ 14-60-101 — 14-60-104 and subject to the limitations of this chapter. The action by the quorum court shall not entitle the volunteer public safety workers to any benefits from the county other than workers' compensation coverage.
  3. At its discretion, the quorum court may require as a condition for coverage that a volunteer public safety organization requesting workers' compensation coverage under this chapter pay the premium for that coverage from any public funds available to the organization or that the quorum court make a deduction in the amount of the cost of the coverage from any amounts which the county would normally provide to the volunteer public safety organization.
  4. Volunteer public safety workers covered by workers' compensation pursuant to this chapter shall be deemed to have received such wages as will qualify them for minimum benefits applicable with respect to injury, disability, or death.

History. Acts 1987, No. 527, § 2.

14-28-103. Terms of coverage.

Any insurer or other entity providing workers' compensation coverage to a county shall offer coverage for volunteer public safety workers on the same terms as for county employees.

History. Acts 1987, No. 527, § 3.

Chapters 29-35 [Reserved.]

[Reserved]

Subtitle 3. Municipal Government

Chapter 36 General Provisions

[Reserved]

Chapter 37 Classification of Cities and Towns

Effective Dates. Acts 1875, No. 1, § 95: effective on passage.

Acts 1893, No. 145, § 6: effective on passage.

Acts 1903, No. 46, § 4: effective on passage.

Acts 1909, No. 306, § 2: effective on passage.

Acts 1931, No. 61, § 3: effective on passage.

Acts 1931, No. 119, § 2: approved Mar. 9, 1931. Emergency clause provided: “By reason of the fact that many towns in the State with more than seventeen hundred and fifty inhabitants wish to undertake public improvements that are not practicable under improvement district laws, an emergency is declared to exist, and that for the immediate preservation of the public peace, health and safety it is necessary that this act shall take effect and be in force immediately upon its passage, and thereupon the same shall be in force immediately upon passage.”

Acts 1939, No. 92, § 3: approved Feb. 15, 1939. Emergency clause provided: “Whereas, there are cities and towns as described herein which are losing revenue, and because there are people living outside of said cities and towns which are deprived of the privilege of police protection, and this act will provide additional revenue for said cities and will provide said people with adequate police protection, this act is found necessary for the public peace, health and safety, and an emergency is hereby declared to exist, and this act shall be in full force and effect from and after its passage.”

Acts 1939, No. 211, § 2: approved Mar. 9, 1939. Emergency clause provided: “It is ascertained and hereby declared that by reason of the depression continuing there are several incorporated towns in the State of Arkansas, that are now handicapped by not being able to become cities of the second class so that this act is necessary for the preservation of the public peace, health and safety. Therefore an emergency is declared to exist and this act shall be in full force and effect from and after its passage.”

Acts 1943, No. 160, § 2: Mar. 4, 1943.

Acts 1945, No. 247, § 6: Mar. 20, 1945. Emergency clause provided: “It is ascertained and declared by the General Assembly of the State of Arkansas, that it would be advantageous to many cities not having four thousand or more inhabitants to become cities of the first class, since the Statutes of Arkansas give the cities of the first class greater rights than the cities of the second class; an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety, shall take effect and be in full force from and after the date of its passage and approval.”

Acts 1947, No. 227, § 3: approved Mar. 18, 1947. Emergency clause provided: “It is ascertained and declared that there are a large number of towns in the State of Arkansas which have raised their classifications under the provisions of Act No. 334 of the Acts of the General Assembly of 1937, and under the provisions of Act No. 334 of the General Assembly of 1937 as amended by Act 211 of the Acts of the General Assembly of 1939 and their operations and advantages as cities of the second class are being delayed by reason of the present law so that this Act is necessary for the preservation of the public peace, health and safety. Therefore an emergency is declared to exist and this Act shall be in full force and effect from and after its passage.”

Acts 1967, No. 498, § 3: Apr. 4, 1967. Emergency clause provided: “It is hereby found and determined by the General Assembly that various laws of this State have been enacted applicable to cities of this State within defined population classifications, but that subsequent thereto many of the cities to which said laws are applicable have either increased or decreased their population to an extent that such laws are no longer applicable to such cities, and that the immediate passage of this Act is necessary in order that the laws formerly applicable to said cities may continue to be applicable thereto. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 2009, No. 1480, § 117: Apr. 10, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act makes various revisions to Arkansas election laws that are designed to improve the administration of elections and special elections and that these revisions should be implemented as soon as possible so that the citizens of this state may benefit from improved election procedures. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Research References

Am. Jur. 56 Am. Jur. 2d, Mun. Corp., §§ 1 et seq., 105 et seq.

Ark. L. Rev.

Municipal Improvement Bonds in Arkansas, 8 Ark. L. Rev. 146.

U. Ark. Little Rock L.J.

Goldner, A Call for Reform of Arkansas Municipal Law, 15 U. Ark. Little Rock L.J. 175.

14-37-101. Applicability.

All corporations which existed when the Arkansas Constitution of 1874 took effect for the purpose of municipal government, and described or denominated in any law then in force, are organized into cities of the first and second class, as the case may be, and incorporated towns with the territorial limits respectively prescribed or belonging.

History. Acts 1875, No. 1, § 5, p. 1; C. & M. Dig., § 7456; Pope's Dig., § 9489; A.S.A. 1947, § 19-203.

Publisher's Notes. The Arkansas Constitution of 1874 was ratified by the people October 13, 1874, and its adoption was proclaimed October 30, 1874.

Case Notes

Boundaries.

When a municipal corporation has definite boundaries that are in dispute, it is for the courts, and not the General Assembly, to determine their location. State v. Leatherman, 38 Ark. 81 (1881).

14-37-102. Division into classes.

In respect to the exercise of certain corporate powers and to the number, character, powers, and duties of certain officers, municipal corporations are divided into the following classes:

  1. Cities of the first class;
  2. Cities of the second class; and
  3. Incorporated towns.

History. Acts 1875, No. 1, § 1, p. 1; C. & M. Dig., § 7448; Pope's Dig., § 9480; A.S.A. 1947, § 19-201.

14-37-103. Population limits.

    1. All municipal corporations having over two thousand five hundred (2,500) inhabitants shall be deemed cities of the first class.
    2. All cities having five hundred (500) inhabitants or more and fewer than two thousand five hundred (2,500) inhabitants shall be deemed cities of the second class.
    3. All others shall be incorporated towns and shall be governed by the provisions of this subtitle.
    1. Any incorporated towns of fewer than five hundred (500) inhabitants who have voted to be a city of the second class under § 14-37-112 shall continue to be a city of the second class.
    2. Any city having a population of one thousand five hundred (1,500) or more may become a city of the first class upon the enactment of an ordinance therefor, with all powers, authority, and responsibility of other cities of the first class.

History. Acts 1875, No. 1, § 5, p. 1; C. & M. Dig., § 7457; Pope's Dig., § 9490; Acts 1945, No. 247, § 4; 1965, No. 108, § 1; 1971, No. 269, § 1; A.S.A. 1947, § 19-202.

Publisher's Notes. Acts 1945, No. 247, § 5, provided that this act shall be cumulative to §§ 14-37-105(b) and 14-37-112 and shall not affect the provisions of these sections.

14-37-104. Cities of the first class.

  1. All cities, which at the last federal census had, or now have, a population exceeding two thousand five hundred (2,500) inhabitants shall be deemed cities of the first class.
  2. All cities which, at any future federal census, or any census which may be taken in pursuance of the laws of this state, shall be found to have a population of two thousand five hundred (2,500) inhabitants shall thereafter be deemed cities of the first class.

History. Acts 1875, No. 1, § 2, p. 1; C. & M. Dig., §§ 7449, 7450; Pope's Dig., §§ 9481, 9482; Acts 1945, No. 247, §§ 1, 2; A.S.A. 1947, §§ 19-204, 19-205.

Case Notes

Paris.

The municipality of Paris, Arkansas, is a city of the first class as the 1990 census reports a population of approximately three thousand six hundred (3,600) inhabitants. Pearson v. City of Paris, 839 F. Supp. 645 (W.D. Ark. 1993).

Cited: City of Cabot v. Thompson, 286 Ark. 395, 692 S.W.2d 235 (1985).

14-37-105. Cities of the second class.

  1. Any incorporated town of the State of Arkansas which, at any future federal census, or any census taken under the authority of the State of Arkansas, shall be found to have a population exceeding five hundred (500) persons who shall be inhabitants of the town and less than two thousand five hundred (2,500) inhabitants shall be deemed in all respects to be a city of the second class. However, this section shall not apply to cities that are now classified as cities of the first class.
    1. In all counties having two (2) levying courts, in which there is a county seat town of less than five hundred (500) population, according to the last federal census, the county seat towns are made cities of the second class, with all the powers and privileges conferred upon cities of the second class by law.
    2. Any of the towns described in subdivision (b)(1) of this section, through the governing body thereof, shall have the power, by ordinance, to annex to the city or town all heretofore platted additions thereto, so as to make them a part of the city and included within its boundaries and subject to all the rights, duties, and privileges of the original territory of the city.

History. Acts 1875, No. 1, § 2, p. 1; 1909, No. 306, § 1, p. 915; C. & M. Dig., § 7451; Acts 1931, No. 119, § 1; Pope's Dig., § 9483; Acts 1939, No. 92, §§ 1, 2; 1945, No. 247, § 3; A.S.A. 1947, §§ 19-206, 19-207.

14-37-106. Board of Municipal Corporations.

The Board of Municipal Corporations shall consist of the Auditor of State, Secretary of State, and Attorney General. The Secretary of State shall be president.

History. Acts 1893, No. 145, § 2, p. 251; C. & M. Dig., § 7454; Pope's Dig., § 9487; A.S.A. 1947, § 19-208.

Case Notes

Facilities Boards.

Facilities boards are not the type of company, association or corporation contemplated by this section; rather, facilities boards are agencies created by the counties to carry out various county activities. McCutchen v. Huckabee, 328 Ark. 202, 943 S.W.2d 225 (1997).

14-37-107. Advancement of cities and towns according to census.

    1. It shall be the duty of the Governor, the Auditor of State, and the Secretary of State, or any two (2) of them, to ascertain from the federal census and census provided for by law of this state, what cities of the second class are entitled to become cities of the first class and what incorporated towns are entitled to become cities and their proper class.
    2. The Governor shall cause a statement stating the grade to which the city has been advanced to be prepared and transmitted to the mayor of the city or town.
  1. As soon as the statement has been received by the mayor, as provided in subsection (a) of this section, showing that any city or town will be entitled to be organized into a city of the first class or city of the second class at the next regular annual period for the election of municipal officers, it shall be the duty of the proper corporate authority of the city or incorporated town to make and publish bylaws or ordinances necessary to perfect the organization in respect to the election, duties, and compensation of municipal officers, or otherwise.
  2. When a city of the second class becomes a city of the first class, the recorder of the affected city of the second class automatically becomes the city clerk of the city when the change in classification occurs.

History. Acts 1875, No. 1, §§ 3, 4, p. 1; C. & M. Dig., §§ 7452, 7455; Pope's Dig., §§ 9485, 9488; Acts 1943, No. 160, § 1; A.S.A. 1947, §§ 19-209, 19-210; Acts 2005, No. 44, § 1.

Case Notes

Void Orders.

An order made by the state board of municipal corporations raising an incorporated town to a city of the second class was void where census list required by statute had not been filed in mayor's office 30 days prior to the date the order was made. Bush v. Echols, 178 Ark. 507, 10 S.W.2d 906 (1928).

Where 1910 federal census showed a population of 2,331 and 1920 federal census showed a population of 2,836, it was proper to find that the special census taken in 1879 was fraudulent (there being testimony that some persons included in the count did not live within the city), that the order making it a second-class city was void ab initio, and that the town did not become a city until after 1910. City of Searcy v. Roberson, 256 Ark. 1081, 511 S.W.2d 627 (1974).

Cited: Clark v. Mahan, 268 Ark. 37, 594 S.W.2d 7 (1980).

14-37-108. Application for advancement between census periods.

  1. The Auditor of State, Secretary of State, and Attorney General may declare incorporated towns cities of the second class, and cities of the second class cities of the first class, between the periods fixed in § 14-37-107(a), upon application from any incorporated town or city of the second class, accompanied by a resolution adopted by the town or city council, asking to be so declared a city of the first or second class, as the case may be.
  2. The application shall be accompanied with satisfactory evidence showing the population of the town or city to be large enough to entitle it to such advancement.

History. Acts 1875, No. 1, § 3, p. 1; C. & M. Dig., § 7453; Pope's Dig., § 9486; A.S.A. 1947, § 19-211.

Publisher's Notes. As to validation of acts, proceedings, enumerations, resolutions, and ordinances passed by incorporated towns declared to be cities of the second class, notwithstanding any irregularities, defects, errors, or informalities in such proceedings, see Acts 1909, No. 167, § 1. As to ratification of the actions of de facto officers of cities that been advanced under special acts that had been held unconstitutional, see Acts 1915, No. 212, § 1.

Case Notes

Validating Acts.

Acts 1909, No. 167 was not intended to cure an ordinance fixing a date for the election of city officers different from the date fixed by statute for such an election. McMahan v. State, 102 Ark. 12, 143 S.W. 94 (1912).

The actions of municipal officers in creating a local improvement district and levying assessments, performed subsequent to the passage of Acts 1915, No. 212, and before an election was held to elect new officers, were valid as were the formation of the district and the assessments. Cotten v. Hughes, 125 Ark. 126, 187 S.W. 905 (1916).

14-37-109. Appointment of enumerators to take census.

    1. If a city or incorporated town desires to be made a city of the first class or a city of the second class, or if it is deemed necessary to determine the number of inhabitants within the city or incorporated town for any purpose, on petition of ten (10) qualified voters of the city or incorporated town filed with the recorder of the city or incorporated town, the city or town council shall consider the petition at its next regular meeting.
    2. If the city or town council deems the prayer of petitioners well founded and deems that a census of the city or incorporated town should be taken in accordance with the prayer of the petitioners, the city or town council may pass a resolution authorizing and directing the taking of a census of the city or incorporated town, and the mayor shall appoint enumerators to take the census, the appointees to be approved by the city or town council.
    1. The resolution authorizing the taking of census shall prescribe the duties of the enumerators as to when and how to proceed.
      1. Not more than one (1) enumerator shall be appointed for each ward.
      2. However, one (1) enumerator may take more than one (1) ward if the city or town council deems it proper.

History. Acts 1903, No. 46, § 1, p. 78; C. & M. Dig., § 7662; Pope's Dig., § 9784; A.S.A. 1947, § 19-212; Acts 2017, No. 879, § 3.

Amendments. The 2017 amendment rewrote the section.

14-37-110. Return of enumerators.

    1. Before the enumerators shall enter upon their duties, they shall make and subscribe to an oath to well and faithfully perform their duties, and their return shall be taken as true.
      1. However, the returns so made by the census enumerators shall be filed in the office of the mayor and shall be subject to examination of the public for thirty (30) days.
      2. Any correction of the returns may be made if proper proof is made before the city or town council to its satisfaction authorizing the correction sought to be made.
  1. The enumerators shall be entitled to and receive two and one-half cents (2 1/2¢) per name for all names found to be authentic by the city or town council, to be paid by the city or incorporated town.

History. Acts 1903, No. 46, §§ 2, 3, p. 78; C. & M. Dig., § 7663; Pope's Dig., § 9785; A.S.A. 1947, §§ 19-213, 19-214; Acts 2017, No. 878, § 1.

Amendments. The 2017 amendment, in (a)(2)(B), substituted “of the returns” for “thereof”, and substituted “city or town council to its” for “board of aldermen to their”; and, in (b), substituted “city or town council” for “board of aldermen”, and substituted “city or incorporated town” for “town or city”.

14-37-111. Reduction of city to lower grade — In general.

  1. Whenever the last federal census shows that any city of the first class has fewer than two thousand five hundred (2,500) inhabitants and that any city of the second class has fewer than five hundred (500) inhabitants, the city may be reduced to a city of the second class or to an incorporated town, respectively, upon the adoption of a resolution by the council of the municipal corporations requesting that the grade of the corporations be reduced.
    1. The Board of Municipal Corporations, upon the receipt of a certified copy of the resolution, shall make an order reducing the grade of the municipal corporation.
    2. Upon being advised of the action of the board, the Governor shall cause a statement to be prepared and transmitted to the mayor of the city or town stating the grade to which it has been reduced.
  2. When the grade of a city has been reduced to city of the second class or to incorporated town, all officers of that city or town shall continue in office until the next general election for the city or town.

History. Acts 1931, No. 61, §§ 1, 2; Pope's Dig., §§ 9547, 9548; A.S.A. 1947, §§ 19-216, 19-217; Acts 2017, No. 260, § 4.

A.C.R.C. Notes. Ark. Const. Amend. 80, § 19(B)(2) provided: “District Courts shall have the jurisdiction vested in Municipal Courts, Corporation Courts, Police Courts, Justice of the Peace Courts, and Courts of Common Pleas at the time this Amendment takes effect. District Courts shall assume the jurisdiction of these courts of limited jurisdiction and other jurisdiction conferred in this Amendment on January 1, 2005. City Courts shall continue in existence after the effective date of this Amendment unless such City Court is abolished by the governing body of the city or by appropriate action of the General Assembly. Immediately upon abolition of such City Court, the jurisdiction of the City Court shall vest in the nearest District Court in the county where the city is located.”

Amendments. The 2017 amendment, in (c), deleted the former first sentence and substituted “When the grade of a city has been reduced to city of the second class or to incorporated town, all officers of that city or town” for “All other officers of a city whose grade may be reduced”.

14-37-112. Incorporated town may become city of the second class.

    1. Any incorporated town in this state may become a city of the second class by the adoption and publication of an ordinance, duly adopted and published as provided by law, converting the incorporated town into a city of the second class. However, after the adoption and publication of the ordinance, the qualified voters of the town shall vote in any general election or a special election called by the mayor to be held in accordance with § 7-11-201 et seq., in favor of the ordinance.
    2. If a majority of the qualified electors voting in the election vote in favor of the ordinance, a certified copy of the ordinance shall be filed with the Secretary of State. Thereupon the incorporated town shall become a city of the second class.
    1. The officers of the incorporated town, upon filing with the Secretary of State the certified copy of the ordinance, shall immediately become officers of the city of the second class with full authority to proceed, do, and perform any and all things for, and on behalf of, the city of the second class as if elected as officers of the city of the second class. They shall serve as officers for the full period of time for which they were elected or until their successors are elected and qualified.
      1. At the regular time for holding election of officers of incorporated towns, there shall be an election for the election of officers of the city of the second class, who shall hold office as officers of the city of the second class until the next regular time fixed by law for electing officers of a city of the second class or until their successors are elected and qualified.
      2. However, the mayor of the incorporated town which has been raised to a city of the second class may call a special election by proclamation, to be held in accordance with § 7-11-101 et seq., which shall be published by two (2) insertions in a newspaper of general circulation in the county in which the city is located. This special election shall be held for the purpose of electing officers for the city of the second class.

History. Acts 1937, No. 334, § 1; Pope's Dig., § 9484; Acts 1939, No. 211, § 1; 1947, No. 227, § 1; A.S.A. 1947, § 19-215; Acts 2005, No. 2145, § 19; 2007, No. 1049, § 37; 2009, No. 1480, §§ 53, 54.

Publisher's Notes. As to validation of acts of officers of municipalities that raised their classification from incorporated town to cities of the second class under Acts 1937, No. 334, as amended by Acts 1939, No. 211, see Acts 1947, No. 227, § 2.

Amendments. The 2009 amendment substituted “§ 7-11-201 et seq.” for “§ 7-5-103(b)” in the last sentence of (a)(1); and substituted “§ 7-11-101 et seq.” for “§ 7-5-103(b)” in the first sentence of (b)(2)(B).

Case Notes

Constitutionality.

This section was held not unconstitutional as delegating to towns or the inhabitants thereof the authority to raise the classification of towns. Gross v. Homard, 201 Ark. 391, 144 S.W.2d 705 (1940).

Applicability.

This section applies to all incorporated towns in the state and is a general and not a special law. Gross v. Homard, 201 Ark. 391, 144 S.W.2d 705 (1940).

Certified Copy of Ordinance.

When certified copy of ordinance raising classification of municipality from town to city of the second class is filed with secretary of state as required, the town immediately becomes a city of the second class and the officers thereof immediately become officers of a city of the second class. Luther v. Gower, 233 Ark. 496, 345 S.W.2d 608 (1961).

Cited: Logan v. Harris, 213 Ark. 37, 210 S.W.2d 301 (1948).

14-37-113. Effect of population changes on legislation.

Whenever any law of this state provides that the provisions of it shall apply to any city within a defined population classification, it is declared to be the intent of the General Assembly that, in the event any city to which the law was applicable at the time of the enactment of that law shall subsequently achieve a lesser or greater population than the classification prescribed by law, the law shall nevertheless thereafter be equally applicable to any such city, irrespective of the fact that the city no longer has a population within the classification prescribed by the law.

History. Acts 1967, No. 498, § 1; A.S.A. 1947, § 19-218.

14-37-114. Reduction of city of the first class to city of the second class.

  1. Whenever the last federal census shows that any city of the first class has less than five thousand (5,000) inhabitants, the city may be reduced to a city of the second class upon the adoption of a resolution by the council of the municipal corporation requesting that the grade of the municipal corporation be reduced.
  2. The Board of Municipal Corporations, upon the receipt of a certified copy of the resolution, shall make an order reducing the grade of the municipal corporation, and, upon being advised of the action of the board, the Governor shall cause a statement thereof to be prepared and transmitted to the mayor of the city stating the grade to which the municipal corporation has been reduced.

History. Acts 1991, No. 514, § 1.

Chapter 38 Incorporation and Organization of Municipalities

Publisher's Notes. Acts 1875, No. 1, § 31, preserved the rights, liabilities, and property of municipal corporations organized prior to adoption of the act.

Cross References. Emergency temporary location for political subdivisions, § 14-14-308.

Effective Dates. Acts 1875, No. 1, § 95: effective on passage.

Acts 1961, No. 131, § 3: Feb. 22, 1961. Emergency clause provided: “Whereas, a number of cities and towns in the State of Arkansas lie within more than one county, and whereas, confusion exists as to the validity of the acts of the officers of such cities and towns and as to the manner and form of holding elections therein and the exercising of corporate powers by the officers of said cities and towns thereby threatening the health, peace, safety, and general welfare of citizens of the State of Arkansas, an emergency is hereby declared to exist, and this act shall be in full force and effect from and after its passage and approval.”

Acts 1971, No. 711, § 4: Apr. 28, 1971. Emergency clause provided: “It is hereby found and determined by the General Assembly that a number of incorporated towns have become inactive in this State, but the activations of such incorporated towns is essential to the providing of necessary municipal services for the citizens of such incorporated town, and that the immediate passage of this Act is necessary to establish procedures for the reactivation of such incorporated towns, and for the election of the officials thereof. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1975, No. 635, § 2: Sept. 1, 1975.

Acts 1980 (1st Ex. Sess.), No. 21, § 3: Jan. 25, 1980. Emergency clause provided: “It is hereby found and determined by the General Assembly that when a municipality votes to change its form of government that a hardship exists when such municipality must wait to elect officials of such municipality in the manner and time provided by law for the election of such municipal officials; that a need exists that such municipality government offices be filled immediately by the calling of a special election to allow such municipality to properly effectuate the newly elected change of government. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1980 (1st Ex. Sess.), No. 70, § 3: Feb. 6, 1980. Emergency clause provided: “It is hereby found and determined by the General Assembly that when a municipality votes to change its form of government that a hardship exists when such municipality must wait to elect officials of such municipality in the manner and time provided by law for the election of such municipal officials; that a need exists that such municipality government offices be filled immediately by the calling of a special election to allow such municipality to properly effectuate the newly elected change of government. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1983, No. 439, § 3: Mar. 13, 1983. Emergency clause provided: “It is hereby found and determined by the General Assembly that the present procedure for the incorporation of rural communities is unduly restrictive and that many parts of rural Arkansas which need the services of an incorporated town are unable to incorporate due to the present requirements of the law, and that this Act is necessary to liberalize the incorporation requirements for such rural communities. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 2009, No. 1480, § 117: Apr. 10, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act makes various revisions to Arkansas election laws that are designed to improve the administration of elections and special elections and that these revisions should be implemented as soon as possible so that the citizens of this state may benefit from improved election procedures. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2017, No. 653, § 3: Mar. 27, 2017. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that an urgent need exists to clarify the official effective dates of municipal boundary actions, to aid the United States Bureau of the Census in the bureau's decennial census counts, and to maintain more accurate records regarding municipal boundary changes; and that this act is immediately necessary to clarify the effective dates of municipal boundary changes. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety, shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Research References

Am. Jur. 56 Am. Jur. 2d, Mun. Corp., § 30 et seq.

C.J.S. 62 C.J.S., Mun. Corp., § 6 et seq.

87 C.J.S., Towns, § 6.

U. Ark. Little Rock L.J.

Heller and Sallings, Survey of Public Law, 3 U. Ark. Little Rock L.J. 296.

14-38-101. Petition for incorporation.

    1. When the inhabitants of a part of any county not embraced within the limits of any city or incorporated town shall desire to be organized into a city or incorporated town, they may apply, by a petition in writing, signed by the greater of either two hundred (200) or a majority of the qualified voters residing within the described territory, to the county court of the proper county.
    2. The petition shall:
      1. Describe the territory proposed to be embraced in the incorporated town and have annexed to it an accurate map or plat of the territory;
      2. State the name proposed for the incorporated town; and
      3. Name the persons authorized to act in behalf of the petitioners in prosecuting the petition.
    1. Unless the governing body of the municipal corporation has affirmatively consented to the incorporation by written resolution or the area that seeks to be incorporated contains a population of one thousand five hundred (1,500) or more, the court shall not approve the incorporation of a municipality if any portion of the territory proposed to be embraced in the incorporated town lies within:
      1. Three (3) miles of an existing municipal corporation; or
      2. The area in which that existing municipal corporation is exercising its planning territorial jurisdiction.
    2. The planning territorial jurisdiction limitation shall not apply if the area proposed to be incorporated is land upon which a real estate development by a single developer, containing not less than four thousand (4,000) acres, has been or is being developed under a comprehensive plan for a community containing streets and other public services, parks, and other recreational facilities for common use by the residents of the community, churches, schools, and commercial and residential facilities, and which has been subdivided into sufficient lots for residential use to accommodate a projected population of not fewer than one thousand (1,000) persons, and for which a statement of record has been filed with the United States Secretary of Housing and Urban Development under the Interstate Land Sales Full Disclosure Act.
  1. When any petition shall be presented to the court, it shall be filed in the office of the county clerk, to be kept there, subject to the inspection of any persons interested, until the time appointed for the hearing of it.
    1. At or before the time of the filing, the court shall fix and communicate to the petitioners, or their agent, a time and place for the hearing of the petition, which time shall not be less than thirty (30) days after the filing of the petition.
        1. Thereupon, the petitioners or their agent shall cause a notice to be published in some newspaper of general circulation in the county for not less than three (3) consecutive weeks.
        2. If there is no newspaper of general circulation in the county, a notice shall be posted at some public place within the limits of the proposed incorporated town for at least three (3) weeks before the time of the hearing.
      1. The notice shall contain the substance of the petition and state the time and place appointed for the hearing.

History. Acts 1875, No. 1, § 35, p. 1; C. & M. Dig., § 7664; Pope's Dig., § 9786; Acts 1975, No. 635, § 1; 1979, No. 606, § 1; 1983, No. 439, § 1; A.S.A. 1947, § 19-101; Acts 2001, No. 1233, §§ 1, 2; 2001, No. 1831, § 1; 2007, No. 118, § 1; 2017, No. 1055, § 1; 2019, No. 932, § 1.

Amendments. The 2017 amendment redesignated former (b)(1) as (b)(1), (b)(1)(A), and (b)(1)(B)(i); in the introductory language of (b)(1), substituted “a” for “any” and “lies within” for “shall lie within”; in (b)(1)(A), substituted “Three (3)” for “five (5)” and “or” for “and within the”; inserted “The” in (b)(1)(B)(i); and added (b)(1)(B)(ii).

The 2019 amendment substituted “Unless the governing body of the municipal corporation has affirmatively consented to the incorporation by written resolution or the area that seeks to be incorporated contains a population of one thousand five hundred (1,500) or more, the court” for “The court” in the introductory language of (b)(1); deleted the (b)(1)(B)(i) designation; deleted “unless the governing body of the municipal corporation has affirmatively consented to the incorporation by written resolution” following “jurisdiction” in (b)(1)(B); deleted (b)(1)(B)(ii); and made stylistic changes.

U.S. Code. The Interstate Land Sales Full Disclosure Act, referred to in this section, is codified as 15 U.S.C. § 1701 et seq.

Research References

Ark. L. Rev.

Handbook to the Interstate Land Sales Full Disclosure Act. 27 Ark. L. Rev. 65.

Case Notes

Agents.

Statutory provisions relating to annexation of territory at the instance of agents of an existing municipal corporation were held intended to afford a right of action to parties claiming to be affected, but such an action was held to be an independent proceeding, as distinguished from appeal. Pike v. City of Stuttgart, 200 Ark. 1010, 142 S.W.2d 233 (1940).

Description of Territory.

Where limits of proposed municipality are unreasonably large, incorporation of the municipality will be denied. Arkansas & O. Ry. v. Busch, 223 Ark. 27, 264 S.W.2d 54 (1954).

Contention that lands to be annexed were not described in petition and that no map or plat was filed as required by law held to have failed. Mahone v. Rogers, 234 Ark. 540, 353 S.W.2d 184 (1962).

A description of property under this section must be sufficient to render possible the ascertainment of the boundaries involved and the territories intended to be included. Parrish v. City of Russellville, 253 Ark. 1000, 490 S.W.2d 126 (1973).

Published description of property required by this section is insufficient where description does not encircle any geographical area nor describe a geographical area to be annexed, but merely describes a line, as such a description fails to comply with requirement that the petition describe “the territory to be embraced.” Parrish v. City of Russellville, 253 Ark. 1000, 490 S.W.2d 126 (1973).

Notice.

Erroneous legal description in published notice does not void incorporation, because this section only requires the published notice to contain substance of petition and the time and place of the hearing. Dunkum v. Moore, 265 Ark. 544, 580 S.W.2d 183 (1979).

Qualified Voters.

While petition of required number of electors can initiate incorporation procedure, concurrence of majority of area inhabitants is required to override challenge to incorporation lodged under § 14-38-107. Town of Wrightsville v. Walton, 255 Ark. 523, 501 S.W.2d 241 (1973).

The term “inhabitants” as used in this section means qualified voters residing within the proposed municipality. Dunkum v. Moore, 265 Ark. 544, 580 S.W.2d 183 (1979).

Cited: Gerrin v. Hickey, 464 F. Supp. 276 (E.D. Ark. 1979); White v. Lorings, 274 Ark. 272, 623 S.W.2d 837 (1981); Brock v. Townsell, 2009 Ark. 224, 309 S.W.3d 179 (2009).

14-38-102. [Repealed.]

Publisher's Notes. This section, concerning refiling of certain petitions withdrawn prior to court action, was repealed by Acts 1993, No. 1121, § 1. The section was derived from Acts 1977, No. 556, § 1; A.S.A. 1947, § 19-101.4.

14-38-103. Hearing on petition.

    1. Every incorporation hearing under this chapter shall be public and may be adjourned from time to time.
    2. Any person interested may appear and contest the granting of the prayer of the petition, and affidavits in support of or against the petition, which may be prepared and submitted, shall be examined by the county court.
    1. In its discretion, the court may permit the agent named in the original petition to amend or change it.
    2. However, no amendment shall be permitted whereby territory not before embraced shall be added or the character of the proposed city or incorporated town changed from special to general, or from general to special, without appointing another time for a hearing and requiring new notice to be given as provided in § 14-38-101.

History. Acts 1875, No. 1, § 36, p. 1; C. & M. Dig., § 7665; Pope's Dig., § 9787; A.S.A. 1947, § 19-102.

Cross References. Hearing on petitions in annexation proceedings, § 14-40-602.

Case Notes

In General.

An injunction in equity to prohibit the incorporation of a municipality and to prevent the elected officers from functioning would be denied since there was an adequate remedy at law. Bragg v. Thompson, 177 Ark. 870, 9 S.W.2d 24 (1928).

Petition to incorporate a new municipality and petition to annex such territory to an existing city are properly consolidated for hearing and appeal. Chastain v. City of Little Rock, 208 Ark. 142, 185 S.W.2d 95 (1945).

Amendments.

It is not within the jurisdiction of a county court to amend an annexation petition by adding territory. Rooker v. City of Little Rock, 234 Ark. 372, 352 S.W.2d 172 (1961).

On appeal, a circuit court is within the bounds of its authority when it disregards a void amendment allowed by the county court in an annexation proceeding and hears the case on the original petition, as if it had been originally brought in the circuit court, and as if no amendment had been made. Rooker v. City of Little Rock, 234 Ark. 372, 352 S.W.2d 172 (1961).

Any Person Interested.

Protestants who appeared at the hearing and orally objected to the proposed annexation were qualified to appeal from the county court to the circuit court even though they had filed no written remonstrance or other pleading. Skinner v. City of El Dorado, 248 Ark. 916, 454 S.W.2d 656 (1970).

“Any person interested” means any person who has some interest in the municipality or the area to be annexed. City of Crossett v. Anthony, 250 Ark. 660, 466 S.W.2d 481 (1971); Turner v. Wiederkehr Village, 261 Ark. 72, 546 S.W.2d 717 (1977).

In case where city was petitioning for annexation of two separate areas and persons who opposed all resided or had property in one area, there was no interested party contesting the annexation of the other area, and a motion to dismiss as to the latter area should have been granted. City of Crossett v. Anthony, 250 Ark. 660, 466 S.W.2d 481 (1971).

At least some interest must be shown on trial de novo in a circuit court in the face of a motion to dismiss for lack of interest. Turner v. Wiederkehr Village, 261 Ark. 72, 546 S.W.2d 717 (1977).

Attorney who owned property near village to be annexed and had contingent fee contract under which he would acquire property in the village if he won his client's lawsuit did not have standing to challenge the incorporation in the absence of a showing that he was threatened with a direct pecuniary damage not shared by members of the public in general. Turner v. Wiederkehr Village, 261 Ark. 72, 546 S.W.2d 717 (1977).

A person need not appear at the hearing on a petition for incorporation and contest the petition, in order to have standing to file a complaint for injunction in circuit court against such incorporation, as provided in § 14-38-106. Campbell v. City of Cherokee Village W., 333 Ark. 310, 969 S.W.2d 179 (1998).

Cited: Town of Ouita v. Heidgen, 247 Ark. 943, 448 S.W.2d 631 (1970); White v. Lorings, 274 Ark. 272, 623 S.W.2d 837 (1981); Proposed Annexation to Beaver v. Ratliff, 282 Ark. 516, 669 S.W.2d 467 (1984).

14-38-104. Order of incorporation — Transcript.

  1. The county court shall make out and endorse on the petition an order to the effect that the city or incorporated town as named and described in the petition may be organized if the court shall be satisfied after hearing the petition that:
    1. The greater of either two hundred (200) or a majority of the qualified voters residing within the described territory have signed the petition;
    2. The limits have been accurately described and an accurate map or plat of the limits made and filed;
    3. The name proposed for the city or incorporated town is proper and sufficient to distinguish it from others of like kind in the state; and
    4. Moreover, that it shall be deemed right and proper in the judgment and discretion of the court that the petition shall be granted.
    1. The order shall be signed and delivered by the court, together with the petition and the map or plat, to the recorder of the county, whose duty it shall be to record it as soon as possible in the proper book or records and to file and preserve in his or her office the original papers, having certified thereon that it has been properly recorded.
    2. It shall also be the duty of the recorder to make out and certify, under his or her official seal, two (2) transcripts of the record. The recorder shall forward one (1) copy to the Secretary of State and deliver one (1) copy to the agent of the petitioners, with a certificate thereon that a similar transcript has been forwarded to the Secretary of State as provided by this section.

History. Acts 1875, No. 1, § 37, p. 1; C. & M. Dig., § 7666; Pope's Dig., § 9788; A.S.A. 1947, § 19-103; Acts 1995, No. 299, § 1; 2001, No. 1233, § 3.

Case Notes

In General.

On the passage of the Act of April 20, 1873, for the addition of territory to municipal corporations, Du Val's addition to the city of Little Rock became and continued a part of the city and was not cut off, as was attempted by the Act of March 9, 1877, “to define the boundary of the city,” the act being unconstitutional. City of Little Rock v. Parish, 36 Ark. 166 (1880).

Appeals.

Parties who file a remonstrance and thus become parties may appeal. Barnwell v. Town of Gravette, 87 Ark. 430, 112 S.W. 973 (1908).

In action by municipality for annexation of additional territory, the circuit court on appeal from the county court will try the case de novo, and such decision by the circuit court will be affirmed by the Supreme Court if there is any substantial evidence to support it. Burton v. City of Ft. Smith, 214 Ark. 516, 216 S.W.2d 884 (1949).

Judgment in favor of annexation of large tract of land on ground that annexation was needed for municipal expansion will be affirmed if there is substantial evidence to support such judgment, although there is evidence that some of the land is valuable as agricultural land. Burton v. City of Ft. Smith, 214 Ark. 516, 216 S.W.2d 884 (1949).

Maps or Plats.

Corners established by a government survey are conclusive and cannot be collaterally attacked. Burton v. City of Ft. Smith, 214 Ark. 516, 216 S.W.2d 884 (1949).

Transcripts.

The transcripts mentioned in this section are the records required to be delivered to the county recorder, and in turn certified. Pike v. City of Stuttgart, 200 Ark. 1010, 142 S.W.2d 233 (1940).

Cited: Dunkum v. Moore, 265 Ark. 544, 580 S.W.2d 183 (1979).

14-38-105. Completion of incorporation.

  1. As soon as the record shall be made and the transcript certified, forwarded, and delivered, the inhabitants within the limits described in the petition shall be deemed a city or incorporated town, to be organized and governed under the provisions of this subtitle in like manner as if specially named therein.
  2. As soon as the city or incorporated town shall be actually organized, by election of its officers as provided in § 14-38-108, notice of its existence as such shall be taken in all judicial proceedings in the state.

History. Acts 1875, No. 1, § 38, p. 1; C. & M. Dig., § 7667; Pope's Dig., § 9789; A.S.A. 1947, § 19-104.

14-38-106. Complaint to prevent organization.

  1. One (1) month shall elapse from the time the transcripts are forwarded and delivered before notice shall be given of an election of officers in the city or incorporated town.
  2. At any time within the one (1) month, any person interested may make complaint in writing, in the nature of an application for an injunction to the circuit court, or the judge in vacation, having given at least five (5) days' notice thereof. He or she shall furnish a copy of the complaint to the agent of the petitioners for the purpose of having the organization of the proposed city or incorporated town prevented.

History. Acts 1875, No. 1, § 39, p. 1; C. & M. Dig., § 7668; Pope's Dig., § 9790; A.S.A. 1947, § 19-105.

Case Notes

Appeals.

Where, following dismissal by county court of complaint protesting annexation of territory, affidavit and prayer for appeal was filed within 30 days, appeal was granted, and transcript was lodged with the circuit clerk more than 30 days after dismissal, transcript was held filed in ample time and appeal was held improperly dismissed. Pike v. City of Stuttgart, 200 Ark. 1010, 142 S.W.2d 233 (1940).

Collateral Attack.

Action attacking validity of organization of municipality instituted more than one month after transcript of the county court's order authorizing its organization has been forwarded and delivered is a collateral attack on the judgment of the court. Bragg v. Thompson, 177 Ark. 870, 9 S.W.2d 24 (1928).

County court's order of incorporation of a town that appears valid on its face was held not subject to collateral attack by action instituted by taxpayer over one month after forwarding and delivery of the order of incorporation to the secretary of state. Bridges v. Incorporated Town of Gateway, 192 Ark. 411, 91 S.W.2d 592 (1936).

Standing.

A person need not appear at the hearing on a petition for incorporation and contest the petition, as provided in § 14-38-103, in order to have standing to file a complaint for injunction in circuit court against such incorporation, as provided in this section. Campbell v. City of Cherokee Village W., 333 Ark. 310, 969 S.W.2d 179 (1998).

Cited: Town of Wrightsville v. Walton, 255 Ark. 523, 501 S.W.2d 241 (1973).

14-38-107. Hearing on complaint — Annulment.

  1. It shall be the duty of the court or judge to hear the complaint in a summary manner, receiving answers, affidavits, and proofs, as may be deemed pertinent.
  2. If it shall appear to the satisfaction of the court or judge that the proposed city or incorporated town does not contain the requisite number of inhabitants, that a majority of them have not signed the original petition, or that the limits of the proposed city or incorporated town are unreasonably large or small or are not properly and sufficiently described, then the court or judge shall order the record of the incorporated town to be annulled.
    1. It shall be the duty of the county recorder to endorse on the record the order so made and to certify and transmit to the Secretary of State a copy of the order.
    2. Thereupon, the record shall be of no effect, but the proceeding shall in no manner bar a subsequent petition to the county court, on the same subject, by complying with the provisions of this chapter.

History. Acts 1875, No. 1, § 39, p. 1; C. & M. Dig., § 7669; Pope's Dig., § 9791; A.S.A. 1947, § 19-106.

Case Notes

Interested Parties.

The plaintiff had standing to bring a complaint against the incorporation of a town and was entitled to a hearing on the complaint, notwithstanding that he failed to appear personally at a public hearing to object to the incorporation and did not file a written objection thereto, since as he was a resident of the affected area of incorporation, he was an interested person. Campbell v. City of Cherokee Village W., 333 Ark. 310, 969 S.W.2d 179 (1998).

Limits Large or Small.

Where evidence shows that the limits of a proposed municipality are unreasonably large, incorporation of the municipality will be denied. Arkansas & O. Ry. v. Busch, 223 Ark. 27, 264 S.W.2d 54 (1954).

A court errs in refusing to approve an incorporated area where the area is not unreasonably large based on size, population, and buildings located in it. White v. Lorings, 274 Ark. 272, 623 S.W.2d 837 (1981).

Majority of Inhabitants.

Where majority of inhabitants in area that seeks to incorporate into municipality have not concurred on incorporation, order of incorporation is properly set aside. Town of Wrightsville v. Walton, 255 Ark. 523, 501 S.W.2d 241 (1973).

While incorporation order can be entered based on petition of requisite number of electors, concurrence of majority of area inhabitants is required to override challenge to incorporation lodged under this section. Town of Wrightsville v. Walton, 255 Ark. 523, 501 S.W.2d 241 (1973).

Proper and Sufficient Description.

The fact that there is error in a trial court's finding that the description of the proposed corporated limits is vague and indefinite will not necessarily require reversal where the judgment is required to be affirmed on other grounds. Town of Ouita v. Heidgen, 247 Ark. 943, 448 S.W.2d 631 (1970).

Requisite Number of Inhabitants.

The term “inhabitants,” as used in this section, means qualified voters residing within the proposed municipality. Dunkum v. Moore, 265 Ark. 544, 580 S.W.2d 183 (1979).

Testimony of county clerk as to the number of qualified voters in an area proposed for incorporation is properly admitted, whether the testimony of the county clerk is considered opinion testimony of a lay witness or an opinion of an expert. Dunkum v. Moore, 265 Ark. 544, 580 S.W.2d 183 (1979).

14-38-108. First election of officers.

  1. Unless the agent of the petitioners, within thirty (30) days after a transcript shall be delivered as provided in § 14-38-104, shall be notified of a complaint having been made to the circuit court of the county, or a judge thereof, then, at the end of the thirty (30) days after the dismissal of the complaint, the agent shall give public notice, by posting a notice at three (3) or more public places within the limits of the city or incorporated town, of the time and place of holding the first election for officers of the city or incorporated town.
  2. The election shall be conducted and the officers elected and qualified in the manner prescribed by law in like cases.
  3. If the election shall be held at any other time than that prescribed by law for the regular election of the officers, the officers elected shall continue in office so long and in like manner as if they had been elected at the preceding period of the regular election.

History. Acts 1875, No. 1, § 40, p. 1; C. & M. Dig., § 7670; Pope's Dig., § 9792; A.S.A. 1947, § 19-107.

14-38-109. City or town lying in more than one county.

  1. Every city and incorporated town presently lying in more than one (1) county and presently exercising the rights, privileges, and powers of a municipal corporation, de facto or de jure, and heretofore incorporated or attempted to have been incorporated under any special act of the General Assembly of the State of Arkansas, or in any other manner incorporated under color of law, is declared to be a duly incorporated city or incorporated town of that classification which the city or town may presently enjoy as certified by the Secretary of State, as fully to all intents and purposes as though the city or town had been duly incorporated under the general laws of the State of Arkansas.
  2. Each act and deed heretofore done by any officers of the city or incorporated town in their official capacity under color of office for or in behalf of the city or incorporated town is cured, validated, and declared confirmed and shall have the same force and effect as though the city or incorporated town had been lawfully incorporated under the general statutes of the State of Arkansas.

History. Acts 1961, No. 131, § 1; A.S.A. 1947, § 19-109.

14-38-110, 14-38-111. [Repealed.]

Publisher's Notes. These sections, concerning area near national forest and relocation of community because of reservoir, were repealed by Acts 1995, No. 555, § 1. They were derived from the following sources:

14-38-110. Acts 1979, No. 472, §§ 1-3; A.S.A. 1947, §§ 19-101.1 — 19-101.3.

14-38-111. Acts 1981, No. 976, § 1; A.S.A. 1947, § 19-113.

14-38-112. [Repealed.]

Publisher's Notes. This section, concerning reactivation of inactive city or incorporated town, was repealed by Acts 2011, No. 135, § 1. The section was derived from Acts 1971, No. 711, § 1; A.S.A. 1947, § 19-112; Acts 2005, No. 2145, § 20; 2007, No. 1049, § 38; 2009, No. 1480, § 55.

Case Notes

Cited: Cash v. Holder, 293 Ark. 537, 739 S.W.2d 538 (1987).

14-38-113. [Repealed.]

Publisher's Notes. This section, concerning reorganization under different form of government, was repealed by Acts 2019, No. 105, § 1, effective July 24, 2019. The section was derived from Acts 1965, No. 497, § 1-3; 1975, No. 6, § 1; 1980 (1st Ex. Sess.), No. 21, § 1; 1980 (1st Ex. Sess.), No. 70, § 1; A.S.A. 1947, §§ 19-110, 19-111, 19-111n; Acts 2005, No. 2145, § 21; 2007, No. 1049, § 39; 2009, No. 1480, §§ 56, 57; 2017, No. 878, § 2.

14-38-114. Preservation of papers.

The Secretary of State shall receive and preserve in his or her office all papers transmitted to him or her in relation to the organization, incorporation, or annexation of territory to cities and towns.

History. Acts 1875, No. 1, § 85, p. 1; C. & M. Dig., § 7469; Pope's Dig., § 9502; A.S.A. 1947, § 19-108.

14-38-115. Alternative method of incorporation — Petition and election.

    1. In addition to the procedures for incorporating a city or town under §§ 14-38-101 — 14-38-108, the inhabitants of a part of any county not embraced within the limits of any city or incorporated town may apply to the county judge of the proper county to call for an election on the issue of incorporating a city or town and for electing municipal officials if the following conditions are met:
      1. The territory proposed to be incorporated has at least one thousand five hundred (1,500) inhabitants according to the most recent federal decennial census; and
      2. The county judge is presented a written petition that:
        1. Meets the requirements of subdivision (a)(2) of this section; and
        2. Is signed by at least twenty-five percent (25%) of the qualified voters who reside in the territory proposed to be incorporated.
    2. The petition shall:
      1. Describe the territory proposed to be embraced in the incorporated city or town and have attached to it an accurate map or plat of the territory;
      2. State the name proposed for the incorporated city or town; and
      3. Name the persons authorized to act in behalf of the petitioners in prosecuting the petition.
  1. The county judge shall not approve a petition for incorporation of any city or town if any portion of the territory proposed to be incorporated is ineligible under the criteria in § 14-38-101(b).
  2. If a petition for incorporation is presented to the county judge, it shall be filed in the office of the county clerk to be kept there, subject to the inspection of any persons interested, until the time appointed for a public hearing on the petition.
    1. Upon the filing of a petition for incorporation, the county judge shall set the time for a public hearing on the petition and shall communicate to the petitioners or their agent a time and place for the hearing that shall be not less than thirty (30) days after the filing of the petition.
      1. The petitioners or their agent shall publish a notice in some newspaper of general circulation in the county for not less than three (3) consecutive weeks.
      2. The notice shall contain the substance of the petition and state the time and place set for the public hearing.
  3. The county judge shall hold the public hearing at the time and place determined, and the procedure for a hearing set forth in § 14-38-103 shall be followed in the proceedings concerned in this section to the extent applicable.
    1. After the hearing, if the county judge is satisfied that the procedures for filing the petition for incorporation were followed, that the requirements for signatures under subsection (a) of this section have been met, that the limits of the territory to be incorporated have been accurately described and an accurate map was made and filed, and if the prayer of the petitioner is right and proper, then the county judge shall enter an order that:
      1. Grants the petition to hold an election on the date of the next election; and
      2. Sets the date of the next election as the date of the election on the issue of incorporating the city or town and electing officers.
    2. The order shall be recorded by the clerk of the county.
      1. If the county judge orders an election on the issue of incorporation, the county clerk shall notify the county election commission at least sixty (60) days before the election that the issue of incorporation shall also appear on the election ballot for a proposed city or incorporated town.
        1. No later than forty-five (45) days prior to the election, the county clerk shall identify all persons who reside within the territory proposed to be incorporated, and the county clerk shall determine the names and addresses of all qualified electors residing within that territory.
        2. The failure to identify all persons residing within the territory proposed to be incorporated or the failure to determine the names and addresses of all qualified electors residing within that territory shall not invalidate or otherwise affect the results of the election.
      2. All qualified electors residing within the territory to be incorporated shall be entitled to vote on the issue of incorporation.
      3. The county clerk shall give notice of the election by publication by at least one (1) insertion in some newspaper having a general circulation in the county.
      1. The county clerk shall prepare a list by precinct of all those qualified electors residing within the territory to be incorporated who are qualified to vote in that precinct and furnish that list to the election officials.
      2. The county clerk shall give notice of the voter registration deadlines at least forty (40) days before the election by ordinary mail to those persons whose names and addresses are on the list.
    1. The election on the issue of incorporation shall be held in accordance with the procedures established for other municipal elections, and the ballot for the election shall be printed substantially as follows:
    2. No later than seven (7) days following the election, the county clerk shall:
      1. Certify the election results;
      2. Record the election results in the county records; and
      3. File a certified copy with the county judge.
      1. If a majority of the qualified electors voting on the issue of incorporation in the election vote for the issue, then the county clerk shall no later than seven (7) days following the election:
        1. Certify the election results;
        2. Record the election results in the county records; and
        3. File a certified copy with the Secretary of State.
      2. Upon the county clerk's filing of the election results, the county judge shall:
        1. Approve the petition of incorporation as ratified by the voters; and
        2. Endorse on the petition an order that the city or incorporated town as named and described in the petition is organized and that the petition shall be granted.
        1. The order, petition, and map or plat shall be signed and delivered to the county recorder to record them in the proper records and to file and preserve in his or her office the original papers, having certified on the papers that they have been properly recorded.
          1. It shall also be the duty of the recorder to make out and certify, under his or her official seal, two (2) transcripts of the record.
          2. The recorder shall forward one (1) copy to the Secretary of State and deliver one (1) copy to the agent of the petitioners, with a certificate on the transcript that a similar transcript has been forwarded to the Secretary of State.
        1. The incorporation shall be effective on the date the order of the county judge is filed and recorded.
        2. The election of municipal officers shall be effective upon that date.
    1. If a majority of the qualified electors voting on the issue at the election vote against the issue of incorporation, the incorporation petition is null and void.
    1. If an order of the county judge provides for an election on the issue of incorporation, then the election of officers for the proposed city or town is to take place at the same time as the election on the issue of incorporation at the next general election.
    2. The county clerk shall notify the county election commission at least sixty (60) days before the election that the election of city or town officers shall also appear on the election ballot along with the issue of incorporation of the proposed city or incorporated town.
      1. The county election commission is responsible for holding the first election of officers for the proposed city or town.
      2. The type of officers to be elected and qualified and the election itself shall be conducted in the manner prescribed by law in like cases for a city or town of like size or class.
    3. If the election is held at any other time than that prescribed by law for the regular election of the officers of the city or town of like size or class, the officers elected shall continue in office as long as and in the same manner as if they had been elected at the preceding period of the regular election of officers of the city or town of same size or class.

“[ ] FOR THE INCORPORATION OF THE CITY (OR TOWN) OF (NAME OF PROPOSED CITY OR INCORPORATED TOWN), ARKANSAS.

[ ] AGAINST THE INCORPORATION OF THE CITY (OR TOWN) OF (NAME OF PROPOSED CITY OR INCORPORATED TOWN), ARKANSAS.”

History. Acts 2005, No. 1237, § 1; 2019, No. 932, §§ 2, 3.

Amendments. The 2019 amendment substituted “one thousand five hundred (1,500) inhabitants” for “four thousand (4,000) inhabitants” in (a)(1)(A); and deleted “general” preceding “election” in (f)(1)(A) and (f)(1)(B).

Case Notes

Cited: Brock v. Townsell, 2009 Ark. 224, 309 S.W.3d 179 (2009).

14-38-116. Map required with Arkansas Geographic Information Systems Office upon incorporation or disincorporation.

Before an entity undertakes an incorporation or disincorporation proceeding under this chapter, the entity shall coordinate with the Arkansas Geographic Information Systems Office for preparation of legal descriptions and digital mapping for the relevant incorporated or unincorporated areas.

History. Acts 2015, No. 914, § 1.

14-38-117. Effective date of incorporation required.

    1. The county court order of incorporation affecting territory under this chapter shall include the effective date upon which the petition for incorporation is granted and the municipality is considered organized.
    2. County court orders that fail to include a specified effective date in the order shall require using the date of the county clerk's file mark as the effective date for all purposes.
  1. The effective date specified in the order of incorporation issued under § 14-38-104 is the official effective date to be used by any county or state official charged with recording, forwarding, maintaining, or instituting the order of incorporation.
    1. In the event of a circuit court challenge to the county court order of incorporation, the final order of the circuit court shall specify a change to the effective date, if any.
    2. In the absence of a specific attestation, the county court-ordered effective date is the effective date.

History. Acts 2017, No. 653, § 1.

Chapter 39 Surrender of Charter by City of the Second Class or Incorporated Town

Effective Dates. Acts 1883, No. 22, § 12: effective on passage.

Acts 1957, No. 224, § 2: Mar. 12, 1957. Emergency clause provided: “It has been found and is declared by the General Assembly of the State of Arkansas that there are several inactive incorporated towns in this State, that the keeping of records of such inactive incorporated towns is an unnecessary expense to the State of Arkansas, that this Act eliminates this unnecessary expense by revoking the Charters of such inactive towns, and that its immediate effect is needed in order to authorize the elimination of such expense immediately. Therefore, an emergency is declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and welfare, shall take effect and be in full force from and after the date of its passage and approval.”

Identical Acts 2016 (3rd Ex. Sess.), Nos. 2 and 3, § 128: July 1, 2016.

Acts 2017, No. 655, § 5: Mar. 27, 2017. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that municipal boundary changes shall be effective by December 31, 2017, and shall be reported to the United States Bureau of the Census by May 31, 2018, to be assured of inclusion in the 2020 Federal Decennial Census; that there is a need for counties and municipalities to give timely, complete, and accurate written notice to the Secretary of State of municipal boundary changes to ensure an accurate census; and that any modification to statutes after December 31, 2018, would be ineffective in ensuring an accurate census in 2020. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Research References

Am. Jur. 56 Am. Jur. 2d, Mun. Corp., § 91.

C.J.S. 62 C.J.S., Mun. Corp., § 101 et seq.

87 C.J.S., Towns, § 17.

14-39-101. Authority generally.

  1. The charters, and all the amendments thereto, of all municipal corporations within this state designated as cities of the second class and incorporated towns may be surrendered, all offices held thereunto abolished, and the territory and inhabitants thereof remanded to the government of this state in the manner provided in this chapter.
  2. Before a municipal corporation undertakes a surrender of charter under this chapter, the municipal corporation shall coordinate with the Arkansas Geographic Information Systems Office for preparation of legal descriptions and digital mapping of the relevant territory.

History. Acts 1883, No. 22, § 1, p. 33; C. & M. Dig., § 7638; Pope's Dig., § 9760; A.S.A. 1947, § 19-501; Acts 2017, No. 655, § 1.

Amendments. The 2017 amendment added (b).

14-39-102. Revocation due to inactivity.

    1. The charter of any incorporated town or city of the second class that has been inactive as an incorporated place for five (5) years or longer shall be revoked by order of the county court of the county in which the incorporated town or city of the second class is located.
    2. Upon petition by the prosecuting attorney of the county, the county court of the county may make and enter an order revoking any charter of an incorporated town or city of the second class upon a finding that the town or city will no longer be in existence.
  1. When the county court revokes the charter of any incorporated town or city of the second class, the court shall order the clerk of the court to make out and certify under the official seal of the clerk, a transcript of the order, which the clerk shall forward to the Secretary of State, to be kept on file in the office of the Secretary of State. The clerk shall also forward a copy to the Arkansas State Archives.

History. Acts 1883, No. 22, § 2, p. 33; C. & M. Dig., §§ 7639-7642; Pope's Dig., §§ 9761-9764; Acts 1957, No. 224, § 1; 1983, No. 185, § 1; A.S.A. 1947, § 19-502; Acts 2016 (3rd Ex. Sess.), No. 2, § 122; 2016 (3rd Ex. Sess.), No. 3, § 122.

A.C.R.C. Notes. Identical Acts 2016 (3rd Ex. Sess.), Nos. 2 and 3, § 1, provided:

“(a) The General Assembly finds:

“(1) State government provides vital functions that impact the lives of Arkansas citizens on a daily basis;

“(2) While these functions are important, it is equally important to ensure that state government operates efficiently and effectively to eliminate unnecessary spending of tax dollars and provide timely and quality services to Arkansas citizens; and

“(3) Issues such as the administrative organization of a governmental entity, the appointment structure of a governmental entity's governing board, and extraneous duties assigned to governmental entities hamper the operation of state government and result in unnecessary expenses and delays in the provision of state services.

“(b) It is the intent of this act to amend provisions of law applicable to certain agencies, task forces, committees, and commission to promote efficiency and effectiveness in the operations of state government as a whole.”

Amendments. The 2016 (3rd Ex. Sess.) amendment by identical acts Nos. 2 and 3 substituted “State Archives” for “History Commission” in (b).

Cross References. Arkansas History Commission, § 13-3-101 et seq.

Case Notes

In General.

The 1957 amendment of this section expressly repealed the previous provision (Acts 1883, No. 22, § 2) governing surrender of town charters and now sets out the exclusive procedure for such surrender. Simons v. Davis, 263 Ark. 574, 566 S.W.2d 730 (1978).

14-39-103. Surrender and repeal of charter.

    1. When the county court shall have made the order mentioned in § 14-39-102, the charter, and all amendments thereto, of any such municipal corporation shall be deemed to be surrendered and repealed and shall then cease to exist.
    2. The population and territory thereof theretofore governed under and by virtue of the charter and the amendments thereto shall then be resolved back into the body of the state.
    3. All offices theretofore held under, and by force of, the charter and the amendments thereof shall be abolished.
    4. All power of taxation, in any form whatever, theretofore vested in, or exercised by, the authorities of the municipal corporation by virtue of its charter and the amendments thereto shall then be forever withdrawn and reserved to the General Assembly.
      1. The public buildings, squares, promenades, wharves, streets, alleys, parks, fire engines, hose and carriages, horses and wagons, engine houses, engineer instruments, and all other real, personal, or mixed property theretofore used or held by the municipal corporation for municipal purposes shall be transferred to the custody and control of the state, to remain public property as it has always been for the uses to which the property has been applied.
      2. The county court of the counties, in which the extinct municipal corporations, respectively, were situated, shall take immediate possession of and control the same until otherwise provided by law.
  1. From and after the surrender and repeal of the charter as provided in this section, no person holding office under and by virtue of the charter of the municipal corporation shall exercise or attempt to exercise any of the powers or functions of that office.

History. Acts 1883, No. 22, § 3, p. 33; C. & M. Dig., §§ 7643, 7644; Pope's Dig., §§ 9765-9766; A.S.A. 1947, § 19-503.

14-39-104. Appointment of receiver and back-tax collector.

  1. As to all municipal corporations in this state whose charters may be surrendered and repealed under the provisions of this chapter, the Governor shall appoint an officer for the extinct corporations, respectively, to be known as a receiver and back-tax collector.
  2. The receiver and back-tax collector shall take the oath required of other collectors of the public revenue and shall give bond with good sureties, to be approved by the county court of the county in which the extinct corporations were situated, in such sum as the court may prescribe.

History. Acts 1883, No. 22, § 4, p. 33; C. & M. Dig., § 7645; Pope's Dig., § 9767; A.S.A. 1947, § 19-504.

Cross References. Self-Insured Fidelity Bond Program, § 21-2-701 et seq.

14-39-105. Duties of receiver, etc.

  1. As soon as appointed and qualified, the receiver and back-tax collector shall enter upon the duties of his or her office.
  2. It shall be the receiver and back-tax collector's duty, and he or she is empowered, to take possession of all books, papers, and documents pertaining to the assessment and collection of taxes embraced by this chapter. He or she shall also take possession of all the private property, if any, belonging to the extinct corporation, respectively.

History. Acts 1883, No. 22, § 5, p. 33; C. & M. Dig., § 7646; Pope's Dig., § 9768; A.S.A. 1947, § 19-505.

14-39-106. Reports and collections by receiver, etc.

  1. Every six (6) months the receiver and back-tax collector shall make to the circuit court, in the county in which the extinct corporation was situated, a full, clear, and complete statement showing all taxes collected and settled, and all in his or her hands that remain to be collected and settled.
    1. The receiver and back-tax collector, at the end of each month, shall pay into the State Treasury the whole sum collected or received by him or her, less his or her compensation.
    2. He or she shall distinguish, in making such payments, the respective sources from which the moneys paid in are derived, showing what is collected from taxes for general purposes and what is collected for special purposes, and designating the particular or special purpose, so that the moneys may be kept separate in the State Treasury in order that the Treasurer of State may pay them according to any lien, priority or equity, which may be declared by any court touching any of the funds in favor of any creditor or class of creditors.

History. Acts 1883, No. 22, § 6, p. 33; C. & M. Dig., §§ 7647, 7648; Pope's Dig., §§ 9769, 9770; A.S.A. 1947, § 19-506.

14-39-107. Compensation of receiver, etc.

The receiver and back-tax collector shall receive such compensation for his or her services as shall be fixed by the county court of the county in which the extinct corporation was situated.

History. Acts 1883, No. 22, § 11, p. 33; C. & M. Dig., § 7661; Pope's Dig., § 9783; A.S.A. 1947, § 19-511.

14-39-108. Proceedings to collect revenue due.

  1. For the purpose of collecting the revenue embraced in the provisions of this chapter, the receiver and back-tax collector is empowered and authorized to file a general creditors' bill in the name of the state, in behalf of all creditors, against all the delinquent taxpayers who owed taxes to the extinct corporation at the time of the surrender or repeal of its charter, which shall be filed in the circuit court, held in and for the county in which the extinct corporation was situated.
    1. All the delinquents in any one (1) county shall be embraced in one (1) summons to answer.
    2. For the issuance of the summons, the clerk shall receive a fee of five cents (5¢) for each defendant named in the summons, except for the first, and for that the fee allowed by law in other cases. However, he or she shall not receive a fee exceeding twenty dollars ($20.00) for the summons.
    3. The sheriff, for serving the summons, shall receive for each defendant ten cents (10¢), except for the first, and for that the fee allowed for like services in other cases.
  2. Publication for nonresidents shall embrace in the same publication, if practicable, all nonresident defendants, the object being to make one (1) proceeding embrace the whole taxes of any one of the extinct corporations.
  3. All pending suits in favor of any of the extinct corporations are to be revived in the name of the state and consolidated with the general proceedings provided for in this chapter and when so consolidated shall form part of the general proceeding.
    1. The court in which the proceeding may be instituted shall have power to settle and adjust all equities, priorities, and liens and to give all relief, both to the defendants and creditors, that might be given if there were as many separate suits as there are creditors and delinquent taxpayers.
      1. The court shall have power to enforce all liens upon property for the payment of the taxes and to order and make all sales of property necessary to the collection of the taxes.
      2. The taxes embraced by this chapter, and which it provides for, are all taxes imposed by extinct municipal corporations up to the time of the surrender or repeal of their respective charters, and none other.

History. Acts 1883, No. 22, § 7, p. 33; C. & M. Dig., §§ 7649-7654; Pope's Dig., §§ 9771-9776; A.S.A. 1947, § 19-507.

14-39-109. Filing of claims — Appeals.

  1. Publication shall make all creditors parties, with the right to relief as fully as if especially named. At any time, they may file with the clerks of the courts their claims, or attested copies, retaining the original, if they desire. However, the court may order that the original be produced and placed in the custody of the clerk.
    1. The simple filing of claims, respectively, attested by the affidavit of the owner or his or her agent or attorney shall be proof of the claims in common form and, if not contested, entitles him or her to payment pro rata.
    2. For administering the oath in proving the claims, in common form and, filing them, the clerk shall receive the sum of ten cents (10¢) to be paid at the time of making the oath and filing the claim.
    1. If any creditor or receiver and back-tax collector shall desire to contest the validity, in whole or in part, of any claim filed in common form, he or she may do so in a summary way, in the progress of the cause.
      1. The opposing parties in these contests shall reduce to writing the facts that are necessary to their determination and file them.
      2. When filed, they shall become part of the record, and the court shall have power, upon motion and in a summary way, to hear and determine all questions of priority of payment in the progress of the cause.
    1. When any party is dissatisfied with the decision of any litigated question, he or she may have the question reheard, upon appeal or writ of error in the Supreme Court. However, only so much of the record as pertains to that particular litigation shall form the transcript and record for the appellate court.
    2. The costs shall be paid by the parties to such appeal as the appellate court may direct unless the receiver and back-tax collector is a party to the litigation on behalf of creditors generally. In that case, if the appellate court thinks proper, the costs may be charged to the whole or to some particular fund, as right and justice may require.

History. Acts 1883, No. 22, § 8, p. 33; C. & M. Dig., §§ 7655-7658; Pope's Dig., §§ 9777-9780; A.S.A. 1947, § 19-508.

14-39-110. Payment of funds collected.

Funds collected under this chapter shall be paid out by the Treasurer of State from time to time to those entitled thereto and in such manner as the circuit court may adjudge and decree, on the warrant of the receiver and back-tax collector, countersigned by the judge of the court.

History. Acts 1883, No. 22, § 10, p. 33; C. & M. Dig., § 7660; Pope's Dig., § 9782; A.S.A. 1947, § 19-510.

14-39-111. Disposition of private property.

  1. The receiver and back-tax collector shall make to the circuit court a full and complete statement of all the private property, if any, belonging to the extinct corporations, respectively. All such property shall be considered by the court as a part of the subject matter of the creditor's bill.
  2. The court shall make all orders and decrees as may be deemed necessary and proper for the sale thereof and shall decree the application of the proceeds of the sale to the payment of the debts of the extinct corporations, respectively.

History. Acts 1883, No. 22, § 9, p. 33; C. & M. Dig., § 7659; Pope's Dig., § 9781; A.S.A. 1947, § 19-509.

Chapter 40 Annexation, Consolidation, and Detachment by Municipalities

Research References

ALR.

Right of one governmental subdivision to challenge annexation proceedings by another such subdivision. 17 A.L.R.5th 195.

Am. Jur. 56 Am. Jur. 2d, Mun. Corp., § 50 et seq.

C.J.S. 62 C.J.S., Mun. Corp., § 38 et seq.

Subchapter 1 — General Provisions

Effective Dates. Acts 2017, No. 653, § 3: Mar. 27, 2017. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that an urgent need exists to clarify the official effective dates of municipal boundary actions, to aid the United States Bureau of the Census in the bureau's decennial census counts, and to maintain more accurate records regarding municipal boundary changes; and that this act is immediately necessary to clarify the effective dates of municipal boundary changes. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety, shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2017, No. 655, § 5: Mar. 27, 2017. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that municipal boundary changes shall be effective by December 31, 2017, and shall be reported to the United States Bureau of the Census by May 31, 2018, to be assured of inclusion in the 2020 Federal Decennial Census; that there is a need for counties and municipalities to give timely, complete, and accurate written notice to the Secretary of State of municipal boundary changes to ensure an accurate census; and that any modification to statutes after December 31, 2018, would be ineffective in ensuring an accurate census in 2020. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

14-40-101. Map required with Arkansas Geographic Information Systems Office upon annexation, consolidation, or detachment.

Before an entity undertakes an annexation, consolidation, or detachment proceeding under this chapter, the entity shall coordinate with the Arkansas Geographic Information Systems Office for preparation of legal descriptions and digital mapping for the relevant annexation, consolidation, and detachment areas.

History. Acts 2015, No. 914, § 2.

Case Notes

Compliance.

City complied with the statutory requirements for annexation of an enclave where the passage of the annexation ordinance was merely preparation for “undertaking annexation”, and therefore the city contacted the Arkansas Geographic Information Systems Office (GIS) before it “undertook” the annexation, as required by this section. Even if the ordinance amounted to “undertaking” the annexation, the ordinance did nothing and was invalid before its post-enactment publication. Thus, the city's contacting GIS within 48 hours of the ordinance's passage was in accordance with the statute. Houston v. City of Hot Springs, 2018 Ark. App. 196, 546 S.W.3d 545 (2018).

14-40-102. Effective date of annexation, consolidation, or detachment required.

    1. An annexation, consolidation, or detachment action that affects territory under this chapter shall include in its ordinance or resolution the date upon which the annexation, consolidation, or detachment is considered final.
    2. An ordinance or resolution that fails to include a specified effective date shall use the date of the municipal clerk or municipal recorder file mark or attestation, whichever is later in time, as the effective date for all purposes.
    1. The date specified in the ordinance or resolution is the official effective date of the annexation, consolidation, or detachment.
    2. An amendment to the ordinance or resolution shall carry its own effective date or modification of the effective date.
    3. An amendment that fails to include a specified effective date shall use the date of the municipal clerk or municipal recorder file mark or attestation, whichever is later in time, as the effective date of the amendment for all purposes.
    1. If a municipality initiates an annexation, consolidation, or detachment action under § 14-40-204 or § 14-40-501, the effective date shall be specified.
    2. An ordinance or resolution that fails to include a specified effective date shall use the date of the municipal clerk or municipal recorder file mark or attestation, whichever is later in time, as the effective date for all purposes.
  1. The effective date specified in an ordinance or resolution issued under this chapter is the official effective date to be used by any county or state official charged with recording, forwarding, maintaining, or instituting the ordinance or resolution.
    1. In the event of a circuit court challenge to a county court order approving a municipal boundary change under this chapter, the final order of the circuit court shall specify a change to the effective date, if any.
    2. In the absence of a specific attestation, the municipally designated effective date is the effective date.

History. Acts 2017, No. 653, § 2.

14-40-103. Notice to Secretary of State upon municipal boundary change — Definitions.

  1. As used in this section:
      1. “Municipal boundary change” means an incorporation, annexation, consolidation, detachment, surrender of charter, revocation of charter, or municipal disincorporation under this subchapter, § 14-38-101 et seq., or § 14-39-101 et seq.
      2. “Municipal boundary change” includes court orders, amendments, and judicial corrections of boundaries or property descriptions; and
    1. “Municipality” means a city of the first class, a city of the second class, or an incorporated town.
    1. Within forty-five (45) days of the effective date of any ordinance or resolution effecting a municipal boundary change under this subchapter, § 14-38-101 et seq., or § 14-39-101 et seq., the city clerk shall provide written notice, along with complete documentation, to the county clerk of each county in which the territory is affected.
    2. Within thirty (30) days of receipt from a municipality, each respective county clerk shall provide written notice to the Secretary of State of filings and records related to the municipal boundary change as required by statute or by the Secretary of State, to be kept by the county clerk, and shall provide those records with notice delivered to the Secretary of State.
      1. Within fourteen (14) days of receipt of a summons, complaint, circuit court order, or court judgment concerning a municipal boundary change, each municipality shall notify in writing the Secretary of State and the respective county clerk of each county in which the territory is or may be affected.
      2. Upon receipt of notice of a court challenge, the county clerk shall provide written notice to the Secretary of State of a summons, complaint, circuit court order, or court judgment that may affect a municipal boundary change.
  2. Absent notice of a court challenge, within thirty (30) days of receipt of a notice of a municipal boundary change, the Secretary of State shall forward appropriate notice and a copy of the appropriate records to the:
    1. Arkansas Geographic Information Systems Office;
    2. Tax Division of the Arkansas Public Service Commission;
    3. Arkansas Department of Transportation; and
    4. Department of Finance and Administration.
  3. Within thirty (30) days of receipt of notice of a municipal boundary change from the Secretary of State, the Arkansas Geographic Information Systems Office shall provide notice and the appropriate electronic records to the:
    1. Tax Division of the Arkansas Public Service Commission;
    2. Arkansas Department of Transportation; and
    3. Department of Finance and Administration.
  4. Within thirty (30) days of receipt of notice from the Arkansas Geographic Information Systems Office or the Secretary of State of a municipal boundary change, the Arkansas Public Service Commission shall file and preserve the appropriate records and shall notify the entities under the jurisdiction of the Arkansas Public Service Commission that have property in the municipality of the annexation.
  5. The Secretary of State may prescribe documents for providing appropriate notice and may prescribe a mandatory form for providing sufficient notice.

History. Acts 2017, No. 655, § 2; 2019, No. 383, § 6.

Amendments. The 2019 amendment substituted “Municipality” for “Municipal corporation” in (a)(2); and substituted “jurisdiction of the Arkansas Public Service Commission” for “commission's jurisdiction” in (e).

Subchapter 2 — Annexation Generally

Effective Dates. Acts 1887, No. 14, § 2: effective on passage.

Acts 1939, No. 401, § 2: became law without Governor's signature, Mar. 30, 1939. Emergency clause provided: “This act being necessary for the public peace, health and safety, an emergency is declared to exist and this act shall be in force and effect from and after its passage.”

Acts 1963, No. 88, § 3: Feb. 27, 1963. Emergency clause provided: “It being found that the lack of definite jurisdiction over annexation in counties to which this Act is applicable is creating dangerous hazards for lack of adequate fire protection and water supply, and is threatening to hamper the industrial growth of such counties, an emergency is hereby declared to exist and this Act shall be effective from and after its passage and approval.”

Acts 2003, No. 1089, § 2: effective retroactively to July 4, 1996.

Acts 2015, No. 826, § 2: Mar. 29, 2015. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that there are some property owners in Arkansas with property that crosses the boundary of two (2) municipalities; that the physical location of a building on the property is sometimes on the boundary line, causing sales tax and other issues for the property owners; and that this act is immediately necessary to ensure that there is clarity to the property owner and to the municipalities as to which municipality is the legal location of the property. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Case Notes

Constitutionality.

This subchapter is not an unconstitutional attempt to delegate legislative authority. City of Lowell v. City of Rogers, 345 Ark. 33, 43 S.W.3d 742 (2001).

14-40-201. Territory contiguous to county seat.

In counties having two (2) levying courts or in counties having a population of not less than thirteen thousand two hundred fifty (13,250) and not more than fourteen thousand (14,000) according to the most recent federal census where territory contiguous to the county seat needs fire, police, water, and sanitary services of that town to protect the public health, safety, and convenience of inhabitants of both the town and its contiguous territory, the council of any such incorporated town or city of the second class shall have the power to annex the territory contiguous thereto by ordinance, passed and published in the manner provided by law for the passage and publication of ordinances.

History. Acts 1939, No. 401, § 1; 1941, No. 469, § 1; A.S.A. 1947, § 19-308.

Case Notes

Cited: Gay v. City of Springdale, 298 Ark. 554, 769 S.W.2d 740 (1989).

14-40-202. Territory annexed in different judicial district.

  1. In any county in this state in which there is more than one (1) judicial district of its county court with a separate levying or quorum court in and for each of the districts, lands lying in one (1) of the districts may be annexed to a city or incorporated town lying in another of the districts, and be and become a part of the city or incorporated town, if otherwise the lands may be annexed, in the manner provided by law.
  2. For the purposes of this section, the county court of the district in which the city or incorporated town is located is vested with jurisdiction over that portion of the county where lie the lands to be annexed in the hearing and determination of the annexation.
  3. Appeals from any orders therein of the county court shall be taken to the circuit court of the same district, all as in the manner provided by law.
    1. In the event of any such annexation, any lands so annexed shall thereafter be and become, for all purposes provided by law, including local option election status, a part of the same district in which the city or incorporated town is located.
    2. Thereafter the county, circuit, and district courts of the district shall have and exercise jurisdiction over the annexed lands and the residents thereof the same as if the lands had been located in the district when it was created.

History. Acts 1963, No. 88, § 1; A.S.A. 1947, § 19-328; Acts 2003, No. 1089, § 1.

A.C.R.C. Notes. Ark. Const. Amend. 80, § 19(B)(2) provided:

“District Courts shall have the jurisdiction vested in Municipal Courts, Corporation Courts, Police Courts, Justice of the Peace Courts, and Courts of Common Pleas at the time this Amendment takes effect. District Courts shall assume the jurisdiction of these courts of limited jurisdiction and other jurisdiction conferred in this Amendment on January 1, 2005. City Courts shall continue in existence after the effective date of this Amendment unless such City Court is abolished by the governing body of the city or by appropriate action of the General Assembly. Immediately upon abolition of such City Court, the jurisdiction of the City Court shall vest in the nearest District Court in the county where the city is located.”

Cross References. Qualifications of justices and judges, Ark. Const. Amend. 80.

Case Notes

Constitutionality.

This section satisfies Ark. Const. Amend. 14 as it makes reasonable classification and legislation relating to administration of justice and is not local. Smalley v. City of Fort Smith, 239 Ark. 39, 386 S.W.2d 944 (1965).

14-40-203. Assignment of annexed territory to ward.

  1. When any territory shall have been annexed to any incorporated town or city, it may be, and it is, the duty of the town or city council of the incorporated town or city to attach and incorporate the annexed territory to and in one (1) or more wards of the incorporated town or city lying adjacent thereto, which may be done by ordinance duly passed by a majority of the members elected to the council.
  2. The territory so assigned and attached to a ward shall immediately be considered and become a part thereof as fully as any other part of it.

History. Acts 1887, No. 14, § 1, p. 17; C. & M. Dig., § 7470; Pope's Dig., § 9503; A.S.A. 1947, § 19-309.

14-40-204. Annexation of city-owned parks and airports.

    1. From and after the passage of this subsection, all city-owned parks and city-owned airports in cities of populations between forty thousand (40,000) and eighty thousand (80,000) in counties whose population is one hundred forty thousand (140,000) or over are annexed to the cities owning the parks and airports.
    2. This subsection shall apply to other cities and counties in the future meeting the population requirements, as shown by the federal census.
  1. All city-owned parks owned by cities in this state having a population of not less than six thousand (6,000) and not more than six thousand four hundred fifty (6,450) and located in counties having a population of not less than twenty-two thousand six hundred (22,600) and not more than twenty-two thousand eight hundred (22,800), according to the most recent federal census, are annexed to the cities owning the parks.
  2. All city-owned parks with a minimum of thirty (30) acres and owned by cities in this state having a population of not less than fifteen thousand (15,000) and not more than eighteen thousand (18,000) and located in counties having a population of not less than two hundred twenty thousand (220,000) and not more than two hundred sixty thousand (260,000), according to the most recent federal decennial census, are annexed to the cities owning the parks.

History. Acts 1951, No. 295, § 1; 1959, No. 49, § 1; A.S.A. 1947, §§ 19-323, 19-324; Acts 2017, No. 192, § 1.

Publisher's Notes. In reference to the term “the passage of this subsection,” Acts 1951, No. 295, was signed by the Governor on March 19, 1951, and became effective on June 7, 1951.

Amendments. The 2017 amendment added (c).

14-40-205. Territory within one-half mile of state park.

  1. The annexation laws of this state do not apply in the area within one-half mile of the boundaries of a state park located in a county with a population in excess of three hundred fifty thousand (350,000) unless:
    1. The annexation is approved by a majority of the voters residing within the one-half-mile area;
    2. The area to be annexed is on the opposite side of a navigable river from the state park;
    3. The area to be annexed is on the opposite side of and south of an existing railroad right-of-way from the state park; or
    4. The area to be annexed contains a public or private school.
    1. An order of the county court issued in contradiction of this section is void if the order is issued after August 1, 1997.
    2. A county court order issued after August 1, 1997, annexing an area on the opposite side of and south of an existing railroad right-of-way from a state park is valid and not void.

History. Acts 1997, No. 1216, § 1; 1999, No. 1495, § 1; 2017, No. 536, § 1.

Amendments. The 2017 amendment redesignated former (a) as the introductory language of (a) and (a)(1) through (a)(3); in the introductory language of (a), substituted “The annexation laws of this state do not apply” for “None of the annexation laws of this state shall have any application” and “a state park” for “any state park”, and deleted “persons” following “(350,000)”; substituted “the one-half mile” for “such one-half mile” in (a)(1); added (a)(4); in (b)(2), substituted “A county court order issued” for “However, if any county court order was issued” and “is valid and not void” for “then the county court order is declared valid and not void” at the end; and made stylistic changes.

14-40-206. Territory annexed with prior county permit or approval in use.

If a county had issued a permit or approval for construction, operation, or development before a municipal annexation proceeding begins for a project in the area that the municipality intends to annex, the municipality shall honor and give full effect to county permits and approvals on lands to be annexed.

History. Acts 2013, No. 1506, § 1.

14-40-207. Building situated or to be situated upon municipal boundary line — Option to choose municipal location.

    1. A property owner who has a building that is currently situated upon the boundary line between two (2) municipalities may choose either one (1) of the municipalities as the legal location of the building.
    2. When the expansion of a building will result in the expansion's being situated upon the boundary line between two (2) municipalities, the property owner of the building may choose either one (1) of the municipalities as the legal location of the building if the property owner has first obtained the necessary authorizations or permits for expansion of the building from the municipality upon which the building is located before the expansion or from the municipality upon which the building expansion will be located.
    1. The property owner shall provide written notice to the governing body of both municipalities as to which municipality is chosen under subsection (a) of this section.
    2. The written notice to the chosen municipality shall include a request for annexation into the chosen municipality.
  1. The property upon which the building is situated or will be situated after expansion and up to two (2) acres of the property owner's property surrounding the building and expansion shall be annexed into the municipality chosen by the owner under subsection (a) of this section.
  2. Within sixty (60) days of receipt of the written notice under subsection (b) of this section, the municipality chosen by the owner under subsection (a) of this section shall coordinate with the Arkansas Geographic Information Systems Office for preparation of legal descriptions and digital mapping for the relevant area.

History. Acts 2015, No. 826, § 1.

14-40-208. Annexation of territory under municipal territorial jurisdiction.

  1. If a municipality states its intent by resolution or ordinance to annex a specifically defined territory or portion of the territory over which it is exercising territorial jurisdiction under § 14-56-413, the municipality shall initiate annexation proceedings within five (5) years of the stated intent.
    1. During the five (5) years under subsection (a) of this section, the municipality may continue to exercise its territorial jurisdiction under § 14-56-413, including the defined territory specified within its intent to annex.
    2. If the municipality does not initiate annexation proceedings of the territory specified within its intent to annex within five (5) years of the effective date of the resolution or ordinance under subsection (a) of this section, the municipality is prohibited from again exercising territorial jurisdiction over the territory specified within its intent to annex for the next five (5) years.

History. Acts 2015, No. 845, § 1.

Subchapter 3 — Municipal Annexation of Contiguous Lands

Effective Dates. Acts 1971, No. 298, § 6: emergency clause failed to pass. Emergency clause provided: “It is hereby found and determined by the General Assembly that many cities and towns have grown beyond their legal boundaries and for the betterment of the entire State a modernized annexation law is drastically needed. Therefore, an emergency is hereby declared to exist and this Act, being necessary for the immediate protection of the public peace, health and safety, shall take effect immediately upon its passage and approval.”

Acts 1975, No. 309, § 5: became law without Governor's signature, Mar. 4, 1975. Emergency clause provided: “It is hereby found and determined by the General Assembly that many cities and towns have grown beyond their legal boundaries and for the betterment of the entire State a modernized annexation law is drastically needed. Therefore, an emergency is hereby declared to exist and this Act, being necessary for the immediate protection of the public peace, health and safety, shall take effect immediately upon its passage and approval.”

Acts 1975, No. 904, § 3: Apr. 7, 1975. Emergency clause provided: “It is hereby found and determined by the General Assembly that many cities and towns have grown beyond their legal boundaries and for the betterment of the entire State a modernized annexation law is drastically needed. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate protection of the public peace, health and safety shall take effect immediately upon its passage and approval.”

Acts 2009, No. 1480, § 117: Apr. 10, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act makes various revisions to Arkansas election laws that are designed to improve the administration of elections and special elections and that these revisions should be implemented as soon as possible so that the citizens of this state may benefit from improved election procedures. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Research References

U. Ark. Little Rock L.J.

Survey of Arkansas Law, Public Law, 1 U. Ark. Little Rock L.J. 230.

Owen, Note: Local Government — Municipal Corporation — Annexation Invalidation, 2 U. Ark. Little Rock L.J. 105.

Hardin, Survey of Arkansas Law: Public Law, 2 U. Ark. Little Rock L.J. 281.

Arkansas Law Survey, Scroggins, Property, 9 U. Ark. Little Rock L.J. 199.

Case Notes

Constitutionality.

This subchapter is not unconstitutional because the burden of going forward with proof is placed upon property owners objecting to annexation. Floyd v. Town of Mayflower, 256 Ark. 992, 511 S.W.2d 490 (1974).

14-40-301. Construction.

The provisions of this subchapter shall not be construed to give any municipality the authority to annex any portion of another city or incorporated town.

History. Acts 1971, No. 298, § 4; A.S.A. 1947, § 19-307.4.

Case Notes

Cited: Gay v. City of Springdale, 298 Ark. 554, 769 S.W.2d 740 (1989); Utley v. City of Dover, 352 Ark. 212, 101 S.W.3d 191 (2003).

14-40-302. Authority — Exceptions.

  1. By vote of two-thirds (2/3) of the total number of members making up its governing body, any municipality may adopt an ordinance to annex lands contiguous to the municipality if the lands are any of the following:
    1. Platted and held for sale or use as municipal lots;
    2. Whether platted or not, if the lands are held to be sold as suburban property;
    3. When the lands furnish the abode for a densely settled community or represent the actual growth of the municipality beyond its legal boundary;
    4. When the lands are needed for any proper municipal purposes such as for the extension of needed police regulation; or
    5. When they are valuable by reason of their adaptability for prospective municipal uses.
    1. Contiguous lands shall not be annexed if they:
      1. At the time of the adoption of the ordinance, have a fair market value of lands used only for agricultural or horticultural purposes and the highest and best use of the lands is for agricultural or horticultural purposes;
      2. Are lands upon which a new community is to be constructed with funds guaranteed, in whole or in part, by the federal government under Title IV of the Housing and Urban Development Act of 1968 or under Title VII of the Housing and Urban Development Act of 1970;
      3. Are lands that do not include residents, except as agreed upon by the mayor and county judge; or
      4. Are lands that do not encompass the entire width of public road right-of-way or public road easements within the lands sought to be annexed, except as agreed upon by the mayor and county judge.
    2. Any person, firm, corporation, partnership, or joint venturer desiring to come within this exclusion must have received from the United States Department of Housing and Urban Development a letter of preliminary commitment to fund the new community under one (1) of the federal acts.
    3. If any lands are annexed that are being used exclusively for agricultural purposes, the lands may continue to be used for such purposes so long as the owner desires and the lands shall be assessed as agricultural lands.
  2. However, a municipality having a population of fewer than one thousand (1,000) persons shall not annex in any one (1) calendar year contiguous lands in excess of ten percent (10%) of the current land area of the municipality.
    1. Whenever practicable, a city or incorporated town shall annex lands that are contiguous and in a manner that does not create enclaves.
    2. As used in this section, “enclave” means an unincorporated improved or developed area that is enclosed within and bounded on all sides by a single city or incorporated town.

History. Acts 1971, No. 298, § 1; 1975, No. 309, § 1; 1975, No. 904, § 1; A.S.A. 1947, § 19-307.1; Acts 2001, No. 1751, § 1; 2013, No. 1072, §§ 1, 2.

Amendments. The 2013 amendment, in (b)(1)(A), inserted “At the time of the adoption of the ordinance” preceding “have” and deleted “at the time of the adoption of the ordinance” preceding “of lands used”; and added (b)(1)(C) and (D), and (d).

U.S. Code. Title IV of the Housing and Urban Development Act of 1968, referred to in this section, has been largely repealed. A portion of the title is codified as 12 U.S.C. §§ 371 and 1464. Title VII of the Housing and Urban Development Act of 1970, referred to in this section, is codified as 12 U.S.C. §§ 371 and 1464, and 42 U.S.C. § 4501 et seq.

Research References

ALR.

Validity, Construction and Application of State Statutory Limitations Periods Governing Election Contests. 60 A.L.R.6th 481.

Ark. L. Notes.

Watkins, Procedural Issues in an Annexation Case: A Dissenting Opinion to Gay v. City of Springdale, 1986 Ark. L. Notes 55.

Case Notes

Agricultural or Horticultural Purposes.

This section, as amended by Acts 1975, No. 309, providing that contiguous lands shall not be annexed when they have a fair market value of land used for agricultural purposes and the best use of the land is for agricultural purposes, deals with a substantive matter and should not be given a retroactive effect. Herrod v. City of N. Little Rock, 260 Ark. 890, 545 S.W.2d 620 (1977).

The prohibition against annexing lands being used for agricultural or horticultural purposes is not absolute; such lands may be annexed to a municipality if the highest and best use of those lands is for something other than agriculture or horticulture and one of the five criteria of subsection (a) is met. Gay v. City of Springdale, 287 Ark. 55, 696 S.W.2d 723 (1985).

The prohibition against annexing agricultural lands is no longer absolute; the lands may be annexed if their highest and best use is for a purpose other than agriculture. Chappell v. City of Russellville, 288 Ark. 261, 704 S.W.2d 166 (1986).

The fact that the land is agricultural and the owner does not want it developed does not determine its fate as to annexation; the owner will not have to abandon its use, and its assessment for taxation shall be as agricultural land. Lee v. City of Pine Bluff, 289 Ark. 204, 710 S.W.2d 205 (1986).

Trial court properly found under Ark. Code Ann. subsection 2(b) of this section that the property owner failed to prove that the highest and best use of any parcel within an annexed area was horticultural or agricultural; merely because the owner disagreed with expert testimony and was able to point to conflicting testimony did not demonstrate reversible error. Utley v. City of Dover, 352 Ark. 212, 101 S.W.3d 191 (2003).

Criteria Generally.

This section is disjunctive, and annexation of land is proper when the proof sufficiently complies with any one of its conditions. Holmes v. City of Little Rock, 285 Ark. 296, 686 S.W.2d 425 (1985); Gay v. City of Springdale, 298 Ark. 554, 769 S.W.2d 740 (1989).

It was permissible to annex a tract of land where that tract was more valuable for city purposes than for agriculture, even if one part of the tract was more valuable for farming purposes than for city purposes where: (1) there were a variety of land uses in the tract; (2) access to the tract existed by city streets; (3) city utilities were available; (4) a municipal airport commission would purchase part of the tract; (5) the tract was surrounded on three sides by present city boundaries and on the fourth side by the Arkansas River; (6) the tract was substantially urbanized; and (7) the biggest part of the tract consisted of platted residential development. Holmes v. City of Little Rock, 285 Ark. 296, 686 S.W.2d 425 (1985).

The five criteria listed in subsection (a) are disjunctive, and annexation may be proper when any one of the five conditions is met. Gay v. City of Springdale, 287 Ark. 55, 696 S.W.2d 723 (1985).

The lands sought to be annexed must meet one of the five criteria in this section; if a part of the proposed area does not meet one of the requirements, then the annexation of the entire area is voided in toto. Chappell v. City of Russellville, 288 Ark. 261, 704 S.W.2d 166 (1986).

Annexation is not prohibited simply because a tract is rather rugged or heavily wooded with sparse population; the value of the land is derived from its actual and prospective use for city purposes. Chappell v. City of Russellville, 288 Ark. 261, 704 S.W.2d 166 (1986).

Circuit court properly upheld the annexation of four tracts of real property totaling approximately 1,951 acres into the City of Sherwood, Arkansas because the land met two of the Vestal criteria for annexation; the land was held to be sold as suburban property, and it was valuable by reason of its adaptability for prospective municipal purposes. City of Jacksonville v. City of Sherwood, 375 Ark. 107, 289 S.W.3d 90 (2008).

Criteria in subsection (a) of this section apply regardless of whether an annexation proceeding was initiated by a city or by adjoining landowners. City of Centerton v. City of Bentonville, 375 Ark. 439, 291 S.W.3d 594 (2009).

Evidence.

A majority of electors voting in favor of annexation makes a prima facie case for annexation, and the burden rests on those objecting to produce sufficient evidence to defeat the prima facie case. Lee v. City of Pine Bluff, 289 Ark. 204, 710 S.W.2d 205 (1986).

Proper Municipal Purposes.

Where the trial court found that much of the lands represented the actual growth of the city beyond its legal boundary, that the lands were needed for extension of police and fire protection, that the lands were valuable by reason of their adaptability for prospective municipal purposes, and that, although some acreage was presently used for agricultural purposes, the highest and best use of these lands was for purposes other than their present use, the findings were not clearly wrong and annexation was proper. Chappell v. City of Russellville, 288 Ark. 261, 704 S.W.2d 166 (1986).

A city's proposed annexation was an honest effort to extend its boundaries to encompass the actual growth of the city and land needed for municipal purposes as defined by law; however, the Supreme Court will not recognize annexation proposals that are essentially land grabs beyond the actual growth of the city with no serious goal of responsible land use planning. Lee v. City of Pine Bluff, 289 Ark. 204, 710 S.W.2d 205 (1986).

Land in a flood plain is not excluded from consideration for annexation. Lee v. City of Pine Bluff, 289 Ark. 204, 710 S.W.2d 205 (1986).

Trial court properly found that farm property located within the city limits in the floodway was needed for a proper municipal purpose under subsection (a) of this section, such as for the extension of needed police and fire regulation; in addition, the city's proposed use of property as open space or to expand city's existing park plan was a higher use that also mitigated towards annexation. Chandler v. City of Little Rock, 351 Ark. 172, 89 S.W.3d 913 (2002).

Trial court found that subdivision (a)(4) of this section was met because the lands in question were needed for the purpose of municipal growth and expansion, and the lands were valuable under subdivision (a)(5) of this section by reason of the lands' adaptability for the prospective municipal uses; the trial court properly found that the city was very limited in any areas for expansion within its present boundaries, and the court affirmed the annexation by the city of the lands. Utley v. City of Dover, 352 Ark. 212, 101 S.W.3d 191 (2003).

Trial court properly awarded judgment to appellee in its action to have appellant's annexation of an area of unincorporated and surrounded land declared invalid because appellant did not meet the criteria in subsection (a) of this section; appellant stated plainly that the annexation was necessary to protect its loans, funding, and plans for water service. City of Centerton v. City of Bentonville, 375 Ark. 439, 291 S.W.3d 594 (2009).

Time Limitation.

While the property owners argued that § 14-40-304 did not apply to claims under § 14-40-303, the law was otherwise. The 30-day limitations period set forth in § 14-40-304 extended to challenges to all procedures outlined in § 14-40-301 et seq., and not only to those enumerated in this section. Conrad v. City of Beebe, 2012 Ark. App. 15, 388 S.W.3d 465 (2012).

Cited: White v. Lorings, 274 Ark. 272, 623 S.W.2d 837 (1981); Magruder v. Ark. Game & Fish Comm'n, 287 Ark. 343, 698 S.W.2d 299 (1985); Duennenberg v. City of Barling, 309 Ark. 541, 832 S.W.2d 237 (1992).

14-40-303. Annexation ordinance — Election — Procedures.

  1. The annexation ordinance shall:
    1. Contain an accurate description of the lands desired to be annexed;
    2. Include a schedule of the services of the annexing municipality that will be extended to the area within three (3) years after the date the annexation becomes final;
    3. Fix the date for the annexation election under this section; and
    4. Be heard at three (3) consecutive regular meetings of the governing body of the annexing municipality.
    1. The annexation ordinance shall not become effective until the question of annexation is submitted to the qualified electors of the annexing municipality and of the area to be annexed at the next general election or at a special election. The special election shall be called by ordinance or proclamation of the mayor of the annexing municipality in accordance with § 7-11-201 et seq.
      1. If a majority of the qualified electors voting in the election vote for the annexation, no later than fifteen (15) days following the election, the county clerk shall certify the election results and record the same, along with the description and a map of the annexed area, in the county records, and file a certified copy thereof with the Secretary of State.
      2. The annexation shall be effective, and the lands annexed shall be included within the corporate limits of the annexing municipality thirty (30) days following the date of recording and filing of the description and map, as provided in this section, or in the event an action is filed with the circuit court as provided in § 14-40-304, on the date the judgment of the court becomes final.
    2. If a majority of the qualified electors voting on the issue at the election vote against the annexation, the annexation ordinance shall be null and void.
      1. The city clerk shall certify two (2) copies of the annexation ordinance and a plat or map of the area to be annexed and convey one (1) copy to the county clerk and one (1) copy to the county election commission at least sixty (60) days before the election.
        1. No later than forty-five (45) days prior to the election, the city shall identify all persons who reside within the area proposed to be annexed, and the county clerk shall assist the city in determining the names and addresses of all qualified electors residing within that area.
        2. The failure to identify all persons residing within the area proposed to be annexed or the failure to determine the names and addresses of all qualified electors residing within that area shall not invalidate or otherwise affect the results of the election.
      2. All of the qualified electors residing within the territory to be annexed shall be entitled to vote in the election.
      3. The city clerk shall give notice of the election by publication by at least one (1) insertion in some newspaper having a general circulation in the city.
      1. The county clerk shall give notice of the voter registration deadlines at least forty (40) days before the election by ordinary mail to those persons whose names and addresses are on the list provided by the city clerk.
      2. The county clerk shall prepare a list by precinct of all those qualified electors residing within the area to be annexed who are qualified to vote in that precinct and furnish that list to the election officials at the time the ballot boxes are delivered.
    1. If the county clerk or the county election commission shall fail to perform any duties required of it, then any interested party may apply for a writ of mandamus to require the performance of the duties. The failure of the county clerk or the county election commission to perform the duties shall not void the annexation election unless a court finds that the failure to perform the duties substantially prejudiced an interested party.
  2. If the annexation is approved and becomes final, as soon as practical after the annexation the governing body of the city shall attach and incorporate by ordinance the annexed territory to and in one (1) or more wards of the city lying adjacent thereto, and the territory so assigned and attached to a ward shall thereafter be considered and become a part thereof as fully as any other part of the city.
  3. From the map or plat provided by city ordinance of the wards assigned, the county clerk shall proceed to ascertain and determine the voters' proper precinct and shall enter the same upon the voter registration records of those inhabitants of the territory so annexed and give notice of that change within thirty (30) days after the adoption of the city ordinance assigning the territory to wards.
    1. In the event that within thirty (30) days of the date that one (1) city calls for an annexation election, another city calls for an annexation election on all or part of the same land proposed to be annexed by the first city, then both annexation elections shall be held, provided that the second city must call for its annexation election to be held on the next available date in accordance with § 7-11-201 et seq. before or after the holding of the first city's election.
      1. If the annexation election held first is approved by the voters, the results of it shall be stayed until the second annexation election is held.
        1. If only one (1) of the annexation elections is approved by the voters, then the city that called that election shall proceed with the annexation of the land.
          1. Except as provided in subdivisions (f)(2)(B)(ii)(b) and (c) of this section, if both annexation elections are approved by the voters, then a third election shall be held three (3) weeks after the second annexation election. The provisions of § 7-11-201 et seq., governing the procedures and dates on which special elections may be held shall not apply to the third annexation election provided in this subsection.
          2. If the date of the third election falls upon a legal holiday, the election shall be held four (4) weeks after the second annexation election.
          3. If the date of the election under subdivision (f)(2)(B)(ii)(b) of this section is a legal holiday, the election shall be held five (5) weeks after the second annexation election.
        2. Notice of the third election shall be published in a newspaper circulated in the area to be annexed during the period following the second election.
        3. Only the residents of the area proposed to be annexed by both cities shall vote in the third election.
        4. The issue on the ballot in the third election shall be into which of the two (2) cities the residents of the area want to be annexed.
        5. The area shall be annexed into the city receiving the most votes in the third election.
        6. In the event of a tie vote in the third election, the area shall be annexed to the city that had the highest percentage vote in favor of the annexation in the first or second election.
    2. If the city that does not get to annex the area voted on by both cities included land in its annexation election other than the land voted on by both cities, then that land shall be annexed into the city if it is still contiguous to the city after the other land is annexed to the other city, but the land shall remain part of the county if it is not so contiguous.

History. Acts 1971, No. 298, § 2; 1975, No. 309, § 2; A.S.A. 1947, § 19-307.2; Acts 1991, No. 725, § 1; 1993, No. 356, § 1; 1999, No. 639, § 1; 2005, No. 2145, § 22; 2007, No. 557, § 1; 2007, No. 1049, § 40; 2009, No. 420, § 1; 2009, No. 1480, §§ 58, 59; 2019, No. 219, § 1.

Amendments. The 2009 amendment by No. 420, in (f)(2)(B), inserted “Except as provided in subdivisions (f)(2)(B)(ii) (b) and (c) of this section” in (f)(2)(B)(i), inserted (f)(2)(B)(ii) (b) and (c) , redesignated the remaining text of (f)(2)(B)(ii) accordingly, and made a related change.

The 2009 amendment by No. 1480 substituted “§ 7-11-201 et seq.” for “§ 7-5-103(b)” in (b)(1), (f)(1), and (f)(2)(B)(ii) (a)

The 2019 amendment substituted “annexation election under” for “election provided in” in (a)(3); and added (a)(4).

Case Notes

Applicability.

Although the circuit court erred in finding that subsection (f) of this section was applicable, because it governed the procedures for two cities that have called for annexation elections on all or part of the same land, the circuit court reached the right result in finding that 3360 acres annexed pursuant to an election 15 years earlier became a part of the city of West Memphis. City of Marion v. City of W. Memphis, 2012 Ark. 384, 423 S.W.3d 594 (2012).

Description of Lands.

Annexation proceedings based on a description of land that describes only a line and does not encircle any geographical area are invalid. City of North Little Rock v. Garner, 256 Ark. 1025, 511 S.W.2d 656 (1974).

Where the city described all the land sought to be annexed by metes and bounds as “the area included in the following description not currently in the City” and a map was referred to in the ordinance and was duly filed with the circuit clerk after the election, the description of the property to be annexed was proper and sufficient. Lee v. City of Pine Bluff, 289 Ark. 204, 710 S.W.2d 205 (1986).

Although subdivision (b)(1)(B)(i) required city to file a description and map of annexed area and correct election results with the county clerk and Secretary of State, city's failure to file such matters with the Secretary of State did not toll the 30-day requirement to bring suit under § 14-40-304; subdivision (b)(1)(B)(ii) provides that a municipality's annexation shall be effective 30 days following its filing the description and map of the annexed property with only the county clerk. City of Springdale v. Town of Bethel Heights, 311 Ark. 497, 845 S.W.2d 1 (1993).

Although the property owners argued that the circuit court erred in refusing to set aside the annexation of their property because the city failed to attach a map and legal description of the property proposed to be annexed in its newspaper publication in violation of subdivision (c)(1)(D) of this section, the language in this section required only that the city give notice of the election, which it did in the instant case. While publication of a map or legal description might have been helpful to the voters, the statute did not require the city to include either. Conrad v. City of Beebe, 2012 Ark. App. 15, 388 S.W.3d 465 (2012).

Effective Date of Annexation.

Residents of an area in the process of being annexed to a city do not have the right to vote in a municipal bond election until after the annexation becomes effective and, accordingly, where a circuit court order upholding a contested annexation was not signed until nine days after the bond election, such election was valid despite the fact that residents of the annexed area did not vote therein. Tanner v. City of Little Rock, 261 Ark. 573, 550 S.W.2d 177 (1977).

Where a city collected franchise taxes from residents of annexed area during pendency of appeals from circuit court's final order holding annexation valid, the franchise taxes were not illegal exactions that had to be refunded since, pursuant to this section, the annexation was effective on the date of final judgment; moreover, because no supersedeas or stay was issued under ARAP Rule 8 and ARCP Rule 62, the city had the authority and responsibility to furnish services to the annexed area and collect franchise taxes during pendency of the appeal. Jackson v. City of Little Rock, 274 Ark. 51, 621 S.W.2d 852 (1981).

Filing Election Returns.

Nothing in this section requires the filing of correct election returns with the Secretary of State. City of Springdale v. Town of Bethel Heights, 311 Ark. 497, 845 S.W.2d 1 (1993).

Schedule of Services.

The requirement of a schedule of services is intended to assist voters by furnishing them with detailed information about the annexation proposal. Carter v. City of Sherwood, 263 Ark. 616, 566 S.W.2d 746 (1978).

Where a city ordinance calling an annexation election merely stated that the city committed itself to the extension into the annexed area “of public services now available to the residents of [the city] … and such services shall include all city services,” the ordinance was inadequate under this section. Carter v. City of Sherwood, 263 Ark. 616, 566 S.W.2d 746 (1978).

Cited: Pennington v. Sherwood, 304 Ark. 362, 802 S.W.2d 456 (1991); Utley v. City of Dover, 352 Ark. 212, 101 S.W.3d 191 (2003); Pritchett v. City of Hot Springs, 2017 Ark. 95, 514 S.W.3d 447 (2017).

14-40-304. Judicial review.

  1. If it is alleged that the area proposed to be annexed does not conform to the requirements and standards prescribed in § 14-40-302, a legal action may be filed in the circuit court of the county where the lands lie within thirty (30) days after the election to nullify the election and to prohibit further proceedings pursuant to the election.
  2. In any such action filed in the circuit court of the county where the lands lie, the court shall have jurisdiction and the authority to determine whether the procedures outlined in this subchapter have been complied with and whether the municipality has used the proper standards outlined in § 14-40-302 in determining the lands to be annexed.

History. Acts 1971, No. 298, §§ 2, 3; 1975, No. 309, §§ 2, 3; A.S.A. 1947, §§ 19-307.2, 19-307.3.

Research References

ALR.

Validity, Construction and Application of State Statutory Limitations Periods Governing Election Contests. 60 A.L.R.6th 481.

Case Notes

In General.

Election contests have no common law existence; they are solely the creatures of constitution or statute. Duennenberg v. City of Barling, 309 Ark. 541, 832 S.W.2d 237 (1992).

Appeals.

The order of a circuit court in annexation cases will be upheld unless it is clearly erroneous. Holmes v. City of Little Rock, 285 Ark. 296, 686 S.W.2d 425 (1985).

Enabling Ordinance.

Nothing in this section or in this chapter requires that the enabling ordinance be identified or specifically challenged. Duennenberg v. City of Barling, 309 Ark. 541, 832 S.W.2d 237 (1992).

Where original complaint, which was timely, was not deficient in stating a cause of action, later amendment, which merely corrected an obvious error in the designation of the particular ordinance, was not essential to that cause of action. Duennenberg v. City of Barling, 309 Ark. 541, 832 S.W.2d 237 (1992).

Time Limitation.

Where neither appellants nor others filed suit within 30 days of the annexation election, appellants' attempt to raise such an issue in a later collateral proceeding failed. City of Springdale v. Town of Bethel Heights, 311 Ark. 497, 845 S.W.2d 1 (1993).

Although § 14-40-303(b)(1)(B)(i) required city to file a description and map of annexed area and correct election results with the county clerk and Secretary of State, city's failure to file such matters with the Secretary of State did not toll the 30-day requirement to bring suit under this section; § 14-40-303(b)(1)(B)(ii) provides that a municipality's annexation shall be effective 30 days following its filing the description and map of the annexed property with only the county clerk. City of Springdale v. Town of Bethel Heights, 311 Ark. 497, 845 S.W.2d 1 (1993).

Challenges to procedures outlined in this subchapter must be made within 30 days of the annexation elections, whether or not such challenges arise from requirements prescribed by this section. Williams v. Harmon, 67 Ark. App. 281, 999 S.W.2d 206 (1999).

While the property owners argued that this section did not apply to claims under § 14-40-303, the law was otherwise. The 30-day limitations period set forth in this section extended to challenges to all procedures outlined in § 14-40-301 et seq., and not only to those enumerated in § 14-40-302. Conrad v. City of Beebe, 2012 Ark. App. 15, 388 S.W.3d 465 (2012).

Cited: Utley v. City of Dover, 352 Ark. 212, 101 S.W.3d 191 (2003).

Subchapter 4 — Annexation of Lands in Adjoining County

Publisher's Notes. Former subchapter 4, concerning annexation of lands in adjoining county, was repealed by Acts 1995, No. 555, § 1. The former subchapter was derived from the following sources:

14-40-401. Acts 1967, No. 651, § 1; A.S.A. 1947, § 19-329.

14-40-402. Acts 1967, No. 651, § 2; A.S.A. 1947, § 19-330.

14-40-403. Acts 1967, No. 651, § 3; A.S.A. 1947, § 19-331.

14-40-404. Acts 1967, No. 651, § 4; A.S.A. 1947, § 19-332.

14-40-405. Acts 1967, No. 651, § 5; A.S.A. 1947, § 19-333.

14-40-406. Acts 1967, No. 651, § 6; A.S.A. 1947, § 19-334.

14-40-407. Acts 1967, No. 651, § 7; A.S.A. 1947, § 19-335.

14-40-408. Acts 1967, No. 651, § 8; A.S.A. 1947, § 19-336.

14-40-401. Authority.

  1. The General Assembly finds that there are areas within adjoining counties that are so necessary to the satisfactory conducting of a city's business that there is a need to annex land lying in the adjoining county into the city. This law will aid the residents to receive needed services to improve the quality of life in the unincorporated area.
  2. Any lands contiguous to a municipality having a population of seventy-five thousand (75,000) or less, although located in an adjoining county, may become annexed to the municipality in the manner provided in this chapter.

History. Acts 1995, No. 1286, §§ 1, 2.

Publisher's Notes. Acts 1995, No. 1286 became law without the Governor's signature.

Subchapter 5 — Annexation of Surrounded Land

Effective Dates. Acts 1979, No. 314, § 4: became law without Governor's signature, Mar. 7, 1979. Emergency clause provided: “Whereas, many islands of small unincorporated areas have been created within the limits of existing municipalities, and whereas, this causes great confusion to the public and also great expense to municipalities in having to run vital services around these islands; now, therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate protection of the public peace, health and safety shall take effect immediately on its passage and approval.”

14-40-501. Authority — Exceptions.

        1. Whenever the incorporated limits of a municipality have completely surrounded an unincorporated area, the governing body of the municipality may propose an ordinance calling for the annexation of the land surrounded by the municipality.
        2. Subdivision (a)(1)(A)(i) of this section includes situations in which the incorporated limits of a municipality have surrounded an unincorporated area on only three (3) sides because the fourth side is a boundary line with another state, a military base, a state park, a national forest, a lake, or a river.
      1. If the incorporated limits of two (2) or more municipalities have completely surrounded an unincorporated area, the governing body of the municipality with the greater distance of city limits adjoining the unincorporated area's perimeter may propose an ordinance calling for the annexation of the land surrounded by the municipalities, unless it is agreed by the adjoining municipalities that another of the adjoining municipalities should propose an ordinance calling for the annexation.
    1. The ordinance will provide a legal description of the land to be annexed and describe generally the services to be extended to the area to be annexed.
    1. The unincorporated area to be annexed shall comply with the standards for lands qualifying for annexation which are set forth in § 14-40-302.
    2. Privately owned lakes exceeding six (6) acres of water surface which are used exclusively for recreational purposes and lands adjacent to them not exceeding twenty (20) acres in size which are used exclusively for recreational purposes in relation to the lake shall not qualify for annexation under the provisions of this subchapter.

History. Acts 1979, No. 314, § 1; A.S.A. 1947, § 19-337; Acts 2005, No. 1819, § 1; 2007, No. 150, § 1; 2013, No. 1243, § 1; 2015, No. 109, § 1.

Amendments. The 2013 amendment added “a military base, a state park, or a national forest” at the end of (a)(1)(A)(ii).

The 2015 amendment, in (a)(1)(A)(ii), substituted “section includes” for “section shall include” and “a national forest, a lake, or a river” for “or a national forest.”

Case Notes

Constitutionality.

City could annex unincorporated areas by ordinance alone because (1) citizens have no constitutional right to vote on annexation, and (2) such annexation did not violate equal protection, as no fundamental right was at stake, and plaintiff did not claim that this section creates any suspect classifications or lacks a rational basis. Pritchett v. City of Hot Springs, 2017 Ark. 95, 514 S.W.3d 447 (2017).

Scope.

Subdivision (a)(1)(A)(ii) of this section, which contains the word “includes”, provides an example of unincorporated areas that are “completely surrounded” by a municipality but does not exhaust the list of areas “completely surrounded” by a municipality. Pritchett v. City of Hot Springs, 2017 Ark. 95, 514 S.W.3d 447 (2017).

Citizen did not show annexed tracts were outside the procedure in this section due to being surrounded on two sides by a city and on two sides by a lake because the phrase “completely surrounded” in subdivision (a)(1)(A)(i) of this section was not intended to limit a tract that can be annexed to areas surrounded by a city; the phrase “completely surrounded” included the area at issue, which did not have four distinct sides and had no borders other than those with a single municipality and a lake. Pritchett v. City of Hot Springs, 2017 Ark. 95, 514 S.W.3d 447 (2017).

14-40-502. Hearing — Notice.

  1. A public hearing shall be conducted within sixty (60) days of the proposal of the ordinance calling for annexation.
  2. At least fifteen (15) days prior to the date of the public hearing, the governing body of the municipality shall publish a legal notice setting out the legal description of the territory proposed to be annexed and notify by certified mail all the property owners within the area proposed to be annexed of their right to appear at the public hearing to present their views on the proposed annexation.

History. Acts 1979, No. 314, § 2; A.S.A. 1947, § 19-338.

Case Notes

Due Process

Assuming that the City of Van Buren Council failed to provide landowner notice before the annexation of his property, the violation of this section did not violate the Fourteenth Amendment because he did not show that Arkansas lacked an adequate postdeprivation mechanism to provide him with just compensation for the alleged taking; therefore, landowner's due process claim failed. Cormack v. Settle-Beshears, 474 F.3d 528 (8th Cir. 2007).

Hearing.

City's actions to comply with the maximum-occupant load at the board meeting did not violate this section where evidence was lacking that anyone who wished to speak was not allowed to do so. Houston v. City of Hot Springs, 2018 Ark. App. 196, 546 S.W.3d 545 (2018).

Residents' equal protection argument failed where the city held a public hearing as required by this section and allowed anyone to sign up to speak at that hearing. Houston v. City of Hot Springs, 2018 Ark. App. 196, 546 S.W.3d 545 (2018).

14-40-503. Procedure for annexation.

      1. Except as provided in subdivision (a)(1)(B) of this section, at the next regularly scheduled meeting following the public hearing, the governing body of the municipality proposing annexation may bring the proposed ordinance up for a vote.
      2. An ordinance shall not be enacted within fifty-one (51) days of a scheduled election to consider annexing all or part of the area in question.
    1. If a majority of the total number of members of the governing body vote for the proposed annexation ordinance, then a prima facie case for annexation shall be established, and the city shall proceed to render services to the annexed area.
  1. The decision of the municipal council shall be final unless suit is brought in circuit court of the appropriate county within thirty (30) days after passage to review the actions of the governing body.

History. Acts 1979, No. 314, § 3; A.S.A. 1947, § 19-339; Acts 2011, No. 1051, § 1.

Amendments. The 2011 amendment added the exception in (a)(1)(A); inserted (a)(1)(B); and substituted “circuit court” for “chancery court” in (b).

14-40-504. Enclaves prohibited.

  1. As used in this section, “enclave” means an unincorporated improved or developed area that is enclosed within and bounded on all sides by a single city or incorporated town.
  2. Whenever practicable, a city or incorporated town shall annex lands that are contiguous and in a manner that does not create enclaves.

History. Acts 2013, No. 1071, § 1.

Subchapter 6 — Annexation Proceedings by Adjoining Landowners

Publisher's Notes. For cases dealing with certain procedural aspects of annexation, see case notes under sections in Chapter 38 of this title.

Effective Dates. Acts 1875, No. 1, § 95: effective on passage.

Acts 1953, No. 142, § 5: approved Feb. 25, 1953. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that there are now areas contiguous to and adjoining various municipalities in the State which should be annexed to said municipalities, but that such annexation is being delayed by the present annexation procedure. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the preservation of public peace, health and safety shall take effect and be in full force from and after its passage.”

Acts 1963, No. 549, § 3: Mar. 29, 1963. Emergency clause provided: “Whereas, there now exists in the State of Arkansas cities whose urban population has spread beyond its existing city limits, and there is a great need to authorize and permit cities to extend their boundaries, therefore, an emergency is hereby declared, and this act being necessary for the public peace, health, and safety, the same shall be in full force and effect from and after its passage and approval.”

Acts 1999, No. 128, § 5: Feb. 17, 1999. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly that certain lands may be inadvertently and unwisely annexed to municipalities in Arkansas while other lands owned by the same person remain outside the municipal boundaries; that this situation creates an inequitable situation for landowners when part of their lands can become divided among various different jurisdictions for land-use regulation and taxation purposes; and that it is possible for these annexation proceedings to occur at any time and this inequitable situation must be remedied at the earliest opportunity. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2017, No. 655, § 5: Mar. 27, 2017. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that municipal boundary changes shall be effective by December 31, 2017, and shall be reported to the United States Bureau of the Census by May 31, 2018, to be assured of inclusion in the 2020 Federal Decennial Census; that there is a need for counties and municipalities to give timely, complete, and accurate written notice to the Secretary of State of municipal boundary changes to ensure an accurate census; and that any modification to statutes after December 31, 2018, would be ineffective in ensuring an accurate census in 2020. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Research References

Ark. L. Rev.

Changing Boundaries of Municipal Corporations in Arkansas, 20 Ark. L. Rev. 135.

U. Ark. Little Rock L.J.

Owen, Note: Local Government — Municipal Corporation — Annexation Invalidation, 2 U. Ark. Little Rock L.J. 105.

14-40-601. Application by petition.

  1. When a majority of the real estate owners of any part of a county contiguous to and adjoining any city or incorporated town desires to be annexed to the city or town, they may apply by attested petition in writing to the county court of the county in which the city or town is situated, shall name the persons authorized to act on behalf of the petitioners, and may include a schedule of services of the annexing municipality that will be extended to the area within three (3) years after the date the annexation becomes final.
  2. The “majority of real estate owners” referred to in this section means a majority of the total number of real estate owners in the area affected if the majority of the total number of owners own more than one half (½) of the acreage affected.

History. Acts 1875, No. 1, § 79, p. 1; C. & M. Dig., § 7462; Pope's Dig., § 9495; Acts 1953, No. 142, § 1; A.S.A. 1947, § 19-301; Acts 2013, No. 1071, § 2.

Amendments. The 2013 amendment rewrote (a); and substituted “means” for “shall mean” preceding “a majority” and deleted “shall” preceding “own more” in (b).

Case Notes

In General.

Where annexation of territory contiguous to a municipality is desired, a petition signed by a majority of real estate owners in the territory sought to be annexed and by a majority of the real estate owners of the affected area who are residents of the county in which the municipality and area affected must be filed. Call v. Wharton, 204 Ark. 544, 162 S.W.2d 916 (1942).

Amendments.

Although this section does not specifically provide for amendments to a petition for annexation, there is nothing wrong with court looking to petition and amended petition to ascertain whether or not a majority of the owners of record who own the majority of land have in fact petitioned to be annexed and that the area has been sufficiently identified. Chastain v. Davis, 294 Ark. 134, 741 S.W.2d 632 (1987).

Contiguous Land.

Land held not contiguous to municipality. Clark v. Holt, 218 Ark. 504, 237 S.W.2d 483 (1951).

Land held contiguous to municipality. Louallen v. Miller, 229 Ark. 679, 317 S.W.2d 710 (1958).

There is no requirement that land be completely contiguous. Chastain v. Davis, 294 Ark. 134, 741 S.W.2d 632 (1987).

City challenging annexation did not show that the property owners' request to be annexed into a particular city was invalid under this subchapter as the property owners' petition showed that a majority of the property owners of land contiguous to and adjoining the particular city to which the property owners wanted to annex their property approved of the annexation request. City of Dover v. City of Russellville, 346 Ark. 279, 57 S.W.3d 171 (2001).

Majority of Real Estate Owners.

When annexation is desired, petition filed with county court must be signed by majority of real estate owners of the area sought to be annexed and also a majority of such owners who are residents of the county in which the municipality and area are located. Call v. Wharton, 204 Ark. 544, 162 S.W.2d 916 (1942).

Petition of majority of real estate owners does not mean resident landowners, but a majority of the total number of real estate owners in area affected. Smalley v. City of Fort Smith, 239 Ark. 39, 386 S.W.2d 944 (1965).

Evidence showed majority of landowners had signed the petition for annexation. Chastain v. Davis, 294 Ark. 134, 741 S.W.2d 632 (1987).

Notice.

In an action challenging a petition for annexation of certain lands to the city, the circuit court entered an order finding that notice of the annexation was given in accordance withthis section because the published notice accurately described the real property to be annexed and more than fifty percent of the owners within the area to be annexed approved of the annexation. Thompson v. City of Bauxite, 2012 Ark. App. 580 (2012).

Property Description.

Although original petition contained an incorrect property description, map attached thereto, which was also one of exhibits at trial, properly and sufficiently described property sought to be annexed. Chastain v. Davis, 294 Ark. 134, 741 S.W.2d 632 (1987).

Cited: Proposed Annexation to Beaver v. Ratliff, 282 Ark. 516, 669 S.W.2d 467 (1984); Lacey v. Bekaert Steel Wire Corp., 619 F. Supp. 1234 (W.D. Ark. 1985); Britton v. City of Conway, 36 Ark. App. 232, 821 S.W.2d 65 (1991).

14-40-602. Hearing on petition.

    1. When the petition shall be presented to the county court, the clerk shall file it, and the court shall set a date for a hearing on the petition.
    2. The date for the hearing shall not be less than thirty (30) days after the filing of the petition.
      1. Between the time of the filing of the petition and the date of the hearing, the petitioners shall cause a notice to be published in some newspaper of general circulation in the county.
      2. The notice shall be published one (1) time a week for three (3) consecutive weeks.
    1. If there is no newspaper of general circulation in the county, notice shall be posted at some public place within the limits of the incorporated town or city for at least three (3) weeks before the date of the hearing.
    2. The notice referred to in this subsection shall contain the substance of the petition and state the time and place appointed for the hearing thereof.
  1. The hearing procedure set forth in § 14-38-103 shall be followed in the proceedings concerned in this section insofar as such procedure is not in conflict with any provision expressly set out in this subchapter.

History. Acts 1875, No. 1, § 80, p. 1; C. & M. Dig., § 7463; Pope's Dig., § 9496; Acts 1953, No. 142, § 2; A.S.A. 1947, § 19-302.

Cross References. Hearing on petition to incorporate, § 14-38-103.

Case Notes

Evidence.

The substantial evidence rule applies in annexation proceedings initiated by petition, and the courts are authorized to exercise the same discretion as to the rightness and propriety thereof that they exercise in the case of annexation proceedings by municipality. Cantrell v. Vaughn, 228 Ark. 202, 306 S.W.2d 863 (1957).

Notice.

Although notice of proceeding for annexation of territory to a municipality can be waived by all the interested parties, on appeal, the court cannot indulge the presumption that only owners were the petitioners and that all interested parties were present and waived notice. Posey v. Paxton, 201 Ark. 825, 147 S.W.2d 39 (1941).

Notice of proposed annexation held sufficient. Chastain v. Davis, 294 Ark. 134, 741 S.W.2d 632 (1987).

Cited: Louallen v. Miller, 229 Ark. 679, 317 S.W.2d 710 (1958); Proposed Annexation to Beaver v. Ratliff, 282 Ark. 516, 669 S.W.2d 467 (1984).

14-40-603. Order for annexation.

  1. After the hearing, if the county court shall be satisfied that the allegations of the petition were sustained by the proof, if the court shall be satisfied that the requirements for signatures under § 14-40-601 have been complied with, and if the court shall be satisfied that the limits of the territory to be annexed have been accurately described and an accurate map thereof made and filed, and that the prayer of the petitioner is right and proper, then the court shall enter its order granting the petition and annexing the territory.
  2. The order shall be recorded by the clerk of the county.

History. Acts 1875, No. 1, § 80, p. 1; C. & M. Dig., § 7463; Pope's Dig., § 9496; Acts 1953, No. 142, § 2; A.S.A. 1947, § 19-302.

Cross References. Order to incorporate, § 14-38-104.

Case Notes

In General.

Judgment or order entered in proceedings for annexation of territory must necessarily show on its face the fulfillment of statutory requirements to give court jurisdiction. Posey v. Paxton, 201 Ark. 825, 147 S.W.2d 39 (1941).

Determination.

When county court to which petition is presented is satisfied that qualified voters own property in the territory sought to be annexed and reside therein and also finds that a majority of them have signed the petition and that other conditions have been complied with, it has duty to grant petition. Call v. Wharton, 204 Ark. 544, 162 S.W.2d 916 (1942).

Where evidence was conclusive that 90 percent of territory sought to be annexed to a municipality was used for agricultural purposes and was not needed for prospective municipal purposes, county court was justified in denying landowner's petition for annexation. Cantrell v. Vaughn, 228 Ark. 202, 306 S.W.2d 863 (1957).

Signatures.

Order annexing territory to municipality which failed to show that notice of the proceeding was given based on a petition which failed to show that those who signed it were the only property owners in the territory to be annexed was void ab initio and no rights accrued under it. Posey v. Paxton, 201 Ark. 825, 147 S.W.2d 39 (1941).

Where annexation petition was signed by a majority of the resident landowners in the territory sought to be annexed, but not a majority of the landowners living in the county, judgment denying annexation on remonstrator's petition was held correct. Call v. Wharton, 204 Ark. 544, 162 S.W.2d 916 (1942).

Void Orders.

In collateral attack upon order entered in proceeding for annexation of territory, the court must decide whether notice was given or waived by an inspection of the record only, and order showing that the petition was approved the same day as filed and not showing that all parties interested in the annexation of the proposed territory were present when the order was made is void ab initio. Posey v. Paxton, 201 Ark. 825, 147 S.W.2d 39 (1941).

Cited: Proposed Annexation to Beaver v. Ratliff, 282 Ark. 516, 669 S.W.2d 467 (1984); Town of Houston v. Carden, 332 Ark. 340, 965 S.W.2d 131 (1998).

14-40-604. Proceedings to prevent annexation.

    1. No further action shall be taken for a period of thirty (30) days after the order for annexation has been entered. Within that time any person interested may institute a proceeding in the circuit court to have the annexation prevented.
      1. If the court or judge hearing the proceeding shall be satisfied that the requirements for annexation as set out in this subchapter have not been complied with, that the territory proposed to be annexed is unreasonably large, or that the territory is not properly described, the court or judge shall make an order restraining any further action under the order of the county court and annulling it. However, the proceeding shall not bar any subsequent petition.
      2. If the court or judge shall determine that the order of the county court was proper, then the order of the county court shall be affirmed, and the proceedings to prevent the annexation shall be dismissed.
  1. When any complaint shall be made in accordance with this section to prevent an annexation of territory, notice thereof shall be given to the city or incorporated town authorities and the agent of the petitioners.

History. Acts 1875, No. 1, §§ 81, 82, p. 1; C. & M. Dig., §§ 7464, 7465; Pope's Dig., §§ 9497, 9498; Acts 1953, No. 142, § 3; 1959, No. 212, § 1; 1961, No. 474, § 1; A.S.A. 1947, §§ 19-303, 19-304.

Case Notes

Construction.

Subdivision (a)(2)(A) of this section does not improperly shift the burden of proof in an action which challenges the annexation of property by a town and, instead, merely mandates the court to restrain and annul an annexation order if the requirements for annexation have not been met. Town of Houston v. Carden, 332 Ark. 340, 965 S.W.2d 131 (1998).

Purpose.

The sole purpose of this section is to give to remonstrants an opportunity to appeal a county court order to the circuit court. Palmer v. City of Conway, 271 Ark. 127, 607 S.W.2d 87 (Ct. App. 1980).

Annexation Proceeding Not Shown.

Mere filing of plat by owner of land adjoining city boundary showing the lands to be divided in lots, blocks, and streets and designated as an “addition” to the city was in no way a compliance with statutory provisions regarding annexation and in no way amounted to annexation. Van Marion v. Hawkins, 224 Ark. 199, 272 S.W.2d 317 (1954).

Annulment.

The court properly annulled the annexation of land by a town where there was little, if any, credible evidence that the town itself would be benefited by the annexation and since the town could not annex land simply to prevent the establishment of a hog farm on part of the land. Town of Houston v. Carden, 332 Ark. 340, 965 S.W.2d 131 (1998).

Any Persons Interested.

Petition of parties to quash order of court annexing territory to a municipality must show that the petitioners have an interest as residents or owners of property either in the old municipality or the territory annexed. Perkins v. Holman, 43 Ark. 219 (1884).

Writ to quash order of annexation of territory to a municipality that was granted upon petition of owners of the annexed territory will be refused unless the owners or persons named in their petition as authorized to act in their behalf are made parties to the proceedings. Black v. Brinkley, 54 Ark. 372, 15 S.W. 1030 (1891).

Parties who filed remonstrance in county court protesting against annexation of territory to a municipal corporation should be treated as parties to such proceeding and be allowed to appeal from an adverse judgment of that court. Barnwell v. Town of Gravette, 87 Ark. 430, 112 S.W. 973 (1908).

“Any person interested” means any person who has some interest in the municipality or the area to be annexed. City of Crossett v. Anthony, 250 Ark. 660, 466 S.W.2d 481 (1971); Turner v. Wiederkehr Village, 261 Ark. 72, 546 S.W.2d 717 (1977).

In case where city was petitioning for annexation of two separate areas and the persons who opposed all resided or owned property in one area, there was no interested party contesting the annexation of the other area. A motion to dismiss as to the latter area should have been granted. City of Crossett v. Anthony, 250 Ark. 660, 466 S.W.2d 481 (1971).

At least some interest must be shown on trial de novo in a circuit court in the face of a motion to dismiss for lack of interest. Turner v. Wiederkehr Village, 261 Ark. 72, 546 S.W.2d 717 (1977).

Attorney who owned property near village to be annexed and had contingent fee contract under which he would acquire property in the village if he won his client's lawsuit did not have standing to challenge the incorporation in the absence of a showing that he was threatened with a direct pecuniary damage not shared by members of the public in general. Turner v. Wiederkehr Village, 261 Ark. 72, 546 S.W.2d 717 (1977).

Where plaintiff testified that he owned land within the city to which the land was to be annexed, filed a pro se petition in county court opposing annexation, was one of the named remonstrants in circuit court, and was opposed to the annexation, the circuit court erred in finding that there was no plaintiff in that court who had standing to contest the annexation. Britton v. City of Conway, 36 Ark. App. 232, 821 S.W.2d 65 (1991).

Evidence.

If municipality renders a favorable vote in favor of annexation of territory to it, such vote makes a prima facie case as to the propriety of annexation, and burden of showing sufficient cause against it is placed upon the remonstrants. Burton v. City of Ft. Smith, 214 Ark. 516, 216 S.W.2d 884 (1949).

Notice.

Where property owner filed independent action in circuit court to challenge county court order allowing municipality to annex certain property and only purported notice that plaintiff gave to the municipality during the 30-day period following the county court annexation order was the mailing of a copy of the circuit court complaint to the municipal attorney, since the plaintiff was not serving notice of an appeal, but was commencing an independent attack on the annexation, the mailing of a copy of the complaint to the municipal attorney did not constitute notice within the meaning of this section and § 14-40-605. Proposed Annexation to Beaver v. Ratliff, 282 Ark. 516, 669 S.W.2d 467 (1984).

A complaint filed in circuit court under the provisions of this section is not an appeal but is an independent attack on the annexation, and the notice required means service of process pursuant to Ark. R. Civ. P. 4. Britton v. City of Conway, 36 Ark. App. 232, 821 S.W.2d 65 (1991).

Where the petition for annexation filed in county court clearly indicated that a law firm was an agent for the petitioners, § 14-40-601 required that summons be served on them. Britton v. City of Conway, 36 Ark. App. 232, 821 S.W.2d 65 (1991).

Section 14-40-601 requires service of summons on the agent of the petitioners for annexation, but rather than dismissing the complaint in opposition to the annexation for failure to serve notice, the trial court should have directed that the petitioners be made a party by service of summons on their agent. Britton v. City of Conway, 36 Ark. App. 232, 821 S.W.2d 65 (1991).

Size of Area.

Annexation of an area to a municipality will not be denied because the proposed area is too small. City of Sherwood v. Hardin, 230 Ark. 762, 325 S.W.2d 75 (1959).

Thirty-Day Period.

Remonstrants were not prejudiced by action of city in passing ordinance accepting annexation two days before 30-day period had elapsed, where the remonstrants were in no way prevented from taking their appeal to the circuit court. Palmer v. City of Conway, 271 Ark. 127, 607 S.W.2d 87 (Ct. App. 1980).

Where the final order of the county court granting annexation was entered on December 4, 2007, appellants' complaint to challenge the annexation order should have been filed by January 4, 2008; however, the complaint was not filed until July 31, 2008. Because appellants filed their complaint beyond the time allowed by subdivision (a)(1) of this section, the trial court's decision to dismiss the complaint was not erroneous. Thompson v. City of Bauxite, 2012 Ark. App. 580 (2012).

Cited: Proposed Annexation to Beaver v. Ratliff, 282 Ark. 516, 669 S.W.2d 467 (1984); Campbell v. City of Cherokee Village W., 333 Ark. 310, 969 S.W.2d 179 (1998).

14-40-605. Confirmation of annexation.

  1. If no notice under § 14-40-604(b) is given within thirty (30) days from the making of the order of annexation by the county court, the proceeding before the court shall in all things be confirmed, if the city or incorporated town council shall accept by ordinance or resolution the territory.
      1. If the council accepts the territory and notifies the county clerk of each county in which territory is affected, the county clerk shall certify one (1) copy of the plat of the annexed territory and one (1) copy of the order of the court and the resolution or ordinance of the council.
      2. The county clerk shall forward a copy of each document to the Secretary of State, who shall file and preserve each copy.
    1. The county clerk shall forward a certified copy of the order of the court to the council.

History. Acts 1875, No. 1, § 82, p. 1; C. & M. Dig., § 7466; Pope's Dig., § 9499; Acts 1959, No. 212, § 1; 1961, No. 474, § 1; A.S.A. 1947, § 19-305; Acts 2017, No. 655, § 3.

Amendments. The 2017 amendment substituted “under § 14-40-604(b) is” for “shall be” in (a); redesignated former (b)(1) as (b)(1)(A) and (B); in (b)(1)(A), inserted “and notifies the county clerk of each county in which territory is affected” and deleted “duly” preceding “certify”; in (b)(1)(B), inserted “county”, substituted “each copy” for “them”, and deleted the last sentence; and inserted “county” in (b)(2).

Cross References. Secretary of state to preserve papers, § 14-38-114.

Case Notes

Acceptance.

Even though there is no ordinance or resolution of a municipality accepting annexation, other evidence is sufficient to substantiate such acceptance. Gowers v. Van Buren, 210 Ark. 776, 197 S.W.2d 741 (1946).

Where there was no showing in record that city made effort to comply with statutory requirements regarding annexation, but merely “accepted” platted area adjoining city boundary by resolution of city council, the city council had no jurisdiction to make the annexation. Van Marion v. Hawkins, 224 Ark. 199, 272 S.W.2d 317 (1954).

Where city council passed resolution “accepting” an area adjoining city boundary which had been previously platted to show lands divided into lots, blocks, and streets, taxpayers were not estopped to deny validity of the “annexation” on theory that they had for many years paid municipal taxes and accepted municipal benefits. Van Marion v. Hawkins, 224 Ark. 199, 272 S.W.2d 317 (1954).

Notice.

Where property owner filed independent action in circuit court to challenge county court order allowing municipality to annex certain property and only purported notice that plaintiff gave to the municipality during the 30-day period following the county court annexation order was the mailing of a copy of the circuit court complaint to the municipal attorney, since the plaintiff was not serving notice of an appeal, but was commencing an independent attack on the annexation, the mailing of a copy of the complaint to the municipal attorney did not constitute notice within the meaning of § 14-40-604 and this section. Proposed Annexation to Beaver v. Ratliff, 282 Ark. 516, 669 S.W.2d 467 (1984).

Cited: Gregg v. Hartwick, 292 Ark. 528, 731 S.W.2d 766 (1987).

14-40-606. Rights and privileges of new inhabitants.

As soon as the resolution or ordinance declaring the annexation has been adopted or passed, the territory shall be deemed and taken to be a part and parcel of the limits of the city or incorporated town, and the inhabitants residing therein shall have and enjoy all the rights and privileges of the inhabitants within the original limits of the city or incorporated town.

History. Acts 1875, No. 1, § 83, p. 1; C. & M. Dig., § 7467; Pope's Dig., § 9500; A.S.A. 1947, § 19-306.

Case Notes

Cited: Gregg v. Hartwick, 292 Ark. 528, 731 S.W.2d 766 (1987).

14-40-607. [Repealed.]

Publisher's Notes. This section, concerning annexation proceedings by a municipality, was repealed by Acts 1993, No. 1121, § 1. The section was derived from Acts 1875, No. 1, § 84, p. 1; C. & M. Dig., § 7468; Pope's Dig., § 9501; Acts 1963, No. 549, § 1; 1969, No. 65, § 1; A.S.A. 1947, § 19-307.

14-40-608. Right to detach certain lands after annexation proceeding.

  1. Within eight (8) years after an annexation proceeding is completed under the provisions of this subchapter and the land remains the boundary of the city or town, the person owning all lands originally annexed into the city or town may be authorized to detach those annexed lands from the city or town under the provisions of this section, so long as the city or town has not provided utility services to those lands.
    1. When a qualifying landowner notifies the municipality that he or she wishes to detach his or her land from the city or town under this section, the governing body of the municipality may pass an ordinance within thirty (30) days to detach the annexed, qualifying land from the municipality.
      1. In order to notify the city or town, the landowner shall file an affidavit with the city clerk or recorder stating that:
        1. His or her land was annexed;
        2. His or her land is located inside the city or town along the municipal boundary; and
        3. He or she desires the annexed land to be detached from the municipality.
      2. The affidavit shall be filed along with a certified copy of the plat of the annexed land he or she desires to be detached and a copy of the order of the county court approving the annexation and the resolution or ordinance of the municipal governing body accepting the annexation.
  2. If the municipal governing body approves the ordinance to detach the territory, the clerk or recorder of the municipality shall duly certify and send one (1) copy of the plat of the detached territory, one (1) copy of the ordinance detaching the territory, and one (1) copy of the qualifying affidavit to the county clerk.
    1. The county clerk shall forward a copy of each document to the Secretary of State, who shall file and preserve them.
    2. The county clerk shall forward one (1) copy of the plat of the detached territory and one (1) copy of the ordinance detaching the territory to the Director of the Tax Division of the Arkansas Public Service Commission, who shall file and preserve them and shall notify all utility companies having property in the municipality of the detachment proceedings.

History. Acts 1999, No. 128, § 1; 2011, No. 740, § 1.

Amendments. The 2011 amendment substituted “eight (8) years” for “three (3) years” in (a).

Case Notes

Procedure.

Land of landowners who failed to follow the procedures of this section to detach their land from the City of West Memphis prior to seeking annexation into the City of Marion remained part of West Memphis. The West Memphis annexation of the land 15 years earlier was not void on the ground that the ballot included some land that was not annexed. City of Marion v. City of W. Memphis, 2012 Ark. 384, 423 S.W.3d 594 (2012).

14-40-609. Annexation by 100% petition — Definition.

  1. As used in this section, “city or town” means:
    1. A city of the first class;
    2. A city of the second class; and
    3. An incorporated town.
    1. Individuals who own property in a county that is contiguous to a city or town may petition the governing body of the city or town to annex the property that is contiguous to the city or town.
    2. The petition under subdivision (b)(1) of this section shall:
      1. Be in writing;
      2. Contain an attestation signed before a notary or notaries by the property owner or owners of the relevant property or properties confirming the desire to be annexed;
      3. Contain an accurate description of the relevant property or properties;
      4. Contain a letter or title opinion from a certified abstractor or title company verifying that the petitioners are all owners of record of the relevant property or properties;
      5. Contain a letter or verification from a certified surveyor or engineer verifying that the relevant property or properties are contiguous with the annexing city or town and that no enclaves will be created if the property or properties are accepted by the city or town; and
      6. Include a schedule of services of the annexing city or town that will be extended to the area within three (3) years after the date the annexation becomes final.
    3. The petition shall be filed with the county assessor and the county clerk, and within fifteen (15) business days of the filing, the county assessor and the county clerk shall verify that the petition meets the requirements of subdivision (b)(2) of this section.
    1. Upon completion of the requirements under subsection (b) of this section, the county clerk shall present the petition and records of the matter to the county judge who shall review the petition and records for accuracy.
    2. Within fifteen (15) days of the receipt of the petition and records, the county judge shall:
      1. Review the petition and records for completeness and accuracy;
      2. Determine that no enclaves will be created by the annexation;
      3. Confirm that the petition contains a schedule of services;
      4. Issue an order articulating the findings under subdivisions (c)(2)(A)-(C) of this section and forward the petition and order to the contiguous city or town; and
      5. Require at his or her discretion that the city or town annex dedicated public roads and rights of way abutting or traversing the property to be annexed.
      1. By ordinance or resolution, the city or town may grant the petition and accept the property for annexation to the city or town.
      2. The city or town is not required to grant the petition and accept the property petitioned to be annexed.
    1. The ordinance or resolution shall contain an accurate description of the property to be annexed.
      1. If the governing body of the city or town accepts the contiguous property, the clerk or recorder of the city or town shall certify and send one (1) copy of the plat of the annexed property and one (1) copy of the ordinance or resolution of the governing body of the city or town to the county clerk.
        1. The county clerk shall forward a copy of each document received under subdivision (d)(3)(A) of this section to the county judge.
        2. If the county judge determines the requirements of this section have been complied with and the annexation is in all respects proper, the county judge shall enter an order confirming the annexation.
  2. Upon receipt of the order of the county judge confirming the annexation, the county clerk shall forward a copy of each document received under subdivision (d)(3) of this section to the Secretary of State, who shall file and preserve each copy.
    1. Notwithstanding any other provisions in this chapter, thirty (30) days after passage of the ordinance or resolution by the governing body of the city of town under this section, the annexation shall be final and the property shall be within the corporate limits of the city or town.
    2. The inhabitants residing in the newly annexed property shall have and enjoy all the rights and privileges of the inhabitants within the original limits of the city or town.
    1. During the thirty-day period under subdivision (f)(1) of this section, a cause of action may be filed in the circuit court of the county of the annexation by a person asserting and having an ownership right in the property objecting to the petition or by any person asserting a failure to comply with this section.
    2. After the thirty-day period, an action under subdivision (g)(1) of this section is not timely.

History. Acts 2015, No. 991, § 1; 2017, No. 567, § 1; 2017, No. 655, § 4.

Amendments. The 2017 amendment by No. 655 deleted the former (e)(1) designation; and deleted (e)(2).

The 2017 amendment by No. 567 rewrote the section.

Subchapters 7-11

Subchapter 12 — Consolidation of Municipalities

Effective Dates. Acts 1913, No. 318, § 6: approved Apr. 2, 1913. Emergency clause provided: “It being necessary to the peace and safety of the state that this act shall take immediate effect, it is hereby provided that it shall take effect immediately upon its approval.”

Acts 1995, No. 806, § 5: Mar. 28, 1995. Emergency clause provided: “It is hereby found and determined by the Eightieth General Assembly of the State of Arkansas that the Arkansas law on municipal consolidation currently allows as few as fifty (50) voters in small towns or cities to force an election on the question of consolidating two (2) cities into one; that special elections at anytime can be an expensive matter and the cost of the election is to borne by the city treasuries; that is would be more equitable and uniform to set the standard for calling special elections on consolidations at the level required for initiative and referendum questions. Therefore, in order to reduce unnecessary expenses for city special elections, an emergency is hereby declared to exist, and this act being necessary for the immediate preservation of the public peace, health, and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1995, No. 1333, § 5: became law without Governor's signature. Noted Apr. 12, 1995. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 806 of 1995 changes the number of signatures required to petition for an election to consolidate two municipalities; that Act 806 of 1995 passed both houses containing an emergency clause and was signed by the Governor on March 28, 1995; that it has now been discovered that the immediate implementation of Act 806 will work to the detriment of some of the citizens of this state who have expended energy and effort in reliance upon the prior law; that it was not the intent of the General Assembly to detrimentally affect those people; that this act will, in effect, postpone implementation of the provisions of Act 806 until July 1, 1995. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 2005, No. 2264, § 2: Apr. 13, 2005. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the procedure for the merger of municipalities is unclear on certain issues; that one (1) unintended consequence of a merger of two (2) or more municipalities is the forcing from office of at least one (1) or more mayors; and that this act is immediately necessary to clarify the procedure for the merger of municipalities and to prevent unfairness to elected officials who are forced out of office because of a merger of two (2) or more municipalities. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2009, No. 1480, § 117: Apr. 10, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act makes various revisions to Arkansas election laws that are designed to improve the administration of elections and special elections and that these revisions should be implemented as soon as possible so that the citizens of this state may benefit from improved election procedures. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

14-40-1201. Petition for consolidation.

      1. Beginning July 1, 1995, when the inhabitants of any city or incorporated town adjoining or contiguous to another smaller municipal corporation of any class in the same county shall desire that the city or incorporated town annex to it or consolidate with it the smaller municipal corporation, they may apply, by a petition in writing signed by a number of qualified electors from each of the municipal corporations equal to not less than fifteen percent (15%) of the total vote cast for the office of mayor in the respective city or town in the last preceding general election, to the city or town council of the larger municipal corporation.
      2. Municipal corporations separated by a river shall be deemed contiguous.
    1. The petition shall:
      1. Describe the municipal corporations to be consolidated; and
      2. Name the persons authorized to act in behalf of the petitioners presenting the petition as provided in this section.
      1. Beginning July 1, 1995, the petitions shall be filed with the city clerk or town recorder of each municipal corporation, who shall determine the sufficiency of the petitions in each municipality.
        1. If any petition is determined insufficient, he or she shall notify the petitioners in writing without delay, and the petitioners shall be permitted ten (10) days from the notification to solicit additional signatures or to prove any rejected signatures.
        2. If the city clerk or town recorder of the respective municipalities decides the petitions are sufficient, he or she each shall notify the petitioners in writing and shall present the petitions to the city or town council of the larger municipal corporation.
      1. When the petition is presented to the council, the council shall pass an ordinance in favor of the annexation and approving and ratifying the petition.
      2. If the council fails to pass the ordinance required under subdivision (b)(1)(A) of this section, then any interested party may apply for a writ of mandamus to require the performance of the requirement.
    1. In that event, it shall be the duty of the persons named in the petition authorized to act in behalf of the petitioners to file the petition, together with a certified copy of the ordinance, in the office of the county clerk of the county in which the municipal corporations are situated.

History. Acts 1913, No. 318, § 1; C. & M. Dig., § 7471; Pope's Dig., § 9504; A.S.A. 1947, § 19-310; Acts 1995, No. 806, § 1; 1995, No. 1333, § 1; 1997, No. 214, § 1; 2003, No. 1171, § 1.

14-40-1202. Special election called.

      1. Upon presentation of the petition to the county court by the authorized persons, the court shall at once order and call a special election, to be held in accordance with § 7-11-201 et seq., in both of the municipal corporations on the question of the annexation and the name of the proposed consolidated municipality.
      2. The court shall give thirty (30) days' notice of the election by publication one (1) time a week in some newspaper with a bona fide circulation in the territory and by notices posted in conspicuous places in the territory.
    1. The court shall appoint one (1) judge and one (1) clerk in each ward or other division of each municipal corporation, and the mayor and city council of each of the municipal corporations shall select two (2) judges and one (1) clerk for each of the wards or other divisions having the qualifications of electors, to act as judges and clerks of election within the respective wards.
    2. The court shall fix all polling places at which the voting shall take place.
    1. The election shall be held and conducted in each corporation in the manner prescribed by law for holding elections for cities or incorporated towns, so far as they are applicable. Election expenses are to be paid by the larger city or incorporated town.
      1. All elections held under this subchapter are made legal elections.
        1. The elections shall be governed by and subject to all the laws relating to general elections so far as applicable.
        2. All judges, clerks, and persons voting in the elections shall be subject to the penalties prescribed by the general election laws of the state for any violation of the general election laws to the same extent as though the elections were specifically included in the general election laws of the state.
    2. The returns of the elections shall be made to the court and the result thereof declared by the court.
  1. In order to provide for an orderly transition of affairs if the petition calls for a delay in the implementation of the consolidation, the consolidation shall not take effect until the date specified in the petition, except that the consolidation shall be delayed not longer than eighteen (18) months from the date the election results are declared by the court.

History. Acts 1913, No. 318, § 1; C. & M. Dig., § 7472; Pope's Dig., § 9505; A.S.A. 1947, § 19-311; Acts 1999, No. 1266, § 1; 2003, No. 1171, § 2; 2005, No. 2145, § 23; 2007, No. 1049, § 41; 2009, No. 1480, § 60.

Amendments. The 2009 amendment substituted “§ 7-11-201 et seq.” for “§ 7-5-103(b)” in (a)(1)(A).

14-40-1203. Election results.

  1. At any election held under this subchapter, all qualified electors who are residents of either municipality shall be allowed to vote on the adoption or rejection of the proposed annexation or consolidation and the name of the proposed consolidated municipality.
        1. If a majority of the votes cast in each of the respective municipalities, considered as a separate and distinct unit and without reference to the vote cast in the other, shall be in favor of the consolidation or annexation, then the county court shall declare, by an appropriate order, the annexation or consolidation consummated unless the petition has requested a delayed date for implementation of the consolidation.
        2. If the petition calls for a delay in the implementation of the consolidation and if a majority of the votes cast in each of the respective municipalities is in favor of the consolidation, then the county court shall order the annexation or consolidation consummated on the date specified in the petition, except that the date shall not be more than eighteen (18) months after the date election results are declared by the court.
        1. If a majority of the votes cast in each of the respective municipalities, considered as a separate and distinct unit and without reference to the vote cast in the other, shall be in favor of the same name of the municipality, then the county court shall declare, by appropriate order, the name of the consolidated municipality.
        2. If a majority of the votes cast in each of the respective municipalities, considered as a separate and distinct unit and without reference to the vote cast in the other, shall not be in favor of the same name of the municipality, then the county court shall declare, by appropriate order, the name of the consolidated municipality to be the name of the larger municipality.
        1. Upon the making of the order, the smaller municipal corporation and the territory comprising it shall, in law, be deemed and be taken to be included and shall be a part of the larger municipal corporation.
        2. The inhabitants thereof shall in all respects be citizens of the larger municipal corporation.
    1. If a majority of the votes of either municipal corporation shall be against annexation, then the city or incorporated town shall not be again permitted to attempt the consolidation for two (2) years.

History. Acts 1913, No. 318, § 1; C. & M. Dig., § 7473; Pope's Dig., § 9506; A.S.A. 1947, § 19-312; Acts 1999, No. 1266, § 2; 2003, No. 1171, § 3.

Case Notes

In General.

The General Assembly did not create an inharmonious or unworkable scheme of procedure when it empowered the county courts to canvass election returns and, at the same time, authorized the circuit courts to adjudicate contests of elections in an original proceeding. Russell v. Cockrill, 211 Ark. 123, 199 S.W.2d 584 (1947).

Annexation of Unincorporated Lands.

The court rejected the argument that the two-year time limit contained in this section, which applies to the consolidation of two municipalities, should be read into statutes governing the annexation of unincorporated lands as a reasonable time period within which to prohibit further attempts at annexation. Lewis v. City of Bryant, 291 Ark. 566, 726 S.W.2d 672 (1987).

14-40-1204. Contest of election.

Any elector shall have the right to test the legality and fairness of the election and the declared results in a proceeding before the circuit court without being required to give bond for costs. However, no such contest shall interfere with the consolidation until finally decided.

History. Acts 1913, No. 318, § 1; C. & M. Dig., § 7473; Pope's Dig., § 9506; A.S.A. 1947, § 19-312.

Case Notes

In General.

The General Assembly did not create an inharmonious or unworkable scheme of procedure when it empowered the county courts to canvass election returns and, at the same time, authorized the circuit courts to adjudicate contests of elections in an original proceeding. Russell v. Cockrill, 211 Ark. 123, 199 S.W.2d 584 (1947).

14-40-1205. Division of smaller municipality into wards.

  1. As soon as practicable after the annexation, the council of the larger city or incorporated town shall form by ordinance the territory of the smaller municipality into such number of wards as shall seem to be to the best interest of the combined city or incorporated town, or shall change the number and boundaries of all the wards of the entire city or incorporated town, or any part of them, as shall seem to be to the best interests of the combined city or incorporated town. In such way, however, the wards shall have as nearly an equal population and assessed valuation of property as practicable and as, in the opinion of the council, would best subserve the true interest of the citizens and taxpayers of the combined city or incorporated town.
  2. The territory and inhabitants of the smaller municipal corporation shall receive that fair and just representation in the city council as the size, population, and assessed valuation of property demands, as compared with the representation accorded to other wards of the city or incorporated town.
  3. If inhabitants of the smaller municipal corporation feel aggrieved at the number of wards, or in any manner dissatisfied with the division of the territory into wards, upon petition of fifty (50) qualified electors, the circuit court is authorized to make changes in the number of wards as the justice of the case requires, in the manner provided in § 14-43-311, so far as applicable.

History. Acts 1913, No. 318, § 2; C. & M. Dig., § 7474; Pope's Dig., § 9507; A.S.A. 1947, § 19-313.

Cross References. Redistricting of wards § 14-43-311.

14-40-1206. Plat of consolidated municipality.

  1. The council of the larger city or incorporated town shall cause a plat to be made of the entire city or incorporated town after the annexation thereto and the division into wards of the smaller municipal corporation.
    1. A certified copy of the plat shall be filed and recorded in the office of the circuit court and ex officio recorder of the county and with the Secretary of State.
      1. Thereafter, the plat shall stand, be, and remain the division of the city or incorporated town into wards, and the number and boundaries thereof, until such time as it may be afterwards changed according to law.
      2. However, a change in the boundaries of the wards of the larger city or incorporated town shall not determine or affect the time of service of any previously elected council member of any ward in the larger city or incorporated town.

History. Acts 1913, No. 318, § 2; C. & M. Dig., § 7475; Pope's Dig., § 9508; A.S.A. 1947, § 19-314; Acts 2017, No. 879, § 4.

Amendments. The 2017 amendment, in (b)(2)(B), substituted “a change” for “no change”, inserted “not”, and substituted “council member” for “alderman”.

14-40-1207. Special election of council members or all city officials.

      1. Except as provided under subdivision (a)(1)(B) of this section, the city or town council shall call a special election of council members to be held at such times and places as the council may direct pursuant to a proclamation issued by the mayor in accordance with § 7-11-101 et seq., in the wards of the smaller municipality and for the election of council members from any other new wards that may be created by the council out of territory included in the larger city or incorporated town before the annexation, as provided in this subchapter.
      2. If the petition calls for a citywide election for all officials of the new consolidated city or incorporated town, then the city or town council shall call a special election pursuant to a proclamation issued by the mayor in accordance with § 7-11-101 et seq. for all city or town officials to be held at the times and places as the city or town council may direct throughout each ward of the consolidated city or incorporated town.
    1. If the implementation of the consolidation of the cities or towns is delayed, the special election for new council members to a city or town council or all city officials shall be held at least forty-five (45) days before the effective date of the consolidation.
  1. Each ward of the consolidated city or incorporated town shall have two (2) council members, to be elected in the same manner and for the same term as council members are elected in cities and incorporated towns.

History. Acts 1913, No. 318, § 3; C. & M. Dig., § 7476; Pope's Dig., § 9509; A.S.A. 1947, § 19-315; Acts 2003, No. 1171, § 4; 2005, No. 2145, § 24; 2007, No. 1049, § 42; 2009, No. 1480, § 61; 2017, No. 879, § 5.

Amendments. The 2009 amendment substituted “§ 7-11-101 et seq.” for “§ 7-5-103(a)” in (a)(1)(A) and (a)(1)(B).

The 2017 amendment substituted “council members” for “aldermen” in the section heading, and twice in (a)(1)(A) and (b); substituted “the city or town council” for “it” in (a)(1)(B); and substituted “council members to a city or town council” for “aldermen” in (a)(2).

14-40-1208. Existing officers, etc.

  1. The term of office of all officers, council members, and employees of the smaller municipality and all laws in force in the smaller municipality shall cease upon and after the consolidation.
    1. Any mayor who is forced from office because of a merger of two (2) or more municipalities under this subchapter is presumed to meet the minimum service period under § 24-12-123.
    2. If the mayor who is forced from office has less than ten (10) years of actual service as mayor, then he or she is entitled to a prorated retirement benefit in an amount equal to the percentage of the mayor's actual amount of service divided by the minimum ten (10) years of service required under § 24-12-123.

History. Acts 1913, No. 318, § 3; C. & M. Dig., § 7476; Pope's Dig., § 9509; A.S.A. 1947, § 19-315; Acts 2005, No. 2264, § 1; 2017, No. 879, § 6.

Amendments. The 2017 amendment substituted “council members” for “aldermen” in (a).

Case Notes

Cited: Municipality of Helena-West Helena v. Weaver, 374 Ark. 109, 286 S.W.3d 132 (2008).

14-40-1209. Public property.

All public property of the smaller municipality shall belong to the consolidated city or incorporated town.

History. Acts 1913, No. 318, § 4; C. & M. Dig., § 7477; Pope's Dig., § 9510; A.S.A. 1947, § 19-316.

14-40-1210. Payment of existing debts.

    1. The debts of each municipality owing prior to or at the time of the consolidation shall be paid by the consolidated municipality by appropriating the revenues derived from year to year from the territory and the inhabitants of what was formerly the larger municipality to the payment of the debts of the larger municipality owing before the consolidation.
    2. In like manner, the debts of the smaller municipality owing prior to and at the time of the consolidation shall be paid by appropriating the revenues derived from what was formerly the smaller municipality in such manner as to do the least injustice to the inhabitants of each former municipality in the way of a decrease in the improving or bettering of the territory as it formerly existed.
  1. In appropriating the revenues of either municipality to pay its own debts existing prior to the consolidation, neither the territory nor inhabitants of what was formerly the larger or smaller municipality shall be discriminated against in the distribution of police protection, board of health service, fire protection, public lighting, or other like public service.

History. Acts 1913, No. 318, § 4; C. & M. Dig., § 7477; Pope's Dig., § 9510; A.S.A. 1947, § 19-316.

14-40-1211. Prior debts not preferred.

  1. Creditors of either municipal corporation, on account of obligations made prior to consolidation, shall not be paid sooner or shall not be permitted to enforce the collection of their debts sooner against the consolidated city or incorporated town than the separate municipality prior to consolidation could have paid its own debts or could have been forced to do so.
  2. In any proceeding in court, by mandamus or otherwise, against a consolidated city or incorporated town to enforce the obligations created by either municipal corporation prior to consolidation, no greater part of the revenue of the consolidated city or incorporated town shall be subject to be applied by the court at the instance of the creditor to the payment of the obligations than could have been subjected against the revenues of the particular city or incorporated town creating the obligation prior to consolidation if the particular municipal corporation having so created the obligation had not been annexed.

History. Acts 1913, No. 318, § 5; C. & M. Dig., § 7479; Pope's Dig., § 9512; A.S.A. 1947, § 19-318.

14-40-1212. Rights of annexed territory to benefits of its revenues.

  1. The wards formed out of the territory comprising the former territory of the smaller municipal corporation annexed under the provisions of this subchapter shall always receive betterments and improvements in an amount equal to the amount of revenue derived by the consolidated municipality from the territory and inhabitants of the smaller municipal corporation, after having deducted the pro rata share of the territory of the running expenses necessary to be expended in maintaining the government of the entire city or incorporated town and after having taken into consideration the amount of revenues necessarily appropriated to pay the indebtedness due by the smaller municipality before consolidation, until the indebtedness is paid. In addition, those wards shall always receive their fair and equitable proportion of the police, board of health, fire protection, and lighting service of the larger city or incorporated town. They shall in all other ways receive fair and liberal treatment and their fair proportion of the expenditure of moneys made by the larger city or incorporated town.
  2. Council members representing the wards composing the territory of the smaller municipal corporation before consolidation have a right:
    1. At all times, to demand of the city or town council the benefit of the revenue collected from the wards, as provided for in this section; and
    2. On the refusal by the city or town council of the demand made under subdivision (b)(1) of this section, to enforce the revenue rights by mandamus or other appropriate proceedings.
  3. In the event the council members, or fifty (50) qualified electors of the territory annexed, feel aggrieved in reference to the amount of revenue expended on the territory or as to the other rights guaranteed in this section to the annexed municipality, they may submit the matter to the circuit court, which is authorized by appropriate orders to compel the consolidated city or incorporated town to give the former territory of the smaller municipal corporation the full benefit of its revenue as provided in this section.

History. Acts 1913, No. 318, § 4; C. & M. Dig., § 7478; Pope's Dig., § 9511; A.S.A. 1947, § 19-317; Acts 2017, No. 879, §§ 7, 8.

Amendments. The 2017 amendment rewrote (b); and substituted “council members” for “alderman” near the beginning of (c).

14-40-1213. Franchises, contracts, and other obligations.

No franchises, contracts, or other obligations of an extraordinary nature, or other than those necessary for the ordinary and usual running of the affairs of either municipal corporation, which have been granted, made, or created by either municipal corporation after the passage of an ordinance favoring annexation, and prior to the consummation of the annexation, shall be valid and binding against the consolidated municipality, or any part thereof, in the event that a consolidation is effected within sixty (60) days after passage of the ordinance, unless they shall be afterward ratified by the consolidated city or incorporated town.

History. Acts 1913, No. 318, § 5; C. & M. Dig., § 7480; Pope's Dig., § 9513; A.S.A. 1947, § 19-319.

Case Notes

Cited: Mann v. City of Hot Springs, 234 Ark. 9, 350 S.W.2d 317 (1961).

Subchapters 13-17

Subchapter 18 — Detachment of Territory Generally

Cross References. Reduction to acreage, § 14-41-301 et seq.

Effective Dates. Acts 1875, No. 1, § 95: effective on passage.

Acts 1997, No. 140, § 6: Feb. 13, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that the present law prescribing the procedure for the detachment of territory located within a municipal corporation is unduly burdensome and expensive on the taxpayers; that this act grants an alternative procedure which is more efficient and less costly; and that this act should go into effect immediately in order to grant cities and counties the flexibility provided herein as soon as possible. Therefore an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

14-40-1801. Proceedings generally.

  1. Whenever any municipal corporation shall desire to throw any portion of the territory lying within its corporate limits outside of the limits and remit it back to the county in which the municipal corporation is situated, it shall be lawful for the council of the municipal corporation to submit the question to the qualified electors of the municipal corporation at an election to be held for that purpose. The election shall be held after giving notice of such election four (4) weeks by advertisement in one (1) of the papers published in the municipal corporation or, if there is no paper published in the municipal corporation by advertisement posted in two (2) of the most public places in the municipal corporation.
  2. If a majority of the votes cast on that question shall be in favor of throwing the territory outside of its municipal corporate limits, the municipal corporation shall present to the county court a petition praying for such change in its territorial limits, and the hearing shall be had on the petition as is prescribed in § 14-38-103.
  3. Alternatively, upon petition of the landowners affected and provided the territory is unimproved and uninhabited wetlands, the city council may resolve to request the county court to exclude the territory from the limits of the municipal corporation and remit it back to the county and a hearing shall be had on the petition as prescribed in § 14-38-103.

History. Acts 1875, No. 1, § 90, p. 1; C. & M. Dig., § 7487; Pope's Dig., § 9530; A.S.A. 1947, § 19-320; Acts 1997, No. 140, § 1.

14-40-1802. Order for exclusion.

  1. After hearing the petition, if the county court shall be satisfied that a majority of the qualified electors of the corporation are in favor of the exclusion of the territory mentioned in the petition from within its limits, or alternatively that the city council has resolved to request that the territory be excluded from the limits of the municipal corporation and remitted back to the county, that the territory to be excluded has been accurately described, and that it would be proper and right to grant the petition, it shall make an order excluding the territory in the petition mentioned from the limits of the municipal corporation and remitting it back to the county.
    1. It shall be the duty of the clerk of the court to make out a certified copy of the order and to deliver it to the recorder of his or her county, whose duty it shall be to record the order in the proper book of records in his or her office.
    2. It shall also be the duty of the recorder to make out and forward to the Secretary of State a certified copy of the record.

History. Acts 1875, No. 1, § 90, p. 1; C. & M. Dig., § 7488; Pope's Dig., § 9531; A.S.A. 1947, § 19-321; Acts 1997, No. 140, § 2.

14-40-1803. When effective — Limitation.

  1. After the record shall have been filed and a copy forwarded to the Secretary of State, the territory shall cease to be a part of the municipal corporation.
  2. The limits of cities of the first and second class shall not be reduced to an area less than they were on January 1, 1872.

History. Acts 1875, No. 1, § 90, p. 1; C. & M. Dig., § 7489; Pope's Dig., § 9532; A.S.A. 1947, § 19-322.

Subchapter 19 — Detachment of Unsuitable Territory

Effective Dates. Acts 1961, No. 92, § 3: Feb. 16, 1961. Emergency clause provided: “Whereas, it appears that there are now municipal corporations within the State whose original city limits were extended so as to include areas which, because of error or otherwise, are no longer recognized by City and County Officials as being a part of said corporations, and whereas portions of such areas are no longer suitable for urban development within the foreseeable future, the official maintaining of such areas within the corporate limits is causing confusion among officials and working a hardship upon property owners in both the corporations and in such area or territory, an emergency is hereby declared and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect immediately upon its passage and approval.”

14-40-1901. Designation by resolution.

  1. Whenever it appears that the official corporate limits as shown by the records of the Secretary of State for any city or incorporated town have for more than ten (10) years included an area or territory that has not been recognized by city or incorporated town officials and assessed for taxation as a part of the city or incorporated town during the period, because of error or otherwise, and which has not been legally detached from the city or incorporated town, then the city or incorporated town council may designate and determine by resolution for any portion of the area or territory which it believes is unsuitable for urban development in the foreseeable future, that it is no longer necessary for corporate purposes, and that it desires to officially detach the designated area or territory outside of its corporate limits, retaining the remainder of the unrecognized territory therein.
  2. A certified copy of the resolution shall then be filed with the county court of the county where the city or town is situated or the county where the area or territory affected is situated, together with a petition that a hearing be held by the court to determine whether the designated portions of the area or territory shall be officially excluded from the city or incorporated town limits.

History. Acts 1961, No. 92, § 1; A.S.A. 1947, § 19-325.

14-40-1902. Hearing and determination.

  1. Upon the filing of the petition, the county court shall set a date for hearing thereon, not less than fifteen (15) days nor more than thirty (30) days after the first publication of notice of the filing of the petition. Notice of the filing shall be published once each week for not less than two (2) weeks in a newspaper having a general circulation in the city or incorporated town.
    1. After hearing the petition, if the court shall be satisfied that the designated area or territory has not been recognized by city or incorporated town officials and has not been assessed for taxation as a part of the city or incorporated town for more than ten (10) years, that it is no longer suitable for urban development, that the territory to be excluded is accurately described, and that the welfare of the inhabitants and property owners of both the city or incorporated town and of the area or territory affected will be best served, it shall make an order excluding designated area or territory described in the petition or such portions thereof as it determines should be so excluded from the limits of the city or incorporated town and remitting it back to the county.
    2. The clerk of the county shall certify a copy of the order to the recorder of the county, to be recorded by him or her, and shall likewise cause a certified copy to be forwarded to the Secretary of State, to be otherwise filed as provided by law.

History. Acts 1961, No. 92, § 2; A.S.A. 1947, § 19-326.

14-40-1903. Public utility service.

Any public utility serving the area detached shall have the right to continue to serve in the detached area on the same basis as service had been previously rendered prior to the action of the city or incorporated town council in adopting the resolution detaching the territory, except that no franchise tax shall be payable thereafter to the city or incorporated town.

History. Acts 1961, No. 92, § 4; A.S.A. 1947, § 19-327.

Subchapter 20 — Municipal Services

Effective Dates. Acts 1999, No. 779, § 6: Mar. 22, 1999. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly that certain lands may be inadequately served by the municipality in which it is located while the needed services exist in a bordering municipality; that this creates an inequitable situation for the landowner; that annexation into the other municipality should be allowed in order for the land to be put to its best use; and that this inequitable situation must be remedied at the earliest opportunity. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2001, No. 1522, § 2: Apr. 12, 2001. Emergency clause provided: “It is found and determined by the General Assembly that certain Arkansas public trusts with lands from military reservations have made requests for services from municipalities under Act 779 of 1999; that the availability of municipal utility services and infrastructure is critical to the development plans for those public trusts; that those public trusts must preserve the current law under Act 779 to meet their needs to fulfill development plans for infrastructure needed to support development of the former military reservation lands; and that it is necessary for this act to have immediate effect to preserve the current state of law under Act 779 for these kinds of entities. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2001, No. 1525, § 4: Apr. 12, 2001. Emergency clause provided: “It is found and determined by the Eighty-third General Assembly of the State of Arkansas that Act 779 of 1999 was enacted because certain lands were being inadequately served by the municipality in which they were located while the needed services existed in a bordering municipality and the act authorized a landowner to annex into another municipality for new services to put the land to its best use; that Act 779 lacked sufficient safeguards in its time limits and lacked a fact finding process and decision-maker to determine certain issues; and that these weaknesses need to be addressed and implementation of these safeguards should take effect as soon as possible to eliminate any further situations which must be remedied. It is also determined that it would be inequitable to apply these changes in law to any detachment which was requested prior to its effective date. Therefore an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Cross References. Land use in adjacent and contiguous cities, § 14-56-306.

14-40-2001. Purpose.

It is the purpose of this subchapter to assist landowners to obtain municipal services by making the services reasonably available. However, nothing in this subchapter shall relieve a landowner from the obligation to pay regular fees and costs for connecting to services or from the obligation to pay the regular cost of the services.

History. Acts 1999, No. 779, § 1.

Case Notes

Annexation.

Detachment-Annexation Statutes were met in the company's action seeking to have a second city annex its property where the circuit court erred in its interpretation that the first city did not provide water and sewer services to its citizens because the city did not own a water or sewer system. City of Maumelle v. Jeffrey Sand Co., 353 Ark. 686, 120 S.W.3d 55 (2003).

Trial court did not err in finding that landowners' annexation into an adjoining city complied with this section and § 14-40-2002, and the court rejected the city's argument that the necessary services were already available to the landowners; sewer service, as defined in § 14-40-2002(e), was not available to the landowners when they requested such services by the city, and sewer service was necessary to maximize the use of property as provided in the statute. City of Rockport v. City of Malvern, 356 Ark. 393, 155 S.W.3d 9 (2004).

Commitment to Provide Services.

Because the city failed to demonstrate a commitment to providing services within a reasonable time, the trial court did not err in finding that the city did not meet its burden of showing compliance with this section and § 14-40-2002. City of Rockport v. City of Malvern, 356 Ark. 393, 155 S.W.3d 9 (2004).

Cited: City of Rockport v. City of Malvern, 2010 Ark. 449, 374 S.W.3d 660 (2010); City of Tontitown v. First Sec. Bank, 2017 Ark. App. 326, 525 S.W.3d 18 (2017).

14-40-2002. Annexation into adjoining municipality.

    1. A landowner or group of landowners seeking additional municipal services may have its land detached from the municipality in which it is located and annexed into another municipality that borders the land.
    2. However, before annexation is allowed, the municipality in which the land is located shall have an opportunity to provide the additional services.
  1. The following procedure shall apply:
    1. The landowner or landowners shall file a statement with the municipality in which the land is located listing the additional municipal service or services being sought and stating that:
      1. The municipality is not providing services necessary to create improvements, provide employment or additional employment, subdivide, or otherwise maximize the use and value of the property;
      2. All the land in the request composes one (1) area that is contiguous to another municipality;
      3. The additional services are available in another municipality that borders the land subject to the request; and
        1. The municipality is requested to make a commitment to take substantial steps, within ninety (90) days after the statement is filed, toward providing the additional services and, within each thirty-day period thereafter, to continue taking steps to demonstrate a consistent commitment to provide the service within a reasonable time, as determined by the kind of services requested.
        2. The commitment shall be made in writing to the landowner within thirty (30) calendar days of the filing of the statement, or the landowner may seek to have the land detached from the municipality and annexed into the other municipality.
        3. The landowner shall take appropriate steps to make the land accessible to the service and comply with reasonable requests of the municipality that are necessary for the service to be provided;
    2. The landowner or landowners may request the annexation of the land into the other municipality and thereby detach the land from the boundaries of the municipality in which the land is currently located if:
      1. The municipality in which the land is located fails to execute a commitment to services within thirty (30) days after the statement is filed; or
      2. The municipality executes the commitment to services but fails to take the action required under subdivision (b)(1)(D) of this section;
      1. The land shall be annexed into the other municipality if, after a request by the landowner or landowners, the governing body of the municipality into which annexation is sought indicates by ordinance, resolution, or motion its commitment to make the services available and its approval of the request for annexation.
        1. The annexation shall be void and the land shall be returned to the original municipality if the annexing municipality fails to take substantial steps within ninety (90) days after the passage of the ordinance, resolution, or motion to make the services available and, within each thirty-day period thereafter, continues taking steps demonstrating a consistent commitment to make the additional service available within a reasonable time, as determined by the kind of services requested.
        2. The landowner shall have taken appropriate steps to make the land accessible to the service and complied with the reasonable requests of the municipality that are necessary for the service to be provided.
        3. However, if the requested services are not available within one hundred eighty (180) days after the property is accepted by the annexing jurisdiction or substantial steps are not taken to make the services available within this time period, then the detachment and annexation shall be void and all property returned to its original jurisdiction; and
    3. The land shall remain in the original municipality until it is annexed into the other municipality.
  2. Land annexed pursuant to this section shall not be eligible for reannexation under this section for a period of two (2) years.
  3. This section shall apply to residential, commercial, industrial, and unimproved land.
  4. For the purposes of this section, “services” means electricity, water, sewer, fire protection, police protection, drainage and storm water management, or any other offering by the municipality that materially affects a landowner's ability to develop, use, or expand the uses of the landowner's property.

History. Acts 1999, No. 779, § 2; 2001, No. 1522, § 1; 2001, No. 1525, §§ 1, 2; 2013, No. 1455, § 1; 2019, No. 838, § 1.

A.C.R.C. Notes. Acts 2001, No. 1522, § 1 provided:

“If any changes are made to this section [§ 14-40-2002] during the 2001 Regular Session of the General Assembly, those changes of law shall not be applicable to the land, buildings, or improvements which were a part of any military reservation which has been or in the future is conveyed to an Arkansas public trust by the United States of America or any agency, branch, arm, or department thereof, except that § 14-40-2003 shall be applicable to those lands, buildings, and improvements.”

Amendments. The 2013 amendment inserted “additional” in (a)(2), (b)(1), (b)(1)(C), (b)(1)(D)(i), and (b)(3)(B)(i); deleted “available” following “services” in (b)(1)(D)(i) and (b)(3)(B)(i); and in (b)(3)(B)(iii), substituted “available” for “provided, accepted, and in place,” substituted “make” for “provide, accept, and have,” and substituted “available” for “in place.”

The 2019 amendment substituted “shall” for “must” in (b)(1)(D)(ii), (b)(1)(D)(iii), and (b)(3)(B)(ii); substituted “composes” for “must compose” in (b)(1)(B); substituted “ninety (90) days” for “one hundred eighty (180) days” in (b)(1)(D)(i) and (b)(3)(B)(i); substituted “shall” for “must” in (b)(1)(D)(ii), (b)(1)(D)(iii), and (b)(3)(B)(ii); and substituted “one hundred eighty (180) days” for “twelve (12) months” in (b)(3)(B)(iii).

Case Notes

Annexation.

The requirements of the Detachment-Annexation Statutes were met in a company’s action seeking to have a second city annex its property where the circuit court erred in its interpretation that the first city did not provide water and sewer services to its citizens because the city did not own a water or sewer system. City of Maumelle v. Jeffrey Sand Co., 353 Ark. 686, 120 S.W.3d 55 (2003).

Trial court did not err in finding that landowners' annexation into an adjoining city complied with this section and § 14-40-2001, and the court rejected the city's argument that the necessary services were already available to the landowners; sewer service, as defined in subsection (e) of this section, was not available to the landowners when they requested such services by the city, and sewer service was necessary to maximize the use of property as provided in the statute. City of Rockport v. City of Malvern, 356 Ark. 393, 155 S.W.3d 9 (2004).

In appellant's action to declare an annexation void, a circuit court's finding that appellee and landowners were substantially in compliance with the annexation requirements of this section was proper as appellee provided a sewer line for the landowners to connect to and the landowners took steps towards connecting to the line. City of Rockport v. City of Malvern, 2010 Ark. 449, 374 S.W.3d 660 (2010).

When annexed lands did not compose one area, under subdivision (b)(1) of this section, the annexations were not invalid because separate lands could be annexed at one time. City of Rockport v. City of Malvern, 2012 Ark. 445, 424 S.W.3d 870 (2012).

Annexation of lands from a city to a municipality, at the request of the lands' owners, was not invalid due to being done by resolution, rather than ordinance because (1) this section clearly contemplated annexation by resolution, and (2) a reference in § 14-40-2004(c) to “ordinance” did not govern, as this section was the more specific statute. City of Rockport v. City of Malvern, 2012 Ark. 445, 424 S.W.3d 870 (2012).

Annexation of lands from a city to a municipality, at the request of the lands' owners, was not invalid when the city's streets separated annexed lands from the municipality, for lack of contiguity to the municipality, under subdivision (b)(1)(B) of this section, because a street did not break contiguity, since landowners held all rights to the land not inconsistent with public use of the street. City of Rockport v. City of Malvern, 2012 Ark. 445, 424 S.W.3d 870 (2012).

Commitment to Provide Services.

The trial court erred in finding as a matter of law that a municipality did not make a commitment to provide requested sewer services where the municipality hired an engineering firm to conduct a feasibility study and committed to provide sewer service “as soon as feasibly possible.” City of Lowell v. City of Rogers, 345 Ark. 33, 43 S.W.3d 742 (2001).

Because the city failed to demonstrate a commitment to providing services within a reasonable time, the trial court did not err in finding that the city did not meet its burden of showing compliance with this section and § 14-40-2001. City of Rockport v. City of Malvern, 356 Ark. 393, 155 S.W.3d 9 (2004).

Circuit court properly granted declaratory judgment to the landowner bank where the municipality failed to inform the bank that specific plans and an engineer were needed before sewer and water services could be provided to the unimproved portion of the property; the municipality failed to take substantial steps, as required by this section, toward providing the services. City of Tontitown v. First Sec. Bank, 2017 Ark. App. 333, 522 S.W.3d 834 (2017).

Jurisdiction.

Circuit court had subject-matter jurisdiction to consider a landowner bank's petition for an order declaring that a municipality had failed to comply with this section, where the pleadings stated the statutory basis for jurisdiction and § 14-40-2004 allowed for such a petition. City of Tontitown v. First Sec. Bank, 2017 Ark. App. 333, 522 S.W.3d 834 (2017).

Standing.

A city in which property was originally located had standing to argue that another city which annexed the property did not meet the requirements of the annexation statute, as whether the property remained a part of the first city depended upon whether the second city met its obligations under the annexation statute. City of Lowell v. City of Rogers, 345 Ark. 33, 43 S.W.3d 742 (2001).

14-40-2003. No split or island.

  1. In no event shall the provisions of this subchapter allow a municipality to be split in half or to have any of its land separately encircled, thereby creating an island of that city within the boundaries of another city.
  2. Any detachment and annexation occurring that creates a split or island shall be void and all properties returned to their original municipality.

History. Acts 2001, No. 1525, § 3.

A.C.R.C. Notes. Acts 2001, No. 1522, § 1 provided:

“If any changes are made to this section [§ 14-40-2002] during the 2001 Regular Session of the General Assembly, those changes of law shall not be applicable to the land, buildings, or improvements which were a part of any military reservation which has been or in the future is conveyed to an Arkansas public trust by the United States of America or any agency, branch, arm, or department thereof, except that § 14-40-2003 shall be applicable to those lands, buildings, and improvements.”

As amended in 2001, subsection (b) began:

“After April 12, 2001.”

14-40-2004. Hearing in circuit court — Appeal.

    1. The circuit courts of the state shall have exclusive jurisdiction to hear all matters related to this subchapter.
    2. The circuit court of the county in which the municipalities are located or, in the event that the municipalities are located in different counties or judicial districts, the circuit court of the county or judicial district that has within the county's or judicial district's boundaries the smallest of the two (2) municipalities in population according to the latest federal decennial census, shall have exclusive jurisdiction to hear all matters related to this subchapter.
      1. Upon petition of either affected municipality, the landowner or group of landowners, or its representatives, the circuit judge shall hold a hearing or series of hearings related to the provisions of this subchapter.
      2. The municipalities, the landowner who requested annexation, and a landowner who began owning land after the annexation request are parties to the hearings.
    1. The circuit judge shall make findings as are necessary to determine whether there has been substantial compliance or noncompliance with the requirements of this subchapter.
  1. The petition under subdivision (b)(1) of this section shall be filed no later than twenty (20) days after the adoption or rejection of the ordinance, resolution, or motion bringing the subject property into the annexing jurisdiction.
  2. In the event an action is brought in circuit court by any party, the time period for the requested services to be available as provided in § 14-40-2002(b)(3)(B)(iii) shall be tolled until entry of a ruling by the circuit judge and the conclusion of any appeals from that court.

History. Acts 2001, No. 1525, § 3; 2013, No. 1455, § 2.

Amendments. The 2013 amendment added the (b)(1)(A) designation, and added (b)(1)(B); substituted “petition” for “request” in (b)(1)(A); rewrote subsection (c); and substituted “available” for “provided, accepted, and in place” in (d).

Case Notes

Annexation.

Annexation of lands from a city to a municipality, at the request of the lands' owners, was not invalid due to being done by resolution, rather than ordinance because (1) § 14-40-2002 clearly contemplated annexation by resolution, and (2) a reference in subsection (c) of this section to “ordinance” did not govern, as § 14-40-2002 was the more specific statute. City of Rockport v. City of Malvern, 2012 Ark. 445, 424 S.W.3d 870 (2012).

Dismissal with Prejudice.

Dismissing with prejudice a municipality's petition challenging annexation against a landowner bank, which had requested detachment under § 14-40-2002, was not error where the municipality had not completed any service at all on the bank, and as a result, the savings statute, § 16-56-126, did not apply. City of Tontitown v. First Sec. Bank, 2017 Ark. App. 326, 525 S.W.3d 18 (2017).

Required Parties.

Circuit court erred in dismissing the neighboring town and the purchaser of the annexed property based solely on the landowner's dismissal from the case as nothing in subdivision (b)(1) of this section required that the bank, as the landowner requesting annexation, be or remain a party to the lawsuit. City of Tontitown v. First Sec. Bank, 2017 Ark. App. 326, 525 S.W.3d 18 (2017).

Although subdivision (b)(1) of this section provides that the municipalities, the landowner who requested annexation, and a landowner who began owning land after the annexation request “are parties”, the Act nowhere requires all of them to be or remain parties in every lawsuit filed under the Act. This section does not use the words “shall be parties”, and the Court of Appeals will not read those words into the statute. City of Tontitown v. First Sec. Bank, 2017 Ark. App. 326, 525 S.W.3d 18 (2017).

14-40-2005. Filing.

  1. All documents produced by landowners, municipalities, or others relating to detachment and annexation as enumerated in this subchapter shall be filed with the circuit clerk with copies served upon the municipality and landowners.
    1. The circuit clerk shall establish a system of filing for these matters upon action's having been taken by a landowner or group of landowners pursuant to the provisions of this subchapter.
    2. The circuit clerk's file shall be considered the official record of all matters and proceedings under this subchapter.

History. Acts 2001, No. 1525, § 3.

14-40-2006. Provision of municipal services.

In a municipal services matter under this subchapter, if a city or incorporated town from which the inhabitants detached determines that the scheduled services are available or became available to the detaching inhabitants by the city or incorporated town to which the inhabitants were annexed into, the inhabitants shall automatically be detached and annexed back into the original city or incorporated town after the expiration of one hundred eighty (180) days following the date the schedule of services became available to the inhabitants and the inhabitants have not used the services.

History. Acts 2015, No. 882, § 1.

Subchapter 21 — Simultaneous Detachment and Annexation

14-40-2101. Simultaneous detachment and annexation by two cities.

  1. When the boundaries of two (2) municipalities are contiguous to and adjoining one another, and one (1) municipality desires to detach and annex territory in another municipality, then the governing body of the municipality desiring to detach and annex territory may propose an ordinance calling for the simultaneous detachment of the lands from the one (1) municipality and the annexation of the lands into its municipal limits. The municipality desiring to annex land in the adjoining city, after the passage of the ordinance calling for detachment and annexation, shall send the ordinance to the governing body of the city or town in which the lands are located.
    1. The ordinance will provide a legal description of the lands proposing to be detached and annexed and describe generally the reasons for proposing the action.
    2. The governing body of the city or town in which the lands are located shall conduct a public hearing within sixty (60) days of the proposal of the ordinance calling for the detachment and annexation.
    3. At least fifteen (15) days prior to the date of the public hearing, the governing body of the proposing municipality shall publish a legal notice setting out the legal description of the territory proposed to be detached and annexed. Municipal officials of the proposing city or town, officials of the city or town in which the lands are located, and property owners within the area proposed to be detached and annexed may appear at the public hearing to present their views on the proposal.
    1. At the next regularly scheduled meeting following the public hearing, the governing body of the municipality in which the lands are located may bring the proposed ordinance up for a vote to concur in the detachment and annexation.
    2. If a majority of the total number of members of the governing body vote for the proposed detachment and annexation ordinance, then a prima facie case for detachment and annexatiion shall be established, and the proposing municipality shall proceed to render services to the newly annexed area.
  2. The decision of the municipal governing bodies shall be final unless suit is brought in the circuit court of the appropriate county within thirty (30) days after passage of the ordinance to review the mutual actions of the governing bodies.
    1. As soon as the ordinance proposing the detachment and annexation is final, the territory shall be deemed and taken to be a part and parcel of the limits of the city or town annexing it, and the inhabitants residing therein shall have and enjoy all the rights and privileges of the inhabitants within the original limits of the city or town.
    2. The governing body of the annexing city or town shall direct the municipal clerk or recorder to duly certify one (1) copy of the plat of the annexed territory and one (1) copy of the proposing ordinance as adopted by both governing bodies to the county clerk.
    3. The clerk shall forward a copy of each document to the Secretary of State, who shall file and preserve them.

History. Acts 1999, No. 988, § 1.

Subchapter 22 — Annexation and Detachment Transparency Act

14-40-2201. Annexation and provision of scheduled services.

    1. Beginning March 1, 2014, and each successive year thereafter, the mayor or city manager of a city or incorporated town shall file annually with the city clerk or recorder, town recorder, and county clerk a written notice describing any annexation elections that have become final in the previous eight (8) years.
    2. The written notice shall include:
      1. The schedule of services to be provided to the inhabitants of the annexed portion of the city; and
      2. A statement as to whether the scheduled services have been provided to the inhabitants of the annexed portions of the city.
  1. If the scheduled services have not been provided to the new inhabitants within three (3) years after the date the annexation becomes final, the written notice reporting the status of the extension of scheduled services shall include a statement of the rights of inhabitants to seek detachment.
  2. A city or incorporated town shall not proceed with annexation elections if there are pending scheduled services that have not been provided in three (3) years as prescribed by law.

History. Acts 2013, No. 1502, § 1.

14-40-2202. Inhabitants of annexed area.

  1. In all annexations under § 14-40-303 and in accordance with § 14-40-606, after the territory declared annexed is considered part of a city or incorporated town, the inhabitants residing in the annexed portion shall:
    1. Have all the rights and privileges of the inhabitants of the annexing city or incorporated town; and
      1. Be extended the scheduled services within three (3) years after the date the annexation becomes final.
      2. The mayor of the municipality shall file a report with the city clerk or recorder, town recorder, and county clerk of the extension of scheduled services.
  2. If the scheduled services have not been extended to the area and property boundaries of the new inhabitants within three (3) years after the date annexation becomes final, the written notice reporting the status of the extension of scheduled services shall:
    1. Include a written plan for completing the extension of services and estimated date of completion; and
    2. Include a statement of the rights of inhabitants to seek detachment.
  3. A city or incorporated town shall not proceed with any additional annexation elections if there are pending scheduled services that have not been extended as required under this subchapter.

History. Acts 2013, No. 1502, § 1.

Chapter 41 Additions to Cities and Incorporated Towns

Research References

C.J.S. 87 C.J.S., Towns, §§ 10-16.

Subchapter 1 — General Provisions

[Reserved]

Subchapter 2 — Filing and Recording Requirements

Cross References. Copies of plats for areas outside municipality to be transmitted to county planning board, § 14-17-208.

Subdividing land outside cities and towns, § 14-18-101 et seq.

Effective Dates. Acts 1907, No. 306, § 7: effective on passage.

14-41-201. Plats of new additions to be filed and recorded — Penalty.

  1. Any person or corporation owning any real estate who shall make any addition of real estate to any incorporated town or city in this state shall be required to file and record a regular plat of it in the office of the circuit clerk and recorder of the county in which the land is situated within thirty (30) days after the addition.
    1. It shall be a misdemeanor for any person, joint-stock company, or corporation to sell or offer for sale any lot or block designated on the map or plat referred to in this section until it has been duly filed in the office of the circuit court and ex officio recorder as required in this section.
    2. Any person, joint-stock company, or corporation who shall violate the provisions of this section shall be guilty of a misdemeanor and on conviction shall be fined not less than twenty-five dollars ($25.00) nor more than one hundred dollars ($100).

History. Acts 1907, No. 306, §§ 1, 3, p. 730; C. & M. Dig., §§ 7481, 7483; Pope's Dig., §§ 9524, 9526; A.S.A. 1947, §§ 19-401, 19-403.

Case Notes

Roadways.

A dedication of streets and alleys across a tract of land is not established merely by proof of making and recording the plat where the lands remain enclosed by the original owner. Balmat v. City of Argenta, 123 Ark. 175, 184 S.W. 445 (1916).

14-41-202. Certification of matters — Penalty.

  1. It shall be the duty of the clerk of the circuit court when any map or plat of any addition to any city or incorporated town in the State of Arkansas has been filed in his or her office as required by § 14-41-201(a) to forthwith certify under his or her hand and seal of office, to the county clerk of the county, in those counties where there are both county and circuit clerks, the name of the addition and the date of the filing of the plat.
  2. The failure of the clerk to so certify the matters to the county clerk for thirty (30) days shall be a misdemeanor. On conviction, the clerk shall be fined not less than twenty-five dollars ($25.00) nor more than one hundred dollars ($100).

History. Acts 1907, No. 306, § 2, p. 730; C. & M. Dig., § 7482; Pope's Dig., § 9525; A.S.A. 1947, § 19-402.

14-41-203. Entry on tax books required — Penalty.

  1. It shall be the duty of the county clerk on receiving the certificate provided for in § 14-41-202(a) to file it in his or her office. Thereafter, before he or she shall deliver the tax books to the assessor, he or she shall enter the number of each lot and block on the tax book for real estate as other real estate is entered, and it shall be assessed as other real estate of like character.
  2. In counties where there is no county clerk, it shall be the duty of the circuit clerks, before they shall thereafter deliver the tax books to the assessor, to enter the number of each lot and block appearing upon any map or plat of any addition to any city or incorporated town in this state which is filed in their office on the tax books for real estate, and it shall be assessed as other real estate of like character.
  3. The failure of any county clerk to comply with the provisions of subsections (a) and (b) of this section shall be a misdemeanor. On conviction, he or she shall be fined not less than ten dollars ($10.00) nor more than twenty-five dollars ($25.00).

History. Acts 1907, No. 306, §§ 4-6, p. 730; C. & M. Dig., §§ 7484-7486; Pope's Dig., §§ 9527-9529; A.S.A. 1947, §§ 19-404 — 19-406.

Subchapter 3 — Reduction to Acreage

Cross References. Validation of return to acreage of platted land outside cities or towns, § 14-18-110.

Effective Dates. Acts 1929, No. 91, § 8: approved Mar. 7, 1929. Emergency clause provided. “This act being necessary for the immediate preservation of the public peace, health and safety of the State of Arkansas, shall be in force and effect from and after its passage.”

14-41-301. Applicability.

This subchapter shall not apply to any part of an addition or division less than one-third (1/3) of the whole as shown by the original plat filed in the office of the circuit clerk.

History. Acts 1929, No. 91, § 4; Pope's Dig., § 9517; A.S.A. 1947, § 19-410.

14-41-302. Right generally.

The owner of any addition or division to any city or incorporated town in this state where no lots or blocks, or any part thereof, have been sold and the streets and alleys have not been used by the public for the last seven (7) years prior to the filing of the petition shall have the right to reduce the addition or division to acreage by petition to the county court where the property is situated.

History. Acts 1929, No. 91, § 1; Pope's Dig., § 9514; A.S.A. 1947, § 19-407.

Case Notes

Cited: Rinke v. Weedman, 232 Ark. 900, 341 S.W.2d 44 (1960).

14-41-303. Parties to petition.

If at any time one (1) person owns, or two (2) or more persons own jointly or as tenants in common, or a corporation owns all the lots and blocks in any addition or division to any city or incorporated town in this state, the streets and alleys of which have not been used by the public for the last seven (7) years prior to the filing of the petition, then the person, persons, or corporation may have the addition or division reduced to acreage by proper petition to the county court.

History. Acts 1929, No. 91, § 2; Pope's Dig., § 9515; A.S.A. 1947, § 19-408.

14-41-304. Owners of parts.

The owners of any part of an addition or division shall have the right to have it reduced to acreage, as in the cases provided in §§ 14-41-302 and 14-41-303. However, the lots and blocks shall be contiguous. No streets and alleys shall be included in the order reducing the parts of additions or divisions to acreage unless the owners shall have the legal title and be in the actual possession of all the lots and blocks surrounding the streets and alleys.

History. Acts 1929, No. 91, § 3; Pope's Dig., § 9516; A.S.A. 1947, § 19-409.

14-41-305. Notice of petition.

  1. Upon the filing of a petition, the county court shall immediately cause notice to be published for two (2) consecutive weeks by at least two (2) insertions in some newspaper published in the county having a bona fide circulation therein, stating the substance contained in the petition.
  2. The county court shall immediately provide the filed petition to the city clerk of the city or incorporated town in which the property is located.

History. Acts 1929, No. 91, § 5; Pope's Dig., § 9518; A.S.A. 1947, § 19-411; Acts 2007, No. 14, § 1.

14-41-306. Hearing and order.

  1. The county court shall hear the petition at the first day of the court held after publication of the notice filed under § 14-41-305 if not continued for cause and upon proper showing shall order that the addition or division, or part thereof, be reduced to acreage.
  2. If the county court issues an order pursuant to subsection (a) of this section that the addition or division be reduced to acreage, then the addition or division shall thereafter be assessed as acreage for taxation of all kinds.
  3. The county court shall immediately provide the filed order to the city clerk of the city or incorporated town in which the property is located.

History. Acts 1929, No. 91, § 6; Pope's Dig., § 9519; A.S.A. 1947, § 19-412; Acts 2007, No. 14, § 2.

14-41-307. Appeals.

Any person aggrieved by an order under § 14-41-306 may appeal to the circuit court in the manner provided by law for appeals from the county court.

History. Acts 1929, No. 91, § 7; Pope's Dig., § 9520; A.S.A. 1947, § 19-413.

Chapter 42 Government Of Municipalities Generally

Research References

Am. Jur. 56 Am. Jur. 2d, Mun. Corp, § 98 et seq.

C.J.S. 62 C.J.S., Mun. Corp., § 106 et seq.

Subchapter 1 — General Provisions

Preambles. Acts 1945, No. 10 contained a preamble which read:

“Whereas, the municipalities of this state are now losing competent employees to private industry who are attracted not so much by high wages as by the fact that they desire the protection afforded by being included under a retirement system; and

“Whereas, qualified individuals are refusing to enter municipal employment, because such protection is not given; and

“Whereas, municipal employees are not now covered by Social Security; and

“Whereas, municipal payrolls now include many elderly employees whose productive capacity has been impaired; and

“Whereas, the retention of aged individuals tends to induce other employees on the same job to slacken their efforts to the same level of production….”

Effective Dates. Acts 1875, No. 1, § 95: effective on passage.

Acts 1883, No. 120, § 2: effective on passage.

Acts 1895, No. 54, § 5: effective on passage.

Acts 1919, No. 230, § 4: approved Mar. 11, 1919. Emergency clause provided: “This act being necessary for the immediate preservation of the public peace, health and safety, shall take effect and be in force from and after its passage.”

Acts 1923, No. 153, § 6: approved Feb. 21, 1923. Emergency clause provided: “This act being necessary for the immediate preservation of the public peace, health and safety an emergency is hereby declared to exist and this act shall be in force from and after its passage.”

Acts 1929, No. 115, § 2: effective on passage.

Acts 1941, No. 288, § 4: Mar. 26, 1941. Emergency clause provided: “It is hereby ascertained and declared that there is much suffering in the State which can be relieved through Community Chest and other charitable organizations. These organizations are badly in need of funds, and, this act being necessary for the preservation of the public peace, health and safety, an emergency is declared to exist, and this act shall become effective from and after its passage and approval.”

Acts 1945, No. 10, § 2: approved Jan. 31, 1945. Emergency clause provided: “That this act shall take effect from and after its passage, the public welfare requiring it.”

Acts 1963, No. 182, § 2: approved Mar. 7, 1963. Emergency clause provided: “Under existing law, considerable doubt exists as to the validity of business transactions between a municipal corporation and various banks, utilities, newspapers, and other services institutions located within the municipality and in which Aldermen or members of municipal councils are minority stockholders so that the right of the municipal corporation to do business of this nature with any local institution is often brought into question, making this Act necessary to protect the public peace, health, safety and welfare; and an emergency is hereby declared to exist and this Act shall be in full force and effect from and after its passage.”

Acts 1975, No. 161, § 3: Feb. 12, 1975. Emergency clause provided: “It is hereby found and determined by the General Assembly that it is necessary to the efficient and effective operation of municipal government in certain second-class cities and incorporated towns that there be selected an official city attorney to represent such cities; that this Act is designed to permit the appointment of such attorneys in those cities in which such attorneys have not been elected, and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1977, No. 9, § 4: Jan. 27, 1977. Emergency clause provided: “Whereas, in many cities and towns vacancies exist on municipal governing bodies and as a result of existing law a unanimous vote or an extraordinary majority is required to make appointments to fill such vacancies and therefore these municipalities are sometimes hampered in their ability to adequately render municipal services for the people of this State; therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate protection of the public peace, health and safety shall take effect immediately upon its passage and approval.”

Acts 1981, No. 124, § 3: Feb. 19, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that it is in the public interest that the citizens of this State be encouraged to participate in public affairs; that due to confusion in the present laws, many persons who serve as volunteer firemen are uncertain as to whether such service limits or restricts their authority to seek election to, and to serve on, the governing body of the municipality in which they serve as volunteer firemen; that it is the consensus of the General Assembly that the small amount of pay received by volunteer firemen only when they are called upon to render fire service duties does not constitute a conflict of interest within any statutory or constitutional limitation, and that the immediate passage of this Act is necessary to clarify the authority of volunteer firemen to serve on the governing body of the municipality wherein the firemen serve. Therefore, an emergency is hereby declared to exist and this Act, being necessary for the immediate preservation of the public peace, health, and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1981, No. 303, § 4: Mar. 4, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that when vacancies exist in the position of alderman and the remaining term exceeds one year in cities of over 50,000 having a mayor-council form of government and in which the electors of each ward elect at least one (1) alderman, the filling of the vacant position by appointment deprives the people of a voice in filling what should be an elected position; that this Act is designed to correct this undesirable situation and should be given effect immediately. Therefore, an emergency is declared to exist, and this Act being necessary for the immediate protection of the public peace, health and safety shall take effect immediately upon its passage and approval.”

Acts 1981, No. 485, § 3: Mar. 13, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly of the state of Arkansas that the provisions of Arkansas Statutes 19-909 which provide that no member of a city council shall be interested in the profits of any contract for work or services performed for the city or town are unduly restrictive especially as applied by small cities and towns where a member of the council may have a majority interest in the only business in town offering the supplies, equipment or services covered by the proposed contract; that the public interest will best be served by permitting council members to have a pecuniary interest in contracts entered into with the city or town if the governing body of the city specifically authorizes the same by ordinance; that this Act is designed to accomplish this purpose and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1995, No. 914, § 7: Apr. 5, 1995. Emergency clause provided: “It is hereby found and determined by the General Assembly that in some instances vacancies in the positions of the department heads of some cities are not being timely filled; that this results in confusion and inefficiency within the municipal government; that this act provides a mechanism whereby the vacancies in department head positions may be filled more efficiently in a more timely manner; therefore this act should go into effect as soon as possible. Therefore, an emergency is hereby declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall be in full force and effect from and after passage and approval.”

Acts 1995 (1st Ex. Sess.), No. 13, § 13: Oct. 23, 1995. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that the current system of funding the state judicial system has created inequity in the level of judicial services available to the citizens of the state; and it is further determined that the current method of financing the state judicial system has become so complex as to make the administration of the system impossible, and the lack of reliable data on the current costs of the state judicial system prohibits any comprehensive change in the funding of the system at this time. Therefore, an emergency is declared to exist and this act being necessary for the immediate preservation of the public peace, health, and safety, shall be in full force and effect from and after its passage and approval.”

Acts 2005, No. 163, § 2: Feb. 15, 2005. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that there is currently no statute that authorizes the removal of a municipal official who pleads guilty or nolo contendere to, or is found guilty of, a federal offense. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2011, No. 1185, § 21: Oct. 2, 2011.

Research References

ALR.

Modern status of rule excusing governmental unit from tort liability on theory that only general, not particular, duty was owed under circumstances. 38 A.L.R.4th 1194.

Validity and construction of statute or ordinance limiting the kinds or amount of actual damages recoverable in tort action against governmental unit. 43 A.L.R.4th 19.

Municipal liability for negligent fire inspection and subsequent enforcement. 69 A.L.R.4th 739.

Am. Jur. 56 Am. Jur. 2d, Mun. Corp. & Coun., § 125 et seq.

14-42-101. Savings provision.

Any municipal corporation in which, under its former organization prior to March 9, 1875, by any law or charter regulating any literary, charitable, or benevolent institution, vested any power of appointing officers of supervision or control, shall continue to hold and possess the like power and authority in every respect.

History. Acts 1875, No. 1, § 32, p. 1; C. & M. Dig., § 7519; Pope's Dig., § 9579; A.S.A. 1947, § 19-906.

14-42-102. Corporate authority of cities.

The corporate authority of cities that are organized shall be vested in one (1) principal officer, to be called the mayor, and one (1) board of council members, to be called the city council, together with such other officers as are mentioned in this subtitle or may be created under its authority.

History. Acts 1875, No. 1, § 5, p. 1; C. & M. Dig., § 7459; Pope's Dig., § 9492; A.S.A. 1947, § 19-901; Acts 2017, No. 879, § 9.

Amendments. The 2017 amendment substituted “council members” for “alderman”.

Cross References. Corporate authority of towns, § 14-45-101.

Case Notes

In General.

No one but the state may challenge the existence of a municipal corporation, nor take advantage of the abandonment of corporate rights. Searcy v. Yarnell, 47 Ark. 269, 1 S.W. 319 (1886); Town of Madison v. Bond, 133 Ark. 527, 202 S.W. 721 (1918).

Mayors.

The mayor of a second class city is a member of the council of a second class city and thereby entitled to vote on the municipal council's ordinances. Clark v. Mahan, 268 Ark. 37, 594 S.W.2d 7 (1980).

Cited: Leadership Roundtable v. City of Little Rock, 499 F. Supp. 579 (E.D. 1980).

14-42-103. Vacancies in municipal offices.

    1. Vacancies in municipal offices that are authorized by state law to be filled by appointment by the city or town governing body require a majority vote of the remaining members of the governing body.
    2. However, a majority of a quorum of the whole number of the governing body is required to fill the vacancy.
    1. The governing body may appoint any qualified elector, including members of a governing body, to fill the vacancy.
    2. However, a member of the governing body shall not vote on his or her own appointment.
  1. This section does not apply to circumstances prescribed under § 14-43-501(a) or § 14-43-411(a).

History. Acts 1977, No. 9, §§ 1, 2; 1981, No. 303, § 2; A.S.A. 1947, § 19-905.1; Acts 2009, No. 185, § 1.

Amendments. The 2009 amendment redesignated (a) and (b), added (c), and made minor stylistic changes.

Case Notes

Resignation.

Arkansas law does not designate who is the proper authority to accept a municipal officer's resignation. Hopper v. Garner, 328 Ark. 516, 944 S.W.2d 540 (1997).

14-42-104. [Repealed.]

Publisher's Notes. This section, concerning vacancies in certain alderman positions, was repealed by Acts 2009, No. 385, § 1. The section was derived from Acts 1977, No. 9, §§ 1, 2; 1981, No. 303, § 2; A.S.A. 1947, § 19-905.1; Acts 2005, No. 2145, § 25; 2007, No. 1049, § 43; 2007, No. 188, § 1.

14-42-105. Appointments of officers by council.

  1. All appointments of officers by any council of a municipal corporation shall be made viva voce, and the concurrence of a like majority shall be required.
  2. On the votes resulting in the appointment, the names of those voting and for whom they voted shall be recorded, and all such voting shall be public.

History. Acts 1875, No. 1, § 29, p. 1; C. & M. Dig., § 7518; Pope's Dig., § 9578; A.S.A. 1947, § 19-905.

Case Notes

In General.

Election of member to board by oral motion duly passed by municipal council is valid. Steward v. Rust, 221 Ark. 286, 252 S.W.2d 816 (1952).

Jurisdiction.

Courts of equity will not interfere by injunction to determine questions concerning the appointment or election of public officers or their title to office. Davis v. Wilson, 183 Ark. 271, 35 S.W.2d 1020 (1931).

Record.

Appointment to fill a vacancy must be proved by record itself, in the absence of proof that the record has been lost or destroyed. Hill v. Rector, 161 Ark. 574, 256 S.W. 848 (1923).

Voting.

A motion and a second are not required for a valid city council vote. O'Brien v. City of Greers Ferry, 293 Ark. 19, 732 S.W.2d 146 (1987).

14-42-106. Oath and bond required.

  1. All officers elected or appointed in any municipal corporation shall take the oath or affirmation prescribed for officers by the Arkansas Constitution.
    1. Except as provided in subdivision (b)(2) of this section, the officers shall take their oaths before:
      1. The Secretary of State or his or her official designee;
      2. A justice or judge;
      3. A judge of the county court;
      4. A clerk of the:
        1. County court;
        2. Circuit court; or
        3. City of the first class;
      5. A recorder of:
        1. A city of the second class; or
        2. An incorporated town; or
      6. A justice of the peace.
    2. The council members also may take their oaths before the mayor of the municipality.
  2. The council members of a municipal corporation may require from the officers, as they think proper, a bond with good and sufficient security and with a proper penalty for the faithful discharge of their office and duty.
  3. The council members shall have the power to declare the office of any elected or appointed person vacant who shall fail to take the oath of office or give the bond required in this section within ten (10) days of the first day of January after his or her election or within ten (10) days after he or she has been notified of his or her appointment. In such case, the council members shall proceed to appoint as in other cases of vacancy.

History. Acts 1875, No. 1, § 73, p. 1; C. & M. Dig., § 7517; Pope's Dig., § 9577; A.S.A. 1947, § 19-904; Acts 1999, No. 650, § 1; 2007, No. 601, § 1; 2017, No. 138, § 1; 2017, No. 879, § 10.

Amendments. The 2017 amendment by No. 138 rewrote (b)(1).

The 2017 amendment by No. 879 substituted “council members” for “alderman” in (b)(2); substituted “council members” for “alderman or council” in (c); and substituted “members” for “or aldermen” twice in (d).

Cross References. Self-Insured Fidelity Bond Program, § 21-2-701 et seq.

Oath of office prescribed by Constitution, Ark. Const., Art. 19, § 20.

Case Notes

Bond.

Official bond containing exact requirements of statute under which it is executed, followed by other provisions not required or recognized by statute, is a statutory bond, and its provisions not in accord with the statute should be treated as surplusage. Jones v. Hadfield, 192 Ark. 224, 96 S.W.2d 959 (1936), cert. denied, Fidelity & Deposit Co. v. Jones, 300 U.S. 667 (1937).

Striking out of statutory bond, so intended by the parties, a conflicting clause incorporated therein contrary to statute, was held not to infringe upon the rights of the parties to contract. Jones v. Hadfield, 192 Ark. 224, 96 S.W.2d 959 (1936), cert. denied, Fidelity & Deposit Co. v. Jones, 300 U.S. 667 (1937).

Surety company executing municipal officer's bond is charged with knowledge at the time of the execution of the bond of what the law requires. Jones v. Hadfield, 192 Ark. 224, 96 S.W.2d 959 (1936), cert. denied, Fidelity & Deposit Co. v. Jones, 300 U.S. 667 (1937).

Cited: Thomas v. Sitton, 213 Ark. 816, 212 S.W.2d 710 (1948).

14-42-107. Interest in offices or contracts prohibited.

    1. A council member or elected official of a municipal corporation, during the term for which he or she has been elected or one (1) year thereafter, shall not be appointed to any municipal office that was created or the emoluments of which have been increased during the time for which he or she has been elected except to fill a vacancy in the office of mayor, council member, clerk, clerk-treasurer, recorder, or recorder-treasurer.
    2. A council member shall not be appointed to any municipal office, except in cases provided for in this subtitle, during the time for which he or she may have been elected.
    1. A council member, official, or municipal employee shall not be interested, directly or indirectly, in the profits of any contract for furnishing supplies, equipment, or services to the municipality unless the governing body of the city has enacted an ordinance specifically permitting council members, officials, or municipal employees to conduct business with the city and prescribing the extent of this authority.
    2. The prohibition prescribed in this subsection does not apply to contracts for furnishing supplies, equipment, or services to be performed for a municipality by a corporation in which no council member, official, or municipal employee holds any executive or managerial office or by a corporation in which a controlling interest is held by stockholders who are not council members.

History. Acts 1875, No. 1, § 86, p. 1; C. & M. Dig., § 7520; Pope's Dig., § 9580; Acts 1963, No. 182, § 1; 1981, No. 485, § 1; A.S.A. 1947, § 19-909; Acts 2003, No. 1299, § 1; 2009, No. 403, § 1; 2017, No. 879, § 11.

Amendments. The 2009 amendment inserted “except to fill a vacancy in the office of mayor, alderman, clerk, clerk-treasurer, recorder, or recorder-treasurer” in (a)(1).

The 2017 amendment, in (a)(1), substituted “A council member” for “No alderman, member of any council”, inserted “not” following “shall”, and substituted “council member” for “alderman”; substituted “A council member shall not” for “No alderman or council member shall” in (a)(2); in (b)(1), substituted “A council” for “No alderman, council”, and deleted “alderman” following “permitting”; and in (b)(2), substituted “does not” for “shall not”, deleted “alderman” following “which no”, and deleted “alderman or” following “are not”.

Research References

Ark. L. Rev.

The Contractual and Quasi-Contractual Liability of Arkansas Local Government Units, 20 Ark. L. Rev. 292.

Official misconduct under the Arkansas Criminal Code, 30 Ark. L. Rev. 160.

Case Notes

Purpose.

By enacting this section, the General Assembly has made an expression of public policy to the effect that aldermen or members of a municipal council are prohibited from entering into contracts with themselves on behalf of the municipality for the purchase of “materials” or for “work or services to be performed for the corporation.” Price v. Edmonds, 232 Ark. 381, 337 S.W.2d 658 (1960).

Common Law.

Common-law rule prohibited municipal officers from self-dealing in regard to the sale of materials as well as in contracts or jobs for work or services. Contracts for materials were held not prohibited by this section, but there could be no reason for invoking a maxim to give validity to a contract void at common law as against public policy simply because it did not fall within the prohibitions of the statute. Price v. Edmonds, 232 Ark. 381, 337 S.W.2d 658 (1960) (decision prior to 1981 amendment).

Contracts.

An ordinance leasing municipal utility plant to the mayor and aldermen of the city is void. Rogers v. Sangster, 180 Ark. 907, 23 S.W.2d 613 (1930).

Corporate Interests.

Ratification by municipal council of a contract between the municipality and a corporation in which members of the council were stock holders was held prohibited. Gantt v. Arkansas Power & Light Co., 189 Ark. 449, 74 S.W.2d 232 (1934) (decision prior to 1963 amendment).

Municipal Offices.

Mayor could not act as manager of municipal system and draw a salary as such while, at the same time, occupying the office of mayor, as such a double role is inconsistent and compatible. Davis v. Doyle, 230 Ark. 421, 323 S.W.2d 202 (1959).

Where the mayor of a city also held a position as bookkeeper for the city, the latter position constituted a prohibited interest in the profits of a contract for the furnishing of services. Thompson v. Roberts, 333 Ark. 544, 970 S.W.2d 239 (1998).

14-42-108. Prohibited actions by municipal officials or employees — Penalty.

    1. It shall be unlawful for any official or employee of any municipal corporation of this state to receive or accept any water, gas, electric current, or other article or service from the municipal corporation, or any public utility operating therein, without paying for it at the same rate and in the same manner that the general public in the municipal corporation pays therefor.
      1. This section shall not affect rights to free or other special services given to certain municipal officials and employees under the terms of franchises in effect with public utilities in this state.
      2. This section shall not apply to any city official or employee of any municipal corporation of this state as to free streetcar transportation.
    1. It shall be unlawful for any city official or employee of any municipal corporation in this state to furnish or give to any person, concerns, or corporations any property belonging to the municipal corporation, or service from any public utility owned or operated by the municipal corporation, unless payment is made therefor to the municipal corporation at the usual and regular rates, and in the usual manner, except as provided in subsection (a) of this section.
    2. The waterworks commission of cities of the first class shall be authorized to make donations of money from the revenue of municipal waterworks systems to the local United Way campaign or other citywide nonsectarian, incorporated charitable organizations.
    1. Any person violating the provisions of this section shall be deemed guilty of a misdemeanor and upon conviction shall be fined in any sum not less than ten dollars ($10.00) nor more than two hundred fifty dollars ($250).
    2. Conviction shall ipso facto remove the official or employee from the municipal office or position held by him or her and shall render him or her ineligible to thereafter hold any office or position under, or in connection with, the municipal corporation.

History. Acts 1919, No. 230, §§ 1-3; C. & M. Dig., §§ 7522-7524; Pope's Dig., §§ 9582-9584; Acts 1941, No. 288, § 1; A.S.A. 1947, §§ 19-916 — 19-918.

Cross References. Penalty provided for in this section not applicable to commissioners making donations to local United Way campaigns, § 14-234-307.

Research References

Ark. L. Rev.

Official misconduct under the Arkansas Criminal Code, 30 Ark. L. Rev. 160.

Case Notes

Constitutionality.

This section is not unconstitutional as a denial of equal protection of the laws; the coupling of the grant of power to a municipal officer with a provision of ineligibility to hold office if that power is abused is rationally related to a legitimate state purpose. Allen v. State, 327 Ark. 350, 939 S.W.2d 270 (1997), review or rehearing denied, 327 Ark. 350, 939 S.W.2d 270 (1997), review or rehearing denied, Allen v. Arkansas, 327 Ark. 366A (1997).

Applicability.

In prosecution for drunken driving this section had no applicability where defendant, requested to have the municipality that was prosecuting him turn over a perchlorate tube which the police had used in making a blood-alcohol test. City of Rogers v. Municipal Court, 259 Ark. 43, 531 S.W.2d 257 (1976).

United Way.

The 1941 amendment of this section was held ineffective to authorize municipality to make a binding subscription to Community Chest (now United Way) payable out of waterworks revenues where this fund was pledged prior to enactment of the amendment for payment of revenue bonds under trust indenture, since payment of the subscription would be a diversion of the security and an impairment of the obligation, the General Assembly was without power to authorize the impairment of the contract, and the fact that revenue is amply sufficient to pay all obligations was held immaterial. City of Little Rock v. Community Chest, 204 Ark. 562, 163 S.W.2d 522 (1942).

Municipality had authority under this section, as amended in 1941, to subscribe to Community Chest (now United Way), there being funds in the municipal treasury sufficient for that purpose. Neel v. City of Little Rock, 204 Ark. 568, 163 S.W.2d 525 (1942).

Violation Found.

Evidence was sufficient to support a guilty verdict against the mayor for receiving sewer services for his store without paying at the same rate and in the same manner as the general public. Allen v. State, 327 Ark. 350, 939 S.W.2d 270 (1997), review or rehearing denied, 327 Ark. 350, 939 S.W.2d 270 (1997), review or rehearing denied, Allen v. Arkansas, 327 Ark. 366A (1997).

Evidence was sufficient to sustain a conviction against the mayor for adjusting bills of persons using water and sewer services so that they were not paying at the regular rates. Allen v. State, 327 Ark. 350, 939 S.W.2d 270 (1997), review or rehearing denied, 327 Ark. 350, 939 S.W.2d 270 (1997), review or rehearing denied, Allen v. Arkansas, 327 Ark. 366A (1997).

14-42-109. Removal of elective or appointed officers.

      1. If the mayor, member of the city council, or any other elective officer of any city of the first class or second class or incorporated town in this state shall wilfully and knowingly fail, refuse, or neglect to execute, or cause to be executed, any of the laws or ordinances within their jurisdiction, they shall be deemed guilty of nonfeasance in office.
        1. It shall be the duty of the circuit court of any county within which any officer may be commissioned and acting, upon indictment charging any such officer with nonfeasance in office, to hear and determine the charges.
        2. If, upon hearing, the charges are proved to be true, the court shall enter a judgment of record removing the guilty officer from office.
    1. The council of any city or incorporated town may provide, by proper ordinance, for the removal of any appointive officer upon a majority vote of the council.
    1. Upon the entering of judgment as provided in subdivision (a)(1) of this section, the office of mayor shall become vacant.
      1. It shall be the duty of the clerk of the circuit court to immediately make out and deliver to the Governor a true and certified copy of the judgment.
      2. Thereupon, it shall be the duty of the Governor to at once appoint and commission a mayor for the city or town to fill the vacancy until his or her successor is elected at the next regular election and qualified.
  1. Any mayor so removed from office shall have the right of appeal to the Supreme Court. However, no appeal shall have the effect of suspending the judgment of removal of the circuit court. If the judgment is reversed, it shall have the effect of reinstating the officer to his or her office.

History. Acts 1895, No. 54, §§ 1-4, p. 69; C. & M. Dig., §§ 7525-7527; Acts 1929, No. 115, § 1; Pope's Dig., §§ 9585-9587; A.S.A. 1947, §§ 19-919 — 19-921; Acts 2017, No. 260, § 5.

A.C.R.C. Notes. Ark. Const. Amend. 80, § 19(B)(2) provided:“District Courts shall have the jurisdiction vested in Municipal Courts, Corporation Courts, Police Courts, Justice of the Peace Courts, and Courts of Common Pleas at the time this Amendment takes effect. District Courts shall assume the jurisdiction of these courts of limited jurisdiction and other jurisdiction conferred in this Amendment on January 1, 2005. City Courts shall continue in existence after the effective date of this Amendment unless such City Court is abolished by the governing body of the city or by appropriate action of the General Assembly. Immediately upon abolition of such City Court, the jurisdiction of the City Court shall vest in the nearest District Court in the county where the city is located.”

Amendments. The 2017 amendment deleted “or police judge” following “mayor” throughout the section.

Case Notes

Constitutionality.

An ordinance limiting the city attorney's salary to $1.00 per annum when in fact the city attorney was uncontested in his bid for the election, passed simultaneously with an ordinance removing the city attorney from office on the eve of the election, was punitive in that it intended to constructively bar him from assuming the position to which he was duly elected by the people; accordingly, the first ordinance and its implementing resolution were unconstitutional as bills of attainder. Crain v. Mountain Home, 611 F.2d 726 (8th Cir. 1979).

Hearing and Determination.

A writ of prohibition would not lie to a circuit court to prohibit a circuit judge from proceeding to try the mayor of a city for nonfeasance in office without a jury; such an action of the circuit judge, if erroneous, was reversible only on appeal. McClendon v. Wood, 125 Ark. 155, 188 S.W. 6 (1916).

Nonfeasance.

The enforcement of the laws rests on the mayor, police judge, and other elective officials. Rowland v. State, 213 Ark. 780, 213 S.W.2d 370 (1948), cert. denied, 336 U.S. 918, 69 S. Ct. 641, 93 L. Ed. 1081 (1949).

Removal.

The actions of a municipal council in impeaching a municipal judge are judicial in their nature, and where the accused has been granted a public hearing and has been represented by council, it is proper for the council to retire and consider their verdict in secret. Faucette v. Gerlach, 132 Ark. 58, 200 S.W. 279 (1918).

Cited: Clark v. Mahan, 268 Ark. 37, 594 S.W.2d 7 (1980).

14-42-110. Appointment and removal of department heads.

    1. Mayors in cities of the first class and second class and incorporated towns shall have the power to appoint and remove all department heads, including city and town marshals when an ordinance has been passed making city and town marshals appointed, unless the city or town council shall vote by a two-thirds majority of the total membership of the council to override the mayor's action.
    2. Provided, however, that in cities of the first class and second class with civil service commissions, the governing body of the city may delegate by ordinance the authority to appoint and remove the heads of the police and fire departments to the city's civil service commission.
  1. City managers in cities having a city manager form of government shall have the power to appoint and remove all department heads. In cities with a city manager form of government and with civil service commissions, the civil service commission shall have the power to override the city manager's appointment or removal of the police or fire chief by a majority vote of the total membership of the commission.
  2. The provisions of this section shall not apply to department heads not under the control of the governing body of the city and shall not apply to cities having a city administrator form of government.

History. Acts 1981, No. 795, §§ 1, 3; A.S.A. 1947, § 19-1013.1; Acts 1995, No. 534, § 1; 1995, No. 914, § 1.

Case Notes

Applicability.

The 1995 amendment to this section applies to persons terminated after its amendment, including those hired before its amendment. Sykes v. City of Gentry, 114 F.3d 829 (8th Cir. 1997).

Interest in Employment.

Although police chief was hired before 1995, his property interest in his position was eliminated in 1995 when the General Assembly amended this section. Sykes v. City of Gentry, 114 F.3d 829 (8th Cir. 1997).

Prior to the amendment of this section in 1995, §§ 14-43-504(e)(2) and former § 14-43-505 created a property interest for a police chief in the position. Sykes v. City of Gentry, 114 F.3d 829 (8th Cir. 1997).

Police chief did not show a due process violation when the chief was summarily terminated by the mayor because this section did not give the chief a right to a hearing before city council. Sullivan v. Coney, 2013 Ark. 222, 427 S.W.3d 682 (2013).

Cited: Weaver v. Collins, 2010 Ark. App. 707, 379 S.W.3d 582 (2010).

14-42-111. [Repealed.]

Publisher's Notes. This section, concerning mayor of city of the second class or incorporated town unable to perform duties, was repealed by Acts 2013, No. 753, § 4. The section was derived from Acts 1883, No. 120, § 1, p. 297; C. & M. Dig., § 7673; Pope's Dig., § 9795; A.S.A. 1947, § 19-910.

14-42-112. Municipal attorneys for cities of the second class or incorporated towns.

    1. All cities of the second class and incorporated towns within the State of Arkansas may elect a municipal attorney at the time of the election of other officers of these cities of the second class and incorporated towns, if it is not established by ordinance that the office of the city attorney will be appointed.
      1. All municipal attorneys elected under the provisions of this section shall be regularly licensed attorneys of this state.
      2. When no attorney resides within the limits of the city or town or when no resident attorney has been elected as municipal attorney, the mayor and city or town council may appoint any regularly licensed attorney of this state to serve as the municipal attorney.
  1. Any municipal attorney elected or appointed under the provisions of this section shall subscribe to the oath of office as all other officers of these cities or towns.
  2. All municipal attorneys are authorized to file information for the arrest of any person for the violation of any ordinance of the city or town or of the laws of this state which are violated within the limits of the city or town.
    1. The duties of the municipal attorney shall be to represent the city or town in all actions, both civil and criminal.
      1. It shall be the duty of the municipal attorney to:
        1. Advise with all city or town officials at any time needed;
        2. Prepare all legal papers, blank forms, etc.;
        3. File a complete report of his or her work with the city or town council at the end of each year; and
        4. If requested to do so, furnish all information in his or her possession to the state courts for the prosecution of cases in the state courts.
      2. Nothing in this section shall prohibit the city or town council from prescribing other duties, and they are authorized to prescribe such other duties as they desire which shall be done by proper ordinance by the council.
  3. The term of office for an elected municipal attorney shall be four (4) years.

History. Acts 1923, No. 153, §§ 1-5; Pope's Dig., §§ 9752-9756; Acts 1975, No. 161, §§ 1, 2; A.S.A. 1947, §§ 19-911 — 19-915; Acts 1993, No. 1306, § 8; 1995, No. 1256, § 20; 1995 (1st Ex. Sess.), No. 13, § 4; 1997, No. 645, § 1; 2005, No. 133, § 1.

Cross References. Attorney of cities of the second class and towns, § 14-88-406.

Election of attorney in cities of the first class, § 14-43-313.

Retirement benefits for city attorneys in cities of the first and second class, § 24-12-120.

Case Notes

Applicability.

This section is inapplicable to city attorney of Hot Springs. Campbell v. City of Hot Springs, 232 Ark. 878, 341 S.W.2d 225 (1960).

Fees.

Attorney who represented city in rate case could not recover fees out of refund decreed by Supreme Court, since there was no agreement by customers of utility providing for deduction of attorney fee from refund. City of Ft. Smith v. Southwestern Bell Tel. Co., 220 Ark. 70, 247 S.W.2d 474 (1952).

Vacancy.

This section does not require second-class cities to fill a vacancy in the city attorney's office in any particular manner. Hopper v. Garner, 328 Ark. 516, 944 S.W.2d 540 (1997).

Cited: Hagen v. State, 315 Ark. 20, 864 S.W.2d 856 (1993).

14-42-113. Salaries of officials — Salary withheld if professional license or registration suspended — Definition.

    1. Except as provided in subsections (b) and (c) of this section, the salary of an official of a city of the first class, a city of the second class, or an incorporated town may be increased during the term for which the official has been elected or appointed and may be decreased during the term only if requested by the official.
    2. When any city official whose salary is decreased under subdivision (a)(1) of this section leaves office before the expiration of his or her term, his or her successor shall receive a salary not less than the salary for the office immediately before the salary was decreased under subdivision (a)(1) of this section.
    1. The salary of an elected official of a city of the first class, a city of the second class, or an incorporated town shall be withheld if:
      1. The elected official is required to hold a professional license or registration as a qualification of his or her position; and
      2. The elected official's professional license or registration is suspended.
    2. Upon suspending the professional license or registration of an elected official of a city of the first class, a city of the second class, or an incorporated town, the agency, board, commission, or other authority that issues the professional license or registration at issue shall notify in writing the appropriate municipality or incorporated town.
    3. Upon learning that an elected official's required professional license or registration has been suspended, the governing body of a city of the first class, city of the second class, or incorporated town may cease paying the elected official's salary from the date of suspension.
      1. Upon restoration of the elected official's professional license or registration, the elected official of a city of the first class, a city of the second class, or an incorporated town may petition the governing body of the city or town for a resumption of salary, and the governing body shall initiate measures to ensure that the elected official's salary is resumed.
      2. The elected official whose salary is resumed under subdivision (b)(4)(A) of this section shall not receive his or her salary for the period that the salary was withheld.
      1. As used in this subsection, “salary” means the compensation paid to an elected official of a city of the first class, a city of the second class, or an incorporated town for service in that position.
      2. “Salary” includes without limitation any benefits provided to the elected official by virtue of his or her position, including without limitation:
        1. Health insurance;
        2. Retirement contributions; and
        3. Retirement benefits.
    1. The salary for a municipal office may be lowered if the municipal office is vacant.
    2. As used in this subsection, “municipal office” means:
      1. Treasurer;
      2. Clerk;
      3. Recorder;
      4. Clerk-treasurer; and
      5. Recorder-treasurer.

History. Acts 1969, No. 249, § 1; A.S.A. 1947, § 19-907.1; Acts 2001, No. 563, § 1; 2011, No. 199, § 1; 2013, No. 523, § 1; 2017, No. 260, § 6; 2019, No. 336, § 1.

Amendments. The 2011 amendment redesignated former (a) as present (a)(1); inserted the exception in (a)(1); redesignated former (b) as present (a)(2); and added present (b).

The 2013 amendment, in (a)(2), substituted “subdivision (a)(1)” for “subsection (a)(1)” and “before” for “prior to”; and rewrote (b)(3) and (b)(4)(A).

The 2017 amendment substituted “official whose salary is resumed” for “official who receives an order for the resumption of his or her salary” in (b)(4)(B).

The 2019 amendment substituted “subsections (b) and (c)” for “subsection (b)” in (a)(1); in (a)(2), substituted “decreased under subdivision (a)(1)” for “decreased pursuant to subdivision (a)(1)” and substituted “before the salary was decreased under subdivision (a)(1)” for “before its being decreased pursuant to subdivision (a)(1)”; substituted “the elected official of a city” for “an elected official of a city” in (b)(4)(A); substituted “The elected official” for “An elected official” in (b)(4)(B); added (c); and made stylistic changes.

Case Notes

Cited: Clark v. Mahan, 268 Ark. 37, 594 S.W.2d 7 (1980).

14-42-114. Social security for municipal employees.

Any municipality incorporated under the laws of the State of Arkansas shall have the power, by a majority vote of its city council or legislative body, to provide for establishing and maintaining a system of social security or old age pensions, or both, for its employees that are not covered by social security or old age pension legislation under such terms and conditions as the city council or legislative body may enact.

History. Acts 1945, No. 10, § 1; A.S.A. 1947, § 19-908.

Cross References. Workers' compensation coverage, § 14-60-101 et seq.

14-42-115. Volunteer firefighter or volunteer police officer on governing body.

    1. It is lawful for a volunteer firefighter or a volunteer police officer in any city of the first class, city of the second class, or incorporated town in this state to seek election to, and if elected, to serve as a member of the city council or other governing body of the city or town.
    2. This service shall not be deemed a conflict of interest and shall not be prohibited by the civil service regulations of any city or town.
  1. A person may serve and receive compensation as a member of the governing body of any city of the first class, city of the second class, or incorporated town and simultaneously serve as a volunteer firefighter or a volunteer police officer and receive compensation as a firefighter or a police officer.
  2. The provisions of this section shall not apply after August 13, 1993, to any city having a city administrator form of government.

History. Acts 1981, No. 124, § 1; 1981, No. 440, § 1; A.S.A. 1947, §§ 19-943, 19-944; Acts 1993, No. 476, § 1; 2003, No. 1048, § 1.

14-42-116. Retirement systems and benefits.

No city of the first class, city of the second class, or incorporated town, regardless of the form of government, shall hereafter establish any retirement benefit system or plan for members of the governing body of the city or town except cities of the first class, cities of the second class, or incorporated towns which had established such system or plan prior to July 3, 1989. However, all systems and plans in existence on July 3, 1989, may continue.

History. Acts 1989, No. 308, § 1.

14-42-117. Election of retirement benefits.

Notwithstanding any other law to the contrary, any employee of a city of the first class, city of the second class, or incorporated town, and any elected official of a city of the first class, city of the second class, or incorporated town who is entitled by an act of the General Assembly to retirement benefits for service as such an employee or elected official and who also participates in another retirement plan established by the city for the same period of service shall be entitled to only one (1) retirement benefit for the same period of service to the municipality, provided that no elected official may withdraw in a lump sum or roll over into a private account any accumulated benefits established by the municipality for which the official was employed and at the same time receive a pension as provided for under an act of the General Assembly, and the employee or elected official may choose whether to receive the retirement benefit provided by law or provided by the plan offered by the municipality.

History. Acts 1989, No. 723, § 1; 1991, No. 604, § 1.

Case Notes

Constitutionality.

There was no violation of the prohibition against ex post facto laws in the application of § 14-42-117 to a man whose right to retirement benefits did not vest prior to the enactment of the statute. Robinson v. Taylor, 342 Ark. 459, 29 S.W.3d 691 (2000).

Construction With Other Laws.

A mayor's right to retirement benefits did not vest until she completed 10 years of service to the city, which occurred after the enactment of this section, and, therefore she forfeited her right to receive the retirement benefit provided by § 24-12-123 when she elected to receive a lump-sum payment from a plan offered by the city. Robinson v. Taylor, 342 Ark. 459, 29 S.W.3d 691 (2000).

14-42-118. Removal of municipal officer for federal offense.

  1. Upon petition by any citizen of the municipality or the prosecuting attorney to the circuit court having jurisdiction, any municipal officer who pleads guilty or nolo contendere to or is found guilty of a federal offense involving embezzlement of public funds, bribery, forgery, or other infamous crime or criminal conduct amounting to a felony, malfeasance, misfeasance, or nonfeasance in office shall be removed from office.
  2. The circuit clerk shall transmit to the Governor and city clerk of the municipality a certified transcript of the removal judgment of the court.
  3. The vacancy shall be filled as may be prescribed by law at the time the vacancy occurs.

History. Acts 2005, No. 163, § 1.

RESEARCH REFERENCES

U. Ark. Little Rock. L. Rev.

Survey of Legislation, 2005 Arkansas General Assembly, Local Government, 28 U. Ark. Little Rock. L. Rev. 373.

14-42-119. Removal of certain elected municipal officials.

  1. A person who holds an elected office in a municipality for a term of four (4) years in a mayor-council form of government is subject to removal from the office by the electors qualified to vote for a successor of the incumbent.
  2. The procedure for the removal of a person holding the office is as follows:
      1. When a petition requesting the removal of an officer under this section, signed by a number of qualified electors equal to twenty-five percent (25%), is filed with the county clerk, the county clerk shall determine the sufficiency of the petition within ten (10) days from the date of the filing.
      2. A petition shall be filed by 12:00 noon not more than one hundred five (105) days nor less than ninety-one (91) days before the next general election following the election at which the officer was elected;
    1. If the petition is deemed sufficient, the county clerk shall certify it to the county board of election commissioners;
    2. At the election, the question shall be submitted to the qualified electors in substantially the following form:
        1. If a majority of the qualified electors voting on the question at the election vote for the removal of the officer, a vacancy shall exist in the office.
        2. The officer shall vacate the office immediately upon certification of the election.
      1. If a majority of the qualified electors voting on the question at the election vote against the removal of the officer, the officer shall continue to serve during the term for which he or she was elected.

“FOR the removal of (name of officer) from the office of (name of office)

AGAINST the removal of (name of officer) from the office of (name of office) [ ]”; and

History. Acts 2009, No. 362, § 1; 2011, No. 1028, § 1; 2011, No. 1185, § 17.

Amendments. The 2011 amendment by No. 1028 substituted “county clerk” for “city clerk” in (b)(1)(A) and (b)(2); and added (b)(4)(A)(ii).

The 2011 amendment by No. 1185, in (b)(1)(B), substituted “one hundred five (105)” for “ninety (90)” and “ninety-one (91)” for “seventy (70).”

14-42-120. Monthly, bimonthly, biweekly, weekly, and hourly salaries for municipal employees.

      1. Except for those municipalities that operate principally on a scholastic year, or on a part-time basis, or where salaries or personal services are specifically established for a period less than one (1) year, all salaries established by the General Assembly or the governing body of the municipality shall be considered to be a maximum amount to be paid for a twelve-month payroll period.
      2. A greater amount than that established for the maximum annual salary of any municipal official or employee shall not be paid to the employee during any twelve-month payroll period, nor shall more than one-twelfth (1/12) of the annual salary be paid to an employee during a calendar month unless otherwise authorized.
    1. The limitations set out in this section may be converted to biweekly or weekly increments of one-twenty-sixth (1/26) or one-fifty-second (1/52) of the maximum annual salary.
    2. For complying with federal requirements, upon approval of the clerk-recorder or treasurer of the municipality, the maximum annual salaries may be converted to hourly rates of pay for positions established on the basis of twelve (12) months or less if authorized by law.
  1. The remuneration paid to an employee of the municipality may exceed the maximum annual salary as authorized by the General Assembly or governing body of the municipality as follows, and the following shall not be construed as payment for services or as salary as contemplated by Arkansas Constitution, Article 16, § 4:
    1. Overtime payments as authorized by law;
    2. Payment of a lump sum to a terminating employee, to include lump-sum payments of sick leave balances upon retirement as provided by law;
    3. Payment for overlapping pay periods at the end of a fiscal year as defined or authorized by law;
    4. Payment for the biweekly twenty-seven (27) pay periods; and
    5. Payments for incentive, certificate, holiday, or working out of classification.

History. Acts 2013, No. 572, § 2.

14-42-121. Allowance for meal tips.

  1. If authorized by the governing body of the municipality, reimbursements to municipal employees for the purchase of meals and meal tips shall be:
    1. Based on the actual expense incurred; or
      1. Made on a per diem basis.
      2. A per diem reimbursement under subdivision (a)(2)(A) of this section shall be made under an accountable plan as defined by Internal Revenue Service regulations as in existence on January 1, 2017.
  2. Reimbursement for meal tips under subsection (a) of this section shall not exceed fifteen percent (15%) of the purchase amount of the meal.

History. Acts 2017, No. 919, § 1.

14-42-122. City attorney in mayor-council cities of fewer than 10,000.

    1. If not established by ordinance that the office of the city attorney will be appointed, the qualified voters of cities of the first class having a population of fewer than ten thousand (10,000) and having the mayor-council form of government shall elect a city attorney for four (4) years on the Tuesday following the first Monday in November 2022 and every four (4) years thereafter.
    2. An incumbent city attorney shall continue in office until his or her successor is elected and qualified.
    1. If no attorney residing in the city is elected as city attorney, the city council may appoint a resident attorney to fill the office for the remainder of the unfilled term.
      1. If no attorney of the city serves as city attorney by election or appointment or if no attorney resides within the municipal boundaries of the city, then upon a two-thirds vote the city council may contract with any licensed attorney of this state or the licensed attorney's law firm to serve as legal advisor, counselor, or prosecutor.
      2. The duties of an attorney under contract shall be prescribed by ordinance.

History. Acts 2019, No. 609, § 1.

14-42-123. Uniform catastrophic leave program — Definition.

  1. As used in this section, “municipality” means a city of the first class, a city of the second class, or an incorporated town.
    1. A municipality may develop, implement, and maintain a catastrophic leave program by ordinance.
    2. A municipal employee may irrevocably donate his or her accrued leave to a catastrophic leave program at the option of the municipal employee.
    3. A municipality may create a “presumptive illness list” of illnesses that are presumed to qualify for catastrophic leave, if the municipality creates the list based on peer-reviewed scientific data.
  2. Catastrophic leave with pay may be granted to a municipal employee if the municipal employee is unable to perform his or her duties due to a catastrophic illness and is, or is reasonably expected to be, on leave without pay as a result of the need for catastrophic leave.
  3. A municipal employee may be eligible for catastrophic leave under this section if the municipal employee:
    1. Works full time;
    2. Has been employed by the municipality for the immediately preceding five (5) consecutive years or more in a full-time position, unless the municipality determines a shorter term of years is appropriate;
    3. Has exhausted all available leave time;
      1. An acceptable medical certificate from a physician supporting the continuing absence is on file and includes without limitation an approximate date of return.
      2. A municipality may require a municipal employee to receive more than one (1) physician opinion; and
    4. Has not been disciplined or counseled for an abuse of leave during the immediately preceding five (5) years.
  4. Unless the municipality determines otherwise, catastrophic leave is not available to a municipal employee under this section if the municipal employee has applied for catastrophic leave as a result of an illness or injury that is covered by workers' compensation benefits under applicable law.
  5. Catastrophic leave under this section shall:
    1. Run concurrently with the Family and Medical Leave Act of 1993, Pub. L. No. 103-3;
    2. Be donated and taken in one-hour increments and donated or applied for on approved forms;
    3. Not be awarded retroactively; and
    4. Be awarded only if catastrophic leave is available in the municipality's catastrophic leave program.

History. Acts 2019, No. 883, § 1.

Subchapter 2 — Elections

Cross References. Conduct of elections, § 7-5-301 et seq.

Elections in cities of the first class, §§ 14-43-201 et seq. and 14-43-301 et seq.

Elections in incorporated towns, §§ 14-45-102, 14-45-104, 14-45-108.

Elections in cities of the second class, §§ 14-44-103, 14-44-105, 14-44-111, 14-44-115.

Effective Dates. Acts 1875, No. 1, § 95: effective on passage.

Acts 2001, No. 1789, § 12: July 1, 2001. Emergency clause provided: “It is found and determined by the General Assembly that Amendment 80 to the Arkansas Constitution becomes effective on July 1, 2001; that this implements the nonpartisan election of justices and judges as mandated by Amendment 80; and that to effectively implement Amendment 80, this act should become effective on July 1, 2001. Therefore, an emergency is declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall become effective on July 1, 2001.”

Acts 2009, No. 1480, § 117: Apr. 10, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act makes various revisions to Arkansas election laws that are designed to improve the administration of elections and special elections and that these revisions should be implemented as soon as possible so that the citizens of this state may benefit from improved election procedures. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2011, No. 1185, § 21: Oct. 2, 2011.

Acts 2015 (1st Ex. Sess.), No. 4, § 8: May 29, 2015. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that independent candidates may circulate petitions for candidacy for ninety (90) days before the deadline for filing as a candidate for office; and that without an emergency clause, the effective date of this act will cause confusion regarding the rights and interests of independent candidates and the time period for circulating petitions for candidacy. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2019, No. 597, § 10: July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that there is a need for uniform candidate filing and petition circulation periods; that if there is a delay in implementation, some candidate filing and petition circulation periods may be disrupted by the change in the middle of a candidate's campaign; and that this act should become effective before candidates begin circulating petitions and filing for candidacy in the 2019 November annual school elections. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

14-42-201. Election of municipal officers generally.

  1. The general election for the election of municipal officials in all cities and incorporated towns shall be held on the Tuesday following the first Monday in November.
  2. All municipal officials of the cities and towns of the State of Arkansas shall take office January 1 of the year following their election.
    1. In addition to other residency requirements imposed by state law for municipal office holders, candidates for the positions of mayor, clerk, recorder, or treasurer must reside within the corporate municipal limits at the time they file as candidates and must continue to reside within the corporate limits to retain elective office.
    2. In cities of the first class and cities of the second class, candidates for the position of council member shall reside within the corporate limits and their respective wards at the time they file as candidates for council member and when holding that office.

History. Acts 1949, No. 307, §§ 1-3; A.S.A. 1947, §§ 19-902.1 — 19-902.3; Acts 1995, No. 555, § 1; 1995, No. 671, § 1; 1999, No. 642, § 1; 2001, No. 1833, § 1; 2017, No. 879, § 12.

Publisher's Notes. The former last part of subsection (c) provided that all officials elected at general municipal elections then serving four-year terms should continue in office until their successors are elected at the first general election following the expiration of their terms and assume the offices on January 1 of the year after the date of the general election, to be elected every four years thereafter.

Subsection (d) was redesignated as (c) at the direction of the Arkansas Code Revision Commission. Former subsection (c) was repealed prior to the 2001 amendment.

Amendments. The 2017 amendment, in (c)(2), substituted “council member” for “alderman” twice.

Case Notes

Residency Requirements.

Where a mayor-elect owned a home outside of the city limits, but rented a residence within the city limits, the circuit court did not clearly err when it found that the state failed to meet its burden of proving that the mayor-elect did not reside within the city limits, as required under subdivision (c)(1) of this section. For the purposes of subsection (c)(1), the legislature intended for “reside” to mean live or be physically present. State v. Jernigan, 2011 Ark. 487, 385 S.W.3d 776 (2011).

In determining the residency of voters and public officials, the Supreme Court of Arkansas considers (1) whether a person is physically present in a particular location, or (2) whether a person intends to establish a domicile in a particular location. In other words, if a candidate is unable to establish residency by showing physical presence in the requisite location, the court allows a candidate to establish residency by showing domiciliary intent in the requisite location. State v. Jernigan, 2011 Ark. 487, 385 S.W.3d 776 (2011).

Cited: Whittaker v. Carter, 238 Ark. 1074, 386 S.W.2d 498 (1965).

14-42-202. [Repealed.]

Publisher's Notes. This section, concerning election of governing boards of certain cities, was repealed by Acts 1995, No. 555, § 1. The section was derived from Acts 1977, No. 808, §§ 1-5; 1983, No. 647, § 1; A.S.A. 1947, §§ 19-902.5 — 19-902.9; Acts 1987, No. 840, § 1; 1991, No. 786, § 13.

14-42-203. Special elections of city mayors.

  1. Special elections of mayors of cities of the first class and cities of the second class shall be held at such time and place as the council directs in accordance with § 7-11-101 et seq.
  2. In all cities there shall be a place appointed in each ward for holding elections, except in cities of the second class electing their council members citywide, where there may be one (1) public place only for holding elections.
  3. Any person who, at the time of the election of municipal officers, is a qualified elector and registered to vote in the city precinct where he or she resides shall be deemed a qualified elector.
  4. All elections shall be held and conducted in the manner prescribed by law for holding state and county elections, so far as the laws may be applicable.

History. Acts 1875, No. 1, § 71, p. 1; C. & M. Dig., § 7515; Acts 1937, No. 259, § 1; Pope's Dig., § 9574; Acts 1959, No. 114, § 1; 1985, No. 422, § 1; A.S.A. 1947, § 19-902; Acts 1997, No. 645, § 2; 2005, No. 2145, § 26; 2007, No. 1049, § 44; 2009, No. 1480, § 62; 2017, No. 879, § 13.

Amendments. The 2009 amendment substituted “§ 7-11-101 et seq.” for “§ 7-5-103(a)” in (a).

The 2017 amendment substituted “council members” for “aldermen” in (b).

Case Notes

Qualified Electors.

Where alderman had moved to another state and voted there, even though he claimed he had never changed his residence from Arkansas, there was substantial evidence to support judgment that he was ineligible as alderman because he was not a qualified elector of the city. Charisse v. Eldred, 252 Ark. 101, 477 S.W.2d 480 (1972) (decision prior to 1985 amendment).

Cited: Whittaker v. Carter, 238 Ark. 1074, 386 S.W.2d 498 (1965); Clark v. Mahan, 268 Ark. 37, 594 S.W.2d 7 (1980).

14-42-204. Election returns generally.

  1. The returns of all municipal corporations shall be made to the county board of election commissioners of the county in which the corporation is situated and shall be opened by them within three (3) days after their receipt.
    1. The election board shall count the vote as it appears from the pollbooks, make an abstract thereof, and forward it to the mayor.
    2. In like manner and without delay, the board shall furnish to each candidate elected a certificate of election or leave it at his or her usual place of abode.

History. Acts 1875, No. 1, § 72, p. 1; C. & M. Dig., § 7516; Pope's Dig., § 9576; A.S.A. 1947, § 19-903.

14-42-205. Elections in municipalities situated in different counties.

  1. In all municipal elections in municipalities situated in two (2) or more counties, a candidate for municipal office shall file for office with the county clerk of the county with the highest population of the municipality based upon the most recent city federal census. The county clerk of the county with the highest population shall certify the municipal candidate to the other counties.
  2. An independent candidate shall file a nominating petition with the county clerk with the highest population in the municipality. The county clerk of the county with the highest population in the municipality shall verify the signatures on a nominating petition from that county and, if necessary to verify signatures from a different county, shall forward the petition to the appropriate county clerk. That county clerk shall return the petition to the county clerk of the county with the highest population in the municipality within five (5) days of receipt. The county clerk of the county with the highest population in the municipality shall certify the sufficiency of the petition and, in order for the name of the candidate to be printed on all ballots, shall file the certification with each county board of election commissioners where the municipal election will be held.
  3. In all municipal elections in municipalities situated in two (2) or more counties, the county board of election commissioners in the county in which fewer residents of the municipality reside shall certify the election results in municipal offices and issues in that portion of the municipality located in such county to the election board of the county in which the greater number of residents of the municipality reside.
  4. The county board of election commissioners in which the greater population of the municipality resides shall tabulate the votes cast on municipal offices and issues and shall certify the election results to the mayor of the municipality as provided in § 14-42-204.

History. Acts 1969, No. 450, § 1; A.S.A. 1947, § 19-903.1; Acts 1997, No. 729, § 1.

14-42-206. Municipal elections — Nominating petitions.

    1. The city or town council of any city or town with the mayor-council form of government, may request the county party committees of recognized political parties under the laws of the state to conduct party primaries for municipal offices for the forthcoming year by resolution passed:
      1. Before January 1 of the year of the election, if the election will occur in a year in which the preferential primary election is held in May under § 7-7-203; and
      2. No less than sixty (60) days before the party filing period begins under § 7-7-203, if the election will occur in a year in which the preferential primary election is held in March under § 7-7-203.
    2. The resolution shall remain in effect for the subsequent elections unless revoked by the city or town council.
    3. When the resolution has been adopted, the clerk or recorder shall mail a certified copy of the resolution to the chairs of the county party committees and to the chairs of the state party committees.
    4. Candidates nominated for municipal office by political primaries under this section shall be certified by the county party committees to the county board of election commissioners and shall be placed on the ballot at the general election.
    1. Any person desiring to become an independent candidate for municipal office in cities and towns with the mayor-council form of government shall file during a one-week period ending at 12:00 noon ninety (90) days before the general election with the county clerk the petition of nomination in substantially the following forms:
      1. For all candidates except council members in cities of the first class and cities of the second class:
      2. For candidates for council member elected by ward in cities of the first class and cities of the second class, the nominating petitions shall be signed only by qualified electors of the ward in the following manner:
      3. For at-large candidates for council member of a ward in cities of the first class and cities of the second class, the nominating petitions shall be signed by a qualified elector of the city in the following manner:
      1. An independent candidate for municipal office may qualify by a petition to be circulated for no longer than ninety (90) days of not fewer than ten (10) electors for incorporated towns and cities of the second class and not fewer than thirty (30) electors for cities of the first class of the ward or city in which the election is to be held.
        1. The county clerk shall determine no later than ten (10) days from filing whether the petition contains the names of a sufficient number of qualified electors and certify that no signatures are dated more than ninety (90) days before the filing of the petition.
        2. The county clerk's determination shall be made no less than seventy-five (75) days before the general election.
      2. The county clerk promptly shall notify the candidate of the result.
    2. Independent candidates for municipal office shall file a political practices pledge and an affidavit of eligibility at the time of filing their petitions.
      1. An independent candidate shall state the position, including the position number, if any, on his or her petition.
      2. When a candidate has identified the position sought on the notice of candidacy, the candidate shall not be allowed to change the position but may withdraw a notice of candidacy and file a new notice of candidacy designating a different position before the deadline for filing.
    3. The sufficiency of a petition filed under this section may be challenged in the same manner as election contests under § 7-5-801 et seq.
    4. A person who has been defeated in a party primary shall not file as an independent candidate in the general election for the office for which he or she was defeated in the party primary.
      1. If no candidate receives a majority of the votes cast in the general election, the two (2) candidates receiving the highest number of votes cast for the office to be filled shall be the nominees for the respective offices, to be voted upon in a runoff election pursuant to § 7-5-106.
      2. In any case, except for the office of mayor, in which only one (1) candidate has filed and qualified for the office, the candidate shall be declared elected and the name of the person shall be certified as elected without the necessity of putting the person's name on the general election ballot for the office.
    1. If the office of mayor is unopposed, then the candidate for mayor shall be printed on the general election ballot and the votes for mayor shall be tabulated as in all contested races.
      1. The governing body of any city of the first class, city of the second class, or incorporated town may enact an ordinance requiring independent candidates for municipal office to file petitions for nomination as independent candidates with the county clerk:
        1. No earlier than twenty (20) days prior to the preferential primary election; and
        2. No later than 12:00 noon on the day before the preferential primary election.
      2. The governing body may establish this filing deadline for municipal offices even if the municipal offices are all independent or otherwise nonpartisan.
      1. The ordinance shall be enacted no later than ninety (90) days prior to the filing deadline.
      2. The ordinance shall be published at least one (1) time a week for two (2) consecutive weeks immediately following adoption of the ordinance in a newspaper having a general circulation in the city.
  1. A person filing for municipal office may file for only one (1) municipal office during the municipal filing period.
  2. Nothing in this section shall repeal any law pertaining to the city administrator form of government or the city manager form of government.
  3. This section does not apply in any respect to the election of district judges.

“PETITION OF NOMINATION

We, the undersigned qualified electors of the city (town) of , Arkansas, being in number not less than ten (10) for incorporated towns and cities of the second class, and not less than thirty (30) for cities of the first class, do hereby petition that the name of be placed on the ballot for the office of (A candidate for council member in an incorporated town shall identify the position for which he or she is running) at the next election of municipal officials in 20

Printed Name:

Signature:

Street Address:

Date of Birth:

Date of Signing:

“PETITION OF NOMINATION

We, the undersigned qualified electors of Ward of the city of , Arkansas, being in number not less than ten (10) for cities of the second class, and not less than thirty (30) for cities of the first class, do hereby petition that the name of be placed on the ballot for the office of council member, Ward , position , of the next election of municipal officials in 20

Printed Name:

Signature:

Street Address:

Date of Birth:

Date of Signing: ”; and

“PETITION OF NOMINATION

We, the undersigned qualified electors of the city of , Arkansas, being in number not less than ten (10) for cities of the second class, and not less than thirty (30) for cities of the first class, do hereby petition that the name of be placed on the ballot for the office of council member, Ward , position , of the next election of municipal officials in 20

Printed Name:

Signature:

Street Address:

Date of Birth:

Date of Signing:

History. Acts 1991, No. 59, §§ 2, 3; 1991, No. 430, §§ 2, 3; 1995, No. 82, § 1; 1995, No. 665, § 1; 1997, No. 645, § 3; 1999, No. 752, § 1; 2001, No. 1789, § 8; 2003, No. 542, § 3; 2003, No. 1104, § 1; 2003, No. 1165, § 10; 2003, No. 1185, § 24; 2007, No. 1020, § 21; 2007, No. 1049, § 45; 2009, No. 1480, § 63; 2011, No. 519, § 1; 2011, No. 1185, §§ 18, 19; 2013, No. 1066, § 1; 2015, No. 4, § 4; 2015 (1st Ex. Sess.), No. 4, § 4; 2017, No. 879, § 14; 2019, No. 545, § 8; 2019, No. 597, § 8.

A.C.R.C. Notes. Pursuant to § 1-2-207, subdivision (b)(1) is set out as amended by Acts 2007, No. 1049. The introductory language of Subdivision (b)(1) was also amended by Acts 2007, No. 149, to read as follows:

“(b)(1) Any person desiring to become an independent candidate for municipal office in cities and towns with the mayor-council form of government shall file not more than eighty (80) days nor less than sixty (60) days prior to the general election by 12:00 noon with the county clerk the petition of nomination in substantially the following forms:”

Acts 2015 (1st Ex. Sess.), No. 4, § 6, provided:

“(a) To ensure that independent candidates are provided the maximum number of days allowed by law to circulate petitions to qualify as an independent candidate, the provisions of this act are retroactive to August 1, 2015.

“(b) Signatures on a petition to have the name of a person placed upon the ballot as an independent candidate under § 7-7-103 collected between August 11, 2015, and the effective date of this act shall be counted if:

“(1) The signatures are not otherwise collected in violation of Arkansas law;

“(2) The signatures otherwise comply with applicable Arkansas law; and

“(3) The petition is lawfully filed.”

Acts 2015 (1st Ex. Sess.), No. 4, § 7, provided:

“(a) This act is cumulative of existing laws and shall not repeal but merely suspend any law in conflict with the act.

“(b) The provisions of this act are temporary and expire on December 31, 2016.

“(c) On and after December 31, 2016, the provisions of law suspended by this act shall be in full force and effect.

“(d) The expiration of this act shall not affect rights acquired under it or affect suits then pending.”

Publisher's Notes. Former § 14-42-206 was held unconstitutional in Jeffers v. Clinton, 740 F. Supp. 585 (E.D. Ark. 1990).

Former § 14-42-206, concerning nominating petitions for municipal primary elections, was repealed by Acts 1991, Nos. 59 and 430, § 1. The former section was derived from Acts 1989, No. 905, §§ 1-5, 8.

Amendments. The 2009 amendment rewrote (b)(2); inserted “and an affidavit of eligibility” in (b)(3); and added (b)(4) through (b)(6).

The 2011 amendment, in (b)(1), inserted “(A candidate for alderman in an incorporated town shall identify the position for which he or she is running)” in the petition of nomination paragraph in (b)(1)(A); and deleted “incorporated towns and” following “not less than (10) for” in the petition of nomination paragraphs of (b)(1)(B) and (C).

The 2011 amendment by No. 1028, in (b)(1), inserted “(A candidate for alderman in an incorporated town shall identify the position for which he or she is running)” in the petition of nomination paragraph in (b)(1)(A); and deleted “incorporated towns and” following “not less than ten (10) for” in the petition of nomination paragraphs of (b)(1)(B) and (C).

The 2011 amendment by No. 1185 substituted “not more than one hundred two (102) nor less than eighty-one (81)” for “not more than ninety (90) nor less than seventy (70)” in (b)(1); and inserted (b)(2)(B)(ii).

The 2013 amendment inserted present (e) and redesignated the remaining subsections accordingly.

The 2015 (1st Ex. Sess.) amendment substituted “no less than sixty (60) days before the party filing period under § 7-7-203” for “before January 1 of the year of the election” in (a)(1).

The 2017 amendment substituted “council member” for “alderman” and made similar substitutions throughout (b)(1); and made stylistic changes.

The 2019 amendment by No. 545, in the introductory language of (a)(1), deleted “by resolution passed before January 1 of the year of the election” following “government” and added “by resolution passed”; and added (a)(1)(A) and (a)(1)(B).

The 2019 amendment by No. 597 substituted “file during a one-week period ending at 12:00 noon ninety (90) days before the general election” for “file not more than one hundred two (102) days nor less than eighty-one (81) days before the general election by 12:00 noon” in the introductory language of (b)(1); inserted “to be circulated for no longer than ninety (90) days” in (b)(2)(A); added “and certify that no signatures are dated more than ninety (90) days before the filing of the petition” in (b)(2)(B)(i); and made stylistic changes.

Case Notes

Constitutionality.

This section represents a systematic and deliberate attempt to reduce black political opportunity, and is plainly unconstitutional. Jeffers v. Clinton, 740 F. Supp. 585 (E.D. Ark. 1990), appeal dismissed, 498 U.S. 1129, 111 S. Ct. 1096, 112 L. Ed. 2d 1200 (1991) (decision under prior law).

Subchapter 3 — Charters for Cities of the First Class and Second Class

Effective Dates. Acts 1953, No. 207, § 11: Mar. 4, 1953.

Acts 2009, No. 1480, § 117: Apr. 10, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act makes various revisions to Arkansas election laws that are designed to improve the administration of elections and special elections and that these revisions should be implemented as soon as possible so that the citizens of this state may benefit from improved election procedures. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

14-42-301. Construction.

Nothing in this subchapter shall be construed to limit the powers of municipalities which shall continue to operate under the general laws of the State of Arkansas.

History. Acts 1953, No. 207, § 9; A.S.A. 1947, § 19-1059.

14-42-302. Appointment of commission.

    1. The governing body of any city of the first or second class, upon passage of a municipal ordinance, may create a commission to frame a charter for the city.
    2. The commission shall be appointed by the governing body and shall be composed of not less than nine (9) members, who shall serve without compensation, and at least two-thirds (2/3) of whom shall not hold any other municipal office or appointment.
  1. The governing body of the municipality, if so requested by the commission, shall appropriate money to provide the reasonable expenses of the commission and for publication of the completed charter, and any separate or alternative provisions thereof.

History. Acts 1953, No. 207, § 1; 1961, No. 431, § 1; A.S.A. 1947, § 19-1051.

Research References

Ark. L. Rev.

Home Rule for Arkansas Cities, 24 Ark. L. Rev. 235.

U. Ark. Little Rock L.J.

Goldner, A Call for Reform of Arkansas Municipal Law, 15 U. Ark. Little Rock L.J. 175.

14-42-303. Election on proposed charter.

    1. Any charter framed as provided in § 14-42-302 shall be submitted to the qualified electors of the municipality at any election to be held at a time determined by the charter commission, but it shall be held within one (1) year after the appointment of the commission.
    2. Any part of the charter, or any alternative provision thereof, may be submitted to be voted upon separately.
  1. The commission shall publish, not less than thirty (30) days before any election, the proposed charter and any separate parts and alternative provisions thereof.
  2. Within thirty (30) days after its approval, the county board of election commissioners shall certify a copy of the charter to the Secretary of State.

History. Acts 1953, No. 207, § 2; A.S.A. 1947, § 19-1052.

14-42-304. Amendments to charter.

  1. Amendments to any charter may be proposed by a two-thirds vote of the governing body of the municipality or by petition of ten percent (10%) of the qualified electors of the municipality.
  2. The amendment shall be submitted to the qualified electors of the municipality at a regular or special election called in accordance with § 7-11-201 et seq.
  3. The proposed amendment shall be published at least one (1) time in some newspaper of general circulation throughout the municipality.
  4. Any amendment approved by a majority of the electors voting thereon shall become a part of the charter at the time fixed in the amendment and shall be certified to the Secretary of State.
  5. Each amendment submitted shall be confined to one (1) subject, and when more than one (1) amendment shall be submitted at the same time, they shall be so submitted as to enable the voters to vote on each amendment separately.

History. Acts 1953, No. 207, § 4; A.S.A. 1947, § 19-1054; Acts 2005, No. 2145, § 27; 2007, No. 1049, § 46; 2009, No. 1480, § 64.

Amendments. The 2009 amendment substituted “§ 7-11-201 et seq.” for “§ 7-5-103(b)” in (b).

14-42-305. Effect of approval.

Any proposed charter which is approved by a majority of the electors voting thereon, and with the additions of any such parts and as modified by any such alternative provisions as may be separately submitted and approved by those voting on any such parts and provisions, shall become the organic law of the municipality at the time fixed in the charter and shall supersede all laws affecting the organization and government of the municipality which are in conflict therewith.

History. Acts 1953, No. 207, § 2; A.S.A. 1947, § 19-1052.

14-42-306. Limitations on charters.

  1. No charter adopted pursuant to this subchapter shall be in conflict with it, nor shall it alter any civil service or pension laws in existence under the general laws of this state, any seventy-two-hour laws, vacation laws, two-platoon law for firefighters, or the Arkansas Constitution.
  2. No charter shall alter or change any statutory laws providing for the powers, duties, and manner of appointment of any airport, water, sewer, or housing authority commissions within the city.

History. Acts 1953, No. 207, § 2; A.S.A. 1947, § 19-1052.

14-42-307. Powers of municipalities.

    1. Each municipality operating under a charter shall have the authority to exercise all powers relating to municipal affairs.
    2. This grant of authority shall not be deemed to limit or restrict the powers of the General Assembly in matters of state affairs, nor shall this subchapter be construed as increasing or diminishing the powers of the state to regulate utilities not municipally owned or fix the rates thereof.
  1. The following shall be deemed to be a part of the powers conferred upon the municipalities by this subchapter:
    1. To levy, assess, and collect taxes within the limits prescribed in the charter adopted by the municipality and the limits prescribed in the Arkansas Constitution;
    2. To furnish all local public services and to acquire property therefor by condemnation or otherwise, within or without the corporate limits, subject, however, to the provisions of the general laws of the State of Arkansas, including any law requiring that the acquisition of a utility plant be approved by a municipal election. However, no property can be acquired under this subchapter by the issuance of bonds, notes, or other evidence of indebtedness unless the bonds, notes, or evidence of indebtedness is secured by the credit of the city and all the property therein; and
    3. To exercise all powers conferred by the state constitution and the General Assembly generally upon municipalities not contrary to this subchapter.
  2. No municipality shall pass any laws contrary to the criminal laws of the State of Arkansas.

History. Acts 1953, No. 207, §§ 6, 8; A.S.A. 1947, §§ 19-1056, 19-1058.

14-42-308. Annual budget, taxes, and rates.

  1. The governing body of each municipality operating under a charter shall prepare, approve, and publish, not less than sixty (60) days in advance of the annual municipal general election, a proposed budget of operational expenditures of the municipality for the forthcoming year, together with proposed taxes and rate or rates sufficient to provide the funds therefor, excluding the rates under any continuing levies previously authorized.
    1. The taxes and the rate or rates so proposed shall be submitted to the qualified electors at the next annual municipal general election.
      1. The proposed taxes shall be approved or disapproved in their entirety.
        1. If a majority of the qualified electors voting thereon shall approve the taxes so proposed, then the taxes so approved shall be collected at the rate provided.
        2. In the event a majority of the qualified electors voting in the election shall disapprove the proposed taxes, then the taxes shall be collected at the last rate legally levied.
        3. One (1) council member from each ward of the city.

History. Acts 1953, No. 207, § 5; A.S.A. 1947, § 19-1055.

Cross References. Taxation, generally, § 26-73-101 et seq.

14-42-309. Election results.

  1. In all elections provided for in this subchapter, the results of the vote shall be certified immediately after the election by the county board of election commissioners to the mayor.
  2. The certified results shall become final and conclusive if they are not attacked in the courts within a period of thirty (30) days thereafter.

History. Acts 1953, No. 207, § 7; A.S.A. 1947, § 19-1057.

14-42-310. Election expenses.

The expenses of the elections provided by this subchapter shall be borne by the municipality concerned.

History. Acts 1953, No. 207, § 3; A.S.A. 1947, § 19-1053.

14-42-311. Expiration of charter.

By amendment to the charter, a date may be fixed for the expiration of the charter. On the date specified, the municipality shall cease to operate under this subchapter.

History. Acts 1953, No. 207, § 4; A.S.A. 1947, § 19-1054.

Subchapter 4 — Departments of Public Safety

Cross References. Civil service for police and fire departments, § 14-51-101 et seq.

Fire departments, § 14-53-101 et seq.

Firemen's relief and pension funds, § 24-11-801 et seq.

Police departments, § 14-52-101 et seq.

Police pension and relief funds, § 24-11-301 et seq.

14-42-401 — 14-42-425. [Repealed.]

A.C.R.C. Notes. The repeal of this subchapter by Acts 2019, No. 150, supersedes the amendment of §§ 14-42-409 and 14-42-425(b) by Acts 2019, No. 315.

Acts 2019, No. 315, § 993, amended §§ 14-42-409 to read as follows: “14-42-409. Applicable regulations, rules, and laws. All applicable regulations, rules, and statutes regulating the conduct of police or fire departments or their functions shall apply to a department of public safety and its employees.”

Acts 2019, No. 315, § 994, amended § 14-42-425(b) to read as follows: “(b) All applicable regulations, rules, and statutes regulating the certification of law enforcement officers, the certification of fire departments, and the conduct of police or fire departments or their functions shall apply to a department of public safety and its employees.”

Publisher's Notes. This subchapter was repealed by Acts 2019, No. 150, § 1, effective July 24, 2019. The subchapter was derived from the following sources:

14-42-401. Acts 1985, No. 481, § 1; A.S.A. 1947, § 19-947.

14-42-402. Acts 1985, No. 481, § 2; A.S.A. 1947, § 19-948.

14-42-403. Acts 1985, No. 481, § 3; A.S.A. 1947, § 19-949; Acts 1989, No. 839, § 1.

14-42-404. Acts 1985, No. 481, § 4; A.S.A. 1947, § 19-950.

14-42-405. Acts 1985, No. 481, § 5; A.S.A. 1947, § 19-951.

14-42-406. Acts 1985, No. 481, § 6; A.S.A. 1947, § 19-952.

14-42-407. Acts 1985, No. 481, § 7; A.S.A. 1947, § 19-953.

14-42-408. Acts 1985, No. 481, § 8; A.S.A. 1947, § 19-954.

14-42-409. Acts 1985, No. 481, § 9; A.S.A. 1947, § 19-955; Acts 2019, No. 315, § 993.

14-42-410. Acts 1979, No. 659, § 1; A.S.A. 1947, § 19-1060; Acts 1989, No. 262, §§ 1, 2.

14-42-411. Acts 1979, No. 659, § 2; A.S.A. 1947, § 19-1061.

14-42-412. Acts 1979, No. 659, § 3; A.S.A. 1947, § 19-1062.

14-42-413. Acts 1979, No. 659, § 4; A.S.A. 1947, § 19-1063.

14-42-414 — 14-42-420. [Reserved.]

14-42-421. Acts 1997, No. 728, § 1.

14-42-422. Acts 1997, No. 728, § 2.

14-42-423. Acts 1997, No. 728, § 3.

14-42-424. Acts 1997, No. 728, § 4.

14-42-425. Acts 1997, No. 728, § 5; 2019, No. 315, § 994.

Chapter 43 Government of Cities of the First Class

Cross References. Mayors of cities of first class — Retirement benefits, § 24-12-123.

Subchapter 1 — General Provisions

[Reserved]

Subchapter 2 — Elections Generally

Effective Dates. Acts 1935, No. 105, § 3: Mar. 12, 1935. Emergency clause provided: “In order that this may apply to the forthcoming municipal elections such fact is hereby declared to constitute an emergency and this act being necessary for the immediate preservation of the public peace, health and safety shall take effect upon its approval by the governor as an emergency measure.”

14-43-201. Odd-year elections abolished.

  1. Municipal elections in 1965 and all odd years in the future are abolished.
  2. It is the purpose of this section to elect municipal officials at the regular general election for the election of state and county officials.

History. Acts 1965, No. 484, § 5; A.S.A. 1947, § 19-1002.8.

Publisher's Notes. The former second sentence of this section provided that the term of any municipal judge or other official that would expire in an odd-numbered year would be extended one year until the next regular general election in an even-numbered year.

14-43-202. Write-in votes not counted.

In all general elections held in cities of the first class and second class and incorporated towns for the election of officials of these municipalities, no ballots shall be counted for any person whose name is written in thereon. Only votes cast for the regularly nominated, or otherwise qualified, candidates whose names are printed on the ballot as candidates in the election shall be counted by the judges and clerks.

History. Acts 1935, No. 105, § 1; Pope's Dig., § 9575; A.S.A. 1947, § 19-1001; Acts 1995, No. 179, § 1.

Case Notes

Constitutionality.

Prohibiting voting for write-in candidates at city elections is constitutional. Davidson v. Rhea, 221 Ark. 885, 256 S.W.2d 744 (1953).

In General.

This section was not changed by 1949 enactment providing a line “for possible write-in votes” in all elections except in primary elections, since latter provision only recognized right that, at some time in the future, the General Assembly might provide for write-in votes in general elections. Davidson v. Rhea, 221 Ark. 885, 256 S.W.2d 744 (1953).

Applicability.

This section does not apply to city election where there are no “write-in” candidates. Clark v. Porter, 223 Ark. 682, 268 S.W.2d 383 (1954).

Subchapter 3 — Election of City Officials

Cross References. Elections generally, § 14-42-201 et seq.

Preambles. Acts 1961, No. 430 contained a preamble which read:

“Whereas, the office of City Clerk is the hub of city activities and requires a person of professional nature, and

“Whereas, said office of City Clerk in the cities of the first class performs a multitude of services for the city government and community, and

“Whereas, said office of City Clerk and the persons holding said office in the various cities of the first class have shown an outstanding record of efficiency, and

“Whereas, the time necessary for a person having been first elected to said office of City Clerk to fully acquaint themselves with said various duties to be performed is equal to or greater than the two (2) year term for which said person is now elected, and

“Whereas, said office of City Clerk in the various cities of the first class in the State of Arkansas has shown a tendency for reelection of the persons holding said office for many years, and

“Whereas, a four (4) year term of office is desirable and necessary for the continued efficiency in the office of City Clerk in the cities of the first class,

“Now, Therefore….”

Effective Dates. Acts 1875, No. 1, § 95: effective on passage.

Acts 1885, No. 67, § 7: effective on passage.

Acts 1893, No. 151, § 2: effective on passage.

Acts 1905, No. 275, § 2: became law without Governor's signature, May 6, 1905.

Acts 1943, No. 248, § 2: effective on passage.

Acts 1949, No. 112, § 4: approved Feb. 18, 1949. Emergency clause provided: “Whereas, there is a great need for clarifying the laws of this state concerning the nomination and election of aldermen in cities of the first class; and, whereas, much confusion is resulting from the lack of such legislation; and, whereas, the election of aldermen is of proper and grave concern to the wellbeing and proper administration of the municipalities of the State of Arkansas, and this act being necessary for the preservation of the public peace, health and safety of the inhabitants of the State of Arkansas, an emergency is hereby declared to exist and this Act shall be in full force and effect from and after its passage.”

Acts 1951, No. 123, § 2: effective on passage.

Acts 1951, No. 365, § 2: effective on passage.

Acts 1959, No. 176, § 4: Mar. 4, 1959. Emergency clause provided: “Whereas, there are many municipal problems peculiar to cities of over 50,000 population, and whereas, the legislature does determine that a 4-year term for municipal officials in cities having the mayor-council form of government and also have or may hereafter have more than 50,000 population according to the Federal Census, is necessary for the proper administration of municipal affairs, and whereas, this act is needed to save unnecessary expenditures of the taxpayers' money in holding odd-year municipal elections, and this act being necessary for the immediate protection of the public peace, health and safety, an emergency is hereby declared to exist and this act shall be in full force and effect from and after its passage and approval.”

Acts 1965, No. 12, § 3: Feb 1, 1965. Emergency clause provided: “It is hereby determined that matters vitally affecting the welfare of the State of Arkansas must be dealt with by the 65th General Assembly, and this Act being necessary for the preservation of the peace, health and safety of the people, an emergency is hereby declared to exist, and this Act shall take effect and be in full force from and after its passage and approval.”

Acts 1965, No. 131, § 3: Mar. 1, 1965. Emergency clause provided: “It is hereby determined that matters vitally affecting the welfare of the State of Arkansas must be dealt with by the 65th General Assembly, and this Act being necessary for the preservation of the peace, health and safety of the people, an emergency is hereby declared to exist, and this Act shall take effect and be in full force from and after its passage and approval.”

Acts 1969, No. 154, § 6: approved Mar. 3, 1969. Emergency clause provided: “Whereas, this Act is necessary to establish the appointment of city attorneys in cities within the provisions of this Act and to properly protect the public peace, health, and safety, an emergency is hereby declared to exist and this Act shall be in full force and effect from and after its passage.”

Acts 1973, No. 600, § 3: approved Apr. 4, 1973. Emergency clause provided: “It is hereby found and declared by the General Assembly of the State of Arkansas that some confusion exists concerning the election of aldermen and when incumbent aldermen continue in office when ward boundaries are reapportioned; that clarification is necessary to assure that incumbent aldermen who are not up for reelection will not have to run for office when such reapportionment permits such aldermen to remain in their old ward or part thereof; that filing deadlines for the primary elections will be held before ninety (90) days after the adjournment of this session and this Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is hereby declared to exist and this Act shall be in force and effect from and after its passage.”

Acts 1975, No. 269, § 4: approved Feb. 25, 1975. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that the present General Election laws fail to clearly provide that mayors of first-class cities shall be elected by a majority vote of the electors voting on said mayors in the election; that the situation now exists that the choice of a minority of the voters can elect a mayor; that legislation is necessary to provide for a special runoff election to insure that such officials are a choice of the majority of the voters and to insure a representative government, and this Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is hereby declared to exist and the Act shall be in force and effect from and after its passage.”

Acts 1977, No. 171, § 5: Feb. 15, 1977. Emergency clause provided: “It is hereby found and determined by the General Assembly that under present law, city attorneys in some of the larger cities are appointed by the mayor with the approval of the city council; that this procedure for selecting a city attorney in such cities is a practical one but that if an attorney so appointed elects not to serve in that position and resigns his or her position as city attorney in such city after January 1, 1977, the city attorney in that city should thereafter be elected by the qualified electors of the city; that the electors in such city should be given an opportunity to elect a city attorney at the earliest possible date after resignation of an appointed city attorney; that this Act is designed to establish a procedure for the election of a city attorney in such cities and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1979, No. 1002, § 3: Apr. 17, 1979. Emergency clause provided: “It is hereby found and determined by the Seventy-Second General Assembly that there is an immediate need for establishing salary guidelines for City Attorneys of cities of the first class having a population of 50,000 or more and having a mayor-council form of government. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1985, No. 421, § 3: Mar. 20, 1985. Emergency clause provided: “It is hereby found and determined by the General Assembly that it is essential to the effective and efficient administration of municipal government that cities be given greater discretion in determining the method of selection of members of the governing bodies of such municipalities and that this Act is designed to grant such discretion and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1993, No. 857, § 5: Apr. 2, 1993. Emergency clause provided: “It is hereby found and determined by the General Assembly that this act empowers cities in transition to the mayor-council form of government to provide that all aldermen be elected by ward; that some elections for aldermen are to be held in the near future; and that this act should become effective as soon as possible in order to conduct elections in accordance with this act. Therefore, an emergency is hereby declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall be in full force and effect from and after its passage and approval.”

Research References

Am. Jur. 56 Am. Jur. 2d, Mun. Corp., § 231 et seq.

C.J.S. 62 C.J.S., Mun. Corp., § 468 et seq.

14-43-301. Type of election.

In cities of the first class, all officers to be elected shall be elected at the regular general election for municipal corporations.

History. Acts 1875, No. 1, § 62, p. 1; C. & M. Dig., § 7744; Pope's Dig., § 9940; A.S.A. 1947, § 19-1011; Acts 1995, No. 359, § 1.

14-43-302. [Repealed.]

Publisher's Notes. This section, concerning election of city officers generally, was repealed by Acts 1997, No. 214, § 1. The section was derived from Acts 1875, No. 1, § 51, p. 1; C. & M. Dig., § 7690; Pope's Dig., § 9819; A.S.A. 1947, § 19-1002.

14-43-303. Officials in mayor-council cities of 50,000 or more.

      1. In the general election in the year 1960, and every four (4) years thereafter, cities of the first class that have a population of fifty thousand (50,000) persons or more, according to the latest federal decennial census or special federal census, and that also have the mayor-council form of government shall elect the following officials:
      2. All of these officials shall hold office for a term of four (4) years and until their successors are elected and qualified.
      1. At the general election in the year 1962 and every four (4) years thereafter, the city shall elect:
        1. One (1) city attorney;
        2. One (1) city treasurer; and
        3. One (1) council member from each ward of the city.
      2. All of these officials shall hold office for a term of four (4) years and until their successors are elected and qualified.
    1. The governing body of a city in transition to the mayor-council form of government may provide by ordinance that the mayor, city clerk, city attorney, and city treasurer shall be elected on the same date and every four (4) years thereafter.
  1. In all primaries or general elections, the candidates for the office of council member shall reside in their respective wards. However, all qualified electors residing in these cities and entitled to vote in the elections may vote at their several voting precincts for each and every candidate so to be nominated or elected.
  2. All odd-year elections for municipal officials in the cities of the first class that have a population of fifty thousand (50,000) or more persons, according to the latest federal census, and that also have the mayor-council form of government are abolished.
    1. If a city first attains a population of fifty thousand (50,000) as shown in a federal decennial census or special federal census completed after January 1, 1997, and the mayor or other elected official of the city last elected before the census was elected to a four-year term and the term will expire two (2) years before the quadrennial general election year at which city officials are elected as provided in subsection (a) of this section, the terms of such officials shall be extended for a period of two (2) years in order that the terms will coincide with the next quadrennial general election year. At that quadrennial general election and at each quadrennial general election thereafter, the mayor and such other municipal officials shall be elected to terms of four (4) years as provided in this section.
    2. The provisions of this subsection shall not affect in any way the provisions of this section that provide for staggering the terms of office of council members so that one (1) council member will be elected from each ward every two (2) years.

(i) One (1) mayor;

(ii) One (1) city clerk; and

History. Acts 1959, No. 176, §§ 1, 2; A.S.A. 1947, §§ 19-1002.2, 19-1002.3; Acts 1997, No. 707, §§ 2, 3; 2003, No. 1185, § 25; 2015, No. 233, § 1; 2017, No. 879, § 15; 2019, No. 1092, § 1.

A.C.R.C. Notes. Acts 1997, No. 707, § 1, provided:

“It is found and determined by the General Assembly that there is some disagreement as to whether the term ‘latest federal census’ in Arkansas Code 14-43-303 means a federal decennial census or includes a special federal census and it is the purpose of this act to assure that a special federal census is included.

“It is further found and determined by the General Assembly that one or more cities in the State will first attain a population of 50,000 soon after January 1, 1997; that the mayor and some other officials of such city or cities were elected to terms of four (4) years at the 1994 general election and their terms will expire at the end of 1998; that under the current law relating to election of the mayor and some other city officials in cities having a population of 50,000 or more such officials are required to be elected to four-year terms at the quadrennial general election which means that there will be a two-year period between the normal expiration of their current terms and the quadrennial general election at which the officers are required by current law to be elected for four-year terms; that this situation may occur repeatedly in the future as new cities attain a population of 50,000; that the primary options are to either extend the terms by two (2) years in order that the terms will expire at the appropriate time to be filled at the next quadrennial general election or to reduce the four-year terms immediately before the quadrennial election year to two (2) years; that it appears more equitable to extend the four-year terms to six-year terms than to cut terms short to accommodate the election schedule prescribed in Arkansas Code 14-43-303(a). It is therefore the intent and purpose of this act to provide for the extension of such terms of office to accommodate the election schedule currently provided by law for such offices.”

Publisher's Notes. The former last part of what is now subsection (c) of this section provided that any municipal official or judge whose term expired at a time requiring election in an odd year would be elected at the next general election in an even year.

Amendments. The 2015 amendment deleted former (a)(2); and redesignated former (a)(3) as present (a)(2).

The 2017 amendment substituted “council member” for “alderman” in (a)(1)(A)(iii), (a)(2)(A)(iii), (b), and twice in (d)(2); and substituted “may vote” for “shall have the right to vote” in (b).

The 2019 amendment added (a)(3).

Case Notes

Constitutionality.

Since the classification made by this section bears a reasonable relation to the purpose of the law, it does not constitute local legislation in violation of Ark. Const. Amend. 14. Lovell v. Democratic Cent. Comm., 230 Ark. 811, 327 S.W.2d 387 (1959).

Although this section was expressed in general terms, it had exclusive applicability to two cities; therefore, a three-judge court was improperly convened in an action challenging the statute's constitutionality. Dove v. Bumpers, 497 F.2d 895 (8th Cir. 1974).

14-43-304. Mayors in cities having mayor-council government.

    1. A mayor of a city of the first class having a mayor-council form of government shall be elected:
      1. By a majority vote of the qualified electors of the city; or
      2. In accordance with § 7-5-106.
    2. This section does not apply to a city of the first class with a city manager form of government or a city administrator form of government.
    1. As soon as the returns from all precincts are received, but no later than the fifteenth day after the election, the county board of election commissioners shall proceed to ascertain, from the certificates and ballots received from the several precincts, and declare the result of the election and deliver a certificate of his or her election to any person having the requisite amount of legal votes for the office of mayor.
    2. The county board of election commissioners shall also file in the office of the clerk of the county court a certificate setting forth in detail the results of the election.
    1. If no candidate for mayor of a city of the first class receives the requisite amount of the votes cast in the general election, the two (2) candidates receiving the highest number of votes shall be certified to a special runoff election that shall be held four (4) weeks from the day on which the general election is held.
    2. The special runoff election shall be conducted in the same manner as provided by law, and the election results of the special runoff election shall be canvassed and certified in the manner provided by law.
  1. If a vacancy occurs in the office of mayor of a city described in this section and the unexpired term is more than one (1) year, the vacancy shall be filled by a special election and special runoff election, if necessary, as provided in subsection (c) of this section.

History. Acts 1975, No. 269, §§ 1-3; A.S.A. 1947, §§ 19-1002.9 — 19-1002.11; 2003, No. 1165, § 13[11]; 2017, No. 163, § 1; 2017, No. 1104, § 7.

Publisher's Notes. Acts 2003, No. 1165 did not contain a Section 11 or 12.

Amendments. The 2017 amendment by No. 163 rewrote the section.

The 2017 amendment by No. 1104, in (c)(1), substituted “If” for “In the event that”, “the requisite amount” for “a majority”, and “four (4) weeks” for “three (3) weeks”.

14-43-305. Mayors in mayor-council cities of less than 50,000.

  1. The qualified voters of cities of the first class having a population of less than fifty thousand (50,000) and having the mayor-council form of government, on the Tuesday following the first Monday in November of 1970 and every four (4) years thereafter, shall elect a mayor for four (4) years.
  2. Incumbent mayors shall continue in office until their successors are elected and qualified.

History. Acts 1965, No. 12, § 1; A.S.A. 1947, § 19-1002.4.

Publisher's Notes. Formerly, this section provided, in part, for the election of mayors to serve from January 1, 1967, to January 1, 1971.

14-43-306. [Repealed.]

Publisher's Notes. This section, concerning mayors in cities between 28,000 and 35,000, was repealed by Acts 1993, No. 1121, § 1. The section was derived from Acts 1953, No. 244, § 1; A.S.A. 1947, § 19-1002.1.

14-43-307. Election of council members at large or by ward.

    1. Candidates for the office of council member in cities of the first class shall reside in the ward from which they seek to be elected and shall run at large.
      1. All of the qualified electors of these cities shall be entitled to vote in the election.
          1. Except as provided under subsection (b) of this section, provisions shall be made by the election commissioners in these cities so that the qualified electors of each ward shall have at least one (1) voting site in each ward where the resident electors thereof may cast their ballots.
          2. The county board of election commissioners may reduce the number of voting sites in a city of the first class by unanimous vote if:
            1. In the most recent federal decennial census the city has a population of five thousand (5,000) or less; and
            2. The county in which the city is situated has established vote centers under § 7-5-101.
        1. Cities of the second class that elect their council members citywide may have one (1) public place only for holding elections.
      1. The city council of any such city or the governing body of any city in transition to the mayor-council form of government may provide by ordinance that all council members be elected by ward, in which event each council member shall be voted upon by the qualified electors of the ward from which he or she is a candidate.
        1. When so provided by city ordinance, the name of the candidate shall appear upon the ballot only in the ward in which he or she is a candidate.
        2. The city council of these cities may provide for the election of one (1) council member from each ward citywide and the other council members from each ward by the voters of the ward only.
    1. All such cities choosing to elect all council members by wards or in part by wards shall provide, in the manner provided by law, for the establishment of wards of substantially equal population in order that each council member elected from each ward shall represent substantially the same number of people in the city.

History. Acts 1965, No. 484, § 3; 1969, No. 45, § 1; 1973, No. 501, § 1; 1985, No. 421, § 1; A.S.A. 1947, § 19-1002.7; Acts 1993, No. 857, § 1; 2017, No. 879, § 16; 2019, No. 949, § 1.

A.C.R.C. Notes. The 1985 amendment to this section made the section applicable to cities of the second, as well as the first, class. The provisions of the 1985 act, as they apply to cities of the first class are codified in this section, while the provisions as applicable to cities of the second class are codified as part of § 14-44-103.

Amendments. The 2017 amendment substituted “council member” for “alderman” and made similar changes throughout the section; and in (b)(1)(A), substituted “may provide by ordinance” for “is empowered and authorized to provide, by ordinance” and substituted “he or she” for “the person”.

The 2019 amendment added the (a)(2)(B)(i) (a) designation; in (a)(2)(B)(i) (a) , substituted “Except as provided under subsection (b) of this section, provisions” for “Provisions” and substituted “site” for “precinct”; and added (a)(2)(B)(i) (b) .

Cross References. Special election of council member in territory annexed by municipality, § 14-40-1207.

Case Notes

At Large.

Evidence was held sufficient to establish that at-large electoral system in city was unconstitutionally maintained to intentionally deprive black voters of their rights. Perkins v. City of West Helena, 675 F.2d 201 (8th Cir. 1982), aff'd, 459 U.S. 801, 103 S. Ct. 33 (1982).

By Wards.

A claim that the existing voting wards of a city are not substantially equal in size as required by this section must be resolved in a proceeding before a county circuit court under § 14-43-311, rather than a federal district court, despite the general rule against requiring exhaustion of state administrative or judicial remedies in § 1983 civil rights actions. Perkins v. City of W. Helena, 514 F. Supp. 770 (E.D. Ark. 1981), aff'd in part, reversed in part, 675 F.2d 201 (8th Cir. 1982).

14-43-308. Residence qualifications of council members in primaries.

    1. In all primaries held in any city of the first class by any organized political party, the candidates for nomination for the office of council member shall reside in their respective wards.
    2. All qualified electors residing in these cities and entitled to vote in the primaries may vote at their several voting precincts for each and every candidate so to be nominated.
    1. The city council may provide by ordinance that the candidate shall only be voted upon by qualified voters of the ward who are entitled to vote in the primary from which the person is a candidate.
    2. When provided by ordinance, a candidate under subdivision (b)(1) of this section shall appear upon the ballot only in the ward in which he or she is a candidate.

History. Acts 1949, No. 112, § 1; A.S.A. 1947, § 19-1003.1; Acts 2017, No. 879, § 17.

Amendments. The 2017 amendment substituted “council members” for “aldermen” in the section heading; substituted “council member” for “alderman” in (a)(1); substituted “may vote” for “shall have the right to vote” in (a)(2); substituted “may provide by ordinance” for “is authorized and empowered to provide, by ordinance” in (b)(1); and substituted “provided by ordinance, a candidate under subdivision (b)(1) of this section” for “so provided by ordinance, any of the candidates in such a case” in (b)(2).

Case Notes

Cited: Leadership Roundtable v. City of Little Rock, 499 F. Supp. 579 (E.D. 1980).

14-43-309. Residence qualifications of council members in general elections.

    1. In all general elections for council members in cities of the first class, the council members so elected shall reside in their respective wards, as provided by law.
    2. All qualified electors residing in these cities may vote at their several voting precincts for each council member so to be elected.
    1. The city council of a a city of the first class may provide by ordinance that each council member shall only be voted upon by qualified voters of the ward from which the person is a candidate.
    2. When provided by ordinance, the name of the candidate shall appear upon the ballot only in the ward in which he or she is a candidate.

History. Acts 1949, No. 112, § 2; A.S.A. 1947, § 19-1003.2; Acts 2017, No. 879, § 18.

Amendments. The 2017 amendment substituted “council members” for “aldermen” in the section heading and made similar changes throughout the section; in (a)(2), substituted “may vote” for “shall have the right to vote” and substituted “council member” for “and every alderman”; substituted “a city of the first class may provide by ordinance that each council member” for “any such city is empowered and authorized to provide, by ordinance, that the aldermen” in (b)(1); and deleted “so” following “When” in (b)(2).

14-43-310. Council member ceasing to reside in ward.

If any duly elected council member shall cease to reside in the ward from which he or she was elected, that person shall be disqualified to hold the office and a vacancy shall exist which shall be filled as prescribed by law.

History. Acts 1875, No. 1, § 51, p. 1; C. & M. Dig., § 7692; Pope's Dig., § 9835; Acts 1961, No. 444, § 1; A.S.A. 1947, § 19-1004; Acts 2017, No. 879, § 19.

Amendments. The 2017 amendment substituted “council member” for “alderman” in the section heading and the section.

Case Notes

Cited: Lovell v. Democratic Cent. Comm., 230 Ark. 811, 327 S.W.2d 387 (1959); Perkins v. City of West Helena, 675 F.2d 201 (8th Cir. 1982).

14-43-311. Redistricting of wards.

      1. City councils in cities of the first class may redistrict the wards in their city when they determine that the people can best be served by adding wards, combining wards, or changing ward boundary lines to equalize the population in the various wards.
      2. The city council shall ensure that each ward has as nearly an equal population as would best serve the interest of the people of the city.
      1. Within ninety (90) days after redistricting, if one hundred (100) or more qualified electors in the city are dissatisfied with the redistricting of the city into wards, the electors may petition the circuit court.
      2. The court, after due hearing, may redistrict the city into such wards as the court shall deem best if the court finds that the redistricting action by the city council was arbitrary and capricious.
  1. At the next city election held, more than twenty (20) days after the approval of redistricted wards, there shall be elected from each of the new wards two (2) council members who shall organize the new city council at the first council meeting in January after their election.
      1. All council members elected in the city prior to redistricting of wards shall give up their positions to the new council members at the time for the organization of the new city council, as provided in subsection (b) of this section.
      2. From that date the terms of office of all previously elected council members shall cease and terminate.
      1. It shall be lawful to increase the number of wards or continue the same number of wards without affecting the terms of office of incumbent council members of the city.
        1. When the wards are reapportioned so as to increase the number of wards or readjust existing wards so that the wards contain nearly equal population, a council member who remains in his or her old ward, or part thereof, shall continue in office.
        2. New council members shall be elected only for new wards actually formed out of the territory of old wards.
    1. All clerk's costs and other costs incurred in the proceedings authorized in this section shall be paid by the persons at whose instance the services were rendered.
      1. In case these proceedings result in the redistricting of the city into new wards, the compensation of those individuals making the redistricting shall be fixed by the circuit judge, certified to the city council, and paid out of the city treasury.
      2. This compensation shall not exceed the sum of twenty-five dollars ($25.00) each.

History. Acts 1885, No. 67, § 6, p. 92; 1905, No. 275, § 1, p. 693; C. & M. Dig., §§ 7720-7724, 7726; Pope's Dig., §§ 9890-9894, 9896; Acts 1973, No. 600, § 1; 1983, No. 253, § 1; A.S.A. 1947, §§ 19-1005 — 19-1007, 19-1009; Acts 2017, No. 879, § 20.

Amendments. The 2017 amendment substituted “may” for “shall have the authority to” in (a)(1)(A), and (a)(2)(B); substituted “council members” for “aldermen” in (b), twice in (c)(1)(A), once in (c)(1)(B), (c)(2)(A), and (c)(2)(B)(ii); substituted “The city council shall ensure” for “It shall be the duty of the council to see” in (a)(1)(B); substituted “the electors may” for “they shall have the authority to” in (a)(2)(A); inserted “city” in (a)(2)(B) and (c)(1)(A); and substituted “the wards contain nearly equal population, a council member who remains in his or her” for “such wards contain nearly equal population, the aldermen who remain in their” in (c)(2)(B)(i).

Case Notes

Jurisdiction.

A claim that the existing voting wards of a city are not substantially equal in size as required by § 14-43-307 must be resolved in a proceeding before a county circuit court under this section rather than a federal district court despite the general rule against requiring exhaustion of state administrative or judicial remedies in § 1983 civil rights actions. Perkins v. City of W. Helena, 514 F. Supp. 770 (E.D. Ark. 1981), aff'd in part, reversed in part, 675 F.2d 201 (8th Cir. 1982).

A claimant in federal district court who challenged the manner of election of at-large city council members was denied federal relief and was referred to county circuit court under this section on the basis of comity, since the speed with which action can be taken under this section exceeds that of the federal court, the proceedings are likely to be informal and better suited to a resolution of the problem, and there will be no lengthy appellate proceedings because this section allows for no appeal. Perkins v. City of W. Helena, 514 F. Supp. 770 (E.D. Ark. 1981), aff'd in part, reversed in part, 675 F.2d 201 (8th Cir. 1982).

Cited: Perkins v. City of West Helena, 675 F.2d 201 (8th Cir. 1982); Moorman v. Priest, 310 Ark. 525, 837 S.W.2d 886 (1992).

14-43-312. Council members in mayor-council cities of fewer than 50,000.

    1. On the Tuesday following the first Monday in November 1966 and every two (2) years thereafter, the qualified voters of all cities of the first class having the mayor-council form of government with fewer than fifty thousand (50,000) inhabitants shall elect two (2) council members from each ward for a term of two (2) years, except that by ordinance any city of the first class may refer the question to voters to elect two (2) council members from each ward to four-year terms as more particularly set out in subdivision (a)(2)(A) of this section.
      1. On or before February 1 of the election year when the procedure will go into effect, any city of the first class, by ordinance referred to and approved by the voters at the previous general election or at a special election called for that purpose, may elect two (2) council members from each ward to four-year terms, except for the initial terms as provided in subdivision (a)(2)(B) of this section.
        1. If this procedure is adopted by ordinance referred to and approved by the voters of the city, the council member representing position number one from each ward shall be elected to a four-year term at the next general election.
        2. The council member representing position number two from each ward shall be elected to an initial two-year term at the next election, and thereafter shall be elected to four-year terms, resulting in staggered terms with one (1) council member being elected to a four-year term from each ward every two (2) years.
    1. The council members shall be designated as “council member number one” and “council member number two”.
      1. A candidate for the office of council member shall designate the number of the council member's office which the candidate is seeking on the petition filed under § 14-42-206.
      2. When this designation has been made, the candidate shall not be permitted thereafter to change the designation on that petition.
      3. The county clerk shall not accept a petition for filing that does not designate the number of the office for council member sought.
      4. Each city shall maintain in its records a document showing the name of each council member and the number of the office which the candidate holds.
      1. The city council may refer an ordinance to voters on the question of returning a city to electing council members to two-year terms.
      2. The ordinance shall be passed by a two-thirds vote of the city council before it is referred to and approved by voters at a general election.
    1. If the voters approve returning the city to electing council members to two-year terms, all council members shall be elected to two-year terms at the next general election and thereafter, except that those council members serving four-year terms shall complete their terms.
    2. The city council may not refer another question to voters on electing council members to four-year terms or on returning the city to electing council members to two-year terms unless at least four (4) years have passed since the last election on changing the terms of council members.

History. Acts 1965, No. 484, §§ 1, 2; A.S.A. 1947, §§ 19-1002.5, 19-1002.6; Acts 2001, No. 543, § 1; 2003, No. 244, § 1; 2005, No. 81, § 1; 2013, No. 503, § 1; 2017, No. 879, § 21.

Amendments. The 2013 amendment rewrote (b).

The 2017 amendment substituted “council members” for “aldermen” in the section heading and made similar changes throughout the section; and substituted “shall” for “will” in (a)(2)(B)(i) and twice in (a)(2)(B)(ii); and substituted “shall be” for “must be” in (c)(1)(B).

Case Notes

At-Large Elections.

Evidence was held sufficient to establish that at-large electoral system in the city was unconstitutionally maintained to intentionally deprive black voters of their rights. Perkins v. City of West Helena, 675 F.2d 201 (8th Cir. 1982), aff'd, 459 U.S. 801, 103 S. Ct. 33 (1982).

14-43-313. City clerks and city attorneys generally.

The city clerks and the city attorneys in cities of the first class shall give the bond, perform the duties, and receive such salary as is prescribed by ordinance in each of these cities.

History. Acts 1893, No. 151, § 1; C. & M. Dig., § 7690; Pope's Dig., § 9819; A.S.A. 1947, § 19-1015; Acts 2003, No. 113, § 1.

Cross References. Self-Insured Fidelity Bond Program, § 21-2-701 et seq.

Case Notes

Duties of City Attorneys.

There is a duty on the part of a city attorney to enforce the city ordinances in the police court, and the failure and refusal to do it is nonfeasance in office. Rowland v. State, 213 Ark. 780, 213 S.W.2d 370 (1948), cert. denied, 336 U.S. 918, 69 S. Ct. 641, 93 L. Ed. 1081 (1949).

Inasmuch as this section does not prescribe the duties of a city attorney in detail, but leaves it to city council to fix such duties, a court cannot take judicial notice of duties of a city attorney as fixed by municipal ordinance. Campbell v. City of Hot Springs, 232 Ark. 878, 341 S.W.2d 225 (1960).

Authority of city attorney to represent city in circuit court on appeal from proceeding for dismissal of police officer will be presumed in absence of showing that attorney lacked authority to prosecute such an appeal. Campbell v. City of Hot Springs, 232 Ark. 878, 341 S.W.2d 225 (1960).

Salary of City Attorneys.

Prosecuting attorney could not appear and prosecute in the name of a city under a municipal ordinance and receive a fee therefor. Miller v. City of Ft. Smith, 160 Ark. 487, 254 S.W. 1068 (1923) (decision prior to § 14-43-410).

Cited: Lovell v. Democratic Cent. Comm., 230 Ark. 811, 327 S.W.2d 387 (1959).

14-43-314. City attorney in mayor-council cities of 50,000 or more.

    1. The city attorney in any city of this state having a mayor-council form of government and having a population of fifty thousand (50,000) or more inhabitants shall be elected by the qualified electors of the city in the same manner as other municipal officials are elected.
    2. At the November 1978 general election and each four (4) years thereafter, the qualified electors of each city under this section shall elect a city attorney to take office on the next following January 1 to serve for a term of four (4) years.
  1. Any person elected as city attorney under the provisions of this section shall perform such duties, possess such qualifications, employ such staff, and be paid such salary and expenses as may be established by ordinance by the city council of the city.
    1. If no attorney residing in the city is elected as city attorney, the city council may select a resident attorney to fill the office for the remainder of the unfilled term.
      1. If no resident attorney of the city is willing to serve as city attorney or if no attorney resides within the limits of the city, the mayor and city council may contract with any licensed attorney of this state or the attorney's firm to serve as legal advisor, counselor, or prosecutor until a qualified city attorney is elected or appointed.
      2. The duties of a nonresident attorney under contract shall be prescribed by ordinance.

History. Acts 1969, No. 154, §§ 1, 3; 1977, No. 171, §§ 1, 4; 1979, No. 1002, § 1; A.S.A. 1947, §§ 19-1015.3, 19-1015.5, 19-1015.7; Acts 1993, No. 1121, § 1; 2003, No. 1361, § 1.

Publisher's Notes. Formerly, subdivision (a)(1) of this section provided, in part, for the appointment of city attorneys until the general election of 1978. Other provisions of Acts 1969, No. 154, which enacted this statute, provided for the intent and purpose of this legislation (§ 4) and provided that any person so appointed would be deemed to be an employee of the city and not an official (§ 2).

14-43-315. City attorney in mayor-council cities of fewer than 50,000.

  1. The qualified voters of cities of the first class having a population of fewer than fifty thousand (50,000) and having the mayor-council form of government shall elect a city attorney for four (4) years on the Tuesday following the first Monday in November 1970 and every four (4) years thereafter.
  2. Incumbent city attorneys shall continue in office until their successors are elected and qualified.
    1. If no attorney residing in the city is elected as city attorney, the city council may select a resident attorney to fill the office for the remainder of the unfilled term.
      1. If no resident attorney of the city is willing to serve as city attorney or if no attorney resides within the limits of the city, the mayor and city council may contract with any licensed attorney of this state or the attorney's firm to serve as legal advisor, counselor, or prosecutor until a qualified city attorney is elected or qualified.
      2. The duties of a nonresident attorney under contract shall be prescribed by ordinance.

History. Acts 1965, No. 131, § 1; A.S.A. 1947, § 19-1015.1; Acts 2003, No. 1361, § 2.

Publisher's Notes. Formerly, this section provided, in part, for the election of city attorneys to serve from January 1, 1967, to January 1, 1971.

14-43-316. City clerk, treasurer, or clerk-treasurer in mayor-council cities of fewer than 50,000.

    1. The qualified voters of cities of the first class having a population of fewer than fifty thousand (50,000) and having the mayor-council form of government shall elect on the first Tuesday following the first Monday in November, 1962, and every four (4) years thereafter:
      1. One (1) city clerk and, unless appointed pursuant to § 14-43-405, one (1) city treasurer; or
      2. One (1) city clerk-treasurer.
    2. The city clerk and city treasurer, or the city clerk-treasurer, shall hold office for four (4) years and until a successor is elected and qualified.
  1. The city clerk and the city treasurer, or the city clerk-treasurer, shall take the oath of office with the other city officials that are elected in the general election in 1962 and in that manner every four (4) years thereafter.
  2. The city clerk and city treasurer, or city clerk-treasurer, shall give the bond and perform the duties as are prescribed by law and shall receive a salary as is prescribed by ordinance in each of these cities.
  3. Each incumbent in any city having this population shall continue to be the city clerk, city treasurer, or city clerk-treasurer and receive the salary and perform the duties until a successor is elected and qualified.

History. Acts 1943, No. 248, § 1; 1951, No. 123, § 1; 1961, No. 430, § 1; A.S.A. 1947, § 19-1016; Acts 2001, No. 364, § 1; 2019, No. 383, § 7.

A.C.R.C. Notes. The language “on the first Tuesday following the first Monday in November, 1962” in subsection (a) originally applied to the city clerk position and its application to the treasurer or clerk-treasurer position concerns the 2002 date when those positions will next be elected.

Amendments. The 2019 amendment deleted (a)(1)(A)(i); redesignated (a)(1)(A)(ii) as (a)(1)(A); substituted “One (1) city clerk and, unless appointed pursuant to § 14-43-405, one (1) city treasurer” for “One (1) city treasurer, unless appointed pursuant to § 14-43-405” in (a)(1)(A); and substituted “One (1)” for “A” in (a)(1)(B).

14-43-317. [Repealed.]

Publisher's Notes. This section, concerning clerk in cities between 28,000 and 35,000, was repealed by Acts 1993, No. 1121, § 1. The section was derived from Acts 1943, No. 248, § 1; 1951, No. 365, § 1; A.S.A. 1947, § 19-1016.1.

14-43-318. [Repealed.]

Publisher's Notes. This section, concerning police judges of cities of the first class, was repealed by Acts 2005, No. 45, § 1. The section was derived from Acts 1987, No. 684, § 1.

14-43-319. City attorney in mayor-council cities of fewer than 5,000.

    1. If not established by ordinance that the office of the city attorney will be appointed, the qualified voters of cities of the first class having a population of fewer than five thousand (5,000) and having the mayor-council form of government shall elect a city attorney for four (4) years on the Tuesday following the first Monday in November 2006 and every four (4) years thereafter.
    2. An incumbent city attorney shall continue in office until his or her successor is elected and qualified.
    1. If no attorney residing in the city is elected as city attorney, the city council may select a resident attorney to fill the office for the remainder of the unfilled term.
      1. If no resident attorney of the city is willing to serve as city attorney or if no attorney resides within the limits of the city, the mayor and city council may contract with any licensed attorney of this state or the attorney's firm to serve as legal advisor, counselor, or prosecutor until a qualified city attorney is elected or qualified.
      2. The duties of a nonresident attorney under contract shall be prescribed by ordinance.

History. Acts 2005, No. 387, § 1.

Subchapter 4 — Officers and Employees Generally

Effective Dates. Acts 1875, No. 1, § 95: effective on passage.

Acts 1943, No. 154, § 3: Mar. 4, 1943. Emergency clause provided: “Whereas, there now exists no satisfactory and permanent method of filling vacancies in the office of alderman in cities of the first class and whereas, it is highly desirable in the interest of the public peace, health and safety that vacancies in the office of alderman be filled as rapidly as possible after they occur, an emergency is hereby found to exist and this act shall be in full force and effect from and after its passage and approval.”

Acts 1957, No. 9, § 5: Feb. 1, 1957. Emergency clause provided: “It has been found and is declared by the General Assembly of the State of Arkansas that laws authorizing the appointment of deputy city attorneys in certain cities of the first class are inadequate in that no specific provision exists for such appointments in many cases; that by reason of physical disability of various city attorneys and the calling into military service of city attorneys, there is an urgent need for specific statutory authority for such appointments and that enactment of this measure will remedy this situation. Therefore, an emergency is declared to exist and this act, being necessary for the preservation of public peace, health and safety, shall take effect and be in force from the date of its approval.”

Acts 1967, No. 431, § 3: Mar. 16, 1967. Emergency clause provided: “It is hereby found and determined by the General Assembly that the work load of City Attorneys of cities of the First Class is steadily increasing and that the salaries presently provided for such City Attorneys are not sufficient to adequately compensate said Attorneys for their services and that cities of the First Class are without adequate funds to increase the compensation of said City Attorneys for their services and that unless the compensation of City Attorneys is increased, the administration of justice will be seriously hampered. Therefore, an emergency is hereby declared to exist, and this Act, being necessary for the immediate preservation of the public peace, health and safety, shall be in effect from the date of its passage and approval.”

Acts 1977, No. 8, § 3: Jan. 27, 1977. Emergency clause provided: “Whereas, there is uncertainty as to whether the city governing body in cities of the first class can appoint an acting mayor to serve from the time of vacancy until a new mayor is elected at a special election and many cities are unable to adequately perform municipal services for the people of this State because of this uncertainty. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate protection of the public peace, health and safety shall take effect immediately on its passage and approval.”

Acts 1981, No. 303, § 4: Mar. 4, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that when vacancies exist in the position of alderman and the remaining term exceeds one year in cities of over 50,000 having a mayor-council form of government and in which the electors of each ward elect at least one (1) alderman, the filling of the vacant position by appointment deprives the people of a voice in filling what should be an elected position; that this Act is designed to correct this undesirable situation and should be given effect immediately. Therefore, an emergency is declared to exist, and this Act being necessary for the immediate protection of the public peace, health and safety shall take effect immediately upon its passage and approval.”

Acts 1985, No. 171, § 3: Feb. 22, 1985. Emergency clause provided: “It is hereby found and determined by the General Assembly that the present law does not specifically authorize cities of the second class to levy fees for prosecutions conducted by the city attorneys of such cities; that second class cities are in urgent need of such authority to enable such cities to provide adequate compensation to their city attorneys and to assure the effective and efficient administration of justice in such cities; and that this Act is designed to expressly grant such authority and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 2007, No. 663, § 56: Jan. 1, 2012.

Acts 2009, No. 1480, § 117: Apr. 10, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act makes various revisions to Arkansas election laws that are designed to improve the administration of elections and special elections and that these revisions should be implemented as soon as possible so that the citizens of this state may benefit from improved election procedures. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Research References

Am. Jur. 56 Am. Jur. 2d, Mun. Corp., § 231 et seq.

C.J.S. 62 C.J.S., Mun. Corp., § 462 et seq.

14-43-401. Mayor generally.

    1. The mayor shall hold his or her office during the term for which he or she shall have been elected and until his or her successor shall have been elected and qualified.
    2. The mayor shall keep an office at some convenient place in the city, to be provided by the city council, and shall keep the corporate seal of the city in his or her charge.
      1. In case of the mayor's death, disability, resignation, or other vacation of his or her office, the city council, by vote of a majority of all its members, may appoint some other person to act until the expiration of his or her term or disability if the unexpired term of his or her office is less than one (1) year. Otherwise, an election shall be ordered in accordance with the laws of the state.
      2. A removal from the city shall be deemed a vacation of his or her office.
      1. In all cases in which the unexpired term has one (1) year or more to run and a special election has been called to fill the vacancy in the office of mayor, the city governing body may appoint a qualified elector of the city, including any member of the city council, to serve as acting mayor until the office is filled at the special election.
      2. A member of the council shall not vote on his or her own appointment.

History. Acts 1875, No. 1, § 53, p. 1; C. & M. Dig., §§ 7695, 7696; Pope's Dig., §§ 9838, 9839; Acts 1977, No. 8, § 1; A.S.A. 1947, § 19-1012; Acts 2015, No. 339, § 1.

Amendments. The 2015 amendment redesignated (b)(1) as (b)(1)(A) and (B); in (b)(1)(A), substituted “the mayor’s” for “his or her,” inserted “city,” and substituted “one (1) year” for “six (6) months”; redesignated (b)(2) as (b)(2)(A) and (B); and, in (b)(2)(A), substituted “in which” for “where,” “one (1) year or more” for “more than six (6) months,” and “may appoint a” for “is authorized to appoint any,” and inserted “city.”

14-43-402 — 14-43-404. [Repealed.]

Publisher's Notes. These sections, concerning vice mayor for city in county of 40,000 to 45,000; vice mayor for cities of 25,500 to 27,000; vice mayor for cities of 9,500 to 11,500, were repealed by Acts 1995, No. 555, § 1. The sections were derived from the following sources:

14-43-402. Acts 1969, No. 316, §§ 1-3; A.S.A. 1947, §§ 19-1010.1 — 19-1010.3.

14-43-403. Acts 1971, No. 18, §§ 1, 2; A.S.A. 1947, §§ 19-1010.6, 19-1010.7.

14-43-404. Acts 1971, No. 256, §§ 1, 2; A.S.A. 1947, §§ 19-1010.4, 19-1010.5.

14-43-405. Treasurer — Clerk-treasurer in mayor-council cities.

    1. Each city of the first class having the mayor-council form of government may provide by ordinance for the election or appointment of its city treasurer.
      1. The city council may designate by ordinance or resolution the city clerk as “clerk-treasurer”, allowing one (1) person to assume the duties of both clerk and treasurer.
      2. The city council may combine the offices of clerk and treasurer to take effect at the next election under § 14-43-316 or when the offices are vacant.
    2. When one (1) person assumes the duties of both clerk and treasurer, the position shall not be separated during the elected clerk-treasurer's term unless the position is vacant.
  1. The term of office for these positions, combined or separate, is four (4) years.

History. Acts 1965, No. 484, § 4; A.S.A. 1947, § 19-1015.2; Acts 2001, No. 364, § 2; 2019, No. 336, § 2.

Amendments. The 2019 amendment added the (a)(2)(A) designation and added (a)(2)(B) and (a)(3).

14-43-406. City clerk's seal.

  1. Each city council shall cause to be provided for its clerk's office a seal, in the center of which shall be the name of the city and around the margin the words “city clerk”.
  2. The seal shall be affixed to all transcripts, orders, or certificates which it may be necessary or proper to authenticate under the provisions of this subtitle, or of any bylaw or ordinance of the city.
  3. For all attested certificates and transcripts, other than those ordered by the council, the same fees shall be paid as are allowed county clerks for similar services.

History. Acts 1875, No. 1, § 61, p. 1; C. & M. Dig., § 7743; Pope's Dig., § 9939; A.S.A. 1947, § 19-1017.

14-43-407. Deputy city attorneys.

  1. Any city attorney of a city of the first class, subject to the provisions of this section, shall have the power to appoint one (1) or more deputies for whose official acts the officer appointing the deputy shall be responsible.
  2. A deputy city attorney appointed pursuant to the provisions of this section shall serve at the will of the officer appointing him or her.
  3. Unless otherwise provided by ordinance of the city council, the salary or other compensation of any deputy city attorney appointed pursuant to this section shall be paid by the city attorney from his or her own compensation.
  4. This section is cumulative as to any law authorizing the appointment of a deputy city attorney in certain cities of the first class. Nothing contained in this section shall be construed to invalidate the appointment of any such deputy made pursuant to law, nor to change the compensation thereof as previously fixed by law or by the action of any council. Nor shall this section be deemed to limit or impair the right of the council hereafter to fix the compensation or salary of such a deputy appointed pursuant to the provisions of this section or any other legislation.

History. Acts 1957, No. 9, §§ 1-4; A.S.A. 1947, §§ 19-1019.1 — 19-1019.4.

14-43-408. [Repealed.]

Publisher's Notes. This section, concerning deputy clerks, attorneys, and treasurers in cities between 11,700 and 11,750, was repealed by Acts 1995, No. 555, § 1. The section was derived from Acts 1949, No. 225, § 1; A.S.A. 1947, § 19-1019.

14-43-409. Compensation of officers generally.

Any officer provided for in this subtitle, and by ordinance of any city under this subtitle, shall receive such salary as the council of any city may designate, and in no instance shall he or she receive an additional compensation by way of fees, fines, or perquisites.

History. Acts 1875, No. 1, § 51, p. 1; C. & M. Dig., § 7693; Pope's Dig., § 9836; A.S.A. 1947, § 19-1025; Acts 2007, No. 663, § 17.

Case Notes

In General.

Municipal officers shall receive salaries, but in no instance shall they receive additional compensation. Miller v. City of Ft. Smith, 160 Ark. 487, 254 S.W. 1068 (1923).

Applicability.

While this section empowers first-class cities to fix their officers' salaries, nowhere in Acts 1875, No. 1 is such power given to second-class cities and towns; however, the 1875 act does, by implication, delegate such power to second-class cities and incorporated towns. Conner v. Burnett, 216 Ark. 559, 226 S.W.2d 984 (1950).

Additional Compensation.

Attorney who represents city in rate case cannot recover fees out of refund decreed by Supreme Court. City of Ft. Smith v. Southwestern Bell Tel. Co., 220 Ark. 70, 247 S.W.2d 474 (1952).

14-43-410. Compensation of city attorneys.

  1. Any city of the first class, city of the second class, or incorporated town in the State of Arkansas may provide by ordinance that the city attorney of the city shall receive as part of his or her compensation, for all prosecutions tried by the city attorney for violations of ordinances of the city and for all prosecutions tried by the city attorney for violations of state laws committed within the corporate limits of the cities, the same fees as are allowed prosecuting attorneys in this state in all criminal cases.
      1. By proper ordinance, any city or town may specify pay for the city attorney as the council may desire.
      2. The pay may include salary, hourly fees, costs, fees, or other like compensation, in combination or singularly, as the council may deem appropriate.
    1. In the event the city attorney is paid a salary only, the city is authorized to collect the fees referred to in this section and they are to be applied as the council may direct.

History. Acts 1967, No. 431, § 1; 1985, No. 171, § 1; A.S.A. 1947, § 19-1025.1; Acts 2001, No. 366, § 1.

Case Notes

Constitutionality.

An ordinance limiting the city attorney's salary to $1.00 per annum when in fact the city attorney was uncontested in his bid for the election, passed simultaneously with an ordinance removing the city attorney from office on the eve of the election, was punitive in that it intended to constructively bar him from assuming the position to which he was duly elected by the people; accordingly, the first ordinance and its implementing resolution were unconstitutional as bills of attainder. Crain v. Mountain Home, 611 F.2d 726 (8th Cir. 1979).

14-43-411. Council member vacancy in mayor-council form of government.

      1. Whenever a vacancy occurs in the office of council member in a city of the first class having a population of less than twenty thousand (20,000) according to the most recent federal decennial census, at the first regular meeting after the occurrence of the vacancy, the city council shall proceed to elect by a majority vote of the remaining members elected to the council a council member to serve for the unexpired term.
        1. However, at least a quorum of the whole number of the city council shall remain in order to fill a vacancy.
        2. The election by the remaining members of the city council is not subject to veto by the mayor.
    1. The person elected by the council shall be a resident of the ward where the vacancy occurs at the time of the vacancy.
  1. When a vacancy occurs in any position of council member in a city having a population of twenty thousand (20,000) or more according to the most recent federal decennial census, a new council member shall be chosen in the following manner:
    1. If the unexpired portion of the term of a council member exceeds one (1) year, at the first regular meeting after the occurrence of the vacancy, the city council shall proceed to either elect by a majority vote of the remaining members elected to the council a council member to serve for the unexpired term or call for a special election to be held in accordance with § 7-11-101 to fill the vacancy; or
    2. If the unexpired portion of the term of a council member is one (1) year or less, a successor shall be chosen by a majority vote of the members of the council.

History. Acts 1943, No. 154, § 1; 1981, No. 303, § 1; A.S.A. 1947, § 19-1026; Acts 1997, No. 202, § 1; 2005, No. 2145, § 28; 2007, No. 1049, § 47; 2009, No. 185, § 2; 2009, No. 385, § 2; 2009, No. 1480, § 65.

Publisher's Notes. This section is being set out to correct references throughout from “alderman” to “council member”, for consistency with Acts 2017, No. 879.

Amendments. The 2009 amendment by No. 185 redesignated (a)(1), added (a)(1)(C), and made minor stylistic changes.

The 2009 amendment by No. 385 inserted “in mayor-council form of government” in the section heading; inserted “having a population of less than twenty thousand (20,000) according to the most recent federal decennial census” and substituted “the first” for “any” in (a)(1)(A), and redesignated (a)(1)(B) and (C); in (b), in the introductory language, substituted “twenty thousand (20,000)” for “fifty thousand (50,000)” and deleted “and having a mayor-council form of government in which the electors of each ward elect one (1) or more aldermen” following “census,” and rewrote (b)(1); and made related changes.

The 2009 amendment by No. 1480 substituted “§ 7-11-101 et seq.” for “§ 7-5-103(a)” in (b)(1).

Case Notes

Reinstatement of Former Alderman.

Where an alderman was regularly elected in a city of the first class to fill the office of an alderman convicted of a crime, he was elected for the unexpired term and, in the absence of a statute providing for reinstatement or restoration to office under the circumstances, the former alderman could not be reinstated to office upon reversal of his conviction, since the public interest must be considered paramount. May v. Edwards, 255 Ark. 1041, 505 S.W.2d 13 (1974).

14-43-412. Vacancies in other elected offices.

  1. In case any office of an elected officer, except council members of the ward, becomes vacant before the expiration of the regular term, then the vacancy shall be filled by the city council until a successor is duly elected and qualified.
  2. The successor shall be elected for the unexpired term at the first general election that occurs after the vacancy has happened.

History. Acts 1875, No. 1, § 63, p. 1; C. & M. Dig., § 7746; Pope's Dig., § 9941; A.S.A. 1947, § 19-1027; Acts 2011, No. 134, § 1; 2017, No. 879, § 22.

Amendments. The 2011 amendment substituted “first general” for “first annual” in (b).

The 2017 amendment substituted “council members” for “aldermen” in (a).

Subchapter 5 — Powers and Duties Generally

Cross References. Civil service system for cities of 75,000 or over, § 14-49-101 et seq.

Firemen's relief and pension fund board, ex officio officers, § 24-11-801.

Effective Dates. Acts 1875, No. 1, § 95: effective on passage.

Acts 1885, No. 67, § 7: effective on passage.

Acts 1913, No. 226, § 2: approved Mar. 29, 1913. Emergency clause provided: “This act, being for the protection of the public peace, health and safety, shall take effect and be in force from and after its passage.”

Acts 1995, No. 914, § 7: Apr. 5, 1995. Emergency clause provided: “It is hereby found and determined by the General Assembly that in some instances vacancies in the positions of the department heads of some cities are not being timely filled; that this results in confusion and inefficiency within the municipal government; that this act provides a mechanism whereby the vacancies in department head positions may be filled more efficiently in a more timely manner; therefore this act should go into effect as soon as possible. Therefore, an emergency is hereby declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall be in full force and effect from and after passage and approval.”

Acts 2001, No. 354, § 2: Feb. 22, 2001. Emergency clause provided: “It is hereby found and determined by the Eighty-third General Assembly that there are certain cities in Arkansas whose governing bodies have not been able to meet due to a lack of quorum and that those cities have been unable to enact legislation or to conduct municipal business which is necessary to the operation of the city and its provision of necessary services to the citizens of the city. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Research References

Am. Jur. 56 Am. Jur. 2d, Mun. Corp., §§ 139-180, 275-283.

C.J.S. 62 C.J.S., Mun. Corp., § 385 et seq. and § 462 et seq.

14-43-501. Organization of governing body — Definition.

    1. The members of a governing body elected for each city or town shall annually in January assemble and organize the governing body.
      1. A majority of the whole number of members of a governing body constitutes a quorum for the transaction of business.
        1. The governing body shall judge the election returns and the qualifications of its own members.
        2. These judgments of the governing body are not subject to veto by the mayor.
        1. The governing body shall determine the rules of its proceedings and keep a journal of its proceedings, and the journal shall be open to the inspection and examination of any citizen.
        2. The governing body may also compel the attendance of absent members in such a manner and under such penalties as it prescribes.
        3. The governing body may consider the passage of rules on the following subjects, including without limitation:
          1. The agenda for meetings;
          2. The filing of resolutions and ordinances; and
          3. Citizen commentary.
      1. In a mayor-council form of government, the mayor shall be ex officio president of the city council and shall preside at its meetings.
      2. The mayor shall have a vote to establish a quorum of the city council at any regular or special meeting of the city council and when his or her vote is needed to pass any ordinance, bylaw, resolution, order, or motion.
    1. In the absence of the mayor, the city council shall elect a president pro tempore to preside over council meetings.
    2. If the mayor is unable to perform the duties of office or cannot be located, one (1) of the following individuals may perform all functions of a mayor during the disability or absence of the mayor:
      1. The city clerk;
      2. Another elected official of the city if designated by the mayor; or
      3. An unelected employee or resident of the city if designated by the mayor and approved by the city council.
  1. As used in this section, “governing body” means the city council in a mayor-council form of government, the board of directors in a city manager form of government, and the board of directors in a city administrator form of government.

History. Acts 1875, No. 1, § 51, p. 1; C. & M. Dig., §§ 7738-7741; Pope's Dig., §§ 9934-9937; Acts 1981, No. 345, § 1; A.S.A. 1947, § 19-1010; Acts 2001, No. 354, § 1; 2005, No. 190, § 1; 2009, No. 185, § 3; 2011, No. 110, § 1; 2013, No. 753, § 1; 2015, No. 235, § 1.

Amendments. The 2009 amendment inserted (a)(2)(B)(ii) and redesignated the remaining text of (a)(2)(B) accordingly; and made minor stylistic changes.

The 2011 amendment added “to preside over council meetings” at the end of (b)(2); and added (b)(3).

The 2013 amendment rewrote (b)(3).

The 2015 amendment rewrote (a); added “In a mayor-council form of government” at the beginning of (b)(1)(A); inserted “or special” in (b)(1)(B); inserted “individuals” in (b)(3); and added (c).

Case Notes

Election Returns.

The authority of a city council is limited to passing upon the face of election returns. Doherty v. Cripps, 82 Ark. 529, 102 S.W. 394 (1907).

Mayors.

The mayor is not an elected member of the city council, but only an ex-officio member by virtue of his executive position, and therefore his vote cannot be used in amending or repealing any part of an initiated act; thus, where only five members of a nine-member council voted to repeal an initiated ordinance, there was not the two-thirds majority required by Ark. Const. Amend. 7, and the mayor's favorable vote could not be counted as the sixth vote necessary to attain a two-thirds majority. Thompson v. Younts, 282 Ark. 524, 669 S.W.2d 471 (1984).

Where subdivision (b)(1)(B) repealed that part of this section that required a majority of the “aldermen” of a municipal corporation to approve appropriations, mayor of a city of first class could break five to five tie vote to pass no appropriation ordinance. Gibson v. City of Trumann, 311 Ark. 561, 845 S.W.2d 515 (1993).

Meetings.

The proceedings of a special meeting of a city council are legal if all the members had notice, whether all attended or not; when all the members of the council are voluntarily present in a council meeting and participate therein, it is a legal meeting for all purposes, unless the law provides otherwise, and an ordinance passed at such a meeting is valid. City of Mena v. Tomlinson Bros., 118 Ark. 166, 175 S.W. 1187 (1915).

Quorum.

An ordinance passed by less than the majority of all the members of a city council is void. Newbold v. City of Stuttgart, 145 Ark. 544, 224 S.W. 993 (1920).

14-43-502. Powers of council generally.

  1. The city council shall possess all the legislative powers granted by this subtitle and other corporate powers of the city not prohibited in it or by some ordinance of the city council made in pursuance of the provisions of this subtitle and conferred on some officer of the city.
    1. The council shall have the management and control of finances, and of all the real and personal property belonging to the corporation.
      1. The council shall provide the times and places of holding its meetings, which shall at all times be open to the public.
      2. The mayor or any three (3) council members of any city or town, regardless of size or classification, may call special meetings in the manner as may be provided by ordinance.
    2. The council shall appoint, or provide by ordinance, that the qualified voters of the city, of the wards, or districts as the case may require, shall elect all such city officers as shall be necessary for the good government of the city and for the due exercise of its corporate powers, and which shall have been provided by ordinance, as to whose appointment or election provision is not made in this subtitle and not provided by any general law of the state in reference to cities of the first class.

History. Acts 1875, No. 1, § 62, p. 1; C. & M. Dig., § 7744; Pope's Dig., § 9940; A.S.A. 1947, § 19-1011; Acts 2001, No. 365, § 1; 2017, No. 879, § 23.

Amendments. The 2017 amendment substituted “council members” for “aldermen” in (b)(2)(B).

Case Notes

Committees.

A committee of a city council having jurisdiction over the city parks has no legislative powers, as the legislative powers are conferred upon the council sitting as such. Satterfield v. Fewell, 202 Ark. 67, 149 S.W.2d 949 (1941).

14-43-503. [Repealed.]

Publisher's Notes. This section, concerning imposition of costs on misdemeanor convictions, was repealed by Acts 1999, No. 1081, § 11. The section was derived from Acts 1977, No. 564, § 1; A.S.A. 1947, § 19-1011.1.

14-43-504. Powers and duties of mayor generally.

  1. The mayor of the city shall be its chief executive officer and conservator of its peace. It shall be his or her special duty to cause the ordinances and regulations of the city to be faithfully and constantly obeyed.
  2. The mayor shall:
    1. Supervise the conduct of all the officers of the city, examine the grounds of all reasonable complaints made against them, and cause all their violations of duty or other neglect to be properly punished or reported to the proper tribunal for correction;
    2. Have and exercise the power conferred on sheriffs, within the city limits, to suppress disorder and keep the peace; and
    3. Perform such other duties compatible with the nature of his or her office as the city council may from time to time require.
  3. The mayor shall report, within the first ninety (90) days of each year and at such other times as he or she shall deem expedient, to the council the municipal affairs of the city and recommend such measures as may seem advisable.
    1. In addition to the powers and duties already pertaining to that office, the mayor of any city of the first class shall be clothed with and exercise and perform the following:
      1. A mayor may veto within five (5) days, Sundays excepted, after the action of the city council thereon, any ordinance, resolution, or order adopted or made by the council, or any part thereof, which in his or her judgment is contrary to the public interest; and
        1. In case of a veto, before the next regular meeting of the council, the mayor shall file in the office of the city clerk, to be laid before that meeting, a written statement of his or her reasons for so doing.
        2. An ordinance, an order, or a resolution or part thereof, vetoed by the mayor is invalid unless, after the written statement is laid before it, the council, by a vote of two-thirds (2/3) of all the council members elected thereto, passes it over the veto.
    2. The mayor does not have the power of veto in circumstances prescribed under § 14-43-501(a) or § 14-43-411(a).

History. Acts 1875, No. 1, § 53, p. 1; 1885, No. 67, § 2, p. 92; 1893, No. 42, §§ 1, 2, p. 64; 1913, No. 226, § 1; C. & M. Dig., §§ 7697-7701; Pope's Dig., §§ 9840-9844; Acts 1979, No. 153, §§ 1, 2; A.S.A. 1947, §§ 19-1013, 19-1014; Acts 1991, No. 786, § 14; 1995, No. 534, § 2; 1995, No. 914, § 2; 2009, No. 161, § 1; 2009, No. 185, § 4; 2017, No. 879, § 24.

Publisher's Notes. Acts 1991, No. 786, § 37, provided:

“The enactment and adoption of this Act shall not repeal, expressly or impliedly, the acts passed at the regular session of the 78th General Assembly. All such acts shall have full effect and, so far as those acts intentionally vary from or conflict with any provision contained in this Act, those acts shall have the effect of subsequent acts and as amending or repealing the appropriate parts of the Arkansas Code of 1987.”

Amendments. The 2009 amendment by No. 161 substituted “within the first ninety (90) days of each year” for “at the second regular meeting of the council in each year” in (d).

The 2009 amendment by No. 185 added (e)(3) and made minor stylistic changes.

The 2017 amendment substituted “council members” for “aldermen” in (d)(1)(B)(ii).

Case Notes

Construction.

Prior to the enactment of § 14-42-110 in 1995, subdivision (e)(2) of this section and former § 14-43-505 created a property interest for a police chief in the position. Sykes v. City of Gentry, 114 F.3d 829 (8th Cir. 1997).

Annexation.

Mayor was authorized to sign an annexation petition on behalf of the city, where the city owned land whose annexation was proposed, as an exercise of his authority as chief executive officer of the city. City of Marion v. Guaranty Loan & Real Estate Co., 75 Ark. App. 427, 58 S.W.3d 410 (2001).

Chiefs of Police.

A chief of police in a city of first class, appointed under an ordinance fixing his term at one year, who surrendered office at the end of the year without protest, was estopped to claim that his term was two years under this section, and therefore he could not recover salary for the second year. City of West Helena v. Patrick, 185 Ark. 71, 46 S.W.2d 36 (1932).

The mayor of a city had the power to appoint the chief of police prior to 1933, when this power was limited only to cities not operating under the municipal Civil Service Act. Connor v. Ricks, 212 Ark. 833, 208 S.W.2d 10 (1948).

Subdivision (e)(2) of this section creates a property interest in the chief of police position for any city of the first class by providing for a term of employment, from the date of appointment to the following mayoral election, and by providing for removal only for cause. Pearson v. City of Paris, 839 F. Supp. 645 (W.D. Ark. 1993).

Although police chief was hired before 1995, his property interest in his position was eliminated in 1995 when the General Assembly enacted § 14-42-110. Sykes v. City of Gentry, 114 F.3d 829 (8th Cir. 1997).

Ordinances, Resolutions, or Orders.

The mayor is required to sign or approve an ordinance in order that it may become effective. Lewis v. Forrest City Special Imp. Dist., 156 Ark. 356, 246 S.W. 867 (1923).

Mayor is entitled to veto resolution of city council selecting member to board of public welfare. Steward v. Rust, 221 Ark. 286, 252 S.W.2d 816 (1952).

Salaries.

Ordinances raising salaries of city officials during their terms of office by allowing each of them an expense account was held contrary to this section, and at most could be treated as an increase to take effect at the expiration of their terms of office. Laman v. Moore, 193 Ark. 446, 100 S.W.2d 971 (1937).

14-43-505. [Repealed.]

Publisher's Notes. This section, concerning removal of police or fire chief, was repealed by Acts 1995, No. 534, § 3 and Acts 1995, No, 914, § 3. The section was derived from Acts 1885, No. 67, § 2, p. 92; 1893, No. 42, § 2, p. 64; C. & M. Dig., § 7747; Pope's Dig., § 9943; A.S.A. 1947, § 19-1028. For present law, see §§ 14-42-110 and 14-43-504.

14-43-506. Duties of city clerk.

  1. The city clerk in cities of the first class shall have the custody of all the laws and ordinances of the city and shall keep a regular and correct journal of the proceedings of the city council.
      1. The city clerk, city clerk-treasurer, or city treasurer, as the case may be, shall submit monthly a full report and a detailed statement of the financial condition of the city.
      2. The report shall show receipts, disbursements, and balance on hand, together with all liabilities of the city.
    1. The report shall be submitted to the council in open session.

History. Acts 1875, No. 1, § 51, p. 1; C. & M. Dig., § 7694; Pope's Dig., § 9837; A.S.A. 1947, § 19-1018; Acts 2007, No. 71, § 1; 2017, No. 761, § 1.

Amendments. The 2017 amendment redesignated former (b)(1) as (b)(1)(A) and (b)(1)(B); substituted “shall submit monthly” for “shall be required to submit quarterly” in (b)(1)(A); and substituted “The” for “This” in (b)(1)(B).

Case Notes

Records.

The record of the passage of an ordinance, duly proved, cannot be contradicted by parol evidence. Roberts v. Street Improv. Dist., 156 Ark. 248, 245 S.W. 489 (1922).

Cited: Condon v. City of Eureka Springs, 135 F. 566 (W.D. Ark. 1905).

14-43-507. Duties of treasurers.

Treasurers in cities of the first class shall be required to make similar reports as prescribed in § 14-43-506 and shall perform such other duties as may be required by the ordinances of the city.

History. Acts 1875, No. 1, § 51, p. 1; C. & M. Dig., § 7694; Pope's Dig., § 9837; A.S.A. 1947, § 19-1018.

Case Notes

Cited: Condon v. City of Eureka Springs, 135 F. 566 (W.D. Ark. 1905).

14-43-508. Duties of collectors.

Collectors in cities of the first class shall be required to make similar reports as prescribed in § 14-43-506 and shall perform such other duties as may be required by the ordinances of the city.

History. Acts 1875, No. 1, § 51, p. 1; C. & M. Dig., § 7694; Pope's Dig., § 9837; A.S.A. 1947, § 19-1018.

Cross References. Fines collected for violation of city ordinances paid to collector, § 16-96-403.

Case Notes

Cited: Condon v. City of Eureka Springs, 135 F. 566 (W.D. Ark. 1905).

14-43-509. Officers without prescribed terms.

In cities of the first class, all city officers whose terms of office are not prescribed, and whose powers and duties are not defined in this subtitle, or by bylaw or ordinance, shall perform such duties and exercise such powers, and continue in office two (2) years, unless sooner removed for cause.

History. Acts 1875, No. 1, § 62, p. 1; C. & M. Dig., § 7744; Pope's Dig., § 9940; A.S.A. 1947, § 19-1011.

Subchapter 6 — Powers over Municipal Affairs

Effective Dates. Acts 1971, No. 266, § 9: Mar. 12, 1971. Emergency clause provided: “Whereas it is found and declared that numerous and pressing needs of Arkansas municipalities are, because of their urgency, creating burdens on the General Assembly due to the requirement that the General Assembly examine each individual problem and authorize each specific power to municipalities, according to the provisions of the so-called Dillon's Rule which requires an express grant of authority to a municipality by the General Assembly, and which rule is now considered obsolete and should be repealed immediately in order that the General Assembly may attend to matters of statewide concern; therefore, it is declared for these reasons that an emergency exists and this act being essential for the preservation of the public peace, health and safety shall take effect and be in force from and after its passage and approval.”

Acts 1971, No. 537, § 4: Apr. 5, 1971. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 266 of 1971 was intended to grant broad authorities to cities of the first class to exercise functions or legislative powers pertaining to the local municipal affairs of the city, and that it was not the intention of the General Assembly in Subsection (a) of Section 4 to repeal, restrict, or limit the existing authority of cities of the first class to regulate rates for services charged by public utilities, telephone and telegraph companies, taxicabs, buslines or other utilities or carriers operating under city franchise, and that the immediate passage of this Act is necessary to clarify said Subsection (a) of Section 4 of said Act 266 of 1971. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

Research References

Am. Jur. 56 Am. Jur. 2d, Mun. Corp., §§ 193-230, 423-578.

C.J.S. 62 C.J.S., Mun. Corp., § 106 et seq.

U. Ark. Little Rock L.J.

Goldner, A Call for Reform of Arkansas Municipal Law, 15 U. Ark. Little Rock L.J. 175.

Halbert, Municipal Law—Utility Franchise Fees—True Nature of Levy Immaterial When City Possesses Statutory Authority. City of Little Rock v. AT&T Communications, Inc., 318 Ark. 616, 888 S.W.2d 290 (1994), 18 U. Ark. Little Rock L.J. 259.

Case Notes

Court Costs.

This subchapter does not give a city council authority to repeal legislation allowing use of court costs to support law library (§ 16-23-101 et seq.) or to erect law library building (§ 16-23-102). Nahlen v. Woods, 255 Ark. 974, 504 S.W.2d 749 (1974).

14-43-601. Municipal affairs delineated.

  1. As used in this subchapter:
    1. “Municipal affairs” means all matters and affairs of government germane to, affecting, or concerning the municipality or its government except the following, which are state affairs and subject to the general laws of the State of Arkansas:
      1. Public information and open meetings;
      2. Uniform requirements for competitive bidding on contracts;
      3. Claims against a municipality;
      4. Requirements of surety bonds for financial officers;
      5. Collective bargaining;
      6. Pension and civil service systems;
      7. Hours and vacations, holidays, and other fringe benefits of employees;
      8. The definition, use, and control of surplus revenues of municipally owned utilities;
      9. Vacation of streets and alleys;
      10. Matters coming within the police power of the state, including minimum public health, pollution, and safety standards;
      11. Gambling and alcoholic beverages;
      12. Traffic on or the construction and maintenance of state highways;
      13. Regulations of intrastate commerce, including rates and terms of service of railroad, bus, and truck lines, cooperatives, and nonmunicipally owned utilities;
      14. The incorporation and merger of municipalities and annexation of territory to municipalities; and
      15. Procedure for the passage of ordinances by the governing body of the municipality; and
      1. “Municipality” means a city of the first class, a city of the second class, or an incorporated town.
      2. A municipality may legislate upon the state affairs described in subdivision (a)(1) of this section if not in conflict with state law.
    1. Matters of public health that concern emergency medical services, emergency medical technicians, and ambulances, as defined in §§ 20-13-201 — 20-13-209 and 20-13-211, and ambulance companies, shall be included in the term “municipal affairs”.
      1. Municipalities shall have the authority to enact and establish standards, rules, or regulations that are equal to or greater than those established by the state concerning emergency medical services, emergency medical technicians, ambulances, and ambulance companies.
      2. The standards, rules, or regulations shall not be less than those established by the state for the rating of the service offered.

History. Acts 1971, No. 266, § 2; 1981 (1st Ex. Sess.), No. 23, § 7; A.S.A. 1947, § 19-1043; Acts 2011, No. 1187, § 1.

Publisher's Notes. Acts 1985, No. 1001, § 8, provided that nothing in the act repealed, by implication or otherwise, Acts 1981 (Ex. Sess.), No. 23, which is codified as this section and §§ 14-54-704, 14-137-103, 14-137-106, and 14-266-10114-266-110.

Amendments. The 2011 amendment inserted “of the municipality” in (a)(1)(O); inserted (a)(2)(A); rewrote (a)(2)(B); deleted “of cities of the first class” at the end of (b)(1); and substituted “Municipalities” for “These cities” in (b)(2)(A).

Research References

U. Ark. Little Rock L. Rev.

Justin Craig, Note: Municipal Police Power & Its Adverse Effects on Small Businesses in Arkansas: A Proposal for Reform, 36 U. Ark. Little Rock L. Rev. 177 (2014).

Case Notes

Gambling and Alcoholic Beverages.

A first-class city had the power to enact an ordinance that prohibited private clubs from serving or allowing consumption of mixed drinks between 2:00 a.m. and 10:00 a.m., since this section defines alcoholic beverages to be a “state affair” and authorizes any city of the first class to enact an ordinance dealing with state affairs so long as the ordinance avoids conflict with state law. Tompos v. City of Fayetteville, 280 Ark. 435, 658 S.W.2d 404 (1983).

Police Powers of State.

This section excludes city control over functions that fall within state police powers. City of Ft. Smith v. Housing Auth., 256 Ark. 254, 506 S.W.2d 534 (1974).

Public Health.

A housing authority is an agent of the state dealing with public health standards, and thus is not a matter pertaining to “municipal affairs.” City of Ft. Smith v. Housing Auth., 256 Ark. 254, 506 S.W.2d 534 (1974).

Cited: City of Little Rock v. Chartwell Valley Ltd. Partnership, 299 Ark. 542, 772 S.W.2d 616 (1989).

14-43-602. Authority generally.

  1. A municipality is authorized to perform any function and exercise full legislative power in any and all matters of whatsoever nature pertaining to its municipal affairs, including, but not limited to, the power to tax.
  2. The rule of decision known as “Dillon's Rule” is inapplicable to the municipal affairs of municipalities.

History. Acts 1971, No. 266, § 1; A.S.A. 1947, § 19-1042; Acts 2011, No. 1187, § 2.

Amendments. The 2011 amendment substituted “A municipality” for “Any city of the first class” in present (a); and added (b).

Case Notes

Constitutionality.

The delegation by the legislature of authority to first-class cities to legislate upon an existing general law is prohibited by Ark. Const., Art. 12, § 4. City of Ft. Smith v. Housing Auth., 256 Ark. 254, 506 S.W.2d 534 (1974).

It is unconstitutional to interpret this section as conferring upon a city the authority to repeal, by an implementing ordinance, a general law and substitute its own method of filling vacancies on a housing authority board. City of Ft. Smith v. Housing Auth., 256 Ark. 254, 506 S.W.2d 534 (1974).

This section, under Ark. Const., Art. 12, § 4 and under § 14-43-601, could not be interpreted to abridge § 14-169-208 in respect to filling of vacancies on a board of commissioners of a local housing authority. City of Ft. Smith v. Housing Auth., 256 Ark. 254, 506 S.W.2d 534 (1974).

Financial Affairs.

This section contains authority for a city ordinance to create a position of finance director to handle the financial affairs of the city. Besharse v. City of Blytheville, 254 Ark. 382, 493 S.W.2d 708 (1973).

Cited: Tompos v. City of Fayetteville, 280 Ark. 435, 658 S.W.2d 404 (1983); Paragould Cablevision, Inc. v. City of Paragould, 305 Ark. 476, 809 S.W.2d 688 (1991); Davis v. City of Blytheville, 2015 Ark. 482, 478 S.W.3d 214 (2015).

14-43-603. Felonies.

No municipality may declare any act a felony.

History. Acts 1971, No. 266, § 3; A.S.A. 1947, § 19-1044.

14-43-604. Gambling.

A municipality may not authorize gambling except as provided by state law.

History. Acts 1971, No. 266, § 3; A.S.A. 1947, § 19-1044; Acts 2011, No. 1187, § 3.

Amendments. The 2011 amendment added “except as provided by state law.”

Research References

Ark. L. Rev.

Kindt, Legalized Gambling Activities as Subsidized by Taxpayers, 48 Ark. L. Rev. 889.

14-43-605. Alcoholic beverages.

No municipality may authorize the sale or consumption of alcoholic beverages.

History. Acts 1971, No. 266, § 3; A.S.A. 1947, § 19-1044.

Research References

U. Ark. Little Rock L. Rev.

Justin Wayne Harper, Note: A Spirited Revolution: Local Option Elections and the Impending Death of Prohibition in Arkansas, 38 U. Ark. Little Rock L. Rev. 527 (2016).

14-43-606. Taxation generally.

  1. No municipality shall levy any sales, which includes gross receipts or gross proceeds, use, payroll, or income tax other than those authorized by law.
  2. No tax on alcoholic beverages shall be levied by a municipality other than those authorized by law.

History. Acts 1971, No. 266, § 4; 1971, No. 537, § 1; A.S.A. 1947, § 19-1045.

Cross References. Taxation generally, § 26-73-101 et seq.

14-43-607. Income tax.

  1. After approval of a majority of those voting on the question in the municipality in a general or special election, a city of the first class may levy a tax on income of individual residents of that city.
  2. Upon the condition that a tax is levied pursuant to this section at the same or higher rate upon income of individual residents of that city, then after approval at the same election required in this section or at a subsequent election, the city may levy a tax on income earned by other individuals derived from activities, services rendered, or employment within the levying city.
  3. The rate of tax on income authorized by this section shall be a single percentage of the net income tax payable to the State of Arkansas.
    1. One-half (½) of a taxpayer's income which is subject to a tax authorized by this section, in a city which is not his or her residence, shall be exempt from payment of the tax if a tax authorized by this section is levied by a city in which the taxpayer resides.
    2. The other one-half (½) of a taxpayer's income subject to a tax authorized by this section shall be exempt from payment of the tax authorized by this section in the city in which the taxpayer resides.
      1. The governing body of any city levying the tax authorized in this section and the Secretary of the Department of Finance and Administration are authorized and empowered to enter into a contractual agreement whereby the secretary shall collect any of the taxes assessed by the city, whether by withholding of income tax or otherwise, and remit them to the city.
      2. This agreement may also provide for a consideration to be allowed the secretary for services rendered in making such collections.
    1. The secretary may establish rules concerning the procedures for collecting these taxes by him or her.

History. Acts 1971, No. 266, § 4; A.S.A. 1947, § 19-1045; Acts 2019, No. 315, § 995; 2019, No. 910, § 3378.

Amendments. The 2019 amendment by No. 315 substituted “rules” for “regulations” in (e)(2).

The 2019 amendment by No. 910 substituted “Secretary of the Department of Finance and Administration” for “Director” in (e)(1)(A); and substituted “secretary” for “director” in (e)(1)(A), (B) and (e)(2).

14-43-608. Regulation of prices.

  1. No municipality shall have the power to regulate prices for goods, rentals, or services sold or performed within the municipality by individuals or firms.
  2. Nothing in this section shall prohibit municipalities from establishing prices for goods, rentals, or services furnished by, or performed by, the municipality or an instrumentality thereof.

History. Acts 1971, No. 266, § 4; 1971, No. 537, § 1; A.S.A. 1947, § 19-1045.

14-43-609. Public utilities and carriers.

The provisions of this subchapter shall not repeal, limit, modify, or affect any of the powers conferred upon municipalities to regulate, in the manner prescribed by law, the rates or charges to be made for services rendered in the municipality by any regulated public utility or carrier operating under franchise issued by the municipality, including without limitation any of the following:

  1. Electric, gas, or water utilities;
  2. Telephone or telegraph companies;
  3. Taxicabs;
  4. Municipal bus companies; or
  5. Other utilities or carriers operating under public service franchise issued by the municipality.

History. Acts 1971, No. 266, § 4; 1971, No. 537, § 1; A.S.A. 1947, § 19-1045; Acts 2011, No. 1187, § 4.

Amendments. The 2011 amendment substituted “municipalities” for “cities of the first class” in the introductory language; substituted “municipality” for “city” or variant twice in the introductory language, in (4) and (5).

14-43-610. Reservation of state power.

Nothing in this subchapter shall limit the power reserved to the General Assembly to specifically limit the exercise of any powers, functions, and authority granted in this subchapter.

History. Acts 1971, No. 266, § 5; A.S.A. 1947, § 19-1046.

Publisher's Notes. Acts 1971, No. 266, § 7, provided that any existing state statute which now limits or prohibits the exercise of a function or legislative power of a city of the first class pertaining to its municipal affairs is hereby repealed upon the passage of an ordinance or resolution by a city of the first class which provides for, regulates, controls or otherwise affects its municipal affairs now limited by that state statute. It is the intent of this Section that State laws now limiting or prohibiting the exercise of a function or legislative power of a city of the first class pertaining to its municipal affairs shall remain in effect until action is taken on the subject matter of said statute by the governing body of a city of the first class.

14-43-611. Sale of city property to college or university.

Any city of the first class may sell, under such terms and conditions as it deems appropriate, city property to any publicly supported postsecondary educational institution.

History. Acts 1993, No. 1044, § 1.

Chapter 44 Government of Cities of the Second Class

Cross References. City attorney, § 14-42-112.

Firemen's relief and pension fund board, ex officio officers, § 24-11-801.

Effective Dates. Acts 1875, No. 1, § 95: effective on passage.

Acts 1881, No. 16, § 3: effective on passage.

Acts 1883, No. 63, § 3: effective on passage.

Acts 1887, No. 10, § 2: effective on passage.

Acts 1921, No. 450, § 2: effective on passage.

Acts 1927, No. 124, § 2: effective on passage.

Acts 1929, No. 251, § 5: effective on passage and approval.

Acts 1949, No. 42, § 3: approved Feb. 2, 1949. Emergency clause provided: “This Act being necessary for the immediate protection of the public peace, health and safety, an emergency is hereby declared to exist and this Act shall be in full force and effect from and after passage.”

Acts 1949, No. 44, § 4: Feb. 3, 1949. Emergency clause provided: “This Act being necessary for the protection of the public peace, health and safety, an emergency is hereby declared and this Act shall be in full force and effect from and after its passage and approval.”

Acts 1953, No. 172, § 3: approved Mar. 2, 1953. Emergency clause provided: “It is found and is hereby declared by the General Assembly that many cities of the second class are suffering because of inadequate law enforcement, therefore an emergency is hereby declared to exist and this act being necessary for the preservation of the public peace, health and safety, shall take effect and be in full force and effect from and after its passage.”

Acts 1953, No. 184, § 4: Mar. 2, 1953.

Acts 1967, No. 427, § 3: Mar. 16, 1967. Emergency clause provided: “It is hereby found and determined by the General Assembly that the present laws of this State authorize the city council of cities of the second class to fill vacancies in the office of Mayor of such cities, and do not afford an opportunity whereby all electors of said cities may be permitted to vote in choosing a Mayor to fill the unexpired portion of the term; and that the immediate passage of this Act is necessary to correct this situation. Therefore, an emergency is hereby declared to exist, and this Act being immediately necessary for the preservation of the public peace, health and safety, shall be in full force and effect from and after the date of its passage and approval.”

Acts 1979, No. 10, § 3: Jan. 30, 1979. Emergency clause provided: “It is hereby found and determined by the General Assembly that the Arkansas Supreme Court in a 1950 case involving an elected city marshal in a city of the second class held that the city marshal was an officer of the city and must reside within the corporate limits of the city; that the General Assembly by Act 172 of 1953 permitted city councils in cities of the second class to pass an ordinance providing the city marshal would be appointed by the mayor rather than elected by the people; that the elected city marshal is an elected officer and, therefore, of necessity is required to be a qualified elector of the city which includes being a legal resident of the city, but an appointed city marshal is an employee of the city similar to members of police departments in cities of the first class and many cities and towns permit their employees to reside outside the corporate limits; and, there is currently great confusion concerning whether an appointed city marshal must also be a legal resident, and that this Act is designed to correct this confusion and should be given effect as soon as possible. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1997, No. 1122, § 5: Apr. 5, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that there are cities in Arkansas whose governing bodies have not been able to meet due to lack of a quorum, and have thus been unable to enact legislation or conduct business which is necessary to the operation of the city and the provision of necessary services to the citizens in the city. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date on its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2007, No. 663, § 56, as amended by Acts 2009, No. 345, § 7, provided: “(a) Sections 2 through 15 of this act are effective January 1, 2008. (b) Sections 16 through 50 and 52 through 55 of this act are effective January 1, 2012. (c) Section 51 of Act 663 of 2007 is effective January 1, 2012, except: (1) That portion of Section 51 of Act 663 of 2007 that is referred to in Act 663 of 2007 as 16-17-933, establishing the Cleburne County District Court and departments of that court, codified as § 16-17-936 is effective July 1, 2009; and (2) That portion of Section 51 of Act 663 of 2007 that is referred to in Act 663 of 2007 as 16-17-950, establishing the St. Francis County District Court and departments of that court, codified as § 16-17-954 is effective July 1, 2009.”

Acts 2009, No. 1480, § 117: Apr. 10, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act makes various revisions to Arkansas election laws that are designed to improve the administration of elections and special elections and that these revisions should be implemented as soon as possible so that the citizens of this state may benefit from improved election procedures. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

14-44-101. Creation of wards.

  1. As soon as practicable after an incorporated town becomes a city of the second class, the city council shall form the city into the number of wards that, to it, will seem to best serve the interests of the city.
  2. It shall be the duty of the council to see that each ward has as nearly an equal population to each of the other wards as would best serve the interests of the taxpayers of the city.

History. Acts 1949, No. 44, § 1; 1983, No. 253, § 2; A.S.A. 1947, § 19-1113.

14-44-102. Redistricting of wards.

  1. City councils in cities of the second class shall have the authority to redistrict the wards of their cities when they determine that the people can best be served by adding wards, combining wards, or changing ward boundary lines to equalize the populations in the various wards.
    1. Within ninety (90) days after redistricting, if fifty (50) or more qualified electors in the city are dissatisfied with the division of the city into wards, they shall have the authority to petition the circuit court.
    2. The court, after due hearing, shall have authority to redistrict the city into such wards as it shall deem best if it finds that the redistricting action by the council was arbitrary and capricious.

History. Acts 1949, No. 44, §§ 1, 2; 1983, No. 253, §§ 2, 3; A.S.A. 1947, §§ 19-1113, 19-1114.

14-44-103. Election of council members.

    1. Except as provided under subdivision (a)(3) of this section, on the Tuesday following the first Monday in November 1982, and every two (2) years thereafter, the qualified voters in cities of the second class shall elect for each of the wards of these cities two (2) council members, who shall compose the city council.
    2. The qualified electors of every city of the second class shall elect from each ward of the city two (2) council members, who shall be designated as “council member number one” and “council member number two” of the ward.
      1. A candidate for the office of council member shall designate the number of the council member's office that the candidate is seeking on the petition filed pursuant to § 14-42-206.
      2. When this designation has been made, the candidate shall not be permitted thereafter to change the designation on that petition.
      3. The county clerk shall not accept a petition for filing that does not designate the number of the office of council member sought.
      4. Each city shall maintain in its records a document showing the name of each council member and the number of the office which the candidate holds.
      1. The city council of a city of the second class may refer to voters an ordinance on the question of electing the two (2) council members for each ward to four-year terms.
      2. The voters shall vote on the ordinance at a general election or at a special election called for that purpose by proclamation of the mayor in accordance with § 7-11-201 et seq. However, the election to approve the four-year election procedure shall be held no later than February 1 of the year of the general election in which the procedure is proposed to be effective.
      1. If this procedure is adopted by ordinance referred to and approved by the voters of the city, the initial term for the council member designated as “council member number one” of each ward shall be a four-year term at the next general election.
      2. The initial term for the council member designated as “council member number two” of each ward shall be a two-year term at the next general election, and thereafter shall be a four-year term, resulting in staggered terms for the ward.
      1. The city council may refer to voters an ordinance on the question of returning the city to electing council members to two-year terms using the procedures of subdivisions (a)(4)-(7) of this section.
      2. If the voters approve returning a city to two-year terms, all council members shall be elected to two-year terms at the next general election and thereafter.
    3. The city council may not refer to voters another question on electing council members to four-year terms or on returning the city to electing council members to two-year terms unless at least four (4) years have passed since the last election on changing the council members' terms.
      1. A candidate for the office of council member in a city of the second class shall reside in the ward from which he or she seeks to be elected and shall run for election at large, except if the council member is elected by ward under subsection (c) of this section.
      2. All of the qualified electors of the city may vote in the election.
        1. Except as provided in subdivision (b)(1)(C)(ii) of this section, the election commissioners in the city shall ensure that the qualified electors of each ward have at least one (1) voting precinct in each ward where the resident electors of the ward may cast their ballots.
        2. Subdivision (b)(1)(C)(i) of this section does not apply if the county board of election commissioners of the county in which the city is situated has established vote centers under § 7-5-101.
    1. If any duly elected council member shall cease to reside in the ward from which he or she was elected, that person shall be disqualified to hold the office and a vacancy shall exist, which shall be filled as prescribed by law.
      1. The city council of any such city may provide by ordinance that all council members be elected by ward, in which event each council member shall be voted upon by the qualified electors of the ward from which the person is a candidate.
        1. When provided by city ordinance, the name of the candidate shall appear upon the ballot only in the ward in which he or she is a candidate.
        2. The city council of these cities may provide for the election of one (1) council member from each ward citywide and the other council members from each ward by the voters of the ward only.
    1. All such cities choosing to elect all council members by wards or part by wards shall provide, in the manner provided by law, for the establishment of wards of substantially equal population in order that each council member elected from each ward shall represent substantially the same number of people in the city.
  1. Cities of the second class that elect their council members citywide may have one (1) public place only for holding elections.

History. Acts 1887, No. 10, § 1, p. 11; C. & M. Dig., § 7679; Pope's Dig., § 9801; Acts 1953, No. 184, §§ 1-3; 1961, No. 444, § 2; 1965, No. 484, § 3; 1969, No. 45, § 1; 1973, No. 501, § 1; 1981, No. 346, § 1; 1985, No. 421, § 1; A.S.A. 1947, §§ 19-1002.7, 19-1101 — 19-1101.3; Acts 2003, No. 328, §§ 1, 2; 2005, No. 2145, § 29; 2007, No. 1049, § 48; 2009, No. 1480, § 66; 2013, No. 503, § 2; 2017, No. 300, § 1; 2017, No. 879, § 25.

A.C.R.C. Notes. This section combines the provisions of A.S.A. §§ 19-1101 — 19-1101.3, which governed elections of aldermen in cities of the second class, with compatible provisions of A.S.A. § 19-1002.7, which originally governed only cities of the first class, but was amended in 1985 to apply to elections of aldermen in cities of the second, as well as the first, class.

The 2013 amendment omitted subdivisions (a)(4)-(7) without striking through the language to indicate the repeal of those subdivisions.

Amendments. The 2009 amendment substituted “§ 7-11-201 et seq.” for “§ 7-5-103(b)” in (a)(4)(B).

The 2013 amendment rewrote (a)(3).

The 2017 amendment by No. 300 added the (b)(1)(C)(i) and (b)(1)(C)(ii) designations; in (b)(1)(C)(i), substituted “Except as provided in subdivision (b)(1)(C)(ii) of this section” for “Provision shall be made by”, substituted “the city shall ensure” for “these cities so”, deleted “shall” preceding “have at least”, and substituted “of the ward” for “thereof”; and added (b)(1)(C)(ii).

The 2017 amendment by No. 879 substituted “council members” for “aldermen” in the section heading and made similar changes throughout the section; substituted “may” for “shall be entitled to” in (b)(1)(B); substituted “may provide by ordinance” for “is empowered and authorized to provide, by ordinance” in (c)(1)(A); and deleted “so” following “When” in (c)(1)(B)(i).

Research References

U. Ark. Little Rock. L. Rev.

Survey of Legislation, 2003 Arkansas General Assembly, Local Government, Election of Aldermen, 26 U. Ark. Little Rock. L. Rev. 433.

Case Notes

Election Procedures.

—Compliance.

Election procedures that are mandatory before an election are only directory after the election; therefore, failure of city council to comply with the election procedures of this section after ordinance had been passed raising the municipality from a town to a city of the second class had no effect on special election called for the purpose of issuing bonds for city improvement. Luther v. Gower, 233 Ark. 496, 345 S.W.2d 608 (1961).

—Time.

A city of the second class that was raised from an incorporated town in June, 1908, was required to hold its next election on the first Tuesday in April, 1910, and persons voted for in a pretended election held in 1911 acquired no right thereby to the offices which they claimed to hold thereunder. McMahan v. State, 102 Ark. 12, 143 S.W. 94 (1912) (decision prior to 1981 amendment).

—Voting.

Failure to have a voting precinct in each ward as required by this section will not affect the validity of the election where there is no showing that such failure resulted in denying any voter the privilege of voting. Rogers v. Mason, 246 Ark. 1, 436 S.W.2d 827 (1969).

Cited: Thomas v. Sitton, 213 Ark. 816, 212 S.W.2d 710 (1948); Sitton v. Burnett, 216 Ark. 574, 226 S.W.2d 544 (1950); Gore v. Emerson, 262 Ark. 463, 557 S.W.2d 880 (1977).

14-44-104. Vacancy in council member's office.

  1. If a vacancy occurs in the office of council member in any city of the second class, at the first regular meeting after the occurrence of the vacancy, the city council shall proceed to elect, by a majority vote of the council, a council member to serve for the unexpired term.
  2. The election to fill the vacancy under subsection (a) of this section is not subject to veto by the mayor.

History. Acts 1927, No. 124, § 1; Pope's Dig., §§ 9802, 9942; A.S.A. 1947, § 19-1111; Acts 2013, No. 1325, § 1; 2017, No. 879, § 26.

Amendments. The 2013 amendment substituted “occurs” for “shall occur” in (a); and added (b).

The 2017 amendment substituted “council member's” for “alderman's” in the section heading; substituted “council member” for “alderman” twice in (a); and substituted “If” for “Whenever” in (a).

Case Notes

Authority of Circuit Court.

Where the circuit court acted outside of its statutory authority in directing that a special election be held and because of the public policy considerations inherent in the election of public officials, the order of the circuit court was reversed and remanded for an order declaring a vacancy in the alderman's position and for additional proceedings as may be required. Phillips v. Earngey, 321 Ark. 476, 902 S.W.2d 782 (1995).

Election.

Where aldermen received a majority vote when selected, the fact that there was no formal motion and second did not render their election illegal, as a motion and a second are not required for a valid city council vote. O'Brien v. City of Greers Ferry, 293 Ark. 19, 732 S.W.2d 146 (1987).

14-44-105. Election of mayor.

The qualified voters of cities of the second class shall elect a mayor for a term of four (4) years on the Tuesday following the first Monday in November 1966 and every four (4) years thereafter.

History. Acts 1965, No. 554, § 1; A.S.A. 1947, § 19-1101.4.

14-44-106. Vacancy in mayor's office.

If a vacancy occurs in the office of mayor in any city of the second class, at the first regular meeting after the occurrence of the vacancy, the city council shall proceed to either elect by a majority vote of the council members a mayor to serve the unexpired term or call for a special election to be held in accordance with § 7-11-101 et seq. to fill the vacancy. At this election, a mayor shall be elected to serve the unexpired term.

History. Acts 1959, No. 54, § 1; 1967, No. 427, § 1; A.S.A. 1947, § 19-1110; Acts 1997, No. 645, § 4; 2005, No. 2145, § 30; 2007, No. 1049, § 49; 2009, No. 1480, § 67; 2017, No. 879, § 27.

Amendments. The 2009 amendment substituted “§ 7-11-101 et seq.” for “§ 7-5-103(a).”

The 2017 amendment, in the first sentence, substituted “If” for “Whenever” and substituted “council members” for “aldermen”; and substituted “serve” for “fill out” in the last sentence.

Case Notes

Election or Appointment.

The election or appointment of a mayor to fill a vacancy must be proved by the record itself in the absence of proof that such record has been lost or destroyed. Hill v. Rector, 161 Ark. 574, 256 S.W. 848 (1923).

Special Elections.

If the provisions of the general election laws as to the certification of nomination, printing of ballots, and forbidding the printing thereon of the name of any candidate not certified and filed in the time prescribed apply to special elections for mayor, these irregularities will not avoid such an election at the instance of one who holds the office of mayor without authority and was not a candidate at the special election. Hogins v. Bullock, 92 Ark. 67, 121 S.W. 1064 (1909) (decision under prior law).

14-44-107. Powers of mayor generally.

  1. The mayor in cities of the second class shall be ex officio president of the city council, shall preside at its meetings, and shall have a vote to establish a quorum of the council, or when the mayor's vote is needed to pass any ordinance, bylaw, resolution, order, or motion.
    1. The mayor in these cities shall have the power to veto, within five (5) days, Sundays excepted, after the action of the council thereon, any ordinance, resolution, or order adopted or made by the council, or any part thereof, which in his or her judgment is contrary to the public interest.
      1. In case of a veto, before the next regular meeting of the council, the mayor shall file in the office of the city recorder, to be laid before the meeting, a written statement of his or her reasons for so doing.
      2. An ordinance, resolution, or order, or part thereof, vetoed by the mayor shall not have any force or validity unless, after the written statement is laid before it, the council passes it over the veto by a vote of two-thirds (2/3) of all the council members elected thereto.
  2. If the mayor is unable to perform the duties of office or cannot be located, one (1) of the following may perform all functions of a mayor during the disability or absence of the mayor:
    1. The recorder;
    2. Another elected official of the city if designated by the mayor; or
    3. An unelected employee or resident of the city if designated by the mayor and approved by the city council.

History. Acts 1887, No. 10, § 1, p. 11; C. & M. Dig., § 7679; Pope's Dig., § 9801; Acts 1981, No. 346, § 1; A.S.A. 1947, § 19-1101; Acts 1997, No. 1122, § 1; 2013, No. 753, § 2; 2017, No. 879, § 28.

Amendments. The 2013 amendment added (c).

The 2017 amendment, in (b)(2)(B), substituted “An” for “No”, inserted “not”, substituted “passes” for “shall pass”, and substituted “council members” for “aldermen”.

Cross References. Removal of elective or appointive officers, § 14-42-109.

Case Notes

Voting.

The mayor of a second class city is a member of the council of a second class city and thereby entitled to vote on the municipal council's ordinances. Clark v. Mahan, 268 Ark. 37, 594 S.W.2d 7 (1980).

Cited: Thomas v. Sitton, 213 Ark. 816, 212 S.W.2d 710 (1948); Sitton v. Burnett, 216 Ark. 574, 226 S.W.2d 544 (1950); Gore v. Emerson, 262 Ark. 463, 557 S.W.2d 880 (1977).

14-44-108. Mayor of city of the second class.

The mayor of a city of the second class shall perform all duties required by the ordinances of the city and shall give bond and security in any amount to be determined and approved by the city council.

History. Acts 1875, No. 1, § 48, p. 1; 1881, No. 16, § 1, p. 29; 1883, No. 63, § 2, p. 97; C. & M. Dig., § 7681; Pope's Dig., § 9809; Acts 1941, No. 284, § 2; A.S.A. 1947, § 19-1102; Acts 1995, No. 298, § 1; 2003, No. 1185, § 26; 2007, No. 663, § 18.

Cross References. No jury trial in city court, § 16-96-112.

Self-Insured Fidelity Bond Program, § 21-2-701 et seq.

Research References

Ark. L. Rev.

Arkansas' Judiciary: Its History and Structure, 18 Ark. L. Rev. 152.

Case Notes

Constitutionality.

A defendant appearing in the city court on charges of violating a city ordinance was deprived of due process of law when the mayor, who was sitting as judge of the court, also presided over meetings of the city council where decisions were made concerning the expenditures of revenue from fines, forfeitures, and penalties. Gore v. Emerson, 262 Ark. 463, 557 S.W.2d 880 (1977).

In General.

Provision in § 14-45-106 exempting five counties from provisions of § 14-45-106 governing mayor's court in incorporated towns does not apply to this section, governing mayor's court in second class cities; hence this section is not invalid on the ground of local legislation. Mountain Home v. Ray, 223 Ark. 553, 267 S.W.2d 503 (1954).

Fines and Penalties.

A city is entitled to retain all the fines and penalties imposed by the mayor's court for violation of its ordinances, notwithstanding that the ordinances make the same acts offenses as are made offenses against the state by statute, and the county is entitled only to such fines and penalties as are imposed by the mayors of these courts, acting in their capacity of justices of the peace for violation of the state laws within their jurisdiction. Incorporated Town of Pocahontas v. State ex. rel. Randolph County, 114 Ark. 448, 170 S.W. 89 (1914).

Jurisdiction.

The jurisdiction of the mayor's court, like that of the justice of the peace, is subject to a motion to transfer to municipal court when a state offense is involved. Russell v. Miller, 253 Ark. 583, 487 S.W.2d 617 (1972); City Court v. Tiner, 292 Ark. 253, 729 S.W.2d 399 (1987).

Divestment of jurisdiction from the city court is not contrary to Ark. Const., Art. 7, § 43, which gives the General Assembly authority to set jurisdiction of corporation courts. City Court v. Tiner, 292 Ark. 253, 729 S.W.2d 399 (1987).

Writ of prohibition held proper where trial court was entirely without jurisdiction. City Court v. Tiner, 292 Ark. 253, 729 S.W.2d 399 (1987).

Substitutes.

Should a mayor become disqualified, the city recorder may act in his place. Incorporated Town of Pocahontas v. State ex. rel. Randolph County, 114 Ark. 448, 170 S.W. 89 (1914).

14-44-109. City marshal, recorder, and treasurer generally.

      1. At the time prescribed in this subtitle, the qualified voters of each city of the second class shall elect a city marshal, a city recorder, and a city treasurer.
      2. Each city marshal, city recorder, or city treasurer shall continue in office until his or her successor is elected and qualified.
      1. The city council may provide by ordinance for the appointment of the city treasurer.
      2. An ordinance under subdivision (a)(2)(A) of this section shall be passed before the filing period begins for an election for the office of city treasurer, but no later than the February preceding the beginning of the early filing period.
  1. These officers shall have such powers and perform such duties as are prescribed in this subtitle, or as may be prescribed by any ordinance of the city, consistent with the provisions of this subtitle.

History. Acts 1875, No. 1, § 49, p. 1; 1881, No. 16, § 2, p. 29; C. & M. Dig., § 7682; Pope's Dig., § 9810; A.S.A. 1947, § 19-1103; Acts 2019, No. 234, § 1.

Amendments. The 2019 amendment, in (a), inserted the (a)(1)(A) and (a)(1)(B) designations; substituted “city marshal, city recorder, or city treasurer” for “of these officers” in (a)(1)(B); added (a)(2); and made stylistic changes.

Case Notes

City Marshals.

—Appointment or Election.

This section provides that a city marshal shall be elected; therefore a person appointed by a city council is only a de facto officer and has no right to salary. Thomas v. Sitton, 213 Ark. 816, 212 S.W.2d 710 (1948) (decision prior to § 14-44-111).

While this section requires a city to have an elected city marshal, the fact that the city attempted to change the office to an appointive one by an ordinance that failed for lack of publication required by § 14-55-206 was of no consequence, and the city marshal who was subsequently elected in a general election was duly elected and would be entitled to hold office for his elective period. Clark v. Mahan, 268 Ark. 37, 594 S.W.2d 7 (1980).

—Authority.

Prior to the effective date of § 14-44-111, a city council was without power to pass an ordinance abolishing the elective office of marshal and transferring his powers to a chief of police. City of Augusta v. Angelo, 225 Ark. 884, 286 S.W.2d 321 (1956).

—Compensation.

Where city marshal held over and continued to perform the duties of his office after expiration of his term, he was entitled to the same compensation he received during the regular term, and an attempt by the city to reduce such compensation was ineffective. City of Berryville v. Binam, 222 Ark. 962, 264 S.W.2d 421 (1954).

Where city marshal holds over and continues to perform the duties of his office after expiration of his term, he is entitled to compensation up to the time he ceases to discharge his duties, and the period of holding over in such cases is as much a part of the officer's term of office as the regular period fixed by law. City of Berryville v. Binam, 222 Ark. 962, 264 S.W.2d 421 (1954).

Marshal of city of second class is an officer and therefore his salary was governed by the provisions of Acts 1875, No. 1, § 86 (6th to 8th sentences) (superseded by § 14-42-113). Horton v. City of Marshall, 227 Ark. 141, 296 S.W.2d 418 (1956).

—Duties.

This section contemplates that other duties may be performed by a city marshal and authorizes the establishing of other officers for law enforcement, for whose duties the city is authorized to pay. Conner v. Burnett, 216 Ark. 559, 226 S.W.2d 984 (1950).

Cited: City of Greenbrier v. Cotton, 293 Ark. 264, 737 S.W.2d 444 (1987).

14-44-110. Residency of appointed marshals.

Cities of the second class shall have the authority to require their appointed marshals to reside within their corporate limits, and they shall have the authority to permit their appointed marshals to reside outside their corporate limits.

History. Acts 1979, No. 10, § 1; A.S.A. 1947, § 19-1103.4.

Case Notes

Constitutionality.

A city marshal is an officer within the meaning of Ark. Const., Art. 19, § 3, and therefore must be a resident of the city. Thomas v. Sitton, 213 Ark. 816, 212 S.W.2d 710 (1948) (decision under prior law).

14-44-111. Election or appointment of marshal.

The city marshal of cities of the second class shall be elected by the voters as provided by law. However, the city council of any such city, if the council deems it to be in the best interests of the city, and upon passage of an ordinance by the majority of the council, may provide that the marshal shall be appointed or removed by the mayor unless the council shall vote by a two-thirds majority of the total membership of the council to override the mayor's action.

History. Acts 1953, No. 172, § 1; 1983, No. 79, § 1; A.S.A. 1947, § 19-1103.2.

Cross References. Removal of city marshal by mayor, § 14-42-110.

Case Notes

In General.

Prior to the effective date of this section, a city council was without power to pass an ordinance abolishing the elective office of marshal and transferring his powers to a chief of police. City of Augusta v. Angelo, 225 Ark. 884, 286 S.W.2d 321 (1956).

Appointments.

Where a city ordinance making the marshal's office appointive rather than elective was adopted by the affirmative votes of the mayor and of two of the four councilmen, the ordinance was validly enacted, since the mayor of a second class city is a member of the council and thereby entitled to vote. Clark v. Mahan, 268 Ark. 37, 594 S.W.2d 7 (1980).

Elections.

While § 14-44-109 requires a city to have an elected city marshal, the fact that the city attempted to change the office to an appointive one by an ordinance that failed for lack of publication required by § 14-55-206 was of no consequence, and the city marshal who was subsequently elected in a general election was duly elected and would be entitled to hold office for his elective period. Clark v. Mahan, 268 Ark. 37, 594 S.W.2d 7 (1980).

Removals.

A mayor did not have statutory authority to remove city marshal without the approval of city council, nor did the mayor have inherent power to do so, since he was in no way responsible for the performance of the marshal's duties. Kennedy v. Garner, 230 Ark. 698, 326 S.W.2d 810 (1959) (decision prior to 1983 amendment).

Where city marshal continued to serve after passage of this section and to draw his salary until his services were found to be unsatisfactory, he recognized the power of the city to remove him at any time, and if he had wanted the protection of Acts 1875, No. 1, § 86 (6th to 8th sentences) (superseded by § 14-42-113) and to remain on the basis of fees due a constable, he should have made the claim before an ordinance was enacted under this section. Jeffery v. City of Mt. View, 235 Ark. 657, 361 S.W.2d 540 (1962).

Where city marshal took the monthly payment under ordinance enacted under this section, he precluded himself from challenging the validity of the ordinance regulating his salary and tenure of office. Jeffery v. City of Mt. View, 235 Ark. 657, 361 S.W.2d 540 (1962).

City marshal is employee at will and his discharge is not wrongful; ultimate rehire is not a statutory override. Even if written city personnel policy provided for discharge only with cause or even if the city council meeting minutes clearly reflected that city council voted for a policy of no discharge until after three reprimands, city marshal would not prevail, since state law provides that a city marshal may be discharged by the mayor, subject only to an override by a two-thirds vote of the city council. Robbins v. City of Dover, 294 Ark. 432, 743 S.W.2d 807 (1988).

Cited: City of Greenbrier v. Cotton, 293 Ark. 264, 737 S.W.2d 444 (1987).

14-44-112. Vacancy in marshal's office.

If a vacancy occurs in the office of marshal in any city of the second class, at the first regular meeting after the occurrence of the vacancy, the city council shall proceed to elect by a majority vote of all the council members a marshal to serve for the unexpired term.

History. Acts 1921, No. 450, § 1; Pope's Dig., § 9811; A.S.A. 1947, § 19-1112; Acts 2017, No. 879, § 29.

Amendments. The 2017 amendment substituted “If a vacancy occurs” for “Whenever a vacancy shall occur”, and substituted “council members” for “aldermen”.

Case Notes

Holding Over.

Where city marshal held over and continued to perform the duties of his office after expiration of his term, he was entitled to the same compensation he received during the regular term, and an attempt by the city to reduce such compensation was ineffective. City of Berryville v. Binam, 222 Ark. 962, 264 S.W.2d 421 (1954).

Where city marshal holds over and continues to perform the duties of his office after expiration of his term, he is entitled to compensation up to the time he ceases to discharge his duties, and the period of holding over in such cases is as much a part of the officer's term of office as the regular period fixed by law. City of Berryville v. Binam, 222 Ark. 962, 264 S.W.2d 421 (1954).

Voting.

A motion and a second are not required for a valid city council vote. O'Brien v. City of Greers Ferry, 293 Ark. 19, 732 S.W.2d 146 (1987).

Cited: Thomas v. Sitton, 213 Ark. 816, 212 S.W.2d 710 (1948).

14-44-113. Powers and duties of marshals.

  1. The marshal of cities of the second class shall execute and return all writs and process directed to him or her by the mayor. In criminal cases or cases of a violation of the city ordinance, he or she may serve them in any part of the county.
  2. It shall be the marshal's duty to:
    1. Suppress all riots and disturbances and breaches of the peace;
    2. Apprehend all disorderly persons in the city;
    3. Pursue and arrest any person fleeing from justice in any part of the state; and
    4. Apprehend any person in the act of committing any offense against the laws of the state or ordinances of the city and forthwith to bring such persons before the mayor, or other competent authority, for examination or trial.
  3. The marshal shall have power to appoint one (1) or more deputies, for whose official acts he or she shall be responsible.
  4. In the discharge of his or her proper duties, the marshal shall have like powers, be subject to like responsibilities, and receive the like fees as sheriffs and constables in similar cases.

History. Acts 1875, No. 1, § 50, p. 1; C. & M. Dig., § 7683; Pope's Dig., § 9812; A.S.A. 1947, § 19-1104.

Case Notes

Compensation.

Statutory provision that city marshal shall receive like fees as sheriffs and constables in similar cases does not prevent a second-class city from paying the marshal a salary. Conner v. Burnett, 216 Ark. 559, 226 S.W.2d 984 (1950).

City council was not required to pay duly elected city marshal any certain or stated salary, or any salary at all, in addition to the fees provided by this section, and the city's authority to fix his salary was unrestricted, except that it could not change his salary during any certain term once it had been fixed. City of Augusta v. Angelo, 225 Ark. 884, 286 S.W.2d 321 (1956) (decision prior to § 14-42-113).

Deputies.

In an action against a city by deputy marshal for salary fixed by ordinance, the burden is on the plaintiff to prove the existence of the ordinance obligating the city to pay him the salary claimed. City of El Dorado v. Faulkner, 107 Ark. 455, 155 S.W. 516 (1913).

Where deputy marshals, who had been appointed for one year, were dismissed by mayor who exceeded his authority, they were not entitled to receive their salaries where they did no work after dismissal, even though there was a city ordinance fixing their salaries, but were only entitled to the fees set out in this section for deputy marshals. City of Jacksonville v. Williams, 238 Ark. 519, 383 S.W.2d 103 (1964).

Although a marshal may appoint deputies pursuant to this section, it is the exclusive responsibility of the city council to determine whether any salary shall be paid. City of Greenbrier v. Cotton, 293 Ark. 264, 737 S.W.2d 444 (1987).

Powers.

Prior to the effective date of § 14-44-111, a city council was without power to pass ordinance abolishing the elective office of marshal and transferring his powers to the chief of police. City of Augusta v. Angelo, 225 Ark. 884, 286 S.W.2d 321 (1956).

14-44-114. Recorder-treasurer offices combined.

    1. The city council of any city of the second class, if the city council deems it to be in the best interests of the city, and upon passage of an ordinance by a majority vote of the city council, may combine the offices of city recorder and city treasurer, authorizing one (1) person to hold this position.
    2. The city council may combine the offices of city recorder and city treasurer to take effect at the next election under § 14-44-109 or when the offices are vacant.
  1. When combined, the office shall be known as “city recorder-treasurer”.
  2. When one (1) person assumes the duties of both recorder and treasurer, the position shall not be separated during the elected city recorder-treasurer's term unless the position is vacant.

History. Acts 1949, No. 42, § 1; A.S.A. 1947, § 19-1103.1; Acts 2019, No. 336, § 3.

Amendments. The 2019 amendment added the (a)(1) designation; in (a)(1), deleted “in the State of Arkansas” following “second class”, inserted “city” preceding the second and third occurrences of “council”, and deleted “thereby” preceding “authorizing”; added (a)(2); substituted “‘city recorder-treasurer’” for “‘recorder-treasurer for the city’” in (b); and added (c).

14-44-115. Election of recorder, treasurer, or recorder-treasurer.

  1. On the Tuesday following the first Monday in November, 1972, and every four (4) years thereafter, the qualified voters of cities of the second class shall elect a recorder, a treasurer, or a recorder-treasurer, as the case may be, for a term of four (4) years.
    1. The city council may provide by ordinance for the appointment of the city treasurer.
    2. An ordinance under subdivision (b)(1) of this section shall be passed before the filing period begins for an election for the office of city treasurer, but no later than the February preceding the beginning of the early filing period.

History. Acts 1969, No. 272, § 1; A.S.A. 1947, § 19-1103.3; Acts 2001, No. 364, § 3; 2019, No. 234, § 2.

A.C.R.C. Notes. The language “on the first Tuesday following the first Monday in November, 1972” in this section originally applied to the recorder or recorder-treasurer positions and its application to the treasurer position concerns the 2004 date when that position will next be elected.

Amendments. The 2019 amendment designated the existing text as (a); and added (b).

14-44-116. Vacancy in office of recorder, treasurer, or recorder-treasurer.

If a vacancy occurs in the office of recorder, treasurer, or recorder-treasurer in any city of the second class, at the first regular meeting after the occurrence of the vacancy, the city council shall elect by a majority vote of all the council members a person to serve for the unexpired term.

History. Acts 1921, No. 450, § 1; Pope's Dig., § 9811; A.S.A. 1947, § 19-1112; Acts 2007, No. 62, § 1; 2017, No. 879, § 30.

Amendments. The 2017 amendment substituted “If a vacancy” for “Whenever a vacancy”, and substituted “council members” for “aldermen”.

Case Notes

Election.

Where recorder received a majority vote when selected, the fact that there was no formal motion and second did not render his election illegal, as a motion and a second are not required for a valid city council vote. O'Brien v. City of Greers Ferry, 293 Ark. 19, 732 S.W.2d 146 (1987).

Cited: Thomas v. Sitton, 213 Ark. 816, 212 S.W.2d 710 (1948).

14-44-117. [Repealed.]

Publisher's Notes. This section, concerning city collectors, was repealed by Acts 2019, No. 221, § 1, effective July 24, 2019. The section was derived from Acts 1929, No. 251, §§ 1-5; Pope's Dig., §§ 9804-9808; A.S.A. 1947, §§ 19-1105 — 19-1109.

Chapter 45 Government of Incorporated Towns

Cross References. Firemen's relief and pension fund board, ex officio officers, § 24-11-801.

Effective Dates. Acts 1875, No. 1, § 95: effective on passage.

Acts 1883, No. 106, § 3: effective on passage.

Acts 1989, No. 386, § 4: Mar. 7, 1989. Emergency clause provided: “It is hereby found and determined by the General Assembly that there exists no provision in the law which provides for the filling of vacancies in elective offices of incorporated towns; that the failure to have such a provision has resulted in undue hardship on many of the citizens of this state; therefore, an emergency is hereby declared to exist and this act being necessary for the protection of the public peace, health and safety shall take effect immediately on its passage and approval.”

Acts 2007, No. 663, § 56: Jan. 1, 2012.

Research References

C.J.S. 87 C.J.S., Towns, §§ 34-89.

14-45-101. Corporate authority.

  1. The corporate authority of incorporated towns shall vest in a town council composed of the five (5) council members who shall be qualified electors residing within the limits of the incorporated town and who shall hold office until their successors are elected and qualified.
  2. A majority of the whole number of council members shall constitute a quorum for the transaction of business.

History. Acts 1875, No. 1, § 41, p. 1; C. & M. Dig., § 7671; Acts 1937, No. 259, § 2; Pope's Dig., § 9793; Acts 1965, No. 483, § 1; 1981, No. 343, § 1; A.S.A. 1947, § 19-1201; Acts 2017, No. 879, § 31.

Amendments. The 2017 amendment substituted “council members” for “aldermen” in (a) and (b); and substituted “incorporated town” for “corporation” in (a).

Case Notes

Cited: Lee v. Watts, 243 Ark. 957, 423 S.W.2d 557 (1968).

14-45-102. Election of council members.

    1. Except as provided in subdivision (a)(2) of this section, on the Tuesday following the first Monday in November 1982 and every two (2) years thereafter, the qualified voters of incorporated towns shall elect five (5) council members.
      1. The town council of an incorporated town may refer to the voters an ordinance on the question of electing the five (5) council members to four-year terms.
        1. The voters shall vote on the ordinance at a general election or at a special election called for that purpose.
        2. The election to approve the four-year election procedure shall be held no later than February 1 of the year of the general election in which the procedure is proposed to be effective.
      2. If this procedure is adopted by an ordinance referred to and approved by the voters of the incorporated town, the initial terms for council members representing positions numbered “one”, “three”, and “five” shall be four-year terms at the next general election and the initial terms for council members representing positions numbered “two” and “four” shall be two-year terms and thereafter four-year terms, resulting in staggered terms.
        1. The town council may refer to voters an ordinance on the question of returning the incorporated town to electing council members to two-year terms using the procedures of subdivision (a)(2) of this section.
        2. If the voters approve returning an incorporated town to two-year terms, all council members shall be elected to two-year terms at the next general election and thereafter.
      3. The town council may not refer to voters another question on electing council members to four-year terms or on returning the incorporated town to electing council members to two-year terms unless at least four (4) years have passed since the last election on changing the terms of council members.
    1. A candidate for the office of council member shall designate the number of the office for council member that the candidate is seeking on the petition filed pursuant to § 14-42-206.
    2. If there is a designation under subdivision (b)(1) of this section, the candidate shall not change the designation on that petition.
    3. The county clerk shall not accept a petition for filing that does not designate the number of the office for council member sought.
    4. Each incorporated town shall maintain in its records a document showing the name of each council member and the number of the office that the candidate holds.

History. Acts 1875, No. 1, § 41, p. 1; C. & M. Dig., § 7671; Acts 1937, No. 259, § 2; Pope's Dig., § 9793; Acts 1965, No. 483, § 1; 1981, No. 343, § 1; A.S.A. 1947, § 19-1201; Acts 2005, No. 46, § 1; 2013, No. 503, § 3; 2017, No. 879, § 32.

Publisher's Notes. Acts 1965, No. 483, § 2, provided that the purpose of this act is to provide that the time for election of the officials of incorporated towns shall be at the regular general election for the election of state and county officials and to abolish the odd year election for the election of officials of incorporated towns.

Amendments. The 2013 amendment rewrote (b).

The 2017 amendment substituted “council members” for “aldermen” in the section heading and made similar changes throughout the section; inserted “incorporated” in (a)(2)(C), (a)(2)(D)(i), (a)(2)(E), and (b)(4); and substituted “an incorporated town” for “a town” in (a)(2)(D)(ii).

Case Notes

Cited: Lee v. Watts, 243 Ark. 957, 423 S.W.2d 557 (1968).

14-45-103. Vacancies.

  1. When a vacancy occurs in the office of council member in an incorporated town, at the first regular meeting after the occurrence of the vacancy, the town council shall elect by a majority vote of the town council a council member to serve for the unexpired term.
  2. When a vacancy occurs in the office of recorder-treasurer in an incorporated town, at the first regular meeting after the occurrence of the vacancy, the town council shall elect by a majority vote of the town council a recorder-treasurer to serve for the unexpired term.
  3. When a vacancy occurs in the office of mayor in an incorporated town, at the first regular meeting after the occurrence of the vacancy, the town council shall:
    1. Elect by a majority vote of the council members a mayor to serve the unexpired term; or
      1. Call for a special election to be held under § 7-11-101 et seq. to fill the vacancy.
      2. At the special election, a mayor shall be elected to complete the unexpired term.

History. Acts 1875, No. 1, § 43, p. 1; C. & M. Dig., § 7674; Acts 1937, No. 259, § 3; Pope's Dig., § 9796; A.S.A. 1947, § 19-1206; Acts 1989, No. 386, § 1; 2013, No. 978, § 1; 2017, No. 171, § 1; 2017, No. 879, § 33.

Amendments. The 2013 amendment rewrote the section.

The 2017 amendment by No. 171 added (b); redesignated former (b) as (c); and substituted “under” for “in accordance with” in (c)(2)(A).

The 2017 amendment by No. 879 substituted “council member” for “alderman” in (a) twice; and substituted “council members” for “aldermen” in (b)(1).

Case Notes

Cited: Langston v. Johnson, 255 Ark. 933, 504 S.W.2d 349 (1974).

14-45-104. Election of mayor.

The qualified electors in incorporated towns shall elect a mayor for a term of four (4) years on the Tuesday following the first Monday in November 1966 and every four (4) years thereafter.

History. Acts 1965, No. 554, § 1; A.S.A. 1947, § 19-1201.1.

Case Notes

Cited: Langston v. Johnson, 255 Ark. 933, 504 S.W.2d 349 (1974).

14-45-105. Powers of mayor generally.

  1. The mayor in incorporated towns shall be ex officio president of the town council, shall preside at its meetings, and shall have a vote when the mayor's vote is needed to pass any ordinance, bylaw, resolution, order, or motion.
    1. The mayor in these towns shall have the power to veto, within five (5) days, Sundays excepted, after the action of the council thereon, any ordinance, resolution, or order adopted or made by the council, or any part thereof, which in his or her judgment is contrary to the public interest.
      1. In case of a veto, before the next regular meeting of the council the mayor shall file a written statement of his or her reasons for the veto in the office of the town recorder-treasurer to be laid before the meeting.
      2. An ordinance, resolution, or order, or part thereof, vetoed by the mayor shall not have any force or validity unless, after the written statement is laid before it, the council passes it over the veto by a vote of two-thirds (2/3) of all the council members elected thereto.
  2. If the mayor is unable to perform the duties of office or cannot be located, one (1) of the following may perform all functions of a mayor during the disability or absence of the mayor:
    1. The recorder;
    2. Another elected official of the city if designated by the mayor; or
    3. An unelected employee or resident of the city if designated by the mayor and approved by the city council.

History. Acts 1875, No. 1, § 41, p. 1; C. & M. Dig., § 7671; Pope's Dig., § 9793; Acts 1981, No. 343, § 1; A.S.A. 1947, § 19-1201; Acts 2013, No. 753, § 3; 2017, No. 879, § 34.

Amendments. The 2013 amendment added (c).

The 2017 amendment, in (b)(2)(B), substituted “An” for “No”, inserted “not”, substituted “passes” for “shall pass”, and substituted “council members” for “aldermen”.

Case Notes

Cited: Lee v. Watts, 243 Ark. 957, 423 S.W.2d 557 (1968).

14-45-106. Mayor of an incorporated town.

  1. The mayor of an incorporated town shall perform all duties required by the ordinances of the city and shall give bond and security in any amount to be ascertained and approved by the city council.
  2. In addition for his or her services as mayor, the council, by ordinance, may make proper allowance for, and payment of, compensation.

History. Acts 1875, No. 1, § 45, p. 1; C. & M. Dig., § 7676; Acts 1921, No. 368, § 1; Pope's Dig., § 9798; Acts 1941, No. 284, § 1; A.S.A. 1947, § 19-1204; Acts 1995, No. 298, § 2; 2003, No. 114, § 1; 2003, No. 1185, § 27; 2007, No. 663, § 19.

Cross References. No jury trial in city court, § 16-96-112.

Self-Insured Fidelity Bond Program, § 21-2-701 et seq.

Research References

Ark. L. Rev.

Arkansas' Judiciary: Its History and Structure, 18 Ark. L. Rev. 152.

Case Notes

Applicability.

Provision exempting five counties from provisions of this section governing mayor's court in incorporated towns does not apply to § 14-44-108 governing mayor's court in second-class cities. Mountain Home v. Ray, 223 Ark. 553, 267 S.W.2d 503 (1954).

Counsel.

An indigent misdemeanor defendant in a mayor's court was not deprived of his constitutional rights by failure to assign counsel to him where, upon appeal to the circuit court, the cause was tried de novo and he was represented by counsel. Cableton v. State, 243 Ark. 351, 420 S.W.2d 534 (1967).

Fines and Penalties.

A town is entitled to retain all the fines and penalties imposed by the mayor's court for violation of its ordinances, notwithstanding the ordinances make the same acts offenses as are made offenses against the state by statute and the county is entitled only to such fines and penalties as are imposed by the mayors of these courts, acting in their capacity of justices of the peace for violation of the state laws within their jurisdiction. Incorporated Town of Pocahontas v. State ex. rel. Randolph County, 114 Ark. 448, 170 S.W. 89 (1914).

Jurisdiction.

The mayor of an incorporated town has no authority to fine for contempt the editor of a newspaper whose editorial page criticized the mayor's policies. Ex parte Patterson, 110 Ark. 94, 161 S.W. 173 (1913).

Affidavit setting forth charge of resisting an officer was held sufficient to give the mayor jurisdiction of the offense. Robinson v. City of Malvern, 118 Ark. 423, 176 S.W. 675 (1915).

Claims for damages from torts in excess of $100 arising out of the same transaction and constituting but one course of action were held not within the jurisdiction of the mayor's court or the circuit court on appeal therefrom. Hively v. Jones, 178 Ark. 1127, 13 S.W.2d 612 (1929).

Pleadings.

Trial before mayor was not required to be styled in name of state when no ordinance covered subject matter. Harris v. City of Harrison, 211 Ark. 889, 204 S.W.2d 167 (1947).

Sitting as Court.

A mayor's court can sit only inside the municipal limits, though it has powers of process throughout the county. Lee v. Watts, 243 Ark. 957, 423 S.W.2d 557 (1968).

A justice of the peace sitting as justice of the mayor's court of a town must do so within the corporate limits of that town. Lee v. Watts, 243 Ark. 957, 423 S.W.2d 557 (1968).

Cited: Cableton v. State, 243 Ark. 351, 420 S.W.2d 534 (1967); Gore v. Emerson, 262 Ark. 463, 557 S.W.2d 880 (1977).

14-45-107. Presiding officer of council — Clerk.

  1. The mayor or, in case of his or her absence, the recorder-treasurer, shall preside at all meetings of the town council. The recorder-treasurer shall also be and act as clerk of the town. He or she shall attend all meetings of the council and make a fair, accurate, and correct record of all the proceedings, laws, rules, and ordinances made and passed by the council. The records shall be open at all times for the inspection of the electors of the town.
  2. In the absence of the mayor and recorder-treasurer from any meeting of the council, the council shall have power to appoint any two (2) of their number to perform the duties of mayor and recorder-treasurer for the time being.

History. Acts 1875, No. 1, §§ 42, 43, p. 1; C. & M. Dig., §§ 7672, 7674; Acts 1937, No. 259, § 3; Pope's Dig., §§ 9794, 9796; A.S.A. 1947, §§ 19-1203, 19-1206.

Case Notes

Cited: Blake v. Trout, 127 Ark. 299, 192 S.W. 179 (1917); Langston v. Johnson, 255 Ark. 933, 504 S.W.2d 349 (1974).

14-45-108. Election of recorder-treasurer.

  1. The qualified voters of incorporated towns shall elect one (1) recorder-treasurer on the Tuesday following the first Monday in November 1982 and every four (4) years thereafter.
      1. The town council may provide by ordinance for the appointment of the town recorder-treasurer.
      2. An ordinance under subdivision (b)(1)(A) of this section shall be passed before the filing period begins for an election for the office of town recorder-treasurer, but no later than the February preceding the beginning of the early filing period.
    1. A town recorder-treasurer appointed under subdivision (b)(1)(A) of this section shall not administer the oath of office under § 14-42-106 or § 21-2-105.

History. Acts 1875, No. 1, § 41, p. 1; C. & M. Dig., § 7671; Acts 1937, No. 259, § 2; Pope's Dig., § 9793; Acts 1965, No. 483, § 1; 1981, No. 343, § 1; A.S.A. 1947, § 19-1201; Acts 2005, No. 1008, § 1; 2019, No. 234, § 3.

Publisher's Notes. Acts 1965, No. 483, § 2, provided that the purpose of this act is to provide that the time for election of the officials of incorporated towns shall be at the regular general election for the election of state and county officials and to abolish the odd year election for the election of officials of incorporated towns.

Amendments. The 2019 amendment designated the existing text as (a); and added (b).

Case Notes

Cited: Lee v. Watts, 243 Ark. 957, 423 S.W.2d 557 (1968).

14-45-109. Appointment of marshal and other officers.

  1. The council of any incorporated town shall have power to provide, by ordinance, for the election of a town marshal and such other subordinate officers as they may think necessary for the good government of the town.
  2. In regard to the officers mentioned in subsection (a) of this section, the council shall have the power to:
    1. Prescribe their duties and compensation or the fees they shall be entitled to receive for their services; and
    2. Require of them an oath of office and bond with surety for the faithful discharge of their duty.
  3. The period for the election of any officer shall be fixed at the time of the regular biennial election. No appointment of any officer shall endure beyond the period of the term of office of the council making the appointment and one (1) week after the qualification of the members of the succeeding council.

History. Acts 1875, No. 1, § 44, p. 1; C. & M. Dig., § 7675; Acts 1937, No. 259, § 4; Pope's Dig., § 9797; A.S.A. 1947, § 19-1202.

Cross References. Removal of town marshal by mayor, § 14-42-110.

Self-Insured Fidelity Bond Programs, § 21-2-701 et seq.

Case Notes

Cited: Langston v. Johnson, 255 Ark. 933, 504 S.W.2d 349 (1974); Clark v. Mahan, 268 Ark. 37, 594 S.W.2d 7 (1980).

14-45-110. Residency of marshals.

Incorporated towns shall have the authority to require their appointed marshals to reside within their corporate limits, and they shall have the authority to permit their appointed marshals to reside outside their corporate limits.

History. Acts 1979, No. 10, § 1; A.S.A. 1947, § 19-1103.4.

14-45-111. Powers and duties of marshals.

  1. The town marshal of incorporated towns shall be the principal ministerial officer of the town. He or she shall have the same power that sheriffs have by law, and his or her jurisdiction shall be coextensive with the county for offenses committed within the limits of the town.
  2. The town marshal shall execute the process of the mayor and collect the same fees for his or her services that sheriffs are allowed in similar cases.
  3. It shall be the duty of the town marshal to:
    1. Suppress all riots and disturbances and breaches of the peace;
    2. Apprehend all disorderly persons in the town;
    3. Pursue and arrest any person fleeing from justice in any part of the state; and
    4. Apprehend any person in the act of committing any offense against the laws of the state or ordinances of the town and immediately bring the person before the mayor, or other competent authority, for examination or trial.
  4. The town marshal shall have power to appoint one (1) or more deputies, for whose official acts he or she shall be responsible.
  5. All persons or parties arrested by any officer of the state for violation of any town ordinance shall be turned over to the town marshal and shall be by him or her taken before the proper authorities for investigation.

History. Acts 1875, No. 1, § 46, p. 1; 1883, No. 106, § 2, p. 189; C. & M. Dig., § 7677; Pope's Dig., § 9799; A.S.A. 1947, § 19-1205.

Case Notes

In General.

A town marshal is a public officer and has broad and numerous duties and responsibilities. Thomas v. Sitton, 213 Ark. 816, 212 S.W.2d 710 (1948).

Chapter 46 Commission Form of Municipal Government

Subchapter 1 — General Provisions

14-46-101, 14-46-102. [Repealed.]

Publisher's Notes. This subchapter was repealed by Acts 1991, No. 49, § 3. The subchapter was derived from the following sources:

14-46-101. Acts 1965, No. 162, §§ 1-3; A.S.A. 1947, §§ 19-642 — 19-644.

14-46-102. Acts 1957, No. 384, § 1; A.S.A. 1947, § 19-641.

Subchapter 2 — Boards of Three Commissioners

14-46-201 — 14-46-249. [Repealed.]

Publisher's Notes. This subchapter was repealed by Acts 1991, No. 49, § 3. The subchapter was derived from the following sources:

14-46-201. Acts 1913, No. 13, § 1; 1949, No. 25, § 1; A.S.A. 1947, § 19-601.

14-46-202. Acts 1913, No. 13, § 25; A.S.A. 1947, § 19-626.

14-46-203. Acts 1913, No. 13, § 3; A.S.A. 1947, § 19-603.

14-46-204. Acts 1913, No. 13, § 2; A.S.A. 1947, § 19-602.

14-46-205. Acts 1913, No. 13, § 28; A.S.A. 1947, § 19-629.

14-46-206. Acts 1965, No. 3, §§ 1, 2; A.S.A. 1947, §§ 19-604.2, 19-604.3.

14-46-207. Acts 1913, No. 13, § 26; A.S.A. 1947, § 19-627.

14-46-208. Acts 1913, No. 13, § 27; A.S.A. 1947, § 19-628.

14-46-209. Acts 1913, No. 13, §§ 6, 7; A.S.A. 1947, §§ 19-606, 19-607.

14-46-210. Acts 1913, No. 13, § 18; A.S.A. 1947, § 19-608.

14-46-211. Acts 1913, No. 13, § 5; 1949, No. 219, § 1; A.S.A. 1947, § 19-605.

14-46-212. Acts 1913, No. 13, § 5; 1949, No. 219, § 1; A.S.A. 1947, § 19-605.

14-46-213. Acts 1913, No. 13, § 5; 1949, No. 219, § 1; A.S.A. 1947, § 19-605.

14-46-214. Acts 1913, No. 13, § 5; 1949, No. 219, § 1; A.S.A. 1947, § 19-605.

14-46-215. Acts 1913, No. 13, § 5; 1949, No. 219, § 1; A.S.A. 1947, § 19-605.

14-46-216. Acts 1913, No. 13, § 5; 1949, No. 219, § 1; A.S.A. 1947, § 19-605.

14-46-217. Acts 1913, No. 13, § 5; 1949, No. 219, § 1; A.S.A. 1947, § 19-605.

14-46-218. Acts 1913, No. 13, § 5; 1949, No. 219, § 1; A.S.A. 1947, § 19-605.

14-46-219. Acts 1913, No. 13, § 5; 1949, No. 219, § 1; A.S.A. 1947, § 19-605.

14-46-220. Acts 1913, No. 13, § 5; 1949, No. 219, § 1; A.S.A. 1947, § 19-605.

14-46-221. Acts 1913, No. 13, § 5; 1949, No. 219, § 1; A.S.A. 1947, § 19-605.

14-46-222. Acts 1913, No. 13, § 5; 1949, No. 219, § 1; A.S.A. 1947, § 19-605.

14-46-223. Acts 1965, No. 97, § 1; A.S.A. 1947, § 19-605.1

14-46-224. Acts 1913, No. 13, § 4; 1917, No. 3, § 1, p. 16; A.S.A. 1947, § 19-604.

14-46-225. Acts 1965, No. 97, § 2; A.S.A. 1947, § 19-604.1.

14-46-226. Acts 1913, No. 13, § 9; 1917, No. 3, § 3, p. 16; 1957, No. 377, § 1; A.S.A. 1947, § 19-609.

14-46-227. Acts 1913, No. 13, § 10; A.S.A. 1947, § 19-610.

14-46-228. Acts 1913, No. 13, § 21; A.S.A. 1947, § 19-621.

14-46-229. Acts 1913, No. 13, § 20; A.S.A. 1947, § 19-620.

14-46-230. Acts 1913, No. 13, § 9; 1957, No. 377, § 1; A.S.A. 1947, § 19-609.

14-46-231. Acts 1913, No. 13, § 19; A.S.A. 1947, § 19-619.

14-46-232. Acts 1913, No. 13, § 11; A.S.A. 1947, § 19-611.

14-46-233. Acts 1953, No. 271, § 1; A.S.A. 1947, § 19-611.1.

14-46-234. Acts 1913, No. 13, § 12; 1923 (1st Ex. Sess.), No. 14, § 1; 1943, No. 279, § 1; 1949, No. 92, § 1; 1953, No. 72, § 1; A.S.A. 1947, § 19-612.

14-46-235. Acts 1913, No. 13, § 11; A.S.A. 1947, § 19-611.

14-46-236. Acts 1913, No. 13, § 11; A.S.A. 1947, § 19-611.

14-46-237. Acts 1913, No. 13, § 15; A.S.A. 1947, § 19-616.

14-46-238. Acts 1913, No. 13, § 17; 1927, No. 12, § 1; A.S.A. 1947, § 19-618.

14-46-239. Acts 1913, No. 13, § 13; A.S.A. 1947, § 19-613.

14-46-240. Acts 1913, No. 13, § 13; A.S.A. 1947, § 19-613.

14-46-241. Acts 1913, No. 13, § 8; 1917, No. 3, § 2, p. 16; A.S.A. 1947, § 19-614.

14-46-242. Acts 1913, No. 13, § 16; A.S.A. 1947, § 19-617.

14-46-243. Acts 1949, No. 475, §§ 1, 2; A.S.A. 1947, §§ 19-633, 19-634.

14-46-244. Acts 1913, No. 13, § 14; A.S.A. 1947, § 19-615.

14-46-245. Acts 1913, No. 13, § 22; 1917, No. 3, § 4, p. 16; A.S.A. 1947, § 19-622.

14-46-246. Acts 1913, No. 13, § 30; A.S.A. 1947, § 19-623.

14-46-247. Acts 1913, No. 13, § 23; 1935, No. 156, § 1; 1963, No. 523, § 1; A.S.A. 1947, § 19-624.

14-46-248. Acts 1913, No. 13, § 24; A.S.A. 1947, § 19-625.

14-46-249. Acts 1949, No. 49, §§ 1, 2; A.S.A. 1947, §§ 19-635, 19-636.

Subchapter 3 — Boards of Five Commissioners

14-46-301 — 14-46-310. [Repealed.]

Publisher's Notes. This subchapter was repealed by Acts 1991, No. 49, § 3. The subchapter was derived from the following sources:

14-46-301. Acts 1971, No. 436, § 9; A.S.A. 1947, § 19-601.9.

14-46-302. Acts 1971, No. 436, § 1; A.S.A. 1947, § 19-601.1.

14-46-303. Acts 1971, No. 436, § 7; A.S.A. 1947, § 19-601.7.

14-46-304. Acts 1971, No. 436, § 8; A.S.A. 1947, § 19-601.8.

14-46-305. Acts 1971, No. 436, § 10; A.S.A. 1947, § 19-601.10.

14-46-306. Acts 1971, No. 436, § 2; A.S.A. 1947, § 19-601.2.

14-46-307. Acts 1971, No. 436, § 3; A.S.A. 1947, § 19-601.3.

14-46-308. Acts 1971, No. 436, § 4; A.S.A. 1947, § 19-601.4.

14-46-309. Acts 1971, No. 436, § 5; A.S.A. 1947, § 19-601.5.

14-46-310. Acts 1971, No. 436, § 6; A.S.A. 1947, § 19-601.6.

Chapter 47 City Manager Form of Municipal Government

Cross References. City manager enabling provisions, § 14-61-101 et seq.

Election of city officials, § 14-42-201 et seq., § 14-42-301 et seq.

Government of cities of the first class generally, § 14-43-201 et seq.

Government of cities of the second class generally, § 14-44-101 et seq.

Preambles. Acts 1947, No. 403 contained a preamble which read:

“Whereas, some of the provisions of Act 99 of the Acts of the General Assembly of the State of Arkansas for the year 1921 are cumbersome and involved, so that it is desirable to simplify the act and make it available for any city in the state coming within its classification that may desire to avail itself of the provisions of the act;

“Now, therefore….”

Effective Dates. Acts 1921, No. 99, § 35: approved Feb. 10, 1921. Emergency clause provided: “This act being necessary for the immediate preservation of the public peace, health and safety, shall be in force and effect and take effect from and after its passage.”

Acts 1947, No. 403, § 6: approved Mar. 28, 1947. Emergency clause provided: “It is hereby ascertained and declared that there is need in some of the cities of the state for the adoption of a city manager form of government, in order to promote the health and safety of the inhabitants thereof, and therefore an emergency exists and this act, being necessary for the immediate preservation of the public peace, health and safety, shall take effect and be in force from and after its passage.”

Acts 1957, No. 8, § 24: Feb. 1, 1957. Emergency clause provided: “It has been found, and is hereby declared that the management form of city government authorized under this Act provides an improved and superior method for the administration and government of cities of the first and second class; that many Arkansas cities would be greatly benefited by immediately changing from the aldermanic to the management form of government but that Act No. 99 of 1921 (and the prior amendments thereto) contained defective provisions, cured by the amendments contained in this Act, which grossly impaired the efficiency and desirability of the management plan of reorganization and constituted a deterrent to such municipal reorganizations; that the passage of this Act will make available to cities of the first and second class whose present government is inadequate or inefficient an opportunity to reorganize hereunder and thereby greatly improve the efficiency and economy of their respective municipal governments. Therefore, an emergency is hereby declared to exist and, this Act being necessary for the preservation of the public peace, health and safety, shall take effect and be in force from and after the date of its passage and approval.”

Acts 1957, No. 226, § 2: effective on passage.

Acts 1965, No. 6, § 3: Jan. 26, 1965. Emergency clause provided: “It is hereby found and determined by the General Assembly that the designation of Monday, as the only day on which the Board of Directors of cities adopting the manager form of governments may meet is unduly restrictive; that the efficiency of the manager form of government will be improved by permitting the boards of the respective cities to choose the day of the week on which to meet; and, that the immediate passage and effectiveness of this Act is necessary to correct this situation. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in effect from the date of its passage and approval.”

Acts 1967, No. 165, § 2: Feb. 28, 1967. Emergency clause provided: “It has been found and is declared by the General Assembly of the State of Arkansas that the Arkansas Arts Center exists for the benefit of and should be supported by the entire State of Arkansas; that in order to obtain greater support for and participation in the activities of the Arkansas Arts Center that the Board of Trustees of the Arkansas Arts Center should be more representative of the entire State; and that enactment of this bill will accomplish these purposes and aims. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health and safety, shall take effect and be in force from and after the date of its approval.”

Acts 1967, No. 188, § 3: Feb. 28, 1967. Emergency clause provided: “It is hereby found and determined by the General Assembly that this Act is immediately necessary to eliminate the expense of certain special elections and to provide a satisfactory and permanent method of filling a vacancy in the office of a Director in cities having the management form of government. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1971, No. 74, § 5: Feb. 12, 1971. Emergency clause provided: “It is hereby found and determined by the General Assembly that under the present laws of this State, many municipal boards and commissions are self perpetuating in that vacancies on such boards and commissions are to be filled by a vote of the remaining members of the boards and commissions; that it is in the best interests of the citizens of this State that vacancies on municipal boards and commissions in cities having a manager form of government be filled by a majority vote of the board of directors of the city rather than the remaining members of the affected board or commission; that this Act is designed to correct this situation and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1975, No. 874, § 5: approved Apr. 4, 1975. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that certain officials and employees of municipal governments operated under management form are unable to acquire retirement security under existing and available retirement plans and it is necessary that such cities be able to assure reasonable retirement security to certain officials and employees to attract competent personnel to its services and that this Act is immediately necessary to retain competent key officials and employees of the cities; therefore, an emergency is declared to exist and this Act being necessary for the preservation of public peace, health and safety shall be in full force and effect from and after its passage.”

Acts 1987, No. 25, § 3: Feb. 11, 1987. Emergency clause provided: “It is hereby found and determined by the General Assembly that the city manager residency requirement of Act 99 of 1921 puts cities with less than six thousand (6,000) persons in population at a serious disadvantage when competing with larger cities for the services of professional city managers and that allowing these cities the option to eliminate the residency requirement will reverse this inequity. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the safe and efficient operation of the cities of the State shall be in full force and effect from and after its passage and approval.”

Acts 1993, No. 117, § 5: Feb. 15, 1993. Emergency clause provided: “It is hereby found and determined by the General Assembly that the present city manager law which prohibits a person related to a member of the board of directors or the city manager from holding a position of employment or appointment with the city is unreasonably strict; that this act modifies that provision to make it more reasonable; and that until this act goes into effect, unreasonable discrimination will continue as a result of the current law. Therefore, an emergency is hereby declared to exist and this act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 2003, No. 1185, § 29: Jan. 1, 2005, by its own terms.

Acts 2003, No. 1185, § 30: Jan. 1, 2005, by its own terms.

Acts 2007, No. 689, § 3: Mar. 29, 2007. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that Arkansas cities are faced with ever-increasing problems of providing services to their citizens caused by a combination of globalization, rapid technological change, rising citizen expectations, mandates from higher levels of government, and a constrained tax base which together have created a context in which more effective and efficient methods of governance have become mandatory; and that this act is immediately necessary to meet these needs and for the efficiency of government. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2007, No. 729, § 3: Mar. 30, 2007. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that Arkansas cities are faced with ever increasing problems of providing services to their citizens caused by a combination of globalization, rapid technological change, rising citizen expectations, the need for more accountability, mandates from higher levels of government, and a constrained tax base which together have created a context in which more effective and efficient methods of governance have become mandatory; and that this act is immediately necessary to meet these needs and for the efficiency of government. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2009, No. 1480, § 117: Apr. 10, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act makes various revisions to Arkansas election laws that are designed to improve the administration of elections and special elections and that these revisions should be implemented as soon as possible so that the citizens of this state may benefit from improved election procedures. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2011, No. 608, § 2: Mar. 23, 2011. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that certain statutes require the chief executive officer to serve on certain boards and commissions; that in a city manager form of government there is no chief executive officer; and that this act is immediately necessary because it makes clear that the mayor is the chief executive officer and allows the mayor to appoint the city manager as his or her designee to serve on essential boards and commissions. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2011, No. 801, § 2: Mar. 30, 2011. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the ability to utilize citizens as members of municipal boards, commissions, and task forces is essential to carrying out the functions of local government; that the restriction in this statute threatens the ability to attract citizen volunteers; and that this act is immediately necessary because of the dire need of municipalities to be able to use these volunteer citizens. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2011, No. 1185, § 21: Oct. 2, 2011.

Research References

Am. Jur. 56 Am. Jur. 2d, Mun. Corp., § 181 et seq.

Case Notes

Cited: Williams v. City of Texarkana, 861 F. Supp. 756 (W.D. Ark. 1992).

14-47-101. Applicability generally.

Any city within the State of Arkansas having a population of two thousand five hundred (2,500) or more, according to the latest federal census, may become organized under the provisions of this chapter by proceeding as provided in this chapter.

History. Acts 1921, No. 99, § 1; 1931, No. 226, § 1; Pope's Dig., § 10089; Acts 1957, No. 8, § 1; A.S.A. 1947, § 19-701.

Case Notes

Cited: Williams v. Pulaski County Election Comm'n, 249 Ark. 309, 459 S.W.2d 52 (1970); Moorman v. Priest, 310 Ark. 525, 837 S.W.2d 886 (1992).

14-47-102. Applicability of 1957 amendments.

Acts 1957, No. 8, amending §§ 14-47-10114-47-103, 14-47-105, 14-47-10614-47-111, 14-47-11414-47-121, 14-47-12314-47-127, 14-47-131, 14-47-133, 14-47-134, and 14-47-13614-47-139, shall be applicable to:

  1. All cities of the first and second class hereafter electing to reorganize under this chapter, as heretofore amended and as amended in this legislation; and
  2. All cities of the first and second class that have not yet consummated a reorganization into the management form of government but whose electors, prior to the enactment of this legislation, may have voted through an election held pursuant to § 14-47-106 to reorganize the city under this chapter.

History. Acts 1957, No. 8, § 22; A.S.A. 1947, § 19-732.

Case Notes

In General.

The fact that Little Rock may be the only city at the present time coming within the category mentioned in subdivision (2) does not make Acts 1957, No. 8 local legislation. Mann v. Lowry, 227 Ark. 1132, 303 S.W.2d 889 (1957).

Effect.

Acts 1957, No. 8 did not repeal the provision of Acts 1951, No. 49 relating to the election of municipal court judges in the city of Little Rock at the general municipal election. Laster v. Pruniski, 228 Ark. 132, 306 S.W.2d 123 (1957).

Validity.

The emergency clause of Acts 1957, No. 8 was valid. Mann v. Lowry, 227 Ark. 1132, 303 S.W.2d 889 (1957).

14-47-103. Savings provisions.

  1. When a city effects a change of government under this chapter, it shall remain subject to and controlled by all laws, except those inconsistent with this chapter, which on the effective date of the reorganization applied to or governed the city, including, without limiting the foregoing, laws relating to improvement districts or providing for the creation thereof.
  2. All bylaws, ordinances, and resolutions lawfully passed and in force in any city under its former organization, and not in conflict with this chapter, shall remain in force until altered or repealed by the board of directors elected under the authority of this chapter.
  3. The territorial limits of the city shall remain the same as under its former organization, and all rights and property of every description which were vested in the city under its former organization shall remain vested in it under the reorganization provided for in this chapter.
  4. No existing right or liability either in favor of or against the city or any agency thereof, including, without limiting the foregoing, improvement districts and no suit or prosecution of any kind shall be affected by the change unless otherwise provided for in this chapter.
  5. No valid pledge or mortgage of the revenues or property of the city, or of any agency or instrumentality thereof, or of any municipal improvement district, shall be impaired by the reorganization.

History. Acts 1921, No. 99, § 3; Pope's Dig., § 10091; Acts 1957, No. 8, § 3; A.S.A. 1947, § 19-703.

14-47-104. Penalties for election violations.

  1. Any person who shall perform any service in the interest of any candidate for any office provided in this chapter in consideration of any money, promise of employment, or other valuable thing or any candidate who shall pay or make promises to pay such consideration shall be guilty of a misdemeanor. Upon conviction by any court of competent jurisdiction, an offender shall be punished by a fine not less than twenty-five dollars ($25.00) nor more than three hundred dollars ($300) or by imprisonment in the county jail not exceeding thirty (30) days, or both.
  2. Any person offering a bribe, either in money or other consideration, to any elector for the purpose of influencing his or her vote at any election provided in this chapter or any elector entitled to vote at any election receiving or accepting any bribe or other consideration, any person making a false answer relative to his or her qualification to vote at the election, any person voting or offering to vote at the election, knowing he or she is not entitled to vote at the election, and any person knowingly procuring, aiding, or abetting in violation of this section shall be deemed guilty of a misdemeanor. Upon conviction, an offender shall be fined not less than one hundred dollars ($100) nor more than five hundred dollars ($500) or be imprisoned in the county jail not less than ten (10) days nor more than ninety (90) days, or both.

History. Acts 1921, No. 99, §§ 6, 7; Pope's Dig., §§ 10094, 10095; A.S.A. 1947, §§ 19-706, 19-707.

14-47-105. Forms of government.

  1. The form of government created by an organization under this chapter is called the management form of city government.
  2. The form of government of a municipality operating under the control of a municipal council, under either § 14-43-201 et seq. or § 14-44-101 et seq., is called the mayor-council form of government.

History. Acts 1921, No. 99, § 1; 1931, No. 226, § 1; Pope's Dig., § 10089; Acts 1957, No. 8, § 1; A.S.A. 1947, § 19-701; Acts 2017, No. 878, § 3.

Amendments. The 2017 amendment, in (b), substituted “under” for “pursuant to”, and substituted “mayor-council” for “aldermanic”.

Case Notes

Cited: Williams v. Pulaski County Election Comm'n, 249 Ark. 309, 459 S.W.2d 52 (1970).

14-47-106. Election on city manager form of government.

  1. Any city in this state having a population of two thousand five hundred (2,500) or more according to the most recent federal census may call and hold an election to determine whether or not the city shall be organized under and governed by the manager form of city government as provided for in this chapter.
  2. The proceeding shall be in the following manner:
      1. When petitions containing the signatures of electors equal in number to fifteen percent (15%) of the aggregate number of ballots cast for all candidates for mayor in the preceding general city election are presented to the mayor, the mayor by proclamation shall submit the question of organizing the city under the manager form of government to the electors of the city at a special election to be held in accordance with § 7-11-201 et seq.
      2. The proclamation shall be published at length in some newspaper published in the city for one (1) time, and notice of the election shall be published in some newspaper published in the city one (1) time a week for two (2) weeks, the first publication to be not less than fifteen (15) days before the date set for the election. No other notice of the election shall be necessary;
      1. At the special election for the submission or resubmission of the proposition, the ballots shall contain substantially the following:
        1. The election thereon shall be conducted, the vote canvassed, and the result thereof declared in the same manner as provided by law in respect to other city elections.
        2. The county board of election commissioners shall certify the result to the mayor. This result shall be conclusive and not subject to attack unless suit is brought in the circuit court of the county in which the city is situated to contest the certification within thirty (30) days after the certification;
      1. If a majority of the votes cast on the proposition is against the organization of the city under this chapter, the question of adopting the manager form of government shall not be resubmitted to the voters of that city for adoption within four (4) years thereafter. It shall be resubmitted then only upon presentation to the mayor of petitions signed by electors equal in number to fifteen percent (15%) of the aggregate number of ballots cast for all candidates for mayor at the preceding general city election.
        1. If a majority of the votes cast on the proposition at any such election shall be for the organization of the city under this chapter, the mayor shall file certificates stating that the proposition was adopted with the Secretary of State and with the county clerk of the county in which the city is situated. The mayor shall call a special election to be held in the city for the purpose of electing seven (7) city directors.
        2. This election shall be called and conducted and the results determined and certified as provided in § 14-47-110.

“FOR the proposition to organize this city under Act 99 of the General Assembly of 1921, as amended

AGAINST the proposition to organize this city under Act 99 of the General Assembly of 1921, as amended

History. Acts 1921, No. 99, § 2; Pope's Dig., § 10090; Acts 1947, No. 403, § 1; 1957, No. 8, § 2; 1965, No. 157, § 1; A.S.A. 1947, § 19-702; Acts 2005, No. 2145, § 31; 2007, No. 1049, § 50; 2009, No. 1480, § 68.

Publisher's Notes. Act 99 of the General Assembly of 1921, referred to in this section, is codified as § 14-47-101 et seq.

Acts 1965, No. 157, § 5, provided that it is the intent and purpose of this act to make uniform the requirements for a city having the aldermanic form of government to submit to a vote the question of adopting the manager form of government and for a city having the manager form of government to submit to a vote the question of adopting the aldermanic form of government.

Amendments. The 2009 amendment substituted “§ 7-11-201 et seq.” for “§ 7-5-103(b)” in (b)(1)(A).

Case Notes

Approval.

The city manager form of government may be put into operation under this section as amended in 1957, even though the election at which the electors of the city voted in favor of the city manager plan was prior to the time of the 1957 amendment. Mann v. Lowry, 227 Ark. 1132, 303 S.W.2d 889 (1957).

14-47-107. Subsequent election on mayor-council form of government.

      1. After the expiration of six (6) years from the date on which the first board of directors takes office in a city organized under this chapter, a petition may be presented to the mayor by the board of directors by ordinance or by petition signed by electors equal in number to fifteen percent (15%) of the aggregate number of ballots cast for the position of mayor in the immediately preceding mayoral general election.
      2. Upon the receipt of a petition under this subdivision (a)(1), the mayor by proclamation shall submit the question of organization of the city under the mayor-council form of government at a special election to be held in accordance with § 7-11-201 et seq.
      1. The proclamation shall be published at length one (1) time in a newspaper published in the city.
        1. Notice of the election shall be published in a newspaper published in the city one (1) time a week for two (2) weeks, the first publication to be not less than fifteen (15) days before the date set for the election.
        2. No other notice of the election is necessary.
  1. If the plan is not adopted by a majority of the voters voting upon that issue at the special election called, the question of adopting the mayor-council form of government shall not be resubmitted to the voters of the city for adoption within four (4) years thereafter. Then the question to adopt shall be resubmitted upon the presentation to the mayor of a petition signed by electors equal in number to fifteen percent (15%) of the aggregate number of votes cast for the position of mayor in the immediately preceding mayoral general election.
  2. At the special election for the submission or resubmission of the proposition, the ballots shall read:
    1. The election thereupon shall be conducted, the votes canvassed, and the result declared in the same manner as provided by law in respect to other city elections.
      1. The county board of election commissioners shall certify the result to the mayor.
      2. The result shall be conclusive and not subject to attack unless suit is brought within thirty (30) days after the certification by the county board of election commissioners in the circuit court of the county in which the city is situated to contest the certification.
    1. Except as provided in subdivision (e)(2) of this section, if the majority of the votes cast on the issue are in favor of organization of the city under the mayor-council form of government, the city shall proceed to the election of all of the city officials who were subject to election in the city immediately before the date on which the city was organized under the management form of city government.
    2. At the time the reorganization is effective under this chapter:
      1. The mayor shall continue in office until the remainder of his or her term of office; and
      2. A member of the city board of directors shall become a member of the city council and shall continue in office until the remainder of his or her term of office.
    3. In a city that has a population of more than one hundred thousand (100,000) persons according to the most recent federal decennial census:
      1. A person who is on the ballot in 2020 to become a member of the city council shall serve a term of two (2) years if elected; and
      2. At the 2022 General Election, the newly elected city council members shall draw initial two-year or four-year terms to result in staggered four-year terms.
  3. If no suit is brought to contest the certification of the results of the election within the thirty-day period after the certification, the mayor shall file certificates stating that the proposition was adopted with the Secretary of State and county clerk of the county in which the city is situated.
    1. The election of the city officials shall be held at the next time provided for the election of city officials under the statutes then in effect pertaining to the mayor-council form of government pertaining to the class of cities to which the particular city belongs.
      1. All laws pertaining to the mayor-council form of government for such class of cities shall apply.
        1. On the date as prescribed by such laws when newly elected city officials take office, the term of office of all members of the board of directors shall terminate, and the transition to the mayor-council form of government shall be completed.
        2. If, under the mayor-council form of government, the terms of council members are staggered, determination shall be made by lot and the length of the terms fixed accordingly.
  4. The provisions of this section for converting to the mayor-council form of government shall be in addition to the right to change to the mayor-council or any other form of municipal government that may exist under present law.
    1. When a municipality elects to adopt the mayor-council form of government in the manner provided in this section, the question of reorganizing the municipality under the manager form shall not be submitted to the electors within a period of six (6) years, and thereafter only in the manner provided in § 14-47-106.
    2. If the qualified electors of the municipality do not approve the organization of the municipality under the manager form of government at the election, the proposition shall not again be submitted to the electors of the city for a period of four (4) years, and then only in the manner provided in § 14-47-106.

“FOR the proposition to organize this city under the mayor-council form of government

AGAINST the proposition to organize this city under the mayor-council form of government

History. Acts 1957, No. 8, § 26, as added by Acts 1957, No. 389, § 1; 1965, No. 22, § 1; 1965, No. 157, § 2; A.S.A. 1947, § 19-733; Acts 2005, No. 2145, § 32; 2007, No. 1049, § 51; 2009, No. 1480, § 69; 2013, No. 1291, § 1; 2017, No. 878, § 4; 2019, No. 1092, §§ 2, 3.

Publisher's Notes. Acts 1965, No. 157, § 5, provided that it is the intent and purpose of this act to make uniform the requirements for a city having the aldermanic form of government to submit to a vote the question of adopting the manager form of government and for a city having the manager form of government to submit to a vote the question of adopting the aldermanic form of government.

Amendments. The 2009 amendment substituted “§ 7-11-201 et seq.” for “§ 7-5-103(b)” in (a)(1).

The 2013 amendment substituted “for the position of mayor” for “for all candidates for director in that position for which the greatest number of ballots were cast” in (a)(1) and (b); inserted “one (1) time” preceding “in some newspaper” in (a)(2); and inserted “immediately” and “mayoral” in (a)(1) and (b).

The 2017 amendment substituted “mayor-council” for “aldermanic” in the section heading and throughout the section; substituted “council members” for “alderman” in (g)(2)(B)(ii); inserted “of government” in (i)(2); and made stylistic changes.

The 2019 amendment added the (a)(1)(A) and (B) and (a)(2)(A) and (B) designations; rewrote (a)(1)(A); substituted “Upon the receipt of a petition under this subdivision (a)(1)” for “Whereupon” in (a)(1)(B); substituted “a newspaper” for “some newspaper” twice in (a)(2); substituted “is necessary” for “shall be necessary” in (a)(2)(B)(ii); and rewrote (e).

Case Notes

Constitutionality.

There is nothing in Ark. Const. Amend. 7 limiting the power of the legislature to pass an act authorizing a city to change its form of government at a special election to be called by its mayor on the petition of a certain number of voters therein. Accordingly, this section governs the validity of the ballot procedure. Moorman v. Priest, 310 Ark. 525, 837 S.W.2d 886 (1992).

Scope of Election.

This section provides that the only issue to be presented is the question of whether to organize under the aldermanic form; therefore, petitions and ballot calling for the establishment of six wards were beyond statutory authority, and trial court's ruling that the proposal was invalid was proper. Moorman v. Priest, 310 Ark. 525, 837 S.W.2d 886 (1992).

14-47-108. Effect of reorganization.

    1. A reorganization is effective when in connection with the reorganization of a municipality under this chapter an initial board of directors shall be elected and the respective terms of office of the directors commence or when changes are made under subdivision (a)(2)(D) of this section.
    2. Concurrent with the commencement of the terms of the directors:
      1. The office of mayor, as existing under the mayor-council form of government, all memberships on the city council, and all memberships on the board of public affairs shall become vacant, each of these offices being abolished as to cities reorganized under this chapter;
      2. Subject to subdivision (a)(2)(D) of this section and except as is otherwise provided for city attorneys in cities with the city manager form of government, the statutory term of office of the city treasurer, city clerk, city attorney, city marshal, and recorder in cities of the second class shall cease and terminate, and the incumbent of each of these offices shall remain in office subject to removal and replacement at any time by the board of directors;
      3. Subject to subdivision (a)(2)(D) of this section, in cities with the city manager form of government having a population of more than one hundred thousand (100,000) persons according to the most recent federal decennial census, the statutory term of office of the city attorney shall cease and terminate, and the incumbent city attorney shall remain in office subject to removal and replacement at any time by the city manager, if the authority is vested in the city manager through:
        1. An ordinance of the board of directors; or
        2. An initiated measure adopted pursuant to Arkansas Constitution, Amendment 7;
      4. In cities with the city manager form of government having a population of more than one hundred thousand (100,000) persons according to the most recent federal decennial census, the statutory term of office of the city attorney shall cease and terminate, and the incumbent city attorney shall remain in office subject to removal and replacement at any time by the mayor if the authority is vested in the mayor under § 14-47-140; and
        1. Every other executive officer or executive employee of the city, including, without limiting the foregoing, the city purchasing agent and the members hereinafter called “board members” of every other municipal board, authority, or commission, whether the office, employment, board, authority, or commission exists under statute or under any ordinance or resolution, whose official term of office or employment is fixed by statute, ordinance, or resolution, shall serve until the expiration of the term so fixed, after which the position held by each such executive officer, executive employee, or board member shall be filled through appointment by the board of directors, the appointees to hold at the will of the board. However, at any time in cities with the city manager form of government, the appointments shall be made by the mayor and appointees shall hold at the will of the mayor, if the mayor is authorized to make the appointments by:
          1. The board of directors, by ordinance; or
          2. An initiated measure adopted pursuant to Arkansas Constitution, Amendment 7.
        2. Each such executive officer or executive employee serving on the effective date of the reorganization, and whose office or employment carries no fixed term created either by statute, ordinance, or resolution shall be subject to removal and replacement at any time by the board of directors or the mayor, if authorized.
        3. However, the provisions of this subdivision (a)(2)(E) shall be subject to the provisions of subsection (b) of this section and to the exceptions therein contained.
    1. It is expressly directed that a reorganization under this chapter shall not affect, impair, or terminate the employment of any city officers or employees whose employment is subject to, or regulated by, civil service laws.
      1. The reorganization shall not operate to abolish, terminate, or otherwise affect any of the following departments, commissions, authorities, agencies, or offices of the city government then existing:
        1. Waterworks commission existing under §§ 14-234-301 — 14-234-309;
        2. Sewer committee existing under § 14-235-206;
        3. Airport commission existing under § 14-359-103;
        4. Housing authority existing under § 14-169-208;
        5. Any board of civil service commissioners serving under § 14-49-201 et seq., § 14-50-201 et seq., § 14-51-201 et seq., or under any other statute enacted;
        6. Auditorium commission existing under § 14-141-104;
        7. Library trustees existing under § 13-2-502;
        8. City planning commission existing under Acts 1929, No. 108, § 1 [repealed]; or
        9. Board of commissioners of any improvement district.
        1. The reorganization shall not terminate, impair, or otherwise affect the official status, tenure of office, or powers of the persons serving as commissioners, committee members, trustees, or members of any of the boards, authorities, commissions, agencies, or departments listed in this subdivision (b)(2).
        2. This power, whether consisting of the power to appoint or the power to confirm appointments or nominations, as may be vested in the municipal council immediately prior to the reorganization in respect to the filling of vacancies on the boards, authorities, commissions, agencies, departments, or in the judgeships listed in this subdivision (b)(2)(B) shall be transferred to and vested in the board of directors or the mayor, if the mayor has appointment power pursuant to subdivision (a)(2)(E) of this section. Each appointee designated by the board or by the mayor, if authorized, to fill a vacancy in any such position shall serve for the statutory term, if any, applicable to the vacancy or, if there is no statutory term, shall serve at the will of the board or the mayor, if authorized.

History. Acts 1921, No. 99, § 3; Pope's Dig., § 10091; Acts 1957, No. 8, § 3; 1957, No. 226, § 1; A.S.A. 1947, § 19-703; Acts 2001, No. 1472, § 1; 2001, No. 1473, §§ 1, 2; 2003, No. 1185, § 28; 2003, No. 1185, § 29; 2007, No. 689, § 2; 2007, No. 729, § 1; 2017, No. 878, § 5.

Publisher's Notes. Acts 1929, No. 108, § 1, referred to in this section, was repealed by Acts 1957, No. 186, and a new law enacted; see § 14-56-401 et seq.

Amendments. The 2017 amendment substituted “mayor-council” for “aldermanic” in (a)(2)(A).

Cross References. Transition provisions, tenure of present justices and judges, and jurisdiction of present courts, Ark. Const., Amend. 80, § 19.

14-47-109. Board of directors generally.

    1. The seven (7) directors elected by a city reorganized under this chapter shall be known and designated as the board of directors of that city.
    2. The board shall constitute the supreme legislative and executive body of the city and, subject to § 14-47-120(10), shall be vested with all powers and authority which, immediately prior to the effective date of the reorganization, were vested under then-existing laws, ordinances, and resolutions in the mayor and council of that city and in its board of public affairs.
    3. Except where expressly permitted under this chapter, a board member may not serve the city in any other capacity.
    1. For election purposes, the positions on the board shall be permanently designated as positions numbered respectively as “one”, “two”, “three”, “four”, “five”, “six”, and “seven”.
      1. Each candidate for election to membership on the board shall specify the position for which he or she is running.
      2. The electors shall vote separately on the candidates for each position, with the position sought by each candidate to be shown on the ballot.
  1. The candidate for any designated position on the board of directors who, in any general or special election, shall receive votes greater in number than those cast in favor of any other candidate for the position shall be deemed to be elected.
    1. All regular and special elections of directors shall be nonpartisan, the ballots to show no party designation.
    2. In all regular and special elections, each candidate for the office of director shall be elected by the electors of the city at large.
    3. A director shall not be prohibited from holding successive terms of office.
    1. Any director elected at a special election shall take office on the first Monday following the certification of his or her election as required in this chapter.
    2. A director elected at a regular election shall take office on January 1 next following his or her election.
    1. At any regular or special election for the election of a director, any adult person who has resided within the municipality for at least thirty (30) days and is qualified to vote at an election of county or state officers shall be deemed a qualified elector.
    2. Any person more than twenty-one (21) years of age possessing these same qualifications also shall be eligible to run for the office of director.
  2. When a city is reorganized under this chapter, at the first meeting of its initial board, the seven (7) directors will be divided by lot into two (2) classes. The tenure of office of those in each class shall be as follows:
    1. Those in class number one, which shall contain three (3) members, shall serve until and including December 31 following the first regular election held after their term of office commences and until their successors have been elected and qualified. Thereafter, those in class number one shall serve four-year terms; and
    2. Those in class number two, which shall contain four (4) members, shall serve until and including December 31 following the second regular election held after their term of office commences and until their successors have been elected and qualified. Thereafter, those in class number two shall serve four-year terms.

History. Acts 1921, No. 99, § 4; Pope's Dig., § 10092; Acts 1947, No. 403, § 2; 1957, No. 8, § 4; 1973, No. 168, § 1; 1979, No. 68, § 1; A.S.A. 1947, § 19-704; Acts 1989, No. 905, § 6.

Publisher's Notes. Acts 1973, No. 498, § 4, provided that the provisions of this act shall be supplemental to the provisions of Act 99 of 1921, as amended, and shall repeal only those laws or parts of laws that specifically conflict.

Case Notes

Constitutionality.

Provisions in subsection (c), as amended by Act 168 of 1973, tended to disenfranchise many voters and were therefore invalid. Mears v. City of Little Rock, 256 Ark. 359, 508 S.W.2d 750 (1974).

At-Large Elections.

Black citizens who alleged that the at-large method of electing city directors effectively diluted the voting power of blacks were not entitled to injunctive relief pursuant to 42 U.S.C. § 1983, since they did not demonstrate that they had had less opportunity than other citizens or groups of citizens to participate in the election of city directors and in the political processes and government of the city. Leadership Roundtable v. City of Little Rock, 499 F. Supp. 579 (E.D. 1980), aff'd, Leadership Roundtable v. Little Rock, 661 F.2d 701 (8th Cir. Ark. 1981).

Candidates.

A political practice pledge is not required of the candidates for board of directors in cities operating under the city manager form of government, since all such candidates run without political affiliation. Williams v. Pulaski County Election Comm'n, 249 Ark. 309, 459 S.W.2d 52 (1970).

14-47-110. Election of directors.

  1. Candidates for the office of director shall be nominated and elected as follows:
        1. A special election to elect the initial membership of the board shall be called by the mayor as provided in § 14-47-106.
        2. The mayor's proclamation shall be in accordance with § 7-11-101 et seq.
        1. A special election to fill any vacancy under § 14-47-113 shall be called through a resolution of the board of directors.
        2. A proclamation announcing the holding of the election shall be signed by the mayor and published in accordance with § 7-11-101 et seq.;
    1. The petition mentioned in subdivision (a)(3) of this section supporting the candidacy of each candidate to be voted upon at any general or special election shall be filed with the city clerk or recorder not more than one hundred two (102) days nor fewer than eighty-one (81) days before the election by 12:00 noon;
        1. In respect to both special and general elections, the name of each candidate shall be supported by a petition, signed by at least fifty (50) qualified electors of the municipality, requesting the candidacy of the candidate.
        2. The petition shall show the residence address of each signer and shall carry an affidavit signed by one (1) or more persons, in which the affiant or affiants shall vouch for the eligibility of each signer of the petition.
      1. Each petition shall be substantially in the following form:
      2. A petition for nomination shall not show the name of more than one (1) candidate.
        1. The name of the candidate mentioned in each petition, together with a copy of the election proclamation if the election is a special election, shall be certified by the city clerk or recorder to the county board of election commissioners not less than seventy-five (75) days before the election unless the clerk or recorder finds that the petition fails to meet the requirements of this chapter.
          1. Whether the names of the candidates so certified to the county board of election commissioners are to be submitted at a biennial general election or at a special election held on a different date, the election board shall have general supervision over the holding of each municipal election.
          2. In this connection, the board shall post the nominations, print the ballots, establish the voting precincts, appoint the election judges and clerks, determine and certify the result of the election, and determine the election expense chargeable to the city, all in the manner prescribed by law in respect to general elections. It is the intention of this chapter that the general election machinery of this state shall be utilized in the holding of all general and special elections authorized under this chapter.
          3. The result of the election shall be certified by the election board to the city clerk or recorder; and
    2. The candidate for any designated position on the board of directors who, in any general or special election, shall receive votes greater in number than those cast in favor of any other candidate for the position shall be deemed to be elected.
  2. Each director, before entering upon the discharge of his or her duties, shall take the oath of office required by Arkansas Constitution, Article 19, § 20.

“The undersigned, duly qualified electors of the City of …, Arkansas, each signer hereof residing at the address set opposite his or her signature, hereby request that the name… be placed on the ballot as a candidate for election to Position No. … on the Board of Directors of said City of … at the election to be held in such City on the … day of …, 20…. We further state that we know said person to be a qualified elector of said City and a person of good moral character and qualified in our judgment for the duties of such office.”

History. Acts 1921, No. 99, §§ 5, 8; Pope's Dig., §§ 10093, 10096; Acts 1957, No. 8, §§ 5, 6; 1965, No. 6, § 1; A.S.A. 1947, §§ 19-705, 19-708; Acts 1989, No. 347, § 1; 1993, No. 541, § 1; 2001, No. 552, § 1; 2005, No. 2145, § 33; 2007, No. 1049, § 52; 2009, No. 1480, § 70; 2011, No. 1185, § 20.

Amendments. The 2009 amendment substituted “§ 7-11-101 et seq.” for “§ 7-5-103(a)” in (a)(1)(A)(ii) and (a)(1)(B)(ii).

The 2011 amendment substituted “not more than one hundred two (102) days nor fewer than eighty-one (81) days” for “not more than ninety (90) days nor fewer than seventy (70) days” in (a)(2); and substituted “seventy-five (75)” for “thirty-five (35)” in (a)(3)(D)(i).

Case Notes

Elections.

Black citizens who alleged that the at large method of electing city directors effectively diluted the voting power of blacks were not entitled to injunctive relief pursuant to 42 U.S.C. § 1983, since they did not demonstrate that they had had less opportunity than other citizens or groups of citizens to participate in the election of city directors and in the political processes and government of the city. Leadership Roundtable v. City of Little Rock, 499 F. Supp. 579 (E.D. 1980), aff'd, Leadership Roundtable v. Little Rock, 661 F.2d 701 (8th Cir. Ark. 1981).

Where appellant's petition for nomination for city director was denied because she failed to present the names and resident addresses of fifty qualified electors, appellant's request for mandamus relief to compel the city clerk to certify her as a candidate for the city director position was moot as the election had already taken place and appellant's prayer for relief could no longer be granted. Lott v. Langley, 2013 Ark. 247 (2013).

Candidates.

A political practice pledge is not required of the candidates for board of directors in cities operating under the city manager form of government, since all such candidates run without political affiliation. Williams v. Pulaski County Election Comm'n, 249 Ark. 309, 459 S.W.2d 52 (1970).

Cited: Mears v. City of Little Rock, 256 Ark. 359, 508 S.W.2d 750 (1974); Knoop v. City of Little Rock, 277 Ark. 13, 638 S.W.2d 670 (1982).

14-47-111. Refusal of director to serve.

  1. Any person who shall have been elected or appointed a director and shall neglect or refuse to qualify and serve as such shall be guilty of a misdemeanor and fined in any sum of not less than one hundred dollars ($100) nor more than three hundred dollars ($300).
  2. However, the directors, for good cause shown, may permit a director to resign.

History. Acts 1921, No. 99, § 14; Pope's Dig., § 10102; Acts 1957, No. 8, § 8; 1983, No. 650, § 1; A.S.A. 1947, § 19-714.

14-47-112. Removal of director.

  1. The holder of office of city director is subject to removal by the electors qualified to vote for a successor of the incumbent.
  2. The procedure to effect the removal of the incumbent of this elective office shall be as follows:
        1. A petition shall be filed with the city clerk. This petition shall be signed by electors entitled to vote for a successor to the incumbent sought to be removed, equal in number to at least thirty-five percent (35%) of the number of ballots cast for all candidates for directors at the preceding primary election at which directors were nominated or elected, demanding the election of a successor of the person sought to be removed.
        2. The petition shall contain a statement of the grounds and reasons on account of which the removal is sought.
      1. The signatures to the petition need not all be appended to one (1) paper, but each signer shall add to his or her signature his or her place of residence, giving street and number, if any.
      2. One (1) of the signers of each of the papers shall make oath before an officer competent to administer oaths that the statements therein made are true as he or she believes and that each signature to the paper appended is a genuine signature of the person whose name it purports to be.
        1. Within ten (10) days of the date of filing the petition, the city clerk shall ascertain and determine whether or not the petition is signed by the requisite number of qualified electors.
        2. If necessary, the board of directors shall allow the city clerk extra help for that purpose.
      1. The city clerk shall attach to the petition his or her certificate showing the result of his or her examination;
        1. If by the clerk's certificate the petition is shown to be insufficient, it may be amended within ten (10) days.
        2. Within ten (10) days after an amendment, the clerk shall make like examination of the amended petition.
        1. If his or her certificate shall show the amended petition to be insufficient, it shall be returned to the person filing it, without prejudice, however, to the filing of a new petition to the same effect.
        2. If the petition shall be deemed sufficient, the clerk shall submit it to the board without delay;
      1. If the board shall find the petition thus submitted to it contains the requisite number of electors signed thereto and is otherwise found to be sufficient, it shall order and fix a date for holding an election. This date shall be not less than thirty (30) days nor more than forty (40) days from the date of the clerk's certificate to the board that a sufficient petition is filed.
      2. The board shall make, or cause to be made, publication of notice and all arrangements for holding the election;
      1. The election shall be conducted, returned, and the result thereof declared in all respects as are other such elections under the general election laws of the city.
      2. At the election, the proposition submitted to the electors shall be:
      1. If the majority of votes cast on the issue shall be in favor of the removal of the officer, the officer shall be deemed removed and his or her office vacated, and it shall be filled in the manner provided for filling vacancies.
      2. If the majority of the votes cast on that issue shall be against the removal of the officer, the officer shall continue to serve.
  3. No recall petition shall be filed against any officer until he or she shall have held his or her office for at least six (6) months, nor shall any officer be subject to more than one (1) recall proceeding between biennial elections.

“FOR the removal of from the office of director” (name of officer) “AGAINST the removal of .. from the (name of officer) office of director; and”

Click to view form.

History. Acts 1921, No. 99, § 18; Pope's Dig., § 10106; A.S.A. 1947, § 19-718.

RESEARCH REFERENCES

ALR.

Constitutionality of state and local recall provisions. 13 A.L.R.6th 661.

Case Notes

Constitutionality.

Suit for a declaratory judgment as to constitutionality of this section was dismissed where there was no case or controversy. Cummings v. City of Fayetteville, 294 Ark. 151, 741 S.W.2d 638 (1987).

14-47-113. Director vacancy.

Whenever a vacancy shall occur by any reason in the office of a director, the board of directors shall elect a person by majority vote to fill the vacancy and serve for the unexpired term thereof.

History. Acts 1921, No. 99, § 13; Pope's Dig., § 10101; Acts 1967, No. 188, § 1; A.S.A. 1947, § 19-713.

Research References

U. Ark. Little Rock L.J.

Survey of Arkansas Law, Public Law, 1 U. Ark. Little Rock L.J. 230 (1978).

14-47-114. Director not compensated — Per diem.

  1. The board of directors of any city with the city manager form of government may provide by ordinance for the compensation of board members.
  2. Directors of a city having a population of at least four thousand (4,000) but not more than four thousand five hundred (4,500) and located in a county having a population of one hundred thousand (100,000) or more may receive a per diem to be fixed by ordinance of the board not to exceed one hundred dollars ($100) for attending designated meetings of the board. In no event shall any director receive per diem in excess of two hundred dollars ($200) for any one (1) month.

History. Acts 1921, No. 99, § 14; Pope's Dig., § 10102; Acts 1957, No. 8, § 8; 1983, No. 650, § 1; A.S.A. 1947, § 19-714; Acts 1987, No. 458, § 1; 1991, No. 1012, § 1.

14-47-115. Prohibition against director interest in contracts.

    1. A director of the city shall not be interested, directly or indirectly, in any contracts made with the city unless the board of directors of the city shall have enacted an ordinance specifically permitting a director to conduct business with the city and prescribing the extent of this authority.
    2. This prohibition shall not apply to contracts for the furnishing of supplies, equipment, or services to be performed for a municipality by a corporation in which no director holds any executive or managerial office, or by a corporation in which a controlling interest is held by stockholders who are not directors.
  1. Any director acting on any contract with the city in which he or she is interested or receiving any benefit in violation of this section shall be guilty of a misdemeanor and fined in any sum of not less than five hundred dollars ($500) nor more than five thousand dollars ($5,000).

History. Acts 1921, No. 99, § 14; Pope's Dig., § 10102; Acts 1957, No. 8, § 8; 1983, No. 650, § 1; A.S.A. 1947, § 19-714.

14-47-116. Mayor.

    1. The board of directors shall organize by electing one (1) of their number as a chair to preside over the meetings of the board, the person so elected to have the title of “mayor”.
      1. Except as provided in subdivision (a)(2)(B) of this section, the mayor shall serve in this capacity for two (2) years from the date of his or her election as mayor unless his or her tenure of office as a director expires in less than two (2) years, in which event he or she will serve as mayor merely until the expiration of his or her tenure of office as director.
      2. The board of directors of any city may provide by ordinance that the term of mayor in the city shall be one (1) year, in which event the mayors of the city selected thereafter shall be selected for and serve terms of one (1) year.
    2. When the mayor's term expires, the board shall elect a successor mayor. However, the mayor shall not be prohibited from serving in this capacity for more than one (1) term.
    3. The mayor shall receive no compensation for his or her duties in such capacity but shall be reimbursed for all actual expenses incurred by him or her in the discharge of his or her duties as mayor.
  1. The mayor shall have the following powers:
    1. He or she shall preside at all meetings of the board;
    2. He or she shall be recognized as the head of the city government for all ceremonial purposes and by the Governor for the purposes of military law;
    3. He or she shall sign, on behalf of the city, all written agreements, contracts, bonds, mortgages, pledges, indentures, conveyances, and other written instruments, the execution of which has been approved by the board; and
    4. He or she may vote on all matters coming before the board but shall have no veto power.

History. Acts 1921, No. 99, § 8; Pope's Dig., § 10096; Acts 1957, No. 8, § 6; 1985, No. 21, § 1; A.S.A. 1947, § 19-708.

14-47-117. Assistant mayor.

    1. The board shall also elect from its membership an assistant mayor who shall serve in such capacity for two (2) years or until his or her tenure of office as a director expires, whichever period may be shorter. Provided, however, that the board may prescribe at its option a method to rotate the assistant mayor among all or part of its membership for a term of not less than six (6) consecutive months.
    2. The assistant mayor shall not be prohibited from serving in such a capacity for more than one (1) term.
    1. The assistant mayor shall act as mayor during the absence or disability of the mayor.
      1. If a vacancy in the office of mayor occurs, the assistant mayor shall perform the duties of mayor until a successor mayor is elected.
        1. If the mayor shall be continuously absent or disabled for more than six (6) months, his or her office will automatically become vacant and a successor mayor shall be elected.
          1. A certificate of the city clerk or recorder, recorded in the record of the proceedings of the board, as to the absence or disability of the mayor or as to any vacancy in the office of mayor may be relied upon by all persons dealing with the municipality as conclusive evidence of the assistant mayor's authority to assume the powers of the mayor.
            1. Where any such certificate is so recorded, upon the termination of the absence or disability of the mayor and the resumption by him or her of his or her official duties as such, the city clerk or recorder shall record in the records of the board a separate certificate attesting this fact.
            2. This separate certificate shall show the date of the termination of absence or disability and resumption of duties.
          2. [Repealed.]

History. Acts 1921, No. 99, § 8; Pope's Dig., § 10096; Acts 1957, No. 8, § 6; A.S.A. 1947, § 19-708; Acts 1997, No. 471, § 1; 2019, No. 383, § 8.

Amendments. The 2019 amendment repealed (c).

14-47-118. Acting mayor.

If both the mayor and assistant mayor should be absent or disabled from performing their duties, the board may designate by resolution one (1) of its members as acting mayor to serve during the absence or disability and no longer.

History. Acts 1921, No. 99, § 8; Pope's Dig., § 10096; Acts 1957, No. 8, § 6; A.S.A. 1947, § 19-708.

14-47-119. Employment of city manager.

      1. The initial board of directors, as promptly as possible after effecting its organization, shall employ a city manager.
      2. However, in cities with the city manager form of government having a population of more than one hundred thousand (100,000) persons according to the most recent federal decennial census, the mayor may be authorized to employ a city manager. The mayor may be authorized by:
        1. An ordinance of the initial board; or
        2. An initiated measure, adopted pursuant to Arkansas Constitution, Amendment 7, authorizing the mayor to employ a city manager. If the authority is vested by an initiated measure, the board shall not have the power to rescind the authority.
      1. The city manager's employment shall be for an indefinite term.
      2. Thereafter, subject only to such interruptions as are unavoidable, a city manager shall be maintained in the employ of the city.
    1. The appointment and continued employment by the board or mayor of a city manager shall be mandatory.
    1. It shall not be essential that the city manager, at the time of his or her employment, be a qualified elector of the city or of the State of Arkansas or a resident of the city or of the State of Arkansas.
    2. However, the city manager shall be a person found by the board or mayor to have special qualifications in respect to the management of municipal affairs.
    3. During his or her employment, the city manager shall reside in the city and devote his or her full time to the business of the city.
    4. Notwithstanding the provisions of subdivision (b)(3) of this section regarding the residency requirements for city managers, the city manager of a city with a city manager form of government and with a population of fewer than six thousand (6,000) persons, upon approval of a majority of the board, may reside outside the city during his or her employment as city manager.
  1. A member of the board may not be appointed city manager nor acting city manager during the term for which he or she shall have been elected nor within three (3) years following the expiration of the member's term of office as director or mayor.
  2. The city manager shall receive a salary in such amount as may be fixed by the board.
  3. The board, on the vote of a majority of its elected membership, or the mayor, if authorized pursuant to subsection (a) of this section, may terminate the city manager's employment at any time, either with or without cause.
    1. The city manager shall furnish a fidelity bond, the premiums on which shall be paid by the city, in such amount, on such form, and with such security as may be approved by the board.
    2. The bond, in no event, shall be less than twenty-five thousand dollars ($25,000).

History. Acts 1921, No. 99, § 12; Pope's Dig., § 10100; Acts 1957, No. 8, § 7; A.S.A. 1947, § 19-712; Acts 1987, No. 25, § 1; 2001, No. 1790, § 1.

A.C.R.C. Notes. The operation of subsection (f) of this section was suspended by adoption of a self-insured fidelity bond program for public officers, officials and employees, effective July 20, 1987, pursuant to § 21-2-701 et seq. The subsection may again become effective upon cessation of coverage under that program. See § 21-2-703.

Case Notes

Status.

A city manager under this section, as amended in 1957, is an employee, and not an officer. Mann v. Lowry, 227 Ark. 1132, 303 S.W.2d 889 (1957).

14-47-120. Powers and duties of city manager.

The city manager shall have the following powers and duties:

    1. To the extent that such authority is vested in him or her through an ordinance enacted by the board of directors, a city manager may supervise and control all administrative departments, agencies, offices, and employees.
    2. In addition, in cities with a city manager form of government having a population of more than one hundred thousand (100,000) persons according to the most recent federal decennial census, the city manager also shall have the authority to supervise and control the city attorney and may remove and replace the city attorney at any time at the city manager's discretion if the city manager has been given the authority to remove and replace the city attorney pursuant to § 14-47-108(a)(2);
  1. He or she shall represent the board in the enforcement of all obligations in favor of the city or its inhabitants which are imposed by law, or under the terms of any public utility franchise, upon any public utility;
  2. He or she may inquire into the conduct of any municipal office, department, or agency which is subject to the control of the board, in which connection he or she shall be given unrestricted access to the records and files of any such office, department, or agency and may require written reports, statements, audits, and other information from the executive head of the office, department, or agency;
      1. Except as provided in subdivision (4)(A)(ii) of this section, he or she shall nominate, subject to confirmation by the board, persons to fill all vacancies at any time occurring in any office, employment, board, authority, or commission to which the board's appointive power extends.
      2. If the mayor has appointment power pursuant to § 14-47-108(a)(2)(E), the nominations shall be made by the mayor.
      1. He or she may remove from office all officials and employees, including without limitation members of any board, authority, or commission who under laws, whether applicable to cities under the mayor-council or management form of government, may be removed by the city's legislative body.
        1. Removal by the city manager shall be approved by the board.
        2. Where, under the statute applicable to any specific employment or office, the incumbent may be removed only upon the vote of a specified majority of the city's legislative body, the removal of the person by the city manager may be confirmed only upon the vote of the specified majority of the members.
    1. The provisions of this subdivision (4) shall have no application to offices and employments controlled by any civil service or merit plan lawfully in effect in the city;
    1. To the extent that, and under such regulations as the board may prescribe by ordinance, he or she may:
      1. Contract for and purchase, or issue purchase authorizations for, supplies, materials, and equipment for the various offices, departments, and agencies of the city government, and he or she may contract for, or authorize contracts for, services to be rendered to the city or for the construction of municipal improvements. However, in such connection, the board shall establish by ordinance a maximum amount, and each contract, purchase, or authorization exceeding the amount so established shall be effected after competitive bidding as required in § 14-47-138;
      2. Approve for payment, out of funds previously appropriated for that purpose, or disapprove any bills, debts, or liabilities asserted as claims against the city. However, the board shall establish by ordinance in that connection a maximum amount, and the payment or disapproval of each bill, debt, or liability exceeding that amount shall require the confirmation of the board or of a committee of directors created by the board for this purpose;
      3. Sell or exchange any municipal supplies, materials, or equipment. The board shall establish by ordinance an amount, and no item or lot, to be disposed of as one (1) unit, of supplies, materials, or equipment shall be sold without competitive bidding unless the city manager shall certify in writing that in his or her opinion, the fair market value of the item or lot is less than the amount established by ordinance as prescribed; and
      4. Transfer to any office, department, or agency, or he or she may transfer from any office, department, or agency to another office, department, or agency any materials and equipment.
    2. For the purpose of assisting the city manager in transactions arising under subdivisions (5)(A)(i)-(iii) of this section, the board may appoint one (1) or more committees to be selected from its membership. Or in the alternative, it may create one (1) or more offices or departments to be composed of personnel approved by the city manager. If for these purposes the board shall create any new office or department, the person appointed to fill the office or to head the department shall be responsible to the city manager and act under his or her direction;
  3. He or she shall prepare the municipal budget annually and submit it to the board for its approval or disapproval and be responsible for its administration after adoption;
  4. He or she shall prepare and submit to the board, within sixty (60) days after the end of each fiscal year, a complete report on the finances and administrative activities of the city during the fiscal year;
  5. He or she shall keep the board advised of the financial condition and future needs of the city and make such recommendations as to him or her may seem desirable;
  6. He or she shall sign all municipal warrants when authorized by the board to do so;
  7. He or she shall have all powers, except those involving the exercise of sovereign authority, which, under statutes applicable to municipalities under the mayor-council form of government or under ordinances and resolutions of the city in effect at the time of its reorganization, may be vested in the mayor; and
  8. He or she shall perform such additional duties and exercise such additional powers as may be lawfully delegated by ordinance to him or her by the board.

History. Acts 1921, No. 99, § 12; Pope's Dig., § 10100; Acts 1957, No. 8, § 7; A.S.A. 1947, § 19-712; Acts 1987, No. 25, § 1; 2001, No. 1790, § 1; 2003, No. 1185, § 30; 2017, No. 878, §§ 6, 7; 2019, No. 383, § 9.

Amendments. The 2017 amendment substituted “without limitation” for “without limiting the foregoing” in (4)(B)(i); and substituted “mayor-council” for “aldermanic” in (4)(B)(i) and (10).

The 2019 amendment substituted “§ 14-47-108(a)(2)(E)” for “§ 14-47-108(a)(2)(C)” in (4)(A)(ii).

Case Notes

Removal of Employees.

Trial court's failure to make factual findings as to whether interracial associations between a black man, who had been appointed to head a division of a community's model cities program, and a white woman, whom he had employed, were a factor in their discharge by city manager required a reversal of a judgment upholding the discharges. Langford v. City of Texarkana, 478 F.2d 262 (8th Cir. 1973).

14-47-121. Acting city manager.

  1. If the city manager is absent from the city or is unable to perform his or her duties, if the board of directors or the mayor, if authorized, suspends the city manager, or if there is a vacancy in the office of city manager, the board, by resolution, or the mayor, if authorized to employ the city manager pursuant to § 14-47-119(a), may appoint an acting city manager to serve until the city manager returns, until his or her disability or suspension ceases, or until another city manager is appointed and qualifies, as the case may be.
  2. The board or the mayor, if authorized, may suspend or remove an acting city manager at any time.
    1. The board, in the exercise of its discretion, or the mayor, if authorized, may determine whether the acting city manager shall furnish bond.
    2. If in any instance the board requires the acting city manager to furnish bond, in respect to form, amount, and security it shall be subject to the approval of the board or the mayor.
  3. The acting city manager shall receive a reasonable compensation to be fixed by the board.

History. Acts 1921, No. 99, § 12; 1957, No. 8, § 7; A.S.A. 1947, § 19-712; Acts 2001, No. 1790, § 2.

Cross References. Self-Insured Fidelity Bond Program, § 21-2-701 et seq.

14-47-122. [Repealed.]

Publisher's Notes. This section, concerning police courts, was repealed by Acts 2003, No. 1185, § 31. The section was derived from Acts 1921, No. 99, §§ 9-11; Pope's Dig., §§ 10097-10099; A.S.A. 1947, §§ 19-709 — 19-711.

14-47-123. Meetings of board of directors.

    1. A majority of the elected membership of the board of directors shall constitute a quorum for the transaction of business.
    2. Except where otherwise provided by law, the concurring vote of a majority of those attending a meeting, provided a quorum is present, shall represent the action of the board.
  1. The board shall meet on days certain to be chosen in advance by the board within the first and third weeks in each calendar month, except when any meeting date falls on a legal holiday, in which event the meeting shall be held on a substituted date fixed by adjournment at the preceding meeting.
    1. Special meetings may be called at any time by the mayor or by directors representing a majority of the elected membership of the board.
    2. The board may establish by ordinance the procedure for calling and giving notice of special meetings.
  2. All meetings shall be open to the public.
  3. Every motion, resolution, and ordinance adopted by the board shall be signed by the mayor. Each of the foregoing shall be attested by the city clerk, if the municipality is a city of the first class, if otherwise, by the recorder.
  4. All laws not inconsistent with this chapter which immediately prior to its reorganization under this chapter controlled the proceedings of the council of the city, including, without limitation, procedure for the adoption, enactment, and publication of ordinances and resolutions, shall govern the proceedings of its board.

History. Acts 1921, No. 99, § 8; Pope's Dig., § 10096; Acts 1957, No. 8, § 6; 1965, No. 6, § 1; A.S.A. 1947, § 19-708.

14-47-124. Initiative and referendum.

  1. The initiative and referendum laws of this state are applicable to cities reorganized under this chapter.
  2. The number of signatures required upon any petition shall be computed upon the highest vote cast at the preceding general election for any position on the board of directors of the municipality.
  3. Except for a municipal referendum petition concerning a municipal bond, a sponsor shall be given sixty (60) days to circulate a municipal referendum petition.

History. Acts 1921, No. 99, § 17; Pope's Dig., § 10105; Acts 1957, No. 8, § 11; A.S.A. 1947, § 19-717; Acts 2015, No. 1093, § 1.

Amendments. The 2015 amendment added (c).

Case Notes

Constitutionality.

This section is not unconstitutional as a violation of Ark. Const. Amend 7. Czech v. Munson, 280 Ark. 219, 656 S.W.2d 696 (1983).

Applicability.

Sections 14-47-124 and 14-55-304 dictate a deadline within which to circulate a referendum petition, not file a referendum petition with the city clerk, and the statutes do not identify when the time commences; the statutes address the circulation of referendum petitions, not the filing of referendum petitions. Pritchett v. Spicer, 2017 Ark. 82, 513 S.W.3d 252 (2017).

Sections 14-47-124 and 14-55-304 did not make the referendum petition timely because the city set the deadline at 30 days, which comported with Ark. Const. Amend 7 (which amended Ark. Const., Art. 1, § 5); to the extent that a municipality enacts measures that comport with Amendment 7, then those measures control. Pritchett v. Spicer, 2017 Ark. 82, 513 S.W.3d 252 (2017).

Signatures.

Where city clerk refused to accept referendum petition that had less than the minimum required number of signatures and complaint was filed in chancery court by proponents of petition asking that this section be declared unconstitutional and that the clerk be ordered to accept the petition, motion to dismiss complaint should have been granted, since complaint did not state a cause of action. Czech v. Munson, 280 Ark. 219, 656 S.W.2d 696 (1983).

Cited: Moorman v. Priest, 310 Ark. 525, 837 S.W.2d 886 (1992).

14-47-125. Budget and appropriations.

  1. The approval by the board of directors of the budget shall amount to an appropriation for the purposes of the budget of the funds which are lawfully applicable to the different items therein contained.
  2. The board may alter or revise the budget from time to time, and unpledged funds appropriated by the board for any specific purpose may be appropriated by subsequent action of the board to another purpose, subject to the following exceptions:
    1. Funds resulting from taxes levied under statute or ordinance for a specific purpose may not be diverted to another purpose; and
    2. Appropriated funds may not be diverted to another purpose where any creditor of the municipality would be prejudiced thereby.

History. Acts 1921, No. 99, § 16; 1957, No. 8, § 10; A.S.A. 1947, § 19-716.

Case Notes

Cited: Prismo Universal Corp. v. City of Little Rock, 251 Ark. 326, 472 S.W.2d 96 (1971).

14-47-126. Annual audit.

The board of directors shall be obligated to have the financial affairs of the city audited annually by the Division of Legislative Audit of the State of Arkansas or by an independent certified public accountant who is not otherwise in the service of the city.

History. Acts 1921, No. 99, § 16; 1957, No. 8, § 10; A.S.A. 1947, § 19-716; Acts 2011, No. 623, § 1.

Amendments. The 2011 amendment inserted “the Division of Legislative Audit of the State of Arkansas or by.”

Case Notes

Cited: Prismo Universal Corp. v. City of Little Rock, 251 Ark. 326, 472 S.W.2d 96 (1971).

14-47-127. Civil service plans.

  1. If, on the effective date of the reorganization of any city under this chapter, a civil service plan for any municipal employees or officers shall be in effect in the city, reorganization under this chapter shall not terminate or otherwise impair the civil service plan. That plan shall remain in full force and effect, subject to § 14-47-131, following the reorganization under this chapter.
  2. The municipal civil service plans made available under the provisions of § 14-49-101 et seq., § 14-50-101 et seq., and § 14-51-101 et seq. may be adopted, subject to § 14-47-131, by any city reorganized under this chapter.

History. Acts 1957, No. 8, § 13; A.S.A. 1947, § 19-720.1.

Publisher's Notes. The former last sentence of this section provided that, inasmuch as civil service programs are made available under the statutes enumerated to cities organized under this chapter, Acts 1921, No. 99, § 20, providing for a civil service commission, was repealed.

14-47-128. Deferred compensation agreements.

  1. Any city in the State of Arkansas organized and operating under a management form of municipal government is authorized and empowered to enter into a deferred compensation agreement with any employee of the city for the purpose of deferring payment of any portion of the employee's salary or income and to deposit the deferred compensation funds with a third party, agreed to in writing by the employee, in trust, with directions that the funds be paid to the employee as authorized by the deferred compensation agreement.
  2. For the purposes of this section, a “deferred compensation agreement” is any agreement approved by the city for its employees and executed by an employee of the city, the city, and a third party, as trustee, chosen by the employee, where the third party agrees to pay a periodic income to the employee in the event of retirement or disability or to the employee's beneficiary in the event of death.
  3. Deferred compensation funds deposited with a third party trustee as provided for in this section may be invested and reinvested by the trustee in any manner which, in its sole discretion, it deems desirable, notwithstanding legal limitations on the investment of public funds as provided for by the laws of the State of Arkansas.

History. Acts 1975, No. 874, §§ 1-3; A.S.A. 1047, §§ 19-736 — 19-738.

14-47-129. Dependents of killed police officer or firefighter.

  1. Whenever a police officer or firefighter of the city is killed in the actual performance of his or her official duties, the board of directors shall cause to be set aside for the use and benefit of his or her spouse and children or others necessarily dependent upon him or her for their support, if they survive him or her, the sum of one thousand dollars ($1,000).
  2. This sum shall be paid in installments as shall be required and, in the judgment of the boards, as shall be deemed advisable.

History. Acts 1921, No. 99, § 30; Pope's Dig., § 10118; A.S.A. 1947, § 19-728.

14-47-130. Public health jurisdiction.

  1. The board of directors shall have power to pass such ordinances and to make and enforce such rules and regulations as shall be necessary to promote the public health and to prevent and control disease.
  2. Their jurisdiction in all matters pertaining to health and sanitation, and for purposes of quarantine, shall extend five (5) miles beyond the city limits.

History. Acts 1921, No. 99, § 21; Pope's Dig., § 10109; A.S.A. 1947, § 19-721.

14-47-131. Creation of new departments, etc.

  1. The board of directors may from time to time by ordinance:
    1. Create any new municipal:
      1. Department;
      2. Office;
      3. Employment;
      4. Board;
      5. Authority;
      6. Commission; or
      7. Agency;
      1. Appoint the personnel to serve in the department, office, employment, board, authority, commission, or agency.
      2. However, the appointment of personnel shall be by the mayor if the mayor has appointment power pursuant to § 14-47-108(a)(2)(E);
    2. Fix the term of employment and compensation of each appointee; and
    3. Specify whether each appointee shall or shall not be subject to the city's civil service or merit system.
    1. By ordinance, the board also, in the exercise of its discretion, may consolidate the office of city treasurer with the office of city clerk or such other office or position as the board, by ordinance, may charge with the responsibility of administering the financial affairs of the city.
    2. The board may:
      1. Delegate all of the duties of the city treasurer to the person holding that office or position in the city;
      2. Fill the consolidated office by appointment;
      3. Fix the term and compensation of the appointee; and
      4. Specify whether the appointee shall be subject to the city's civil service or merit system.

History. Acts 1921, No. 99, § 16; 1957, No. 8, § 10; 1959, No. 50, § 1; A.S.A. 1947, § 19-716; Acts 2001, No. 1473, § 4; 2019, No. 383, § 10.

Amendments. The 2019 amendment substituted “§ 14-47-108(a)(2)(E)” for “§ 14-47-108(a)(2)(C)” in (a)(2)(B).

Case Notes

Cited: Prismo Universal Corp. v. City of Little Rock, 251 Ark. 326, 472 S.W.2d 96 (1971).

14-47-132. Vacancy on municipal board, etc.

  1. Any vacancy on any municipal board or commission of any city of the first class having a population of fewer than fifty thousand (50,000) and having a city manager form of government shall be filled by a majority vote of the board of directors of the city or by the mayor, if the mayor has appointment power pursuant to § 14-47-108(a)(2)(E).
    1. The provisions of this section shall apply to all existing boards and commissions and to all boards and commissions hereafter established in which vacancies are filled by the remaining members of the board or commission or by the city manager.
    2. The provisions of this section shall not be applicable to any Arkansas city which is divided by a state line from an incorporated city or town in an adjoining state.

History. Acts 1971, No. 74, §§ 1, 2; A.S.A. 1947, §§ 19-734, 19-735; Acts 2001, No. 1473, § 5; 2019, No. 383, § 11.

Amendments. The 2019 amendment substituted “§ 14-47-108(a)(2)(E)” for “§ 14-47-108(a)(2)(C)” in (a).

14-47-133. Appointees generally.

  1. Subject to the exceptions contained in § 14-47-108, every person appointed by the board of directors or by the mayor, if authorized as provided in § 14-47-108(a)(2)(E), to any municipal office, employment, or position or to membership on any board, authority, or commission shall serve for such time and shall receive such compensation as the board of directors may fix and determine by ordinance.
  2. This section is applicable even in respect to offices and employments which, under statutes applicable to the mayor-council form of government, were held for a fixed term or on a salary basis fixed by statute.

History. Acts 1921, No. 99, § 16; 1957, No. 8, § 10; A.S.A. 1947, § 19-716; Acts 2001, No. 1473, § 6; 2017, No. 878, § 8; 2019, No. 383, § 12.

Amendments. The 2017 amendment, in (b), substituted “is applicable” for “shall be applicable”, and substituted “mayor-council” for “aldermanic”.

The 2019 amendment substituted “§ 14-47-108(a)(2)(E)” for “§ 14-47-108(a)(2)(C)” in (a).

Case Notes

Cited: Prismo Universal Corp. v. City of Little Rock, 251 Ark. 326, 472 S.W.2d 96 (1971).

14-47-134. Qualifications of appointees.

      1. In the exercise by the board of directors of its authority in respect to the filling of vacancies in executive positions and memberships on municipal boards, authorities, and commissions, only those qualified electors of the city found by the directors to possess the necessary qualifications shall be appointed or confirmed.
      2. Provided, a board of directors may appoint, at its discretion, persons who reside outside the city to museum boards and commissions.
    1. In filling vacancies on any municipal board, authority, or commission, unless the statute applicable to the position forbids the appointment thereto of a city employee, the city manager, if otherwise qualified, shall be an eligible appointee.
    2. The city manager, however, shall not be, ex officio, a member of any municipal board, authority, or commission.

History. Acts 1921, No. 99, § 3; 1957, No. 8, § 3; 1967, No. 165, § 1; A.S.A. 1947, § 19-703; Acts 1999, No. 1295, § 2.

A.C.R.C. Notes. Acts 1999, No. 1295, § 1, provided:

“Legislative Findings. The current Arkansas law concerning qualifications for appointment to municipal boards, authorities, and commissions in cities operated under the city manager form of government limits appointment, with one (1) exception, to qualified electors of the city. However, museums attract many visitors from outside the city and develop a statewide utilization in addition to the local use. The appointment of persons who reside outside the city to these museum boards and commissions would enhance financial support for the local facility and increase daily attendance. It is thus appropriate in certain circumstances, in the sound discretion of the city board of directors, to provide for the appointment of persons who reside outside the city limits to such museum boards and commissions.”

14-47-135. Relations barred from employment.

No person shall hold an appointive position or employment in the pay of the city if that person is related by blood or marriage in the third degree either to a member of the board of directors or to the city manager. Provided, however, this prohibition shall not prevent a person who holds an appointive or employment position with the city at the time the person's relative becomes city manager or a member of the board of directors from continuing in that position or employment.

History. Acts 1921, No. 99, § 32; Pope's Dig., § 10120; A.S.A. 1947, § 19-730; Acts 1993, No. 117, § 1.

14-47-136. Bond of officers and employees.

All officers and employees of a city reorganized under this chapter with the exception of the city manager, whose bond requirement is controlled by § 14-47-119, shall be required to make bond in such amount, on such form, and with such security as may meet the approval of the board of directors.

History. Acts 1957, No. 8, § 20; A.S.A. 1947, § 19-729.

Cross References. Self-Insured Fidelity Bond Program, § 21-2-701 et seq.

14-47-137. Prohibited actions by officers or employees.

    1. An officer or employee elected or appointed in any city shall not be interested, directly or indirectly, in any contract or job for work or materials, or the profits, or service to be furnished or performed for the city unless the board of directors of the city has enacted an ordinance specifically permitting an officer or employee to conduct business with the city and prescribing the extent of this authority.
    2. This prohibition shall not apply to contracts for the furnishing of supplies, equipment, or services to be performed for a municipality by a corporation in which an officer does not hold any executive or managerial office or by a corporation in which a controlling interest is held by stockholders who are not officers or employees.
    3. This prohibition shall not apply to contracts for the furnishing of supplies, equipment, or services to be performed for a municipality by a volunteer who has been appointed to a municipal board, municipal commission, or municipal task force.
    1. An officer or employee shall not accept or receive, directly or indirectly, any frank, pass, free ticket, or free service from any person, firm, or corporation operating within the territorial limits of the city any public transportation service, gas works, waterworks, electric light or power plant, heating plant, telegraph line or telephone exchange, or other business acting or operating under a public franchise of the city; nor shall any officer or employee accept or receive, directly or indirectly, from any person, firm, or corporation, or its agents, any other service upon terms more favorable than those granted to the public generally.
    2. The prohibition of free transportation shall not apply to police officers or firefighters in uniform, nor shall any free service to city officials heretofore provided by franchise or ordinance be affected by this subsection.
  1. Any person violating the provisions of this section shall be guilty of a misdemeanor and fined in a sum of not less than two hundred fifty dollars ($250) nor more than five thousand dollars ($5,000), and every such contract or agreement shall be void.

History. Acts 1921, No. 99, § 16; Pope's Dig., § 10104; Acts 1957, No. 8, § 10; 1983, No. 650, § 2; A.S.A. 1947, § 19-716; Acts 2011, No. 801, § 1.

Amendments. The 2011 amendment added (a)(3).

Research References

Ark. L. Rev.

Official misconduct under the Arkansas Criminal Code, 30 Ark. L. Rev. 160.

Case Notes

Cited: Prismo Universal Corp. v. City of Little Rock, 251 Ark. 326, 472 S.W.2d 96 (1971).

14-47-138. Competitive bidding required.

    1. Before making a purchase of or contract for supplies, materials, or equipment and before obligating the city under a contract for the performance of services or for the construction of municipal improvements in which the anticipated cost to the city of the transaction exceeds the maximum amount established by the board of directors under the authority of § 14-47-120, opportunity for competitive bidding shall be given under such rules and regulations as the board may prescribe by ordinance, and the contract shall be consummated only on a bid approved by the city manager and by the board.
    2. Competitive bids may be accepted in the form of a written bid or by electronic media.
  1. The board, by ordinance, may waive the requirement of competitive bidding in exceptional situations where this procedure is not feasible, but lacking such exceptional situations, the board may not except any particular contract, purchase, or sale from the requirement of competitive bidding.
  2. All purchase and sale records of the city shall be open to public inspection.

History. Acts 1921, No. 99, § 16; 1957, No. 8, § 10; A.S.A. 1947, § 19-716; Acts 2017, No. 170, § 1.

Amendments. The 2017 amendment added (a)(2) and made stylistic changes.

Case Notes

In General.

A city is required to solicit bids for all contracts except where there is an affirmative showing, by enactment of a separate ordinance, that the solicitation of bids is not feasible or practical. Klinger v. City of Fayetteville, 293 Ark. 128, 732 S.W.2d 859 (1987).

Damages.

Violation of this section did not give rise to a claim for damages. Klinger v. City of Fayetteville, 297 Ark. 385, 762 S.W.2d 388 (1988).

Professional Services.

Contracts for professional services are not exempt from the competitive bidding requirements of § 14-58-303 or this section. Klinger v. City of Fayetteville, 293 Ark. 128, 732 S.W.2d 859 (1987).

Cited: Prismo Universal Corp. v. City of Little Rock, 251 Ark. 326, 472 S.W.2d 96 (1971).

14-47-139. Public utility franchises, etc.

Every ordinance or resolution granting any public utility franchise, or granting the right to occupy the streets, highways, bridges, or other public places in the city for any purpose shall be completed in the form in which it is finally passed and remain on file with the city clerk for public inspection at least one (1) week before its final passage or adoption.

History. Acts 1921, No. 99, § 15; Pope's Dig., § 10103; Acts 1957, No. 8, § 9; A.S.A. 1947, § 19-715.

14-47-140. Powers and duties of mayor.

    1. Any municipality organized and operating under the city manager form of government may authorize the mayor of the municipality to have the following duties and powers by ordinance or by a majority of the qualified electors of the municipality by petition:
        1. The power to veto an ordinance, a resolution, or an order adopted by the municipal board of directors.
          1. The municipal board of directors may override the veto by a two-thirds vote of the number of members of the board.
          2. The mayor shall be entitled to vote only in case of a tie vote, and his or her presence may be counted to establish a quorum for the conduct of business;
      1. The power to appoint, subject to confirmation by a majority of the members of the municipal board of directors, persons to fill vacancies on any board, authority, or commission of the municipality;
        1. The power to hire the city manager and to designate the city manager to serve in the mayor's stead on any board or commission that requires the service of the chief executive officer of the city.
        2. The power to hire the city manager under subdivision (a)(1)(C)(i) of this section is subject to:
          1. The approval of a majority of the members of the municipal board of directors; or
          2. Override by a two-thirds vote of the members of the municipal board of directors;
      2. The power to remove the city manager, subject to:
        1. The approval of a majority of the members of the municipal board of directors; or
        2. Override by a two-thirds vote of the members of the municipal board of directors;
      3. The power to prepare and submit to the municipal board of directors for its approval the annual municipal budget;
      4. The power to hire the city attorney, subject to:
        1. The approval of a majority of the members of the municipal board of directors; or
        2. Override by a two-thirds vote of the members of the municipal board of directors; and
      5. The power to remove the city attorney, subject to:
        1. The approval of a majority of the members of the municipal board of directors; or
        2. Override by a two-thirds vote of the members of the municipal board of directors.
    2. If the ordinance under subdivision (a)(1) of this section is adopted by a two-thirds vote of the members of the municipal board of directors or the petition under subdivision (a)(1) of this section is approved by a majority of the qualified electors of the municipality, the mayor shall have the powers and duties authorized under subdivision (a)(1) of this section.
      1. Subdivisions (a)(1) and (2) of this section do not apply to offices and employments controlled by any civil service or merit plan lawfully in effect in the municipality.
      2. In municipalities that maintain district courts, the district court judge and the district court clerk shall be elected and appointed in the manner prescribed by law.
    3. A mayor who has the duties and powers authorized under subdivision (a)(1) of this section shall be compensated with salary and benefits comparable to the salary and benefits of an official or employee of the municipality with similar executive duties and powers.
  1. If called by petition of the qualified electors of the municipality, the special election under this section shall comply with the following:
    1. A petition under subsection (a) of this section shall be filed with the clerk of the city;
    2. Each signature on a petition filed shall have been signed within one hundred eighty (180) days prior to filing;
    3. The clerk of the city shall note on the petition the date and time filed; and
    4. If a petition contains the signatures of electors equal in number to fifteen percent (15%) of the number of ballots cast for the mayor in the last mayoral election, or if the mayor is not directly elected, for the director position receiving the highest number of votes in the last general election, then the clerk of the city shall deliver the petitions to the mayor who shall by proclamation submit the question to the electors at a special election, provided that:
      1. The clerk of the city shall verify the number of signatures and the authenticity of the signatures on the petition within ten (10) days of the date they are filed;
      2. If there are insufficient signatures on the petition, the petitioners shall not receive an extension for the petition; and
      3. If there is a sufficient number of signatures on the petition but the clerk of the city is unable to verify the required number of signatures and the authenticity of the signatures, then the petitioners shall be given ten (10) days to provide a sufficient number of verified signatures.
  2. The proclamation submitting the question under subsection (a) of this section to the qualified electors of the municipality shall be issued within three (3) working days of the date the clerk of the city verifies the number of signatures on the petition or within three (3) working days of the date a referendum ordinance is passed by the municipal board of directors.
  3. The special election shall be held not less than thirty (30) days nor more than one hundred twenty (120) days after the proclamation.
    1. If two (2) or more groups file petitions seeking a special election under subsection (a) of this section and the petition filed first is declared insufficient, then the city clerk shall determine the sufficiency of the petition that was filed next in time.
    2. Upon a declaration that a petition is sufficient and first in time, then a petition filed after the first sufficient petition and before the special election shall be deemed moot and shall be destroyed.
  4. If an election held under subsection (a) of this section results in the adoption of the question under subsection (a) of this section, then the adopted question shall not be presented again to the electors for a period of four (4) years from the date of the election.
  5. If an election held under subsection (a) of this section results in the failure to adopt the question under subsection (a) of this section, then the failed question shall not be presented again to the electors for a period of two (2) years from the date of the election.
  6. Notice of the election shall be given by the clerk of the city by one (1) publication in a newspaper having general circulation within the city not less than ten (10) calendar days before the election.
  7. Within thirty (30) calendar days after completion of the tabulation of the votes, the mayor of the city shall proclaim the results of the election by issuing a proclamation and publishing it one (1) time in a newspaper having general circulation within the city.
  8. The results of the election as stated in the proclamation shall be conclusive unless a suit contesting the proclamation is filed in the circuit court in the county where the election took place within thirty (30) calendar days after the date of publication of the proclamation.
  9. If the question under subsection (a) of this section is approved at an election as provided in this section, that approval shall be final and shall continue in effect thereafter as long as authorized.
  10. The mayor shall continue to be selected under § 14-61-111.
  11. At the time of a transition after an election as provided in this section, the current mayor shall continue to serve until the end of his or her elected term.

History. Acts 2007, No. 689, § 1; 2011, No. 608, § 1; 2017, No. 260, § 7; 2019, No. 978, § 1.

A.C.R.C. Notes. Ark. Const. Amend. 80, § 19(B)(2) provided: “District Courts shall have the jurisdiction vested in Municipal Courts, Corporation Courts, Police Courts, Justice of the Peace Courts, and Courts of Common Pleas at the time this Amendment takes effect. District Courts shall assume the jurisdiction of these courts of limited jurisdiction and other jurisdiction conferred in this Amendment on January 1, 2005. City Courts shall continue in existence after the effective date of this Amendment unless such City Court is abolished by the governing body of the city or by appropriate action of the General Assembly. Immediately upon abolition of such City Court, the jurisdiction of the City Court shall vest in the nearest District Court in the county where the city is located.”

Amendments. The 2011 amendment inserted “municipal” in (a)(1), (a)(1)(A)(ii) (a) , (a)(1)(C), (D), (F) and (G); and added “and to designate the city manager to serve in the mayor's stead on any board or commission that requires the service of the chief executive officer of the city” at the end of (a)(1)(C).

The 2017 amendment substituted “district courts, the district court judge and the district court clerk” for “municipal courts or police courts, the municipal judge, police judge, and the clerk of both courts” in (a)(3)(B).

The 2019 amendment, in (a)(1), substituted “powers by ordinance” for “powers if approved by the qualified electors of the municipality at an election called by the municipal board of directors by referendum”, inserted “a majority of”, and substituted “petition” for “initiative”; inserted “municipal” in (a)(1)(A)(i), (a)(1)(B), (a)(1)(E); added the (a)(1)(C)(i) designation; deleted “subject to the approval of a majority of members of the municipal board of directors” following the first occurrence of “city manager”; added (a)(1)(C)(ii); deleted “the approval” following “subject to” in the introductory languages of (a)(1)(D) and (a)(1)(F); added the (a)(1)(D)(i) designation; added (a)(1)(D)(ii); added the (a)(1)(F)(i) designation; in (a)(1)(F)(i) and (a)(1)(G)(i), inserted “The approval” and inserted “the” preceding “members”; added (a)(1)(F)(ii); added (a)(1)(G)(ii); inserted “the ordinance under subdivision (a)(1) of this section is adopted by a two-thirds vote of the members of the municipal board of directors or” in (a)(2); substituted “section do not” for “section shall not” in (a)(3)(A); substituted “petition” for “initiative” in the introductory language of (b); deleted former (e)(1); redesignated (e)(2) as (e)(1) and redesignated the remaining subdivision accordingly; and made stylistic changes.

Chapter 48 City Administrator Form of Municipal Government

Effective Dates. Acts 1967, No. 36, § 20: Feb. 2, 1967. Emergency clause provided: “It has been found, and is hereby declared, that the City Administrator form of city government authorized under this Act provides an improved and superior method for the administration and government of cities of the first and second class; that many Arkansas cities would be greatly benefited by immediately changing from the commission, aldermanic or City Manager to the City Administrator form of government; that the passage of this Act will make available to cities of the first and second class whose present government is inadequate or inefficient, an opportunity to reorganize hereunder and thereby greatly improve the efficiency and economy of their respective municipal governments. Therefore, an emergency is declared to exist and, this Act being necessary for the preservation of the public peace, health and safety, shall take effect and be in force from and after the date of its passage and approval.”

Acts 1991, No. 49, § 7: Feb. 7, 1991. Emergency clause provided: “It is hereby found and determined by the General Assembly that the present law pertaining to the recall of municipal officials is confusing and conficting; that this Act clarifies the law; and that clarification should go into effect immediately. Therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 2003, No. 1185, § 32: Jan. 1, 2005, by its own terms.

Acts 2003, No. 1185, § 33: Jan. 1, 2005, by its own terms.

Acts 2009, No. 1480, § 117: Apr. 10, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act makes various revisions to Arkansas election laws that are designed to improve the administration of elections and special elections and that these revisions should be implemented as soon as possible so that the citizens of this state may benefit from improved election procedures. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Case Notes

Cited: City of Fort Smith v. Driggers, 294 Ark. 311, 742 S.W.2d 921 (1988).

14-48-101. Applicability.

  1. Any municipality of this state having a population of two thousand five hundred (2,500) or more inhabitants, according to the most recent federal census, or any city of the first class may call and hold an election on the question of becoming organized under, and governed by, the city administrator form of government authorized in this chapter.
  2. Any such election shall be called and conducted in the manner provided in this chapter.

History. Acts 1967, No. 36, § 1; A.S.A. 1947, § 19-801.

14-48-102. Savings provisions.

  1. When a city effects a change of government under this chapter, it shall remain subject to and controlled by all laws, except those inconsistent with this chapter which on the effective date of the reorganization applied to or governed the city, including, without limiting the foregoing, the laws relating to improvement districts.
  2. The city, as reorganized, shall have all of the rights, powers, and authority which it had immediately prior to reorganization and shall also be entitled to exercise any right, power, or authority, except those inconsistent with the provisions of this chapter, which are permitted cities organized under any other form of government.
  3. In cities having the commission form of government immediately preceding the adoption of the city administrator form of government, the board of directors elected under the authority of this chapter may organize or reorganize by ordinance duly adopted any municipal board, commission, authority, agency, or department under the general laws of the state for municipalities having the mayor-council form of government. However, no reorganization shall be lawful which impairs the validity of existing contracts.
  4. All bylaws, ordinances, and resolutions lawfully passed and in force in the city under its former organization and not in conflict with this chapter shall remain in force until altered or repealed by the board elected under the authority of this chapter.
  5. The territorial limits of the city shall remain the same as under its former organization. All rights and property of every description which were vested in it shall remain unimpaired by the reorganization provided for in this chapter.
  6. No existing right or liability either in favor of or against the city or any agency thereof, including, without limiting the foregoing, improvement districts and no suit or prosecution of any kind shall be affected by the change unless otherwise provided for in this chapter.
  7. No valid pledge or mortgage of the revenues or property of the city or of any agency or instrumentality thereof or of any municipal improvement district shall be impaired by the reorganization.

History. Acts 1967, No. 36, § 7; A.S.A. 1947, § 19-807; Acts 2017, No. 878, § 9.

Amendments. The 2017 amendment, in the first sentence of (c), substituted “under” for “pursuant to the authority provided in” and substituted “mayor-council” for “mayor-aldermanic”.

Case Notes

Applicability.

City lost the protection of the saving clause when, at the time of the government reorganization, it promoted firemen in accordance with the law governing cities of the first class having a city administrator form of government contained in this chapter, and including § 14-51-301, which requires promotion solely on the basis of examination. City of Fort Smith v. Driggers, 305 Ark. 409, 808 S.W.2d 748 (1991).

Repeal.

No legislative intent found to repeal this section. City of Fort Smith v. Driggers, 294 Ark. 311, 742 S.W.2d 921 (1988).

14-48-103. Form of government.

The form of municipal government authorized by this chapter shall be known as the city administrator form of municipal government.

History. Acts 1967, No. 36, § 1; A.S.A. 1947, § 19-801.

14-48-104. Submission of governmental form question to electors.

  1. When petitions are filed with the county clerk containing the signatures of qualified electors of a municipality equal in number to fifteen percent (15%) of the aggregate number of votes cast at the preceding general municipal election for all candidates for mayor in cases in which a municipality operates under the mayor-council form of government or the commission form of government and, for all candidates for the office of director, then for the director position for which the greatest number of votes were cast in the case of a municipality operating under the city manager form of government, and the petition requests that an election be called to submit the proposition of organizing the municipality under the city administrator form of municipal government authorized by this chapter, then within ten (10) days after the filing of the petition, the county clerk shall certify to the Secretary of State the number of qualified electors whose signatures appear on the petitions.
  2. If the number of signatures certified by the clerk is equal to or greater than fifteen percent (15%) of the aggregate number of votes cast, as prescribed, the Secretary of State shall call by proclamation in accordance with § 7-11-201 et seq. a special election to be held not more than ninety (90) days from the date of the clerk's certification.
    1. The election shall be called to submit the proposition of organizing the municipality under the city administrator form of municipal government authorized by this chapter.
      1. The proclamation shall be published one (1) time at length in a newspaper having a general circulation in the municipality.
      2. Notice of the election shall be published in the newspaper one (1) time a week for two (2) weeks, with the first publication to be not less than fifteen (15) days before the date set for the election.
  3. At the election, the proposition shall be submitted to the electors in substantially the following form:
    1. The election shall be conducted, the votes canvassed, and the results declared in the same manner as is provided by law with respect to other city elections.
      1. The county board of election commissioners shall certify the results of the election to the Secretary of State.
      2. The result certified shall be conclusive and not subject to attack unless suit is brought to contest the certification within fifteen (15) days after such certification in the circuit court of the county in which the municipality is situated.
  4. If a majority of the votes cast at the election shall be in favor of the proposition and no suit is brought to contest the certification of the results of the election within the fifteen-day period after the certification by the election board, then, within five (5) days, the Secretary of State shall file certificates stating that the proposition was adopted with the county clerk of the county in which the municipality is situated.
  5. The cost of the election provided in this section shall be paid by the city.

“FOR the City Administrator form of government

AGAINST the City Administrator form of government

History. Acts 1967, No. 36, § 2; A.S.A. 1947, § 19-802; Acts 2005, No. 2145, § 34; 2007, No. 1049, § 53; 2009, No. 1480, § 71; 2017, No. 878, § 10.

Amendments. The 2009 amendment substituted “§ 7-11-201 et seq.” for “§ 7-5-103(b)” in (b).

The 2017 amendment, in (a), substituted “are filed” for “shall be filed”, substituted “cases in which” for “cases where”, and substituted “mayor-council” for “aldermanic”.

14-48-105. Procedure to change to another form of government.

  1. When the question of the adoption of the city administrator form of government is submitted to, and approved by, a majority of the qualified electors of a municipality voting on the issue, the question of changing to another form of government shall not again be submitted to the electors of that municipality for a period of four (4) years.
        1. After the expiration of four (4) years from the date on which the first board of directors and mayor take office in a city organized under this chapter, a petition signed by electors equal in number to fifteen percent (15%) of the aggregate number of ballots cast for all candidates for mayor in the preceding general election may be presented to the mayor, calling for an election to consider any other form of municipal government authorized by the laws of this state.
        2. As an alternative to the petition presented to the mayor by electors under subdivision (b)(1)(A)(i) of this section, a petition may be presented to the mayor by the board of directors by ordinance.
      1. At the time the reorganization is effective under this chapter:
        1. The mayor shall continue in office until the remainder of his or her term of office; and
        2. The member of the city board of directors shall become a member of the governing body and shall continue in office until the remainder of his or her term of office.
        1. Upon the receipt of a petition under subdivision (b)(1)(A) of this section, the mayor by proclamation in accordance with § 7-11-201 et seq. shall submit the question of organization of the city under the form of government stated in the petition at a special election to be held at a time specified therein.
        2. The proclamation shall be published one (1) time at length in a newspaper having a general circulation in the city.
        1. Notice of the election shall be published one (1) time a week for two (2) weeks in a newspaper having a general circulation in the city, the first publication to be not less than fifteen (15) days before the date set for the election.
        2. No other notice of the election is necessary.
  2. At the special election for the submission or resubmission of the proposition, the ballots shall read:
    1. The election shall be conducted, the votes canvassed, and the results declared in the same manner as provided by law in respect to other city elections.
      1. The county board of election commissioners shall certify the results to the mayor.
      2. The results shall be conclusive and not subject to attack unless suit is brought in the circuit court of the county in which the city is situated to contest the certification within thirty (30) days after certification by the county board of election commissioners.
  3. If no suit is brought to contest the certification of the results of the election on the question of the form of government within the thirty-day period after certification, the mayor shall file certificates stating that the proposition was adopted with the Secretary of State and county clerk of the county in which the city is situated.
      1. If the majority of the votes cast on that issue shall be in favor of the adoption, the city shall thereupon proceed to the election of all of the city officials required by the laws governing the form of government adopted.
      2. The election of the city officials shall be held at the next time provided for the election of city officials under the statutes then in effect pertaining to the form of government adopted for the class of cities to which the particular city belongs, and all laws pertaining to the form of government adopted for such class of cities shall apply.
        1. On the date prescribed by these laws when newly elected city officials take office, the term of office of all members of the board and mayor shall terminate and the transition to the form of government adopted shall be completed.
        2. If under the form of government adopted the terms of the officials elected are staggered, then determination shall be made by lot, and the length of the terms fixed accordingly.
    1. The provisions of this section for converting to another form of government shall be in addition to the right to change to any other form of municipal government that may exist under present law.
  4. If the plan is not adopted by a majority of the voters voting upon that issue at the special election called, the question of adopting that same form of government shall not be resubmitted to the voters of that city for adoption within four (4) years thereafter. At that time the question may be resubmitted upon the presentation to the mayor of a petition signed by electors equal in number to fifteen percent (15%) of the aggregate number of votes cast for all candidates for mayor in the preceding general election.
    1. When a municipality elects to adopt any other form of government in the manner provided in this section, the question of reorganizing the municipality under the city administrator form shall not be submitted to the electors within a period of four (4) years, and thereafter, only in the manner provided in § 14-48-104.
    2. If the qualified electors of the municipality do not approve the organization of the municipality under the city administrator form at the election, the proposition shall not again be submitted to the electors of the city for a period of four (4) years, and then, only in the manner provided in § 14-48-104.

“FOR the proposition to organize this City under the form of government

AGAINST the proposition to organize this City under the form of government

The name of the form of government specified in the petition for election shall be printed on the ballot in lieu of the blank lines appearing above.

History. Acts 1967, No. 36, § 18; A.S.A. 1947, § 19-818; Acts 2005, No. 2145, § 35; 2007, No. 1049, § 54; 2009, No. 1480, § 72; 2019, No. 1092, § 4.

Amendments. The 2009 amendment substituted “§ 7-11-201 et seq.” for “§ 7-5-103(b)” in (b)(2)(A)(i).

The 2019 amendment added the (b)(1)(A)(i) designation; added (b)(1)(A)(ii) and (b)(1)(B); substituted “Upon the receipt of a petition under this subdivision (b)(1)(A) of this section” for “Whereupon” in (b)(2)(A)(i); substituted “a newspaper” for “some newspaper” twice in (b)(2); and substituted “is necessary” for “shall be necessary” in (b)(2)(B)(ii).

14-48-106. Effect of reorganization.

    1. When, in connection with the reorganization of a municipality under this chapter, an initial board of directors shall be elected, the reorganization shall be deemed to be effective as of the time when the respective terms of office of the directors commence.
    2. Concurrently with the commencement of the terms of the directors:
      1. The office of mayor and the offices of the members of the city council in the case of the mayor-council form of government, the office of mayor and the offices of the other members of the board of commissioners in the case of the commission form of government, and the office of the mayor, the board of directors, and the city manager in the case of the city manager form of government shall become vacant;
      2. The statutory term of office of the city treasurer, city clerk, city attorney, city marshal, and recorder in cities of the second class shall cease and terminate. The incumbent of each of these offices shall remain in office subject to removal and replacement at any time by the city administrator, with the approval of the board of directors; and
        1. Every other executive officer or executive employee of the city, including, without limiting the foregoing, the city purchasing agent and the members, hereinafter called “board members”, of every other municipal board, authority, or commission, whether such office, employment, board, authority, or commission exists under statute or under any ordinance or resolution, whose official term of office or employment is fixed by statute, shall serve until the expiration of the term so fixed. Any of the executive officers or executive employees of the city and members of municipal boards, authorities, or commissions whose respective term of office is fixed by ordinance or resolution shall continue to serve until the expiration of the term so fixed or until the term is modified by ordinance or resolution. Thereafter, the position held by any such executive officer, employee, or board member shall be filled through appointment by the city administrator, with the approval of the board of directors, and the appointees shall hold their position at the will of the city administrator and the board of directors. However, definite terms may be provided for board members by ordinance.
        2. Every executive officer, employee, or board member serving on the effective date of the reorganization whose office, employment, or board membership carries no fixed term created either by statute, ordinance, or resolution shall be subject to removal and replacement at any time by the board of directors.
        3. The provisions of subdivision (a)(2)(C) of this section providing that the term of office of board members shall be held at the will of the city administrator and the board of directors shall have no application to the statutory term, if any, of the boards, authorities, or commissions listed in subdivision (b)(2)(A) of this section.
    1. Reorganization under this chapter shall not affect any civil service plan in effect for any city employees at the time of reorganization, except that commissioners, as their terms expire, shall thereafter be appointed by the city administrator, with the approval of the board of directors, and any city organized under this chapter which has no civil service plan at the time of reorganization may adopt a plan pursuant to the provisions of any statute under which it otherwise qualifies.
      1. Reorganization under this chapter shall not operate to abolish or terminate any of the following listed departments, commissions, authorities, or agencies of the city government:
        1. Waterworks commission existing under §§ 14-234-301 — 14-234-309;
        2. Sewer committee existing under § 14-235-206;
        3. Airport commission existing under § 14-359-103;
        4. Housing authority existing under § 14-169-208;
        5. Any board of civil service commissioners serving under § 14-49-201 et seq., § 14-50-201 et seq., or § 14-51-201 et seq.;
        6. Auditorium commission existing under § 14-141-104;
        7. Library trustees existing under § 13-2-502;
        8. City planning commission existing under § 14-56-404; and
        9. Parking authority existing under § 14-304-101 et seq.
        1. The reorganization shall not terminate, impair, or otherwise affect the official status, statutory tenure of office, if any, or powers of the persons serving as commissioners, committeemen, trustees, or members of any of the boards, authorities, commissions, agencies, or departments listed in subdivision (b)(2)(A) of this section, except as specifically provided by this chapter.
        2. Whether consisting of the power to appoint or the power to confirm appointments or nominations, such power as may be vested in the mayor and the municipal council or in the mayor and other municipal legislative body immediately prior to the reorganization in respect to the filling of vacancies on the boards, authorities, commissions, agencies, or departments listed in subdivision (b)(2)(A) of this section shall be transferred to, and vested in, the city administrator, with the approval of the board of directors. Each appointee designated by the city administrator, with the approval of the board of directors, to fill a vacancy on any of these bodies shall serve for the statutory term, if any, applicable to the vacancy or, if there is no statutory term, shall serve at the will of the board. The boards, authorities, commissions, agencies, or departments listed in subdivision (b)(2)(A) of this section may be required by the board of directors, by ordinance duly adopted, to purchase all vehicles, equipment, materials, supplies, and services through a central municipal purchasing agent or department. The boards, authorities, commissions, agencies, or departments may be required to adopt and conform to the city personnel policies duly adopted by ordinance or resolution, including, but not limited to, the amount and form of remuneration, job classification, and civil service plans.

History. Acts 1967, No. 36, § 7; A.S.A. 1947, § 19-807; Acts 2003, No. 1185, § 32; 2017, No. 878, § 11.

Amendments. The 2017 amendment substituted “mayor-council” for “mayor-aldermanic” in (a)(2)(A).

14-48-107. Division of city into wards.

    1. Following the adoption of the city administrator form of government in any city and prior to the special municipal election for the initial membership of the board of directors and the mayor, the governing body of the city, by ordinance, shall divide the city into four (4) wards with each ward being composed of contiguous territory and of substantially equal population and which shall be designated numbers one, two, three, and four.
    2. The designation of wards shall be made not more than twenty (20) days after the certification of results of the election to the Secretary of State.
    1. If the governing body of the city fails to act within the time prescribed, then any elector of the city may present to the judge of the circuit court for the county in which the city is situated a petition requesting a designation of wards and asking for the appointment of three (3) commissioners to act in relation thereto.
      1. Within five (5) days after receipt of the petition, the circuit judge shall appoint three (3) electors of the city to serve as a board of commissioners. It shall be this board's duty to divide the city into four (4) wards, with each ward being composed of contiguous territory and of substantially equal population, which shall be designated numbers one, two, three, and four.
        1. The board of commissioners, by majority action, shall make a report which shall designate the boundaries of the wards and then file the report with the city clerk within fifteen (15) days after the date of their appointment.
          1. If no report is filed within this time, that board of commissioners shall be automatically dissolved, and the circuit judge, upon the filing of a petition reciting the failure of the board to act, shall appoint a new board of commissioners for the same purpose, with the same authority, and with the same limitations.
          2. In the event of failure of the second board to act, the process may be continued until a report is filed.
            1. The board of directors of the city under the city administrator form of government shall review the apportionment among the wards after each federal census in the city or in the event there is an imbalance in population among the wards in excess of fifteen percent (15%).
              1. The board of directors may reapportion the wards to maintain substantially equal population in each ward whenever they deem necessary.
              2. In the event a redesignation of ward boundaries results in director number one, two, three, or four residing outside the boundary of the ward which he or she is representing, he or she shall nonetheless continue in office until his or her regular term expires.

History. Acts 1967, No. 36, § 3; A.S.A. 1947, § 19-803.

14-48-108. Calling of elections for directors and mayor.

    1. Within ten (10) days after the designation of the four (4) wards, the Secretary of State by proclamation in accordance with § 7-11-101 et seq. shall call special primary and general elections to be held in the municipality for the purpose of electing seven (7) directors and a mayor.
      1. The primary election shall be held in accordance with § 7-11-101 et seq.
      2. The special general election shall be held in accordance with § 7-11-101 et seq.
  1. These elections shall be called and conducted, and the results shall be determined and certified, as provided in § 14-48-109.

History. Acts 1967, No. 36, § 4; A.S.A. 1947, § 19-804; Acts 2005, No. 2145, § 36; 2007, No. 234, § 1; 2007, No. 1049, § 55; 2009, No. 1480, § 73.

Amendments. The 2009 amendment substituted “§ 7-11-101 et seq.” for “§ 7-5-103(a)” in three places in (a).

14-48-109. Election of directors and mayor — Oath.

  1. Candidates for the office of director and mayor shall be nominated and elected as follows:
        1. A special election for the election of the initial membership of the board of directors and mayor shall be called by the Secretary of State as provided in § 14-48-108.
        2. The proclamation shall be published in accordance with § 7-11-101 et seq.
        3. For the initial election of directors and mayor, any person desiring to become a candidate shall file within twenty (20) days following the date of the proclamation by the Secretary of State with the city clerk or recorder a statement of candidacy in the form and with the supporting signatures as provided in this section. In all other respects, the initial elections shall be governed by the provisions of this chapter for holding municipal elections.
        1. Special elections to fill any vacancy under § 14-48-115 shall be called through a resolution of the board.
        2. A proclamation of the election shall be signed by the mayor and published in accordance with § 7-11-101 et seq. in some newspaper having a bona fide circulation in the municipality;
      1. Candidates to be voted on at all elections to be held under the provisions of this chapter shall be nominated by primary election, and no names shall be placed upon the general election ballot except those selected in the manner prescribed in this chapter.
        1. The primary elections, other than the initial primary, for those nominations for offices to be filled at the municipal general election shall be held on the second Tuesday of August preceding the municipal general election.
          1. The elections shall be under the supervision of the county board of election commissioners, and the election judges and clerks appointed for the general election shall be the judges and clerks of the primary elections.
          2. Primary elections shall be held in the same places as are designated for the general election, so far as possible, and shall be conducted, so far as practicable, in the same manner as other elections under the laws of this state;
    1. Any person desiring to become a candidate for mayor or director shall file with the city clerk not less than seventy-five (75) days nor more than ninety (90) days prior to the primary election by 12:00 noon a statement of his or her candidacy in substantially the following form:
    2. The statement of candidacy and the petition for nomination supporting the candidacy of each candidate to be voted upon at any general or special election shall be filed with the city clerk or recorder not less than seventy-five (75) days nor more than ninety (90) days before the election by 12:00 noon;
    3. The name of each candidate shall be supported by a petition for nomination signed by at least fifty (50) qualified electors of the municipality requesting the candidacy of the candidate. The petition shall show the residence address of each signer and carry an affidavit signed by one (1) or more persons in which the affiant or affiants shall vouch for the eligibility of each signer of the petition. Each petition shall be substantially in the following form:
      1. A petition for nomination shall not show the name of more than one (1) candidate.
      2. The name of the candidate mentioned in each petition, together with a copy of the election proclamation if the election is a special election, shall be certified by the city clerk or recorder to the county board of election commissioners not less than seventy (70) days before the election unless the clerk or recorder finds that the petition fails to meet with the requirements of this chapter.
        1. Whether the names of the candidates so certified to the county board of election commissioners are to be submitted at a biennial general election or at a special election held on a different date, the county board of election commissioners shall have general supervision over the holding of each municipal election.
          1. In this connection, the election board shall post the nominations, print the ballots, establish the voting precincts, appoint the election judges and clerks, determine and certify the results of the election, and determine the election expense chargeable to the city, all in the manner prescribed by law in respect to general elections. It is the intention of this chapter that the general election machinery of this state shall be utilized in the holding of all general and special elections authorized under this chapter.
          2. The result of the election shall be certified by the election board to the city clerk or recorder;
    4. The names of all candidates at the election shall be printed upon the ballot in an order determined by draw. If more than two (2) candidates qualify for an office, the names of all candidates shall appear on the ballot at the primary election;
      1. If no candidate receives a majority of the votes cast in the primary, the two (2) candidates receiving the highest number of votes for mayor and for each director position to be filled shall be the nominees for those respective offices to be voted upon in the general election.
      2. If no more than two (2) persons qualify as candidates for the office of mayor or for any director position to be filled, no municipal primary election shall be held for these positions, and the names of the two (2) qualifying candidates for each office or position shall be placed upon the ballot at the municipal general election as the nominees for the respective positions. Primary elections shall be omitted in wards in which no primary contest is required.
      3. In any case in which only one (1) candidate shall have filed and qualified for the office of mayor or any director position, or if a candidate receives a clear majority of the votes cast in a primary election, that candidate shall be declared elected. The name of the person shall be certified as elected without the necessity of putting the person's name on the general municipal election ballot for the office; and
    5. Any candidate defeated at any municipal primary election or municipal general election may contest it in the manner provided by law for contesting other elections.
  2. Each member of the board of directors, before entering upon the discharge of his or her duties, shall take the oath of office required by Arkansas Constitution, Article 19, § 20.

“STATE OF ARKANSAS

COUNTY OF

I, , being first duly sworn, state that I reside at Street, City of , County and State aforesaid; that I am a qualified elector of said city and the ward in which I reside; that I am a candidate for nomination to the office of (Mayor) (Director) , to be voted upon at the primary election to be held on the day of , 20 , and I hereby request that my name be placed upon the official primary election ballot for nomination by such primary election for such office and I herewith deposit the sum of ten dollars ($10.00), the fee prescribed by law.”;

Click to view form.

“The undersigned, duly qualified electors of the City of , Arkansas, each signer hereof residing at the address set opposite his or her signature, hereby requests that the name of be placed on the ballot as a candidate for election to Position No. on the Board of Directors (or Mayor) of said City of at the election to be held in such city on the day of 20 We further state that we know said person to be a qualified elector of said city and a person of good moral character and qualified in our judgment for the duties of such office.”;

History. Acts 1967, No. 36, §§ 5, 9; 1971, No. 439, § 1; A.S.A. 1947, §§ 19-805, 19-809; Acts 1989, No. 347, §§ 2, 3; 1989, No. 905, § 7; 1997, No. 879, §§ 1, 2; 2005, No. 67, §§ 27, 28; 2005, No. 489, §§ 1, 2; 2007, No. 580, § 1; 2007, No. 1049, § 56; 2009, No. 1480, § 74; 2013, No. 313, §§ 1, 2.

Amendments. The 2009 amendment substituted “§ 7-11-101 et seq.” for “§ 7-5-103(a)” in (a)(1)(A)(ii) and (a)(1)(B)(ii).

The 2013 amendment substituted “seventy-five (75) days” for “seventy (70) days” in (a)(3) and (a)(4).

14-48-110. Board of directors and mayor generally.

    1. The seven (7) directors elected by a city reorganized under this chapter shall be known and designated as the board of directors of the city.
    2. The board of directors of the city shall constitute the legislative and executive body of the city, subject to the powers of the mayor in § 14-48-111, and shall be vested with all powers and authority which, immediately prior to the effective date of the reorganization, were vested under then-existing laws, ordinances, and resolutions in the governing body of the city and in its board of public affairs subject to the powers of the city administrator in § 14-48-117.
    3. Except when expressly permitted under this chapter, the mayor or director may not serve the city in any other capacity.
    1. For election purposes, the positions upon the board of directors shall be permanently designated as positions numbered “one”, “two”, “three”, “four”, “five”, “six”, and “seven”, respectively.
      1. Each candidate for election to membership on the board of directors of the city shall specify the position for which he or she is running.
      2. The electors shall vote separately on the candidates for each position, and the position sought by each candidate shall be shown on the ballot.
    1. Except in the instances in which the mayor and directors are elected at special elections as provided in §§ 14-48-108 and 14-48-109, the mayor and directors shall be elected at the general elections held biennially for the election of state and county offices.
    2. Each such general election shall be utilized for the election of successors to the mayor and to those directors whose terms expire on December 31 following the election.
    1. All primary, general, and special elections of the mayor and directors shall be nonpartisan, and the ballots shall show no party designation.
      1. In all primary, general, and special elections, each candidate for the office of mayor or director shall be elected by the electors of the city as follows:
        1. The persons elected to fill director positions one, two, three, and four, respectively, shall be qualified electors of the respective wards and shall be elected by the qualified electors of the respective wards; and
        2. The persons elected to fill the position of mayor and director positions five, six, and seven, respectively, shall be qualified electors of the city and shall be elected by the qualified electors of the entire city.
      2. Neither the mayor nor a director shall be prohibited from holding successive terms of office.
          1. The persons elected to fill director positions one, two, three, and four, respectively, shall continue to reside in the ward from which he or she was elected for the term for which he or she was elected.
          2. The persons elected to fill the position of mayor and director positions five, six, and seven, respectively, shall continue to reside in the city from which he or she was elected for the term for which he or she was elected.
        1. If a duly elected director shall cease to reside in the ward or the city from which he or she was elected, the director shall be disqualified to hold the office, and a vacancy shall exist that shall be filled as prescribed by law.
    1. The mayor and any director elected at a special election shall take office on the first Monday following the certification of his or her election, as required in this chapter.
    2. The mayor and any director elected at a general election shall take office on January 1 following his or her election.
    1. At any primary, general, or special election for the election of the mayor or any director, any adult person who has resided within the municipality for at least six (6) months and is qualified to vote at an election of county or state offices shall be deemed a qualified elector.
    2. Any person twenty-one (21) years of age or older possessing these same qualifications also shall be eligible to run for the office of mayor or director.
  1. When a city is reorganized under this chapter, the mayor and board of directors will be divided into two (2) classes, and the tenure of office of those in each class shall be as follows:
    1. Director positions one, two, three, and four shall be Class Number One. Class Number One directors shall serve until and including December 31 following the first general election held after their terms of office commence and until their successors have been elected and qualified. Thereafter, those in Class Number One shall serve four-year terms; and
    2. The mayor and director positions five, six, and seven shall be Class Number Two. Class Number Two directors shall serve until and including December 31 following the second general election held after their terms of office commence and until their successors have been elected and qualified. Thereafter, those in Class Number Two shall serve four-year terms.

History. Acts 1967, No. 36, § 6; 1979, No. 69, § 1; A.S.A. 1947, § 19-806; Acts 2009, No. 27, § 1.

Amendments. The 2009 amendment inserted (d)(2)(C), and made related and stylistic changes.

Case Notes

Powers of Board.

Where city had a regulation that a department head could not be discharged without notification in writing from the governing body of the city, the city administrator alone did not have authority to discharge the chief of the municipal fire department. Sanders v. City of Fort Smith, 251 Ark. 494, 473 S.W.2d 182 (1971).

14-48-111. Mayor.

    1. The mayor of a city having the city administrator form of government shall be recognized as the head of the city government for all ceremonial purposes and by the Governor for the purposes of military law.
    2. He or she shall sign on behalf of the city all written agreements, contracts, bonds, mortgages, pledges, indentures, conveyances, and other written instruments, the execution of which have been approved by the board of directors.
    3. He or she shall serve as chair of the board and shall preside at regular and special meetings of the board, but he or she shall not have a vote on any matter coming before the board.
    1. The mayor shall have the power of veto over all decisions made by the board except matters relative to city personnel.
    2. A veto by the mayor may be overridden by the affirmative vote of five (5) or more members of the board.
    1. The mayor shall not be required to devote his or her full time to the office and shall receive a compensation or salary not to exceed the salary permitted municipal officers by the Constitution of this state, to be fixed by the board.
    2. When once fixed, the salary shall not be increased or diminished during the term for which he or she may have been elected.
  1. The mayor, before entering upon the discharge of his or her duties, shall take the oath of office required by Arkansas Constitution, Article 19, § 20.

History. Acts 1967, No. 36, § 8; A.S.A. 1947, § 19-808.

Cross References. Veto of ordinances, etc., by mayor, § 14-48-120.

14-48-112. Assistant mayor or vice mayor.

    1. The board of directors shall elect from its membership an assistant mayor or vice mayor who shall serve in that capacity for two (2) years or until his or her tenure of office as a director expires, whichever is shorter.
    2. The assistant mayor or vice mayor shall not be prohibited from serving in that capacity for more than one (1) term.
    1. The assistant mayor or vice mayor shall act as mayor during the absence or disability of the mayor.
      1. If a vacancy in the office of mayor occurs, the assistant mayor or vice mayor shall perform the duties of mayor until a successor mayor is elected.
        1. If the mayor is continuously absent or disabled for more than six (6) months, his or her office will automatically become vacant, and a successor mayor shall be elected.
          1. A certificate of the city clerk or recorder recorded in the record of the proceedings of the board as to the absence or disability of the mayor or as to any vacancy in the office of mayor may be relied upon by all persons dealing with the municipality as conclusive evidence of the assistant mayor's or vice mayor's authority to assume the powers of the mayor.
            1. Where any such certificate is so recorded, upon the termination of the absence or disability of the mayor and the resumption by him or her of his or her official duties, the city clerk or recorder shall record in the records of the board a separate certificate attesting that fact.
            2. This separate certificate shall show the date of the termination of absence or disability and resumption of duties.

History. Acts 1967, No. 36, § 8; A.S.A. 1947, § 19-808; Acts 2009, No. 27, § 2.

Amendments. The 2009 amendment inserted “or vice mayor” in the section heading and inserted “or vice mayor” or variant throughout the section; and made minor stylistic changes.

14-48-113. Acting mayor.

If both the mayor and assistant mayor should be absent or disabled from performing their duties, the board of directors may designate by resolution one (1) of its members as acting mayor to serve during the absence or disability, and no longer.

History. Acts 1967, No. 36, § 8; A.S.A. 1947, § 19-808.

14-48-114. Removal of mayor or directors.

  1. Any person holding the office of mayor and any person holding the office of member of the board of directors of any city organized under the provisions of this chapter shall be subject to removal from the office by the electors qualified to vote for a successor of the incumbent.
  2. The procedure to effect the removal of a person holding the office shall be as follows:
    1. When petitions requesting the removal of any such officer signed by qualified electors equal in number to thirty-five percent (35%) of the total number of votes cast for all candidates for that office at the preceding general municipal election at which the office was on the ballot are filed with the city clerk, the clerk shall determine the sufficiency of the petitions within ten (10) days from the date of the filing;
    2. If the petitions are deemed sufficient, the clerk shall certify them to the county board of election commissioners;
    3. The county board of election commissioners shall issue a proclamation in accordance with § 7-11-201 et seq., calling a special election on the question and shall fix a date for holding it not more than ninety (90) days from the date of the certification of the petitions by the clerk;
    4. At the election, the question shall be submitted to the electors in substantially the following form:
      1. If a majority of the qualified electors voting on the question at the election shall vote for the removal of the officer, a vacancy shall exist in the office.
      2. If a majority of the qualified electors voting on the question at the election shall vote against the removal of the officer, the officer shall continue to serve during the term for which elected.
  3. No recall petition shall be filed against any officer until he or she shall have held his or her office for at least six (6) months.

“FOR the removal of (name of officer) from the office of (Mayor) (Director) AGAINST the removal of (name of officer) from the office of ”; and (Mayor) (Director)

Click to view form.

History. Acts 1967, No. 36, § 17; A.S.A. 1947, § 19-817; Acts 1991, No. 49, § 1; 2005, No. 2145, § 37; 2007, No. 1049, § 57; 2009, No. 1480, § 75.

Amendments. The 2009 amendment substituted “§ 7-11-201 et seq.” for “§ 7-5-103(b)” in (b)(3).

RESEARCH REFERENCES

ALR.

Constitutionality of state and local recall provisions. 13 A.L.R.6th 661.

14-48-115. Mayor or director vacancy.

In the case of a vacancy in the office of mayor or in the office of a member of the board of directors, the board, at the first regular meeting after the occurrence of the vacancy and by majority vote, shall appoint a person or call for a special election to be held in accordance with § 7-11-101 et seq. to fill the vacancy for the remainder of the unexpired term.

History. Acts 1967, No. 36, § 10; A.S.A. 1947, § 19-810; Acts 2005, No. 2145, § 38; 2007, No. 234, § 2; 2007, No. 1049, § 58; 2009, No. 1480, § 76; 2015, No. 384, § 1.

Amendments. The 2009 amendment substituted “§ 7-11-101 et seq.” for “§ 7-5-103(a)” in the introductory language of (b).

The 2015 amendment rewrote the section.

14-48-116. Employment of city administrator.

  1. The initial board of directors shall employ a city administrator as promptly as possible after effecting the board's organization. A city administrator's employment shall be for an indefinite term. Thereafter, subject only to such interruptions as are unavoidable, a city administrator shall be maintained in the employ of the city. The appointment and continued employment by the board of a city administrator is mandatory.
    1. It shall not be essential that the city administrator at the time of his or her employment be a qualified elector of the city or of the State of Arkansas or a resident of the city or of the State of Arkansas. However, the city administrator shall be a person found by the board to have special qualifications in respect to the administration of municipal affairs, and during his or her employment he or she shall reside in the city and devote his or her full time to the business of the city.
      1. A member of the board may not be appointed city administrator or acting city administrator during the term for which he or she shall have been elected, nor within three (3) years following the expiration of that member's term of office as director.
      2. Notwithstanding the provisions of this section regarding residency requirements for city administrators, the city administrator of a city having a population of less than five thousand (5,000) persons, upon approval of a majority of the board of the city, may reside in an adjoining city during his or her employment as administrator.
  2. The city administrator shall receive a salary in such amount as may be fixed by the board.
  3. The board, on the vote of a majority of its elected membership, may terminate the city administrator's employment at any time, either for or without cause. However, the city administrator's employment may not be terminated between the dates of January 1 and March 1 of the year following any general election in which members of the board are elected.
    1. The city administrator shall furnish a fidelity bond, the premiums on which shall be paid by the city in such amount, in such form, and with such security as may be approved by the board.
    2. In no event shall the bond be less than twenty-five thousand dollars ($25,000).

History. Acts 1967, No. 36, § 11; 1983, No. 159, § 1; A.S.A. 1947, §§ 19-811, 19-811.1.

Cross References. Self-Insured Fidelity Bond Program, § 21-2-701 et seq.

14-48-117. Powers and duties of city administrator.

The city administrator shall have the following powers and duties:

  1. To the extent that such authority is vested in him or her through ordinance enacted by the board of directors, he or she may supervise and control all administrative departments, agencies, offices, and employees;
  2. He or she shall represent the board in the enforcement of all obligations in favor of the city or its inhabitants which are imposed by law or under the terms of any public utility franchise upon any public utility;
  3. He or she may inquire into the conduct of any municipal office, department, or agency which is subject to the control of the board. In this connection, he or she shall be given unrestricted access to the records and files of any office, department, or agency and may require written reports, statements, audits, and other information from the executive head of the office, department, or agency;
    1. He or she shall nominate, subject to confirmation by the board, persons to fill all vacancies at any time occurring in any office, employment, board, authority, or commission to which the board's appointive power extends.
      1. He or she may remove from office all officials and employees, including without limitation, members of any board, authority, or commission who, under existing or future laws, whether applicable to cities under the mayor-council, manager, or commission form of government, may be removed by the city's legislative body.
        1. Removal by the city administrator shall be approved by the board.
        2. When, under the statute applicable to any specific employment or office, the incumbent may be removed only upon the vote of a specified majority of the city's legislative body, the removal of the person by the city administrator may be confirmed only upon the vote of the specified majority of the board members.
    2. However, this subdivision (4) does not apply to offices and employments controlled by any civil service or merit plan lawfully in effect in the city;
    1. To the extent that and under such regulations as by ordinance the board may prescribe:
      1. He or she may contract for and purchase, or issue purchase authorizations for, supplies, materials, and equipment for the various offices, departments, and agencies of the city government, and he or she may contract for, or authorize contracts for, services to be rendered to the city or for the construction of municipal improvements. In this connection, the board shall by ordinance establish a maximum amount, and each contract, purchase, or authorization exceeding the amount so established shall be effected after competitive bidding as required in § 14-48-129;
      2. He or she may approve for payment out of funds previously appropriated for that purpose or disapprove any bills, debts, or liabilities asserted as claims against the city. The board shall by ordinance establish in that connection a maximum amount, and the payment or disapproval of each bill, debt, or liability exceeding that amount shall require the confirmation of the board or of a committee of directors created by the board for that purpose;
      3. He or she may sell or exchange any municipal supplies, materials, or equipment. However, the board shall by ordinance establish a maximum value above which no item or lot designated to be disposed of as one (1) unit of supplies, materials, or equipment shall be sold or exchanged without competitive bidding unless the city administrator shall certify in writing that in his or her opinion the fair market value of the item or lot is less than the amount established by the ordinance as prescribed; and
      4. He or she may transfer to any office, department, or agency or he or she may transfer from any office, department, or agency to another office, department, or agency any materials and equipment.
    2. For the purpose of assisting the city administrator in transactions arising under subdivisions (5)(A)(i)-(iii) of this section, the board may appoint one (1) or more committees to be selected from its membership. In the alternative, the board may create one (1) or more offices or departments to be composed of personnel approved by the city administrator. If, for such purposes, the board shall create any new office or department, the person appointed to fill the office or to head the department shall be responsible to the city administrator and act under his or her direction;
  4. He or she shall prepare the municipal budget annually and submit it to the board for its approval or disapproval and be responsible for its administration after adoption;
  5. He or she shall prepare and submit to the board within sixty (60) days after the end of each fiscal year a complete report on the finances and administrative activities of the city during the fiscal year;
  6. He or she shall keep the board advised of the financial condition and future needs of the city and make such recommendations as to him or her may seem desirable;
  7. He or she shall sign all municipal warrants when authorized by the board to do so;
  8. He or she shall have all powers except those involving the exercise of sovereign authority, which under statutes applicable to municipalities under the mayor-council form of government or under ordinances and resolutions of the city in effect at the time of its reorganization may be vested in the mayor;
  9. He or she shall perform such additional duties and exercise such additional powers as may by ordinance be lawfully delegated to him or her by the board; and
  10. He or she shall be the executive officer of the boards of improvement and shall supervise under the direction of those boards all work done by them.

History. Acts 1967, No. 36, § 11; A.S.A. 1947, § 19-811; Acts 2003, No. 1185, § 33; 2017, No. 878, §§ 12, 13.

Amendments. The 2017 amendment rewrote (4); and substituted “mayor-council” for “aldermanic” in (10).

Case Notes

Discharge of Department Heads.

Where city had a regulation that a department head could not be discharged without notification in writing from the governing body of the city, the city administrator alone did not have authority to discharge the chief of the municipal fire department. Sanders v. City of Fort Smith, 251 Ark. 494, 473 S.W.2d 182 (1971).

14-48-118. Acting city administrator.

    1. If the city administrator is absent from the city or is unable to perform his or her duties, if the board of directors suspends the city administrator, or if there is a vacancy in the office of the city administrator, the board may appoint by resolution an acting city administrator to serve until the city administrator returns, until his or her disability or suspension ceases, or until another city administrator is appointed and qualified, as the case may be.
    2. The board may suspend or remove an acting city administrator at any time.
    1. The board, in the exercise of its discretion, may determine whether the acting city administrator shall furnish bond.
    2. If in any instance the board requires the acting city administrator to furnish bond, the premiums shall be paid by the city. The bond in respect to form, amount, and security shall be subject to the approval of the board.
  1. The acting city administrator shall receive a reasonable compensation to be fixed by the board.

History. Acts 1967, No. 36, § 11; A.S.A. 1947, § 19-811.

14-48-119. [Repealed.]

Publisher's Notes. This section, concerning election of municipal judges, was repealed by Acts 2003, No. 1185, § 34. The section was derived from Acts 1967, No. 36, § 7; A.S.A. 1947, § 19-807.

14-48-120. Meetings of board of directors.

    1. A majority of the elected membership of the board of directors shall constitute a quorum for the transaction of business.
    2. Except where otherwise provided by law, an affirmative vote of four (4) or more members shall represent the action of the board, and a like vote shall be required to suspend the rules.
  1. The board shall meet twice during each calendar month, and, until otherwise provided by ordinance, the meetings shall be held on the first and third Monday evenings of each calendar month unless that day is a legal holiday, in which case the meeting shall be held on the following evening.
    1. Special meetings may be called by a majority of the membership of the board.
    2. The board may establish by ordinance the procedure for calling and giving notice of special meetings.
  2. All regular and special meetings of the board shall be open to the public.
    1. Every motion, resolution, and ordinance adopted by the board, if approved by the mayor, shall be signed by the mayor and attested by the city clerk.
    2. Any ordinance, resolution, or motion for which the mayor has the power of veto and which is enacted or adopted over the veto of the mayor as authorized in this section shall be signed by the assistant mayor and attested by the city clerk.
  3. All laws in effect on February 2, 1967, regarding the proceedings of the city council of a city operating under the mayor-council form of government and not inconsistent with the provisions of this chapter, including those laws prescribing the procedure for the adoption, enactment, and publication of ordinances and resolutions, shall govern the proceedings of the board provided for in this section.
      1. All ordinances, resolutions, and motions adopted by the board at a regular or special meeting shall be delivered to the mayor within forty-eight (48) hours after the adoption thereof.
      2. The mayor shall have a period of three (3) days from the date of the receipt of any ordinance, resolution, or motion adopted by the board to approve or veto it. If he or she shall fail to approve or veto it within that period, it shall become law without his or her signature.
      1. Any ordinance, resolution, or motion enacted or adopted by the board which is vetoed by the mayor may be enacted over the veto of the mayor by an affirmative vote of five (5) or more members of the board.
      2. When any ordinance, resolution, or motion of the board is vetoed by the mayor, it shall automatically be on the agenda for consideration of the board at the next regular meeting of the board and may be considered at a special meeting called in the manner authorized herein.
    1. Each member of the board shall receive compensation for each regular meeting of the board which he or she attends but shall receive no compensation for attending a special meeting of the board.
    2. The compensation for each meeting shall be set by the board but shall not exceed one twenty-fourth of twenty percent (1/24 of 20%) of the compensation permitted municipal officers per annum by the Arkansas Constitution.
  4. The board may hold agenda meetings at such times, under such circumstances, and on such conditions as the board may prescribe for the purpose of informing itself of the business and affairs of the city. However, no official action of the board shall be taken at such meetings.
  5. The board shall adopt rules of order to govern the deliberations and meetings of the board.
  6. Any director who fails to attend five (5) consecutive regular meetings of the board or who fails to attend fifty percent (50%) of the regular meetings of the board held during a calendar year while he or she is a qualified member of the board shall be deemed to have resigned. A vacancy shall then exist in that position to be filled as provided in § 14-48-115.

History. Acts 1967, No. 36, § 9; A.S.A. 1947, § 19-809; Acts 2017, No. 878, § 14.

Amendments. The 2017 amendment substituted “mayor-council” for “mayor-aldermanic” in (f).

RESEARCH REFERENCES

Ark. L. Rev.

Note, Harris v. City of Fort Smith: Arkansas's Sunshine Clouds Over, 59 Ark. L. Rev. 147.

Case Notes

Discharge of Employees.

Where city administrator met in executive session with city board of directors and announced he wished to discharge the fire chief, but the notification was sent by the city administrator without being seen by the board of directors or signed by them, the discharge was not in compliance with subsections (c) and (g). Sanders v. City of Fort Smith, 251 Ark. 494, 473 S.W.2d 182 (1971).

14-48-121. Initiative and referendum.

  1. The initiative and referendum laws of this state are applicable to cities reorganized under this chapter.
  2. The number of signatures required upon any petition shall be computed upon the total vote cast for mayor at the preceding general election for mayor.

History. Acts 1967, No. 36, § 16; A.S.A. 1947, § 19-816.

14-48-122. Budgets and appropriations.

  1. The approval of the budget by the board of directors shall amount to an appropriation, for the purposes of the budget, of the funds which are lawfully applicable to the different items therein contained.
  2. The board may alter or revise the budget from time to time, and unpledged funds appropriated by the board for any specific purpose may by subsequent action of the board be appropriated to another purpose subject to the following exceptions:
    1. Funds resulting from taxes levied under statute or ordinance for a specific purpose may not be diverted to another purpose; and
    2. Appropriated funds may not be diverted to another purpose where any creditor of the municipality would be prejudiced thereby.

History. Acts 1967, No. 36, § 12; A.S.A. 1947, § 19-812.

14-48-123. Annual audit.

The board of directors shall have the financial affairs of the city audited annually by the Division of Legislative Audit of the State of Arkansas or by an independent certified public accountant who is not otherwise in the service of the city.

History. Acts 1967, No. 36, § 12; A.S.A. 1947, § 19-812; Acts 1987, No. 220, § 1; 2011, No. 623, § 2.

Amendments. The 2011 amendment inserted “the Division of Legislative Audit of the State of Arkansas or by.”

14-48-124. Creation of new departments, etc.

    1. The board of directors may from time to time by ordinance create, reorganize, or abolish, except as provided in § 14-48-106, any municipal departments, offices, employments, boards, authorities, commissions, and agencies and fix the term of employment and compensation of each appointee.
    2. The city administrator, with the approval of the board, shall appoint the personnel to serve in the departments, offices, employments, boards, authorities, commissions, and agencies.
    1. The board also in the exercise of its discretion by ordinance may consolidate the office of the city treasurer with the office of the city clerk or such other department, office, or position as the board by ordinance may charge with the responsibility of administering the financial affairs of the city.
    2. The board may delegate all of the duties of the city treasurer to the person holding such an office or position in the city and fix the term and compensation of the appointee.
    3. With the approval of the board, the city administrator may fill this consolidated office by appointment.

History. Acts 1967, No. 36, § 12; A.S.A. 1947, § 19-812.

Case Notes

Applicability.

In order for this section to apply to the Multi-Ethnic Committee created by the mayor, the Committee must have been shown to constitute a subdivision of city government, and appellant failed to provide any evidence that the Committee constituted anything other than a mere citizen advisory group with no authority to act for the city. McCutchen v. Patton, 340 Ark. 371, 10 S.W.3d 439 (2000).

14-48-125. Appointees generally.

Subject to the exceptions contained in § 14-48-102, every person appointed by the board of directors to any municipal office, employment, position, or to membership on any board, authority, or commission shall serve for such time and shall receive such compensation as the board may fix and determine by ordinance.

History. Acts 1967, No. 36, § 12; A.S.A. 1947, § 19-812.

14-48-126. Qualifications of appointees.

  1. In the exercise by the board of directors of its authority in respect to the filling of vacancies on municipal boards, authorities, and commissions, only those qualified electors of the city found by the board to possess the necessary qualifications shall be appointed or confirmed.
    1. In filling vacancies on any municipal board, authority, or commission, unless the statute applicable to the position forbids the appointment thereto of a city employee, the city administrator, if otherwise qualified, shall be an eligible appointee.
    2. The city administrator, however, shall not be, ex officio, a member of any municipal board, authority, or commission.

History. Acts 1967, No. 36, § 7; A.S.A. 1947, § 19-807.

14-48-127. Bond of officers and employees.

All officers and employees of a city reorganized under this chapter, excepting the city administrator whose bond requirement is controlled by § 14-48-116, may be required to make bond in such amount, in such form, and with such security as may meet the approval of the board of directors.

History. Acts 1967, No. 36, § 13; A.S.A. 1947, § 19-813.

Cross References. Self-Insured Fidelity Bond Program, § 21-2-701 et seq.

14-48-128. Prohibited actions by officers or employees.

    1. No member of the board of directors nor any officer or employee appointed in any city shall have an interest in any contract or job for work or materials, or the profits thereof, or service to be furnished or performed for the city.
    2. No officer or employee shall have an interest in any contract or job for work or materials, or the profits thereof, or service to be furnished or performed for any person, firm, or corporation operating any public transportation service, gas works, waterworks, electric light or power plants, telegraph line, telephone exchange, or other public utility within the territorial limits of the city.
      1. No officer or employee shall accept or receive, directly or indirectly, any frank, pass, free ticket, or free service from any person, firm, or corporation operating within the territorial limits of the city any public transportation service, gas works, waterworks, electric light or power plant, heating plant, telephone exchange, telegraph line, or other business acting or operating under a public franchise of the city, nor shall he or she accept or receive, directly or indirectly, from any such person, firm, or corporation, or its agents, any other service upon terms more favorable than those granted to the public generally.
      2. The prohibition of free transportation shall not apply to police officers or firefighters in uniform, nor shall any free service to the city officials heretofore provided by franchise or ordinance be affected by this section.
  1. Any person violating the provisions of this section shall be guilty of a misdemeanor and shall be fined in a sum not less than two hundred fifty dollars ($250) nor more than five thousand dollars ($5,000), and every such contract or agreement shall be void.

History. Acts 1967, No. 36, § 12; A.S.A. 1947, § 19-812.

14-48-129. Competitive bidding required.

  1. Before making any purchase of, or contract for, any supplies, materials, or equipment, and before obligating the city under any contract for the performance of services or for the construction of municipal improvements where the anticipated cost to the city of the transaction exceeds the maximum amount established by the board of directors under the authority of § 14-48-117, opportunity for competitive bidding shall be given under such rules and regulations as the board may by ordinance prescribe, and the contract shall be consummated only on a bid approved by the city administrator and by the board.
  2. The board, by ordinance, may waive the requirement of competitive bidding in exceptional situations where this procedure is not feasible. However, such exceptional situations being lacking, the board may not except any particular contract, purchase, or sale from the requirement of competitive bidding.
  3. All purchase and sale records of the city shall be open to public inspection.

History. Acts 1967, No. 36, § 12; A.S.A. 1947, § 19-812.

14-48-130. Public utility franchises, etc.

Every ordinance or resolution granting any public utility franchise or granting the right to occupy the streets, highways, bridges, or other public places in the city for any purpose shall be completed in the form in which it is finally passed. It shall remain on file with the city clerk for public inspection at least one (1) week before the final passage or adoption thereof.

History. Acts 1967, No. 36, § 14; A.S.A. 1947, § 19-814.

14-48-131. Improvement districts.

    1. The board of directors elected under the provisions of this chapter shall constitute the respective boards of improvement for any and all improvement districts existing or created in any city operating under the provisions of this chapter and shall discharge and perform all duties required of any board of any improvement district under the provisions of the laws of this state dealing with improvement districts. However, the directors shall receive no compensation as members of such boards.
    2. It shall not be necessary for the board of directors who shall constitute such a board to be owners of real property or, where the district does not embrace the whole of the city, to reside in the improvement district.
      1. The board of directors, where districts have been created and are in existence when they qualify and enter upon the discharge of their duties as such a board of the city, in addition to the oath required as a board of directors of the city, shall each, as a member of the board of improvement, take the oath of office required by Arkansas Constitution, Article 19, § 20. Each member shall also affirm that he or she will not, directly or indirectly, have an interest in any contract made by the board of which he or she is a member.
        1. This oath shall be made for each separate district.
        2. The oath shall be filed in the office of the city clerk.
    1. When an improvement district is formed after the board of directors has qualified, each director, immediately upon the formation of the improvement district, shall take and file the oath required by this section as a member of that board of improvement.
    1. When the directors have taken the oath provided for by this section, the terms of office of all members of improvement boards in the city shall cease and determine. They shall cause to be delivered to the board of directors, as their successors, all records, papers, and contracts, as well as everything belonging to the improvement districts in their possession and under their control.
    2. These items shall be kept separate from the records, papers, contracts, and property of the city.
      1. The board of directors, in lieu of serving as the board of commissioners for any improvement district, may appoint three (3) electors of the city to act as commissioners.
        1. Each of these commissioners shall take the oath of office required by Arkansas Constitution, Article 19, § 20, and shall also swear that, directly or indirectly, he or she shall not have an interest in any contract made by the board and that he or she will well and truly assess all benefits resulting from the improvement and all damages caused thereby.
        2. Any commissioner failing to take the oath within thirty (30) days after his or her appointment shall be deemed to have declined, and his or her place shall be filled by the board of directors.
      2. The commissioners shall select one (1) of their number as chair, and a majority shall constitute a quorum.
    1. The board of directors may remove any member of the board of commissioners.
    2. The board of directors may provide for the compensation of commissioners at a rate not to exceed ten dollars ($10.00) for each day spent attending meetings of the board of commissioners. However, a board of commissioners shall not be compensated for more than two (2) meetings in any calendar month.
    1. The records, proceedings, moneys, and revenues of each improvement district shall be kept separate and distinct from each other and separate and distinct from the records, proceedings, moneys, and revenues of the city.
    2. The city clerk shall be ex officio secretary and collector, and the city treasurer or finance officer shall be ex officio treasurer of each and every improvement district, subject, however, to the right of the board, if it shall be deemed best, to designate and appoint some person other than the city clerk as secretary or collector and some person other than the city treasurer or finance officer as treasurer.
    1. The board for each and every improvement district shall prepare quarterly a detailed and itemized statement of all receipts and expenditures of each district with proper vouchers for all payments and cause it to be filed with the clerk of the circuit court.
      1. Within six (6) months, any taxpayer may file exceptions to the report in the circuit court.
        1. The circuit court shall proceed, after ten (10) days' notice given to the chair of the board of improvement for the district, to examine the exceptions to the report and account and disallow any and all unjust, illegal, and improper charges and credits.
        2. From any final judgment or order of the circuit court in respect thereto, the aggrieved parties shall have the right of appeal to the Supreme Court, as in other cases.

History. Acts 1967, No. 36, § 15; A.S.A. 1947, § 19-815.

Chapter 49 Civil Service for Cities of 75,000 or Over

Preambles. Acts 1937, No. 322 contained a preamble which read:

“Whereas, cities having a population of more than 75,000 inhabitants, own, operate and maintain hospitals, airports, libraries, health departments, electrical departments, engineering departments, street departments, weights and measures departments, collection departments, sewer departments, purchasing departments, parks and sanitation departments and waterworks, and employ hundreds of people who work in said departments, some of them requiring years of experience to become sufficiently skilled to properly do the necessary work required of them; and

“Whereas, such employees are usually employed in accordance with political expediency rather than merit; and,

“Whereas, it is for the best interest of such cities that applicants for positions with said city, and employees working for the city, be employed and discharged according to their merits, and the necessity of the city for their services … .”

Effective Dates. Acts 1937, No. 322, § 19: Mar. 25, 1937.

Cross References. Civil service for police and fire departments, § 14-51-101 et seq.

Research References

C.J.S. 62 C.J.S., Mun. Corp., §§ 469, 488.

Subchapter 1 — General Provisions

14-49-101. Definitions.

As used in this chapter, unless the context otherwise requires, “board”, “commission”, or “commissioners” means the board of civil service commissioners, as provided for in § 14-49-201 et seq.

History. Acts 1937, No. 322, § 15; A.S.A. 1947, § 19-1315.

14-49-102. Applicability.

Every city in this state shall be entitled to operate under this chapter whenever any federal census taken shows that the city has attained a population of seventy-five thousand (75,000) or over.

History. Acts 1937, No. 322, § 1; A.S.A. 1947, § 19-1301.

14-49-103. Penalty.

Any person violating any part of this chapter, upon conviction, shall be punished as for a misdemeanor.

History. Acts 1937, No. 322, § 18; A.S.A. 1947, § 19-1317.

Cross References. Misdemeanors, § 5-1-107.

Subchapter 2 — Board of Civil Service Commissioners

Cross References. Civil service board for police and fire departments, § 14-51-201 et seq.

Effective Dates. Acts 1943, No. 17, § 2: Feb. 3, 1943. Emergency clause provided: “This act being necessary for the immediate protection of the public peace, welfare and safety, an emergency is hereby declared and the same shall be in full force and effect from and after its passage and approval.”

Acts 1951, No. 386, § 2: Mar. 20, 1951.

14-49-201. Appointment of members.

  1. The city council or governing body in cities which, according to the last federal census taken, have a population of seventy-five thousand (75,000) or over shall name by ordinance three (3) citizens of its respective cities as a board of civil service commissioners.
  2. The commissioners shall hold office as follows:
    1. One until the first Monday in April of the second year after his or her appointment;
    2. One until the first Monday in April of the fourth year after his or her appointment; and
    3. One until the first Monday in April of the sixth year after his or her appointment.

History. Acts 1937, No. 322, § 1; A.S.A. 1947, § 19-1301.

Case Notes

De Facto Commissioners.

Where plaintiffs filed representative suit in behalf of all city police officers of Little Rock whose employment was cut off by service in the war, against members of Little Rock Civil Service Commission and asked that commissioners be permanently enjoined from acting as commissioners on theory that 1933 act authorized cities of first class to create a civil service commission for police officers and fire fighters only, and 1937 act authorized cities of more than 75,000 to create a second civil service commission for employees other than fire fighters and police officers, that hence members of the commission had violated law prohibiting members from holding more than one political office, court properly sustained demurrer to the complaint, as even though plaintiffs were right in their theory that commissioners were serving on two commissions, the defendants would still be de facto commissioners, and equity had no authority to decide whether defendants were also de jure officers. Smith v. Little Rock Civil Serv. Comm'n, 214 Ark. 765, 218 S.W.2d 366 (1949) (decision prior to § 14-51-201).

14-49-202. Persons excepted.

  1. No person on the commission shall hold or be a candidate for any office or public trust under any national, state, county, or municipal government or school district or be connected in any way in any official capacity with any political party or organization.
  2. No person as enumerated in this section shall be eligible for a place on the board who, at the time of his or her election, shall hold any such office.

History. Acts 1937, No. 322, § 1; A.S.A. 1947, § 19-1301.

14-49-203. Organizational meeting.

  1. The commissioners named as provided in this chapter shall meet and organize.
  2. The commissioner who shall be elected for a term of two (2) years shall act as chair.

History. Acts 1937, No. 322, § 2; A.S.A. 1947, § 19-1302.

14-49-204. Chair of commission.

    1. The chair of the commission for each biennial period shall be the member whose term first expires.
    2. The member of the commission whose term shall next expire shall serve as chair during the last two (2) years of his or her term.
  1. The chair shall preside over all meetings of the commission and be its executive officer.
  2. In the absence of the chair, the board shall elect one (1) of its number to act instead of the chair during the absence of the chair.

History. Acts 1937, No. 322, §§ 1, 2; A.S.A. 1947, §§ 19-1301, 19-1302.

14-49-205. Secretary of board.

  1. The board shall elect one (1) of its members as secretary.
  2. The secretary shall:
    1. Keep the books and records of the board;
    2. Conduct the correspondence of the board;
    3. Report the evidence at all trials;
    4. Act as clerk when the board shall constitute a trial court; and
    5. Perform any other duties that may be ordered by the board.

History. Acts 1937, No. 322, § 1; A.S.A. 1947, § 19-1301.

14-49-206. Attorney for commission.

The city attorney shall act as attorney for the commission provided for in this chapter in all trials and other legal transactions of the commission.

History. Acts 1937, No. 322, § 1; 1943, No. 17, § 1; 1951, No. 386, § 1; A.S.A. 1947, § 19-1301.

14-49-207. Regular meetings, etc.

The city council or other governing body, as the case may be, shall:

  1. Provide suitable rooms for the board to hold meetings;
  2. Allow all reasonable supplies; and
  3. Permit use of public buildings for holding examinations by the board.

History. Acts 1937, No. 322, § 2; A.S.A. 1947, § 19-1302.

14-49-208. Quorum for business.

Two (2) of the commission members shall constitute a quorum to transact business.

History. Acts 1937, No. 322, § 1; A.S.A. 1947, § 19-1301.

14-49-209. Investigative powers.

  1. In any investigation conducted by the commission provided for in this chapter, the commission shall have the power of subpoena, to require the attendance of any witness and the production of any papers or records pertinent to the investigation, and the power to administer oaths to the witnesses.
  2. To punish for contempt the nonattendance of witnesses, or the failure to produce books or papers, or misbehavior of any person during the investigation, the commission may impose a fine not to exceed fifty dollars ($50.00) for each offense.

History. Acts 1937, No. 322, § 10; A.S.A. 1947, § 19-1310.

14-49-210. Salary of commissioners.

The salary of the commissioners shall be paid by the city and shall be fixed by the city council or other governing body of the city.

History. Acts 1937, No. 322, § 1; A.S.A. 1947, § 19-1301.

14-49-211. Removal of commissioner.

  1. The city council or the governing body, by two-thirds vote may remove any of the commissioners during his or her term of office for cause.
  2. The vacancy thereby created shall be filled as provided in this chapter.

History. Acts 1937, No. 322, § 1; A.S.A. 1947, § 19-1301.

14-49-212. Vacancies on board.

  1. When a vacancy shall occur on the board by death, resignation, expiration of the term of office, or in any other manner, the vacancy shall be filled by the other members of the commission within thirty (30) days from the time the vacancy shall have occurred.
  2. Vacancies occurring during the term of office of any commissioner shall be filled for the remainder of the term.

History. Acts 1937, No. 322, § 1; A.S.A. 1947, § 19-1301.

Subchapter 3 — Civil Service System

Effective Dates. Acts 1941, No. 43, § 3: Feb. 13, 1941.

Acts 1943, No. 17, § 2: Feb. 3, 1943. Emergency clause provided: “This act being necessary for the immediate protection of the public peace, welfare and safety, an emergency is hereby declared and the same shall be in full force and effect from and after its passage and approval.”

Acts 1951, No. 386, § 2: Mar. 20, 1951.

Acts 1957, No. 152, § 3: Mar. 6, 1957. Emergency clause provided: “It is hereby found and determined by the General Assembly that a number of city employees affected by this Act are presently excluded from the benefits of the civil service system of such cities and that the immediate passage of this Act is necessary in order to include such employees within the benefits and protections of such a system. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

14-49-301. Employees not covered.

  1. This chapter shall not apply to any officer, servant, employee, or attorney of the city who is elected by vote of the people of his or her respective cities.
    1. This chapter shall not apply to the following employees of the city:
      1. Secretary to the mayor;
      2. Assistant secretary to the mayor;
      3. Secretary to the district courts and clerks;
      4. Assistant city attorneys;
      5. Secretary to city attorneys;
      6. Members of the police and fire departments of cities;
      7. City purchasing agent;
      8. All employees of the city library;
      9. Superintendent of the city hospital;
      10. All members of honorary boards;
      11. All members of the municipal waterworks and the commissioners thereof;
      12. All officers and employees of the sewer department;
      13. Members of the board of public affairs;
      14. Special attorneys who may be employed by the city from time to time; and
      15. Public accountants who may be employed for special work by the city.
    2. These employees of the city shall be appointed as they were before the passage of this act.

History. Acts 1937, No. 322, § 1; 1943, No. 17, § 1; 1951, No. 386, § 1; A.S.A. 1947, § 19-1301.

Publisher's Notes. In reference to the term “the passage of this act,” Acts 1937, No. 322 was signed by the Governor on March 25, 1937, and became effective on June 10, 1937. (Emergency clause invalid).

Meaning of “this act”. Acts 1937, No. 322, as amended, codified as § 14-49-101 et seq., § 14-49-201 et seq., and § 14-49-301 et seq.

14-49-302. Temporary employees.

The mayor of the city shall have authority to employ and discharge common laborers for work that is temporary. He or she shall have the authority to employ accountants and auditors for the purpose of auditing the city's books, or the books of the departments thereof, and special attorneys.

History. Acts 1937, No. 322, § 1; A.S.A. 1947, § 19-1301.

14-49-303. City clerk's employees included.

In addition to the city employees originally affected by and brought within the provisions of this chapter providing for the establishment of a civil service system in certain cities, the employees of the city clerk's office in these cities from the passage of this act shall be affected by and rendered subject to all of the provisions, rights, and benefits of this chapter as though originally provided for therein.

History. Acts 1957, No. 152, § 1; A.S.A. 1947, § 19-1318.

Publisher's Notes. In reference to the term “the passage of this act,” Acts 1957, No. 152 was signed by the Governor and became effective on March 5, 1957.

Acts 1957, No. 152, § 2, provided that no employee affected by this section at the time of its passage would be subject to an examination, except for promotion or advancement, but would retain his current position, subject to all other provisions of § 14-49-101 et seq.

Meaning of “this act”. See note to § 14-49-301.

14-49-304. Rules and regulations generally.

    1. The board provided for in this chapter shall prescribe, amend, and enforce rules and regulations governing the employees, except those excepted in this chapter, of their respective cities.
    2. The rules and regulations shall have the force and effect of law.
    3. The board shall keep a record of its examinations and shall investigate the enforcement and effect of this chapter and the rules as provided for in this section.
  1. These rules shall provide for:
    1. The qualification of each applicant for appointment to any position affected by this chapter;
    2. Testing by open competitive examinations the relative fitness of applicants for the positions;
      1. Public advertisements of all examinations by publication of notice in some newspaper having a bona fide circulation in the city and by posting of notice at the city hall at least ten (10) days before the date of the examination.
      2. The examinations shall be held on the first Monday in April and the first Monday in October of each year and more often if necessary under the rules and regulations as may be prescribed by the board;
      1. The creation of eligible lists for each position of employment in the city in which shall be entered the names of the successful applicants in the order of their standing in the examination.
        1. All lists for appointments or promotions as certified by the board shall be and remain in force and effect for a period of one (1) year from the date thereof.
        2. At the expiration of this period, all right of priority under the lists shall cease;
      1. The rejection of applicants or eligibles who fail to comply with reasonable requirements of the board in regard to age, sex, physical condition, or who have attempted fraud or deception in connection with the examination.
      2. The board may adopt proper rules and regulations for a suitable physical examination of all applicants;
        1. Certification to the department head of the three (3) standing highest on the eligibility list for appointment for that rank of service and the department head to select for appointment one (1) of the three (3) certified to him or her and notify the commission thereof; and
        2. The promotion or advancement of the one (1) standing highest on the eligibility list for that rank of service.
      1. The governing body may adopt by ordinance the following provisions for employment or advancement in lieu of subdivision (b)(6)(A) of this section:
        1. Certification to the department head of the five (5) standing highest on the eligibility list for appointment for that rank of service and the department head to select for appointment one (1) of the five (5) certified to him or her and notify the commission thereof; and
        2. The promotion or advancement of one (1) of the three (3) standing highest on the eligibility list for that rank of service;
      1. A period of probation not to exceed twelve (12) months before any appointment is complete and six (6) months before any promotion is complete, during which time the commission, upon reasons stated in writing by the department head, may discharge the probationer, in case of appointment, or reduce the probationer, in case of promotion.
      2. From a discharge or reduction, there shall be no appeal;
      1. Temporary employees without examination, with the consent of the commissioner, in case of emergency and pending appointment from eligible lists.
      2. No temporary appointment shall continue longer than sixty (60) days, nor shall successive temporary appointments be allowed except in time of grave danger, of which the commission shall decide;
      1. Promotion lists based upon open competitive examinations of efficiency, character, and conduct shall be created for each rank of service, and promotions shall be made therefrom as provided in this chapter; and
      2. Advancement in rank or increase in salary beyond the limits fixed for the grade by the commission which constitutes a promotion;
      1. Suspension for not longer than thirty (30) days; and
      2. Leave of absence;
      1. Discharge or reduction in rank or compensation after promotion or appointment is complete, only after the person to be discharged or reduced has been presented with the reasons for the discharge or reduction in writing.
        1. The person so discharged or reduced shall have the right within ten (10) days from the time of notice or discharge or reduction to reply in writing.
        2. Should the person deny the truth of the reasons upon which the discharge or reduction is predicated and demand a trial, the commission shall grant a trial as provided in this chapter.
        3. The reasons and the reply shall constitute a part of the trial and shall be filed with the record;
    3. An adoption and amendment of rules after public notice and hearing; and
    4. The preparation of a record of all hearings and other proceedings before it, which shall be stenographically reported.
  2. The commission shall adopt such rules not inconsistent with this chapter for the necessary enforcement of this chapter.

History. Acts 1937, No. 322, § 3; 1941, No. 43, § 1; 1959, No. 464, § 1; 1983, No. 543, § 1; A.S.A. 1947, § 19-1303.

14-49-305. Departmental rules and regulations.

All employees affected by this chapter shall be governed by rules and regulations set out by the heads of their respective departments after rules and regulations have been adopted by the governing bodies of their respective municipalities.

History. Acts 1937, No. 322, § 4; A.S.A. 1947, § 19-1304.

14-49-306. Political activity prohibited.

  1. No employee in any department affected by this chapter shall engage in the solicitation of any subscription funds or assessments or contribute thereto for any political party or purpose.
  2. An employee shall not be connected with any political campaign or political management except to cast his or her vote and to express his or her personal opinion privately.

History. Acts 1937, No. 322, § 12; A.S.A. 1947, § 19-1312.

Cross References. Political activity of public employees permitted, § 21-1-207.

14-49-307. Employees and salaries fixed.

The city council or other governing body shall fix from time to time the number of employees and the salaries to be drawn by each in the departments affected by this chapter.

History. Acts 1937, No. 322, § 16; A.S.A. 1947, § 19-1316.

Case Notes

Cited: Satterfield v. Fewell, 202 Ark. 67, 149 S.W.2d 949 (1941).

14-49-308. Certification for compensation.

  1. The secretary of the commission shall file with the treasurer or disbursing officer of his or her city a certificate of those entitled to compensation from the city under this chapter.
  2. No compensation shall be allowed to any member of the affected cities unless his or her name shall be so certified by the secretary.

History. Acts 1937, No. 322, § 9; A.S.A. 1947, § 19-1309.

14-49-309. Examinations.

All examinations provided for in this chapter shall be fair and impartial and such as to test the qualifications of the applicants for the particular service and position to be filled.

History. Acts 1937, No. 322, § 7; A.S.A. 1947, § 19-1307.

Publisher's Notes. Acts 1937, No. 322, § 8, provided that no employee affected by § 14-49-101 et seq. at the time of the passage of this act would be subject to an examination, except for promotion or advancement but would retain his current position, subject to the other provisions of § 19-49-101 et seq. Acts 1937, No. 322, was signed by the Governor on March 25, 1937, and became effective on June 10, 1937. (Emergency clause invalid).

Case Notes

Cited: Gilbert v. City of Little Rock, 544 F. Supp. 1231 (E.D. Ark. 1982).

14-49-310. Suspension of competition.

In the case of a vacancy in a position requiring peculiar or exceptional qualifications of a scientific, professional, or expert character, upon satisfactory evidence that competition is impracticable and the position can best be filled by the selection of some person designated and of recognized attainment, the board may suspend by a majority vote competition in this case. However, the suspension shall not be general in its application, and each case must be handled on its own merits.

History. Acts 1937, No. 322, § 6; A.S.A. 1947, § 19-1306.

14-49-311. Suspension, discharge, or reduction in rank or compensation.

      1. No employee of any department of any city affected by this chapter shall be discharged or reduced in rank or compensation without being notified in writing as provided in this section.
      2. In case of suspension, discharge, or reduction, the affected or accused person shall have written notice of the action at the time it is taken.
    1. The person shall have the right of reply and trial as provided in this section and may be discharged or reduced only after conviction by trial before the commission.
    1. The trial must take place within fifteen (15) days after demand for it is made.
    2. The accused must be notified at least ten (10) days prior to the trial of the date and place of trial.
    3. The accused may have compulsory process to have witnesses present at the trial.
    1. The chair shall preside at all trials and shall determine and decide all questions relative to pleadings and admissibility of evidence.
    2. The decision of the commission shall be a majority vote of members of the commission.
      1. A right of appeal by the city or employee is given from any decision of the commission to the circuit court within whose jurisdiction the commission is situated.
      2. The appeal shall be taken by filing with the commission, within thirty (30) days from the date of the decision, a notice of appeal. Whereupon, the commission shall send to the court all pertinent documents and papers, together with a complete transcript of all evidence and testimony adduced before the commission and all findings and orders of the commission.
        1. The court shall review the commission's decision on the record and in addition may hear testimony or allow the introduction of any further evidence upon the request of either the city or the employee.
        2. The testimony or evidence must be competent and otherwise admissible.
      1. A right of appeal is also given from any action from the circuit court to the Supreme Court.
      2. The appeal shall be governed by the rules of procedure provided by law for appeals from the circuit court to the Supreme Court.
  1. In the event that it is finally determined that there was a wrongful suspension, discharge, or reduction in rank of any employee, the employee shall be entitled in such case to summary judgment against the city for full pay for the time he or she lost by reason of his or her suspension or discharge, or for the difference in salary or loss he or she shall have sustained by reason of any reduction in salary.

History. Acts 1937, No. 322, §§ 5, 13; 1959, No. 464, § 2; A.S.A. 1947, §§ 19-1305, 19-1313.

Case Notes

Appeals.

Inasmuch as a state statute prohibited judicial review of a police pension board's denial of a police officer's application for a pension, the state circuit court's unappealed dismissal of a mandamus suit, in which the police officer sought to compel the board to award him a pension, was not res judicata as to the police officer's civil rights suit in the federal courts. Hirrill v. Merriweather, 629 F.2d 490 (8th Cir. 1980).

Discharge.

This section does not prevent discharge in good faith without trial and without notice when a position is temporarily discontinued for economy purposes. Satterfield v. Fewell, 202 Ark. 67, 149 S.W.2d 949 (1941).

Trials.

Within the context of public administrative law and procedure, a claimant or litigant is not denied a constitutionally guaranteed fair hearing before an impartial tribunal simply because the agency factfinders or decisionmakers may have had some prior knowledge or even preliminary participation in the case or even though they may have formed some tentative ideas as to the merits of the controversy about to be decided. Hirrill v. Merriweather, 629 F.2d 490 (8th Cir. 1980).

Where an employee appeared and testified without suggesting that the board had lost jurisdiction by not trying him within 15 days after demand for trial, it was held that he waived the objections. Watkins v. Little Rock Civil Serv. Comm'n, 201 Ark. 626, 146 S.W.2d 159 (1941).

14-49-312. Reductions, reinstatements, or transfers in personnel.

    1. If it shall become necessary to reduce the personnel of any department, reduction shall be from the lowest rank, seniority having priority.
    2. In event the personnel is subsequently increased, any employee who has been transferred to another department or discharged by reason of the reduction shall have seniority rights over any other employee or any applicant for employment to any position created on account of the increase in personnel.
  1. If the personnel of any department is reduced by reason of the transfer of any duties of one department to another department, any person so discharged shall have priority in the department to which the duties are transferred over any employee performing the duties who does not have a seniority rating at least equal to the person relieved on account of the transfer of the duties and over any applicant for employment covering the duties.
  2. When a vacancy occurs in any department, any employee of the same classification in any other department, seniority having priority, shall have the option of transferring to the vacancy in the department.

History. Acts 1937, No. 322, § 14; 1941, No. 43, § 2; A.S.A. 1947, § 19-1314.

Case Notes

Reinstatement.

Police officer who stood at head of list for promotion at the time of his entrance into military service was not entitled to appointment upon his return to position vacant at his entrance into the service, even though the commission's regulations made appointments retroactive to the inception of the vacancy, his status of police officer being suspended during his war service. Smith v. Little Rock Civil Serv. Comm'n, 214 Ark. 765, 218 S.W.2d 366 (1949).

14-49-313. Political discrimination prohibited.

No person in any department affected by this chapter shall be appointed, reduced, suspended, discharged, or otherwise discriminated against because of his or her political opinion or affiliation.

History. Acts 1937, No. 322, § 11; A.S.A. 1947, § 19-1311.

Chapter 50 Civil Service for Cities of 20,000 to 75,000

Research References

C.J.S. 62 C.J.S., Mun. Corp., §§ 469, 488.

Subchapter 1 — General Provisions

A.C.R.C. Notes. Acts 1989, No. 191, § 1, provided:

“Every city of the first class having the mayor-council form of government and a population of no less than 37,000 inhabitants nor more than 70,000 inhabitants according to the 1980 federal decennial census may add two more members to its civil service commission. The law applicable to the commission shall apply to the additional members except that in each such city the first two additional members appointed pursuant to this act shall serve staggered terms to be determined by lot so that one will serve a three year term and one a six year term and their successors shall serve six year terms.”

14-50-101. Applicability.

  1. Any city of the first class in this state having a population of twenty thousand (20,000) or more but less than seventy-five thousand (75,000) inhabitants, according to the most recent federal census, may establish or continue a civil service system for the nonuniformed employees of these cities, either by action of the city council or other governing body of the city or by a local initiated measure.
  2. Any civil service system established or continued pursuant to this chapter shall cover such nonuniformed employees of the city as the ordinance establishing or continuing the system shall prescribe.

History. Acts 1963, No. 221, § 1; A.S.A. 1947, § 19-1419.

Publisher's Notes. Acts 1963, No. 221, § 20, provided that the purpose of the act is that it be the only one under which first-class cities with a population of at least 20,000 but less than 75,000 inhabitants can establish a civil service system for nonuniformed employees, and to this end all laws and parts of laws in conflict with the act, including Acts 1939, No. 339, and all amendments thereto, and Acts 1941, No. 61, and all amendments thereto, are repealed.

14-50-102. Penalty.

Any person violating any part of this chapter shall be guilty of a misdemeanor and upon conviction shall be punished accordingly.

History. Acts 1963, No. 221, § 19; A.S.A. 1947, § 19-1437.

Cross References. Misdemeanors, § 5-1-107.

Subchapter 2 — Civil Service Commission

14-50-201. Appointment of members.

  1. In any city establishing or continuing a civil service system pursuant to the provisions of this chapter, the city council or other governing body of the city shall name by ordinance five (5) citizens of the city as a civil service commission for the system.
  2. The members of the commission shall hold office as follows:
    1. One shall hold office until the first Monday in April of the second year after his or her appointment;
    2. One shall hold office until the first Monday in April on the fourth year after his or her appointment;
    3. One shall hold office until the first Monday in April of the sixth year after his or her appointment;
    4. One shall hold office until the first Monday in April of the eighth year after his or her appointment; and
    5. One shall hold office until the first Monday in April of the tenth year after his or her appointment.
  3. If any city establishing or continuing a civil service system under this chapter already has a five-member commission for uniformed employees, the existing commission shall also be the commission for the system established or continued under this chapter.

History. Acts 1963, No. 221, § 2; A.S.A. 1947, § 19-1420.

14-50-202. Qualifications of members.

  1. Members of the civil service commission shall be citizens of the State of Arkansas and residents of the city for at least three (3) years immediately preceding their appointment.
    1. No person on the commission shall hold or be a candidate for any political office under any national, state, county, or municipal government or be connected in any official capacity with any political party or organization.
    2. No person who is a candidate for or holds any office or position described in this subsection shall be eligible to serve as a member of the commission.

History. Acts 1963, No. 221, § 2; A.S.A. 1947, § 19-1420.

14-50-203. Organizational meeting.

After the members of the civil service commission are named as provided in this chapter, the commission shall meet and organize.

History. Acts 1963, No. 221, § 4; A.S.A. 1947, § 19-1422.

14-50-204. Chair of commission.

The chair of the civil service commission for each biennial period shall be the member whose term of office first expires.

History. Acts 1963, No. 221, § 3; A.S.A. 1947, § 19-1421.

14-50-205. Secretary of commission.

  1. The civil service commission shall select one (1) of its members as secretary, who shall keep the books and records of the commission and shall conduct the correspondence of the commission.
  2. The secretary shall also report or cause to be reported the evidence in all trials or hearings before the commission, and the municipality shall pay the reasonable expense thereof.
  3. The secretary shall act as clerk when the commission is conducting a trial or hearing and shall perform such other functions and duties as the commission shall direct.

History. Acts 1963, No. 221, § 3; A.S.A. 1947, § 19-1421.

14-50-206. Attorney for commission.

The city attorney shall act as attorney for the civil service commission in all trials or other legal transactions. However, the commission may appoint an attorney to represent the commission if it so desires.

History. Acts 1963, No. 221, § 3; A.S.A. 1947, § 19-1421.

14-50-207. Regular meetings, etc.

The city council or other governing body shall provide:

  1. Suitable rooms for the civil service commission to hold its meetings;
  2. All reasonable supplies; and
  3. The use of public buildings for holding examinations by the commission.

History. Acts 1963, No. 221, § 4; A.S.A. 1947, § 19-1422.

14-50-208. Quorum for business.

Three (3) members of the civil service commission shall constitute a quorum for transacting the business of the commission.

History. Acts 1963, No. 221, § 3; A.S.A. 1947, § 19-1421.

14-50-209. Investigative powers.

  1. In any investigation conducted by the commission provided for in this chapter, the commission shall have the power to subpoena, the power to require the attendance of any witness and the production of any papers or records pertinent to the investigation, and the power to administer oaths to the witnesses.
  2. To punish for contempt the nonattendance of witnesses, or the failure to produce books or papers, or the misbehavior of any person during the investigation, the commission may impose a fine of not less than two hundred fifty dollars ($250) nor more than five hundred dollars ($500) for each offense.

History. Acts 1963, No. 221, § 12; A.S.A. 1947, § 19-1430.

14-50-210. Removal of commissioner.

  1. The city council or other governing body of the city by a two-thirds vote may remove any of the civil service commissioners during his or her term of office for cause.
  2. In the event of the removal of one (1) or more of the commissioners, the city council or other governing body of the city shall fill the vacancy created by the removal.

History. Acts 1963, No. 221, § 2; A.S.A. 1947, § 19-1420.

14-50-211. Vacancy on commission.

  1. When a vacancy shall occur on the civil service commission by death, resignation, expiration of the term of office, or in any other manner, the vacancy shall be filled by the city council or other governing body of the city.
  2. In the event a vacancy occurs during the term of office of any member, his or her successor shall fill the unexpired term caused by the vacancy.
  3. At the normal expiration of the term, the council or other governing body of the city shall fill the vacancy by the appointment of a commissioner for a term of six (6) years.

History. Acts 1963, No. 221, § 2; A.S.A. 1947, § 19-1420.

Subchapter 3 — Civil Service System

14-50-301. Existing employees.

No person who is employed by a city at the time action is taken to establish or continue a civil service system under this chapter shall be required to take an examination except for promotion or advancement, but he or she shall retain his or her present position subject to the other provisions of this chapter.

History. Acts 1963, No. 221, § 10; A.S.A. 1947, § 19-1428.

14-50-302. Department heads.

  1. The provisions of this chapter shall not apply to department heads except as provided in this section.
  2. A “department head” means an employee in a supervisory capacity who is directly responsible to the elected governing body for the direction and execution of policies and services on city work projects and duties.
  3. Department heads shall be designated in the salary ordinance, and their status shall be a matter of fact, subject to subsection (b) of this section and the appeal provisions of the ordinance.
  4. Any employee who has established a classification under the provisions of the ordinance and who has been promoted, elevated, transferred, or otherwise placed in the capacity of a department head shall, upon termination of employment as a departmental head, be permitted to return to his or her previous classified job or to any position for which he or she may qualify with full accumulated seniority.
  5. No provision of this section shall be construed as amending public law requirements for licenses or education.

History. Acts 1963, No. 221, § 18; A.S.A. 1947, § 19-1436.

14-50-303. Private secretaries excepted.

Private secretaries to elected officials shall not be subject to the provisions of this chapter.

History. Acts 1963, No. 221, § 18; A.S.A. 1947, § 19-1436.

14-50-304. Rules and regulations generally.

    1. The civil service commission provided for in this chapter shall prescribe, amend, and enforce rules and regulations governing the employees of their respective cities who are under the civil service system.
    2. The rules and regulations shall have the force and effect of law.
    3. The commission shall keep a record of its examinations and shall investigate the enforcement and effect of this chapter and the rules as provided for in it.
  1. These rules shall provide for:
    1. The qualification of each applicant for appointment to any position affected by this chapter;
    2. Testing by open competitive examinations the relative fitness of applicants for the positions;
      1. Public advertisements of all examinations by publication of notice in some newspaper having a bona fide circulation in the city and by posting of notice at the city hall at least ten (10) days before the date of the examination.
      2. Examinations shall be held on the first Monday in April and the first Monday in October of each year and more often if necessary under rules and regulations as may be prescribed by the commission;
      1. The creation of eligibles lists for each position of employment in the city in which shall be entered the names of the successful applicants in the order of their standing in the examination.
        1. All lists for appointments or promotions as certified by the commission shall be and remain in force and effect for a period of one (1) year from the date thereof.
        2. At the expiration of this period, all right of priority under the lists shall cease;
      1. The rejection of applicants or eligibles who fail to comply with reasonable requirements of the commission in regard to age, sex, and physical condition or who have attempted fraud or deception in connection with the examination.
      2. The commission may adopt proper rules and regulations for a suitable physical examination of all applicants;
      1. Certification to the department head of the three (3) standing highest on the eligibility list for appointment for that rank of service, the department head to select for appointment one (1) of the three (3) certified to him or her and notify the commission thereof; and
      2. The promotion or advancement of the one (1) standing highest on the eligibility list for that rank of service;
      1. A period of probation not to exceed twelve (12) months before any appointment is complete and six (6) months before any promotion is complete, during which time the commission may discharge, upon reasons stated in writing by the department head, the probationer, in case of appointment, or reduce the probationer, in case of promotion.
      2. From discharge or reduction, there shall be no appeal;
      1. Temporary employees without examination with the consent of the commission in case of emergency and pending appointment from eligibles lists.
      2. No temporary appointment shall continue longer than sixty (60) days, nor shall successive temporary appointments be allowed except in time of grave danger, as the commission shall decide;
      1. Promotion based upon open competitive examinations of efficiency, character, and conduct; lists shall be created for each rank of service, and promotions shall be made therefrom as provided in this chapter; and
      2. Advancement in rank or increase in salary beyond the limits fixed for the grade by the commission which constitutes a promotion;
      1. Suspension for not longer than thirty (30) days; and
      2. Leave of absence;
      1. Discharge or reduction in rank or compensation after promotion or appointment is complete, only after the person to be discharged or reduced has been presented with the reasons for the discharge or reduction in writing.
        1. The person so discharged or reduced shall have the right within ten (10) days from the time of notice or discharge or reduction to reply in writing.
        2. Should the person deny the truth of the reasons upon which the discharge or reduction is predicated and demand a trial, the commission shall grant a trial as provided in this chapter. The reasons and the reply shall constitute a part of the trial and shall be filed with the record;
    3. An adoption and amendment of rules after public notice and hearing; and
    4. The preparation of a record of all hearings and other proceedings before it, which shall be stenographically reported.
  2. The commission shall adopt such rules not inconsistent with this chapter for the necessary enforcement of this chapter.

History. Acts 1963, No. 221, § 5; A.S.A. 1947, § 19-1423.

Research References

Ark. L. Rev.

Case Note, Lost in Translation: Combs v. City of Springdale, An Overview of the Ins and Outs of Appeals Procedure for Administrative Decisions by Local Governments, 61 Ark. L. Rev. 351.

14-50-305. Departmental regulations.

All employees covered by a civil service system established or continued under the provisions of this chapter shall be governed by the regulations set out by the heads of their respective departments and approved by the city council or other governing body of the city in their respective municipalities.

History. Acts 1963, No. 221, § 6; A.S.A. 1947, § 19-1424.

14-50-306. Political activity prohibited.

  1. No employee in any department affected by this chapter shall engage in the solicitation of any subscription funds or assessments or contribute thereto for any political party or purpose.
  2. An employee shall not be connected with any political campaign or political management except to cast his or her vote and to express his or her personal opinion privately.

History. Acts 1963, No. 221, § 14; A.S.A. 1947, § 19-1432.

Cross References. Political activity of public employees permitted, § 21-1-207.

14-50-307. Employees and compensation fixed.

The city council or other governing body shall from time to time fix the number of employees and the salaries to be drawn by each as well as the vacation and sick leave of employees in the departments affected by this chapter.

History. Acts 1963, No. 221, § 17; A.S.A. 1947, § 19-1435.

14-50-308. Certification for compensation.

  1. The secretary of the civil service commission shall file with the treasurer or disbursing officer of his or her city a certificate of those entitled to compensation from the city under this chapter.
  2. No compensation shall be allowed to any member of the system of the affected cities unless his or her name shall be so certified by the secretary.

History. Acts 1963, No. 221, § 11; A.S.A. 1947, § 19-1429.

14-50-309. Examinations.

All examinations provided for in this chapter shall be fair and impartial and designed to test the qualifications of the applicants for the particular service and position to be filled.

History. Acts 1963, No. 221, § 9; A.S.A. 1947, § 19-1427.

14-50-310. Suspension of competition.

In the case of a vacancy in a position requiring peculiar or exceptional qualifications of a scientific, professional, or expert character, upon satisfactory evidence that competition is impracticable and the position can best be filled by the selection of some person designated and of recognized attainment, the commission by majority vote may suspend competition in this case. However, the suspension shall not be general in its application, and each case must be handled on its own merits.

History. Acts 1963, No. 221, § 8; A.S.A. 1947, § 19-1426.

14-50-311. Discharge or reduction in rank or compensation.

    1. No civil service employees under a system established or continued pursuant to this chapter shall be discharged or reduced in rank or compensation without being notified in writing of the discharge and the cause therefor.
    2. In case of discharge or reduction, the affected or accused person shall have written notice of the action at the time it is taken.
    1. Within ten (10) days after the notice in writing is served upon the officer, private, or employee, he or she may request if he or she so desires a trial before the civil service commission on the charges alleged as grounds for discharge.
      1. In the event a request for trial is made, the commission shall fix a date for the trial not more than thirty (30) days after request therefor is made.
      2. If the request for trial is not made within ten (10) days from the date of service of notice of discharge, the discharge shall become final and no trial shall be granted thereafter.
    1. In the event of a trial, the officer, private, or employee requesting the trial shall be notified of the date and place of the trial at least ten (10) days prior to the date thereof.
    2. The employee shall have compulsory process to have witnesses present at the trial.
      1. The chair of the commission shall preside at all trials and shall determine and decide all questions relative to pleadings and the admissibility of evidence.
      2. The decision of the commission shall be by a majority vote of the members of the commission.
      1. In all trials under this section for cities having a mayor-council form of government and a population of not less than fifty-five thousand (55,000), the commission shall employ an attorney to advise and represent the commission.
      2. The attorney shall not be the city attorney, nor shall he or she be associated with any attorney then employed by the city.
      1. A right of appeal by the city or employee is given from any decision of the commission to the circuit court within whose jurisdiction the commission is situated.
      2. The appeal shall be taken by filing with the commission within thirty (30) days from the date of the decision a notice of appeal. Whereupon, the commission shall send to the court all pertinent documents and papers, together with a complete transcript of all evidence and testimony adduced before the commission and all findings and orders of the commission.
        1. The court shall review the commission's decision on the record and in addition may hear testimony or allow the introduction of any further evidence upon the request of either the city or the employee.
        2. The testimony or evidence must be competent and otherwise admissible.
      1. A right of appeal is also given from any action from the circuit court to the Supreme Court.
      2. The appeal shall be governed by the rules of procedure provided by law for appeals from the circuit court to the Supreme Court.
  1. In the event that it is finally determined that there was a wrongful discharge or reduction in rank of any employee, the employee shall be entitled to judgment against the city for whatever loss he or she may have sustained by reason of his or her discharge or demotion, taking into consideration any remuneration which the employee may have received from other sources pending the final determination of his or her case.

History. Acts 1963, No. 221, §§ 7, 15; 1975, No. 260, § 1; A.S.A. 1947, §§ 19-1425, 19-1433.

Research References

Ark. L. Rev.

Case Note, Lost in Translation: Combs v. City of Springdale, An Overview of the Ins and Outs of Appeals Procedure for Administrative Decisions by Local Governments, 61 Ark. L. Rev. 351.

Case Notes

Discharge.

Discharge for reason that work was unsatisfactory was not sustained by a preponderance of the evidence where employee had been continued in her employment after expiration of six months' probationary period and where evidence as to the alleged poor quality of work was vague and uncertain. City of Little Rock v. Tucker, 234 Ark. 35, 350 S.W.2d 531 (1961) (decision under prior law).

14-50-312. Reductions, reinstatements, or transfers in personnel.

    1. If it shall become necessary to reduce the personnel of any department reduction shall be from the lowest rank, seniority having priority.
    2. In the event the personnel is subsequently increased, any employee who has been transferred to another department or discharged by reason of the reduction shall have seniority rights over any other employee or any applicant for employment to any position created on account of the increase in personnel.
  1. If the personnel of any department is reduced by reason of the transfer of any duties of one department to another department, any person so discharged shall have priority in the department to which the duties are transferred over any employee performing the duties who does not have a seniority rating at least equal to the person relieved on account of the transfer of the duties and over any applicant for employment covering the duties.
  2. When a vacancy occurs in any department, any employee of the same classification in any other department, seniority having priority, shall have the option of transferring to the vacancy in the department.

History. Acts 1963, No. 221, § 16; A.S.A. 1947, § 19-1434.

14-50-313. Political discrimination prohibited.

No person in any department affected by this chapter shall be appointed, reduced, suspended, discharged, or otherwise discriminated against because of his or her political opinion or affiliation.

History. Acts 1963, No. 221, § 13; A.S.A. 1947, § 19-1431.

Chapter 51 Civil Service for Police and Fire Departments

A.C.R.C. Notes. Acts 1987, No. 530, §§ 1, 2, provided that any city of the second class may establish, maintain, and operate a civil service system for its police and fire departments in the manner prescribed by law for the establishment, etc., of these systems in cities of the first class, and that the provisions of Acts 1933, No. 28, as amended, Acts 1949, No. 326, as amended, and all other laws relating to the authority of cities of the first class to establish, etc., these systems shall be equally applicable to the establishment, etc., of these systems in cities of the second class.

Acts 1989, No. 191, § 1, provided: “Every city of the first class having the mayor-council form of government and a population of no less than 37,000 inhabitants nor more than 70,000 inhabitants according to the 1980 federal decennial census may add two more members to its civil service commission. The law applicable to the commission shall apply to the additional members except that in each such city the first two additional members appointed pursuant to this act shall serve staggered terms to be determined by lot so that one will serve a three year term and one a six year term and their successors shall serve six year terms.”

Subchapter 1 — General Provisions

Effective Dates. Acts 1933, No. 28, §§ 21, 22: Feb. 13, 1933. Emergency clause provided: “That there is dire necessity for control and management of the police and fire departments of cities affected by this act in order to increase the efficiency of the personnel of said departments and affording much needed protection to citizens in the prosecution of crimes and fires, and this act being necessary for the public peace, health and safety, an emergency is hereby declared to exist, and this act shall take effect and be in full force from and after its passage.”

14-51-101. Definitions.

As used in this chapter, unless the context otherwise requires: “board”, “commission”, or “commissioners” means the board of civil service commissioners of the police and fire departments as provided for in § 14-51-201 et seq.

History. Acts 1933, No. 28, § 16; Pope's Dig., § 9960; A.S.A. 1947, § 19-1616.

14-51-102. Applicability.

In addition to all other powers possessed by cities of the first class, these cities may establish a board of civil service commissioners for the police and fire departments of their cities.

History. Acts 1949, No. 326, § 1; 1971, No. 166, § 1; A.S.A. 1947, § 19-1601.1.

Publisher's Notes. Acts 1949, No. 326, § 3a, provided that none of the provisions of this act would be applicable to civil service commissions in cities of the first class having a commission form of government; however, Acts 1959, No. 97, § 1, repealed § 3a and in §§ 2 and 3 provided that all cities of the first class having duly established civil service commissions under the provisions of Acts 1933, No. 28, and not having fully complied with Acts 1949, No. 326, were to take immediate steps to do so and provided that the action of all civil service commissions referred to were validated and that all civil servants affected should retain all rights acquired.

Case Notes

Cited: Barrows v. City of Fort Smith, — F. Supp. 2d —, 2008 U.S. Dist. LEXIS 38222 (W.D. Ark. May 9, 2008).

14-51-103. Penalty.

Any person violating any part of this chapter shall be subject to civil suit for injunctive and declaratory relief by the aggrieved party.

History. Acts 1933, No. 28, § 20; Pope's Dig., § 9964; A.S.A. 1947, § 19-1618; Acts 1993, No. 206, § 1.

Subchapter 2 — Board of Civil Service Commissioners

Effective Dates. Acts 1989, No. 432, § 4: Mar. 9, 1989. Emergency clause provided: “It is hereby found and determined by the General Assembly that the chairmanship of many city civil service commissions changes during the first week in May; that this act provides that the chairmen should be selected by the commission; and that this act must go into effect immediately in order to coincide with the change in chairmanships. Therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1989, No. 439, § 5: Mar. 9, 1989. Emergency clause provided: “It is hereby found and determined by the General Assembly that the powers and duties of Civil Service Commissions established pursuant to Act 28 of 1933, as amended, require immediate clarification in that such commissions' interference with the day to day operations and management of police and fire departments is contrary to the efficient and effective operation of such departments and is injurious to the public health, safety and welfare. Therefore, an emergency is hereby declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Case Notes

In General.

There is nothing in this subchapter creating an enforceable expectation of continued employment; it merely gives employees certain procedural rights surrounding termination. Dalton v. City of Russellville, 290 Ark. 603, 720 S.W.2d 918 (1986).

14-51-201. Appointment of members.

  1. In all cities of the first class having a civil service system, the city's governing body shall name by ordinance five (5) upright and intelligent citizens of their cities as a board of civil service commissioners for the police and fire departments or the nonuniformed employees.
  2. The commissioners shall hold office as follows:
    1. One shall hold office until the first Monday in April of the second year after his or her appointment;
    2. One shall hold office until the first Monday in April of the fourth year after his or her appointment;
    3. One shall hold office until the first Monday in April of the sixth year after his or her appointment;
    4. One shall hold office until the first Monday in April of the eighth year after his or her appointment; and
    5. One shall hold office until the first Monday in April of the tenth year after his or her appointment.
    1. In all cities of the first class having a civil service system, the governing body may add by ordinance two (2) more members to its civil service commission. The law applicable to the commission shall apply to the additional members, except that in each such city the first two (2) additional members appointed pursuant to this subsection shall serve staggered terms to be determined by lot so that one (1) will serve a three-year term and one (1) a six-year term, and their successors shall serve six-year terms.
    2. In all cities having a population of one hundred thousand (100,000) or more persons and having a civil service system, the governing body may add by ordinance four (4) more members to its civil service commission. The law applicable to the commission shall apply to the additional members, except that in each such city the first four (4) additional members appointed pursuant to this subsection shall serve staggered terms to be determined by lot so that two (2) will serve a three-year term and two (2) a six-year term, and their successors shall serve six-year terms.

History. Acts 1949, No. 326, § 1; 1971, No. 166, § 1; A.S.A. 1947, § 19-1601.1; Acts 1993, No. 206, § 2; 1997, No. 1221, § 2.

Case Notes

De Facto Commissioners.

Where plaintiffs filed representative suit in behalf of all city police officers of Little Rock whose employment was cut off by service in the war, against members of Little Rock Civil Service Commission and asked that commissioners be permanently enjoined from acting as commissioners on theory that 1933 act authorized cities of first class to create a civil service commission for police officers and fire fighters only, and 1937 act authorized cities of more than 75,000 to create a second civil service commission for employees other than fire fighters and police officers, that hence members of the commission had violated law prohibiting members from holding more than one political office, court properly sustained demurrer to the complaint, as even though plaintiffs were right in their theory that commissioners were serving on two commissions, the defendants would still have been de facto commissioners and equity had no authority to decide whether defendants were also de jure officers. Smith v. Little Rock Civil Serv. Comm'n, 214 Ark. 765, 218 S.W.2d 366 (1949) (decision under prior law).

Ordinances.

Ordinance appointing an individual to civil service commission was not legislation subject to referendum under Ark. Const. Amend. 7, inasmuch as the ordinance in questioning was merely a procedural device for administering a previous ordinance adopted pursuant to this section. Greenlee v. Munn, 262 Ark. 663, 559 S.W.2d 928 (1978).

14-51-202. Qualifications of commissioners.

  1. The commissioners shall be:
    1. Citizens of the State of Arkansas and residents of the city for more than three (3) years preceding their appointments; and
    2. Qualified electors of the city at all times during their appointments.
    1. No person on the commission shall hold or be a candidate for any political office under any national, state, county, or municipal government or be connected in any way in any official capacity with any political party or political organization.
    2. No person as enumerated in this subsection shall be eligible as a member of the board who at the time of his or her election shall hold any office.
  2. The commissioners shall be familiar with these statutes, civil rights laws, and all other state and federal public employment laws.

History. Acts 1949, No. 326, § 1; 1971, No. 166, § 1; A.S.A. 1947, § 19-1601.1; Acts 1993, No. 206, § 3; 2009, No. 738, § 1.

Amendments. The 2009 amendment in (a) inserted (a)(2), redesignated the remaining text accordingly, and made related changes.

14-51-203. Organizational meeting.

  1. The commissioners named as provided in this chapter shall meet and organize.
  2. The commissioner who shall be elected for a term of two (2) years shall act as chair.

History. Acts 1933, No. 28, § 2; Pope's Dig., § 9946; A.S.A. 1947, § 19-1602.

14-51-204. Chair of civil service commission.

  1. The board of civil service commissioners shall select annually on the first Monday of May one (1) of the commissioners to serve as chair of the commission.
    1. The chair shall preside over all meetings of the commission and be its executive officer.
    2. The chair shall vote on questions before the board.
    1. In the absence of the chair, the board shall elect one (1) of its number to act instead of the chair.
    2. The member so elected shall be clothed with all the powers, rights, and duties of the chair during the absence of the chair.

History. Acts 1933, No. 28, § 2; 1949, No. 326, § 1; Pope's Dig., § 9946; Acts 1971, No. 166, § 1; A.S.A. 1947, §§ 19-1601.1, 19-1602; Acts 1989, No. 432, § 1; 1997, No. 131, § 1.

14-51-205. Secretary of board.

  1. The board shall elect one (1) of its members as secretary.
  2. The secretary shall:
    1. Keep the books and records of the board;
    2. Conduct the correspondence of the board;
    3. Report the evidence in all trials or cause the evidence to be reported, for which the reasonable expense shall be paid by the municipality;
    4. Act as clerk when the board is conducting a trial court;
    5. Work with and act as liaison to the city employee assigned to assist the board; and
    6. Perform any other duties that may be ordered by the board.

History. Acts 1949, No. 326, § 1; 1971, No. 166, § 1; A.S.A. 1947, § 19-1601.1; Acts 1993, No. 206, § 4.

14-51-206. Attorney for commission and city.

  1. Except if the commission decides otherwise, the city attorney shall act as attorney for the commission in all trials or other legal transactions. However, the commission may appoint an attorney to represent the commission if it so desires.
  2. The city shall hire on an annual basis independent legal counsel to represent the city and the department head when the city's managerial employment decisions are brought for review before the commission and in all trials, proceedings, or other legal transactions before the commission.

History. Acts 1949, No. 326, § 1; 1971, No. 166, § 1; A.S.A. 1947, § 19-1601.1; Acts 1993, No. 206, § 5; 1995, No. 1135, § 1.

14-51-207. Responsibilities of the city.

The city council or other governing body, as the case may be, shall:

  1. Provide suitable rooms for the board to hold meetings;
  2. Allow all reasonable supplies;
  3. Permit use of public buildings for holding examinations by the board;
  4. Provide, designate, manage, and supervise a paid city employee, full-time or part-time, as may be deemed necessary by the city's chief executive officer, to be known as the administrative assistant to the commission. This assistant shall help with the clerical and administrative needs of the board; and
  5. Provide adequate funding for legal counsel as enumerated in this chapter.

History. Acts 1933, No. 28, § 2; Pope's Dig., § 9946; A.S.A. 1947, § 19-1602; Acts 1993, No. 206, § 6.

14-51-208. Quorum for business.

A majority of the total number of the members of a civil service commission authorized by statute and city ordinance shall constitute a quorum for any business, meeting, or hearing.

History. Acts 1949, No. 326, § 1; 1971, No. 166, § 1; A.S.A. 1947, § 19-1601.1; Acts 2013, No. 750, § 1.

Amendments. The 2013 amendment rewrote the section.

14-51-209. Investigative powers.

  1. In any investigation conducted by the commission provided for in this chapter, the commission shall have the power of subpoena, to require the attendance of any witness and the production of any papers or records pertinent to the investigation, and to administer oaths to the witnesses.
  2. To punish for contempt the nonattendance of witnesses, or the failure to produce books or papers, or misbehavior of any person during the investigation, the commission may impose a fine not to exceed five hundred dollars ($500) for each offense.

History. Acts 1933, No. 28, § 10; Pope's Dig., § 9954; A.S.A. 1947, § 19-1610; Acts 1993, No. 206, § 7.

14-51-210. Removal of commissioner.

  1. The city council or governing body of the city by a two-thirds vote may remove any of the commissioners during their term of office for cause.
  2. In the event of the removal of one (1) or more of the commissioners, the council or governing body shall fill the vacancy created by the removal.

History. Acts 1949, No. 326, § 1; 1971, No. 166, § 1; A.S.A. 1947, § 19-1601.1.

Case Notes

Cause.

City council had the right to determine what would have been a sufficient cause for removal of commissioners. McAllister v. McAllister, 200 Ark. 171, 138 S.W.2d 1040 (1940) (decision under prior law).

Resolution.

Since former statute did not require removal of civil service commissioners to be by ordinance, a resolution of city council was sufficient. McAllister v. McAllister, 200 Ark. 171, 138 S.W.2d 1040 (1940) (decision under prior law).

14-51-211. Vacancy on board.

  1. When a vacancy shall occur on the board by death, resignation, or expiration of the term of office, or in any other manner, the vacancy shall be filled by the city council or governing body of the city.
  2. In the event a vacancy occurs during the term of office of any commissioner, except as caused by the normal expiration of his or her term, his or her successor shall fill the unexpired term caused by the vacancy, and at the normal expiration of the term, the council shall fill the vacancy by the appointment of a commissioner for a period of six (6) years.

History. Acts 1949, No. 326, § 1; 1971, No. 166, § 1; A.S.A. 1947, § 19-1601.1.

14-51-212. No control over police or fire departments.

  1. The powers and duties of every civil service commission established pursuant to this chapter shall be and are hereby expressly limited such that the said commissions shall not have any control nor shall said commissions attempt to exercise any control over the normal and routine day-to-day operations of a police or fire department, directly or indirectly.
  2. No provision of this chapter shall be construed to provide authorization to said commissions to have such authority.

History. Acts 1989, No. 439, § 1.

Case Notes

Policy Against Smoking.

City civil service commission's rule requiring a grievance hearing for a violation of the city's policy against smoking by police officers while on duty did not constitute interference, within the meaning of this section, in the daily operations of the police department, and the trial court did not err in ordering the commission to follow its own rule. Williams v. Taylor, 311 Ark. 94, 841 S.W.2d 618 (1992).

Cited: Donaldson v. Taylor, 327 Ark. 93, 936 S.W.2d 551 (1997).

Subchapter 3 — Civil Service System

Effective Dates. Acts 1949, No. 326, § 4: approved Mar. 21, 1949. Emergency clause provided: “Whereas, this Act is necessary to give proper protection to Civil Service employees in cities of the first class, to provide a more equitable means of administering Civil Service laws in said cities, and to properly protect the public peace, health and safety, an emergency is hereby declared to exist, and this Act shall be in full force and effect from and after its passage.”

Acts 1973, No. 101, § 3: Feb. 12, 1973. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that the existing laws of this State relative to the holding of civil service examinations for municipal policemen and firemen, when read with the other laws of the State relative to civil service for policemen and firemen are vague and unclear regarding the time and frequency of holding such examinations and with respect to the priority of the names on lists compiled as a result of such examinations; that this confusion and uncertainty should be removed as soon as possible in order to clarify the law with respect to holding such examinations and to clarify the rights of persons taking such examination in order to provide proper police and fire protection in the various municipalities in this State; and this Act is designed to accomplish this worthy purpose and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1987, No. 262, § 3: Mar. 17, 1987. Emergency clause provided: “It is hereby found and determined by the General Assembly that some of the civil service commissions affected by this Act will test police and firefighter candidates in April; that this Act should be in effect prior to the testing; that unless this emergency clause is enacted this Act will not go into effect prior to April. Therefore an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1987, No. 657, § 4: Apr. 6, 1987. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 952 of 1977, as amended, is unnecessary and that the civil service commissions created under that law are unnecessary; that the Act should be immediately repealed and the commissions immediately abolished, in order to provide for the efficient operation of the offices subject to the same. Therefore, an emergency is hereby declared to exist and this Act, being immediately necessary for the preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1989, No. 439, § 5: Mar. 9, 1989. Emergency clause provided: “It is hereby found and determined by the General Assembly that the powers and duties of Civil Service Commissions established pursuant to Act 28 of 1933, as amended, require immediate clarification in that such commissions' interference with the day to day operations and management of police and fire departments is contrary to the efficient and effective operation of such departments and is injurious to the public health, safety and welfare. Therefore, an emergency is hereby declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

14-51-301. Rules and regulations generally.

    1. The board provided for in this chapter shall prescribe, amend, and enforce rules and regulations governing the fire and police departments of its respective cities.
    2. The rules and regulations shall have the same force and effect of law.
    3. The board shall keep a record of its examinations and shall investigate the enforcement and effect of this chapter and the rules as provided for in this section.
  1. These rules shall provide for:
      1. The qualifications of each applicant for appointment to any position on the police or fire department.
          1. A person must be at least eighteen (18) years of age and, except as provided in subdivision (b)(1)(C) of this section, must not have arrived at thirty-five (35) years of age to be eligible for appointment to any position on the fire department.
          2. The board may require a person to be at least twenty-one (21) years of age to be eligible for appointment to any position on the fire department.
        1. A person shall meet the minimum standards established by the Arkansas Commission on Law Enforcement Standards and Training to be eligible for appointment to the police department affected by this chapter.
      2. However, the maximum age limit for appointment to any position with a fire department in subdivision (b)(1)(B)(i) of this section shall not apply to:
        1. Any person who has at least two (2) years of previous experience as a paid firefighter with another fire department and whose years of experience as a paid firefighter when subtracted from the person's age leaves a remainder of not more than thirty-two (32) years;
        2. Any person who is applying for a position with a fire department in which the primary functions of the job involve duties that are administrative, managerial, or supervisory in nature; or
        3. A current or former service member of the regular or reserve component of the uniformed services of the United States as defined under 10 U.S.C. § 101 who is within three (3) years of separation or retirement from the regular or reserve component of the uniformed services of the United States.
      1. Open competitive examinations to test the relative fitness of applicants for the positions.
        1. The examinations are to be protected from disclosure and copying, except that the civil service commission shall designate a period of time following the conclusion of testing in which an employee taking an examination shall be entitled to review his or her own test results.
        2. During the employee review process, the employee may not copy test questions in any form whatsoever;
      1. Public advertisement of all examinations by publication of notice in some newspaper having a bona fide circulation in the city and by posting of notice at the city hall at least ten (10) days before the date of the examinations.
      2. The examinations may be held on the first Monday in April or the first Monday in October, or both, and more often if necessary under such rules and regulations as may be prescribed by the board;
        1. (a) The creation and maintenance of current eligibles lists for each rank of employment in the departments, in which shall be entered the names of the successful candidates in the order of their standing in the examination. However, for ranks in each department where there may not be openings during the effective period of a list, the board may establish rules to create the eligibles list on an as-needed basis.
          1. A person is not eligible for examination for advancement from a lower rank to a higher rank until that person has served at least one (1) year in the lower rank, except in case of emergency, which emergency shall be decided by the board. The board shall determine the rank or ranks eligible to be examined for advancement to the higher rank.
          2. If the board designates an effective period for eligibles lists of more than one (1) year under subdivision (b)(4)(B)(i) of this section, a person shall be eligible for examination for advancement from a lower rank to a higher rank if the person is within twelve (12) months of meeting the time in service requirement for eligibility. However, if that person takes the examination and then is placed on the eligibles list for promotion, the person shall not be promoted from the eligibles list until the person meets the minimum service time requirement in the lower rank as established by the board.
          3. The eligibles list for promotion shall be certified within ninety (90) days upon completion of the examination process for advancement under this section.
          1. Unless the board designates a longer effective period for eligibles lists that is not less than one (1) year nor more than two (2) years, all lists for appointments or promotions as certified by the board shall be effective for the period of one (1) year.
            1. If the period of the eligibles list is for more than one (1) year, the time period shall be established and certified before a component of the test is administered to an employee.
            2. After the eligibles list is certified, the time period shall not be extended.
        1. At the expiration of this period, all right of priority under the lists shall cease;
      1. The rejection of candidates as eligibles who fail to comply with reasonable requirements of the board in regard to age, sex, physical condition, or who have been guilty of a felony, or who have attempted fraud or deception in connection with the examination.
        1. All applicants for appointment and all applicants for reinstatement shall undergo a suitable physical examination.
          1. The examination shall be conducted in the manner and form as provided by law.
          2. If no provision has been made by existing law for such examination, then the board may adopt proper rules and regulations to carry this subdivision (b)(5) into effect;
    1. Certification to the department head of the three (3) standing highest on the eligibility list for appointment for that rank of service, and for the department head to select for appointment or promotion one (1) of the three (3) certified to him or her and notify the commission thereof;
      1. A period of probation not to exceed twelve (12) months for potential fire department appointees and at least one (1) year but no longer than two (2) years for potential law enforcement appointees before any appointment is complete and six (6) months before any promotion is complete.
      2. During the period, the probationer may be discharged in case of an appointment or reduced in case of promotion by the chief of police or the chief of the fire department;
      1. Temporary employees without examination with the consent of the commission, in cases of emergency, and pending appointment from the eligibles list.
        1. Except as provided in subdivision (b)(8)(B)(iii) of this section, a temporary promotion or appointment for a vacancy created by death, termination, resignation, demotion, retirement, or promotion shall not be made for longer than sixty (60) days when there is a current eligibles list, except to the extent necessary to comply with the Uniformed Services Employment and Reemployment Rights Act of 1994, 20 C.F.R. Part 1002, as in effect on January 1, 2015.
        2. Except as provided in subdivision (b)(8)(B)(iii) of this section, in the absence of a current eligibles list, a temporary promotion or appointment may be allowed for a vacancy created by death, termination, resignation, demotion, retirement, or promotion until an eligibles list is certified unless the position is determined to be eliminated or not funded by the governing body of the city. A temporary promotion for a vacancy created by death, termination, resignation, demotion, retirement, or promotion shall not last longer than sixty (60) days, except to the extent necessary to comply with the Uniformed Services Employment and Reemployment Rights Act of 1994, 20 C.F.R. Part 1002, as in effect on January 1, 2015.
        3. If an appeal is filed in connection with a vacancy that is created by a termination or demotion, the vacancy may be filled by a temporary promotion until all appeals in connection with the termination or demotion are exhausted.
      2. A vacancy that is created by vacation, bereavement leave, medical leave, military leave, or suspension on a day-to-day basis may be filled by a temporary promotion on a day-to-day basis as vacancies occur.
      3. An increase in salary beyond the limits fixed for the grade by the rules of the commission may be allowed while an employee is working outside of his or her grade while temporarily promoted to fill a vacancy under this subdivision (b)(8);
        1. Establishing eligibility lists for promotion based upon open competitive examinations.
        2. The examinations are to be protected from disclosure and copying, except that the civil service commission shall designate a period of time following the conclusion of testing in which an employee taking an examination shall be entitled to review his or her own test results.
        3. During the employee review process, the employee may not copy test questions in any form whatsoever.
        4. The exams may include a rating of applicants based on results of written, oral, or practical examinations, length of service, efficiency ratings, and educational or vocational qualifications.
          1. Lists shall be created for each rank of service and promotions made from the lists as provided in this section.
          2. Promotions shall be made within sixty (60) calendar days of a vacancy created by death, termination, resignation, demotion, retirement, or promotion unless the position is determined to be eliminated, except to the extent necessary to comply with the Uniformed Services Employment and Reemployment Rights Act of 1994, 20 C.F.R. Part 1002, as in effect on January 1, 2015.
      1. Advancement in rank or increase in salary beyond the limits fixed for the grade by the rules of the commission shall constitute a promotion;
    2. Suspension for not longer than thirty (30) calendar days and leave of absence;
      1. Discharge or reduction in rank or compensation after promotion or appointment is complete, only after the person to be discharged or reduced has been presented with the reasons for the discharge or reduction in writing.
        1. The person so discharged or reduced shall have the right, within ten (10) days from the date of notice of discharge or reduction, to reply in writing.
        2. Should the person deny the truth of the reasons upon which the discharge or reduction is predicated and demand a trial, the commission shall grant a trial as provided in this chapter.
        3. The reasons and the reply shall constitute a part of the trial and be filed with the record;
    3. The adoption and amendment of rules after public notice and hearing;
    4. The preparation of a record of all hearings and other proceedings before it, which shall be stenographically reported; and
    5. A review of complaints filed by any citizen pursuant to rules promulgated by the commission, including rules that give the commission the authority to consider certain personnel issues in executive session and to establish any necessary appellate procedures.
    1. The board may prescribe, amend, and enforce rules and regulations that provide for and apply to a category of police officers whose promotion to any rank or grade below that of sergeant is exempted, in whole or in part, from subdivisions (b)(4) and (b)(9) of this section.
    2. If the board prescribes the rules and regulations authorized in subdivision (c)(1) of this section, the board shall prescribe criteria for the promotions.
  2. The commission shall adopt such rules not inconsistent with this chapter for necessary enforcement of this chapter, but shall not adopt any rule or rules which would authorize any interference with the day-to-day management or operation of a police or fire department.

(b) If the board creates an eligibles list on an as-needed basis and a vacancy is created as a result of death, termination, resignation, demotion, retirement, or promotion, the chief of the fire department or police department shall notify the board within five (5) business days, and the board shall schedule an examination to establish an eligibles list from which an appointment or promotion shall be made unless the position is determined to be eliminated or not funded by the governing body of the city.

History. Acts 1933, No. 28, § 3; Pope's Dig., § 9947; Acts 1959, No. 205, § 1; 1973, No. 101, § 1; 1977, No. 450, § 1; A.S.A. 1947, § 19-1603; Acts 1987, No. 262, § 1; 1987, No. 276, § 1; 1987, No. 657, § 3; 1989, No. 439, § 2; 1993, No. 206, § 8; 1995, No. 473, § 1; 1997, No. 542, § 1; 1997, No. 1221, § 1; 1999, No. 303, § 1; 2001, No. 1597, § 1; 2003, No. 280, § 1; 2005, No. 1953, § 1; 2007, No. 743, § 1; 2009, No. 527, §§ 1, 2; 2011, No. 1029, § 1; 2013, No. 468, § 1; 2013, No. 1061, § 2; 2015, No. 579, § 1; 2019, No. 192, § 1; 2019, No. 206, § 1.

Publisher's Notes. Formerly, the last proviso in subdivision (b)(1) of this section provided that the age limits were not applicable to any persons employed in a police or fire department at the time of the passage of this act. Acts 1933, No. 28, was signed by the Governor and became effective on February 13, 1933.

Amendments. The 2009 amendment inserted (b)(4)(B)(i) (b) , redesignated the remaining text of (b)(4)(B)(i) accordingly, and inserted “of employment or promotion” in (b)(8)(B).

The 2011 amendment added (b)(4)(A)(i) (b) ; rewrote (b)(8)(B); added (b)(8)(C); and added (b)(9)(A)(v) (b) .

The 2013 amendment by No. 468, in (b)(4)(A)(ii), substituted “A person is not” for “No person shall be” and “has” for “shall have”; and added (b)(4)(A)(ii) (c)

The 2013 amendment by No. 1061 inserted “for potential fire department appointees and at least one (1) year but no longer than two (2) years for potential law enforcement appointees” in (b)(7)(A).

The 2015 amendment added “except to the extent…January 1, 2015” at the end of (b)(8)(B)(i) and (ii); and added “except to the extent…January 1, 2015” at the end of (b)(9)(A)(v) (b)

The 2019 amendment by No. 192 added (b)(1)(C)(iii).

The 2019 amendment by No. 206 rewrote (b)(1)(B).

Research References

Ark. L. Rev.

Administrative Law in Arkansas, 4 Ark. L. Rev. 107.

U. Ark. Little Rock L.J.

Survey—Civil Rights, 11 U. Ark. Little Rock L.J. 149.

Survey—Miscellaneous, 11 U. Ark. Little Rock L.J. 235.

Case Notes

Constitutionality.

Where plaintiff was passed over for promotion to assistant police chief and alleged denial of due process and equal protection under the 14th amendment based on violations of this section, supreme court held that alleged violations of civil service statutes did not constitute a clearly established right under the federal constitution. Virden v. Roper, 302 Ark. 125, 788 S.W.2d 470 (1990).

In General.

Subdivision (a)(1) gives a civil service commission the authority to enforce fire department regulations adopted by city council. Frego v. Jonesboro Civil Serv. Comm'n, 285 Ark. 35, 684 S.W.2d 258 (1985).

Appointments and Promotions.

Increase in pay within pay range of a rank is not a promotion or advancement in rank under subdivision (b)(9) requiring an examination. Haynie v. City of Little Rock, 243 Ark. 86, 418 S.W.2d 633 (1967).

The requirement of subdivision (b)(4)(A)(ii) that a person serve at least one year in a lower rank before becoming eligible for promotion expressly applies to advancement and there is nothing in this section suggesting that vacancies must be filled only by an advancement of personnel through the ranks; the provisions clearly contemplate otherwise by making a distinction between persons who are promoted and those who are appointed. Amason v. City of El Dorado, 281 Ark. 50, 661 S.W.2d 364 (1983).

The Arkansas civil service statutes for police officers and fire fighters do not require that a vacancy in the office of chief of police must be filled by promotion from within the ranks of the police department. Amason v. City of El Dorado, 281 Ark. 50, 661 S.W.2d 364 (1983).

The statutory language in subdivision (b)(6) which speaks of certification of the three highest persons refers to the appointment of applicants, not the promotion of employees. Bradley v. Bruce, 288 Ark. 342, 705 S.W.2d 431 (1986), rehearing denied, 288 Ark. 342, 713 S.W.2d 451 (1986).

This section specifically provides that promotion shall be made on the basis of the examination; there is no provision authorizing any other criterion, including seniority. Bradley v. Bruce, 288 Ark. 342, 705 S.W.2d 431 (1986), rehearing denied, 288 Ark. 342, 713 S.W.2d 451 (1986).

This section does not provide for seniority to be used as a factor in promotion; thus seniority cannot be used as a factor. Worth v. Civil Serv. Comm'n, 294 Ark. 643, 746 S.W.2d 364 (1988).

City lost the protection of the saving clause of § 14-48-102 when, at the time of the government reorganization in 1967, it promoted firemen in accordance with the law governing cities of the first class having a city administrator form of government contained in § 14-48-101 et seq., including this section which requires promotion solely on the basis of examination. City of Fort Smith v. Driggers, 305 Ark. 409, 808 S.W.2d 748 (1991).

Discharges or Reductions.

Action of demoted police officer making scurrilous and defamatory allegations against mayor and civil service commission was held insubordination in violation of the rules and regulations of the commission, justifying his dismissal. Ward v. City of Fort Smith, 201 Ark. 1117, 148 S.W.2d 164 (1941).

Where city had regulation that a department head could not be discharged without notification in writing from governing body of city, the city administrator alone did not have authority to discharge the chief of the municipal fire department. Sanders v. City of Fort Smith, 251 Ark. 494, 473 S.W.2d 182 (1971).

Where private citizen files charges against a police officer, civil service commission, after conducting a trial to investigate, has the authority to dismiss the officer. Civil Serv. Comm'n v. Bass, 252 Ark. 178, 477 S.W.2d 842 (1972).

Judgment affirming findings of civil service commission was reversed where neither the notice of discharge nor the findings of the commission upholding a dismissal contained a statement of the rules and regulations that were allegedly violated. Magness v. Shock, 262 Ark. 148, 554 S.W.2d 342 (1977).

A civil service commission is authorized to modify, by increasing or decreasing, the punishment imposed by a police chief. Tovey v. City of Jacksonville, 305 Ark. 401, 808 S.W.2d 740 (1991).

The modification of an officer's punishment, after a statutory hearing, cannot be construed as interference with the day-to-day management or operation of a police department, instead, it is the statutorily authorized enforcement of a regulation. Tovey v. City of Jacksonville, 305 Ark. 401, 808 S.W.2d 740 (1991).

Fire chief's letter gave a firefighter sufficient notice that the firefighter's conduct of fleeing from law enforcement officers was the reason for the firefighter's termination, satisfying the requirement of presenting the reason for a discharge in writing under subdivision (b)(11)(A) of this section; accordingly, the firefighter's argument that the firefighter's termination was not in accordance with state law was without merit. Lawrence v. City of Texarkana, 2011 Ark. 42, 378 S.W.3d 127 (2011).

Evidence.

Evidence was held to support civil service commission's findings in proceeding to dismiss chief of detectives charged with being drunk while on duty. Civil Serv. Comm'n v. McDougal, 198 Ark. 388, 129 S.W.2d 589 (1939), overruled in part, Tovey v. City of Jacksonville, 305 Ark. 401, 808 S.W.2d 740 (1991).

Finding of circuit court that charges were not sustained and restoring official to his position as chief of police was held not against preponderance of the testimony. Civil Serv. Comm'n v. Matlock, 205 Ark. 286, 168 S.W.2d 424 (1943).

Evidence supported civil service commission's finding of dismissal where police officer frequently left his work early while on the night shift, and on occasion, came to work after he had been drinking. Tittle v. City of Conway, 268 Ark. 1126, 599 S.W.2d 412 (Ct. App. 1980).

Examinations.

—In General.

That one occupying position of motor patrolman without examination was, as a result of an examination for that position, demoted to his original position as patrolman and another was appointed motor patrolman, was held not to show discrimination. Ward v. City of Fort Smith, 201 Ark. 1117, 148 S.W.2d 164 (1941).

Use of oral examinations in the selection process is not prohibited, but it must be capable of objective grading and review. Bennett v. Blytheville Civil Serv. Comm'n, 293 Ark. 136, 733 S.W.2d 414 (1987).

—Advancements in Rank.

Advancement in rank denotes an advance from a lower rank to a higher rank and not an increase in pay within the pay range of the rank. Haynie v. City of Little Rock, 243 Ark. 86, 418 S.W.2d 633 (1967).

Word “grade” does not mean a pay step within the pay range for a particular job class title, but is synonymous with “rank.” Haynie v. City of Little Rock, 243 Ark. 86, 418 S.W.2d 633 (1967).

Where city board of directors is empowered to fix salaries, reasonable variations therein for persons holding the same rank will be upheld. Haynie v. City of Little Rock, 243 Ark. 86, 418 S.W.2d 633 (1967).

—Eligibility Lists.

This section plainly rebuts the notion that promotion is automatic, for the appointing authority makes the selection from among the three persons standing highest on the eligibility list; moreover, the eligibility list remains in force for one year, which also indicates that promotions need not be made at once. Orrell v. City of Hot Springs, 265 Ark. 267, 578 S.W.2d 18 (1979).

Under subdivision (b)(4), police and fire departments may maintain more than one eligibility list simultaneously, and each list expires one year after it is certified. Cross v. Bruce, 284 Ark. 230, 681 S.W.2d 339 (1984).

Individuals who underwent examination process and established their eligibility for promotion may not have their rights prejudiced by litigation in which they were not joined. Worth v. Civil Serv. Comm'n, 297 Ark. 251, 761 S.W.2d 169 (1988).

Each time a position became available within the police department, the Commission was required to submit the names to the police chief of the three applicants with the highest examination scores at that time. Burcham v. City of Van Buren, 330 Ark. 451, 954 S.W.2d 266 (1997).

Force and Effect.

Provision in subsection (a) that rules and regulations promulgated by civil service commission shall have the force of law is not an improper delegation of power; authority to make rules and regulations must be read in connection with express purpose of the statute, and force of law cannot be given to any rule and regulation unless it comes within the purview of the legislation. Civil Serv. Comm'n v. McDougal, 198 Ark. 388, 129 S.W.2d 589 (1939), overruled in part, Tovey v. City of Jacksonville, 305 Ark. 401, 808 S.W.2d 740 (1991).

Civil service commission may delegate details of administration if purely ministerial but, being charged by law with power to make rules, cannot delegate that power, though authority as to execution may be delegated. Civil Serv. Comm'n v. McDougal, 198 Ark. 388, 129 S.W.2d 589 (1939), overruled in part, Tovey v. City of Jacksonville, 305 Ark. 401, 808 S.W.2d 740 (1991).

Civil service commission does not surrender control of the police department by adoption of rules designating chief of police executive head of the department with power to establish rules and regulations for the department. Civil Serv. Comm'n v. McDougal, 198 Ark. 388, 129 S.W.2d 589 (1939), overruled in part, Tovey v. City of Jacksonville, 305 Ark. 401, 808 S.W.2d 740 (1991).

Delegation by civil service commission to a panel to hold oral examinations of applicants to an eligibility promotion list would constitute an unlawful delegation of the commission's authority where no rule or regulation of the commission established the measurable standards capable of review by which the panelists should examine the applicants. Booth v. Baer, 263 Ark. 213, 563 S.W.2d 709 (1978).

Suspensions.

—In General.

Where legislature in plain language limited the suspension of police officers or fire fighters to a period of 30 days, police officer could not be suspended longer than 30 days without pay pending investigation into criminal offenses despite police officer's alleged failure to assist and cooperate with the investigation. City of North Little Rock v. Montgomery, 261 Ark. 16, 546 S.W.2d 154 (1977).

The import of the decision in City of North Little Rock v. Montgomery, 261 Ark. 16, 546 S.W.2d 154 (1977), overruled the holding in Russ v. Civil Serv. Comm'n, 222 Ark. 666, 262 S.W.2d 137 (1953), insofar as that case held that the word “suspend” in a regulation could be interpreted to include permanent discharge from employment; accordingly, a police chief, acting under a regulation empowering him to suspend officers, did not have authority to discharge officer, but could only suspend him for 30 days. Tittle v. City of Conway, 268 Ark. 1126, 599 S.W.2d 412 (Ct. App. 1980).

A suspension without pay is not equivalent to a reduction in compensation for the purposes of determining whether a suspended civil service employee is entitled to a trial. Honeycutt v. City of Fort Smith, 327 Ark. 530, 939 S.W.2d 306 (1997).

—Entitlement to Trial.

While this chapter provides that a firefighter or police officer is entitled to a trial when discharged or reduced in rank or compensation, this chapter does not require a trial for a ten-day disciplinary suspension. Honeycutt v. City of Fort Smith, 327 Ark. 530, 939 S.W.2d 306 (1997).

—Leaves of Absence.

Section 21-4-301 et seq. providing for authorization of leaves of absence to all public employees entering military service amended previous civil service act and was retroactive, so that ordinance providing for retention of civil service status of all municipal employees while in the armed forces was valid. Smith v. Little Rock Civil Serv. Comm'n, 214 Ark. 765, 218 S.W.2d 366 (1949).

Police officer who stood at head of list for promotion at the time of his entrance into military service, was not entitled to appointment upon his return to position vacant at his entrance into the military even though civil service commission's regulations made appointments retroactive to the inception of the vacancy, his status of police officer being suspended during his war service. Smith v. Little Rock Civil Serv. Comm'n, 214 Ark. 765, 218 S.W.2d 366 (1949).

Police officer who was at head of list when he entered military service was entitled to be restored to position on list on return from service, as court had to consider federal, state, and municipal legislation in passing on rights of public employee as returning serviceman. Smith v. Little Rock Civil Serv. Comm'n, 214 Ark. 765, 218 S.W.2d 366 (1949).

Police officer at head of the list for appointment as sergeant in which there was a vacancy when he entered military service was not entitled to be applicant for grade of lieutenant upon his return when he was a patrolman when he entered the military, as subdivision (b)(4)(A)(ii) requires applicant for position of higher rank to serve for one year in lower rank before applying for higher rank position. Smith v. Little Rock Civil Serv. Comm'n, 214 Ark. 765, 218 S.W.2d 366 (1949).

Temporary Appointments.

In case of an emergency, civil service commission, may fill a vacancy without competitive examination but such an appointment is not intended to extend beyond the emergency. Connor v. Ricks, 213 Ark. 768, 212 S.W.2d 552 (1948).

Where ordinance provided that all appointments to municipal grades were to be considered temporary until six months after termination of emergency by the President of the United States, all appointments would still be temporary until such declaration by the President although hostilities had ceased, and court could not require new examinations for permanent positions until the city council set up machinery for procedure. Smith v. Little Rock Civil Serv. Comm'n, 214 Ark. 765, 218 S.W.2d 366 (1949).

Cited: Wammack v. City of Batesville, 522 F. Supp. 1006 (E.D. Ark. 1981); Gilbert v. City of Little Rock, 544 F. Supp. 1231 (E.D. Ark. 1982); Roper v. City of Pine Bluff, 673 F. Supp. 329 (E.D. Ark. 1987); Pulaski County Civil Serv. Comm'n v. Davis, 292 Ark. 340, 730 S.W.2d 220 (1987); Bennett v. Blytheville Civil Serv. Comm'n, 293 Ark. 136, 733 S.W.2d 414 (1987); City of Fort Smith v. Driggers, 294 Ark. 311, 742 S.W.2d 921 (1988); Williams v. Taylor, 311 Ark. 94, 841 S.W.2d 618 (1992).

14-51-302. Departmental rules and regulations.

All employees in any fire or police department affected by this chapter shall be governed by rules and regulations set out by the chief of their respective police or fire departments after rules and regulations have been adopted by the governing bodies of their respective municipalities.

History. Acts 1933, No. 28, § 4; Pope's Dig., § 9948; A.S.A. 1947, § 19-1604.

Case Notes

Adoption.

The adoption of fire department regulation by a city council motion was an acceptable means since this section is open ended as to the method of adoption. Frego v. Jonesboro Civil Serv. Comm'n, 285 Ark. 35, 684 S.W.2d 258 (1985).

Authority to Regulate Employees.

Circuit court erred in reversing a civil service commission's decision upholding the termination of an employee because a fire department provided legitimate public-policy reasons behind its zero-tolerance policy on drug usage and the necessity for consistency in the application of that policy, and the employee violated the policy; there was overwhelming evidence of the employee's positive tests for methamphetamine, and the department had the authority to govern and regulate its employees. City of Little Rock v. Muncy, 2017 Ark. App. 412, 526 S.W.3d 877 (2017).

Commission's Authority.

Civil service commission, and not the chief of police, is the agency responsible for enforcing its rules. Civil Serv. Comm'n v. McDougal, 198 Ark. 388, 129 S.W.2d 589 (1939), overruled in part, Tovey v. City of Jacksonville, 305 Ark. 401, 808 S.W.2d 740 (1991).

Civil service commission does not surrender control of police department by adoption of rules designating chief of police executive head of the department with power to establish rules and regulations for the department and to discipline those under his authority for violation of such rules and regulations, and exercise of disciplinary measures by the chief does not deprive the commission of the power to prefer charges against officer for violation of rules. Civil Serv. Comm'n v. McDougal, 198 Ark. 388, 129 S.W.2d 589 (1939), overruled in part, Tovey v. City of Jacksonville, 305 Ark. 401, 808 S.W.2d 740 (1991).

Civil service commission has authority to dismiss police officer. Civil Serv. Comm'n v. Bass, 252 Ark. 178, 477 S.W.2d 842 (1972).

Off Duty Employment.

Patrolman was properly discharged for failure to obtain written permission to engage in off duty employment as required by the police department's rule. Dalton v. City of Russellville, 290 Ark. 603, 720 S.W.2d 918 (1986).

Cited: City of North Little Rock v. Montgomery, 261 Ark. 16, 546 S.W.2d 154 (1977).

14-51-303. Political activities.

In addition to all powers and duties provided by law, the civil service commissions for police and fire departments of cities of the first and second class shall promulgate rules and regulations governing the political activities of fire department and police department personnel.

History. Acts 1987, No. 67, § 1.

A.C.R.C. Notes. The language “and second class” was inadvertently added to and adopted as part of, the 1989 corrective bill, Acts 1989, No. 990.

Publisher's Notes. Former § 14-51-303, concerning prohibition of political activity, was repealed by Acts 1987, No. 67, § 2. The former section was derived from Acts 1933, No. 28, § 12; Pope's Dig., § 9956; A.S.A. 1947, § 19-1612.

14-51-304. Employees and salaries fixed.

The city council or board shall from time to time fix the number of employees and the salaries to be drawn by each rank in the fire and police departments of its respective cities.

History. Acts 1933, No. 28, § 17; Pope's Dig., § 9961; A.S.A. 1947, § 19-1617.

Case Notes

In General.

Civil service commission did not abdicate any authority when it stated that fixing the number of employees and the salaries to be drawn by each rank in the fire department was the duty of board of directors of the city. Haynie v. City of Little Rock, 243 Ark. 86, 418 S.W.2d 633 (1967).

Employees.

A city ordinance authorizing a day chief and a night chief of police was void; as authority to create the office of chief of police did not authorize the appointment of two chiefs. Stout v. Stinnett, 210 Ark. 684, 197 S.W.2d 564 (1946).

Salaries.

In city under city manager form of government, the board of directors has the power to fix the salaries within each rank of the fire department. Haynie v. City of Little Rock, 243 Ark. 86, 418 S.W.2d 633 (1967).

The fixing of wages, hours, and the like for city employees is a legislative responsibility that cannot be delegated or bargained away; thus, a proposed “binding-arbitration” ordinance, which was to be a permanent measure, providing a procedure by which any future wage controversy with the city police not resolved by agreement was to be referred to an arbitration panel, whose decision would be final, binding all parties, and not reviewable by any court, would violate this section and Ark. Const., Art. 12, § 4. Czech v. Baer, 283 Ark. 457, 677 S.W.2d 833 (1984).

14-51-305. Certification for compensation.

  1. The secretary of the commission shall file with the treasurer or disbursing officer of his or her city a certificate of those entitled to compensation from the city under this chapter.
  2. No compensation shall be allowed to any member of the police or fire departments of the affected cities unless his or her name shall be so certified by the secretary.

History. Acts 1933, No. 28, § 9; Pope's Dig., § 9953; A.S.A. 1947, § 19-1609.

14-51-306. Examinations.

All examinations provided for in this chapter shall be fair and impartial and such as to test the qualification of the applicants for the particular service and position to be filled.

History. Acts 1933, No. 28, § 7; Pope's Dig., § 9951; A.S.A. 1947, § 19-1607.

Publisher's Notes. Acts 1933, No. 28, § 8, provided that no employee affected by § 14-51-101 et seq. and in the employ of any police or fire department at the time of the passage of this act would be subject to an examination, except for promotion or advancement, but would retain his current standing, subject to the other provisions of § 14-51-101 et seq. Acts 1933, No. 28, was signed by the Governor and became effective on February 13, 1933.

Case Notes

Qualifications.

The use of a sergeant's eligibility promotion list was properly enjoined where there was no showing as to the qualifications designated by the civil service commission for a police sergeant and where there was no showing that the personality traits, upon which the applicants were examined, had been determined by the commission to be necessary and important to the position to be filled. Booth v. Baer, 263 Ark. 213, 563 S.W.2d 709 (1978).

14-51-307. Suspension of competition.

In the case of a vacancy in a position requiring peculiar or exceptional qualifications of a scientific, professional, or expert character, upon satisfactory evidence that competition is impracticable and that the position can best be filled by the selection of some person designated who is of recognized attainment, the board may suspend by a majority vote competition in this case. However, the suspension shall not be general in its application, and each case must be handled on its own merits.

History. Acts 1933, No. 28, § 6; Pope's Dig., § 9950; A.S.A. 1947, § 19-1606.

Case Notes

In General.

Civil service commission may fill a vacancy which requires “peculiar or exceptional qualifications of scientific, professional, or expert character,” with a person who does not meet the qualifications, rules, and regulations required of others, and such appointee will be deemed the best one available. Connor v. Ricks, 213 Ark. 768, 212 S.W.2d 552 (1948).

14-51-308. Suspension, discharge, or reduction in rank or compensation.

    1. No civil service employee shall be discharged, reduced in rank or compensation, or suspended for three (3) or more days without being notified in writing of the discharge, reduction in rank or compensation, or the suspension for three (3) or more days and its cause.
    2. In case of suspension, discharge, or reduction, the affected or accused person shall have written notice of the action at the time action is taken.
    1. Within ten (10) days after the notice in writing is served upon the officer, private, or employee, the person may request a trial before the board of civil service commissioners on the charges alleged as the grounds for discharge, reduction, or suspension for three (3) days or more if he or she so desires.
      1. In the event a request for trial is made, the municipal civil service commission shall fix a date for the trial not more than fifteen (15) days after the request is made.
        1. If the request for trial is not made within ten (10) days from the date of service of notice, the discharge, reduction, or suspension for three (3) days or more shall become final and no trial shall be granted after that date.
        2. The appeal shall be taken by filing a notice of appeal with the commission within thirty (30) days from the date of the decision. The responsibility of filing an appeal and paying for the transcript of the proceedings before the commission shall be borne by the party desiring to appeal the commission's decision.
        3. Upon receiving notice of an appeal, the commission will prepare a written order containing its decision and ensure that the transcript and evidence be made available for filing in the circuit court once the appealing party has paid the cost of preparing the transcript.
        4. However, if the court determines that the party appealing the commission's decision took the appeal in good faith and with reasonable cause to believe he or she would prevail, the commission shall reimburse the appealing party for the cost of the transcript.
    1. In the event of a trial, the officer, private, or employee requesting the trial shall be notified of the date and place of the trial at least ten (10) days prior to the date thereof.
    2. The officer, private, or employee shall have compulsory process to have witnesses present at the trial.
    1. The chair of the commission shall preside at all trials and shall determine and decide all questions relative to pleadings and the admissibility of evidence.
    2. The decision of the commission shall be by a majority vote of the members of the commission.
      1. A right of appeal by the city or employee is given from any decision of the commission to the circuit court within the jurisdiction of which the commission is situated.
        1. The appeal shall be taken by filing with the commission, within thirty (30) days from the date of the decision, a notice of appeal. The responsibility of filing an appeal and paying for the transcript of the proceedings before the municipal civil service commission shall be borne by the party desiring to appeal the commission's decision.
        2. Upon receiving notice of an appeal, the commission will prepare a written order containing its decision and ensure that the transcript and evidence be made available for filing in the circuit court once the appealing party has paid the cost of preparing the transcript.
        3. However, if the court determines that the party appealing the commission's decision took the appeal in good faith and with reasonable cause to believe he or she would prevail, the commission shall reimburse the appealing party for the cost of the transcript.
        4. The circuit court may award reasonable attorney's fees to the prevailing party for the proceedings in circuit court.
        1. The court shall review the commission's decision on the record and in addition may hear testimony or allow the introduction of any further evidence upon the request of either the city or the employee.
        2. The testimony or evidence must be competent and otherwise admissible.
      1. A right of appeal is also given from any action from the circuit court to the Supreme Court.
      2. The appeal shall be governed by the rules of procedure provided by law for appeals from the circuit court to the Supreme Court.
  1. In the event that it is finally determined that there was a wrongful suspension, discharge, or reduction in rank of any employee, the employee shall be entitled to judgment against the city for whatever loss he or she may have sustained by reason of his or her suspension, discharge, or demotion, taking into consideration any remuneration which the officer, private, or employee may have received from other sources pending the final determination of his or her case.

History. Acts 1933, No. 28, § 13; Pope's Dig., § 9957; Acts 1949, No. 326, § 2; 1959, No. 205, § 2; A.S.A. 1947, §§ 19-1605.1, 19-1613; Acts 1991, No. 244, § 1; 2001, No. 1441, § 1; 2003, No. 1815, § 1; 2013, No. 994, § 1.

Amendments. The 2013 amendment added (e)(1)(B)(iv).

Research References

Ark. L. Rev.

Case Note, Lost in Translation: Combs v. City of Springdale, An Overview of the Ins and Outs of Appeals Procedure for Administrative Decisions by Local Governments, 61 Ark. L. Rev. 351.

Case Notes

Constitutionality.

Former similar statute authorizing appeal and hearing in circuit court from finding of civil service commission was held not unconstitutional as conferring administrative powers and duties upon the court. Civil Serv. Comm'n v. Matlock, 205 Ark. 286, 168 S.W.2d 424 (1943) (decision under prior law).

Procedure under this section affords parties ample due process. Eldridge v. Sullivan, 980 F.2d 499 (8th Cir. 1992).

In General.

Civil service commission could not try anyone for violation of a rule unless they had prescribed such written rule, but no rule would be required to charge a person with the commission of a crime or a violation of civil service statutes. Civil Serv. Comm'n v. Cruse, 192 Ark. 86, 89 S.W.2d 922 (1936) (decision under prior law).

Civil service commission, and not the chief of police, was the agency held responsible for enforcing its rules. Civil Serv. Comm'n v. McDougal, 198 Ark. 388, 129 S.W.2d 589 (1939), overruled in part, Tovey v. City of Jacksonville, 305 Ark. 401, 808 S.W.2d 740 (1991) (decision under prior law).

Civil service commission did not surrender control of the police department by adoption of rules designating chief of police executive head of the department with power to establish rules and regulations for the department and to discipline those under his authority for violation of such rules and regulations, and exercise of disciplinary measures by the chief did not deprive the commission of the power to prefer charges against officer for violation of rules. Civil Serv. Comm'n v. McDougal, 198 Ark. 388, 129 S.W.2d 589 (1939), overruled in part, Tovey v. City of Jacksonville, 305 Ark. 401, 808 S.W.2d 740 (1991) (decision under prior law).

Appeals.

—In General.

Legislature has the power to prescribe the mode of procedure on appeals from civil service commission's findings. Civil Serv. Comm'n v. Matlock, 205 Ark. 286, 168 S.W.2d 424 (1943) (decision under prior law).

An appeal from an order of the civil service commission after a hearing on a petition for reinstatement is not proper, as the sole remedy for a decision of dismissal by the commission is through appeal of the order of dismissal as provided in this section. Hot Springs Civil Serv. Comm'n v. Miles, 238 Ark. 956, 385 S.W.2d 930 (1965).

Where notice of termination of employment was given by a civil service commission pursuant to its rules and regulations, the commission was the real party in interest in the ensuing litigation and, as the real party in interest, was the proper party to give the notice of appeal. Civil Serv. Comm'n v. Reid, 261 Ark. 42, 546 S.W.2d 413 (1977).

Even assuming without deciding that subdivision (e)(1)(B) of this section was applicable to the terminated police chief, the chief would have had 30 days from the entry of the civil service commission's written decision to file a record with the circuit court or to file an affidavit showing that the chief had requested a record from the commission pursuant to Ark. Inf. Ct. R. 9(c); the circuit court was correct in its finding that the chief's failure to comply with the filing requirements of Ark. Inf. Ct. R. 9 required the dismissal of the case. Clark v. Pine Bluff Civ. Serv. Comm'n, 353 Ark. 810, 120 S.W.3d 541 (2003).

This section is silent on the procedure to be followed in perfecting an appeal from a civil service commission to the circuit court, thus, once the requirements of subdivision (e)(1)(B) are met, an appeal from a decision of the civil service commission to circuit court should proceed in accordance with the rules of the Arkansas Supreme Court governing an appeal from inferior courts, specifically Ark. Inf. Ct. R. 9. Clark v. Pine Bluff Civ. Serv. Comm'n, 353 Ark. 810, 120 S.W.3d 541 (2003).

Appeals from civil-service commissions under this section are not “[a]ppeals required by law to be heard by the Supreme Court” within Ark. Sup. Ct. R. 1-2(a)(8). While subdivision (e)(2)(A) of this section provides that a right of appeal is to the Supreme Court, this section was enacted in 1933, long before the Legislature was constitutionally empowered to create and establish the Court of Appeals. Civil-service-commission appeals pursuant to this section shall continue to be filed in the Court of Appeals unless there is another basis for Supreme Court jurisdiction under Rule 1-2. Bales v. City of Fort Smith, 2017 Ark. 161, 518 S.W.3d 76 (2017).

—Circuit Court.

Legislature has the right, in authorizing a civil service commission, to vest in the circuit court the power to review judicially, either by way of original proceeding or by way of appeal, actions of the commission. Civil Serv. Comm'n v. Matlock, 205 Ark. 286, 168 S.W.2d 424 (1943) (decision under prior law).

Requirements of former similar statute amounted to provision for a trial of matters de novo in circuit court. Civil Serv. Comm'n v. Matlock, 205 Ark. 286, 168 S.W.2d 424 (1943) (decision under prior law).

In proceeding to review order of civil service commission, circuit court erred in submitting case to a jury for trial. Civil Serv. Comm'n v. Matlock, 205 Ark. 286, 168 S.W.2d 424 (1943) (decision under prior law).

Phrase “further or other evidence” in former similar statute meant testimony in addition to that heard at the hearing before the civil service commission and indicated that the legislature intended that the testimony taken before the commission should be brought into the record for trial in circuit court, and the logical inference was that the party appealing should bring up this testimony, duly authenticated by the commission, or otherwise shown to be the testimony. Civil Serv. Comm'n v. Matlock, 205 Ark. 286, 168 S.W.2d 424 (1943) (decision under prior law).

While it would have been better practice to file in the circuit court a verbatim record of the testimony before civil service commission, circuit court did not err in permitting the filing of a transcript that the commission certified as being the substance of the testimony heard before it. Civil Serv. Comm'n v. Matlock, 205 Ark. 286, 168 S.W.2d 424 (1943) (decision under prior law).

Circuit court properly ordered records of civil service commission certified for purpose of determining validity of actions of the commission. Terry v. Little Rock Civil Serv. Comm'n, 216 Ark. 322, 225 S.W.2d 13 (1949) (decision under prior law).

On appeal from civil service commission, circuit court is entitled to hear matter de novo by consideration of findings of commission and by taking additional evidence. City of Little Rock v. Newcomb, 219 Ark. 74, 239 S.W.2d 750 (1951).

On appeal, circuit court should give great weight to finding by civil service commission, if evidence is conflicting or evenly balanced. City of Little Rock v. Newcomb, 219 Ark. 74, 239 S.W.2d 750 (1951).

In enacting this section, the legislature intended to provide for a de novo hearing by the circuit court on the record before the civil service commission and any additional competent testimony that either party might desire to introduce. Campbell v. City of Hot Springs, 232 Ark. 878, 341 S.W.2d 225 (1960); Daley v. City of Little Rock, 36 Ark. App. 80, 818 S.W.2d 259 (1991).

Inasmuch as state statute prohibited judicial review of a police pension board's denial of a police officer's application for a pension, circuit court's unappealed dismissal of a mandamus suit, in which the police officer sought to compel the board to award him a pension, was not res judicata as to the police officer's civil rights suit in the federal courts. Hirrill v. Merriweather, 629 F.2d 490 (8th Cir. 1980).

Circuit court erred in affirming a decision of the Little Rock Civil Service Commission that changed a termination order issued against a fireman to a suspension followed by a one year unpaid leave of absence to complete drug rehabilitation on the grounds that the Commission's decision was supported by substantial evidence; the circuit court proceeding was in the nature of an original action and the circuit court was required to conduct a de novo review of the Commission's decision. City of Little Rock v. Hubbard, 82 Ark. App. 119, 112 S.W.3d 375 (2003).

Circuit court's judgment reversing a civil service commission's disciplining of a fireman was affirmed as the court was within its province, in its de novo review under this section, in giving credence to the fireman's evidence as to the existence of mints in his mouth during random breathalyzer tests, the effects of the mints on the tests, and the fireman's not being intoxicated. City of Little Rock v. Hudson, 366 Ark. 415, 236 S.W.3d 509 (2006).

—Supreme Court.

Legislature intended that rule as to affirmance or reversal by Supreme Court of the findings of lower court on questions of fact should prevail. Civil Serv. Comm'n v. Matlock, 205 Ark. 286, 168 S.W.2d 424 (1943) (decision under prior law).

Appeal from circuit court under this section is not trial de novo in Supreme Court; rather, it determines whether verdict or finding of fact is sustained by substantial evidence. Petty v. City of Pine Bluff, 239 Ark. 49, 386 S.W.2d 935 (1965).

Circuit court judgment affirming findings of civil service commission reversed where neither the notice of discharge nor the findings of the commission upholding the dismissal of a police lieutenant contained a statement of the rules and regulations that the officer allegedly violated. Magness v. Shock, 262 Ark. 148, 554 S.W.2d 342 (1977).

Fireman's appeal from his termination from the city fire department was dismissed for want of jurisdiction as the civil service commission, in affirming the termination, made no written order nor any findings of fact or conclusions of law as required by this section; accordingly, the matter was reversed and remanded so that the trial court could dismiss the appeal without prejudice, allowing the fireman to refile his appeal with the circuit court after the commission entered a written order. Lawrence v. City of Texarkana, 364 Ark. 466, 221 S.W.3d 370 (2006).

Once the requirements of subdivision (e)(1)(B) of this section have been met, an appeal from a decision of the civil service commission to circuit court should proceed in accordance with the rules of the court governing an appeal from inferior courts; thus, a party appealing a decision of the civil service commission has, pursuant to Ark. Inferior Ct. R. 9(c), thirty days from the entry of the commission's written decision to file a record with the circuit court. Barrows v. City of Fort Smith, 2010 Ark. 73, 360 S.W.3d 117 (2010).

Attorney's Fees.

Employee's argument that the circuit court should have awarded him attorney's fees was moot because the Court of Appeals reversed the circuit court's decision, and thus the employee was no longer the prevailing employee. City of Little Rock v. Muncy, 2017 Ark. App. 412, 526 S.W.3d 877 (2017).

Discharges.

—In General.

Charges that officer was unfit to serve on police force because his word was of no value, and no confidence can be placed in him, if true, justified his dismissal. Civil Serv. Comm'n v. Cruse, 192 Ark. 86, 89 S.W.2d 922 (1936) (decision under prior law).

Police officer's failure to comply with promise to resign, made for the purpose of obtaining a dismissal of charges pending against him, fortified his dismissal upon failure to comply with his part of the agreement on ground his conduct constituted a fraud upon the civil service commission. Civil Serv. Comm'n v. Cruse, 192 Ark. 86, 89 S.W.2d 922 (1936) (decision under prior law).

City had the right, acting in good faith, to pass ordinance abolishing the office of chief of police, since former similar statute did not prevent the abolishing, by the proper municipal authority, of an office held by a civil service employee when done in good faith. Ellis v. Allen, 202 Ark. 1007, 154 S.W.2d 815 (1941) (decision under prior law).

Where special patrolman appointed during emergency through error was certified for permanent position, but failed civil service examinations and was discharged upon expiration of emergency, patrolman could not challenge actions of civil service commission on ground of estoppel, as commission not only had the right to correct error, but was under a duty to do so. Terry v. Little Rock Civil Serv. Comm'n, 216 Ark. 322, 225 S.W.2d 13 (1949) (decision under prior law).

Police officer who admitted regularly working in a gambling house during his time off was properly dismissed from the police force. Campbell v. City of Hot Springs, 232 Ark. 878, 341 S.W.2d 225 (1960).

Where discharged fireman was given a grievance hearing, and his only right to appeal was under this section, which does not deal with failure to grant a promotion, he exhausted all administrative remedies available to him. City of Fort Smith v. Driggers, 305 Ark. 409, 808 S.W.2d 748 (1991).

—Evidence.

Evidence was held to support civil service commission's findings in proceeding to dismiss chief of detectives charged with being drunk while on duty. Civil Serv. Comm'n v. McDougal, 198 Ark. 388, 129 S.W.2d 589 (1939), overruled in part, Tovey v. City of Jacksonville, 305 Ark. 401, 808 S.W.2d 740 (1991) (decision under prior law).

Testimony of witnesses who knew only of a police officer's performance and mental state subsequent to dismissal should not have been allowed, since this testimony did not bear on whether the dismissal was proper at the time; his subsequent activities or his ability to perform had nothing to do with his ability to perform earlier and whether the incidents reported were violations of the rules and regulations of the police department for which dismissal was warranted. City of Little Rock v. Bates, 270 Ark. 860, 607 S.W.2d 68 (Ct. App. 1980).

—Trials.

Former similar statute did not prevent the dismissal of a city officer without a hearing where his office was abolished for economic reasons. Fiveash v. Holderness, 190 Ark. 264, 78 S.W.2d 820 (1935).

Dismissal hearing did not afford person even the barest essentials of due process of law where he was not given prior notice of charges, where even at the hearing he was refused any statement of particular incidents, and where no persons were brought forward to substantiate any of the reasons advanced for termination. Parks v. Goff, 483 F. Supp. 502 (E.D. Ark. 1980).

This section limits the right to a trial to threatened discharge or reduction in rank or compensation, and nothing in this section suggests the legislature intended that the civil service commission, in addition to the other duties imposed, must also hear minor employee grievances. Stafford v. City of Hot Springs, 276 Ark. 466, 637 S.W.2d 553 (1982).

Where accident review committee found that an accident in which a fire fighter was involved was preventable, and the committee assessed three penalty points against the fire fighter's driving record, the fire fighter was not entitled to a trial before the civil service commission under this section, because he was not discharged, suspended, or reduced in rank or compensation, although his accumulation of penalty points increased his susceptibility to those sanctions. Stafford v. City of Hot Springs, 276 Ark. 466, 637 S.W.2d 553 (1982).

—Notice.

Where city had regulation that a department head could not be discharged without notification in writing from the governing body of city, city administrator alone did not have authority to discharge the chief of the municipal fire department. Sanders v. City of Fort Smith, 251 Ark. 494, 473 S.W.2d 182 (1971).

Notice to person of the charges resulting in his dismissal was clearly inadequate where he was not informed of any specific conduct or occasion of an alleged violation, where he was not informed of the names of any person who supplied information of any alleged violation, and where he was not informed of the substance of any such information known to the city council. Parks v. Goff, 483 F. Supp. 502 (E.D. Ark. 1980).

Jurisdiction.

Circuit court did not clearly err in finding that the local civil service commission made its initial decision on November 4, 2014, and that the 30-day time limit for a former employee to file his notice of appeal with the commission under this section was triggered on that date. Bales v. City of Fort Smith, 2017 Ark. App. 443, 528 S.W.3d 845 (2017).

Circuit court properly concluded that it lacked jurisdiction to hear a former city employee's wrongful termination case where he had filed the notice of appeal one day after the properly calculated 30-day period. Bales v. City of Fort Smith, 2017 Ark. App. 443, 528 S.W.3d 845 (2017).

Because this section and Ark. Dist. Ct. R. 9 are so interconnected concerning the procedural requirements for perfecting an appeal from a civil service commission decision to the circuit court, the Court of Appeals of Arkansas, Division Three, holds that the statutory filing requirements with respect to the commission are jurisdictional, as is true for Rule 9’s filing requirements with respect to the circuit court. Accordingly, as is true for Rule 9’s requirements, strict compliance is necessary, and substantial compliance will not suffice. Bales v. City of Fort Smith, 2017 Ark. App. 443, 528 S.W.3d 845 (2017).

Reductions in Rank.

Finding that officer neglected his duty so as to warrant his demotion was not against weight of the evidence. Civil Serv. Comm'n v. Matlock, 205 Ark. 286, 168 S.W.2d 424 (1943) (decision under prior law).

Suspensions.

Where police officer was discharged for slapping a suspected felon after a finding by the civil service commission that he had violated regulations, circuit court could reduce punishment to a 30-day suspension, even though they confirmed finding of the commission that he had violated regulations. City of Little Rock v. Hall, 249 Ark. 337, 459 S.W.2d 119 (1970).

Summary judgment for police officer was proper in suit for lost wages brought by police officer who was indefinitely suspended without pay pending investigation into criminal charges where the issues of fact were uncontroverted except as to whether indefinite suspension was justified and the court concluded, as a matter of law, that § 14-51-301 precluded suspension without pay in excess of 30 days. City of North Little Rock v. Montgomery, 261 Ark. 16, 546 S.W.2d 154 (1977).

A suspension without pay is not equivalent to a reduction in compensation for the purposes of determining whether a suspended civil service employee is entitled to a trial. Honeycutt v. City of Fort Smith, 327 Ark. 530, 939 S.W.2d 306 (1997).

While the civil service statutes provide that a firefighter or police officer is entitled to a trial when discharged or reduced in rank or compensation, the statutes do not require a trial for a ten-day disciplinary suspension. Honeycutt v. City of Fort Smith, 327 Ark. 530, 939 S.W.2d 306 (1997).

Decision to impose on the officer a 30-day suspension without pay was not clearly erroneous for purposes of this section; while the officer admittedly violated police department policy regarding the repair of a police vehicle and involved other officers, he had no evil intent, he had served admirably for 18 years, he took responsibility for his error in judgment, and the previous police chief had permitted the exercise of some discretion in deciding to handle minor repairs without formally adhering to reporting and repair protocol. Little Rock Police Dep't v. Phillips, 2017 Ark. App. 410, 526 S.W.3d 872 (2017).

Terminations.

Police officer's termination was appropriate because the Civil Service Commission entered a written order as required by the statute and thus, the circuit court had proper jurisdiction. As such, there was no basis to vacate and remand the circuit court's decision. Edgmon v. Little Rock Police Dep't, 2013 Ark. App. 470 (2013).

Circuit court erred in reversing a civil service commission's decision upholding the termination of an employee because a fire department provided legitimate public-policy reasons behind its zero-tolerance policy on drug usage and the necessity for consistency in the application of that policy, and the employee violated the policy; there was overwhelming evidence of the employee's positive tests for methamphetamine, and the department had the authority to govern and regulate its employees. City of Little Rock v. Muncy, 2017 Ark. App. 412, 526 S.W.3d 877 (2017).

Wrongful Suspension, Etc.

Where the city administrator attempted to fire the fire chief, but no lawful discharge was shown, the chief, if he so elected, could prove his net damages under this section in circuit court. Sanders v. City of Fort Smith, 251 Ark. 494, 473 S.W.2d 182 (1971).

Word “loss” in subsection (f) does not include attorney's fees, as the General Assembly did not intend for the generic and relative term of “loss” to have such a meaning. Williams v. Little Rock Civil Serv., 266 Ark. 599, 587 S.W.2d 42 (1979).

Cited: Briley v. Little Rock Civil Serv. Comm'n, 266 Ark. 394, 583 S.W.2d 78 (1979); Wammack v. City of Batesville, 522 F. Supp. 1006 (E.D. Ark. 1981); Dalton v. City of Russellville, 290 Ark. 603, 720 S.W.2d 918 (1986); Williams v. Taylor, 311 Ark. 94, 841 S.W.2d 618 (1992); McGann v. Pine Bluff Police Dep't, 334 Ark. 352, 974 S.W.2d 462 (1998).

14-51-309. Reduction in personnel.

In the event that it shall be necessary to reduce the personnel of any department affected by this chapter, reduction shall be done from the lowest rank, seniority having priority.

History. Acts 1933, No. 28, § 15; Pope's Dig., § 9959; A.S.A. 1947, § 19-1615.

14-51-310. Transfers prohibited.

No person in any department affected by this chapter shall be transferred from one department to another.

History. Acts 1933, No. 28, § 14; Pope's Dig., § 9958; A.S.A. 1947, § 19-1614.

14-51-311. Political discrimination prohibited.

No person in any department affected by this chapter shall be appointed, reduced, suspended, discharged, or otherwise discriminated against because of his or her political opinion or affiliation.

History. Acts 1933, No. 28, § 11; Pope's Dig., § 9955; A.S.A. 1947, § 19-1611.

Chapter 52 Municipal Police Departments

Research References

ALR.

Requirement of residency within or near specified governmental unit as condition of continued employment for policemen or firemen. 4 A.L.R.4th 380.

Liability of governmental unit or its officers for injury to innocent occupant of moving vehicle, or for damages to such vehicle, as result of police chase. 4 A.L.R.4th 865.

Liability for failure of police response to emergency call. 39 A.L.R.4th 691.

Am. Jur. 56 Am. Jur. 2d, Mun. Corp., § 114.

C.J.S. 62 C.J.S., Mun. Corp., § 563 et seq.

87 C.J.S., Towns, §§ 60, 70, 71.

Subchapter 1 — General Provisions

Cross References. Appointment of police chiefs, §§ 14-42-110, 14-47-120, 14-48-117.

Civil service for police departments, § 14-51-101 et seq.

Police pension and relief funds, § 24-11-101 et seq.

Effective Dates. Acts 1875, No. 1, § 95: effective on passage.

Acts 1937, No. 250, § 24: approved Mar. 16, 1937. Emergency clause provided: “This Act being necessary for the peace, preservation and public health, an emergency is hereby declared and this Act shall take effect from and after its passage.”

Acts 1939, No. 11, § 3: approved Jan. 24, 1939. Emergency clause provided: “Because of the fact that there are needy members of the Police Departments of the Cities of this State who are entitled to receive pensions under Act 250 of the Acts of the General Assembly of 1937, and funds provided to pay such pensions are insufficient, resulting in deprivation to those entitled to relief, an emergency is hereby declared to exist, and this Act being necessary for the preservation of the public peace, health and safety, shall take effect and be in force from and after its passage.”

Acts 1969, No. 68, § 3: Feb. 18, 1969. Emergency clause provided: “It is hereby found and determined by the General Assembly that in order to attract qualified and capable policemen, it is necessary to offer an adequate pension in the case of retirement; that under the present provisions, policemen in border cities are required to contribute only two and one-half percent of their monthly salaries to such pension fund instead of four percent as in the case of other cities; that an increase in the amount of contributions to such fund will permit the payment of a more adequate pension to such policemen upon retirement; and that in order to provide adequate funds to grant sufficient pensions for retired policemen, it is necessary that this Act become effective immediately. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall become effective from and after its passage and approval.”

Acts 1969, No. 393, § 5: Apr. 11, 1969. Emergency clause provided: “It is hereby found and determined by the General Assembly that the present sick leave provisions are not adequate to provide for the essential sick leave of policemen in cities of the first and second class; that the existing provisions for sick leave are not uniform; and that in order to remedy this situation, it is necessary that this Act become effective immediately. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall become effective from and after its passage and approval.”

Acts 1971, No. 241, § 5: Mar. 9, 1971. Emergency clause provided: “It is hereby found and determined by the General Assembly that the existing sick leave provisions as to fire fighters are not adequate to provide for the essential sick leave of such fire fighters in cities of the first and second class; that the existing provisions for sick leave are not uniform; and that only by the passage of this Act can this situation be properly remedied. Therefore, an emergency is hereby declared to exist and this Act, being necessary for the immediate preservation of the public peace, health and safety, shall become effective from and after its passage and approval.”

Acts 1981, No. 486, § 4: Jan. 1, 1982.

Acts 1981, No. 668, § 3: Mar. 23, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that there appears to be no law authorizing incorporated towns to organize police departments and that such authorization is immediately necessary to provide for the security of the citizens of incorporated towns. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1981, No. 864, § 3: Mar. 28, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that incorporated towns do not now have the power of organizing police departments, and that such flexibility should be allowed incorporated towns in order to better provide for the security of the inhabitants thereof; and that this Act is necessary to grant such authority. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1983, No. 46, § 3: Feb. 3, 1983. Emergency clause provided: “It is hereby found and determined by the General Assembly that the restoration of service credit is necessary in certain instances to retain qualified police officers and that this Act is immediately necessary to provide for such service credit. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1983, No. 501, § 2: Mar. 17, 1983. Emergency clause provided: “Whereas, there is great confusion over the powers of Municipal Police and Marshals over municipally owned or leased property located outside the corporate limits of such municipality and the police jurisdiction should be clarified; therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate protection of the public peace, health, and safety, shall take effect immediately upon its passage and approval.”

Acts 1985, No. 240, § 3: Mar. 4, 1985. Emergency clause provided: “It is hereby found and determined by the General Assembly that the present sick leave law applicable to police officers has been misconstrued as not applying to certain municipal police officers, such as city marshals; that such misinterpretation has resulted in inequity; that all law enforcement officers employed by municipalities in this State should receive the benefits of the sick leave law; and that this Act is immediately necessary to accomplish the same. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1985, No. 252, § 3: Mar. 4, 1985. Emergency clause provided: “It is hereby found and determined by the General Assembly that the present laws pertaining to the compensation for municipal policemen and firemen for holidays is obsolete and contradictory; that this Act clarifies the law in that area and should be given effect immediately to eliminate the confusion and avoid expensive and unnecessary litigation. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 2013, No. 1283, § 6: Emergency clause failed to pass. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that collection of fees for bail bonds fund various necessary programs in our state; that the law is currently unclear on the collection of these fees; and that this act is necessary because the law needs to be clear on the collection of these fees so that the programs are funded properly in a timely manner. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2013.”

14-52-101. Authorized in cities.

The city council shall have power to establish a city police department, to organize it under the general superintendence of the mayor, and to prescribe its duties and define its powers in such manner as will most effectually preserve the peace of the city, secure the citizens thereof from personal violence, and safeguard their property from fire and unlawful depredations.

History. Acts 1875, No. 1, § 6, p. 1; C. & M. Dig., § 7594; Pope's Dig., § 9680; Acts 1983, No. 501, § 1; A.S.A. 1947, § 19-1701.

Case Notes

Applicability

While the day-to-day duties of the chief of police and other officers of the police department in a city of the first and second class are under the direction and general superintendence of the mayor, the city council prescribes the police department's duties and defines its powers, i.e., makes the police department's policy. Brinkley v. City of Helena-West Helena, No. 2:11-cv-00207-SWW, 2014 U.S. Dist. LEXIS 116592 (E.D. Ark. Aug. 21, 2014).

Authority to establish police department policy in a city of the first (or second) class generally resides with the city council; the city council, not the former mayor, was the final policymaker for the City's police department when an former police officer allegedly applied excessive force in arresting plaintiff. Brinkley v. City of Helena-West Helena, No. 2:11-cv-00207-SWW, 2014 U.S. Dist. LEXIS 116592 (E.D. Ark. Aug. 21, 2014).

Cited: Conner v. Burnett, 216 Ark. 559, 226 S.W.2d 984 (1950).

14-52-102. Authorized in towns.

The governing body of any incorporated town may establish a police department for the town, prescribe its duties, and define its powers in such manner as will most effectively preserve the peace of the town, secure the citizens thereof from personal violence, and safeguard their property from unlawful deprivations.

History. Acts 1981, No. 668, § 1; A.S.A. 1947, § 19-1701.1.

14-52-103. City marshal option.

Notwithstanding any other provision of law to the contrary, the governing body of any incorporated town or city of the second class may establish by ordinance either a police department or a city marshal's office.

History. Acts 1981, No. 864, § 1; A.S.A. 1947, § 19-1701.2.

Cross References. Marshalls in cities of the second class, §§ 14-44-10914-44-113.

14-52-104. Police powers generally.

Municipal police officers and city marshals shall have the same police powers on municipally owned or leased property located outside the corporate limits of the municipality that they exercise within the corporate limits of the municipality.

History. Acts 1875, No. 1, § 6, p. 1; C. & M. Dig., § 7594; Pope's Dig., § 9680; Acts 1983, No. 501, § 1; A.S.A. 1947, § 19-1701.

Case Notes

Cited: Conner v. Burnett, 216 Ark. 559, 226 S.W.2d 984 (1950).

14-52-105. Holiday compensation.

  1. All law enforcement officers regardless of their titles, such as city marshal, employed by cities of the first or second class or incorporated towns shall be compensated for all legal holidays established by the governing body of the municipality.
  2. This compensation shall be based on the law enforcement officer's daily rate of pay and in addition to the regular pay schedule.
  3. This compensation may be included within the officer's base pay.
  4. This compensation shall be prorated and paid during the regular payroll periods or paid in one (1) lump sum annually on a date in December designated by the municipality.

History. Acts 1985, No. 252, § 1; A.S.A. 1947, § 19-1721; Acts 1987, No. 501, § 1.

Publisher's Notes. Acts 1985, No. 252, § 1, is also codified as § 14-53-106.

Case Notes

All Legal Holidays.

Police officers are to be paid for all of the legal holidays whether or not they work on such holidays. Deason v. City of Rogers, 247 Ark. 1061, 449 S.W.2d 410 (1970) (decision under prior law).

Lump Sum.

City violated this section when it reduced regular salaries of law enforcement officers in order to begin paying holiday compensation in one lump sum. City of Pocahontas v. Huddleston, 309 Ark. 353, 831 S.W.2d 138 (1992).

Payment Required.

City cannot nullify legislation providing for payment of holidays to retired police officers by refusing to pass an ordinance or make an appropriation. City of Piggott v. Woodard, 261 Ark. 406, 549 S.W.2d 278 (1977) (decision under prior law).

Right of Action.

A police officer may sue a municipality to collect the amount due him and is not limited to an action to compel the appropriate official to make payment. Deason v. City of Rogers, 247 Ark. 1061, 449 S.W.2d 410 (1970) (decision under prior law).

Payment for Unused Leave.

City cannot nullify legislation providing for payment of accumulated sick leave to retired police officers by refusing to pass an ordinance or make an appropriation. City of Piggott v. Woodard, 261 Ark. 406, 549 S.W.2d 278 (1977).

14-52-106. Annual vacation leave.

  1. The head or chief of each police department shall:
    1. Grant each employee annual vacation leave of not less than fifteen (15) working days with full pay; and
    2. Approve the use of annual vacation leave before the annual vacation leave is used.
  2. Unused annual vacation leave may accumulate to a maximum allowance as determined by ordinance of the municipality.
  3. Upon the first day after the end of the term of service or retirement, an employee may be paid for his or her unused accumulated vacation leave at the employee's regular rate of pay, not to exceed the maximum allowance under ordinance of the municipality.

History. Acts 1937, No. 250, § 2; Pope's Dig., § 9857; Acts 1939, No. 11, §§ 1, 2; 1953, No. 86, § 1; 1957, No. 415, § 1; 1963, No. 211, § 1; 1969, No. 68, § 1; 1981, No. 486, § 2; 1983, No. 46, § 1; A.S.A. 1947, § 19-1802; Acts 2019, No. 799, § 1.

Publisher's Notes. Acts 1937, No. 250, § 2, as amended, is also codified as § 24-11-429.

Amendments. The 2019 amendment added “leave” in the section heading; designated the existing text as the introductory paragraph of (a) and (a)(1); substituted “Grant each employee annual vacation leave” for “arrange that each employee shall be granted an annual vacation” in (a)(1); added (a)(2); and added (b) and (c).

14-52-107. Uniform sick leave — Definition.

    1. From and after April 11, 1969, all law enforcement officers, regardless of their titles, such as city marshal, employed by cities of the first and second class or incorporated towns shall accumulate sick leave at the rate of twenty (20) working days per year beginning one (1) year after the date of employment.
    2. If unused, sick leave shall accumulate to a maximum of sixty (60) days unless the city or town, by ordinance, authorizes the accumulation of a greater amount, in no event to exceed a maximum accumulation of ninety (90) days, except for the purpose of computing years of service for retirement purposes.
    1. In cities having sick leave provisions through ordinance, the total sick leave accumulated by the individual officer shall be credited to him or her and new days accumulated under the provisions of this section until the maximum prescribed in subsection (a) of this section is reached.
    2. Time off may be charged against accumulated sick leave only for such days that an officer is scheduled to work. No such sick leave as provided in this section shall be charged against any officer during any period of sickness, illness, or injury for any days which the officer is not scheduled to work.
  1. If, at the end of his or her term of service, upon retirement or death, whichever occurs first, any police officer has unused accumulated sick leave, he or she shall be paid for this sick leave at the regular rate of pay in effect at the time of retirement or death. Payment for unused sick leave in the case of a police officer, upon retirement or death, shall not exceed sixty (60) days salary unless the city, by ordinance, authorizes a greater amount, but in no event to exceed ninety (90) days' salary.
    1. A city of the first class, a city of the second class, and an incorporated town may adopt a catastrophic leave program by ordinance under § 14-42-123 to include a “presumptive illness list for municipal police department” under this section.
    2. As used in this section, a “presumptive illness list for municipal police department” means an illness that is chronic or fatal.

History. Acts 1969, No. 393, §§ 1-3; 1971, No. 241, §§ 1-3; 1983, No. 842, §§ 1-3; 1985, No. 181, § 1; 1985, No. 240, § 1; 1985, No. 892, § 1; A.S.A. 1947, §§ 19-1718 — 19-1720; Acts 2019, No. 883, § 2.

Publisher's Notes. Acts 1969, No. 393, §§ 1-3, as amended, are also codified as § 14-53-108.

Amendments. The 2019 amendment added (d).

Research References

U. Ark. Little Rock L.J.

Survey of Arkansas Law, Public Law, 1 U. Ark. Little Rock L.J. 230.

Case Notes

Constitutionality.

Legislation granting additional pay to retired police officers for accumulated sick leave is not unconstitutional as singling out certain employees for special privileges not afforded all municipal employees, since the legislative classification is founded upon a reasonable basis and operates uniformly upon the class to which it applies. City of Piggott v. Woodard, 261 Ark. 406, 549 S.W.2d 278 (1977).

Cited: City of Fort Smith v. Brewer, 255 Ark. 813, 502 S.W.2d 643 (1973); Combs v. Cheek, 283 Ark. 69, 671 S.W.2d 177 (1984).

14-52-108. Monthly payroll incentives.

All cities of the first class, cities of the second class, and incorporated towns may establish monthly payroll incentives for police officers in their employ based upon professional certificates of training conferred upon the officer by the Arkansas Commission on Law Enforcement Standards and Training or equivalent certificates acquired from another state.

History. Acts 1991, No. 370, § 1.

Cross References. Commission and advisory board on standards and training, § 12-9-101 et seq.

14-52-109. Participation in political activities.

Notwithstanding any law to the contrary, law enforcement officers of cities and incorporated towns shall not be prohibited from engaging in political activities except when on duty, when in uniform, or when acting in an official capacity, nor shall they be denied the right to refrain from engaging in political activities.

History. Acts 1991, No. 580, § 1.

Cross References. Political activity by law enforcement officers of cities or incorporated towns, § 14-52-306.

14-52-110. Fees for serving city warrants.

  1. For serving city warrants only, the chief of police of a city of the second class or his or her deputies shall be entitled to the fees allowed to the sheriffs under § 21-6-307 for similar services in similar cases.
  2. All fees collected by the police chief and his or her deputies for similar services shall be paid over to the city treasury.

History. Acts 1993, No. 459, § 1.

14-52-111. Fees for bail or delivery bond.

A municipal police department in this state may charge and collect a fee of twenty dollars ($20.00) for taking and entering a bail or delivery bond.

History. Acts 1997, No. 252, § 1; 2003, No. 1347, § 1; 2013, No. 1283, § 1.

Amendments. The 2013 amendment substituted “A” for “Every” at the beginning of the section, substituted “may” for “is authorized to,” inserted “of twenty dollars ($20.00)” following “fee,” and deleted “twenty dollar ($20.00)” preceding “fee.”

14-52-112. Award of pistol and purchase of shotgun upon retirement.

  1. When a law enforcement officer employed by a city of the first class, city of the second class, or incorporated town retires from service or dies while still employed with the city of the first class, city of the second class, or incorporated town, in recognition of and appreciation for the service of the retiring or deceased law enforcement officer, the mayor, city manager, or city administrator of the city of the first class, city of the second class, or incorporated town may award the pistol carried by the law enforcement officer at the time of his or her death or retirement from service to:
    1. The law enforcement officer; or
    2. The law enforcement officer's spouse if the spouse is eligible under applicable state and federal laws to possess a firearm.
  2. When a law enforcement officer retires from service, the law enforcement officer may purchase the shotgun he or she used while on duty at the fair market value as determined by the mayor, city manager, or city administrator of the city of the first class, city of the second class, or incorporated town.

History. Acts 2007, No. 365, § 1.

14-52-113. Property exchange.

  1. A municipal police department may exchange real property or personal property with another municipal police department.
  2. An exchange of property shall be approved by the governing body of the municipality.
  3. This section does not prohibit a governing body of a municipality from authorizing:
    1. An exchange of real property or personal property by the chief of police of a municipal police department; or
    2. A property exchange clearinghouse operated by the Arkansas Association of Chiefs of Police.

History. Acts 2007, No. 433, § 1.

Subchapter 2 — Officers

Effective Dates. Acts 1875, No. 1, § 95: effective on passage.

14-52-201. Number of police officers.

The governing body of a municipality shall direct by general ordinance the number of subordinate police officers to be appointed.

History. Acts 1875, No. 1, § 53, p. 1; C. & M. Dig., § 7742; Pope's Dig., § 9938; A.S.A. 1947, § 19-1703; Acts 2013, No. 726, § 1.

Amendments. The 2013 amendment substituted “governing body of a municipality” for “city council in cities of the first class.”

14-52-202. Powers and duties of police chiefs.

  1. The chief of police in a municipality shall execute all process directed to him or her by the mayor and shall attend by himself or herself or by someone else on the police force on the sitting of the district court to execute its orders and preserve order therein.
    1. The chief of police has power to appoint one (1) or more deputies from the police force, for whose official acts he or she is responsible, and by whom he or she may execute all process directed to him or her.
      1. He or she shall have power, by himself or herself or by deputy, to execute all process in any part of the county in which the district court is situated or in which the district court has jurisdiction.
      2. The person executing process under this subdivision (b)(2) shall work in coordination with the sheriff for the unincorporated areas of the county.
    2. For serving city warrants only, the chief of police or his or her deputies shall be entitled to the fees allowed to a sheriff under § 21-6-307 for similar services in similar cases.
    3. All fees collected by the police chief and his or her deputies for similar services shall be deposited into the city treasury.
  2. It is the chief of police's duty to suppress all riots, disturbances, and breaches of the peace. To that end he or she may call upon the citizens to assist him or her to apprehend all persons in the act of committing any offense against the laws of the state or the ordinances of the city, and he or she shall bring them immediately before the proper authority for examination or trial.
  3. The chief of police has power to pursue or arrest any person fleeing from justice in any part of the state and to receive and execute any proper authority for arrest and detention of criminals fleeing or escaping from any other place or state.
  4. In the discharge of his or her proper duties, the chief of police has like powers and is subject to like responsibilities as sheriffs and constables in similar cases and is required by the city council to give a bond for the faithful performance of his or her duties in a sum as the council may require.

History. Acts 1875, No. 1, § 52, p. 1; C. & M. Dig., § 7703; Pope's Dig., § 9846; A.S.A. 1947, § 19-1702; Acts 1989, No. 726, § 1; 2013, No. 726, § 1.

A.C.R.C. Notes. The operation of that portion of subsection (e) of this section relating to provision of a bond was suspended by adoption of a self-insured fidelity bond program for public officers, officials and employees, effective July 20, 1987, pursuant to § 21-2-701 et seq. The subsection may again become effective upon cessation of coverage under that program. See § 21-2-703.

Amendments. The 2013 amendment substituted “has” for “shall have” and made gender-related changes throughout the section; in (a), substituted “a municipality” for “cities of the first class” and “district” for “police” preceding “court”; inserted the (b)(2)(A) designation; substituted “district court” for “police court” and for “municipal court” in present (b)(2)(A); added (b)(2)(B); and substituted “deposited into” for “paid over to” in (b)(4)

Cross References. Self-Insured Fidelity Bond Program, § 21-2-701 et seq.

Case Notes

In General.

It is the police chief of a municipality who is given authority to suppress breaches of the peace, an arguably policy-making position. Miller v. Compton, 122 F.3d 1094 (1997).

Liability.

The argument in an action under 42 U.S.C. § 1983 that a superior should be made liable for a subordinate's decision, although clothed in terms from this section, is no more than an attempt to impose liability under a theory of respondeat superior, a theory of recovery precluded under 42 U.S.C. § 1983. Miller v. Compton, 122 F.3d 1094 (1997).

Suspension.

The authority to draft citizens into service granted by subsection (c) of this section cannot undo a police officer's suspension. Arkansas State Police v. Davis, 45 Ark. App. 40, 870 S.W.2d 408 (1994), rehearing denied, 46 Ark. App. 320, 879 S.W.2d 473 (1994).

Cited: Wing v. Britton, 748 F.2d 494 (8th Cir. 1984).

14-52-203. Duties of police officers.

  1. In a municipality, the duty of the chief of police and other officers of the police department is under the direction of the mayor.
  2. It is their duty to:
    1. Suppress a riot, disturbance, or breach of the peace;
    2. Pursue and arrest a person fleeing from justice in any part of this state;
    3. Apprehend a person in the act of committing an offense against the laws of the state or the ordinances of the city and forthwith bring the person before the proper authority for trial or examination; and
    4. Diligently and faithfully enforce at all times all laws, ordinances, and regulations for the preservation of good order and the public welfare as the city council may ordain. For this purpose, the chief of police and other officers of the police department have all the power of constables.

History. Acts 1875, No. 1, § 53, p. 1; C. & M. Dig., § 7704; Pope's Dig., § 9847; A.S.A. 1947, § 19-1705; Acts 2013, No. 726, § 1.

Amendments. The 2013 amendment, in (a), substituted “a municipality” for “cities of the first class” and “is” for “shall be”; substituted “is” for “shall be” in the introductory language of (b); substituted “a riot, disturbance, or breach” for “all riots, disturbances, and breaches” in (b)(1); substituted “a” for the first occurrence of “any” in (b)(2); in (b)(3), substituted “a person” for “any and all persons,” “an offense” for “any offenses,” and “person” for “persons”; and, in (b)(4), deleted “such” preceding “laws” and substituted “the chief of police and other officers of the police department” for “they shall.”

Research References

Ark. L. Rev.

City of Caddo Valley v. George: Stop or I'll Sue! Police Chases and the Price Cities May Pay, 55 Ark. L. Rev. 425 (2002).

Case Notes

Construction with Other Law.

While the day-to-day duties of the chief of police and other officers of the police department in a city of the first and second class are under the direction and general superintendence of the mayor, the city council prescribes the police department's duties and defines its powers, i.e., makes the police department's policy pursuant to § 14-52-101. Brinkley v. City of Helena-West Helena, No. 2:11-cv-00207-SWW, 2014 U.S. Dist. LEXIS 116592 (E.D. Ark. Aug. 21, 2014).

Off Duty.

A police officer is, in a sense, on duty 24 hours a day, seven days a week and is not relieved of his obligation to preserve the peace while “off duty.” Gibson v. State, 316 Ark. 705, 875 S.W.2d 58 (1994).

Cited: Meyers v. State, 253 Ark. 38, 484 S.W.2d 334 (1972); State v. Osborn, 263 Ark. 554, 566 S.W.2d 139 (1978).

14-52-204. Power to arrest.

In a municipality, the mayor or a police officer of the city may arrest upon view a person whom he or she has probable cause to believe is guilty of a breach of the ordinances of the city or of a crime against the laws of the state and, upon reasonable information supported by affidavit, may procure process for the arrest of a person who may be charged with a breach of an ordinance of the city.

History. Acts 1875, No. 1, § 53, p. 1; A.S.A. 1947, § 19-1706; Acts 2013, No. 726, § 1.

Amendments. The 2013 amendment rewrote the section.

Research References

Ark. L. Rev.

Search of the Person Incident to a Lawful Arrest, 28 Ark. L. Rev. 79.

Case Notes

Off Duty.

Though patrolman for police department was employed as a security guard for a motel and was off duty as a patrolman at the time of an arrest in the motel, defendant was guilty of resisting the arrest. Meyers v. State, 253 Ark. 38, 484 S.W.2d 334 (1972).

14-52-205. [Repealed.]

Publisher's Notes. This section, concerning hours of work in cities of 25,000 or more, was repealed by Acts 1995, No. 555, § 1. The section was derived from Acts 1955, No. 78, § 1; 1965, No. 564, § 1; A.S.A. 1947, § 19-1712; Acts 1987, No. 984, § 1.

Subchapter 3 — Bill of Rights for Law Enforcement Officers

14-52-301. Purpose.

  1. The purpose of this subchapter is to recommend a basic Bill of Rights for law enforcement officers of cities and incorporated towns in Arkansas.
  2. Any municipality shall have the authority to adopt a local ordinance establishing any or all of these procedures as a guide for negotiating personnel issues with its law enforcement officers.

History. Acts 1991, No. 564, § 1.

14-52-302. Definitions.

As used in this subchapter:

  1. “Complainant” means the person or persons providing the information constituting the basis for official departmental charges alleging improper conduct;
  2. “Formal proceeding” means a proceeding heard before any officer, committee, or other body of city government with the authority to take disciplinary action against a law enforcement officer;
  3. “Law enforcement officer” means any public servant vested by law with a duty to maintain order or to make arrests for offenses; and
  4. “Official departmental charges” means a written document from the chief of police or other lawful authority notifying the accused law enforcement officer that charges of misconduct have been made and setting forth the specifics of the alleged misconduct.

History. Acts 1991, No. 564, § 2.

14-52-303. Disciplinary proceedings.

Whenever a law enforcement officer is under investigation for alleged improper conduct with a possible result of termination, demotion, or other disciplinary action causing loss of pay or status, the following minimum standards may apply:

  1. No adverse inference shall be drawn and no punitive action taken from a refusal of the law enforcement officer being investigated to participate in the investigation or be interrogated other than when the law enforcement officer is on duty or is otherwise fully compensated for the time spent in accordance with city and departmental overtime policy and state and federal law;
  2. Any interrogation of a law enforcement officer shall take place at the office of those conducting the investigation, the place where the law enforcement officer reports for duty, or the other reasonable place as the investigator may determine;
  3. The law enforcement officer being investigated shall be informed at the commencement of his or her interrogation of:
    1. The nature of the investigation;
    2. The identity and authority of the person or persons conducting the investigation; and
    3. The identity of all persons present during the interrogation;
  4. During the interrogation of the law enforcement officer, questions will be posed by or through only one (1) interrogator at a time;
  5. Any interrogation of a law enforcement officer in connection with an investigation shall be for a reasonable period of time and shall allow for reasonable periods for the rest and personal necessities of the law enforcement officer;
  6. No threat, harassment, promise, or reward shall be made to any law enforcement officer in connection with an investigation in order to induce the answering of any questions that the law enforcement officer has a legal right to refrain from answering, but immunity from prosecution may be offered to induce such a response;
  7. All interrogations of a law enforcement officer in connection with an investigation against him or her shall be recorded in full. The law enforcement officer shall be allowed to make his or her own independent recording of his or her interrogation and have one (1) witness of his or her choosing present. The witness must be an attorney or a member of the police department that is in no way related to the matter under investigation;
  8. No formal proceeding which has the authority to administer disciplinary action against a law enforcement officer may be held except upon official departmental charges;
  9. Official departmental charges shall contain the specific conduct that is alleged to be improper, the date and the time of the alleged misconduct, the witnesses whose information provided the basis for the charges, and the specific rules, regulations, orders, or laws alleged to have been violated;
  10. Any law enforcement officer under official departmental charges shall be entitled to a predisciplinary hearing before the chief of police if the disciplinary action is being considered. At the hearing, the law enforcement officer shall have the opportunity to have a person of his or her choosing present; and
  11. No formal proceeding which has authority to penalize a law enforcement officer may be brought except upon charges signed by the person making those charges.

History. Acts 1991, No. 564, § 3.

14-52-304. Disclosure not required for promotion or assignment.

No law enforcement officer shall be required to disclose for the purposes of promotion or assignment any item of his or her property, income, assets, debts, or expenditures, or those of any member of the officer's household.

History. Acts 1991, No. 564, § 4.

14-52-305. Notification of personnel action.

Whenever a personnel action may result in any loss of pay or benefits or status, the law enforcement officer shall be notified of the pending action by written official departmental charges a reasonable time before the action is taken except where exigent circumstances otherwise require.

History. Acts 1991, No. 564, § 5.

14-52-306. Participation in political activities.

Except when on duty or acting in his or her official capacity, no law enforcement officer of a city or incorporated town shall be prohibited from engaging in political activity or be denied the right to refrain from engaging in the activity.

History. Acts 1991, No. 564, § 8.

Cross References. Political activity by municipal law enforcement officers, § 14-52-109.

Political activity of public employees permitted, § 21-1-207.

14-52-307. No retaliation for exercise of rights — Other legal remedies.

  1. There shall be no penalty nor threat of any penalty for the exercise by a law enforcement officer of his or her rights under this Bill of Rights.
  2. Nothing in this Bill of Rights shall disparage or impair any other legal remedy any law enforcement officer shall have with respect to any rights under this Bill of Rights.

History. Acts 1991, No. 564, §§ 6, 7.

Chapter 53 Municipal Fire Departments

Cross References. Appointment of fire chiefs, §§ 14-42-110, 14-47-120, 14-48-117.

Civil service for fire departments, § 14-51-101 et seq.

Firemen's relief and pension funds, § 24-11-801 et seq.

Effective Dates. Acts 1875, No. 1, § 95: effective on passage.

Acts 1923, No. 135, § 5: effective on passage.

Acts 1947, No. 240, § 2: Mar. 18, 1947. Emergency clause provided: “It is found that firemen have been working an excessive number of hours each week and that this condition should be corrected in the interest of public safety. An emergency is therefore declared to exist and this act shall be in full force and effect from and after its passage and approval.”

Acts 1969, No. 326, § 4: Mar. 26, 1969. Emergency clause provided: “It is hereby found and determined by the General Assembly that the maximum work week for firemen is prescribed by law as 72 hours per week; that a work week of 72 hours is unduly long and that firemen cannot give the best service to the people of this State when required to work 72 hours per week; that the maximum work week of firemen in certain cities must be reduced in order that such firemen can provide the best possible fire protection to the residents of such cities; and that this Act is immediately necessary to correct this situation. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1969, No. 393, § 5: Apr. 11, 1969. Emergency clause provided: “It is hereby found and determined by the General Assembly that the present sick leave provisions are not adequate to provide for the essential sick leave of policemen in cities of the first and second class; that the existing provisions for sick leave are not uniform; and that in order to remedy this situation, it is necessary that this Act become effective immediately. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall become effective from and after its passage and approval.”

Acts 1971, No. 241, § 5: Mar. 9, 1971. Emergency clause provided: “It is hereby found and determined by the General Assembly that the existing sick leave provisions as to fire fighters are not adequate to provide for the essential sick leave of such fire fighters in cities of the first and second class; that the existing provisions for sick leave are not uniform; and that only by the passage of this Act can this situation be properly remedied. Therefore, an emergency is hereby declared to exist and this Act, being necessary for the immediate preservation of the public peace, health and safety, shall become effective from and after its passage and approval.”

Acts 1973, No. 278, § 2, provided: “Section 1 of this act shall take effect on July 1, 1973.”

Acts 1973, No. 278, § 4: Mar. 9, 1973. Emergency clause provided: “The General Assembly finds that the maximum work week of firemen in certain cities, which is presently 64 hours per week, must be reduced in order that such firemen can provide the best possible fire protection to the residents of such cities; that Act 151 of 1973 did reduce said maximum work week to 56 hours per week, but that the immediate effectiveness of said Act 151 of 1973, caused by the fact that said Act 151 contained an emergency clause, has presented the cities to which said Act 151 applies with a financial problem for which they had not budgeted, and which they need time to meet. It is necessary, therefore, that said Act 151 of 1973 be immediately repealed and replaced by this Act. An emergency is therefore declared to exist, and this Act, being necessary for the public peace, health, and safety, shall be effective immediately upon its passage and approval.”

Acts 1985, No. 240, § 3: Mar. 4, 1985. Emergency clause provided: “It is hereby found and determined by the General Assembly that the present sick leave law applicable to police officers has been misconstrued as not applying to certain municipal police officers, such as city marshals; that such misinterpretation has resulted in inequity; that all law enforcement officers employed by municipalities in this State should receive the benefits of the sick leave law; and that this Act is immediately necessary to accomplish the same. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1985, No. 252, § 3: Mar. 4, 1985. Emergency clause provided: “It is hereby found and determined by the General Assembly that the present laws pertaining to the compensation for municipal policemen and firemen for holidays is obsolete and contradictory; that this Act clarifies the law in that area and should be given effect immediately to eliminate the confusion and avoid expensive and unnecessary litigation. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Research References

ALR.

Requirement of residency within or near specified governmental unit as condition of continued employment for policemen or firemen. 4 A.L.R.4th 380.

Am. Jur. 56 Am. Jur. 2d, Mun. Corp., § 115.

C.J.S. 62 C.J.S., Mun. Corp., § 591 et seq.

Case Notes

Cited: Donaldson v. Taylor, 327 Ark. 93, 936 S.W.2d 551 (1997).

14-53-101. Establishment in cities.

    1. Except as provided in subdivision (a)(2) of this section, the city council shall establish fire departments and provide them with proper engines and such other equipment as shall be necessary to extinguish fires and preserve the property of the city and of the inhabitants from conflagration.
    2. In lieu of establishing its own fire department under this section, the city council by ordinance may enter into a contract or interlocal agreement for city fire protection with an existing fire department certified by the Arkansas Fire Protection Services Board.
  1. The city council shall promulgate rules to govern the fire department that the city council deems expedient.

History. Acts 1875, No. 1, § 6, p. 1; C. & M. Dig., § 7595; Pope's Dig., § 9681; A.S.A. 1947, § 19-2101; Acts 2015, No. 106, § 1.

Amendments. The 2015 amendment redesignated former (a) as (a)(1); added “Except as provided in subdivision (a)(2) of this section” to the beginning of present (a)(1); inserted (a)(2); and, in (b), inserted “city” preceding “council,” substituted “rules” for “such rules and regulations,” inserted “fire” preceding “department,” and substituted “that the city council deems” for “as it shall deem.”

14-53-102. Firefighting beyond municipal limits.

    1. In order to prevent the destruction by fire of property located outside the corporate limits of cities and towns and in order to lessen the loss caused on account of insufficient means to combat fires and as a protection against such loss, the city council or other governing body of any city or town having an organized fire department may provide by ordinance that the firefighting machinery and equipment, with the necessary firefighters to operate it, may be used to combat fires beyond the corporate limits of any city or town, upon such terms, conditions, and restrictions as may be prescribed in the ordinance.
      1. If the city council or other governing body of any city or town enacts an ordinance to provide that its fire department may operate beyond its corporate limits, then the governing body of the city or town may further provide that necessary facilities may be built or constructed outside the corporate limits to house the firefighting machinery, equipment, and the firefighters in order to properly combat fires beyond the corporate limits, but only if:
        1. There are no active fire protection services offered in the area beyond the corporate limits of the city or town where the facilities are to be constructed; and
        2. The county quorum court approves of the construction of the firefighting facilities by a county ordinance.
      2. However, a city or town may construct necessary facilities to house the firefighting equipment in areas where fire protection services currently exist if, in addition to the requirement of subdivision (a)(2)(A) of this section, the construction is approved by a unanimous vote of the board of directors of the fire department serving that area outside the corporate limits.
      1. When the organized fire department of a city or town combats a fire beyond the corporate limits of the city or town, a reasonable effort shall be made for ninety (90) days to obtain compensation or reimbursement for the services from the property owner involved.
      2. If the city or town is unable to obtain payment or reimbursement from the property owner for the services within the ninety-day period, the county wherein the property is located may reimburse the municipality for the service in an amount not to exceed two hundred dollars ($200).
        1. A claim under this subsection shall be supported by a completed and attached Uniform Fire Department Insurance Reimbursement Billing Form.
        2. The Arkansas Fire Protection Services Board shall adopt rules to create the form and the allowable rates for reimbursement.
        3. The board shall use the Schedule of Equipment Rates published by the Federal Emergency Management Agency of the United States Department of Homeland Security, as in effect on January 1, 2013.
    1. The city or town may seek payment or reimbursement from the property owner involved or the county after the ninety-day period for one hundred percent (100%) of the expendable resources the city or town used to respond to an accident if the accident involved personal property only.
    1. Neither the municipality nor any municipal official or fire department official or employee involved in combatting the fire shall be liable for any damages or loss that occurs while the department is combatting the fire outside the corporate limits of the city or town.
    2. The firefighters shall have the same coverage as they now have if they are injured while outside the city limits.
  1. All members of the fire department of any city or town when engaged in fighting fire beyond the corporate limits of the city or town under the terms of any ordinance as authorized in this section shall be considered to be acting within their line of duty and in discharge thereof. No member of the department shall lose or forfeit any right or benefit in rank, pay, disability, or retirement payments and benefits on account of out-of-city or out-of-town activities.

History. Acts 1951, No. 270, §§ 1, 2; 1957, No. 348, § 1; 1973, No. 114, §§ 1, 2; A.S.A. 1947, §§ 19-2106 — 19-2107; Acts 2001, No. 1464, § 1; 2013, No. 1345, § 1.

Amendments. The 2013 amendment redesignated former (b)(1) and (2) as present (b)(1)(A) and (B); and added (b)(1)(C) and (b)(2).

Cross References. Territory annexed by municipality to have fire protection, § 14-40-1212.

14-53-103. [Repealed.]

Publisher's Notes. This section, concerning exemptions for firefighters from military or jury duty, was repealed by Acts 1997, No. 484, § 1 and No. 214, § 1. The section was derived from: Acts 1875, No. 1, § 6, p. 1; C. & M. Dig., § 7595; Pope's Dig., § 9681; A.S.A. 1947, § 19-2101.

14-53-104. [Repealed.]

Publisher's Notes. This section, concerning duty hours of fire department employees, was repealed by Acts 1997, No. 214, § 1. The section was derived from Acts 1923, No. 135, § 1; Pope's Dig., § 9852; A.S.A. 1947, § 19-2103.

14-53-105. Arrangement of members' hours — Emergencies.

    1. The uniformed force of the fire department shall be divided into two (2) platoons, the officers and members assigned to which shall alternate on tours of duty at intervals of not more than fifteen (15) days.
      1. The chief of the department shall arrange the working hours of the employees of the department so that each employee shall work, as nearly as practicable, an equal number of hours per month, not to exceed seventy-two (72) hours per week.
      2. At his or her discretion, the chief of the department may require in case of an epidemic, conflagration, or other emergency the employees for a greater period than provided in this section to continue on duty during the epidemic, conflagration, or other emergency.
    1. The uniformed force of fire departments in cities of Arkansas having a population of fifteen thousand (15,000) or more, according to the latest official federal census, shall be divided into platoons.
        1. The chief of the department in cities of this state affected by this subsection shall assign, as nearly as practicable, an equal number of employees of the department to each platoon so that each employee shall work, as nearly as practicable, an equal number of hours per month, not to exceed an average of fifty-six (56) hours per week for each period of three (3) weeks.
        2. There shall be no reduction of salaries of employees of the departments because of the number of hours worked during each week as provided in this subsection.
      1. At his or her discretion in case of an epidemic, conflagration, or other emergency, the chief of the department may require the employee to continue on duty for a greater period than provided in this subsection during the epidemic, conflagration, or like emergency.

History. Acts 1923, No. 135, § 2; Pope's Dig., § 9853; Acts 1947, No. 240, § 1; 1957, No. 157, § 1; 1969, No. 326, § 1; 1973, No. 278, § 1; A.S.A. 1947, §§ 19-2104, 19-2104.1.

Case Notes

Constitutionality.

That to comply with the provisions of this section restricting a workweek to 72 hours would compel the employment of an additional “platoon” of city fire fighters does not render this section void for want of due process. Nalley v. Throckmorton, 212 Ark. 525, 206 S.W.2d 455 (1947).

“Work.”

Word “work” as used in this section restricting the working hours to 72 hours per week means the hours spent on duty even though a fire fighter is permitted to sleep. Nalley v. Throckmorton, 212 Ark. 525, 206 S.W.2d 455 (1947).

Cited: Mankin v. Dean, 228 Ark. 752, 310 S.W.2d 477 (1958).

14-53-106. Holiday compensation.

  1. All firefighters employed by cities of the first or second class or incorporated towns shall be compensated for all legal holidays established by the governing body of the municipality.
  2. This compensation shall be based on the firefighter's daily rate of pay and in addition to the regular pay schedule.
  3. This compensation may be included within the firefighter's base pay.
  4. This compensation shall be prorated and paid during the regular payroll periods or paid in one (1) lump sum annually on a date in December designated by the municipality.

History. Acts 1985, No. 252, § 1; A.S.A. 1947, § 19-1721; Acts 1987, No. 501, § 1.

Publisher's Notes. Acts 1985, No. 252, § 1, is also codified as § 14-52-105.

Case Notes

All Legal Holidays.

Fire fighters are to be paid for state legal holidays, but there can be no intent to pay for holidays which do not occur, and in years when there are no elections the number would be fewer. City of Fort Smith v. Brewer, 255 Ark. 813, 502 S.W.2d 643 (1973) (decision under prior law).

Basis.

Holiday pay meant “days with full pay” or eight-hour days rather than twenty-four-hour tours of duty. City of Fort Smith v. Brewer, 255 Ark. 813, 502 S.W.2d 643 (1973) (decision under prior law).

Included with Base Pay.

Lack of pay check identity for holiday pay did not prove failure by city to comply with former statute granting that pay. International Asso. of Fire Fighters v. Little Rock, 256 Ark. 266, 506 S.W.2d 836 (1974) (decision under prior law).

14-53-107. Annual vacation.

The chief of the fire department shall so arrange that each employee shall be granted an annual vacation of not less than fifteen (15) days with full pay.

History. Acts 1923, No. 135, § 3; 1935, No. 73, § 1; Pope's Dig., § 9854; A.S.A. 1947, § 19-2105.

Case Notes

Cited: City of Fort Smith v. Brewer, 255 Ark. 813, 502 S.W.2d 643 (1973).

14-53-108. Uniform sick leave — Definitions.

      1. From and after April 11, 1969, all firefighters employed by cities of the first class and cities of the second class shall accumulate sick leave in accordance with a municipal ordinance at the rate of not less than ten (10) working days nor more than twenty (20) working days per year, beginning one (1) year after the date of employment.
      2. As used in this section, “working day” means that period of time a firefighter is on duty within a twenty-four-hour period. If the firefighter is on duty for twelve (12) hours or more in a twenty-four-hour period, a working day shall be not less than twelve (12) hours nor more than twenty-four (24) hours.
      3. The number of days of sick leave in effect for firefighters employed by cities of the first class and cities of the second class on January 1, 2005, shall remain in effect until changed by authority of a municipal ordinance, and nothing in this section shall be construed to require a reduction in the level of sick leave below the rate of twenty (20) working days per year or the rate in effect on January 1, 2005.
      1. If unused, sick leave shall accumulate to a maximum of one thousand four hundred forty (1,440) hours unless the city by ordinance authorizes the accumulation of a greater amount, in no event to exceed a maximum accumulation of two thousand one hundred sixty (2,160) hours.
      2. Unused accumulated sick leave shall not be used for the purpose of computing years of service for retirement purposes.
    1. In cities having sick leave provisions through ordinance, the total sick leave accumulated by the individual firefighter shall be credited to him or her and new days accumulated under the provisions of this section until the maximum prescribed in subsection (a) of this section is reached.
    2. If the governing body of the employing municipality successfully reduces the accrual rate, no firefighter shall have any previously earned sick leave reduced in value.
    3. Time off may be charged against accumulated sick leave only for the days that a firefighter is scheduled to work. No sick leave as provided in this section shall be charged against any firefighter during any period of sickness, illness, or injury for any days that the firefighter is not scheduled to work.
    1. If at the end of his or her term of service, upon retirement or death, whichever occurs first, any firefighter has unused accumulated sick leave, he or she shall be paid for this sick leave at the regular rate of pay in effect at the time of retirement or death.
    2. Payment for unused sick leave in the case of a firefighter, upon retirement or death, shall not exceed three (3) months' salary unless the city, by ordinance, authorizes a greater amount, but in no event to exceed four and one-half months' salary.
    1. Cities of the first class, cities of the second class, and incorporated towns shall have the option of providing sick leave for firefighters to accumulate at a rate of fifteen (15) twenty-four-hour working days per year beginning with the date of employment and decreasing to twelve (12) twenty-four-hour working days beginning four (4) years after employment.
    2. Unused sick leave shall accumulate to firefighters provided with fifteen (15) twenty-four-hour working days per year sick leave and twelve (12) twenty-four-hour working days per year sick leave to a maximum of one hundred (100) twenty-four-hour working days.
    1. A city of the first class, a city of the second class, and an incorporated town may adopt a catastrophic leave program by ordinance under § 14-42-123 to include a “presumptive illness list for municipal fire department” under this section.
    2. As used in this section, a “presumptive illness list for municipal fire department” means an illness that is chronic or fatal.

History. Acts 1969, No. 393, §§ 1-3; 1971, No. 241, §§ 1-3; 1983, No. 842, §§ 1-3; 1985, No. 181, § 1; 1985, No. 240, § 1; 1985, No. 892, § 1; A.S.A. 1947, §§ 19-1718 — 19-1720; Acts 1987, No. 716, § 1; 1997, No. 412, § 1; 2005, No. 1828, § 1; 2019, No. 883, § 3.

Publisher's Notes. Acts 1969, No. 393, §§ 1-3, as amended, are also codified as § 14-52-107.

Amendments. The 2019 amendment added (e).

Research References

U. Ark. Little Rock L.J.

Survey of Arkansas Law, Public Law, 1 U. Ark. Little Rock L.J. 230.

Case Notes

Constitutionality.

As to constitutionality of similar statute concerning payment for accumulated sick leave to police officers, see City of Piggott v. Woodard, 261 Ark. 406, 549 S.W.2d 278 (1977).

Days.

The term “working day” in this section must be construed to refer to an eight-hour day rather than a twenty-four hour shift. Donaldson v. Taylor, 327 Ark. 93, 936 S.W.2d 551 (1997).

In the city of Pine Bluff, in calculating sick leave under subsection (a) prior to January 1, 1993, a fireman working a twenty-four-hour shift who missed his or her entire shift due to illness was charged only one eight-hour day of sick leave; after January 1, 1993, the City's new sick-leave policy, which conformed with this section's language, redefined a sick day as eight hours, so that a fireman missing an entire twenty-four-hour shift would be charged three days of his or her accumulated sick leave. Donaldson v. Taylor, 327 Ark. 93, 936 S.W.2d 551 (1997).

The General Assembly enacted Acts 1983, No. 842, which amended this section, after the decision in City of Fort Smith v. Brewer, 255 Ark. 813, 502 S.W.2d 643 (1973), where, in calculating firemen's holidays, the statutory term “working days” was construed to mean an eight-hour day rather than a twenty-four-hour shift. Donaldson v. Taylor, 327 Ark. 93, 936 S.W.2d 551 (1997).

Pensions.

Word “salary” as used in § 24-11-818 providing that a retired fire fighter is entitled to be paid a monthly pension equal to one-half the salary attached to his rank does not include payment for unused accumulated sick leave. Combs v. Cheek, 283 Ark. 69, 671 S.W.2d 177 (1984).

Statutory language in § 24-11-818 providing that a retired fire fighter is “entitled to be paid a monthly pension equal to one-half of the salary attached to the rank” was first used in Acts 1921, No. 491, § 4; however, neither sick leave nor lump sum payment for unused accumulated sick leave was statutorily provided for fire fighters until 1971. Thus, the General Assembly could not have intended to include payment for unused accumulated sick leave in its 1921 concept of the word “salary.” Combs v. Cheek, 283 Ark. 69, 671 S.W.2d 177 (1984).

Cited: City of Fort Smith v. Brewer, 255 Ark. 813, 502 S.W.2d 643 (1973); Combs v. Cheek, 283 Ark. 69, 671 S.W.2d 177 (1984).

14-53-109. [Repealed.]

Publisher's Notes. This section, concerning departmental promotions in commission government cities, was repealed by Acts 1993, No. 1121, § 1. The section was derived from Acts 1957, No. 138, §§ 1-5; A.S.A. 1947, §§ 19-2110 — 19-2113, 19-2113n.

14-53-110. Reimbursement of firefighters.

Cities of the second class may reimburse a firefighter for replacement of personal clothing destroyed during the performance of active service to a fire department.

History. Acts 1989, No. 180, § 1.

14-53-111. Bonus compensation plans.

Cities of the second class may establish through ordinance a bonus compensation plan for firefighters eligible for retirement under the Firemen's Pension and Relief Fund Act, § 24-11-801 et seq., or under the Arkansas Local Police and Fire Retirement System Act, § 24-10-101 et seq., to encourage their continued service to the fire department.

History. Acts 1989, No. 181, § 1.

14-53-112. Fire marshal may be armed.

  1. For purposes of this section, “municipal fire marshal” means a person who holds a full-time office or position of fire marshal created by ordinance in a city of the first class, and who:
    1. Is responsible for the detection and prevention of arson, the enforcement of laws relating to arson and other burning, and enforcement of the city and state fire prevention codes;
    2. Has successfully completed a course of study for law enforcement officers approved by the Arkansas Commission on Law Enforcement Standards and Training;
    3. Has successfully completed an eighty-hour fire and arson investigation course offered by the National Fire Academy, or the Arkansas Fire Training Academy, or an equivalent course; and
    4. Has completed a one-week fire safety inspection class offered by the National Fire Academy or the Arkansas Fire Training Academy or an equivalent class.
  2. A municipal fire marshal is hereby authorized and empowered to carry a weapon and to make arrests for violations of the laws relating to arson and other unlawful burning.

History. Acts 1993, No. 1157, §§ 1, 2.

Cross References. Authority to arrest, § 16-81-106.

Chapter 54 Powers of Municipalities Generally

Research References

Am. Jur. 28 Am. Jur. 2d, Est. & Waiv., § 128.

56 Am. Jur. 2d, Mun. Corp. & Coun., §§ 98 et seq., 193-230, 433-578, 680 et seq.

57 Am. Jur. 2d, Mun. & Coun. Tort., § 5 et seq.

56 Am. Jur. 2d, Mun. Corp., §§ 193-230, 423-578.

C.J.S. 62 C.J.S., Mun. Corp., § 106-313.

Subchapter 1 — General Provisions

Publisher's Notes. Acts 1875, No. 1, § 31, preserved the rights, liabilities and property of municipal corporations organized prior to adoption of the act.

Effective Dates. Acts 1875, No. 1, § 95: effective on passage.

Acts 1883, No. 63, § 3: effective on passage.

Acts 1885, No. 67, § 7: effective on passage.

Acts 1897 (Ex. Sess.), No. 24, § 4: effective on passage.

Acts 1901, No. 173, § 2: effective on passage.

Acts 1931, No. 1, § 4: Jan. 26, 1931. Emergency clause provided: “The General Assembly finds that an opportunity exists at the present time for securing substantial expenditures for the purposes stated in section 1 hereof; that such opportunities may be lost unless the necessary lands can be at once acquired; that such expenditures are much needed during the present unemployment crisis, and that it is necessary for the preservation of the public peace, health and safety that this act become effective without delay. An emergency is therefore declared and this act shall take effect and be in force from and after its passage and approval.”

Acts 1939, No. 68, § 10: Feb. 10, 1939. Emergency clause provided: “Because the act creating the present Agricultural and Industrial Commission expires on March 25, 1939; and after that time there will be no other Commission to carry into effect the provisions of the Tax Exemption Amendment; and such a Commission being required; and, because competitive bidding for new industrial investments among our neighboring states is now intense, and Arkansas should take full advantage of every opportunity; and, it being immediately necessary for the preservation of the public peace, health and safety; an emergency is hereby declared to exist, and this act shall take effect and be in full force from and after its passage and approval.”

Acts 1949, No. 23, § 3: Jan. 28, 1949. Emergency clause provided: “Whereas, it is necessary that cities and towns be granted additional powers to protect the public peace, health and safety, an emergency is hereby declared to exist and this Act shall be in full force and effect from and after its passage and approval.”

Acts 1971, No. 268, § 5: Mar. 12, 1971. Emergency clause provided: “It is hereby found and determined by the General Assembly that the cities and towns of this State are in desperate need of assistance to perform useful public services; that the United States Government has available various forms of financial assistance to enable cities and towns to provide various forms of public services; and that the immediate passage of this Act is necessary to authorize cities and towns to apply for and accept assistance or gifts in the form of funds from the United States of America and to enter into contracts necessary in connection with such financial assistance or gifts. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Research References

ALR.

Validity, construction, and effect of state and local laws requiring governmental units to give “purchase preference” to goods manufactured or services performed in state. 84 A.L.R.4th 419.

14-54-101. Body corporate and politic.

Cities or incorporated towns organized under the provisions of this subtitle are declared to be bodies politic and corporate, under the name and style of “The city of ” or “The incorporated town of ,” as the case may be, capable to:

  1. Sue and be sued;
  2. Contract and be contracted with;
  3. Acquire, hold, and possess real and personal property;
  4. Associate with other municipalities for the promotion of their general welfare;
  5. Join with other municipalities in the purchase of equipment, supplies, or services;
  6. Have a common seal and change and alter it at pleasure; and
  7. Exercise such other powers and have such other privileges as are incident to other corporations of like character or degree, not inconsistent with the provisions of this subtitle or the general laws of this state.

History. Acts 1875, No. 1, § 10, p. 1; C. & M. Dig., § 7490; Pope's Dig., § 9533; Acts 1949, No. 23, § 1; A.S.A. 1947, § 19-2301.

Cross References. Tort liability immunity, § 21-9-301.

Research References

Ark. L. Rev.

Expansion of Municipal Corporation Tort Liability — A Legislative Responsibility, 14 Ark. L. Rev. 313.

Case Notes

In General.

A municipal corporation has no powers except those expressly conferred and those fairly implied for the attainment of declared purposes. Bain v. Ft. Smith Light & Traction Co., 116 Ark. 125, 172 S.W. 843 (1915); Willis v. City of Ft. Smith, 121 Ark. 606, 182 S.W. 275 (1916); City of Argenta v. Keath, 130 Ark. 334, 197 S.W. 686 (1917).

In General.

Municipal corporation has standing to challenge an annexation election as a property owner; therefore, a trial court erred in dismissing the case for failure to state a claim. City of Dover v. City of Russellville, 352 Ark. 299, 100 S.W.3d 689 (2003).

Purpose.

This section permits municipalities to associate for the promotion of their general welfare and to join together in the purchase of services, such as legal services. O'Brien v. City of Greers Ferry, 873 F.2d 1115 (8th Cir. 1989).

Acquire, Etc., Property.

Municipalities have power to dispose of property held for convenience or profit. Searcy v. Yarnell, 47 Ark. 269, 1 S.W. 319 (1886).

Municipalities may acquire land within municipal limits for a public cemetery. City of Ft. Smith v. Wilson, 100 Ark. 587, 140 S.W. 733 (1911).

Municipal corporations have authority to sell property that no longer can be used to advantage or with economy. Fussell-Graham-Alderson Co. v. Forrest City, 145 Ark. 375, 224 S.W. 745 (1920).

Association for Legal Defense Program.

Legal defense program was not a dry-hole contract because it was within the purview of this section for municipalities to create and join such to promote the general welfare of their respective municipalities. Stromwall v. Van Hoose, 371 Ark. 267, 265 S.W.3d 93 (2007).

Municipality is authorized by this section to participate in an association for the promotion of the general welfare of the city and to join with other municipalities to purchase services, and the payment of fees to a legal defense program as a subset of the association is permissible. Therefore, summary judgment was properly granted in a case alleging an illegal exaction since there was no citation of authority for an argument that there was an illegal use of public funds relating to the payment of punitive damages in a settlement; moreover, the fees associated with the joining of a defense program were allowed under this section. Stromwall v. Van Hoose, 371 Ark. 267, 265 S.W.3d 93 (2007).

Contracts.

Municipalities have the power to enter into contracts. Harrison v. Boone County, 238 Ark. 113, 378 S.W.2d 665 (1964).

Given that this section specifically allowed for municipalities to contract and because nothing in the record indicated a limitation on appellant city's and appellee city's ability to contract, the cities were capable of making a contract by joint resolution to cooperate to obtain funding for a proposed municipal outfall sewer line from a wastewater treatment facility to a point downstream of the city limits of appellant city. City of Dardanelle v. City of Russellville, 372 Ark. 486, 277 S.W.3d 562 (2008).

Suits.

There is no greater impediment in asserting statutory liability on a municipality than in asserting contractual liability. Deason v. City of Rogers, 247 Ark. 1061, 449 S.W.2d 410 (1970).

Municipal funds can be used to pay attorney's fees for public officials and employees who are not charged with a criminal offense, and who are sued in their official capacity. O'Brien v. City of Greers Ferry, 873 F.2d 1115 (8th Cir. 1989).

In a garnishment case, there was no need to resort to an official capacity suit against a city as a municipal corporation relating to a failure to pay wages because the city could have been named directly, and process could have been served upon its chief executive officer; although the underlying judgment remained in full force and effect against the parties named in the judgment, the trial court found that the city was not a party to the underlying action or subject to garnishment of its bank accounts. An argument that the city failed to file a verified petition was waived because it was not made below. Collins v. Hall, 2014 Ark. App. 731, 455 S.W.3d 331 (2014).

14-54-102. Powers and restrictions prescribed.

All municipal corporations organized under the provisions of this subtitle shall have general powers and privileges and be subject to the rules and restrictions prescribed in this subtitle.

History. Acts 1875, No. 1, § 11, p. 1; C. & M. Dig., § 7491; Pope's Dig., § 9534; A.S.A. 1947, § 19-2302.

Cross References. Premises and real property used by criminal gangs, organizations, or enterprises, or used by anyone in committing a continuing series of violations — Civil remedies, § 5-74-109.

Criminal nuisance abatement boards, § 14-54-1701 et seq.

Common nuisance declared, § 16-105-402.

Case Notes

Commissions.

The Arkansas General Assembly has deemed cities in Arkansas to be bodies politic and corporate which are capable of suing and being sued; no such express power to sue had been vested in the City of Hot Springs Advertising and Promotion Commission by the general assembly at the time it filed its lawsuit. City of Hot Springs Adv. & Promotion Comm'n v. Cole, 317 Ark. 269, 878 S.W.2d 371 (1994).

The mere power to administer the advertising and promotion fund did not imbue the City of Hot Springs Advertising and Promotion Commission with the power to sue to collect hotel and restaurant taxes, especially when the general assembly had not expressly invested the City of Hot Springs with that authority at the time the complaint was filed. City of Hot Springs Adv. & Promotion Comm'n v. Cole, 317 Ark. 269, 878 S.W.2d 371 (1994).

14-54-103. General powers of cities and towns.

Cities and incorporated towns shall have power to:

  1. Prevent injury or annoyance within the limits of the municipal corporation from anything dangerous, offensive, or unhealthy and cause any nuisance to be abated within the jurisdiction given the board of health in § 14-262-102;
  2. Regulate the keeping and transportation of gunpowder, dynamite, and other combustibles and provide or license magazines for them;
  3. Prevent and punish fast or immoderate riding of horses or driving or propelling of vehicles through the streets;
  4. Establish and regulate markets;
  5. Provide for the measuring or weighing of hay, wood, or any other article for sale;
  6. Regulate the transportation of articles throughout the streets and prevent injury to the streets from overloaded vehicles;
  7. Prevent cruelty to animals;
  8. Prevent any riots, noise, disturbance, or disorderly assemblages;
    1. Regulate drumming or soliciting persons who arrive on trains or otherwise for hotels, boardinghouses, bathhouses, or doctors, to license these drummers, provide that each shall wear a badge plainly exposed to view, showing for whom and for what he is drumming or soliciting patronage, and punish by fines any violation of this subdivision.
    2. Any bona fide owner or proprietor of any hotel or boardinghouse may solicit patronage to his hotel or boardinghouse without being required to wear a badge or pay license therefor;
  9. License, regulate, tax, or suppress ordinaries, hawkers, peddlers, brokers, pawnbrokers, money changers, intelligence offices, public masquerade balls, street exhibitions, sparring exhibitions, dance houses, fortune tellers, pistol galleries, corn doctors, private-lock venereal hospitals, museums and menageries, equestrian performances, horoscopic views, lung testers, muscle developers, magnifying glasses, billiard tables or other instruments used for gaming, theatricals, or other exhibitions, shows, and amusements, or any gift enterprise;
  10. Suppress prizefighting, dogfights, chicken fights, gaming, or gambling houses; and
  11. Regulate or suppress bawdy or disorderly houses, houses of ill-fame, or houses of assignation.

History. Acts 1875, No. 1, § 12, p. 1; 1883, No. 63, § 1, p. 97; 1901, No. 173, § 1, p. 326; C. & M. Dig., § 7529; Pope's Dig., § 9589; A.S.A. 1947, § 19-2303.

Research References

Ark. L. Rev.

Nuisance — Rock Festivals and Nuisance, 25 Ark. L. Rev. 362.

Nickles and Adams, Pawnbrokers, Police, and Property Rights — A Proposed Constitutional Balance, 47 Ark. L. Rev. 793.

Case Notes

In General.

Where violation of ordinance depended on whether two or more neighbors had filed a written petition, it was in conflict with Ark. Const., Art. 2, § 18. City of Springdale v. Chandler, 222 Ark. 167, 257 S.W.2d 934 (1953).

Bawdy or Disorderly Houses.

Municipalities have no right to make the mere presence, abode, or return to the municipality of a prostitute a misdemeanor. Buell v. State, 45 Ark. 336 (1885); Paralee v. State, 49 Ark. 165, 4 S.W. 654 (1887).

Combustibles.

Prohibition against erecting and operating filling stations without permission is a regulation within municipality's police power. Van Hovenberg v. Holeman, 201 Ark. 370, 144 S.W.2d 718 (1940).

Municipality has power to regulate, but not to prohibit, blasting in stone quarries within the municipality. Hackler v. City of Ft. Smith, 238 Ark. 29, 377 S.W.2d 875 (1964).

“Dangerous, Offensive, or Unhealthy.”

Municipalities may prohibit appearance of drunken persons on streets. Ex parte Foote, 70 Ark. 12, 65 S.W. 706 (1901); DeWitt v. La Cotts, 76 Ark. 250, 88 S.W. 877, 1905 Ark. LEXIS 34 (1905); Brooke v. State, 86 Ark. 364, 111 S.W. 471 (1908).

Municipalities cannot require illegal exactions under the guise of protecting the public health. Dreyfus v. Boone, 88 Ark. 353, 114 S.W. 718 (1908).

Butchers may be required to take out a license and have their meats inspected. Trigg v. Dixon, 96 Ark. 199, 131 S.W. 695 (1910).

Municipality has power to pass ordinance prohibiting the hanging of signs within designated area. Berkau v. City of Little Rock, 174 Ark. 1145, 298 S.W. 514 (1927).

Municipality has the power to provide, by proper ordinance, for the removal, at suitable intervals, of garbage, waste, trash, and refuse. Geurin v. City of Little Rock, 203 Ark. 103, 155 S.W.2d 719, 135 A.L.R. 1305 (1941).

Ordinance providing for collection of garbage, waste, trash, and refuse and for inspection of premises and providing penalty for violation thereof was held not void for imprisonment for debt, since punishment was for violation of law. Geurin v. City of Little Rock, 203 Ark. 103, 155 S.W.2d 719, 135 A.L.R. 1305 (1941).

State's power to legislate in the protection of public health has been granted and delegated to municipalities. City of Little Rock v. Smith, 204 Ark. 692, 163 S.W.2d 705 (1942).

Ordinance providing that whenever a person who, upon examination was found to be infected with a venereal disease in a communicable stage, failed to take treatment adequate for the protection of the public health, city health officer could commit that person to a hospital or other place within the state for treatment was held not unconstitutional on ground the regulations were unreasonable. City of Little Rock v. Smith, 204 Ark. 692, 163 S.W.2d 705 (1942).

Municipality has been given power to perform service of fogging the municipality with insecticide by implication under the provision of this section. Holman v. City of Dierks, 217 Ark. 677, 233 S.W.2d 392 (1950).

Drumming or Soliciting.

Ordinances within the terms of this section as to the regulation of drummers are presumed to be reasonable, and the courts will not interfere on the grounds of unreasonableness. City of Fayetteville v. Carter, 52 Ark. 301, 12 S.W. 573 (1889); City of Hot Springs v. Curry, 64 Ark. 152, 41 S.W. 55 (1897).

“Uninvited callers” ordinance bore no reasonable relation to requirements essential to exercise of municipality's police powers and was void as to solicitors, within city, of orders for portrait photographic work. Wilkins v. Harrison, 218 Ark. 316, 236 S.W.2d 82 (1951).

Gaming.

Municipal ordinance licensing exhibiting of a gaming table or gambling device is void. State v. Lindsay, 34 Ark. 372 (1879).

Municipalities have power to suppress gambling devices, and none to regulate them. Goetler v. State, 45 Ark. 454 (1885).

Hotels.

Municipal corporations are not authorized to regulate hotels. Bragg v. Adams, 180 Ark. 582, 21 S.W.2d 950 (1929).

“License, Regulate, Tax,” Etc.

A dealer in real estate for others is a broker and, under this section, may be required to pay a license for following the occupation within the limits of a municipality. City of Little Rock v. Barton, 33 Ark. 436 (1878); City of Hot Springs v. Rector, 71 Ark. 463, 76 S.W. 1056 (1903).

A peddler is one who goes from house to house exposing for sale the goods that he carries. Conway v. Waddell, 90 Ark. 127, 118 S.W. 398 (1909).

The business of operating moving picture shows is a lawful business, and it may not be suppressed or unreasonably burdened by license fees and taxes that are unreasonably high or discriminatory. Morrilton v. Malco Theatrs, Inc., 202 Ark. 100, 149 S.W.2d 55 (1941).

Power of municipal council extends only to the right to regulate reasonably, and it does not include the power to prohibit anyone from operating more than one picture show. Morrilton v. Malco Theatrs, Inc., 202 Ark. 100, 149 S.W.2d 55 (1941).

If owner of amusement machines pays to city amount specified by statute, city cannot levy an additional tax on the use of the machines, as city cannot levy a tax higher than amount specified in statute. City of Springdale v. Gage, 214 Ark. 356, 216 S.W.2d 390 (1949).

Measuring or Weighing.

Municipality could enforce ordinance providing for measuring or weighing hay, wood, or other articles for sale within its limits, unless the ordinance was unreasonable in its requirements or was enacted for raising of revenue. Taylor, Cleveland & Co. v. City of Pine Bluff, 34 Ark. 603 (1879); Wills v. City of Ft. Smith, 70 Ark. 221, 66 S.W. 922 (1902) (decisions prior to § 14-54-103 et seq.).

Nuisances.

Municipal council is not authorized to condemn any action or thing as a nuisance that in its nature, situation, or use, does not come within the legal notion of a nuisance. Ward v. Little Rock, 41 Ark. 526 (1883); Merrill v. City of Van Buren, 125 Ark. 248, 188 S.W. 537 (1916).

Whether a community shall be invaded by construction and operation of a filling station is a matter which may be regulated, even though the station, per se, is not a nuisance. Van Hovenberg v. Holeman, 201 Ark. 370, 144 S.W.2d 718 (1940).

Municipality cannot declare that to be a nuisance which is not such in fact. Wilkins v. Harrison, 218 Ark. 316, 236 S.W.2d 82 (1951); City of Springdale v. Chandler, 222 Ark. 167, 257 S.W.2d 934 (1953).

Municipality may regulate keeping of chickens, but such regulation must not be arbitrary or unjust. City of Springdale v. Chandler, 222 Ark. 167, 257 S.W.2d 934 (1953).

Municipality may regulate location of livery stables, but such regulation must not be arbitrary or unjust. City of Springdale v. Chandler, 222 Ark. 167, 257 S.W.2d 934 (1953).

Municipality has no right to declare the keeping of bees in municipal limits a nuisance. City of Springdale v. Chandler, 222 Ark. 167, 257 S.W.2d 934 (1953).

Keeping of cattle in a municipality is not a nuisance per se. City of Springdale v. Chandler, 222 Ark. 167, 257 S.W.2d 934 (1953).

The hide or fur business in a municipality is not a nuisance per se. City of Springdale v. Chandler, 222 Ark. 167, 257 S.W.2d 934 (1953).

A livery stable in a municipality is not a nuisance per se. City of Springdale v. Chandler, 222 Ark. 167, 257 S.W.2d 934 (1953).

In a case involving a rock quarry that was located entirely outside, but within one mile of, the corporate limits of a city in which a district court issued a preliminary injunction enjoining Fayetteville, Ark. Ordinance No. 5280 prior to its enforcement date, city argued that the company that operated the quarry was unlikely to succeed on the merits of its claim that the city authority to license and regulate its quarry, because the ordinance was enacted pursuant to subdivision (1) of this section. Contrary to the city's argument, since the quarry was located outside the corporate city limits but within one mile of those limits, the city could not regulate the quarry without a judicial determination that its activities constituted a nuisance, and no such judicial determination had been made; the quarry was not a nuisance per se. Rogers Group, Inc. v. City of Fayetteville, 629 F.3d 784 (8th Cir. 2010).

Public Health.

A town has the authority to legislate for the protection of public health. Phillips v. Town of Oak Grove, 333 Ark. 183, 968 S.W.2d 600 (1998).

Riots, Noise, Etc.

Ordinance requiring places of business in town to remain closed from midnight to four a.m. whose purpose was to prevent youths from driving noisily about the streets during this period was in excess of town's delegated authority relative to enactment of ordinances, since this purpose could have been accomplished by directly prohibiting the objectionable conduct. Dyess v. Williams, 247 Ark. 155, 444 S.W.2d 701 (1969).

Transportation over Streets.

Board of commissioners of an improvement district have no control over a municipal street except for the purpose of making an improvement. Pulaski Gaslight Co. v. Remmel, 97 Ark. 318, 133 S.W. 1117 (1911).

Municipalities have power to pass ordinances regulating the use of streets by trucks. House v. City of Texarkana, 225 Ark. 162, 279 S.W.2d 831 (1955).

Statutory provisions relating to motor vehicles did not repeal or supersede this section or affect the authority of municipalities to regulate the use of streets by trucks. House v. City of Texarkana, 225 Ark. 162, 279 S.W.2d 831 (1955).

Cited: City of Little Rock v. Linn, 245 Ark. 260, 432 S.W.2d 455 (1968); Ark. County v. Burris, 308 Ark. 490, 825 S.W.2d 590 (1992).

14-54-104. Additional powers of cities of the first class.

In order to better provide for the public welfare, safety, comfort, and convenience of inhabitants of cities of the first class, the following enlarged and additional powers are conferred upon these cities:

      1. To regulate the use of sidewalks, and all structures and excavations thereunder, to require the owner or occupant of any premises to keep the sidewalks in front or alongside the premises free from obstruction, to build and maintain suitable pavement or sidewalk improvements therealong whenever they may become necessary to the safety or convenience of travel, and to designate the kind of sidewalk improvement to be made, the kind of material to be used by the owner or occupant, and the time within which the improvement is required to be completed.
      2. The kind and character of sidewalk improvement for the same street and block shall be uniform.
        1. Sidewalk improvement shall be ordered, either by a general ordinance for all property owners or occupants on a certain street or within a certain quarter where the necessity of sidewalks is general to that extent, or by a resolution or order adopted by the city council and notice served upon the particular individuals owning or occupying the premises where the special necessity exists.
          1. In either case, the city shall have power to enforce obedience to the sidewalk ordinance, order, resolution, or notice upon the owners or occupants failing or refusing to obey them by the imposition of fines upon conviction thereof in the district court, in like manner and with like consequences and effect as for a violation of any other ordinance of the city.
          2. Each day that the failure or refusal is continued shall constitute a separate offense.
      1. After the owner, upon notice, has failed to repair it, in cases where the sidewalk improvement shall be constructed by an occupant who holds the premises as a tenant or lessee, he or she shall have the right to deduct the cost thereof from the rent that may be due from him or her, or to hold the possession of the premises for such time as the rental value thereof will be sufficient to reimburse him or her for the cost.
      2. Nothing contained in this subdivision shall be so construed as to prevent the city from proceeding by civil action or in any other manner provided by existing laws;
  1. To alter or change the width or extent of streets, sidewalks, alleys, avenues, parks, wharves, and other public grounds, and to vacate or lease out portions thereof, and where lands have been acquired or donated to the city for any object or purpose which has become impossible or impracticable to achieve, the lands may be used or devoted for other proper public or corporate purposes or sold by order of the city council and the proceeds applied for public or corporate purposes;
    1. To punish, prevent, or remove encroachments or obstructions upon any of the streets, sidewalks, wharves, or other public grounds of the city, whether by buildings, fences, or structures of any kind, posts, trees, or any other matter or thing whatsoever.
    2. No statute of limitations or lapse of time during which any obstruction or encroachment may have existed or been continued shall be permitted as a bar or defense against any proceeding or action to remove or abate it or to punish for its continuance after an order has been made by the city council or the district court for its removal or abatement;
    1. To prevent and punish the bringing or importation into the city of any pauper, mendicant, diseased, or other person likely to become a burden on the city or any charity therein or become a charge upon the county in which the city is situated unless such action has been authorized by some competent officer in this state in a manner provided for by law;
    2. To punish the conductor of any railroad, captain of any boat or vessel, proprietor or driver of any stage or other conveyance bringing any such person into the city unless the party providing conveyance can show that he or she had no reasonable grounds to know or become apprised of the condition or circumstances of such person;
    3. To prevent or regulate the carrying on of any trade, business, or vocation of a tendency dangerous to morals, health, or safety, or calculated to promote dishonesty or crime. To provide by ordinance for the punishment of dishonest practices of any kind, and for the prompt arrest and punishment of all dishonest characters or persons of known bad reputation, such as burglars, pickpockets, sneakthieves, forgers, fakirs, confidence men, common cheats, tricksters, and the like, who shall come into or be found within the corporate limits of the city without being able to give a good account of themselves, and to provide that, upon the trial of all such persons, evidence as to general character, reputation, associates, and places frequented shall be admissible, and in all such cases to authorize a fine of not exceeding one hundred dollars ($100); and
    4. To prevent, abate, or remove nuisances of every kind, and to declare what are nuisances, and also to punish the authors or continuers thereof by fine or imprisonment, or both. However, no previous declaration shall be necessary as to any matter, act, or thing that would have been a nuisance at common law, and all nuisances may be proceeded against either by order of the city council or prosecution in the district court.

History. Acts 1885, No. 67, § 3, p. 92; C. & M. Dig., § 7748; Pope's Dig., § 9944; A.S.A. 1947, § 19-2304; Acts 2017, No. 260, §§ 8-10; 2017, No. 926, § 1.

Amendments. The 2017 amendment by No. 260 substituted “district court” for “police court” in (1)(B)(i) (b)(1) , (3)(B), and (4)(D).

The 2017 amendment by No. 926 substituted “portions thereof” for “such portions thereof as may not for the time being be required for corporate purposes” in (2).

Cross References. Municipal streets generally, § 14-301-101 et seq.

Case Notes

In General.

An ordinance under this section must not be oppressive to a property owner. James v. City of Pine Bluff, 49 Ark. 199, 4 S.W. 760 (1887).

Cities of the first class are authorized to regulate the use of streets and sidewalks within their limits. State ex rel. Latta v. City of Marianna, 183 Ark. 927, 39 S.W.2d 301 (1931).

Nuisances.

City cannot declare that to be a nuisance which is not a nuisance per se. City of Springdale v. Chandler, 222 Ark. 167, 257 S.W.2d 934 (1953).

City has no right to declare keeping of bees in the city a nuisance. City of Springdale v. Chandler, 222 Ark. 167, 257 S.W.2d 934 (1953).

The keeping of cattle, a livery stable, or the hide and fur business in a city are not nuisances per se. City of Springdale v. Chandler, 222 Ark. 167, 257 S.W.2d 934 (1953).

City may regulate location of livery stables, but such regulation must not be arbitrary or unjust. City of Springdale v. Chandler, 222 Ark. 167, 257 S.W.2d 934 (1953).

City may regulate keeping of chickens, but such regulation must not be arbitrary or unjust. City of Springdale v. Chandler, 222 Ark. 167, 257 S.W.2d 934 (1953).

Sidewalks.

Regulation of use of sidewalks is valid delegation of police power and is not unconstitutional. James v. City of Pine Bluff, 49 Ark. 199, 4 S.W. 760 (1887).

Owner can be required only to do surface grading in building sidewalks. City of Little Rock v. Fitzgerald, 59 Ark. 494, 28 S.W. 32 (1894).

Cities may require removal of wooden awnings from above sidewalks. City of Helena v. Wooten, 98 Ark. 156, 135 S.W. 828 (1911).

Streets, Alleys, Etc.

City has no power to sell, exchange, or give away streets. Beebe v. City of Little Rock, 68 Ark. 39, 56 S.W. 791 (1900).

Title to an alley cannot be acquired by limitations. Kansas City S. Ry. v. Boles, 88 Ark. 533, 115 S.W. 375 (1908).

Where improvement district in city was organized for purpose of improving a street, the board of commissioners acquired no control over the street except for the purpose of making the improvement, and when that object was accomplished, the street became subject to the exclusive control of the city. Pulaski Gaslight Co. v. Remmel, 97 Ark. 318, 133 S.W. 1117 (1911).

City is without power to organize an improvement district in a city for the purpose of opening, establishing, and creating an alley through property when no alley has ever been opened, dedicated, or provided for. Lewis v. Rieff, 114 Ark. 366, 169 S.W. 1184 (1914).

Subdivision (2) was not repealed by § 14-301-301 et seq. providing a method for the vacation of streets and alleys. Cernauskas v. Fletcher, 211 Ark. 678, 201 S.W.2d 999 (1947); Jones v. American Home Life Ins. Co., 293 Ark. 330, 738 S.W.2d 387 (1987).

City cannot bind itself by perpetual contract or by one that lasts an unreasonable time, and any attempt on the part of the city to enter into a contract relating to the permanent establishment or abandonment of its streets would be ultra vires. Risser v. City of Little Rock, 225 Ark. 318, 281 S.W.2d 949 (1955), cert. denied, Risser v. Little Rock, 350 U.S. 965, 76 S. Ct. 433 (1956), overruled in part, Parish v. Pitts, 244 Ark. 1239, 429 S.W.2d 45 (1968).

Where only issue in prior suit to enjoin city from enforcing ordinance adopted under the authority of § 14-301-301 purporting to close certain strees was the validity of the ordinance, authority of city to adopt ordinance under this section relocating portions of the streets was not res judicata in proceedings to enjoin enforcement of second ordinance. Risser v. City of Little Rock, 225 Ark. 318, 281 S.W.2d 949 (1955), cert. denied, Risser v. Little Rock, 350 U.S. 965, 76 S. Ct. 433 (1956), overruled in part, Parish v. Pitts, 244 Ark. 1239, 429 S.W.2d 45 (1968).

When public had only an easement in city streets that were vacated when railroad constructed a terminal so that the railroad could build its tracks, train sheds, and platforms across the streets, and thereafter rail service into the city was discontinued and the terminal facilities were used for other purposes, city, by such discontinuance, acquired no right to reopen the streets except under their power of eminent domain. Kansas City S. Ry. v. City of Ft. Smith, 228 Ark. 625, 309 S.W.2d 315 (1958).

Section 14-301-301 et seq. did not repeal this section, and the failure of parties to secure the closing of an alley under the procedure set out in § 14-301-301 et seq., which required the consent of the abutting property owners, would not be res judicata of any future litigation between the same parties instigated under this section, the procedure in this section involving the closing of an alley in order to better provide for the public welfare of the inhabitants of a city. Roberts v. Pace, 230 Ark. 280, 322 S.W.2d 75 (1959).

In litigation involving closing of an alley where the procedure was instituted under § 14-301-303, which necessitated the written consent of the owners of all abutting lots, while the written consent of those owners actually abutting the two ends of the alley had been obtained, from the practical standpoint upon both ends of the alley being closed, the entire alley would become closed and therefore, all abutting property owners not having given their consent, the petitioners had to fail. Roberts v. Pace, 230 Ark. 280, 322 S.W.2d 75 (1959).

Since this section contains no provision limiting to 30 days any attack on a city ordinance, and thus ordinary statutory period for suits against enforcement of an ordinance would apply, plenary suit filed 31 days after passage of ordinance that provided for closing of a street to enjoin enforcement of the ordinance was timely filed. Stephens v. City of Springdale, 233 Ark. 865, 350 S.W.2d 182 (1961).

City does not have right to vacate and close portion of a street where there is no showing that portion to be closed is not being used by the public as a street. Brooksher v. Jones, 238 Ark. 1005, 386 S.W.2d 253 (1965).

On request of person who desired sections of streets and alley, abutting which he owned all the land, vacated to enable him to construct additional facilities, city had power to vacate the sections of streets and alley on evidence that their closing would cause but little inconvenience to persons then using them and their traffic could be readily carried by other nearby streets and alleys. City of Little Rock v. Linn, 245 Ark. 260, 432 S.W.2d 455 (1968).

Ordinance vacating an easement theretofore accepted by public use and passed without notice to the affected property owners could not deprive an abutting property owner who relied on such easement for access to and egress from his property of his right to use such easement. Flake v. Thompson, Inc., 249 Ark. 713, 460 S.W.2d 789 (1970).

Where city found that traffic on a portion of a street had declined and that closing of this portion of the street would not work a hardship on many people, and where owners of abutting property consented to closing of the street, an ordinance vacating and abandoning the street was not ultra vires. Freeze v. Jones, 260 Ark. 193, 539 S.W.2d 425 (1976).

Where nonabutting owners could not show special and peculiar injury suffered in connection with the closing of a street in which the city had only an easement, the nonabutting owners did not have standing to challenge ordinance vacating and abandoning the street. Freeze v. Jones, 260 Ark. 193, 539 S.W.2d 425 (1976).

Where street right-of-way had been dedicated by filing of a plat and the easement had been accepted by the city, the ownership of the fee in the right-of-way remained in the abutting owners, so that when the city vacated the street it could not be sold by the city nor devoted to another public use. Freeze v. Jones, 260 Ark. 193, 539 S.W.2d 425 (1976).

Where company in developing subdivision incurred great expense in reliance upon its continued access to street, and since the developer's right of ingress and egress is a property right that cannot be taken away by a city, at least without payment of just compensation, city's action in vacating street that permitted ingress and egress to the development was arbitrary and invalid. City of Sherwood v. Dupree Co., 263 Ark. 442, 565 S.W.2d 425 (1978).

Decision concerning the validity of one ordinance under § 14-301-301 et seq., regarding the closing of an alley was not res judicata with respect to the validity of second ordinance enacted pursuant to this section. Jones v. American Home Life Ins. Co., 293 Ark. 330, 738 S.W.2d 387 (1987).

Ordinance vacating a street exceeded the scope of subdivision (2) when it attempted to extinguish an abutting landowner's property right of ingress and egress over the street without compensation. Wright v. City of Monticello, 345 Ark. 420, 47 S.W.3d 851 (2001).

Trial court did not err in deciding that § 14-54-303 was controlling for the town to vacate a street, because an incorporated town's ability to vacate a street under § 14-54-303 was independent, and §§ 14-301-301 to 14-301-303 had no application when an incorporated town used its authority under § 14-54-303. Riley v. Town of Higginson, 2009 Ark. App. 294, 307 S.W.3d 34 (2009).

Trades, Businesses, or Vocations.

Ordinance requiring butchers to take out a license and requiring their meats to be inspected is a valid exercise of regulatory power. Trigg v. Dixon, 96 Ark. 199, 131 S.W. 695 (1910).

Ordinances regulating sale of milk and fresh meats are a valid exercise of police power. Carpenter v. City of Little Rock, 101 Ark. 238, 142 S.W. 162 (1911).

Sale of cider either by wholesale or retail is a proper subject of municipal regulation. City of Texarkana v. Hudgins Produce Co., 112 Ark. 17, 164 S.W. 736 (1914).

There is no limitation on power of city to prohibit, by ordinance, the maintenance of gasoline filling stations, gasoline pumps, oil tanks, service appliances, etc., on the streets of the city within the fire limits. Sander v. City of Blytheville, 164 Ark. 434, 262 S.W. 23 (1924).

Cities of the first class have regulatory powers over hotels. City of Texarkana v. Brachfield, 207 Ark. 774, 183 S.W.2d 304 (1944).

Ordinance enacted by city under public welfare clause is presumed to be legal and reasonable. Goldman & Co. v. City of N. Little Rock, 220 Ark. 792, 249 S.W.2d 961 (1952).

City has power to prohibit operation of junkyard and storing of waste paper within a fire district. Goldman & Co. v. City of N. Little Rock, 220 Ark. 792, 249 S.W.2d 961 (1952).

City has power and authority to enact an ordinance providing no license to operate a rooming house or hotel shall be granted unless it shall appear probable that applicant will not rent rooms for immoral purposes or allow prostitutes or pimps to remain on the premises or permit gambling or sale, storage, or the keeping of intoxicating liquor on the premises sought to be licensed, and such an ordinance is not unconstitutional. Hertenberger v. City of Texarkana, 224 Ark. 235, 272 S.W.2d 435 (1954).

Cited: Wynn Motel Hotel, Inc. v. City of Texarkana, 217 Ark. 314, 230 S.W.2d 649 (1950); Lacey v. Bekaert Steel Wire Corp., 619 F. Supp. 1234 (W.D. Ark. 1985).

14-54-105. Additional powers of cities of the second class.

In order to better provide for the public welfare, safety, comfort, and convenience of their inhabitants, the following enlarged and additional powers are conferred upon cities of the second class:

      1. To regulate the use of sidewalks, and all structures and excavations thereunder, to require the owner or occupant of any premises to keep the sidewalks in front or alongside the premises free from obstruction, to build and maintain suitable pavement or sidewalk improvements therealong whenever they may become necessary to the safety or convenience of travel, and to designate the kind of sidewalk improvement to be made, the kind of material to be used by the owner or occupant, and the time within which the improvement is required to be completed.
      2. The kind and character of sidewalk improvement for the same street or block shall be uniform.
        1. Sidewalk improvement shall be ordered, either by a general ordinance for all property owners or occupants on a certain street or within a certain block or quarter where the necessity of sidewalks is general to that extent, or by a resolution or order adopted by the city council and notice served upon the particular individuals owning or occupying the premises where the special necessity exists.
  1. Each day that the failure or refusal is continued shall constitute a separate offense.
    1. To punish, prevent, or remove encroachments or obstructions upon any of the streets, sidewalks, wharves, or other public grounds of the city whether by buildings, fences, or structures of any kind, posts, trees, or any other matter or thing whatsoever.
    2. No statute of limitations or lapse of time during which any obstruction or encroachment may have existed or been continued shall be permitted as a bar or defense against any proceeding or action to remove or abate it or to punish for its continuance after an order has been made by the city council for its removal or abatement;
    1. To prevent and punish the bringing or importation into the city of any pauper, mendicant, diseased, or other person likely to become a burden on the city or any charity therein or become a charge upon the county in which the city is situated unless such action has been authorized by some competent officer in this state in a manner provided for by law;
    2. To punish the conductor of any train, captain of any boat or vessel, proprietor or driver of any stage or other conveyance, bringing any such person into the city unless the party providing conveyance can show that he had no reasonable grounds to know or become appraised of the condition or circumstances of such person;
    3. To prevent or regulate the carrying on of any trade, business, or vocation of a tendency dangerous to morals, health, or safety, or calculated to promote dishonesty or crime. To provide by ordinance for the punishment of dishonest practices of any kind, and for the prompt arrest and punishment of all dishonest characters or persons of known bad reputation, such as burglars, pickpockets, sneakthieves, forgers, fakirs, confidence men, common cheats, tricksters, and the like, who shall come into or be found within the corporate limits of the city without being able to give a good account of themselves, and to provide that, upon the trial of all such persons, evidence as to general character, reputation, association, and places frequented shall be admissible, and in all such cases to authorize a fine not exceeding one hundred dollars ($100); and
    4. To prevent, abate, or remove nuisances of every kind, and to declare what are nuisances, and also to punish the authors or continuers thereof by fine or imprisonment, or both. However, no previous declaration shall be necessary as to any matter, act, or thing that would have been a nuisance at common law, and all nuisances may be proceeded against, either by order of the city council or by prosecution in the city court.

(i)( 1 ) In either case, the city shall have power to enforce obedience to the sidewalk ordinance, order, resolution, or notice upon the owners or occupants failing or refusing to obey them by the imposition of fines upon conviction in the city court, in like manner and with like consequence and effect as for a violation of any other ordinance of the city.

(ii) After the owner upon notice, has failed to repair it, in cases where the sidewalk improvement shall be constructed by an occupant who holds the premises as a tenant or lessee, he shall have the right to deduct the cost thereof from the rent that may be due from him, or to hold the possession of the premises for such time as the rental value thereof will be sufficient to reimburse him for the cost.

(iii) Nothing contained in this subdivision shall be so construed as to prevent the city from proceeding by civil action or in any other manner provided by existing laws;

(2) To alter or change the width or extension of streets, sidewalks, alleys, avenues, parks, wharves, and other public grounds, and to vacate or lease out such portions thereof as may not for the time being be required for corporation purposes, and, where lands have been acquired or donated to the city for any object or purpose which has become impossible or impracticable to achieve, the lands may be used or devoted for other proper public or corporate purposes or sold by order of the city council and the proceeds applied for public or corporate purposes;

History. Acts 1897 (Ex. Sess.), No. 24, § 1, p. 69; C. & M. Dig., § 7684; Pope's Dig., § 9813; A.S.A. 1947, § 19-2305.

A.C.R.C. Notes. Pursuant to Acts 1971, No. 153, references to “mayor's courts” in this section were changed to “city courts.”

Cross References. Municipal streets generally, § 14-301-101 et seq.

Case Notes

In General.

Prior to this section, cities of the second class were subject to statute of limitations on recovering property in adverse possession. City of Searcy v. Roberson, 256 Ark. 1081, 511 S.W.2d 627 (1974).

Nuisances.

If a business is a nuisance per se, the city may prevent it; if it is one which may become so by being improperly conducted, but which would not be so otherwise, then it may be so regulated as not to become a nuisance. Bryan v. City of Malvern, 122 Ark. 379, 183 S.W. 957 (1916).

Cities are not empowered to declare something to be a public nuisance that the state has clothed with legality, because state law is paramount and supreme. City of Piggott v. Eblen, 236 Ark. 390, 366 S.W.2d 192 (1963).

Streets, Alleys, Etc.

City is without power to organize an improvement district in a city for the purpose of opening, establishing, and creating an alley through property when no alley has ever been opened, dedicated, or provided for. Lewis v. Rieff, 114 Ark. 366, 169 S.W. 1184 (1914).

Board of public affairs was not given power to let contracts for repair of streets. Connelly v. Lawhon, 180 Ark. 964, 23 S.W.2d 990 (1930).

City that decided to abandon portion of street was authorized to make a conveyance of that portion abandoned to a property owner where grantee owned all of the land abutting portion of street vacated. Barbee v. Carpenter, 223 Ark. 660, 267 S.W.2d 768 (1954).

City had authority to close 200-foot section of a road in order to extend an airport landing strip where only five people and a few hunters used the road and the only damage to these people was the inconvenience of traveling a mile further to reach a nearby state highway. Kemp v. Simmons, 244 Ark. 1052, 428 S.W.2d 59 (1968).

Trades, Businesses, or Vocations.

Ordinance granting to a person exclusive privilege of removing deposits from unsewered privies for a fixed period and to charge a certain sum therefor, to be paid by the owner of the premises, is a valid exercise of police power, if the ordinance is reasonable in its terms and designed solely for the protection of the public health. Dreyfus v. Boone, 88 Ark. 353, 114 S.W. 718 (1908).

City may pass laws requiring inspection of plumbing, and they may charge fees to any person who follows that trade, or does any work of that character in the city, to help pay expenses of inspection. Shaw v. Conway, 179 Ark. 266, 15 S.W.2d 411 (1929).

Cities are not authorized to regulate hotels. Bragg v. Adams, 180 Ark. 582, 21 S.W.2d 950 (1929).

Cited: Conner v. Burnett, 216 Ark. 559, 226 S.W.2d 984 (1950).

14-54-106. Cities and towns on state line.

  1. All cities and towns which are located on the state line between Arkansas and any other state in which it is desired to erect a post office or other public building upon the state line or to create a park or lay out a street or boulevard upon, or adjacent to, the state line shall have power for these purposes to:
    1. Take lands by eminent domain, including the power to take the lands in fee simple as well as to take an easement across them;
    2. Take by eminent domain the title in, and to, lands occupied by streets or alleys and to close the streets and alleys and, where the lands are taken for a post office or other public building or its grounds, to sell and convey the fee simple title of it or of any part thereof to the federal government;
    3. Create improvement districts, including the whole or any part of the city or town in the manner provided by law for the creation of improvement districts in cities and towns, to aid the city or town in acquiring the lands needed for new streets and alleys where relocation of streets and alleys is made necessary or desirable by the improvements and for the purpose of paving the new streets and in relocating sewers and drains.
    1. The procedure to be followed by the city to acquire property shall be that prescribed in Arkansas Constitution, Article 2, §§ 22, 23, and Article 12, § 9, and in §§ 14-54-601, 14-91-104, 14-262-102, 14-301-104, 14-333-101, 18-15-101 et seq., 23-11-209, and 23-12-303 for the exercise of the right of eminent domain by municipal corporations and counties.
    2. The order condemning lands for these purposes shall be by ordinance of the city council, with concurrence in the order by at least two-thirds (2/3) of the members elected to the council.
    3. The decision of the city council that it is necessary to condemn lands in fee for any of these purposes shall not be subject to review except as provided in the Arkansas Constitution.

History. Acts 1931, No. 1, §§ 1-3; Pope's Dig., §§ 9521-9523; A.S.A. 1947, §§ 19-2306 — 19-2308.

14-54-107. Aid to new industries.

Cities and incorporated towns shall have full power to purchase sites for new factories or industries and to give other favorable grants and privileges for the purpose of establishing new and additional industries in or near their municipality.

History. Acts 1939, No. 68, § 6; A.S.A. 1947, § 19-2322.

Cross References. Industrial commission for aiding new industries, § 14-163-201 et seq.

14-54-108. Federal assistance.

  1. Any city or town in this state, acting pursuant to authority of the legislative body thereof, is authorized to apply for and accept assistance or gifts in the form of funds or otherwise from the federal government, or any department, agency, or authority of the federal government, and to utilize these funds for any public purpose in the discretion of the legislative body of the city or town, consistent with restrictions, if any, placed thereon by the federal government.
  2. Any city or town in this state may contract with the federal government or any federal department, agency, or authority for the purpose of accepting assistance or gifts in the form of funds, or otherwise, upon such terms and conditions as may be agreed upon, and may utilize these funds for any public purpose.

History. Acts 1971, No. 268, §§ 1, 2; A.S.A. 1947, §§ 19-2348, 19-2349.

Subchapter 2 — Interstate Agreements

14-54-201. Purpose.

It is the purpose of this subchapter to permit any municipality in this state which borders on a state line and which is separated from a municipality in the adjoining state only by the state line to cooperate with the adjoining municipality in the other state in furnishing governmental services and facilities to the inhabitants of the adjoining municipalities to the end that governmental services and facilities may be adequately provided in the most efficient manner.

History. Acts 1965, No. 7, § 1; A.S.A. 1947, § 19-2337.

14-54-202. Authority to enter.

Any municipality in this state which borders on a state line, and which is separated from a municipality in an adjoining state only by the state line, may enter into agreements with the adjoining municipality whereby either of the municipalities agrees to furnish certain services or facilities for the other or whereby the municipalities agree to furnish, jointly or cooperatively, any governmental service or facility or to exercise or enjoy any power or authority which the Arkansas municipalities involved may furnish, exercise, or enjoy under the laws of this state to the extent that the laws of the state in which the adjoining municipality is located permit such joint or cooperative activity.

History. Acts 1965, No. 7, § 2; A.S.A. 1947, § 19-2338.

14-54-203. Contents required.

  1. Every agreement or contract entered into by a municipality of this state as authorized in § 14-54-202 shall specify the following:
    1. Its duration;
    2. The precise organization, composition, and nature of any separate legal or administrative entity created thereby, together with the powers delegated thereto, provided such entity may be legally created;
    3. Its purpose;
    4. The manner of financing the joint or cooperative undertaking and of establishing and maintaining a budget therefor, or in the case of an agreement whereby one (1) municipality agrees to furnish specified services or facilities to the other municipality, the financial arrangement therefor;
    5. The permissible methods to be employed in accomplishing the partial or complete termination of the agreement and for disposing of property upon such partial or complete termination; and
    6. Any other necessary and proper matters.
  2. If the agreement does not establish a separate legal entity to conduct the joint or cooperative undertaking, the agreement shall, in addition to subdivisions (1) through (6) enumerated [sic] subsection (a) of this section, contain the following:
    1. Provision for an administrator or a joint board responsible for administering the joint or cooperative undertaking. In the case of a joint board, municipalities party to the agreement shall be represented;
    2. The manner of acquiring, holding, and disposing of real and personal property used in the joint or cooperative undertaking.

History. Acts 1965, No. 7, §§ 3, 4; A.S.A. 1947, §§ 19-2339, 19-2340.

14-54-204. Approval by Attorney General.

  1. Every agreement made under this subchapter, prior to and as a condition precedent to its entry into force, shall be submitted to the Attorney General, who shall determine whether the agreement is in proper form and compatible with the laws of this state.
  2. The Attorney General shall approve any agreement submitted to him under this subchapter unless he shall find that it does not meet the conditions set forth in this subchapter and shall detail in writing addressed to the governing bodies of the municipalities concerned the specific respects in which the proposed agreement fails to meet the requirements of law.
  3. Failure to disapprove an agreement submitted under this subchapter within twenty (20) days of its submission shall constitute approval thereof.

History. Acts 1965, No. 7, § 6; A.S.A. 1947, § 19-2342.

14-54-205. Approval of state officer or agency.

  1. If any agreement made pursuant to this subchapter shall deal, in whole or in part, with the provisions of services or facilities with regard to which an officer or agency of the state government has constitutional or statutory powers of control, the agreement shall, as a condition precedent to its entry into force, be submitted to the state officer or agency having the power of control. The agreement shall be approved or disapproved by him or it, as to all matters within his or its jurisdiction, in the same manner and subject to the same requirements governing the action of the Attorney General as provided in § 14-54-204.
  2. This requirement of submission and approval shall be in addition to, and not in substitution for, the requirement of submission to, and approval by, the Attorney General.

History. Acts 1965, No. 7, § 9; A.S.A. 1947, § 19-2345.

14-54-206. Filing requirements.

No agreement entered into pursuant to this subchapter shall be effective until a copy of it has been filed in the office of the recorder of the county in which the affected Arkansas municipality is located and in the office of the Secretary of State.

History. Acts 1965, No. 7, § 7; A.S.A. 1947, § 19-2343.

14-54-207. Satisfaction of obligations.

No agreement made pursuant to this subchapter shall relieve any public agency of any obligation or responsibility imposed upon it by law except that, to the extent of actual and timely performance thereof by an adjoining municipality pursuant to an agreement entered into under this subchapter or by a joint board or other legal or administrative entity created by an agreement made under this subchapter, the performance may be offered in satisfaction of the obligation or responsibility.

History. Acts 1965, No. 7, § 5; A.S.A. 1947, § 19-2341.

14-54-208. Liability and damages.

  1. Every agreement or contract entered into pursuant to this subchapter shall have the status of an interstate compact, but in any case or controversy involving performance or interpretation thereof or liability thereunder, the municipalities involved shall be the real parties in interest. The state may maintain an action to recoup or otherwise make itself whole for any damages or liability which it may incur by reason of being joined as a party therein.
  2. The action shall be maintainable against any municipality whose default, failure of performance, or other conduct caused or contributed to the incurring of damage or liability by the state.

History. Acts 1965, No. 7, § 8; A.S.A. 1947, § 19-2344; Acts 1993, No. 403, § 5; 1995, No. 1296, § 47.

Amendments. The 1993 amendment substituted “case or controversy” for “case of controversy” in (a).

The 1995 amendment substituted “damages or liability” for “damages of liability” in (a).

Subchapter 3 — Real and Personal Property

Cross References. Property exempt from sale by virtue of execution, § 16-66-114.

Preambles. Acts 1953, No. 13 contained a preamble which read:

“Whereas, the United States Government has in the past constructed a number of airfields in various places in Arkansas which at the close of World War II, it deeded to nearby or adjacent cities and which the United States Government now proposes to reactivate, enlarge and improve, but before making improvements on any airport, the United States Government requires the conveyance to it of that airport; Now, therefore….”

Acts 1959, No. 159 contained a preamble which read:

“Whereas, it is desirable to clarify any ambiguity now existing regarding the authority of Municipal Corporations to handle its real and personal property and to remove limitations which may have heretofore existed regarding contracts and conveyances of real estate and personal property owned or held by Municipal Corporations or the leasing and renting of municipal property;

“Now, therefore….”

Effective Dates. Acts 1935, No. 176, § 4: Mar. 21, 1935. Emergency clause provided: “That this Act being necessary for the proper administration of municipal affairs, and the public peace, health and safety, an emergency is hereby declared to exist, and this Act shall take effect and be in force from and after its passage and approval.” Approved March 21, 1935.

Acts 1953, No. 13, § 2: Jan. 29, 1953. Emergency clause provided: “It is hereby ascertained and declared that the United States Government has need to reactivate airfields which it has heretofore donated to municipalities in the State of Arkansas, and which are now needed for national defense; and this Act being necessary for the administration of municipal affairs and the preservation of public peace, health and safety, an emergency is hereby declared to exist, and this Act shall take effect and be enforced from and after its passage and approval.”

Acts 1959, No. 159, § 4: Mar. 4, 1959. Emergency clause provided: “This Act being necessary to clarify the power and authority vested in Municipal Corporations and being essential to the proper administration of municipal affairs and the public peace, health and safety, an emergency is hereby declared to exist and this Act shall take effect and be in force from and after its passage and approval.”

Acts 1977, No. 823, § 3: Mar. 28, 1977. Emergency clause provided: “It is hereby found and determined by the General Assembly that it is essential to the effective and efficient operation of municipal government that ambiguities in the present law relating to the authority of municipalities to buy, sell, lease, or otherwise deal with real and personal property be removed at the earliest possible date; that this Act is designed to accomplish this purpose and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1983, No. 183, § 5: Feb. 15, 1983. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 994 of 1981 contained some confusing language which caused difficulty in interpretation and resulted in an undue hardship; that it is necessary in the interest of clarity that Act 994 of 1981 be repealed and that the previous law relating to the subject matter covered in Act 994 be reinstated and that this Act is designed to accomplish this purpose and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1989, No. 729, § 4: Mar. 21, 1989. Emergency clause provided: “It is hereby found and determined by the General Assembly that there exists no provision in current law to permit incorporated towns to alter streets and alleys for the good of the public; that as a result of this lack of authority, unnecessary hardships have been placed on the governing bodies of incorporated towns in this state who strive to provide for the public welfare, safety, comfort and convenience. Therefore, an emergency is hereby declared to exist and this act being necessary for the preservation of the public peace, health and safety shall be in full force and effect on and after its passage and approval.”

Research References

Am. Jur. 56 Am. Jur. 2d, Mun. Corp., § 532 et seq.

C.J.S. 63 C.J.S., Mun. Corp., § 950 et seq.

14-54-301. Ownership authorized.

Municipal corporations are authorized and empowered to acquire and hold real estate, tenements, hereditaments, and such other real and personal property as is necessary and proper for the administration of the affairs of municipal corporations.

History. Acts 1935, No. 176, § 1; Pope's Dig., § 9538; A.S.A. 1947, § 19-2309.

14-54-302. Purchase, lease, sale, and disposal authorized.

  1. A municipality may:
    1. Sell, convey, lease, rent, let, or dispose of any real estate or personal property owned or controlled by the municipality, including real estate or personal property that is held by the municipality for public or governmental purposes;
    2. Buy any real estate or personal property; and
      1. Donate real estate or personal property, or any part of the real estate or personal property, to the United States Government or any agency of the United States Government, for any one (1) or more of the following purposes, that is, having the real estate or personal property, or both, activated, reactivated, improved, or enlarged by the donee.
      2. The municipality may donate the fee simple title and absolute interest, without any reservations or restrictions, in and to all real estate or personal property, or both, or any part of the real estate or personal property, to the United States Government, if this real estate or personal property was previously conveyed or otherwise transferred by the United States Government to the municipality without cost to the municipality.
      3. All other donation instruments shall contain provisions by which the title to the property donated shall revert to the municipality when the donated property is no longer used by the donee for the purposes for which it was donated.
  2. The execution of all contracts and conveyances and lease contracts shall be performed by the mayor and city clerk or recorder, when authorized by a resolution in writing and approved by a majority vote of the governing body of the municipality present and participating.
  3. The mayor or his or her authorized representative may sell or exchange any municipal personal property with a value of twenty thousand dollars ($20,000) or less, unless the governing body of the municipality shall by ordinance establish a lesser amount.
  4. Municipal personal property to be disposed of as one (1) unit shall not be sold without competitive bidding if the amount exceeds twenty thousand dollars ($20,000) or the maximum provided by resolution, unless the mayor certifies in writing to the governing body of the municipality that in his or her opinion the fair market value of the item or lot is less than the amount established by ordinance.
    1. If personal property of the municipality becomes obsolete or is no longer used by a municipality, the personal property may be:
      1. Sold at public or internet auction;
      2. Sent to the Marketing and Redistribution Section of the Office of State Procurement;
      3. Transferred to another governmental entity within the state; or
      4. Donated under this section.
    2. If an item of personal property is not disposed of under subdivision (e)(1) of this section, the item may be disposed of in the landfill used by the municipality if the mayor or his or her authorized representative certifies in writing and the governing body of the municipality approves that:
      1. The item has been rendered worthless by damage or prolonged use; or
      2. The item has:
        1. Only residual value; and
        2. Been through public auction and not sold.
    1. A record shall be maintained of all items of personal property disposed of under this section and reported to the governing body of the municipality.
    2. The municipal fixed asset listing shall be amended to reflect all disposal of real estate and personal property made under this section.

History. Acts 1935, No. 176, § 2; Pope's Dig., § 9539; Acts 1953, No. 13, § 1; 1959, No. 159, § 1; 1977, No. 823, § 1; 1983, No. 183, § 2; A.S.A. 1947, § 19-2310; Acts 2005, No. 436, § 1; 2017, No. 470, § 1; 2019, No. 575, § 1.

Publisher's Notes. This section was amended by Acts 1983, No. 183, § 2, which has been codified above; however, § 4 of the same act repealed, in addition to other provisions, Acts 1935, No. 176, § 2, the same being § 14-54-302 (this section).

As to contracts, leases, or other arrangements under Acts 1981, No. 994 declared binding, see Acts 1983, No. 183, § 3.

Amendments. The 2005 amendment redesignated former (a) as present (a)(1) and added (a)(2).

The 2017 amendment substituted “sale, and disposal” for “and sale” in the section heading; rewrote former (a) and (b) as present (a) and redesignated former (c) as present (b); substituted “municipality” for “municipal corporation” in (b); and added (c) through (f).

The 2019 amendment deleted “real estate or” preceding “personal property” in (c) and (d).

Cross References. Disposition of public use property, § 22-4-501 et seq.

Lease of county lands to municipality, § 14-16-109.

Sale or lease of county hospital to municipality, § 14-16-108.

RESEARCH REFERENCES

U. Ark. Little Rock. L. Rev.

Survey of Legislation, 2005 Arkansas General Assembly, Local Government, 28 U. Ark. Little Rock. L. Rev. 373.

Case Notes

Contracts Not Formally Authorized.

Arkansas city having notice of its agent's transactions could not accept and enjoy the benefits under a contract for construction of airport facilities adjacent to city and then be permitted to contest the validity of the contract executed in its name by its agent on the ground that the contract was not formally authorized. L.C. Eddy, Inc. v. City of Arkadelphia, 303 F.2d 473 (8th Cir. 1962) (decision under prior law).

Failure to have agreement for lease of space on county property for street purposes authorized by a written resolution of the city council was not a fatal defect where city ratified agreement by performing obligations thereunder. Harrison v. Boone County, 238 Ark. 113, 378 S.W.2d 665 (1964) (decision under prior law).

Where, in an action brought by contractors against a city alleging a breach of contract to construct a sewer line, a failure by the city to collect charges from those individuals and businesses tying on to that sewer line, and a failure to remit those charges to the contractors for 15 years, there was substantial evidence supporting the jury finding that the asserted contract existed between the parties, so that the contractors' recovery on theory of unjust enrichment or quantum meruit was not barred even though the contract had not been formally authorized or approved by the city council as required. McCuistion v. City of Siloam Springs, 268 Ark. 148, 594 S.W.2d 233 (1980) (decision under prior law).

Actions of the city constituted ratification of union contract, negotiated by board of commissioners, where an employee of the municipal utilities continued to work for the city several months after the chancery court had ruled the utilities were under the control of the board of directors, and where the union contract was being utilized and the city paid the employee sick leave benefits in keeping with the provisions of the union contract pursuant to the supplemental letter stating nonunion employees would receive the contract benefits on the same terms as the union members. City of Benton v. Powers, 269 Ark. 853, 601 S.W.2d 260 (Ct. App. 1980) (decision under prior law).

Absence of a city council's resolution was fatal to the validity and viability of an alleged Memorandum of Understanding between a mayor and the owner of a stagecoach who sought to sell the stagecoach to the city. Dotson v. City of Lowell, 375 Ark. 89, 289 S.W.3d 55 (2008).

In property owners' suit against a city, alleging the city failed to comply with the terms and conditions of an agreement between the parties for the location of a storm drainage easement upon the owners' property, the trial court erred in denying the city's motion for a directed verdict because there was no evidence the city engineer had the authority to bind the city to a contract, pursuant to subdivision (a)(2) and subsection (c) of this section, to acquire an interest in the owners' property and obligate the city to perform drainage construction on the property. City of Bryant v. Collins, 2011 Ark. App. 713, 386 S.W.3d 699 (2011).

14-54-303. Authority of incorporated towns.

In order to better provide for the public welfare, safety, comfort, and convenience of their inhabitants, incorporated towns may alter or change the width or extension of streets, sidewalks, alleys, avenues, parks, wharves, and other public grounds, and vacate or lease out such portions thereof as may not for the time being be required for corporation purposes, and, where lands have been acquired or donated to the town for any object or purpose which has become impossible or impracticable to achieve, the lands may be used or devoted for other proper public or corporate purposes or sold by order of the town council and the proceeds applied for public or corporate purposes.

History. Acts 1989, No. 729, § 1.

Case Notes

Proper Authority.

Trial court did not err in deciding that this section was controlling for the town to vacate a street, because an incorporated town's ability to vacate a street under this section was independent, and §§ 14-301-301 to 14-301-303 had no application when an incorporated town used its authority under this section. Riley v. Town of Higginson, 2009 Ark. App. 294, 307 S.W.3d 34 (2009).

14-54-304. Property exchange by municipalities.

  1. Municipalities may exchange properties, real or personal, with the state and any political subdivision of the state.
  2. An exchange under this section shall be approved by ordinance of the governing body of the municipality and shall be accomplished in accordance with procedures prescribed by the governing body.

History. Acts 1999, No. 1248, § 2; 2019, No. 575, § 2.

Amendments. The 2019 amendment added the (a) and (b) designations; in (a), substituted “Municipalities may exchange” for “Municipalities are authorized to exchange” and substituted “with the state and any political subdivision of the state” for “with other municipalities or with counties. Provided, any such”; and substituted “An exchange under this section shall be approved” for “exchange shall be approved” in (b).

Subchapter 4 — Public Property for Processing Crude Biogenic Gases

Publisher's Notes. Acts 1983, No. 478, is also codified as § 14-16-301 et seq.

14-54-401. Authority to lease, etc.

Each city of the first or second class and incorporated town shall have the authority to lease, let, sell, or convey any real property owned or controlled by the city or town for the production, reclamation, and refining of crude biogenic gases pursuant to competitive sealed bidding procedures under this subchapter.

History. Acts 1983, No. 478, § 1; A.S.A. 1947, § 19-2356.

14-54-402. Bidding process.

    1. The mayor, city manager, or city administrator shall publish a notice inviting sealed bids for the leasing, letting, selling, or conveying of real property for the production, reclamation, and refining of crude biogenic gases. This notice shall be published in a legal newspaper in the county where the property is located one (1) time each week for the four (4) weeks immediately prior to the date set for receiving bids.
    2. No bid shall be received, accepted, or considered when received after the date set for the receipt of bids.
    1. Within thirty (30) days after the date set for the receipt of bids, the bids shall be opened and read at a public meeting of the city council, board of directors, commissioners, or managers.
      1. At the meeting, the city council, board of directors, commissioners, or managers shall select and award the lease to the property or award the property to the highest, responsible, and best bidder.
      2. The city council, board of directors, commissioners, or managers may reject all bids and begin the bidding process anew.

History. Acts 1983, No. 478, § 2; A.S.A. 1947, § 19-2357.

14-54-403. Implementing legislation.

Each city of the first or second class and incorporated town may provide by ordinance for the implementation of, but not contrary to, this subchapter.

History. Acts 1983, No. 478, § 3; A.S.A. 1947, § 19-2358.

14-54-404. Authority to issue bonds.

This subchapter shall not limit the authority of any city of the first or second class or incorporated town to lease, let, sell, or convey any real property pursuant to the Constitution and laws of Arkansas concerning the issuance of bonds for the purpose of industrial development and other lawful purposes.

History. Acts 1983, No. 478, § 4; A.S.A. 1947, § 19-2359.

Subchapter 5 — Areas Adjacent to Shopping Centers

Publisher's Notes. Acts 1973, No. 472, as amended, is also codified as § 14-16-401 et seq.

Effective Dates. Acts 1977, No. 796, § 3: Mar. 28, 1977. Emergency clause provided: “The General Assembly of the State of Arkansas hereby finds that the matters affected by this Act have a direct relation to the administration of justice and the preservation of public order and safety in the areas affected. Therefore, an emergency is hereby found and declared to exist, and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after the date of its passage and approval.”

14-54-501. Authority to control use.

The governing bodies of the municipalities of this state are delegated the power and authority to enact ordinances to limit and control the use of areas adjacent to shopping centers and other commercial enterprises which are privately owned, but which are maintained for the convenience of the public, so as to provide ingress and egress, loading and unloading areas, fire lanes, parking spaces, parking areas designated for the exclusive use of disabled persons, and other measures for the safety and convenience of the public.

History. Acts 1973, No. 472, § 1; 1985, No. 527, § 1; A.S.A. 1947, § 19-2350.

14-54-502. Plat of area.

  1. No ordinance shall be passed unless and until the owner or lessee of an area sought to be regulated has presented to the governing body of the city a plat of the area upon which is shown the proposed limitations and controls.
  2. The plat shall in no way limit the power and authority of the governing body of the municipality but shall be advisory only.

History. Acts 1973, No. 472, § 2; A.S.A. 1947, § 19-2351.

14-54-503. Posting of signs, etc. — Penalty.

  1. When an ordinance has been passed, the owner or lessee of the area to be controlled shall, at his expense, post the signs, paint the lines, arrows, and curbings in the required colors, and install the devices and signals to apprise the public of the existence of the ordinance.
  2. Thereafter, persons who violate these ordinances shall be punished as provided in the ordinances. However, no fine shall be less than five dollars ($5.00) nor more than fifty dollars ($50.00).

History. Acts 1973, No. 472, § 3; A.S.A. 1947, § 19-2352.

14-54-504. Policing of area.

  1. No municipality shall be required to patrol the area which is controlled as provided in this subchapter, but, upon being called, law enforcement officers shall come to the scene of the alleged violation and, where warranted by law or ordinance, issue citations or make arrests.
  2. This section is cumulative to other laws on this subject and specifically does not repeal § 16-81-108.

History. Acts 1973, No. 472, § 4; 1977, No. 796, §§ 1, 2; A.S.A. 1947, §§ 19-2353, 19-2353.1.

14-54-505. Tort liability unchanged.

Nothing in this subchapter shall limit or extend the law of this state with reference to tort liability of any person, firm, or corporation.

History. Acts 1973, No. 472, § 5; A.S.A. 1947, § 19-2354.

Subchapter 6 — Public Improvements

Cross References. Creation of improvement districts for making municipal improvements, § 14-88-201.

Effective Dates. Acts 1875, No. 1, § 95: effective on passage.

Research References

Am. Jur. 56 Am. Jur. 2d, Mun. Corp., § 560 et seq.

C.J.S. 63 C.J.S., Mun. Corp., § 1035 et seq.

Case Notes

Illegal Contracts.

A city which obtains physical improvements pursuant to an illegal contract may be held liable for the value of the improvements. City of Damascus v. Bivens, 291 Ark. 600, 726 S.W.2d 677 (1987).

14-54-601. Authority generally.

Municipal corporations shall have power to:

  1. In regard to streets, alleys, public grounds, wharves, landing places, and marketplaces, lay off, open, widen, straighten, and establish them; improve and keep them in order and repair; and light;
  2. Open, construct, keep in order, and repair sewers and drains; and
  3. Enter upon, or take, for such of the above purposes as may be required, land or material, and to assess and collect a charge on the owners of lots or lands, or on lots or lands through or by which a street, alley, or public highway shall pass, for the purpose of defraying the expenses of constructing, improving, repairing, or lighting the street, alley, or public highway, to be in proportion to the value of the lot or land as assessed for taxation under the general law of the state.

History. Acts 1875, No. 1, § 18, p. 1; C. & M. Dig., §§ 4006, 7568; Pope's Dig., §§ 5008, 9642; A.S.A. 1947, § 19-2313.

Case Notes

In General.

Former statute was held not mandatory. City of Little Rock v. Willis, 27 Ark. 572 (1872) (decision under prior law).

For the exercise of a lawful power that by law was vested in the judgement and discretion of a municipal corporation, no injury for which an action would lie could have been committed; however, for the imperfect, negligent, unskillful execution of a thing ordained to be done, an action would lie, in the absence of an express statute. City of Little Rock v. Willis, 27 Ark. 572 (1872) (decision under prior law).

Enter Upon, or Take.

A city has the right to condemn streets across a railroad. Saint Louis & S.F.R.R. v. City of Fayetteville, 75 Ark. 534, 87 S.W. 1174 (1905).

Where municipal corporation possesses right to take property by eminent domain and does take property that might have been condemned by the exercise of that power, remedy of landowner is to sue for damages at law and is not to seek mandatory process to compel withdrawal. Dobbs v. Town of Gillett, 119 Ark. 398, 177 S.W. 1141 (1915).

Municipal corporation may condemn land for drains and sewers. Young v. Gurdon, 169 Ark. 399, 275 S.W. 890 (1925).

This section does not give a municipal corporation the power of eminent domain outside the municipality for the purpose of acquiring a right of way for electric transmission lines. City of Osceola v. Whistle, 241 Ark. 604, 410 S.W.2d 393 (1966).

Sewers and Drains.

Individual may file suit against municipal corporation for damages from discharge of sewage into his running streams. McLaughlin v. City of Hope, 107 Ark. 442, 155 S.W. 910 (1913).

Streets, Alleys, Etc.

—In General.

“Streets” includes road, gutters, and sidewalk. Eickhoff v. City of Argenta, 120 Ark. 212, 179 S.W. 367 (1915)Limited byHot Spring County v. Bowman, 229 Ark. 790, 318 S.W.2d 603 (1958); Willis v. City of Ft. Smith, 121 Ark. 606, 182 S.W. 275 (1916).

—Authority.

Individual who purchases land subsequent to closing of street by consent of municipal council cannot compel opening of street without proving special injuries. Ruffner v. Phelps, 65 Ark. 410, 46 S.W. 728 (1898).

Municipal corporation was held not authorized to vacate streets. City of Texarkana v. Leach, 66 Ark. 40, 48 S.W. 807 (1898).

Authority to exchange streets for other property is not vested in the mayor and council of a municipality. Beebe v. City of Little Rock, 68 Ark. 39, 56 S.W. 791 (1900).

Where improvement district in a municipality was organized for the purpose of improving a street, the board of commissioners acquired no control over the street except for the purpose of making the improvement, and when the object was accomplished, the street became subject to the exclusive control of the municipality. Pulaski Gaslight Co. v. Remmel, 97 Ark. 318, 133 S.W. 1117 (1911).

The state, in its sovereignty over all public highways, has full power over streets as well as over public roads and, unless prohibited by the Arkansas Constitution, the legislature may confer, as it shall deem best, the power of supervision and control of streets. Sanderson v. City of Texarkana, 103 Ark. 529, 146 S.W. 105 (1912).

Municipal corporation is without power to organize an improvement district in municipality for the purpose of opening, establishing, and creating an alley through property when no alley has ever been opened, dedicated, or provided for. Lewis v. Rieff, 114 Ark. 366, 169 S.W. 1184 (1914).

Neither the mayor nor street committee of a municipal council had authority to contract for the improvement of city streets; rather, the municipal council alone can contract for these improvements. Venable v. Town of Plummerville, 130 Ark. 477, 198 S.W. 106 (1917).

The legislature, in granting to municipal corporations the exclusive power to open streets and alleys, did not lose its authority to withdraw such power and vest it in another agency. Bulloch v. Dermott-Collins Rd. Imp. Dist., 155 Ark. 176, 244 S.W. 327 (1922), rev'd, 265 U.S. 570, 44 S. Ct. 457 (1924).

Municipal council has no power to permit permanent operation and maintenance of a filling station in the street, and such license, if granted, would confer no vested right or irrevocable right to operate the filling station. Sander v. City of Blytheville, 164 Ark. 434, 262 S.W. 23 (1924).

Municipal council had authority to make contracts for furnishing the municipality with patching material and labor to do repair work. Connelly v. Lawhon, 180 Ark. 964, 23 S.W.2d 990 (1930).

Municipal corporation is authorized to build crossing over railroad tracks. St. Louis-San Francisco Ry. v. Smith, 182 Ark. 299, 31 S.W.2d 407 (1930).

Municipal corporation has the power and duty to make reasonable provision for safety of persons and property using its streets by the enactment of ordinances, resolutions, or bylaws looking to that end, and municipal authorities have a wide discretion on these matters. City of Ft. Smith v. Van Zandt, 197 Ark. 91, 122 S.W.2d 187 (1938).

Resolution authorizing construction of dividing curb along center of boulevard, making it a four lane highway and permitting crossings only at street intersections, was held not arbitrary, unreasonable, or discriminatory against owner of tourist camp in center of a long block, whose prospective customers would be prevented from turning to the left into his property, but would have to drive to the next intersection and return. City of Ft. Smith v. Van Zandt, 197 Ark. 91, 122 S.W.2d 187 (1938).

Municipality did not abuse its discretion in enacting ordinance for establishing of parking meters in front of business even though business was deprived of suitable loading and unloading space. City of Marianna v. Gray, 220 Ark. 468, 248 S.W.2d 379 (1952).

Municipal corporation cannot bind itself by perpetual contract or by one that lasts an unreasonable time, and any attempt on the part of a municipality to enter into a contract relating to the permanent establishment or abandonment of its streets would be ultra vires. Risser v. City of Little Rock, 225 Ark. 318, 281 S.W.2d 949 (1955), cert. denied, Risser v. Little Rock, 350 U.S. 965, 76 S. Ct. 433 (1956), overruled in part, Parish v. Pitts, 244 Ark. 1239, 429 S.W.2d 45 (1968).

Municipality had authority to close 200-foot section of road in order to extend airport landing strip and open and improve new road along side of airport to give residents on closed section of old road access to state highway where only five people and a few hunters used the section closed and the only damage to these people was the inconvenience of traveling a mile further to reach the state highway. Kemp v. Simmons, 244 Ark. 1052, 428 S.W.2d 59 (1968).

—Liabilities.

Municipal corporations have authority to lay out, open, grade, and keep in good repair the streets of a municipality and a suit would not lie at the instance of an individual for damages resulting from injuries to private property from the lawful exercise of this authority where there has been no negligence, or want of care or skill in its exercise. Simmons v. Camden, 26 Ark. 276 (1870) (decisions under prior law).

Municipal corporation is not liable for damages sustained by a party injured through defects in streets of the municipality. City of Arkadelphia v. Windham, 49 Ark. 139, 4 S.W. 450 (1887); City of Ft. Smith v. York, 52 Ark. 84, 12 S.W. 157 (1889); Birchfield v. Diehl, 126 Ark. 115, 189 S.W. 845 (1916).

Value.

When lots are assessed for street improvement, the assessment shall be ad valorem, and not according to frontage, and upon both vacant and occupied lots similarly situated. Town of Monticello v. Banks, 48 Ark. 251, 2 S.W. 852 (1886).

Cited: City of Little Rock v. Linn, 245 Ark. 260, 432 S.W.2d 455 (1968).

14-54-602. Drainage of property.

Municipal corporations shall have power to cause any lot of land within their limits to be raised up or drained on which or on part of which water shall at any time become stagnant, and to cause all putrid substance, whether animal or vegetable, to be removed from any lot or lots.

History. Acts 1875, No. 1, § 20, p. 1; C. & M. Dig., § 7535; Pope's Dig., § 9610; A.S.A. 1947, § 19-2315.

14-54-603. Assessment of property.

  1. Each municipal corporation may prescribe, either by general or special bylaws or ordinance, the mode in which the charge on the respective owners of lots or lands and on the lots or lands shall be assessed and determined for the purpose authorized by the provisions of this subchapter.
  2. A charge, when assessed, shall be payable by the owners at the time of the assessment, personally, and shall also be a lien on the respective lots or parcels of land in the possession of any owner from the time of assessment.

History. Acts 1875, No. 1, § 19, p. 1; C. & M. Dig., § 7569; Pope's Dig., § 9645; A.S.A. 1947, § 19-2314.

Cross References. Correction of assessments by county court, § 26-73-205.

14-54-604. Collection of liens.

  1. The amount of the lien provided for in §§ 14-54-601 — 14-54-603 may be determined by action against the owner of any lot.
  2. The amount ascertained, with cost of suit and five percent (5%) penalty for collection, shall be certified by the mayor to the clerk of the county, and placed by him on the taxbook as delinquent taxes, and collected accordingly.
  3. The amount, when so collected, shall be paid to the city by the county collector.

History. Acts 1875, No. 1, § 21, p. 1; C. & M. Dig., § 7536; Pope's Dig., § 9611; A.S.A. 1947, § 19-2316.

Cross References. Collection of delinquent assessment for opening or improving street or alley, § 14-301-104.

Subchapter 7 — Public Utilities

Cross References. Municipal boards and commissions, § 14-201-301 et seq.

Public utilities generally, § 14-199-101.

Effective Dates. Acts 1875, No. 1, § 95: effective on passage.

Acts 1901, No. 186, § 2: effective on passage.

Acts 1903, No. 88, § 2: became law without Governor's signature, Mar. 20, 1903.

Acts 1909, No. 230, § 2: effective on passage.

Acts 1915, No. 163, § 2: approved Mar. 19, 1915. Emergency declared.

Acts 1923, No. 101, § 2: approved Feb. 10, 1923. Emergency clause provided: “This act being necessary for the immediate preservation of the public peace, health and safety it should take effect and be in force from and after its passage.”

Acts 1933, No. 101, § 3: effective 90 days after passage.

Research References

Am. Jur. 56 Am. Jur. 2d, Mun. Corp., § 560 et seq.

C.J.S. 62 C.J.S., Mun. Corp., § 292.

63 C.J.S., Mun. Corp., § 1050 et seq.

14-54-701. Authority generally.

    1. Municipal corporations shall have power to provide for, or construct, or acquire works for lighting the streets, alleys, parks, and other public places by gas, electricity, or otherwise; to furnish power to consumers; or to purchase power, gas, or electricity for these purposes from any individual, company, or corporation manufacturing it.
    2. In connection therewith, they may furnish lights and power to private consumers upon just compensation therefor and authorize construction of gas or electric works and street railroads.
    1. Improvement districts created within municipal corporations, or that embrace or include territory therein, which are organized for the purpose of manufacturing, distributing, and selling either gas or electricity shall have the same right granted to municipal corporations to purchase power, gas, or electricity from any individual, company, or corporation manufacturing or distributing it for use in any of their plants or for resale or distribution to their customers or patrons.
    2. The exercise of this right shall not be construed in any way to impair or affect the validity of any bond issue or any other indebtedness of an improvement district.

History. Acts 1875, No. 1, § 14, p. 1; 1901, No. 186, § 1, p. 341; 1909, No. 230, § 1, p. 695; C. & M. Dig., § 7565; Acts 1923, No. 101, § 1; Pope's Dig., § 9639; A.S.A. 1947, § 19-2318.

Cross References. Municipal authority over utilities, § 14-200-101 et seq.

Case Notes

In General.

Power to construct water and light systems for domestic purposes may be conferred by legislature on municipalities. Bank of Commerce v. Huddleston, 172 Ark. 999, 291 S.W. 422 (1927).

Appeals.

Where, in an eminent domain proceeding to procure an easement across property, chancellor held that the municipality had authority to enter and take private property for the lawful purpose of furnishing light and power to consumers in connection with operation of municipal corporation, the chancellor's order was not appealable because it was not a final judgment in that it did not determine right of landowners to just compensation. Hyatt v. City of Bentonville, 275 Ark. 210, 628 S.W.2d 326 (1982).

Bonds.

That municipally owned electric light plant had been leased and generating machinery was not in use, current being supplied to the distributing system from outside sources, was held immaterial in determining whether municipality was entitled to issue bonds for construction of ornamental standards and electric lighting equipment to provide modern “white way” illumination for designated streets. Todd v. McCloy, 196 Ark. 832, 120 S.W.2d 160 (1938).

Contracts.

Municipal council has authority to pass an ordinance providing for lighting the streets, parks and other public places in the city, and when the ordinance is properly passed and accepted by the contractor, it becomes a contract and is governed by the same rules and principles that control other contracts. City of Mena v. Tomlinson Bros., 118 Ark. 166, 175 S.W. 1187 (1915).

Liability.

In the grant of a franchise to a street railway company, municipal corporation has power to reserve the right to pass ordinances for the protecting of the person and property of individuals and creating a liability against the company in their favor for a violation of the ordinance, but when no such reservation was made in the grant of the franchise, the violation of an ordinance subsequently passed could not become the basis of a liability for personal injuries. Bain v. Ft. Smith Light & Traction Co., 116 Ark. 125, 172 S.W. 843 (1915).

Rates.

Legislature intended to include in this section authority to agree upon rates to be charged during life of a lighting franchise. Town of Pocahontas v. Central Power & Light Co., 152 Ark. 276, 244 S.W. 712, dismissed, 260 U.S. 755, 43 S. Ct. 94, 67 L. Ed. 498 (1922).

Cited: City of N. Little Rock v. Gorman, 264 Ark. 150, 568 S.W.2d 481 (1978); Cosgrove v. City of W. Memphis, 327 Ark. 324, 938 S.W.2d 827 (1997).

14-54-702. Construction or acquisition of waterworks.

  1. Municipal corporations shall have power to:
    1. Provide a supply of water by constructing or acquiring, by purchase or otherwise, wells, pumps, cisterns, reservoirs, or other waterworks and to regulate them;
    2. Prevent unnecessary waste of water; and
    3. Prevent pollution of water or injury to waterworks.
  2. For the purpose of establishing and supplying waterworks, any municipal corporation may go beyond its territorial limits. Its jurisdiction to prevent or punish any pollution or injury to the stream or source of water, or to the waterworks, shall extend five (5) miles beyond the corporate limits.

History. Acts 1875, No. 1, § 14, p. 1; 1903, No. 88, § 1, p. 152; C. & M. Dig., § 7564; Pope's Dig., § 9638; A.S.A. 1947, § 19-2317.

Cross References. Waterworks and water supply, § 14-234-101 et seq.

Case Notes

Constitutionality.

This section conferring authority on municipalities to establish waterworks is a valid exercise of legislative power. Bank of Commerce v. Huddleston, 172 Ark. 999, 291 S.W. 422 (1927).

In General.

Municipal corporations are authorized to construct or acquire waterworks. Hope v. Dodson, 166 Ark. 236, 266 S.W. 68 (1924).

Municipal corporation is authorized to purchase a water supply for distribution to its inhabitants from another municipality or any other source. McGehee v. Williams, 191 Ark. 643, 87 S.W.2d 46 (1935).

Financing.

Municipal corporations may borrow money to pay expense of moving the pumping station of their water plant. Forrest City v. Bank of Forrest City, 116 Ark. 377, 172 S.W. 1148 (1915).

Rates.

Ordinance providing that if the water company should become dissatisfied with its flat rate it could, after installing a meter at its expense, require consumer to pay at meter rates is valid. Wilson Water & Elec. Co. v. City of Arkadelphia, 95 Ark. 605, 129 S.W. 1091 (1910).

Repairs.

Repairs are not restricted to reconstruction in identical form in which waterworks were originally constructed. Arkansas Light & Power Co. v. City of Paragould, 146 Ark. 1, 225 S.W. 435 (1920).

Cited: Cosgrove v. City of W. Memphis, 327 Ark. 324, 938 S.W.2d 827 (1997); Davis v. City of Blytheville, 2015 Ark. 482, 478 S.W.3d 214 (2015).

14-54-703. Municipal ice plants.

  1. Cities of the first and second class shall have the authority, in addition to the powers now granted by law, to construct, maintain, and operate municipal ice plants.
    1. Funds may be used for the construction, maintenance, and operation of ice plants derived from the operation of any other public utility owned or operated by the city.
    2. This subsection shall not apply to public utilities constructed, owned, or operated by an improvement district.

History. Acts 1933, No. 101, §§ 1, 2; Pope's Dig., §§ 9974, 9975; A.S.A. 1947, §§ 19-2320, 19-2321.

14-54-704. Contracts for utility services.

  1. For the purpose of providing water, gas, electric lights, heat, power, cold storage, street railroads, emergency medical services, and other public utility necessities for itself and for the inhabitants of any municipality, the mayor and city council, or the other governing bodies of municipalities having a commission, administrator, or city manager form of government, may contract on its own behalf, and on behalf of the inhabitants of the municipality, with any person or company to construct and operate the utility and may grant to the person or company, whether municipally owned and operated or otherwise, for a time which may be agreed on, for the privilege, exclusive or otherwise, of using the streets, alleys, and public grounds of the municipality for such purposes, on such rates, charges, and terms as may be agreed upon.
  2. The mayor and council or other governing body may authorize the person or company to assign the contract or privileges and to transfer the utility to any other person, or company having authority to conduct any such business in the municipality, with full authority to assignee or transferee to enjoy and use them, in like manner and to the same extent, as the assignor could have done.

History. Acts 1875, No. 1, § 14, p. 1; 1915, No. 163, § 1, p. 692; C. & M. Dig., § 7492; Acts 1929, No. 122, § 1; 1929, No. 291, § 1; Pope's Dig., §§ 9535, 9537; Acts 1981 (Ex. Sess.), No. 23, § 9; A.S.A. 1947, § 19-2319.

Publisher's Notes. Acts 1985, No. 1001, § 8, provided that nothing in the act repealed, by implication or otherwise, Acts 1981 (Ex. Sess.), No. 23, part of which is codified in this section.

The former last part of subsection (b) of this section provided that all assignments and transfers that had been made were ratified and approved.

Cross References. Rate-making authority of Arkansas Public Service Commission, § 23-4-201.

Case Notes

Authority.

Municipal corporation is empowered to contract with any person or corporation to construct and operate waterworks. Lackey v. Fayetteville Water Co., 80 Ark. 108, 96 S.W. 622 (1906).

Franchise granted to a corporation to furnish gas for heat, light, and power becomes, when accepted, a binding contract to be governed by the same rules and principles that control other contracts. Natural Gas & Fuel Corp. v. Norphlet Gas & Water Co., 173 Ark. 174, 294 S.W. 52 (1927).

Privilege, Exclusive or Otherwise.

Municipal council may grant an exclusive privilege or not, as in their judgment seems best. City of El Dorado v. Coats, 175 Ark. 289, 299 S.W. 355 (1927).

Electric power company that occupied some territory of a town prior to its incorporation did not prevent the town from granting to another company an exclusive privilege to use the streets of the town for furnishing electricity. Arkansas Power & Light Co. v. West Memphis Power & Water Co., 187 Ark. 41, 58 S.W.2d 206 (1933).

Rates.

Injunction would not be granted to protect contract rates when contract for change in rates was disapproved and rendered inoperative by referendum. Texarkana v. Southern Cities Distributing Co., 64 F.2d 944 (8th Cir. 1933) (decision prior to § 23-4-201).

Cited: City of Ft. Smith v. Arkansas Pub. Serv. Comm'n, 278 Ark. 521, 648 S.W.2d 40 (1983); L & H Sanitation, Inc. v. Lake City Sanitation, Inc., 769 F.2d 517 (8th Cir. 1985).

Subchapter 8 — Public Health

Effective Dates. Acts 1875, No. 1, § 95: effective on passage.

Acts 1901, No. 70, § 2: effective on passage.

Acts 1901, No. 102, § 2: effective on passage.

Acts 1929, No. 202, § 2: effective on passage.

Research References

ALR.

Regulation of private landowner's disposal of solid waste on own property. 37 A.L.R.4th 635.

Am. Jur. 56 Am. Jur. 2d, Mun. Corp., § 439.

C.J.S. 62 C.J.S., Mun. Corp., §§ 133, 265, 270.

14-54-801. [Repealed.]

Publisher's Notes. This section, concerning nurses' training schools, was repealed by Acts 2013, No. 1150, § 2. The section was derived from Acts 1901, No. 70, § 1, p. 118; C. & M. Dig., § 7752; Pope's Dig., § 10051; A.S.A. 1947, § 19-2334.

14-54-802. Regulation of burials generally.

  1. Municipal corporations shall have the power to:
    1. Regulate the burial of the dead;
    2. Provide, outside the corporate limits of the corporation, places for the interment of the dead; and
    3. Prevent any such interment within any such limits, except in public burying grounds established before the adoption of this section.
  2. Municipal corporations may not only impose proper fines and penalties but shall also have power to cause any body interred contrary to this prohibition to be taken up and buried outside the limits of the municipality.

History. Acts 1875, No. 1, § 15, p. 1; C. & M. Dig., § 7534; Pope's Dig., § 9609; A.S.A. 1947, § 19-2323.

Cross References. Eminent domain for cemetery purposes, § 18-15-1401 et seq.

Case Notes

Corporate Limits.

Under this section, a municipal corporation is authorized to acquire land within the municipal limits for a public cemetery. City of Ft. Smith v. Wilson, 100 Ark. 587, 140 S.W. 733 (1911).

Conway, Ark., Ordinance 0-94-54 may be read harmoniously with § 20-17-903; municipalities that had passed a relevant zoning ordinance in accordance with § 14-56-416 could regulate the construction and expansion of cemeteries pursuant to the ordinance, and municipalities that had not done so had only the benefit of §§ 20-17-903, 14-54-803, and this section, such that the city's denial of the landowner's request for a conditional-use-permit precluded the establishment of a cemetery on his property. Brock v. Townsell, 2009 Ark. 224, 309 S.W.3d 179 (2009).

14-54-803. Power to require burial outside municipal limits.

  1. Cities of the first and second class and incorporated towns shall have the power to prohibit the burial of the dead within their limits.
    1. Where old and abandoned burial grounds which are no longer kept up or used as such are situated within the limits of any such city or incorporated town, it may, by suitable ordinance, require persons having dead buried therein to cause them, within some reasonable time, to be removed and buried beyond the limits of the city or incorporated town.
    2. In the event the bodies are not removed within the time specified in the ordinance of the city or incorporated town, after the ordinance has been published in the mode and manner prescribed by law, then the city or incorporated town may itself have the remains of all such persons as can be found removed and buried, as provided in this section. It may then and not before, by proper ordinance, vacate the cemetery or burial ground and declare that it is not any longer a cemetery exclusively used as such. Thereafter, the property shall become subject to taxation like other property.

History. Acts 1901, No. 102, § 1, p. 168; C. & M. Dig., § 7602; Acts 1929, No. 202, § 1; Pope's Dig., § 9697; A.S.A. 1947, § 19-2324.

Case Notes

Corporate Limits.

Conway, Ark., Ordinance 0-94-54 may be read harmoniously with § 20-17-903; municipalities that had passed a relevant zoning ordinance in accordance with § 14-56-416 could regulate the construction and expansion of cemeteries pursuant to the ordinance, and municipalities that had not done so had only the benefit of §§ 20-17-903, 14-54-802, and this section, such that the city's denial of the landowner's request for a conditional-use-permit precluded the establishment of a cemetery on his property. Brock v. Townsell, 2009 Ark. 224, 309 S.W.3d 179 (2009).

14-54-804. [Repealed.]

Publisher's Notes. This section, concerning municipal trash dumps, was repealed by Acts 1995, No. 555, § 1. The section was derived from Acts 1969, No. 171, §§ 1, 2; A.S.A. 1947, §§ 19-2346, 19-2347.

Subchapter 9 — Regulation of Unsanitary Conditions

Effective Dates. Acts 1979, No. 339, § 3: Mar. 9, 1979. Emergency clause provided: “It has been found and declared by the General Assembly of the State of Arkansas that the Municipalities of this State have the duty and responsibility to protect the public health and welfare by cutting unsightly weed lots when the property owner neglects to do so. It has also been found and declared by the General Assembly of the State of Arkansas that said Municipalities are experiencing great difficulty in collecting the costs for weedcutting, and that this Act will provide alternative means of collection of said costs to remedy this situation. Therefore, an emergency is hereby declared to exist and this Act, being necessary for the immediate preservation of the public peace, health, safety, and welfare, shall be in full force and effect after its passage and approval.”

Acts 1983, No. 80, § 2: Feb. 8, 1983. Emergency clause provided: “It is hereby found and determined by the General Assembly that an emergency exists with reference to the ability of municipalities in this State to cure problems of unsightly and unsanitary conditions on real property and problems relating to the removal of dilapidated and unsafe structures by reason of the inability of said municipalities to effectively recover the expenses to the public in performing such public health functions. Therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 2011, No. 903, § 3: Mar. 31, 2011. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that cities in Arkansas are facing a significant increase in abandoned homes; that these homes can be a strain on the cities and create unsafe conditions; and that this act is immediately necessary because federal moneys are available to assist cities to combat this problem. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Research References

ALR.

Regulation of private landowner's disposal of solid waste on own property. 37 A.L.R.4th 635.

Am. Jur. 56 Am. Jur. 2d, Mun. Corp., § 455 et seq.

C.J.S. 62 C.J.S., Mun. Corp., § 265, 279-281.

U. Ark. Little Rock L.J.

Survey, Property, 12 U. Ark. Little Rock L.J. 659.

14-54-901. Municipal authority.

Incorporated towns and cities of the first and second class are empowered to order the owner of lots and other real property within their towns or cities to cut weeds; to remove garbage, rubbish, and other unsightly and unsanitary articles and things upon the property; and to eliminate, fill up, or remove stagnant pools of water or any other unsanitary thing, place, or condition which might become a breeding place for mosquitoes, flies, and germs harmful to the health of the community, after the town or city has provided therefor by an ordinance to that effect.

History. Acts 1943, No. 100, § 1; A.S.A. 1947, § 19-2325.

Case Notes

Ordinances Appropriate.

City ordinances did not exceed the authority granted under this section where they specifically addressed the storage of household appliances and furniture, building rubbish, dead trees, and the height of weeds and grass, and the testimony of the city employees demonstrated that the purpose behind the ordinances was to prevent conditions that might become a breeding place for mosquitoes, snakes, vermin, and other things harmful to the health of the community. Steffy v. City of Fort Smith, 2018 Ark. App. 170, 545 S.W.3d 804 (2018).

Cited: Tsann Kuen Enters. Co. v. Campbell, 355 Ark. 110, 129 S.W.3d 822 (2003).

14-54-902. Notice to unknown or nonresident owners.

    1. In case the owner of any lot or other real property is unknown or his or her whereabouts is not known or he or she is a nonresident of this state, then a copy of the written notice under § 14-54-903 shall be posted upon the premises.
    2. Before any action to enforce the lien, the municipal recorder or the city clerk shall make an affidavit setting out the facts as to unknown address or whereabouts of nonresidents.
    1. Thereupon, service of the publication as provided for by law against nonresident defendants may be had.
    2. An attorney ad litem shall be appointed to notify the defendant by certified letter addressed to his or her last known place of residence if it can be found.
  1. Except as provided in subsection (b) of this section, notices required by this subchapter shall be published, mailed, or delivered by the municipal recorder or the city clerk or other person as designated by the governing body of the municipality.
  2. Notwithstanding any other provision of law, after a notice has been issued for a specific violation of an order under § 14-54-901 directing an owner to eliminate a condition on the owner's property, an additional notice for a subsequent violation of that specific violation within the same calendar year shall not be required before the issuance of a citation.

History. Acts 1943, No. 100, § 3; A.S.A. 1947, § 19-2327; Acts 1989, No. 239, § 2; 2009, No. 503, § 1.

Amendments. The 2009 amendment subdivided (a) and (b); substituted “certified” for “registered” in (b)(2); added (d); and made minor stylistic changes.

Case Notes

Cited: Tsann Kuen Enters. Co. v. Campbell, 355 Ark. 110, 129 S.W.3d 822 (2003).

14-54-903. Refusal of owner to comply — Definitions.

  1. As used in this section:
      1. “Clean-up lien” means a lien securing the cost of work undertaken by a town or city to remove, abate, or eliminate a condition in violation of local codes or ordinances.
      2. A clean-up lien may have priority against other lienholders as provided in this section;
    1. “Court lien” means a lien securing the fines or penalties imposed by a court of competent jurisdiction against the owner of an unsafe and vacant structure or weed lot for failure to comply with applicable building codes that have been secured by a court lien by action of the local governing body;
    2. “Priority clean-up lien” means a clean-up lien for work undertaken by a city or town on an unsafe and vacant structure or weed lot that is given priority status over other lienholders following notice and hearing;
    3. “Unsafe and vacant structure” or an “abandoned home or residential property” means:
      1. A structure located on previously platted and subdivided property that is not fit for human habitation and has been declared unsafe and vacant by the city or town in which it is located in violation of an applicable ordinance; or
      2. A home or residential property that is:
        1. Unoccupied;
        2. In violation of a city safety standard; and
        3. Located in an area eligible for federal funds under § 14-54-905; and
    4. “Weed lot” means a previously platted and subdivided lot that is vacant or upon which an unsafe and vacant structure is located and that contains debris, rubbish, or grass which is higher than that permitted by local ordinance.
  2. If the owner or lienholder of any lot or other real property within an incorporated town or city neglects or refuses to remove, abate, or eliminate any condition under an ordinance passed by the city or town as provided in § 14-54-901, after having been given seven (7) days' notice in writing to do so, then the town or city may do whatever is necessary to correct the condition and to charge the cost thereof to the owner of the lots or other real property.
    1. The town or city is given a lien against the property for the costs, including all administrative and collection costs.
    2. The town or city shall file the lien with the circuit clerk no later than one hundred twenty (120) days after the town or city completes the clean-up work on the property.
    3. The town or city may perfect its clean-up lien as a lien against the property if the property:
      1. Contains an unsafe and vacant structure; or
      2. Has been cited as a weed lot.
    4. The clean-up lien amount shall equal costs, including administrative costs, that the city or town incurs to help bring the property into compliance with local ordinances because the owner or lienholder failed to remove or repair an unsafe and vacant structure or failed to correct the conditions that caused the property to become a weed lot within the time required by the notice.
      1. If a court of competent jurisdiction levies fines or penalties against the owner of an unsafe and vacant structure or weed lot for failure to comply with applicable building codes, then the local governing body, by majority vote, from time to time and subject to notice and hearing provided by this section, may secure any outstanding court fines or penalties resulting from the owner's failure to clean up an unsafe and vacant structure or weed lot with a court lien against the property for the full value of all the outstanding fines and penalties.
      2. A court lien does not have first priority status over prior recorded liens and may be imposed in addition to clean-up liens.
      1. Notices shall be sent by regular mail and by certified mail, return receipt requested.
      2. Notice to an owner is sufficient if sent to the owner's address of record on file with the applicable county treasurer, county collector, or county assessor.
      1. If the city or town wishes to secure a priority clean-up lien, it shall provide seven (7) business days' notice to lienholders before undertaking any work at the property.
      2. Notice is sufficient if the notice is sent to the lienholder's address shown in the relevant land records.
      3. Cities and towns are not required to give notices to holders of unrecorded liens or to unrecorded assignees of lienholders.
      4. Any lienholder receiving notice under this section shall send, within seven (7) business days from receipt of the notice, a written response to the city or town indicating whether the owner of the property is in default under the terms of the note or mortgage.
  3. Any notice required under this section may be issued by a:
    1. Police officer employed by the city or town;
    2. City or town attorney; or
    3. Code enforcement officer employed by the city or town.
      1. After the work has been completed, the city or town shall provide second notice to the owner of the total amount of the clean-up lien, including administrative and filing costs.
      2. If the city or town wishes to secure a priority clean-up lien after the work has been completed, it shall provide second notice to the lienholders of record of the total amount of the clean-up lien.
    1. Cities and towns are not required to give notice of court liens to prior lienholders.
    2. Notice of the amount of a clean-up lien or a court lien may be combined with the notice of the hearing before the governing body to create and impose the clean-up lien or court lien.
  4. The amount of any clean-up lien or court lien provided in this section may be determined at a public hearing before the governing body of the city or town held after thirty (30) days' written notice by mail, return receipt requested, to the owner of the property if the name and address of the owner are known and to the lienholders of record.
  5. If the name of the owner cannot be determined, then the amount of the clean-up lien or court lien shall be determined at a public hearing before the governing body of the city or town only after publication of notice of the hearing in a newspaper having a bona fide circulation in the county where the property is located for one (1) insertion per week for four (4) consecutive weeks.
    1. The determination of the governing body confirming the amount of any clean-up lien or court lien and creating and imposing any clean-up lien or court lien under this section is subject to appeal by the property owner or by any lienholder of record in the circuit court, filed within forty-five (45) days after the determination is made.
    2. If the owner or lienholder fails to appeal in this time, the lien amount is fully perfected and not subject to further contest or appeal.
  6. The city or town shall file its lien with the circuit clerk no later than sixty (60) days after the governing body of the city or town confirms the lien amount, or if the lien is appealed, within sixty (60) days after the city or town wins on appeal.
    1. If the city or town wishes to secure a first-priority status for any priority clean-up lien created and imposed under this section, it shall file an action with the circuit court within which the property is located seeking a declaration that the clean-up lien is entitled to priority over previously recorded liens and naming the holders of the recorded liens as defendants.
    2. Priority status shall be awarded to the priority clean-up lien with respect to any previously recorded lien if the court determines that such lienholder has failed to exercise its rights to foreclose its lien when the obligation it secures becomes in default or has failed to pay the costs of work undertaken by a city or town that composes the clean-up lien. However, the amount as to which the clean-up lien shall have priority shall be the amount the court finds reasonable and is limited to:
      1. No more than one thousand dollars ($1,000) for grass or weed cutting;
      2. No more than five thousand dollars ($5,000) to board and secure the property;
      3. No more than seven thousand five hundred dollars ($7,500) to demolish any structures on the property; or
      4. No more than fifteen thousand dollars ($15,000) for environmental remediation.

History. Acts 1943, No. 100, § 2; A.S.A. 1947, § 19-2326; Acts 1989, No. 239, § 1; 2005, No. 887, § 1; 2007, No. 854, § 1; 2009, No. 143, § 1; 2011, No. 903, § 1; 2017, No. 495, § 1.

Amendments. The 2005 amendment redesignated former (b) as present (b)(1); and added (b)(2) and (c).

The 2009 amendment inserted “or ordinances” in (a)(1)(A); inserted “priority” preceding “clean-up” in (c)(7)(A), (j)(1), and (j)(2); deleted “as may be provided for” following “condition” in (b), in (e), inserted (e)(1)(B), redesignated the remainder of (e)(1) accordingly, and deleted “and lienholders of record” following “notice to the owner” in (e)(1)(A); and made minor stylistic changes throughout the section.

The 2011 amendment added the (a)(4)(A) designation and (a)(4)(B); and inserted “or an abandoned home or residential property” in the introductory language of (a)(4).

The 2017 amendment, in (c)(6)(B), inserted “on file”, inserted “county” preceding “collector”, and substituted “county collector, or county assessor” for “or collector”.

14-54-904. Enforcement of lien for clearance by municipality.

  1. The liens provided for in § 14-54-903 may be enforced and collected at any time within ten (10) years after a lien has been filed in either one (1) of the following manners:
    1. By an action for foreclosure in the circuit court by the city or town, or if the city or town has established a land bank, by a land bank that has been assigned the lien; or
      1. The amount so determined at the hearing, plus ten percent (10%) penalty for collection, shall be certified by the governing body of the municipality to the tax collector of the county where the municipality is located and placed by him or her on the tax books as delinquent taxes and collected accordingly.
      2. The amount, less three percent (3%) thereof, when so collected shall be paid to the municipality by the county tax collector.
      1. In any situation in which a city of the first class or city of the second class issues an order for the removal, repair to return the structure to compliance with minimum building code standards, or razing of a building or house under the provisions of § 14-56-203 and such order is not complied with by the owner of the building or house and the city then removes, repairs, or razes the building or house, a lien is granted and given against the real property for the cost of the removal, repair, or razing.
      2. If the city determines to repair the building or house to meet the minimum building code standards, the city shall comply with all necessary requirements under § 14-58-303 for competitive bidding for purchases of supplies and materials or for contracts for work or labor needed to complete the repairs on the building or house.
    1. The lien granted by this subsection shall also be enforced pursuant to the lien enforcement procedures set forth in subsection (a) of this section.
  2. In all suits brought to enforce the liens described in this section, the reimbursement of costs, including title search fees and reasonable attorney's fees, shall be awarded to the municipality.

History. Acts 1943, No. 100, § 4; 1979, No. 339, § 1; 1983, No. 80, § 1; A.S.A. 1947, § 19-2328; Acts 2001, No. 1538, § 1; 2005, No. 887, § 2; 2007, No. 854, § 2.

Amendments. The 2001 amendment redesignated the five sentences in (a)(2) as (a)(2)(A)(i)( a ) through (a)(2)(B)(ii); made gender neutral changes in present (a)(2)(B)(i); in present (b)(1)(A), substituted “first class or city of the second class” for “first or second class,” inserted “repair to… code standards” following “order for the removal,” inserted “repairs” following “removes,” and inserted “repair” following “cost of the removal”; added (b)(1)(B); and added (c).

The 2005 amendment substituted “three (3) years” for “eighteen (18) months” in (a)(1); and, in (a)(2)(A)(i)(a), substituted “by mail, return receipt requested” for “by certified mail” and “address” for “whereabouts.”

Case Notes

Constitutionality.

Ark. Const., Art. 16, § 5 does not apply to the collection by a tax collector of a grass-cutting lien for a city pursuant to this section. Tucker v. Holt, 343 Ark. 216, 33 S.W.3d 110 (2000).

Limitations Period.

Eighteen month limitation period, which appears solely in subdivision (a)(1) of this section, is exclusive to that subsection. It does not apply to the certification option in subdivision (a)(2) of this section. Taylor v. City of Fort Smith, 2014 Ark. App. 450, 441 S.W.3d 36 (2014).

City's clean-up lien claim was not time-barred where the 18-month limitation period applied solely to subdivision (a)(1) of this section, the city had used the certification option set forth in subdivision (a)(2) in this section, and it was inappropriate to apply the more general statutes of limitations when the General Assembly chose not to include a limitation period in subdivision (a)(2). Taylor v. City of Fort Smith, 2014 Ark. App. 450, 441 S.W.3d 36 (2014).

Tax Collector.

This section provides the tax collector with authority to collect a grass-cutting lien for a city. Tucker v. Holt, 343 Ark. 216, 33 S.W.3d 110 (2000).

A tax collector had authority to collect a grass-cutting lien for a city where the appropriate ordinance was passed by the city council and the city's governing body properly certified the amount of the lien to the county tax collector for collection. Tucker v. Holt, 343 Ark. 216, 33 S.W.3d 110 (2000).

14-54-905. Federal programs.

An owner of an abandoned home or residential property that is located in a designated neighborhood stabilization or revitalization area may voluntarily participate in a United States Department of Housing and Urban Development's housing program if federal funds are available.

History. Acts 2011, No. 903, § 2.

Subchapter 10 — Plumbers and Plumbing Regulations

14-54-1001 — 14-54-1017. [Repealed.]

Publisher's Notes. This subchapter was repealed by Acts 1997, No. 214, § 1. The subchapter was derived from the following sources:

14-54-1001. Acts 1925, No. 166, § 11; Pope's Dig., § 9749; Acts 1941, No. 321, § 2; A.S.A. 1947, §§ 19-3702, 19-3713.

14-54-1002. Acts 1925, No. 166, § 12; Pope's Dig., § 9750; A.S.A. 1947, § 19-3714.

14-54-1003. Acts 1925, No. 166, §§ 2 [3], 4; Pope's Dig., §§ 9741, 9742; Acts 1941, No. 321, § 3; 1945, No. 27, § 1; A.S.A. 1947, §§ 19-3704, 19-3705.

14-54-1004. Acts 1925, No. 166, §§ 1, 5; Pope's Dig., §§ 9739, 9743; Acts 1941, No. 321, §§ 1, 2, 4; 1945, No. 27, § 2; A.S.A. 1947, §§ 19-3701, 19-3702, 19-3706.

14-54-1005. Acts 1925, No. 166, § 2; Pope's Dig., § 9740; A.S.A. 1947, § 19-3703.

14-54-1006. Acts 1925, No. 166, § 5; Pope's Dig., § 9743; Acts 1941, No. 321, § 4; 1945, No. 27, § 2; A.S.A. 1947, § 19-3706.

14-54-1007. Acts 1925, No. 166, § 5; Pope's Dig., § 9743; Acts 1941, No. 321, § 4; 1945, No. 27, § 2; A.S.A. 1947, § 19-3706.

14-54-1008. Acts 1925, No. 166, § 5; 1941, No. 321, § 4; 1945, No. 27, §§ 2, 3; A.S.A. 1947, §§ 19-3706, 19-3707.

14-54-1009. Acts 1925, No. 166, § 5; Pope's Dig., § 9743; Acts 1941, No. 321, § 4; 1945, No. 27, § 2; A.S.A. 1947, § 19-3706.

14-54-1010. Acts 1925, No. 166, § 5; Pope's Dig., § 9743; Acts 1941, No. 321, § 4; 1945, No. 27, § 2; A.S.A. 1947, § 19-3706.

14-54-1011. Acts 1925, No. 166, § 5; Pope's Dig., § 9743; Acts 1941, No. 321, § 4; 1945, No. 27, § 2; A.S.A. 1947, § 19-3706.

14-54-1012. Acts 1925, No. 166, § 6; Pope's Dig., § 9744; A.S.A. 1947, § 19-3708.

14-54-1013. Acts 1925, No. 166, § 7; Pope's Dig., § 9745; A.S.A. 1947, § 19-3709.

14-54-1014. Acts 1925, No. 166, § 8; Pope's Dig., § 9746; A.S.A. 1947, § 19-3710.

14-54-1015. Acts 1925, No. 166, § 9; Pope's Dig., § 9747; A.S.A. 1947, § 19-3711.

14-54-1016. Acts 1925, No. 166, § 9; Pope's Dig., § 9747; A.S.A. 1947, § 19-3711.

14-54-1017. Acts 1925, No. 166, § 10; Pope's Dig., § 9748; A.S.A. 1947, § 19-3712.

Subchapter 11 — Regulation of Animals

Effective Dates. Acts 1875, No. 1, § 95: effective on passage.

Acts 1899, No. 122, § 3: effective on passage.

Acts 1901, No. 172, § 2: effective on passage.

Acts 1917, No. 376, § 2: approved Mar. 24, 1917. Emergency declared.

Research References

ALR.

Construction and application of ordinances relating to unrestrained dogs, cats, or other domesticated animals. 1 A.L.R.4th 994.

Construction of provisions of statute or ordinance governing occasion, time, or manner of summary destruction of domestic animals by public authorities. 42 A.L.R.4th 839.

C.J.S. 62 C.J.S., Mun. Corp., § 212 et seq.

14-54-1101. Livestock running at large.

  1. Cities of the first and second class and incorporated towns are empowered to prevent the running at large within their corporate limits of cattle, horses, mules, asses, swine, sheep, goats, and other animals of the kind. These cities and towns are authorized and empowered to restrain and impound any such animals so found running at large within their corporate limits, in violation of any ordinance passed by the cities and towns in conformity with this section.
      1. Whenever any person or officer of any city or incorporated town in this state under the law of this state, or under an ordinance of any city or incorporated town, shall take charge of any horse, cow, ass, sheep, goat, or hog for the purpose of impounding it, the persons so impounding the stock found to be running at large in the city or town shall at once notify the owner of the animal, if known to the person or officer, that the animal has been taken possession of.
      2. If the owner of the animal shall, within twenty-four (24) hours after being notified, appear and claim his stock, it shall be delivered to the owner.
      1. If the owner of the stock is unknown to the person or officer taking up or impounding, then that person or officer shall post written notices in at least three (3) public places in the incorporated towns, and by notice in some newspaper in cities of the first and second class. This notice shall give a description of the animal, set out therein the marks, brands, and flesh marks of the animals so impounded, and call upon the owner of the animal to prove his ownership or interest therein to such person or officer having it in his possession or custody, within ten (10) days after the publication of the notice.
      2. Upon proof being made to the satisfaction of the person or officer and the payment of actual expenses incurred in the taking care of the animal, the person or officer having it in his possession shall at once deliver the animal to the owner.
  2. If the pound master, his agent or employee, or any employee of any city shall drive or entice any of the stock enumerated in this section from outside the city into the city, he shall be deemed guilty of a misdemeanor. Upon conviction, he shall be fined in any sum not less than five dollars ($5.00) nor more than twenty-five dollars ($25.00).

History. Acts 1895, No. 137, § 1, p. 201; 1899, No. 122, §§ 1, 2, p. 198; 1901, No. 172, § 1, p. 325; C. & M. Dig., §§ 7551-7553; Acts 1921, No. 299, § 1; Pope's Dig., §§ 9625-9627; A.S.A. 1947, §§ 19-2503 — 19-2505.

Research References

Ark. L. Rev.

Absolute Liability in Arkansas, 8 Ark. L. Rev. 83.

Case Notes

Construction.

Acts 1901, No. 172, relating to the impounding of stock in cities and towns, does not cover the entire subject matter of Acts 1895, No. 137, nor impliedly repeal it. Benton v. Willis, 76 Ark. 443, 88 S.W. 1000 (1905).

Acts 1899, No. 122, and Acts 1901, No. 172, empowering municipalities to prevent the running at large within their limits of the animals therein named impliedly repealed Acts 1895, No. 137, § 2, providing that it shall be unlawful to impound such animals when known to be the property of some persons residing outside the municipal limits. De Queen v. Fenton, 100 Ark. 504, 140 S.W. 716 (1911).

Authority.

Municipal corporations are empowered to provide for the impounding of certain animals found running at large within their corporate limits. McKenzie v. Newlon, 89 Ark. 564, 117 S.W. 553 (1909).

Municipal ordinances providing for the enforcement of the statutory provisions of this section are valid police regulations. De Queen v. Fenton, 98 Ark. 521, 136 S.W. 945 (1911).

Fowls.

Ordinance that it shall be unlawful for any fowls to run at large within the corporate limits of a municipality is a valid exercise of the right given to municipalities to cause any nuisance to be abated. Merrill v. City of Van Buren, 125 Ark. 248, 188 S.W. 537 (1916).

Liability of Municipalities.

Municipal corporations are not liable for the negligent or illegal acts of their officers in the wrongful impounding of animals running at large. Gregg v. Hatcher, 94 Ark. 54, 125 S.W. 1007 (1910).

Recovery by Owners.

The owner must pay lawful charges before the recovery of an animal will be permitted. White v. Town of Clarksville, 75 Ark. 340, 87 S.W. 630 (1905).

The owner may recover an animal wrongfully impounded. Gregg v. Hatcher, 94 Ark. 54, 125 S.W. 1007 (1910).

Where animals, the owner of which lived outside the city limits, were impounded while running at large and were sold in manner provided by ordinance when their owner refused to pay charges, the owner was not entitled to recover the animals. Hall v. Benton, 160 Ark. 254, 254 S.W. 530 (1923).

Cited: Weeks v. City of Paragould, 230 Ark. 908, 328 S.W.2d 81 (1959).

14-54-1102. Dogs running at large.

  1. Municipal corporations shall have the power to prevent the running at large of dogs, and injuries and annoyances therefrom, and to authorize the destruction of them, when at large contrary to any prohibition to that effect.
      1. Municipalities may impound and destroy any dog running at large within the municipality.
        1. Prior to destroying the dog, the municipality shall give the dog's owner at least five (5) days' notice of the date of the proposed destruction of the dog.
        2. The notice shall be by certified letter, return receipt requested. Dog owners may claim their dogs at the municipal pound by reimbursing the municipality for the cost of the notice plus other costs and requirements which may be established by ordinance of the municipal governing body prior to the date set for destruction of the dogs.
    1. This subsection shall apply only in instances where the dog carries its owner's address.

History. Acts 1875, No. 1, § 16, p. 1; C. & M. Dig., § 7554; Pope's Dig., § 9628; Acts 1979, No. 534, § 1; A.S.A. 1947, §§ 19-2502, 19-2502.1.

Case Notes

Authority.

Ordinance making it unlawful for owner of a dog living within municipal limits to permit dog to run at large and providing for a fine for its violation is valid. Weeks v. City of Paragould, 230 Ark. 908, 328 S.W.2d 81 (1959).

Destruction.

Municipalities may provide for the killing of dogs upon which the tax has not been paid. Gibson v. Harrison, 69 Ark. 385, 63 S.W. 999 (1901).

14-54-1103. Taxation.

The city council of any municipal corporation shall have the power whenever, in their opinion, the interest of the corporation requires it, to levy and collect a tax on dogs and other domestic animals not included in the list of taxable property, for state and county purposes.

History. Acts 1875, No. 1, § 69, p. 1; C. & M. Dig., § 7581; Pope's Dig., § 9660; A.S.A. 1947, § 19-2501.

Case Notes

Authority.

Ordinance imposing a yearly tax on dogs, subjecting their owners to a fine for nonpayment thereof and providing for the killing of dogs upon which the tax is unpaid, is a valid police regulation. Gibson v. Harrison, 69 Ark. 385, 63 S.W. 999 (1901).

14-54-1104. Auctions.

Municipal corporations shall have power to regulate or prohibit the sale of all horses or other domestic animals at auctions in the streets, alleys, or highways.

History. Acts 1875, No. 1, § 17, p. 1; 1917, No. 376, § 1, p. 1810; C. & M. Dig., § 7532; Pope's Dig., § 9601; A.S.A. 1947, § 19-2329.

Subchapter 12 — Milk Production and Sale

Research References

C.J.S. 62 C.J.S., Mun. Corp., § 244.

14-54-1201. Authority to regulate.

Municipalities are authorized to regulate, in accordance with the terms of the 1939 edition of the United States Public Health Service milk ordinance, the production, transportation, processing, handling, sampling, examination, grading, labeling, and sale of all milk and milk products sold for ultimate consumption within municipalities.

History. Acts 1935, No. 121, § 1; Pope's Dig., § 9972; Acts 1939, No. 131, § 1; A.S.A. 1947, § 19-3401.

14-54-1202. Form of ordinance.

Authority for the regulation authorized in § 14-54-1201 may be had by the passage of an ordinance in the following form:

“An ordinance to regulate the production, transportation, processing, handling, sampling, examination, grading, labeling, regrading, and sale of milk and milk products; the inspection of dairy herds, dairies, and milk plants; the issuing and revocation of permits to milk producers and distributors; the placarding of restaurants and other establishments serving milk or milk products; and the fixing of penalties.

“The city of ordains:

“Section 1. The production, transportation, processing, handling, sampling, examination, grading, labeling, regrading, and sale of all milk and milk products sold for ultimate consumption within the city of , or its police jurisdiction, the inspection of dairy herds, dairies, and milk plants, the issuing and revocation of permits to milk producers and distributors, the placarding of restaurants and other establishments serving milk or milk products, and the fixing of penalties, shall be regulated in accordance with the terms of the 1939 edition of the United States Public Health Service Milk Ordinance, a certified copy of which shall be on file in the office of the city clerk: Provided, That the blank spaces following the words “city of” in said Public Health Service Milk Ordinance shall be understood to refer to the city of ; Provided further, That in section 8 of said Public Health Service Milk Ordinance the alternative wording shall apply: Provided further, That sections 16 and 17 of said Public Health Service Milk Ordinance shall be replaced, respectively, by sections 2 and 3 below.

“Section 2. Any person, firm, or corporation violating any provision of this ordinance shall upon conviction be punished by

“Section 3. All ordinances and parts of ordinances in conflict with this ordinance are hereby repealed; and this ordinance shall take effect upon its adoption and publication.”

History. Acts 1935, No. 121, § 2; Pope's Dig., § 9973; Acts 1939, No. 131, § 2; A.S.A. 1947, § 19-3402.

Subchapter 13 — Public Recreation and Playgrounds

Publisher's Notes. Acts 1941, No. 291, is also codified as § 6-21-501 et seq. and § 14-16-201 et seq.

Cross References. Land dedicated for park purposes, cancellation of delinquent taxes, § 26-37-212.

Parks annexed to city, § 14-40-204.

Title to parks not acquired by adverse possession, § 22-1-201.

Effective Dates. Acts 1941, No. 291, § 6: approved Mar. 26, 1941. Emergency clause provided: “This act being necessary for the promotion of an adequate National Defense and an able-bodied citizenry, an emergency is declared to exist and the same shall take effect and be in force from and after its passage.”

Research References

Am. Jur. 56 Am. Jur. 2d, Mun. Corp., § 202.

C.J.S. 62 C.J.S., Mun. Corp., § 211.

64 C.J.S., Mun. Corp., §§ 1818-1823.

14-54-1301. Authority to operate.

  1. Any city or town, or any board thereof, may:
    1. Operate a program of public recreation and playgrounds;
    2. Acquire, equip, and maintain land, buildings, or other recreational facilities; and
    3. Expend funds for the operation of the program pursuant to the provisions of this subchapter.
  2. The provisions of this subchapter shall not apply to §§ 17-22-201 — 17-22-204, 17-22-301 — 17-22-303, and 17-22-305.

History. Acts 1941, No. 291, § 1; A.S.A. 1947, § 19-3601.

Publisher's Notes. Sections §§ 17-19-20117-19-204, 17-19-301, 17-19-302, 17-19-303, and 17-19-305, referred to in this section, have been renumbered as §§ 17-22-20117-22-204, 17-22-301, 17-22-302, 17-22-303, and 17-22-305, respectively.

Case Notes

Swimming Pools.

Evidence was sufficient to establish that swimming pool operated by municipality was operated in governmental capacity, and not in a proprietary capacity for profit; hence city was not liable for drowning of child in the pool. Handley v. City of Hope, 137 F. Supp. 442 (W.D. Ark. 1956), appeal dismissed, Handley v. Hope, 239 F.2d 647 (8th Cir. Ark. 1956).

Where municipal swimming pool was being operated in municipality's governmental capacity, plaintiff could not avoid governmental immunity in action against municipality based on drowning of child in pool by alleging an action in contract where the action was clearly in tort. Handley v. City of Hope, 137 F. Supp. 442 (W.D. Ark. 1956), appeal dismissed, Handley v. Hope, 239 F.2d 647 (8th Cir. Ark. 1956).

Where evidence showed that municipality owned property on which swimming pool was constructed and leased the pool to a boys' club and club operated the pool and received all revenues therefrom, a minor who was injured while diving where depth of pool was allegedly unmarked could not sue the municipality in tort since the municipality, in owning pool, was acting in governmental capacity and was immune from tort liability to user of pool, there being no liability insurance involved. Cabbiness v. City of N. Little Rock, 228 Ark. 356, 307 S.W.2d 529 (1957).

Where complaint was based on tort liability and damages were requested for personal injuries, allegations therein that municipality constructed and leased a nuisance (swimming pool) to boys' club, which maintained the pool, were immaterial, since proper procedure for person aggrieved by nuisance is to bring abatement action. Cabbiness v. City of N. Little Rock, 228 Ark. 356, 307 S.W.2d 529 (1957).

Cited: Kendall v. Henderson, 238 Ark. 832, 384 S.W.2d 954, 384 S.W.2d 955 (1964).

14-54-1302. Operation of programs generally.

  1. Any city or town, or any board thereof, may operate a program of public recreation and playgrounds independently; they may cooperate in its conduct and in any manner in which they may mutually agree, including with counties or school districts; or they may delegate the cooperation of the program to a recreation board created by one (1) or more of them and appropriate money voted for this purpose to the board.
  2. In the case of school districts, the right to enter into such agreements with any other public corporation, board, or body or the right to delegate power to a board for operating a program of recreation shall be authorized only by a majority vote cast at an annual school election.

History. Acts 1941, No. 291, § 2; A.S.A. 1947, § 19-3602.

Cross References. Operation and management of parks and recreation programs, § 14-269-201 et seq., § 14-269-301 et seq.

14-54-1303. [Repealed.]

Publisher's Notes. This section, prohibiting the use of state aid for recreational purposes, was repealed by Acts 2007, No. 63, § 1. The section was derived from Acts 1941, No. 291, § 2; A.S.A. 1947, § 19-3602.

14-54-1304. Use of school funds.

In all cases where school funds are utilized for programs under this subchapter, the State Board of Education shall prepare or cause to be, prepared, published, and distributed adequate and appropriate manuals and other materials as it may deem necessary or suitable to carry out the provisions of this subchapter.

History. Acts 1941, No. 291, § 4; A.S.A. 1947, § 19-3604.

14-54-1305. Gifts and bequests.

Any corporation, board, or body designated as given charge of a recreation program shall have authority to accept gifts and bequests for the benefit of the recreational service.

History. Acts 1941, No. 291, § 3; A.S.A. 1947, § 19-3603.

14-54-1306. Property used for activities.

Any corporation, board, or body designated as given charge of a recreation program is authorized to conduct its activities on:

  1. Property under its custody and management;
  2. Other public property under the custody of any other public organization, body, or board, with the consent of the corporations, bodies, or boards; and
  3. Private property, with the consent of its owners.

History. Acts 1941, No. 291, § 3; A.S.A. 1947, § 19-3603.

14-54-1307. Use of school facilities.

  1. The facilities of any school district operating a recreation program pursuant to the provisions of this subchapter shall be used primarily for the purpose of conducting the regular school curriculum and related activities, and the use of school facilities for recreation purposes authorized by this subchapter shall be secondary.
  2. In all cases where school property is utilized for programs under this subchapter, the State Board of Education shall prepare or cause to be prepared, published, and distributed adequate and appropriate manuals and other materials as it may deem necessary or suitable to carry out the provisions of this subchapter.

History. Acts 1941, No. 291, §§ 4, 5; A.S.A. 1947, §§ 19-3604, 19-3605.

14-54-1308. Directors and instructors.

  1. Any corporation, board, or body designated as given charge of a recreation program shall have authority to employ directors and instructors of recreational work.
  2. In all cases where school funds or property are utilized for programs under this subchapter, the State Board of Education shall establish minimum qualifications of local recreational directors and instructors.

History. Acts 1941, No. 291, §§ 3, 4; A.S.A. 1947, §§ 19-3603, 19-3604.

Subchapter 14 — Miscellaneous Regulations

Preambles. Acts 1977, No. 400 contained a preamble which read:

“Whereas, the use of barber poles as advertising signs has become an American tradition; and

“Whereas, the traditional candy-striped barber pole is neither an eye sore nor a traffic hazard; and

“Whereas, some municipalities are attempting to prohibit the use of barber poles by the barber shops in the State;

“Now, therefore….”

Effective Dates. Acts 1875, No. 1, § 95: effective on passage.

Acts 1917, No. 376, § 2: approved Mar. 24, 1917. Emergency declared.

Acts 1917, No. 397, § 2: approved Mar. 28, 1917. Emergency declared.

Acts 1957, No. 367, § 6: Mar. 27, 1957. Emergency clause provided: “It has been found and declared by the General Assembly of the State of Arkansas that there has been considerable controversy in recent months concerning the operation of businesses on Sunday, that much confusion exists in regard to the present status of certain state laws and city ordinances, and this act will clarify and improve this undesirable situation. Therefore an emergency is hereby declared to exist and this Act being necessary for the public peace, health, safety and welfare shall be in full force and effect from and after its passage and approval.”

Research References

C.J.S. 62 C.J.S., Mun. Corp., § 211 et seq.

14-54-1401. [Repealed.]

Publisher's Notes. This section, concerning regulation of amusement places, was repealed by Acts 2013, No. 1150, § 3. The section was derived from Acts 1917, No. 397, § 1; C. & M. Dig., § 7530; Pope's Dig., § 9599; A.S.A. 1947, § 19-2330.

14-54-1402. Business on Sunday.

  1. The city council or board of managers of any city or incorporated town in this state shall have the authority, by ordinance, to regulate the operation of businesses within their cities or towns on Sunday.
  2. The provisions of this section shall not in any manner amend, repeal, or otherwise affect the provisions of § 5-60-119 permitting motion picture shows on Sundays.

History. Acts 1957, No. 367, §§ 1, 3; A.S.A. 1947, §§ 19-2335, 19-2336.

Research References

U. Ark. Little Rock L.J.

Note, Constitutional Law — Due Process — Arkansas' Sunday Closing Law is Declared Unconstitutionally Vague, 6 U. Ark. Little Rock L.J. 305.

Case Notes

Construction.

This section is sufficiently broad and definite to grant a municipality full and complete authority to enact an ordinance prohibiting the Sunday sale of all but certain items. Green Star Supermarket, Inc. v. Stacy, 242 Ark. 54, 411 S.W.2d 871 (1967).

Authority.

Where, prior to enactment of this section, ordinance had been enacted prohibiting certain business on Sunday under provisions of former statute, the fact that the statute was repealed and this section enacted did not invalidate the prior ordinance so that a new ordinance would be required under the provisions of this section. Hickinbotham v. Williams, 227 Ark. 1102, 303 S.W.2d 563.

14-54-1403. [Repealed.]

Publisher's Notes. This section, concerning carriages for hire, was repealed by Acts 2013, No. 1150, § 4. The section was derived from Acts 1875, No. 1, § 17, p. 1; 1917, No. 376, § 1; C. & M. Dig., § 7532; Pope's Dig., § 9601; A.S.A. 1947, § 19-2329.

14-54-1404. [Repealed.]

Publisher's Notes. This section, concerning livery stables, was repealed by Acts 2013, No. 1150, § 5. The section was derived from Acts 1875, No. 1, § 17, p. 1; 1917, No. 376, § 1; C. & M. Dig., § 7532; Pope's Dig., § 9601; A.S.A. 1947, § 19-2329.

14-54-1405. [Repealed.]

Publisher's Notes. This section, concerning public exhibitions and shows, was repealed by Acts 2013, No. 1150, § 6. The section was derived from Acts 1875, No. 1, § 17, p. 1; 1917, No. 376, § 1; C. & M. Dig., § 7532; Pope's Dig., § 9601; A.S.A. 1947, § 19-2329.

14-54-1406. Traditional barber pole.

No municipality, by ordinance or otherwise, may prohibit the placement or the maintenance and use of the traditional barber pole on the premises of barbershops within this state, whether internally or externally lighted or not lighted, and whether rotating or stationary.

History. Acts 1977, No. 400, § 1; A.S.A. 1947, § 19-2355.

14-54-1407. Transient vendors.

  1. All municipalities shall have power to define, license, regulate, or tax transient and itinerant vendors, or transient dealers in merchandise, or transient dealers in horses and mules.
  2. No one who conducts the same business in the same municipality for six (6) consecutive months shall be classed as a transient.

History. Acts 1875, No. 1, § 17, p. 1; 1917, No. 376, § 1; C. & M. Dig., § 7532; Pope's Dig., § 9601; A.S.A. 1947, § 19-2329.

14-54-1408. Vagrants, etc.

The city council shall have power to provide that all vagrants, common street beggars, common prostitutes, and persons disturbing the peace of the city shall, on conviction, be punished by fine or imprisonment not exceeding thirty (30) days.

History. Acts 1875, No. 1, § 9, p. 1; C. & M. Dig., § 7599; Pope's Dig., § 9685; A.S.A. 1947, § 19-2333.

Case Notes

Prostitutes.

Ordinance making it a misdemeanor for any male person over 14 years of age to walk the streets at any time with a female having the reputation of a prostitute was held invalid. Coker v. City of Ft. Smith, 162 Ark. 567, 258 S.W. 388 (1924).

Municipal court was held to have jurisdiction to commit to the state farm for women a woman who pleaded guilty to charges of habitual prostitution. Adams v. Pace, 193 Ark. 1020, 104 S.W.2d 212 (1937).

14-54-1409. Rent control preemption.

  1. As used in this section, “local governmental unit” means a political subdivision of this state, including, but not limited to, a county, city, village, or township, if the political subdivision provides local government services for residents in a geographically limited area of this state as its primary purpose and has the power to act primarily on behalf of that area.
  2. A local governmental unit shall not enact, maintain, or enforce an ordinance or resolution that would have the effect of controlling the amount of rent charged for leasing private residential or commercial property.
  3. This section does not impair the right of any local governmental unit to manage and control residential property in which the local governmental unit has a property interest.

History. Acts 1993, No. 545, §§ 1-3.

Publisher's Notes. Acts 1993, No. 545, §§ 1-3 are also codified as § 14-16-601.

14-54-1410. Operation of golf carts on city streets — Definition.

  1. It shall be within the municipal affairs and authority of any municipality in the State of Arkansas to authorize by municipal ordinance, any owner of a golf cart to operate the golf cart upon the city streets of the municipality; provided, however, operation shall not be authorized on city streets which are also designated as federal or state highways or as a county road.
  2. When authorized by the municipality to operate on the city streets and limited to the circumstances and provisions of this section, there shall be no motor vehicle registration or license necessary to operate the golf cart on the public street.
  3. The term “municipality” as used in this section means any city of the first class, city of the second class, or an incorporated town.

History. Acts 1993, No. 976, § 1; 2013, No. 170, § 1.

Amendments. The 2013 amendment deleted former (b) and redesignated the remaining subsections accordingly.

Cross References. Registration and licensing of motor vehicles generally, § 27-14-101 et seq.

14-54-1411. Firearms and ammunition — Definition.

  1. As used in this section, “local unit of government” means a city, town, or county.
      1. A local unit of government shall not enact any ordinance or regulation pertaining to, or regulate in any other manner, the ownership, transfer, transportation, carrying, or possession of firearms, ammunition for firearms, or components of firearms, except as otherwise provided in state or federal law.
      2. This shall not prevent the enactment of an ordinance regulating or forbidding the unsafe discharge of a firearm.
      1. A local unit of government shall have no authority to bring suit and shall have no right to recover against any firearm or ammunition manufacturer, trade association, or dealer for damages, abatement, or injunctive relief resulting from or relating to the lawful design, manufacture, marketing, or sale of firearms or ammunition to the public.
      2. The authority to bring any suit and the right to recover against any firearm or ammunition manufacturer, trade association, or dealer for damages, abatement, or injunctive relief shall be reserved exclusively to the State of Arkansas.
      3. Provided, this shall not prevent a local unit of government from bringing suit against a firearm or ammunition manufacturer or dealer for breach of contract or warranty as to firearms or ammunition purchased by the local unit of government.
    1. Notwithstanding subsection (b) of this section, the governing body of a local unit of government, following the proclamation by the Governor of a state of emergency, may enact an emergency ordinance regulating the transfer, transportation, or carrying of firearms or components of firearms.
    2. Such emergency ordinance shall not be effective for a period of more than twenty (20) days and shall be enacted by a two-thirds (2/3) majority of the governing body.

History. Acts 1993, No. 1100, §§ 1-3; 1999, No. 951, § 2.

Publisher's Notes. Acts 1993, No. 1100, §§ 1-3, are also codified as § 14-16-504.

Amendments. The 1999 amendment added (b)(2); and made stylistic changes in (b)(1) and (c).

Research References

U. Ark. Little Rock L.J.

Legislative Survey, Civil Liberties, 16 U. Ark. Little Rock L.J. 73.

14-54-1412. Designated entertainment districts — Definition.

  1. As used in this section, “designated entertainment district” means a contiguous area located in a part of a city, a municipality, or an incorporated town that:
    1. Is zoned for or customarily used for commercial purposes; and
    2. Contains any number and any combination of restaurants, taprooms, taverns, entertainment establishments, hospitality establishments, music venues, theaters, bars, art galleries, art studios, tourist destinations, distilleries, dance clubs, cinemas, or concert halls.
    1. A city, a municipality, or an incorporated town collecting a gross receipts tax on prepared food or hotel and motel accommodations under §§ 26-75-602 — 26-75-613 and located in a county authorized to sell alcoholic beverages may by ordinance create a designated entertainment district.
    2. A designated entertainment district may be permanent or temporary.
      1. A city, a municipality, or an incorporated town that creates a designated entertainment district under this section shall set by ordinance reasonable standards for the regulation of alcohol possession within the boundaries of the designated entertainment district.
      2. An ordinance enacted under this subsection does not diminish the requirements of the Alcoholic Beverage Control Division of the Department of Finance and Administration concerning permits issued within the designated entertainment district.
    3. A city, a municipality, or an incorporated town that creates a designated entertainment district under this section shall notify the division within ten (10) days of the issuance or removal of a permanent or temporary designation as a designated entertainment district.

History. Acts 2019, No. 812, § 3.

Subchapter 15 — Violation of Municipal Health and Safety Codes

14-54-1501. Intent.

The intent of the General Assembly of the State of Arkansas in this subchapter is to enact civil remedies that eliminate any conduct within a municipality which constitutes a nuisance.

History. Acts 1999, No. 1561, § 1.

14-54-1502. Common nuisance declared.

  1. Conduct within a municipality that unreasonably interferes with the use and enjoyment of lands of another, including conduct on property which disturbs the peaceful, quiet, and undisturbed use and enjoyment of nearby property, constitutes a common nuisance.
  2. For purposes of this subchapter, a common nuisance shall not include conduct which is permitted by and in conformance with city ordinances.
  3. A common nuisance shall include any three (3) separate district court convictions of health and safety code violations with respect to any one (1) lot or parcel of property within a one-year period or one (1) such conviction if the offense constitutes an imminent threat to the health, safety, or welfare of any citizen. Such conduct is declared to be detrimental to the law-abiding citizens of the municipality and may be subject to an injunction, a court-ordered eviction, or a cause of action for damages as provided for in this subchapter.

History. Acts 1999, No. 1561, § 2.

14-54-1503. Action to abate — Permanent injunction — Verification of complaint.

  1. Whenever there is reason to believe such a common nuisance is kept or maintained or exists in any city, a circuit court may enjoin permanently the person conducting or maintaining the nuisance and the owner, lessee, or agent of the building or place in or upon which the nuisance exists from directly or indirectly maintaining or permitting the nuisance.
  2. For activities involving multiple convictions of municipal code violations, the city attorney may bring the action permitted in this subchapter. For other activities constituting a nuisance as defined in § 14-54-1502, any citizen of the city may bring the action in his or her own name.
  3. The complaint in the action shall be certified, unless the action is brought by the city attorney.

History. Acts 1999, No. 1561, § 3.

14-54-1504. Temporary injunction — Bond required — Precedence.

  1. If the existence of the nuisance is shown in the action to the satisfaction of the court, the court shall allow a temporary writ of injunction to abate and prevent the continuance or recurrence of the nuisance.
  2. On granting the temporary writ, the court shall require a bond on the part of the applicant to the effect that the applicant will pay to the enjoined defendant such damages, not exceeding an amount to be specified, as the defendant sustains by reason of the injunction should the court finally decide that the applicant was not entitled to the injunction. No bond shall be required where the proceeding is instituted by the city attorney.
  3. The action shall be filed in the circuit court and have precedence over all other actions except election contests, hearings on injunctions, and hearings under §§ 5-74-109 and 16-105-403.

History. Acts 1999, No. 1561, § 4.

14-54-1505. Dismissal for want of prosecution.

  1. If the complaint is filed by a citizen, it shall not be dismissed by the plaintiff for want of prosecution except upon a sworn statement made by the plaintiff setting forth the reasons why the action shall be dismissed and by dismissal ordered by the court.
  2. If the action is brought by a citizen and the court finds there was no reasonable ground or cause for the action, costs shall be assessed against the plaintiff.

History. Acts 1999, No. 1561, § 5.

14-54-1506. Order of abatement — Lien for costs — Enforcement.

  1. If the existence of the nuisance is established in the action, an order of abatement shall be entered as part of the judgment in the case, and plaintiff's costs in carrying out the order shall constitute a lien upon the property, building, or place.
  2. The lien is enforceable and collective by execution issued by order of the court.

History. Acts 1999, No. 1561, § 6.

14-54-1507. Order of abatement — Damages.

  1. If the existence of the nuisance is established in the action, an order of abatement shall be entered as a part of the judgment. The order shall provide for any appropriate equitable relief as determined by the court to be necessary to abate the nuisance and may further provide, if determined to be the least restrictive alternative available to effectively accomplish the abatement, for the closing of the building or place for such period of time as determined to be necessary by the court as adequate to abate the nuisance.
  2. An alternative to closure may be considered only as provided in this section.
  3. If the court finds that any vacancy resulting from closure of the building or place may create a nuisance or that closure is otherwise harmful to the community, in lieu of ordering the building or place closed, the court may order the person who is seeking to keep the premises open to pay damages to the city in an amount equal to the fair market rental value of the building or place, for such period of time as determined appropriate by the court.
  4. These funds shall be used either to investigate and litigate future nuisance abatement actions or by the city for the purpose of neighborhood safety and enhancement programs.
  5. For purposes of this section, the actual amount of rent being received for the rent of the building or place or the existence of any vacancy therein may be considered, but shall not be the sole determinant of the fair market rental value.
  6. Expert testimony may be used to determine the fair market rental value.
  7. In addition, the court may award damages equal to the plaintiff's costs in the investigation and litigation of the abatement action, not to exceed five thousand dollars ($5,000), against any or all of the defendants based upon the severity of the nuisance and its duration.
  8. The damages may be collected in any manner provided for the collection of any civil judgment.
  9. While the order of abatement remains in effect, the building or place is in the custody of the court.

History. Acts 1999, No. 1561, § 7.

14-54-1508. Release of the building to owner.

  1. If the owner of the building or place has not been guilty of any contempt of court in the proceedings and appears and pays all costs, fees, and allowances that are liens on the building or place and files a bond in the full value of the property conditioned that the owner will immediately abate any nuisance that may exist at the building or place and prevent it from being a nuisance within a period of one (1) year thereafter, the court, if satisfied of the owner's good faith, may order the building or place to be delivered to the owner and the order of abatement canceled so far as it may relate to the property.
  2. The release of property under the provisions of this section does not release it from any judgment, lien, penalty, or liability to which it may be subject.

History. Acts 1999, No. 1561, § 8.

14-54-1509. Lien — Enforcement.

  1. Whenever the owner of a building or place upon which the act or acts constituting contempt have been committed or the owner of any interest therein has been guilty of contempt of court and fined in any proceedings under this subchapter, the fine is a lien upon the building or place to the extent of the owner's interest in it.
  2. The lien is enforceable and collectible by execution issued by order of the court.

History. Acts 1999, No. 1561, § 9.

14-54-1510. Criminal violations — Penalties.

A violation of or disobedience of the injunction or order for abatement is punishable as contempt of court by a fine of not less than two hundred dollars ($200) nor more than one thousand dollars ($1,000) or by imprisonment in the county jail for not less than one (1) month nor more than six (6) months, or both.

History. Acts 1999, No. 1561, § 10.

Subchapter 16 — The Affordable Housing Accessibility Act

Effective Dates. Acts 2003, No. 624, § 2: Oct. 1, 2003.

14-54-1601. Title.

This subchapter shall be known and cited as the “Affordable Housing Accessibility Act”.

History. Acts 2003, No. 624, § 1.

14-54-1602. Definitions.

As used in this subchapter:

  1. “Federal standards” means the federal Manufactured Home Construction and Safety Standards, 24 C.F.R. pt. 3280, promulgated by the United States Department of Housing and Urban Development under the authority of 42 U.S.C. § 5401 et seq., as it existed on January 1, 1976;
  2. “Manufactured home” means a dwelling unit constructed in a factory in accordance with the federal standards and meeting the definitions set forth in the federal standards and under § 20-25-102; and
  3. “Mobile home” means a dwelling unit constructed in a factory before the enactment of the federal standards.

History. Acts 2003, No. 624, § 1.

14-54-1603. Municipal construction and installation standards.

  1. Municipalities shall not establish or continue in effect any ordinance or regulation that sets standards for manufactured home construction or safety that are not identical to the federal standards.
  2. Municipalities shall not establish or continue in effect any ordinance or regulation that sets standards for manufactured home installation that are inconsistent with the state standards for installation set forth under § 20-25-106 and the design of the manufacturer.

History. Acts 2003, No. 624, § 1.

14-54-1604. Municipal regulation of manufactured homes.

    1. Municipalities that have zoning ordinances shall allow the placement of manufactured homes on individually owned lots in at least one (1) or more residential districts or zones within the municipality.
    2. Municipalities shall not establish or continue in effect any ordinance or regulation that restricts the placement of manufactured homes only in mobile home parks, subdivisions, or land-lease communities.
  1. Municipalities may establish reasonable regulations or conditions for the placement of manufactured homes within the jurisdiction, including, but not limited to:
    1. Perimeter foundation enclosures;
    2. Connection to utilities;
    3. Building setbacks;
    4. Side or rear yard offsets;
    5. Off-street parking;
    6. Construction of carports, garages, and other outbuildings;
    7. Entries and exits, porches, decks, and stairs; and
    8. Other regulations or conditions that are applicable to other single-family dwellings in the same residential district or zone.
  2. Municipalities shall not impose regulations or conditions on manufactured homes that prohibit the placement of manufactured homes or that are inconsistent with the regulations or conditions imposed on other single-family dwellings permitted in the same residential district or zone.

History. Acts 2003, No. 624, § 1.

14-54-1605. Regulation of mobile homes.

Municipalities may prohibit the placement of mobile homes in all residential districts or zones or may restrict the placement of mobile homes to designated mobile home parks, subdivisions, or land-lease communities.

History. Acts 2003, No. 624, § 1.

14-54-1606. Exceptions.

  1. This subchapter shall not supersede, prevent, or preempt any valid covenants or bills of assurance.
  2. This subchapter shall not require that manufactured homes be permitted in historic districts.

History. Acts 2003, No. 624, § 1.

Subchapter 17 — Criminal Nuisance Abatement Boards

Effective Dates. Acts 2003, No 1190, § 11: Apr. 9, 2003. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that municipalities in the state have the authority to create criminal nuisance abatement boards; that this act is needed to provide proper procedures for the boards and procedures for appeals to the circuit court; and that this act is immediately necessary because without proper procedures citizens of the state could be harmed by actions of the board without recourse to the circuit courts. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Cross References. Common nuisance declared, § 16-105-402.

Municipal corporations' powers and restrictions, § 14-54-102.

Premises and real property used by criminal gangs, organizations, or enterprises, or used by anyone in committing a continuing series of violations — Civil remedies, § 5-74-109.

Prostitution, § 5-70-102.

14-54-1701. Legislative intent.

It is the intent of the General Assembly to promote, protect, and improve the health, safety, and welfare of the citizens of the municipalities of this state by authorizing the creation of criminal nuisance abatement boards with authority to impose remedies, administrative fines, and other noncriminal penalties in order to provide an equitable, expeditious, effective, and inexpensive method of abating public nuisance as defined by state law.

History. Acts 2003, No. 1190, § 1.

14-54-1702. Creation of criminal nuisance abatement board.

  1. Any city of the first class or city of the second class by ordinance may create a quasi-judicial board to hear complaints regarding places or premises used as public or common nuisance as defined by §§ 5-74-109, 14-54-1502, and 16-105-402 or that are used for prostitution as defined by § 5-70-102.
  2. A criminal nuisance abatement board created under this subchapter shall be composed of five (5) citizens of the creating city who shall be appointed by the governing body of the city.
  3. The governing body of the city shall select one (1) of the members of the board to call the first meeting and serve as chair at the first meeting.
    1. At the first meeting, members of the board shall draw lots so that:
      1. One (1) member shall serve a three-year term;
      2. Two (2) members shall serve a four-year term; and
      3. Two (2) members shall serve a five-year term.
    2. All successors appointed to the board shall serve one (1) five-year term.
  4. The members shall elect a chair and any other officers needed to conduct the business of the board.
  5. The governing body of the city shall provide necessary staff for the board.
  6. The board may promulgate rules and regulations needed to conduct the hearings on the complaints concerning places and premises used as public or common nuisances.

History. Acts 2003, No. 1190, § 2.

14-54-1703. Filing of complaint with board.

    1. Any employee, officer, or resident of the city may bring a sworn complaint before the criminal nuisance abatement board against the owner of a place or premises that may constitute a nuisance.
    2. A hearing shall be conducted after the owner of the place or premises has been given ten (10) calendar days' notice of the hearing.
  1. The notice shall:
    1. Be provided to the owner of the place or premises according to Rule 4(d) of the Arkansas Rules of Civil Procedure; and
    2. Include a copy of the complaint and a copy of the ordinance creating the board.
  2. If notice of the hearing is made by personal service, the notice may be served by a certified law enforcement officer or a certified court process server.

History. Acts 2003, No. 1190, § 3.

14-54-1704. Hearing and board findings.

  1. At a hearing:
    1. A criminal nuisance abatement board may consider any evidence, including evidence of the general reputation of the place or premises; and
    2. The owner of the premises shall have an opportunity to present evidence in his or her defense.
  2. All witnesses at a hearing shall be sworn.
    1. After the hearing, the board may declare the place or premises to be:
      1. A public nuisance as defined by §§ 5-74-109, 14-54-1502, and 16-105-402; or
      2. Used for prostitution as defined by § 5-70-102.
    2. After declaring a place or premises a nuisance, the board shall make a factual determination as to the reasons why the board finds that a public nuisance exists.
  3. The sworn testimony and the board's findings shall become a part of the record.

History. Acts 2003, No. 1190, § 4.

14-54-1705. Order of abatement.

  1. If the criminal nuisance abatement board declares a place or premises to be a public nuisance, it may enter an order requiring the owner of the place or premises to adopt such procedure as may be appropriate under the circumstances to abate any such nuisance.
  2. The order may include, but is not limited to, the following:
    1. Prohibiting the maintenance of the nuisance;
    2. Prohibiting the operation or maintenance of the place or premises, including the closure of the place or premises or any part of the premises for a period no longer than the effective date of the order;
    3. Prohibiting the conduct, operation, or maintenance of any business or activity on the premises which is conducive to the nuisance;
    4. Ordering the eviction of tenants of the place or premises who are responsible for the criminal conduct or who allow or permit another to commit the criminal conduct;
    5. Ordering the owner of the place or premises or the owner's agents to perform criminal background checks of tenants before renting the property; or
    6. Ordering the owner to bring the place or premises into compliance with state and local safety codes before allowing the reoccupation of the property.
  3. The order must include a statement stating that violations of this order may be punishable by a fine of not more than two hundred fifty dollars ($250) for each day that violations of the order continue or that the public nuisance continues to exist.

History. Acts 2003, No. 1190, § 5.

14-54-1706. Effective date of an order.

  1. A finding or order entered pursuant to this subchapter shall become effective seven (7) calendar days after the order has been posted on the subject premises and mailed to the owner's last known address by first class mail.
  2. The order shall expire after one (1) year after the effective date or at such earlier time as is stated in the order.
  3. The order may be stayed pending appeal to circuit court pursuant to § 14-54-1707.

History. Acts 2003, No. 1190, § 6.

14-54-1707. Appeals to circuit court.

  1. Within thirty (30) days after an order or decision has been entered by the criminal nuisance abatement board according to the provisions in this subchapter, any party may appeal to a circuit court for a de novo review on the record.
  2. If an appeal is filed, the decision or order of the board shall remain in effect unless stayed by the circuit court.

History. Acts 2003, No. 1190, § 7.

14-54-1708. Violations of orders or continuations of nuisance.

  1. If an order that has been entered is violated, the criminal nuisance abatement board on its own or pursuant to a complaint may hold a hearing on whether the order has been violated or whether or not a public nuisance continues to exist.
  2. If the board finds that the public nuisance continues to exist or that the order has been violated, the board may impose a civil penalty of not more than two hundred fifty dollars ($250) for each day that the order is violated or that the nuisance continues to exist.
  3. Before such a hearing may be held, the owner must be given ten (10) calendar days' notice in writing of the hearing according to methods stated in Rule 4(d) of the Arkansas Rules of Civil Procedure.
  4. The notice must state that if the board finds that the nuisance continues to exist or that the order has been violated, the board may impose a fine of not more than two hundred fifty dollars ($250) for each day that the order has been violated or that the nuisance has continued to exist.
  5. The maximum amount of a civil penalty that may be imposed is ten thousand dollars ($10,000).
  6. In addition to a civil penalty, the board may award costs of a successful complainant not to exceed one thousand dollars ($1,000).
  7. All civil penalties imposed shall be used by the local police department for nuisance abatement purposes.
  8. Any civil penalty or costs awarded by the board may be appealed to the circuit court within thirty (30) days.
  9. Any order imposing costs or civil penalties not appealed to circuit court may be filed with the circuit clerk's office and constitutes a judgment of record and a lien against the nuisance property.

History. Acts 2003, No. 1190, § 8.

14-54-1709. Supplemental measure.

  1. This subchapter does not restrict the right of any person or government official from proceeding against a public nuisance by any other means.
  2. This subchapter is supplemental to all other laws and any other powers of a city of the first class or city of the second class.

History. Acts 2003, No. 1190, § 9.

14-54-1710. Immunity.

  1. The criminal nuisance abatement board, its individual members, and city employees assisting the board are immune from suit or action for their activities in discharge of their duties under this subchapter to the full extent of judicial immunity.
  2. Except for perjury and false swearing, complainants and witnesses are absolutely immune from suit or action for all communications with the board and all statements made within the nuisance abatement process.

History. Acts 2003, No. 1190, § 10.

Chapter 55 Ordinances of Municipalities

Research References

ALR.

Ordinance prohibiting picketing, parading, demonstrating or appearing in public while masked or disguised. 2 A.L.R.4th 1241.

Ordinance prohibiting use of obscene language in public. 2 A.L.R.4th 1331.

Ordinance establishing rent control benefit or rent subsidy for elderly tenants. 5 A.L.R.4th 922.

Ordinances prohibiting profanity or profane swearing or cursing. 5 A.L.R.4th 956.

Ordinances requiring sex-oriented businesses to obtain operating licenses. 8 A.L.R.4th 130.

Right of municipal corporation to review of unfavorable decision in action or prosecution for violation of ordinance. 11 A.L.R.4th 399.

Ordinance restricting number of unrelated persons who can live together in residential zone. 12 A.L.R.4th 238.

Ordinance protecting landmarks. 18 A.L.R.4th 990.

Ordinances prohibiting or regulating advertising of intoxicating liquors. 20 A.L.R.4th 600.

Ordinance requiring compliance with housing standards before rent increase or possession by new tenant. 20 A.L.R.4th 1246.

Ordinance making it offense to have possession of open or unsealed alcoholic beverage in public place. 39 A.L.R.4th 668.

Validity of state or municipal tax or license fee upon occupation of practicing law. 50 A.L.R.4th 467.

Validity of local regulation of hazardous waste. 67 A.L.R.4th 822.

Validity, construction, and effect of requirement under state statute or local ordinance giving local or locally qualified contractors a percentage preference in determining lowest bid. 89 A.L.R.4th 587.

Validity of state or local government regulation requiring private school to report attendance and similar information to government (post-Yoder cases). 8 A.L.R.5th 875.

Validity of ordinances restricting location of “adult entertainment” or sex-oriented businesses. 10 A.L.R.5th 538.

Am. Jur. 56 Am. Jur. 2d, Mun. Corp., § 343 et seq.

C.J.S. 62 C.J.S., Mun. Corp., § 411 et seq.

Subchapter 1 — General Provisions

Effective Dates. Acts 1875, No. 1, § 95: effective on passage.

Case Notes

In General.

The general powers conferred in this subchapter do not enlarge the powers conferred in § 14-54-103. Tuck v. Waldron, 31 Ark. 462 (1876).

14-55-101. Authority to enact.

Municipal corporations shall have the power to make and publish from time to time bylaws or ordinances, not inconsistent with the laws of the state, for carrying into effect or discharging the powers or duties conferred by the provisions of this subtitle.

History. Acts 1875, No. 1, § 22, p. 1; C. & M. Dig., § 7493; Pope's Dig., § 9542; A.S.A. 1947, § 19-2401.

Case Notes

Evidence.

There is a presumption in favor of a municipal ordinance, and one who challenges its validity alleging it to be arbitrary, unreasonable, or discriminatory should make it appear so by clear and satisfactory evidence. City of Ft. Smith v. Van Zandt, 197 Ark. 91, 122 S.W.2d 187 (1938).

No Authority to Regulate.

Incorporated town could not require jeweler to pay license for doing business. Town of Mena v. Smith, 64 Ark. 363, 42 S.W. 831 (1897).

Municipal corporations were held not authorized to regulate hotels. Bragg v. Adams, 180 Ark. 582, 21 S.W.2d 950 (1929).

Publication of Ordinances.

The burden of showing that there was no publication of ordinance is on the person accused who interposes that defense. City of North Little Rock v. Kirk, 173 Ark. 554, 292 S.W. 993 (1927).

Section 14-55-206(a)(1)(A), read in conjunction with this section, clearly gives only the municipality the power to publish ordinances. Phillips v. City of Eureka Springs, 312 Ark. 57, 847 S.W.2d 21 (1993).

Subjects of Regulation.

Theaters are proper subjects for police regulation, and an ordinance regulating the construction of moving picture theaters alone is not void because it does not apply to other theaters or places of amusement. City of N. Little Rock v. Rose, 136 Ark. 298, 206 S.W. 449 (1918).

Sunday Laws.

Ordinance that prohibited the operation of grocery stores and meat markets on Sunday was held constitutional. Hickinbotham v. Williams, 227 Ark. 126, 296 S.W.2d 897 (1956), cert. denied, 353 U.S. 961, 77 S. Ct. 867 (1957).

Violations.

Where violation of ordinance depended on whether two or more neighbors had filed a written petition, it was in conflict with Ark. Const., Art. 2, § 18, relating to privileges and immunities of citizens. City of Springdale v. Chandler, 222 Ark. 167, 257 S.W.2d 934 (1953).

14-55-102. Purposes generally.

Municipal corporations shall have power to make and publish bylaws and ordinances, not inconsistent with the laws of this state, which, as to them, shall seem necessary to provide for the safety, preserve the health, promote the prosperity, and improve the morals, order, comfort, and convenience of such corporations and the inhabitants thereof.

History. Acts 1875, No. 1, § 22, p. 1; C. & M. Dig., § 7494; Pope's Dig., § 9543; A.S.A. 1947, § 19-2401.

Research References

U. Ark. Little Rock L. Rev.

Justin Craig, Note: Municipal Police Power & Its Adverse Effects on Small Businesses in Arkansas: A Proposal for Reform, 36 U. Ark. Little Rock L. Rev. 177 (2014).

Case Notes

Health.

Ordinance providing that any physician who, for the purpose of procuring patients, employed any solicitor, capper, or drummer or subsidized any hotel or boarding house shall be deemed guilty of a misdemeanor was valid. Burrow v. City of Hot Springs, 85 Ark. 396, 108 S.W. 823 (1908).

Ordinance granting exclusive privilege of removing deposits from unsewered privies within municipal limits is a valid exercise of the police power if the ordinance is reasonable in its terms and designed solely for protection of public health. Dreyfus v. Boone, 88 Ark. 353, 114 S.W. 718 (1908).

Municipalities may regulate the sale of milk and fresh meats by requiring that they be inspected before sale. Dreyfus v. Boone, 88 Ark. 353, 114 S.W. 718 (1908); Carpenter v. City of Little Rock, 101 Ark. 238, 142 S.W. 162 (1911).

By ordinance, municipality may provide for erection of municipal hospital. Cumnock v. City of Little Rock, 154 Ark. 471, 243 S.W. 57, 25 A.L.R. 608 (1922).

While municipal corporations, under general welfare clause, may require those who pursue avocation of plumbing to perform their work in such manner as not to endanger public health and safety, they have no power to prevent anyone from engaging in that occupation or placing restriction upon them so long as their work is not done in a manner detrimental to public welfare. Replogle v. City of Little Rock, 166 Ark. 617, 267 S.W. 353, 36 A.L.R. 1333 (1924).

Municipality is authorized to provide for inspection of all plumbing work done in the municipality and to impose a fee upon each person engaged in the trade for the purpose of defraying the expense of the inspection. Shaw v. Conway, 179 Ark. 266, 15 S.W.2d 411 (1929).

State's power to legislate in protection of public health has been granted and delegated to municipalities. City of Little Rock v. Smith, 204 Ark. 692, 163 S.W.2d 705 (1942).

Ordinance providing that whenever a person who, upon examination, is found to be infected with a venereal disease in a communicable state fails to take treatment adequate for the protection of public health, municipal health officer may commit that person to a hospital or other place within the state for treatment was held not unconstitutional on ground the regulations were unreasonable. City of Little Rock v. Smith, 204 Ark. 692, 163 S.W.2d 705 (1942).

Municipality may regulate location of livery stables, but this regulation must not be arbitrary or unjust. City of Springdale v. Chandler, 222 Ark. 167, 257 S.W.2d 934 (1953).

A town has the authority to legislate for the protection of public health. Phillips v. Town of Oak Grove, 333 Ark. 183, 968 S.W.2d 600 (1998).

Morals, Etc.

Municipalities may, by ordinance, prohibit intoxication on streets and public places. DeWitt v. La Cotts, 76 Ark. 250, 88 S.W. 877, 1905 Ark. LEXIS 34 (1905).

Ordinance appropriating money to welfare association organized to help poor and unfortunate of municipality is valid. Bourland v. Pollock, 157 Ark. 538, 249 S.W. 360 (1923).

Municipality has no authority to adopt ordinance providing that the mayor or chief of police may summon any person before such officer to answer whether he knows of any violations of the criminal laws of the city and to impose a fine for refusal to answer the question. Waldrum v. Wilbanks, 171 Ark. 321, 283 S.W. 979 (1926).

Ordinance relating to storage of motor vehicles abandoned on streets is valid. Means v. American Equitable Assurance Co., 186 Ark. 83, 52 S.W.2d 737 (1932).

Provisions authorizing municipality to regulate construction, alteration, and repair of buildings by passing ordinances for the general welfare was held not to authorize ordinance establishing building and setback lines. City of Stuttgart v. Strait, 212 Ark. 126, 205 S.W.2d 35 (1947).

Ordinance requiring places of business in municipality to remain closed from midnight to four a.m. whose purpose was to prevent youths from driving noisily about the streets during this period was in excess of municipality's delegated authority relative to enactment of ordinances, since this purpose could have been accomplished by directly prohibiting the objectionable conduct. Dyess v. Williams, 247 Ark. 155, 444 S.W.2d 701 (1969).

Prosperity.

Municipality did not abuse its discretion in enacting ordinance for establishing of parking meters in front of business even though business was deprived of suitable loading and unloading space. City of Marianna v. Gray, 220 Ark. 468, 248 S.W.2d 379 (1952).

Safety.

Municipality could not bind itself to pay for levee. Newport v. Batesville & B. Ry., 58 Ark. 270, 24 S.W. 427 (1893).

Power of municipality to prohibit, by ordinance, filling stations and other service appliances on streets, alleys, or sidewalks within the fire limits of the municipality is not limited by this section. Sander v. City of Blytheville, 164 Ark. 434, 262 S.W. 23 (1924).

Municipal council has no statutory power to permit permanent operation and maintenance of a filling station in the street, and such a license, if granted, would confer no vested or irrevocable right to operate a filling station. Sander v. City of Blytheville, 164 Ark. 434, 262 S.W. 23 (1924).

Municipality has power and duty to make reasonable provision for the safety of persons and property using its streets by the enactment of ordinances, resolutions, or bylaws looking to that end, and the municipal authorities have a wide discretion on these matters. City of Ft. Smith v. Van Zandt, 197 Ark. 91, 122 S.W.2d 187 (1938).

Resolution authorizing construction of dividing curb along center of boulevard, making it a four-lane highway and permitting crossings only at street intersections, was held not arbitrary, unreasonable, or discriminatory against owner of tourist camp in center of a long block, whose prospective customers would be prevented from turning to the left into his property, but would have to drive to the next intersection and return. City of Ft. Smith v. Van Zandt, 197 Ark. 91, 122 S.W.2d 187 (1938).

Whether a community shall be invaded by construction and operation of a filling station is a matter that may be regulated, even though the station, per se, is not a nuisance. Van Hovenberg v. Holeman, 201 Ark. 370, 144 S.W.2d 718 (1940).

Prohibition against erecting and operating filling stations without permission is a regulation within municipality's police power. Van Hovenberg v. Holeman, 201 Ark. 370, 144 S.W.2d 718 (1940).

Municipalities have power to pass ordinances regulating use of streets by trucks. House v. City of Texarkana, 225 Ark. 162, 279 S.W.2d 831 (1955).

Statutory provisions relating to motor vehicles did not repeal or supercede this section or effect the authority of municipality to regulate use of streets by trucks. House v. City of Texarkana, 225 Ark. 162, 279 S.W.2d 831 (1955).

In light of the devastation caused by a tornado, the city had the authority to adopt an ordinance which added new requirements for the construction and anchoring of manufactured homes. Smith v. City of Arkadelphia, 336 Ark. 42, 984 S.W.2d 392 (1999).

14-55-103. Duty to enact.

It is the duty of municipal corporations to publish such bylaws and ordinances as shall be necessary to:

  1. Secure such corporations and their inhabitants against injuries by fire, thieves, robbers, burglars, and other persons violating the public peace;
  2. Suppress riots, gambling, and indecent and disorderly conduct; and
  3. Punish all lewd and lascivious behavior in the streets and other public places.

History. Acts 1875, No. 1, § 22, p. 1; C. & M. Dig., § 7494; Pope's Dig., § 9543; A.S.A. 1947, § 19-2401.

Case Notes

Vagrancy.

The provisions of Ark. Const., Art. 7, § 28, relating to jurisdiction of the county courts, did not abrogate the jurisdiction of municipal courts to try and punish vagrancy. Brizzolari v. State, 37 Ark. 364 (1881).

Subchapter 2 — Procedures for Adoption

Effective Dates. Acts 1875, No. 1, § 95: effective on passage.

Acts 1949, No. 36, § 3: Feb. 2, 1949. Emergency clause provided: “Whereas, the proper recording of municipal ordinances is necessary for the enforcement of municipal laws, and whereas, this Act is necessary for the protection of the public peace, health and safety, an emergency is hereby declared to exist and this Act shall be in full force and effect from and after its passage and approval.”

Acts 1949, No. 267, § 5: Mar. 10, 1949.

Acts 1993, No. 295, § 6: Mar. 1, 1993. Emergency clause provided: “It is hereby found and determined by the General Assembly that the laws of the state of Arkansas pertaining to notice of the adoption of ordinances by municipalities are, in some cases, inconsistent, conflicting and confusing; that, following the adoption, in 1987, of Title 19, Chapter 9, Subchapter 6 of the Arkansas Code of 1987 Annotated (requiring published notice and public hearing prior to the adoption of ordinances authorizing revenue bonds), prior laws requiring similar notice with respect to municipal waterworks revenue bonds are redundant; and that it is essential that there be no confusion regarding the conduct of governmental proceedings by Arkansas municipalities. Therefore an emergency is hereby declared to exist and this act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 2005, No. 1552, § 2: Apr. 5, 2005. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the laws concerning the effective dates of local ordinances are in need of immediate clarification; that the orderly administration of cities requires certainty in the application of local laws; and that this act is necessary to ensure that local residents and city administration have clear direction in the applicability and effective dates of local ordinances. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

14-55-201. Only one subject.

No bylaw or ordinance shall contain more than one (1) subject, which shall be clearly expressed in its title.

History. Acts 1875, No. 1, § 86, p. 1; C. & M. Dig., § 7502; Pope's Dig., § 9562; A.S.A. 1947, § 19-2402.

Case Notes

Stipulations.

Where parties stipulated that ordinance was legally submitted to vote of qualified electors, they were bound by their stipulation and could not assert that it was invalid as containing more than one subject. Rooker v. City of Little Rock, 234 Ark. 372, 352 S.W.2d 172 (1961).

Titles.

Resolution of municipal counsel was not void for failure to contain a proper title as required by this section where it was apparent that one subject was clearly expressed in its title. Adams v. Sims, 238 Ark. 696, 385 S.W.2d 13 (1964).

City clerk was not entitled to quo warranto relief finding Harrisburg, Ark., Ordinance 86-001 created the office of city clerk/treasurer because, inter alia, (1) the ordinance only dealt with funding such a position, and (2) this section barred an ordinance from dealing with more than one subject. King v. City of Harrisburg, 2014 Ark. 183 (2014).

Zoning Ordinances.

The court would reject the contention that a zoning ordinance dealt with multiple subjects as it regulated both landscaping and signage; the ordinance only dealt with one subject, that is, the zoning rules for a newly constructed portion of a road. Craft v. City of Fort Smith, 335 Ark. 417, 984 S.W.2d 22 (1998).

Cited: Batesville v. Ball, 100 Ark. 496, 140 S.W. 712 (1911).

14-55-202. Reading requirement.

  1. All bylaws and ordinances of a general or permanent nature shall be fully and distinctly read on three (3) different days unless two-thirds (2/3) of the members composing the municipal council shall dispense with the rule.
  2. In a city with a population of less than fifteen thousand (15,000) persons in the most recent federal decennial census, if the ordinance under consideration has been submitted to and approved by the electors of the municipality and is being amended, repealed, or otherwise altered by the municipal council, then the ordinance shall be fully and distinctly read on three (3) different days not less than twenty-eight (28) days apart.

History. Acts 1875, No. 1, § 86, p. 1; C. & M. Dig., § 7502; Pope's Dig., § 9562; A.S.A. 1947, § 19-2402; Acts 2017, No. 1052, § 1.

Amendments. The 2017 amendment added the (a) designation; and added (b).

Case Notes

Applicability.

This section has no applicability to ordinance entering into a special contract such as an electric light franchise. Barnett v. Mays, 153 Ark. 1, 239 S.W. 379 (1922).

This section has no applicability to ordinance entering into a contract, such as electric light and water franchise, as the fact that a franchise created by ordinance runs for a long period of time does not make ordinance creating it general or permanent. City of El Dorado v. Citizens' Light & Power Co., 158 Ark. 550, 250 S.W. 882 (1923).

Resolutions.

Provisions of this section regarding reading of ordinances on three separate days apply only to bylaws and ordinances of a general or permanent nature; it does not specify resolutions and would not apply to a resolution held to be not an ordinance and which could not be construed to be of a general or permanent nature. Adams v. Sims, 238 Ark. 696, 385 S.W.2d 13 (1964).

Annexation of lands from a city to a municipality, at the request of the lands' owners, was not invalid due to a failure to read the annexation resolutions on three different days or to publish the resolutions because (1) the resolutions were not general, as the resolutions encompassed only annexed areas, and (2) the resolutions were not permanent, as the resolutions were terminable without repeal. City of Rockport v. City of Malvern, 2012 Ark. 445, 424 S.W.3d 870 (2012).

Suspension of Rules.

Where record of passage of ordinance fails to show that ordinance was passed under suspension of the rules, it may be amended to show that fact at a subsequent meeting of the municipal council if all the members present at the latter meeting were present when the ordinance was passed. White v. Town of Clarksville, 75 Ark. 340, 87 S.W. 630 (1905).

Ordinance that was read three times and passed at same meeting is not invalid because record does not show number of aldermen voting to suspend the rule, if it does show that two-thirds of the councilmen were present and voted to suspend the rule. McLeod v. Purnell, 164 Ark. 596, 262 S.W. 682 (1924).

Adoption of resolution by unanimous vote of all members of municipal council dispenses with statute requirement. Young v. Gurdon, 169 Ark. 399, 275 S.W. 890 (1925).

Adoption of resolution by unanimous vote of all members of municipal council dispenses with requirement of this section for the reading of bylaws and ordinances on three different days. El Dorado v. Jacobs, 174 Ark. 98, 294 S.W. 411 (1927).

Law requires ordinances to be read fully and distinctly on three different days, unless two-thirds of the members composing the municipal council shall dispense with the rule; and when rules have been suspended, an ordinance, unlike a bill in the legislature, need not be read again. Vaughan v. City of Searcy, 199 Ark. 585, 135 S.W.2d 319 (1940).

Legal effect of unanimous action by municipal council is to dispense with the need for formally suspending the rules; therefore an ordinance is not invalid for failure to read the proposed measure a third time. Holman v. City of Dierks, 217 Ark. 677, 233 S.W.2d 392 (1950).

Passage of Springtown, Ark., Ordinance No. 2014-03 was in direct violation of this section, and as a result, was void where the town council consisted of five members, but only three members voted to dispense with the reading requirement. The fact that the other two council members had abstained due to a conflict did not alter the requirement that four members' votes were needed. Town of Springtown v. Evans, 2020 Ark. App. 176, 598 S.W.3d 538 (2020) (decided under pre-2017 version of statute).

Cited: Batesville v. Ball, 100 Ark. 496, 140 S.W. 712 (1911).

14-55-203. Voting requirements for passage — Effective dates.

  1. On the passage of every bylaw, ordinance, resolution, or order to enter into a contract by the council of any municipal corporation, the yeas and nays shall be called and recorded.
  2. To pass any bylaw, ordinance, resolution, or order, a concurrence of a majority of a whole number of members elected to the council shall be required.
      1. The effective dates for ordinances of a general or permanent nature and other local measures of a general or permanent nature of cities of the first class, cities of the second class, and incorporated towns shall be upon publication or posting as is otherwise required by law, but not before ninety-one (91) days after passage by the governing body of the city or town.
      2. In the event that the governing body of the city or town has by ordinance fixed the deadline for filing referendum petitions upon ordinances or other local measures at not less than thirty (30) days nor more than ninety (90) days after passage of an ordinance or measure, then the effective date shall be the day next following the deadline fixed in the ordinance.
      3. An ordinance containing an emergency clause shall go into effect immediately upon passage or at the time specified by the emergency clause, regardless of publication or posting, but an emergency clause shall not be effective to impose any fine, penalty, forfeiture, or deprivation of liberty or property until after the ordinance has been published or posted as is otherwise required by law.
    1. The effective date of an ordinance that is not of a general or permanent nature of a city of the first class, city of the second class, or incorporated town is the date of passage of the ordinance unless a later effective date is provided in the ordinance.

History. Acts 1875, No. 1, § 29, p. 1; C. & M. Dig., § 7528; Pope's Dig., § 9588; A.S.A. 1947, § 19-2403; Acts 2001, No. 1187, § 1; 2005, No. 1552, § 1.

Amendments. The 2001 amendment added (c).

The 2005 amendment inserted “of a general or permanent nature” twice in (c)(1)(A); and added (c)(2).

Case Notes

Contracts.

By keeping and using goods purchased under an unauthorized contract, municipality is estopped to deny validity of purchase by reason of informalities in execution of contract. City of Ft. Smith v. United States Rubber Co., 184 Ark. 588, 42 S.W.2d 1004 (1931).

Contract illegally entered into or entered into without authority by agent or officer of a municipal corporation may be ratified and rendered binding upon the municipal corporation by affirmative action on its part, or some negative action, which would amount to an approval of the contract. Day v. Malvern, 195 Ark. 804, 114 S.W.2d 459 (1938).

Oral contract between property owner and mayor on behalf of municipality by which municipality agreed to lower lot to street level in consideration of bed of gravel thereon needed for street construction was held ratified by municipality by its affirmative action in paying carpenter and helper to move house to another part of lot and in using gravel removed from the lot. Day v. Malvern, 195 Ark. 804, 114 S.W.2d 459 (1938).

Where municipal water plant was turned over to board of managers by ordinance, which did not authorize employment of superintendent, contract made by board employing superintendent, not authorized or approved by municipality, was not binding; payment of superintendent's salary could be enjoined, but the contract being neither illegal nor immoral, superintendent could retain salary already received if not in excess of the actual value of his services. Gladson v. Wilson, 196 Ark. 996, 120 S.W.2d 732 (1938).

Failure to have agreement for lease of space on county property for street purposes authorized by a resolution under this section was not a fatal defect where municipality ratified agreement by performing obligations thereunder. Harrison v. Boone County, 238 Ark. 113, 378 S.W.2d 665 (1964).

Majority.

Where less than majority of qualified elected members of municipal council voted for approval of ordinance, injunction should have been granted. Van Hovenberg v. Holeman, 201 Ark. 370, 144 S.W.2d 718 (1940).

Mayors.

Mayor of second class city is a member of the municipal council of a second class city and thereby entitled to vote on the council's ordinances. Clark v. Mahan, 268 Ark. 37, 594 S.W.2d 7 (1980).

Mayor of city of the first class could break five-to-five city council tie vote to pass appropriation ordinance for the city's fiscal year. Gibson v. City of Trumann, 311 Ark. 561, 845 S.W.2d 515 (1993).

Passage.

Mere passage of resolution by municipal council does not create in anyone a vested right to demand that land be devoted forever to public use; legislative measures are, in the absence of vested rights, subject to repeal by later action of the legislative body. Hammon v. Dixon, 232 Ark. 537, 338 S.W.2d 941 (1960).

Recording.

Unless yeas and nays are recorded on passage of a resolution of municipal council making contract, it will be void. Culter v. Russellville, 40 Ark. 105 (1882); Frick v. Brinkley, 61 Ark. 397, 33 S.W. 527 (1895); Oglesby v. City of Ft. Smith, 105 Ark. 506, 152 S.W. 145 (1912); City of Mena v. Tomlinson Bros., 118 Ark. 166, 175 S.W. 1187 (1915); Gladson v. Wilson, 196 Ark. 996, 120 S.W.2d 732 (1938).

Ordinance was invalid where ayes and noes were not called and recorded. Natural Gas & Fuel Corp. v. Norphlet Gas & Water Co., 173 Ark. 174, 294 S.W. 52 (1927).

Failure to record names of those voting for and against an ordinance was not fatal to its validity, since this requirement applies only to ordinances authorizing the execution of contracts. Holman v. City of Dierks, 217 Ark. 677, 233 S.W.2d 392 (1950).

The purpose of recording votes is to make members of municipal council feel the responsibility of their action when important measures are before them, and to compel each member to bear his share in the responsibility, by a record of his action that should not afterwards be open to dispute. Hammon v. Dixon, 232 Ark. 537, 338 S.W.2d 941 (1960).

Where in recording passage of ordinance, the minutes recite that all the aldermen present voted in favor of it, this recording constitutes a substantial compliance with this section. Hammon v. Dixon, 232 Ark. 537, 338 S.W.2d 941 (1960).

14-55-204. Approval of appropriations.

All bylaws, ordinances, resolutions, or orders for the appropriation of money shall require for their passage or adoption the concurrence of a majority of the council members of any municipal corporation.

History. Acts 1875, No. 1, § 86, p. 1; C. & M. Dig., § 7502; Pope's Dig., § 9562; A.S.A. 1947, § 19-2402; Acts 2017, No. 879, § 35.

Amendments. The 2017 amendment substituted “council members” for “aldermen”.

Case Notes

Mayors.

Mayor of city of the first class could break five-to-five city council tie vote to pass appropriation ordinance for the city's fiscal year. Gibson v. City of Trumann, 311 Ark. 561, 845 S.W.2d 515 (1993).

Cited: Batesville v. Ball, 100 Ark. 496, 140 S.W. 712 (1911).

14-55-205. Recording and authentication.

All bylaws or ordinances after their passage shall be recorded in a book kept for that purpose and shall be authenticated by the signature of the presiding officer of the governing body and the clerk or recorder.

History. Acts 1949, No. 36, § 1; A.S.A. 1947, § 19-2404.

Research References

U. Ark. Little Rock L.J.

Heller and Sallings, Survey of Public Law, 3 U. Ark. Little Rock L.J. 296 (1980).

Survey of Arkansas Law: Public Law, 4 U. Ark. Little Rock L.J. 243 (1981).

Case Notes

Construction.

This section did not repeal § 14-55-402, relating to admissibility of copies of bylaws and ordinances in evidence. City of Benton v. Nethercutt, 264 Ark. 769, 574 S.W.2d 269 (1978).

Applicability.

This section applies only to bylaws and ordinances passed by a municipal council and is not applicable to resolutions passed by a council. Adams v. Sims, 238 Ark. 696, 385 S.W.2d 13 (1964).

Authentication.

Authentication by acting mayor and acting recorder is sufficient. Lackey v. Fayetteville Water Co., 80 Ark. 108, 96 S.W. 622 (1906) (decision under prior law).

Ordinance was legal though signed by mayor after his term of office had expired. Arkansas Light & Power Co. v. City of Paragould, 146 Ark. 1, 225 S.W. 435 (1920); Lewis v. Forrest City Special Imp. Dist., 156 Ark. 356, 246 S.W. 867 (1923) (decisions under prior law).

14-55-206. Publishing or posting requirements.

      1. All bylaws or ordinances of a general or permanent nature and all those imposing any fine, penalty, or forfeiture shall be published in some newspaper published in the municipality.
      2. In municipalities in which no newspaper is published, written or printed notice posted in five (5) of the most public places designated by the governing body in an ordinance or minutes of the governing body shall be deemed a sufficient publication of any law or ordinance.
    1. It shall be deemed a sufficient defense to any suit or prosecution of such fine, penalty, or forfeiture to show that no notice was given as provided herein.
  1. As to ordinances establishing rules and regulations for zoning, construction of buildings, the installation of plumbing, the installation of electric wiring, or other similar work, where such rules and regulations have been printed as a code in book form, the code or provisions thereof may be published by the municipality by reference to title of the code without further publication or posting thereof. However, no fewer than three (3) copies of the code shall be filed for use and examination by the public in the office of the clerk or recorder of the municipality after the adoption thereof if there is no electronic form of the code available for examination by the public.

History. Acts 1949, No. 36, § 1; A.S.A. 1947, § 19-2404; Acts 1993, No. 295, § 2; 2009, No. 25, § 1.

Amendments. The 1993 amendment, in (a)(1)(A), substituted “published in the municipality” for “of general circulation in the corporation”; in (a)(1)(B), substituted “In municipalities in which” for “In incorporated towns where” and substituted “designated by the governing body in an ordinance or minutes of the governing body” for “in the town”; in (a)(2), substituted “no notice was given as provided herein” for “no publication was made”; and in the last sentence of (b), substituted “no fewer” for “not less” and deleted “city” preceding “clerk”.

The 2009 amendment in (b) added “if there is no electronic form of the code available for examination by the public” and made a minor stylistic change.

Research References

U. Ark. Little Rock L.J.

Heller and Sallings, Survey of Public Law, 3 U. Ark. Little Rock L.J. 296 (1980).

Survey of Arkansas Law: Public Law, 4 U. Ark. Little Rock L.J. 243 (1981).

Case Notes

Construction.

This section did not repeal § 14-55-402, relating to admissibility of copies of bylaws and ordinances in evidence. City of Benton v. Nethercutt, 264 Ark. 769, 574 S.W.2d 269 (1978).

Applicability.

Former statute had no applicability to an ordinance entering into a special contract. Barnett v. Mays, 153 Ark. 1, 239 S.W. 379 (1922) (decision under prior law).

This section applies only to bylaws and ordinances passed by a municipal council and is not applicable to resolutions passed by a council. Adams v. Sims, 238 Ark. 696, 385 S.W.2d 13 (1964).

Annexation of lands from a city to a municipality, at the request of the lands' owners, was not invalid due to a failure to read the annexation resolutions on three different days or to publish the resolutions because (1) the resolutions were not general, as the resolutions encompassed only annexed areas, and (2) the resolutions were not permanent, as the resolutions were terminable without repeal. City of Rockport v. City of Malvern, 2012 Ark. 445, 424 S.W.3d 870 (2012).

Effective Date.

The effective date of an ordinance of municipality is the date of its publication. Eureka Springs v. Brightman, 243 Ark. 836, 422 S.W.2d 681 (1968).

Ordinance passed by unanimous vote of municipal council under suspension of rules and containing an emergency clause voted upon separately is effective upon adoption, its effectiveness not being suspended until publication. Kemp v. Simmons, 244 Ark. 1052, 428 S.W.2d 59 (1968).

Notice.

Written notice by manager of power company that installation of pumping plant had been completed per contract was acceptance of ordinance. Arkansas Light & Power Co. v. City of Paragould, 146 Ark. 1, 225 S.W. 435 (1920) (decision under prior law).

Where notice of hearing contained no statement that copies of a regulation or an ordinance and related documents were available for public examination, the notice did not comply with the statutory procedure by informing the public of the availability of the regulations prior to the passage of the ordinance. Brooks v. City of Benton, 308 Ark. 571, 826 S.W.2d 259 (1992).

Publication.

Fact that municipal records failed to show publication of ordinance was insufficient to show that it had not been published; and it was the burden of the person interposing failure of publication as a defense to prove that no publication was made. City of North Little Rock v. Kirk, 173 Ark. 554, 292 S.W. 993 (1927) (decision under prior law).

Resolution authorizing and directing mayor to take census of town for the purpose of raising it to a city of the second class as prayed for in petition signed by more than 10 qualified electors and filed with the recorder and subsequent resolution resolving that application be made to have town declared a city of the second class was held within the purview of this section and should have been published. McClellan v. Stuckey, 196 Ark. 816, 120 S.W.2d 155 (1938) (decision under prior law).

A “resolution” declaring need for a housing authority was in fact an ordinance and an “enactment” of both general and permanent character — general in that it applied to all citizens of the municipality and permanent in that it would be effective until repealed — and, therefore, required publication as provided in this section before final enactment. Eureka Springs v. Brightman, 243 Ark. 836, 422 S.W.2d 681 (1968).

Where General Assembly had provided for establishment of a police court, in lieu of a municipal court, by cities upon reaching first class status until such time as the governing body of the city determined that the city had sufficient funds to support a municipal court, such action by the General Assembly did not mean that a city of the first class could create a police court without first publishing an ordinance, bylaw, or other act creating such a court as required by this section. Landthrip v. City of Beebe, 268 Ark. 45, 593 S.W.2d 458 (1980).

Ordinance which applied to all commercial and residential customers and would remain in force until repealed was both permanent and general, and the post-enactment publication was mandatory. Invalidity of municipal ordinance for failure to comply with § 14-235-223 and this section was not cured by subsequent publication of ordinance. City of Ft. Smith v. O.K. Foods, Inc., 293 Ark. 379, 738 S.W.2d 96 (1987).

Scope of Authority.

This section authorizes adoption, by ordinance, of a preexisting code published in book form by referring to the code by title only in the publication of the ordinance, but does not authorize the adoption of an ordinance creating a code by publication of the title of the ordinance only. Thomas v. Vaughn, 249 Ark. 1043, 463 S.W.2d 102 (1971).

Subdivision (a)(1)(A), read in conjunction with § 14-55-101, clearly gives only the municipality the power to publish ordinances. Phillips v. City of Eureka Springs, 312 Ark. 57, 847 S.W.2d 21 (1993).

14-55-207. Adoption of technical codes by reference.

  1. Every municipality in the State of Arkansas is authorized by the passage of a municipal ordinance to adopt by reference technical codes, regulations, or standards, without setting forth the provisions of the code or parts thereof, if three (3) copies of the code, or the pertinent parts thereof, and any related documents are filed either electronically or by hard copy in the office of the clerk of the municipality for inspection and view by the public before the passage of the ordinance.
  2. The term “technical codes” shall include any building, zoning, health, electrical, or plumbing codes, and the term “regulations” shall include any criminal code of the State of Arkansas.
  3. It is the duty of the municipality to give a notice to the public, by publication in a paper of general circulation within the municipality, stating that copies of the code, or the pertinent parts thereof, and the related documents are open to public examination either electronically or by hard copy before the passage of the ordinance adopting the code.

History. Acts 1949, No. 267, §§ 1-3; A.S.A. 1947, §§ 19-2421 — 19-2423; Acts 2009, No. 25, § 2.

Amendments. The 2009 amendment inserted “either electronically or by hard copy” in (a) and (c); and made minor stylistic changes.

Case Notes

Notice.

Where notice of hearing contained no statement that copies of a regulation or an ordinance and related documents were available for public examination, the notice did not comply with the statutory procedure by informing the public of the availability of the regulations prior to the passage of the ordinance. Brooks v. City of Benton, 308 Ark. 571, 826 S.W.2d 259 (1992).

Zoning Map.

Prior to the passage of the ordinance adopting the code, the proposed zoning map must be available for public examination for a reasonable length of time. Brooks v. City of Benton, 308 Ark. 571, 826 S.W.2d 259 (1992).

Cited: Holt v. City of Maumelle, 647 F. Supp. 1529 (E.D. Ark. 1986).

Subchapter 3 — Referral to Electors

Preambles. Acts 1963, No. 218 contained a preamble which read:

“Whereas, requests for legislation are made to the City Councils and governing bodies of municipalities in cases where it is difficult for the aldermen to know the true desires of the people; and

“Whereas, in certain controversial matters the Council would prefer the people make their desires known by vote of the electors; and

“Whereas, at present there is no procedure by which a city council may refer a measure to the people and the electors can refer an ordinance only after the city council has enacted the ordinance and in some municipalities a period of two years must elapse before the people can exercise their rights under the Constitution to initiate a measure themselves;

“Now, therefore”….

Effective Dates. Acts 1981, No. 220, § 3: Feb. 26, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that there is confusion regarding the right of the people to exercise the initiative and referendum with respect to county and municipal measures; that this Act is designed to clarify this confusion and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Identical Acts 2015 (1st Ex. Sess.), Nos. 2 and 3, § 3: July 22, 2015. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act is essential to the public interest and operation of the state; that the acts at issue contain inadvertent engrossment errors; and that this act is necessary to correct the engrossment errors in order to avoid the potential confusion that may result if the engrossment errors are not corrected. Therefore, an emergency is declared to exist, and this act, being necessary for the preservation of the public peace, health, and safety, shall become effective on July 22, 2015.”

14-55-301. Proposed or adopted ordinances.

  1. The city council or governing body of any municipality, by a majority vote of its members, may refer any proposed ordinance to the people for adoption or rejection.
  2. The city council, or governing body, may at the time of, or within thirty (30) days of, the adoption of any ordinance refer the ordinance to the electors for their acceptance or rejection by a two-thirds (2/3) vote of the members of the council.
  3. The action of the city council shall constitute a referral to the people, and from that point the procedure shall be that as required by Arkansas Constitution, Amendment 7.

History. Acts 1963, No. 218, §§ 1-3; A.S.A. 1947, §§ 19-2428 — 19-2430.

Case Notes

Notice.

This section does not require notice as specified in § 7-5-202 in the referral of a municipal ordinance to the people. Cowling v. Foreman, 238 Ark. 677, 384 S.W.2d 251 (1964).

14-55-302. Enacted ordinances.

Any ordinance enacted by the governing body of any city or town in the state may be referred to a vote of the electors of the city or town for approval or rejection in the manner and procedure prescribed in Arkansas Constitution, Amendment 7, and laws enacted pursuant thereto for exercising the local initiative and referendum, and the manner and procedure prescribed therein shall be the exclusive method of exercising the initiative and referendum regarding these local measures.

History. Acts 1981, No. 220, § 1; A.S.A. 1947, § 17-4003.1.

14-55-303. Form of ordinance ballot question.

    1. Except as provided in subdivision (a)(2) of this section, the ballot in an election on an ordinance proposed by initiative shall plainly state the title of the ordinance to be voted on, followed by the words:
    2. If the election is for repeal of an ordinance by referendum petition, the ballot in the election shall plainly state the title of the ordinance to be voted on followed by the words:
  1. The ballot in an election on a referred measure shall plainly state the title of the referred measure, followed by the words:

“FOR PROPOSED INITIATIVE NO.

AGAINST PROPOSED INITIATIVE NO.

“FOR REPEAL OF THE ORDINANCE NO.

AGAINST REPEAL OF THE ORDINANCE NO.

“FOR REFERRED MEASURE (OR ORDINANCE OR AMENDMENT) NO.

AGAINST REFERRED MEASURE (OR ORDINANCE OR AMENDMENT) NO.

History. Acts 2015, No. 1036, § 2; 2015 (1st Ex. Sess.), No. 2, § 1; 2015 (1st Ex. Sess.), No. 3, § 1.

Amendments. The 2015 (1st Ex. Sess.) amendment by identical acts Nos. 2 and 3 added “No. ” at the end of (b).

14-55-304. Municipal referendum petition.

Except for a municipal referendum petition concerning a municipal bond, a sponsor shall be given sixty (60) days to circulate a municipal referendum petition.

History. Acts 2015, No. 1093, § 2.

Case Notes

Applicability.

Sections 14-47-124 and 14-55-304 dictate a deadline within which to circulate a referendum petition, not file a referendum petition with the city clerk, and the statutes do not identify when the time commences; the statutes address the circulation of referendum petitions, not the filing of referendum petitions. Pritchett v. Spicer, 2017 Ark. 82, 513 S.W.3d 252 (2017).

Sections 14-47-124 and 14-55-304 did not make the referendum petition timely because the city set the deadline at 30 days, which comported with Ark. Const. Amend 7 (which amended Ark. Const., Art. 1, § 5); to the extent that a municipality enacts measures that comport with Amendment 7, then those measures control. Pritchett v. Spicer, 2017 Ark. 82, 513 S.W.3d 252 (2017).

Subchapter 4 — Effect of Passage

Effective Dates. Acts 1875, No. 1, § 95: effective on passage.

14-55-401. Existing ordinances continue in force.

All laws, ordinances, resolutions, or orders, lawfully passed and adopted by the city or town council, not inconsistent with the Constitution or laws of this state, shall be, remain, and continue in force until altered or repealed by the council.

History. Acts 1875, No. 1, § 33, p. 1; C. & M. Dig., § 7500; Pope's Dig., § 9560; A.S.A. 1947, § 19-2406.

Publisher's Notes. Acts 1875, No. 1, § 33 (3rd sentence), provided that all special acts relating to any municipal corporation repealed by § 5 of this act would, so far as they affected particular police regulations or local affairs in matters not inconsistent with this act, remain in force as bylaws and ordinances of the particular corporation until altered or repealed by the city or town council.

Case Notes

Repeals.

Rule that a statute does not repeal a prior statute unless in irreconcilable conflict therewith applies to municipal ordinances. Helena v. Russwurm, 188 Ark. 968, 68 S.W.2d 1009 (1934).

14-55-402. Admissibility of copies in evidence.

  1. The printed copies of the bylaws and ordinances of any municipal corporation published under its authority, and transcripts of any bylaw, ordinance, or of any act or proceeding of any municipal corporation, recorded in any book or entered on any minutes or journal, kept under the direction of the municipal corporation and certified by its clerk, shall be received in evidence for any purpose for which the original ordinances, books, minutes, or journals would be received with as much effect.
  2. It shall be the duty of the clerk or recorder to furnish the transcript to persons demanding it, and he shall be entitled to charge therefor at the same rate that the clerks of the county and circuit court are entitled to charge for transcripts for such courts.

History. Acts 1875, No. 1, § 27, p. 1; C. & M. Dig., §§ 7497, 7498; Pope's Dig., §§ 9557, 9558; A.S.A. 1947, § 19-2405.

Cross References. Printed copies of ordinances admissible in evidence, § 16-46-203.

Research References

U. Ark. Little Rock L.J.

Heller and Sallings, Survey of Public Law, 3 U. Ark. Little Rock L.J. 296.

Case Notes

Construction.

Sections 14-55-205 and 14-55-206 did not repeal this section. City of Benton v. Nethercutt, 264 Ark. 769, 574 S.W.2d 269 (1978).

Judicial Notice.

Courts will not take judicial notice of municipal ordinances. Strickland v. State, 68 Ark. 483, 60 S.W. 26 (1900); Bolstad v. Pergeson, 305 Ark. 163, 806 S.W.2d 377 (1991).

Objections.

Failure to object and except to the manner in which an ordinance is introduced waives a formal introduction thereof in the manner provided by this section. Sharp v. City of Booneville, 177 Ark. 294, 6 S.W.2d 295 (1928).

Parol Evidence.

Parol evidence is not admissible to prove an ordinance or resolution of a municipal council; the ordinance or resolution itself, or a certified copy of it, must be produced. Pugh v. Little Rock, 35 Ark. 75 (1879).

Where record of municipal ordinances kept by the clerk, together with the journals showing the progress of the ordinances through municipal council, show a valid ordinance, they cannot be attacked by parol evidence. Lewis v. Forrest City Special Imp. Dist., 156 Ark. 356, 246 S.W. 867 (1923).

Where admission of copies of resolutions of municipal council was objected to on grounds they were not recorded or on file in the office of the municipal clerk, parol evidence of the municipal clerk was sufficient to admit them under this section. Adams v. Sims, 238 Ark. 696, 385 S.W.2d 13 (1964).

Printed Copies.

Printed copy of municipal ordinance published by authority of a municipality is prima facie evidence of the legal existence of the ordinance and its contents. Van Buren v. Wells, 53 Ark. 368, 14 S.W. 38 (1890); Arkadelphia Lumber Co. v. City of Arkadelphia, 56 Ark. 370, 19 S.W. 1053 (1892).

The record is prima facie evidence that an ordinance was enacted. Arkansas Light & Power Co. v. City of Paragould, 146 Ark. 1, 225 S.W. 435 (1920).

An ordinance of a municipality may be proved by a printed copy properly certified. Indemnity Ins. Co. v. Harrison, 186 Ark. 590, 54 S.W.2d 692 (1932).

Proof of publication of notice of adoption of an ordinance, with a printed copy attached, from the local newspaper, filed in a municipal ordinance book became a part thereof sufficient to satisfy this section. City of Benton v. Nethercutt, 264 Ark. 769, 574 S.W.2d 269 (1978).

Subchapter 5 — Prescribing of Penalties

Effective Dates. Acts 1891, No. 59, § 4: effective on passage.

Acts 1897, No. 22, § 3: effective on passage.

Acts 1899, No. 36, § 2: effective on passage.

14-55-501. Authority generally.

The town or city council in all cities or incorporated towns in this state are authorized and empowered to prohibit and punish any act, matter, or thing which the laws of this state make a misdemeanor.

History. Acts 1891, No. 59, § 1, p. 96; 1897, No. 22, § 1, p. 29; C. & M. Dig., § 7496; Pope's Dig., § 9556; A.S.A. 1947, § 19-2410.

Case Notes

Adoption.

Municipal ordinance adopting certain statutory provisions as misdemeanors will be held to have made provisions a part of the valid ordinances of the municipality. Searcy v. Turner, 88 Ark. 210, 114 S.W. 472 (1908).

A printed copy of a municipal ordinance published by authority of the municipality is prima facie evidence of the legal existence of the ordinance and its contents. Heno v. City of Fayetteville, 90 Ark. 292, 119 S.W. 287 (1909).

Fees and Penalties.

A municipality was held entitled to retain all the fees and penalties imposed by the mayor's court for violation of its ordinances, notwithstanding that the ordinances made the same acts offenses as were made offenses against the state by statute, and the county was entitled only to such fines and penalties as were imposed by the mayors of such courts acting in their capacity of justice of the peace for the violation of state laws within their jurisdiction. Incorporated Town of Pocahontas v. State ex. rel. Randolph County, 114 Ark. 448, 170 S.W. 89 (1914).

Penalties fixed by a city must fall within the state minimums and maximums. Ford v. City of Hot Springs, 294 Ark. 435, 743 S.W.2d 394 (1988).

14-55-502. State law to be followed.

  1. The town or city council in all cities or incorporated towns in this state are authorized and empowered to prescribe penalties for all offenses in violating any ordinance of the city or town not exceeding the penalties prescribed for similar offenses against the state laws by the statutes of this state.
  2. It shall be unlawful for any town or city council in this state to prescribe, by city ordinance, less severe penalties for all offenses in violation of any ordinance of the city or town than are prescribed for similar offenses against the state laws by the statutes of this state.

History. Acts 1891, No. 59, § 1, p. 96; 1897, No. 22, § 1, p. 29; 1899, No. 36, § 1, p. 45; C. & M. Dig., §§ 7496, 7555; Pope's Dig., §§ 9556, 9629; A.S.A. 1947, §§ 19-2410, 19-2411.

Case Notes

Imprisonment.

The General Assembly did not intend for cities to impose penalties of imprisonment for violation of city ordinances, unless those ordinances regulate conduct proscribed under a valid state statute, in which case the General Assembly has ordered that cities are not permitted to provide lesser penalties than those demanded by the statutes. Pursley v. City of Fayetteville, 628 F. Supp. 676 (W.D. Ark. 1986), rev'd, 820 F.2d 951 (8th Cir. Ark. 1987).

Less Severe Penalties.

Where ordinance under which person was tried was void because it prescribed a less penalty than that prescribed by state laws, nevertheless, he was not prejudiced because the fine adjudged against him was less than he would have had to pay had he been tried under the state laws. Robinson v. City of Malvern, 118 Ark. 423, 176 S.W. 675 (1915).

Ordinances that fix minimum fines for misdemeanors are properly invalid where the ordinances prescribe a minimum penalty substantially less than that fixed by state law, since the penalty fixed by a municipality must fall within the minimum and maximum penalty prescribed by state law for a similar offense. Wright v. Burton, 279 Ark. 1, 648 S.W.2d 794 (1983).

Penalties Not Exceeding State Law.

Ordinance making something a misdemeanor cannot be broader than the statute upon which it is based, and hence that which would be a defense to a prosecution under the statute will be a defense to a prosecution under the ordinance. Greenwood v. Smothers, 103 Ark. 158, 146 S.W. 109 (1912).

Penalties fixed by a city must fall within the state minimums and maximums. Ford v. City of Hot Springs, 294 Ark. 435, 743 S.W.2d 394 (1988).

14-55-503. Effect of conviction.

Upon conviction of any person under an ordinance before any police or city court, the conviction shall be, and operate as, a bar to further prosecution in any of the courts of this state for the same offense.

History. Acts 1899, No. 36, § 1, p. 45; C. & M. Dig., § 7555; Pope's Dig., § 9629; A.S.A. 1947, § 19-2411.

Cross References. Conviction bar to further prosecution, § 16-85-712.

14-55-504. Maximum penalties permitted.

    1. A municipal corporation shall not impose a fine or penalty greater than:
      1. One thousand dollars ($1,000) for the first offense or violation of a bylaw or ordinance;
      2. Two thousand dollars ($2,000) for the second offense or violation of the bylaw or ordinance; or
      3. Four thousand dollars ($4,000) for each subsequent offense or violation of the bylaw or ordinance.
    2. If a thing prohibited or rendered unlawful is, in its nature, continuous in respect to time, the fine or penalty for allowing the continuance thereof, in violation of the bylaw or ordinance, shall not exceed five hundred dollars ($500) for each day that it is unlawfully continued.
  1. If any bylaw or ordinance provides for any greater fine, penalty, or forfeiture than is provided in this section, it shall and may be lawful, in any suit or prosecution for the recovery thereof, to reduce it to such amount as shall be deemed reasonable and proper and to permit a recovery or render a judgment for such amount as authorized.

History. Acts 1875, No. 1, § 24, p. 1; C. & M. Dig., §§ 7557, 7558; Pope's Dig., §§ 9631, 9632; Acts 1975, No. 548, § 1; A.S.A. 1947, § 19-2409; Acts 2009, No. 341, § 1; 2017, No. 559, § 1.

Amendments. The 2009 amendment substituted “one thousand dollars ($1,000)” for “five hundred dollars ($500)” in (a)(1), substituted “five hundred dollars ($500)” for “two hundred fifty dollars ($250)” in (a)(2), and made a minor stylistic change.

The 2017 amendment rewrote (a)(1); and added (a)(1)(A) through (a)(1)(C).

Case Notes

Construction.

Section 14-55-502(a) enlarged the provisions of subdivision (a)(1). Richardson v. State, 56 Ark. 367, 19 S.W. 1052 (1892).

Authority.

Penalty provisions of ordinance prohibiting serving or consumption of mixed drinks at private clubs during early morning hours were held authorized under this section. Tompos v. City of Fayetteville, 280 Ark. 435, 658 S.W.2d 404 (1983).

Imprisonment.

The General Assembly did not intend for cities to impose penalties of imprisonment for violation of city ordinances, unless those ordinances regulate conduct proscribed under a valid state statute, in which case the General Assembly has ordered that cities are not permitted to provide lesser penalties than those demanded by the statutes. Pursley v. City of Fayetteville, 628 F. Supp. 676 (W.D. Ark. 1986), rev'd, 820 F.2d 951 (8th Cir. Ark. 1987).

Not Exceeded.

Late fees charged by city water department on overdue accounts were not usurious, unreasonable, or an unconscionable penalty, and the statutory limits on penalties for violations of ordinances, set out in subsection (a) of this section, were not exceeded. Davis v. City of Blytheville, 2015 Ark. 482, 478 S.W.3d 214 (2015).

Reduction of Amount.

Ordinance is not invalidated by fixing a penalty for its violation in excess of that allowed by this section, since the penalty would be reduced to the amount authorized by law in such cases. City of Little Rock v. Reinman, 107 Ark. 174, 155 S.W. 105 (1913), aff'd, 237 U.S. 171, 35 S. Ct. 511 (1915); Scott v. Roberson, 145 Ark. 408, 224 S.W. 746 (1920).

Cited: Weeks v. City of Paragould, 230 Ark. 908, 328 S.W.2d 81 (1959).

Subchapter 6 — Enforcement and Remedies

Cross References. Mayor to cause ordinances to be obeyed, § 14-43-504(a).

Effective Dates. Acts 1875, No. 1, § 95: effective on passage.

Acts 1885, No. 67, § 7: effective on passage.

Acts 1891, No. 59, § 4: effective on passage.

Acts 1897 (Ex. Sess.), No. 24, § 4: effective on passage.

Acts 2007, No. 663, § 56: Jan. 1, 2012.

Acts 2007, No. 663, § 56, as amended by Acts 2009, No. 345, § 7, provided:

“(a) Sections 2 through 15 of this act are effective January 1, 2008.

“(b) Sections 16 through 50 and 52 through 55 of this act are effective January 1, 2012.

“(c) Section 51 of Act 663 of 2007 is effective January 1, 2012, except:

“(1) That portion of Section 51 of Act 663 of 2007 that is referred to in Act 663 of 2007 as 16-17-933, establishing the Cleburne County District Court and departments of that court, codified as § 16-17-936 is effective July 1, 2009; and

“(2) That portion of Section 51 of Act 663 of 2007 that is referred to in Act 663 of 2007 as 16-17-950, establishing the St. Francis County District Court and departments of that court, codified as § 16-17-954 is effective July 1, 2009.”

14-55-601. Power to enforce generally.

  1. Bylaws and ordinances of municipal corporations may be enforced by the imposition of fines, forfeitures, and penalties on any person offending against or violating them.
    1. The fine, penalty, or forfeiture may be prescribed in each particular bylaw or ordinance or by a general bylaw or ordinance made for that purpose.
    2. Municipal corporations shall have power to provide in like manner for the prosecution, recovery, and collection of the fines, penalties, and forfeitures.
  2. Except for moving traffic violations, it is proper service for a code enforcement officer to send a citation to a person charged with a violation of a municipal code, ordinance, or regulation to that person's last known place of residence by certified mail, return receipt requested, and delivery restricted to the addressee.

History. Acts 1875, No. 1, § 23, p. 1; C. & M. Dig., § 7495; Pope's Dig., § 9544; A.S.A. 1947, § 19-2408; Acts 2009, No. 556, § 1.

Amendments. The 2009 amendment added (c).

Case Notes

Penalties.

The General Assembly did not intend for cities to impose penalties of imprisonment for violation of city ordinances, unless those ordinances regulate conduct proscribed under a valid state statute, in which case the General Assembly has ordered that cities are not permitted to provide lesser penalties than those demanded by the statutes. Pursley v. City of Fayetteville, 628 F. Supp. 676 (W.D. Ark. 1986), rev'd, 820 F.2d 951 (8th Cir. Ark. 1987).

Violations.

Fact that a dog might be impounded does not prevent a municipality from enforcing an ordinance that makes it unlawful for persons to allow their dogs to run at large by levying a fine against persons who violate the ordinance. Weeks v. City of Paragould, 230 Ark. 908, 328 S.W.2d 81 (1959).

Cited: Gore v. Emerson, 262 Ark. 463, 557 S.W.2d 880 (1977); Ark. County v. Burris, 308 Ark. 490, 825 S.W.2d 590 (1992); Davis v. State, 68 Ark. App. 346, 8 S.W.3d 36 (1999)Jarrett v. City of Marvell, 69 Ark. App. 98, 9 S.W.3d 574 (2000).

14-55-602. Imprisonment to enforce fine.

    1. The city council shall have power to provide that, when a fine shall be imposed for the violation of any of the ordinances of the city and it is not paid, the party convicted shall, by order of the mayor or other proper authority or on process issued for the purpose, be committed until the fine and costs of prosecution shall be paid, or the party discharged by due course of law.
    2. The council shall also have power to provide that any person convicted of a repeated and willful violation of any ordinance, who shall refuse or neglect to pay the fine imposed and the cost of prosecution, by like order or process, shall be imprisoned and kept in confinement for any term not exceeding thirty (30) days.
  1. Any city shall be allowed, for the purpose of imprisonment authorized under this section, the use of the county jail of the proper county. All persons so imprisoned shall be under the charge of the sheriff of the county, who shall receive and discharge the persons in such manner as shall be prescribed by the ordinances of the city, or otherwise, by due course of law.

History. Acts 1875, No. 1, § 9, p. 1; C. & M. Dig., §§ 7598, 7600, 7603; Pope's Dig., §§ 9684, 9686, 9698; A.S.A. 1947, §§ 19-2413, 19-2414.

Cross References. City jails, § 12-41-401 et seq.

Case Notes

Constitutionality.

Because the city resident offered no evidence to support his contention that the city's garbage collection ordinance had been discriminatorily applied, he did not meet his burden of proving that the ordinance was unconstitutional as a result of its selective application to him. Jarrett v. City of Marvell, 69 Ark. App. 98, 9 S.W.3d 574 (2000).

14-55-603. Outside work for jailed persons.

Prisoners confined in the county jail or city prison, by sentence of the district court, for a violation of a city or town bylaw, ordinance, or regulation, may, by ordinance, be required to work out the amount of all fines, penalties, forfeitures, and costs at the rate prescribed in § 16-90-108, on the streets or other improvement under the control of the city council.

History. Acts 1875, No. 1, § 87, p. 1; C. & M. Dig., § 7562; Pope's Dig., § 9636; A.S.A. 1947, § 19-2416; Acts 2017, No. 260, § 11.

Amendments. The 2017 amendment substituted “district court” for “city or police court”.

14-55-604. Working out of fines.

The city council may, at its discretion, provide, by ordinance, that fines imposed for violation of ordinances may be discharged by the offender working out the fine upon the streets or alleys of the towns, at the rate prescribed in § 16-90-108, and may adopt all necessary regulations for the safekeeping, management, and control of offenders while working out the fine.

History. Acts 1875, No. 1, § 9, p. 1; C. & M. Dig., § 7601; Pope's Dig., § 9687; A.S.A. 1947, § 19-2415.

Publisher's Notes. This section provides that the “city” council may legislate, etc., but refers to streets or alleys of the “towns” afterwards.

Cross References. Labor of city prisoners, § 12-42-101 et seq.

14-55-605. Suit for recovery of fines, etc.

  1. Fines, penalties, and forfeitures, in all cases and in addition to any other mode provided, may be recovered by suit or action before any court of competent jurisdiction, in the name of the proper municipal corporation and for its use.
  2. In such a suit or action, where pleading is necessary, it shall be sufficient to declare generally for the amount claimed to be due, in respect to the bylaw or ordinance, referring to its title and the date of its adoption or passage, and showing, as nearly as may be, the true time of the alleged violation.
  3. All suits or prosecutions for the recovery of any fines, penalties, or forfeitures, or for the commission of any offense made punishable by any bylaw or ordinance of any municipal corporation, shall be commenced within one (1) year after the violation of the bylaw or ordinance, or commission of the offense, and not afterwards, if the offender has remained within the jurisdiction of the municipal corporation during the one (1) year. If not, then the limitation provided in this subsection shall extend for the term of five (5) years.

History. Acts 1875, No. 1, §§ 25, 26, p. 1; C. & M. Dig., §§ 7559, 7561; Pope's Dig., §§ 9633, 9635; A.S.A. 1947, §§ 19-2417, 19-2418.

14-55-606. Additional remedies of cities of the first class.

    1. In all cases of violation of any of its ordinances, any city of the first class in addition to any other mode provided by law shall have the right to recover in a civil action the amount of the lowest penalty or fines provided in the ordinance for each violation or, where the offense is in its nature continuous in respect to time, for each day's violation thereof, and also the amount of any license which the person guilty of the violations was required by any such ordinance to take out.
    2. The district court shall have jurisdiction in all such actions.
  1. In all cases where a fine may have been imposed by the district court, that court in addition to the power of enforcing payment of the fine by imprisonment shall have full power to issue an execution or writ of garnishment to be executed by the chief of police.

History. Acts 1885, No. 67, § 5, p. 92; C. & M. Dig., § 7735; Pope's Dig., § 9931; A.S.A. 1947, § 19-2419; Acts 2003, No. 1185, § 35.

Amendments. The 2003 amendment substituted “district court” for “municipal court” in (a)(2) and (b); deleted “concurrent with justices of the peace” from the end of (a)(2); and deleted “in like manner and with like effect as if issued by a justice of the peace in any civil case tried before him, and like proceedings may be had thereunder” from the end of (b).

14-55-607. Additional remedies of cities of the second class.

In all cases of violation of any of its ordinances, any city of the second class, in addition to the modes provided by law, shall have the right to recover, in a civil action, the amount of the penalty or fines provided by the bylaws or ordinances of these cities or imposed by the mayor thereof for a violation of any ordinance or bylaw. In addition to the power to enforce payment of a fine or penalty by imprisonment, the mayor shall have full power to issue an execution or writ of garnishment, to be executed by the marshal, in like manner and with like effect as if issued by a justice of the peace in any civil action tried before him, and like proceedings be had thereunder.

History. Acts 1897 (Ex. Sess.), No. 24, § 3, p. 69; C. & M. Dig., § 7686; Pope's Dig., § 9815; A.S.A. 1947, § 19-2420.

14-55-608. [Repealed.]

Publisher's Notes. This section, concerning disposition of fines, was repealed by Acts 2007, No. 663, § 20, effective January 1, 2012. The section was derived from Acts 1891, No. 59, § 2, p. 97; C. & M. Dig., § 7556; Pope's Dig., § 9630; A.S.A. 1947, § 19-2412.

Subchapter 7 — Codification of Ordinances

14-55-701. Authority to codify.

  1. A municipality may codify its ordinances, or any part of them, into one (1) or more volumes, either bound or in loose-leaf form, without setting forth the provisions of the municipal code or parts thereof, if three (3) copies of the municipal code, or the pertinent parts thereof, and any related documents are filed either electronically or by hard copy in the office of the clerk or recorder of the municipality for inspection and viewing by the public before the passage of the ordinances.
    1. The ordinance adopting the codification shall be enacted under the requirements for passage of ordinances of the municipality.
    2. The ordinance adopting the codification may provide for the repeal of certain ordinances and parts of ordinances by the deletion or omission of them from the codification.
  2. In exercising the authority to codify ordinances under this subchapter, the municipality may:
    1. Correct the spelling of words;
    2. Change capitalization for the purpose of uniformity;
    3. Correct manifest typographical and grammatical errors;
    4. Correct manifest errors in references to laws, ordinances, and other documents;
    5. Correct manifest errors in internal reference numbers;
    6. Substitute the proper ordinance numbering or designation for the terms “this ordinance”, “the preceding ordinance”, or any similar words or phrases;
    7. Number, renumber, redesignate, and rearrange organization of material within an ordinance;
    8. Change internal reference numbers to agree with renumbered ordinances or material within an ordinance;
    9. Substitute the correct calendar date for “the effective date of this ordinance” and other phrases of similar import;
    10. Correct inaccurate references to:
      1. Funds;
      2. Fund accounts;
      3. The titles of officers;
      4. The names of departments or other agencies of the federal government, the state government, or local governments, and the names of other entities; and
      5. The short titles of other laws or ordinances;
    11. Make any other name changes necessary to be consistent with the laws or ordinances currently in effect;
    12. Alphabetize definitions and make any necessary changes to conform the definitions sections to ordinance style and format;
    13. Insert or delete hyphens in words to follow correct grammatical usage;
    14. Change numerals or symbols to words or vice versa and add figures or words if they are merely repetitions of written words or vice versa for purposes of uniformity and style;
    15. Change the form of nouns, pronouns, and verbs for purposes of style and grammar;
    16. Correct punctuation;
    17. Correct word usage;
    18. Change gender-specific language to gender-neutral language; and
    19. Remove obsolete language.

History. Acts 1961, No. 209, § 1; A.S.A. 1947, § 19-2424; Acts 2019, No. 205, § 1.

Publisher's Notes. Acts 1961, No. 209, § 4, provided that any revision or codification of ordinances adopted at any time prior to June 8, 1961, which would have been valid if this section had been in effect, were ratified and validated in all respects whatsoever.

Amendments. The 2019 amendment, deleted “revise and” preceding “codify” in the section heading; in (a), substituted “A municipality may codify” for “Any municipality is authorized and empowered to revise and codify”, and substituted “without setting forth the provisions of the municipal code or parts thereof, if three (3) copies of the municipal code, or the pertinent parts thereof, and any related documents are filed either electronically or by hard copy in the office of the clerk or recorder of the municipality for inspection and viewing by the public before the passage of the ordinances” for “without the publication or posting of any part thereof”; substituted “codification shall be enacted under the requirements for passage of ordinances of” for “revision or codification shall be enacted in accordance with the requirements for the passage of ordinances pertaining to” in (b)(1); deleted “revision or” twice in (b)(2); and added (c).

14-55-702. Copies of municipal code filed.

Upon the adoption of any municipal code, three (3) copies of the municipal code shall be filed and maintained in the office of the city clerk or recorder.

History. Acts 1961, No. 209, § 2; A.S.A. 1947, § 19-2425; Acts 2019, No. 205, § 2.

Amendments. The 2019 amendment inserted “municipal” in the section heading; substituted “three (3) copies of the municipal code” for “or revision, three (3) copies of it”, and added “or recorder”.

14-55-703. Code prima facie evidence.

In determining the content of any ordinance so codified, it shall not be necessary to go beyond the code. The code shall be admitted in evidence without further proof and shall be prima facie evidence in all courts of the existence and regular enactment of each particular ordinance contained therein.

History. Acts 1961, No. 209, § 2; A.S.A. 1947, § 19-2425.

14-55-704. Amendment of municipal code authorized.

  1. A municipal code may be amended from time to time by ordinances duly enacted and published as required by law and passed in such form as to indicate the intention of the legislative body of the city to make them a part of the municipal code or revision.
    1. When so passed, copies of the ordinances shall be inserted in the copies of the municipal code maintained by the city clerk or recorder, and the ordinances are a part of the municipal code and have the same force and effect as if included at the time of the original adoption of the municipal code.
    2. Under this section, an amendment does not give an amended ordinance retroactive effect.

History. Acts 1961, No. 209, § 3; A.S.A. 1947, § 19-2426; Acts 2019, No. 205, § 3.

Amendments. The 2019 amendment inserted “municipal” in the section heading; in (a), substituted “A municipal code” for “Municipal codes or revisions” and inserted “municipal”; and rewrote (b).

Chapter 56 Municipal Building and Zoning Regulations — Planning

Research References

ALR.

Zoning regulations prohibiting or limiting fences, hedges, or walls. 1 A.L.R.4th 373.

“War zone” ordinances restricting location of sex-oriented businesses. 1 A.L.R.4th 1297.

Enforcement of zoning regulation as affected by other violations. 4 A.L.R.4th 462.

Validity and construction of provisions of zoning statute or ordinance regarding protest by neighboring property owners. 7 A.L.R.4th 732.

Standing of civic or property owners' association to challenge zoning board decision (as aggrieved party). 8 A.L.R.4th 1087.

Construction of new building or structure on premises devoted to nonconforming use as zoning violation. 10 A.L.R.4th 1122.

Ordinance restricting number of unrelated persons who can live together in residential zone. 12 A.L.R.4th 238.

Standing of zoning board of appeals or similar body to appeal reversal of its decision. 13 A.L.R.4th 1130.

Zoning or building regulations restricting mobile homes or trailers to established mobile home or trailer parks. 17 A.L.R.4th 106.

Local use zoning of wetlands or flood plain as taking without compensation. 19 A.L.R.4th 756.

Applicability and application of zoning regulations to single residences employed for group living of mentally retarded persons. 32 A.L.R.4th 1018.

Validity and construction of zoning laws setting minimum requirements for floorspace or cubic footage inside residence. 87 A.L.R.4th 294.

Validity of zoning laws setting minimum lot size requirements. 1 A.L.R.5th 622.

Validity and construction of zoning regulations relating to illuminated signs. 30 A.L.R.5th 549.

Applicability of zoning regulations to governmental projects or activities. 53 A.L.R.5th 1.

Am. Jur. 83 Am. Jur. 2d, Zoning, §§ 7 et seq, 17 et seq., 128 et seq., 161.7, 520, 611.

Ark. L. Rev.

Legal Control of Business in Arkansas, 5 Ark. L. Rev. 137.

Regulation of Urban Nonconforming Uses in Arkansas: Limitation and Termination, 16 Ark. L. Rev. 270.

Judicial Review of Zoning in Arkansas, 23 Ark. L. Rev. 22.

Land Use — Mandatory Dedication for Park and Recreational Facilities, 26 Ark. L. Rev. 415.

Land Use — Wetlands Regulation, 27 Ark. L. Rev. 527.

The Role of Neighbors in Zoning Cases, 28 Ark. L. Rev. 221.

Judicial Handling of Restrictive Covenants in Arkansas Residential Subdivisions, 28 Ark. L. Rev. 245.

Zoning — The Expanding Business District Doctrine in Arkansas: An Obstacle to Land Use Planning, 28 Ark. L. Rev. 262.

Riggs, Case Note: Zoning — Termination of Preexisting Nonconforming Uses, 32 Ark. L. Rev. 797.

C.J.S. 62 C.J.S., Mun. Corp., § 225 et seq.

U. Ark. Little Rock L.J.

Wright, Zoning Law in Arkansas: A Comparative Analysis, 3 U. Ark. Little Rock L.J. 421.

Note, Property — Zoning — The Courts Further Define Their Limited Role. City of Little Rock v. Breeding, 273 Ark. 437, 619 S.W.2d 664 (1981). 5 U. Ark. Little Rock L.J. 279.

Subchapter 1 — General Provisions

Effective Dates. Acts 1875, No. 1, § 95: effective on passage.

Acts 2007, No. 310, § 2 provides: “Retroactive Effect. This act shall be applied retroactively to July 16, 2003. Any municipality or municipal service agency that, on or after July 16, 2003, collected a utility hookup fee or access fee that fits the definition of development impact fee as defined in § 14-56-103(a)(3) shall refund any portion of the fee or fees that were not levied for making the physical connection for utility services or to recover the construction costs of the line to which the connection is made.”

Acts 2007, No. 310, § 2, provided: “Retroactive Effect. This act shall be applied retroactively to July 16, 2003. Any municipality or municipal service agency that, on or after July 16, 2003, collected a utility hookup fee or access fee that fits the definition of development impact fee as defined in § 14-56-103(a)(3) shall refund any portion of the fee or fees that were not levied for making the physical connection for utility services or to recover the construction costs of the line to which the connection is made.”

14-56-101. Liability for excavations.

If the owner or possessor of any lot or land in any city or incorporated town in this state shall dig or cause to be dug any cellar, pit, vault, or excavation to a greater depth than twelve feet (12') below the curb of the street on which the lot or land abuts, or, if there is no curb, below the surface of the adjoining lots, and shall, by this excavation, cause any damage to any wall, house, or other building upon the lots, adjoining thereto, the owner or possessor shall be liable, in a civil action, to the party injured, to the full amount of the damage. However, the owner or possessor may dig or cause to be dug any cellar, pit, or excavation, to the full depth of any foundation walls of any building upon the adjoining lots, and to the full depth of twelve feet (12') below the grade of the street whereon the lot abuts, established by the corporation authority, without incurring the liability prescribed by this section.

History. Acts 1875, No. 1, § 34, p. 1; C. & M. Dig., § 7545; A.S.A. 1947, § 19-2819.

Case Notes

Court Decisions.

Where previous holding was based on old zoning statute, it was necessarily modified by the passage of superseding statute, for a strict and literal interpretation of all the language in that case would certainly result in nullification of subsequent statute. City of Little Rock v. Parker, 241 Ark. 381, 407 S.W.2d 921 (1966).

14-56-102. Legally erected outdoor advertising sign.

This subchapter, § 14-56-201 et seq., § 14-56-301 et seq., § 14-56-401 et seq., § 14-56-501 et seq., and § 14-56-601 et seq. shall not be construed to authorize the legislative body of any city, incorporated town, or county to adopt any ordinance, law, or regulation that requires the taking, elimination, alteration, or diminishment of a legally erected outdoor advertising sign without first making the payment of just monetary compensation therefor.

History. Acts 2003, No. 1268, § 1.

14-56-103. Development impact fees — Definition.

  1. As used in this section:
    1. “Capital plan” means a description of new public facilities or of new capital improvements to existing public facilities or of previous capital improvements to public facilities that continue to provide capacity available for new development that includes cost estimates and capacity available to serve new development;
    2. “Development” means any residential, multifamily, commercial, or industrial improvement to lands within a municipality or within a municipal service agency's area of service;
      1. “Development impact fee” means a fee or charge imposed by a municipality or by a municipal service agency upon or against a development in order to generate revenue for funding or for recouping expenditures of the municipality or municipal service agency that are reasonably attributable to the use and occupancy of the development. A fee or charge imposed for this purpose is a “development impact fee” regardless of what the fee or charge is named.
      2. “Development impact fee” shall not include:
        1. Any ad valorem real property taxes;
        2. Any special assessments for an improvement district;
        3. Any fee for making the physical connection for utility services or any fee to recover the construction costs of the line to which the connection is made;
        4. Any fees for filing development plats or plans for building permits or for construction permits assessed by a municipality or a municipal service that are approximately equal to the cost of the plat, plan, or permit review process to the municipality or the municipal service agency; or
        5. Any fee paid according to a written agreement between a municipality or municipal service agency and a developer for payment of improvements contained within the agreement;
    3. “Municipality” means:
      1. A city of the first class;
      2. A city of the second class; or
      3. An incorporated town;
    4. “Municipal service agency” means:
      1. Any department, commission, utility, or agency of a municipality, including any municipally owned or controlled corporation;
      2. Any municipal improvement district, consolidated public or municipal utility system improvement district, or municipally owned nonprofit corporation that owns or operates any utility service;
      3. Any municipal water department, waterworks or joint waterworks, or a consolidated waterworks system operating under the Consolidated Waterworks Authorization Act, § 25-20-301 et seq.;
      4. Any municipal wastewater utility or department;
      5. Any municipal public facilities board; or
      6. Any of these municipal entities operating with another similar entity under an interlocal agreement in accordance with the Interlocal Cooperation Act, § 25-20-101 et seq., or § 25-20-201 et seq.;
    5. “Ordinance” means a municipal impact fee ordinance of a municipality or an authorizing rate resolution by a board of commissioners of a consolidated waterworks system authorized to set rates for its customers under the Consolidated Waterworks Authorization Act, § 25-20-301 et seq.; and
    6. “Public facilities” means publicly owned facilities that are one (1) or more of the following systems or a portion of those systems:
      1. Water supply, treatment, and distribution for either domestic water or for suppression of fires;
      2. Wastewater treatment and sanitary sewerage;
      3. Storm water drainage;
      4. Roads, streets, sidewalks, highways, and public transportation;
      5. Library;
      6. Parks, open space, and recreation areas;
      7. Police or public safety;
      8. Fire protection; and
      9. Ambulance or emergency medical transportation and response.
  2. A municipality or a municipal service agency may assess by ordinance a development impact fee to offset costs to the municipality or to a municipal service agency that are reasonably attributable to providing necessary public facilities to new development.
    1. A municipality or municipal service agency may assess, collect, and expend development impact fees only for the planning, design, and construction of new public facilities or of capital improvements to existing public facilities that expand its capacity or for the recoupment of prior capital improvements to public facilities that created capacity available to serve new development.
    2. The development impact fee may be pledged to the payment of bonds issued by the municipality or municipal service agency to finance capital improvements or public facilities for which the development impact fee may be imposed.
    3. No development impact fee shall be assessed for or expended upon the operation or maintenance of any public facility or for the construction or improvement of public facilities that does not create additional capacity.
    1. A municipality or a municipal service agency may assess and collect impact fees only from new development and only against a particular new development in reasonable proportion to the demand for additional capacity in public facilities that is reasonably attributable to the use and occupancy of that new development.
    2. The owner, resident, or tenant of a property that was assessed an impact fee and paid it in full shall have the right to make reasonable use of all public facilities that were financed by the impact fee.
    1. A municipality or municipal service agency may assess, collect, and expend impact fees only under a development impact fee ordinance adopted and amended under this section.
    2. A development impact fee ordinance shall be adopted or amended by the governing body of a municipality or municipal service agency only after the municipality or municipal service agency has adopted a capital plan and level of service standards for all of the public facilities that are to be so financed.
    3. The development impact fee ordinance shall contain:
      1. A statement of the new public facilities and capital improvements to existing public facilities that are to be financed by impact fees and the level of service standards included in the capital plan for the public facilities that are to be financed with impact fees;
      2. The actual formula or formulas for assessing the impact fee, which shall be consistent with the level of service standards;
      3. The procedure by which impact fees are to be assessed and collected; and
      4. The procedure for refund of excess impact fees in accordance with subsection (h) of this section.
    1. The municipality or municipal service agency shall collect the development impact fee at the time and manner and from the party as prescribed in the ordinance and shall collect the fee separate and apart from any other charges to the development.
      1. A development impact fee shall be collected at either the closing on the property by the owner or the issuance of a certificate of occupancy by the municipality.
      2. However, a municipal water or wastewater department, waterworks, joint waterworks, or consolidated waterworks system operating under the Consolidated Waterworks Authorization Act, § 25-20-301 et seq., may collect a development impact fee in connection with and as a condition to the installation of the water meter serving the property.
    2. At closing, the development impact fee that has been paid or will be paid for the property shall be separately enumerated on the closing statement.
    3. The ordinance may include that the development impact fee may be paid in installments at a reasonable interest rate for a fixed number of years or that the municipality or municipal service agency may negotiate agreements with the owner of the property as to the time and method of paying the impact fee.
    1. The funds collected under a development impact fee ordinance shall be deposited into a special interest-bearing account.
    2. The interest earned on the moneys in the separate account shall be credited to the special fund and the funds deposited into the special account and the interest earned shall be expended only in accordance with this section.
    3. No other revenues or funds shall be deposited into the special account.
    1. The municipality or municipal service agency shall refund the portion of collected development impact fees, including the accrued interest, that has not been expended seven (7) years from the date the fees were paid.
      1. A refund shall be paid to the present owner of the property that was the subject of new development and against which the fee was assessed and collected.
      2. Notice of the right to a refund, including the amount of the refund and the procedure for applying for and receiving the refund, shall be sent or served in writing to the present owners of the property no later than thirty (30) days after the date on which the refund becomes due.
      3. The sending by regular mail of the notices to all present owners of record shall be sufficient to satisfy the requirement of notice.
      1. The refund shall be made on a pro rata basis and shall be paid in full not later than ninety (90) days after the date certain upon which the refund becomes due.
      2. If the municipality or municipal service agency does not pay a refund in full within the period set in subdivision (h)(3)(A) of this section to any person entitled to a refund, that person shall have a cause of action against the municipality for the refund or the unpaid portion in the circuit court of the county in which the property is located.
      1. On and after July 16, 2003, a municipality or municipal service agency shall levy and collect a development impact fee only if levied and collected under ordinances enacted in compliance with this section.
      2. Beginning January 1, 2004, a municipality or municipal service agency shall collect development impact fees under ordinances enacted before July 16, 2003, or under ordinances amended after July 16, 2003, only if collected in compliance with subsections (f)-(h) of this section.
    1. However, except for the compliance with the collection requirements under subsections (f)-(h) of this section, this section does not invalidate any development impact fee or a similar fee adopted by a municipality or municipal service agency before July 16, 2003, nor does this section apply to funds collected under any development impact fee or similar fee adopted July 16, 2003.
    2. In addition, a municipality with a park land or green space ordinance that has been in existence for ten (10) years on July 16, 2003, and any amendments to the ordinance, which allows the option to pay a fee or to dedicate green space or park land in lieu of a fee, may continue to be administered under the existing ordinance.

History. Acts 2003, No. 1719, § 1; 2007, No. 310, § 1.

Research References

Ark. L. Notes.

Carl J. Circo, Land Use Impact Fees: Does Koontz v. St. Johns River Water Management District Echo an Arkansas Philosophy of Property Rights?, 2014 Ark. L. Notes 1626.

Subchapter 2 — Building Regulations

Effective Dates. Acts 1875, No. 1, § 95: effective on passage.

Acts 1887, No. 32, § 2: effective on passage.

Acts 1907, No. 352, § 3: effective on passage.

Acts 1939, No. 102, § 2: Feb. 17, 1939. Emergency clause provided: “Whereas, the erection of buildings of a non-fireproof nature in congested areas constitutes a menace to the public safety, an emergency is hereby declared, and this act is necessary for the public peace, health and safety and shall be in full force and effect after its passage and approval.”

Research References

ALR.

Requirement of compliance with housing code before rent increase or possession by new tenant. 20 A.L.R.4th 1246.

Liability of governmental entity to builder or developer for negligent issuance of building permit subsequently suspended or revoked. 41 A.L.R.4th 99.

Ark. L. Rev.

Equity — Enjoinability of Threatened Nuisance, 6 Ark. L. Rev. 231.

14-56-201. Authority generally.

Municipal corporations shall have the power to:

  1. Regulate the erection, construction, reconstruction, alteration, and repair of buildings;
  2. Make regulations for the purpose of guarding against accidents by fire;
  3. Require the use of fireproof or fire-resistant materials in the erection, construction, reconstruction, alteration, or repairs of buildings; and
  4. Provide for the removal of any buildings, or additions thereto, erected contrary to this prohibition.

History. Acts 1875, No. 1, § 13, p. 1; 1887, No. 32, § 1, p. 41; C. & M. Dig., § 7544; Pope's Dig., § 9619; Acts 1939, No. 102, § 1; A.S.A. 1947, § 19-2801.

Case Notes

Construction.

Section 14-56-202 conferred upon cities of the first class the exclusive power to issue or refuse to issue building permits and to regulate the building of houses and thereby denied such power to cities of the second class, despite the general powers listed in § 14-56-201. First State Bank v. City of Elkins, 2018 Ark. 191, 546 S.W.3d 477 (2018) (answering question of law certified by the federal district court).

Billboards.

Motion to dismiss for failure to state a claim was improperly granted because a complaint filed by a lessor and a lessee sufficiently alleged that their rights or other legal relations were affected by Avoca, Ark., Ordinance No. 69 where a town was making demands regarding the removal of billboards; therefore, the lessor and the lessee were entitled to declaratory relief under § 16-111-104. They were arguing that the town lacked power to regulate the billboards at issue. Statewide Outdoor Adver., LLC v. Town of Avoca, 104 Ark. App. 10, 289 S.W.3d 111 (2008).

Erection, Construction, Etc.

A city may regulate the construction of buildings, but it cannot prevent construction unless the proposed construction is dangerous per se to the public health and safety. Bennett v. City of Hope, 204 Ark. 147, 161 S.W.2d 186 (1942).

Provisions authorizing a city to regulate the construction, alteration, and repair of buildings by passing ordinances for the general welfare does not authorize an ordinance establishing building and setback lines. City of Stuttgart v. Strait, 212 Ark. 126, 205 S.W.2d 35 (1947).

Where general zoning law of state provides for certain procedure and statutory provisions authorize the giving of permits by city council in special instances, a permit given by the council is valid, but if ordinances are not passed under provisions providing for issuance of permits, but under a statute which did not provide for permits, the provisions allowing for permits are not relevant in determining validity of permit. Meyer v. Seifert, 216 Ark. 293, 225 S.W.2d 4 (1949).

Cities, in certain instances, have the authority to regulate some features relating to public buildings. Where the ordinance is not before the reviewing court, the court cannot make a sweeping finding that the municipality cannot regulate, in any manner, any phase, aspect, or feature relating to the construction of a public building. Lavender v. City of Rogers, 232 Ark. 673, 339 S.W.2d 598 (1960); Lavender v. City of Rogers, 233 Ark. 161, 343 S.W.2d 103 (1961).

A board of adjustment had authority to authorize the enlargement of a kindergarten being operated in a residential district as a preexisting nonconforming use of the property. Williams v. Kuehnert, 243 Ark. 746, 421 S.W.2d 896 (1967).

In light of the devastation caused by a tornado, the city had the authority to adopt an ordinance which added new requirements for the construction and anchoring of manufactured homes. Smith v. City of Arkadelphia, 336 Ark. 42, 984 S.W.2d 392 (1999).

Refusal of the department of inspection and zoning to issue a repair permit was not a procedural due process violation; in order to make an informed decision about whether repair was feasible and would promote public safety, the department reasonably exercised its regulatory power by requesting more detailed plans from an engineer or architect. Trice v. City of Pine Bluff, 2017 Ark. App. 638, 536 S.W.3d 139 (2017).

Fire Prevention.

A town council has power to prohibit the erection of wooden buildings in certain districts of the town as a precaution against fire; and if such building be erected in violation of an ordinance prohibiting it, the council may promptly remove it without any prosecution or judicial proceedings of any kind against the owner of the building. McKibbin v. City of Ft. Smith, 35 Ark. 352 (1880). See Paris v. Hall, 131 Ark. 104, 198 S.W. 705 (1917).

City may extend its fire limits, but cannot give it an ex post facto effect. Wilder v. City of Little Rock, 150 Ark. 439, 234 S.W. 479 (1921).

An ordinance prohibiting the construction of wooden buildings and enlargement and alteration of old buildings within fire limits is authorized. The term “alteration” means that an old building shall not be changed in such a way as to convert it into a new and different structure. Earle v. Shackleford, 177 Ark. 291, 6 S.W.2d 294 (1928).

Where city passed ordinances relative to guarding against destruction of buildings by fire and prohibited erection of nonfireproof building, a permit issued by the city council to erect a nonfireproof building was invalid where statute under which ordinances were passed did not provide for issuance of permits. Meyer v. Seifert, 216 Ark. 293, 225 S.W.2d 4 (1949).

Cited: Corning v. Watson, 252 Ark. 1277, 482 S.W.2d 797 (1972).

14-56-202. Additional powers of cities of the first class, cities of the second class, and incorporated towns.

    1. The following enlarged and additional powers are conferred upon cities of the first class.
    2. A city of the first class may:
      1. Regulate the building of houses;
      2. Provide that a house or structure not be erected within the city limits except upon a permit to be issued by an officer the governing body designates; and
      3. Provide that a permit not be issued for the building of any house or structure deemed to be unsafe, unsanitary, obnoxious, or detrimental to the public welfare.
  1. The authority to appoint and remove department heads, including the building official, is governed by § 14-42-110 without regard to the classification of the city or town.
    1. The following enlarged and additional powers are conferred upon cities of the second class and incorporated towns.
    2. A city of the second class and an incorporated town may:
      1. Enforce building and safety codes for the building and construction of houses and other structures;
      2. Provide that a house or structure not be erected before a building permit is issued by a building official the governing body designates; and
      3. Provide that a permit not be issued for the building of any house or structure deemed to be unsafe, unsanitary, obnoxious, or detrimental to the public welfare.
    3. The authority given to a city of the second class and an incorporated town under this subsection does not include the authority under § 14-56-416 unless the city of the second class or the incorporated town has adopted and filed a land use plan and corresponding zoning ordinances under § 14-56-101 et seq.
  2. This section does not:
    1. Authorize a city of the first class, a city of the second class, or an incorporated town to regulate the building of houses or structures in a manner contrary to other applicable law; or
    2. Restrict the authority of a city of the first class, a city of the second class, or an incorporated town under other applicable law.

History. Acts 1907, No. 352, § 1, p. 842; C. & M. Dig., § 7754; Pope's Dig., § 10053; A.S.A. 1947, § 19-2802; Acts 2005, No. 943, § 1; 2019, No. 574, § 1.

Amendments. The 2005 amendment added (b).

The 2019 amendment added “cities of the second class, and incorporated towns” in the section heading; substituted “A city of the first class may” for “They shall have the power to” in (a)(2); rewrote (a)(2)(B); substituted “Provide that a permit not be issued” for “Provide that no permit shall be issued” in (a)(2)(C); in (b), substituted “The authority to appoint” for “However, the authority to appoint”, substituted “building official, is governed” for “building official, shall be governed”, and substituted “§ 14-42-110 without regard to the classification” for “§ 14-42-110 regardless of the classification”; and added (c) and (d).

Case Notes

Construction.

Section 14-56-202 conferred upon cities of the first class the exclusive power to issue or refuse to issue building permits and to regulate the building of houses and thereby denied such power to cities of the second class, despite the general powers listed in § 14-56-201. First State Bank v. City of Elkins, 2018 Ark. 191, 546 S.W.3d 477 (2018) (answering question of law certified by the federal district court).

Billboards.

Motion to dismiss for failure to state a claim was improperly granted because a complaint filed by a lessor and a lessee sufficiently alleged that their rights or other legal relations were affected by Avoca, Ark., Ordinance No. 69 where a town was making demands regarding the removal of billboards; therefore, the lessor and the lessee were entitled to declaratory relief under § 16-111-104. They were arguing that the town lacked power to regulate the billboards at issue. Statewide Outdoor Adver., LLC v. Town of Avoca, 104 Ark. App. 10, 289 S.W.3d 111 (2008).

Building of Houses.

The authority of a city of first class to regulate the building of houses does not give the city the authority to establish a building line. City of Stuttgart v. Strait, 212 Ark. 126, 205 S.W.2d 35 (1947).

Permits.

The grant of a permit to erect a frame building is not a contract; and, until vested rights accrue under it, the city may extend its fire limits so as to prevent the erection of such building. Wilder v. City of Little Rock, 150 Ark. 439, 234 S.W. 479 (1921).

Large outside signboard constructed wholly of wood with a steel sheeting front was held to be a “structure” within the meaning of ordinance couched in the same general terms as this section. Seiz v. City of Hot Springs, 194 Ark. 544, 108 S.W.2d 897 (1937).

In an action to compel the issuance of a building permit, the findings of the chancellor denying such action will not be disturbed on a disputed fact, unless such findings are against the preponderance of the evidence. City of Little Rock v. Tate, 212 Ark. 1003, 209 S.W.2d 92 (1948).

14-56-203. Removal or razing of buildings.

Cities of the first class, cities of the second class, and incorporated towns may order the removal or razing of, or remove or raze, buildings or houses that in the opinion of the city council or town council have become dilapidated, unsightly, unsafe, unsanitary, obnoxious, or detrimental to the public welfare and shall provide by ordinance the manner of removing and making these removals.

History. Acts 1907, No. 352, § 2, p. 842; C. & M. Dig., § 7755; Pope's Dig., § 10054; Acts 1979, No. 219, § 1; A.S.A. 1947, § 19-2803; Acts 2017, No. 303, § 1.

Amendments. The 2017 amendment inserted “or razing” in the section heading; substituted “Cities of the first class, cities of the second class, and incorporated towns may” for “Cities of the first and second class shall have the power to”, substituted “or remove or raze, buildings” for “or to remove or raze, any buildings”, inserted “city council or town”, and made stylistic changes.

Cross References. Enforcement of removal or razing orders, § 14-54-904.

Case Notes

Constitutionality.

Where preponderance of evidence was to effect that buildings in question were a fire, health, and structural hazard, decree ordering their destruction under city ordinance enacted under the authority of this section was proper and did not constitute a violation of owner's constitutional rights. Springfield v. City of Little Rock, 226 Ark. 462, 290 S.W.2d 620 (1956).

Authority.

The authority of a city of first class to regulate the removing of houses does not give the city the authority to establish a building line. City of Stuttgart v. Strait, 212 Ark. 126, 205 S.W.2d 35 (1947).

Summary judgment was properly awarded to a city on a property owner's petition for an injunction to prevent the city from razing the owner's house because the city had the authority under the statute to determine that the house was a nuisance; the city had the authority given by statute to raze buildings that were detrimental to the public welfare. Kearney v. City of Little Rock, 2009 Ark. App. 125, 302 S.W.3d 629 (2009).

Because the issues regarding a building located in an historic district went beyond the character of the building and into the safety of the public, the authority to determine the status of the building belonged to the city under this section and the city ordinance, and due process was achieved; the city declared the owner's building a public nuisance and blocked off the street and the perimeter of the building in part to prevent injury to the public. Trice v. City of Pine Bluff, 2017 Ark. App. 638, 536 S.W.3d 139 (2017).

Compensation.

The city may order unsanitary buildings or buildings injurious to the public health destroyed without compensation to the owner if necessary to abate the nuisance and protect the public health and safety. Springfield v. City of Little Rock, 226 Ark. 462, 290 S.W.2d 620 (1956).

14-56-204. Municipal regulation of residential building design elements prohibited — Findings — Exceptions — Definitions.

  1. The General Assembly finds that:
    1. The Fair Housing Act, 42 U.S.C. § 3601 et seq., decisions of the United States Supreme Court, and other provisions of federal law establish the principles and standards in this section;
    2. It is difficult and expensive for citizens to readily access fundamental property rights protection in federal court; and
    3. This section is necessary to ensure property rights protection is accessible and to ensure state law is consistent with federal law.
  2. A municipality shall not regulate residential building design elements.
    1. As used in this section, “residential building design elements” means:
      1. Exterior building color;
      2. Type or style of exterior cladding material;
      3. Style or materials of roof structures, roof pitches, or porches;
      4. Exterior nonstructural architectural ornamentation;
      5. Location, design, placement, or architectural styling of windows and doors, including garage doors and garage structures;
      6. The number and types of rooms;
      7. The interior layout of rooms; and
      8. The minimum square footage of a structure.
    2. As used in this section, “residential building design elements” does not include:
      1. The height, bulk, orientation, or location of a structure on a lot; or
      2. Buffering or screening used to:
        1. Minimize visual impacts;
        2. Mitigate the impacts of light and noise; or
        3. Protect the privacy of neighbors.
  3. This section does not apply to:
    1. A structure located in an area designated as a local historic district under applicable state law;
    2. A structure located in an area designated as a historic district on the National Register of Historic Places;
    3. A structure designated as a local, state, or national historic landmark;
    4. A regulation created by a valid private covenant or other contractual agreement among property owners relating to residential building design elements, including without limitation a cooperative contractual agreement between a property owner and a municipality;
    5. A regulation directly and substantially related to the requirements of applicable state or federal building or safety codes;
    6. A regulation applied to manufactured housing in a manner consistent with applicable law;
    7. A regulation adopted as a condition for participation in the National Flood Insurance Program;
    8. A central business improvement district under the Central Business Improvement District Act, § 14-184-101 et seq.;
    9. A multifamily residential structure or other nonsingle-family dwelling;
    10. The application of a municipal policy, regulation, or ordinance affecting residential building design elements on an existing property on or before February 28, 2019, but not as to any other property thereafter;
    11. A municipal policy, regulation, or ordinance derived from the municipality's police power and directly related to an established immediate public health or safety hazard;
    12. A valid exercise of express statutory authority to regulate residential building design elements under § 14-95-101 et seq. concerning urban service districts; or
    13. A policy or regulation of an overlay district, if before the policy or regulation is implemented:
      1. Notice is provided to property owners of an overlay district under § 14-56-422;
      2. A petition to support the policy or regulation is attached with signatures of a majority of property owners in the proposed overlay district; and
      3. The overlay district makes a determination that the policy or regulation complies with the Private Property Protection Act, § 18-15-1701 et seq.

History. Acts 2019, No. 446, § 2.

Subchapter 3 — Zoning Regulations

Effective Dates. Acts 1905, No. 222, § 4: became law without Governor's signature, May 2, 1905.

Acts 1924 (3rd Ex. Sess.), No. 6, § 5: approved July 1, 1924. Emergency clause provided: “This act being necessary for the immediate preservation of the public peace, health and safety, an emergency is hereby declared to exist, and this act shall take effect and be in force from and after its passage.”

Acts 1949, No. 312, § 2: Mar. 19, 1949.

Acts 2001, No. 1198, § 2: Mar. 30, 2001. Emergency clause provided: “It is found and determined by the Eighty-third General Assembly of the State of Arkansas that Act 779 of 1999 created many situations whereby municipal boundary areas were changed rapidly and the proper coordination of land use regulations between municipal jurisdictions is nearly impossible; that urban areas of northwest Arkansas are developing rapidly and creating conflicts between the land uses in different municipalities growing into one another; that situations where zoning regulations create incompatible land uses are a hardship on property owners in these boundary areas; and that this act should have immediate effect to prevent any further undue burden on those landowners. Therefore an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

14-56-301. Authority generally.

  1. Cities of the first and second class are authorized to establish zones limiting the character of buildings that may be erected therein.
  2. Zones may be of three (3) classes:
    1. Portions of the city where manufacturing establishments may be erected or conducted;
    2. Portions of the city where business other than manufacturing may be carried on; and
    3. Portions of the city set apart for residences.

History. Acts 1924 (3rd Ex. Sess.), No. 6, § 2; Pope's Dig., § 10056; Acts 1949, No. 312, § 1; A.S.A. 1947, § 19-2805.

A.C.R.C. Notes. Acts 1924 (3rd Ex. Sess.), No. 6, § 1, provided that the beauty of surroundings constitutes a valuable property right that should be protected by law, particularly residential sections where people have established their homes.

Acts 1961, No. 115, § 1, provided that any property used for commercial purposes at or prior to the adoption of Acts 1929, No. 108 [repealed], that had been used continuously since that time for commercial purposes, together with any other contiguous property used for rental or commercial purposes regardless of the period of such use, upon application to the planning commission or governing body in a city of the first class, accompanied by an affidavit in support thereof, should be zoned for commercial use.

Case Notes

Constitutionality.

This section is within the range of the power of this state to legislate for the protection of health and the general welfare and is not violative of the Fourteenth Amendment. Herring v. Stannus, 169 Ark. 244, 275 S.W. 321 (1924).

Appeals.

Since there is generally no procedure to appeal the rezoning decisions of the cities, it is logical that either the chancery or circuit court would have jurisdiction to hear complaints on this subject. City of Conway v. Housing Auth., 266 Ark. 404, 584 S.W.2d 10 (1979).

When a municipality takes action in zoning classifications, it is exercising a legislative function and is not subject to review by the courts of its wisdom in so doing; the role of the courts is simply to determine whether or not the action of the municipality is arbitrary. City of Conway v. Housing Auth., 266 Ark. 404, 584 S.W.2d 10 (1979).

Where a chancery court agreed with a city and rezoned certain land as commercial, it exceeded its authority, since the legislature only gave the rezoning power to city councils or the legislative body of a city. City of Little Rock v. Breeding, 273 Ark. 437, 619 S.W.2d 664 (1981).

Businesses Other Than Manufacturing.

Where the city council granted the landowner a permit to use his lots for parking space and the property had been so used for some time, it was unnecessary for the landowner to petition to have such lots rezoned for business purposes, as such was the effect of the permit. City of Little Rock v. Griffin, 213 Ark. 465, 210 S.W.2d 915 (1948).

Residential Districts.

When evidence showed that there were already in the immediate vicinity numerous businesses, it was not an abuse of discretion to permit a filling station to be erected in a residential district. Herring v. Stannus, 169 Ark. 244, 275 S.W. 321 (1924).

An ordinance regulating buildings used for business purposes in residence districts of the city is valid. City of Little Rock v. Pfeifer, 169 Ark. 1027, 277 S.W. 883 (1925)Questioned byCity of Lowell v. M & N Mobile Home Park, 323 Ark. 332, 916 S.W.2d 95 (1996)Limited byCity of Little Rock v. Breeding, 273 Ark. 437, 619 S.W.2d 664 (1981)Questioned byFields v. Little Rock, 251 Ark. 811, 475 S.W.2d 509 (Ark. 1972).

Petition for rezoning was not arbitrarily denied where testimony clearly showed the house purchased in order to be converted to business purposes was in and surrounded by a residential district. City of Little Rock v. Connerly, 222 Ark. 196, 258 S.W.2d 881 (1953)Questioned byCity of Little Rock v. Andres, 237 Ark. 658, 375 S.W.2d 370 (1964).

Residential property which is adjacent to business zoned property is not automatically entitled to rezoning as business property, and this fact is so even though the highest and best use of the property might be other than residential. City of Conway v. Housing Auth., 266 Ark. 404, 584 S.W.2d 10 (1979).

Where property owners purchased the property knowing that it was zoned single family, the city's refusal to rezone the property to apartment classification did not constitute a taking for public use without compensation and was not an unreasonable limitation placed upon the use of the property, since rezoning is not justified by the mere fact that the property owners seeking the rezoning would benefit economically if the rezoning was allowed, or that the land would be put to its most remunerative use. McMinn v. City of Little Rock, 275 Ark. 458, 631 S.W.2d 288 (1982).

Zoning Ordinances.

Where a landowner obtained a permit for 90 days to violate a zoning ordinance, and refused to remove the building erected when notified, but brought a suit to enjoin the enforcement of the zoning ordinance, such action was dismissed because he had an adequate remedy at law and had not exhausted it. City of Little Rock v. Evans, 213 Ark. 522, 212 S.W.2d 28 (1948).

Failure of a city to comply with statutes in passing and putting into effect a zoning ordinance renders the ordinance invalid. Searcy v. Roberson, 224 Ark. 344, 273 S.W.2d 26 (1954).

Cited: Arnold v. City of Jonesboro, 227 Ark. 832, 302 S.W.2d 91 (1957); Ark. Release Guidance Found. v. Hummel, 245 Ark. 953, 435 S.W.2d 774 (1969); Baldridge v. City of N. Little Rock, 258 Ark. 246, 523 S.W.2d 912 (1975).

14-56-302. [Repealed.]

Publisher's Notes. This section, concerning zoning authority outside corporate limits, was repealed by Acts 1987, No. 56, § 2. The section was derived from Acts 1969, No. 379, §§ 1-3; A.S.A. 1947, §§ 19-2804.1 — 19-2804.3.

14-56-303. Height of buildings.

The city council of a city shall have power to pass ordinances limiting the height of buildings in the zones created by it, so that the beauty of monumental buildings may not be impaired by the contrast.

History. Acts 1924 (3rd Ex. Sess.), No. 6, § 4; Pope's Dig., § 10058; A.S.A. 1947, § 19-2807.

Case Notes

Constitutionality.

This section is within the range of the power of the state to legislate for the protection of health and the general welfare and is not violative of the Fourteenth Amendment. Herring v. Stannus, 169 Ark. 244, 275 S.W. 321 (1924).

Cited: Baldridge v. City of N. Little Rock, 258 Ark. 246, 523 S.W.2d 912 (1975).

14-56-304. Setback lines in cities of the second class.

    1. Upon the petition of a majority of the owners of lots, or parts thereof, in any district comprising one (1) or more blocks fronting on any residential street in any city of the second class, the city council shall have the power to prohibit, by ordinance, the use of the front part of the lots, for the distance of two-thirds (2/3) of the depth thereof from the street, for stables, barns, or other outhouses, or for stock lots.
    2. Persons already so using such property shall have six (6) months in which to remove such buildings or discontinue such use.
    1. The petitions and ordinance mentioned in subsection (a) of this section shall set forth the metes and bounds of the proposed district, which shall include both sides of the residential street, not to exceed one-half (½) the distance through the block.
    2. It shall be immaterial in what part of the proposed district the petitioners' property lies, so that the petition contains a majority of all property owners in the district.
  1. The continued occupancy of these lots by the owner contrary to the terms of an ordinance, when duly passed, shall constitute a public nuisance. The owner or proprietor of them shall, upon conviction, be fined in any sum not less than five dollars ($5.00) and not to exceed fifteen dollars ($15.00) per day for the continued violation thereof.

History. Acts 1905, No. 222, §§ 1-3, p. 562; C. & M. Dig., §§ 7687-7689; Pope's Dig., §§ 9816-9818; A.S.A. 1947, §§ 19-2808 — 19-2810.

14-56-305. Conformance required — Exceptions.

    1. When the city council shall have laid off zones, it shall not be lawful for anyone to construct or carry on within a given zone any business not authorized by the ordinance of the city establishing it, unless with special permission granted by the council of the city, or by a commission which it may create for the purpose of determining whether an exception shall be made, in the particular instance.
    2. Exceptions shall be made only for good cause.
  1. In case of abuse, the adjacent property owners shall have the right to appeal to the courts of chancery to protect their property from depreciation by reason of the setting up of exceptional business within the zone.

History. Acts 1924 (3rd Ex. Sess.), No. 6, § 3; Pope's Dig., § 10057; A.S.A. 1947, § 19-2806.

Case Notes

Constitutionality.

This section is within the range of the power of the state to legislate for the protection of health and the general welfare and is not violative of the Fourteenth Amendment. Herring v. Stannus, 169 Ark. 244, 275 S.W. 321 (1924).

Appeals.

An unreasonable and arbitrary building restriction, constituting an abuse of discretion by a city council, is void, and an aggrieved property owner is entitled to relief in equity whether provision is made therefor in the statute or ordinance or not. City of Little Rock v. Pfeifer, 169 Ark. 1027, 277 S.W. 883 (1925)Questioned byCity of Lowell v. M & N Mobile Home Park, 323 Ark. 332, 916 S.W.2d 95 (1996)Limited byCity of Little Rock v. Breeding, 273 Ark. 437, 619 S.W.2d 664 (1981)Questioned byFields v. Little Rock, 251 Ark. 811, 475 S.W.2d 509 (Ark. 1972).

Since there is generally no procedure to appeal the rezoning decisions of the cities, it is logical that either the chancery or circuit court would have jurisdiction to hear complaints on this subject. City of Conway v. Housing Auth., 266 Ark. 404, 584 S.W.2d 10 (1979).

When a municipality takes action in zoning classifications, it is exercising a legislative function and is not subject to review by the courts of its wisdom in so doing; the role of the courts is simply to determine whether or not the action of the municipality is arbitrary. City of Conway v. Housing Auth., 266 Ark. 404, 584 S.W.2d 10 (1979).

Exceptions for Good Cause.

Residentially zoned property which happened to be adjacent to established business zoned property was not automatically entitled to rezoning as business property as a matter of law where owner's requested rezoning was first attempt to invade for business purposes a residential zone. Baldridge v. City of N. Little Rock, 258 Ark. 246, 523 S.W.2d 912 (1975).

Residential property which is adjacent to business zoned property is not automatically entitled to rezoning as business property, and this fact is so even though the highest and best use of the property might be other than residential. City of Conway v. Housing Auth., 266 Ark. 404, 584 S.W.2d 10 (1979).

Nonconforming Uses.

When city council passes an ordinance creating a city planning commission, vested with the authority to grant permits for nonconforming uses, the discharge of those duties by the commission is not repugnant to the council's reserved power to issue building permits. Economy Whsle. Co. v. Rodgers, 232 Ark. 835, 340 S.W.2d 583 (1960).

A “halfway” house for the temporary lodging, counseling, guidance, and employment placement of convicts released on pardon or parole or upon completion of their sentences, operated by a nonprofit organization, was not a religious, educational, or philanthropic institution within the meaning of a city ordinance providing for permits for such institutions in residential areas as nonconforming uses. Ark. Release Guidance Found. v. Hummel, 245 Ark. 953, 435 S.W.2d 774 (1969).

14-56-306. Land use in adjacent and contiguous cities to be compatible — Definitions.

  1. If municipalities become adjacent and contiguous to one another through annexation or other procedures, then lands or properties within the boundary area of each municipality shall be zoned only for land uses which are compatible with the zoned land uses of the adjoining lands or properties, even if the adjoining lands or properties are located outside the corporate limits or are located within the corporate limits of another municipality.
  2. Adjoining lands within the boundary area shall remain zoned with a compatible land use until the governing body of each municipality which is adjacent and contiguous to the boundary area adopts a resolution agreeing to a change in the zoning of the lands or properties that adjoin one another and stating that the rezoning to a land use which is not compatible will not adversely impact the adjoined land or property.
  3. As used in this section, unless the context otherwise requires:
    1. “Adjacent and contiguous” means any time the corporate limits of one municipality come in contact with the boundaries of the corporate limits of another municipality, or if the boundaries of one municipality extend to within one thousand feet (1000') of the corporate limits of another municipality;
    2. “Boundary area” means the area of land along the municipal boundary that is:
      1. Inside the municipality and within one thousand feet (1000') of the municipality's corporate boundary that is adjacent and contiguous to another municipality; and
      2. Outside the municipality, but within the planning and zoning jurisdiction of the municipality and also within one thousand feet (1000') of the municipality's corporate boundary that is adjacent and contiguous to another municipality;
      1. “Compatible land use” means any use of lands, buildings, and structures which is harmonious to the uses and activities being conducted on the adjoining lands and properties and which does not adversely affect or unreasonably impact any use or enjoyment of the adjoined land.
      2. A compatible land use includes a land use authorized by the municipal zoning ordinance for the zone that is the equivalent to, or that is as nearly equivalent as possible to, a land use authorized by the municipal zoning ordinance; and
    3. “Municipality” means:
      1. A city of the first class;
      2. A city of the second class; or
      3. An incorporated town.
  4. This section shall apply to municipalities with planning commissions and zoning ordinances authorized under §§ 14-56-401 — 14-56-425 and shall apply to any other municipal zoning regulations authorized by Arkansas law.
  5. Notwithstanding anything contained in subsections (a)-(d) of this section, this section shall not apply to any property if the owners of the property have sought to have services extended to the property pursuant to § 14-40-2002 prior to March 30, 2001.

History. Acts 2001, No. 1198, § 1.

Case Notes

Compatible Use.

Circuit court did not err in granting an adjacent city summary judgment in a town's action alleging that the adjacent city's rezoning was not compatible with or equivalent to those of the adjacent lands in the town as required by this section. By providing affidavits and exhibits, the adjacent city established a prima facie case that its rezoning of property from agricultural to industrial was a use that was compatible with the zoned uses of the town, and the plaintiff town did not meet proof with proof. City of Bethel Heights v. City of Springdale, 2017 Ark. App. 81, 514 S.W.3d 472 (2017).

Subchapter 4 — Municipal Planning

A.C.R.C. Notes. References to “this subchapter” in §§ 14-56-40114-56-425 may not apply to § 14-56-426 which was enacted subsequently.

Effective Dates. Acts 1963, No. 36, § 3: Feb. 8, 1963. Emergency clause provided: “It is hereby found and determined by the General Assembly that the population of this State has shifted from primarily rural population to urban population; that the growth of urban population is expected to increase at a rapid pace; that many incorporated towns in this State are experiencing a rapid increase in population growth; that many of such incorporated towns do not have plans for public improvements, land use, community facilities and other factors that must be anticipated with increased population growth; that the present laws of this State do not authorize incorporated towns to establish planning agencies; and, that the immediate passage of this Act is necessary to correct such situation. Therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1965, No. 138, § 2: Mar. 2, 1965. Emergency clause provided: “It has been found and declared by the General Assembly that there is conflict and uncertainty as to the respective powers of cities and counties relative to planning under Act 186, Ark. Acts of 1957, as amended; that this has resulted in great confusion and frustration of the purposes of the aforesaid Act to the detriment of both private and public interests; that the aforesaid conflict demands immediate resolutions and the aforesaid uncertainty demands immediate clarification; and that enactment of this measure will provide an appropriate remedy. Therefore, an emergency is declared to exist, and this act, being necessary for the preservation of the public peace, health, and safety, shall take effect and be in force from the date of its approval.”

Acts 1967, No. 66, § 3: Feb. 9, 1967. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 186 of 1957, as amended, provides that members of the Municipal Planning Commissions shall receive no compensation for attendance at commission meetings, and that in many instances members of said commissions are required to devote time to attend such meetings which works undue hardships upon such members, and that the immediate passage of this Act is necessary in order that cities or towns may, if they so desire, authorize the payment of compensation to Planning Commission members for attendance at commission meetings. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1987, No. 56, § 5: Feb. 18, 1987. Emergency clause provided: “It is hereby found and determined by the General Assembly that Arkansas cities of 8,000 or more population along navigable streams must have the authority to plan and control for orderly growth outside their corporate limits to preserve the quality of life for all citizens. Therefore, an emergency is hereby declared to exist and this Act shall be in full force on the date of enactment.”

Acts 1995, No. 530, § 9: Mar. 6, 1995. Emergency clause provided: “It is hereby found and determined by the General Assembly that there is an immediate need for Arkansas cities wherein air force facilities are located to enact land use ordinances to provide for the health and safety of the residents of the area and this act so provides and should go into effect immediately. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Research References

Ark. L. Notes.

Gitelman, Time to Pay the Pfeifer: Arkansas Inches Closer to Giving Legal Effect to Comprehensive Planning, 1995 Ark. L. Notes 51.

U. Ark. Little Rock L.J.

Survey of Arkansas Law, Public Law, 1 U. Ark. Little Rock L.J. 230.

Stafford, Separation of Powers and Arkansas Administrative Agencies: Distinguishing Judicial Power and Legislative Power, 7 U. Ark. Little Rock L.J. 279.

Case Notes

Implementation.

The city can follow one or two courses in implementing this subchapter: (1) The city can secure the approval of the county court to its projected plans; in such event it seems that all questions of jurisdictional encroachment would be eliminated; or (2) it can proceed without the county court's approval; in this event it is possible that the county court will never attempt to exert any jurisdiction it may have in internal improvement matters in conflict with city plans, but the city would be taking the calculated risk. Butler v. City of Little Rock, 231 Ark. 834, 332 S.W.2d 812 (1960).

Cited: City of Little Rock v. Pfeifer, 318 Ark. 679, 887 S.W.2d 296 (1994).

14-56-401. Construction.

This subchapter shall be construed liberally. The enumeration of any object, purpose, power, manner, method, or thing shall not be deemed to exclude like or similar objects, purposes, powers, manners, methods, or things.

History. Acts 1957, No. 186, § 8; A.S.A. 1947, § 19-2831.

Case Notes

Cited: City of Jonesboro v. Vuncannon, 310 Ark. 366, 837 S.W.2d 286 (1992).

14-56-402. Authority generally.

Cities of the first and second class and incorporated towns shall have the power to adopt and enforce plans for the coordinated, adjusted, and harmonious development of the municipality and its environs.

History. Acts 1957, No. 186, § 1; 1963, No. 36, § 1; A.S.A. 1947, § 19-2825.

Case Notes

Conflict of Jurisdiction.

Where there is a conflict over the exercise of jurisdiction over roads in an unincorporated portion of the county, between the county court and any creature of the legislature, the latter must give way. Butler v. City of Little Rock, 231 Ark. 834, 332 S.W.2d 812 (1960).

Nature of Authority.

A municipal corporation's exercise of its zoning power is the equivalent of an act by the General Assembly. City of Lowell v. M & N Mobile Home Park, 323 Ark. 332, 916 S.W.2d 95 (1996).

By enacting the ordinance in question, the board approved the recommended action and amended a prior ordinance, but it rezoned the subject property and added new conditions to accommodate the rezoning and, thus, the board took legislative action delegated to it under this section; because the action was not administrative, the landowners who challenged the ordinance were not required to proceed under § 14-56-425 and the trial court had subject matter jurisdiction. Summit Mall Co. v. Lemond, 355 Ark. 190, 132 S.W.3d 725 (2003).

Rezoning Power.

Where a chancery court agreed with a city and rezoned certain land as commercial, it exceeded its authority, since the legislature only gave the rezoning power to city councils or the legislative body of a city. City of Little Rock v. Breeding, 273 Ark. 437, 619 S.W.2d 664 (1981).

Cited: Baldridge v. City of N. Little Rock, 258 Ark. 246, 523 S.W.2d 912 (1975); McMinn v. City of Little Rock, 275 Ark. 458, 631 S.W.2d 288 (1982); Potocki v. City of Ft. Smith, 279 Ark. 19, 648 S.W.2d 462 (1983); City of Fayetteville v. IBI, Inc., 280 Ark. 484, 659 S.W.2d 505 (1983); Mings v. Ft. Smith, 288 Ark. 42, 701 S.W.2d 705 (1986).

14-56-403. Purpose of plans.

  1. The plans of the municipality shall be prepared in order to promote, in accordance with present and future needs, the safety, morals, order, convenience, prosperity, and general welfare of the citizens.
  2. The plans may provide, among other things, for:
    1. Efficiency and economy in the process of development;
    2. The appropriate and best use of land;
    3. Convenience of traffic and circulation of people and goods;
    4. Safety from fire and other dangers;
    5. Adequate light and air in the use and occupancy of buildings;
    6. Healthful and convenient distribution of population;
    7. Good civic design and arrangement;
    8. Adequate public utilities and facilities; and
    9. Wise and efficient expenditure of funds.

History. Acts 1957, No. 186, § 1; 1963, No. 36, § 1; A.S.A. 1947, § 19-2825.

Case Notes

In General.

The land use plan is plainly not a zoning ordinance. It is merely a broad declaration of policy, specifying in a general way the uses to which the land in and near the city is now being put and to which it may be put in the future. The plan does not contain exact descriptions so that the property owner may ascertain what restrictions are being placed upon his land. The land use plan contains none of the details that are essential to a zoning ordinance. Economy Whsle. Co. v. Rodgers, 232 Ark. 835, 340 S.W.2d 583 (1960).

Cited: Baldridge v. City of N. Little Rock, 258 Ark. 246, 523 S.W.2d 912 (1975); McMinn v. City of Little Rock, 275 Ark. 458, 631 S.W.2d 288 (1982); Potocki v. City of Ft. Smith, 279 Ark. 19, 648 S.W.2d 462 (1983); City of Fayetteville v. IBI, Inc., 280 Ark. 484, 659 S.W.2d 505 (1983); Mings v. Ft. Smith, 288 Ark. 42, 701 S.W.2d 705 (1986); Brock v. Townsell, 2009 Ark. 224, 309 S.W.3d 179 (2009).

14-56-404. Planning commission created.

    1. The legislative body of the municipality may create a planning commission of not less than five (5) members, of whom at least two-thirds (2/3) shall not hold any other municipal office or appointment except membership in the board of adjustment or a joint planning agency.
    2. A city of the second class or an incorporated town may elect by ordinance to allow the city council to serve as the planning commission and board of adjustment under this subchapter.
  1. The legislative body may confer on the commission the powers necessary to carry out the municipal plan.

History. Acts 1957, No. 186, § 1; 1963, No. 36, § 1; A.S.A. 1947, § 19-2825; Acts 2011, No. 280, § 1.

Amendments. The 2011 amendment added the (a)(1) designation and (a)(2).

Case Notes

Authority.

The legislature has the authority to create city planning boards and to provide rules and regulations for their government. Newton v. American Sec. Co., 201 Ark. 943, 148 S.W.2d 311 (1941) (decision under prior law).

Cited: Baldridge v. City of N. Little Rock, 258 Ark. 246, 523 S.W.2d 912 (1975); McMinn v. City of Little Rock, 275 Ark. 458, 631 S.W.2d 288 (1982); Potocki v. City of Ft. Smith, 279 Ark. 19, 648 S.W.2d 462 (1983); City of Fayetteville v. IBI, Inc., 280 Ark. 484, 659 S.W.2d 505 (1983); Mings v. Ft. Smith, 288 Ark. 42, 701 S.W.2d 705 (1986).

14-56-405. Appointment of members.

  1. Appointment and terms of the members of the planning commission shall be as provided by city ordinance.
  2. The legislative body of the municipality may appoint one-third (1/3) of the membership of the commission from electors living outside the corporate limits of the municipality but within the recorded planning jurisdiction of the municipality.

History. Acts 1957, No. 186, § 2; A.S.A. 1947, § 19-2826; Acts 2005, No. 901, § 1.

Amendments. The 2005 amendment added (b).

14-56-406. Commission officers.

    1. The planning commission shall designate one (1) of its members as chair and select a vice chair and such other officers as it may require.
    2. The mayor shall serve as the chair of the planning commission if the city council is operating as the planning commission and board of adjustment under § 14-56-404(a)(2).
  1. The terms of office of the chair and other officers of the commission shall be as provided by the rules of the planning commission.

History. Acts 1957, No. 186, § 2; A.S.A. 1947, § 19-2826; Acts 2011, No. 280, § 2.

Amendments. The 2011 amendment added (a)(2); and substituted “chair” for “chairman” throughout the section.

14-56-407. Meetings of commission.

  1. Regular meeting dates shall be established providing for at least one (1) regular meeting to be held in each quarter of each calendar year.
  2. The commission shall keep a public record of all business, resolutions, transactions, findings, and determinations.

History. Acts 1957, No. 186, § 2; A.S.A. 1947, § 19-2826.

14-56-408. Rules and regulations.

The planning commission shall adopt rules and regulations for the discharge of its duties and the transaction of business.

History. Acts 1957, No. 186, § 2; A.S.A. 1947, § 19-2826.

14-56-409. Compensation of members.

The members of the municipal planning commissions established pursuant to the provisions of this subchapter shall be entitled to receive such compensation, if any, for attendance at commission meetings as may be authorized by an ordinance duly adopted by the governing body of the city.

History. Acts 1967, No. 66, § 1; A.S.A. 1947, § 19-2833.

14-56-410. Appropriations.

The municipality is authorized to appropriate funds to the planning commission to be used in carrying out its functions.

History. Acts 1957, No. 186, § 1; 1963, No. 36, § 1; A.S.A. 1947, § 19-2825.

Case Notes

Cited: Baldridge v. City of N. Little Rock, 258 Ark. 246, 523 S.W.2d 912 (1975); McMinn v. City of Little Rock, 275 Ark. 458, 631 S.W.2d 288 (1982); Potocki v. City of Ft. Smith, 279 Ark. 19, 648 S.W.2d 462 (1983); City of Fayetteville v. IBI, Inc., 280 Ark. 484, 659 S.W.2d 505 (1983); Mings v. Ft. Smith, 288 Ark. 42, 701 S.W.2d 705 (1986).

14-56-411. Purpose of commission.

The general purpose of the planning commission is to:

  1. Prepare, or have prepared, a plan of the municipality;
  2. Receive and make recommendations on public and private proposals for development;
  3. Prepare and administer planning regulations;
  4. Prepare and transmit to the legislative body recommended ordinances implementing plans; and
  5. Advise and counsel the city government and other public bodies.

History. Acts 1957, No. 186, § 3; A.S.A. 1947, § 19-2827.

Case Notes

Public Buildings.

Cities, in certain instances, have the authority to regulate some features relating to public buildings. Where the ordinance is not before the reviewing court, the court cannot make a sweeping finding that the municipality cannot regulate, in any manner, any phase, aspect, or feature relating to the construction of a public school building. Lavender v. City of Rogers, 232 Ark. 673, 339 S.W.2d 598 (1960); Lavender v. City of Rogers, 233 Ark. 161, 343 S.W.2d 103 (1961).

Rezoning.

Failure of the planning commission to give sufficient notice of their hearing on a petition for rezoning and denying request of an objector for a continuance of prior scheduling of oral surgery were not rendered immaterial by the fact that the objector was subsequently heard before the city board of directors and the chancery court. Wenderoth v. Freeze, 248 Ark. 469, 452 S.W.2d 328 (1970).

Where a previously adopted city ordinance prohibited consideration of the same property for rezoning within a year of prior rejection, the city board of directors erred when it allowed the rezoning of two lots just three months after a rezoning petition, which included those same two lots, had been rejected. Potocki v. City of Ft. Smith, 279 Ark. 19, 648 S.W.2d 462 (1983).

Cited: City of Fayetteville v. IBI, Inc., 280 Ark. 484, 659 S.W.2d 505 (1983).

14-56-412. Powers and duties of commission.

  1. Generally. The planning commission shall have the duty and function of promoting public interest in, and understanding of, the long-term coordinated municipal planning.
  2. Comprehensive Studies. The commission shall prepare a work program and make comprehensive studies of the present conditions and the probable future growth of the municipality and its neighboring territory.
  3. Planning Area Map. The commission shall prepare and maintain a map showing the general location of streets, public ways, and public property and the boundaries of the area within the territorial jurisdiction for which it will prepare plans, ordinances, and regulations. The map shall be known as the planning area map.
  4. Plans of Area. Following preparation of the planning area map, the planning commission may prepare plans for all, or any portion of, the area encompassed by the map, which may consist of maps, plats, charts, diagrams, and necessary documents and descriptive matter. The plans may include, but shall not be limited to:
    1. A master street plan;
    2. A land use plan; and
    3. A community facilities plan.
  5. Implementation of Plans. In order to promote, regulate, and control development, and to protect the various elements of the plans, the commission, after adoption of appropriate plans as provided, may prepare and transmit to the legislative body such ordinances and regulations as are deemed necessary to carry out the intent of the plans, or of parts thereof.
    1. Referral to Planning Commission. After adoption and filing as provided of a plan, no public way, ground, or open space; public building or structure; publicly or privately owned public utility line or terminal or transportation line or terminal; or public development or redevelopment or renewal project shall be acquired, constructed, or authorized unless such a project, proposal, or development has been submitted to the commission for review, recommendation, and approval as to its conformity with the plan.
    2. The commission's disapproval of a proposal submitted to it may be overruled only by a recorded vote of two-thirds (2/3) of the full membership of the submitting or authorizing body.
    3. Failure of the commission to act within sixty (60) days of the submission of the proposal shall be deemed approval unless further time is allowed by the submitting public board, commission, or body.
  6. Referral to Bodies Responsible for Land Acquisition. After adoption and filing as provided of a community facilities plan or a master street plan, no parcel of land indicated by the plan which lies within the bounds of a proposed public use facility or mapped street shall be privately developed until the public board, commission, or body having jurisdiction or financial responsibility for the reserved area shall have refused to execute a written option or to file suit for condemnation to acquire the area. This refusal shall be given by the public board, commission, or body within one (1) year of the date the action is requested by the property owner. This procedure may be enforced for the specified one (1) year period by the refusal to issue building permits or by other methods. However, it may be enforced only in cases where regulations governing the development and subdivision of land do not apply.
  7. Public Improvement Program. The commission may prepare, annually, a program for an appropriate period, recommending a coordinated program of capital expenditures for public improvements. For the purpose of preparing this program, the commission may request and receive information concerning public improvements from all public officials and public bodies.
  8. Recommendations and Reports. The commission may make recommendations and reports to the public and to public and private agencies.
  9. Surveys. The commission may enter upon land to make examinations and surveys and to maintain necessary monuments and markers thereon.
  10. Funds and Personnel. The commission may receive and spend funds from federal, state, county, municipal, and other public and private sources, may contract with respect thereto, and may hire a staff and contract for consultant services.

History. Acts 1957, No. 186, § 3; A.S.A. 1947, § 19-2827.

Case Notes

Compensation.

This section contemplates purchase or condemnation of land by the city, and in either case, the owner is to be compensated by money rather than waiver of some safety regulation, such as a fire wall requirement, completely irrelevant to the acquisition of land to widen a street. City of Jonesboro v. Vuncannon, 310 Ark. 366, 837 S.W.2d 286 (1992).

Cited: City of Fayetteville v. IBI, Inc., 280 Ark. 484, 659 S.W.2d 505 (1983).

14-56-413. Territorial jurisdiction.

      1. The territorial jurisdiction of the governing body of a municipality for the purpose of this subchapter shall not exceed the limits stated under this subsection.
      2. If the territorial limits of two (2) or more municipalities conflict, the limits of their respective territorial jurisdictions shall be a line equidistant between them, or as agreed on by the respective municipalities.
    1. In addition to the powers under this subchapter, cities now having eight thousand (8,000) population or more shall have the authority to administer and enforce planning ordinances outside their corporate limits as follows:
      1. For cities of eight thousand (8,000) to sixty thousand (60,000) population, the jurisdictional area will be one (1) mile beyond the corporate limits;
      2. For cities of sixty thousand (60,000) to one hundred fifty thousand (150,000) population, the jurisdictional area will be two (2) miles beyond the corporate limits; and
        1. For cities of one hundred fifty thousand (150,000) population and greater, the jurisdictional area will be three (3) miles beyond the corporate limits.
        2. Upon July 3, 1989, no city with a population in excess of one hundred fifty thousand (150,000) persons shall exercise any zoning authority outside the boundaries of the county wherein it is located without the approval of the quorum court of the county wherein the city is not located and the approval of the governing bodies of all other cities having zoning authority over the area.
    2. Cities having a population of eight thousand (8,000) persons or less:
      1. Shall have a jurisdictional area that does not exceed one (1) mile beyond the corporate limits; and
      2. Shall not exercise any zoning authority outside the corporate limits.
    3. Cities now having an eight thousand (8,000) population or more and situated on a navigable stream may administer and enforce zoning ordinances outside their corporate limits but may not exceed the territorial limits under subdivision (a)(2) of this section.
    4. The city populations will be based on the most recent federal decennial census.
    1. The planning commission shall designate the area within the territorial jurisdiction for which it will prepare plans, ordinances, and regulations.
    2. A description of the boundaries of the area shall be filed with the city clerk and with the county recorder.

History. Acts 1957, No. 186, §§ 3, 5; 1965, No. 134, § 1; 1965, No. 138, § 1; A.S.A. 1947, §§ 19-2827, 19-2829; Acts 1987, No. 56, §§ 1, 4; 1989, No. 94, § 1; 2011, No. 280, § 3; 2013, No. 1053, § 1.

Amendments. The 2011 amendment substituted “a city of the first class, a city of the second class, or an incorporated town” for “the city having a planning commission” in (a)(1)(A); deleted “of the first or second class” following “municipalities” in (a)(1)(B); and, in (a)(2)(A), added “In addition to the powers under this subchapter” and deleted “planning and” following “enforce.”

The 2013 amendment rewrote this section.

Case Notes

In General.

Because the Arkansas Soil and Water Conservation Commission acted within its statutory authority under § 15-22-503(e) in approving a water project submitted by a municipality that included a portion of a neighboring city's five-mile extraterritorial planning area, which was not preempted under this section by the neighboring municipality's planning authority in the five-mile area surrounding its city limits, and because the Commission's decision was supported by substantial evidence, the appellate court affirmed the Commission's order approving the municipality's water development project, as amended, for water plan compliance certification. Ark. Soil & Water Conservation Comm'n v. City of Bentonville, 351 Ark. 289, 92 S.W.3d 47 (2002).

There was no requirement in subdivision (b)(2) of this section that a map of a planning area be filed; thus, a city met the requirement of filing a “description of the boundaries” of the area by filing a legal description with the county clerk. Potter v. City of Tontitown, 371 Ark. 200, 264 S.W.3d 473 (2007).

Annexation.

Circuit court properly upheld the annexation of four tracts of real property totaling approximately 1,951 acres into the City of Sherwood, Arkansas because the City of Jacksonville's plans for the area were not superior to, and did not defeat, the landowners' right to petition for annexation to another city. City of Jacksonville v. City of Sherwood, 375 Ark. 107, 289 S.W.3d 90 (2008).

Regulation of Land Use.

Delegation of authority to regulate land use on property outside the city limits but within the city's extraterritorial-planning jurisdiction was permitted under this section, but approval of a subdivision application was unlawful due to the city's failure to prove that the necessary documents had been submitted. McLain v. City of Little Rock Planning Comm'n, 2011 Ark. App. 285, 383 S.W.3d 432 (2011).

Cited: National Lumber Co. v. Advance Dev. Corp., 293 Ark. 1, 732 S.W.2d 840 (1987); City of Fort Smith v. Didicom Towers, Inc., 362 Ark. 469, 209 S.W.3d 344 (2005); City of Dover v. City of Russellville, 363 Ark. 458, 215 S.W.3d 623 (2005).

14-56-414. Preparation of plans.

  1. Studies. The planning commission shall undertake suitable studies related to the plans to be prepared. The studies shall be conducted after the completion of the planning area map and prior to the preparation of the plans.
    1. Land Use Plan. The commission may prepare and adopt a land use plan which may include, but shall not be limited to:
      1. The reservation of open spaces;
      2. The preservation of natural and historical features, sites, and monuments;
      3. The existing uses to be retained without change;
      4. The existing uses proposed for change; and
      5. The areas proposed for new development.
    2. The plan may include areas proposed for redevelopment, rehabilitation, renewal, and similar programs.
    1. Community Facilities Plan. The commission may prepare and adopt a community facilities plan indicating the general location and extent of the service areas of, and the future requirements of:
      1. Community facilities such as schools, playgrounds, recreational areas, hospitals, special education facilities, and cultural facilities;
      2. Governmental buildings and areas;
      3. Public and private utility terminals and lines; and
      4. Transportation terminals and lines.
    2. The plan may indicate areas to be reserved for future public acquisition as provided in this subchapter.
    1. Master Street Plan. The commission may prepare and adopt a master street plan which shall designate the general location, characteristics, and functions of streets and highways.
      1. The plan shall include the general locations of streets and highways to be reserved for future public acquisition.
      2. The plan may provide for the removal, relocation, widening, narrowing, vacating, abandonment, and change of use or extension of any public ways.
  2. Other Plans. The commission may prepare and adopt such other plans as are significant to the health, safety, and general welfare of the municipality and its environs.

History. Acts 1957, No. 186, § 4; A.S.A. 1947, § 19-2828.

Case Notes

Community Facilities Plans.

Where a city's comprehensive land use and public facilities plan was nothing more than a statement of broad possibilities for the future, the city was not justified in exacting cash contributions from private developers for future establishment of park areas when no location for any future park had been determined, and there was apparently no way of determining when, if ever, the contributed money would be spent, or where, other than in the district, or for what, except as the planning commission might eventually decide. City of Fayetteville v. IBI, Inc., 280 Ark. 484, 659 S.W.2d 505 (1983).

Land Use Plans.

The land use plan is plainly not a zoning ordinance. It is merely a broad declaration of policy, specifying in a general way the uses to which the land in and near the city is now being put and to which it may be put in the future. The plan does not contain exact descriptions so that the property owner may ascertain what restrictions are being placed upon his land. The land use plan contains none of the details that are essential to a zoning ordinance. Economy Whsle. Co. v. Rodgers, 232 Ark. 835, 340 S.W.2d 583 (1960).

Where a plan was accepted by the city as a “land use” guide and the plan included a “land use plan” which included policy statements, general design considerations, proposed land uses, and projections as to future land use needs, this sufficed for compliance with this section. Taylor v. City of Little Rock, 266 Ark. 384, 583 S.W.2d 72 (1979).

Cited: City of Little Rock v. Linn, 245 Ark. 260, 432 S.W.2d 455 (1968); Rickman v. Mobbs, 253 Ark. 969, 490 S.W.2d 129 (1973); City of Fayetteville v. IBI, Inc., 280 Ark. 484, 659 S.W.2d 505 (1983); McLain v. City of Little Rock Planning Comm'n, 2011 Ark. App. 285, 383 S.W.3d 432 (2011).

14-56-415. Plan recommendations.

Following the adoption and filing of any plan, the planning commission may transmit to the legislative body, for enactment, recommended ordinances and regulations which will carry out or protect the various elements of the plan.

History. Acts 1957, No. 186, § 5; 1965, No. 134, § 1; A.S.A. 1947, § 19-2829.

Research References

Ark. L. Notes.

Gitelman, Time to Pay the Pfeifer: Arkansas Inches Closer to Giving Legal Effect to Comprehensive Planning, 1995 Ark. L. Notes 51.

Case Notes

Acceptance.

The insertion of the word “adopt” into the resolution accepting the plan as a land use guide is not a necessary prerequisite for compliance with this section; certainly, use of the word “accepts” falls within the spirit of the law. Taylor v. City of Little Rock, 266 Ark. 384, 583 S.W.2d 72 (1979).

Cited: City of Little Rock v. Linn, 245 Ark. 260, 432 S.W.2d 455 (1968); Rickman v. Mobbs, 253 Ark. 969, 490 S.W.2d 129 (1973); National Lumber Co. v. Advance Dev. Corp., 293 Ark. 1, 732 S.W.2d 840 (1987); McLain v. City of Little Rock Planning Comm'n, 2011 Ark. App. 285, 383 S.W.3d 432 (2011).

14-56-416. Zoning ordinance.

    1. Following adoption and filing of the land use plan, the commission may prepare for submission to the legislative body a recommended zoning ordinance for the entire area of the municipality.
    2. The ordinance shall consist of both a map and a text.
      1. The ordinance may regulate the location, height, bulk, number of stories, and size of buildings; open space; lot coverage; density and distribution of population; and the uses of land, buildings, and structures.
      2. The ordinance may require off-street parking and loading.
      3. The ordinance may provide for districts, of compatible uses, for large scale unified development, for elimination of uses not in conformance with provisions of the ordinance, and for such other matters as are necessary to the health, safety, and general welfare of the municipality.
      4. The ordinance shall include provisions for administration and enforcement.
        1. The ordinance shall designate districts or zones of such shape, size, or characteristics as deemed advisable.
        2. The regulations imposed within each district or zone shall be uniform throughout the district or zone.
    1. The ordinance shall provide for a board of zoning adjustment, which may either be composed of at least three (3) members, or the commission as a whole may sit as the board of zoning adjustment.
    2. The board shall have the following functions:
      1. Hear appeals from the decision of the administrative officers in respect to the enforcement and application of the ordinance, and may affirm or reverse, in whole or in part, the decision of the administrative officer;
          1. Hear requests for variances from the literal provisions of the zoning ordinance in instances where strict enforcement of the ordinance would cause undue hardship due to circumstances unique to the individual property under consideration, and grant such variances only when it is demonstrated that such action will be in keeping with the spirit and intent of the provisions of the ordinance.
          2. The board shall not permit, as a variance, any use in a zone that is not permitted under the ordinance.
          3. The board may impose conditions in the granting of a variance to insure compliance and to protect adjacent property.
        1. Decisions of the board in respect to the above shall be subject to appeal only to a court of record having jurisdiction.
      1. The board shall establish regular meeting dates, adopt rules for the conduct of its business, establish a quorum and procedure, and keep a public record of all findings and decisions.
      2. Each session of the board shall be a public meeting with public notice of the meeting and business to be carried on published in a newspaper of general circulation in the city, at least one (1) time seven (7) days prior to the meeting.
  1. The ordinance shall be observed through denial of the issuance of building permits and use permits.

History. Acts 1957, No. 186, § 5; 1965, No. 134, § 1; A.S.A. 1947, § 19-2829.

Research References

ALR.

Validity of Zoning Regulations Prohibiting or Regulating Removal or Exploitation of Oil and Gas, Including Hydrofracking. 84 A.L.R.6th 133.

U. Ark. Little Rock L. Rev.

Justin Craig, Note: Municipal Police Power & Its Adverse Effects on Small Businesses in Arkansas: A Proposal for Reform, 36 U. Ark. Little Rock L. Rev. 177 (2014).

Case Notes

In General.

This section applies only to zoning laws that affect an entire city and, therefore, did not apply to an ordinance which dealt only with a small portion of a city. Craft v. City of Fort Smith, 335 Ark. 417, 984 S.W.2d 22 (1998).

Appeals.

This section provides no limitations as to persons or entities which may bring an appeal, and a city had standing to appeal from the order of its board of zoning adjustment reinstating a building permit. City of Paragould v. Leath, 266 Ark. 390, 583 S.W.2d 76 (1979).

In spite of the language of Wenderoth v. City of Fort Smith, 251 Ark. 342, 472 S.W.2d 74 (1971), which held § 14-56-425 unconstitutional when applied to allow de novo review of zoning or rezoning ordinances enacted by city legislative bodies, the provision of this section requiring appeals to a court of record from actions of a board of zoning adjustment is not subject to the constitutional limitations applicable to city council zoning actions because the board of adjustment acts administratively, not legislatively; appeals to the circuit court from the board of adjustment are permitted. City of Paragould v. Leath, 266 Ark. 390, 583 S.W.2d 76 (1979).

In an appeal from the lower court's affirmance of the Board of Adjustment's decision to grant a zoning variance to a restaurant despite having inadequate parking facilities on its property, the Board and lower court properly found, pursuant to this section, that the intended use of the property for a restaurant (for which the property was zoned) and the concomitant need for an additional five off-site parking spaces was an undue hardship that would have negligible adverse impact on other property and that granting a variance to accommodate the use was in keeping with the spirit and intent of the provisions of the ordinance. Loca Luna, LLC v. Bd. of Adjustment, 2013 Ark. App. 336 (2013).

Building Permits.

A city cannot test the validity of a building permit issued by its own agency by collaterally attacking its correctness in an original injunctive proceeding in chancery court. City of Paragould v. Leath, 266 Ark. 390, 583 S.W.2d 76 (1979).

Compliance with Section.

Compliance with subdivision (a)(2) is mandatory, and failure to comply with it will render a zoning ordinance void. Osborne v. City of Camden, 301 Ark. 420, 784 S.W.2d 596 (1990); Brooks v. City of Benton, 308 Ark. 571, 826 S.W.2d 259 (1992).

Location, Etc., of Buildings.

The board of adjustment is vested with the power and authority to permit the enlargement of a building. Williams v. Kuehnert, 243 Ark. 746, 421 S.W.2d 896 (1967).

Nonconforming Uses.

A board of adjustment was justified in authorizing the enlargement of a kindergarten being operated in a residential district as a pre-existing nonconforming use of the property by the fact that the health department required such enlargement as a condition to the continued operation of the kindergarten. Williams v. Kuehnert, 243 Ark. 746, 421 S.W.2d 896 (1967).

Where the local zoning ordinance required the board of adjustment to permit the location of an educational use in a district where such use was otherwise prohibited, it was not necessary for the property owner to show undue hardship to obtain authority from the board to enlarge a kindergarten being operated in a residential district as a preexisting nonconforming use. Williams v. Kuehnert, 243 Ark. 746, 421 S.W.2d 896 (1967).

Conway, Ark., Ordinance 0-94-54 may be read harmoniously with § 20-17-903; municipalities that had passed a relevant zoning ordinance in accordance with this section could regulate the construction and expansion of cemeteries pursuant to the ordinance, and municipalities that had not done so had only the benefit of §§ 20-17-903, 14-54-802, and 14-54-803, such that the city's denial of the landowner's request for a conditional-use-permit precluded the establishment of a cemetery on his property. Brock v. Townsell, 2009 Ark. 224, 309 S.W.3d 179 (2009).

Procedure.

When property owners and builder requested a writ of mandamus in circuit court, challenging a city's stop-work order on a building permit issued to the builder to construct a garage, the circuit court lacked jurisdiction as the builder and property owners prematurely circumvented the appellate process by filing a writ of mandamus prior to the board of zoning adjustment's reaching a final decision on the matter. Douglas v. City of Cabot, 347 Ark. 1, 59 S.W.3d 430 (2001).

Rezoning.

Where a previously adopted city ordinance prohibited consideration of the same property for rezoning within a year of prior rejection, the city board of directors erred when it allowed the rezoning of two lots just three months after a rezoning petition, which included those same two lots, had been rejected. Potocki v. City of Ft. Smith, 279 Ark. 19, 648 S.W.2d 462 (1983).

Variances.

In an appeal by an association of property owners of real estate in several contiguous subdivisions from a decision of the board of zoning adjustment denying a variation to permit the association to construct and operate a swimming pool and recreation area in the community for the use of residents thereof, testimony of real estate salesman that lots in subdivisions containing such facilities brought higher prices and of another witness that he could not conceive of a situation where such facilities properly constructed and operated would lessen the value of surrounding property were sufficient to sustain the circuit court's decision granting the variance. City of Little Rock v. Leawood Property Owners Ass'n, 242 Ark. 451, 413 S.W.2d 877 (1967).

Evidence that the owner of an office building did not have adequate parking space for his tenants and had acquired two vacant lots nearby was sufficient to support his request for a variance to permit additions to the building and the establishment of a parking lot on the two vacant lots and to sustain the trial court's finding that strict enforcement of the zoning ordinance would cause undue hardship due to circumstances unique to the individual property under consideration. City of Little Rock v. Kaufman, 249 Ark. 530, 460 S.W.2d 88 (1970).

Where the board of adjustment produced expert testimony to the effect that release of traffic from the lot onto the street would threaten the residential character of the neighborhood to the north, and where the director of comprehensive planning and the former director both testified that the original variance had created problems for the city, and that the granting of the variance requested would not alleviate the problem and would, instead, have a substantially adverse effect on the residential neighborhood to the north, this testimony clearly constituted substantial evidence to support the denial of the zoning variance. Deboha II v. Summerlin, 266 Ark. 1037, 589 S.W.2d 206 (Ct. App. 1979).

Zoning Map.

The purpose of the map requirement is to give notice of a zoning proposal so that, before adoption, residents may object or make suggestions, and after adoption, purchasers and users may acquaint themselves with the zoning restrictions. Brooks v. City of Benton, 308 Ark. 571, 826 S.W.2d 259 (1992).

Cited: City of Little Rock v. Linn, 245 Ark. 260, 432 S.W.2d 455 (1968); Rickman v. Mobbs, 253 Ark. 969, 490 S.W.2d 129 (1973); National Lumber Co. v. Advance Dev. Corp., 293 Ark. 1, 732 S.W.2d 840 (1987); Kennedy v. Papp, 294 Ark. 88, 741 S.W.2d 625 (1987); City of Fort Smith v. Didicom Towers, Inc., 362 Ark. 469, 209 S.W.3d 344 (2005); Talley v. City of N. Little Rock, 2009 Ark. 601, 381 S.W.3d 753 (2009).

14-56-417. Regulations to control development of land.

    1. Following adoption and filing of a master street plan, the planning commission may prepare and shall administer, after approval of the legislative body, regulations controlling the development of land.
    2. The development of land includes, but is not limited to:
      1. The provision of access to lots and parcels;
      2. The extension or provision of utilities;
      3. The subdividing of land into lots and blocks; and
      4. The parceling of land resulting in the need for access and utilities.
    1. The regulations controlling the development of land may establish or provide for the minimum requirements as to:
      1. Information to be included on the plat filed for record;
      2. The design and layout of the subdivision, including standards for lots and blocks, street rights-of-way, street and utility grades, consideration of school district boundaries, and other similar items; and
      3. The standards for improvements to be installed by the developer at his or her own expense such as:
        1. Street grading and paving;
        2. Curbs, gutters, and sidewalks;
        3. Water, storm, and sewer mains;
        4. Street lighting; and
        5. Other amenities.
      1. The regulations may permit the developer to post a performance bond in lieu of actual installation of required improvements before plat approval.
      2. They may provide for the dedication of all rights-of-way to the public.
      1. The regulations may govern lot or parcel splits, which is the dividing of an existing lot or parcel into two (2) or more lots or parcels.
      2. No deed or other instrument of transfer shall be accepted by the county recorder for record unless the deed or other instrument of transfer is to a lot or parcel platted and on file or accompanied with a plat approved by the commission.
    2. The regulations shall establish the procedure to be followed to secure plat approval by the commission.
      1. The regulations shall require the developer to conform to the plan currently in effect.
        1. The regulations may require the reservation for future public acquisition of land for community or public facilities indicated in the plan.
        2. This reservation may extend over a period of not more than one (1) year from the time the public body responsible for the acquisition of reserved land is notified of the developer's intent.
    3. When a proposed subdivision does not provide areas for a community or public facility based on the plans in effect, the regulations may provide for reasonable dedication of land for such public or community facilities or for a reasonable equivalent contribution in lieu of dedication of land, such contribution to be used for the acquisition of facilities that serve the subdivision.
  1. Within the area within which the municipality intends to exercise its territorial jurisdiction as indicated on the planning area map, the county recorder shall not accept any plat for record without the approval of the planning commission.

History. Acts 1957, No. 186, § 5; 1965, No. 134, § 1; A.S.A. 1947, § 19-2829; Acts 2005, No. 2144, § 4.

Amendments. The 2005 amendment inserted “consideration of school district boundaries” in (b)(1)(B).

Research References

ALR.

Validity of Zoning Regulations Prohibiting or Regulating Removal or Exploitation of Oil and Gas, Including Hydrofracking. 84 A.L.R.6th 133.

Ark. L. Rev.

Note, Dolan v. City of Tigard: Paving New Bicycle Paths Through the Thickets of the Fifth Amendment's Takings Clause, 48 Ark. L. Rev. 823.

Case Notes

Constitutionality.

This section is not unconstitutional per se. City of Jonesboro v. Vuncannon, 310 Ark. 366, 837 S.W.2d 286 (1992).

Construction.

The “development of land” contemplated in subdivisions (a)(2)(A) through (D) of this section has to do with land which is not yet developed. City of Jonesboro v. Vuncannon, 310 Ark. 366, 837 S.W.2d 286 (1992).

Plats Filed for Record.

In mandamus proceeding to compel circuit clerk to record plat not approved by city planning board because of refusal to dedicate additional strips for roads, court was held not authorized, without any evidence and without any claim that the board acted arbitrarily, to set aside its judgment. Newton v. American Sec. Co., 201 Ark. 943, 148 S.W.2d 311 (1941) (decision under prior law).

In mandamus proceedings to compel circuit clerk to record plat not approved by city planning board because of refusal to dedicate additional strips for roads, trial court's holding that action of the board was unauthorized because no provision was made for compensation to the landowner was held erroneous. Newton v. American Sec. Co., 201 Ark. 943, 148 S.W.2d 311 (1941) (decision under prior law).

Approval of bill of assurance and plat of subdivision by planning commission did nothing more than entitle the owner to place them of record, and such approval did not operate to confer standing upon landowners outside the subdivision to enforce the bill of assurance. Cases holding that owners of nearby property may challenge changes in zoning, even though they own no property in the rezoned area, have no applicability where it does not appear that there was any zoning of the subdivision in question. Rickman v. Mobbs, 253 Ark. 969, 490 S.W.2d 129 (1973).

Cited: City of Little Rock v. Linn, 245 Ark. 260, 432 S.W.2d 455 (1968); Rickman v. Mobbs, 253 Ark. 969, 490 S.W.2d 129 (1973); National Lumber Co. v. Advance Dev. Corp., 293 Ark. 1, 732 S.W.2d 840 (1987); Kennedy v. Papp, 294 Ark. 88, 741 S.W.2d 625 (1987); McLain v. City of Little Rock Planning Comm'n, 2011 Ark. App. 285, 383 S.W.3d 432 (2011).

14-56-418. Setback ordinance.

When a master street plan has been adopted and filed as provided, the legislative body of the city, upon recommendation of the commission, may enact ordinances establishing setback lines on such streets and highways as are designated by the plan and may prohibit the establishment of any new structure or other improvements within the setback lines.

History. Acts 1957, No. 186, § 5; 1965, No. 134, § 1; A.S.A. 1947, § 19-2829; Acts 1991, No. 620, § 1.

Case Notes

Cited: City of Little Rock v. Linn, 245 Ark. 260, 432 S.W.2d 455 (1968); Rickman v. Mobbs, 253 Ark. 969, 490 S.W.2d 129 (1973); National Lumber Co. v. Advance Dev. Corp., 293 Ark. 1, 732 S.W.2d 840 (1987).

14-56-419. Control of road entry.

Following the adoption and filing of a master street plan as provided, the legislative body, upon recommendation of the commission, may enact ordinances providing for the control of entry into any of the major streets and highways shown in the plan.

History. Acts 1957, No. 186, § 5; 1965, No. 134, § 1; A.S.A. 1947, § 19-2829.

Case Notes

Controlled Access Highways.

In determining amount of compensation due to landowners whose property was condemned for a service road along a controlled access highway, § 27-68-101 et seq., governing controlled access facilities, and not this section, were applicable. Accordingly, a city ordinance requiring the owner and developer of land abutting a controlled access highway to construct a service road at his own expense and dedicate it to the city was in conflict with the controlling statutes and would constitute a taking of private property without due process in violation of Ark. Const., Art. 2, § 22. Calabria v. City of Fayetteville, 277 Ark. 489, 644 S.W.2d 249 (1982).

This section deals exclusively and comprehensively with subdivisions across the state, while § 27-68-101 et seq. address themselves to controlled access facilities as defined in these provisions; a subdivision is not a controlled access facility, even though it may abut one and it does not appear inconsistent considering the separate purposes of the statutory provisions that a developer should receive compensation for giving up a right-of-way along a controlled access facility while having to relinquish title and control of the streets within a subdivision without being compensated. Calabria v. City of Fayetteville, 277 Ark. 489, 644 S.W.2d 249 (1982).

Cited: City of Little Rock v. Linn, 245 Ark. 260, 432 S.W.2d 455 (1968); Rickman v. Mobbs, 253 Ark. 969, 490 S.W.2d 129 (1973); National Lumber Co. v. Advance Dev. Corp., 293 Ark. 1, 732 S.W.2d 840 (1987).

14-56-420. Adoption and amendment procedures.

Any of the recommended ordinances and regulations that may be prepared by the commission shall be adopted or amended only in conformance with procedures specified in § 14-56-422.

History. Acts 1957, No. 186, § 5; 1965, No. 134, § 1; A.S.A. 1947, § 19-2829.

Case Notes

Cited: City of Little Rock v. Linn, 245 Ark. 260, 432 S.W.2d 455 (1968); Rickman v. Mobbs, 253 Ark. 969, 490 S.W.2d 129 (1973); National Lumber Co. v. Advance Dev. Corp., 293 Ark. 1, 732 S.W.2d 840 (1987); City of Fordyce v. Vaughn, 300 Ark. 554, 781 S.W.2d 6 (1989).

14-56-421. Enforcement of ordinances and regulations.

    1. Violations of any provision of ordinances and regulations adopted to carry out the intent of plans shall be considered a misdemeanor.
    2. Each day's violation shall be considered a separate offense.
    1. The legislative body may enjoin any individual or property owner who is in violation of a planning ordinance to prevent or correct the violation.
    2. Any individual aggrieved by a violation of the ordinance may request an injunction against any individual or property owner in violation of the ordinance, or may mandamus any official to enforce the provisions of the ordinance.

History. Acts 1957, No. 186, § 5; 1965, No. 134, § 1; A.S.A. 1947, § 19-2829.

Case Notes

Sign Ordinances.

A municipal sign ordinance which provided for summary removal of signs upon determination by the city's building inspector that a particular sign was unlawfully maintained was not ultra vires, for the penalty provisions set out in this section are not exclusive. Osage Oil & Transp., Inc. v. City of Fayetteville, 260 Ark. 448, 541 S.W.2d 922 (1976).

Enjoining of Violations.

This section does not unconstitutionally enlarge jurisdiction of chancery courts by permitting the city to enjoin violations of zoning ordinances. Bassett v. City of Fayetteville, 282 Ark. 395, 669 S.W.2d 1 (1984).

Cited: City of Little Rock v. Linn, 245 Ark. 260, 432 S.W.2d 455 (1968); Rickman v. Mobbs, 253 Ark. 969, 490 S.W.2d 129 (1973); National Lumber Co. v. Advance Dev. Corp., 293 Ark. 1, 732 S.W.2d 840 (1987).

14-56-422. Adoption of plans, ordinances, and regulations.

All plans, recommended ordinances, and regulations shall be adopted through the following procedure:

    1. The planning commission shall hold a public hearing on the plans, ordinances, and regulations proposed under this subchapter.
    2. Notice of public hearing shall be published in a newspaper of general circulation in the city at least one (1) time fifteen (15) days prior to the hearing.
    3. Notice by first class mail to the boards of directors of all school districts affected by a proposed plan, ordinance, or regulation shall be provided sufficiently in advance to allow representatives of all affected school districts a reasonable opportunity to submit comments on any proposed plan, ordinance, or regulation.
  1. Following the public hearing, proposed plans may be adopted and proposed ordinances and regulations may be recommended as presented or in modified form by a majority vote of the entire commission.
  2. Following its adoption of plans and recommendation of ordinances and regulations, the commission shall certify adopted plans or recommended ordinances and regulations to the legislative body of the city for its adoption.
  3. The legislative body of the city may return the plans and recommended ordinances and regulations to the commission for further study or recertification or by a majority vote of the entire membership may adopt by ordinance or resolution the plans and recommended ordinances or regulations submitted by the commission. However, nothing in this subchapter shall be construed to limit the city council's authority to recall the ordinances and resolutions by a vote of a majority of the council.
  4. Following adoption by the legislative body, the adopted plans, ordinances, and regulations shall be filed in the office of the city clerk. The city clerk shall file the plans, ordinances, and regulations as pertain to the territory beyond the corporate limits with the county recorder of the counties in which territorial jurisdiction is being exercised.

History. Acts 1957, No. 186, § 6; 1959, No. 128, § 1; A.S.A. 1947, § 19-2830; Acts 2005, No. 2144, § 5.

Amendments. The 2005 amendment added (1)(C).

Case Notes

Construction.

Section 14-56-423 permits a change in the zoning plan, or rezoning, by a majority vote of the city council, without following the procedure requiring further planning by the commission as prescribed in this section. City of Russellville v. Banner Real Estate, 326 Ark. 673, 933 S.W.2d 803 (1996).

Compliance with Ordinance.

Nothing requires a city to create a planning commission or to delegate authority to it by ordinance; having chosen to do so, however, the city must abide by its own decisions until the ordinance is legally altered or repealed in accordance with the law. City of Fordyce v. Vaughn, 300 Ark. 554, 781 S.W.2d 6 (1989).

Substantial Compliance with Section.

Where zoning ordinance map was filed in city's planning and code enforcement office, and not the city clerk's office, and citizens who went to the clerk's office and asked for a zoning map were referred to the planning office, such a filing did not render the ordinance invalid as there was substantial compliance with the statute. Osborne v. City of Camden, 301 Ark. 420, 784 S.W.2d 596 (1990).

Cited: Corning v. Watson, 252 Ark. 1277, 482 S.W.2d 797 (1972); Tillery v. Meadows Constr. Co., 284 Ark. 241, 681 S.W.2d 330 (1984).

14-56-423. Change in plans, etc.

After adoption of plans, ordinances, and regulations and proper filing in the offices of city clerk and county recorder, no alteration, amendment, extension, abridgement, or discontinuance of the plans, ordinances, or regulations may be made except in conformance with the procedure prescribed in § 14-56-422, or by a majority vote of the city council.

History. Acts 1957, No. 186, § 6; 1959, No. 128, § 2; A.S.A. 1947, § 19-2830.

Case Notes

Construction.

This section permits a change in the zoning plan, or rezoning, by a majority vote of the city council, without following the procedure requiring further planning by the commission as prescribed in § 14-56-422. City of Russellville v. Banner Real Estate, 326 Ark. 673, 933 S.W.2d 803 (1996).

Amendment Procedures.

Where ordinance did not provide for the alternative method of amendment of boundaries by vote of city council, but, instead, provided for amendment only through the complete planning procedure, such choice of procedures did not conflict with this section, for it simply continued to authorize the more extensive planning procedure. Taggart & Taggart Seed Co. v. City of Augusta, 278 Ark. 570, 647 S.W.2d 458 (1983).

Where comprehensive zoning ordinance provided for amendment of boundaries only through complete planning procedure, such provision was mandatory, and subsequent ordinance attempting to change boundary without complying with procedural requirements was invalid. Taggart & Taggart Seed Co. v. City of Augusta, 278 Ark. 570, 647 S.W.2d 458 (1983).

Cited: Corning v. Watson, 252 Ark. 1277, 482 S.W.2d 797 (1972); Tillery v. Meadows Constr. Co., 284 Ark. 241, 681 S.W.2d 330 (1984).

14-56-424. Existing plans, etc.

  1. All plans, ordinances, regulations, or amendments thereto shall comply with the provisions of this subchapter.
  2. Nothing in this subchapter shall invalidate any plans, ordinances, or regulations duly adopted in accordance with the statutes in effect at the time of adoption.
  3. No alteration or amendments may be made to plans, ordinances, and regulations unless in conformity with the provisions of this subchapter.

History. Acts 1957, No. 186, § 6; A.S.A. 1947, § 19-2830.

Case Notes

Cited: Corning v. Watson, 252 Ark. 1277, 482 S.W.2d 797 (1972); Tillery v. Meadows Constr. Co., 284 Ark. 241, 681 S.W.2d 330 (1984).

14-56-425. Appeals to circuit court.

    1. Appeals from the final administrative or quasi-judicial decision by the municipal body administering this subchapter shall be taken to the circuit court of the appropriate county using the same procedure as for administrative appeals of the District Court Rules of the Supreme Court.
    2. The final administrative or quasi-judicial decision shall be tried de novo with the right to a trial by jury.
    1. Appeals from the passage of legislative rezoning decisions by the municipal governing body administering this subchapter shall be taken to the circuit court of the county in which the rezoning was authorized using the same procedure as for administrative appeals of the District Court Rules of the Supreme Court.
    2. The legislative rezoning decision shall be reviewed by the court, and the decision shall be upheld unless it is arbitrary or capricious or lacking a rational basis.

History. Acts 1957, No. 186, § 7; 1965, No. 134, § 2; A.S.A. 1947, § 19-2830.1; Acts 2013, No. 749, § 1.

A.C.R.C. Notes. In view of the decision in Wenderoth v. City of Ft. Smith, 251 Ark. 342, 472 S.W.2d 74 (1971), the word “legislative” following “administrative and quasi-judicial” has been deleted preceding “agencies” as unconstitutional.

Amendments. The 2013 amendment rewrote the section.

Research References

Ark. L. Rev.

Antley, Judicial Review of Non-Court Decisions: A Constitutionally Based Examination of Arkansas' Review System, 49 Ark. L. Rev. 425.

Recent Developments: Administrative Agencies–Appellate Procedure, 59 Ark. L. Rev. 511.

Case Note, Lost in Translation: Combs v. City of Springdale, An Overview of the Ins and Outs of Appeals Procedure for Administrative Decisions by Local Governments, 61 Ark. L. Rev. 351.

U. Ark. Little Rock L. Rev.

Annual Survey of Case Law: Practice, Procedure, and Courts, 29 U. Ark. Little Rock L. Rev. 905.

Case Notes

Constitutionality.

This section is not void for vagueness, notwithstanding the contention that it fails to give adequate notice of the proper procedure for perfecting an appeal from the decision of a city planning commission, since the statute's requirements may be adequately determined by reference to a prior decision of the court. Night Clubs, Inc. v. Fort Smith Planning Comm'n, 336 Ark. 130, 984 S.W.2d 418 (1999).

Administrative Agencies.

In spite of the language of Wenderoth v. City of Ft. Smith, 251 Ark. 342, 472 S.W.2d 74 (1971), which held this section unconstitutional when applied to allow de novo review of zoning or rezoning ordinances enacted by city legislative bodies, the provision of § 14-56-416 requiring appeals to a court of record from actions of a board of zoning adjustment is not subject to the constitutional limitations applicable to city council zoning actions because the board of adjustment acts administratively, not legislatively; appeals to the circuit court from the board of adjustment are permitted. City of Paragould v. Leath, 266 Ark. 390, 583 S.W.2d 76 (1979).

Pursuant to this section, the city's Board of Zoning Adjustment (BZA) was an administrative agency and did not have power to legislate; the city's BZA was acting in an adjudicatory or quasi-judicial manner when it denied the owner's variance request; the statute was constitutional as it did not violate the doctrine of separation of powers, expressed in Ark. Const., Art. 4, § 2. City of Fort Smith v. McCutchen, 372 Ark. 541, 279 S.W.3d 78 (2008).

Collateral Attacks.

A city cannot test the validity of a building permit issued by its own agency by collaterally attacking its correctness in an original injunctive proceeding in chancery court. City of Paragould v. Leath, 266 Ark. 390, 583 S.W.2d 76 (1979).

Compliance with Court Rules.

In landowner's challenge to a decision by the board of zoning adjustment that he had abandoned a nonconforming use of the property, the circuit court never had jurisdiction where the landowner failed to perfect his appeal in the time and manner provided by AICR 9. Board of Zoning Adjustment v. Cheek, 328 Ark. 18, 942 S.W.2d 821 (1997).

Trial court had jurisdiction to hear landowners' appeal as their affidavit was sufficient to comply with Pulaski County, Ark., Dist. Ct. R. 9(c) where the substance of the affidavit and the clerk's response made clear that the record was not available to the landowners on July 7 and would not be available until after it was transcribed and approved by the city board of directors. Nettles v. City of Little Rock, 96 Ark. App. 86, 238 S.W.3d 635 (2006).

Where the city council permitted a landowner to make curb cuts in front of his home that were contrary to the development plans' uniform design, the developers did not appeal that decision within thirty days as required by Ark. Dist. Ct. R. 9. The trial court did not have jurisdiction over their complaint and appeal filed a year later; the developers did not file either a certified copy of the city council's proceedings or an affidavit stating that they could not timely file the record. Franks v. Mt. View, 99 Ark. App. 205, 258 S.W.3d 799 (2007).

Landowner's complaint filed in circuit court was not an appeal of final action taken by the City Council, but was, instead, a complaint against the mayor based on his alleged failure to comply with a mandatory duty; therefore, this section did not apply, and the landowner was not required to comply with the directives of Ark. Dist. Ct. R. 9, and the circuit court had subject-matter jurisdiction of his claims. Brock v. Townsell, 2009 Ark. 224, 309 S.W.3d 179 (2009).

Because a construction company failed to perfect its appeal of the final decision of a city's planning commission in the time and manner provided by Ark. Dist. Ct. R. 9, the trial court did not have jurisdiction to hear it, and the commission's decision was a final action under this section since it ended the controversy and left no issues to be resolved as to the right-of-way requirement; because the decision was a final action, the company was required to comply with the directives of Rule 9 in filing an appeal, but it did not file its complaint until more than thirty days after the commission's decision, and failure to comply with the requirements of Rule 9 prevented the trial court from acquiring subject-matter jurisdiction. Ark. Constr. & Excavation, LLC v. City of Maumelle, 2009 Ark. App. 874 (2009).

Procedure.

When property owners and builder requested a writ of mandamus in circuit court, challenging a city's stop-work order on a building permit issued to the builder to construct a garage, the circuit court lacked jurisdiction as the builder and property owners prematurely circumvented the appellate process by filing a writ of mandamus prior to the board of zoning adjustment's reaching a final decision on the matter. Douglas v. City of Cabot, 347 Ark. 1, 59 S.W.3d 430 (2001).

Property owners' appeal of a trial court's order dismissing the property owners' challenge to an action taken by a city planning commission regarding a proposed mobile home park, on the grounds that the owners' lacked standing to bring the challenge, was dismissed by the appellate court for lack of jurisdiction because the commission's action was not final for the purposes of this section; although the term “final action” is not defined in this section, the court used principles drawn from other cases dealing with different issues and determined that the commission's action was not final, as there were several issues that still needed to be considered by the commission before it took final action on the proposal. Stromwall v. City of Springdale Planning Comm'n, 350 Ark. 281, 86 S.W.3d 844 (2002).

By enacting the ordinance in question, the board approved the recommended action and amended a prior ordinance, but it rezoned the subject property and added new conditions to accommodate the rezoning, and thus the board took legislative action delegated to it under § 14-56-402; because the action was not administrative, the landowners who challenged the ordinance were not required to proceed under this section and the trial court had subject matter jurisdiction. Summit Mall Co. v. Lemond, 355 Ark. 190, 132 S.W.3d 725 (2003).

Circuit court correctly granted the motion on the pleadings as to the property owner's counts against the city and planning commission for deprivation of property as the owner's appeal, filed two years after the city's decision, was well outside the 30-day requirement and was thus untimely; because the counts had nothing to do with action by the city council, the circuit court did not have subject matter jurisdiction. Ingram v. City of Pine Bluff, 355 Ark. 129, 133 S.W.3d 382 (2003).

Developer's appeal to circuit court of city council's conditional final approval of a subdivision plat was properly dismissed for lack of subject matter jurisdiction where it was filed more than 30 days after the conditional approval was issued. Green v. City of Jacksonville, 357 Ark. 517, 182 S.W.3d 124 (2004).

Property owners' appeal of the denial of nonconforming use status was improperly dismissed because their appeal was perfected under Ark. Dist. Ct. R. 9 and this section by the timely filing of the record in circuit court; Ark. R. Civ. P. 4 did not apply because there was no requirement of service of summons and complaint for the appeal and, to the extent that Weiss v. Johnson, 331 Ark. 409, 961 S.W.2d 28 (1998), was inconsistent, it was overruled. Wright v. City of Little Rock, 366 Ark. 96, 233 S.W.3d 644 (2006).

Because a property owner did not appeal to the circuit court the decision of the Code Enforcement Board of Zoning Adjustments and Appeal declaring his property a nuisance, he was barred from raising the issue on appeal. Trice v. City of Pine Bluff, 2017 Ark. App. 638, 536 S.W.3d 139 (2017).

Trial De Novo.

This section requires that appeals from the board of adjustment to the circuit court be tried de novo on the same issue that was pending before the board. Arkansas Power & Light Co. v. City of Little Rock, 243 Ark. 290, 420 S.W.2d 85 (1967).

In an appeal from action of a board of zoning adjustment denying a variance, the petitioners were entitled to present their petition for a variance anew and have it tried de novo. City of Little Rock v. Leawood Property Owners Ass'n, 242 Ark. 451, 413 S.W.2d 877 (1967).

In an appeal to the circuit court from a board of zoning adjustment, it was error for the circuit court to review the decision of the board only as to whether or not there was substantial evidence in the record of the hearing before the board to support the ruling of the board instead of trying the petition for a variance de novo. Arkansas Power & Light Co. v. City of Little Rock, 243 Ark. 290, 420 S.W.2d 85 (1967).

A de novo hearing on appeal is proper when the appeal is from actions taken by administrative boards, commissions, and agencies exercising adjudicatory or quasi-judicial functions. McCammon v. Boyer, 285 Ark. 288, 686 S.W.2d 421 (1985); City of Jonesboro v. Vuncannon, 310 Ark. 366, 837 S.W.2d 286 (1992).

Review de novo of a legislative act is unconstitutional. City of Jonesboro v. Vuncannon, 310 Ark. 366, 837 S.W.2d 286 (1992).

Where appeal to the circuit court was from action of the City Council on application of its zoning regulations rather than from the enactment of them, de novo review was proper. City of Jonesboro v. Vuncannon, 310 Ark. 366, 837 S.W.2d 286 (1992).

Pursuant to this section, “appeals” to circuit court are not limited proceedings where the circuit court merely conducts a substantial evidence review but instead, are trials de novo. Carmical v. McAfee, 68 Ark. App. 313, 7 S.W.3d 350 (1999).

City council meeting where the council denied landowner's request to split his lots was the final decision for purposes of triggering the time limit on when to appeal under this section. Combs v. City of Springdale, 336 Ark. 31, 233 S.W.3d 130 (2006).

Rational basis circuit court review of denial of a conditional use permit for operation of a group home was improper, as an Arkansas municipality's decision granting or denying an application for conditional use under a zoning ordinance was a quasi-judicial act requiring a de novo review by the circuit court under this section. King's Ranch of Jonesboro, Inc. v. City of Jonesboro, 2011 Ark. 123 (2011).

Although the circuit court did err in its statement of the standard of review applicable to factual findings of the Board of Adjustment by citing the substantial evidence standard of review rather than the de novo standard required under this section, no prejudice could possibly have resulted from the error because there was no dispute regarding the relevant facts: the case was submitted on cross-motions for summary judgment and decided on undisputed facts. Loca Luna, LLC v. Bd. of Adjustment, 2013 Ark. App. 336 (2013).

Zoning Cases.

Because the city council's decision to deny a developer's petition to rezone land was legislative, this section did not apply and the judicial branch did not have the authority to review the decision de novo. As the city council expressed legitimate concerns about traffic and safety, the Supreme Court of Arkansas held that its zoning decision was not arbitrary, capricious, or unreasonable. PH, LLC v. City of Conway, 2009 Ark. 504, 344 S.W.3d 660 (2009).

Although this section allowed for a jury trial in a circuit court in an appeal from a zoning board's decision, appellees also asserted a claim in equity for a private nuisance and only sought injunctive relief; thus, the circuit court erred by submitting the private nuisance claim to a jury. Ludwig v. Bella Casa, LLC, 2010 Ark. 435, 372 S.W.3d 792 (2010).

Circuit court did not abuse its discretion in granting an adjacent city's motion to dismiss a town's declaratory judgment action because the town was presented the opportunity to adduce any additional evidence; although the circuit court made a collateral finding that the adjacent city's zoning decision was not arbitrary or capricious, it nonetheless set the matter for a hearing on the remaining merits, at which time the legislative decision to rezone the property would be reviewed. City of Bethel Heights v. City of Springdale, 2017 Ark. App. 81, 514 S.W.3d 472 (2017).

Circuit court did not err in granting an adjacent city summary judgment in a town's action alleging that the adjacent city's rezoning was not compatible with or equivalent to those of the adjacent lands in the town as required by § 14-56-306. By providing affidavits and exhibits, the adjacent city established a prima facie case that its rezoning of property from agricultural to industrial was a use that was compatible with the zoned uses of the town, and the plaintiff town did not meet proof with proof. City of Bethel Heights v. City of Springdale, 2017 Ark. App. 81, 514 S.W.3d 472 (2017).

Cited: Osage Oil & Transp., Inc. v. City of Fayetteville, 260 Ark. 448, 541 S.W.2d 922 (1976); Corder v. City of Sherwood, 579 F. Supp. 1042 (E.D. Ark. 1984); Talley v. City of N. Little Rock, 2009 Ark. 601, 381 S.W.3d 753 (2009).

14-56-426. Control of property use — Proximity to military installation.

  1. A city of the first class in this state within five (5) miles of an active-duty United States Air Force military installation shall enact a city ordinance specifying that within five (5) miles of the corporate limits, future uses on property that might be hazardous to aircraft operation shall be restricted or prohibited.
  2. The ordinance shall restrict or prohibit future uses within the five-mile area which:
    1. Release into the air any substance that would impair visibility or otherwise interfere with the operation of aircraft, i.e., steam, dust, or smoke;
    2. Produce light emissions, either direct or indirect, that are reflective and that would interfere with pilot vision;
    3. Produce electrical emissions that would interfere with aircraft communications systems or navigational equipment;
    4. Attract birds or waterfowl, including, but not limited to, the operation of sanitary landfills, maintenance of feeding stations, or the growing of certain vegetation;
    5. Provide for structures within ten feet (10') of aircraft approach, departure, or transitional surfaces; or
    6. Expose persons to noise greater than sixty-five (65) decibels.
  3. The ordinance shall restrict or prohibit future uses within the five-mile area that violate the height restriction criteria of Federal Aviation Regulation, 14 C.F.R. Part 77, Subpart C.
    1. The ordinance shall be consistent with recommendations in the Air Installation Compatible Use Zone Study for Little Rock Air Force Base, dated June 2011 and prepared by the United States Air Force.
    2. Interpretations of such an ordinance shall take into account recommendations or studies with a view toward protection of the public and maintenance of safe aircraft operations.
  4. The ordinance shall not prohibit single-family residential use on tracts one (1) acre or more in area, provided that future construction shall comply with Guidelines for the Sound Insulation of Residences Exposed to Aircraft Operations, Wyle Research Report WR 89-7, which construction shall be regulated and inspected by the city's existing building permit and inspection ordinances and procedures.

History. Acts 1995, No. 530, §§ 1-5; 2005, No. 540, § 1; 2017, No. 602, §§ 1, 2.

A.C.R.C. Notes. References to “this subchapter” in §§ 14-56-40114-56-425 may not apply to this section which was enacted subsequently.

Amendments. The 2005 amendment substituted “sixty-five (65)” for “seventy-five (75)” in (b)(6); and substituted “April 2003” for “October 1992” in (d)(1).

The 2017 amendment, in (a), substituted “A city” for “Any city” and “five (5) miles of” for “which there lies, in whole in part”; and substituted “in the Air Installation Compatible Use Zone Study for Little Rock Air Force Base, dated June 2011 and prepared by the United States Air Force” for “or studies made by the United States Air Force entitled Air Installation Compatible Use Zone Study, Volumes I, II, and III, dated April 2003” in (d)(1).

Subchapter 5 — Metropolitan or Regional Planning Commissions

Publisher's Notes. Acts 1955, No. 26, is also codified as § 14-17-301 et seq.

Effective Dates. Acts 1955, No. 26, § 8: Feb. 1, 1955. Emergency clause provided: “It is hereby determined by the General Assembly that many cities and counties are faced with many problems which have arisen due to increased population, expansion of urban areas, and many other problems which have resulted from improper planning and which have resulted in the endangering of the health, safety and welfare of the people of such areas and that the immediate passage of this Act is necessary to alleviate such conditions. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall take effect and be in full force from and after its passage and approval.”

Research References

U. Ark. Little Rock L.J.

Note, Property — Zoning — The Courts Further Define Their Limited Role. City of Little Rock v. Breeding, 273 Ark. 437, 619 S.W.2d 664 (1981). 5 U. Ark. Little Rock L.J. 279.

14-56-501. Provisions supplemental.

  1. Nothing in this subchapter shall be construed to remove or limit the powers of the cooperating cities and counties as provided by state law.
  2. All legislative power with respect to zoning and other planning legislation shall remain with the governing body of the cooperating cities and counties.
  3. Each participating city or county may continue to have its own planning commission or board but may, under the joint agreement and in the interest of economy and efficiency and in the interest of uniform standards and procedures, request the metropolitan or regional planning commission to assume duties and functions of local planning agencies, in whole or in part.

History. Acts 1955, No. 26, § 5; A.S.A. 1947, § 19-2824.

14-56-502. Authority generally.

Any two (2) or more cities of the first class, cities of the second class, incorporated towns, or counties, or other civil subdivisions having adjoining planning jurisdictions, or any counties, and cities within or adjacent to the county, may jointly cooperate in the exercise and performance of planning powers, duties, and functions as provided by state law for cities and counties.

History. Acts 1955, No. 26, § 1; A.S.A. 1947, § 19-2820.

Case Notes

Annexation.

Since this subchapter concerning the establishment, powers, and duties of a joint planning commission in no way deals with annexation, the annexation of an area to a city will not be denied because the annexation has not been approved by a planning commission. City of Sherwood v. Hardin, 230 Ark. 762, 325 S.W.2d 75 (1959).

14-56-503. Contents of joint agreement.

  1. The cooperating cities and counties which join to create a metropolitan or regional planning commission, through joint agreement, shall determine the number and qualifications of the members of the commission.
  2. The joint agreement shall also provide for the manner of cooperation and the means and methods of the operation and functioning of the commission, including the employment of a director of planning and such staff and consultants as it may require, the proportionate share of costs and expenses, and the purchase of property and materials for the use of the commission.
  3. The joint agreement may also allow for the addition of other public bodies to the cooperative arrangement.

History. Acts 1955, No. 26, § 3; 1967, No. 29, § 1; A.S.A. 1947, § 19-2822.

14-56-504. Establishment of commission.

  1. When two (2) or more cities and counties shall adopt joint planning cooperation by ordinance, resolution, rule, or order, there shall be established a joint planning commission for the metropolitan area or region comprising the area coterminous with the areas of planning jurisdiction of the cities or counties cooperating jointly.
  2. A joint planning agency for the metropolitan area or region may be empowered to carry into effect such provisions of state law relating to planning which are authorized for the joining cities or counties and which each may, under existing laws, separately exercise and perform.
  3. Any other public authority or agency which operates within, wholly or in part, the area covered by this joint planning cooperation may likewise join with the cooperating cities or counties in cooperative planning through resolution of its governing board or commission.

History. Acts 1955, No. 26, § 1; A.S.A. 1947, § 19-2820.

14-56-505. Purpose of commission.

The general purpose of a metropolitan or regional planning commission shall be to make those studies and plans for the development of the metropolitan area or region that will:

  1. Guide the unified development of the area;
  2. Eliminate planning duplication;
  3. Promote economy and efficiency in the coordinated development of the area; and
  4. Promote the general welfare and prosperity of its people.

History. Acts 1955, No. 26, § 2; A.S.A. 1947, § 19-2821.

14-56-506. Duty of commission.

The metropolitan or regional planning commission shall have the duty and function of promoting public interest and understanding of the economic and social necessity for long-term coordinated planning for the metropolitan or regional area, but its official recommendations shall be made to the governing bodies or the county judges of the cooperating cities or counties.

History. Acts 1955, No. 26, § 5; A.S.A. 1947, § 19-2824.

14-56-507. Plans and recommendations.

    1. The metropolitan or regional commission shall make plans for development for the area. These plans may include, but shall not be limited to, recommendations for principal highways, bridges, airports, parks and recreational areas, schools and public institutions, and public utilities.
    2. Any metropolitan or regional plan so developed shall be based on studies of physical, social, economic, and governmental conditions and trends.
  1. The plans and its recommendations may, in whole or in part, be adopted by the governing bodies of the cooperating cities and counties as the general plans of such cities and counties.
    1. The commission may also assist the cities and counties within its area of jurisdiction in carrying out any regional plans developed by the commission; and
    2. The commission may also assist any planning commission, board, or agency of the cooperating cities or counties in the preparation or effectuation of local plans and planning consistent with the program of the commission.

History. Acts 1955, No. 26, § 2; A.S.A. 1947, § 19-2821.

14-56-508. Receipt of funds.

A metropolitan or regional planning commission established under the provisions of this subchapter is authorized to receive, for its own uses and purposes, any funds or moneys from any participating city or county, from the state or federal government, and to receive from any other source any other funds including bequests, gifts, donations, or contributions.

History. Acts 1955, No. 26, § 4; A.S.A. 1947, § 19-2823.

14-56-509. Appropriations.

The participating cities and counties, or other public bodies, are authorized to appropriate funds for the expenses and costs required by the metropolitan or regional planning commission in the performance of its purposes and functions.

History. Acts 1955, No. 26, § 4; A.S.A. 1947, § 19-2823.

Subchapter 6 — Commercial Medical Waste Incinerators

Cross References. County planning, commercial medical waste incinerators, § 14-17-401 et seq.

Effective Dates. Acts 1993, No. 199, § 7: Feb. 24, 1993. Emergency clause provided: “It is hereby found and determined by the Seventy-Ninth General Assembly of the State of Arkansas that the powers of local governments in Arkansas to regulate the construction or operation of commercial medical waste incinerators are vague or incomplete; that the unregulated incineration of commercial medical waste poses a threat to the health and safety of the citizens of Arkansas cities and counties; and therefore commercial medical waste incinerators should be made subject to the regulation by and control of local governments in Arkansas. Therefore, in order to clearly establish the authority of local governments to limit and regulate commercial medical waste incinerators, an emergency is hereby declared to exist, and this act being necessary for the immediate preservation of the public peace, health, and safety, shall be in full force and effect from and after its passage and approval.”

14-56-601. Definition.

“Commercial medical waste” means any medical waste transported from a generator to an off-site facility for disposal where such off-site disposal facility is engaged in medical waste disposal for profit.

History. Acts 1993, No. 199, § 3.

Publisher's Notes. Acts 1993, No. 199, § 3 is also codified as § 14-17-401.

14-56-602. Authorization to establish zones.

Notwithstanding any and all laws regarding municipal planning and zoning, all cities of the first and second class and all incorporated towns in Arkansas are authorized to establish, by ordinance, zones to limit or to regulate the construction or operation, or both, of commercial medical waste incinerators within the corporate limits of the city or town.

History. Acts 1993, No. 199, § 1.

14-56-603. Enforcement.

The commercial medical waste incinerator zoning ordinance shall be enforced through the issuance or denial of building and use permits in accordance with the conditions and terms of the limitations and regulations established by the ordinance.

History. Acts 1993, No. 199, § 1.

14-56-604. Unlawful construction or operation.

When the city or town council shall have laid off zones, by ordinance, to limit or to regulate the construction or operation, or both, of commercial medical waste incinerators, it shall be unlawful for anyone to construct or to operate a commercial medical waste incinerator within a given zone except in accordance with any building and use permits issued for the incinerator.

History. Acts 1993, No. 199, § 1.

14-56-605. Violation — Penalty — Injunction.

    1. Violation of any provision of an ordinance adopted as authorized by this subchapter shall be considered a misdemeanor.
    2. Each day's violation shall be considered a separate offense.
  1. The city or town adopting the ordinance or any individual aggrieved by a violation of the ordinance may request an injunction against any commercial medical waste incinerator or property owner who is in violation of the ordinance.

History. Acts 1993, No. 199, § 1.

Chapter 57 Regulation and Taxation of Vehicles by Municipalities

Research References

Am. Jur. 56 Am. Jur. 2d, Mun. Corp., § 481.

C.J.S. 62 C.J.S., Mun. Corp., §§ 307, 308.

Subchapter 1 — General Provisions

Cross References. General authority to license carriages etc., kept for hire, § 14-54-1403.

Motor vehicular traffic powers of local authorities, § 27-49-106.

Regulation of the transportation of articles generally, § 14-54-103.

Effective Dates. Acts 1875, No. 1, § 95: effective on passage.

Acts 1901, No. 89, § 2: effective on passage.

14-57-101. Regulation of cabs and buses.

The city council shall have the power in cities of the first class to establish, by ordinance, stands for taxicabs and buses and enforce the observance and use thereof, and to fix the rates and prices for the transportation of persons and property in cabs and buses from one (1) part of the city to another.

History. Acts 1875, No. 1, § 7, p. 1; C. & M. Dig., § 7597; Pope's Dig., § 9683; A.S.A. 1947, § 19-3501.

14-57-102. Unlawful riding on cars.

All cities and incorporated towns shall have the power to pass ordinances prohibiting persons from unlawful riding on cars within the limits of the city or incorporated town.

History. Acts 1901, No. 89, § 1, p. 154; C. & M. Dig., § 7531; Pope's Dig., § 9600; A.S.A. 1947, § 19-3502.

14-57-103. Regulation of tire width.

The city council shall have the power, in cities of the first class, to prescribe, by ordinance, the width of the tire of all wagons, carts, drays, and other vehicles used in transportation of persons or articles from one (1) part of the city to another, or in the transportation of coal, wood, stone, lumber, or iron into the city.

History. Acts 1875, No. 1, § 7, p. 1; C. & M. Dig., § 7597; Pope's Dig., § 9683; A.S.A. 1947, § 19-3501.

14-57-104. Tax on certain wheeled vehicles.

  1. Cities of the first class are authorized to require residents of the city to pay a tax for the privilege of keeping and using wheeled vehicles, except motor vehicles and bicycles.
  2. The tax shall be appropriated and used exclusively for repairing and improving streets of the city.

History. Acts 1901, No. 66, § 1, p. 113; C. & M. Dig., § 7749; Pope's Dig., § 10047; A.S.A. 1947, § 19-3505.

Case Notes

Motor Vehicles.

This section, as applied to automobiles was held repealed by § 27-14-702, which provides that the owner of a motor vehicle who shall have obtained a certificate as provided shall not be required to obtain any other license or permits to use and operate the vehicle. City of Helena v. Dunlap, 102 Ark. 131, 143 S.W. 138 (1912).

This section was not repealed but was modified as to motor vehicles only. Van Buren v. Lawson, 160 Ark. 631, 255 S.W. 295 (1923).

Subchapter 2 — Motor Carriers Generally

Effective Dates. Acts 1931, No. 239, § 3: approved Mar. 24, 1931. Emergency clause provided: “The licensing and regulation of taxicabs and other carriers within the cities of Arkansas being necessary for the immediate preservation of the public peace, health and safety, an emergency is hereby declared to exist and this act shall be in full force and effect from and after passage.”

Acts 1937, No. 126, § 3: approved Feb. 24, 1937. Emergency clause provided: “Due to requirements made by certain municipal Governments in this State that operators of motor propelled vehicles for transportation of persons for compensation, carry a large amount of liability insurance which cannot be written in this State, many persons, firms, corporations, and associations of persons are prohibited from operating motor propelled vehicles for the transportation of persons for compensation and therefore, are losing large sums of money invested in such enterprise and will thereby suffer irreparable injury if they cannot secure immediate relief, and will thereby be deprived of their property and the use thereof; an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety, this act shall take effect and be in full force from and after the day of its passage.”

14-57-201. Right to regulate and tax.

Municipalities within the state shall have the right to regulate and tax all motor carriers operating within their corporate limits transporting persons or freight both originating at and destined to points within the corporate limits of the same city or town, or transporting from one (1) city or town to another city or town whose corporate limits join each other, or within a radius of five (5) miles beyond any such corporate limits of cities or towns, or for occasional trips of ten (10) miles beyond any such corporate limits, and shall not be governed by, or amenable to, the provisions of § 23-13-103 in regulating or taxing vehicles used for these purposes.

History. Acts 1931, No. 239, § 1; Pope's Dig., § 9734; A.S.A. 1947, § 19-3510.

Case Notes

Wreckers.

This section was held not to exempt automobile wreckers. Gates v. Reese, 185 Ark. 883, 50 S.W.2d 236 (1932).

14-57-202. Cash indemnity bonds of passenger carriers.

In any case where ordinances of any municipality require persons, firms, corporations, or associations operating motor-propelled vehicles for transportation of persons for compensation to procure liability insurance or indemnity bonds, it shall be a substantial compliance with the ordinances if the persons, firms, corporations, or associations furnish a cash indemnity bond conditioned on the same conditions as required on liability insurance policies and in such amount as required for liability insurance policies.

History. Acts 1937, No. 126, § 1; Pope's Dig., § 10048; A.S.A. 1947, § 19-3511.

Subchapter 3 — Regulation of Taxicab Operators

Cross References. Liability insurance prerequisite to licensing, § 27-14-1501.

Effective Dates. Acts 1939, No. 213, § 10: Mar. 9, 1939. Emergency clause provided: “By reason of the fact that confusion and uncertainty now exist as to where the power to license and regulate the business herein referred to is vested, which confusion and uncertainty should be eliminated, and by reason of the further fact that the control and regulation of such business in cities of the first class ought immediately to be clearly vested in the municipalities in which such businesses and activities are respectively carried on, an emergency is hereby declared to exist; and this act, being necessary for the immediate preservation of the public peace, health and safety, shall take effect and be in force immediately after its passage and approval.”

Acts 1947, No. 392, § 4: Mar. 28, 1947. Emergency clause provided: “By reason of the fact that confusion and uncertainty exists in some cities of the second class by reason of the unrestricted, uncontrolled and unregulated operation of taxicabs is carried on and by the reason of the fact that the control and regulation in such business in cities of the second class ought immediately to be vested in the municipalities in which businesses are respectively carried on an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health, and safety and welfare, shall take effect and be in force immediately after its passage and approval.”

Acts 1967, No. 238, § 4: Mar. 8, 1967. Emergency clause provided: “It is hereby found and determined by the General Assembly that the requirement of Five Thousand Dollars ($5,000.00) in a bank as a prerequisite to the issuance of a permit to operate a taxi service is unduly restrictive, harsh, unjustified, and obsolete; that the reason for this requirement originally was to insure a solvent and responsible operator; that since the passage of the original Act, each taxi must have liability coverage under Section 1 of Act 485 of 1949, as amended, as a prerequisite to the issuance of a motor vehicle license; and that, in order to remove this obsolete provision, it is necessary that this Act become effective immediately. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Case Notes

Constitutionality.

The unconstitutionality of Acts 1939, No. 213, § 7, does not affect the validity of the remaining sections of the act which are separable from § 7 and are sufficient alone to constitute a workable act. North Little Rock Transp. Co. v. City of North Little Rock, 207 Ark. 976, 184 S.W.2d 52 (1944).

14-57-301. Definitions.

As used in this subchapter, unless the context otherwise requires:

  1. “Taxicab” means motor-driven vehicles having a seating capacity not in excess of seven (7) passengers and used for the transportation of persons for hire. Included within the meaning of the term shall not be any vehicle have a seating capacity in excess of seven (7) passengers and employed in transporting persons over regular routes having fixed termini or upon regular schedules of operation;
  2. “Taxicab operator” means any person, firm, association, or corporation owning and operating taxicabs.

History. Acts 1939, No. 213, § 1; A.S.A. 1947, § 19-3512.

Case Notes

Taxicab.

Section 14-57-307 did not apply to mini buses operated by a mass transportation service where the mini buses did not fit within the definition of a “taxicab.” Razorback Cab of Ft. Smith, Inc. v. Flowers, 122 F.3d 657 (8th Cir. 1997).

Cited: Carr v. City of El Dorado, 217 Ark. 423, 230 S.W.2d 485 (1950).

14-57-302. Exclusive power to regulate.

Cities of the first and second class are vested, within their respective corporate limits, with the exclusive power and authority to permit, regulate, and control, by ordinance, the business and operation of motor-driven taxicabs over or upon the streets and public ways of their respective municipalities. This power and authority shall include the right to approve or disapprove, to prescribe or reject, and to enforce maximum rates and tariffs to be charged for services rendered by any taxicab operator in these cities and to enforce, by such suitable penalties and forfeitures as may be fixed by ordinance, all regulations, rates, and tariffs that may be approved or prescribed.

History. Acts 1939, No. 213, § 2; 1947, No. 392, § 1; A.S.A. 1947, § 19-3513.

Case Notes

Criminal Offenders.

Section 17-1-103, which states a broad policy of rehabilitating those who have been convicted of a crime, does not conflict with this section, which allows cities to regulate the operation of taxicabs, because § 17-1-103 does not attempt to give a person a right to a particular job; therefore, the city ordinance which prohibited the issuance of a taxicab driver's permit to any person convicted of driving while under the influence of intoxicating liquors within the past three years did not violate Ark. Const., Art. 12, § 4, which prohibits cities from enacting local laws contrary to state statute. Bolden v. Watt, 290 Ark. 343, 719 S.W.2d 428 (1986).

Revocation of Permits.

Where the city issued a permit to operate a taxicab and the permittee failed to operate a cab for approximately a year, the city was justified in revoking the permit for noncompliance. Veteran's Taxicab Co. v. City of Ft. Smith, 213 Ark. 687, 212 S.W.2d 341 (1948).

14-57-303. Approval and review of rates, etc.

  1. No rate, tariff, or regulation shall be approved or prescribed by any first class or second class city, except after due and reasonable notice to each and every taxicab operator affected shall have been given and after adequate opportunity to be heard with respect thereto shall have been afforded to each and every taxicab operator.
    1. Any rate, tariff, or regulation approved, disapproved, prescribed, or rejected shall be subject to judicial review.
      1. On review, they shall be sustained if reasonable and adequate to permit a fair, just, and reasonable return to the operator.
      2. If unreasonable, confiscatory, or inadequate to permit a fair and reasonable return to the operator, they shall be annulled.
    2. No court shall, in any event, however, have any power or jurisdiction to make or fix rates, tariffs, or regulations.
  2. All rates, tariffs, and regulations initiated, prescribed, approved, or enforced by any municipality shall apply equally and uniformly to all taxicab operators in the municipality.

History. Acts 1939, No. 213, § 3; A.S.A. 1947, § 19-3514.

Case Notes

Graduated Rates.

This subchapter conferring power to municipalities in their exercise of police power to pass ordinances imposing an occupational tax on taxis does not authorize the imposition of a graduated tax, and such an ordinance is void. Baldwin v. City of Blytheville, 212 Ark. 975, 208 S.W.2d 458 (1948).

14-57-304. Permit required.

  1. No person, firm, corporation, or association shall engage in or carry on the business referred to in § 14-57-302 in cities of the first or second class without first procuring from the governing body of the municipality in which it is proposed to operate a permit so to do.
  2. Governing bodies of these cities are authorized to grant or to refuse these permits.

History. Acts 1939, No. 213, § 4; 1947, No. 392, § 2; A.S.A. 1947, § 19-3515.

Case Notes

Issuance and Revocation.

The city commissioner has authority to issue or revoke a permit to operate a taxicab. Veteran's Taxicab Co. v. City of Ft. Smith, 213 Ark. 687, 212 S.W.2d 341 (1948).

14-57-305. Application for permit.

Before granting any permit under § 14-57-304, the governing body shall require the seeker of the permit to file with it an application, verified by oath and setting forth the facts showing his qualification to render the service for which he seeks the permit, together with the facts which he considers justified, and require the rendering to the public of the service.

History. Acts 1939, No. 213, § 5; 1947, No. 392, § 3; 1967, No. 238, § 1; A.S.A. 1947, § 19-3516.

14-57-306. Surety bond requirement.

  1. No permit shall be granted under § 14-57-304 until and unless the applicant shall file with the governing body of the city or town a surety bond of a corporate surety authorized to do business in this state, in such amount as the city or town shall determine, conditioned upon the applicant establishing, maintaining, and continuing the proposed service until such time as the permit issued to applicant is cancelled, withdrawn, or has expired.
  2. If the applicant fails to comply with the provisions of the bond, the city or town shall forfeit such amount of the bond as it shall deem necessary to adequately compensate the city or town for loss of the applicant's service.

History. Acts 1939, No. 213, § 5; 1947, No. 392, § 3; 1967, No. 238, § 1; A.S.A. 1947, § 19-3516.

14-57-307. Hearing on application.

  1. Upon the filing of an application, the city shall cause to be given to each and every taxicab operator in the city a due and reasonable notice, in writing. Notice of the hearing shall set forth the time and place of the hearing. The hearing shall be conducted by the governing body of the city for all persons interested in, or affected by, the application.
  2. All persons interested in, or affected by, the application, including all carriers at the time rendering any type of for-hire service in the city, shall have the right either in person or by representatives of their own choosing, to be present at all such hearings and to introduce evidence and to be heard either in support of, or in opposition to, the application.

History. Acts 1939, No. 213, § 6; A.S.A. 1947, § 19-3517.

Case Notes

Applicability.

This section did not apply to mini buses operated by a mass transportation service where the mini buses did not fit within the definition of a “taxicab.” Razorback Cab of Ft. Smith, Inc. v. Flowers, 122 F.3d 657 (8th Cir. 1997).

Cited: Carr v. City of El Dorado, 217 Ark. 423, 230 S.W.2d 485 (1950).

14-57-308. Judicial review.

Any final action of the governing body of the municipality in respect to any application shall be subject to judicial review.

History. Acts 1939, No. 213, § 8; A.S.A. 1947, § 19-3518.

Subchapter 4 — Taxicab and Bus Drivers

Effective Dates. Acts 1919, No. 557, § 5: approved Mar. 28, 1919. Emergency declared.

14-57-401. Penalty.

It shall be unlawful for any person, firm, or corporation to employ another, who is under the age of twenty-one (21) years, to operate or drive a taxicab or bus for hire, or otherwise, in cities of the first class in this state. Any person found guilty of a violation of this subchapter shall be guilty of a misdemeanor and shall be fined not less than twenty-five dollars ($25.00) nor more than fifty dollars ($50.00) for each offense.

History. Acts 1919, No. 557, § 4; C. & M. Dig., § 7443; Pope's Dig., § 6655; Acts 1941, No. 346, § 1; A.S.A. 1947, § 19-3522.

14-57-402. Unlawful for minors to operate.

It shall be unlawful for any person under the age of twenty-one (21) years to operate any taxicab or bus service for hire, or otherwise, in a city of the first class in the State of Arkansas or to drive a bus or taxicab, as employee, partner, or otherwise, for another.

History. Acts 1919, No. 557, § 1; C. & M. Dig., § 7440; Pope's Dig., § 6652; A.S.A. 1947, § 19-3519.

14-57-403. Persons not licensed.

No person who is under the age of twenty-one (21) years shall be licensed to drive a bus or taxicab for hire, or otherwise, in any city of the first class in the State of Arkansas.

History. Acts 1919, No. 557, § 2; C. & M. Dig., § 7441; Pope's Dig., § 6653; A.S.A. 1947, § 19-3520.

14-57-404. Proof of age required.

Before anyone shall be licensed to drive a bus or taxicab in this state, satisfactory proof must be made that the applicant is twenty-one (21) years of age or over and of good moral character.

History. Acts 1919, No. 557, § 3; C. & M. Dig., § 7442; Pope's Dig., § 6654; A.S.A. 1947, § 19-3521.

Subchapter 5 — Parking Meters Generally

14-57-501. Authority to install.

Cities of the first and second class are authorized, upon the passage of a municipal ordinance, to install parking meters on the streets and other municipally owned property of the city.

History. Acts 1953, No. 89, § 1; A.S.A. 1947, § 19-3533.

Case Notes

Initiative and Referendum.

A city has no power to enter into any contract or to enact any ordinance which would limit the rights of the citizens under the initiative and referendum amendment of the Arkansas constitution. Duncan Parking Meter Corp. v. City of Gurdon, 146 F. Supp. 280 (W.D. Ark. 1956).

14-57-502. Ordinances subject to initiative and referendum.

Any municipal ordinance authorizing the installation of parking meters shall not be subject to an emergency clause. Nothing in this subchapter shall limit the rights of the people under the Initiated and Referendum Amendment to the Constitution of the State of Arkansas.

History. Acts 1953, No. 89, § 2; A.S.A. 1947, § 19-3534.

Cross References. Initiative and Referendum, Ark. Const. Amend. 7.

Subchapter 6 — Parking Meter Revenues

Effective Dates. Acts 1951, No. 269, § 12: Mar. 19, 1951. Emergency clause provided: “Because there are many municipalities that have immediate need for funds in order to provide rights-of-way or to improve streets and thoroughfares within their corporate limits, it is hereby ascertained and declared that an emergency exists; and this Act, being necessary for the preservation of the public peace, health and safety, shall take effect and be in force upon its passage and approval.”

14-57-601. Definitions.

As used in this subchapter, unless the context otherwise requires:

  1. “Municipality” means an incorporated town or a city of the first or second class;
  2. “Net revenues” means that part of the revenue derived by a municipality from the operation of parking meters which remains each year after paying all costs of operation and maintenance for that year, making adequate provisions for depreciation and obsolescence, and providing for the payments due that year on any indebtedness of the municipality arising from the purchase or installation, or both, of the parking meters and payable out of the revenues from the meters; and
  3. “Legislative body” means the council of any municipality, or the city commission if the municipality has a commission form of government.

History. Acts 1951, No. 269, § 1; A.S.A. 1947, § 19-3523.

14-57-602. Construction.

This subchapter, being necessary for the public health, safety, and welfare, shall be liberally construed to effectuate the purposes thereof.

History. Acts 1951, No. 269, § 10; A.S.A. 1947, § 19-3532.

14-57-603. Provisions exclusive.

Without reference to any other statute, this subchapter shall be deemed full authority for the issuance and sale of the bonds authorized by this subchapter. No petition or election or other or further proceedings in respect to the issuance or sale of bonds under this subchapter, and no publication of any resolution, ordinance, notice, or proceeding relating to such issuance or sale of such bonds shall be required except such as are prescribed by this subchapter, any provisions of other statutes of the state to the contrary notwithstanding.

History. Acts 1951, No. 269, § 9; A.S.A. 1947, § 19-3531.

14-57-604. Use of revenues.

  1. Any municipality in the State of Arkansas owning and operating parking meters may use the net revenues derived from this ownership and operation for:
    1. The purchase of real estate to be used for parking lots;
    2. The purchase of rights-of-way for the construction of public streets, alleys, and boulevards or for the construction of, widening, straightening, paving, resurfacing, lighting, or otherwise improving streets, alleys, and boulevards;
    3. The purchase, development, and improvement of public parks located within or without the corporate limits of the municipality;
    4. The purchase of fire fighting apparatus and fire alarm systems;
    5. The purchase of sites for, construction of, and equipment of city halls and prisons;
    6. Buildings for housing of fire fighting apparatus;
    7. Buildings for the police department; and
    8. The construction and equipment of any municipal complex.
  2. Nothing in this section shall be construed to authorize any municipality to use these revenues, to issue or sell revenue bonds, or to use the proceeds thereof to purchase, condemn, or otherwise acquire any utility, plant, property, or facilities owned or operated by any regulated utility.

History. Acts 1951, No. 269, § 2; 1965, No. 156, § 1; A.S.A. 1947, § 19-3524.

14-57-605. Election for issuance of revenue bonds.

    1. Whenever the legislative body of any municipality shall determine to exercise the power granted by this subchapter, it shall state the purpose and cause an estimate to be made of cost of such purpose.
      1. If the cost is greater than the legislative body deems should be paid in a single year, it shall, by ordinance, provide for an election to be called for the issuance of revenue bonds under the provisions of this subchapter.
      2. The ordinance shall set forth:
        1. A brief description of the purpose of the bond issue. If for more than one (1) purpose, provision shall be made in the ordinance for balloting on each separate purpose;
        2. The estimated cost thereof;
        3. The amount of the bond issue;
        4. The rate of interest;
        5. The time of payment; and
        6. Other details in connection with the issuance of bonds.
    1. The election shall be held and conducted and the vote thereof canvassed and the result declared under the law and in the manner provided for municipal elections, so far as it may be applicable, except as otherwise provided in this section.
      1. Notice of the election shall be given by the presiding officer of the legislative body of the issuing municipality by advertisement once a week for four (4) consecutive weeks in some newspaper published in the municipality or, if no newspaper is published therein, in a newspaper having a bona fide and general circulation therein.
        1. The first publication shall be not less than thirty (30) days prior to the date of the election.
        2. This shall be the sole notice required for the election.
    2. Only qualified voters of the municipality shall have the right to vote at the election.
      1. The result of the election, after the vote has been canvassed by the county board of election commissioners, shall be proclaimed by the presiding officer of the legislative body. His proclamation shall be published one (1) time in some newspaper published in the municipality or, if none is published therein, in a newspaper having a bona fide circulation therein.
      2. The result as proclaimed shall be conclusive unless attacked in the courts within thirty (30) days after the date of the publication of the proclamation.
    3. The expenses of the election shall be paid in the manner prescribed by law.
    4. In the event a majority of electors voting in the election approve the issuance of the bonds, the legislative body shall then have power to issue bonds, which shall bear interest at not more than five percent (5%) per annum, payable semiannually. The bonds shall be payable at such times, not exceeding thirty (30) years from their date, as shall be prescribed by the ordinance authorizing their issuance.

History. Acts 1951, No. 269, § 3; A.S.A. 1947, § 19-3525.

Research References

Ark. L. Rev.

Municipal Improvement Bonds in Arkansas, 8 Ark. L. Rev. 146.

14-57-606. Form and sale of bonds.

    1. Bonds issued under the provisions of this subchapter shall be negotiable instruments and shall be executed by the presiding officer and clerk or recorder of the legislative body of the issuing municipality, and shall be sealed with the corporate seal of the municipality.
    2. In the case any of the officers whose signatures appear on the bonds or coupons shall cease to be such officers before the delivery of the bonds, their signatures shall, nevertheless, be valid and sufficient for all purposes the same as if they had remained in office until the delivery.
  1. The bonds may be sold at not less than ninety cents (90¢) on the dollar, and they may be sold with the privilege of converting to a lower interest rate if, by such conversion, the municipality shall receive no less and pay no more than it would receive or pay if the bonds were not converted.
    1. The bonds shall be sold at a public sale after advertisement once a week for three (3) weeks in some newspaper published in the county in which the municipality lies.
    2. The first publication shall be not less than twenty (20) days before the date fixed for the sale.
  2. The bonds shall be sold for cash, and the proceeds derived therefrom shall be used exclusively for the purpose for which the bonds are issued.
  3. The bonds may be sold and issued all at one (1) time or they may be sold and issued in parcels as funds are needed.

History. Acts 1951, No. 269, § 4; A.S.A. 1947, § 19-3526.

Cross References. Form of bonds, § 19-9-101.

14-57-607. Bonds payable from meter revenues.

  1. Bonds issued under the provisions of this subchapter shall be payable solely from the net revenues derived by the municipality from the ownership and operation of the parking meters, which net revenues may be pledged for the payment of these bonds.
    1. The revenue bonds shall not in any event constitute an indebtedness of the municipality within the meaning of the constitutional provisions or limitations.
    2. It shall be plainly stated on the face of each bond that the bond has been issued under the provisions of this subchapter and that it does not constitute an indebtedness of the municipality within any constitutional or statutory limitation.

History. Acts 1951, No. 269, § 5; A.S.A. 1947, § 19-3527.

14-57-608. Pledge not to discontinue operation of meters.

A municipality issuing revenue bonds for the payment of which it pledges the net revenues derived from the ownership and operation of parking meters shall, by the favorable vote at the election for the purpose of issuing the revenue bonds, be construed to have made a binding contract with the holders of the bonds that the municipality will not remove or discontinue the operation of the parking meters until the revenue bonds, and all interest thereon, for the payment of which the net revenues have been pledged, have been paid in full.

History. Acts 1951, No. 269, § 6; A.S.A. 1947, § 19-3528.

14-57-609. Default in payment of bonds.

  1. If there is a default in the payment of the principal of, or interest on, any of the revenue bonds authorized by this subchapter, any court having jurisdiction, in any proper action, may appoint a receiver to take charge of and operate the parking meters, with power to charge and collect rates sufficient to provide for the payment of the bonds, and interest thereon, after providing for the payment, if any, of the operating expenses of the property, and to apply the income and revenues derived from the property in conformity with this subchapter and the ordinance providing for the issuance of the bonds.
  2. When the default has been cured, the receivership shall be ended.
  3. This suit may be brought by the holder of any bond issued under the provisions of this subchapter or of any coupon representing interest accrued thereon.

History. Acts 1951, No. 269, § 7; A.S.A. 1947, § 19-3529.

14-57-610. Acceleration of maturities — Priorities.

  1. The ordinance authorizing the issuance of the revenue bonds may contain provisions for the acceleration of the maturities of all unmatured bonds in the event of default in the payment of any principal or interest maturing under the bond issue, or upon failure to meet any sinking fund requirements, or in any other event stipulated in the ordinance; and such provisions will be binding.
  2. The priorities as between successive issues of revenue bonds may also be controlled by the provisions of the ordinance.

History. Acts 1951, No. 269, § 8; A.S.A. 1947, § 19-3530.

Subchapter 7 — City or Town Vehicle Tax

Cross References. Municipal motor vehicle tax, § 26-78-101.

Effective Dates. Acts 1969, No. 88, § 9: Feb. 21, 1969. Emergency clause provided: “It is hereby found and determined by the General Assembly that cities and towns in the State of Arkansas are in great need of additional revenues to construct and maintain streets and roads in such cities and towns; that the provisions of Act 446 of 1965, as amended, are burdensome and hamper the cities and towns in the levying of additional vehicle taxes to obtain these needed revenues; and that in order to remedy this situation, it is necessary that this Act become effective immediately. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall become effective from and after its passage and approval.”

Acts 2009, No. 1480, § 117: Apr. 10, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act makes various revisions to Arkansas election laws that are designed to improve the administration of elections and special elections and that these revisions should be implemented as soon as possible so that the citizens of this state may benefit from improved election procedures. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Research References

C.J.S. 87 C.J.S., Towns, §§ 155, 161.

14-57-701. Penalty.

  1. Any owner of any vehicle, delinquent in the payment of the city or town vehicle tax for more than five (5) months, who thereafter shall use and operate any such vehicle upon the public roads, streets, and other public ways within the city or town levying the vehicle tax, or who shall knowingly permit it to be so used and operated by another, shall be guilty of a misdemeanor. Upon conviction, he shall be subject to a fine of not less than twenty-five dollars ($25.00) nor more than fifty dollars ($50.00) for each violation.
  2. The fine so assessed shall be in addition to the tax and penalty for delinquent payment.

History. Acts 1969, No. 88, § 4; A.S.A. 1947, § 19-3509.

14-57-702. Authority to levy.

  1. Notwithstanding the provisions of §§ 26-78-102 — 26-78-108 and in addition to such taxes as may be levied by the State of Arkansas for the privilege of using and operating motor vehicles on the public roads and highways of this state, any city of the first or second class and any incorporated town are authorized to levy an annual tax upon the owners of vehicles for the privilege of using and operating a motor vehicle upon the public roads, streets, and other public ways in the city or town.
  2. The levy of the tax authorized by this section shall be, by ordinance, duly adopted by the governing body of the city or town.
  3. The tax authorized in this section to be levied shall be designated and known as the “city or town vehicle tax.”
  4. Each levy by the governing body of the city or town shall be for collection during the calendar year following the year in which the levy is made, and each year thereafter, until the tax is amended or repealed by the governing body of the city or town.

History. Acts 1969, No. 88, § 1; A.S.A. 1947, § 19-3506.

14-57-703. Other taxation prohibited.

Any city of the first or second class or any incorporated town levying and collecting a vehicle tax under the provisions of this subchapter shall not be entitled to levy and collect a vehicle tax under the provisions of §§ 26-78-10226-78-108, relating to motor vehicle tax for local highways.

History. Acts 1969, No. 88, § 3; A.S.A. 1947, § 19-3508.

14-57-704. Special election required.

    1. Before the vehicle tax levied by the governing body of any city of the first class or city of the second class or incorporated town upon vehicle owners residing in the city or town may be collected, the mayor shall call a special election in accordance with § 7-11-201 et seq.
    2. This election shall be held not more than ninety (90) days from the date of the publication of the proclamation, at which the qualified electors of the city or town shall vote on the question of the levy of the tax.
    1. If a majority of the qualified electors of the city or town voting on the issue shall vote for the levy of the tax at the special election, then the tax may be thereafter levied in the city or town in the manner authorized in this subchapter and it shall not be necessary that an election be called again in the city or town on the question of levying the tax.
    2. If a majority of the qualified electors of the city or town voting on the issue at the special election shall vote against the levy of the tax, then the tax shall not be levied in the city or town. However, the governing body of the city or town may propose the levy of the tax at any time after the expiration of one (1) year from the election in the city or town, and the election thereon shall be called as provided in this section.
  1. Special elections held pursuant to this section shall be conducted in accordance with the election laws of this state, and the form of the ballot, the method of voting, and the counting, tabulation, and certification of the election results shall be in the manner provided by law.

History. Acts 1969, No. 88, § 2; A.S.A. 1947, § 19-3507; Acts 2005, No. 2145, § 39; 2007, No. 1049, § 59; 2009, No. 1480, § 77.

Amendments. The 2005 amendment redesignated former (a) as present (a)(1) and (a)(2)(A); substituted “thirty (30)” for “twenty (20)” and “sixty (60)” for “thirty (30)” in (a)(2)(A); and added (a)(2)(B).

The 2009 amendment substituted “§ 7-11-201 et seq.” for “§ 7-5-103(b)” in (a)(1).

14-57-705. Classification of vehicles.

  1. Under this subchapter, the ordinance of the governing body of a city or town may contain therein a classification of vehicles by types and the rate of tax levy, stated in dollars and cents, to be collected from the owners of the vehicles coming within these classifications.
  2. No such classification shall, at the time of the adoption of the ordinance, include any vehicle for the use of which a state tax or fee for the registration or licensing of motor vehicles is not, at the time, levied upon the owner.

History. Acts 1969, No. 88, § 3; A.S.A. 1947, § 19-3508.

14-57-706. Maximum tax.

The maximum city or town vehicle tax which may be levied and collected shall not exceed five dollars ($5.00) per year per vehicle, irrespective of its classification.

History. Acts 1969, No. 88, § 3; A.S.A. 1947, § 19-3508.

14-57-707. Date due.

The city or town vehicle tax shall be due and payable, without penalty, during the month of January of the calendar year following the year in which the levy is made.

History. Acts 1969, No. 88, § 4; A.S.A. 1947, § 19-3509.

14-57-708. Delinquent payment.

Penalty for delinquent payment of the city or town vehicle tax shall be one dollar ($1.00) per vehicle per month for each month's delinquency.

History. Acts 1969, No. 88, § 4; A.S.A. 1947, § 19-3509.

14-57-709. Vehicles acquired after July 1.

  1. The owner of any vehicle first acquired or first used in the city or town after July 1 of the taxable year shall be required to pay only one-half (½) of the annual rate of the city or town vehicle tax for the remainder of the calendar year. The tax may be paid, without penalty, during the thirty-day period following the date of first acquisition or first use.
  2. No vehicle tax shall be required of the owner if the vehicle tax for the particular year has been paid by a former owner, whether or not in the same city or town.

History. Acts 1969, No. 88, § 4; A.S.A. 1947, § 19-3509.

14-57-710. Payment to one municipality only.

The owner of a vehicle, having paid the city or town vehicle tax in any city or town for a particular year, shall not be required to pay the vehicle tax for the use of the same vehicle in any other city or town for the same year.

History. Acts 1969, No. 88, § 3; A.S.A. 1947, § 19-3508.

14-57-711. Collection of and receipt for tax.

  1. Any city or town levying a vehicle tax under the provisions of this subchapter shall designate, by ordinance, an official to collect the tax.
    1. The official shall use consecutively numbered receipts, printed in duplicate, to acknowledge payment of the tax.
    2. Each receipt shall have printed on it:
      1. The name of the city or town;
      2. The name of the tax;
      3. The year of the tax;
      4. Space for indicating the name and address of the taxpayer;
      5. The date of payment;
      6. The amount of tax;
      7. The amount of penalty;
      8. The total amount collected;
      9. The make and model of the vehicle;
      10. The state motor vehicle license number at the time attached to the vehicle; and
      11. Space for the signature of the official collecting the tax.
  2. At the time of issuing his receipt, the official shall also deliver to the taxpayer a windshield sticker, metal tag, or other type of identification to be attached to the vehicle by the owner.
  3. A new series of receipts shall be issued for each year's tax.
    1. A separate receipt shall be issued for each vehicle, the original of which shall be given to the taxpayer at the time of the payment of the tax.
    2. The duplicate receipt shall be retained by the official for accounting and auditing purposes.

History. Acts 1969, No. 88, § 5; A.S.A. 1947, § 19-3509.1.

14-57-712. Disposition of proceeds.

  1. All tax, interest, and penalties collected under the provisions of this subchapter shall be deposited in a separate bank account to be maintained by the city or town. From the proceeds shall be paid the cost of duplicate receipts and windshield stickers.
  2. All proceeds remaining after the payment of the expenses shall be used as follows:
    1. Fifty percent (50%) of the proceeds shall be used for the payment of salaries of law enforcement personnel and personnel of the fire department; and
    2. Fifty percent (50%) of the proceeds shall be used for the maintenance, construction, and reconstruction of streets and other public ways in the town or municipality.

History. Acts 1969, No. 88, § 6; A.S.A. 1947, § 19-3509.2.

Cross References. Use of motor vehicle tax revenues, §§ 26-78-108, 26-78-109.

Chapter 58 Fiscal Affairs of Cities and Incorporated Towns

Cross References. Local audits, § 10-4-201 et seq.

Research References

Am. Jur. 56 Am. Jur. 2d, Mun. Corp., §§ 579 et seq., 637 et seq.

C.J.S. 64 C.J.S., Mun. Corp., § 1833 et seq.

87 C.J.S., Towns, §§ 113-172.

Subchapter 1 — General Provisions

Cross References. Levy of tax for pensions in cities of first and second class, § 24-11-404.

Effective Dates. Acts 1977, No. 160, § 3: July 1, 1977. Emergency clause provided: “It is hereby found and determined by the General Assembly that under the Arkansas Constitution laws enacted by the General Assembly without an emergency clause become effective ninety days after adjournment sine die or recess in excess of ninety days; that it is essential to the proper and effective administration and application of this Act that it be given effect on July 1, 1977, and that in the event of an extension of the regular session, the delay in the effective date of this Act beyond July 1, 1977, would be highly detrimental to the proper administration and enforcement of the provisions of this Act. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1977.”

Acts 1985, No. 15, § 4: effective for audits of the 1985 calendar year and thereafter.

Acts 2005, No. 499, § 2: Mar. 2, 2005. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the provisions of this act are of critical importance to preserve the efficient operations of the Division of Legislative Audit and provide the flexibility needed to supply the General Assembly and the Legislative Joint Auditing Committee information vital and necessary to fulfill their constitutional and statutory mandates. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2009, No. 756, § 25: Apr. 1, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that motor vehicle dealers are experiencing economic difficulties related to the state of the national economy and the motor vehicle industry in particular; that an unprecedented number of motor vehicle dealers may terminate their franchises as a result of these economic conditions; and that this act is immediately necessary to assist dealers that are facing possible termination of their franchise. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

14-58-101. Audit by independent accountant.

  1. The audit or agreed-upon procedures engagement of every municipality shall be made by Arkansas Legislative Audit or other independent persons licensed and in good standing to practice accounting by the Arkansas State Board of Public Accountancy, to be selected by the governing body of the municipality.
  2. Any statutorily required audit of a municipality shall include, as a minimum, a review and comments on substantial compliance with each of the following Arkansas laws:
    1. Arkansas Municipal Accounting Law, § 14-59-101 et seq.;
    2. Arkansas District Courts Accounting Law, § 16-10-201 et seq.;
    3. Improvement contracts, §§ 22-9-202 — 22-9-204;
    4. Budgets, purchases, and payments of claims, etc., § 14-58-201 et seq. and 14-58-301 et seq.;
    5. Investment of public funds, § 19-1-501 et seq.; and
    6. Deposit of public funds, §§ 19-8-101 — 19-8-107.
    1. For the purposes of this section, an audit shall be planned, conducted and the results of the work reported in accordance with generally accepted government auditing standards, if applicable.
      1. The financial statements of municipalities shall be presented on a fund basis with, as a minimum:
        1. The general fund and the street fund presented separately; and
        2. All other funds included in the audit presented in the aggregate.
      2. The financial statements shall consist of the following:
        1. A balance sheet;
        2. A statement of revenues (receipts), expenditures (disbursements), and changes in fund equity (balances);
        3. A comparison of the final adopted budget to the actual expenditures for the general fund and street fund of the entity; and
        4. Notes to financial statements.
      3. The report shall include as supplemental information a schedule of general fixed assets, including land, buildings, and equipment.
    2. In the alternative to subdivision (c)(2) of this section, the governing body of the municipality may adopt an annual resolution requiring their audit to be performed in accordance with the guidelines and format prescribed by the Governmental Accounting Standards Board, the American Institute of Certified Public Accountants, and the United States Government Accountability Office, if applicable.
    1. As an alternative to an audit, the municipal governing body may authorize an agreed-upon procedures engagement of the records and accounts.
    2. For the purposes of this section, agreed-upon procedures engagements shall be conducted in accordance with standards established by the American Institute of Certified Public Accountants and subject to the minimum procedures prescribed by the Legislative Auditor.
  3. The Legislative Joint Auditing Committee shall monitor the reports prescribed in this section to ensure that the reports meet the needs of the General Assembly, the public entities, and the general public.

History. Acts 1977, No. 160, § 1; 1985, No. 15, § 1; A.S.A. 1947, § 19-4416.1; Acts 2001, No. 1052, § 1; 2005, No. 499, § 1.

Amendments. The 2001 amendment, in (c), inserted “conduct the audit and,” substituted “guidelines and format” for “format and guidelines as,” substituted “Governmental Accounting Standards Board” for “appropriate professional organizations such as the National Council on Governmental Accounting and,” and added “and the United States General Accounting Office, if applicable.”

The 2005 amendment rewrote (a), (b) and (c); and added (d) and (e).

Cross References. Required audit inquiry, § 12-8-405.

14-58-102. [Repealed.]

Publisher's Notes. This section, concerning transfer of balances in bond redemption fund to general revenue fund, was repealed by Acts 1997, No. 214, § 1. The section was derived from Acts 1973, No. 51, § 1; 1977, No. 276, § 1; A.S.A. 1947, § 17-607; Acts 1987, No. 285, § 1; 1987, No. 604, § 1.

14-58-103. Withholding of membership dues — Definition.

  1. As used in this section, “municipality” means:
    1. A city of the first class;
    2. A city of the second class;
    3. An incorporated town; or
    4. A city or town department, agency, board, or commission.
    1. Effective January 1, 2006, upon receipt of a written request signed by a full-time municipal employee who is represented by a union or professional association, the municipality shall withhold membership dues of the union or professional association from the salary of the employee.
    2. The withholding request authorized by this section shall be on a form provided to the employee by the municipality.
  2. After a withholding request is received by the municipality and after withholding of an employee's dues is started under subsection (b) of this section, the withholding shall be discontinued only upon receipt of a written notice of cancellation signed by the employee.
  3. The municipality shall transmit all dues that are withheld under this section to the union or professional association representing the employee within five (5) days of the end of the pay period.

History. Acts 2005, No. 2133, § 1.

14-58-104. Specific purchases and contracts.

  1. The municipal governing body of a city of the first class, city of the second class, or an incorporated town may purchase the following commodities without soliciting bids:
    1. Motor fuels, oil, asphalt, asphalt oil, and natural gas; and
    2. New motor vehicles from a motor vehicle dealer licensed under the Arkansas Motor Vehicle Commission Act, § 23-112-101 et seq., if the motor vehicle is purchased for an amount not to exceed the fleet price awarded by the Office of State Procurement and in effect at the time the municipal governing body of a city of the first class, city of the second class, or an incorporated town submits the purchase order for the same make and model motor vehicle.
  2. The municipal governing body of a city of the first class, city of the second class, or an incorporated town may renew or extend the term of an existing contract without soliciting bids.

History. Acts 2009, No. 756, § 23.

14-58-105. Purchase of commodities or services by municipalities through competitive bidding — Preference among bidders — Definitions.

  1. As used in this section:
    1. “Commodities” means all property, including without limitation equipment, printing, stationery, supplies, insurance, and capital improvements, but excluding leases on real property, real property, or a permanent interest in real property, and exempt commodities and services;
    2. “Firm resident in the municipality” means any individual, partnership, association, or corporation, whether domestic or foreign, that:
      1. Maintains at least one (1) staffed place of business located within the corporate limits of the municipality; and
      2. For not less than two (2) successive years immediately before submitting a bid, has paid taxes to the county that benefit the municipality on either real or personal property used or intended to be used in connection with the firm's business;
    3. “Lowest qualified bid” means the lowest bid that conforms to the specifications and request for bids;
    4. “Municipality” means an incorporated town, a city of the first class, and a city of the second class;
    5. “Nonresident firm” means a firm that is not included in the definition of a “firm resident in the municipality”; and
    6. “Services” means labor, time, or effort furnished by a contractor.
      1. In the purchase of commodities or services by competitive bidding, a municipality may grant by ordinance a percentage preference to the lowest qualified bid from a firm resident in the municipality.
      2. The ordinance may provide a preference of up to five percent (5%) for a bidder that qualifies as a firm resident in the municipality.
      3. The ordinance may place a specific dollar cap on the total monetary amount of preference granted, regardless of the bid amount or percentage of preference designated in the ordinance.
        1. In calculating the preference to be allowed, the appropriate procurement officials shall take the total amount of each bid of each firm resident in the municipality who claimed the preference and deduct the percentage mandated by ordinance, if applicable, from the total amount of each bid.
        2. If after making the deduction the bid of any firm resident in the municipality claiming the preference is lower than the bid of the nonresident firm, then the award shall be made to the firm resident in the municipality that submitted the lowest qualified bid, whether or not that particular firm resident in the municipality claimed the preference.
      1. The preference provided for in this section only applies in comparing bids when one (1) or more bids are by a firm resident in the municipality and the other bid or bids are by a nonresident firm.
      2. The preference provided for in this section does not apply to competing bids if each bidder is a firm resident in the municipality.
        1. If any provision or condition of this section or the municipal ordinance conflicts with any provision of federal or state law or any rule or regulation made under federal or state law pertaining to federal grants-in-aid programs or other federal or state aid programs, the provision or condition shall not apply to the state-supported or federal-supported contracts for the purchase of commodities or services to the extent that the conflict exists.
        2. However, all provisions or conditions of this section with which there is no conflict apply to contracts to purchase commodities or services to be paid, in whole or in part, from federal funds.
  2. The provisions of this section, if adopted by local ordinance, shall apply to public works projects, capital improvements, commodities, materials, equipment, and services procured by the municipality.
  3. When circumstances arise to which this section and § 19-11-259 apply, both the preference provided under this section and the preference provided under § 19-11-259 also apply.
  4. To the extent that federal purchasing laws or bidding preferences conflict, this section does not apply to projects related to supplying water or wastewater utility services, operations, or maintenance to a federal military installation by a municipality of the state.

History. Acts 2015, No. 1059, § 1.

Subchapter 2 — Budgets in Mayor-Council Municipalities

Effective Dates. Acts 1959, No. 28, § 14: Feb. 10, 1959. Emergency clause provided: “Whereas, the municipal purchasing laws of cities of the first class have not been revised since the year 1885, and whereas, it is necessary to revise said purchasing laws and other matters in order to save the unnecessary expenditure of taxpayers money, and this Act being necessary for the immediate protection of the public peace, health and safety, an emergency is hereby declared to exist and this Act shall be in full force and effect from and after its passage and approval.”

14-58-201. Annual submission.

On or before December 1 of each year, the mayor of all cities and incorporated towns having the mayor-council form of government shall submit to the governing body of the city or town, for its approval or disapproval, a proposed budget for operation of the city or town from January 1 to December 31 of the forthcoming year.

History. Acts 1959, No. 28, § 1; 1981, No. 344, § 1; A.S.A. 1947, § 19-4421.

14-58-202. Adoption of budget.

Under this subchapter, the governing body of the municipality shall, on or before February 1 of each year, adopt a budget by ordinance or resolution for operation of the city or town.

History. Acts 1959, No. 28, § 2; 1981, No. 344, § 2; A.S.A. 1947, § 19-4422; Acts 2011, No. 622, § 1.

Amendments. The 2011 amendment inserted “by ordinance or resolution.”

14-58-203. Appropriations and changes.

  1. The approval by the municipal governing body of the budget under this subchapter shall, for the purposes of the budget from time to time amount to an appropriation of funds which are lawfully applicable to the items therein contained.
  2. The governing body may alter or revise the budget and unpledged funds appropriated by the governing body for any purpose may be subsequently, by action of the governing body, appropriated to another purpose, subject to the following exceptions:
    1. Funds resulting from taxes levied under statutes or ordinances for specific purposes may not be diverted to another purpose;
    2. Appropriated funds may not be diverted to another purpose where any creditor of the municipality would be prejudiced thereby.

History. Acts 1959, No. 28, § 3; A.S.A. 1947, § 19-4423.

Case Notes

Cited: Hartwick v. Thorne, 300 Ark. 502, 780 S.W.2d 531 (1989).

Subchapter 3 — Cities of the First Class Generally

Effective Dates. Acts 1959, No. 28, § 14: Feb. 10, 1959. Emergency clause provided: “Whereas, the municipal purchasing laws of cities of the first class have not been revised since the year 1885, and whereas, it is necessary to revise said purchasing laws and other matters in order to save the unnecessary expenditure of taxpayers money, and this Act being necessary for the immediate protection of the public peace, health and safety, an emergency is hereby declared to exist and this Act shall be in full force and effect from and after its passage and approval.”

Acts 1979, No. 154, § 2: Feb. 20, 1979. Emergency clause provided: “Whereas, a maximum dollar amount was established for first class Mayor-Council cities in 1959 which has become impractical and obsolete due to inflation since that time; and these unnecessary restrictions are not placed on cities operating under the City Administrator or City Manager forms of government or Mayor-Council cities of the second class or incorporated towns. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate protection of the public peace, health and safety shall take effect immediately on its passage and approval.”

Acts 2009, No. 756, § 25: Apr. 1, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that motor vehicle dealers are experiencing economic difficulties related to the state of the national economy and the motor vehicle industry in particular; that an unprecedented number of motor vehicle dealers may terminate their franchises as a result of these economic conditions; and that this act is immediately necessary to assist dealers that are facing possible termination of their franchise. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 1985, No. 745, § 4: Aug. 1, 1985.

14-58-301. Administration of provisions.

  1. For the purpose of assisting the mayor of a first-class city in carrying out the provisions of this subchapter, the municipal governing body may appoint one (1) or more committees, to be composed from its membership, or, by ordinance, it may create one (1) or more departments, fixing the compensation and manner of employment for the employees thereof.
  2. The persons appointed to fill any offices or to head any departments shall be responsible to the mayor and act under his direction.

History. Acts 1959, No. 28, § 8; A.S.A. 1947, § 19-4428.

14-58-302. Annual report by mayor.

  1. The mayor of a first class city shall prepare and submit to the municipal governing body within the first ninety (90) days of each year a complete report on the finances and administrative activities of the city during the previous year.
  2. The mayor shall also keep the governing body advised as to the financial condition and future needs of the city and make such recommendations as to him or her may be desirable.

History. Acts 1959, No. 28, § 4; A.S.A. 1947, § 19-4424; Acts 2009, No. 161, § 2.

Amendments. The 2009 amendment in (a) substituted “the first ninety (90) days of each year” for “sixty (60) day after the end of each fiscal year”, and deleted “fiscal” following “previous”.

14-58-303. Purchases and contracts generally.

  1. In a city of the first class, city of the second class, or incorporated town, the mayor or the mayor's duly authorized representative shall have exclusive power and responsibility to make purchases of all supplies, apparatus, equipment, materials, and other things requisite for public purposes in and for the city and to make all necessary contracts for work or labor to be done or material or other necessary things to be furnished for the benefit of the city, or in carrying out any work or undertaking of a public nature in the city.
      1. Except as provided under § 14-58-104, the municipal governing body of any city of the first class shall provide by ordinance the procedure for making all purchases which do not exceed the sum of twenty thousand dollars ($20,000).
      2. Except as provided under § 14-58-104, the municipal governing body of any city of the second class or incorporated town may provide by ordinance the procedure for making all purchases.
        1. Except as provided under § 14-58-104, in a city of the first class where the amount of expenditure for any purpose or contract exceeds the sum of twenty thousand dollars ($20,000), the mayor or the mayor's authorized representative shall invite competitive bidding on the purpose or contract by legal advertisement in any local newspaper.
        2. Bids received pursuant to the advertisement shall be opened and read on the date set for receiving the bids in the presence of the mayor or the mayor's authorized representative.
        3. The mayor or the mayor's authorized representative shall have exclusive power to award the bid to the lowest responsible bidder, but may reject any and all bids received.
      1. The governing body by ordinance may waive the requirements of competitive bidding in exceptional situations where this procedure is deemed not feasible or practical or as provided under § 14-58-104.
      2. Cities of the first class, cities of the second class, and incorporated towns may accept competitive bids in the following forms:
        1. Written; or
        2. Electronic media.
    1. In a city of the first class, a city of the second class, or an incorporated town, the governing body by ordinance shall have the option to make purchases by participation in a reverse internet auction, except that purchases and contracts for construction projects and materials shall be undertaken pursuant to subsections (a) and (b) of this section and § 22-9-203.
    2. The ordinance shall include, but is not limited to, the following procedures:
      1. Bidders shall be provided instructions and individually secured passwords for access to the reverse internet auction by either the city or the town, or the reverse internet auction vendor;
      2. The bidding process shall be timed, and the time shall be part of the reverse internet auction specifications;
      3. The reverse internet auction shall be held at a specific date and time;
      4. The reverse internet auction and bidding process shall be interactive, with each bidder able to make multiple bids during the allotted time;
      5. Each bidder shall be continually signaled his or her relative position in the bidding process;
      6. Bidders shall remain anonymous and shall not have access to other bidders or bids; and
      7. The governing body shall have access to real-time data, including all bids and bid amounts.
    3. The governing body may create by an additional ordinance reverse internet auction specifications for the anticipated purchase of a specific item or purchase.
      1. The governing body is authorized to pay a reasonable fee to the reverse internet auction vendor.
      2. The fee may be included as part of the bids received during the reverse internet auction and paid by the winning bidder or paid separately by the governing body.
    4. The governing body retains the right to:
      1. Refuse all bids made during the reverse internet auction; and
      2. Begin the reverse internet auction process anew if the governing body determines it is in the best interest of the city or town.
  2. For purposes of this section:
    1. “Reverse internet auction” means an internet-based process in which bidders:
      1. Are given specifications for items and services being sought for purchase by a municipality; and
      2. Bid against one another in order to lower the price of the item or service to the lowest possible level; and
    2. “Reverse internet auction vendor” means an internet-based entity that hosts a reverse internet auction.

History. Acts 1959, No. 28, § 5; 1979, No. 154, § 1; 1985, No. 745, § 3; A.S.A. 1947, § 19-4425; Acts 1995, No. 812, § 1; 2001, No. 508, § 1; 2005, No. 1435, § 2; 2005, No. 1957, § 1; 2009, No. 756, § 24; 2017, No. 170, § 2.

Amendments. The 1995 amendment substituted “ten thousand dollars ($10,000)” for “five thousand dollars ($5,000)” in (b)(1) and (b)(2)(A)(i); rewrote (b)(2)(A)(iii); and deleted former (b)(2)(A)(iv).

The 2001 amendment inserted “city of the second class, or incorporated town” in (a); in (b), inserted “of any city of the first class” in (b)(1)(A), added (b)(1)(B), and substituted “In a city of the first class, where” for “Where” in (b)(2)(A)(i).

The 2005 amendment by No. 1435 substituted “twenty thousand dollars ($20,000)” for “ten thousand dollars ($10,000)” in (b)(1)(A) and (b)(2)(A)(i).

The 2005 amendment by No. 1957 added (c) and (d).

The 2009 amendment inserted “Except as provided under § 14-58-104” in (b)(1)(A), (b)(1)(B), and (b)(2)(A)(i), inserted “or as provided under § 14-58-104” in (b)(2)(B), and made related changes.

The 2017 amendment added (b)(2)(C).

Research References

Ark. L. Rev.

The Contractual and Quasi-Contractual Liability of Arkansas Local Government Units, 20 Ark. L. Rev. 292.

Case Notes

Contracts for Labor or Materials.

It was against public policy to permit a bank of which the mayor of a city was a stockholder and president to take an assignment of the claim of a contractor against the city for the price of work which he had performed for the city and which work must have been inspected and accepted by the city by a board of which the mayor was chairman. People's Sav. Bank v. Big Rock Stone & Constr. Co., 81 Ark. 599, 99 S.W. 836 (1907) (decision under prior law).

Contractor was entitled to recover fair value of rest rooms installed in city building though city council bypassed board of public works in letting contract where city accepted improvements and ratified contract by ordinance. Lykes v. City of Texarkana, 223 Ark. 287, 265 S.W.2d 539 (1954) (decision under prior law).

A city is required to solicit bids for all contracts except where there is an affirmative showing, by enactment of a separate ordinance, that the solicitation of bids is not feasible or practical. Klinger v. City of Fayetteville, 293 Ark. 128, 732 S.W.2d 859 (1987).

Contracts for Professional Services.

Contracts for professional services are not exempt from the competitive bidding requirements of this section or § 14-47-138. Klinger v. City of Fayetteville, 293 Ark. 128, 732 S.W.2d 859 (1987).

Lowest Responsible Bidders.

Under Arkansas law governing competitive bidding on public contracts, the lowest responsible bidder in compliance with the bidding specifications and procedures has a legitimate expectation in being awarded the contract once the governmental body makes a decision to award the contract on which bids were solicited. L & H San., Inc. v. Lake City San., Inc., 585 F. Supp. 120 (E.D. Ark. 1984), aff'd, 769 F.2d 517 (8th Cir. 1985).

Complaint held to state cause of action on question of competitive bidding. Smith v. City of Springdale, 291 Ark. 63, 722 S.W.2d 569 (1987).

African-American contractor who was the sixth lowest bidder on a contract that the city awarded to a Caucasian contractor, and then extended without competitive bidding, did not have a property interest in the extended portion of the contract; thus, the African-American contractor's 42 U.S.C.S. § 1983 claim against the city failed. Harris v. Hays, 452 F.3d 714 (8th Cir. 2006).

Purchase of Supplies, Etc.

Contract for sale of truck and flusher to city without compliance with former statute was held void. City of Little Rock v. White Co., 193 Ark. 837, 103 S.W.2d 58 (1937) (decision under prior law).

City could not have used cleaning equipment purchased under invalid contract, contract for things other than necessary expenses, and thereby avoid payment for the use of the equipment on ground revenue was insufficient, but if the payment would exceed the revenue for the year the contract was made, city could not pay. But where evidence did not show that revenue was insufficient to pay reasonable rent of street cleaning equipment received under invalid contract at the time it was used, city was held liable for rental. City of Little Rock v. White Co., 193 Ark. 837, 103 S.W.2d 58 (1937) (decision under prior law).

Second Class Cities.

The statute does not allow cities of the second class to pass an ordinance authorizing their mayors to make purchases or to contract for labor and materials up to a certain amount. Burke v. Elmore, 341 Ark. 129, 14 S.W.3d 872 (2000).

Void Contracts.

No recovery could be had under a contract which former statute declared to be null and void. Ridge v. Miller, 185 Ark. 461, 47 S.W.2d 587 (1932) (decision under prior law).

Cited: Cosgrove v. City of W. Memphis, 327 Ark. 324, 938 S.W.2d 827 (1997).

14-58-304. Purchase of insurance.

The purchase of all types of insurance by cities of the first class shall be governed by the provisions of § 14-58-303.

History. Acts 1981, No. 926, § 1; A.S.A. 1947, § 19-4425.1.

14-58-305. Payment of claims.

  1. In a city of the first class, the mayor or his duly authorized representative may approve for payment out of funds previously appropriated for that purpose, or disapprove, any bills, debts, or liabilities asserted as claims against the city.
  2. The municipal governing body shall, by ordinance, establish in that connection a maximum amount, and the payment or disapproval of such bills, debts, or liabilities exceeding that amount shall require the confirmation of the governing body.

History. Acts 1959, No. 28, § 6; A.S.A. 1947, § 19-4426.

14-58-306. [Repealed.]

Publisher's Notes. This section, concerning disposal of municipal supplies, etc., was repealed by Acts 2017, No. 470, § 2. The section was derived from Acts 1959, No. 28, § 7; A.S.A. 1947, § 19-4427; Acts 2007, No. 661, § 1; 2011, No. 622, § 2.

Cross References. For current law, see § 14-54-302.

14-58-307. Annual audit.

In cities of the first class, the municipal governing body shall have the financial affairs of the city audited annually by an independent certified public accountant, who is not otherwise in the service of the city, or by the Division of Legislative Audit of the State of Arkansas.

History. Acts 1959, No. 28, § 9; A.S.A. 1947, § 19-4429.

14-58-308. Bonds of officers and employees.

  1. All officers and employees of a city of the first class handling financial matters for the city shall furnish a fidelity bond in such amount, on such form, and with such security as may be approved by the municipal governing body.
  2. The premiums on these bonds shall be paid by the city.

History. Acts 1959, No. 28, § 10; A.S.A. 1947, § 19-4430.

Cross References. Self-Insured Fidelity Bond Program, § 21-2-701 et seq.

14-58-309. [Repealed.]

Publisher's Notes. This section, concerning legislative findings, was repealed by Acts 2011, No. 629, § 4. The section was derived from Acts 1999, No. 1341, §§ 1, 2.

Subchapter 4 — Borrowing of Money by Cities of the First Class

Cross References. Borrowing and bankruptcy, § 14-74-101 et seq.

Effective Dates. Acts 1931, No. 233, § 5: approved Mar. 26, 1931. Emergency clause provided: “In view of the existing financial depression many cities of the first class are finding it impossible to finance their operation without anticipating tax collections, and are in such urgent need of immediate assistance that an emergency is hereby declared to exist; and, therefore, this act being necessary for the immediate preservation of the public peace, health and safety shall take effect and be in force from and after its passage.”

14-58-401. Authority generally.

  1. Upon a vote of two-thirds (2/3) of the members of the city council, cities of the first class may borrow money for the ordinary operating expenses of the city after January 1 of each year in anticipation of the property tax collections collectible in that year.
  2. The sum so borrowed shall not exceed, in the aggregate, fifty percent (50%) of the amount of city taxes extended on the county tax books for collections during the year.
  3. These cities shall have power to issue to the lender thereof negotiable but noninterest-bearing evidences of indebtedness for moneys so borrowed, to be executed by the mayor and city clerk in behalf of the city.

History. Acts 1931, No. 233, § 1; Pope's Dig., § 9820; A.S.A. 1947, § 19-4406.

14-58-402. Assignment of uncollected property tax.

    1. Cities of the first class may further assign to the lender or to a trustee for the lender as security for the repayment of borrowed moneys, the uncollected general municipal property taxes then extended upon the county tax books to be collected during the current year.
    2. The assignment shall be executed in the name and in behalf of the city by the mayor and city clerk, duly acknowledged and recorded on the real estate mortgage record in the county or judicial circuit where the city may be situated. A certified copy thereof shall be delivered by the lender or trustee for him to the county collector of revenue.
    1. As the city taxes are collected, the county collector may pay them over, less his commission, to the lender of the money or trustee for him, upon surrender to the collector of a note or certificate of indebtedness secured by the assignment, which instrument shall be accepted by the city as the equivalent of money in its settlement with the collector.
      1. At the time of paying the money over to the lender or his trustee, the collector shall cause him, either by noting on the margin of record of the assignment attested by the recorder or by a separate duly acknowledged instrument, to acknowledge payment of the sum so paid.
        1. If, when the collector makes his settlement with the county court, a sufficient sum of city taxes has not been collected to pay in full the debt secured thereby, the balance of funds on hand applicable to the debt shall be paid over by the collector to the assignee and credited against the debt.
        2. The payment shall be shown of record as specified in this section.
        3. The unpaid balance shall constitute a lien on redemption collections from the assigned taxes by the county clerk and shall, at all times, constitute a general obligation of the city, payable from any fund not appropriated by law to some other exclusive purpose.

History. Acts 1931, No. 233, § 2; Pope's Dig., § 9821; A.S.A. 1947, § 19-4407.

14-58-403. Assignments not to affect warrants — Priority.

  1. Since the Arkansas Constitution prohibits the issuance by a municipal corporation of any interest-bearing evidence of indebtedness for the purpose mentioned in this subchapter, no evidence of indebtedness bearing interest is authorized by this subchapter.
    1. Since the Arkansas Constitution further provides that municipal corporation warrants may be used in payment of municipal taxes, the assignment of taxes provided for in this subchapter shall be without prejudice to the rights of warrant holders to use municipal warrants in payment of municipal taxes.
      1. Unless this provision is held unconstitutional by the courts, the written assignment of taxes provided for in this subchapter may stipulate that the city will use the funds so borrowed for operating expenses and that no warrant will be thereafter issued by the city in excess of an aggregate amount capable of being paid out of the funds so borrowed and out of revenues of the city arising from some other source than the general municipal property tax until the borrowed moneys secured by the assignment have been repaid in full, to the end that, after making the assignment, no new city warrants capable of being used in payment of the municipal property tax shall come into existence until the indebtedness has been paid.
      2. The city may contract as to right of priority or payment when more than one (1) assignment of the taxes is made.

History. Acts 1931, No. 233, § 3; Pope's Dig., § 9822; A.S.A. 1947, § 19-4408.

Cross References. Municipal corporation warrants used in payment of municipal taxes, Ark. Const., Art. 16, § 10.

Subchapter 5 — Financial Aid to School Districts

Effective Dates. Acts 1931, No. 229, § 4: approved Mar. 26, 1931. Emergency clause provided: “Owing to the fact that many public schools are in urgent need of finances and financial assistance an emergency is hereby declared and this act shall take effect and be in full force from and after its passage.”

14-58-501. Authority generally.

Incorporated towns and cities of the first or second class in the State of Arkansas are empowered and authorized annually to grant financial aid to any public school district in which the town or city is located for the purpose of assisting the school district in retiring school bonds or paying the operating expenses of the district.

History. Acts 1931, No. 229, § 1; Pope's Dig., § 9652; A.S.A. 1947, § 19-4409.

14-58-502. Funds from which payable.

Financial aid granted and paid to public school districts shall be paid out of any funds received by the town or city. However, payments shall not be made from the regular city taxes collected by the county or state for the town or city.

History. Acts 1931, No. 229, § 2; Pope's Dig., § 9653; A.S.A. 1947, § 19-4410.

A.C.R.C. Notes. Acts 1993, No. 1070, § 5, provides that to the extent § 14-58-502 conflicts with § 26-73-114, § 14-58-502 is superseded.

14-58-503. Terms of assistance.

  1. The incorporated town or city council granting financial aid shall do so by resolution which shall fix the amount and time of the payments.
  2. The resolution shall be effective for the period of twelve (12) months.
  3. The payments shall not exceed the annual revenue from which the funds are paid.

History. Acts 1931, No. 229, § 3; Pope's Dig., § 9654; A.S.A. 1947, § 19-4411.

14-58-504. Financial aid to state colleges and universities.

  1. Cities of the first or second class and incorporated towns in the State of Arkansas shall be empowered and authorized annually to grant financial aid to any state-supported college or university which is located in the city or town or which has facilities located within the city or town. The grant of financial aid shall be for the purpose of aiding or assisting the college or university in retiring any bonded indebtedness on any building or facilities within the city or town or for the purpose of paying for the operating expenses of the college or university for programs or facilities located within the city or town.
    1. The governing body of the city or incorporated town granting financial aid to a state-supported college or university shall do so by ordinance, which shall specify the time and amount of the payments to be made, the name of the college or university receiving the funds, and the source of the funds.
    2. The ordinance shall not be effective for more than a twelve-month period of time.
  2. The financial aid granted and paid to the state-supported college or university shall be paid out of donations or gifts received by the city or town for general purposes. No moneys of the city or town arising from a tax levied for a specific purpose shall be used for any grant of financial aid to a college or university, unless the tax has been levied for the specific purpose of granting financial aid to the college or university.

History. Acts 1993, No. 367, §§ 1-3.

14-58-505. Financial aid.

  1. Incorporated towns and cities of the first or second class, pursuant to an ordinance properly and lawfully adopted by their governing bodies, are empowered and authorized to annually grant financial aid to any public postsecondary educational institution located within their borders for the purpose of assisting the institution in paying its lawful expenses of operation.
  2. The ordinance shall be effective for a period of twelve (12) months.

History. Acts 1993, No. 866, § 1.

Publisher's Notes. Acts 1993, No. 866, § 1, is also codified as § 14-16-114.

Subchapter 6 — Outstanding Municipal Warrants

Effective Dates. Acts 1893, No. 97, § 6: effective on passage.

14-58-601. Duty to order presentment.

Whenever the council of any city or incorporated town in this state may deem it expedient to call in the outstanding warrants of the city or incorporated town in order to redeem, cancel, reissue, or classify them, or for any other lawful purpose whatsoever, it shall be the duty of the council of the city or town to make an order for that purpose fixing the time for the presentation of the warrants, which shall be at least three (3) months from the date of the order.

History. Acts 1893, No. 97, § 1, p. 169; C. & M. Dig., § 7584; Pope's Dig., § 9665; A.S.A. 1947, § 19-4401.

Case Notes

Power to Call.

All municipal corporations have the power to call in outstanding warrants for cancellation, reissuance, or classification, or for any lawful purpose whatever. Eureka Fire Hose Co. v. Furry, 126 Ark. 231, 190 S.W. 427 (1916).

14-58-602. Annual call permitted.

Annually, the council of any city or incorporated town may call in the outstanding warrants of the city or incorporated town or the floating evidence of indebtedness of the city or town for the purpose of cancelling and reissuing them.

History. Acts 1893, No. 97, § 4, p. 169; C. & M. Dig., § 7587; Pope's Dig., § 9668; A.S.A. 1947, § 19-4404.

14-58-603. Notice of time and place for redemption, etc.

It shall be the duty of the clerk or recorder of the council of the city or incorporated town to notify the holders of the warrants to present them to the council at the time and place fixed for the redemption, cancellation, reissuance, or classification of the warrants, or for any other purpose whatever specified in the order of the council, by putting up, at the county courthouse door and at the election precincts in each ward in the city or town a true copy of the order of the council in the premises. This order shall be posted at least thirty (30) days before the time appointed by the order of the city or town council for the presentation of the warrants. It shall be published in newspapers printed and published in the State of Arkansas for two (2) weeks in succession, the last insertion to be at least thirty (30) days before the time fixed by the council for the presentation of the warrants.

History. Acts 1893, No. 97, § 2, p. 169; C. & M. Dig., § 7585; Pope's Dig., § 9666; A.S.A. 1947, § 19-4402.

14-58-604. Failure to present.

All persons who hold any warrants of a city or incorporated town and neglect or refuse to present them as required by the order of the city or town council and the notice prescribed by § 14-58-603 shall thereafter be forever debarred from deriving any benefits from their claims.

History. Acts 1893, No. 97, § 3, p. 169; C. & M. Dig., § 7586; Pope's Dig., § 9667; A.S.A. 1947, § 19-4403.

14-58-605. Rejection of indebtedness.

Whenever the warrants called in shall be presented to the municipal council, it shall be the duty of the council to examine them thoroughly and to reject all such evidences of indebtedness as in their judgment their city or town is not justly and legally bound to pay, subject to appeal to the circuit court.

History. Acts 1893, No. 97, § 5, p. 169; C. & M. Dig., § 7588; Pope's Dig., § 9669; A.S.A. 1947, § 19-4405.

Subchapter 7 — Revolving Cash Funds

14-58-701. [Repealed.]

Publisher's Notes. This section, concerning authority to create the fund, was repealed by Acts 1995, No. 555, § 1. The section was derived from Acts 1949, No. 40, § 1; A.S.A. 1947, § 19-4417.

14-58-702 — 14-58-704. [Repealed.]

Publisher's Notes. These sections, concering deposit of fund in bank, disbursements from fund and appropriations for fund, were repealed by Acts 1997, No. 214, § 1. They were derived from the following sources:

14-58-702. Acts 1949, No. 40, § 2; A.S.A. 1947, § 19-4418.

14-58-703. Acts 1949, No. 40, § 3; A.S.A. 1947, § 19-4419.

14-58-704. Acts 1949, No. 40, § 4; A.S.A. 1947, § 19-4420.

Subchapter 8 — Bonding of Municipal Officers and Employees

14-58-801 — 14-58-805. [Repealed.]

Publisher's Notes. This subchapter, concerning bonding of municipal officers and employees, was repealed by Acts 1995, No. 555, § 1. The subchapter was derived from the following sources:

14-58-801. Acts 1959, No. 155, § 3; A.S.A. 1947, § 19-4433.

14-58-802. Acts 1959, No. 155, § 1; 1961, No. 105, § 1; A.S.A. 1947, § 19-4431.

14-58-803. Acts 1959, No. 155, § 1; 1961, No. 105, § 1; A.S.A. 1947, § 19-4431.

14-58-804. Acts 1959, No. 155, § 2; A.S.A. 1947, § 19-4432.

14-58-805. Acts 1959, No. 155, § 1; 1961, No. 105, § 1; A.S.A. 1947, § 19-4431.

Subchapter 9 — Annual Audits

14-58-901, 14-58-902. [Repealed.]

Publisher's Notes. This subchapter, concerning annual audits, was repealed by Acts 1995, No. 555, § 1. The subchapter was derived from the following sources:

14-58-901. Acts 1949, No. 292, § 1; A.S.A. 1947, § 19-4414.

14-58-902. Acts 1949, No. 292, § 2; A.S.A. 1947, § 19-4415.

Subchapter 10 — Alternative Negotiated Purchasing for Municipalities

14-58-1001. Projects exceeding two million dollars.

  1. In the event funds from any sources for a municipal project other than revenues derived from a performance-based efficiency project exceed two million dollars ($2,000,000), excluding the cost of land, the provisions of this subchapter and all other provisions of this Code governing construction of public facilities, including, but not limited to, the provisions of § 22-9-201 et seq. at the election of municipalities shall not be applicable to the project if the selection and contracting process set forth in this section is followed.
    1. The selection procedures for the construction manager, general contractor, architect, or engineer shall provide for solicitation for qualified, licensed professionals to submit proposals.
    2. The procedures shall assure the design and completion of the project in an expeditious manner while adhering to high standards of design and construction quality.
    3. A municipality shall:
      1. Publish notice of its intention to receive written proposals three (3) consecutive days in a newspaper of local distribution;
      2. Allow a minimum of ten (10) working days from the first date of publication for the professionals to send letters or resumes in response to the newspaper advertisement; and
      3. Provide additional means of notification, if any, as the municipality shall determine is appropriate.
      1. A preselection committee which shall be composed of at least three (3) members from the municipality shall review the proposals.
      2. The preselection committee shall select a maximum of five (5) applicants and schedule interviews.
      3. The municipality shall notify the finalists of their status.
      1. The final selection committee shall be composed of the members on the preselection committee.
      2. The final interviews shall be held at the times and dates designated by the final selection committee.
      3. In selecting a general contractor, construction manager, architect, or engineer, the municipality shall consider established criteria, which shall include, but not be limited to, the following:
        1. The experience of the professional or professionals in similar projects;
        2. The record of the professional or professionals in timely completion of the projects with high quality workmanship; and
        3. Other similar matters to determine that the professional or professionals will complete the project within the time and budget and to the specifications set by the municipality.
      1. The final selection committee shall make a formal recommendation to its governing body of the professional or professionals whom it determines to be in the best interest of the municipality.
        1. Contracts for architectural, engineering, and land surveying professional consultant services shall be negotiated on the basis of demonstrated competence and qualifications for the type of services required and at fair and reasonable prices without the use of competitive bidding.
        2. No rule or regulation shall inhibit a municipality's authority to negotiate fees for the services.
    1. Construction contracts for the projects shall not be entered into without a payment and performance bond in the amount of the contract and any amendments thereto and shall provide for the manner in which the construction shall be managed and supervised.
    2. All project architects and engineers shall be properly licensed in accordance with the Arkansas State Board of Architects, Landscape Architects, and Interior Designers and the State Board of Licensure for Professional Engineers and Professional Surveyors.
    3. The construction manager or general contractor shall be properly licensed by the Contractors Licensing Board.
      1. All subcontractors on the project shall be properly licensed by the Contractors Licensing Board.
      2. Any person who is not considered a contractor under § 17-25-101 et seq. may continue to perform subcontracting work under the provisions of this subchapter.
  2. The funds may be represented in whole or in part by a written pledge or commitment from a donor, provided that the municipality shall assure itself of the financial stability of the donor to fulfill the pledge or commitment.
    1. All projects constructed pursuant to this section, to the extent applicable, shall be in accordance and compliance with:
      1. Section 17-38-101 et seq., regulating plumbers;
      2. Section 17-33-101 et seq., regulating the heating, ventilation, air conditioning, and refrigeration industry;
      3. The Fire Prevention Act, § 12-13-101 et seq.;
      4. Section 12-80-101 et seq., regarding earthquake resistant design for public structure;
      5. Americans with Disabilities Act Accessibility Guidelines, 28 C.F.R. pt. 36, App. A, adopted by the authority; and
      6. The minimum standards of the authority and criteria pertaining to projects constructed under this section.
    2. Notwithstanding anything in this section to the contrary, the provisions of §§ 19-11-801, 22-9-101, 22-9-103, 22-9-104, and 22-9-213, § 22-9-301 et seq. [repealed], § 22-9-401 et seq., § 22-9-501 et seq., § 22-9-601 et seq., § 22-9-701 et seq., and all competitive bidding statutes shall remain in full force and effect and not be affected hereby.
    3. This section shall not authorize a design-build project contract.

History. Acts 2005, No. 1989, § 1.

Cross References. Authorization for state agency to commit cash funds for construction — Penalty, § 22-9-103.

Contractors' Bonds, § 22-9-401 et seq.

Deposit of Securities, § 22-9-501 et seq.

Exemption of state projects from local regulation, § 22-9-213.

Observation by registered professionals required, § 22-9-101.

Policy, § 19-11-801.

Proposed capital expenditures, § 22-9-104.

Retainage, § 22-9-601 et seq.

Chapter 59 Arkansas Municipal Accounting Law

A.C.R.C. Notes. References to “this chapter” in §§ 14-59-101 through 14-59-116 may not apply to §§ 14-59-117 and 14-59-118 which were enacted subsequently.

Cross References. Audit by independent accountant, § 14-58-101.

Governmental Compliance Act, § 10-4-301 et seq.

Effective Dates. Acts 1977, No. 308, § 3: Feb. 28, 1977. Emergency clause provided: “Whereas, there is a great deal of confusion and uncertainty as to the requirements for publication of financial information by the towns and cities of Arkansas; and, whereas, it is essential that the citizens and qualified voters in the towns and cities have a periodical report of the financial condition of their local municipal government. Therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation of the public health, welfare and safety, shall take effect immediately upon its passage and approval.”

14-59-101. Title.

This chapter shall be known and cited as the “Arkansas Municipal Accounting Law”.

History. Acts 1973, No. 159, § 1; A.S.A. 1947, § 19-5301; Acts 2011, No. 621, § 1.

Amendments. The 2011 amendment deleted “of 1973” at the end of the sentence.

14-59-102. Applicability.

This chapter shall apply to all funds under the budgetary control of the council or board of directors of the various municipalities of this state, except water and sewer departments.

History. Acts 1973, No. 159, § 2; A.S.A. 1947, § 19-5302; Acts 2001, No. 1062, § 1.

14-59-103. Exemption for other systems.

  1. In the event any municipality feels its system of bookkeeping is such that it equals or exceeds the basic system prescribed by this chapter, the municipality may request a review by the Legislative Joint Auditing Committee.
  2. Upon the committee's concurrence with these facts, it may issue a certificate to the municipality stating that the municipality's accounting system is of a degree of sophistication such that the basic requirements of this chapter are being met and exempting the municipality from the requirements of the particulars of the system prescribed by this chapter.

History. Acts 1973, No. 159, § 14; A.S.A. 1947, § 19-5314.

14-59-104. Bank accounts.

  1. All municipalities of this state receiving state aid in the form of either turnback of general revenues or highways revenues shall maintain all funds in depositories approved for such purposes by law.
  2. The municipalities shall maintain separate bank accounts for general funds and street funds.
  3. The accounts shall be maintained in the name of the municipality.

History. Acts 1973, No. 159, § 3; A.S.A. 1947, § 19-5303.

14-59-105. Prenumbered checks — Electronic funds transfers.

  1. All disbursements of municipal funds, except those described in this section and as noted in § 14-59-106, petty cash funds, are to be made by prenumbered checks drawn upon the bank account of that municipality.
  2. The checks shall be of the form normally provided by commercial banking institutions and shall contain as a minimum the following information:
    1. Date of issue;
    2. Check number;
    3. Payee;
    4. Amount; and
    5. Signature of two (2) authorized disbursing officers of the city.
  3. Disbursements of municipal funds used for payment of salaries and wages of municipal officials and employees may be made by electronic funds transfer provided that the municipal employee or official responsible for disbursements maintains a ledger containing at least the:
    1. Name, address, and Social Security number of the employee receiving payment of salary or wages;
    2. Routing number from the bank in which the funds are held;
    3. Account number;
    4. Accounts clearing house trace number pertaining to the transfer;
    5. Date and amount transferred; and
    6. Proof that the employee has been notified of direct deposit of his or her salary or wages by electronic funds transfer.
  4. Disbursements of municipal funds used for payments to federal or state governmental entities may be made by electronic funds transfer.
    1. Disbursements of municipal funds, other than for payments under subsections (c) and (d) of this section, may be made by electronic funds transfer provided that:
      1. The governing body of the municipality shall establish by ordinance an electronic funds payment system directly into payees' accounts in financial institutions in payment of any account allowed against the municipality;
      2. For purposes of this subsection, municipalities opting for an electronic funds payment system shall establish written policies and procedures to ensure that the electronic funds payment system provides for internal accounting controls and documentation for audit and accounting purposes; and
      3. Each electronic funds payment system established under this subsection shall comply with the information systems best practices approved by the Legislative Joint Auditing Committee before implementation by the municipality.
    2. A single electronic funds payment may contain payments to multiple payees, appropriations, characters, or funds.
  5. A disbursement of municipal funds shall have adequate supporting documentation for the disbursement.

History. Acts 1973, No. 159, § 5; A.S.A. 1947, § 19-5305; Acts 1997, No. 543, § 1; 2009, No. 316, § 1; 2011, No. 621, § 2; 2019, No. 138, § 2.

Amendments. The 1997 amendment inserted “those described in this section and” following “municipal funds, except” in (a); and added (d).

The 2009 amendment added (e).

The 2011 amendment deleted “both in numerical and written form” following “Amount” in (b)(4); substituted “two (2) authorized disbursing officers” for “authorized disbursing officer” in (b)(5); deleted (c) and (d)(6); inserted present (d) and (e) and redesignated the remaining subsections accordingly.

The 2019 amendment substituted “written policies and procedures to ensure that the electronic funds payment system” for “an electronic payment method that” in (e)(1)(B); and, in (e)(1)(C), substituted “funds payment system” for “payment method”, and substituted “this subsection shall comply with the information systems best practices” for “subdivision (e)(2) of this section shall be”.

14-59-106. Petty cash funds.

  1. Municipalities are permitted to establish petty cash funds, so long as the funds are maintained as set forth in this section.
    1. The establishment of such a fund must be approved by the city council.
      1. In establishing such a fund, a check is to be drawn upon the general fund of the municipality payable to “petty cash.”
      2. That amount may be maintained in the municipal offices for the handling of small expenditures for items such as postage, light bulbs, delivery fees, etc.
    1. A paid-out slip is to be prepared for each item of expenditure from the fund and signed by the person receiving the moneys.
    2. These paid-out slips shall be maintained with the petty cash. When the fund becomes depleted, the municipality may then draw another check payable to “petty cash” in an amount which equals the total paid-out slips issued. At that time, the paid-out slips shall be removed from the “petty cash fund,” and utilized as invoice support for the check replenishing petty cash.

History. Acts 1973, No. 159, § 6; A.S.A. 1947, § 19-5306.

14-59-107. Fixed asset records.

  1. The governing body shall adopt a policy defining fixed assets. At a minimum, the policy shall set forth the dollar amount and useful life necessary to qualify as a fixed asset.
    1. All municipalities shall establish by major category and maintain, as a minimum, a listing of all fixed assets owned by the municipality.
    2. The listing shall be totaled by category with a total for all categories.
    3. The categories of fixed assets shall include the major types, such as:
      1. Land;
      2. Buildings;
      3. Motor vehicles, by department;
      4. Equipment, by department; and
      5. Other assets.
  2. The listing shall contain as a minimum:
    1. Property item number, if used by the municipality;
    2. Brief description;
    3. Serial number, if available;
    4. Date of acquisition; and
    5. Cost of property.

History. Acts 1973, No. 159, § 7; A.S.A. 1947, § 19-5307; Acts 2001, No. 1062, § 2; 2011, No. 621, § 3.

Amendments. The 2011 amendment added (a) and redesignated the remaining subsections accordingly; inserted “by department” in (b)(3)(C) and (D); and added “assets” in (b)(3)(E).

14-59-108. Reconciliation of bank accounts.

    1. On a monthly basis, all municipalities shall reconcile their cash receipts and disbursements journals to the amount on deposit in banks.
    2. The reconciliation under subdivision (a)(1) of this section shall be approved by a municipal official or employee, other than the person preparing the reconciliation, as designated by the chief executive officer of the municipality.
  1. The reconciliations should take the following form:

City of Date Amount Per Bank Statement Dated $ .00 Add: Deposits in transit (Receipts recorded in Cash Receipts Journal not shown on this bank statement). DATE RECEIPTS NO. AMOUNT $ .00 .00 .00 .00 Deduct: Outstanding Checks (Checks issued and dated prior to date of bank statement per Cash Disbursements Journal not having yet cleared the bank). CHECK NO. PAYEE AMOUNT $ .00 .00 .00 .00 RECONCILED BALANCE $ .00 This reconciled balance shall agree to either the cash balance as shown on the municipality's check stubs running bank balance or the municipality's general ledger cash balance, whichever system the municipality employs.

Click to view table.

History. Acts 1973, No. 159, § 12; A.S.A. 1947, § 19-5312; Acts 2011, No. 621, § 4.

Amendments. The 2011 amendment added (a)(2); and deleted “receiving state aid” following “municipalities” in (a)(1).

14-59-109. Prenumbered receipts.

  1. All funds received are to be formally receipted at the time of collection or the earliest opportunity by the use of prenumbered receipts or mechanical receipting devices.
    1. In the use of prenumbered receipts, the following minimum standards shall be met:
      1. If manual receipts are used, receipts are to be prenumbered by the printer and a printer's certificate obtained and retained for audit purposes. The certificate shall state the date printing was done, the numerical sequence of receipts printed, and the name of the printer;
      2. The prenumbered receipts shall contain the following information for each item receipted:
        1. Date;
        2. Amount of receipt;
        3. Name of person or company from whom money was received;
        4. Purpose of payment;
        5. Fund to which receipt is to be credited; and
        6. Identification of employee receiving money.
    2. If manual receipts are used, the original receipt should be given to the party making payment. One (1) duplicate copy of the receipt shall be maintained in numerical order in the receipt book and made available to the auditors during the course of annual audit. Additional copies of the receipt are optional with the municipality and may be used for any purposes they deem fit.
  2. If an electronic receipting system is used, the system shall be in compliance with the Information Systems Best Practices Checklist provided by the Legislative Joint Auditing Committee.

History. Acts 1973, No. 159, § 4; A.S.A. 1947, § 19-5304; Acts 2011, No. 621, § 5.

Amendments. The 2011 amendment redesignated (a)(2) as present (b)(1); deleted former (b); in (a), substituted “funds received” for “items of income,” inserted “at the time of collection or the earliest opportunity,” and deleted “such as cash registers, or validating equipment” at the end; redesignated (a)(2)(C) as (b)(2); added “If manual receipts are used” at the beginning of (b)(1)(A) and (b)(2); redesignated (a)(2)(B)(vi) and (vii) as (b)(1)(B)(v) and (vi); substituted “Identification” for “Signature” in (b)(1)(B)(vi); and added (c).

14-59-110. Cash receipts journals.

    1. Municipalities shall establish a cash receipts journal or an electronic receipts listing that shall indicate:
      1. The receipt number;
      2. The date of the receipt;
      3. The payor;
      4. The amount of the receipt; and
      5. Classification or general ledger account.
    2. The classification of the receipts shall include the major sources of revenue, such as:
      1. State revenues;
      2. Property taxes;
      3. Sales taxes;
      4. Fines, forfeitures, and costs;
      5. Franchise fees;
      6. Transfers in; and
      7. Other.
    1. All items of receipts shall be posted to and properly classified in the cash receipts journal or electronic receipts listing.
      1. The journal shall be properly balanced and totaled monthly and on a year-to-date basis.
      2. The journal shall be reconciled monthly to total bank deposits as shown on the municipalities' bank statements.
    2. The electronic receipts listing shall be posted to the general ledger at least monthly. The general ledger shall be reconciled monthly to total bank deposits as shown on the municipalities' bank statements.

History. Acts 1973, No. 159, § 10; A.S.A. 1947, § 19-5310; Acts 2001, No. 1062, § 3; 2011, No. 621, § 6.

Amendments. The 2011 amendment rewrote the introductory language of (a)(1); deleted former (a)(2)(A) with introductory language; redesignated former (a)(2)(A)(i) through (iv) as (a)(1)(A) through (D); added (a)(1)(E); redesignated former (a)(1)(B) through (a)(1)(B)(v) as (a)(2) through (a)(2)(E); deleted (a)(1)(B)(vi); inserted (a)(2)(F) and (G); substituted “fees” for “taxes” in (a)(2)(E); added “or electronic receipts listing” at the end of (b)(1); substituted “properly balanced” for “footed, crossfooted” in (b)(2)(A); and added (b)(3).

14-59-111. Cash disbursements journals.

    1. Municipalities shall establish a cash disbursements journal or electronic check register that shall indicate the date, payee, check number or transaction number, amount of each check written or transaction, and classification or general ledger account.
    2. The classifications of expenditures shall include the major type of expenditures by department, such as:
      1. Personal services;
      2. Supplies;
      3. Other services and charges;
      4. Capital outlay;
      5. Debt service; and
      6. Transfers out.
    1. The cash disbursements journal shall be properly balanced and totaled monthly and on a year-to-date basis.
    2. The cash disbursements journal shall be reconciled monthly to total bank disbursements as indicated on the monthly bank statements.
    3. The electronic check register shall be posted to the general ledger at least monthly. The general ledger shall be reconciled monthly to total bank disbursements as indicated on the monthly bank statements.

History. Acts 1973, No. 159, § 11; A.S.A. 1947, § 19-5311; Acts 2001, No. 1062, § 4; 2011, No. 621, § 7.

Amendments. The 2011 amendment redesignated (a)(1)(A) and (B) as (a)(1) and rewrote (a)(1); rewrote (a)(2)(A) through (E); added (a)(2)(F); substituted “properly balanced” for “footed, crossfooted” in (b)(1); and added (b)(3).

14-59-112, 14-59-113. [Repealed.]

Publisher's Notes. These sections, concerning cash receipts journals and cash disbursements journals, were repealed by Acts 2001, No. 1062, § 8. They were derived from the following sources:

14-59-112. Acts 1973, No. 159, § 8; A.S.A. 1947, § 19-5308.

14-59-113. Acts 1973, No. 159, § 9; A.S.A. 1947, § 19-5309.

For present law, see §§ 14-59-110 and 14-59-111.

14-59-114. Maintenance and destruction of accounting records.

  1. Accounting records can basically be divided into the following three (3) groups:
      1. Support Documents. Support documents consist primarily of the following items:
        1. Cancelled checks;
        2. Invoices;
        3. Bank statements;
        4. Receipts;
        5. Deposit slips;
        6. Bank reconciliations;
        7. Check book register or listing;
        8. Receipts listing;
        9. Monthly financial reports;
        10. Payroll records;
        11. Budget documents; and
        12. Bids, quotes, and related documentation.
      2. These records shall be maintained for a period of at least four (4) years and in no event shall be disposed of before being audited for the period in question.
      1. Semipermanent Records. Semipermanent records consist of:
        1. Fixed assets and equipment detail records;
        2. Investment and certificate of deposit records;
        3. Journals, ledgers, and subsidiary ledgers; and
        4. Annual financial reports.
        1. These records shall be maintained for a period of not less than seven (7) years and in no event shall be disposed of before being audited for the period in question.
        2. For investment and certificate of deposit records, the seven (7) years of required maintenance begins on the date of maturity.
      1. Permanent Records. Permanent records consist of:
        1. City or town council minutes;
        2. Ordinances;
        3. Resolutions;
        4. Employee retirement documents; and
        5. Annual financial audits.
      2. These records shall be maintained permanently.
  2. When documents are destroyed, the municipality shall document the destruction by the following procedure:
      1. An affidavit is to be prepared stating which documents are being destroyed and to which period of time they apply, indicating the method of destruction;
      2. This affidavit is to be signed by the municipal employee performing the destruction and one (1) council member.
      1. In addition, the approval of the council for destruction of documents shall be obtained, and an appropriate note of the approval indicated in the council minutes along with the destruction affidavit;
      2. This council approval shall be obtained before the destruction.

History. Acts 1973, No. 159, § 15; 1979, No. 616, § 2; A.S.A. 1947, § 19-5315; Acts 2011, No. 621, § 8.

Amendments. The 2011 amendment substituted “three (3)” for “two (2)” in the introductory language of (a); added (a)(1)(A)(iv) through (xii); substituted “four (4)” for “three (3)” in (a)(1)(B); substituted “Semipermanent” for “Permanent” twice in the introductory paragraph of (a)(2)(A); deleted (a)(2)(A)(i) through (iv) and redesignated (a)(2)(A)(v) as (a)(2)(A)(i); added (a)(2)(A)(ii) through (iv); substituted “and in no event shall be disposed of before being audited for the period in question” for “by the municipality, after which period the records may be destroyed after an audit has been made of the records” in (a)(2)(B); and added (a)(2)(B)(ii) and (a)(3).

14-59-115. Duties of municipal treasurer.

  1. Each municipal treasurer of this state or the designated representative that has been approved by the governing body shall submit a monthly financial report to the council or board of directors.
    1. Municipal treasurers shall maintain the accounting records prescribed in this chapter.
        1. If the municipal treasurer does not comply with this chapter or requests that specific duties be assigned to another employee or contracting entity, the governing body of a municipality may assign specific duties outlined in this chapter to another employee, or it may contract for the services to be performed by a private, qualified person or entity.
          1. (1) Before the governing body of a municipality assigns or contracts with a person or entity for the disbursing of funds, the governing body of a municipality shall establish by ordinance a method that provides for internal accounting controls and documentation for audit and accounting purposes.
          2. The governing body of a municipality shall ensure that the person or entity is adequately insured and bonded and conforms to best practices and standards in the industry.
        1. The governing body of a municipality may not assign duties relating to the collecting of funds to anyone other than an employee of the municipality.
        2. The governing body of a municipality may assign or contract with a private, qualified person or entity for the duties relating to the disbursing of funds for payroll, bonded debt, or construction projects funded with bond proceeds.

(2) The municipal treasurer shall approve the disbursement of funds before the private, qualified person or entity disburses the funds.

History. Acts 1973, No. 159, § 13; A.S.A. 1947, § 19-5313; Acts 2001, No. 1062, § 5; 2011, No. 621, § 9; 2015, No. 582, § 1.

Amendments. The 2011 amendment, in (a), substituted “financial report” for “a copy of the bank reconciliations” and deleted “city” preceding “council”; and substituted “collecting” for “receipting” in (b)(2)(B).

The 2015 amendment redesignated (b)(2)(A) as (b)(2)(A)(i); inserted “municipal” preceding “treasurer” near the beginning in present (b)(2)(A)(i); inserted (b)(2)(A)(ii); redesignated (b)(2)(B) as (b)(2)(B)(i) and added (b)(2)(B)(ii); and deleted “or disbursing” following “collecting” in (b)(2)(B)(i).

14-59-116. Annual publication of financial statement.

    1. The governing body of each municipality shall publish annually a financial statement of the municipality, including receipts and expenditures for the period and a statement of the indebtedness and financial condition of the municipality. The financial statement shall be published one (1) time in a newspaper published in the municipality.
    2. This financial statement shall be at least as detailed as the minimum record of accounts as provided in this chapter.
    3. This financial statement shall be published by April 1 of the following year.
  1. In municipalities in which no newspaper is published, the financial statement shall be posted in two (2) of the most public places in the municipality.

History. Acts 1973, No. 159, §§ 18, 19, as added by 1977, No. 308, § 1; A.S.A. 1947, §§ 19-5316, 19-5317; Acts 2011, No. 621, § 10.

Amendments. The 2011 amendment rewrote (a)(1), (a)(3) and (b).

14-59-117. Withholding of turnback for noncompliance.

    1. If Arkansas Legislative Audit determines that a municipal treasurer is not substantially complying with this chapter, Arkansas Legislative Audit shall report the findings to the Legislative Joint Auditing Committee.
      1. If a public official or a private accountant determines that a municipal treasurer is not substantially complying with this chapter, the official or accountant shall notify the Legislative Joint Auditing Committee of his or her findings.
      2. Upon notification, the Legislative Joint Auditing Committee shall direct Arkansas Legislative Audit to confirm that the municipal treasurer is not substantially complying with this chapter.
      3. Upon confirmation, Arkansas Legislative Audit shall report the findings to the Legislative Joint Auditing Committee.
    1. Upon notification of noncompliance by Arkansas Legislative Audit, the Legislative Joint Auditing Committee shall notify in writing the mayor and the city council or town council that the municipality's accounting records do not substantially comply with this chapter.
    2. The municipality has sixty (60) days after the date of notification to bring the accounting records into substantial compliance with this chapter.
      1. After the sixty (60) days allowed for compliance or upon request by the appropriate municipal officials, Arkansas Legislative Audit shall review the records to determine if the municipality substantially complies with this chapter.
      2. Arkansas Legislative Audit shall report its findings to the Legislative Joint Auditing Committee.
      1. If the municipality has not achieved substantial compliance within the sixty-day period, the Legislative Joint Auditing Committee may report the noncompliance to the Treasurer of State.
      2. Upon receipt of the notice of noncompliance from the Legislative Joint Auditing Committee, the Treasurer of State shall place fifty percent (50%) of the municipality's turnback in escrow until the Legislative Joint Auditing Committee reports to the Treasurer of State that the municipality has substantially complied with this chapter.
    1. If the municipality has not achieved substantial compliance within the sixty-day period, the governing body of the municipality shall assign specific duties outlined in this chapter to another employee or shall contract for the services to be performed by a qualified person or entity.
      1. Arkansas Legislative Audit shall notify the Legislative Joint Auditing Committee when the municipality has substantially complied with this chapter.
        1. The Legislative Joint Auditing Committee shall notify the Treasurer of State that the municipality has substantially complied with this chapter.
        2. Upon notice of compliance from the Legislative Joint Auditing Committee, the Treasurer of State shall remit all turnback due to the municipality.
    1. If Arkansas Legislative Audit has not received a request for a review of the records from the municipality before the end of the one-hundred-twenty-day period after the first date of notification of noncompliance, the Legislative Joint Auditing Committee may notify the municipality and the Treasurer of State of the continued noncompliance.
    2. Upon notice by the Legislative Joint Auditing Committee, the Treasurer of State shall withhold all turnback until such time that the accounting records have been reviewed and determined by Arkansas Legislative Audit to be in substantial compliance with this chapter.
    1. If Arkansas Legislative Audit has not received a request for a review of the records from the municipality before the end of six (6) months after the initial notification of noncompliance, the Legislative Joint Auditing Committee may notify the municipality and the Treasurer of State of the continued noncompliance.
    2. Upon notice of noncompliance for six (6) months, the municipality forfeits all escrowed funds, and the Treasurer of State shall redistribute all escrowed turnback funds applicable to the municipality among all other municipalities receiving turnback.
    3. The municipality shall not be eligible to receive any additional turnback from the state until the Legislative Joint Auditing Committee notifies the Treasurer of State that the municipality has substantially complied with this chapter.

History. Acts 2001, No. 1062, § 6; 2009, No. 288, § 1.

A.C.R.C. Notes. References to “this chapter” in §§ 14-59-101 through 14-59-116 may not apply to this section which was enacted subsequently.

Amendments. The 2009 amendment redesignated (a), inserted “substantially” in (a)(1) and (a)(2)(A), and substituted “municipal treasurer is not substantially complying with this chapter” for “required books and records are not being maintained” in (a)(2)(B); substituted “has sixty (60)” for “shall have ninety (90)” in (b)(2) and substituted “sixty (60)” for “ninety (90)” in (b)(3)(A); substituted “sixty-day” for “ninety-day” and “may” for “shall” in (c)(1)(A), inserted (c)(2), and redesignated the subsequent subdivision accordingly; substituted “one-hundred-twenty-day” for “six-month” and “may” for “shall” in (d)(1); substituted “six (6) months” for “one (1) year” in (e)(1) and (e)(2), and substituted “may” for “shall” in (e)(1); and made minor stylistic changes.

14-59-118. Penalty.

  1. Any municipal treasurer who refuses or neglects to maintain the books and records provided in this chapter shall be deemed guilty of malfeasance.
  2. Upon conviction in circuit court, the treasurer shall be fined in any sum not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000) and shall be removed from office.

History. Acts 2001, No. 1062, § 7.

A.C.R.C. Notes. References to “this chapter” in §§ 14-59-101 through 14-59-116 may not apply to this section which was enacted subsequently.

14-59-119. Debit card and credit card payments.

  1. A municipality may accept a legal payment and any associated costs through a debit card or credit card in accordance with applicable state and federal law.
    1. A municipality may enter into a contract with a credit card or debit card company and pay any fee normally charged by the credit card or debit card company for allowing the municipality to accept the credit card or debit card as payment as authorized under subsection (a) of this section.
    2. When a payment is made through a credit card or debit card, the municipality shall assess a transaction fee equal to the amount charged to the municipality by the credit card or debit card company.
    3. A municipality shall not assess a transaction fee for payments made through a credit card or debit card if the governing body of the municipality determines that the transaction fee is included in the amount charged for the service or product for which a credit card or debit card payment is made.

History. Acts 2019, No. 195, § 1; 2019, No. 773, § 1.

Amendments. The 2019 amendment added (b)(3).

Chapter 60 Workers' Compensation

Publisher's Notes. Acts 1985, No. 866, as amended, is also codified as § 14-26-101 et seq.

Effective Dates. Acts 1985 (1st Ex. Sess.), No. 34, § 2: June 26, 1985. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 866 of 1985 mandated that municipalities and counties provide Worker's Compensation coverage for their employees, with such coverage to be provided through private carriers or through one or more self-funding groups on a statewide basis; that such Act is in need of clarification with respect to the self-funding groups established on a statewide basis to authorize the formation of one or more self-funding groups of municipalities, or counties, or for both municipalities and counties, so long as safeguards are provided whereby any municipality or county shall have a right to participate in such group, if application is made for coverage thereunder; and that the immediate passage of this Act is necessary to make said clarification and to assure competition in the providing of Worker's Compensation coverage for employees of municipalities and counties in this State. Therefore, an emergency is hereby declared to exist and this Act, being immediately necessary for the preservation of the public peace, health, and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1985 (1st Ex. Sess.), No. 43, § 2: July 11, 1985. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 866 of 1985 mandated that municipalities and counties provide Worker's Compensation coverage for their employees, with such coverage to be provided through private carriers or through one or more self-funding groups on a statewide basis; that such Act is in need of clarification with respect to the self-funding groups established on a statewide basis to authorize the formation of one or more self-funding groups of municipalities, or counties, or for both municipalities and counties, so long as safeguards are provided whereby any municipality or county shall have a right to participate in such group, if application is made for coverage thereunder; and that the immediate passage of this Act is necessary to make said clarification and to assure competition in the providing of Worker's Compensation coverage for employees of municipalities and counties in this State. Therefore, an emergency is hereby declared to exist and this Act, being immediately necessary for the preservation of the public peace, health, and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1993, No. 901, § 52: Apr. 6, 1993. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that the present laws addressed in this omnibus Act on workers' compensation benefits and insurance licensure and other insurance regulatory issues are inadequate for the protection of the Arkansas public and immediate passage of this Act is necessary in order to provide for the protection of the public. Therefore, an emergency is hereby declared to exist and this omnibus Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1997, No. 975, § 20: Apr. 1, 1997. Emergency clause provided: “It is hereby found and determined by the Eighty-First General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1997 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1997 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1997.”

Acts 2003, No. 1473, § 74: July 1, 2003. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act includes technical corrects to Act 923 of 2003 which establishes the classification and compensation levels of state employees covered by the provisions of the Uniform Classification and Compensation Act; that Act 923 of 2003 will become effective on July 1, 2003; and that to avoid confusion this act must also effective on July 1, 2003. Therefore, an emergency is declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2003.”

Research References

ALR.

Law enforcement officers' recovery for injury sustained during exercise or physical recreation activities. 44 A.L.R.5th 569.

U. Ark. Little Rock L.J.

Legislative Survey, Workers' Compensation, 8 U. Ark. Little Rock L.J. 617.

14-60-101. Requirement generally.

  1. All municipalities shall be required to provide workers' compensation coverage for their officials, employees, and volunteer fire fighters.
  2. Coverages shall be provided for losses incurred while performing work for the municipality.
  3. Individuals convicted of a criminal offense and committed to a municipal detention facility or state correctional facility who are required to perform work for the municipality shall not be considered employees of the municipality.

History. Acts 1985, No. 866, § 1; A.S.A. 1947, § 81-1364; Acts 1993, No. 901, § 3.

Publisher's Notes. Acts 1985, No. 866, § 1 is also codified as § 14-26-101.

Amendments. The 1993 amendment added (c).

14-60-102. Date of coverage.

This chapter shall be effective July 1, 1985. Claims incurred prior to July 1, 1985, shall continue to be the responsibility of the state. Claims incurred on or after July 1, 1985, shall be the responsibility of the municipalities.

History. Acts 1985, No. 866, § 3; A.S.A. 1947, § 81-1366.

Publisher's Notes. Acts 1985, No. 866, § 3 is also codified as § 14-26-102.

14-60-103. Responsibility for providing coverage.

  1. Municipal governing bodies shall be responsible for providing the workers' compensation coverage required by this chapter.
  2. Each municipal governing body is authorized to require reimbursement of its general fund on a pro rata basis from the budgets of its various municipal departments and agencies for whom the workers' compensation coverage is provided.
  3. Failure of a municipality to provide the workers' compensation coverage as required in this chapter shall result in loss of the municipality's general revenues turn back from the State of Arkansas for the period for which workers' compensation coverage is not provided.

History. Acts 1985, No. 866, § 4; A.S.A. 1947, § 81-1367.

Publisher's Notes. Acts 1985, No. 866, § 4 is also codified as § 14-26-103.

14-60-104. Coverage through private carrier or self-funding.

  1. Municipalities may provide workers' compensation coverage either through private carriers or through one or more self-funding groups.
  2. Self-funding groups established for this purpose shall meet the following requirements:
    1. Any self-funding group established to provide such coverage for municipalities only shall offer coverage to any municipality in the state that applies for coverage;
    2. Any such group established to provide coverage for both municipalities and counties shall offer coverage to any municipality or county in the state desiring to participate therein;
    3. Any group established to provide workers' compensation coverage to municipalities or to counties and municipalities shall offer such coverage at rates as established and filed with the Workers' Compensation Commission by the organization establishing the self-funding group. Rates for municipalities participating in any such group shall be revised annually based on the cost experience of the particular municipality, or group of municipalities, or group of municipalities and counties; and
        1. Any self-funding group of participating municipalities or counties which is governed by a board of trustees of elected municipal or county officials shall be subject to the rules of the Workers' Compensation Commission applicable to self-insured groups or providers. However, cities and counties shall not be required to enter into an indemnity agreement binding them jointly and severally.
        2. Each board governing a self-funding group shall be permitted to declare dividends or give credits against renewal premiums based on annual loss experience.
        3. All self-funded groups shall obtain excess reinsurance from an admitted or approved insurance company doing business in Arkansas.
      1. However, in lieu of the reinsurance requirements in subdivision (b)(4)(A) of this section, any self-funded group under this section with one million five hundred thousand dollars ($1,500,000) or more in annually collected premiums may provide excess reserves of twenty percent (20%) of annual premiums by any one (1) of the following ways:
        1. Cash or certificates of deposit in Arkansas banks;
        2. Letters of credit from an Arkansas bank; or
        3. Purchase of reinsurance from the National League of Cities' Reinsurance Company or County Reinsurance, Limited, a national reinsurance facility for county governments.

History. Acts 1985, No. 866, § 2; 1985 (1st Ex. Sess.), No. 34, § 1; 1985 (1st Ex. Sess.), No. 43, § 1; A.S.A. 1947, § 81-1365; Acts 1987, No. 206, § 1; 2003, No. 1473, § 70; 2019, No. 315, § 996.

Publisher's Notes. Acts 1985, No. 866, § 2, as amended, is also codified as § 14-26-104.

Amendments. The 2003 amendment added “or County Reinsurance, Limited, a national reinsurance facility for county governments” to (b)(4)(B)(iii).

The 2019 amendment substituted “rules” for “regulations” in (b)(4)(A)(i).

14-60-105. Municipalities over 70,000.

Municipalities with populations over seventy thousand (70,000) citizens are specifically authorized to provide workers' compensation coverage for their officials and employees through either private carriers or by self-funding on either a statewide or an individual basis.

History. Acts 1986 (2nd Ex. Sess.), No. 22, § 1; A.S.A. 1947, § 81-1368; Acts 1999, No. 1179, § 13.

Amendments. The 1999 amendment made no change to this section.

14-60-106. Municipalities over 150,000.

Municipalities with populations over one hundred fifty thousand (150,000) citizens or their sewer committees are specifically authorized to provide workers' compensation coverage for their officials and employees through either private carriers or by self-funding on either a statewide or individual basis.

History. Acts 1997, No. 975, § 14.

Chapter 61 City Manager Enabling Act of 1989

Cross References. City manager form of municipal government, § 14-47-101 et seq.

Effective Dates. Acts 1991, No. 49, § 7: Feb. 7, 1991. Emergency clause provided: “It is hereby found and determined by the General Assembly that the present law pertaining to the recall of municipal officials is confusing and conficting; that this Act clarifies the law; and that clarification should go into effect immediately. Therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1993, No. 1294, § 11: Apr. 22, 1993. Emergency clause provided: “It is hereby found and determined by the General Assembly that cities with the management form of government and at-large elections face legal challenges to the method of selection of directors because of potential violations of federal laws concerning the voting rights of particular segments of a community; that in order to avoid problems under the federal and state voting laws it is essential to provide cities with the management form of government greater flexibility to implement governing plans that best meet the needs of the citizens; that providing such flexibility is essential to the public health, safety and welfare. Therefore, an emergency is hereby declared to exist and this act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1995, No. 750, § 6: Mar. 23, 1995. Emergency clause provided: “It is hereby found and determined by the Eightieth General Assembly of the State of Arkansas that federal courts may order the reorganization of the city governing body in city manager forms of government to provide for the election of all members of the board of directors by wards; that this can result in the loss of citizens being able to elect a mayor by popular vote in the city at-large; and that it is necessary to provide the citizens of cities under federal court orders the option to petition for special elections at anytime to reorganize their city governments. Therefore, in order to allow the municipal citizens of Arkansas the opportunity to reorganize their city government, an emergency is hereby declared to exist, and this act being necessary for the immediate preservation of the public peace, health, and safety, shall be in full force and effect from and after its passage and approval.”

Acts 2007, No. 729, § 3: Mar. 30, 2007. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that Arkansas cities are faced with ever increasing problems of providing services to their citizens caused by a combination of globalization, rapid technological change, rising citizen expectations, the need for more accountability, mandates from higher levels of government, and a constrained tax base which together have created a context in which more effective and efficient methods of governance have become mandatory; and that this act is immediately necessary to meet these needs and for the efficiency of government. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2009, No. 1480, § 117: Apr. 10, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act makes various revisions to Arkansas election laws that are designed to improve the administration of elections and special elections and that these revisions should be implemented as soon as possible so that the citizens of this state may benefit from improved election procedures. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Case Notes

In General.

This chapter ratified the various city-manager forms of government then in operation and provides cities with a variety of alternatives for structuring or re-structuring the city-manager form of government. Williams v. City of Texarkana, 861 F. Supp. 756 (W.D. Ark. 1992)Supp. op.861 F. Supp. 771 (W.D. Ark. 1993), aff'd, Williams v. City of Texarkana, 32 F.3d 1265 (8th Cir. 1994).

14-61-101. Title.

This chapter shall be known as the “City Manager Enabling Act of 1989”.

History. Acts 1989, No. 907, § 1.

14-61-102. Applicability.

This chapter shall apply to all cities of the first class that now have, or may hereafter adopt, the management form of government. For purposes of this chapter, the phrase “city affected by this chapter” shall mean a city of the first class that adopts or utilizes the management form of government.

History. Acts 1989, No. 907, § 2.

14-61-103. Construction.

This chapter shall be liberally construed to provide affected cities with the maximum amount of freedom to structure their own municipal government within the basic constraints of the management form of government. Nothing in this chapter, however, should be read to diminish the powers and authority of the city manager in the management form of government.

History. Acts 1989, No. 907, § 18.

14-61-104. Ratification of existing procedures.

A city affected by this chapter that is organized under the management form of government on July 3, 1989, shall continue to elect members of the board of directors, or mayor, or both, and to compensate them in the manner used at the time of the general election immediately preceding July 3, 1989, unless the city chooses, at a special election called for that purpose, to exercise one (1) of the options provided in this chapter.

History. Acts 1989, No. 907, § 3.

14-61-105. Change in size of board of directors.

A city affected by this chapter may choose, by ordinance, to increase or decrease the number of directors, provided that the board of directors, including the office of mayor, shall always be an uneven number and shall never have less than five (5) members.

History. Acts 1989, No. 907, § 4.

14-61-106. Voting order.

If the city provides for the direct election of the mayor from an at-large position and if permitted to vote, that position shall vote last in board proceedings.

History. Acts 1989, No. 907, § 6.

14-61-107. Methods of selecting directors.

A city affected by this chapter may choose one (1) of the options included within this chapter as the method by which to select a board of directors. These options are:

  1. All members of the board of directors being elected at-large;
  2. An odd number of directors, including the mayor, with any combination of directors being elected at-large and from wards, whether the position designated as mayor is appointed or directly elected;
  3. An odd number of directors, including the mayor, with any combination of directors being elected from wards and from larger designated districts that overlap wards, whether the position designated as mayor is appointed or directly elected;
  4. All members of the board of directors but one (1) being elected from wards, with one (1) member elected at-large who shall be the mayor; or
  5. All members of the board of directors being elected from wards.

History. Acts 1989, No. 907, § 5; 1989 (3rd Ex. Sess.), No. 58, § 1; 1993, No. 1294, § 1; 2019, No. 978, § 2.

Amendments. The 1993 amendment rewrote (2); and added “or” at end of (3).

The 2019 amendment inserted (3) and redesignated the remaining subdivisions accordingly; inserted “being” in (1), (4), and (5); and made a stylistic change.

Case Notes

In General.

An election among the statutorily permitted options in this section may come about from petitions filed by electors under § 14-61-113 or by reference of an option selected by the board to the voters under § 14-61-114; whatever the option being used, however, the directors (and where appropriate the mayor) are all selected by a plurality under § 14-61-112. Williams v. City of Texarkana, 861 F. Supp. 756 (W.D. Ark. 1992)Supp. op.861 F. Supp. 771 (W.D. Ark. 1993), aff'd, Williams v. City of Texarkana, 32 F.3d 1265 (8th Cir. 1994).

Method Held Improper.

The present four-three structure for the election of the city board of Taxarkana deprives black citizens of the city of an equal opportunity to participate in the political process and to elect candidates of their choice. Williams v. City of Texarkana, 861 F. Supp. 756 (W.D. Ark. 1992)Supp. op.861 F. Supp. 771 (W.D. Ark. 1993), aff'd, Williams v. City of Texarkana, 32 F.3d 1265 (8th Cir. 1994).

Seven-zero plan held to be one which is permitted under subdivision (4) of this section, held to be the more prudent plan for the city, and held to accomplish the remediation of the federal Voting Rights Act violation as to all positions on the board of directors in Texarkana. Williams v. City of Texarkana, 861 F. Supp. 771 (W.D. Ark. 1993).

14-61-108. Designation of positions.

A city affected by this chapter shall provide for election of the city's directors on the ballot as follows:

  1. If a city chooses to select all members of its board of directors at-large, or chooses to select all of its members by ward, each position shall be numbered sequentially and candidates shall file for a numbered position, e.g., Director Position 1, Director Position 2, etc.;
  2. If a city chooses to select some of its members of the board of directors by ward, each ward position shall be numbered sequentially beginning with the number one (1) and candidates shall file for the numbered position, e.g., in a city with four (4) ward positions Director Ward 1, Director Ward 2, etc.;
  3. If a city chooses to select some members of the board of directors at-large, each at-large position for director shall be numbered sequentially beginning with the first number after the last designated ward position, and candidates shall file for the numbered position, e.g., Director Position 5, Director Position 6, etc.;
  4. If a city chooses to select some members of the board of directors from larger designated districts that overlap wards, each district position for director shall be numbered sequentially, beginning with the number one (1) and candidates shall file for the number position, e.g., in a city with four (4) district positions Director District 1, Director District 2, etc.; and
  5. Notwithstanding the foregoing, if the city provides for the direct election of the mayor from an at-large position, candidates for the position of mayor shall file for the position entitled “Mayor”.

History. Acts 1989, No. 907, § 6; 2019, No. 978, § 3.

Amendments. The 2019 amendment, in the introductory language, substituted “A city” for “If a city”, deleted “chooses to select some of its members at large, it” following “chapter”, deleted “their” preceding “election”, and inserted “of the city's directors”; inserted (4) and redesignated former (4) as (5).

14-61-109. Determination of ward and district positions.

Ward positions and positions for larger designated districts that overlap wards shall be determined as follows:

  1. If a city affected by this chapter chooses to select some of its members by ward, the governing body shall divide the territory of the city into the number of wards having substantially equal population, according to the most recently published federal decennial census of population in the city, equal to the number of members of the governing body to be elected from wards;
  2. If a city affected by this chapter chooses to select some of its members by larger designated districts that overlap wards, the governing body shall divide the territory of the city into the number of districts having substantially equal population, according to the most recent federal decennial census, equal to the number of members of the governing body to be elected from districts;
  3. The governing body shall complete its apportionment of the respective districts or wards from which members of the governing body of the cities shall be elected and shall file it with the county clerk of the county and with the city clerk of the applicable city;
  4. The districts or wards so established, unless changed or modified by order of a court of competent jurisdiction or by ordinance approved by a two-thirds vote of the governing body of the city under § 14-61-107, shall be the districts or wards of the city from which each of the respective members of the governing body of the city are to be elected;
  5. Following each federal decennial census of population and following any special federal census of population within a particular city, if there has been a substantial change in the population of the districts and wards from the preceding federal census, the governing body shall reapportion the districts and wards in each city in the manner and procedure as provided in this section from which the members of the governing body are to be elected; and
    1. Notwithstanding the provisions of any other act, candidates for ward positions shall be residents of the ward they wish to represent, and candidates for district positions shall be residents of the district they wish to represent.
    2. Unless the electors choose otherwise, only those qualified electors residing in a ward may vote on a candidate from that ward.
    3. Unless the electors choose otherwise, all qualified electors of the city may vote on candidates for each larger designated district that overlaps a ward.

History. Acts 1989, No. 907, § 7; 2013, No. 314, § 1; 2019, No. 978, § 4.

Amendments. The 2013 amendment substituted “governing body” for “county board of election commissioners” and “governing body” for “governing board” throughout; and deleted “by the board” following “established” in (3).

The 2019 amendment inserted “and district” in the section heading; and rewrote the section.

Case Notes

Cited: Moorman v. Priest, 310 Ark. 525, 837 S.W.2d 886 (1992); Williams v. City of Texarkana, 861 F. Supp. 756 (W.D. Ark. 1992).

14-61-110. Compensation of directors.

Neither a director nor the mayor of the city shall receive any compensation for his services unless authorized by the voters of the city at a special or general election. Following such authorization, the board of directors, by ordinance, shall set such compensation pursuant to the provisions of Arkansas Constitution Amendment 56, as may be amended, provided that no ordinance setting compensation shall contain an emergency clause.

History. Acts 1989, No. 907, § 8.

14-61-111. Selection of mayor.

  1. Unless a majority of the qualified electors of the city voting on the issue choose otherwise, the mayor will be selected by a majority vote of the board of directors from among its members.
      1. If a majority of the qualified electors of the city voting on the issue vote to do so, the mayor shall be directly elected by the qualified electors of the city.
      2. Any person so elected shall serve as mayor for a term of four (4) years.
      1. At a special or general election on the question of whether to directly elect the mayor, a majority of the qualified electors voting on the issue may also vote to require that a successful candidate for mayor receive a minimum percentage, less than fifty percent (50%), of the total votes cast for the position of mayor in order to be elected mayor without a runoff.
      2. The minimum percentage necessary for election without a runoff shall be determined by ordinance approved by a two-thirds vote of the governing body or referred to the electors for their approval.
      1. If it is required that a candidate receive a minimum percentage, less than fifty percent (50%), of the total votes cast for mayor in order to be elected mayor without a runoff, and if no candidate for the position of mayor receives at least the required percentage of the votes cast, then the two (2) candidates receiving the highest number of votes shall be the nominees for the position of mayor and shall be certified to a special runoff election which shall be held four (4) weeks from the day on which the general election is held.
      2. The special runoff election shall be conducted, and the election results shall be canvassed and certified in the manner prescribed by law for municipal runoff elections.
  2. The question of whether to directly elect the mayor may be voted on at a general or special election held:
    1. At the time the city seeks to organize or reorganize under this chapter;
    2. As the result of a properly presented petition filed pursuant to § 14-61-113; or
    3. As the result of the referral of an ordinance by the board of directors calling for a reorganization under this chapter.
  3. If an election to provide for the direct election of the mayor is unsuccessful, the issue shall not be submitted again for at least two (2) years after the date of the unsuccessful election.

History. Acts 1989, No. 907, § 9; 1993, No. 1294, § 2; 2019, No. 642, § 1; 2019, No. 978, § 5.

Amendments. The 1993 amendment rewrote this section.

The 2019 amendment by No. 642 substituted “four (4)” for “two (2)” in (b)(3)(A).

The 2019 amendment by No. 978, in (b)(2)(B), inserted “ordinance approved by a two-thirds vote of” and substituted “or” for “and”.

14-61-112. Selection of directors and mayor.

  1. Unless special provisions for the position of mayor are implemented pursuant to § 14-61-111, the candidate for mayor, who in any special or general election shall receive a majority of the votes cast in favor of another candidate for the position, shall be deemed to be elected.
  2. If special provisions for the election of the mayor are implemented pursuant to § 14-61-111, then those special provisions will control the election of the mayor, unless those special provisions are amended by ordinance approved by a two-thirds vote of the governing body of the city.
    1. The candidate for a designated position on the board of directors of a city affected by this chapter who in a special or general election receives votes greater in number than those cast in favor of another candidate for the position and who receives at least forty percent (40%) of the votes cast, shall be deemed elected.
    2. Subdivision (c)(1) of this section may be amended by ordinance approved by a two-thirds vote of the governing body of the city or by the approval of a majority of the qualified electors of the municipality by petition.

History. Acts 1989, No. 907, § 10; 1993, No. 1294, § 3; 2019, No. 978, § 6.

Amendments. The 1993 amendment, in (a), added the exception at the beginning, substituted “including the mayor” for “including, if applicable, the position of mayor,” and substituted “special or general” for “general or special”; and added (b).

The 2019 amendment, in the section heading, substituted “Selection of directors” for “Directors” and deleted “selected by plurality vote” following “mayor”; in (a), deleted “any designated position on the board of directors of a city affected by this chapter, including the” preceding “mayor”, inserted “a majority of the”, deleted “greater in number than those” preceding “cast”, and substituted “another candidate” for “any other candidate”; added “unless those special provisions are amended by ordinance approved by a two-thirds vote of the governing body of the city” in (b); added (c); and made a stylistic change.

Case Notes

Applicability.

An election among the statutorily permitted options in § 14-61-107 may come about from petitions filed by electors under § 14-61-113 or by reference of an option selected by the board to the voters under § 14-61-114; whatever the option being used, however, the directors (and where appropriate the mayor) are all selected by a plurality under this section. Williams v. City of Texarkana, 861 F. Supp. 756 (W.D. Ark. 1992)Supp. op.861 F. Supp. 771 (W.D. Ark. 1993), aff'd, Williams v. City of Texarkana, 32 F.3d 1265 (8th Cir. 1994).

14-61-113. Petition process for special elections.

Except for questions that may be referred to the voters by the board of directors, unless it is a city where a federal court has ordered the redistricting of wards under the federal Voting Rights Act of 1965, options provided by this chapter shall be voted on at special elections called as a result of a petition for the special election being filed with the city clerk and provided to the mayor. The following procedure shall be utilized for initial elections to organize under the management form of government, for reorganization elections by a city already operating under the management form of government, and for elections to reorganize the selection of directors in cities where a federal court has ordered the redistricting of wards under the federal Voting Rights Act of 1965:

  1. A petition that calls for an election on one (1) particular option for selecting members of the board of directors using the form of the question outlined in § 14-61-115(b) shall be filed with the city clerk and provided to the mayor. The city clerk shall note on the petition the date and time that it was filed. If such a petition contains the signatures of electors equal in number to fifteen percent (15%) of the number of ballots cast for the mayor, or if the mayor is not directly elected, for the director position receiving the highest number of votes in the last general election, then the mayor by proclamation in accordance with § 7-11-201 et seq. shall submit the question to the electors at a special election, provided:
      1. The city clerk shall verify the number of signatures on the petitions within ten (10) days of the date they are filed.
      2. If there are insufficient signatures on the petitions, the petitioners shall not receive any extensions for the petition.
      3. If, however, there are a sufficient number of signatures on the petitions but the city clerk is unable to verify the required number of signatures as those of qualified electors, then the petitioners will be given ten (10) days to provide a sufficient number of verified signatures;
    1. The proclamation calling the special election shall be issued within three (3) working days of the date the city clerk verifies the number of signatures on the petitions; and
    2. The special election shall be held not more than sixty (60) days after the proclamation calling the election, provided that if the county board of election commissioners certifies in writing that it cannot prepare the ballots because of other pending elections, then the election can be held not more than ninety (90) days after the proclamation;
  2. Except for the provisions of subdivision (1)(A) of this section, if petitions filed with the mayor that call for an election on one (1) of the options set forth in this chapter are found to be insufficient for any reason whatsoever, then new petitions will have to be circulated and filed before the question can be considered again;
  3. Notwithstanding subdivision (2) of this section, if two (2) or more groups file petitions seeking a special election on one (1) of the options set forth in this chapter and the first filed petitions are declared to be insufficient, then the city clerk will determine the sufficiency of the petitions that were filed next in time. Otherwise, upon a declaration that a set of petitions is sufficient and the first in time, then all petitions filed after the first sufficient petitions and before the special election shall be deemed moot and may be destroyed;
  4. Once an election has been held pursuant to the provisions of any act that results in a change in the manner of selecting the governing body of a city with the manager form of government or seeks to reorganize a manager-government city under any other form of government, then none of the options presented by this chapter or any act concerning the organization of the government under any form of municipal government may be submitted to the voters for a period of four (4) years from the date of the election; and
  5. Except as provided in § 14-61-114(a), if an election held pursuant to the provisions of any act fails to result in a change in the manner of selecting the governing body of a city with the manager form of government or fails to reorganize such a city under any other form of government, then no other petitions seeking to adopt any of the options presented by this chapter or to reorganize the city under any form of municipal government may be submitted to the voters for a period of two (2) years from the date of the election.

History. Acts 1989, No. 907, § 11; 1993, No. 1294, § 4; 1995, No. 750, § 1; 2005, No. 2145, § 40; 2007, No. 1049, § 60; 2009, No. 1480, § 78.

A.C.R.C. Notes. Acts 1989, No. 907, § 11, provided, in part: “any election held pursuant to the provisions of this section shall submit the question presented in substantially the form set forth in Section 10 of this Act.” This language was in the act as adopted, but it refers to a section of the bill as originally introduced, which was amended out of the bill during passage, concerning the submission of the granting of veto power to the mayor.

Amendments. The 1993 amendment, in (1), added (1)(A)(i) and redesignated the remaining subdivisions accordingly, and made minor stylistic changes; in (1)(c), made minor punctuation changes; and rewrote (4) and (5).

The 1995 amendment, in the introductory paragraph, inserted “unless it is a city where a federal court has ordered the redistricting of wards under the federal Voting Rights Act” and added “and for elections to reorganize the selection of directors in cities where a federal court has ordered the redistricting of wards under the federal Voting Rights Act.”

The 2005 amendment redesignated former (1)(C) as present (1)(C)(i); and added (1)(C)(ii).

The 2009 amendment substituted “§ 7-11-201 et seq.” for “§ 7-5-103(b)” in the last sentence of the introductory language of (1).

U.S. Code. The Voting Rights Act of 1965, referred to in this section, is codified as 42 U.S.C. § 1971 et seq.

Case Notes

Construction.

An election among the statutorily permitted options in § 14-61-107 may come about from petitions filed by electors under this section, or by reference of an option selected by the board to the voters under § 14-61-114; whatever the option being used, however, the directors (and where appropriate the mayor) are all selected by a plurality under § 14-61-112. Williams v. City of Texarkana, 861 F. Supp. 756 (W.D. Ark. 1992)Supp. op.861 F. Supp. 771 (W.D. Ark. 1993), aff'd, Williams v. City of Texarkana, 32 F.3d 1265 (8th Cir. 1994).

14-61-114. Options may also be referred by vote, ordinance — Mayor's veto power.

    1. Notwithstanding any other provision, the board of directors in a city operating under the city manager form of government may by a two-thirds vote of all the members, including the mayor, refer to a special or general election, for approval by a majority of the qualified electors voting on the issue, one (1) of the options set forth in § 14-61-107, provided no election on a board-referred option has been held within the previous two (2) years.
    2. Notwithstanding the other provisions of this subsection and §§ 14-43-201 and 14-61-117, in a city operating under the management form of government where a federal court has ordered the redistricting of wards under the federal Voting Rights Act of 1965, the voters of the city are authorized to petition for a special election to vote on the options set forth in § 14-61-107 for reorganizing the selection of directors, including the election of a mayor at large, at any time. The option shall be voted on at special elections called as a result of a petition for the special election's being filed with the city clerk and provided to the mayor under § 14-61-113.
  1. The board of directors in a city with the management form of government where all directors are elected from wards and the directly elected mayor does not have the veto power may by ordinance referred to the electors and approved by a majority of the qualified electors voting on the issue grant the mayor the veto power, provided that no election on such an ordinance will occur sooner than two (2) years after the last special election on the issue of veto power for the mayor.
  2. The board of directors in a city with the management form of government where all directors are elected from wards and the directly elected mayor has the veto power may by ordinance referred to the electors and approved by a majority of the qualified electors voting on the issue remove the mayor's veto power, provided that no election on such an ordinance will occur sooner than two (2) years after the last special election on the issue of veto power for the mayor.
    1. The board of directors of any city operating under the management form of government may by ordinance refer to the electors the issue of electing the mayor from an at-large board position or the issue of granting veto power to the mayor, or both.
      1. In any instance where the mayor of a city operating under the management form of government has a veto power, the board of directors may override the veto by a two-thirds vote of the number of members of the board.
      2. Mayors who have the veto power shall not be entitled to vote unless the vote is necessary for passage of a measure.
    1. The board of directors by ordinance may provide that the duties of the city manager under § 14-47-120 or other statute be performed at the direction of the mayor.
    2. An ordinance under subdivision (e)(1) of this section shall not be amended for four (4) years following passage of the ordinance by the board of directors unless by an ordinance approved by a two-thirds vote of the board of directors.
    3. If an ordinance under subdivision (e)(1) of this section is passed, the mayor shall be compensated with a salary and benefit package comparable to the highest-ranking municipal official.

History. Acts 1989, No. 907, § 12; 1993, No. 1060, § 1; 1993, No. 1294, § 5; 1995, No. 750, § 2; 2007, No. 729, § 2.

Amendments. The 1993 amendment by No. 1294 rewrote (a).

The 1993 amendment by No. 1060 added (d).

The 1995 amendment added (a)(2).

U.S. Code. The Voting Rights Act of 1965, referred to in this section, is codified as 42 U.S.C. § 1971 et seq.

Case Notes

Construction.

An election among the statutorily permitted options in § 14-61-107 may come about from petitions filed by electors under § 14-61-113 or by reference of an option selected by the board to the voters under this section; whatever the option being used, however, the directors (and where appropriate the mayor) are all selected by a plurality under § 14-61-112. Williams v. City of Texarkana, 861 F. Supp. 756 (W.D. Ark. 1992)Supp. op.861 F. Supp. 771 (W.D. Ark. 1993), aff'd, Williams v. City of Texarkana, 32 F.3d 1265 (8th Cir. 1994).

14-61-115. Initial organization as a management form of government.

  1. A city affected by this chapter that has not yet held an election on petitions calling for an election to adopt the management form of government shall submit at a special election a ballot that addresses the following questions:
    1. Whether to adopt the management form of government;
    2. Which option to follow for the selection of members of the board of directors, the number of directors, and whether to directly elect the mayor.
  2. At the special election on the question of whether to adopt the management form of government, the ballot shall contain substantially the following question:
  3. In the area of the ballot immediately below the questions set forth in subsection (a) of this section, one (1) of the following explanations will be provided:
    1. For options where all directors are elected at large:
      1. A city manager government with a (number) member board of directors elected at large. The mayor shall be selected from among the directors; or
      2. A city manager government with a (number) member board of directors elected at large. The mayor shall be directly elected.
    2. For options where a majority of directors are elected from wards and the remaining directors are elected at large:
      1. A city manager government with (majority plus one) members of the board of directors from wards and (remaining number) members of the board of directors at-large. The mayor shall be selected from among the directors.
      2. A city manager government with (majority plus one) members of the board of directors from wards and (remaining number) members of the board of directors at-large. The mayor shall be directly elected.
    3. For options in which the directors are elected from a combination of wards and from larger designated districts that overlap wards:
      1. A city manager form of government with (number) members of the board of directors from wards and (number) members of the board of directors from larger designated districts that overlap wards. The mayor shall be elected from among the directors.
      2. A city manager government with (number) members of the board of directors from wards and (number) members of the board of directors from larger designated districts that overlap wards. The mayor shall be directly elected.
    4. For options in which all members of the board of directors are elected from wards, but the mayor is elected at large:
      1. A city manager government with a (number) member board of directors all elected from wards. The mayor shall be directly elected at large.
      2. If a city affected by this chapter votes on an option under this subsection, then the following question shall also appear on the ballot:
      3. Notwithstanding any other provision of this chapter, if the vote under this subdivision (c)(4) to provide the mayor with a veto power is unsuccessful, the issue shall not be submitted again for a period of two (2) years after the date of the certification of the unsuccessful election.
  4. If a majority of the votes cast are in favor of the proposition of adopting the management form of government, then the city shall organize under the management form of government in accordance with the options selected.

FOR adoption of the management form of government as set forth below AGAINST adoption of the management form of government as set forth below

Click to view form.

FOR giving the mayor a veto power but no vote unless there is a tie AGAINST giving the mayor a veto power but no vote unless there is a tie

Click to view form.

History. Acts 1989, No. 907, § 13; 2019, No. 978, § 7.

A.C.R.C. Notes. Acts 1989, No. 907, § 13, provided, in part: “in a city where all directors are elected by ward but the Mayor is elected at-large, whether the Mayor should have a veto power as provided by Section 10 of this Act.” This language was in the act as adopted, but it refers to a section of the bill as originally introduced, which was amended out of the bill during passage, concerning the submission of the granting of veto power to the mayor.

Amendments. The 2019 amendment inserted (c)(3) and redesignated former (c)(3) as (c)(4); substituted “in which” for “where” in the introductory language of (c)(4); deleted “and only if” following “If” in (c)(4)(B); and substituted “under this subdivision (c)(4)” for “pursuant to this subdivision” in (c)(4)(C).

14-61-116. Reorganization election by city with management form of government.

  1. A city affected by this chapter that is already organized under the management form of government shall hold a special election on petitions calling for a reorganization under this chapter in accordance with the provisions of § 14-61-114 provided that no special election shall be held on the option already being utilized by the city.
  2. A city affected by this chapter that has held a special election on petitions calling for a reorganization under this chapter may, by ordinance approved by a two-thirds vote of the municipal board of directors:
    1. Choose a different method by which to select a municipal board of directors under § 14-61-107; and
    2. Determine the minimum percentage a special candidate for mayor shall receive in order to be elected without a runoff under § 14-61-111.

History. Acts 1989, No. 907, § 14; 2019, No. 978, § 8.

Amendments. The 2019 amendment added the (a) designation and added (b).

14-61-117. Implementation of change in form of government under this chapter.

The following procedure will be used to implement this chapter by cities that have changed the manner by which directors and the mayor are selected:

  1. If an option is chosen in which the mayor is directly elected, the position of mayor shall be elected at the first general election after the organization or reorganization of the city under the management form of government. Because of this fact, at the first meeting of the board of directors after the special election results have been certified, the mayor shall prepare slips of paper for each member of the board of directors whose current terms expire soonest. One (1) of these slips of paper shall have the word “Mayor” imprinted on it and the rest of the slips shall be blank. Each member whose term will expire soonest after the reorganization will draw a slip of paper and the director drawing the slip of paper with the word “Mayor” imprinted on it will not draw again. The successor for this director will be the elected mayor.
  2. The mayor shall then prepare slips of paper for each member of the board of directors, except the one (1) that has drawn the mayor's slip, upon which will be imprinted the name of a director position, or ward position, as may be needed. These members of the board of directors shall draw one (1) slip of paper, and the words imprinted on the slip drawn by each member shall determine the position and method of selection for such member's successor.
  3. Upon the expiration of the current term of a member, his successor shall be elected in the manner designated under this section. For example, if a member draws “Director Ward 1”, then that member's successor shall be selected from the area designated as Ward 1 by the county board of election commissioners.
      1. If an option is selected that decreases the existing size of the board of directors, including the position of mayor, then at the first meeting after the results of the election have been certified, the mayor shall prepare slips of paper for each member of the board of directors, upon which will be imprinted the designation of the director positions that will remain after the decrease, whether at-large or ward positions, or a directly elected mayor. The remaining slips of paper shall remain blank.
      2. The members of the board of directors shall draw one (1) slip of paper, and the words imprinted on the slip drawn by each member shall determine the position for which that member's successor will be selected.
      3. Directors drawing a blank slip of paper shall not be succeeded upon the expiration of their terms of office.
      1. If an option is selected that increases the existing number of directors, including the position of mayor, and the next general municipal election is more than one (1) year away, then a special election to fill the new positions shall be held within a reasonable time. This special election shall be conducted in accordance with the provisions of §§ 14-47-106 and 14-47-110. Persons elected at this special election shall serve until the next general municipal election, at which time the positions shall again be on the ballot for a full four-year term.
      2. If an option is selected that increases the existing number of directors, including the position of mayor, and the next general municipal election is less than one (1) year away, then the board of directors, by majority vote, may:
        1. Conduct a special election, in accordance with the provisions of §§ 14-47-106 and 14-47-110, but declare that the initial term of office for these positions shall be from the date the results of the special election are certified until the end of the term for directors elected at the next general municipal election, and that thereafter persons elected to fill the positions will serve a term of four (4) years; or
        2. Choose to leave the positions vacant until the next general municipal election; or
        3. Fill the vacancies in accordance with § 14-47-113, with the persons appointed to serve until the next general municipal election.
    1. If an option is approved pursuant to § 14-61-107(2) that results in a change in the number of directors selected from wards, the board of directors, by majority vote, may determine how to select the positions as follows:
      1. The board may designate any or all of the positions to be selected at any special election called to implement the change, and at the succeeding two (2) general municipal elections, in order to fully implement the option adopted;
        1. In order to fully implement that option selected, the board may draw lots to determine which positions will be elected at any special election called to implement the change, and at the succeeding two (2) general municipal elections, in order to fully implement the option adopted. Each slip will be imprinted with the name of a ward position, an at-large position, or the mayor, as necessary, and the successor of the board member drawing a particular slip of paper will be elected from the position. For purposes of illustration, the director from Ward 1 will be elected at the general municipal election when the position of the director drawing the slip marked “Ward 1” is up for election. If the option selected increases the size of the board of directors, and if the board has not otherwise determined the positions to be selected, then the mayor and one (1) board member whose term expires at the general municipal election before or after the mayor's term expires will draw an extra slip for each necessary position. For example, if two (2) new positions are authorized and the mayor's term expires at the next general municipal election, then the mayor would draw one (1) extra slip and a board member whose term expires two (2) years after the mayor's term would draw one (1) extra slip.
        2. Once the board has determined how successors, or new members, or both, are to be selected, it may unanimously vote to fill all positions on the board, including the position of mayor, at a special election, or no later than the next general municipal election. If a decision is made to so expedite the election of the board, the board may designate which positions will initially be filled for two-year terms, with successors to be elected for four-year terms thereafter, which positions will be elected for four-year terms, with successors to be elected for four-year terms thereafter.

History. Acts 1989, No. 907, § 15; 1993, No. 1294, § 6.

Amendments. The 1993 amendment rewrote this section.

14-61-118. [Repealed.]

Publisher's Notes. This section, concerning the resignation of director to run for mayor, was repealed by Acts 2015, No. 222, § 1. This section was derived from Acts 1989, No. 907, § 16.

14-61-119. Removal of director.

  1. The holder of the office of city director or the mayor is subject to removal by the electors qualified to vote for a successor of the incumbent.
  2. The procedure to effect the removal of the incumbent of this elective office is as follows:
    1. The city clerk shall send to the subject of the recall a certified letter, return receipt requested, and a copy of the petition stating the basis of the recall shall be mailed to the incumbent whose removal is sought under this section;
        1. A petition shall be filed with the city clerk within ninety (90) days after the collection of signatures began.
        2. The collection of the signatures for the petition shall not begin before the date the certified letter is mailed under subdivision (b)(1) of this section.
      1. This petition shall be signed by electors entitled to vote for a successor to the incumbent sought to be removed equal in number to at least thirty-five percent (35%) of the number of ballots cast for all candidates for the position held by the incumbent sought to be removed at the preceding general election for that position;
    2. The petition shall contain a statement of the grounds and reasons on account of which the removal is sought;
    3. The signatures to the petition need not all be appended to one (1) paper, but each signer shall add to his or her signature his or her place of residence, giving street and number, if any; and
    4. One of the signers of each of the papers shall make an oath before an officer competent to administer oaths that:
      1. The statements therein made are true as he or she believes;
      2. Each signature to the paper appended is a genuine signature of the person whose name it purports to be;
      3. The petition contains the information concerning the reason for the removal of the incumbent; and
      4. The petition contains the date upon which the collection of signatures began.
  3. Within ten (10) days of the date of filing the petition, the city clerk shall ascertain and determine whether or not the petition is signed by the requisite number of qualified electors. If necessary, the board of directors shall allow the city clerk extra help for that purpose.
  4. The city clerk shall attach to the petition his or her certificate showing the result of his or her examination.
  5. If by the clerk's certificate the petition is shown to be insufficient, it may be amended within ten (10) days.
    1. Within ten (10) days after an amendment, the clerk shall make like examination of the amended petition.
    2. If his or her certificate shows the amended petition to be insufficient, it shall be returned to the person filing it, without prejudice, however, to his or her filing a new petition to the same effect.
    3. If the petition is deemed sufficient, the clerk shall submit it to the board without delay.
  6. Upon receipt from the city clerk certifying that the petition is sufficient, the board of directors shall order and fix a date for holding an election under § 7-11-201 et seq. This date shall be not more than ninety (90) days from the date of the clerk's certificate to the board that a sufficient petition is filed.
  7. The board of directors shall make or cause to be made, publication of notice and all arrangements for holding the election.
  8. The election shall be conducted and returned, and the result thereof declared in all respects as are other such elections under election laws.
  9. At the election, the proposition submitted to the electors shall be:
  10. If the majority of votes cast on the issue are in favor of the removal of the officer, the officer shall be removed and his or her office vacated, and it shall be filled in the manner provided for filling vacancies.
  11. If the majority of the votes cast on that issue are against the removal of the officer, the officer shall continue to serve.
  12. No recall petition may be filed against any officer until he or she has held his or her office for at least six (6) months, nor may any officer be subject to more than one (1) recall proceeding during any one (1) term of office.

“FOR the removal of (name of officer) from the Office of (Director)(Mayor) AGAINST the removal of (name of officer) from the Office of (Director)(Mayor)

Click to view form.

History. Acts 1989, No. 907, § 17; 1991, No. 49, § 2; 2007, No. 1049, § 61; 2009, No. 1454, § 1; 2009, No. 1480, § 79; 2011, No. 778, § 1.

Amendments. The 2009 amendment by No. 1454 inserted (b)(1), present (b)(2)(A)(ii), present (b)(5)(C), and present (b)(5)(D), and redesignated the remaining subdivisions accordingly; inserted gender-neutral language throughout the section; inserted “within ninety (90) days after the collection of signatures began” in (b)(2)(A)(i) and inserted “general” in (b)(2)(B); substituted “Upon receipt from the city clerk certifying that the petition is sufficient, the board shall” for “If the board shall find the petition thus submitted to it contains the requisite number of electors signed thereto and is otherwise found to be sufficient, it shall” in (g); substituted “during any one (1) term of office” for “between biennial elections” in (m); and made related and minor stylistic changes.

The 2009 amendment by No. 1480 substituted “§ 7-11-201 et seq.” for “§ 7-5-103(b)” in the first sentence of (g).

The 2011 amendment substituted “to his or her filing” for “to the filing of” in (f)(1).

RESEARCH REFERENCES

ALR.

Constitutionality of state and local recall provisions. 13 A.L.R.6th 661.

14-61-120. Limited voting — Cumulative voting.

  1. A majority of the qualified electors voting on the issue may vote to permit limited voting or cumulative voting for directors, other than the mayor, elected at large.
  2. Under a limited voting system, voters are restricted to casting only one (1) vote for any single candidate, but are not given as many votes as there are at-large seats to fill.
  3. Cumulative voting shall be construed as allowing every voter to cast as many votes as there are positions to be filled of the same category, without restricting the voter to casting only one (1) vote for any particular candidate. This system permits voters to aggregate or cumulate their votes. For example, in a three-seat, three-vote election, a voter may provide three (3) candidates with one (1) vote each, or the voter may cast two (2) votes for one (1) candidate and one (1) vote for a second candidate, or the voter may cast all three (3) votes for a single candidate.

History. Acts 1993, No. 1294, § 7.

Chapter 62 Revocation of Charter of a Municipal Corporation

14-62-101. Authority generally.

The charter of a municipal corporation may be revoked, its offices abolished, and the territory and inhabitants returned to the county in which the municipal corporation is located in the manner provided in this chapter, subject to the authority of the receiver appointed under § 14-62-104 and to the interests of creditors.

History. Acts 2017, No. 712, § 3.

14-62-102. Revocation due to noncompliance.

    1. If the Legislative Joint Auditing Committee concludes the process under § 14-59-117 on a municipal corporation, and in the immediately subsequent three-year period the Legislative Joint Auditing Committee concludes the process a second time, the Legislative Joint Auditing Committee may notify the Attorney General and the Governor of its actions.
    2. The Attorney General shall file pleadings in the circuit court of the Sixth Judicial District to revoke the charter of the municipal corporation based on the notification under subdivision (a)(1) of this section.
  1. Upon a finding that the conditions under subsection (a) of this section have been met, the circuit court of the Sixth Judicial District shall revoke the charter of a municipal corporation under this section, and the clerk of the circuit court shall certify a transcript of the order under the official seal of the clerk and forward a copy of the transcript to the:
    1. Secretary of State;
    2. Arkansas Geographic Information Systems Office;
    3. Governor; and
    4. County judge of the county in which the municipal corporation is located.

History. Acts 2017, No. 712, § 3.

14-62-103. Surrender and repeal of charter.

    1. When the circuit court of the Sixth Judicial District issues an order revoking the charter of a municipal corporation under § 14-62-102, the order is effective upon the qualification and appointment of the receiver.
    2. Once an order becomes effective under subdivision (a)(1) of this section:
      1. The charter of the municipal corporation is surrendered and repealed;
      2. The population and territory governed under the charter are returned back to the county in which the municipal corporation is located, subject to the authority of the receiver appointed under § 14-62-104 and to the interests of creditors;
      3. The offices held under the charter are abolished;
      4. The power of taxation vested in or exercised by the municipal corporation is withdrawn, unless otherwise specified under this chapter;
        1. Title to all property, whether real, personal, mixed, tangible, or intangible, of the municipal corporation is transferred to the receiver appointed under § 14-62-104, unless otherwise specified under this chapter.
          1. The receiver shall take immediate possession of and control over the property.
          2. The receiver shall execute any necessary documentation transferring his or her interest in the property to the county if the property is no longer needed for the purposes under this chapter;
      5. All ordinances, regulations, codes, or other laws promulgated by the municipal corporation and its agencies are repealed and are void; and
      6. All licenses, permits, and similar documents issued by the municipal corporation are void.
  1. Until a final order of dissolution is entered under § 14-62-114, the receiver appointed under § 14-62-104 shall continue to collect the share of:
    1. General revenue turnback funds, as defined in the Revenue Stabilization Law, § 19-5-101 et seq., that the municipal corporation is entitled to under § 27-70-207;
    2. County and state taxes that were being paid to the municipal corporation; and
    3. Any other funds, revenues, or fees as otherwise provided under this chapter.

History. Acts 2017, No. 712, § 3.

14-62-104. Receiver — Appointment — Oath — Duties — Authority.

  1. Within five (5) business days of receipt of the order revoking the charter of a municipal corporation under § 14-62-102, the Governor shall appoint a qualified officer, to be known as the receiver, for an extinct municipal corporation whose charter has been revoked under this chapter.
  2. A receiver shall:
    1. Take the oath required of other collectors of public revenue and give bond with good sureties to be approved by the circuit court of the Sixth Judicial District;
    2. Enter upon the duties of the office as soon as appointed and qualified;
    3. Take possession of:
      1. All books, papers, and documents pertaining to the assessment and collection of taxes of the extinct municipal corporation; and
      2. Any property belonging to the extinct municipal corporation; and
    4. Resolve the outstanding indebtedness of the extinct municipal corporation pursuant to this chapter.
    1. The receiver may be removed at any time by the circuit court of the Sixth Judicial District for good cause, including failure to discharge one (1) or more duties imposed by this chapter.
    2. Removal may be upon:
      1. The circuit court's own motion; or
      2. The motion of:
        1. A person interested as an inhabitant of the extinct municipal corporation;
        2. A creditor of the extinct municipal corporation;
        3. The county judge of the county in which the extinct municipal corporation was located; or
        4. The Attorney General on behalf of the state.
    3. A substitute receiver shall be appointed in the same manner as the initial receiver appointed under this chapter.
    4. The office of the receiver shall cease and terminate at the time a final order of dissolution is entered under § 14-62-114.
  3. The receiver may:
    1. Employ attorneys, accountants, or other persons to assist in performing the duties of the receiver, to be paid out of the funds collected by the receiver;
    2. Sue or be sued;
    3. Take possession and control of all property, whether real, personal, mixed, tangible, or intangible, of the extinct municipal corporation;
    4. Enforce all contracts of the extinct municipal corporation, subject to the rights of creditors;
    5. Receive fees, taxes, and other charges, collect debts, and otherwise enforce all claims of the extinct municipal corporation for money owed;
    6. Exercise any other powers conferred in this chapter expressly or by necessary implication; and
    7. Take any other action necessary and beneficial to the extinct municipal corporation's former inhabitants, creditors, or other interested persons, upon approval of the circuit court.
  4. If the receiver takes possession and control of any property of the extinct municipal corporation, the receiver may manage or operate the property as necessary to collect debts, preserve the property, and generate income, all for the benefit of the inhabitants, creditors, bondholders, or any other interested persons or entities of the extinct municipal corporation.

History. Acts 2017, No. 712, § 3.

14-62-105. Reports and collections by receiver.

  1. Every six (6) months, a receiver for an extinct municipal corporation appointed under § 14-62-104 shall make to the circuit court of the Sixth Judicial District a clear and complete statement reflecting all moneys collected, all taxes collected and settled, and all taxes that remain to be collected and settled.
    1. The Department of Finance and Administration shall continue to administer and to collect as provided by law all sales and use taxes of the extinct municipal corporation.
    2. The department shall remit collection of the taxes under subdivision (b)(1) of this section to the receiver appointed under § 14-62-104.
      1. At least one (1) time per month, the receiver shall pay into the State Treasury the whole sum collected or received from taxes.
      2. The receiver shall distinguish the respective sources from which the moneys paid in are derived, reflecting what is collected from taxes for general purposes and what is collected for special purposes, and designating the general or special purpose, so that the moneys may be kept separate in the State Treasury.
      1. At least one (1) time per month, the receiver shall pay into a bank approved under § 19-8-105 the whole sum collected and received from any nontax revenue sources.
      2. The receiver shall distinguish the respective sources from which the moneys paid in are derived, so that the moneys may be kept separate in the bank under subdivision (c)(2)(A) of this section.

History. Acts 2017, No. 712, § 3.

14-62-106. Compensation of receiver.

  1. A receiver appointed under § 14-62-104 shall receive such compensation for his or her services as shall be fixed by the circuit court of the Sixth Judicial District.
  2. As the circuit court may allow, a receiver shall have credit for all taxes, expenses, attorney's fees, and other necessary disbursements in the execution of the receiver's duties, to be paid out of the funds collected by the receiver.
  3. If insufficient funds have been collected under this chapter to compensate the receiver, the circuit court may request the Governor to transfer adequate funds to compensate the receiver from the available funds.

History. Acts 2017, No. 712, § 3.

14-62-107. Audit of receiver.

A receiver appointed under § 14-62-104 is subject to audit by Arkansas Legislative Audit:

  1. At the request of the:
    1. Circuit court of the Sixth Judicial District; or
    2. County judge of the county in which the extinct municipal corporation was situated; or
  2. At the discretion of the Legislative Auditor.

History. Acts 2017, No. 712, § 3.

14-62-108. Proceedings to collect revenue due.

    1. For the purpose of collecting the revenue under this chapter, a receiver appointed under § 14-62-104 may file proceedings in the name of the receiver on behalf of all creditors and against taxpayers who owed taxes to the extinct municipal corporation, in cooperation with the Department of Finance and Administration under § 14-62-111.
    2. The proceedings shall be filed in the circuit court of the Sixth Judicial District.
  1. All pending lawsuits involving the extinct municipal corporation in connection with the collection of taxes or the payment of indebtedness are revived in the name of the receiver and consolidated with the proceedings provided for in this section, in cooperation with the Department of Finance and Administration under § 14-62-111.
      1. The circuit court may settle and adjust all equities, priorities, and liens and give all appropriate relief.
      2. The circuit court may enforce all liens upon property for the payment of the taxes and order and make all sales of property necessary to the collection of the taxes.
      3. The taxes embraced by this section, and which this section provides for, are all taxes imposed by the extinct municipal corporation before the revocation under this chapter and shall continue to be fully collected after the revocation under this chapter up to the time of the full accord and satisfaction of the indebtedness for which the taxes were levied, and no other taxes.
    1. The circuit court shall include in the proceedings only those taxpayers of the extinct municipal corporation so that no other citizens of the county shall be responsible for the payment of taxes owed to or the debts of the extinct municipal corporation, except as otherwise provided under this chapter or for other pledged or dedicated sales and use taxes of the extinct municipal corporation.
    2. The circuit court or receiver shall not raise any rate of taxation in effect as of the date of the entry of an order revoking the charter of a municipal corporation under § 14-62-102.

History. Acts 2017, No. 712, § 3.

14-62-109. Public utilities.

  1. A public utility operating and organized as an improvement district and serving residents of the extinct municipal corporation shall continue in operation.
      1. A public utility operated by the extinct municipal corporation is transferred to the receiver.
      2. Funds held by the extinct municipal corporation in connection with the operation of the public utility are transferred to the receiver, including without limitation customer deposits and debt reserve funds.
    1. The receiver shall continue to:
      1. Operate the public utility;
      2. Collect all fees and taxes due to and all funds associated with the public utility; and
      3. Continue to pay any bonded indebtedness of the public utility.
    2. The transfer of the public utility to the receiver is subject to any liens held on the public utility that existed at the time of the transfer under this chapter, including without limitation mortgages and security interests.
    3. If a public utility is transferred under this section, the Department of Finance and Administration shall continue to collect as provided by law pledged or dedicated sales and use taxes levied for bonded indebtedness of the public utility and remit the collections to the receiver under § 14-62-105(b) until the indebtedness is satisfied.
  2. Within sixty (60) days of the appointment of the receiver under § 14-62-104, the receiver shall publish a notice in a newspaper with general circulation in the county in which the municipal corporation is located that the opportunity for the acquisition of the public utility shall:
      1. Be first extended to an adjacent municipality located within five (5) miles of the extinct municipal corporation, and if a majority of the governing body of the adjacent municipality votes to acquire the public utility under this subdivision (c)(1)(A), the acquisition transaction shall be completed within one hundred eighty (180) days of the appointment of the receiver under § 14-62-104.
      2. If more than one (1) adjacent municipality located within five (5) miles of the extinct municipal corporation votes to acquire the public utility under subdivision (c)(1)(A) of this section, the adjacent municipalities shall be given priority based on population from largest to smallest;
      1. Be next extended to the county in which the extinct municipal corporation is located if the public utility is not acquired by an adjacent municipality under subdivision (c)(1) of this section.
      2. If a majority of the governing body of the county in which the extinct municipal corporation is located votes to acquire the public utility under subdivision (c)(2)(A) of this section, the acquisition transaction shall be completed within two hundred seventy (270) days of the appointment of the receiver under § 14-62-104;
        1. Be next extended to an adjacent public utility operated and organized as an improvement district and located within five (5) miles of the extinct municipal corporation if the public utility is not acquired by the county in which the extinct municipal corporation is located under subdivision (c)(2) of this section.
        2. If a majority of the governing body of the adjacent public utility improvement district votes to acquire the public utility under subdivision (c)(3)(A)(i) of this section, the acquisition transaction shall be completed within three hundred sixty (360) days of the appointment of the receiver under § 14-62-104.
      1. If more than one (1) adjacent public utility improvement district located within five (5) miles of the extinct municipal corporation votes to acquire the public utility under subdivision (c)(3)(A) of this section, the adjacent public utility improvement districts shall be given priority based on evidence of economic viability and the number of customers served from largest to smallest;
    1. Be next extended to an entity other than the entities listed in subdivisions (c)(1)-(3) of this section if none of the entities listed in subdivisions (c)(1)-(3) of this section acquire the public utility of the extinct municipal corporation, and the acquisition transaction shall be completed within four hundred fifty (450) days of the appointment of the receiver under § 14-62-104; and
        1. (a) Not be further extended and remain with the receiver if none of the entities in subdivisions (c)(1)-(4) of this section acquire the public utility of the extinct municipal corporation.
          1. A suburban improvement district created under subdivision (c)(5)(A)(i) of this section is created by operation of law without the statutory requirements under § 14-92-201 et seq. concerning petitions or hearings or other statutory requirements at the discretion of the circuit court of the Sixth Judicial District.
          2. The receiver shall serve as the board of commissioners, and the boundaries of the suburban improvement district created under subdivision (c)(5)(A)(i) of this section shall include the service area of the public utility of the extinct municipal corporation.
        2. A suburban improvement district created under subdivision (c)(5)(A)(i) of this section is considered an instrumentality of the state for purposes of bankruptcy proceedings.
      1. At the conclusion of any bankruptcy proceeding instituted under subdivision (c)(5)(A) of this section, the public utility shall be transferred to the county.
  3. The receiver may request a reasonable extension of time from the circuit court of the Sixth Judicial District for the purpose of the completion of an acquisition of a public utility under subsection (c) of this section.

(b) The receiver shall establish a suburban improvement district to operate the public utility using the authority set out in § 14-92-201 et seq. for the purpose of the institution of bankruptcy proceedings for the public utility.

History. Acts 2017, No. 712, § 3.

14-62-110. Retirement pension funds — Exemption from chapter — Control transferred to Arkansas Local Police and Fire Retirement System.

  1. Moneys due and owing the Arkansas Local Police and Fire Retirement System under § 24-10-101 et seq. or due and owing a local firemen's relief and pension fund or a local policemen's pension and relief fund under § 24-11-101 et seq. are not subject to the proceedings under this chapter and are transferred to the control of the system.
      1. A local firemen's relief and pension fund or a local policemen's pension and relief fund created under § 24-11-101 et seq. that is not subject to the administration of the system at the time of the order entered under § 14-62-102 is consolidated with the system.
          1. The actuary under contract to the system shall compute the retirement reserve for vested and active members and for eligible beneficiaries of a local firemen's relief and pension fund or a local policemen's pension and relief fund.
          2. After receiving the report of the actuary, the receiver shall transfer the computed reserve to the system to be held in an account designated as the retirement reserve for a local firemen's relief and pension fund or a local policemen's pension and relief fund and from which the system shall pay eligible beneficiaries.
        1. If the retirement reserve of a local firemen's relief and pension fund or a local policemen's pension and relief fund is inadequate to pay full benefits to eligible recipients, the receiver may reduce benefits based on such actuarially computed amounts as are necessary to pay eligible recipients, without impairing contracts and to the extent allowed under law.
          1. The receiver shall continue to collect such millages, fines, fees, state insurance tax turnbacks, and other revenues as allowed by law for the support of a local firemen's relief and pension fund or a local policemen's pension and relief fund.
          2. When a final order of dissolution is entered under § 14-62-114, the millages, fines, fees, state insurance tax turnbacks, and other revenues as allowed by law shall be paid to the system.
      1. Pledged or dedicated taxes levied by the extinct municipal corporation at the time of the order under § 14-62-102 for a local firemen's relief and pension fund or a local policemen's pension and relief fund shall continue to be collected until the indebtedness is satisfied.
      2. When a final order of dissolution is entered under § 14-62-114, pledged or dedicated taxes collected under subdivision (b)(2)(A) of this section shall continue to be collected and remitted to the system until the indebtedness is satisfied.
    1. The system shall refund all member contributions made to the system or fund applicable to the extinct municipal corporation to a member who has not yet vested in the system or in a local firemen's relief and pension fund or a local policemen's pension and relief fund at the time of the order entered under § 14-62-102.
    2. Service credit earned with the extinct municipal corporation by a nonvested member under the system is cancelled, and any member contributions relating only to the extinct municipal corporation shall be refunded to the nonvested member.

History. Acts 2017, No. 712, § 3; 2019, No. 383, § 13.

Amendments. The 2019 amendment inserted “fines” in (b)(1)(B)(iii) (b)

14-62-111. Collection of sales and use taxes.

  1. If a receiver is appointed under § 14-62-104, sales and use taxes of the extinct municipal corporation shall continue to be collected in the manner provided by law by the Department of Finance and Administration, with the collections paid to the receiver for the benefit of the extinct municipal corporation.
  2. At the time a final order of dissolution is entered under § 14-62-114, the collection of sales and use taxes of the extinct municipal corporation shall cease, except as otherwise provided under this chapter.
  3. Delinquent sales and use taxes of the extinct municipal corporation shall continue to be collected in the manner provided by law, and the Department of Finance and Administration and the receiver shall cooperate in the collection of the delinquent sales and use taxes.

History. Acts 2017, No. 712, § 3.

14-62-112. Filing of claims — Appeals.

    1. If a party is dissatisfied with the decision of any litigated question under this chapter, he or she may have the question reheard upon appeal to the Supreme Court.
    2. Only so much of the record as pertains to the appeal shall form the transcript and record for the appeal.
    1. Except as provided under subdivision (b)(2) of this section, the costs shall be paid by the parties to the appeal as the Supreme Court may direct.
    2. If the receiver appointed under § 14-62-104 is a party to the litigation on behalf of creditors generally, the costs may be charged to the whole or to some particular fund if the Supreme Court deems proper and as right and justice may require.

History. Acts 2017, No. 712, § 3.

14-62-113. Payment of funds collected.

Funds collected under this chapter shall be paid out from time to time to those entitled to the funds and in such manner as the circuit court of the Sixth Judicial District may determine, on the warrant of the receiver appointed under § 14-62-104 and countersigned by the judge of the circuit court.

History. Acts 2017, No. 712, § 3.

14-62-114. Final order of dissolution.

At the time of the full accord and satisfaction of the indebtedness of the municipal corporation whose charter is revoked under this chapter and upon the request of the receiver, the circuit court of the Sixth Judicial District shall enter a final order of dissolution.

History. Acts 2017, No. 712, § 3.

Chapters 63-69 [Reserved.]

[Reserved]

Subtitle 4. Public Finance Generally

Chapter 70 General Provisions

[Reserved]

Chapter 71 Fiscal Years

Cross References. School fiscal year, § 6-20-410.

Effective Dates. Acts 1925, No. 210, § 8: approved Mar. 23, 1925. Emergency clause provided: “It is hereby ascertained and declared that by reason of the heavy indebtedness hanging over many cities and towns they are unable to procure or maintain proper facilities for the extinction of fires, proper police protection, or proper safeguards for the public health and that by reason of the indebtedness hanging over many counties they are unable to maintain the public buildings, the roads and bridges in a safe condition, are unable to maintain such deputy sheriffs and deputy constables as are necessary to preserve the public peace and to protect the citizens against criminals and are unable to maintain the institutions and enforce the regulations for the preservation of the public health, and for these reasons it is hereby declared that an emergency exists, and that this act is immediately necessary for the preservation of the public peace, health and safety and the same shall take effect and be in force upon its passage.”

14-71-101. County fiscal year — Accounting method for county budget and treasury audit purposes — Definition.

  1. The fiscal year of the counties of the state, covering each period of twelve (12) months, begins on January 1 of each year and ends at the close of business on December 31 of the same year.
    1. Counties shall use the modified accrual accounting basis for audit purposes.
      1. For county government and the regulatory basis of accounting under § 10-4-412(b)(2), “modified accrual accounting basis” is defined as an accounting system that recognizes revenues at the time revenues become available and measurable and expenditures at the time liabilities are incurred.
      2. Revenues and expenditures are accruable to the fiscal year as provided in subsection (c) of this section.
    1. Obligations incurred by a county on or before the end of the fiscal year that are not issued an accounts payable claim until the following fiscal year shall be posted to the prior fiscal year appropriations journal when paid within the first two (2) months of the following fiscal year.
      1. Revenues collected and owed to a county treasury before the end of the fiscal year and not remitted to the county treasury until the following fiscal year are accruable to the prior fiscal year when receipted by the county treasurer within the first two (2) months of the following fiscal year, except as provided in subdivision (c)(2)(C) of this section.
      2. Moneys received by the respective counties from the County Aid Fund are revenues of the year in which the moneys are received and are not revenues of the year in which the moneys were collected and paid into the State Treasury.
      3. Moneys received by the respective counties from the Treasurer of State representing county sales and use taxes are revenues of the year in which the moneys are received and are not revenues of the year in which the moneys were collected and paid into the State Treasury.
  2. The finance officers of the county shall keep and maintain records as required by law to account for accruable receivables or payables for audit purposes.

History. Acts 1939, No. 28, § 1; A.S.A. 1947, § 13-102; Acts 2017, No. 527, § 1; 2019, No. 310, § 3.

Amendments. The 2017 amendment rewrote the section heading, which formerly read “Counties”; designated the existing language as (a); rewrote (a); and added (b) through (d).

The 2019 amendment added the (c)(2)(A) designation; added “except as provided in subdivision (c)(2)(C) of this section” in (c)(2)(A); and added (c)(2)(B) and (c)(2)(C).

Case Notes

Claims.

The county court's allowance of a claim on December 31, 1932 must have been allocated to the fiscal year of 1931-1932 in determining whether the warrant issued therefor was void as having been given for an amount in excess of the revenues for the fiscal year. Mitchell v. Volkmer, 190 Ark. 11, 76 S.W.2d 947 (1934) (decision under prior law).

14-71-102. Cities and towns.

The fiscal year of each city and town in this state shall begin with January 1 and end at 12:00 midnight on December 31 of each year.

History. Acts 1925, No. 210, § 7; Pope's Dig., § 9536; A.S.A. 1947, § 13-103.

Chapter 72 Bonds of Counties, Cities, and Towns

Research References

ALR.

Computation of net “loss” for which fidelity insurer is liable. 5 A.L.R.5th 132.

Am. Jur. 56 Am. Jur. 2d, Mun. Corp., § 592 et seq.

C.J.S. 20 C.J.S., Counties, § 258 et seq.

64 C.J.S., Mun. Corp., § 1902 et seq.

87 C.J.S., Towns, §§ 1139-1540.

Subchapter 1 — General Provisions

Effective Dates. Acts 1973, No. 514, § 3: Mar. 30, 1973. Emergency clause provided: “It is hereby found and declared that municipalities which have received grants for water pollution control projects funded by bonds issued by the Department pursuant to Act No. 108 (which bonds are payable from the proceeds of a Water Quality Control Charge levied against users of the utility system of the Municipality receiving the grant), may, by refunding the bonds issued to fund the grant, obtain the use of reserves required to be maintained in connection with the Department bonds and realize a savings in debt service requirements, and this Act is necessary to authorize the issuance of refunding bonds by municipalities for the purpose of refunding bonds issued under Act No. 108. An emergency is, therefore, declared to exist, and this Act, being necessary for the preservation of the public peace, health and safety, shall be effective from and after its passage and approval.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

14-72-101. Municipal water and sewer revenue bonds for repayment of water pollution control grants.

  1. Any city of the first class, city of the second class, or incorporated town, hereinafter referred to as a “municipality”, which has received from the Division of Environmental Quality of the Department of Energy and Environment a water pollution control project grant funded from the proceeds of bonds of the division issued pursuant to §§ 8-5-301 — 8-5-318 [repealed] may issue water revenue bonds under the provisions of § 14-234-201 et seq., sewer revenue bonds under the provisions of §§ 14-235-201 — 14-235-224, or combined water and sewer revenue bonds for the purpose of refunding the bonds of the division issued to fund the grant.
  2. The refunding bonds may be combined with other bonds issued by the municipality under the provisions of § 14-234-201 et seq. and §§ 14-235-201 — 14-235-224 into a single issue.
  3. All bonds issued under this section shall in all respects be authorized, sold, issued, and secured in the manner provided for other bonds issued under § 14-234-201 et seq. and §§ 14-235-201 — 14-235-224 pursuant to which the refunding bonds are being issued.

History. Acts 1973, No. 514, § 1; A.S.A. 1947, § 13-1238; Acts 1999, No. 1164, § 122; 2019, No. 910, § 3032.

A.C.R.C. Notes. Acts 1997, No. 1219, § 2, provided:

“‘Arkansas Department of Pollution Control & Ecology’ renamed to ‘Arkansas Department of Environmental Quality’.

“(a) Effective March 31, 1999, the ‘Arkansas Department of Pollution Control & Ecology’ or ‘Department,’ as it is referred to or empowered throughout the Arkansas Code Annotated, is hereby renamed. In its place, the ‘Arkansas Department of Environmental Quality’ is hereby established, succeeding to the general powers and responsibilities previously assigned to the Arkansas Department of Pollution Control & Ecology. The Director of the Arkansas Department of Pollution Control & Ecology is directed to identify and revise all inter-agency agreements, financial instruments, funds, and other necessary legal documents in order to effect this change by March 31, 1999.

“(b) Nothing in this Act shall be construed as impairing the powers and authorities of the Arkansas Department of Pollution Control and Ecology prior to the effective date of the name change.”

Amendments. The 2019 amendment, in (a), substituted “Division of Environmental Quality” for “Arkansas Department of Environmental Quality”, and substituted “division” for “department” twice.

14-72-102. Transfer of unexpended balance of bond redemption fund to county hospital building fund.

In all cases where bonds have been issued in any county for the construction, reconstruction, or extension of any county hospital as authorized by Arkansas Constitution, Amendment 25 [repealed], and all bonds issued for those purposes by any county have been wholly retired, the county courts of those counties may by appropriate order transfer any balances remaining unexpended to the credit of the bond redemption funds in those counties to the county hospital building funds. The moneys may then be used for all purposes for which the county hospital building fund could be used.

History. Acts 1969, No. 325, § 1; A.S.A. 1947, § 13-1237.

A.C.R.C. Notes. It is questionable whether Ark. Const. Amend. 25 is repealed in whole or whether only those provisions that conflict with Ark. Const. Amend. 62 are repealed by Ark. Const. Amend. 62.

14-72-103. [Repealed.]

Publisher's Notes. This section, concerning refunding bonds for industrial development issued under Ark. Const. Amend. 49, was repealed by Acts 1995, No. 555, § 1. The section was derived from Acts 1965, No. 487, § 1; A.S.A. 1947, § 13-1236.

Subchapter 2 — Refunding Bonds of Counties Generally

Effective Dates. Acts 1935, No. 102, § 3: retroactive to Oct. 1, 1934.

Acts 1937, No. 371, § 5: approved Mar. 30, 1937. Emergency clause provided: “It is ascertained and hereby declared that by reason of substantial decrease in assessed valuation of taxable property, many counties of the state are unable to pay their maturing bonds and interest, when due; that there is grave danger that suits will be brought in the Federal Courts to increase the assessed valuation of the taxable property in such counties thereby causing much additional expense, adding to the burden of the taxpayers in such counties and impeding the orderly administration of county governments so that this act is necessary for the preservation of the public peace, health and safety. Therefore an emergency is declared to exist and this act shall be in full force and effect from and after its passage.”

Case Notes

Cited: Arkansas Rural Medical Practice Student Loan & Scholarship Bd. v. Luter, 292 Ark. 259, 729 S.W.2d 402 (1987).

14-72-201. Authority to refund — Procedure.

  1. Any county of this state shall have the power and is authorized to refund its outstanding bonded indebtedness on terms the county court shall deem for the best interest of the county and to that end may issue negotiable bonds with interest coupons attached. Such refunding bonds either shall mature serially, the first principal payment to be not more than five (5) years after date, over a period of not more than forty (40) years from date thereof or shall mature on or before some fixed date not more than forty (40) years from date thereof, in which event the bonds shall provide for tender or call, or both, to be paid out of any surplus in the bond fund account.
  2. The county judge of the county may exchange refunding bonds for outstanding bonds of the county.
  3. The refunding bonds shall not be issued in a greater amount than the face value of the outstanding bonds then being refunded, and in no event shall the refunding bond bear a greater rate of interest than that borne by the bond for which it is exchanged.
  4. The new bonds shall bear the original signature of the county judge, under the seal of the county.
  5. This subchapter is intended to authorize only the refunding of valid, outstanding county funding, courthouse, or jail bonds.

History. Acts 1935, No. 102, § 1; 1937, No. 371, § 1; Pope's Dig., § 11315; A.S.A. 1947, § 13-1220.

Case Notes

Applicability.

Whenever taxes collected from the millage tax fixed by the quorum court are inadequate to meet the county's bonded maturing obligations, the refunding scheme provided by this section is available. Ruddell v. Jones, 191 Ark. 1063, 89 S.W.2d 600 (1936).

Notice.

Notice of an order of the county court refunding the county's bonds is not required by this section. Talkington v. Turnbow, 190 Ark. 1138, 83 S.W.2d 71 (1935).

Cited: Turnbow v. Talkington, 191 Ark. 492, 86 S.W.2d 940 (1935).

14-72-202. Form of bonds — Rights and remedies.

The refunding bonds:

  1. Shall be negotiable instruments;
  2. May have coupons evidencing interest, payable annually or semiannually; and
  3. Shall have all the rights of security and remedies for collection that are provided for the original bonds issued by the county.

History. Acts 1935, No. 102, § 2; Pope's Dig., § 11319; A.S.A. 1947, § 13-1221.

14-72-203. Certificates of indebtedness for interest due on refunded bonds and expense of issuing refunding bonds.

  1. In order to facilitate the refunding of its bonds, any county issuing refunding bonds may issue certificates of indebtedness bearing interest not to exceed five percent (5%) per annum, payable to bearer and negotiable, to cover matured interest due on outstanding bonds at the time they are exchanged for refunding bonds and may issue certificates of indebtedness, not bearing interest, payable to bearer, and negotiable, to cover the expenses of issuing refunding bonds.
  2. Both classes of certificates shall be paid out of the bond fund account of the county from any surplus that remains in the bond fund account in any year after the payment of the full amount of bonds and interest due that year on the refunding issue.
  3. Both classes of certificates of indebtedness issued in connection with an issue of refunding bonds shall be registered by the county treasurer, except that the certificates for expenses shall bear the early registration numbers to be followed by the certificates for interest. The certificates for interest shall be paid in numerical order of registration out of the money available for their payment.

History. Acts 1937, No. 371, § 2; Pope's Dig., § 11316; A.S.A. 1947, § 13-1223.

14-72-204. Tax for original bonds continued for refunding bonds.

The tax for the payment of the outstanding bonds levied by the quorum court of the county issuing the refunding bonds shall continue for the payment of the refunding bonds and certificates of indebtedness. If the tax proves insufficient to meet the maturities of the refunding bonds with interest, it shall be the duty of the quorum court of the county to increase the levy of taxes, but not beyond three (3) mills upon the dollar of the assessed valuation existing at the time of the levy.

History. Acts 1937, No. 371, § 3; Pope's Dig., § 11317; A.S.A. 1947, § 13-1224.

14-72-205. Refunding bonds under Arkansas Constitution, Amendment 17.

  1. Any county that has issued funding bonds, under Arkansas Constitution, Amendment 10, to take up its outstanding indebtedness which included any balance then due on the cost of construction of a courthouse or jail, or both, shall have the right to issue bonds under the provisions of Arkansas Constitution, Amendment 17 [repealed], and laws in aid thereof, to refund the same proportionate part of its outstanding funding bonds that the included balance of the cost of construction of a courthouse or jail, or both, was of the total indebtedness funded under Arkansas Constitution, Amendment 10.
  2. Before proceeding under this section to refund courthouse or jail indebtedness, the county court shall enter upon its records an order declaring what part of the funding bonds issued by the county under Arkansas Constitution, Amendment 10, represented indebtedness for the construction of a courthouse or a jail, or both, and what part represented general county indebtedness.
  3. This order shall be published one (1) time in some newspaper published in the county. If no suit is brought within thirty (30) days after the publication to review the correctness of the finding made in the order, the finding shall be conclusive of the proportionate part of the funding bond issue represented by indebtedness for the construction of a courthouse or a jail, or both, and shall not be open to further attack.
  4. In the event a county shall refund part of its outstanding funding bonds under the provisions of Arkansas Constitution, Amendment 17 [repealed], and the laws in aid thereof, the county court shall then have authority to refund the balance of the county's outstanding funding bonds under the provisions of this subchapter.

History. Acts 1937, No. 371, § 4; Pope's Dig., § 11318; A.S.A. 1947, § 13-1225.

A.C.R.C. Notes. It is questionable as to whether Ark. Const. Amend. 17 is repealed in whole or if only those provisions that conflict with Ark. Const. Amend. 62 are repealed by Ark. Const. Amend. 62.

Subchapter 3 — County Bonds for Courthouses and Jails

Effective Dates. Acts 1929, No. 294, § 8: Mar. 29, 1929. Emergency clause provided: “It is ascertained and hereby declared that by reason of the want of proper jails in which to confine criminals and proper court houses in which to try them, the public peace and safety are endangered; that many counties will immediately proceed to avail themselves of the benefit of Amendment No. 17 to our Constitution and issue bonds to build court houses and jails, and that it is necessary immediately to provide proper safeguards for the sale of such bonds; that many counties have built court houses and jails and have issued therefor warrants now outstanding payable through a long period of years, and the funds necessary to pay such warrants will so deplete the revenues of the counties that they will not have funds enough to preserve the public peace, health and safety; and for these reasons it is hereby ascertained and declared that an emergency exists requiring that this act go into immediate effect. It is therefore provided that this act shall go into effect and be in force immediately after its passage.” But see, Hargrove v. Arnold, 181 Ark. 537, 26 S.W.2d 581 (1930).

Acts 2009, No. 1480, § 117: Apr. 10, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act makes various revisions to Arkansas election laws that are designed to improve the administration of elections and special elections and that these revisions should be implemented as soon as possible so that the citizens of this state may benefit from improved election procedures. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

14-72-301. Authority to issue.

Any county which has built, constructed, or extended a county courthouse or jail, or both, which has not been completely paid for and for which county warrants are now outstanding, may issue bonds through its county court to raise money to pay the indebtedness when authorized by a vote of the majority of the qualified electors of the county, voting on the question in the manner hereinafter provided.

History. Acts 1929, No. 294, § 1; Pope's Dig., § 2467; A.S.A. 1947, § 13-1213.

Case Notes

Elections.

County court could not issue bonds to take up outstanding warrants issued for building a courthouse without submitting the matter to qualified electors of county under former Ark. Const. Amend. 17. Irwin v. Alexander, 184 Ark. 572, 43 S.W.2d 85 (1931) (decision prior to Ark. Const. Amend. 62).

14-72-302. Interest, maturity, and sale.

  1. Bonds bearing interest at a rate not exceeding five percent (5%) per annum and maturing in not more than thirty-five (35) years may be issued by the county court in the name of the county when authorized by a vote of the qualified electors, and they may be exchanged for the warrants when the warrants are discounted at the rate of five percent (5%) per annum, from the date of the bonds to the date of the maturity of the warrants, or they may be issued only as the warrants mature.
  2. In the latter event, the bonds shall be dated in installments as the outstanding warrants mature and bear interest only from that date.
  3. The bonds may be sold at public auction or upon sealed bids after notice by publication once a week for at least three (3) insertions in some newspaper published and having a bona fide circulation in the county. The last insertion is to be not less than seven (7) days before the date of sale, or they may be exchanged at par for warrants maturing on their date.
  4. The county court may, in its discretion, advertise the sale in other newspapers or in financial journals.
  5. The validity of the bonds shall not be affected by the fact that any of the officers executing them may have died or gone out of office before their sale or delivery.
  6. The bonds shall be made serially through a term of years.
  7. They shall be executed by the county judge and attested by the county clerk and shall bear the seal of the county court.
  8. They may all be sold at once, or they may be sold in installments, from time to time, as the outstanding warrants mature.
  9. Bonds shall not be sold on a basis of less than par for five percent (5%) bonds.

History. Acts 1929, No. 294, § 2; Pope's Dig., § 2468; A.S.A. 1947, § 13-1214.

14-72-303. Submission of question to electors — Special election.

  1. If the county court decides that it would be advantageous to issue bonds under the authority of Arkansas Constitution, Amendment 17 [repealed], this section, and §§ 14-72-301, 14-72-302, and 14-72-304 — 14-72-307, it shall order the submission of the question to the qualified electors of the county at a special election to be held in accordance with § 7-11-201 et seq.
  2. In all other respects, the special election shall be held as provided by law for the conducting of general elections. It is made the duty of the sheriff of the county, by proclamation duly made and published for the time and in the manner provided by law, to give notice of the time and place of holding the election.

History. Acts 1929, No. 294, § 3; Pope's Dig., § 2469; A.S.A. 1947, § 13-1215; Acts 2005, No. 2145, § 41; 2007, No. 1049, § 62; 2009, No. 1480, § 80.

A.C.R.C. Notes. It is questionable whether Ark. Const. Amend. 17 is repealed in whole or whether only those provisions that conflict with Ark. Const. Amend. 62 are repealed by Ark. Const. Amend. 62.

Amendments. The 2005 amendment redesignated former (b) as present (b)(1); added (b)(2); and inserted “as” in the first sentence in (c).

The 2009 amendment substituted “§ 7-11-201 et seq.” for “§ 7-5-103(b)” in (a).

14-72-304. Form of ballot — Returns — Appeal.

  1. In the order calling the election, the county court shall prescribe the form of the ballot, which shall show the amount of the proposed bond issue, its purpose, and the amount of tax necessary to be levied in order to pay the bonds with interest, which amount shall not exceed five (5) mills on the dollar.
  2. The election officers shall make their returns of the result of the election to the county court which shall then enter of record an order showing the number of votes cast in favor of the bond issue and the number cast against it, and the clerk of the court shall publish the order for one (1) insertion in some newspaper having a general circulation in the county.
  3. Any elector and any property owner of the county may appeal from the finding of the county court as to the result of the election within thirty (30) days thereafter. If no appeal is taken within that time, the finding shall be conclusive.

History. Acts 1929, No. 294, § 4; Pope's Dig., § 2470; A.S.A. 1947, § 13-1216.

Case Notes

Applicability.

The provisions of this section requiring that the amount of the proposed bond issue (for refunding) and the amount of the tax to be levied therefor be shown on the ballot were held not to apply to an election called under former Ark. Const. Amend. 17, to determine whether the proposed court house, jail, or hospital shall be built. Rogers v. Parker, 211 Ark. 957, 203 S.W.2d 401 (1947) (decision prior to Ark. Const. Amend. 62).

Finding of Court.

The finding of the county court under this section from which an appeal must be taken within 30 days does not amount to a judgment rendered in an election contest. Jones v. Dixon, 227 Ark. 955, 302 S.W.2d 529 (1957).

Where neither appellant nor appellee questions the correctness of the court's tabulation of election returns, but rather the law as applied to the tabulation, the 30-day limit for appeal provided in this section does not apply. Vance v. Johnson, 238 Ark. 1009, 386 S.W.2d 240 (1965).

Cited: Hughes v. Jackson, 213 Ark. 243, 210 S.W.2d 312 (1948).

14-72-305. Levy of special funding bond tax.

  1. If a majority voting in the election vote in favor of the issue of the bonds and the levy of the tax, then the quorum or levying court, at any regular, special, or adjourned term thereafter held, shall levy, in addition to all other taxes authorized by law to be levied against all taxable property in the county, a special funding bond tax of not exceeding five (5) mills on the dollar, of the assessed valuation of the property, for the payment of the bonds. This levy, when once made, shall continue and be in force from year to year and extended on the tax books and collected until sufficient funds are collected to pay off and discharge the bonds and interest thereon.
  2. The county court may call a special meeting of the quorum or levying court for the purpose of levying the tax.
  3. If the tax first levied proves insufficient to pay the bonds with interest, it shall be the duty of the quorum or levying court to make the additional levies at a rate not exceeding five (5) mills on the dollar till the bonds with interest are paid.
  4. The proceeds of the tax shall be used only for the payment of the bonds with the interest, and the tax shall be and is pledged as security for the payment of bonds and shall never be diverted to or expended for any other purpose, nor collected for any greater amount or length of time than is necessary to pay and retire the principal and interest of the bonds.

History. Acts 1929, No. 294, § 5; Pope's Dig., § 2471; A.S.A. 1947, § 13-1217.

Cross References. Use of bond redemption fund after payment of bonds, § 14-21-107.

14-72-306. Publication — Sale of bonds.

  1. Bonds that may be issued to pay for courthouses or jails, or both, which may be built or extended, shall be sold only at public auction or on sealed bids after notice given by order of the county court and published once a week for at least three (3) insertions in some newspaper published and having a bona fide circulation in the county, the last insertion to be not less than seven (7) days before the date of sale.
  2. The notice shall state the amount and maturities of the bonds and the purposes for which they are issued.
  3. The county court may reject any and all bids for any bonds within the scope of this subchapter, and may order a new publication and a new sale, to be conducted in like manner; but the sale must always be to the highest bidder.
  4. Bonds may be sold on condition that they are to be delivered and paid for in installments as the work progresses, but that condition must appear in the notice, which may provide for bids in the alternative for cash or for payment and delivery in installments.
  5. The county court may, if it deems it advisable, advertise the sale in financial journals or in other newspapers published within or without the state.

History. Acts 1929, No. 294, § 6; Pope's Dig., § 2472; A.S.A. 1947, § 13-1218.

Case Notes

Manner of Sale.

The bonds issued to pay for public buildings shall be sold only at public auction or on sealed bids after notice is given by the court as provided by law. Campster v. Sanderlin, 212 Ark. 665, 208 S.W.2d 16 (1948).

14-72-307. Quorum court to levy tax.

Whenever, at an election called for the purpose of authorizing the construction, reconstruction, or extension of any county courthouse or county jail, a majority voting in the election vote for such building or buildings, as the case may be, and for the necessary tax, the county court may, by order entered of record, call a special meeting of the quorum or levying court for the purpose of levying the tax authorized at the election; and it shall be the duty of the levying court to meet at the time specified in the order of the county court and to levy the tax authorized by the vote of the electors as aforesaid.

History. Acts 1929, No. 294, § 7; Pope's Dig., § 2473; A.S.A. 1947, § 13-1219.

Subchapter 4 — Purchase of County Bonds by County Treasurer

14-72-401 — 14-72-405. [Repealed.]

Publisher's Notes. This subchapter, concerning the purchase of county bonds by the county treasurer, was repealed by Acts 1995, No. 232, § 11. The subchapter was derived from the following sources:

14-72-401. Acts 1875 (Adj. Sess.), No. 55, § 1, p. 96; C. & M. Dig., § 2012; Pope's Dig., § 2561; A.S.A. 1947, § 13-1226.

14-72-402. Acts 1875 (Adj. Sess.), No. 55, § 2, p. 96; C. & M. Dig., § 2013; Pope's Dig., § 2562; A.S.A. 1947, § 13-1227.

14-72-403. Acts 1875 (Adj. Sess.), No. 55, § 3, p. 96; C. & M. Dig., § 2014; Pope's Dig., § 2563; A.S.A. 1947, § 13-1228.

14-72-404. Acts 1875 (Adj. Sess.), No. 55, § 4, p. 96; C. & M. Dig., § 2015; Pope's Dig., § 2564; A.S.A. 1947, § 13-1229.

14-72-405. Acts 1875 (Adj. Sess.), No. 55, § 5, p. 96; C. & M. Dig., § 2016; Pope's Dig., § 2565; A.S.A. 1947, § 13-1230.

Subchapter 5 — Refunding Municipal Bonds Issued Under Arkansas Constitution, Amendment 13

Effective Dates. Acts 1945, No. 103, § 6: approved Feb. 27, 1945. Emergency clause provided: “It has been found and it is hereby determined by the General Assembly that many cities in the state are paying interest rates on their outstanding bonds issued under Amendment No. 13 to the Constitution higher than those at which they might be refunded; that unprecedentedly low interest rates now prevail which have created a market advantageous to the issuance of refunding bonds; that the duration of said low interest rates is uncertain for the reason that Congress may shortly enact a statute taxing the interest upon future issues of such bonds which would render the refunding of the outstanding bonds impracticable, if not impossible; that such cities should take advantage of the present favorable market and their failure to do so would result in great financial detriment to tax-payers; that under said Act No. 13 of 1939, refunding bonds cannot be issued so long as the taxes collected from the millage tax levied for the payment of the bonds to be refunded shall be sufficient to pay such bonds as they mature; that in many cases the taxes collected from said millage tax are sufficient to pay such bonds as they mature, which fact prevents the issuance of refunding bonds under said Amendment No. 13; that for said reasons it is hereby declared necessary for the preservation of the public peace, health, and safety that this act shall become effective without delay. An emergency therefore exists and this act shall take effect and be in force from and after its passage.”

14-72-501. Application of subchapter — Successive refunding.

  1. The power and authority granted by this subchapter may be exercised successively.
  2. Any bonds which have once been refunded under this subchapter may thereafter, from time to time, be refunded.

History. Acts 1945, No. 103, § 3; A.S.A. 1947, § 13-1233.

14-72-502. Authority to refund — Issuance.

Any city of the first or second class of this state shall have the power and is authorized to refund, in whole or in part, from time to time, its valid outstanding bonds issued under Arkansas Constitution, Amendment 13 [repealed]. To that end, the city may issue negotiable refunding bonds upon the terms and conditions hereinafter set out.

History. Acts 1945, No. 103, § 1; A.S.A. 1947, § 13-1231.

A.C.R.C. Notes. It is questionable whether Ark. Const. Amend. 13 is repealed in whole or whether only those provisions that conflict with Ark. Const. Amend. 62 are repealed by Ark. Const. Amend. 62.

14-72-503. Methods of issuance.

    1. No refunding bonds shall be issued until the debt refunded is cancelled simultaneously with the delivery of the refunding bonds:
      1. By the surrender and cancellation of the bonds to be refunded;
      2. If the outstanding bonds are redeemable before maturity and have been duly called for payment, by the deposit of the money for their payment upon presentation according to the terms of the call in trust with an escrow agent duly designated by the city council, which escrow agent shall be a bank or trust company whose trust funds are secured in the manner provided by the national or state banking laws, rules, and regulations thereunder; or
      3. By a combination of methods (A) and (B).
    2. The refunding bonds shall not be in a greater principal amount than the principal amount of the bonds to be refunded and shall not bear a greater rate of interest than that borne by the bonds to be refunded, except that the owners of the outstanding bonds taking refunding bonds in exchange or the purchasers, as the case may be, may have the privilege of conversion to bonds bearing a lower rate of interest, provided that by the conversion the city will receive no less and pay no more in principal and interest combined substantially than it would receive and pay if the bonds were not converted.
    1. The refunding bonds may be exchanged for outstanding bonds or they may be sold for cash and the proceeds used to pay the outstanding bonds, or part may be exchanged and part may be sold.
    2. No refunding bonds shall be sold except at public sale after twenty (20) days' advertisement in some newspaper of bona fide circulation in the city issuing them.
    3. The refunding bonds that are sold shall be duly executed and deposited with the designated escrow agent which shall have authority to deliver them to the purchaser upon payment to it of the purchase price on or before the redemption date of the bonds that have been called, provided that the city has deposited with the escrow agent a sum sufficient to pay the interest on the bonds called to the redemption date.
    4. The proceeds of the sale of the refunding bonds and the interest to be paid by the city shall be held by the escrow agent and applied solely to the payment of the principal of the bonds refunded at their call date and the accrued interest thereon to that date when they are presented for payment.
  1. When any refunding bonds are to be exchanged for outstanding bonds, they may be executed and delivered to the escrow agent which shall have authority, from time to time, as outstanding bonds are presented to it for exchange, to deliver refunding bonds in principal amount of the same proportion of the total principal amount of the refunding bonds that the principal amount of the outstanding bonds to be exchanged bears to the total principal amount of the outstanding bonds to be refunded.

History. Acts 1945, No. 103, § 2; A.S.A. 1947, § 13-1232; Acts 2019, No. 315, § 997.

Amendments. The 2019 amendment inserted “rules” in (a)(1)(B).

14-72-504. Form of bonds.

  1. All such refunding bonds shall be negotiable instruments and may have coupons evidencing interest, payable annually or semi-annually, and shall have all the rights of security and remedies for collection that are provided for the bonds that are refunded.
  2. They shall bear the original signature of the mayor of the city and be sealed with the seal of the city. The interest coupons may be signed with the facsimile signature of the mayor.
  3. In case the mayor whose signature appears on the bonds or interest coupons shall cease to be the mayor before delivery of the refunding bonds, the signature shall nevertheless be valid and sufficient for all purposes, the same as if he had remained in office until delivery.

History. Acts 1945, No. 103, § 3; A.S.A. 1947, § 13-1233.

14-72-505. [Transferred and repealed.]

A.C.R.C. Notes. The provisions of former § 14-72-505 were renumbered as § 14-58-102 and later repealed, by Acts 1997, No. 214, § 1.

Subchapter 6 — Local Government Revenue Bond Elections

Cross References. Local capital improvement bonds, Ark. Const., Amend. No. 62.

Effective Dates. Acts 1986 (2nd Ex. Sess.), No. 2, § 13: May 8, 1986. Emergency clause provided: “It is hereby found and declared that the decision of the Arkansas Supreme Court in the case of City of Hot Springs v. Creviston (decided March 3, 1986, supplemental opinion on rehearing, April 15, 1986) requires that an election be held by a county or municipality for the lawful issuance of revenue bonds, that there now exist no specific provisions for municipalities and counties to conduct elections for the issuance of revenue bonds, and that there is an immediate and pressing need for the municipalities and counties of the State to issue revenue bonds for the construction of needed waterworks, sewer systems, airports, facilities to secure and develop industry or agriculture, and other public purposes. Therefore, an emergency is hereby declared to exist and this Act, being immediately necessary for the protection of the public peace, health, and safety, shall take effect, and be in full force, immediately upon its passage and approval.”

Acts 2009, No. 1480, § 117: Apr. 10, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act makes various revisions to Arkansas election laws that are designed to improve the administration of elections and special elections and that these revisions should be implemented as soon as possible so that the citizens of this state may benefit from improved election procedures. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

14-72-601. Title.

This subchapter shall be referred to and may be cited as the “Local Government Revenue Bond Election Act of 1986.”

History. Acts 1986 (2nd Ex. Sess.), No. 2, § 1; A.S.A. 1947, § 13-1287.

14-72-602. Legislative intent.

The Arkansas Supreme Court has determined in the case of City of Hot Springs v. Creviston, that the Constitution of the State of Arkansas requires that the issuance of revenue bonds by counties and municipalities, including their boards and agencies, must be approved by the electors of the county or municipality at an election called for that purpose. In its decision, the Arkansas Supreme Court stated that these elections might be conducted under the general election laws of the state until the General Assembly provided otherwise. This subchapter is adopted in order that the procedures for these elections be more clearly established. This subchapter is not intended otherwise to limit in any manner the exercise of the powers of counties or municipalities with respect to elections under Arkansas Constitution, Amendment 62, for bonds to be paid from taxes or other permitted sources and is not intended to alter or amend the procedures established by § 14-164-301 et seq.

(b) It is the specific intent of this subchapter that the provisions of this subchapter are in implementation of or supplemental to other constitutional or statutory provisions now existing or hereafter adopted which may provide for the issuance of revenue bonds. Nothing contained in this subchapter shall be deemed to be a restriction or a limitation upon the issuance of revenue bonds, except as specifically provided in this subchapter with respect to the necessity of approval at an election.

History. Acts 1986 (2nd Ex. Sess.), No. 2, §§ 2, 10; A.S.A. 1947, §§ 13-1288, 13-1295.

Publisher's Notes. City of Hot Springs v. Creviston is reported at 288 Ark. 286, 705 S.W.2d 415 (1986).

This section has no subsection (a) designation.

14-72-603. Definitions.

As used in this subchapter, unless the context otherwise requires:

  1. “Bonds” means any evidence of indebtedness of a county or municipality issued pursuant to laws in effect authorizing the issuance of bonds, notes, certificates, or other instruments or evidences of indebtedness;
  2. “Clerk” means the clerk or recorder of a municipality or county clerk of a county;
  3. “County” or “municipality” also mean any agency, board, commission, or instrumentality of a county or municipality;
  4. “Legislative body” means the quorum court of a county or the council, board of directors, or other elected governing body of a municipality;
  5. “Municipality” means any city or incorporated town;
  6. “Ordinance” means an ordinance, resolution, or other appropriate legislative enactment of a legislative body;
  7. “Revenue bonds” means all bonds the repayment of which are secured by the pledge of rents, user fees, charges, or other revenues, other than assessments for local improvements and taxes, derived from the project or improvements financed in whole or in part by such revenue bonds, from the operations of any governmental unit, or from any other special fund or source.

History. Acts 1986 (2nd Ex. Sess.), No. 2, § 3; A.S.A. 1947, § 13-1289.

14-72-604. Construction.

This subchapter shall be construed liberally to effectuate the legislative intent and the purposes of this subchapter as complete and independent authority for the performance of each and every action and thing authorized in this subchapter, and all powers granted in this subchapter shall be broadly interpreted to effectuate this intent and these purposes and not as a limitation of powers.

History. Acts 1986 (2nd Ex. Sess.), No. 2, § 11; A.S.A. 1947, § 13-1296.

14-72-605. Certain districts excluded.

The provisions of this subchapter shall not apply to bonds, notes, certificates, or other evidence of indebtedness issued by a regional water distribution district organized under § 14-116-101 et seq., or to any drainage district, levee district, or other improvement or special assessment district organized with the consent of the owners of land affected thereby under the laws of the state heretofore or hereafter adopted, notwithstanding that the district may pledge revenues from its operations or other sources in addition to, or in lieu of, a pledge of assessed benefits or interest thereon to secure payment of the indebtedness.

History. Acts 1986 (2nd Ex. Sess.), No. 2, § 8; A.S.A. 1947, § 13-1294.

14-72-606. Election procedures — Contest.

    1. Whenever a county or municipality shall determine the need to issue revenue bonds, the issuance of which under the Arkansas Constitution requires approval at an election, the legislative body thereof shall, by ordinance, submit the question of the issuance of the revenue bonds to the qualified electors of the county or municipality.
    2. The question of the issuance of revenue bonds may be submitted at a special election called for that purpose in accordance with § 7-11-201 et seq., as provided in the ordinance, and held in the manner provided in this subchapter.
    3. When revenue bonds are to be issued for more than one (1) purpose, the principal amount of revenue bonds applicable to each purpose shall be stated on the ballot as a separate question, and no revenue bonds shall be issued for such a purpose unless a majority of the electors voting on the question shall have approved the issuance of revenue bonds for that purpose.
    4. Except as otherwise provided in this subchapter, the election shall be held and conducted in the same manner as a special or general election under the election laws of the state.
    1. The ordinance shall set forth the form of ballot questions, which shall include a statement of the purposes for which the revenue bonds are to be issued and the proposed sources of repayment of the revenue bonds.
    2. Notice of the election shall be given by the clerk of the county or municipality by one (1) publication in a newspaper having general circulation within the county or municipality not less than ten (10) days prior to the election.
    1. The county judge or mayor of the county or municipality shall proclaim the results of the election by issuing a proclamation and publishing the proclamation one (1) time in a newspaper having general circulation within the county or municipality.
      1. The results of the election as stated in the proclamation shall be conclusive unless suit is filed in the circuit court in the county in which the municipality is located within thirty (30) days after the date of the publication.
      2. No other action shall be maintained to challenge the validity of the revenue bonds and of the proceedings authorizing the issuance of the bonds unless suit is filed in the circuit court within thirty (30) days after the date of the adoption of an ordinance authorizing the sale of the revenue bonds.

History. Acts 1986 (2nd Ex. Sess.), No. 2, § 4; A.S.A. 1947, § 13-1290; Acts 2005, No. 2145, § 42; 2007, No. 1049, § 63; 2009, No. 1480, § 81.

Amendments. The 2005 amendment redesignated former (b)(3) as present (b)(3)(A); and added (b)(3)(B).

The 2009 amendment substituted “§ 7-11-201 et seq.” for “§ 7-5-103(b)” in (a)(2).

14-72-607. Venue.

For the purposes of this subchapter, when it is necessary to determine whether publication or other activity has taken place within a municipality lying in more than one (1) county, or where suit shall be filed contesting an election in the municipality, then the publication, activity, or suit shall take place in the county in which a majority of the persons living in the municipality reside.

History. Acts 1986 (2nd Ex. Sess.), No. 2, § 6; A.S.A. 1947, § 13-1292.

14-72-608. Elections held prior to effective date.

Any election called for the purpose of authorizing revenue bonds and any ordinances or resolutions of a legislative body, or orders of a county court adopted in connection therewith prior to May 8, 1986, shall be deemed ratified and in full compliance with this subchapter if the ordinance, order, or resolution calling the election or notice of election was published at least one (1) time in a newspaper of general circulation in the municipality or county and all other procedures followed complied substantially with the provisions of this subchapter.

History. Acts 1986 (2nd Ex. Sess.), No. 2, § 7; A.S.A. 1947, § 13-1293.

14-72-609. Refunding bonds.

  1. Revenue bonds issued for the purpose of refunding revenue bonds issued prior to March 3, 1986, may be issued without the necessity of an election under this subchapter if the source of repayment is substantially the same as that provided at the original issuance of the revenue bonds to be refunded.
  2. Revenue bonds to refund revenue bonds authorized at an election pursuant to this subchapter may be refunded without the necessity of an election. However, if the refunding revenue bonds shall be in a greater principal amount than the revenue bonds being refunded or shall be payable from a different source of revenues, the question of issuing the refunding revenue bonds shall be submitted at an election called in the manner provided in this subchapter.
  3. These refunding revenue bonds may be either sold for cash or delivered in exchange for the outstanding obligations. If sold for cash, the proceeds may either be applied to the payment of the revenue bonds being refunded or deposited in an irrevocable trust for the retirement of the revenue bonds at maturity or on an authorized redemption date.

History. Acts 1986 (2nd Ex. Sess.), No. 2, § 5; A.S.A. 1947, § 13-1291.

Subchapter 7 — Refund of Amendment 13 Municipal Bond Proceeds

Effective Dates. Acts 1989, No. 490, § 6: Mar. 10, 1989. Emergency clause provided: “It is hereby found and determined by the General Assembly that it is necessary and desirable to provide for the disposition of interest and principal of certain Amendment 13 bonds, the proceeds of which were never expended; that such provisions are immediately necessary to resolve present uncertainty in the law in order that needless litigation may be avoided or concluded; and that such provisions are immediately necessary in order for certain of our cities to plan budgets and expenditures and thereby serve the interest of their citizens. Therefore, an emergency is hereby declared to exist and this act, being immediately necessary for the preservation of the public peace, health and safety, shall be in full force from and after its passage and approval.”

14-72-701. Disposition of principal and interest.

In instances where bonds were issued by a municipality under Arkansas Constitution, Amendment 13 [repealed], and the project for which the bonds were issued has not been commenced within ten (10) years after the bonds were issued, all interest accrued and accruing on the bond principal may be transferred into the general fund of the city upon a two-thirds (2/3) vote of its governing body. The principal balance shall be refundable to the taxpayers under the procedure prescribed by this subchapter.

History. Acts 1989, No. 490, § 1.

A.C.R.C. Notes. It is questionable whether Ark. Const. Amend. 13 is repealed in whole or whether only those provisions that conflict with Ark. Const. Amend. 62 are repealed by Ark. Const. Amend. 62.

Case Notes

Cited: Hartwick v. Thorne, 300 Ark. 502, 780 S.W.2d 531 (1989).

14-72-702. Filing of claims.

  1. The taxpayer must file a claim with the city clerk stating:
    1. The name and mailing address of the taxpayer;
    2. The time when and the period for which the tax was paid;
    3. The amount of the tax which the taxpayer claims was levied for retirement of the bond issue;
    4. Any other necessary information required by the city clerk.
  2. The city clerk shall be available for assistance in providing the above necessary information.

History. Acts 1989, No. 490, § 2.

14-72-703. Publication of notice.

  1. Before any money is transferred into the city general fund under this subchapter, the city shall publish a notice of the refund procedure at least once per week for at least four (4) consecutive weeks in a newspaper having general circulation within the city.
  2. All principal not claimed within six (6) months after the fourth publication of the notice shall be transferred into the general fund of the city.

History. Acts 1989, No. 490, § 3.

Chapter 73 Local Government Reserve Funds

Effective Dates. Acts 1983, No. 542, § 7: approved Mar. 19, 1983. Emergency clause provided: “It is hereby found and declared that various communities and local governments as described in this Act, are in need of improvements of the kind authorized by this Act to provide for the public health and safety and there is no authorization to provide a means for saving funds for these improvements in the future, leaving such local governments only with the alternatives of borrowing or paying for such improvements out of current revenues. Therefore, it is hereby declared that an emergency exists and that this Act is necessary for the immediate preservation of the public peace, health, and safety and that this Act shall take effect and be in force from and after its passage.”

14-73-101. Definitions.

As used in this chapter, unless the context otherwise requires:

  1. “Local government” means any:
    1. City of the first or second class;
    2. Incorporated town;
    3. County;
    4. School district;
    5. Improvement district; or
    6. Board, agency, or commission of the governments set out in subdivisions (1)(A)-(E) of this section including, but not limited to:
      1. Waterworks commission;
      2. Sewer committee;
      3. Airport commission;
      4. Parking authority;
      5. Public transit authority;
      6. Library commission;
      7. Advertising and promotion commission; or
      8. Port authority.
  2. “Improvement” means:
    1. Public works or projects authorized by law which are undertaken by a local government for public use or benefit including, but not limited to, streets and transportation facilities, waterworks facilities, sewer facilities, airports, parking facilities, drainage facilities, buildings, sidewalks, convention centers, schools, city halls, jails, fire stations, solid waste disposal facilities, courthouses, recreational facilities, stadiums, libraries, and hospitals; and
    2. Engineering and architectural fees and other development and acquisition costs of those public works or projects.
  3. “Governing body” means:
    1. The legislative body of any:
      1. City, town, or county;
      2. Improvement district; or
      3. School board; and
    2. The body or board authorized to operate a board, agency, or commission including, but not limited to, the board of commissioners of a waterworks commission, members of a sewer committee, the board of commissioners of an airport commission, members of a parking authority, the board of commissioners or directors of an improvement district, the board of directors of a public transit authority, members of an advertising and promotion commission, commissioners of a housing authority, board of trustees of a library, or members of a port authority.

History. Acts 1983, No. 542, § 1; A.S.A. 1947, § 13-2701.

14-73-102. Authority to establish reserve for improvements.

  1. Any local government desiring to own, acquire, construct, reconstruct, remodel, equip, extend, operate, maintain, or otherwise provide improvements may establish a reserve for those improvements so that the costs thereof may be accumulated out of revenues from year to year.
  2. The reserve shall be authorized by resolution of the governing body, provided that a reserve for a local government board, agency, or commission shall also be approved by resolution of the governing body creating the board, agency, or commission.

History. Acts 1983, No. 542, § 2; A.S.A. 1947, § 13-2702.

14-73-103. Trust agreement.

  1. The reserve fund shall be established by written agreement with a trustee independent from the local government. The trust agreement shall contain:
    1. A description of the improvements for which the reserve is established;
    2. A covenant that the reserve funds will not be used for any purpose other than the purposes described in the trust agreement;
    3. A covenant by the trustee that all sums in the reserve fund will be invested by the trustee in a manner consistent with the “prudent man” rule, as authorized and defined by §§ 28-71-105 and 28-71-106;
    4. A covenant by the trustee to disburse the reserve funds only to the contractor or to a trustee for bonds or notes issued to finance the improvements or to disburse the reserve funds in such manner that they will be applied to the acquisition, construction, reconstruction, remodeling, equipping, extending, operating, maintaining, or providing the improvements;
    5. A term for the agreement which shall not exceed twenty-one (21) years.
  2. A trust agreement in which a city, town, or county is a party shall specify that each payment to the reserve fund shall be a separate contract with the trustee and shall specifically limit the amount of payments to the reserve fund in any fiscal year to the amount of the appropriation to the reserve fund for that fiscal year.
  3. The trust agreement may contain provisions providing for the trustee's fee, if any, to be paid from the reserve funds held in trust.

History. Acts 1983, No. 542, § 3; A.S.A. 1947, § 13-2703.

14-73-104. Payment of funds into reserve.

After the execution of the trust agreement, the local government may, during the fiscal year in which the agreement is executed and in subsequent fiscal years, appropriate, pay, or disburse the funds into the reserve as the governing body may determine during those fiscal years.

History. Acts 1983, No. 542, § 4; A.S.A. 1947, § 13-2704.

Chapter 74 Taxing Agencies — Borrowing and Bankruptcy

Preambles. Acts 1939, No. 69 contained a preamble which read:

“Whereas, the Congress of the United States has passed laws providing that taxing agencies, including municipal corporations and improvement districts may borrow from Reconstruction Finance Corporation and other Federal agencies and may make compositions of their debts with creditors and refinance and refund their debts and obligations by voluntary proceedings in Federal Courts of Bankruptcy; and

“Whereas, it is expedient and advisable that the State cooperate by enabling all such districts to avail themselves of the benefits of said laws passed by Congress;

“Therefore … .”

Effective Dates. Acts 1939, No. 69, § 3: Feb. 10, 1939. Emergency clause provided: “It is hereby ascertained and declared to be a fact that owing to depression in the value of farm and timber products and of real estate, and to the general financial depression that has prevailed for a number of years, many of such taxing agencies have been enable to pay their bonds and other obligations as they mature and many of such districts have become insolvent; that the State is unable to grant relief to the taxpayers of such districts because States are forbidden by the Constitution of the United States to impair the obligation of contracts; that Congress under the provisions of the Constitution may impair such obligations and adjust and modify liens without violating any constitutional provision; and that Congress has provided such laws, but some question has been raised as to whether certain types of taxing agencies can avail themselves of the benefits of such bankruptcy statutes without the permission of the State, and that the result has been to leave many districts faced with indebtedness they cannot pay and the situation is causing hardship to taxpayers as well as to creditors. Now, Therefore, an emergency is found to exist and this act being necessary for the immediate preservation of the public peace, health and safety, it shall be in force and take effect from and after its passage and approval.”

Research References

ALR.

Validity of state or municipal tax or license fee upon occupation of practicing law. 50 A.L.R.4th 467.

14-74-101. Chapter cumulative.

The provisions of this chapter shall be cumulative to any similar provisions of law now in effect.

History. Acts 1939, No. 69, § 2; A.S.A. 1947, § 13-1302.

14-74-102. Enumeration of taxing agencies and instrumentalities.

The taxing agencies and instrumentalities to which this chapter is applicable shall be all those recited in those acts of the United States Congress and that may be recited in any amendment thereof, including the following:

All the taxing agencies or instrumentalities hereinafter named, payable:

  1. Out of assessments or taxes, or both, levied against and constituting liens upon property in any of the taxing agencies or instrumentalities;
  2. Out of property acquired by foreclosure of the assessments or taxes or both;
  3. Out of income derived by the taxing agencies or instrumentalities from the sale of water or power or both, or any combination thereof; or
  4. From any combination of:
    1. Drainage, drainage and levee, levee, reclamation, water, irrigation, or other similar districts, commonly designated as agricultural improvement districts or local improvement districts, organized or created for the purpose of constructing, improving, maintaining, and operating certain improvements or projects devoted chiefly to the improvement of lands therein for agricultural purposes;
    2. Local improvement districts such as sewer, paving, sanitary, or other similar districts, organized or created for the purposes designated by their respective names;
    3. Local improvement districts such as road, highway, or other similar districts, organized or created for the purpose of grading, paving, or otherwise improving public streets, roads, or highways;
    4. Public school districts or public school authorities organized or created for the purpose of constructing, maintaining, and operating public schools or public school facilities;
    5. Local improvement districts such as port, navigation, or other similar districts, organized or created for the purpose of constructing, improving, maintaining, and operating ports and port facilities; or
    6. A city, town, village, borough, township, or other municipality, a receiver of a city, town, village, borough, township, or municipality, or an improvement district of a public utility created under § 14-62-109(c)(5).

History. Acts 1939, No. 69, § 1; A.S.A. 1947, § 13-1301; Acts 2017, No. 712, § 1.

Amendments. The 2017 amendment, in (4)(F), substituted “A” for “Any”, and added “a receiver of a city, town, village, borough, township, or municipality, or an improvement district of a public utility created under § 14-62-109(c)(5)” at the end.

Case Notes

Bankruptcy.

Solid waste district that was established pursuant to § 8-6-701 et seq. was not eligible under 11 U.S.C.S. § 109 to declare bankruptcy because it was neither “local” nor an “improvement district” that was specifically authorized to file bankruptcy pursuant to this section; even assuming arguendo that the district was qualified under state law to seek relief under Chapter 9 of the Bankruptcy Code, its petition had to be dismissed pursuant to 11 U.S.C.S. § 921 because it did not act in good faith when it borrowed money to conduct operations but decided not to collect a service fee from residents and businesses within the district because board members believed that imposing the fee would have cost them votes. In re Ozark Mt. Solid Waste Dist., No. 3:14-bk-70015, 2014 Bankr. LEXIS 5226 (Bankr. W.D. Ark. Aug. 5, 2014).

14-74-103. Authority to use federal finance laws — Bankruptcy.

  1. Any and all the taxing agencies or instrumentalities named in § 14-74-102 shall have the right and power to:
    1. Avail themselves of any and all acts of the United States Congress providing for the lending of money to such districts and for the refinancing, refunding, adjustment, or composition of indebtedness of taxing agencies and any amendments or additional laws the United States Congress may adopt in that behalf; and
    2. Proceed in the district courts of the United States in bankruptcy or in any other federal courts given like jurisdiction by voluntary proceedings in accordance with those acts of the United States Congress and any amendments thereto.
  2. This chapter expresses the consent of the state for the institution of bankruptcy proceedings by all such taxing agencies acting through their governing boards, through a receiver under § 14-74-102(4)(F), or through an improvement district under § 14-74-102(4)(F).

History. Acts 1939, No. 69, § 1; A.S.A. 1947, § 13-1301; Acts 2017, No. 712, § 2.

Amendments. The 2017 amendment, in (b), deleted “any and” preceding “all”, and added “through a receiver under § 14-74-102(4)(F), or through an improvement district under § 14-74-102(4)(F)” at the end.

14-74-104. Authority to refinance, refund, etc.

Any and all of the taxing agencies and instrumentalities set out in § 14-74-102 acting through their governing boards shall have the right to cooperate with and to borrow from the Reconstruction Finance Corporation and with any and all other governmental agencies, and with creditors, banks, trust companies, and other private or public lending agencies in refinancing and refunding and effecting compositions or the debts of the taxing agencies and instrumentalities and to issue refunding bonds, certificates of indebtedness, notes, and other securities to refinance debts and to pledge the assessments, revenues, and income of the taxing agencies or instrumentalities for the repayment of the refunding bonds, notes, certificates, and securities and to take any and all steps reasonably necessary to complete the refinancing or refunding programs and debt compositions.

History. Acts 1939, No. 69, § 2; A.S.A. 1947, § 13-1302.

14-74-105. Participation by state departments.

Any department of this state authorized by any law of this state to purchase, own, or hold as security any bonds issued by any agencies or districts enumerated in the previous provisions of this chapter is authorized and empowered to give its consent to and participate in any plan, composition, or arrangement for the readjustment or refunding of the bonded indebtedness of any of the districts or agencies set out in § 14-74-102.

History. Acts 1939, No. 69, § 2; A.S.A. 1947, § 13-1302.

Chapter 75 Management Letter for Audit

14-75-101. Definition.

For the purpose of this chapter, a “political subdivision” shall not include levy districts, drainage districts, or any other improvement districts.

History. Acts 1973, No. 392, § 2; A.S.A. 1947, § 13-2002.

14-75-102. Letter required.

Any political subdivision of the State of Arkansas engaging the services of a certified public accountant for the purpose of statutorily required audits shall require the certified public accountant to issue, in addition to the audit report, what is commonly referred to in the accounting profession as a management letter.

History. Acts 1973, No. 392, § 1; A.S.A. 1947, § 13-2001.

14-75-103. Contents of letter.

The management letter shall include:

  1. Comments by the certified public accountant as to his observations on the system of internal control employed by the political subdivision;
  2. Exceptions to statutory provisions;
  3. Requirements which may have been noted by the certified public accountant; and
  4. Any recommendations or suggestions the certified public accountant may desire to make to the subdivision under audit.

History. Acts 1973, No. 392, § 1; A.S.A. 1947, § 13-2001.

14-75-104. Furnishing copy to Legislative Joint Auditing Committee.

  1. The political subdivision shall supply the Legislative Joint Auditing Committee with one (1) copy of the management letter in addition to the required copy of the audit report.
  2. The management letter shall be forwarded to the committee with the audit report.

History. Acts 1973, No. 392, § 3; A.S.A. 1947, § 13-2003.

Chapter 76 Local Government Lease Agreements and Purchase Contracts

14-76-101 — 14-76-108. [Repealed.]

Publisher's Notes. This chapter, concerning local government lease agreements and purchase contracts, was repealed by Acts 1995, No. 555, § 1. The chapter was derived from the following sources:

14-76-101. Acts 1991, No. 508, § 1.

14-76-102. Acts 1991, No. 508, § 2.

14-76-103. Acts 1991, No. 508, § 11.

14-76-104. Acts 1991, No. 508, § 3.

14-76-105. Acts 1991, No. 508, §§ 4-6.

14-76-106. Acts 1991, No. 508, § 6.

14-76-107. Acts 1991, No. 508, § 7.

14-76-108. Acts 1991, No. 508, § 8.

Chapter 77 Local Fiscal Management Responsibility Act

Effective Dates. Acts 2003, No. 1185, § 36: Jan. 1, 2005, by its own terms.

Acts 2005, No. 2201, § 12: Apr. 13, 2005. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the Legislative Joint Auditing Committee and the Division of Legislative Audit provide essential auditing and investigative services to the General Assembly and the State of Arkansas; that to avoid confusion, the General Assembly finds it is necessary to combine the Arkansas Code provisions concerning the Division of Legislative Audit and the local audit section of the division in one Arkansas Code chapter; that to avoid certain undue hardships on public entities of the state, it is also necessary for the General Assembly to provide a basis of financial statement presentation for certain public entities; that the American Institute of Certified Public Accountants' Statement on Auditing Standards Number 99 regarding the detection of fraud requires auditors to document unsubstantiated allegations of fraud in their working papers; and that this act is immediately necessary because the General Assembly finds that the public disclosure of such unsubstantiated allegations do not serve a public purpose and may cause irreparable harm to innocent individuals and public employees. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

14-77-101. Title.

This chapter may be known and cited as the “Local Fiscal Management Responsibility Act”.

History. Acts 1991, No. 724, § 1.

14-77-102. Definitions.

As used in this chapter:

  1. “Executive officer” means the following for the applicable political subdivisions:
    1. For school districts, an “executive officer” is the superintendent of the school or the executive director of the education service cooperative;
    2. For municipalities, an “executive officer” is the mayor, city manager, or city administrator; and
    3. For counties, an “executive officer” is the elected official exercising administrative control over a particular county employee;
  2. “Fiscal responsibility and management laws” means the following laws, as amended, and as applicable to the following subdivisions:
    1. Counties:
      1. County government, Arkansas Constitution, Amendment 55;
      2. County Records Retention, § 13-4-301 et seq.;
      3. Legislative Procedures (County), § 14-14-901 et seq.;
      4. Executive Powers (County), § 14-14-1101 et seq.;
      5. Personnel Procedures (County), § 14-14-1201 et seq.;
      6. Officers (County), § 14-15-101 et seq.;
      7. Sale of county property generally, § 14-16-105, and sale of surplus property, § 14-16-106;
      8. County Funds, § 14-21-101 et seq.;
      9. County Purchasing Procedures, § 14-22-101 et seq.;
      10. Claims Against Counties, § 14-23-101 et seq.;
      11. County Warrants, § 14-24-101 et seq.;
      12. The Arkansas County Accounting Law of 1973, § 14-25-101 et seq.;
      13. Correction of errors (on tax books), § 26-28-111;
      14. Settlement and payment of taxes: Time for payment, § 26-39-201; and
      15. Review of audit reports by legislative governing bodies, § 10-4-219 [repealed];
    2. Municipalities:
      1. Prohibited actions by municipal council members or municipal officials and employees: Interest in offices or contracts, etc. by council members prohibited, § 14-42-107, and Prohibited actions by municipal officials or employees — Penalty, § 14-42-108;
      2. Powers and Duties Generally (of municipal officers), § 14-43-501 et seq.;
      3. Purchase, lease, and sale of real and personal property: Purchase, lease, and sale authorized, § 14-54-302;
      4. Cities of the first class generally: Fiscal Affairs of Cities and Incorporated Towns, § 14-58-101 et seq.;
      5. The Arkansas Municipal Accounting Law, § 14-59-101 et seq.;
      6. The Arkansas Municipal Water and Sewer Department Accounting Law, § 14-237-101 et seq.;
      7. The Arkansas District Courts Accounting Law, § 16-10-201 et seq.; and
      8. Review of audit reports by legislative governing bodies, § 10-4-418;
    3. Schools:
      1. School disbursing officer: Organization — Disbursing officer, § 6-13-618;
      2. School district treasurer: District Treasurer, § 6-13-701 et seq.;
      3. The Arkansas Teachers' Salary Law, § 6-17-901 et seq.;
      4. School finance acts: Finances, § 6-20-101 et seq.;
      5. School's acquisition of commodities: Acquisition of Commodities Generally, § 6-21-301 et seq.; and
      6. Review of audit reports by boards, § 6-1-101(d) and § 10-4-208(d)[repealed];
    4. The following laws are applicable to some or all of the political subdivisions:
      1. Limitation on legislative and taxing power — Local bond issues, Arkansas Constitution, Article 12, § 4;
      2. Political subdivisions not to become stockholders in or lend credit to private corporations, Arkansas Constitution, Article 12, § 5;
      3. Lending credit — Bond issues — Interest-bearing warrants, Arkansas Constitution, Article 16, § 1;
      4. Levy and appropriation of taxes, Arkansas Constitution, Article 16, § 11;
      5. Local Capital Improvement Bonds, Arkansas Constitution, Amendment 62;
      6. Revenue Bonds, Arkansas Constitution, Amendment 65;
      7. Clerks of courts, collection and settlement, additional fees, investment of moneys held in trust:
        1. Fines, penalties, taxes, etc. — Collection and settlement — Accounting — Audit and adjustment, § 16-20-106;
        2. Collection and payment of additional fees — Use of funds, § 16-20-107 [repealed]; and
        3. Investment of moneys held in trust — Disposition of funds, § 16-20-108;
      8. Depositories for Public Funds, § 19-8-101 et seq.;
      9. Public Works, § 22-9-101 et seq.; and
      10. The Local Fiscal Management Responsibility Act, § 14-77-101 et seq.;
  3. “Knowingly” means that a person is aware or should have been aware that his or her conduct will violate the fiscal responsibility and management laws;
  4. “Political subdivision” means any county, municipality, or school district of the State of Arkansas; and
  5. “Public officer or employee” means any officer or employee of a county, municipality, or school district located in the State of Arkansas.

History. Acts 1991, No. 724, § 2; 2003, No. 1185, § 36; 2005, No. 2201, § 8; 2007, No. 617, § 38.

Amendments. The 2003 amendment rewrote (5)(B)(vii).

The 2005 amendment substituted “§ 10-4-418” for “§ 10-4-219” in (5)(B)(viii).

14-77-103. Compliance with fiscal responsibility and management laws — Investigation.

  1. All public officers and employees shall comply with the provisions of the fiscal management and responsibility laws contained in this chapter.
  2. Upon discovery or notification of an alleged violation of the fiscal responsibility and management laws, the executive officer of the political subdivision shall investigate such allegations and take appropriate administrative action.
  3. After completing the investigation, if the executive officer of the political subdivision determines that one (1) or more of the fiscal responsibility and management laws have been violated, the facts and circumstances relating to a violation and any corrective or remedial action shall be documented and placed in the personnel files of the public officer or employee involved in the violation.

History. Acts 1991, No. 724, §§ 3-5.

14-77-104. Notification of violation.

  1. The executive officer of the political subdivision shall notify the public officer or employee of its findings and any corrective or remedial action to be taken.
  2. Notification shall be made in a manner ensuring actual notice to the public officer or employee.
  3. The public officer or employee shall be notified that the failure to make corrective or remedial action within thirty (30) days after the date of notification creates the rebuttable presumption that the violation was committed knowingly.

History. Acts 1991, No. 724, § 6.

14-77-105. Remedial or corrective action.

The public officer or employee violating a fiscal responsibility and management law shall be given not more than thirty (30) days from the date of notification to effect corrective or remedial action recommended by the executive director of the political subdivision. Failure to make corrective or remedial action within thirty (30) days after notification creates the rebuttable presumption that the violation was committed knowingly.

History. Acts 1991, No. 724, § 7.

14-77-106. Investigation by prosecuting attorney.

  1. If the executive officer determines that there has been a violation of the fiscal responsibility and management laws, the executive officer may request the appropriate prosecuting attorney to conduct an investigation regarding the violation.
  2. The Legislative Joint Auditing Committee may request the appropriate prosecuting attorney to conduct an investigation regarding violations of the fiscal responsibility and management laws documented in the audit report.
  3. The prosecuting attorney shall conduct a timely investigation into all matters referred to him under the provisions of this chapter. If the prosecuting attorney fails to conduct a timely investigation or file a civil suit under the provisions of this chapter, the executive officer or the Legislative Joint Auditing Committee may request the Attorney General to conduct an investigation into the violations.

History. Acts 1991, No. 724, § 8.

14-77-107. Civil suit by prosecuting attorney.

After conducting an investigation into the alleged violations, the appropriate prosecuting attorney or the Attorney General may file a civil suit in circuit court against the public officer or employee alleged to have violated the fiscal responsibility and management laws. Venue shall be in the county where the political subdivision is located.

History. Acts 1991, No. 724, § 9.

14-77-108. Civil penalty.

If the public officer or employee is found by the court to have knowingly violated the provisions of the fiscal responsibility and management laws, the court shall impose a civil penalty upon the public officer or employee of not less than one hundred dollars ($100), nor more than one thousand dollars ($1,000) for each violation, and may subject the public officer or employee to the payment of damages resulting as a direct consequence of any violation.

History. Acts 1991, No. 724, § 10.

14-77-109. Recovery of costs.

  1. If the public officer or employee is found by the court to have knowingly violated the provisions of the fiscal responsibility and management laws, the prosecuting attorney or the Attorney General shall be allowed to recover costs and attorney fees associated with the civil suit from the public officer or employee.
  2. Any costs or fees recovered by a prosecuting attorney under this provision shall be deposited into an account administered by the prosecuting attorney and shall be used for expenses of the office.
  3. Any costs or fees recovered by the Attorney General under this provision shall be deposited into the State Treasury.

History. Acts 1991, No. 724, § 11.

14-77-110. Civil procedures apply.

All actions and procedures under the provisions of this chapter are civil in nature and shall be governed by the appropriate rules, regulations, and laws regarding civil actions and remedies.

History. Acts 1991, No. 724, § 12.

14-77-111. Existing remedies not impaired.

The provisions of this chapter are supplemental to any other remedies available by law. In addition, the provisions of this chapter do not limit or diminish any civil rights or administrative procedures available to any public officer or employee or political subdivision.

History. Acts 1991, No. 724, § 13.

Chapter 78 Local Government Short-Term Financing Obligations

Effective Dates. Acts 2001, No. 1808, § 11: Apr. 19, 2001. Emergency clause provided: “It is found and determined by the General Assembly that legislation is needed to establish a procedure pursuant to which municipalities and counties may issue and sell short-term financing obligations under Amendment 78 to the Arkansas Constitution, and that the immediate passage of this act is necessary for municipalities and counties to avail themselves of the public debt market. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

14-78-101. Title.

This chapter shall be referred to and may be cited as the “Local Government Short-Term Financing Obligations Act of 2001”.

History. Acts 2001, No. 1808, § 1.

14-78-102. Definitions.

As used in this chapter, unless the context otherwise requires:

  1. “Chief executive” means the mayor of a municipality or the county judge of a county;
  2. “County” means any county in the State of Arkansas;
  3. “Issue” means, depending on the type of obligation, to issue, enter into, or incur;
  4. “Issue date” means the date on which the obligation commences to bear interest;
  5. “Issuer” means a municipality or a county;
  6. “Legislative body” means the quorum court of a county or the council, board of directors, board of commissioners, or similar elected governing body of a municipality;
  7. “Mortgage lien” means a lien on or security interest in real property or personal property, financed or refinanced, in whole or in part, with the proceeds of obligations;
  8. “Obligations” means short-term financing obligations;
  9. “Short-term financing agreement” means any loan agreement, line of credit agreement, note purchase agreement, security agreement, mortgage, trust indenture, or other agreement, other than the short-term financing obligation itself, pursuant to which a short-term financing obligation is secured, sold, or otherwise provided for; and
  10. “Short-term financing obligations” means “short-term financing obligations” within the meaning of Arkansas Constitution, Amendment 78.

History. Acts 2001, No. 1808, § 2.

14-78-103. Authorization for issuance of obligations.

    1. Municipalities and counties are authorized to issue obligations for the purpose of acquiring, constructing, installing, and renting real property or tangible personal property having an expected useful life of more than one (1) year.
    2. The maximum term and maximum interest rate for the obligations shall be as set forth in Arkansas Constitution, Amendment 89.
    3. The amount of obligations issued shall be sufficient to pay all or a portion of the cost of accomplishing the specified purpose.
    4. Proceeds of the obligations may pay all or a portion of the costs of issuing the obligations.
    5. The obligations shall be issued pursuant to ordinance adopted by the legislative body specifying the principal amount of the obligations to be issued, the purpose or purposes for which the obligations are to be issued, and provisions with respect to the obligations.
    6. A municipality shall not authorize the issuance of obligations unless at the time of issuance, the aggregate principal amount of short-term financing obligations, including the obligations to be issued, outstanding and unpaid, will equal five percent (5%) or less of the assessed value of taxable property located within the municipality as determined by the last tax assessment completed prior to the issuance of the obligations to be issued.
    7. A county shall not authorize the issuance of obligations unless at the time of issuance, the aggregate principal amount of short-term financing obligations, including the obligations to be issued, outstanding and unpaid, will equal two and one-half percent (2.5%) or less of the assessed value of taxable property located within the county as determined by the last tax assessment completed prior to the issuance of the obligations to be issued.
  1. The obligations may:
    1. Be in registered or other form;
    2. Be in denominations exchangeable for obligations of another denomination;
    3. Be payable in or out of the state;
    4. Be issued in one (1) or more series, bearing the date or dates of maturity;
    5. Be payable in the medium of payment, subject to terms of redemption; and
    6. Contain other terms, covenants, and conditions as the ordinance or short-term financing agreement may provide, including, without limitation:
      1. Terms pertaining to custody and application of proceeds;
      2. Remedies on default;
      3. The rights, duties, and obligations of the officers and legislative body of the issuer and the trustee, if any; and
      4. The rights of the owners of the obligations.
  2. Successive obligations may be issued for the purpose of financing the same property.
    1. The total annual principal and interest payments in each fiscal year on the obligations shall be charged against and paid from the general revenues of the issuer for the fiscal year, including road fund revenues.
    2. The obligations shall not be deemed to be revenue bonds for purposes of any statute, and it shall not be necessary for a public hearing to be held by the legislative body or a delegate thereof on the issuance of the obligations.
    1. The ordinance authorizing the obligations may provide for execution by the chief executive officer of the issuer of a short-term financing agreement or agreements defining the rights of the owners of obligations and, in the case of a trust indenture, provide for the appointment of a trustee for the owners of the obligations.
    2. The ordinance or short-term financing agreement may provide for priority between and among successive issues and may contain any of the provisions set forth in subsection (b) of this section and any other terms, covenants, and conditions that are deemed desirable.
  3. The obligations may be sold at public or private sale for the price, including, without limitation, sale at a discount and in a manner as the legislative body of the issuer may determine.
  4. The obligations shall be signed by the chief executive officer of the issuer and shall be executed in the manner provided by the Registered Public Obligations Act of Arkansas, § 19-9-401 et seq.
  5. It shall be plainly stated in the obligation, ordinance, or short-term financing agreement that the obligation has been issued under the provisions of this chapter and Arkansas Constitution, Amendment 78.

History. Acts 2001, No. 1808, § 3; 2013, No. 1139, § 1.

Amendments. The 2013 amendment substituted “89” for “78” at the end of (a)(2).

14-78-104. Refunding obligations.

  1. Obligations may be issued under this chapter to refund any outstanding short-term financing obligations issued pursuant to Arkansas Constitution, Amendment 78, whether or not issued under this chapter.
    1. Refunding obligations may be either sold for cash or delivered in exchange for the outstanding obligations being refunded.
    2. If sold for cash, the proceeds may be applied to the payment of the obligations refunded or deposited in irrevocable trust for the retirement thereof, either at maturity or on an authorized redemption date.
  2. Refunding obligations shall in all respects be authorized, issued, and secured in the manner provided in this section.
  3. Refunding obligations shall mature not later than five (5) years beyond the issue date for the obligations being refunded.

History. Acts 2001, No. 1808, § 4.

14-78-105. Obligations may be secured by mortgage lien.

  1. The ordinance or short-term financing agreement may impose or authorize the imposition of a forecloseable mortgage lien upon the property financed or refinanced, in whole or in part, with the proceeds of obligations issued under this chapter.
  2. The nature and extent of the mortgage lien may be controlled by the ordinance or short-term financing agreement, including provisions pertaining to the release of all or part of the land, buildings, facilities, and equipment from the mortgage lien, the priority of the mortgage lien in the event of successive issues of obligations, and authorizing any owner of obligations, or a trustee on behalf of all owners, either at law or in equity, to enforce the mortgage lien and, by proper suit, compel the performance of the duties of the officials of the issuer set forth in this chapter, the ordinance or short-term financing agreement authorizing the securing of the obligations.
  3. Obligations which are discharged or are secured by deposit in irrevocable trust shall not be taken into account in determining the aggregate principal amount outstanding for the purpose of Arkansas Constitution, Amendment 78, § 2.

History. Acts 2001, No. 1808, § 5.

14-78-106. Tax exemption.

Obligations issued under this chapter and all amounts treated as interest thereon shall be exempt from all state, county, and municipal taxes.

History. Acts 2001, No. 1808, § 6.

14-78-107. Obligations are negotiable instruments.

Unless set forth in the ordinance, obligation, or short-term financing agreement, all obligations issued under the provisions of this chapter are negotiable instruments within the meaning of the negotiable instruments law of the state.

History. Acts 2001, No. 1808, § 7.

14-78-108. Nonliability.

No officer, employee, or member of the legislative body of the issuer shall be personally liable for any obligations issued under the provisions of this chapter or for any damages sustained by any person in connection with any contracts entered into to carry out the purposes and intent of this chapter, unless the person acted with corrupt intent.

History. Acts 2001, No. 1808, § 8.

14-78-109. Supplemental nature of this chapter.

  1. The provisions of this chapter are supplemental to constitutional or statutory provisions now existing or later adopted which may provide for the financing of real or personal property.
  2. Nothing contained in this chapter shall be deemed to be a restriction or limitation upon alternative means of financing previously available or made available to municipalities or counties for the purposes of this chapter.
    1. It is hereby recognized that Arkansas Constitution, Amendment 78, is self-executing.
    2. Nothing contained in this chapter shall be deemed to require a municipality or county to utilize the provisions of this chapter in authorizing and issuing short-term financing obligations under Arkansas Constitution, Amendment 78.

History. Acts 2001, No. 1808, § 9.

14-78-110. Construction.

This chapter shall be construed liberally to effectuate the legislative intent and the purposes of this chapter as complete and independent authority for the performance of every act and thing authorized, and all powers granted under this chapter shall be broadly interpreted to effectuate the intent and purposes, and not as a limitation of powers.

History. Acts 2001, No. 1808, § 10.

Chapters 79-85 [RESERVED.]

[Reserved]

Subtitle 5. Improvement Districts Generally

Chapter 86 General Provisions

Research References

C.J.S. 82 C.J.S., Stat., § 98.

Case Notes

In General.

Improvement districts are agents of the state and derive their limited powers and duties of a public and governmental nature by legislative delegation through the taxing power of the state, and constitute a separate and distinct species of taxing districts as contradistinguished from counties, municipal corporations and school districts. Quapaw Cent. Bus. Imp. Dist. v. Bond-Kinman, Inc., 315 Ark. 703, 870 S.W.2d 390 (1994).

Subchapter 1 — General Provisions

Effective Dates. Acts 1929, No. 127, § 2: approved Mar. 13, 1929. Emergency clause provided: “This act, being necessary for the preservation of the public peace, health and safety, an emergency is hereby declared to exist, and this act shall take effect and be in force from and after its passage.”

Acts 1993, No. 915, § 5: Apr. 7, 1993. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that current laws are uncertain with respect to whether the value of mobile/manufactured homes which are located on leased real property must be taken into account in determining the value of real property necessary to support the creation of certain improvement districts under the laws of Arkansas; that such uncertainty has resulted in inconsistent interpretations in the requirements for formation of such improvement districts, with attendant delays associated with obtaining necessary water, sewer and other improvement projects vital to the public peace, health and safety of the citizens of the state; and that the enactment of this legislation is necessary to eliminate the confusion and uncertainty which exists with respect to such laws. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health, and safety, shall be in full force and effect from and after its passage and approval.”

Identical Acts 2016 (3rd Ex. Sess.), Nos. 6 and 7, § 4: May 23, 2016. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that there are currently many vacancies in levee district boards across the state; that the current procedure for filling these vacancies makes the process more difficult; and that this act is immediately necessary because of the critical importance of the efficient functioning of levee district boards. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

14-86-101. Ratification of certain actions.

  1. All improvements which may have been made by any public improvement district in this state, whether made according to plans and specifications previously adopted or not, or whether made under incomplete plans or specifications, by any board of improvement of any highway improvement district created under the laws of the State of Arkansas, and all actions of boards of these districts in expending money in the construction of improvements and procuring federal aid for use in the construction thereof, or paying the costs incident to construction, are ratified, approved, and confirmed, and declared to be beneficial to the taxpayers in any such district.
  2. This section shall not apply to districts whose boards have been guilty of fraud in appropriating the funds of the districts to their own uses.

History. Acts 1929, No. 127, § 1; Pope's Dig., § 6536; A.S.A. 1947, § 20-1104.

14-86-102. Mobile homes.

    1. A mobile home or manufactured home of any width or description permanently affixed to a foundation on property which is owned by the owner of the mobile home or manufactured home shall be deemed real property for the purposes of the creation of special improvement districts and collection of assessments relative thereto.
    2. Mobile homes and manufactured homes located on leased property where the mobile home or manufactured home owner does not own any direct or indirect interest in the leased property shall be deemed personal property and shall not be considered real property for the purposes of the creation of special improvement districts and collection of assessments relative thereto.
    1. Mobile homes and manufactured homes which are deemed personal property may not be assessed by special improvement districts, and the location of such mobile homes or manufactured homes shall not be cause for increasing the assessment on underlying property.
    2. No lien may be affixed to the mobile home or manufactured home to secure collection of any assessment.
  1. As used in this section, the term “permanently affixed to a foundation” shall mean permanently attached or affixed by bolting, welding, or mortaring to a structural foundation placed on or in the ground by means other than:
    1. Resting on concrete blocks or other devices used merely for leveling the floors of such structures; or
    2. Attachment of underpinnings, underskirts, or other tie-downs customarily employed primarily for cosmetic or weather resistance purposes; or
    3. A combination of methods described in subdivisions (1) and (2) of this subsection.
  2. This section shall apply to:
    1. All property located or to be located within improvement districts formed or with respect to which the initial assessment of benefits is made after April 7, 1993;
    2. All property annexed after April 7, 1993, to improvement districts which have been formed prior to April 7, 1993; and
    3. Any property presently located within any improvement district which has been formed and in which the initial assessment of benefits has been made prior to April 7, 1993.
  3. This section shall not apply to fire protection districts created pursuant to 14-284-201 et seq.

History. Acts 1993, No. 915, § 1.

14-86-103. Reporting — Definition.

  1. Definitions.
    1. Formed or operating under this chapter, § 14-87-101 et seq., § 14-88-101 et seq., § 14-89-101 et seq., § 14-90-101 et seq., § 14-91-101 et seq., § 14-92-101 et seq., the Property Owners' Improvement District Law, § 14-93-101 et seq., the Municipal Property Owner's Improvement District Law, § 14-94-101 et seq., § 14-95-101 et seq., § 14-114-101 et seq., the Interstate Watershed Cooperation Act, § 14-115-101 et seq., the Arkansas Irrigation, Drainage, and Watershed Improvement District Act of 1949, § 14-117-101 et seq., § 14-118-101 et seq., The Water Improvement District Accounting Law of 1973, § 14-119-101 et seq., § 14-120-101 et seq., § 14-121-101 et seq., § 14-122-101 et seq., § 14-123-101 et seq., § 14-124-101 et seq., and the Conservation Districts Law, § 14-125-101 et seq.; or
    2. Created by a special act of the General Assembly.
    1. On or before December 31, 2009, each district shall file an initial report with the clerk of the county court in whose jurisdiction any property of the district is located.
    2. The initial report shall include the following:
      1. The name of the district;
      2. The date on which the district was formed;
      3. The statutory or other legal authority under which the district was formed;
      4. A description of the district's boundaries and a map of the district;
      5. The names and addresses of the district's directors and its officers and their respective terms of office;
      6. An identification of any vacancy on the district board or district commission;
      7. A map of the parcels of property located in the district; and
      8. The time, date, and location of the district board's or district commission's next annual meeting or, if the annual meeting is unscheduled, the time, date, and location of the district board's or district commission's next meeting.
    3. The clerk shall forward a file-marked copy of all reports filed under this subsection to the Arkansas Natural Resources Commission.
    1. On or before December 31, 2010, and annually afterwards, the district shall file with the clerk of the county court in whose jurisdiction any property of the district is located a report that:
      1. Provides the names and addresses of the members of the district board or district commission and its officers;
      2. Identifies any vacancy on the district board or the district commission; and
      3. Provides the time, date, and location of the district board's or district commission's next annual meeting, if scheduled, and its next regularly scheduled meeting.
    2. The clerk shall forward a file-marked copy of all reports filed under this subsection to the Arkansas Natural Resources Commission.
    1. A district that fails to perform any of the requirements of subsection (b) or subsection (c) of this section commits a violation punishable by a fine of not less than one hundred dollars ($100) and not more than one thousand dollars ($1,000) for each offense.
    2. A fine recovered under subdivision (d)(1) of this section shall be deposited into the county clerk's cost fund.
    3. A district shall not receive financial assistance from any state agency for a two-year period following the date the fine was assessed under subdivision (d)(1) of this section.

As used in this section, “district” means any levee, drainage, irrigation, watershed, or river improvement district in Arkansas, including without limitation those districts:

History. Acts 2009, No. 386, § 1; 2011, No. 778, § 2; 2016 (3rd Ex. Sess.), No. 6, § 1; 2016 (3rd Ex. Sess.), No. 7, § 1.

Amendments. The 2011 amendment deleted the (d)(1)(A) designation, redesignated (d)(1)(B) as (d)(2), and redesignated (d)(2) as (d)(3); substituted “subsection (b) or subsection (c)” for “subdivision (b) or (c)” in (d)(1); and substituted “(d)(1)” for “(d)(1)(A)” in (d)(2) and (d)(3).

The 2016 (3rd Ex. Sess.) amendment by identical acts Nos. 6 and 7 substituted “without limitation” for “but not limited to” in the introductory language of (a)(1); added (b)(3); added (c)(2); and made stylistic changes.

14-86-104. Improvement district — Audit — Vacancy — Meetings.

      1. Ten percent (10%) or more of the property owners in an improvement district may present to the county judge of the county or to the mayor of the municipality in which the improvement district lies a petition and an affidavit:
        1. Concerning the financial affairs of the improvement district; and
        2. Showing substantially insufficient financial information of an improvement district provided by the improvement district as a result of a valid request under the Freedom of Information Act of 1967, § 25-19-101 et seq.
      2. Upon the presentation of a petition and affidavit under subdivision (a)(1)(A) of this section, the county judge or mayor shall request the financial information of the improvement district.
      1. The improvement district shall provide the financial information requested under subdivision (a)(1) of this section if the financial information exists.
      2. If within thirty (30) days of the request under subdivision (a)(1) of this section the improvement district does not provide to the county judge or to the mayor the financial information or state that the financial information does not exist, the county judge or the mayor with the city council's approval may order an independent audit to be conducted of the improvement district at the improvement district's expense.
  1. If a vacancy exists on a board of commissioners of an improvement district and the procedure for filling the vacancy is for the remaining commissioners to appoint a replacement commissioner, the county judge of the county or the mayor of the municipality in which the improvement district lies may appoint a replacement commissioner on his or her own accord or by petition of ten percent (10%) or more of the property owners in the improvement district.
    1. All meetings of the board of commissioners of an improvement district shall be held in a central and convenient location in the county or the municipality in which the improvement district lies.
    2. Upon petition of ten percent (10%) or more of the property owners in the improvement district, the meeting location shall be determined by the county judge or the mayor.
  2. This section does not apply to a general consolidated public utility system improvement district established under the General Consolidated Public Utility System Improvement District Law, § 14-217-101 et seq.

History. Acts 2017, No. 623, § 1.

14-86-105. Improvement district board of commissioners — Administrator.

  1. The county judge of the county or the mayor of the municipality in which an improvement district lies shall appoint an administrator of the improvement district to act as the board of commissioners if all positions on a board of commissioners of the improvement district are vacant and no interested property owner within the improvement district boundaries is willing to serve as a commissioner.
  2. The administrator appointed under subsection (a) of this section:
    1. Is subject to the applicable laws of the improvement district;
    2. Shall provide evidence of his or her economic viability;
    3. Shall receive such payment for his or her services as the county judge or the mayor may allow;
    4. Shall serve at the pleasure of the county judge or mayor or until an interested property owner in the improvement district boundaries is willing to serve as commissioner of the improvement district; and
    5. Is not liable for damages in connection with the improvement district unless the administrator acted with corrupt and malicious intent.
  3. This section does not apply to a general consolidated public utility system improvement district established under the General Consolidated Public Utility System Improvement District Law, § 14-217-101 et seq.

History. Acts 2017, No. 623, § 1.

Subchapter 2 — Petition to Establish Improvement District

Effective Dates. Acts 1983, No. 739, § 4: Mar. 23, 1983. Emergency clause provided: “It is hereby found and determined by the General Assembly that many people who are asked to sign petitions for the establishment of improvement districts are not aware that their signature indicates that they favor the establishment of the district or that the establishment of the district may result in assessment of benefits (taxes) against their property; that fairness and equity demand that persons asked to sign a petition be advised of the possible consequences and that the most appropriate way to so advise the people is by printing a notice on the front of the petition form; that this Act is designed to provide for printing of such notice on the form and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

14-86-201. Notice provision required.

  1. Each and every petition circulated in the state for the establishment of an improvement district of whatever nature shall contain on the front and near the top thereof the following notice, which shall be in letters at least one-fourth inch (¼") in height and shall be enclosed in a box in substantially the following form:
  2. It is unlawful for any person to circulate, or cause to be circulated, any petition for the establishment of an improvement district of whatever nature in this state which does not conform to the provisions of this section. Any person violating the provisions of this section shall be guilty of a Class C misdemeanor.

NOTICE YOUR SIGNATURE HEREON SHOWS THAT YOU FAVOR THE ESTABLISHMENT OF AN IMPROVEMENT DISTRICT. IF THE DISTRICT IS FORMED, YOU MAY BE CHARGED FOR THE COST OF THE IMPROVEMENTS.

Click to view form.

History. Acts 1983, No. 739, §§ 1, 2; A.S.A. 1947, §§ 20-104.1, 20-104.2.

Case Notes

Cited: Hannah v. Deboer, 311 Ark. 215, 843 S.W.2d 800 (1992).

Subchapter 3 — Notice on Formation of Improvement District

Effective Dates. Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

14-86-301. Definition.

As used in this subchapter, unless the context otherwise requires, “address” means the address as reflected on the official tax records of the county where the property is located.

History. Acts 1981, No. 546, § 1; A.S.A. 1947, § 20-1159.

14-86-302. Applicability.

  1. The provisions of this subchapter shall not be applicable to any city, county, or area which is under an order from the Division of Environmental Quality of the Department of Energy and Environment and the United States Environmental Protection Agency to meet the minimum requirements of the United States Environmental Protection Agency for sanitary sewer discharge.
  2. The provisions of this subchapter shall not be applicable to levee, drainage, fire protection, or road improvement districts.

History. Acts 1981, No. 546, § 1; A.S.A. 1947, § 20-1159; Acts 1999, No. 1164, § 123; 2005, No. 1197, § 1; 2019, No. 910, § 3033.

A.C.R.C. Notes. Acts 1997, No. 1219, § 2, provided:

“‘Arkansas Department of Pollution Control & Ecology’ renamed to ‘Arkansas Department of Environmental Quality’.

(a) Effective March 31, 1999, the ‘Arkansas Department of Pollution Control & Ecology’ or ‘Department,’ as it is referred to or empowered throughout the Arkansas Code Annotated, is hereby renamed. In its place, the ‘Arkansas Department of Environmental Quality’ is hereby established, succeeding to the general powers and responsibilities previously assigned to the Arkansas Department of Pollution Control & Ecology. The Director of the Arkansas Department of Pollution Control & Ecology is directed to identify and revise all inter-agency agreements, financial instruments, funds, and other necessary legal documents in order to effect this change by March 31, 1999.

“(b) Nothing in this Act shall be construed as impairing the powers and authorities of the Arkansas Department of Pollution Control and Ecology prior to the effective date of the name change.”

Amendments. The 1999 amendment substituted “Arkansas Department of Environmental Quality” for “Department of Pollution Control and Ecology” in (a).

The 2005 amendment inserted “fire protection” in (b).

The 2019 amendment substituted “Division of Environmental Quality” for “Arkansas Department of Environmental Quality” in (a).

14-86-303. Requirements.

  1. No improvement district shall be created unless a notice, prior to the hearing on the formation of the district, has been mailed by certified mail, return receipt requested, to the addresses of all owners of real property within the boundaries of the proposed improvement district.
  2. The notice shall inform the property owners of:
    1. The proposal to form an improvement district;
    2. The purpose and powers of the proposed district; and
    3. The names and addresses of the organizers of the district.
  3. The notice shall also notify the property owners of the date, time, and place of the hearing on the proposed formation of the improvement district.

History. Acts 1981, No. 546, § 1; A.S.A. 1947, § 20-1159.

Case Notes

Cited: Burris v. City of Little Rock, 941 F.2d 717 (8th Cir. 1991).

Subchapter 4 — Correcting Defects in Formation of Improvement District

Cross References. Creation of new district to replace void municipal improvement district, § 14-88-206.

Effective Dates. Acts 1919, No. 661, § 4: effective on passage.

Acts 1921, No. 503, § 5: approved Mar. 26, 1921. Emergency clause provided: “This act being necessary for the preservation of the public peace, health and safety, an emergency is declared to exist, and this act shall take effect and be in force from and after its passage.”

14-86-401. Construction.

This subchapter is not intended to and does not repeal any existing remedy.

History. Acts 1919, No. 661, § 3; A.S.A. 1947, § 20-1103.

14-86-402. Proceedings generally.

    1. Ten (10) resident citizens and property owners residing and owning property within any improvement district or road district within any county, city, or town, or within the territory to be intended to be included in the district may file with the clerk of the county court of the county in which the district is situated a petition setting forth the defects or irregularities sought to be corrected.
    2. The petitioners shall cause a notice of the filing of the petition and its purposes to be published in a paper of general circulation in the county for three (3) weeks before the petition shall be presented for hearing.
  1. Any of the property owners in the district shall have a right to appear and become parties to the petition or to file objections or an answer to protest and resist the granting of the petition.
    1. Upon the hearing of the petition and answer or protest, the county court shall have full power and authority to correct any mistake or error in the formation or organization of the district.
      1. The order of the county court shall be final and conclusive of the formation and organization of the district and any and all corrections in its formation or attempted formation.
        1. Any interested parties to the record shall have the right to appeal, within fifteen (15) days from the judgment of the county court, to the circuit court.
        2. The circuit court shall have the power to hear the case de novo and render judgment.
  2. When the boundaries of other districts are involved, ten (10) of the resident property owners in the other districts may join in the petition and notice, and the residents of the other districts shall have a right to appear and become parties to the proceedings or to resist them.

History. Acts 1919, No. 661, § 1; C. & M. Dig., §§ 5636-5640; Acts 1921, No. 503, § 1; Pope's Dig., §§ 7372-7376; A.S.A. 1947, § 20-1101.

Case Notes

Cited: Hannah v. Deboer, 311 Ark. 215, 843 S.W.2d 800 (1992).

14-86-403. Judgment conclusive.

When a judgment is rendered by the county court in accordance with this subchapter, it shall be conclusive unless appealed from within fifteen (15) days, shall be binding upon all parties, and shall not be collaterally attacked.

History. Acts 1919, No. 661, § 2; C. & M. Dig., § 5641; Pope's Dig., § 7377; A.S.A. 1947, § 20-1102.

Subchapter 5 — Destruction of Section Corners in Improvement Districts

Effective Dates. Acts 1921, No. 82, § 7: effective on passage.

14-86-501. Applicability.

The provisions of this subchapter shall apply to engineers and commissioners in all improvement districts in this state.

History. Acts 1921, No. 82, § 4; Pope's Dig., § 3222; A.S.A. 1947, § 20-1108.

14-86-502. Penalty.

    1. Any engineer or commissioner who shall neglect, fail, or refuse to comply with any of the provisions of this subchapter shall be deemed guilty of a misdemeanor and upon conviction shall be fined in any sum not less than fifty dollars ($50.00) nor more than two hundred fifty dollars ($250).
    2. Twenty-five dollars ($25.00) of the fine shall be paid to the informer.
  1. Each corner destroyed where there is a failure to comply with the provisions of this subchapter as to corners shall constitute a separate offense.

History. Acts 1921, No. 82, §§ 3, 5; Pope's Dig., §§ 3221, 3223; A.S.A. 1947, §§ 20-1107, 20-1109.

14-86-503. Duty to perform.

  1. It is made the duty of the commissioners of any district to cause the work described in § 14-86-504 to be done by the engineers.
  2. All corners destroyed shall be reestablished at once during the time construction work is being done in the district.

History. Acts 1921, No. 82, § 2; Pope's Dig., § 3220; A.S.A. 1947, § 20-1106.

14-86-504. Location of corners and notes required.

    1. It shall be the duty of all engineers in the employ of any improvement district in this state or engineers doing any work for the improvement district, if the doing of the work or the construction of the improvement, or any work connected therewith, destroys any section corner or quarter section corner, to locate each corner so destroyed correctly in accord with the United States survey field notes of the corner and cause to be erected reference monuments of some indestructible material, which may be either concrete, stone, galvanized iron pipe, or cast iron posts not less than two-by-four inches (2" x 4") and sunk in the ground not less than three feet (3').
    2. The posts or monuments shall be placed forty-five degrees (45°) N. E., forty-five degrees (45°) N. W., forty-five degrees (45°) S. W., and forty-five degrees (45°) S. E., if possible, from the corner and shall be far enough away from the corner so as not to be covered up or destroyed in constructing the improvements.
    1. A copy of the engineer's notes of his locating the survey of each corner and the monuments thereto shall be kept. The notes shall tell how he proceeded in locating each corner, giving the course and distance from the true corner that each witness or monument is placed, and the kind of monument. The notes shall be so full and complete that any surveyor can, from the notes, find the corner without difficulty.
    2. The notes shall be filed by the engineer in the office of the county clerk in the county in which the corners are situated and shall be recorded by the clerk in a book kept for that purpose. The book shall be correctly indexed as to section, township, and range so as to be readily referred to or found from the index.
  1. The cost or charge for locating the corners and recording the notes shall be paid by the district as a part of the cost of the construction of the improvement.

History. Acts 1921, No. 82, § 1; Pope's Dig., § 3219; A.S.A. 1947, § 20-1105.

Subchapter 6 — Assessment in Improvement Districts

Effective Dates. Acts 1919, No. 404, § 2: approved Mar. 27, 1919. Emergency declared.

Acts 1919, No. 515, § 2: approved Mar. 28, 1919. Emergency declared.

14-86-601. Partition among several owners.

Wherever lands or other real property in an improvement district are assessed in one (1) body and are at the time owned in separate parcels or where the ownership subsequently becomes divided, any owner of any part of the property may apply to the chancery court of the county where the lands, or some part thereof, lie, making defendants in his suit the other parties interested in the lands. Thereupon, it shall be the duty of the court to partition the assessment against the lands among the several owners thereof, as equity and good conscience may require.

History. Acts 1919, No. 404, § 1; C. & M. Dig., § 5634; Pope's Dig., § 7302; A.S.A. 1947, § 20-1116.

Case Notes

Applicability.

This section does not authorize dividing annual tax assessments which have become due and have not been paid; it authorizes proration of subsequent and future assessments against the property. Home Owners' Loan Corp. v. Paving Dist., 199 Ark. 506, 135 S.W.2d 59 (1939).

14-86-602. Assessed benefits not reduced.

Where any improvement district shall have issued bonds or incurred indebtedness, the total amount of the assessed benefits shall never be reduced upon a reassessment.

History. Acts 1919, No. 515, § 1; C. & M. Dig., § 5635; Pope's Dig., § 7301; A.S.A. 1947, § 20-1115.

Case Notes

Cited: Sugarloaf Dev. Co. v. Heber Springs Sewer Imp. Dist., 34 Ark. App. 28, 805 S.W.2d 88 (1991).

14-86-603. State agencies and commissions owning land to pay assessments.

It is hereby found and determined by the General Assembly that some state agencies and commissions owning land within levee, drainage, or other improvement or special assessment districts do not pay the assessments; that such land may be benefitted by the assessment levied by the district; that although public property used exclusively for public purposes is exempt from ad valorem property taxation under the Arkansas Constitution, the Arkansas Supreme Court has distinguished a tax from an assessment, stating that the word “taxes” refers to exactions laid by the government for the purpose of general revenues and that the word “assessments” refers to exactions laid for making improvements; and that state agencies and commissions owning land in these districts should pay the assessments levied by the districts because they benefit from the districts' improvements.

History. Acts 1991, No. 877, § 1.

A.C.R.C. Notes. The Arkansas Supreme Court case referred to in this section is Rainwater v. Haynes, 244 Ark. 1191, 428 S.W.2d 254 (1968).

14-86-604. Exemptions.

  1. It is found and determined by the Seventy-Eighth General Assembly that all property owned by the State Highway Commission or the Arkansas Department of Transportation is public property used exclusively for public purposes.
  2. Since neither the commission nor the department pursuant to Arkansas Constitution, Article 16, § 5, is required to pay real or personal property taxes on real estate and tangible personal property owned by that commission or department, likewise, notwithstanding any provision of law or any provision in §§ 14-86-603 — 14-86-606 to the contrary, the commission and department shall not be required to pay any improvement district assessments that may be assessed against the commission or department as a result of such ownership.

History. Acts 1991, No. 877, § 2; 2017, No. 707, § 24.

A.C.R.C. Notes. The Arkansas State Highway Commission is an incorrect agency name. It is actually the State Highway Commission.

Amendments. The 2017 amendment, in (a), deleted “hereby” preceding “found”, and substituted “Department of Transportation” for “State Highway and Transportation Department”.

14-86-605. Assessments to be paid from date of implementation — Applicability.

  1. Any state agency or commission, including the Arkansas State Game and Fish Commission, owning real property located within a levee, drainage, or any other improvement or district and benefiting from the district shall pay the assessments levied by such districts from the date of implementation.
  2. However, the provisions of this section shall not apply retroactively to lands owned by state agencies prior to July 15, 1991, unless the state agencies were already paying taxes or assessments on their lands.
  3. This section shall not apply to the Commissioner of State Lands.

History. Acts 1991, No. 877, § 3.

14-86-606. Sale or transfer of land.

The sale or transfer of real property located within a levee, drainage, or other improvement or special assessment district to a state agency or commission, including the Arkansas State Game and Fish Commission, if benefitted by the stated purpose of the improvement district, shall not extinguish any lien for delinquent assessments of such districts or relieve the purchaser or transferee of liability for delinquent assessments in such districts.

History. Acts 1991, No. 877, § 4.

14-86-607. Exclusions.

  1. At its option, any state agency or commission may be excluded from any newly formed levee, drainage, or other improvement or special assessment districts.
  2. If the purpose of the improvement district does not benefit the affected lands, then no taxes or assessments will apply to the nonserved lands. Sections 14-86-606 and 14-86-607 shall not apply to the Commissioner of State Lands.

History. Acts 1991, No. 877, § 4.

Subchapter 7 — Tax for Preliminary Expenses of Improvement District

Cross References. Levy of tax for preliminary expenses in drainage districts, § 14-121-422.

Levy of tax in suburban improvement districts, § 14-92-238.

Effective Dates. Acts 1923, No. 562, § 4: approved Mar. 22, 1923. Emergency clause provided: “All laws and parts of laws in conflict with this act are hereby repealed; and this act being necessary for the immediate preservation of the public peace, health and safety, an emergency is hereby declared, and this act shall take effect and be in force from and after its passage.”

14-86-701. Authority to levy.

    1. In all improvement districts in this state, the county court or board of commissioners or directors is authorized and empowered, upon the completion of the assessment of benefits and its confirmation, to levy and collect a tax. This tax shall be based upon the assessment of benefits and collectible from the real property in the district in the proportion of the respective assessments of benefits against the several pieces of property for the purpose of paying preliminary expenses wherever it is deemed prudent not to proceed immediately with construction and not to wind up the district.
    2. The tax shall be levied and collected in the same manner as is provided for the levy and collection of the taxes of the district for the purpose of construction.
  1. If any improvement district is abandoned before the making of the assessment of benefits, the tax for preliminary expenses shall be levied upon the real estate therein, upon the basis of the assessment for county and state purposes.

History. Acts 1923, No. 562, § 2; Pope's Dig., § 4466; A.S.A. 1947, § 20-1117.

14-86-702. Issuance of bonds.

  1. In case the directors or commissioners of any improvement district find it desirable to do so, they may issue coupon bonds or other negotiable evidences of indebtedness for the purpose of raising money to pay preliminary expenses.
  2. These bonds or other evidences of indebtedness may be issued, from time to time, in payment for preliminary work done. The directors or commissioners may secure the payment of the bonds by a pledge and mortgage of the assessment of benefits whenever the assessment of benefits has been confirmed.

History. Acts 1923, No. 562, § 3; Pope's Dig., § 4467; A.S.A. 1947, § 20-1118.

Cross References. Refunding bonds, § 14-121-445.

Subchapter 8 — Collection of Taxes in Improvement Districts

Preambles. Acts 1933, No. 46 contained a preamble which read:

“Whereas, abuses are prevalent in receiverships of levee, drainage and road districts, in the allowance of excessive fees to counsel for filing suits for receivers, the allowance of excessive fees to receivers, the appointment of unnecessary attorneys for receivers and the allowance of excessive fees to them, all of which imposes an additional financial burden on the landowners of the district; and

“Whereas, the collection officers provided by law can collect improvement district taxes more expeditiously and at less expense than receivers, if they are made to discharge their duties;

“Now, therefore….”

Act 1933, No. 79 contained a preamble which read:

“Whereas, abuses are prevalent in receiverships of municipal, bridge, suburban and road maintenance improvement districts, in the allowance of excessive fees to counsel for filing suits for receivers, the allowance of excessive fees to receivers, the appointment of unnecessary attorneys for receivers and the allowance of excessive fees to them, all of which imposes an additional financial burden on the landowners of the districts; and

“Whereas, the collection officers provided by law can collect improvement district taxes more expeditiously and at less expense than receivers, if they are made to discharge their duties;

“Now, therefore….”

Acts 1939, No. 100 contained a preamble which read:

“Whereas, it being ascertained by the General Assembly of the State of Arkansas, now in regular session, that an emergency now exists and that said emergency effects a vast number of the home owners and land owners of the State, and also the bond holders owning bonds issued by improvement districts within the State of Arkansas, that the cause of the emergency with excessive assessments on the lands and homes of many of the inhabitants of the State of Arkansas for improvement purposes and the impossibility of the payment of such assessments by the owners of the lands located in improvement districts, which assessments coupled with the general depression which is recognized to exist within the United States of America, is causing the land owners to lose their homes and the bond holders to lose their investment in the bonds…”

Effective Dates. Acts 1933, No. 46, § 2: approved Feb. 18, 1933. Emergency clause provided: “As this act is intended to prevent abuses in the administration of justice, to require improvement district officers to perform their legal duties, and to relieve the lands in improvement districts from the payment of unnecessary expenses, an emergency is hereby declared and this act shall take effect and be in force from and after its passage.”

Acts 1933, No. 79, § 2: approved Mar. 7, 1933. Emergency clause provided: “As this act is intended to prevent abuses in the administration of justice, to require improvement district officers to perform their legal duties, and to relieve the lands in improvement districts from the payment of unnecessary expense, an emergency is hereby declared and this act shall take effect and be in force from and after its passage.”

Acts 1939, No. 100, § 3: approved Feb. 17, 1939. Emergency clause provided: “It being ascertained by the General Assembly that by reason of the fact that a great financial depression exists within the State of Arkansas that land values have greatly depreciated within the past few years, that many people are losing their homes and their lands by reason of their inability to pay the assessments imposed on such lands in improvement districts, and that many persons owning the bonds of such improvement districts are unable to collect such bonds, or the interest thereon, and this act being necessary for the preservation of the public peace, health and safety, an emergency is hereby declared to exist, and all laws in conflict herewith are hereby repealed, and this act shall become in full force and effect from and after its passage.”

Acts 1949, No. 238, § 2: Mar. 4, 1949. Emergency clause provided: “It is hereby ascertained and declared that in such levee, drainage and road districts as are now without a duly appointed, qualified and acting Board of Commissioners, landowners are without an authorized collector to whom payments of annual installments of assessed benefits, current and delinquent, may be paid and the lien thereof satisfied; that the situation resulting therefrom unduly interferes with the alienation of property in said districts, unnecessarily burdening the owners thereof by clouding the title thereto, and that an emergency therefore exists, and this Act being necessary for the preservation of the public peace, health and safety, the same shall take effect and be in force from and after its passage and approval.”

Case Notes

In General.

Improvement districts are agents of the state and derive their limited powers and duties of a public and governmental nature by legislative delegation through the taxing power of the state, and constitute a separate and distinct species of taxing districts as contradistinguished from counties, municipal corporations and school districts. Quapaw Cent. Bus. Imp. Dist. v. Bond-Kinman, Inc., 315 Ark. 703, 870 S.W.2d 390 (1994).

14-86-801. Collection in levee, drainage, and road districts.

  1. All taxes in levee, drainage, and road improvement districts shall be collected at the time, in the manner, and by the officers specified in the statutes creating them or under which they were organized if there is then a duly appointed, qualified, and acting board of commissioners for the district.
  2. The duty to promptly extend and collect these taxes may be enforced by mandamus or by a mandatory injunction in equity, at the instance of any landowner in the district, the trustee in any deed of trust securing the bonds of the district, the holder of any bond as to which the district has defaulted in the payment of interest or principal, or any other creditor of the district.
  3. The remedies provided in this section shall be exclusive, and all laws providing for or authorizing the appointment of a receiver for any such district having a duly appointed, qualified, and elected board are repealed. No court shall appoint a receiver to collect levee, drainage, or road district taxes in a district having such a board.

History. Acts 1933, No. 46, § 1; Pope's Dig., § 4591; Acts 1949, No. 238, § 1; A.S.A. 1947, § 20-1121.

Case Notes

Constitutionality.

This section is not unconstitutional as impairing the obligation of contracts as applied to preexisting trust deeds or mortgages securing an improvement district's bonds. Drainage Dist. No. 2 v. Mercantile-Commerce Bank & Trust Co., 69 F.2d 138 (8th Cir. 1934), cert. denied, Mercantile-Commerce Bank & T. Co. v. Drainage Dist., 293 U.S. 566, 55 S. Ct. 77 (1934).

Jurisdiction.

The power to compel collection of drainage taxes by mandatory injunction against the officers of the improvement district may be exercised by the federal district court. Kersh Lake Drainage Dist. v. State Bank & Trust Co., 138 F.2d 486 (8th Cir. 1943), cert. denied, Neblett v. Caminetti, 320 U.S. 802, 64 S. Ct. 428, 88 L. Ed. 484 (1943).

14-86-802. Collection in municipal, bridge, suburban, and road districts.

  1. All taxes in municipal, suburban, bridge, and road improvement districts shall be collected at the time, in the manner, and by the officers specified in the statutes creating them, or under which they were organized.
  2. The duty to promptly extend and collect these taxes may be enforced by mandamus or by a mandatory injunction in equity, at the instance of any landowner in the district, the trustee in any deed of trust securing the bonds of the district, the holder of any bond as to which the district has defaulted in the payment of interest or principal, or any other creditor of the district.
  3. The remedies provided in this section shall be exclusive, and all laws providing for or authorizing the appointment of a receiver for any such district are repealed. No court shall appoint a receiver to collect municipal, bridge, suburban, or road district taxes.

History. Acts 1933, No. 79, § 1; Pope's Dig., §§ 6540, 7336; A.S.A. 1947, § 20-1120.

Case Notes

Constitutionality.

This section is not invalid as an abridgment of the jurisdiction of the courts of equity. Dickinson v. Mingea, 191 Ark. 946, 88 S.W.2d 807 (1935).

Applicability.

This section is not retroactive and has no applicability to a receivership pending at the time it was enacted. Cutsinger v. Strang, 203 Ark. 699, 158 S.W.2d 669 (1942).

Delinquent Assessments.

Even though foreclosure sale of sewer improvement district plans was held valid where the proceedings had lain dormant for a period of 15 years and there was some question as to the validity of the sale, it was proper for the chancery court to order the commissioners of the district to collect all delinquent assessments with a notice that the owners of the delinquent lands could redeem them by the payment of the delinquency, with accumulated interest, within 90 days from the date of the notice. Whitaker & Co. v. Sewer Improv. Dist., 229 Ark. 697, 318 S.W.2d 831 (1958).

Enforcement of Duty.

The provisions of this section may be invoked by the holder of any bond of a municipal improvement district which has defaulted in the payment of interest or principal thereof. Dickinson v. Mingea, 191 Ark. 946, 88 S.W.2d 807 (1935).

Receivers.

Chancery court's appointment of a receiver to take charge of assets of paving district was held in violation of this section, and allowance of fee to receiver and attorneys was error. Rogers Paving Imp. Dist. v. Swofford, 193 Ark. 260, 99 S.W.2d 577 (1936).

Where original owner of property filed an action 10 years after foreclosure sale and attacked validity of purchaser's title on the ground that receiver was appointed illegally, such illegality in appointment of receiver did not affect title of purchaser, as district had title at time of sale to purchaser and period of redemption against district is restricted to five years. Schuman v. Cherry, 215 Ark. 342, 220 S.W.2d 817 (1949).

14-86-803. Payment and redemption with district bonds.

  1. It shall be lawful for any person, firm, or corporation owning lands in any drainage district, levee district, or other improvement districts within the State of Arkansas to pay any part or all of the assessments against their respective lands located in the drainage district, levee district, or other improvement districts with bonds issued by the district.
    1. It shall be lawful for any collector or improvement district commissioner or person lawfully designated to collect improvement district assessments to accept these bonds as payment, in part or in full, of any assessment imposed upon any land within any improvement district as payment of any past due assessments or assessments to become due and payable.
    2. The collector or other person lawfully designated to collect improvement district assessments in making his settlements with any district shall only apply such bonds on the settlement as he has actually received in payment of assessments or redemptions. He shall furnish the districts with a sworn statement setting out the names of property owners paying with bonds and the amounts of assessments each individual has paid in bonds.
    1. In the making of their payments, the landowners may pay with either past due bonds or bonds to become due in the future issued by the proper authority of the particular district for which payment is being made.
      1. It also shall be lawful for any person, firm, or corporation whose lands have been sold and which lands are owned by an improvement district and have not been resold to a private individual, firm, or corporation to redeem the lands or repurchase them with the bonds either past due or to become due of the particular district where the land is located and assessed for improvement purposes.
      2. The commissioner of any and all districts are authorized to execute to the person redeeming or repurchasing the lands a deed conveying all right, title, and interest of the district in and to the lands, subject, however, to any unpaid assessments that may accrue after the purchase or redemption. All bonds used in the payment of assessments, redemption, or repurchase of lands, as provided for in this section, shall be accepted at face value.
    1. The provision of this section shall in no way interfere or prevent the reassessment against any lands in any improvement district as provided by law.
    2. In the event any landowner shall have paid all assessments against his lands, including past due assessments and future assessments, nothing in this section shall prevent additional assessments against any such lands that may be made under any existing law.

History. Acts 1939, No. 100, §§ 1, 2; A.S.A. 1947, §§ 20-1122, 20-1123.

Case Notes

Constitutionality.

Former similar statute held valid. Watson v. Barnett, 191 Ark. 990, 88 S.W.2d 811 (1935) (decision under prior law).

Powers of Commissioners.

Drainage district commissioner had right to purchase and acquire lands in the district from other owners and also to remove the lien of the district against such lands by using bonds of the district. Bishop v. Gregory, 201 Ark. 448, 144 S.W.2d 1083 (1940) (decision under prior law).

Subchapter 9 — Extending Collection of Tax in Improvement District

Preambles. Acts 1961, No. 427 contained a preamble which read:

“Whereas, the several County Clerks are now obligated by law to extend certain improvement district taxes and the failure to make uniform the fees to be allowed for such service results in injustice and confusion and may retard and hinder the orderly process of the administration of such improvement districts;

Now, therefore….”

Effective Dates. Acts 1961, No. 427, §§ 5, 6: Jan. 1, 1961. Emergency clause provided: “It is hereby found and declared by the General Assembly that many county clerks are obligated by law to extend certain improvement taxes, that the fees allowed for such additional duties are not uniform throughout the State, that uniformity in such fees is necessary to the orderly administration of such districts. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in effect from and after its passage and approval.” Approved March 15, 1961.

14-86-901. Applicability.

This subchapter shall not apply to any improvement district that collects its annual assessments or taxes by a collector other than the collector of the state and county taxes, nor shall this subchapter apply to any improvement taxes of any district which maintains a permanent office open during business hours throughout the year and which has full-time employees in charge of it.

History. Acts 1961, No. 427, § 1; 1963, No. 505, § 1; A.S.A. 1947, § 20-1152.

14-86-902. County clerk's commission.

In all counties in this state in which the county clerks are required by law to extend any improvement taxes, whether the taxes are from municipal, suburban, road, fire, drainage district, or otherwise, the county clerk of any such county shall receive, for his services in extending the tax annually upon the books of his county, a commission necessary to reimburse the clerk for the cost of extending the taxes. However, in no event may the commission exceed two percent (2%) of the amount so extended.

History. Acts 1961, No. 427, § 1; 1963, No. 505, § 1; A.S.A. 1947, § 20-1152.

14-86-903. Additional deputy clerks.

County clerks are authorized to employ additional deputies to handle the additional work load imposed. They may pay the deputies salaries up to the sum of three thousand six hundred dollars ($3,600) per annum. However, these salaries shall never exceed the receipts from the commissions allowed by this subchapter.

History. Acts 1961, No. 427, § 2; A.S.A. 1947, § 20-1153.

14-86-904. Tax collector's commission.

In counties operating under the unit tax ledger system, the county tax collector shall receive a commission of two percent (2%) for extending the improvement taxes and a commission of an additional two percent (2%) for collecting them.

History. Acts 1961, No. 427, § 3; A.S.A. 1947, § 20-1154.

14-86-905. Additional deputy tax collectors.

County tax collectors shall be authorized to employ additional deputies subject to the limitations in § 14-86-903.

History. Acts 1961, No. 427, § 3; A.S.A. 1947, § 20-1154.

Subchapter 10 — Collection of Delinquent Improvement District Taxes or Assessments

Effective Dates. Acts 1941, No. 268, § 3: Mar. 26, 1941. Emergency clause provided: “Because of strained financial conditions, and because property owners are unable to pay taxes on real property situated within the State of Arkansas, forcing them thereby to lose their lands, an emergency is found and declared to exist, and this act, being necessary for the immediate preservation of the public peace, health, and safety, shall take effect and be in full force from and after the date of its passage and approval.”

Acts 1971, No. 710, § 3: Apr. 28, 1971. Emergency clause provided: “It is hereby found and determined by the General Assembly that under the present laws of this State it is the responsibility of the circuit or chancery court clerk in each county to collect the delinquent taxes or assessments of improvement districts in the county; that this places an unjust burden on the clerks in the respective counties and that this responsibility of the collection of such delinquent taxes and assessments should be vested in the tax collector in each county and that this Act is designed to correct this situation. Therefore, an emergency is hereby declared and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

14-86-1001. Authority and responsibility generally.

  1. All authority and responsibility vested in the circuit clerk or chancery clerk for the collection of delinquent taxes or assessments of improvement districts are transferred to and vested in the tax collector in each county.
  2. The tax collector shall perform all actions in the matter of collecting delinquent taxes and assessments of improvement districts required of the clerks and shall be entitled to such fees therefor as is provided by law for these clerks.
  3. All laws in effect in this state relating to the collection of delinquent taxes or assessments of improvement districts which refer to the collection of these taxes by the circuit or chancery clerk shall be deemed to be applicable to the tax collector in each county.

History. Acts 1971, No. 710, § 1; A.S.A. 1947, § 20-1155.

14-86-1002. Remission of delinquent penalties.

The board of improvement of any levee, drainage, street improvement, and other districts, however created, may remit, by resolution duly adopted of a general character applicable alike to all lands and property assessed in the districts for taxes, all that part of any penalty which has accrued upon delinquent tax assessments, in excess of ten percent (10%) for these tax delinquencies.

History. Acts 1941, No. 268, § 1; A.S.A. 1947, § 20-1130.

14-86-1003. Relief from penalties in apportioned assessment.

  1. On any acreage tract of land embraced in any municipal improvement district located in the municipality, where two (2) or more property owners own different portions of such an acreage tract, the benefits to which were assessed as a unit or with one (1) assessment of benefits for the entire tract, and a majority of the property owners desire to pay their just part of the assessment of benefits but cannot pay it because the assessment is on the entire tract and not apportioned to each parcel of the tract as owned, any one of the respective owners may apply to a court of competent jurisdiction for an apportionment of the assessment, making the other owners of the tract embraced in the unit assessment defendants.
  2. Upon payment of the apportioned assessment as fixed by the court, the person so paying shall be relieved of all penalties accruing prior to the apportionment of the assessment as fixed by the court.

History. Acts 1941, No. 268, § 1; A.S.A. 1947, § 20-1130.

Subchapter 11 — Delinquent Improvement Taxes and Assessments Generally

Effective Dates. Acts 1921, No. 534, § 6: approved Mar. 26, 1921. Emergency clause provided: “This act being necessary for the preservation of the public peace, health and safety, an emergency is hereby declared, and this act shall take effect and be enforced from and after its passage.”

Acts 1931, No. 227, § 2: effective on passage.

Acts 1939, No. 163, § 4: approved Feb. 28, 1939. Emergency clause provided: “This act being necessary for the immediate preservation of the public health and security, an emergency is hereby declared, and this act shall be in force and effect from and after its passage.”

14-86-1101. Definition.

As used in this subchapter, unless the context otherwise requires, “real property” means all property assessed for the improvement within the district including lands, town lots, railroads, tramroads, bridges, and any other real property.

History. Acts 1921, No. 534, § 5; Pope's Dig., § 13892; A.S.A. 1947, § 20-1129.

14-86-1102. Applicability.

The provisions of this subchapter do not apply to the counties of Hot Spring, Boone, Lawrence, Faulkner, White, Sevier, and Stone.

History. Acts 1921, No. 534, § 5; Pope's Dig., § 13892; A.S.A. 1947, § 20-1129.

14-86-1103. Lists of delinquent realty.

  1. All taxes or assessments levied on the real property in any road improvement, drainage, levee, or fencing district in this state, to which this subchapter applies, if not paid on or before October 1 of the year in which it is due, as required by law, shall be delinquent. The tax collector of the county in which the property is situated shall, in those districts where it is his duty to do so, on or before October 15, make out a list of the real property so delinquent.
  2. The list shall include:
    1. The name of the supposed owner as it appears on the tax books;
    2. A description of the property; and
    3. The amount of the tax due thereon.
  3. Before the list is filed, the collector shall make an affidavit that it is true and correct.
  4. A separate list shall be made for each improvement district.

History. Acts 1939, No. 163, § 1; A.S.A. 1947, § 20-1124.

Case Notes

Applicability.

The provisions of this section were held not to affect any rights already fixed under acts creating improvement districts. Miller Levee Dist. v. Evers, 200 Ark. 53, 137 S.W.2d 915 (1940).

Names of Supposed Owners.

Where, in foreclosure sale, this section was complied with in that the name of supposed owner was given as “appears on the tax books,” it was not necessary that investigation be undertaken to determine supposed owner as was formerly required. Leonard v. Thompson, 228 Ark. 136, 306 S.W.2d 869 (1957).

Where the purchaser of land recorded his deed, but neglected to have the land assessed for taxation, notice to the purchaser's grantor of foreclosure for delinquent drainage district taxes was sufficient. Sadler v. Hill, 243 Ark. 247, 419 S.W.2d 298 (1967).

Cited: Isaack v. Davis, 254 Ark. 115, 491 S.W.2d 784 (1973).

14-86-1104. Recording of delinquent list.

  1. The county tax collector shall record the list in a well-bound book kept by him for that purpose preceding the list by a caption, which may be in substance as follows:
    1. Then shall be copied the delinquent list filed by the collector together with the names of the supposed owners and the certificate of the collector and the date of the filing, and the collector shall add the penalty prescribed by law to the tax.
      1. The collector shall append at the foot of the list a certificate that it is a true copy of the list filed by the collector.
        1. The certificate shall show the date of filing and recording of the delinquent list.
        2. The certificate shall be conclusive evidence that the list was filed and recorded as stated in the certificate.

“The lands, town lots, railroads, tramroads, and bridges returned delinquent in (stating corporate name of the district) for the nonpayment of taxes due said district for the year 19 , together with tax, penalty and cost chargeable thereon are contained and described in the following list.”

Click to view form.

History. Acts 1921, No. 534, § 2; Pope's Dig., § 13889; A.S.A. 1947, § 20-1126.

14-86-1105. Redemption of land on delinquent list.

  1. Anyone desiring to redeem any of the delinquent lands, town lots, railroads, tramroads, bridges, or other real property included in the list shall apply to the county tax collector.
  2. Upon the payment of the tax, penalty, interest, and costs, the collector shall issue a redemption certificate in triplicate, a copy of which shall be sent to the secretary of the board of improvement of the district. A copy shall also be sent to the treasurer of the district, or the depository, if one. The collector shall immediately remit the amount of the tax, penalty, and interest to the treasurer of the depository of the district and shall mark opposite the tract by whom redeemed and the date of the payment.
  3. For his services on filing and recording the list, the collector shall be entitled to the sum of ten cents (10¢) per tract, which shall be added as cost and, if not redeemed by the owner, paid by the district.
  4. If the lands are redeemed, the collector shall be entitled to the sum of one dollar ($1.00) per tract as a redemption fee, which sum, with the cost of recording, shall be paid by the party redeeming and charged as cost against the tract.

History. Acts 1921, No. 534, § 3; 1931, No. 227, § 1; Pope's Dig., § 13890; A.S.A. 1947, § 20-1127.

Case Notes

Payment of Tax, Etc.

By depositing the proper amount within the statutory period, an owner perfects his right to redeem the property, and he is not required to notify anyone of the redemption payment, nor is any court proceeding necessary to effect redemption. Killian v. Lincoln Nat'l Life Ins. Co., 201 Ark. 1137, 148 S.W.2d 1085 (1941).

Redemption Fee.

A fee of $1.00 for redemption of lands sold for improvement taxes must be treated as one of the fees which is required to be collected and paid into the county treasury. Swearingen v. State ex rel. Benton County, 160 Ark. 326, 254 S.W. 537 (1923).

Statute of Limitations.

Action by former owner of land sold for payment of levee district assessment who redeemed from the sale within the period allowed by law for writ of assistance to obtain possession from purchasers from district prior to expiration of redemption period was held not subject to statute of limitations as to judicial sales. Lincoln Nat'l Life Ins. Co. v. Smith, 205 Ark. 1023, 172 S.W.2d 241 (1943).

Cited: Locust Creek Drainage Dist. v. Seay, 190 Ark. 739, 81 S.W.2d 835 (1935).

14-86-1106. Suit for collection of taxes.

    1. When the board of improvement or anyone authorized by law to file suit for the collection of delinquent taxes desires to commence a suit, they shall obtain a certified copy of the list from the county tax collector, which shall be filed with the complaint and taken as a part thereof.
    2. For making the list, the county tax collector shall be entitled to ten cents (10¢) per tract, which shall be taxed as costs in the suit.
  1. No suit for the collection of delinquent taxes shall be brought after three (3) years from date they became delinquent.

History. Acts 1921, No. 534, § 4; Pope's Dig., § 13891; A.S.A. 1947, § 20-1128.

Cross References. Applicability of 1949 provisions, § 14-90-102.

Case Notes

Delinquent Taxes.

Taxes are delinquent when the taxpayer fails to pay taxes on or before the day fixed by law for payment. Tallman v. Board of Comm'rs, 185 Ark. 851, 49 S.W.2d 1039 (1932).

Annual assessments of a drainage district were due and payable from the first Monday in January of each year to and including April 10, and became delinquent thereafter. Tarleton Drainage Dist. v. American Inv. Co., 186 Ark. 20, 52 S.W.2d 738 (1932).

Judgments.

Where realty owner paid levee district taxes and received the regular redemption certificate, but the clerk inadvertently failed to make the endorsement in the delinquent record so that a default decree of foreclosure resulted, on motion to set the judgment aside, it was held that there was an unavoidable casualty or misfortune which prevented the owner from appearing or defending the suit. Wilder v. Harris, 205 Ark. 341, 168 S.W.2d 804 (1943).

Limitation of Actions.

This section contemplates that suit shall be brought within the time fixed. Western Clay Drainage Dist. v. Wynn, 179 Ark. 988, 18 S.W.2d 1035 (1929).

Although the limitations of § 14-86-1208 would not apply to an improvement district, the identical provisions of this section would. Davidson v. Hartsfield, 250 Ark. 1072, 468 S.W.2d 774 (1971).

—Interest.

Question of whether interest on assessment is barred by limitations need not be considered in proceeding by receiver to procure instructions of chancery court to permit receiver to apply to county court for order of collection, but such question may be raised in a suit for the collection of such interest. Greer v. Blocker, 218 Ark. 259, 236 S.W.2d 68 (1951).

Cited: Isaack v. Davis, 254 Ark. 115, 491 S.W.2d 784 (1973).

Subchapter 12 — Delinquent Improvement Taxes and Assessments in Counties with a Population Exceeding 75,000

Effective Dates. Acts 1925, No. 85, § 10: approved Feb. 16, 1925. Emergency clause provided: “This act being necessary for the preservation of the public peace, health and safety an emergency is hereby declared, and this act shall take effect and be in force from and after its passage.”

Acts 1937, No. 107, § 2: approved Feb. 17, 1937. Emergency clause provided: “This act shall take effect and be in force from and after its passage.”

14-86-1201. Definitions.

As used in this subchapter, unless the context otherwise requires:

  1. “Real property” means all property assessed for the improvement within the district including lands, town lots, railroads, tramroads, bridges, and any and all other real property embraced in the district;
  2. “Per tract” means each several and separate tract, piece, or parcel of real property listed upon the delinquent list furnished by the collector;
  3. “Collector” means any and all persons, by whatever official title known, or whether known by an official title or not, who shall have in his custody or possession the tax books for the purpose of collecting taxes as set out in § 14-86-1205.

History. Acts 1925, No. 85, § 7; A.S.A. 1947, § 20-1141.

14-86-1202. Applicability.

    1. The provisions of this subchapter shall apply only to those counties which have a population as shown by the last federal census in excess of seventy-five thousand (75,000) inhabitants.
      1. The tax collecting officer of every improvement district as set out in this subchapter which embraces lands situated within a county having a population in excess of seventy-five thousand (75,000) inhabitants, but the principal office of which or the office of the tax collecting officer of which is located in a county not having a population in excess of seventy-five thousand (75,000) inhabitants, shall, within sixty (60) days and in the manner required in this subchapter of the tax collecting officers of districts the boundaries of which are located wholly within counties having a population in excess of seventy-five thousand (75,000) inhabitants, make and certify to the county tax collector of a county having a population in excess of seventy-five thousand (75,000) inhabitants lists showing the lands situated within the last named county the taxes payable upon which to the district shall have become delinquent.
      2. The last named collector shall be subject to the same fines and damages as set out in § 14-86-1203.
  1. The provisions of this subchapter shall not be applicable to improvement districts which embrace lands situated within three (3) or more counties.

History. Acts 1925, No. 85, § 8; 1937, No. 107, § 1; A.S.A. 1947, § 20-1142.

Case Notes

Limitation of Actions.

Although the limitations of § 14-86-1208 would not apply to an improvement district, the identical provisions of § 14-86-1106 would. Davidson v. Hartsfield, 250 Ark. 1072, 468 S.W.2d 774 (1971).

14-86-1203. Penalty — Damages.

    1. Any collector of taxes as designated in § 14-86-1205 who shall fail or refuse to make, certify, and file with the county tax collector the delinquent lists named in this section, within the time provided in this subchapter, shall be deemed guilty of a misdemeanor and upon conviction shall be fined in the sum of ten dollars ($10.00).
    2. Each day intervening between the expiration of the time allowed the collector for filing the list and the actual filing of it shall constitute a separate offense and shall be punishable as provided in this section.
    1. The district may recover of and from the collector or his bondsmen, or both, any amount of damages it may sustain by reason of the failure or refusal of the collector to comply with the provisions of this subchapter. However, in no event shall any such district recover an amount exceeding the total amount of the taxes so delinquent, together with its costs expended.
    2. Any court of competent jurisdiction in the county shall have jurisdiction to fix the damages, if any, sustained by any district as set out in this section.

History. Acts 1925, No. 85, § 3; A.S.A. 1947, § 20-1137.

14-86-1204. Time when taxes delinquent.

In case of any district, as set out in § 14-86-1205 where no time is fixed at which the taxes therein become delinquent, if not paid, they shall become delinquent at the expiration of ninety (90) days from the date they become due and payable.

History. Acts 1925, No. 85, § 2; A.S.A. 1947, § 20-1136.

Case Notes

Applicability.

This specific statute, dealing with when special improvement taxes became delinquent, was applicable to a municipal water improvement district's foreclosure action against a taxpayer because the District never adopted the general taxes provision of § 26-36-201 by an ordinance; thus, a portion of the District's foreclosure action was time barred. Wilkins & Assocs. v. Vimy Ridge Mun. Water Improvement Dist. No. 139, 373 Ark. 580, 285 S.W.3d 193 (2008).

14-86-1205. Lists of delinquent realty.

    1. All taxes or assessments not delinquent but levied on the real property of this state in any road improvement district, fencing district, levee district, bridge district, drainage district, sewer district, street improvement district, sidewalk district, water district, light district, gas district, or any other district organized for the purpose of making any character of local improvements authorized by law, whether the district is situated within the corporate limits of a city or town, or otherwise, if not paid within the time provided for the payment thereof, shall be delinquent. The city collector, town collector, or any other person by whatever official title known, except the ex officio collector of the county where such property is situated, having in his custody or possession tax books for the purpose of collecting the taxes in any district, shall make out and file a list of all real property of the county becoming delinquent. This shall be done within sixty (60) days after any delinquency. This list shall be filed with the county tax collector of the county in which the property is situated, upon a form to be approved by the county tax collector.
    2. The ex officio collector of the county shall, in all respects, be subject to and shall comply with the provisions of this subchapter except that he shall file with the county tax collector the delinquent lists required by this subchapter within one hundred (100) days from the date the taxes become delinquent in his office.
  1. The list shall be preceded with a caption, which may be in substance, as follows:
  2. The list shall include:
    1. The name of the supposed owner as it appears on the tax books;
    2. A description of the property; and
    3. The amount of tax due thereon.
    1. On the list, the collector shall append his affidavit that it is true and correct.
    2. The affidavit shall also state the time the list became delinquent.
  3. The taxes shown delinquent by the list shall be designated as the delinquent taxes for the year in which they became payable.
  4. A separate list shall be made for each improvement district.
  5. On the margin of the lists, provisions shall be made for the extension of penalty and cost and for the redemption of the property.

“The lands, town lots, railroads, tramroads, bridges and other property returned delinquent in (stating the corporate name of the district) for the nonpayment of taxes due said district for the year 19 with the tax chargeable thereon, are contained and described in the following list:”

Click to view form.

History. Acts 1925, No. 85, § 1; A.S.A. 1947, § 20-1135.

Case Notes

Cited: Martin v. Board of Comm'rs, 190 Ark. 747, 81 S.W.2d 414 (1935).

14-86-1206. Filing of lists.

  1. Upon the filing of any list as provided in § 14-86-1205, the county tax collector shall immediately add to the list the penalty and cost chargeable on each separate tract or parcel of ground, extending opposite thereof the total tax penalty and cost.
    1. At the foot of the list, the collector shall append a certificate, duly signed, showing the time of the filing of the list.
    2. The certificate shall be taken as conclusive evidence that the list was filed as stated therein.

History. Acts 1925, No. 85, § 4; A.S.A. 1947, § 20-1138.

14-86-1207. Redemption of land on delinquent list.

  1. Anyone desiring to redeem any of the delinquent lands, town lots, railroads, tramroads, bridges, or other property included in the list shall apply to the county tax collector.
  2. Upon the payment of the tax penalty and cost, the collector shall issue a redemption certificate in triplicate, a copy of which shall be furnished to the board of commissioners of the district and a copy to be retained by the collector, and he shall mark opposite the tract by whom redeemed and the date of the redemption.
  3. The collector shall immediately remit the amount of the tax and penalty so collected to the treasurer, or depository of the district, or other person authorized to receive it.
  4. For his services in filing the list and extending the tax, penalty, and cost thereon, and in issuing certificate of redemption, the collector shall be entitled to the sum of fifty cents (50¢) per tract, which shall be added at the time of the filing of the list and shall be charged as costs against the district and paid into the general revenue fund of the county, when collected, as other costs.

History. Acts 1925, No. 85, § 5; A.S.A. 1947, § 20-1139.

A.C.R.C. Notes. A proviso to this section provided that this section and § 14-86-1208 would apply to all property previously certified to the clerk of the chancery court pursuant to Act 534 of 1921 (§§ 14-86-1101, 14-86-1102, 14-86-1104—14-86-1106, 14-86-1208) and then remaining unredeemed.

14-86-1208. Suit for collection of taxes.

    1. When the board of improvement or anyone authorized by law to file suit for the collection of these delinquent taxes desires to commence a suit, they shall obtain a certified copy of the remaining delinquent property on the list from the county tax collector, which shall be filed with the complaint, within ten (10) days thereafter, and taken as part thereof.
    2. The collector making the list shall be entitled to ten cents (10¢) per tract payable in advance, which shall be taxed as costs in the suit.
    1. The chancery court of the county, by proper order entered in the case, may permit the collector to furnish the list to the board or may permit anyone authorized by law to file suit for the collection of the delinquent taxes, without requiring payment in advance.
    2. In this event, the collector's fees for making and certifying the list shall be taxed as costs in the case and become payable out of any fund collected from the delinquent property.
  1. No suit for the collection of the delinquent taxes shall be brought after three (3) years from the date the taxes become delinquent.

History. Acts 1925, No. 85, § 6; A.S.A. 1947, § 20-1140.

Publisher's Notes. See “Publisher's Notes” to § 14-86-1207.

Cross References. Applicability of 1949 provisions, § 14-90-102.

Case Notes

Limitation of Actions.

Although the limitations of this section would not apply to an improvement district, the identical provisions of § 14-86-1106 would. Davidson v. Hartsfield, 250 Ark. 1072, 468 S.W.2d 774 (1971).

Subchapter 13 — Delinquent Improvement Taxes and Assessments in Counties with a Population Exceeding 150,000

Effective Dates. Acts 1941, No. 449, § 5: became law without Governor's signature, Apr. 3, 1941. Emergency clause provided: “It is hereby ascertained and hereby declared that due to the fact that delinquent assessments exist against many tracts and parcels of land in the State where the assessment amounts to less than the Chancery Clerk's costs for certificate of redemption, which unduly penalizes the owners of property and frequently results in their failure to pay assessments or effect redemption, thus depriving various improvement districts of funds necessary for maintenance of the improvement constructed by the districts, that the want of funds for maintaining paving of paving districts is a hazard to the traveling public and the want of funds for maintaining sanitary sewers of sewer districts is detrimental to the public health, therefore, the immediate operation of this act is essential for the protection of the public health and safety. An emergency is therefore declared and this act shall take effect and be in force from and after its passage.”

Acts 1975, No. 879, § 2: Apr. 4, 1975. Emergency clause provided: “It is hereby found and determined by the General Assembly that under the present laws of the State, it is the responsibility of certain County Collectors to collect delinquent taxes and assessments of improvement districts and that the sum allowed as a fee for such collection is wholly inadequate and is putting an unjust burden on the counties doing such collection. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

14-86-1301. Applicability.

This subchapter shall only apply to counties having a population in excess of one hundred fifty thousand (150,000) inhabitants, according to the most recent federal census.

History. Acts 1941, No. 449, § 4; A.S.A. 1947, § 20-1134.

14-86-1302. Construction.

The provisions of this subchapter shall not be construed to affect any other costs which may have been or may be assessed by the chancery court in an action filed therein for the collection of delinquent improvement district assessments.

History. Acts 1941, No. 449, § 3; A.S.A. 1947, § 20-1133.

14-86-1303. Redemption of property.

  1. Any person, firm, or corporation having an interest in any property which has been certified by the county tax collector's office prior to the enactment of this section for delinquent assessments in any improvement district and which property has not been sold for the delinquent assessments prior to the enactment of this section may pay the assessments or redeem the property within the time and in the manner provided by law. However, one (1) receipt or certificate of redemption shall be issued to the person, firm, or corporation embracing all of the property in the improvement district on which assessments are then paid or redemption then made by the person, firm, or corporation, regardless of the number of calls describing the property or the number of years of delinquency.
    1. For the receipt or certificate of redemption, the collector shall be entitled to a fee equal to ten percent (10%) of the combined tax and penalty collected.
    2. On all delinquent improvement district property certified by the collector's office subsequent to the enactment of this section, the collector's cost for redemption shall be a fee equal to ten percent (10%) of the combined tax and penalty collected on each call or twenty-five cents (25¢) per call, whichever is greater.

History. Acts 1941, No. 449, § 2; 1975, No. 879, § 1; A.S.A. 1947, § 20-1132.

Case Notes

Redemption Fee.

This section is not the exaction of a tax but instead deals with a redemption fee; it is a method of statutory reimbursement to the collector for the additional expense which a landowner causes by failing to pay his assessment on time. Keith v. Barrow-Hicks Extensions of Water Improv. Dist. No. 85, 275 Ark. 28, 626 S.W.2d 951 (1982).

A common sense interpretation of this section dictates that the collection of the delinquency fee be had from the delinquent landowner and not from the improvement district; it is clearly inequitable to require the other property owners in the districts who have paid their assessments on time to bear the costs of collecting from the delinquent owner, which is the result if the districts pay 10 percent of the combined assessment and penalty or fee to the collector. Keith v. Barrow-Hicks Extensions of Water Improv. Dist. No. 85, 275 Ark. 28, 626 S.W.2d 951 (1982).

14-86-1304. Fee for recording abolished.

The fee of the chancery clerk for filing and recording the delinquent lists of assessments of any improvement district certified to the chancery clerk's office by any person, board, or officer is abolished.

History. Acts 1941, No. 449, § 1; A.S.A. 1947, § 20-1131.

Subchapter 14 — Notice to Sell Land for Nonpayment of Improvement District Assessment

Cross References. Applicability of 1949 provisions, § 14-90-102.

Levee and improvement districts, taxes, alternate procedure for extension, collection and payment, § 14-120-401 et seq.

14-86-1401. Purpose.

The purpose of this subchapter is to ensure that owners of land receive notice of the filing of suit to sell lands for nonpayment of improvement district assessments, in those instances in which the law requires the filing of such a suit, and notice of the sale of lands for nonpayment of improvement district assessments, in those instances in which the law does not require the filing of suit before such a sale.

History. Acts 1979, No. 628, § 2; A.S.A. 1947, § 20-1157.

14-86-1402. Construction.

Nothing in this subchapter shall be construed to modify or limit the rights of landowners to redeem lands sold for nonpayment of improvement district assessments as previously provided by law.

History. Acts 1979, No. 628, § 2; A.S.A. 1947, § 20-1157.

14-86-1403. Notice required.

At least twenty (20) days prior to selling or filing suit to sell any lands for nonpayment of improvement district assessments, the person charged with making the sale or filing the suit shall mail, by certified mail, return receipt requested, to the owner of the lands at his last known address a notice:

  1. Describing the delinquent lands;
  2. Specifying the year of delinquency;
  3. Stating the amount necessary for redemption; and
  4. Advising the owner that he may redeem the lands at any time within twenty (20) days of the date the notice is mailed.

History. Acts 1979, No. 628, § 1; A.S.A. 1947, § 20-1156; Acts 1991, No. 92, § 2.

Case Notes

Constitutionality.

Where notices were given the landowner, whose property was being sold to satisfy a lien created by his failure to pay an improvement district assessment, by publication and by mail as required by § 14-90-1408 and this section, respectively, the notice given the landowner comported with due process. Fulmer v. Board of Comm'rs, 286 Ark. 419, 692 S.W.2d 246 (1985).

Rules of Procedure.

The notice provisions of ARCP 4 do not apply in an action by the board of commissioners to sell a landowner's property to satisfy a lien created by his failure to pay an improvement district assessment. Fulmer v. Board of Comm'rs, 286 Ark. 419, 692 S.W.2d 246 (1985).

14-86-1404. Costs of notice.

The costs of giving notice to owners shall be charged to the delinquent lands and collected either from the owners when the lands are redeemed or from the purchaser when the lands are sold.

History. Acts 1979, No. 628, § 3; A.S.A. 1947, § 20-1158.

14-86-1405. Sale of lands.

  1. If the lands are not redeemed within twenty (20) days after the notice is mailed, the person charged with making the sale or filing the suit may sell the lands or file suit to sell the lands.
  2. If the notice is mailed to the owner prior to filing suit to sell the lands, it shall not be necessary to mail a second notice to the owner prior to the sale of the lands.

History. Acts 1979, No. 628, § 1; A.S.A. 1947, § 20-1156.

Cross References. Redemption of real property to be sold for taxes, § 26-37-301 et seq.

Subchapter 15 — Right of Redemption of Delinquent Lands Sold in Improvement Districts

Cross References. Applicability of 1949 provisions, § 14-90-102.

Effective Dates. Acts 1915, No. 43, § 2: approved Feb. 9, 1915. Emergency declared.

Acts 1925, No. 359, § 3: effective on passage.

Research References

Ark. L. Rev.

A Commentary on State and Improvement District Tax Sales, 8 Ark. L. Rev. 386.

14-86-1501. Right of purchaser to possession.

  1. In all sales made by commissioners under decrees of chancery courts for foreclosure of delinquent special assessments in drainage, levee, and bridge districts, improvement districts in cities and towns, and in all special assessment districts of every kind, the court may approve the sale subject to the right of redemption.
  2. Immediately upon approval, the purchaser shall have the right to possession of the lands and premises so sold and may have process therefor.
  3. The purchaser, while so in possession, shall not be accountable for rents upon redemption. However, the purchaser shall not dispose of nor injure the timber nor minerals nor fixtures upon the property until the expiration of the right of redemption and shall not recover in case of redemption for improvements upon the property.

History. Acts 1915, No. 43, § 1; C. & M. Dig., §§ 5642, 5643; Pope's Dig., §§ 7329, 7330; A.S.A. 1947, § 20-1143.

Case Notes

In General.

This section was repealed by Acts 1933, No. 129, but the repealing act was held void. W. B. Worthen Co. v. Kavanaugh, 295 U.S. 56, 55 S. Ct. 555, 79 L. Ed. 1298 (1935).

Quieting Title.

While this section gives improvement district right of possession and right to ask for writ of assistance, where it has not done so and original owner has not relinquished possession, transferee of quit claim deed of district has no possession on which to base action to quiet title. Calvert v. Haley, 218 Ark. 752, 238 S.W.2d 664 (1951).

14-86-1502. [Repealed.]

Publisher's Notes. This section, concerning right of redemption generally, was repealed by Acts 1995, No. 801, § 2. The section was derived from Acts 1915, No. 43, § 1; C. & M. Dig., § 5644; A.S.A. 1947, § 20-1144.

14-86-1503. Time for redemption in certain districts.

All persons shall have the right to redeem from the sale for taxes of road, drainage, levee, or other improvement districts at any time within two (2) years from the date when the lands are sold by the commissioner making the sale, and not thereafter.

History. Acts 1925, No. 359, § 2; Pope's Dig., § 13898; A.S.A. 1947, § 20-1145.

Publisher's Notes. A proviso to this section provided that this section would not apply to property that was delinquent or forfeited prior to when it went into effect.

Case Notes

Constitutionality.

Though when drainage district was formed statute fixed at five years the time within which property may be redeemed from delinquent tax sale, subsequent reduction by the legislature of the redemption period was held not a violation of the contract clause of the Constitution. State Nat'l Bank v. Morthland, 196 Ark. 346, 118 S.W.2d 266 (1938).

In General.

This section constitutes a reasonable extension of the time for redemption. Harris v. Little Red River Levee Dist., 188 Ark. 975, 69 S.W.2d 877 (1934).

The legislature may enlarge the period of redemption or extend the time in which redemption may be effected at any time during the redemption period as fixed by a former statute where the sale has been to the improvement district and not to a private individual. Hopkins v. Fields, 202 Ark. 890, 154 S.W.2d 22 (1941).

Applicability.

This section has no applicability to sales for delinquent assessments in municipal improvement districts. W.B. Worthen Co. v. Delinquent Lands, 189 Ark. 723, 75 S.W.2d 62 (1934), rev'd, 295 U.S. 56, 55 S. Ct. 555, 79 L. Ed. 1298 (1935).

This section does not apply to municipal districts since the phrase “or other improvement districts” has reference to other improvement districts of the same kind as those specifically enumerated. Hopkins v. Fields, 202 Ark. 890, 154 S.W.2d 22 (1941).

Bridge district, not a municipal improvement district, was of the class of improvement districts to which this section applies, and two years were, therefore, allowed from the date when lands were sold for nonpayment of the bridge assessments, in which to redeem. Hopkins v. Fields, 202 Ark. 890, 154 S.W.2d 22 (1941).

Bar of Claims.

Where the statutory bar was complete under this section, a subsequent amendment of § 18-61-101 did not revive the claim since the rights of the parties had become vested under the statute before amendment. Davidson v. Hartsfield, 250 Ark. 1072, 468 S.W.2d 774 (1971).

Payment of Taxes.

To redeem from drainage and levee taxes, a purchaser of the state's tax title must pay such improvement taxes accruing both before and after the state's tax title was acquired. Harris v. Little Red River Levee Dist., 188 Ark. 975, 69 S.W.2d 877 (1934).

Cited: Roberts v. Owen, 183 Ark. 6, 34 S.W.2d 752 (1931).

Subchapter 16 — Enforcement of Improvement District Tax Lien When Land Forfeited to State for General Taxes

Cross References. Applicability of 1949 provisions, § 14-90-102.

Effective Dates. Acts 1939, No. 126, § 2: approved Feb. 24, 1939. Emergency clause provided: “It is ascertained and hereby declared that great quantities of land in improvement districts have been forfeited to the State and will be forfeited hereafter, and by reason of the inability of the local improvement districts to enforce the payment of their assessments or taxes while the title is in the State they are unable to perform their functions; drainage districts are unable to keep their ditches clean, resulting in the spread of diseases; road districts are unable to keep their roads in repair; bridge districts are unable to maintain their bridges in safe condition; levee districts are unable to keep their levees in a condition to resist flood water, so that immediate operation of this act is essential to the public health and safety, and an emergency is therefore declared, and this act shall take effect and be in force from and after its passage.”

Acts 1939, No. 329, § 5: effective on passage.

Research References

Ark. L. Rev.

Memorandum Relative to Certain Aspects of Tax Title, 6 Ark. L. Rev. 167.

A Commentary on State and Improvement District Tax Sales, 8 Ark. L. Rev. 386.

14-86-1601. Right of district to enforce.

Where any lands have been forfeited or sold to the state for the nonpayment of general taxes and any of the lands may be located in any improvement district of any kind or class, the district may, nevertheless, proceed as provided by law to enforce its lien for delinquent taxes or assessments, subject to the paramount lien of the state, without waiting until the lands are redeemed from or sold by the state.

History. Acts 1939, No. 329, § 1; A.S.A. 1947, § 20-1146.

Publisher's Notes. As to validation of prior delinquent tax sales, Acts 1939, No. 329, § 2.

Case Notes

District Taxes.

The right of an improvement district to enforce collection of special assessments is suspended while the title to the land is apparently in the state under a forfeiture for delinquent general taxes, and whether the sale to the state is valid or invalid is immaterial. Davidson v. Crockett, 200 Ark. 488, 140 S.W.2d 695 (1940).

Land sold to the state after confirmation of improvement district's purchase on foreclosure for previous taxes is not relieved of district taxes while owned by the state; only the right of enforcement is suspended until return to private ownership. Terry v. Drainage Dist. No. 6, Miller County, 206 Ark. 940, 178 S.W.2d 857 (1943).

Sale of Lands.

Where lands have forfeited for failure to pay betterments assessed them and there has been foreclosure and purchase by improvement district, public policy forbids a member of the board of commissioners to purchase such lands. Mitchell v. Parker, 201 Ark. 177, 143 S.W.2d 1114 (1940).

Superior Title.

This section is curative and retroactive, but while it confers the right on the improvement district tax purchaser to redeem from the state, it does not confer such right to redeem from one to whom the state has conveyed its title. Watson v. Anderson, 201 Ark. 809, 147 S.W.2d 28 (1941).

Purchaser of land from the state following forfeiture and sale for general taxes, prior to accrual of right of redemption under this section acquired superior title to that of purchaser from levee district following foreclosure of lien for levee taxes. Watson v. Anderson, 201 Ark. 809, 147 S.W.2d 28 (1941).

In suit by donee of land forfeited to the state and thereafter sold to drainage district under decree foreclosing its tax lien, even if foreclosure sale to district was void because the title to the land was then in the state, grantee of district, who had also acquired the title of the original owner, had right to intervene and defend suit brought against his tenant. Stow v. Burkes, 202 Ark. 1147, 155 S.W.2d 568 (1941).

Where sale to levee district on foreclosure of the district's lien was confirmed more than a year before the state's tax lien attached, but issuance of deed was delayed awaiting the expiration of the two-year period of redemption, during this period the district was the owner of the equitable title and this ownership was sufficient to prevent the lien of the state from attaching; therefore land was not subject to sale to the state for state and county taxes, and deed from state was without validity. Duncan v. Board of Dirs., 206 Ark. 1130, 178 S.W.2d 660 (1944).

Title derived from improvement district prevails over tax title from state where district institutes foreclosure proceedings prior to date on which tax lien is affixed. Terry v. Starks, 221 Ark. 870, 256 S.W.2d 545 (1953).

14-86-1602. Redemption from state.

  1. Where any lands have been foreclosed on by any improvement district for delinquent taxes or assessments due it and the title to any of the lands may have been or is in the state, the purchaser at any sale for the improvement district taxes shall have the right to redeem the land from the state.
  2. In case a receiver shall be appointed by the chancery court for any such lands being foreclosed on by a district, the receiver may, out of the first moneys coming into his hands from rentals, or a sale thereof, redeem the lands from the state.
  3. The purchaser or receiver shall have a lien thereon for the sums so paid the state.

History. Acts 1939, No. 329, § 3; A.S.A. 1947, § 20-1147.

14-86-1603. Rights of purchaser.

Upon the expiration of the period allowed for redemption from foreclosure sales, the purchaser shall have the right to the possession of the lands without accountability for rents or damages until the state exercises its paramount authority.

History. Acts 1939, No. 126, § 1; A.S.A. 1947, § 20-1148.

Publisher's Notes. Acts 1939, No. 329, which was enacted at the same session of the General Assembly as this section is deemed to have superseded the former first part of this section, as it covers the same subject matter. See §§ 14-86-1601, 14-86-1602.

Case Notes

Applicability.

This section is not retroactive or curative in its provisions. Davidson v. Crockett, 200 Ark. 488, 140 S.W.2d 695 (1940).

Title to Lands.

Title to lands claimed by a drainage district by purchase at a foreclosure sale presented a question of law as to whether commissioner's deeds to the district conveyed good title or whether the district's foreclosure for taxes and deeds were ineffective because of the sale of the land for delinquent state taxes. It was held that the question could only be settled by the decisions of the state court, and where such decisions had not fully settled the question, the federal district court ought not to have undertaken to decide the controversy over title to the land. Johnson v. Drainage Dist., 126 F.2d 23 (8th Cir. 1942).

Subchapter 17 — Refund of Money in Improvement District Land Sale Forfeiture upon Failure of Title

14-86-1701. Refund if sale set aside.

All improvement districts in this state are directed to make refunds of amounts received by a district for the purchase of lands acquired by it by foreclosure of the district's lien for taxes, or assessments levied by it upon lands located therein, when the title shall fail and the sale by which the district has acquired the lands is cancelled and set aside by a court of competent jurisdiction.

History. Acts 1953, No. 38, § 1; A.S.A. 1947, § 20-1149.

14-86-1702. Amount of refund.

No refund shall be made under this subchapter except the amount in excess of the sum legally due the district at the time of the purchase.

History. Acts 1953, No. 38, § 2; A.S.A. 1947, § 20-1150.

14-86-1703. Value of items removed.

Any claimant for refund of purchase money shall be chargeable with the value of any timber, minerals, or other thing of value sold or removed from the land by the purchaser.

History. Acts 1953, No. 38, § 3; A.S.A. 1947, § 20-1151.

Subchapter 18 — Bond of Depositories for Improvement Districts

Effective Dates. Acts 1927, No. 182, § 3: effective on passage.

Acts 1979, No. 1001, § 3: Apr. 17, 1979. Emergency clause provided: “It is hereby found and determined by the General Assembly that the current requirement that depositories furnish bond for the entire amount of improvement district funds on deposit is obsolete and unnecessary in that the Federal Deposit Insurance Corporation insures a certain amount of said funds and that this Act is necessary to avoid duplicating the guaranty of the Federal Deposit Insurance Corporation. Therefore, an emergency is hereby declared to exist, and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

14-86-1801. Penalty.

Any officer or commissioner of any improvement district of this state failing, refusing, or neglecting to comply with the provisions of this subchapter shall be deemed guilty of a misdemeanor and on conviction fined in any sum not less than one thousand dollars ($1,000) nor more than ten thousand dollars ($10,000).

History. Acts 1927, No. 182, § 2; A.S.A. 1947, § 20-1111.

14-86-1802. Deposit requirements.

    1. All commissioners, treasurers, and other officers of all road, drainage, levee, bridge, street, sewer, paving, and all other improvement districts of this state, both rural and urban, having in their charge the moneys and funds of the districts, shall, before depositing them in any bank, trust company, savings association, or with any other person or company, require of the depository a good and sufficient bond signed by some surety company authorized to do business in the State of Arkansas, conditioned for the apt and full and complete payment of all funds so deposited, together with interest thereon.
    2. The commissioners may decrease the amount of the bond by an amount not to exceed the amount of funds deposited which are fully insured by the Federal Deposit Insurance Corporation.
  1. The depository may, in lieu of the bond, deposit United States bonds or notes of the State of Arkansas, or the bonds of any legally organized school, levee, drainage, or other improvement district of the State of Arkansas, which bonds and all proceedings concerning the issuing of them have been approved as collateral security by some reputable attorney who is recognized by the bond buyers of the United States as such. The bonds shall be deposited in escrow with some bank other than the depository of the funds of the district to be delivered to the district only on failure of the depository of the funds to repay the funds to the district or to pay them on the order of the district.
  2. The premium for the bond may be paid out of the funds so deposited or may be paid by the depository, it being intended that it shall be discretionary with the commissioners of the district in the matter of the payment of the premiums on the bonds.

History. Acts 1927, No. 182, § 1; 1979, No. 1001, § 1; A.S.A. 1947, § 20-1110.

Case Notes

Construction.

This section should be strictly construed for the benefit of stockholders of the bank and the protection of depositors. Arkansas-Louisiana Hwy. Imp. Dist. v. Taylor, 177 Ark. 440, 6 S.W.2d 533 (1928); Arkansas County Rd. Imp. Dist. v. Taylor, 185 Ark. 293, 47 S.W.2d 27 (1932).

Applicability.

This section has no applicability to school districts. Merchants' & Planters' Bank v. McGehee Special School Dist., 179 Ark. 805, 18 S.W.2d 372 (1929). See also Merchants' & Planters' Bank v. Hammock, 178 Ark. 746, 12 S.W.2d 421 (1929).

Depository Bonds.

Depository bonds given by bank to street improvement district are statutory bonds. American Bonding Co. v. Board of Street Improv. Dist., 187 Ark. 300, 59 S.W.2d 605 (1933).

Depository bonds must be construed like other contracts, and if it can do so, court must ascertain intention of parties; the court may examine not only the bond itself but also the statute and all facts connected with the making of the bond. American Bonding Co. v. Board of Street Improv. Dist., 187 Ark. 300, 59 S.W.2d 605 (1933).

The statutory bond required of a depository covers all the moneys and funds of an improvement district which the depository has in its charge, including all funds deposited in the name of the district's collector. American Bonding Co. v. Board of Street Improv. Dist., 187 Ark. 300, 59 S.W.2d 605 (1933).

Failure to Comply.

Treasurer of levee district who had not complied with this section was not entitled to credit for a deposit lost in the failure of the bank. Jefferson Bank v. Little Red River Levee Dist., 186 Ark. 1048, 57 S.W.2d 805 (1933).

Pledges by Depositories.

This section does not authorize depository banks to pledge their assets other than the bonds and notes of the state mentioned. Arkansas-Louisiana Hwy. Imp. Dist. v. Taylor, 177 Ark. 440, 6 S.W.2d 533 (1928).

Bank may not pledge its bills receivable to secure deposits. Arkansas-Louisiana Hwy. Imp. Dist. v. Taylor, 177 Ark. 440, 6 S.W.2d 533 (1928).

This section does not authorize the pledge of school warrants. Arkansas County Rd. Imp. Dist. v. Taylor, 185 Ark. 293, 47 S.W.2d 27 (1932).

Subchapter 19 — Surplus Funds in Improvement Districts

Effective Dates. Acts 1927, No. 122, § 5: Mar. 7, 1927.

14-86-1901. Disposition of surplus required.

Wherever any excess or surplus remains in any special district in this state created for road improvement, levee, bridge, or drainage construction after the improvement has been completed and all costs and expenses thereof, including all principal and interest of bonds issued, have been paid and the excess or surplus is not needed for the special improvement or for the maintenance thereof; wherever the special improvement district has been abandoned and an excess or surplus remains therein after the payment of all legal and preliminary costs and expenses thereof; or wherever any special taxing funds exist for the payment of outstanding bonds or refunding bonds or other legal purposes and all expenses and costs of the special taxing fund, including the principal and interest of all outstanding bonds, have been paid or a sum sufficient to care for all outstanding bonds or interest outstanding has been created and collected through taxation, or otherwise, and remains in a sinking fund to meet the interest and bonds as they mature, and in addition thereto an excess or surplus remains in the special fund and is not needed nor required to meet the interest and outstanding bonds or other legal cost or expense of the special taxing fund, in each and all of the special districts or special taxing funds, the excess or surplus so remaining as indicated in this section shall, by appropriate court orders, be passed to and become a part of the general revenue funds of the counties where the special districts or special taxing funds exist.

History. Acts 1927, No. 122, § 1; A.S.A. 1947, § 20-1112.

14-86-1902. Distribution of funds to counties.

  1. Wherever any of the special districts or special taxing funds lie and exist wholly in one (1) county, then the county court shall have jurisdiction of the excess or surplus funds and may order them transferred to the general revenue fund of the county.
  2. Wherever the special taxing districts or special taxing funds lie in two (2) or more counties, then any chancellor in whose district any one (1) or more of the counties lie shall have jurisdiction of the excess or surplus so remaining and may, upon petition of any county judge or any taxpayer of any of the counties, order the excess and surplus so remaining to be paid and transferred to the treasurer of the respective counties in the proportion that the whole fund was contributed by the respective counties. The treasurers shall credit the funds so received to the general revenue funds of their respective counties.

History. Acts 1927, No. 122, § 2; A.S.A. 1947, § 20-1113.

14-86-1903. Right to contest transfer.

  1. Any citizen or taxpayer shall have the right to contest the transfer of the excess or surplus so remaining by showing that it, or a part thereof, may be required to meet the legal costs, expenses, interest, or bonds of the special district or special taxing funds.
  2. Any part of the surplus or excess so remaining that is shown to be needed or required for such legal purposes shall not be transferred from the special district or special taxing funds.

History. Acts 1927, No. 122, § 3; A.S.A. 1947, § 20-1114.

Publisher's Notes. As to ratification of prior transfers of surplus funds, see Acts 1927, No. 122, § 4.

Subchapter 20 — Audits in Nonmunicipal Improvement Districts

Effective Dates. Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

14-86-2001. Authority generally.

  1. Upon a petition signed by not less than twenty-five percent (25%) of the owners of real property in any road, bridge, or other improvement district in this state outside of any incorporated city or town, the county judge of the county in which the district lies is authorized and empowered, and is directed within sixty (60) days after the filing of the petition, to enter into a contract with the Department of Finance and Administration.
  2. The department is empowered to make such a contract with the county judge for auditing all books, accounts, and transactions of the commissioners of a district and, insofar as they pertain to the district, the accounts of the collectors or any other persons who have handled any of funds of the district.
  3. If the services of the department cannot be obtained, the county judge is authorized and directed to employ some other competent certified public accountant to make such an audit.
  4. An audit shall begin with the formation of the district or the close of the last previous audit, as the petitioners desire, and close with a date specified in the petition.

History. Acts 1923, No. 605, § 1.

14-86-2002. Districts in different counties.

In all cases where improvement districts may be composed of territory lying in two (2) or more counties, an audit shall be made upon an order of the county judge of each of the counties in which any portion of the territory of the district lies upon a petition signed by twenty-five percent (25%) of all owners of real property in the entire district.

History. Acts 1923, No. 605, § 4.

14-86-2003. Scope of examination.

    1. The Secretary of the Department of Finance and Administration or any auditors appointed by him or her shall have power to make a thorough examination into the affairs of a district specified in § 14-86-2001 when called upon by the county judge.
      1. The secretary shall have access to all records, books, accounts, papers, and documents concerning the district undergoing such an audit.
      2. The secretary is also authorized to:
        1. Examine, under oath, any officer, assistant, clerk, or other person touching the matters he or she may be authorized to inquire and examine; and
        2. Summon and, by attachment, compel the attendance of any person to testify, under oath, before him or her in relation to the affairs of the district.
  1. The failure or refusal of any person to appear before the secretary or to deliver to him or her any books, records, or other documents shall subject the person to a fine of twenty-five dollars ($25.00) for each day the person refuses or fails to comply with the request.

History. Acts 1923, No. 605, § 2; 2019, No. 910, § 3379.

Amendments. The 2019 amendment substituted “Secretary” and “secretary” for “Director” and “director” throughout the section; and made stylistic changes.

14-86-2004. Reports of findings.

  1. A full and complete report of the findings of an audit under this subchapter, together with a synopsis of the indebtedness of the district, shall be filed in the office of the Department of Finance and Administration.
    1. A copy of the report of the findings of the audit shall be filed in the office of the county clerk of the county in which the audit is made and shall be there kept as a public document.
    2. If the district is composed of territory lying in two (2) or more counties, a copy of the report of the audit shall be filed in the office of the county clerk of all of the counties.
  2. A copy of the report of the findings of the audit shall also be delivered to the commissioners of the district.

History. Acts 1923, No. 605, § 3.

14-86-2005. Payment of expenses generally.

  1. An itemized statement of the cost of an audit under this subchapter for each district shall be presented by the county judge to the commissioners of the district for which any audit has been made.
  2. It is the duty of the commissioners to allow this claim and pay it in like manner as other expenses of the district are paid.

History. Acts 1923, No. 605, § 5.

14-86-2006. Payment by county.

In cases where an audit is ordered to be made in any district that has been abolished or in any district which has no funds with which to pay for the audit, the county judge may order such audits to be made at the expense of the county.

History. Acts 1923, No. 605, § 6.

14-86-2007. Exception.

This subchapter shall not apply to Sebastian County.

History. Acts 1923, No. 605, § 6.

Subchapter 21 — Improvement Districts and Protection Districts Procedures when County Collector Used for Collection of Assessments

14-86-2101. Legislative intent.

This subchapter applies to all improvement districts or protection districts organized under Arkansas law that use the county collector for collection of improvement district assessments or protection district assessments unless otherwise noted.

History. Acts 2011, No. 210, § 1.

14-86-2102. Annual improvement district or protection district filing.

  1. By March 1 of each year or upon the creation of an improvement district or protection district, an improvement district or protection district that uses or intends to use the county collector for collection of improvement district assessments or protection district assessments shall:
      1. File an annual report with the county clerk in any county in which a portion of the improvement district or protection district is located.
      2. The annual report shall be available for inspection and copying by assessed landowners in the district.
      3. The county clerk shall not charge any costs or fees for filing the annual report.
      4. The improvement district or protection district shall deliver a filed copy of the annual report to the county collector within five (5) days of filing; and
    1. The annual report shall contain the following information as of December 31 of the current calendar year:
      1. Identification of the primary statute under which the improvement district or protection district was formed;
      2. A general statement of the purpose of the improvement district or protection district;
      3. A list of contracts, identity of the parties to the contracts, and obligations of the improvement district or protection district;
        1. Any indebtedness, including bonded indebtedness, and the reason for the indebtedness.
        2. The stated payout or maturity date of the indebtedness, if any, shall be included.
        3. The total existing delinquent assessments and the party responsible for the collection;
      4. Identification of the improvement district or protection district commissioners and contact information;
      5. The date, time, and location for any scheduled meeting of the improvement district or protection district for the following year;
      6. The contact information for the improvement district or protection district assessor;
      7. Information concerning to whom the county treasurer is to pay improvement district or protection district assessments;
      8. An explanation of the statutory penalties, interest, and costs;
      9. The method used to compute improvement district or protection district assessments; and
      10. A statement itemizing the income and expenditures of the improvement district or protection district, including a statement of fund and account activity for the improvement district or protection district.
    1. An improvement district or protection district that does not comply with subsection (a) of this section commits a violation punishable by a fine of not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000) for each offense.
    2. A fine recovered under subdivision (b)(1) of this section shall be deposited into the county clerk's cost fund.
    1. On or before December 31, the improvement district or protection district shall file its list of special assessments for the following calendar year with the county clerk.
      1. After filing the list of special assessments, the improvement district or protection district shall deliver a copy of the filed list of special assessments to the preparer of the tax books.
      2. If the county collector is not the designated preparer of the tax books, the improvement district or protection district shall deliver a copy of the filed list of special assessments to the county collector.
    2. The list of special assessments shall contain:
      1. A list of each parcel with an assessment levied against it within the improvement district or protection district; and
      2. The contact information for the improvement district assessor or protection district assessor.
    3. The list of fees shall not include assessments on parcels that otherwise would not appear on the tax books for the following year.
    4. After the December 31 deadline to file the list of special assessments, the county collector may reject an assessment submitted by the improvement district or protection district for inclusion in the list of special assessments.

History. Acts 2011, No. 210, § 1.

14-86-2103. County treasurers — Retention of fees.

  1. A county treasurer may retain up to five percent (5%) of all remittances to a fire district in reserve for up to sixty (60) days.
  2. Upon approval of the governing body of a fire district, a county treasurer may retain up to ten percent (10%) of all remittances to a fire district in reserve until final settlement is made in December of each year.

History. Acts 2011, No. 210, § 1.

14-86-2104. Delinquent levies.

    1. A county collector may certify all delinquent levies to an improvement district or protection district for collection after January 1 of each year.
      1. A county collector shall accept a delinquent levy after certification to an improvement district or protection district if the payor is paying:
        1. In person; and
        2. By separate check from the payment of ad valorem taxes.
      2. The county collector shall forward the delinquent levy to the improvement district or protection district.
        1. The county collector is not required to provide a receipt for the payment of the delinquent levy.
        2. The payor is responsible for obtaining a receipt for payment of the delinquent levy from the improvement district or protection district.
  1. A county collector who continues to collect and remit delinquent levies to the improvement district or protection district after certification shall impose penalties against the payor on behalf of the improvement district or protection district.

History. Acts 2011, No. 210, § 1.

14-86-2105. District levies not to be certified for delinquency.

The county collector shall not certify an improvement district levy or protection district levy to the Commissioner of State Lands for delinquency.

History. Acts 2011, No. 210, § 1.

Subchapter 22 — Financial Requirements and Minimum Standards of Districts

14-86-2201. Definition.

  1. As used in this subchapter, “district” means any improvement district in Arkansas, including without limitation:
    1. Levee, drainage, road, irrigation, watershed, consolidated utility, and river improvement districts formed or operating under:
      1. Section 14-86-101 et seq.;
      2. Section 14-87-101 et seq.;
      3. Section 14-88-101 et seq.;
      4. Section 14-89-101 et seq.;
      5. Section 14-90-101 et seq.;
      6. Section 14-91-101 et seq.;
      7. Section 14-92-101 et seq.;
      8. The Property Owners' Improvement District Law, § 14-93-101 et seq.;
      9. The Municipal Property Owner's Improvement District Law, § 14-94-101 et seq.;
      10. Section 14-95-101 et seq.;
      11. Section 14-114-101 et seq.;
      12. The Interstate Watershed Cooperation Act, § 14-115-101 et seq.;
      13. The Arkansas Irrigation, Drainage, and Watershed Improvement District Act of 1949, § 14-117-101 et seq.;
      14. Section 14-118-101 et seq.;
      15. Section 14-119-101 et seq.;
      16. Section 14-120-101 et seq.;
      17. Section 14-121-101 et seq.;
      18. Section 14-122-101 et seq.;
      19. Section 14-123-201 et seq.;
      20. Section 14-124-101 et seq.;
      21. The Rural Development Authority Act, § 14-188-101 et seq.;
      22. The General Consolidated Public Utility System Improvement District Law, § 14-217-101 et seq., and serving less than thirty thousand (30,000) residents;
      23. Section 14-218-101 et seq.;
      24. Section 14-249-101 et seq.;
      25. Section 14-250-101 et seq.; and
      26. Section 14-251-101 et seq.; or
    2. Levee, drainage, road, irrigation, watershed, and river improvement districts created by a special act of the General Assembly.
  2. As used in this subchapter, “district” does not include levee, drainage, road, irrigation, watershed, consolidated utility, and river improvement districts formed or operating under:
    1. The Water Authority Act, § 4-35-101 et seq.;
    2. The Regional Water Distribution District Act, § 14-116-101 et seq.;
    3. The Conservation Districts Law, § 14-125-101 et seq.;
    4. Section 14-184-101 et seq.;
    5. Section 14-187-101 et seq.;
    6. The General Consolidated Public Utility System Improvement District Law, § 14-217-101 et seq., and serving more than thirty thousand (30,000) residents;
    7. Section 14-282-101 et seq.;
    8. Section 14-283-101 et seq.;
    9. Section 14-284-101 et seq.;
    10. Section 14-285-101 et seq.;
    11. Section 14-286-101 et seq.;
    12. Section 14-287-101 et seq.;
    13. Section 14-316-101 et seq.;
    14. Section 14-317-101 et seq.;
    15. Section 14-318-101 et seq.;
    16. Section 14-319-101 et seq.;
    17. Section 14-320-101 et seq.;
    18. Section 14-321-101 et seq.;
    19. Section 14-322-101 et seq.;
    20. Section 14-386-101 et seq.; or
    21. Section 14-387-101 et seq.

History. Acts 2019, No. 708, § 1.

14-86-2202. Record retention and public examination of records.

  1. A district covered under this subchapter shall retain all financial records, bank statements, and contracts relating to the bonds, notes, or other evidences of indebtedness undertaken by the district during the existence of the district and for five (5) years following dissolution of the district.
  2. Any person who negligently violates any of the provisions of this subchapter is guilty of a Class C misdemeanor for each violation.
  3. Any person who purposely violates any of the provisions of this subchapter is guilty of a Class B misdemeanor for each violation.
  4. The Freedom of Information Act of 1967, § 25-19-101 et seq., applies to records retained under this subchapter.

History. Acts 2019, No. 708, § 1.

14-86-2203. Subsequent indebtedness.

    1. After the initial creation, bonding, and indebtedness of a district, but before subsequent bonds, notes, or indebtedness is incurred under the authority of this subchapter, a majority of the owners of record in the district, including no less than a majority of the total number of real property owners in the area affected if the majority of owners owns more than half of the acreage affected, shall be required to authorize the issuance of bonds or the incurring of notes or indebtedness by a vote called by the governing body of the district for that purpose.
    2. Subdivision (a)(1) of this section does not apply to:
      1. The Interstate Watershed Cooperation Act, § 14-115-101 et seq.;
      2. The Arkansas Irrigation, Drainage, and Watershed Improvement District Act of 1949, § 14-117-101 et seq.;
      3. Section 14-118-101 et seq.;
      4. Section 14-120-101 et seq.;
      5. Section 14-121-101 et seq.;
      6. Section 14-122-101 et seq.;
      7. Section 14-123-201 et seq.;
      8. Section 14-124-101 et seq.; or
      9. A district seeking an increase in fees, taxes, or assessments without the issuance of bonds, liens, or other indebtedness.
  1. The governing body shall not require a vote if:
    1. The indebtedness is necessary to fulfill directives of a regulatory governmental agency;
    2. The district has one thousand (1,000) or more owners of record;
    3. The bonds, notes, or indebtedness does not include the assessed property as specific collateral for the bonds, notes, or indebtedness; or
    4. The indebtedness is incurred for the refunding of outstanding bonds, notes, or indebtedness of the district for the purpose of reducing debt service and creating economic savings.
  2. Before incurring the indebtedness, the secretary or other administrative officer of the governing body shall:
    1. Give notice of the required action and improvement by publication one (1) time per week for two (2) weeks in a newspaper published and having a general circulation in the county; and
    2. Transmit a copy of the notice by certified mail to each owner of real property within the boundaries of the district.

History. Acts 2019, No. 708, § 1.

14-86-2204. Nominal assessments.

    1. All lands shall be assessed as to value and taxed within the boundaries of the district, and no exclusions or nominal assessments apply except under subsection (b) of this section.
    2. Subdivision (a)(1) of this section does not apply to:
      1. The Interstate Watershed Cooperation Act, § 14-115-101 et seq.;
      2. The Arkansas Irrigation, Drainage, and Watershed Improvement District Act of 1949, § 14-117-101 et seq.;
      3. Section 14-118-101 et seq.;
      4. Section 14-120-101 et seq.;
      5. Section 14-121-101 et seq.;
      6. Section 14-122-101 et seq.;
      7. Section 14-123-201 et seq.;
      8. Section 14-124-101 et seq.; or
      9. A district seeking an increase in fees, taxes, or assessments without the issuance of bonds, liens, or other indebtedness.
  1. At its option, any state agency or commission may choose to be excluded from any newly formed district.

History. Acts 2019, No. 708, § 1.

14-86-2205. Minimum standards for water and sewer improvements made by districts — Rules.

  1. The Department of Health shall promulgate rules that establish minimum standards for water and sewer improvements made by districts under this subchapter.
    1. The department shall promulgate rules necessary to implement this section.
      1. When adopting the initial rules to implement this section, the final rule shall be filed with the Secretary of State for adoption under § 25-15-204(f):
        1. On or before January 1, 2020; or
        2. If approval under § 10-3-309 has not occurred by January 1, 2020, as soon as practicable after approval under § 10-3-309.
      2. The department shall file the proposed rule with the Legislative Council under § 10-3-309(c) sufficiently in advance of January 1, 2020, so that the Legislative Council may consider the rule for approval before January 1, 2020.

History. Acts 2019, No. 708, § 1.

Chapter 87 Reorganization or Consolidation of Improvement Districts

Effective Dates. Acts 1927, No. 162, § 10: approved Mar. 18, 1927. Emergency clause provided: “It being necessary, therefore for the preservation of the public peace, health and safety, an emergency is declared and this act shall take effect and be in force from and after its passage.”

Research References

ALR.

Right of one governmental subdivision to challenge annexation proceedings by another such subdivision. 17 A.L.R.5th 195.

14-87-101. Purpose.

This chapter is not intended to repeal or modify any existing law but to furnish other and better methods than those existing for refunding the indebtedness of any reorganizing improvement districts.

History. Acts 1927, No. 162, § 10; Pope's Dig., § 11331; A.S.A. 1947, § 20-1010.

14-87-102. Definitions.

As used in this chapter, unless the context otherwise requires:

  1. “Taxing district” means any road, drainage, levee, or other local improvement district in which proceedings for the refunding of the indebtedness or the reorganization of the district are instituted;
  2. “Subsidiary district” means any local improvement district whose indebtedness, or a part thereof, is assumed or absorbed by a taxing district;
  3. “Original district” means any local improvement district, all or a part of whose territory is embraced in a subsidiary district, or a part of whose indebtedness is being assumed by a taxing district.

History. Acts 1927, No. 162, § 1; Pope's Dig., § 11322; A.S.A. 1947, § 20-1001.

14-87-103. Jurisdiction over proceedings.

  1. The proceedings prescribed by any special or general law for the refunding of any improvement district bonds or the reorganization of any improvement district may be begun and had in the chancery court of the proper county the same as in any county or circuit court provided by law under which the district was originally created.
  2. Chancery courts are given complete jurisdiction to hear and determine these matters.

History. Acts 1927, No. 162, § 7; Pope's Dig., § 11328; A.S.A. 1947, § 20-1007.

14-87-104. Records and transcripts.

  1. Where an improvement district is located in more than one (1) county, records of the proceedings shall be made in each of the counties whose lands are embraced in the district.
  2. Transcript of records imposing liens on any lands properly certified shall be recorded in the proper records of mortgage in the county where the land affected is located.

History. Acts 1927, No. 162, § 8; Pope's Dig., § 11329; A.S.A. 1947, § 20-1008.

14-87-105. Implementation and expenses.

  1. The court in which the proceedings prescribed in this chapter are had shall provide such facilities and instrumentalities for effecting the purposes of the district as may be deemed advisable.
  2. The necessary expenses shall be determined by the court and shall be borne by the taxing district involved.

History. Acts 1927, No. 162, § 9; Pope's Dig., § 11330; A.S.A. 1947, § 20-1009.

14-87-106. Reorganization of districts.

    1. Proceedings instituted under any general or special law for refunding the indebtedness of any improvement district may include the reorganization of the governing body of the district.
    2. The reorganization shall be effected by the same court or board as is given the authority and jurisdiction under the law to provide for the refunding of the bonds of the district.
    1. The membership of the governing body may be reduced or increased as may be deemed advisable.
      1. Pending the election of any additional members, if the law creating the district prescribes that they be elected, additional members shall be appointed by the court or board where the proceedings are had and shall be made in compliance with the petition of the petitioners prosecuting the proceedings.
      2. It is mandatory upon any court or board to appoint the additional members named in any petition of fifty-one percent (51%) or more of the owners in assessed value of the real estate of the district.
  1. Any reorganized board shall have the same power, be given the same rights, have imposed upon it the same duties, and be selected in the same manner as was the old board.
  2. The reorganization of the district may include:
    1. The change of the name of the district;
    2. The method of collecting taxes;
    3. The keeping of records;
    4. The handling of funds of the district; and
    5. The doing of anything that would not operate to impair the outstanding obligations of the district.

History. Acts 1927, No. 162, § 2; Pope's Dig., § 11323; A.S.A. 1947, § 20-1002.

14-87-107. Consolidation of districts.

  1. Where lands of a road, levee, drainage, or other local improvement district are included, in whole or in part, in another district whose indebtedness is being refunded, the first district may become a subsidiary district of the second or taxing district insofar as related to those lands of the first district which may be embraced or included in the second district.
  2. Consolidation may be effected at the same time, in the same manner, and in the same proceeding as is the refunding of the indebtedness of the taxing district.

History. Acts 1927, No. 162, § 3; Pope's Dig., § 11324; A.S.A. 1947, § 20-1003.

14-87-108. Refunding bonds of consolidated district.

  1. Where a subsidiary district is established as provided in § 14-87-107, the indebtedness of the subsidiary district may be refunded in the same manner as is provided for the refunding of the indebtedness of the taxing districts.
  2. The governing body of the taxing district may take up all or a part of the indebtedness of the subsidiary district, including such annual maturities of principal or interest as may be allotable to the lands of the subsidiary district included in the taxing district.
  3. In order to enable the taxing district to pay such indebtedness, it may issue and sell the refunding bonds or certificates of indebtedness either of the taxing or subsidiary district.

History. Acts 1927, No. 162, § 4; Pope's Dig., § 11325; A.S.A. 1947, § 20-1004.

14-87-109. Allocation and assumption of debt.

  1. Such part of the indebtedness, principal or interest, of the original district growing out of the cost of the local improvement as has been allocated, or may be allocable, to the lands of the subsidiary district, or may, from time to time, be so allocable to and chargeable against the lands of the subsidiary district in the way of special improvement taxes, may be assumed and paid by the taxing district from a fund produced by the sale of its bonds or certificates of indebtedness.
  2. In the assumption of the debts of the subsidiary district, the taxing district shall be subrogated with respect to liens, pledges, and such other provisions relating to securities for the debt assumed as belonged to the original district of which the subsidiary district was a part.

History. Acts 1927, No. 162, § 5; Pope's Dig., § 11326; A.S.A. 1947, § 20-1005.

14-87-110. Payment of overdue taxes.

  1. On such terms as is deemed advisable and as may meet the approval of the board or court before which the proceedings are had, the taxing district may assume and pay any overdue special improvement taxes of any lands embraced in the subsidiary district from the fund produced by the sale of certificates of indebtedness or of refunding bonds of the taxing district.
  2. The taxes so paid, including penalties, cost of redemption, or any other necessary cost incurred, must be allocated to each tract of land properly chargeable with it, and proper proceedings must be had by which the taxing district may be given sufficient lien or may become subrogated to all rights of existing lienors or pledgees to the end that the taxing district may have a first lien on the lands whose obligation it has assumed for all special taxes paid by it.

History. Acts 1927, No. 162, § 6; Pope's Dig., § 11327; A.S.A. 1947, § 20-1006.

Chapter 88 Municipal Improvement Districts Generally

Research References

Am. Jur. 3 Am. Jur. 2d, Adv. Poss., § 270.

C.J.S. 87 C.J.S., Towns., § 36.

Case Notes

In General.

The municipal improvement district statutes were not repealed or abrogated by § 14-235-201 et seq., the sewer revenue bond statute, since the statutes do not cover the same field and are not repugnant. Ray v. City of Mt. Home, 228 Ark. 885, 311 S.W.2d 163 (1958).

Improvement districts are agents of the state and derive their limited powers and duties of a public and governmental nature by legislative delegation through the taxing power of the state, and constitute a separate and distinct species of taxing districts as contradistinguished from counties, municipal corporations and school districts. Quapaw Cent. Bus. Imp. Dist. v. Bond-Kinman, Inc., 315 Ark. 703, 870 S.W.2d 390 (1994).

Subchapter 1 — General Provisions

14-88-101. Enforcing duty to perform.

Any duty required to be performed by this act may, at any time, be enforced by mandamus at the suit of any person or board interested in it.

History. Acts 1881, No. 84, § 26, p. 161; C. & M. Dig., § 5742; Pope's Dig., § 7383; A.S.A. 1947, § 20-131.

Publisher's Notes. As to applicability of statutory provisions pertaining to municipal improvement districts before and since July 1, 1952, see §§ 14-90-102, 14-90-103.

Meaning of “this act”. Acts 1881, No. 84, codified as §§ 14-88-101, 14-88-202, 14-88-204, 14-88-302, 14-88-303, 14-88-30514-88-308, 14-88-311, 14-88-403, 14-88-502, 14-89-201, 14-89-1001, 14-89-1002, 14-90-101, 14-90-201, 14-90-302, 14-90-403, 14-90-701, 14-90-80114-90-805, 14-90-902, 14-90-903, 14-90-916, 14-90-100114-90-1003, 14-90-1005, 14-90-1006, 14-90-110114-90-1106, 14-90-1108, 14-90-120114-90-1204, 14-90-1302, 14-90-1303, 14-91-101, 14-91-10414-91-107, 14-91-201, and 14-235-30114-235-305.

Case Notes

Jurisdiction.

Pursuant to this section, the circuit court had subject-matter jurisdiction to hear a petition for a writ of mandamus where the property owner was challenging the city's decision on whether to create an improvement district. City of N. Little Rock v. Pfeifer, 2017 Ark. 113, 515 S.W.3d 593 (2017).

Subchapter 2 — Creation of Districts

Cross References. Levy of tax and issuance of bonds for preliminary expenses, § 14-86-701 et seq.

Preambles. Acts 1929, No. 26 contained a preamble which read:

“Whereas, There are improvement districts in cities and towns in this State, organized on petition of what was supposed to be a majority of the property owners of the district, and which have made or begun this improvement for which they were organized, but whose organization was void, and the majority of whose owners desire to pay the honest debt incurred by the district for the improvement which they enjoy; and

“Whereas, the same is likely to occur in the future….”

Effective Dates. Acts 1913, No. 125, § 9: approved Mar. 3, 1913. Emergency declared.

Acts 1923 (1st. Ex. Sess.), No. 20, § 3: approved Oct. 13, 1923. Emergency clause provided: “This act being necessary for the immediate preservation of the public peace, health and safety, an emergency is hereby declared to exist, and this act shall take effect and be in force from and after its passage.”

Acts 1929, No. 64, § 23: approved Feb. 28, 1929. Emergency clause provided: “It is ascertained and hereby declared that by reason of the inability under the present laws to extend water mains and repair water plants there is great danger of conflagration, that by reason of the inability to extend electric light plants there is great danger to the public peace and safety, owing to the darkness of the streets, and that by reason of the inability to extend and repair sewers there is great danger to the public health, and that for these reasons it is immediately necessary that this act should go into operation, and it is therefore declared that an emergency exists, and this act shall be in force and effect from and after its passage.”

Acts 1935, No. 145, § 8: approved Mar. 20, 1935. Emergency clause provided: “It is ascertained and hereby declared that by reason of the fact that heretofore it has been necessary to obtain the consent of only a bare majority in value of the owners of real property in order to organize a local improvement district, the organization of such districts all over the State of Arkansas has been in the past greatly abused, advantage has been taken of the owners of property therein and burdensome taxes have been laid upon property owners without any actual increase in property values as compensation therefor, many of such districts having been organized for promotion purposes; that many property owners throughout the State are in danger of losing their said property by reason of their inability to pay the said local improvement taxes; and that unless legislation is immediately enacted making it necessary to obtain the consent of more than a majority in value of said property owners the practice of organizing such districts and the abuse thereof will be continued, all to the serious detriment and injury of owners of property. It is, therefore, found and declared that an emergency exists, and this act shall be in force and effect from and after its passage.”

Acts 1938 (Ex. Sess.), No. 22, § 2: approved Apr. 1, 1938. Emergency clause provided: “It is hereby ascertained and declared that the passage of this act is essential in the making of public improvements throughout the State of Arkansas by which grade crossings may be eliminated and the overflow of public highways may be prevented, and highways may be made safer in other ways and that therefore there is an urgent need that this act go into immediate operation, and that its immediate operation is essential to the public safety. An emergency is therefore declared, and it is hereby provided that it shall take effect and be in force immediately upon its passage.”

Acts 1941, No. 310, § 3: approved Mar. 26, 1941. Emergency clause provided: “It is hereby ascertained and declared that the passage of this act is essential in the making of public improvements throughout the State of Arkansas by which grade crossings may be eliminated and the overflow of public highways may be prevented, and highways may be made safer in other ways and that therefore there is an urgent need that this Act go into immediate operation, and that its immediate operation is essential to the public safety. An emergency is therefore declared, and it is hereby provided that it shall take effect and be in force immediately upon its passage.”

Acts 1967, No. 163, § 7: Feb. 28, 1967. Emergency clause provided: “It has been found and determined by the General Assembly that in many cities and towns in the State of Arkansas the streets and highways are subject to heavy traffic by motor vehicles, that on account of parking motor vehicles in the streets and the lack of facilities for off-street parking of motor vehicles, vehicular traffic in the said streets and highways is made dangerous to drivers and to pedestrians, and that on account thereof the streets and highways are made hazardous to the property and lives of the residents of the State of Arkansas; that it is necessary in order to protect the property and lives of the residents of the State of Arkansas to provide adequate facilities for the off-street parking of motor vehicles and that only by the passage of this Act and giving it immediate effect can the lives and property of the residents of the State of Arkansas be protected. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1968 (2nd Ex. Sess.), No. 4, § 3: May 29, 1968. Emergency clause provided: “It has been found and it is hereby declared by the General Assembly that numerous local improvements, to be effected by municipal improvement districts in this State, will be in need of maintenance and repair and that only by the immediate operation of this Act may this necessary maintenance and repair be carried out. Therefore, an emergency is declared to exist and this Act being necessary for the preservation of the public peace, health and safety shall take effect and be in full force from and after its passage and approval.”

Acts 1969, No. 290, § 7: Mar. 21, 1969. Emergency clause provided: “It has been found and it is hereby declared by the General Assembly that the laws governing the organization of municipal improvement districts previously required the petition of a majority in value of the property owners in the affected territory, that this requirement was later increased to two-thirds in value, and that the requirements of existing laws obstruct the organization of many municipal improvement districts which would otherwise be organized for the construction or acquisition of improvements essential to the health and welfare of the inhabitants of this State. Therefore, an emergency is declared to exist, and this Act being necessary for the preservation of the public peace, health and safety shall take effect and be in force from and after its passage and approval.”

14-88-201. Applicability.

  1. The provisions of § 14-88-202 shall extend to any municipal improvement district formed or created.
  2. The formation and creation of these districts is authorized, in whole or in part, outside of any city of the first or second class or incorporated town.

History. Acts 1941, No. 310, § 1A; A.S.A. 1947, § 20-102.

Publisher's Notes. As to applicability of statutory provisions pertaining to municipal improvement districts before and since July 1, 1952, see §§ 14-90-102, 14-90-103.

A proviso to this section provided for the extension of municipal improvement districts to include certain Works Progress Administration (W.P.A.) projects.

Case Notes

“Any Improvement District.”

In action challenging validity of sewer improvement district on ground that district embraced lands lying within and outside city, fact that emergency clause of this section permitting establishment of districts outside of city limits mentioned only necessity of improvement of grade crossing did not mean that other items in the statute were omitted or had been deleted; therefore words “any improvement district” apply to sewer districts, and establishment of sewer improvement districts was valid. Smart v. Gates, 234 Ark. 858, 355 S.W.2d 184 (1962).

Outside City Limits.

As legislature is vested with all powers not prohibited by the Arkansas Constitution and the Constitution requires only that assessments be ad valorem, uniform, and with consent of a majority in value of the affected property holders, the legislature could authorize municipality to tax lands lying outside city limits by assessment of benefits on the lands in sewer improvement district. Smart v. Gates, 234 Ark. 858, 355 S.W.2d 184 (1962).

14-88-202. Purposes for which created.

The council of any city of the first or second class or any incorporated town may assess all real property within the city or town, or within any district thereof, for the purpose of opening, grading, or otherwise improving streets and alleys, including viaducts and underpasses either within the boundaries of an improvement district, or beyond the boundaries and beyond the limits of the city or town if the property in the district will be benefited thereby, including the acquisition of rights-of-way by purchase or the exercise of the power of eminent domain as provided in § 14-91-104 and the payment of damages for the taking or injuring of property resulting from the making of any such improvement, if the work or construction is done or paid for by the federal government or any of its agencies or by the State of Arkansas or any other public body, or to pay for any local improvement of a public nature, including sewer systems, theretofore made, by which the property within the district has benefited; for the purpose of paying the principal of and interest on any bonds at any time authorized and issued by any district under and in the manner and for the purposes specified in this section; for the purpose of buying existing sewer systems, or the construction of sewers, or constructing facilities for the off-street parking of vehicles, including without limitation constructing, reconstructing, widening, extending, and maintaining and operating off-street parking facilities, or constructing sidewalks, sidewalk overhead covers, benches, recreational areas, and other facilities pertaining to the construction, maintenance, and utilization thereof; for the purpose of the making of any other local improvement of a public nature in the manner set forth in this subchapter; and for the purpose of maintaining, repairing, and operating any improvements.

History. Acts 1881, No. 84, § 1, p. 161; 1889, No. 18, § 1, p. 17; C. & M. Dig., § 5647; Acts 1927, No. 68, § 1; Pope's Dig., § 7279; Acts 1938 (1st Ex. Sess.), No. 22, § 1; 1941, No. 310, § 1; 1967, No. 163, § 1; 1968 (2nd Ex. Sess.), No. 4, § 1; A.S.A. 1947, § 20-101; Acts 2013, No. 563, § 1.

Amendments. The 2013 amendment inserted “including without limitation constructing, reconstructing, widening, extending, and maintaining and operating off-street parking facilities” and made stylistic changes.

Case Notes

Constitutionality.

This section giving the city council authority to assess for local improvements is constitutional. City of Little Rock v. Board of Improvs., 42 Ark. 152 (1883).

Assessments.

—In General.

Special assessments for local improvements can be made only on account of peculiar benefits which the improvements bestow upon the property assessed. Rector v. Board of Improv., 50 Ark. 116, 6 S.W. 519 (1887); Kirst v. Street Improv. Dist. No. 1, 86 Ark. 1, 109 S.W. 526 (1908); Board of Imp. v. Pollard, 98 Ark. 543, 136 S.W. 957 (1911).

The theory upon which improvement district taxes are sustained is that the proposed improvements will enhance the value of the land sought to be taxed, and the tax is imposed upon this enhanced value, called betterment. Ragsdale v. Cunningham, 201 Ark. 848, 147 S.W.2d 20 (1941).

—Improvements Allowed.

Property may be assessed to construct waterworks or electric light plants. Crane v. City of Siloam Springs, 67 Ark. 30, 55 S.W. 955 (1899); Wilson v. Blanks, 95 Ark. 496, 130 S.W. 517 (1910); Bank of Commerce v. Huddleston, 172 Ark. 999, 291 S.W. 422 (1927).

Property may be assessed to construct a city park. Matthews v. Kimball, 70 Ark. 451, 66 S.W. 651 (1902).

Property may be assessed to construct a city wharf. Solomon v. Wharf Imp. Dist., 145 Ark. 126, 223 S.W. 385 (1920).

An ordinance creating a paving district, providing for repairing a certain street and for drainage when necessary “and all other work necessary and incidental to said paving and drainage” did not authorize any work not necessary and incident to the main purpose of repaving and was not uncertain. Kempner v. Sanders, 155 Ark. 321, 244 S.W. 356 (1922).

Betterments for sewerage purposes may be assessed against vacant property where, if and when desired, the sewerage connections may be made. Ragsdale v. Cunningham, 201 Ark. 848, 147 S.W.2d 20 (1941).

—Improvements Not Allowed.

A municipal corporation was without power to organize an improvement district in a city for the purpose of opening, establishing, and creating an alley through property when no alley had ever been opened, dedicated, or provided for. Lewis v. Rieff, 114 Ark. 366, 169 S.W. 1184 (1914). (Decision prior to 1927 amendment.).

Property may not be assessed to construct an auditorium. Lipscomb v. Lenon, 169 Ark. 610, 276 S.W. 367 (1925); Board of Imp. v. Moore, 171 Ark. 839, 286 S.W. 964 (1926).

Improvement Districts.

The entire city may be included in an improvement district. Crane v. City of Siloam Springs, 67 Ark. 30, 55 S.W. 955 (1899); Matthews v. Kimball, 70 Ark. 451, 66 S.W. 651 (1902); Wilson v. Blanks, 95 Ark. 496, 130 S.W. 517 (1910); Bank of Commerce v. Huddleston, 172 Ark. 999, 291 S.W. 422 (1927).

One district may be created to make two different kinds of improvements. Wilson v. Blanks, 95 Ark. 496, 130 S.W. 517 (1910); Bateman v. Board of Comm'rs, 102 Ark. 306, 143 S.W. 1062 (1912).

Two distinct districts, coterminous in extent, may be organized, one for grading and paving and the other for curbing, guttering, and storm sewering the same streets. Bottrell v. Hollipeter, 135 Ark. 315, 204 S.W. 843 (1918).

Remedies.

The remedy of landowners for the taking, appropriation, or damage to private property for use of the public would be an action at law; but where the complaint alleges that a sewer system as maintained by the defendants constitutes a nuisance and the answer denies such allegation, the issue is properly triable in equity. Sewerage Dist. v. Black, 141 Ark. 550, 217 S.W. 813 (1920).

Cited: McDonnell v. Improvement Dist., 97 Ark. 334, 133 S.W. 1126 (1911).

14-88-203. Petition and notice.

      1. When persons claiming to be a majority in value, as shown by the last county assessment of the owners of real property, in the whole or any part, of any city or incorporated town, file with the city or town clerk or recorder a petition for the organization of an improvement district for any purposes authorized by § 14-88-202, it shall be the duty of the city or town clerk or recorder to give notice that the petition will be heard at a meeting of the governing body of the city or town named in the notice, which will be held more than thirty (30) days after the filing of the petition.
      2. A petition under this section shall contain a bold heading stating that a signature on the petition is a vote to create the district.
    1. The notice shall be published one (1) time a week for two (2) weeks, the last insertion to be not less than seven (7) days before the date fixed for the hearing, in a newspaper having a general circulation in the county and, if available, on the website of the county or of the Secretary of State.
  1. The mayor, if he sees fit, may call a special meeting of the governing body for the purpose of hearing the petition. The called meeting shall be held not less than fifteen (15) days after the date of the call, and the notice of the hearing thereat shall be published for the time and in the manner prescribed in subdivision (a)(2) of this section.
  2. The notice may be in the following form:
  3. The petition may limit the cost of the improvement either to a fixed sum or to a percentage of the assessed value of the real property in the district.

“All owners of real property within the following described territory (here describe the territory to be included in the district) in the City (or Town) of , are hereby notified that a petition has been filed with the City Clerk (or Town Recorder) of the said City (or Town) of , purporting to be signed by a majority in value of the owners of real property within said territory, which petition prays that a local improvement district be formed embracing said territory for the purpose of (here describe purpose and name of the streets to be improved, if any) , and that the cost thereof be assessed and charged upon the real property above described. All owners of real property within said territory are advised that said petition will be heard at the meeting of the (governing body) to be held at the hour of p.m., on the day of , 20 , and that at said meeting said (governing body) will determine whether those signing the same constitute a majority in value of such owners of real property; and at said meeting all owners of real property within said territory who desire will be heard upon the question. City Clerk (or Town Recorder)”

Click to view form.

History. Acts 1929, No. 64, § 2; 1935, No. 145, § 1; Pope's Dig., § 7281; Acts 1967, No. 163, § 2; 1969, No. 290, § 1; A.S.A. 1947, § 20-104; Acts 2019, No. 1025, § 1.

Publisher's Notes. Notice provisions are required on every petition for the establishment of improvement districts of whatever nature. See § 14-86-201.

Acts 1929, No. 64, § 19, provided that this section did not apply in any case where a first petition had been filed for the organization of a district under the statutes existing at the time of passage of this section.

Amendments. The 2019 amendment added the (a)(1)(A) designation; substituted “thirty (30) days” for “fifteen (15) days” in (a)(1)(A); added (a)(1)(B); in (a)(2), substituted “one (1) time a week” for “once a week” and added “in a newspaper having a general circulation in the county and, if available, on the website of the county or of the Secretary of State”.

Case Notes

In General.

The petition, the notice, and the ordinance relative to an improvement district must be in harmony. American State Bank v. Street Imp. Dist., 197 Ark. 986, 125 S.W.2d 796 (1939).

Notice.

The giving of the notice of hearing was jurisdictional. Voss v. Reyburn, 104 Ark. 298, 148 S.W. 510 (1912); Pope v. City of Nashville, 131 Ark. 429, 199 S.W. 101 (1917); Bennett v. Kelley, 179 Ark. 530, 16 S.W.2d 992 (1929) (decisions under prior law).

A notice of hearing on a petition signed by the mayor and attested by the city clerk was sufficient. Selz v. Paving Dist., 173 Ark. 245, 292 S.W. 133 (1927) (decision under prior law).

A suit contesting the validity of the organization and assessment of benefits in a municipal improvement district was too late where the suit had not been brought within 30 days after the ordinance creating the district and after the publication of the assessment. Yates v. Phillips, 180 Ark. 709, 22 S.W.2d 559 (1929) (decision under prior law).

In absence of publication in substantial compliance with statutory requirements, a town council is powerless to proceed with formation of street improvement district. American State Bank v. Street Imp. Dist., 197 Ark. 986, 125 S.W.2d 796 (1939).

Omission of seven words in the description of property in the published notice of hearing for the creation of an improvement district was not sufficiently material to invalidate the notice. Linder v. Street Improv. Dist., 224 Ark. 457, 274 S.W.2d 470 (1955).

Petitions.

—In General.

A city council had jurisdiction to lay off a street improvement district only as designated by the property owners in the first petition, and the council must have conformed strictly to the authority conferred upon it. Smith v. Improvement Dist. No. 14, 108 Ark. 141, 156 S.W. 455 (1913) (decision under prior law).

Names may have been removed from petition for fraud, deceit, misrepresentation, and duress, but not for a change of opinion as to how burdensome the improvement might have been. Echols v. Trice, 130 Ark. 97, 196 S.W. 801 (1917); Pope v. City of Nashville, 131 Ark. 429, 199 S.W. 101 (1917); Lipscomb v. Blanz, 163 Ark. 1, 258 S.W. 624 (1924) (decisions under prior law).

The petition for the formation of an improvement district is jurisdictional, and the discretion of the board of commissioners is limited to carrying out the purposes of the petition. Ahern v. Paving Imp. Dist., 181 Ark. 1020, 29 S.W.2d 265 (1930) (decision under prior law).

—Content.

The extent and character of an improvement as expressed in the municipal ordinance must substantially have complied with the petition of the property owners upon which it was based. Kraft v. Smothers, 103 Ark. 269, 146 S.W. 505 (1912) (decision under prior law).

In construing a petition filed by property owners asking that the improvement be made, it was held that the petitioners meant the same as a request for the assessment of the improvement against the real property in the district, although such a request was not made in so many words. Mustin v. Brain, 135 Ark. 98, 204 S.W. 621 (1918) (decision under prior law).

—Descriptions.

The petition may describe the character of the improvement only in general terms, or expressly leave with the commissioners the decision as to what kind of materials should be used. McDonnell v. Improvement Dist., 97 Ark. 334, 133 S.W. 1126 (1911)Questioned byTappan v. Helena Fed. Sav. & Loan Ass'n, 193 Ark. 1023, 104 S.W.2d 458 (1937) (decision under prior law).

Petitions should accurately describe the territory. Bell v. Phillips, 116 Ark. 167, 172 S.W. 864 (1915); Henry v. Board of Imp., 170 Ark. 673, 280 S.W. 987 (1926) (decisions under prior law).

The petition for the formation of an improvement district would be insufficient where it does not contain any description of the boundaries of the proposed district and where it cannot be ascertained from the petition what territory is included in the proposed district. Bell v. Phillips, 116 Ark. 167, 172 S.W. 864 (1915) (decision under prior law).

The map or plans and specification or estimate of costs must have been regarded as part of the petition for organization of a road district for the purpose of determining whether a proposed improvement was certainly and definitely described. Tarvin v. Road Improv. Dist., 137 Ark. 354, 209 S.W. 81 (1919) (decision under prior law).

A petition for the organization of an improvement district in a city or town need have stated the nature of the improvement only in general terms, and therefore a petition describing the improvement as macadamizing, grading, graveling, paving, curbing, or guttering the streets mentioned was sufficient. Baird v. Street Paving Imp. Dist., 148 Ark. 246, 229 S.W. 712 (1921) (decision under prior law).

The preliminary petition for a street paving district sufficiently described the improvement as “repaving with asphaltic surface and otherwise improving the street”, the words “and otherwise improving” referring to such work as was incident and essential to making the repavement a successful and complete improvement, it being enough to describe the improvement in general terms while leaving the details and plans to be worked out by the board of improvement after the district was established. Kempner v. Sanders, 155 Ark. 321, 244 S.W. 356 (1922) (decision under prior law).

One who signed a petition for the improvement of certain streets had no right to rely upon the assurance of the city council that an adjoining street, not described in the petition, would also be improved. Ahern v. Paving Imp. Dist., 181 Ark. 1020, 29 S.W.2d 265 (1930) (decision under prior law).

By specifying in the petition for a paving district the kind of material and manner of paving, the property owners may have restricted the powers of the commissioners. Thacker v. Paving Improv. Dist., 182 Ark. 368, 31 S.W.2d 758 (1930) (decision under prior law).

Where ordinance was in the language of the petition and erroneous description in one of two publications extended the proposed improvement one block, but boundaries of the district for betterment assessments were not affected, there was no ground for invalidation of street improvement district. American State Bank v. Street Imp. Dist., 197 Ark. 986, 125 S.W.2d 796 (1939).

—Form.

No particular form of the petition is prescribed, and in determining whether the property owners' petition is valid, the court will look to the petition, not to find a formal prayer, but to ascertain whether the effect of the petition is to express the consent of the majority of the property owners. Mustin v. Brain, 135 Ark. 98, 204 S.W. 621 (1918) (decision under prior law).

—Majority in Value.

The power of the city council to make an assessment upon real property depends upon the assent of a majority in value of the property holders owning property adjoining the locality to be affected; this fact is jurisdictional, and the want of it makes a local assessment by a city council void. Rector v. Board of Improv., 50 Ark. 116, 6 S.W. 519 (1887) (decision under prior law).

A complaint was insufficient in failing to allege that the signatures procured by fraud were sufficiently numerous to reduce the number of the remainder of the signers to less than a majority. Boles v. Kelley, 90 Ark. 29, 117 S.W. 1073 (1909) (decision under prior law).

A special improvement district within a city declared on direct attack to be void ab initio for failure of a majority of the taxpayers to sign the petition for the improvement was held not to be a de facto district, and all obligations entered into by it were nullities. Davis v. Lawson, 168 Ark. 1143, 272 S.W. 646 (1925) (decision under prior law).

In a suit by taxpayers attacking the validity of the organization of an improvement district where the record had shown the filing of the first and second petitions and a finding of the city council that the second petition contained a majority in value of the taxpayers of the district, in the absence of a contrary showing, it would have been presumed that the district was legally established. Williams v. Serer Improv. Dist., 180 Ark. 510, 22 S.W.2d 405 (1929) (decision under prior law).

Taxpayers were precluded from questioning the correctness of a finding of the city council that a majority in value of the owners of real property in the district had signed the petition for the improvement, where the suit was not brought within 30 days of the finding. Williams v. Serer Improv. Dist., 180 Ark. 510, 22 S.W.2d 405 (1929) (decision under prior law).

Property owners alleging that petition for organization of improvement district was not signed by required majority of property owners have burden to show that fact, and finding of council that it was signed by required majority is prima facie correct. High v. Bailey, 203 Ark. 461, 157 S.W.2d 203 (1941).

Where consent for establishment of district was secured by petition signed by owners of two-thirds (now majority) in value of realty within district, no election was necessary to obtain consent to be taxed for such purpose. Ray v. City of Mt. Home, 228 Ark. 885, 311 S.W.2d 163 (1958) (decision prior to 1969 amendment).

The question whether there is a majority of signers is not determined as of the time the petition was signed, but is determined as of the time the city's governing body acts upon the petition. Appleby Rd. St. Imp. Dist. v. Powell, 282 Ark. 398, 669 S.W.2d 3 (1984).

Where, at the time the board acted in the matter, the landowners' petition for the formation of a street improvement district no longer contained the signatures of the owners of a majority in value of the assessed property in the district, two of the original signers having conveyed their property to others by deeds that were of record, the ordinance creating the district was invalid. Appleby Rd. St. Imp. Dist. v. Powell, 282 Ark. 398, 669 S.W.2d 3 (1984).

Cited: Ray v. City of Mt. Home, 228 Ark. 885, 311 S.W.2d 163 (1958); Burris v. City of Little Rock, 941 F.2d 717 (8th Cir. 1991).

14-88-204. Who may sign petition.

Women, married or single, may sign the petition; guardians may sign for their wards; and executors or administrators may sign for the estates represented by them.

History. Acts 1881, No. 84, § 16, p. 161; C. & M. Dig., § 5653; Pope's Dig., § 7287; A.S.A. 1947, § 20-105.

Case Notes

Designating Numbers.

Where a municipal improvement district was created as District No. 7 to cure infirmities in which another was created to be known as No. 8 and having for its purpose the same object in view as that of District No. 7 covering practically the same territory, but excluding certain city lots that should not have been included in No. 7 and including some that should not have been excluded from No. 7, it became immaterial by which number it was known since one district cured the infirmities of the other, and although given separate numbers it cannot be said that there are two districts having for their objects and purposes the making of the same improvements. Christian v. Forrest City St. Imp. Dist., 196 Ark. 523, 118 S.W.2d 868 (1938).

Persons Authorized to Sign.

A guardian may sign a petition for a local improvement. Malvern v. Nunn, 127 Ark. 418, 192 S.W. 909 (1917).

One partner may sign for partnership property. Malvern v. Nunn, 127 Ark. 418, 192 S.W. 909 (1917).

A mortgagor may sign even after foreclosure, if time to redeem has not expired. Holt v. Ring, 177 Ark. 762, 9 S.W.2d 43 (1928).

Persons Not Authorized to Sign.

This section authorizing administrators to sign for estates cannot, so far as the heirs are concerned, give their signatures any efficacy in the face of constitutional provisions requiring the consent of owners. Rector v. Board of Improv., 50 Ark. 116, 6 S.W. 519 (1887).

An administrator is not competent to sign a petition for improvement so as to bind the heirs, and there is no distinction between the power of an administrator and an executor, even where the executor is clothed with a power of sale. Ahern v. Board of Improv. Dist. No. 3, 69 Ark. 68, 61 S.W. 575 (1901).

A widow who is life tenant of dower or homestead lands cannot sign a petition for a local improvement. Colquitt v. Stevens, 111 Ark. 314, 163 S.W. 1141 (1914).

14-88-205. Apportionment of assessed value for signers.

  1. If the boundaries of a local improvement district as petitioned for embrace a part of any lot, block, or parcel of land which, upon the county assessment books, is assessed as a whole, any signer of the petition may demand, in writing, of the county assessor that he shall apportion the assessment for state and county purposes upon the lot, block, or parcel of land so as to show the assessed value of that portion which is within the proposed district and the assessed value of the remainder which is without the district.
  2. It shall be the duty of the county assessor, within ten (10) days after the request is made of him, to make the reassessment and to deliver to the city or town clerk or recorder a certificate showing the assessed value of that portion of the lot, block, or parcel of land that is within the district, to the end that in determining whether a majority in value has signed the petition, the city or town council can compute the value of the portion of the lot, block, or parcel of land that is within the district.

History. Acts 1929, No. 64, § 21; Pope's Dig., § 7286; A.S.A. 1947, § 20-106.

14-88-206. New district to replace void district.

When a void improvement district in a city or town has done or shall do the whole or any part of its work of improvement, a new district may be organized under the provisions of this subchapter or under any laws which may be passed for the organization of local improvement districts in cities and towns, for the purpose of paying for the improvement made or commenced by the void district.

History. Acts 1929, No. 26, § 1; Pope's Dig., § 7280; A.S.A. 1947, § 20-133.

Cross References. Proceedings to correct errors or irregularities in formation of district, § 14-86-401 et seq.

14-88-207. Hearing and establishment.

    1. At the time named in the notice, the municipal governing body shall meet and hear all owners of real property within the proposed district who desire to be heard on the question as to whether a majority in assessed value of the property owners has signed the petition and shall make a finding as to whether the petition is signed by a majority in assessed value of the property owners.
      1. The finding of the governing body shall be expressed in an ordinance.
        1. If it finds that a majority has signed the petition, it shall then be the duty of the governing body, by the same ordinance, to establish the district.
          1. The ordinance shall designate the boundaries of the district and the object of the proposed improvement as described in the petition.
          2. The ordinance shall also give the district a name descriptive of the nature of the proposed improvement and a number to prevent its being confused with other similar districts.
    1. The ordinance shall be published within thirty (30) days after its adoption for one (1) insertion, in some newspaper published in the city or town where the district lies, or if there is no such newspaper, then in some newspaper published in the county.
      1. Where improvement districts are organized in any city or town in which no newspaper is regularly published, all notices required may be published in any newspaper that is published and has a bona fide circulation in the county.
      2. If there is no newspaper published in the county where the city or town lies, the ordinances and notices provided for in the cases of local improvement districts in cities and towns may be published by posting them in at least ten (10) conspicuous places in the city or town where the improvement is to be made.
  1. The findings of the governing body shall be conclusive unless attacked by a suit in the chancery court of the county, brought within thirty (30) days after the publication.
  2. The governing body and the chancery court in their finding shall be governed by the record of deeds in the office of the recorder of the county and shall not consider any unrecorded instrument. They shall also be governed by the value placed upon the property as shown by the last county assessment on file in the county clerk's office.
  3. If any petition is not acted on by the governing body within one (1) year from the date of its filing, it shall become void unless there is pending in the court an injunction suit which prevents such action or a mandamus suit to compel action by the governing body. In any event, the petition shall become void unless acted on within two (2) years from the date of its filing.

History. Acts 1913, No. 125, § 5; C. & M. Dig., § 5680; Acts 1929, No. 64, §§ 3, 9; 1935, No. 145, § 2; Pope's Dig., §§ 7282, 7378, 7379; Acts 1969, No. 290, § 2; A.S.A. 1947, §§ 20-108, 20-110, 20-111.

Research References

U. Ark. Little Rock L.J.

Survey of Arkansas Law, Public Law, 1 U. Ark. Little Rock L.J. 230.

Case Notes

Assessments.

The city council is governed by the last county assessment and should not consider property omitted therefrom. Improvement Dist. No. 1 v. St. Louis Sw. Ry., 99 Ark. 508, 139 S.W. 308 (1911) (decision under prior law).

Former similar statute was valid as fixing the method of procedure in determining the value of real property in the proposed improvement district. Fry v. Poe, 175 Ark. 375, 1 S.W.2d 29 (1927) (decision under prior law).

The value of a lot assessed as a whole, which was divided, part being within and part without the improvement district, could not have been considered. Holt v. Ring, 177 Ark. 762, 9 S.W.2d 43 (1928) (decision under prior law).

Church property was subject to assessment. Bensberg v. Parker, 192 Ark. 908, 95 S.W.2d 892 (1936) (decision under prior law).

Findings of Governing Bodies.

The determination of the municipal council as to the singleness of the improvement and the selection of the property to be benefited is conclusive, except for fraud or demonstrable mistake. Cooper v. Hogan, 163 Ark. 312, 260 S.W. 25 (1924); Brown v. Board of Comm'rs, 165 Ark. 585, 265 S.W. 81 (1924); Carnahan v. City of Fayetteville, 175 Ark. 405, 1 S.W.2d 10 (1927) (decisions under prior law).

The finding of a city council that a petition for an improvement contains a majority in value of the real property owners of the district is prima facie correct. Dunbar v. Street Imp. Dist., 172 Ark. 656, 290 S.W. 372 (1927) (decision under prior law).

Circuit court did not abuse its discretion in issuing the writ of mandamus where this section plainly required the city to make a finding in an ordinance as to whether a petition was signed by a majority in assessed value of the property owners, and the city failed to make the requisite findings; the circuit court went too far, however, when it specified the findings that the city was to make and its order was therefore affirmed as modified. City of N. Little Rock v. Pfeifer, 2017 Ark. 113, 515 S.W.3d 593 (2017).

Majority in Assessed Value.

Consent of required majority in value is necessary. Watkins v. Griffith, 59 Ark. 344, 27 S.W. 234 (1894); Craig v. Board of Improv., 84 Ark. 390, 105 S.W. 867 (1907); Fry v. Poe, 175 Ark. 375, 1 S.W.2d 29 (1927) (decisions under prior law).

The fact that the requisite number of property owners consent to the formation of an improvement district is jurisdictional and without such consent all proceedings therefor are void. Improvement Dist. No. 1 v. St. Louis Sw. Ry., 99 Ark. 508, 139 S.W. 308 (1911) (decision under prior law).

In determining whether the requisite majority had been obtained by those who petition for the establishment of an improvement for the purchase of an electric lighting plant, the value of real property of railroad companies within the district had to be considered. Walton v. Commissioners of Light Imp. Dist., 144 Ark. 249, 222 S.W. 1056 (1920) (decision under prior law).

A landowner signing a petition for the establishment of a municipal improvement district was entitled to have the lands to which he had deeds on record at the time the council passed on the petition counted in determining whether the required majority of landowners in the district had signed for the improvement. Smith v. Callahan, 175 Ark. 974, 1 S.W.2d 82 (1928) (decision under prior law).

The question whether there is a majority of signers is not determined as of the time the petition was signed, but is determined as of the time the city's governing body acts upon the petition. Appleby Rd. St. Imp. Dist. v. Powell, 282 Ark. 398, 669 S.W.2d 3 (1984).

Where, at the time the board acted in the matter, the landowners' petition for the formation of a street improvement district no longer contained the signatures of the owners of a majority in value of the assessed property in the district, two of the original signers having conveyed their property to others by deeds that were of record, the ordinance creating the district was invalid. Appleby Rd. St. Imp. Dist. v. Powell, 282 Ark. 398, 669 S.W.2d 3 (1984).

Ordinances Establishing Districts.

The extent and character of the improvement, as expressed in the ordinance, must substantially comply with the petition. Kraft v. Smothers, 103 Ark. 269, 146 S.W. 505 (1912) (decision under prior law).

The descriptions in the ordinance must conform to those in the petition. Smith v. Improvement Dist. No. 14, 108 Ark. 141, 156 S.W. 455 (1913); Riddle v. Ballew, 130 Ark. 161, 197 S.W. 27 (1917) (decisions under prior law).

Variance between description in ordinance as passed and published ordinance is material. McRaven v. Clancy, 115 Ark. 163, 171 S.W. 88 (1914) (decision under prior law).

Journal of municipal council showing passage of ordinance cannot be impeached by parol evidence. Roberts v. Street Improv. Dist., 156 Ark. 248, 245 S.W. 489 (1922); Lewis v. Forrest City Special Imp. Dist., 156 Ark. 356, 246 S.W. 867 (1923) (decisions under prior law).

The adoption of an ordinance or resolution by unanimous vote of the municipal council dispenses with the rule requiring it to be read on three different days, unless two-thirds of the council vote to dispense with the rule. Young v. Gurdon, 169 Ark. 399, 275 S.W. 890 (1925); El Dorado v. Jacobs, 174 Ark. 98, 294 S.W. 411 (1927) (decisions under prior law).

The validity of a municipal ordinance may be collaterally attacked where the ordinance is void for lack of power to enforce it. Board of Imp. v. Moore, 171 Ark. 839, 286 S.W. 964 (1926) (decision under prior law).

Publication of Ordinances and Notices.

Ordinances are void if not published within a required time. Crane v. City of Siloam Springs, 67 Ark. 30, 55 S.W. 955 (1899); Bennett v. Kelley, 179 Ark. 530, 16 S.W.2d 992 (1929) (decisions under prior law).

Ordinances of a city creating an improvement district and providing for assessments, to be valid, must be published in some newspaper published in the city or town in which the district is organized. Gibson v. Hoxie, 110 Ark. 544, 162 S.W. 568 (1913) (decision under prior law).

Subdivision (b)(2)(A) governs the publication of an ordinance levying assessments for an improvement already constructed. Boaz v. Coates, 114 Ark. 23, 169 S.W. 312 (1914).

Review.

In the organization of an improvement district, it was held that the findings of the chancellor as to the assessment of benefits upon a person's land would not have been disturbed on appeal. Burrus v. Board of Sewer Improv., 134 Ark. 10, 203 S.W. 20 (1918) (decision under prior law).

Where the city council, in proceedings to establish an improvement district, found that a majority in value of the property owners in the district had signed the petition for the district and no review of such finding was sought within 30 days thereafter, the council's finding became conclusive on the courts and the chancery court was without jurisdiction to hear and determine a suit to enjoin the improvement on the ground that a majority in value had not signed the petition. Wigley v. House, 179 Ark. 503, 16 S.W.2d 588 (1929) (decision under prior law).

City council in making finding that requisite two thirds (now majority) in assessed value of property owners had signed the petition for a street improvement district would necessarily have to find the total assessed value in the district, so that finding of council was conclusive, where finding was not attacked by suit in chancery within 30 days of publication of ordinance. Street Imp. Dist. v. Cooper, 215 Ark. 760, 223 S.W.2d 607 (1949) (decision prior to 1969 amendment).

Mandamus is not a proper method to review a city's decision regarding the creation of an improvement district because this section provides for an adequate remedy by way of an appeal to chancery court. Powell v. Bishop, 279 Ark. 365, 652 S.W.2d 9 (1983).

Time to Act.

This section, which provides that a petition for the creation of a municipal improvement district shall become void unless it has been acted upon within two years from the date of its filing, does not apply to annexation of territory to a municipal improvement district. Hazen v. City of Booneville, 260 Ark. 871, 545 S.W.2d 614 (1977).

Cited: McAllister v. Forrest City Street Improv. Dist. No. 11, 274 Ark. 372, 626 S.W.2d 194 (1981); Burris v. City of Little Rock, 941 F.2d 717 (8th Cir. 1991).

14-88-208. [Repealed.]

Publisher's Notes. This section, concerning denial on planning commission recommendations, was repealed by Acts 2013, No. 563, § 2. The section was derived from Acts 1931, No. 275, § 1; Pope's Dig., § 10027; A.S.A. 1947, § 20-107.

14-88-209. Compensation for preliminary work.

Commissioners of municipal improvement district boards are authorized to pay a reasonable compensation to the persons who have done necessary preliminary work in the organization of them.

History. Acts 1913, No. 125, § 6; C. & M. Dig., § 5741; Pope's Dig., § 7382; A.S.A. 1947, § 20-112.

Case Notes

Enforcement.

Where the legal right of an attorney to have a voucher issued for legal services rendered to an improvement district has been determined by the commissioners of the district, such right will be enforced in a mandamus proceeding. Huie v. Barkman, 179 Ark. 772, 18 S.W.2d 334 (1929).

Preliminary Expenses.

The services of a promoter in circulating a petition and creating sentiment for organization of a district is not a “preliminary expense.” Martin v. Street Imp. Dist., 167 Ark. 108, 266 S.W. 941 (1924).

14-88-210. Corporate powers.

Municipal improvement districts shall be bodies corporate and shall have power to sue and be sued and to contract by the corporate name.

History. Acts 1929, No. 64, § 3; 1935, No. 145, § 2; Pope's Dig., § 7282; Acts 1969, No. 290, § 2; A.S.A. 1947, § 20-108.

Research References

U. Ark. Little Rock L.J.

Survey of Arkansas Law, Public Law, 1 U. Ark. Little Rock L.J. 230.

Case Notes

Tort Liability.

Even though this section allows a natural gas improvement district to sue and be sued, there is still an immunity from tort liability for gas explosions. Reeme v. Natural Gas Imp. Dist., 247 Ark. 983, 448 S.W.2d 647 (1970).

14-88-211. Existing road improvement districts.

No road improvement district within the state shall, in any way, affect the validity of any municipal improvement district which is organized for the purpose of paving any streets over which any road improvement district may pass.

History. Acts 1923 (1st Ex. Sess.), No. 20, § 1; A.S.A. 1947, § 20-135.

Publisher's Notes. As to validation of existing districts, see Acts 1923 (1st Ex. Sess.), No. 20, § 2.

Case Notes

Purpose.

This section suspended or withdrew the authority of rural road districts over streets which are subjects of municipal improvement districts, validated the latter districts, and was effective retroactively. Moore v. North College Ave. Imp. Dist., 161 Ark. 323, 256 S.W. 70 (1923); Paving Dists. of Blytheville v. Baker, 171 Ark. 692, 286 S.W. 945 (1926).

14-88-212. Districts to install electric streetlights in cities of more than 10,000 inhabitants.

  1. Local improvement districts may be organized in cities having more than ten thousand (10,000) inhabitants according to the federal census under the provisions of this chapter for the purpose of installing electric streetlights within the district and of supplying the lights with electric current.
  2. The commissioners of the district are authorized to purchase, construct, and install the necessary columns, fixtures, wiring, conduits, and other appliances and to maintain them.
  3. Districts may make contracts with municipalities, companies, or individuals supplying electricity for furnishing the necessary electric current during a period not exceeding twenty-five (25) years.
  4. The district shall not cease to exist when the work is completed, and the improvement shall not be turned over to the city, but the district shall be operated by the commissioners thereof, to the end that the electric columns, wiring, fixtures, conduits, and other appliances may be kept in good condition and the electric current paid for out of the local assessments upon the property benefited.

History. Acts 1929, No. 207, § 1; A.S.A. 1947, § 20-103.

Subchapter 3 — Members — Increase in Number in Certain Cities

Cross References. Publication of annual report, § 1-3-105.

Preambles. Acts 1941, No. 74 contained a preamble which read:

“Whereas, in many instances vacancies occur on the boards of commissioners of improvement districts by reason of one of the commissioners dying or moving out of the State; and

“Whereas, in many such instances said vacancies are not promptly filled by appointment of new members to the board of commissioners, when the law governing the creation of such districts contemplates a full board of three commissioners, and it is to the best interest of the property holders in looking after the affairs of said district that a full board of three commissioners be always maintained;

“Now, therefore….”

Effective Dates. Acts 1893, No. 158, § 3: effective on passage.

Acts 1899, No. 94, § 2: effective on passage.

Acts 1909, No. 80, § 6: effective on passage.

Acts 1909, No. 81, § 3: effective on passage.

Acts 1929, No. 64, § 23: approved Feb. 28, 1929. Emergency clause provided: “It is ascertained and hereby declared that by reason of the inability under the present laws to extend water mains and repair water plants there is great danger of conflagration, that by reason of the inability to extend electric light plants there is great danger to the public peace and safety, owing to the darkness of the streets, and that by reason of the inability to extend and repair sewers there is great danger to the public health, and that for these reasons it is immediately necessary that this act should go into operation, and it is therefore declared that an emergency exists, and this act shall be in force and effect from and after its passage.”

Acts 1935, No. 145, § 8: approved Mar. 20, 1935. Emergency clause provided: “It is ascertained and hereby declared that by reason of the fact that heretofore it has been necessary to obtain the consent of only a bare majority in value of the owners of real property in order to organize a local improvement district, the organization of such districts all over the State of Arkansas has been in the past greatly abused, advantage has been taken of the owners of property therein and burdensome taxes have been laid upon property owners without any actual increase in property values as compensation therefor, many of such districts having been organized for promotion purposes; that many property owners throughout the State are in danger of losing their said property by reason of their inability to pay the said local improvement taxes; and that unless legislation is immediately enacted making it necessary to obtain the consent of more than a majority in value of said property owners the practice of organizing such districts and the abuse thereof will be continued, all to the serious detriment and injury of owners of property. It is, therefore, found and declared that an emergency exists, and this act shall be in force and effect from and after its passage.”

Acts 1941, No. 7, § 2: approved Jan. 30, 1941. Emergency clause provided: “That it is hereby stated, ascertained and found that because of the language of section 7283 of Pope's Digest there is now uncertainty in the law as to whether the Mayor and City Commissioners in Cities operating under a commission form of government pursuant to Act 13 of the Acts of 1913, as amended, are the Commissioners of Improvement Districts formed in such cities, and that such uncertainty is preventing, hindering and delaying the making of many improvements of a public nature, and that, therefore, this act, being necessary for the preservation of the public peace, health and safety, shall be in full force and effect from and after its passage.”

Acts 1941, No. 74, § 2: became law without Governor's signature, Feb. 18, 1941. Emergency clause provided: “As the improvement made by districts created by town or city council, are organized for the purpose of making improvements such as sidewalks, street paving, sanitary and storm sewers, water lines to supply the inhabitants with water, etc., which improvements are for the health and safety of the people residing in the district, it is ascertained and hereby declared that unless such districts maintain a full board of three commissioners that the repairs and maintenance of the improvements may not be carried on in such a way as to safeguard the health and safety of the public, it is therefore, hereby declared that an emergency exists and that for the preservation of the public peace, health, and safety, this act shall immediately take effect upon its passage.”

Acts 1961, No. 70, § 3: Feb. 9, 1961. Emergency clause provided: “In order to secure efficiency and economy in the operation of municipal improvement districts and to promote the health and comfort of the residents and property owners of said districts, there is a need for the authorization granted by this Act, and, therefore, an emergency is declared, and this Act, being necessary for the preservation of the public peace, health and safety shall take effect and be in force upon its passage and approval.”

Acts 1975, No. 928, § 1: effective simultaneously with the Arkansas Criminal Code on Jan. 1, 1976.

Acts 1999, No. 1505, § 8: July 1, 1999. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly that the various laws regulating the boards of commissioners of municipal improvement districts contain provisions which provide for the lifetime appointments of commissioners and do not allow for the prompt removal of commissioners when the situations might be in the best interest of the districts and its members, and that these restrictions mean that these small government bodies are often unresponsive to the district's property owners who benefit from the services and pay the assessments for these improvement districts. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on July 1, 1999.”

14-88-301. Appointment of commissioners.

        1. In the ordinance creating a municipal improvement district, the city or town council shall appoint three (3) owners of real property as commissioners, who shall compose a board of improvement for the district.
          1. The number of commissioners for an improvement district created under this section may be increased from three (3) to five (5) or seven (7) members by:
            1. Ordinance of the city or town council; or
            2. Petition to the city or town council signed by property owners representing ten percent (10%) or more of the assessed properties in the improvement district and that designates persons to fill the newly created positions on the board of commissioners who shall be property owners of assessed properties in the improvement district.
            1. On a board of commissioners whose membership has been increased from three (3) to five (5) or seven (7) members under subdivision (a)(1)(A)(ii)(a) of this section, a commissioner is limited to three (3) three-year terms.
            2. The terms shall be initially staggered for terms of one (1) year, two (2) years, and three (3) years as determined by lot, with each term counting toward the three-term limit.
          1. Beginning on and after July 1, 1999, in cities of the first class with a population of between sixty-one thousand five hundred (61,500) and sixty-two thousand (62,000) persons according to the 1990 Federal Decennial Census, the commissioners serving at that time and any board of commissioners of new districts created after that date shall have terms of office of six (6) years and shall serve until their successors are duly selected and qualified.
          2. These terms of office shall begin January 1, 2000, for commissioners serving at that time or the January 1 next following the creation of the district.
        1. For the initial terms, the commissioners shall select one (1) of their number to serve for two (2) years, one (1) to serve for four (4) years, and one (1) to serve for six (6) years.
        2. The names and terms so selected shall be certified to the city clerk on or before January 1 of the applicable year.
          1. Before the end of a commissioner's term, the city council shall appoint an owner of real property in the district as a new commissioner.
          2. Except for persons having been removed as a commissioner, any person serving or having served as a commissioner may be reappointed, but need not necessarily be reappointed.
    1. In cities operating under a commission form of government, the mayor and city commissioners, by virtue of their offices, shall be commissioners of each improvement district and shall compose the board of improvement of each district.
    2. If a property owner or creditor is a corporation, partnership, trust, or other legal entity, any officer, director, trustee, employee, or other designated representative of the entity may be named and appointed as a commissioner.
  1. The ordinance may be in the following form:

“AN ORDINANCE ESTABLISHING IMPROVEMENT DISTRICT NO. . “WHEREAS, parties claiming to be the owners of two-thirds in assessed value of the property located within the territory hereinafter described have filed a petition praying that an improvement district be established for the purpose hereinafter set out. “WHEREAS, after due notice as required by law, the City (or Town) Council of the City (or Town) of has heard all parties desiring to be heard, and has ascertained that said petition was signed by two-thirds in assessed value of the owners of real property within said territory; “NOW, THEREFORE, BE IT ORDAINED by the City (or Town) Council of the City (or Town) of . “Section 1. There is hereby established an improvement district embracing the following property (here describe territory) for the purpose of (here describe the purpose) “Said district shall be known as Improvement District No. ; and , and are hereby named commissioners, who shall compose the Board of Improvement for said district. “Section 2. This ordinance shall take effect and be in force from and after its passage.”

Click to view form.

History. Acts 1929, No. 64, § 4; 1935, No. 145, § 3; Pope's Dig., § 7283; Acts 1941, No. 7, § 1; A.S.A. 1947, § 20-109; Acts 1999, No. 1505, § 1; 2003, No. 550, § 1; 2013, No. 563, § 3; 2015, No. 1043, § 1; 2017, No. 924, § 1.

Amendments. The 2003 amendment added (a)(1)(A)(ii).

The 2013 amendment added (a)(3).

The 2015 amendment deleted “therein” following “property” in (a)(1)(A)(i); rewrote (a)(1)(A)(ii) as (a)(1)(A)(ii) (a) , inserting “from three (3) to five (5) or seven (7)” preceding “members” and adding the language designated as (a)(1)(A)(ii) (a)(2) ; and added (a)(1)(A)(ii) (b)

The 2017 amendment, in (a)(1)(A)(ii) (a)(2) , substituted “property owners representing ten percent (10%) or more of the assessed properties in” for “fifteen percent (15%) of the property owners of record within” and inserted “and that designates persons to fill the newly-created positions on the board of commissioners who shall be property owners of assessed properties in the improvement district”.

Cross References. Board of commissioners in cities having city administrator form of government, § 14-48-131.

Case Notes

Commissioners.

Mayor and alderman were ineligible as commissioners, but if appointed, they were commissioners de facto, and their appointment did not impair the validity of the improvement district. Anderson v. Pixley, 132 Ark. 539, 201 S.W. 796 (1918) (decision under prior law).

Where one commissioner was not a property owner in improvement district, but the other two were, all proceedings where all three were present were valid, since a majority may act; also no attack on validity because commissioner was not a property owner in district could be made after 30 days. Gannaway v. Street Imp. Dist., 164 Ark. 407, 262 S.W. 22 (1924) (decision under prior law).

Where city council creates an improvement district board and appoints three real property-owning commissioners to serve thereon as required by this section and where the board has not yet formed a plan or ascertained the cost of the improvement as required, the question of the correctness of the assessments or the method employed cannot be brought before the courts. Ketcher v. Mayor of N. Little Rock, 2 Ark. App. 315, 621 S.W.2d 12 (1981).

Initiative and Referendum.

The initiative and referendum amendment did not apply to an improvement district ordinance. Hodges v. Board of Improv., 117 Ark. 266, 174 S.W. 542 (1915); Paving Dist. v. Little, 170 Ark. 1160, 282 S.W. 971 (1926) (decisions under prior law).

Cited: Linder v. Street Improv. Dist., 224 Ark. 457, 274 S.W.2d 470 (1955).

14-88-302. Oath of office.

  1. Each member of the board of improvement, within ten (10) days after his appointment, shall take the oath of office required by Arkansas Constitution, Article 19, § 20, and an oath that he will not, either directly or indirectly, be interested in any contract made by the board.
  2. The oaths of office of the commissioners of municipal improvement districts may be taken before any officer authorized to administer oaths.
  3. The oath required under this section shall be filed in the office of the city or town clerk.
  4. If any member of the board shall fail to take this oath and to file it in the office of the clerk within the time allowed in this section, he shall be taken to have declined the office. The city or town council shall at once appoint another person, having the like qualifications, in his place, who shall take and file his oath of office within ten (10) days after his appointment.

History. Acts 1881, No. 84, § 3, p. 161; C. & M. Dig., §§ 5714, 5715; Acts 1929, No. 64, § 20; Pope's Dig., §§ 7353-7355; A.S.A. 1947, §§ 20-113 — 20-115.

Case Notes

Failure to Take Oath.

This section is mandatory, and failure of a member of the board to take the oath within the time required amounts to a declination of the office, imposing on city council the duty to select another in his place. Hickey v. Hargraves, 194 Ark. 64, 105 S.W.2d 88 (1937).

Member's failure to take oath within required time prevents him from acquiring any right or title to the office, and he cannot be treated as a de facto officer in a direct attack to review city council's proceedings in declaring vacancy and making appointment. Hickey v. Hargraves, 194 Ark. 64, 105 S.W.2d 88 (1937).

Filing of Oaths.

Effect of failure by a commissioner of improvement district to file his oath of office is to invest the city council with power to appoint a successor, the presumption being that the commissioner has declined to serve. Jones v. Leighton, 200 Ark. 1015, 142 S.W.2d 505 (1940).

That oath of office of commissioner of street improvement district was found in a desk at the city hall created a presumption it was filed, but not a presumption that the filing occurred within 10 days from its execution. Jones v. Leighton, 200 Ark. 1015, 142 S.W.2d 505 (1940).

Nunc pro tunc resolution adopted by city council after commissioners of street improvement district had been serving almost 10 months, stating they had been appointed, created presumption that it would not have been passed if the commissioners had failed to file their oaths of office, and resolution adopted 10 years later declaring the position vacant for failure to file the oath was held properly set aside on certiorari. Jones v. Leighton, 200 Ark. 1015, 142 S.W.2d 505 (1940).

14-88-303. Vacancies generally.

  1. A vacancy that occurs after a municipal board is organized shall be filled by the city or town council.
  2. If a position on the board is vacant because of a resignation, death, removal under § 14-88-305, refusal to act, or negligence, a new member shall be appointed by the city or town council, if a petition under § 14-88-304(b)(1) is filed.

History. Acts 1881, No. 84, § 3, p. 161; 1909, No. 81, § 1, p. 224; C. & M. Dig., § 5716; Pope's Dig., § 7356; Acts 1961, No. 70, §§ 1, 2; A.S.A. 1947, § 20-116; Acts 1999, No. 1505, § 2; 2017, No. 924, § 2.

Amendments. The 1999 amendment added the exception in (b).

The 2017 amendment, in (a), substituted “A vacancy that occurs” for “All vacancies that may occur” and “is” for “shall have been”; and rewrote (b).

14-88-304. Petition of property owners to fill vacancy.

    1. The city or town council shall appoint a new commissioner to the board of commissioners of an improvement district created by the council if:
      1. There is a vacancy on the board because a commissioner has died or has ceased to reside in the state in which the improvement district was created; and
      2. Ten percent (10%) or more of the property owners of the improvement district petition the council calling attention to the vacancy on the board and requesting the appointment of a new commissioner to fill the vacancy.
    2. A commissioner appointed under subdivision (a)(1) of this section shall be a property owner in the improvement district in which the vacancy occurs.
    1. A person shall cease to be a commissioner on the board of commissioners upon the filing of a petition with the city or town council that:
      1. Is signed by property owners representing ten percent (10%) or more of the assessed properties in the improvement district affected;
      2. Recites that the commissioner is no longer a property owner in the improvement district;
      3. Is accompanied by a corroborative certificate of an abstractor;
      4. Indicates a vacancy exists under § 14-88-303; and
      5. Designates a person to fill the vacancy who is a property owner of assessed property in the improvement district.
    2. The office is declared to be vacant from the date of filing the petition, and the council that created the improvement district shall name as commissioner of the improvement district to fill the vacancy the person named in the petition and recommended for commissioner of the improvement district if the person is a property owner in the improvement district.

History. Acts 1941, No. 74, § 1; A.S.A. 1947, § 20-117; Acts 2015, No. 1043, § 2; 2017, No. 924, § 3.

Amendments. The 2015 amendment inserted “improvement” preceding “district” throughout the section; redesignated (a) as (a)(1) and (2) and rewrote the subsection; redesignated (b) as (b)(1) and (2); substituted “ten percent (10%) or more of” for “five (5) or more” in (b)(1); and deleted “forthwith” preceding “name as commissioner” in (b)(2).

The 2017 amendment rewrote (b)(1).

14-88-305. Removal of member.

    1. The city or town council may remove a municipal board of improvement or any member of the board by a two-thirds vote of the whole number of council members elected to the council.
      1. Removal shall be for cause only, including without limitation noncompliance with state or federal law or local ordinance, and after a hearing upon sworn charges proffered in writing by a real property owner in the improvement district.
      2. Ten (10) days' notice of the hearing of the charges shall be given.
  1. The council may remove the board or any member of the board by a vote of a majority of the whole number of council members elected to the council, upon the written petition of fifteen percent (15%) of the owners of real property located within the improvement district stating that the petitioners believe it to be in the best interest of the improvement district, and after a mandatory hearing upon ten (10) days' notice to each member of the board affected.

History. Acts 1881, No. 84, § 3, p. 161; 1909, No. 81, § 1, p. 224; C. & M. Dig., § 5716; Pope's Dig., § 7356; Acts 1961, No. 70, §§ 1, 2; A.S.A. 1947, § 20-116; Acts 1999, No. 1505, § 3; 2015, No. 1043, § 3; 2017, No. 879, § 36.

Amendments. The 1999 amendment added (b)(2); and made stylistic changes in (a)(1) and (a)(2)(A).

The 2015 amendment, in (a)(1), substituted “may” for “shall have the power to,” substituted “of the board” for “thereof,” and deleted “(2/3)” following “two-thirds”; in (a)(2)(A), inserted “including without limitation noncompliance with state or federal law or local ordinance,” substituted “a” for “some” preceding “real property,” and inserted “improvement” preceding “district”; deleted (b)(1) and redesignated (b)(2) as (b); in present (b), deleted “After July 1, 1999, in cities of the first class with a population of between sixty one thousand five hundred (61,500) and sixty two thousand (62,000) persons according to the 1990 Federal Decennial Census” at the beginning, substituted “may remove” for “shall have the power to remove,” inserted “of the board” following “any member,” deleted “city” preceding “council” near the middle, substituted “fifteen percent (15%)” for “twenty-five percent (25%),” inserted “improvement” preceding “district” twice, and inserted “mandatory” preceding “hearing.”

The 2017 amendment substituted “council members” for “aldermen” in (a)(1) and (b).

Case Notes

Cause for Removal.

“Cause” or “sufficient cause” shall mean “legal cause” and not any cause which the municipal council may think sufficient; the cause must be one which specially relates to and affects the administration of the office and must be restricted to something of a substantial nature directly affecting the rights and interests of the public. Carswell v. Hammock, 127 Ark. 110, 191 S.W. 935 (1917).

A petition to remove the commissioners of a street improvement district which charged them with incompetency, gross negligence, willful neglect of duties, waste of funds, and failure to file an annual settlement with vouchers was held to state a cause for removal. Boullioun v. City of Little Rock, 176 Ark. 489, 3 S.W.2d 334 (1928).

City councilman was held not entitled to hold the office of a commissioner of street improvement district because the offices are incompatible. Tappan v. Helena Fed. Sav. & Loan Ass'n, 193 Ark. 1023, 104 S.W.2d 458 (1937).

Where record of proceedings before city council was silent as to on which charge water commissioner was guilty and as to what evidence order of city council for removal was based, court properly quashed order of removal of commissioner, as commissioner is entitled to know on what specific charge he was removed and the evidence upon which council based its order of removal. Martin v. Cogbill, 214 Ark. 818, 218 S.W.2d 94 (1949).

Court would not substitute its judgment for that of city board as to whether “cause” was sufficient for removal of commissioners. Martin v. Quinn, 294 Ark. 60, 740 S.W.2d 627 (1987).

Power to Remove.

City council has authority to remove a commissioner of an improvement district upon a showing sufficient to justify action. Martin v. Cogbill, 214 Ark. 818, 218 S.W.2d 94 (1949).

Proceedings for Removal.

In a proceeding to remove the commissioners of an improvement district, it is not necessary that the city council should vote or make finding upon each separate charge; rather, it can decide upon proof as a whole. Boullioun v. City of Little Rock, 176 Ark. 489, 3 S.W.2d 334 (1928).

Review.

Action of city council in refusing to remove councilman from the board of commissioners of the city is subject to certiorari review in the circuit court. Tappan v. Helena Fed. Sav. & Loan Ass'n, 193 Ark. 1023, 104 S.W.2d 458 (1937).

Where commissioner is removed by city council after petition filed by taxpayer for his removal and hearing upon it, proper remedy for review of proceedings of council is by certiorari, but court does not try the case de novo as writ is merely for errors of law, one of which may be the legal sufficiency of the testimony supporting order of the council. Martin v. Cogbill, 214 Ark. 818, 218 S.W.2d 94 (1949).

In reviewing city board's action, circuit court was not required to conduct a de novo review; circuit court reviews record of errors of law and for legal sufficiency of evidence to support action of board. Martin v. Quinn, 294 Ark. 60, 740 S.W.2d 627 (1987).

14-88-306. Chairman.

A municipal board of improvement shall elect one (1) of their number chairman.

History. Acts 1881, No. 84, § 3, p. 161; 1909, No. 81, § 1, p. 224; C. & M. Dig., § 5716; Pope's Dig., § 7356; Acts 1961, No. 70, §§ 1, 2; A.S.A. 1947, § 20-116.

14-88-307. Quorum.

A majority of a municipal board of improvement shall constitute a quorum for the transaction of business and the performance of the duties enjoined by this act.

History. Acts 1881, No. 84, § 3, p. 161; C. & M. Dig., § 5717; Pope's Dig., § 7357; A.S.A. 1947, § 20-118.

Meaning of “this act”. See note to § 14-88-101.

14-88-308. No compensation.

The members of a municipal board shall receive no compensation for their services.

History. Acts 1881, No. 84, § 3, p. 161; 1909, No. 81, § 1, p. 224; C. & M. Dig., § 5716; Pope's Dig., § 7356; Acts 1961, No. 70, §§ 1, 2; A.S.A. 1947, § 20-116.

14-88-309. Interest in contracts unlawful — Penalty.

  1. It shall be unlawful for any board of improvement, or any member thereof, in any city or town in this state to be interested, either directly or indirectly, in any contract made by the board for, or on behalf of, any improvement district.
  2. Any person violating the provisions of this section commits a felony and shall be:
    1. Fined in any sum not less than five hundred dollars ($500) nor more than five thousand dollars ($5,000); and
    2. Imprisoned in the state penitentiary not less than one (1) year nor more than ten (10) years.

History. Acts 1909, No. 80, §§ 1, 4, p. 222; C. & M. Dig., §§ 5711, 5713; Pope's Dig., §§ 7350, 7352; Acts 1975, No. 928, § 7; A.S.A. 1947, §§ 20-120, 20-123.

Publisher's Notes. Acts 1975, No. 928, § 2, provided that, notwithstanding that all or part of a statute defining a criminal offense is amended or repealed by this act, the provisions so amended or repealed shall remain in force for the purpose of authorizing the prosecution, conviction, and punishment of a person committing an offense under the provisions prior to the effective date of this act.

Case Notes

Constitutionality.

Subsection (b) is valid. Wilson v. Magnolia Petroleum Co., 181 Ark. 391, 26 S.W.2d 92 (1930).

Contracts Void.

A contract between the commissioners of a waterworks district and a corporation in which the commissioners were stockholders is void. Gantt v. Arkansas Power & Light Co., 189 Ark. 449, 74 S.W.2d 232 (1934).

Contract by which waterworks district surrendered to private corporation privilege of furnishing water to consumer was held void from its inception where one of the commissioners owned stock in his own name and two in the name of their wives in the corporation when they entered into the contract. Gantt v. Arkansas Power & Light Co., 194 Ark. 925, 109 S.W.2d 1251 (1937).

Transactions Not Invalidated.

The sale of an improvement district's bonds to a bank of which one of the commissioners was an officer did not invalidate the assessment of benefits. Davidson v. Sewer Improv. Dist., 182 Ark. 741, 32 S.W.2d 1062 (1930).

14-88-310. Interest in loans unlawful — Penalty.

  1. It shall be unlawful for a municipal board of improvement, or any member thereof, to:
    1. Loan the funds, or to be interested in the loan of the funds, raised in any improvement district; or
    2. Apply or use the funds for any purpose except the purpose for which they were raised; or
    3. Purchase, or to be interested in the purchase of, any lot or lands sold for the payment of delinquent assessments; or
    4. Loan money or furnish money or credit to any person, company, or corporation to make such a purchase.
  2. Any person violating the provisions of this section commits a felony and shall be:
    1. Fined in any sum not less than five hundred dollars ($500) nor more than five thousand dollars ($5,000); and
    2. Imprisoned in the state penitentiary not less than one (1) year nor more than ten (10) years.

History. Acts 1909, No. 80, §§ 2, 4, p. 222; C. & M. Dig., §§ 5712, 5713; Pope's Dig., §§ 7351, 7352; Acts 1975, No. 928, § 7; A.S.A. 1947, §§ 20-121, 20-123.

Publisher's Notes. As to savings clause contained in Acts 1975, No. 928, see Publisher's Notes to § 14-88-309.

Case Notes

Constitutionality.

Subsection (b) is valid. Wilson v. Magnolia Petroleum Co., 181 Ark. 391, 26 S.W.2d 92 (1930).

Cited: Russell v. State, 112 Ark. 282, 166 S.W. 540 (1914).

14-88-311. Combining boards.

Where there is more than one (1) improvement district in the city or town for the same general purpose, the same member may be on two (2) or more boards of improvement, or the boards of different districts may combine so as to form only one (1) board for the whole territory, to be thus improved so as to make the whole improvement uniform. However no money raised by assessment in one (1) district shall be expended in another district.

History. Acts 1881, No. 84, § 3, p. 161; 1893, No. 158, § 1, p. 271; 1899, No. 94, § 1, p. 156; C. & M. Dig., § 5735; Pope's Dig., § 7363; A.S.A. 1947, § 20-119.

14-88-312. Members — Increase in number in certain cities.

    1. Whenever a majority in value of the owners of real property in any municipal improvement district in cities of the first class with a population of between sixty-one thousand five hundred (61,500) and sixty-two thousand (62,000) persons according to the 1990 Federal Decennial Census shall petition the city council of the creating municipality for the board of improvement to be enlarged from three (3) members to five (5) members, then the city council shall pass an ordinance to expand the number of members of the board of improvement for the district, and to appoint two (2) additional owners of real property as commissioners of the district. Thereafter, the total membership of the board of improvement shall consist of five (5) members who shall serve staggered terms of three (3) years.
    2. The initial terms of office of the two (2) additional members shall be determined by the appointing ordinance with one (1) individual serving an initial term of three (3) years and the second individual serving an initial term of two (2) years. Thereafter, the terms of office shall be three (3) years.
    3. Commissioners serving at the time the petition is filed shall continue to serve.
  1. Vacancies in the two (2) additional commissioners' positions shall be filled in the same manner as provided for filling vacancies under § 14-88-303. The position shall be filled for the remainder of the unexpired term, except that no person who is removed as a commissioner shall qualify.
  2. All action by the board of commissioners of any municipal improvement district affected by this section shall be by a majority vote of the membership of the board of improvement.

History. Acts 1999, No. 1505, § 4.

Subchapter 4 — Officers Serving Districts

Effective Dates. Acts 1897, No. 16, § 5: effective on passage.

Acts 1909, No. 80, § 6: effective on passage.

Acts 1929, No. 64, § 23: approved Feb. 28, 1929. Emergency clause provided: “It is ascertained and hereby declared that by reason of the inability under the present laws to extend water mains and repair water plants there is great danger of conflagration, that by reason of the inability to extend electric light plants there is great danger to the public peace and safety, owing to the darkness of the streets, and that by reason of the inability to extend and repair sewers there is great danger to the public health, and that for these reasons it is immediately necessary that this act should go into operation, and it is therefore declared that an emergency exists, and this act shall be in force and effect from and after its passage.”

Acts 1935, No. 78, § 4: approved Feb. 26, 1935. Emergency clause provided: “Whereas at the present time there are several different people collecting taxes in the same town which makes it inconvenient for the taxpayers thereof to determine the amount of and pay their taxes and also makes it more expensive than it should be upon said taxpayers an emergency is hereby declared to exist and this act shall be in full force and effect from and after its passage.”

Acts 1975, No. 928, § 1: effective simultaneously with the Arkansas Criminal Code on Jan. 1, 1976.

Acts 1995, No. 362, § 5: Feb. 20, 1995. Emergency clause provided: “It is hereby found and determined by the Eightieth General Assembly of the State of Arkansas that the present law pertaining to the representation of local improvement districts is outdated, unduly restricts representation of improvement districts to noncontroversial matters and limits legal fees to amounts which prohibit the retention of counsel. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

14-88-401. Penalty for misuse of funds generally.

Any commissioner, treasurer, attorney, or other subordinate officer appointed by a municipal board of improvement who uses or lends, or who participates, directly or indirectly, in any loan or use of funds belonging to the improvement district, for other than district purposes, shall be guilty of a felony. Upon conviction, he shall be confined in the penitentiary for a period of not more than five (5) years nor less than two (2) years.

History. Acts 1949, No. 195, § 24; 1953, No. 210, § 1; A.S.A. 1947, § 20-124.1.

Publisher's Notes. This section does not apply to municipal improvement districts in existence prior to July 1, 1952. See §§ 14-90-102, 14-90-103.

14-88-402. Unlawful actions by subordinate officers — Penalty.

  1. It shall be unlawful for the collector or treasurer of a municipal improvement district, or for any other subordinate officer appointed by the board of improvement, to loan or use, or to be interested in the loan or use of, any funds raised by the district.
  2. Any person violating the provisions of this section commits a felony and shall be:
    1. Fined in any sum not less than five hundred dollars ($500) nor more than five thousand dollars ($5,000); and
    2. Imprisoned in the state penitentiary not less than one (1) year nor more than ten (10) years.

History. Acts 1909, No. 80, §§ 3, 4, p. 222; C. & M. Dig., §§ 5706, 5713; Pope's Dig., §§ 7345, 7352; Acts 1975, No. 928, § 7; A.S.A. 1947, §§ 20-122, 20-123.

Publisher's Notes. Acts 1975, No. 928, § 2, provided that, notwithstanding that all or part of a statute defining a criminal offense is amended or repealed by this act, the provisions so amended or repealed shall remain in force for the purpose of authorizing the prosecution, conviction, and punishment of a person committing an offense under the provisions prior to the effective date of this act.

Case Notes

Constitutionality.

Subsection (b) is valid. Wilson v. Magnolia Petroleum Co., 181 Ark. 391, 26 S.W.2d 92 (1930).

14-88-403. Appointment of collector and treasurer generally.

  1. The board of a municipal improvement district shall appoint the collector and treasurer of the district, who shall take the oath of office required by § 14-88-302 and shall execute bond to the chairman of the board, each in a sum at least equal to twice the amount of moneys which will probably come to their hands, with good and sufficient security, to be approved by the board. The bond shall be conditioned that they will faithfully discharge the duties of their office and account for and pay over all moneys that may come to their hands according to law and the orders of the board for the district for which they are appointed.
  2. The Cities of Little Rock and Pine Bluff shall have power to provide, by ordinance, that the city collector shall be ex officio collector of improvement districts and to provide the manner of collecting and the compensation to be paid.
  3. The same person may be treasurer or collector of one (1) or more districts in the city or town, but the moneys of the different districts shall be kept separately.

History. Acts 1881, No. 84, § 11, p. 161; 1897, No. 16, § 2, p. 23; C. & M. Dig., §§ 5702, 5703; Pope's Dig., §§ 7339, 7342; A.S.A. 1947, §§ 20-124, 20-125.

Case Notes

Ex Officio Collectors.

In view of this section, the clerk and the city collector of North Little Rock was not the collector of improvement districts in such city and a bond given for the faithful performance of his duties did not cover a defalcation in regard to funds belonging to improvement districts collected by him. Aetna Cas. & Sur. Co. v. City of North Little Rock, 157 Ark. 291, 248 S.W. 294 (1923).

Liability.

In an action by an improvement district to hold the city liable for funds of the district deposited by the city collector in the district's authorized depository bank and lost in the bank's subsequent failure, it was held that the collector being dead and only one commissioner testifying that he did not authorize the deposit, it will not be presumed that the deposit was unauthorized, especially in view of the custom shown to exist of the collector making such deposits only upon a request of a representative of the district. Board of Comm'rs v. City of Little Rock, 190 Ark. 27, 76 S.W.2d 667 (1935).

14-88-404. Appointment of treasurer.

    1. A municipal board of improvement may appoint a treasurer of the district, who shall take the oath of office prescribed by § 14-88-302 and shall execute a bond in favor of the board in a sum equal to the amount of moneys that will probably come into his or her hands in any one (1) year.
    2. The bond shall be signed by a corporate surety company authorized to do business as such in this state. It shall be conditioned that the treasurer will faithfully discharge the duties of his or her office and that he or she will account for and pay over all moneys that may come into his or her hands according to law and the orders of the board.
  1. The same person may be treasurer of more than one (1) district, but moneys of each shall be kept separately.
    1. The treasurer shall pay out no moneys except on order of the board.
    2. Upon order of the board to pay out moneys, the chair or one (1) of the other commissioners appointed to act on behalf of the chair shall approve the warrant.

History. Acts 1949, No. 195, § 24; 1953, No. 210, § 1; A.S.A. 1947, § 20-124.1; Acts 2007, No. 131, § 1.

Publisher's Notes. This section does not apply to municipal improvement districts in existence prior to July 1, 1952. See §§ 14-90-102, 14-90-103.

14-88-405. City improvement collector.

  1. The city councils of the cities of the first and second class are authorized and empowered to designate and appoint someone to collect all of the city improvement taxes, to be known as “city improvement collector.”
  2. When so appointed by the council, the collector shall have exclusive power and authority to collect the taxes in all improvement districts lying wholly or partially within the city, except such taxes as are collected by the regular county tax collector.
  3. The collector may or may not be a city official.
  4. The collector shall receive such remuneration as shall be fixed by the city council.
  5. The collector shall be required to give a bond for the faithful discharge of his duties as approved by the council.
  6. The collector's term of office shall be fixed by the council.
  7. The collector shall maintain an office or place of business open at all reasonable hours.
    1. When any collector has been appointed under the provisions of this section and has qualified by giving bond, it shall be the duty of all persons at that time who are collecting such taxes to at once turn over to the collector all books and records in their possession pertaining to the collections.
    2. Anyone failing to comply with the provisions of this subsection shall be deemed guilty of a misdemeanor and upon conviction shall be fined in any sum not less than fifty dollars ($50.00) nor more than five hundred dollars ($500).

History. Acts 1935, No. 78, §§ 1, 2; Pope's Dig., §§ 7340, 7341, 9663, 9664; A.S.A. 1947, §§ 20-126, 20-127.

14-88-406. Attorney of cities of the second class and towns.

    1. In all cities of the second class and incorporated towns within the State of Arkansas, the attorney representing the municipality may be the attorney for all boards and commissioners of all local improvement districts within the city or incorporated town.
    2. Municipal improvement districts formed under § 14-88-201 et seq. for the purpose of acquiring, constructing, operating, or maintaining a recreational facility, and local improvement districts within cities of the second class or incorporated towns, may, at their option, employ private attorneys in lieu of the city attorney.
    1. It shall be the duty of the attorney to:
      1. Advise the board at any time needed;
      2. Do all things enjoined upon him by the commissioners; and
      3. Perform all legal duties pertaining to the formation and operation of the district.
    2. The attorney shall represent a board in all suits brought for or against it.
  1. The attorney shall receive as his compensation such fees as may be agreed upon by the boards.

History. Acts 1931, No. 224, §§ 1-3; Pope's Dig., §§ 7338, 9757-9759; Acts 1985, No. 179, § 6; A.S.A. 1947, §§ 20-128 — 20-130; Acts 1995, No. 362, § 1.

Amendments. The 1995 amendment substituted “may” for “shall” in (a)(1); substituted “§ 14-88-201 et seq.” for “§ 14-88-202 et seq.” and inserted “and local improvement districts within cities of the second class or incorporated towns” in (a)(2); deleted the former last sentence in (c); and made stylistic changes.

Case Notes

Constitutionality.

This section is not objectionable as unequal in application or restricting the municipality's right to contract. Water Improv. Dist. v. Briner, 185 Ark. 742, 48 S.W.2d 1104 (1932).

Power to Employ.

Commissioners of city, acting as a board for the improvement districts therein, had power to employ the city attorney to represent all such districts in all legal matters and to prorate such attorney's continuing salary for such services among the districts. Bourland v. Coleman, 187 Ark. 392, 60 S.W.2d 1021 (1933).

Private Attorneys.

Under this section, an improvement district in a city of the second class or town cannot employ another attorney to sue for delinquent assessments. Water Improv. Dist. v. Briner, 185 Ark. 742, 48 S.W.2d 1104 (1932).

14-88-407. Oath of assessor.

The oaths of office of the assessors of municipal districts may be taken before any officer authorized to administer oaths.

History. Acts 1929, No. 64, § 20; Pope's Dig., § 7354; A.S.A. 1947, § 20-114.

Subchapter 5 — Affairs of Districts

Effective Dates. Acts 1893, No. 158, § 3: effective on passage.

Acts 1899, No. 94, § 2: effective on passage.

Acts 1913, No. 125, § 9: approved Mar. 3, 1913. Emergency declared.

Acts 1919, No. 280, § 2: approved Mar. 17, 1919. Emergency declared.

Acts 1929, No. 64, § 23: approved Feb. 28, 1929. Emergency clause provided: “It is ascertained and hereby declared that by reason of the inability under the present laws to extend water mains and repair water plants there is great danger of conflagration, that by reason of the inability to extend electric light plants there is great danger to the public peace and safety, owing to the darkness of the streets, and that by reason of the inability to extend and repair sewers there is great danger to the public health, and that for these reasons it is immediately necessary that this act should go into operation, and it is therefore declared that an emergency exists, and this act shall be in force and effect from and after its passage.”

Acts 1967, No. 163, § 7: Feb. 28, 1967. Emergency clause provided: “It has been found and determined by the General Assembly that in many cities and towns in the State of Arkansas the streets and highways are subject to heavy traffic by motor vehicles, that on account of parking motor vehicles in the streets and the lack of facilities for off-street parking of motor vehicles, vehicular traffic in the said streets and highways is made dangerous to drivers and to pedestrians, and that on account thereof the streets and highways are made hazardous to the property and lives of the residents of the State of Arkansas; that it is necessary in order to protect the property and lives of the residents of the State of Arkansas to provide adequate facilities for the off-street parking of motor vehicles and that only by the passage of this Act and giving it immediate effect can the lives and property of the residents of the State of Arkansas be protected. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

14-88-501. Sale or lease of improvements.

  1. Any improvement district organized under the provisions of this chapter after February 1, 1967, may sell or lease its improvement, or any part thereof, to the city or town or to a public authority or other agency serving on behalf of the property owners of the district on such terms as the commissioners of the improvement board may deem for the best interest of the district and apply the proceeds therefrom on the payment of the principal of and interest on its outstanding bonds, if any, together with any paying agent's or other charges in connection therewith.
  2. The city or town within which the district is located is authorized to purchase or to lease as lessee and to operate the improvement of the district on such terms as it may agree with the commissioners.

History. Acts 1967, No. 163, § 5; A.S.A. 1947, § 20-140.

Case Notes

Cited: McClure v. City Council of Paragould, 255 Ark. 521, 501 S.W.2d 247 (1973).

14-88-502. Improvements outside limits.

When, in the opinion of the board of a municipal improvement district or the boards of different improvement districts, where combined and acting together in a city or town, it shall be necessary for the benefit of the inhabitants residing in the district or districts, it shall be lawful for money raised by assessment in the districts to be expended in:

  1. The purchase of lands or erection of houses, reservoirs, or other improvements necessary for the proper construction and operation of waterworks outside of the limits of the city or town in which the districts exist;
  2. The construction and operation of any portion of a sewerage system, or acquisition of rights-of-way therefor, which may be extended outside of the limits of any such city, town, or improvement district.

History. Acts 1881, No. 84, § 3, p. 161; 1893, No. 158, § 1, p. 271; 1899, No. 94, § 1, p. 156; C. & M. Dig., § 5735; Pope's Dig., § 7363; A.S.A. 1947, § 20-119.

Case Notes

Sewerage Systems.

Where a sewer is extended beyond the limits of a city or improvement district to obtain a proper outlet, an assessment may be levied to secure such outlet. Kraft v. Smothers, 103 Ark. 269, 146 S.W. 505 (1912).

14-88-503. Annexation of territory to district.

    1. When persons claiming to be a majority in value of the owners of real property in any territory contiguous to any improvement district organized in any city or town desire that the territory shall be annexed to the district, they may present their petition in writing to the city or town council, describing the territory to be annexed and the character of the improvement desired.
    2. Thereupon, the city or town council shall direct the clerk or recorder to publish for two (2) weeks, in some newspaper issued and having a general circulation in the county where the city or town is situated, a notice calling upon the property owners to appear before the council on a day named and show cause for or against the annexation.
    1. On the day named in the notice, the council shall hear all persons who desire to be heard on the question whether a majority in value of the owners of real property in the territory sought to be annexed have signed the petition.
    2. Its findings shall have all the force and effect of a judgment and shall be conclusive unless, within thirty (30) days thereafter, suit is brought in the chancery court to review it.
  1. The finding of the council shall be expressed in an ordinance in case it is in favor of the petitioners, and in that event, the territory sought to be annexed shall become a part of the district, and the improvements petitioned for shall be made by the commissioners on the board of improvement.
  2. The commissioners shall make the assessment for the improvement on the territory annexed under the provision of this section on the same basis as if the territory was included in the original district.
  3. If petitioned for, the improvement in the territory annexed may be of different material or of a different method of construction from that in the original district.

History. Acts 1919, No. 280, § 1; C. & M. Dig., § 5733; Pope's Dig., § 7389; A.S.A. 1947, § 20-134.

Cross References. Annexation of territory upon extension of water, electric light, or sewer system, § 14-91-502.

Research References

U. Ark. Little Rock L.J.

Survey of Arkansas Law, Public Law, 1 U. Ark. Little Rock L.J. 230.

Case Notes

In General.

Original improvement district and annexation must have separate assessments, bond issues, and construction contracts. Bahlau v. Bloom, 154 Ark. 349, 242 S.W. 547 (1922).

Assessments.

Where territory is annexed, the assessed benefits cannot exceed the limit of cost of the total value of the property in the entire district. White v. Loughborough, 125 Ark. 57, 188 S.W. 10 (1916); Blackburn v. Dunlap, 143 Ark. 625, 221 S.W. 176 (1920).

New assessors must be elected by the council if it should find that the old board had finished the original assessment. Board of Comm'rs v. City of Little Rock, 174 Ark. 519, 295 S.W. 972 (1927).

Improvements.

This section contemplates that, when territory is annexed, the improvements in the annexed territory are to be made by the commissioners of the districts according to the provisions of § 14-86-1501 et seq. which, among other things, govern as to the mode of assessing benefits. Poe v. Street Imp. Dist., 159 Ark. 569, 252 S.W. 616 (1923).

Improvement in annex must be of same general character as in original district; one district to pave and one to curb and gutter cannot be annexed to an original district, the purpose of which was to pave. Price v. Street Imp. Dist., 169 Ark. 787, 276 S.W. 861 (1925).

Notice.

A notice which does not describe the territory to be annexed is void. Blackburn v. Dunlap, 143 Ark. 625, 221 S.W. 176 (1920).

Petition.

The petition need not limit the cost, but it must be proportionate to that of the original district. Pledger v. Soltz, 169 Ark. 1125, 278 S.W. 50 (1925); Carnahan v. City of Fayetteville, 175 Ark. 405, 1 S.W.2d 10 (1927).

Territory Annexed.

An annexation may embrace property in the original district and may be for work partly within it. Miller v. Seymour, 156 Ark. 273, 245 S.W. 811 (1922); Davidson v. Sewer Improv. Dist., 182 Ark. 741, 32 S.W.2d 1062 (1930).

Cited: Hazen v. City of Booneville, 260 Ark. 871, 545 S.W.2d 614 (1977).

14-88-504. Priority of suits.

  1. All suits which involve the validity of any municipal improvement district, of its assessment of benefits or any individual assessment, or of its power to make the improvement petitioned for, or which involve the title to office of any of the commissioners or assessors of the district, and all suits to collect its taxes laid on its assessed benefits, shall be deemed suits involving the public interest and shall be advanced in all courts and heard at the earliest practical moment.
  2. All appeals in these suits shall be taken and perfected within thirty (30) days.

History. Acts 1913, No. 125, § 4; C. & M. Dig., § 5655; Acts 1929, No. 64, § 5; Pope's Dig., § 7289; A.S.A. 1947, § 20-132.

14-88-505. Records of meetings.

  1. The commissioners of a municipal improvement district shall maintain on file for inspection and copying a record of regular and special meetings of the municipal improvement district board.
  2. The records kept under subsection (a) of this section shall include without limitation:
    1. Meeting notices with date, time, and location;
    2. Meeting agendas;
    3. Detailed minutes of meetings;
    4. Financial reports with supporting bank statements; and
    5. Actions taken by the board with supporting documentation and plans, if any.

History. Acts 2013, No. 1428, § 1.

Subchapter 6 — Dissolution of Districts

14-88-601. Applicability.

  1. This subchapter shall not apply to any municipal improvement district which operates a water system, a sewerage system, or an electric light or power system; nor to any district whose commissioners are elected by property owners; nor to any district which is repairing streets, sidewalks, or other improvements from the proceeds of redemptions or sales of lands forfeited to it under previously existing laws.
  2. This subchapter shall not apply to any municipal wharf improvement district or municipal paving improvement district which is entitled to, is eligible for, and can qualify for state aid and has not received any or all thereof.

History. Acts 1945, No. 215, § 1; A.S.A. 1947, § 20-136.

14-88-602. Authority to wind up affairs.

In any and all municipal improvement districts which, at the time of their organization, had boundaries coextensive with the city or town in which they were located, which have paid their bonds and other obligations and have levied no tax for the past five (5) years, and which still hold title to lands purchased at foreclosure sale for delinquent taxes or have past due taxes owing, and the commissioners on the board of improvement of the district have no further duties to perform except the collection of delinquent taxes, the commissioners may proceed to wind up their affairs as set out in this subchapter.

History. Acts 1945, No. 215, § 1; A.S.A. 1947, § 20-136.

Case Notes

In General.

This section providing method for winding up of affairs of improvement district is not an exclusive method, nor is it compulsory. Searcy Fed. Sav. & Loan Ass'n v. Searcy, 221 Ark. 360, 253 S.W.2d 211 (1952).

Funds.

City could not require banks holding funds of improvement district whose bonds had been paid to turn funds over to city for purpose of street repairs. Searcy Fed. Sav. & Loan Ass'n v. Searcy, 221 Ark. 360, 253 S.W.2d 211 (1952) (decision prior to enactment of § 14-89-1301).

14-88-603. Procedures and final report.

  1. The commissioners on the board of a municipal improvement district shall execute a deed in favor of the city conveying all real estate as to which it holds title and shall turn over to the city clerk a list of all lands which have not been sold to the district, but which are delinquent for nonpayment of taxes, and shall pay to the city all funds which it has on hand.
  2. The commissioners shall then file with the city or town council a final report bringing up to date its receipts and disbursements since the last annual report filed by it in compliance with § 14-89-1102.
  3. The city or town council shall examine and readjust the annual report as set out in § 14-89-1103.
  4. If the city or town council approves the report, the commissioners shall stand discharged from their duties in such capacity, and thereafter the city or town collector shall handle the collection of all delinquent taxes due the districts.

History. Acts 1945, No. 215, § 2; A.S.A. 1947, § 20-137.

14-88-604. Conveyances of lands.

All conveyances which are necessary as to lands to which a municipal improvement district holds title shall be executed under the hand of the mayor or acting mayor. The city or town seal shall be attached thereto, which shall be attested by the city or town clerk.

History. Acts 1945, No. 215, § 3; A.S.A. 1947, § 20-138.

14-88-605. Redemption of lands.

  1. Any person holding an interest in any land sold or delinquent to any municipal improvement district shall be permitted to obtain a deed or redemption receipt, as the case may be, by payment of the amount for which the land was sold to the district, without interest, or the face of the tax for which the land is delinquent in the event it has not been sold to the district.
  2. All moneys received from any of these redemptions shall be placed in the street fund of the city and shall be used in the maintenance of the streets of the district. No funds so received by the city shall be diverted from the street fund and used for any other purposes.

History. Acts 1945, No. 215, § 4; A.S.A. 1947, § 20-139.

Chapter 89 Fiscal Affairs of Municipal Improvement Districts

Subchapter 1 — General Provisions

Cross References. Borrowing and bankruptcy, § 14-74-101 et seq.

Effective Dates. Acts 1985, No. 22, § 4: Feb. 5, 1985. Emergency clause provided: “It is hereby found and determined by the General Assembly that municipal improvement districts should be required to file annual reports in the manner prescribed by Act 154 of 1959 for other improvement districts; that Act 154 of 1959 requires annual financial reports to be filed by March of each year; and that this Act is immediately necessary in order to be implemented in time for the March 1985 reporting deadline. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Research References

C.J.S. 84 C.J.S., Tax., § 202.

14-89-101. Applicability of water district accounting law.

  1. Each municipal improvement district of any kind heretofore or hereafter established pursuant to the provisions of §§ 14-88-203, 14-88-205 — 14-88-207 shall be subject to and shall comply with the provisions of § 14-119-101 et seq.
  2. If the board of improvement of any improvement district established pursuant to §§ 14-88-203, 14-88-205 — 14-88-207 fails or refuses to comply with any provision of § 14-119-101 et seq., such failure or refusal shall constitute misfeasance in office and shall be grounds for removal of the members of the board from office.

History. Acts 1985, No. 22, § 1; A.S.A. 1947, § 20-247.

Subchapter 2 — Borrowing of Money

Cross References. Borrowing money for repairs, replacements, improvements, and extensions of waterworks, electric plants, and sewers, § 14-91-501.

Effective Dates. Acts 1897 (Ex. Sess.), No. 47, § 2: effective on passage.

Acts 1929, No. 64, § 23: approved Feb. 28, 1929. Emergency clause provided: “It is ascertained and hereby declared that by reason of the inability under the present laws to extend water mains and repair water plants there is great danger of conflagration, that by reason of the inability to extend electric light plants there is great danger to the public peace and safety, owing to the darkness of the streets, and that by reason of the inability to extend and repair sewers there is great danger to the public health, and that for these reasons it is immediately necessary that this act should go into operation, and it is therefore declared that an emergency exists, and this act shall be in force and effect from and after its passage.”

Acts 1929, No. 207, § 3: approved Mar. 27, 1929. Emergency clause provided: “It is ascertained and hereby declared that the lighting of the streets of our cities is necessary for the safety of the traveling public, and that for want of proper lighting of the streets great facilities are given to highwaymen and other criminals in the perpetration of crimes against the public peace and safety; and it is therefore ascertained and hereby declared that the immediate operation of this act is essential for the preservation of the public peace and safety, and an emergency is therefore declared, and this act shall take effect and be in force from and after its passage.”

Acts 1941, No. 310, § 3: approved Mar. 26, 1941. Emergency clause provided: “It is hereby ascertained and declared that the passage of this act is essential in the making of public improvements throughout the State of Arkansas by which grade crossings may be eliminated and the overflow of public highways may be prevented, and highways may be made safer in other ways and that therefore there is an urgent need that this Act go into immediate operation, and that its immediate operation is essential to the public safety. An emergency is therefore declared, and it is hereby provided that it shall take effect and be in force immediately upon its passage.”

Acts 1967, No. 163, § 7: Feb. 28, 1967. Emergency clause provided: “It has been found and determined by the General Assembly that in many cities and towns in the State of Arkansas the streets and highways are subject to heavy traffic by motor vehicles, that on account of parking motor vehicles in the streets and the lack of facilities for off-street parking of motor vehicles, vehicular traffic in the said streets and highways is made dangerous to drivers and to pedestrians, and that on account thereof the streets and highways are made hazardous to the property and lives of the residents of the State of Arkansas; that it is necessary in order to protect the property and lives of the residents of the State of Arkansas to provide adequate facilities for the off-street parking of motor vehicles and that only by the passage of this Act and giving it immediate effect can the lives and property of the residents of the State of Arkansas be protected. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1970 (Ex. Sess.), No. 45, § 4: Mar. 13, 1970. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 1975, No. 224, § 5: became law without Governor's signature, Feb. 19, 1975. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations and that the existing mandatory form of assessment ordinance for municipal improvement districts is unduly restrictive to the financing of such improvements, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 1981, No. 425, § 54: Mar. 11, 1981. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Case Notes

Issuance of Bonds.

Sewer improvement districts are not bound by the provisions of Ark. Const., Art. 16, § 1. Even if, under City of Hot Springs v. Creviston, 288 Ark. 286, 705 S.W.2d 415 and Hot Springs v. Creviston, 288 Ark. 286, 288 Ark. 293A, 713 S.W.2d 230 (1986), bonds issued by a sewer improvement district were held to be under the restrictions of Ark. Const., Art. 16, requiring an election prior to the issuance of bonds, bonds issued prior to that decision were not affected by it. Bell v. Fulkerson, 291 Ark. 604, 727 S.W.2d 141 (1987).

14-89-201. Authority generally.

  1. For preliminary expenses and to raise money to do the work or to pay for an improvement already completed, a municipal improvement district board may:
    1. Borrow money not exceeding the estimated cost thereof, including interest on the money borrowed to a date six (6) months subsequent to the estimated date of completion of the work and a reserve not to exceed one (1) year's principal and interest requirements;
    2. To that extent, issue negotiable bonds or certificates of indebtedness bearing interest at rates provided in the resolution authorizing their issuance; and
    3. Pledge and mortgage all uncollected assessments for the payment thereof.
    1. The board may also issue its negotiable bonds for the purpose of funding or refunding any of the floating debts of the improvement district or any outstanding bonds, including interest thereon due or about to become due, whether or not represented by coupons or interest certificates, theretofore issued to finance the construction of such an improvement already completed, including sewer systems, or to finance any betterments, extensions, or repairs thereto, irrespective of whether the outstanding bonds were originally issued by the improvement district.
      1. The funding or refunding bonds may be exchanged for the outstanding bonds or interest thereon as provided in this section, or they may be sold and the proceeds thereof used in the retirement of the outstanding bonds and interest.
        1. It shall be a felony for any officer of the district or any other person to use the proceeds of the funding or refunding bonds for any other purpose than that for which they are issued.
        2. The party guilty of such a felony shall be punished as provided in §§ 14-88-309, 14-88-310, 14-88-402.
    2. For the repayment of funding or refunding bonds, the board may pledge and mortgage all uncollected assessments.

History. Acts 1881, No. 84, § 17, p. 161; C. & M. Dig., § 5708; Acts 1929, No. 64, § 17; Pope's Dig., § 7347; Acts 1941, No. 310, § 2; 1967, No. 163, § 3; 1970 (Ex. Sess.), No. 45, § 1; 1975, No. 224, § 2; 1981, No. 425, § 28; A.S.A. 1947, § 20-201.

Cross References. Issuance of bonds for preliminary expenses, § 14-86-702.

Case Notes

Constitutionality.

An improvement district is not a “municipality” nor the agent of one within Ark. Const., Art. 16, § 1, which prohibits a county or municipality from issuing interest bearing evidences of debt. Fitzgerald v. Walker, 55 Ark. 148, 17 S.W. 702 (1891).

An improvement district is not a municipality and is not bound by the restrictions contained in Ark. Const., Art. 16, requiring an election prior to the issuance of bonds. Bell v. Fulkerson, 291 Ark. 604, 727 S.W.2d 141 (1987).

Bonds.

Improvement districts may sell their bonds at private sale and below par where not prohibited by statute. Hopson v. Hellums, 108 Ark. 460, 158 S.W. 771 (1913).

Where improvement district was authorized to borrow money, the power to issue negotiable bonds was implied. Logan v. Sidewalk Dist., 163 Ark. 591, 260 S.W. 407 (1924) (decision prior to 1929 amendment).

The security of the original pledge follows refunding bonds. Simpson v. Little Rock-North Heights Water Dist., 191 Ark. 451, 86 S.W.2d 423 (1935).

Estimated Cost.

The “estimated cost” is the estimated cost as reported to the municipal council and on file with the city clerk. Meyer v. Ring, 162 Ark. 9, 257 S.W. 388 (1924).

14-89-202. Mortgage of water and light plants.

  1. Any district improvement board in any city or incorporated town in this state, in addition to the power given to the board by any statute to pledge all uncollected assessments to secure money borrowed by the board for the purpose of and use in the building, construction, and putting into operation a system of waterworks or an electric light plant in any district shall also have the power to mortgage any waterworks system or electric light plant to secure the payment of money borrowed by any of the boards as indicated and used in the building and putting into operation any waterworks system or electric light plant in any improvement district in any city or incorporated town in this state.
  2. Any such mortgagee or his assignees shall have all the rights against the property as is given mortgagees on property of individuals, either at law or in equity.

History. Acts 1897 (Ex. Sess.), No. 47, § 1, p. 114; C. & M. Dig., § 5709; Pope's Dig., § 7348; A.S.A. 1947, § 20-204.

14-89-203. Electric streetlight districts in cities with a population of more than 10,000.

Improvement districts for the purpose of installing electric streetlights in cities having more than ten thousand (10,000) inhabitants may borrow money for the purpose of doing the work of construction at a rate of interest provided in the resolution of the board of improvement and may mortgage their improvements and pledge their income as security for the money borrowed, and they may execute negotiable bonds for the money borrowed.

History. Acts 1929, No. 207, § 2; 1981, No. 425, § 31; A.S.A. 1947, § 20-202.

Subchapter 3 — Payment of Bonds

Effective Dates. Acts 1927, No. 201, § 2: approved Mar. 23, 1927. Emergency clause provided: “Since certain municipal corporations and boards of commissioners having controlled the work completed by improvement district have on hand funds recovered in litigation or accumulated from operating expenses which are likely to be dissipated or squandered, an emergency is hereby declared to exist, and this act being necessary for the immediate preservation of the public peace, health and safety, the same shall take effect and be in force from and after its passage.”

Acts 1929, No. 64, § 23: approved Feb. 28, 1929. Emergency clause provided: “It is ascertained and hereby declared that by reason of the inability under the present laws to extend water mains and repair water plants there is great danger of conflagration, that by reason of the inability to extend electric light plants there is great danger to the public peace and safety, owing to the darkness of the streets, and that by reason of the inability to extend and repair sewers there is great danger to the public health, and that for these reasons it is immediately necessary that this act should go into operation, and it is therefore declared that an emergency exists, and this act shall be in force and effect from and after its passage.”

14-89-301. Use of funds to pay off.

It shall be lawful for any municipal corporation or board of commissioners having control of any improvement district within a municipal corporation, or any work completed by any district, to appropriate and use any funds recovered in litigation or for operating expenses for the purpose of paying off any bonded indebtedness of the district when the funds are not needed for the operating expenses of the district.

History. Acts 1927, No. 201, § 1; Pope's Dig., § 7361; A.S.A. 1947, § 20-208.

14-89-302. Default in payment.

  1. If any bond or interest coupon on any bond issued by any municipal improvement district is not paid within sixty (60) days after its maturity, it shall be the duty of the chancery court, on application of the trustee for the bondholders or of the holder of any such bond or coupons overdue to cause the collection of the taxes of the district and appoint an assessor to reassess the benefits, if necessary.
  2. The proceeds of the taxes and collections shall be applied after payment of cost, first to overdue interest and then to payment pro rata of all bonds issued by the board, which are then due and payable.
  3. The commissioners may be directed by suit to foreclose the lien of the taxes on the land. A suit so brought by the commissioners shall be conducted in all matters as suits by the board and with like effect, and the decrees and deeds therein shall have the same presumptions in their favor.

History. Acts 1929, No. 64, § 22; Pope's Dig., § 7337; A.S.A. 1947, § 20-203.

Cross References. Collection in municipal bridge, suburban, and road districts, § 14-86-802.

Case Notes

Overdue Interest.

An order was void which directed the purchase of bonds not due at 50 percent discount from taxes collected leaving overdue interest unpaid. Dickinson v. Mingea, 191 Ark. 946, 88 S.W.2d 807 (1935).

Subchapter 4 — Refunding Indebtedness

Cross References. Reorganizing districts upon issuance of refunding bonds, § 14-87-101 et seq.

Sale of refunding bonds when old bonds cannot be presented for payment, § 19-9-302.

Effective Dates. Acts 1933, No. 112, § 5: approved Mar. 18, 1933. Emergency clause provided: “It is ascertained and hereby declared that by reason of the inability of many improvement districts to pay their maturing bonds and interest coupons, there is grave danger that the taxpayers in such districts will lose their homes and that disorder and civil disturbance may result and this act is necessary for the preservation of the public peace, health and safety, and it is therefore declared that an emergency exists, and this act shall be in force and effect from and after its passage.”

Acts 1937, No. 241, § 2: approved Mar. 10, 1937. Emergency clause provided: “It is ascertained and hereby declared that many improvement districts are unable to pay their maturing bonds and interest coupons, that judgments have been secured on such bonds, that by reason of the above mentioned conditions there is grave danger that the taxpayers in such districts will lose their homes through foreclosure of the lien securing the payment of the bonds, that such loss of homes would cause disorder and civil disturbance; and that this act is therefore necessary for the preservation of the public peace, health and safety. It is therefore declared that an emergency exists, and that this act shall be in force and effect from and after its passage.”

Acts 1970 (Ex. Sess.), No. 43, § 4: Mar. 13, 1970. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 1975, No. 225, § 26: became law without Governor's signature, Feb. 19, 1975. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this state and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this act. Therefore, an emergency is declared to exist and this act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 1981, No. 425, § 54: Mar. 11, 1981. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 1985, No. 828, § 2: Apr. 4, 1985. Emergency clause provided: “It is hereby found and determined by the General Assembly that Section 1 of Act 112 of 1933 was amended by Section 11 of Act 425 of 1981 to clarify the maximum rate of interest that may be charged with respect to refunding bonds issued by municipal improvement districts, but that through an oversight Section 2 of said Act was not amended and said Section still contains a limitation of six percent on the maximum rate of interest that may be charged with respect to such refunding bonds, and that such inconsistency is prohibiting municipal improvement districts from issuing refunding bonds under current market conditions, and that the immediate passage of this Act is necessary to correct such inconsistency. Therefore, an emergency is hereby declared to exist and this Act, being immediately necessary for the preservation of the public peace, health, and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1985, No. 865, § 2: Apr. 4, 1985. Emergency clause provided: “It is hereby found and determined by the General Assembly that Section 1 of Act 112 of 1933 was amended by Section 11 of Act 425 of 1981 to clarify the maximum rate of interest that may be charged with respect to refunding bonds issued by municipal improvement districts, but that through an oversight Section 2 of said Act was not amended and said Section still contains a limitation of six percent on the maximum rate of interest that may be charged with respect to such refunding bonds, and that such inconsistency is prohibiting municipal improvement districts from issuing refunding bonds under current market conditions, and that the immediate passage of this Act is necessary to correct such inconsistency. Therefore, an emergency is hereby declared to exist and this Act, being immediately necessary for the preservation of the public peace, health, and safety, shall be in full force and effect from and after its passage and approval.”

Case Notes

Constitutionality.

This subchapter is not unconstitutional as providing for expenses not in the property owner's minds when the petition for the improvement is signed and the assessment of benefits made. Benton v. Nowlin, 187 Ark. 738, 62 S.W.2d 16 (1933).

Construction.

This subchapter constitutes a grant of power to municipal improvement districts and is not mandatory. Whitaker & Co. v. Sewer Improv. Dist. No. 1, 221 F.2d 649 (8th Cir. 1955).

Applicability.

This subchapter is prospective in applicability. Whitaker & Co. v. Sewer Improv. Dist. No. 1, 221 F.2d 649 (8th Cir. 1955).

14-89-401. Purpose.

This subchapter is intended to permit only the refunding of valid outstanding bonds and accrued matured interest on the bonds of any municipal improvement district, expressly including bonds on which judgment has been rendered in any court and not including any other form of indebtedness, and then only after the board of improvement thirty (30) days prior to the actual refunding has given notice to do so in some newspaper of bona fide circulation in the county where the district which will refund is located.

History. Acts 1933, No. 112, § 1; 1937, No. 241, § 1; Pope's Dig., § 11343; Acts 1970 (Ex. Sess.), No. 43, § 1; 1975, No. 225, § 11; 1981, No. 425, § 11; A.S.A. 1947, § 20-205.

14-89-402. Authority generally.

  1. Any municipal improvement district of any city of the first or second class or incorporated town of this state shall have the power to fund and refund its outstanding indebtedness, including its bonded indebtedness and accrued matured interest on the indebtedness, and to extend the maturity of the indebtedness on such terms as the commissioners of the district shall deem for the best interest of the district. To that end, the district may issue the negotiable bonds of the district, with interest coupons attached. These refunding bonds shall run for a period not exceeding fifty (50) years from date thereof.
  2. The commissioners of the district may exchange new bonds for outstanding bonds, including accrued matured interest thereon, or may issue and sell new bonds and use the proceeds thereof to take up any of the outstanding bonds or other indebtedness of the district in the refunding thereof.
  3. These refunding bonds shall not be issued in a greater amount than is necessary to pay the outstanding bonds and accrued interest coupons then being refunded, with interest to the date the new bonds are delivered, plus expenses incurred in connection with the issuance of the new bonds. They shall not be delivered except upon the surrender and cancellation of a proportionate part of the indebtedness being refunded.
  4. These refunding bonds shall bear interest at such rate or rates as the commissioners shall provide in the resolution authorizing their issuance.

History. Acts 1933, No. 112, § 1; 1937, No. 241, § 1; Pope's Dig., § 11343; Acts 1970 (Ex. Sess.), No. 43, § 1; 1975, No. 225, § 11; 1981, No. 425, § 11; A.S.A. 1947, § 20-205.

14-89-403. Methods of raising revenue.

In order to provide for the additional interest requirement of refunding bonds and the expense incurred in connection with the issuance of refunding bonds, a municipal improvement district issuing refunding bonds may follow any one (1) of the alternative procedures hereinafter outlined and designated as subdivisions (1) and (2) of this section:

  1. A district issuing refunding bonds may provide by resolution of the board of commissioners, duly adopted, that the entire balance unpaid on the date of the refunding bonds of the assessment of benefits against each lot, block, and parcel of land and railroad track and right-of-way shall draw interest at any rate deemed advisable or necessary, as provided in the resolution of the commissioners authorizing the issuance of the refunding bonds, from the date of the refunding bonds until paid. However, the interest need not be collected until it is necessary to do so to avoid exceeding the total amount of benefits and, if collected, shall be collected on each installment or annual levy separately. After the date of the refunding bonds, the annual levies of assessment of benefits shall be collected on the balance unpaid on the date of said refunding bonds against each lot, block, and parcel of land and railroad track and right-of-way in the improvement district. A certified copy of the resolution shall be filed by the secretary of the district with the collector of the district; or
  2. A district issuing refunding bonds may provide by resolution of the board of commissioners duly adopted that the entire balance unpaid on the date of the refunding bonds, for the assessment of benefits against each lot, block, and parcel of land and railroad track and right-of-way shall be the assessment of benefits against each respective lot, block, and parcel of land and railroad track and right-of-way for the refunding issue of bonds and shall draw interest, as provided in the resolution of the commissioners authorizing the issuance of the refunding bonds, from the date of the refunding bonds until paid. However, the interest need not be collected until it is necessary to do so to avoid exceeding the total amount of benefits and, if collected, shall be collected on each installment, or annual levy separately. After the date of the refunding bonds, the annual levies of the assessment of benefits shall be collected on the respective assessments of benefits as thus fixed against each lot, block, and parcel of land and railroad track and right-of-way, with or without an interest charge thereon, as the commissioners may deem necessary. However, when such a resolution is adopted by the board, it shall be certified by the secretary of the district, and it shall be filed with the city clerk or town recorder who shall publish in some newspaper published in the city or town, if there be one, and if not then in some newspaper published in the county and having a bona fide circulation in the city or town, a notice which shall be in the following form:

“NOTICE TO OWNERS OF PROPERTY IN IMPROVEMENT DISTRICT NO. OF , ARKANSAS. NOTICE IS HEREBY GIVEN that the Commissioner(s) of Improvement District No. of , Arkansas, have filed with the undersigned a resolution fixing the assessment of benefits on each lot, block and parcel of land and railroad track and right-of-way in said improvement district, and the same is now subject to inspection. Any property owner in said district may appeal to the City (or Town) Council within ten (10) days from this date. GIVEN this day of , 19 . City Clerk (or Town Recorder) of

Click to view form.

Within ten (10) days after the publication of the notice, the district or any property owner may apply to the city or town council to revise the assessment so made, and the district or the property owner may within thirty (30) days apply to the chancery court of the county to have the assessment revised and corrected. If no application is made to the council within ten (10) days or to the court within thirty (30) days, the assessment shall become final and incontestable, subject only to annual revision as provided by law. On appeal to the city or town council, a hearing can be had as prescribed in § 14-90-501. When the assessment is filed, the city clerk or town recorder shall make the corrections upon the original assessment roll on file in red ink, and shall certify said assessment to the collector of the district.

History. Acts 1933, No. 112, § 2; Pope's Dig., § 11344; Acts 1985, No. 828, § 1; 1985, No. 865, § 1; A.S.A. 1947, § 20-206.

Case Notes

Constitutionality.

This section is not unconstitutional as transferring the power to make assessments from assessors to commissioners. Benton v. Nowlin, 187 Ark. 738, 62 S.W.2d 16 (1933).

Construction.

The cardinal difference between subdivisions (1) and (2) is that under subdivision (1) the existing unpaid balance of betterments is finally determined to be the particular and total benefits as a basis for refunding, while under subdivision (2) an opportunity for reassessment of benefits is afforded any property owner in the district. Whitaker & Co. v. Sewer Improv. Dist. No. 1, 221 F.2d 649 (8th Cir. 1955).

Applicability.

This section expressly negatives any retroactive effect or applicability of interest on installment payment of benefits. Whitaker & Co. v. Sewer Improv. Dist. No. 1, 221 F.2d 649 (8th Cir. 1955).

Assessments.

No assessment of benefits can be levied by improvement district beyond that set out in the original assessment. Whitaker & Co. v. Sewer Improv. Dist. No. 1, 221 F.2d 649 (8th Cir. 1955).

Interest.

The provisions that interest on refunding bonds is to be levied only on the “entire balance unpaid on the date of the refunding bonds of the assessment of benefits against each lot, block, and parcel of land and railroad track and right-of-way … from the date of the refunding bonds until paid … clearly limit interest to the basis of unpaid benefit assessments which are such as of the date of the refunding bonds. Whitaker & Co. v. Sewer Improv. Dist. No. 1, 221 F.2d 649 (8th Cir. 1955).

Delinquent betterment assessments only draw interest from date of publication of notice of refunding. Whitaker & Co. v. Sewer Improv. Dist. No. 1, 221 F.2d 649 (8th Cir. 1955).

14-89-404. Form of bonds.

All refunding bonds shall be negotiable instruments and may have coupons evidencing interest, payable at annual or semiannual periods, and shall have all the rights of security, including liens on assessments of benefits and levy of taxes on the lands, together with all remedies for their collection that are provided for the original bonds issued by a municipal improvement district and may be further secured by a pledge and mortgage of the assessment of benefits and taxes in the district, to be executed by the commissioners.

History. Acts 1933, No. 112, § 3; Pope's Dig., § 11345; A.S.A. 1947, § 20-207.

Subchapter 5 — Receipt of Tax Revenues Generally

Cross References. County road tax, § 26-79-101 et seq.

Proportion of tax to suburban improvement districts, § 14-92-236.

Effective Dates. Acts 1939, No. 90, § 2: approved Feb. 15, 1939. Emergency clause provided: “Whereas there are incorporated towns and cities of the second class in counties having two levying courts which have formed, or will hereafter form, municipal improvement districts for the purpose of improving streets and alleys, and said districts are handicapped by lack of funds and inadequate collection of assessed benefits, this act is found necessary for the public peace, health and safety and an emergency is declared to exist and this act shall be in effect from and after the date of its passage.”

14-89-501. Road tax — Payment to certain improvement districts.

  1. In counties which have two (2) levying courts, in which there is an incorporated town or city of the second class that has formed any municipal improvement district for the purpose of improving any of its streets or alleys, the amount of the three-mill road tax collected by the county on property situated within the district shall be paid by the tax collector for the county directly to the collector for the district, to be expended as funds of the district.
  2. This section shall not apply in any manner to cities of the first class.

History. Acts 1939, No. 90, § 1; A.S.A. 1947, § 20-216.

14-89-502. Distribution of road tax in certain cities of the first class.

  1. Whenever, by an act of the General Assembly or by the order of a county court, the three-mill road tax collected on the property in a street improvement district and annex in a city of the first class is given to the district and annex, respectively, as an aid to the property owners on account of the extra width of the street or for any other reason, the commissioners on the board of improvement may, if they deem it fair and equitable, distribute between the district and the annex the total amount received for both the three-mill tax, in the proportion that the cost of the improvement in each bears to the total cost of the improvement in both.
  2. This section shall apply only to those counties having a population of eighty-five thousand (85,000) or more according to the latest federal census.

History. Acts 1927, No. 120, §§ 1, 2; Pope's Dig., §§ 9643, 9644; A.S.A. 1947, §§ 20-217, 20-218.

Subchapter 6 — District School Tax

Effective Dates. Acts 1933, No. 64, § 6: approved Mar. 2, 1933. Emergency clause provided: “In view of the facts which are hereby declared to exist that improvement districts of the foregoing type have been immune from school district taxation in this State notwithstanding the fact that they are revenue-producing, that the present shortage of school revenues in school districts where such improvement districts exist would be materially lessened by removing said exemption from taxation as applied to district school taxes and that the public school would be enabled to function longer as free public schools without compelling the patrons thereof to provide for private schools taught on a tuition basis, an emergency is hereby declared to exist; and this act, being necessary for the preservation of the public peace, health, and safety, shall take effect and be in force from and after its passage.”

14-89-601. Applicability.

  1. This subchapter shall apply in cities of the first class to any water, electric light, or power improvement district organized under the laws of this state, whether general or special, and operated by a governing improvement board of commissioners or directors elected by the vote of the property owners owning real property within the municipal improvement district.
  2. This subchapter shall likewise apply to such districts even when they may have been consolidated with each other or when a water district and a light district shall have been consolidated with a sewer district, though in the latter case the property owned by the sewer district or sewer department, as the case may be, shall not be subject to the terms of this subchapter.

History. Acts 1933, No. 64, § 1; Pope's Dig., § 10033; A.S.A. 1947, § 20-220.

14-89-602. Property subject to tax.

  1. The property, real and personal, of the kind of municipal improvement district described in § 14-89-601 shall be subject, in the school district of the domicile of the improvement district, to the district school tax levied by vote of the electors of the school district under the provisions of Arkansas Constitution, Amendment 11.
  2. If any such improvement district furnishes free electric lighting service and water to the municipality in which it is located, that part of its property, such as, the street and ornamental lighting equipment and fire hydrants, which is used exclusively for the purpose of furnishing free service, shall not be included in fixing the assessed valuation of the property of the improvement district.

History. Acts 1933, No. 64, § 2; Pope's Dig., § 10034; A.S.A. 1947, § 20-221.

14-89-603. Assessment and collection.

  1. The assessment of the value of property for taxation shall be made on a unit basis each year by the county assessor in the same manner as public utilities generally assessed by the Arkansas Public Service Commission, and the value thereof shall be returned on the personal property assessment book.
  2. The county clerk shall then extend the amount annually of the district school tax thereon on the tax books, and the taxes shall be collected by the county tax collector along with other taxes.
  3. In case of nonpayment, the remedy shall be by mandamus against the board of directors or commissioners of the improvement district and not by sale of the district's property.

History. Acts 1933, No. 64, § 3; Pope's Dig., § 10035; A.S.A. 1947, § 20-222.

Cross References. Assessment of utilities, § 26-26-1601 et seq.

Subchapter 7 — Aid by Counties

Effective Dates. Acts 1924 (3rd Ex. Sess.), No. 3, § 2: approved June 30, 1924. Emergency clause provided: “This act being necessary for the immediate preservation of the public peace, health and safety, an emergency is hereby declared to exist, and this act shall take effect and be in force from and after its passage.”

14-89-701. Applicability.

The provisions of this subchapter shall not apply to the following counties: Ashley, Carroll, Cross, Chicot, Lee, Prairie, Lawrence, Franklin, Van Buren, Jackson, Greene, Lincoln, Nevada, Hempstead, Faulkner, Madison, Monroe, Yell, Lonoke, White, Clay, Lafayette, Crawford, St. Francis, Polk, Phillips, Benton, Boone, Columbia, Clark, Calhoun, Ouachita, Scott, Dallas, Drew, Independence, Sharp, Miller, Izard, Little River, Union, Howard, Logan, Stone, Bradley, Grant, Craighead, Hot Spring, Baxter, Randolph, Sevier, Woodruff, Fulton, Montgomery, and Johnson.

History. Acts 1924 (3rd Ex. Sess.), No. 3, § 1; A.S.A. 1947, § 20-219.

14-89-702. Validity of indebtedness.

All warrants and other evidences of indebtedness allowed and issued by any county quorum court or judge of any county court, or by any city or town council or the mayor and clerk thereof, or which may be so allowed and issued for the aid of improvement districts in cities and towns, are declared to be valid and negotiable.

History. Acts 1924 (3rd Ex. Sess.), No. 3, § 1; A.S.A. 1947, § 20-219.

Subchapter 8 — Advancement of Funds by Municipalities

Effective Dates. Acts 1973, No. 404, § 5: Mar. 20, 1973. Emergency clause provided: “The General Assembly has determined that improvement districts are valuable financing vehicles for needed extensions to municipal water and sewer systems and that the lack of authority for municipalities to advance necessary moneys to pay the organizational expenses of improvement districts is a serious impediment to the formation of such districts. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

14-89-801. Definitions.

As used in this subchapter, unless the context otherwise requires:

  1. “Municipality” means a city of the first class, a city of the second class, or an incorporated town;
  2. “Improvement district” means either a municipal improvement district or a suburban improvement district;
  3. “Organization expenses” include engineering fees, legal fees, fees of financial advisers, abstractors' fees, the costs of newspaper advertising, and all other necessary fees and expenses in determining the feasibility of and organizing the proposed improvement district; and
  4. “Area adjacent to the municipality” means all or any portion of the area lying outside, and within ten (10) miles, of the corporate limits of the municipality that the governing body determines should be served by the water or sewer system of the municipality.

History. Acts 1973, No. 404, § 3; A.S.A. 1947, § 20-246.

Cross References. Suburban improvement districts, § 14-92-201 et seq.

14-89-802. Conditions precedent.

A municipality may advance available moneys derived from the operation of its water or sewer system, or other available moneys, to pay the organizational expenses of one (1) or more proposed improvement districts if the governing body of the municipality determines, as to each such district, that:

  1. The proposed improvement district will provide water or sewer services, or both, to an area within or adjacent to, or in part within and in part adjacent to, the municipality;
  2. The water or sewer facilities to be acquired or constructed by the improvement district will become a part of the water or sewer system of the municipality; and
  3. The water or sewer facilities to be acquired or constructed by the improvement district are required to complete the water or sewer system of the municipality so as to enable the municipal system to adequately serve the area within and adjacent to the municipality.

History. Acts 1973, No. 404, § 1; A.S.A. 1947, § 20-244.

14-89-803. Procedure for advances.

  1. Moneys advanced under the authority of this subchapter shall be in such amounts and shall be paid to such persons, including, without limitation, to those persons doing the work or to trustees or committees created by the governing body for the purpose, at such times either in one (1) lump sum or in installments, from time to time, and under such conditions and restrictions as the municipal governing body shall determine and prescribe by ordinance.
  2. No one (1) ordinance shall authorize advances to more than one (1) improvement district.
  3. There may be one (1) ordinance authorizing, and prescribing the manner of making, all advances to or for the benefit of a single district, or multiple advances to or for the benefit of a single district may be authorized by separate ordinances.

History. Acts 1973, No. 404, § 2; A.S.A. 1947, § 20-245.

Subchapter 9 — Use of Profits

Effective Dates. Acts 1939, No. 208, § 9: approved Mar. 9, 1939. Emergency clause provided: “It is ascertained that because of economic conditions existing in the State of Arkansas for a period of several years a large number of people owning property subject to assessment in municipal improvement districts have been unable to pay assessments extended against such property and such property owners are in danger of losing title to their property by reason of such assessments; and it being further ascertained that this act is necessary for the immediate preservation of the peace, health, safety, and general welfare of a large number of the people in the State of Arkansas, an emergency is hereby declared to exist and this act shall be in full force and effect from and after its passage.”

14-89-901. Applicability.

  1. The provisions of this subchapter shall apply to any municipal improvement district in the State of Arkansas which has been created, either by special act of the General Assembly or under the general laws of the state, for the purpose of repairing, enlarging, overhauling, erecting, and equipping any electric power plant, waterworks system, or sewer system which may have been constructed by a previously existing district within the municipality.
  2. No part of this subchapter shall apply to a municipal plant operated solely by city commissioners without a majority vote of the commissioners.

History. Acts 1939, No. 208, § 7; A.S.A. 1947, § 20-215.

14-89-902. Construction.

This subchapter is cumulative, and it is expressly declared that this subchapter shall not modify, amend, or repeal §§ 14-199-202—14-199-205, relating to use of profits from municipally owned electric power plants or waterworks systems.

History. Acts 1939, No. 208, § 7; A.S.A. 1947, § 20-215.

14-89-903. Purpose of expenditures.

  1. Any improvement district within any city or town in the State of Arkansas which is created for the purpose of constructing, repairing, enlarging, and overhauling any electric power plant, waterworks system, or sewer system is authorized to use the profits, or any part thereof, derived from the operation of the plants or systems toward:
    1. The payment of the outstanding bonded indebtedness of all street, sewer, or other improvement districts within the limits of the municipality; and
    2. The payment of any obligations of the city or town which may have been incurred by the city or town in the manner provided by law.
  2. The expenditures authorized in this section shall be made as provided for in this subchapter.

History. Acts 1939, No. 208, § 1; A.S.A. 1947, § 20-209.

Cross References. Profits from electric or water systems, § 14-199-201 et seq.

14-89-904. Special account to pay bonds.

  1. At the end of each fiscal year of the operation of an electric power plant or waterworks system, the commissioners of a municipal improvement board shall set aside, in a special account out of the profits from the operation of the plant or system, such sum as may be necessary to pay all bonds and interest of the improvement district which shall accrue during the next ensuing fiscal year so that the district shall, at all times, have in the special account a sum sufficient to pay all principal bonds and interest which may accrue within the next fiscal year.
  2. The funds so deposited in the special account shall be used for no other purpose except the payment of bonds and interest of the district.

History. Acts 1939, No. 208, § 2; A.S.A. 1947, § 20-210.

14-89-905. Depreciation and reserve accounts — Improvements.

  1. Before any expenditures as authorized by § 14-89-903 shall be made, the commissioners of a municipal improvement board shall provide from the operation of an electric power plant or waterworks system adequate depreciation and reserve accounts.
  2. Adequate provisions shall also be made for such alterations, improvements, or extensions of the electric power plant or waterworks system as, in the judgment of the commissioners of the board, will be necessary during the ensuing year.

History. Acts 1939, No. 208, § 3; A.S.A. 1947, § 20-211.

14-89-906. Approval by municipal council.

The profits from the operation of any electric power plant or waterworks system shall not be used for the purposes set forth in § 14-89-903 until such expenditures by a municipal improvement district have first been authorized by resolution duly adopted by the council of the city or town.

History. Acts 1939, No. 208, § 4; A.S.A. 1947, § 20-212.

14-89-907. Allocation of profits to districts and municipality.

  1. After compliance with §§ 14-89-904 and 14-89-905, the remaining profits from the operation of an electric power plant or waterworks system shall be determined by the commissioners of a municipal improvement board.
  2. If the commissioners determine that the remaining profits from the operation of the plant or system, or any part thereof, shall be used for the purposes set forth in § 14-89-903, then the commissioners may, upon the adoption of a proper resolution by the city or town council, allocate to the various improvement districts within the municipality and for other municipal expenses the amounts which are to be appropriated for these purposes.
  3. No part of these profits shall be allocated to any district until the commissioners of the district have furnished proof to the commissioners of the light and water district that bonds and interest of the district which is to receive the allocation of profits will mature during the ensuing year and that the district will not be able to pay the maturities without collecting an assessment against the property of the district.
  4. The allocation to the various districts within the municipalities as prescribed shall be according to the following ratio: The total amount of bond and interest maturities of all street and other improvement districts within the municipality coming due during the particular year, that is, the year following the fiscal year for which the profit of the plant and system was determined, shall be determined, and the ratio which the total bond and interest maturities of any street and other improvement district for the fiscal year bears to the total bond and interest maturities of all the street and other improvement districts for the fiscal year shall be the percentage used to allocate to each street and other improvement district its proportion of the profit to be used for the retirement of the bonded indebtedness of any such district.
  5. The funds allocated to any district under the provisions of this subchapter shall be used exclusively for the purpose of paying bonds and interest of the districts and for no other purpose.

History. Acts 1939, No. 208, § 5; A.S.A. 1947, § 20-213.

14-89-908. Payments to districts and municipality.

  1. The amounts allocated to the various improvement districts within the limits of a municipality shall be paid to the districts when the commissioners on the boards of improvement shall request that it be paid in order that the funds may be used by such districts to pay the bonds and interest maturities of the districts which are about to become due.
  2. The amounts allocated to the municipality shall be paid into the treasury of the municipality upon resolution duly adopted by the council of the city or town.

History. Acts 1939, No. 208, § 6; A.S.A. 1947, § 20-214.

Subchapter 10 — Payment of Moneys

Effective Dates. Acts 1897, No. 16, § 5: effective on passage.

14-89-1001. Payment by treasurer.

    1. The treasurer of a board of improvement shall pay out no moneys save upon the order of the municipal board of improvement.
    2. Upon the order of the municipal board of improvement to pay out moneys, the chair shall sign the warrant.
  1. The treasurer shall be allowed a commission not exceeding one percent (1%) upon all sums lawfully paid out, to be fixed by the board.

History. Acts 1881, No. 84, § 13, p. 161; 1897, No. 16, § 4, p. 23; C. & M. Dig., § 5705; Pope's Dig., § 7344; A.S.A. 1947, § 20-226; Acts 2007, No. 131, § 2.

14-89-1002. Warrant requirements.

  1. Under this subchapter, every warrant shall state upon its face to whom, the amount, and the purpose for which it is issued.
  2. All warrants shall be dated and shall be numbered consecutively in a record to be kept by the municipal board of improvement of the number and amount of each.
  3. No warrant shall be paid unless there is in the treasury funds enough to pay all outstanding warrants bearing a lower number.
  4. No warrant shall be increased by reason of any depreciation in the market value thereof, nor shall any contract or warrant be made payable or paid in anything but currency.

History. Acts 1881, No. 84, § 13, p. 161; C. & M. Dig., § 5707; Pope's Dig., § 7346; A.S.A. 1947, § 20-227.

Subchapter 11 — Annual Financial Settlements

Cross References. Publication of annual reports, § 1-3-105.

14-89-1101. Penalties.

Every member of any municipal improvement board who fails or refuses to make settlement as required by this subchapter, shall be guilty of a misdemeanor and, on conviction thereof, shall be fined in any sum not exceeding five hundred dollars ($500). In addition thereto, he may be imprisoned for a period not exceeding sixty (60) days.

History. Acts 1895, No. 140, § 3, p. 205; C. & M. Dig., § 5720; Pope's Dig., § 7360; A.S.A. 1947, § 20-230.

14-89-1102. Filing requirement.

    1. Annually on or before March 1, all municipal boards of improvement created under § 14-88-212 shall file a settlement with the clerk of the city or town in which the improvements shall have been ordered showing all collections and money received and paid out, with proper vouchers for all payments.
    2. The settlement may be included with the report required by § 14-86-2102.
  1. The settlement shall lie over for one (1) month for examination and adjustment, during which time any taxpayer of the district may file exceptions to the settlement.

History. Acts 1895, No. 140, § 1, p. 205; C. & M. Dig., § 5718; Pope's Dig., § 7358; A.S.A. 1947, § 20-228; Acts 2011, No. 210, § 3.

Amendments. The 2011 amendment redesignated former (a) as present (a)(1); substituted “on or before March 1” for “during the month of September” in (a)(1); and added (a)(2);

Case Notes

Applicability.

This section has no applicability to an action for an improvement district to recover from an employee and his surety money embezzled by the employee. Kelley v. Ballard, 192 Ark. 663, 93 S.W.2d 1256 (1936).

Effect.

Report filed by commissioners admitting obligation to contractor who had made improvements before the bar of the statute of limitations attached to the claim constituted acknowledgment of the indebtedness. Street Improv. Dist. v. Mooney, 203 Ark. 745, 158 S.W.2d 661 (1942).

Enforcement.

Property owner is entitled to writ of mandamus to require commissioners to file report. Buchanan v. Halpin, 176 Ark. 822, 4 S.W.2d 510 (1928).

Mandamus will lie to compel compliance with this section. Street Improv. Dist. v. Mooney, 203 Ark. 745, 158 S.W.2d 661 (1942).

Cited: Lawrence v. Jones, 228 Ark. 1136, 313 S.W.2d 228 (1958).

14-89-1103. Examination and adjustments.

  1. Whether any exceptions are filed or not, the city or town council shall proceed to examine the settlements and shall disallow any and all unjust charges and credits, if there are any.
    1. The council shall readjust the settlement wherever an improper item may be included in it.
    2. The adjustment shall be finally subject to reexamination in a court of chancery for error or mistake upon suit brought by the board or by any taxpayer of the district.

History. Acts 1895, No. 140, § 2, p. 205; C. & M. Dig., § 5719; Pope's Dig., § 7359; A.S.A. 1947, § 20-229.

Case Notes

Cited: Boles v. Kelley, 90 Ark. 29, 117 S.W. 1073 (1909); Puryear v. City of Jonesboro, 110 Ark. 562, 163 S.W. 504 (1914); Water Improv. Dist. v. Briner, 185 Ark. 742, 48 S.W.2d 1104 (1932); Kelley v. Ballard, 192 Ark. 663, 93 S.W.2d 1256 (1936).

Subchapter 12 — Refund of Excess Collections

Effective Dates. Acts 1949, No. 350, § 5: approved Mar. 21, 1949. Emergency clause provided: “Whereas there being no standard set forth for the refund assessment benefits in municipal improvement districts; and

“Whereas, there are street improvement districts which have fully paid their bonded indebtedness and now desire to refund the excess collections, and this Act being necessary for the immediate preservation of the public peace, health and safety of the people of the State of Arkansas, an emergency is hereby declared to exist and this Act shall be in full force and effect from and after its passage.”

14-89-1201. Definition.

As used in this subchapter, unless the context otherwise requires, “property owner” means the holder of the legal title at the time a refund is made.

History. Acts 1949, No. 350, § 2; A.S.A. 1947, § 20-232.

Case Notes

In General.

Refund on street assessment to the title owner of the property at the time board formally adopts its resolution directing disbursement does not impair a vested right of former owner who had paid final assessment. Street Imp. Dist. No. 419 v. Lewis, 216 Ark. 595, 226 S.W.2d 813 (1950).

14-89-1202. Authority of street or water improvement districts.

When any municipal street or water improvement district has fully retired and paid out the bonded indebtedness of the district and there remains a surplus of money derived from the collection of benefit assessments levied against the real property in the district for the purpose of retiring the bonds or funds derived from the sale of unredeemed real property acquired by the district, the surplus funds may be refunded to the property owners of the district pro rata by the board of improvement of the district.

History. Acts 1949, No. 350, § 1; A.S.A. 1947, § 20-231; Acts 1995, No. 583, § 1.

Amendments. The 1995 amendment inserted “or water.”

14-89-1203. Delinquent realty not counted.

Under this subchapter, any real estate or parts or parcels of real estate which are delinquent at the time a refund is made shall not be counted in arriving at the pro rata distribution.

History. Acts 1949, No. 350, § 3; A.S.A. 1947, § 20-233.

Subchapter 13 — Surplus Funds

Effective Dates. Acts 1953, No. 180, § 3: approved Mar. 2, 1953. Emergency clause provided: “Whereas there are sewer improvement districts which have fully paid their bonded indebtedness and have turned over the improvement to the municipality and such improvement is being operated and maintained by such municipality and such district now desires to turn over its surplus funds to such municipality, and this Act being necessary for the immediate preservation of the public peace, health and safety of the people of the State of Arkansas, an emergency is hereby declared to exist and this Act shall be in full force and effect from and after its passage.”

Acts 1953, No. 310, § 3: Mar. 26, 1953. Emergency clause provided: “It has been found and is hereby declared by the General Assembly that the poor condition of the streets within cities and incorporated towns constitutes a hazard to the life and limb of the inhabitants thereof, and that the provisions of this act will make funds available to in part alleviate the prevailing conditions. Therefore, an emergency is hereby declared to exist, and this act being necessary for the preservation of the public peace, health and safety, shall take effect and be in full force and effect from and after its passage and approval.”

Acts 1957, No. 222, § 2: Mar. 12, 1957. Emergency clause provided: “It has been found and declared by the General Assembly that municipal improvement heretofore dissolved have unused funds remaining after their dissolution and that they have no further indebtedness, and that such funds may be utilized by the various municipal corporations concerned, and that there is an urgent need by the municipal corporations for operating funds. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of public peace, health and safety, shall take effect and be in force from the date of its approval.”

Acts 1967, No. 200, § 3: Mar. 6, 1967. Emergency clause provided: “It is hereby found and determined by the General Assembly that there are municipal airport improvement districts in some of the first class cities of this State who have paid off and retired all of their bonded indebtedness; that such improvement districts still have a remaining surplus of property and moneys after paying all other legal obligations; that there is much confusion regarding the disposition of such surplus property and moneys in the possession of such improvement districts; that the municipal airports of many of the cities of the first class are in great need of additional funds to make improvements for the safety and comfort of their citizens; that it is necessary, in order to alleviate this chaos and confusion and to insure the municipal airports of cities of the first class of addition improvement funds, that this Act become effective immediately. Therefore, an emergency is hereby declared and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

14-89-1301. Special improvement districts receiving state aid.

  1. In instances where state aid has been extended to paving and other special improvement districts within cities and incorporated towns and all bonds and other obligations of the districts have been retired or money is set aside with the paying agents in amounts sufficient to provide for their retirement, then all moneys and other assets in the hands of the commissioners of the districts, or in the hands of the paying agents, in amounts exceeding the full debt service requirements of the bonds and other obligations shall be paid over to the respective treasurers of the cities and incorporated towns for the credit to the street fund, there to be used for the repair and maintenance of its streets.
  2. No such moneys may be paid over to the treasurers in amounts which shall exceed the state aid previously extended to paving and other special improvement districts, it being the intention of the General Assembly in the enactment of this section to redefine such excess moneys as being available in the first instance for both the retirement of the districts' obligations and the improvement of its streets and alleys as prescribed.
  3. In instances in which the districts are no longer in existence, or are inactive, the city or town treasurer shall draw drafts on the bank accounts of the districts for the amounts so found to be due, and all the drafts shall be honored and paid by the banks upon which the drafts are drawn.

History. Acts 1953, No. 310, § 1; A.S.A. 1947, § 20-237.

Publisher's Notes. Acts 1953, No. 310, § 2, provided that this section did not apply to any municipal street improvement district whose commissioners had adopted a resolution for a refund of surplus taxes under §§ 14-89-120114-89-1203 prior to March 26, 1953.

Case Notes

Constitutionality.

This section violated Ark. Const., Amend. 13 insofar as applied to funds collected in the form of tax assessments from property owners, since neither the city nor the legislature had authority to divert such funds to another purpose without the consent of the property owners in violation of the Constitution. City of Searcy v. Headlee, 222 Ark. 719, 262 S.W.2d 288 (1953) (decision prior to Ark. Const. Amend. 62).

14-89-1302. Street improvement districts.

When any municipal street improvement district has paid out and fully retired its bonded indebtedness and there remains a surplus of money in the district and thereafter the property embraced in the district, or at least two-thirds (2/3) of it, shall have been included in a new paving improvement district, then the funds remaining on hand shall be paid by the commissioners on the bonds of the new district.

History. Acts 1951, No. 392, § 1; A.S.A. 1947, § 20-234.

Publisher's Notes. Acts 1951, No. 392, § 2, provided that this section did not apply to any municipal street improvement district whose commissioners had adopted a resolution for a refund of surplus taxes under §§ 14-89-120114-89-1203 prior to March 21, 1951.

14-89-1303. Sewer improvement districts.

Where any municipal sewer improvement district has fully retired and paid out the bonded indebtedness of the district and there remains a surplus of money derived from the collection of benefit assessments levied against the real property in the district for the purpose of retiring the bonds or funds derived from the sale of unredeemed real property acquired by the district, the surplus funds may be transferred to the municipality where the municipality has taken over the sewer improvement constructed by the district and is maintaining it.

History. Acts 1953, No. 180, § 1; A.S.A. 1947, § 20-239.

14-89-1304. Airport improvement district in city of the first class.

When any municipal airport improvement district of a city of the first class has paid out and fully retired its bonded indebtedness, and there remains a surplus of money or property in the district, the commissioners of the district, after payment of all obligations of the district, shall pay the surplus funds and transfer the property to the city, and the city shall use any such funds and property so received for the sole purpose of making improvements upon the municipal airport of the city.

History. Acts 1967, No. 200, § 1; A.S.A. 1947, § 20-243.

14-89-1305. Reversion generally in certain municipalities.

  1. Any balance of money remaining in municipal improvement districts which have no further indebtedness, and which have been dissolved for three (3) years or more, shall revert to the municipal corporation and may be used for legitimate corporate purpose.
  2. This section shall apply only to municipal corporations whose population according to the latest federal census was not less than two thousand three hundred seventy-five (2,375) and not more than two thousand four hundred (2,400) persons.

History. Acts 1957, No. 222, § 1; A.S.A. 1947, § 20-240.

Subchapter 14 — Annual Financial Report

Effective Dates. Acts 1985, No. 22, § 4: Feb. 5, 1985. Emergency clause provided: “It is hereby found and determined by the General Assembly that municipal improvement districts should be required to file annual reports in the manner prescribed by Act 154 of 1959 for other improvement districts; that Act 154 of 1959 requires annual financial reports to be filed by March of each year; and that this Act is immediately necessary in order to be implemented in time for the March 1985 reporting deadline. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

14-89-1401. Penalty.

Any person violating the provisions of this subchapter or any person filing any false financial report shall be guilty of a misdemeanor.

History. Acts 1959, No. 154, § 2; A.S.A. 1947, § 20-242.

14-89-1402. Filing required.

      1. All improvement districts in any city or incorporated town in this state established for the purpose of making improvements for municipal purposes shall file an annual financial report with the city clerk or recorder of the city or town on or before March 1 of each year, covering the financial affairs of the districts for the preceding year.
      2. The filing under subdivision (a)(1)(A) of this section shall include without limitation a complete itemization of revenues and expenditures and status of district projects.
    1. All improvement districts in any city or incorporated town in this state established for the purpose of providing electric utility services for municipal purposes shall file an annual financial report with the city clerk or recorder of the city or town on or before June 1 of each year, covering the financial affairs of the districts for the preceding year.
    2. The annual financial report may be included with the report required by § 14-86-2102.
  1. The annual financial report shall be certified and filed as provided in this section by the commissioners of each district.

History. Acts 1959, No. 154, § 1; A.S.A. 1947, § 20-241; Acts 2011, No. 210, § 4; 2011, No. 1225, § 1; 2013, No. 1428, § 2.

Amendments. The 2011 amendment by No. 210 added (a)(2); and, in (b), substituted “annual financial report” for “statement” and “commissioners” for “chief financial officer.”

The 2011 amendment by No. 1225 inserted present (a)(2).

The 2013 amendment added (a)(1)(B).

Case Notes

Cited: Hyde v. Quinn, 298 Ark. 569, 769 S.W.2d 24 (1989).

14-89-1403. Failure to file.

If the board of improvement of any municipal improvement district established pursuant to §§ 14-88-203, 14-88-20514-88-207, fails or refuses to file, or cause to be filed, the annual financial report required by this subchapter, such failure shall, in addition to any other penalty prescribed by law, constitute misfeasance in office and shall be grounds for removal of the members of the board from office.

History. Acts 1985, No. 22, § 2; A.S.A. 1947, § 20-248.

Subchapter 15 — Quarterly Financial Reports

14-89-1501. Quarterly financial reports.

    1. All improvement districts in any city or incorporated town in this state established for the purpose of making improvements for municipal purposes shall meet at least four (4) times per year or quarterly.
    2. Notice of each meeting, including without limitation each quarterly meeting under this section, shall be given by the improvement district to all record owners of property in the district no more than thirty (30) days before the meeting date and no less than ten (10) days before the meeting date.
    1. At each quarterly meeting of the improvement district, a financial report shall be included as an item on the agenda.
    2. The financial report shall be provided to any member of the public who requests a copy of the report.
    3. The financial report required under this section shall include without limitation:
      1. Supporting documentation;
      2. Bank statements;
      3. Operating budget;
      4. Projected budget; and
      5. Itemization of revenues and expenditures.

History. Acts 2007, No. 132, § 1; 2013, No. 1428, § 3; 2017, No. 924, § 4.

Amendments. The 2013 amendment added (a)(2) and (b)(3).

The 2017 amendment rewrote (a)(2).

Chapter 90 Assessments by Municipal Improvement Districts

Subchapter 1 — General Provisions

Cross References. Publication of notices when no newspaper published in county, city, or town, § 14-88-207.

Effective Dates. Acts 1907, No. 167, § 3: effective on passage.

Acts 1951, No. 363, § 3: Mar. 20, 1951. Emergency clause provided: “It being found and determined that the affairs of all municipal improvement districts heretofore or hereafter created in cities having a Commission Form of Government can be more economically administered in said cities under the laws as same existed with regard thereto prior to February 28, 1949, the passage of this Act is necessary for the preservation of the public peace, health and safety, and an emergency is hereby declared to exist and this Act shall be in full force and effect from and after its passage and approval.”

14-90-101. Definitions.

As used in this act, unless the context otherwise requires:

  1. “Real property” shall have the same meaning and significance as are attached to these words in statutes providing for the collection of state, county, and city revenue.
  2. “Blocks, lots, or parcels of land” shall include railway tracks and rights-of-way.

History. Acts 1881, No. 84, §§ 4, 5, p. 161; 1907, No. 167, § 1, p. 402; C. & M. Dig., §§ 5657, 5658; Pope's Dig., §§ 7285, 7292; A.S.A. 1947, §§ 20-401, 20-415.

Meaning of “this act”. Acts 1881, No. 84, codified as §§ 14-88-101, 14-88-202, 14-88-204, 14-88-302, 14-88-303, 14-88-30514-88-308, 14-88-311, 14-88-403, 14-88-502, 14-89-201, 14-89-1001, 14-89-1002, 14-90-101, 14-90-201, 14-90-302, 14-90-403, 14-90-701, 14-90-80114-90-805, 14-90-902, 14-90-903, 14-90-916, 14-90-100114-90-1003, 14-90-1005, 14-90-1006, 14-90-110114-90-1106, 14-90-1108, 14-90-120114-90-1204, 14-90-1302, 14-90-1303, 14-91-101, 14-91-10414-91-107, 14-91-201, and 14-235-30114-235-305.

Case Notes

Real Property.

Words “real property” mean not only the lot, but also all the buildings, structures, improvements, and other fixtures thereon. City of Eureka Springs v. Banks, 206 Ark. 289, 174 S.W.2d 947 (1943).

Street Railways.

A street railway being personal property, its value should not be included in the valuation of real property in ascertaining whether the petition for a local improvement is signed by a majority in value of the owners of real property in the district. Lenon v. Brodie, 81 Ark. 208, 98 S.W. 979 (1906).

Cited: McAllister v. Forrest City Street Improv. Dist. No. 11, 274 Ark. 372, 626 S.W.2d 194 (1981).

14-90-102. Applicability of 1949 provisions.

    1. All municipal improvement districts created after June 9, 1949, shall be governed by the provisions of §§ 14-88-401, 14-88-404, 14-90-102, 14-90-801, 14-90-802, 14-90-901 — 14-90-915, 14-90-1002, 14-90-1107, 14-90-1301, 14-90-1303(a)-(b), 14-90-1405, and 14-90-1406.
      1. All municipal improvement districts existing on June 9, 1949 shall continue to function under laws existing prior to June 9, 1949 except with respect to foreclosure suits.
        1. Within sixty (60) days after any annual installment becomes delinquent, the board of commissioners shall proceed in accordance with the provisions of §§ 14-90-911, 14-90-1002, 14-90-1301, 14-90-1405, and 14-90-1406, excepting the first sentence of § 14-90-1002.
        2. Sections 14-90-1107, 14-90-1301 and 14-90-1303(a)-(b) shall also be applicable to municipal improvement districts existing prior to June 9, 1949.
    1. Sections 14-88-401, 14-88-404, 14-90-102, 14-90-801, 14-90-802, 14-90-901 — 14-90-915, 14-90-1002, 14-90-1107, 14-90-1301, 14-90-1303 (a)-(b), 14-90-1405, and 14-90-1406 shall not apply to any city which has a commission form of government organized under the provisions of Acts 1913, No. 13 and all municipal improvement districts heretofore or hereafter created in cities having such a commission form of government shall continue to function under the laws pertaining to them as they existed prior to February 28, 1949.
      1. In cities having a commission form of government, improvements may be undertaken which will not exceed in cost sixty percent (60%) of the value of the real property in these municipal improvement districts as shown by the last county assessment.
      2. In computing the sixty percent (60%), interest on borrowed money shall not be treated as a part of the cost of it.

History. Acts 1949, No. 195, § 25; 1951, No. 363, § 1; A.S.A. 1947, § 20-455.

A.C.R.C. Notes. Except with respect to foreclosure suits, Acts 1949, No. 195 became effective on June 9, 1949. Acts 1953, No. 145 extended the provisions of Acts 1949, No. 195, to July 1, 1952. See §§ 14-90-102 and 14-90-103.

Publisher's Notes. Acts 1949, No. 195, § 27, as amended by Acts 1951, No. 363, § 2, read:

“All laws and parts of laws applicable solely to municipal improvement districts which are in conflict herewith are repealed, excepting those which are to remain in force for the functioning of existing districts, and those laws shall stand repealed when all existing districts have ceased to function, except as same affect municipal improvement districts heretofore or hereafter created in cities having a Commission Form of Government organized under the provisions of Act No. 13 of the Acts of the General Assembly of Arkansas of 1913, as amended. All laws and parts of laws applicable to municipal and other improvement districts which are in conflict herewith are repealed only so far as they affect municipal improvement districts. Nothing herein shall be construed as affecting Acts 126 and 329 of 1939.”

14-90-103. Districts organized prior to July 1, 1952.

All municipal improvement districts organized prior to July 1, 1952, in compliance with the statutes which, prior to the enactment of Acts 1949, No. 195, regulated the organization of these districts are declared to be legally organized, all their proceedings under the provisions of these statutes are declared to be valid, and these districts shall continue to function under these statutes except with respect to foreclosure suits.

History. Acts 1953, No. 145, § 1; A.S.A. 1947, § 20-456.

A.C.R.C. Notes. Except with respect to foreclosure suits, Acts 1949, No. 195, became effective on June 9, 1949. Acts 1953, No. 145, extended the provisions of Acts 1949, No. 195, to July 1, 1952. See §§ 14-90-102 and 14-90-103.

Publisher's Notes. Acts 1949, No. 195 is codified as §§ 14-88-401, 14-88-404, 14-90-102, 14-90-801, 14-90-802, 14-90-90114-90-915, 14-90-1002, 14-90-1107, 14-90-1301, 14-90-1303, 14-90-1405, and 14-90-1406.

Subchapter 2 — Boards of Assessment

Publisher's Notes. Acts 1899, No. 183, § 10, provided that nothing in the act validated preexisting improvement districts.

Effective Dates. Acts 1907, No. 167, § 3: effective on passage.

Acts 1907, No. 406, § 2: effective on passage.

Acts 1969, No. 290, § 7: Mar. 21, 1969. Emergency clause provided: “It has been found and it is hereby declared by the General Assembly that the laws governing the organization of municipal improvement districts previously required the petition of a majority in value of the property owners in the affected territory, that this requirement was later increased to two-thirds in value, and that the requirements of existing laws obstruct the organization of many municipal improvement districts which would otherwise be organized for the construction or acquisition of improvements essential to the health and welfare of the inhabitants of this State. Therefore, an emergency is declared to exist, and this Act being necessary for the preservation of the public peace, health and safety shall take effect and be in force from and after its passage and approval.”

14-90-201. Appointment.

As soon as a municipal board of improvement shall have formed a plan and shall have ascertained the cost of the improvement, it shall report this plan to the city or town council. The council shall appoint three (3) electors of the city or town who shall constitute a board of assessment to review the benefits to be received by each lot or block or other subdivision of land within the improvement district by reason of the proposed local improvement.

History. Acts 1881, No. 84, § 5, p. 161; 1889, No. 18, § 3, p. 17; 1899, No. 183, § 1, p. 323; 1901, No. 143, § 2, p. 264; 1907, No. 167, § 1, p. 402; C. & M. Dig., § 5657; Pope's Dig., § 7292; A.S.A. 1947, § 20-401.

Case Notes

Annexation Districts.

When plans for annexation district are formed, the municipal council shall have power to appoint a new board of assessors to make assessment for the annexation district if the old board has finished its original assessment, and its action in the matter will not be reviewed. Board of Comm'rs v. City of Little Rock, 174 Ark. 519, 295 S.W. 972 (1927).

Judicial Review.

Where city council created an improvement district board and appointed three real property-owning commissioners to serve thereon as required by § 14-88-301 and where the board has not yet formed a plan or ascertained the cost of the improvement as required by this section, the question of the correctness of the assessments or the method employed cannot be brought before the courts. Ketcher v. Mayor of N. Little Rock, 2 Ark. App. 315, 621 S.W.2d 12 (1981).

Manner of Appointment.

The municipal council may appoint assessors by resolution adopted without roll call. McLeod v. Purnell, 164 Ark. 596, 262 S.W. 682 (1924).

Plans and Costs.

The municipal council cannot appoint assessors until the board of commissioners has made definite plans and ascertained the cost according to the plans. Missouri P. R. Co. v. Waterworks Improv. Dist., 134 Ark. 315, 203 S.W. 696 (1918).

Where board of improvement formed plans and procured estimate of cost and reported to municipal council that it had done so, but did not file the plans and estimate, the council was authorized to appoint the assessors. Ingram v. Thames, 150 Ark. 443, 234 S.W. 629 (1921).

Term of Service.

The board of assessors exists until the improvement district is paid out and there is no further service for it to perform. Kirst v. Street Improv. Dist. No. 1, 86 Ark. 1, 109 S.W. 526 (1908).

Cited: McAllister v. Forrest City Street Improv. Dist. No. 11, 274 Ark. 372, 626 S.W.2d 194 (1981).

14-90-202. Oath.

Each of the assessors for a municipal improvement district shall, before entering upon the discharge of his duties, take oath that he will well and truly assess, to the best of his knowledge and ability, the value of all the benefits to be received by each landowner by reason of the proposed improvements as affecting each of the lots, blocks, or parcels of land, or railroad tracks and rights-of-way within the district.

History. Acts 1899, No. 183, § 2, p. 323; 1901, No. 143, § 3, p. 264; 1907, No. 167, § 2, p. 402; 1907, No. 406, § 1, p. 1023; C. & M. Dig., § 5658; Pope's Dig., § 7293; A.S.A. 1947, § 20-404.

Case Notes

Failure to Take.

Failure of assessors to take oath is not jurisdictional, and no attack on assessments on this ground can be made after 30 days from publication of assessment ordinance. Webster v. Ferguson, 95 Ark. 575, 130 S.W. 513 (1910).

14-90-203. Compensation.

  1. The members of a municipal improvement board of assessment shall receive such compensation as the board of improvement shall determine.
  2. The compensation shall be paid out of the funds collected by taxation of the local improvements or out of the proceeds of the money borrowed or bonds issued by the improvement district, as determined by the board of improvement.

History. Acts 1899, No. 183, § 9, p. 323; C. & M. Dig., § 5663; Pope's Dig., § 7298; Acts 1969, No. 290, § 4; A.S.A. 1947, § 20-408.

Subchapter 3 — Property Subject to Assessment

Preambles. Acts 1947, No. 325 contained a preamble which read:

“Whereas, in many cities and towns in the State of Arkansas, plats have been made of either the whole or parts of said cities or towns, and have been filed in the office of the city clerk, city recorder, or town recorder, as the case may be, and have been used as a basis of descriptions for tracts of real property so platted, but said plats have never been filed for record in the office of the circuit clerk and ex-officio recorder of the county in which the real property so platted lies, and therefore are not official records, but they have been used and accepted for the purpose of making the assessments of benefits in local improvement districts which include real property so platted;

“Now, therefore….”

Effective Dates. Acts 1913, No. 125, § 9: approved Mar. 3, 1913. Emergency declared.

Acts 1947, No. 325, § 3: approved Mar. 28, 1947. Emergency clause provided: “It is hereby ascertained and declared that because of the fact that there is some doubt as to the descriptions to be used for real property to be included in local improvement districts organized for the purpose of advancing the health and safety of the inhabitants of the respective communities of the state, an emergency exists and this act, being necessary for the preservation of the public peace, health and safety, shall take effect and be in force from and after its passage.”

14-90-301. Validity of land descriptions based on plat.

The descriptions of lands in an improvement district in any incorporated town or city of the first or second class which are based upon a plat, of a part or the whole, of the municipality, which has been filed in the office of the municipal clerk and is not in conflict with a duly executed and recorded plat of the same territory in the office of the circuit clerk and ex officio recorder of the county shall be valid descriptions of the lands so platted for the purpose of making the assessment of benefits for any local improvement district on the lands within the territory so platted and for the collection of the assessments of benefits on the lands so platted and described, including suits brought to enforce their collection.

History. Acts 1947, No. 325, § 1; A.S.A. 1947, § 20-452.

Publisher's Notes. As to prior descriptions validated, see Acts 1947, No. 325, § 2.

14-90-302. Railroads.

If any railroad company owning or operating a line of railway in this state shall occupy any street which is in an improvement district by having laid within it its railway tracks and by using the street as a right-of-way, then the railway tracks and right-of-way shall be subject to assessment by the board of assessment in the same manner as each lot, block, or other subdivision of land provided for in this act.

History. Acts 1881, No. 84, § 5, p. 161; 1907, No. 167, § 1, p. 402; C. & M. Dig., § 5657; Pope's Dig., § 7292; A.S.A. 1947, § 20-401.

Meaning of “this act”. Acts 1881, No. 84, codified as §§ 14-88-101, 14-88-202, 14-88-204, 14-88-302, 14-88-303, 14-88-30514-88-308, 14-88-311, 14-88-403, 14-88-502, 14-89-201, 14-89-1001, 14-89-1002, 14-90-101, 14-90-201, 14-90-302, 14-90-403, 14-90-701, 14-90-80114-90-805, 14-90-902, 14-90-903, 14-90-916, 14-90-100114-90-1003, 14-90-1005, 14-90-1006, 14-90-110114-90-1106, 14-90-1108, 14-90-120114-90-1204, 14-90-1302, 14-90-1303, 14-91-101, 14-91-10414-91-107, 14-91-201, and 14-235-30114-235-305.

Case Notes

Railway Tracks.

The tracks of an interurban railway lying within a city are not to be classified as real estate for the purpose of assessment for a local improvement, and the 1907 amendment to this section does not apply to street railways. Fort Smith Light & Traction Co. v. McDonough, 119 Ark. 254, 177 S.W. 926 (1915); Board of Imp. v. Southwestern Gas & Elec. Co., 121 Ark. 105, 180 S.W. 764 (1915).

Right-of-Way.

The right-of-way granted to a street railway company does not create an interest in the soil but only grants the right to use the streets in common with other travelers, and such a privilege is not real property within the meaning of the Arkansas Constitution which provides that property in cities and towns may be specially taxed for local improvements. Board of Imp. v. Southwestern Gas & Elec. Co., 121 Ark. 105, 180 S.W. 764 (1915).

Cited: McAllister v. Forrest City Street Improv. Dist. No. 11, 274 Ark. 372, 626 S.W.2d 194 (1981).

14-90-303. School districts.

  1. The property of public school districts shall be subject to assessment for local improvements beneficial to them.
  2. The president or secretary of the district may sign the petition for the making of the improvements, when authorized by the board of directors.

History. Acts 1913, No. 125, § 7; C. & M. Dig., § 5654; Pope's Dig., § 7288; A.S.A. 1947, § 20-402.

Case Notes

Constitutionality.

Assessments for improvement benefits are not taxes in the usual and ordinary sense of the word and, therefore, this section does not conflict with Ark. Const., Art. 16, § 5. Rainwater v. Haynes, 244 Ark. 1191, 428 S.W.2d 254 (1968) (decision prior to Ark. Const., Amend. 59, § 17).

Applicability.

This section is not retroactive and contains no authority for the levy of assessments on school property by a local improvement district formed prior to its enactment. Special Sch. Dist. v. Board of Imp., 127 Ark. 341, 191 S.W. 918 (1917).

Subchapter 4 — Assessment Procedures Generally

Cross References. Assessment of benefits for maintenance and repairs, § 14-91-601 et seq.

Partition of assessments among several owners of single tract, § 14-86-601.

Effective Dates. Acts 1907, No. 167, § 3: effective on passage.

Acts 1907, No. 406, § 2: effective on passage.

14-90-401. Duties of assessors.

    1. The assessors for a municipal improvement district shall at once proceed to inscribe in a book to be used for that purpose the description of each of the lots, blocks, or parcels of land and railroad tracks and rights-of-way. The assessors shall assess the value of the benefit to accrue to each of the lots, blocks, or parcels of land and railroad tracks and rights-of-way by reason of the improvement.
    2. The assessment shall be entered in the book opposite the description.
  1. The assessors shall then subscribe the assessment and deposit it in the office of the recorder or city clerk of the town or city, where it shall be kept and preserved as a public record.

History. Acts 1899, No. 183, § 2, p. 323; 1901, No. 143, § 3, p. 264; 1907, No. 167, § 2, p. 402; 1907, No. 406, § 1, p. 1023; C. & M. Dig., § 5658; Pope's Dig., § 7293; A.S.A. 1947, § 20-404.

Publisher's Notes. Acts 1899, No. 183, § 10, provided that nothing in the act validated preexisting improvement districts.

Case Notes

Act as Board.

Two members of the board of assessors cannot act as a board in the absence of third member and without notice to him. Kirst v. Street Improv. Dist. No. 1, 86 Ark. 1, 109 S.W. 526 (1908).

Assessors must act as a board and not individually. Board of Comm'rs v. City of Little Rock, 172 Ark. 544, 289 S.W. 478 (1927).

Assessments.

An action instituted by property owners attacking an assessment of benefits in an improvement district is collateral where it is instituted more than 30 days after approval of the assessments at the hearing on notice. Lewellyn v. Street Imp. Dist., 172 Ark. 496, 289 S.W. 470 (1927).

A suit in equity against the commissioners of an improvement district attacking the assessment of benefits for a street improvement commenced more than 30 days after notice of the filing of the assessments is a collateral attack and not maintainable. Smith v. Grabiel, 177 Ark. 611, 7 S.W.2d 13 (1928).

Where one person owns several lots, blocks, or parcels of land in an improvement district, the benefits to them may be assessed together. Board of Comm'rs v. Freeman, 201 Ark. 1061, 148 S.W.2d 1076 (1941).

A complaint, if proven true, which alleged that assessors omitted the description of certain lands from their original assessment list and systematically excluded high value property from assessment and included low value property would show fraud. McAllister v. Forrest City Street Improv. Dist. No. 11, 274 Ark. 372, 626 S.W.2d 194 (1981).

14-90-402. Notice of filing.

Immediately on the filing of an assessment by the assessors of a municipal improvement district, the city clerk shall insert in some newspaper the following notice:

“The assessment of local Improvement District No. (giving the number of the district) was filed in my office on the day of , 19 , and the same is now subject to inspection. Clerk of the City of

Click to view form.

History. Acts 1899, No. 183, § 3, p. 323; C. & M. Dig., § 5660; Pope's Dig., § 7294; A.S.A. 1947, § 20-405.

Publisher's Notes. Acts 1899, No. 183, § 10, provided that nothing in the act validated preexisting improvement districts.

Case Notes

Time to Assess.

It was sufficient if the city council waited 10 days after publication of the notice before passing the ordinance assessing the cost of the improvement. Board of Improv. Dist. No. 5 v. Offenhauser, 84 Ark. 257, 105 S.W. 265 (1907).

Cited: Burris v. City of Little Rock, 941 F.2d 717 (8th Cir. 1991).

14-90-403. Setoff for private improvements.

  1. If, in the construction of sidewalks or making of other improvements, any owner of taxable property in a municipal improvement district shall be found to have improved his own property in such a manner that his improvement may be profitably made a part of the general improvement of the kind in the district, being also as good as that required by the system as determined by the board of improvement, the board shall appraise the value of the improvement made by the owner and shall allow its value as a setoff against the assessment against his property.
  2. In case the owner who has made these improvements shall be found to have failed to come up to the required standard, the board may allow him the value of the materials, so far as they may be profitably used in perfecting the system prescribed, as a setoff against his property thus improved.
  3. In these cases, the board shall issue to the owner a certificate showing the amount of setoff allowed, which shall be received by the collector in lieu of money for the amount enumerated and charged against the property.

History. Acts 1881, No. 84, § 9, p. 161; C. & M. Dig., § 5672; Pope's Dig., § 7310; A.S.A. 1947, § 20-403.

Case Notes

Applicability.

This section relates only to the private ownership of property and cannot be extended so as to give owners of property in an old improvement district credit for an improvement made by the old district when it is merged into a new district. Sembler v. Water & Light Imp. Dist., 109 Ark. 90, 158 S.W. 972 (1913).

Allowance Request.

A property owner must ask for an allowance as against an improvement district which uses his property in the construction in order to be entitled to the benefit of this section, but if he does ask such an allowance and it is refused, he may present his claim as a setoff to a suit to collect his assessment, if done in apt time. Casey v. Trout, 114 Ark. 359, 170 S.W. 75 (1914).

Certificate.

Where an allowance is made to a property owner for materials belonging to him and used in the improvement, the certificate issued to the landowner may be used in the payment of the tax for the improvement against the property. Casey v. Trout, 114 Ark. 359, 170 S.W. 75 (1914).

Setoff Allowed.

A property owner is entitled to compensation from the improvement district for curbing belonging to him and used by the district in the construction of the work of the district. Casey v. Trout, 114 Ark. 359, 170 S.W. 75 (1914).

Where property owners had curbed and guttered their property and the improvement was of value to an improvement district formed to improve the street, the commissioners of the district should allow the value of the improvement as a setoff against their assessments. Meyer v. Board of Imp. Paving Dist., 148 Ark. 623, 231 S.W. 12 (1921).

Setoff Denied.

A property owner in a sewer district who has previously connected his property to an adjoining sewer district is not entitled to set off the value of such connection against assessments upon his property in the former district. Board of Improv. Dist. No. 5 v. Offenhauser, 84 Ark. 257, 105 S.W. 265 (1907).

Subchapter 5 — Appeals from Assessments

Publisher's Notes. Acts 1899, No. 183, § 10, provided that nothing in the act validated preexisting improvement districts.

14-90-501. Notice and hearing.

  1. Anyone whose real estate is embraced in a municipal improvement district assessment may file, within ten (10) days from the giving of the notice, with the city clerk in writing, his notice of appeal from the action of the board of assessors in making the assessment of his property.
  2. The appeal shall be heard and disposed of at the next regular meeting of the city council.
  3. On the appeal, the matter shall be heard de novo on the evidence that may be adduced on either side.

History. Acts 1899, No. 183, § 4, p. 323; C. & M. Dig., § 5661; Pope's Dig., § 7295; A.S.A. 1947, § 20-406.

Research References

ALR.

What Constitutes Plain, Speedy, and Efficient State Remedy Under Tax Injunction Act, (28 USCS § 1341) Prohibiting Federal District Courts from Interfering with Assessment, Levy, or Collection of State Business Taxes. 31 A.L.R. Fed. 2d 237.

Case Notes

Appeals.

City council cannot grant relief to property owners not appealing. Kirst v. Street Improv. Dist. No. 1, 86 Ark. 1, 109 S.W. 526 (1908).

Chancery Suits.

Landowners have a right to sue in chancery within 30 days to have an improper assessment set aside where the city council fails to give relief from an assessment which exceeds the value of benefits conferred on the property assessed. Lenon v. Street Improv. Dist., 181 Ark. 318, 26 S.W.2d 572 (1930).

If school property was not benefited by an improvement, the directors of the school district could have appealed the finding of the assessors to the city council for a hearing de novo and then have had its assessment corrected by applying to the chancery court within 30 days after publication of the city ordinance confirming the assessments and, in absence of a showing that these procedures were successfully followed, it must be presumed that the school property was benefited. Rainwater v. Haynes, 244 Ark. 1191, 428 S.W.2d 254 (1968).

Collateral Attack.

Refusal of a city council to postpone the hearing of a protest against a sewer assessment on account of the plaintiff's illness, even if arbitrary, was not a “demonstrable error” such as would subject the assessment to a collateral attack. Davidson v. Sewer Improv. Dist., 182 Ark. 741, 32 S.W.2d 1062 (1930).

Complaint.

It is proper to require the plaintiff in a suit attacking an assessment in an improvement district for certain irregularities to state in his complaint when notice of the filing of the assessment was given since he has only 10 days after the notice is given in which to appeal from the assessment to the city council. Boles v. Kelley, 90 Ark. 29, 117 S.W. 1073 (1909).

Federal Jurisdiction.

In an action to enjoin the assessment and collection of taxes, and where the plaintiffs had a plain, speedy, and efficient remedy in the Arkansas courts under this section, § 14-90-804, § 16-111-103, and § 16-113-306, the Tax Injunction Act, 28 U.S.C. § 1341, barred federal jurisdiction. Burris v. City of Little Rock, 941 F.2d 717 (8th Cir. 1991).

Reassessments.

A city council is not authorized to repeal an improvement district reassessment ordinance which had been duly adopted and published where no suit was brought in the chancery court within 30 days after its publication for the purpose of correcting the reassessment. City Council v. Merchants & Planters Bank, 191 Ark. 1139, 89 S.W.2d 739 (1936).

The remedy of one complaining of reassessments for local improvements is in the chancery court under § 14-90-602, and not by appeal to the city council, since the jurisdiction to revise reassessments has been taken away from the council and vested in the chancery court. Paving Dist. of Harrison v. Fowler, , 192 Ark. 1122, 96 S.W.2d 951 (1936).

14-90-502. Findings and changes.

  1. The city council shall enter on its minutes the result of its finding on any appeal of a municipal improvement district assessment and shall cause a copy of its finding to be certified to the board of assessors.
  2. The board shall make its assessment conform thereto if any change has been made in the assessment by the council.

History. Acts 1899, No. 183, § 5, p. 323; C. & M. Dig., § 5662; Pope's Dig., § 7296; A.S.A. 1947, § 20-407.

Case Notes

Cited: Kirst v. Street Improv. Dist. No. 1, 86 Ark. 1, 109 S.W. 526 (1908).

Subchapter 6 — Correction, Revision, and Reduction of Assessments

Cross References. Change of plans in cities with a population exceeding 60,000, § 14-91-1101 et seq.

Reassessment for repair, replacement, improvement, or extension of electric light, water, and sewer systems, § 14-91-503.

14-90-601. Correction of erroneous descriptions or omitted lands.

    1. The assessors of municipal improvement districts or their successors in office, or a majority of them, may file with the recorder or city clerk their certificate correcting erroneous descriptions of the lots, blocks, and parcels of land and railroad tracks and rights-of-way or describing them where the description was in the original assessment defective or wholly or partly omitted.
    2. In the case of omitted lands and lots, they shall in these cases make an assessment of benefits thereon.
  1. Thereupon, the city clerk or recorder shall publish in some newspaper published in the city or town, if there is one, and if not, then in some newspaper published in the county and having a bona fide circulation in the city or town, a notice in substantially the following form:
      1. Within ten (10) days after the publication of the notice, the district or any property owner may apply to the city or town council to review the assessment so made and corrected.
      2. The district, or any property owner, may apply within thirty (30) days to the chancery court of the county to have the amended assessment reviewed and corrected.
    1. If no application is made to the council within ten (10) days or to the court within thirty (30) days, the assessment shall become final and incontestable, subject only to annual revision so provided by law.
    2. On appeal to the council, the hearing shall be as prescribed in § 14-90-501.
  2. When the certificate correcting the assessment is filed, the city or town clerk or recorder shall make the corrections upon the assessment roll on file in red ink.

“The assessors of Improvement District No have filed their certificate correcting mistakes in the assessment of benefits thereof, which certificate is now in my office subject to inspection. All property owners may appeal to the City Council at any time within ten (10) days from this date. City Clerk (or Recorder) of the City (or Town) of

Click to view form.

History. Acts 1899, No. 183, § 2, p. 323; 1901, No. 143, § 3, p. 264; 1907, No. 167, § 2, p. 402; 1907, No. 406, § 1, p. 1023; C. & M. Dig., § 5659; Acts 1929, No. 64, § 8; Pope's Dig., § 7297; A.S.A. 1947, § 20-409.

Publisher's Notes. Acts 1899, No. 183, § 10, provided that nothing in the act validated preexisting improvement districts.

Case Notes

Effect of Correction.

Where property insufficiently described was taxed, and taxes were not paid, and assessors thereafter attempted to correct description by authorized statutory procedure applying to lands wholly omitted from tax list, or insufficiently described, such procedure, even if followed correctly, was not retroactive in effect, and fatal defect in prior assessments were not cured. Schuman v. Winn, 216 Ark. 153, 224 S.W.2d 538 (1949).

14-90-602. Revision of assessments.

    1. The commissioners of a municipal improvement district may require the assessors to revise their assessment only one (1) time per annum, increasing or diminishing the assessment against particular pieces of property as justice may require.
    2. However, the total amount of benefits shall not be diminished if the district borrowed money or incurred indebtedness.
      1. The reassessment shall be filed with the city clerk or town clerk.
      2. Before the filing of the reassessment with the city or town clerk under this section, the requirements of this section, § 14-88-505, and other applicable law shall be met.
      3. The filing under subdivision (b)(1)(A) of this section shall include without limitation:
        1. Minutes of the meeting in which action was taken by the board concerning a reassessment under this section;
        2. Affidavit of compliance with notification requirements; and
        3. A detailed plan for use of the reassessment moneys and a proposed budget for implementation.
      1. On the filing of a reassessment with the city clerk or town clerk, the city clerk or town clerk shall publish in a newspaper published in the county one (1) time a week for two (2) weeks a notice as follows:
      2. The notice shall be mailed by the district to all record owners of property in the district on the date of the first publication, and an affidavit of mailing shall be filed with the city clerk or town clerk at least six (6) days before the hearing date.
      3. The notice shall be posted prominently and continuously in the district at least thirty (30) days before the hearing date.
    1. On the day named by the notice, the commissioners of the district shall meet at the place named, hear all matters raised concerning the assessment, and adjust the assessment if necessary.
    1. When assessments of benefits are revised and notice is given as provided in this section, the assessments shall be final and conclusive if approved by the governing body of the city or town and unless suit is brought in the circuit court within thirty (30) days after action is taken by the governing body for the purpose of correcting the assessment.
    2. Notice shall be given by the district to all record owners of property in the district at least ten (10) days prior to the meeting date of the governing body of the city or town during which the ordinance on the assessment will be considered.

“The reassessment of Improvement District No (giving the style and number of the district) has been filed in my office, and the same is now open for inspection.

“All persons wishing to be heard on the reassessment shall be heard by the commissioners of the district in the office of the city clerk or town clerk at on the day of , 2

Clerk of the City (or Town) of

History. Acts 1913, No. 125, § 2; 1929, No. 64, § 10; C. & M. Dig., § 5664; Pope's Dig., §§ 7299, 7300; A.S.A. 1947, §§ 20-410, 20-411; Acts 2013, No. 1428, § 4.

Amendments. The 2013 amendment redesignated former (a) as present (a)(1) and added (a)(2); in (a)(1), deleted “thereof” following “assessors” and substituted “only one (1) time” for “not more often than once”; deleted “shall have” following “district” in (a)(2); and rewrote (b) and (c).

Cross References. Assessments not to be reduced after issuance of bonds, § 14-86-602.

Case Notes

Failure to Reassess.

While section does not require district to revise assessments, district cannot insulate itself from inaction since excessive assessment constitutes taking of property without just compensation. Sugarloaf Dev. Co. v. Heber Springs Sewer Imp. Dist., 34 Ark. App. 28, 805 S.W.2d 88 (1991).

Increased or Diminished.

Assessment cannot be diminished or increased where there has been no material physical change in the condition of the property since the original assessment. Street Imp. Dist. v. Goslee, 183 Ark. 539, 36 S.W.2d 960 (1931); Paving Dist. of Harrison v. Johnson, 186 Ark. 1033, 57 S.W.2d 558 (1933); Sugarloaf Dev. Co. v. Heber Springs Sewer Imp. Dist., 34 Ark. App. 28, 805 S.W.2d 88 (1991).

Where an assessment was increased when there had been no material change, it was held void on collateral attack. Paving Dist. of Harrison v. Johnson, 186 Ark. 1033, 57 S.W.2d 558 (1933).

Jurisdiction.

Jurisdiction to review reassessment of benefits is in the chancery court and not in the city council, so that action of council in reducing assessment is without authority and void. Paving Dist. of Harrison v. Fowler, , 192 Ark. 1122, 96 S.W.2d 951 (1936).

Physical Change in Property.

Assessments cannot be increased or diminished except for some physical change that occurs in the property after the original assessment. Maumelle Blvd. Water & Sewer Dist. No. 1 v. Davis, 315 Ark. 353, 868 S.W.2d 73 (1993).

A material physical change is a basis upon which a property owner may obtain, by direct action, a reassessment of benefits for future periods; a ruling retroactively allowing relief for taxes already paid is error. Maumelle Blvd. Water & Sewer Dist. No. 1 v. Davis, 315 Ark. 353, 868 S.W.2d 73 (1993).

14-90-603. Annual readjustment.

A municipal improvement district assessment may be annually readjusted according to additional improvements placed upon the lands and railroad tracks and rights-of-way when a succession of collections is necessary to pay for the improvements.

History. Acts 1899, No. 183, § 2, p. 323; 1901, No. 143, § 3, p. 264; 1907, No. 167, § 2, p. 402; 1907, No. 406, § 1, p. 1023; C. & M. Dig., § 5658; Pope's Dig., § 7293; A.S.A. 1947, § 20-404.

Publisher's Notes. Acts 1899, No. 183, § 10, provided that nothing in the act validated preexisting improvement districts.

Case Notes

Reconsideration.

Municipal council is without power to return assessment to board for reconsideration. Kirst v. Street Improv. Dist. No. 1, 86 Ark. 1, 109 S.W. 526 (1908).

If, for any reason, the first assessment is found to be erroneous before it becomes final, it may be withdrawn and a new assessment made. Thomas v. Street Improv. Dist., 158 Ark. 187, 249 S.W. 590 (1923); Paving Dist. v. Meyer, 158 Ark. 610, 250 S.W. 892 (1923).

Until the assessments have been acted upon by the municipal council, the assessors may be granted permission to withdraw them for reconsideration. Turner v. Adams, 178 Ark. 67, 10 S.W.2d 41 (1928).

14-90-604. Reduction of excessive assessments.

      1. Wherever lands, or other real property, in an improvement district in cities and towns have been assessed for such an unreasonable or excessive amount that the taxes or assessments against the property and which have accumulated against the property are as much or more than the reasonable market value of the property, and there is no existing law authorizing a reduction of the assessment or giving relief to the property owner, any owner of the land or other real property may file a joint petition with the commissioners on the board of improvement of the district, may file a separate petition, or the commissioners may file a separate petition asking the chancery court having jurisdiction to foreclose the lien of assessments in the district to reduce the assessment.
      2. Where the petition is not a joint petition, the other party shall be made a defendant and served with ten (10) days' notice. Thereupon, it shall be the duty of the court to hear the petition.
    1. If on the hearing it appears that all outstanding bonds, interest coupons, and other indebtedness of the district have been fully paid, or that to facilitate the liquidation of the district all of its bonds, coupons, and other indebtedness have been acquired and are held by a trustee or by the commissioners of the district exclusively in trust for the property owners of the district, and if it further appears that the assessment is excessive and should be reduced, it shall be the duty of the court to reduce the assessment as equity and good conscience may require, taking into consideration the market value of the property involved, the benefits accruing to the property by reason of the improvement, the assessments against similar property in the district, the amount of other taxes and assessments against the property in other districts in which the land may be, and any other pertinent facts.
  1. This section is cumulative to other laws pertaining to improvement districts in cities and towns.

History. Acts 1947, No. 328, §§ 1, 2; A.S.A. 1947, §§ 20-453, 20-454.

Case Notes

Cited: Sugarloaf Dev. Co. v. Heber Springs Sewer Imp. Dist., 34 Ark. App. 28, 805 S.W.2d 88 (1991).

Subchapter 7 — Levy of Additional Tax

Effective Dates. Acts 1929, No. 64, § 23: approved Feb. 28, 1929. Emergency clause provided: “It is ascertained and hereby declared that by reason of the inability under the present laws to extend water mains and repair water plants there is great danger of conflagration, that by reason of the inability to extend electric light plants there is great danger to the public peace and safety, owing to the darkness of the streets, and that by reason of the inability to extend and repair sewers there is great danger to the public health, and that for these reasons it is immediately necessary that this act should go into operation, and it is therefore declared that an emergency exists, and this act shall be in force and effect from and after its passage.”

14-90-701. Insufficient tax to complete improvement.

  1. If the tax first levied is insufficient to complete or pay for a municipal improvement, the board of improvement shall report the amount of the deficiency to the governing body of the municipality, and it shall make a determination on whether or not to levy further taxes based on the assessment of benefits for a sum sufficient to complete or pay for the improvement, which shall be collected in the same manner as the first levy.
  2. However, the taxes levied shall not exceed the total amount of the benefits assessed or the limitation of cost fixed in the petition or by this act.

History. Acts 1881, No. 84, § 15, p. 161; C. & M. Dig., § 5665; Acts 1929, No. 64, § 11; Pope's Dig., § 7303; A.S.A. 1947, § 20-420; Acts 2013, No. 1428, § 5.

Amendments. The 2013 amendment subdivided the section into (a) and (b); in (a), substituted “is” for “shall prove,” “governing body of the municipality” for “council,” and “make a determination on whether or not to” for “thereupon,” inserted “or pay for” twice, and “deleted “or pay therefor” twice following “improvement”; and substituted “not” for “never” in (b).

Meaning of “this act”. Acts 1881, No. 84, codified as §§ 14-88-101, 14-88-202, 14-88-204, 14-88-302, 14-88-303, 14-88-30514-88-308, 14-88-311, 14-88-403, 14-88-502, 14-89-201, 14-89-1001, 14-89-1002, 14-90-101, 14-90-201, 14-90-302, 14-90-403, 14-90-701, 14-90-80114-90-805, 14-90-902, 14-90-903, 14-90-916, 14-90-100114-90-1003, 14-90-1005, 14-90-1006, 14-90-110114-90-1106, 14-90-1108, 14-90-120114-90-1204, 14-90-1302, 14-90-1303, 14-91-101, 14-91-10414-91-107, 14-91-201, and 14-235-30114-235-305.

Case Notes

Levy of Taxes.

The council may before the first assessment is exhausted make a second levy without any new petition where the first assessment is insufficient to complete the work. Earl v. Board of Imp., 70 Ark. 211, 67 S.W. 312 (1902).

Subchapter 8 — Payment of Assessments

Publisher's Notes. Acts 1899, No. 183, § 10, provided that nothing in the act validated preexisting improvement districts.

Preambles. Acts 1967, No. 90, contained a preamble which read:

“Whereas, many areas newly annexed to municipalities do not have water, sewer, and other improvements, and can obtain the same only by the formation of municipal improvement districts; and

“Whereas, many of such areas have low tax valuations because of the lack of development which will come only with the extension of water, sewer, and other municipal benefits; and

“Whereas, the construction costs of such improvements have risen in recent years to such an extent that the present cost limitation on said improvements does not permit the landowners to benefit their property with improvements constructed by a municipal improvement district;

“Now, therefore ….”

Acts 1967, No. 351 contained a preamble which read as follows:

“Whereas, Act No. 90 of the 1967 Acts of the General Assembly of the State of Arkansas raised the cost limitation of any municipal improvement district from 60% to 80% of the assessed value of the real property in the district; and

“Whereas, through inadvertence, when Senate Bill 22 (which became Act 163 of 1967) was adopted the cost limitation was left at 60%, and said limitation is not sufficient to permit many municipal improvement districts in Arkansas to construct needed facilities ….”

Acts 1971, No. 107, contained a preamble which read:

“Whereas, many areas within municipalities do not have adequate water, sewer and other improvements, and can obtain the same only by the formation of municipal improvement districts; and

“Whereas, the construction costs of such improvements have risen in recent years and the present cost limitation on such improvements does not permit the landowners to benefit their property with improvements constructed by a municipal improvement district in some instances ….”

Effective Dates. Acts 1913, No. 5, § 3: approved Jan. 30, 1913. Emergency declared.

Acts 1913, No. 125, § 9: approved Mar. 3, 1913. Emergency declared.

Acts 1921, No. 395, § 2: effective on passage.

Acts 1925, No. 184, § 2: effective on passage.

Acts 1929, No. 64, § 23: Feb. 28, 1929. Emergency clause provided: “It is ascertained and hereby declared that by reason of the inability under the present laws to extend water mains and repair water plants there is great danger of conflagration, that by reason of the inability to extend electric light plants there is great danger to the public peace and safety, owing to the darkness of the streets, and that by reason of the inability to extend and repair sewers there is great danger to the public health, and that for these reasons it is immediately necessary that this act should go into operation, and it is therefore declared that an emergency exists, and this act shall be in force and effect from and after its passage.”

Acts 1935, No. 145, § 8: approved Mar. 20, 1935. Emergency clause provided: “It is ascertained and hereby declared that by reason of the fact that heretofore it has been necessary to obtain the consent of only a bare majority in value of the owners of real property in order to organize a local improvement district, the organization of such districts all over the State of Arkansas has been in the past greatly abused, advantage has been taken of the owners of property therein and burdensome taxes have been laid upon property owners without any actual increase in property values as compensation therefor, many of such districts having been organized for promotion purposes; that many property owners throughout the State are in danger of losing their said property by reason of their inability to pay the said local improvement taxes; and that unless legislation is immediately enacted making it necessary to obtain the consent of more than a majority in value of said property owners the practice of organizing such districts and the abuse thereof will be continued, all to the serious detriment and injury of owners of property. It is, therefore, found and declared that an emergency exists, and this act shall be in force and effect from and after its passage.”

Acts 1951, No. 397, § 2: Mar. 21, 1951. Emergency clause provided: “It is hereby found and declared by the General Assembly that hardship is being worked by the inability of taxpayers to pay their taxes and this will in a great measure afford them relief. Therefore, an emergency is declared to exist and this Act being necessary for the public peace, health and safety shall take effect and be in force from the date of its approval.”

Acts 1967, No. 90, § 2: Feb. 14, 1967. Emergency clause provided: “That it is hereby ascertained and declared that there is a real and urgent need to raise the present 60% cost limitation on municipal improvement districts in order that property owners in sparsely-built municipal areas may obtain for themselves water, sewer, and other improvements; that there is an urgent need for such services; and an emergency is therefore declared to exist, and this Act, being necessary for the preservation of the public peace, health and safety, shall take effect and be in force from and after its passage and approval.”

Acts 1967, No. 163, § 7: Feb. 28, 1967. Emergency clause provided: “It has been found and determined by the General Assembly that in many cities and towns in the State of Arkansas the streets and highways are subject to heavy traffic by motor vehicles, that on account of parking motor vehicles in the streets and the lack of facilities for off-street parking of motor vehicles, vehicular traffic in the said streets and highways is made dangerous to drivers and to pedestrians, and that on account thereof the streets and highways are made hazardous to the property and lives of the residents of the State of Arkansas; that it is necessary in order to protect the property and lives of the residents of the State of Arkansas to provide adequate facilities for the off-street parking of motor vehicles and that only by the passage of this Act and giving it immediate effect can the lives and property of the residents of the State of Arkansas be protected. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1967, No. 351, § 2: approved Mar. 14, 1967. Emergency clause provided: “That it is hereby ascertained and declared that there is a real and urgent need for the State's municipal improvement districts to be able to construct needed facilities, and that because of undeveloped lands in the boundaries of the districts the districts have insufficient tax evaluations to permit construction under the 60% limitation in order to meet the increasing needs for public services; an emergency is therefore declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall take effect and be in force from and after its passage.”

Acts 1969, No. 290, § 7: Mar. 21, 1969. Emergency clause provided: “It has been found and it is hereby declared by the General Assembly that the laws governing the organization of municipal improvement districts previously required the petition of a majority in value of the property owners in the affected territory, that this requirement was later increased to two-thirds in value, and that the requirements of existing laws obstruct the organization of many municipal improvement districts which would otherwise be organized for the construction or acquisition of improvements essential to the health and welfare of the inhabitants of this State. Therefore, an emergency is declared to exist, and this Act being necessary for the preservation of the public peace, health and safety shall take effect and be in force from and after its passage and approval.”

Acts 1971, No. 107, § 2: Feb. 18, 1971. Emergency clause provided: “That it is hereby ascertained and declared that there is a real and urgent need to eliminate the present 80% cost limitation on municipal improvement districts in order that property owners in municipal areas may be provided with an adequate means to obtain for themselves water, sewer and other improvements; that there is an urgent need for such services and an emergency is therefore declared to exist, and this Act being necessary for the preservation of the public peace, health and safety, shall take effect and be in force from and after its passage and approval.”

Acts 1975, No. 224, § 5: became law without Governor's signature, Feb. 19, 1975. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations and that the existing mandatory form of assessment ordinance for municipal improvement districts in unduly restrictive to the financing of such improvements, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 1991, No. 504, § 7: Mar. 13, 1991. Emergency clause provided: “It is hereby found and determined by the Seventy-Eighth General Assembly of the State of Arkansas that the impairment of the rights of owners of real property located within various improvement districts to prepay their assessments greatly infringes on their rights to own, manage, and enjoy their real property and that it must be made unimpeachably clear that these owners of real property do have and should have the right to prepay these assessments and to be released from the liens upon the prepayment of these assessments. Therefore, in order to clarify and extend rights of owners of real property located within various improvement districts, an emergency is hereby declared to exist, and this act being necessary for the immediate preservation of the public peace, health, and safety, shall be in full force and effect from and after its passage and approval.”

14-90-801. Ordinance providing for installments.

  1. It shall be provided, by ordinance, that the municipal improvement district assessment of benefits shall be paid in successive annual installments so that the tax levied in any one (1) year shall not exceed twenty-five percent (25%) of the assessed benefits accruing to real property.
    1. The ordinance shall provide that the first annual installment shall be collected by the county tax collector on the date fixed in the ordinance, and the second and subsequent annual installments shall be paid thereafter with the first installment of general taxes beginning with the installment of general taxes becoming due more than five (5) months after the date fixed in the ordinance.
    2. The municipality may provide in the ordinance that, after payment of the initial installment, the annual assessment of benefits may be paid in quarterly installments along with the quarterly installments of ad valorem taxes at the election of the taxpayer.
  2. The ordinance may provide that the collection of the annual installment shall be suspended, in whole or in part, for any year upon the filing with the collector, by December 1 of the preceding year, by the commissioners of the district of a certificate reciting the amount of funds available to meet the debt service requirements of the bonds of the district and, if necessary to provide additional funds sufficient therefor, certifying the percentage of the next annual installment on the amount of benefits necessary to be collected.

History. Acts 1881, No. 84, § 5, p. 161; 1899, No. 183, § 6, p. 323; 1901, No. 143, § 4, p. 264; 1913, No. 125, § 3; C. & M. Dig., § 5666; Acts 1921, No. 395, § 1; 1925, No. 184, § 1; 1929, No. 64, § 12; 1935, No. 145, § 4; Pope's Dig., § 7304; Acts 1949, No. 195, § 1; 1951, No. 397, § 1; 1967, No. 90, § 1; 1967, No. 163, § 4; 1967, No. 351, § 1; 1971, No. 107, § 1; A.S.A. 1947, § 20-412.

Publisher's Notes. The 1949 amendment to this section does not apply to municipal improvement districts in existence prior to July 1, 1952. See §§ 14-90-102 and 14-90-103.

Cross References. Levy of tax for preliminary expenses, § 14-86-701.

Case Notes

Failure to Comply.

If council refuses to pass the assessment ordinance, it can be compelled to do so by mandamus. Board of Imp. v. Earl, 71 Ark. 4, 71 S.W. 666 (1903); Paving Dist. v. Little, 170 Ark. 1160, 282 S.W. 971 (1926).

Appellant's appeal from the circuit court's order granting appellee's motion for summary judgment was dismissed because the appellate court was barred from considering the appeal under Ark. R. Civ. P. 54(b) due to the lack of a final order as claims against multiple parties might remain viable, and further, the addendum prepared by appellant appeared to be deficient because it did not contain a copy of the city ordinance that was mandated by § 14-90-801 to provide for the payment of an assessment of special improvement district taxes. Wilkins & Assocs. v. Vimy Ridge Mun. Water Improvement Dist. 139, 369 Ark. 50, 250 S.W.3d 246 (2007).

Cited: Kirst v. Street Improv. Dist. No. 1, 86 Ark. 1, 109 S.W. 526 (1908); McDonnell v. Improvement Dist., 97 Ark. 334, 133 S.W. 1126 (1911); Bateman v. Board of Comm'rs, 102 Ark. 306, 143 S.W. 1062 (1912); Cherry v. Bowman, 106 Ark. 39, 152 S.W. 133 (1912); Deane v. Moore, 112 Ark. 254, 165 S.W. 639 (1914); Rogers v. Semmes, 123 Ark. 467, 185 S.W. 479 (1916); White v. Loughborough, 125 Ark. 57, 188 S.W. 10 (1916); Malvern v. Nunn, 127 Ark. 418, 192 S.W. 909 (1917); Bottrell v. Hollipeter, 135 Ark. 315, 204 S.W. 843 (1918); Blackburn v. Dunlap, 143 Ark. 625, 221 S.W. 176 (1920); Withrow v. City of Nashville, 145 Ark. 340, 224 S.W. 614 (1920); Meyer v. Board of Imp. Paving Dist., 148 Ark. 623, 231 S.W. 12 (1921); Brown v. Board of Comm'rs, 165 Ark. 585, 265 S.W. 81 (1924); Hill v. Walthour, 166 Ark. 277, 266 S.W. 85 (1924); Pledger v. Soltz, 169 Ark. 1125, 278 S.W. 50 (1925); Paving Dist. v. Little, 170 Ark. 1160, 282 S.W. 971 (1926); Fry v. Poe, 175 Ark. 375, 1 S.W.2d 29 (1927); Stevens v. Shull, 178 Ark. 269, 10 S.W.2d 511 (1928); Street Improv. Dist. v. Mooney, 203 Ark. 745, 158 S.W.2d 661 (1942); Jones v. Jones, 236 Ark. 296, 365 S.W.2d 716 (1963).

14-90-802. Form of ordinance.

The ordinance referred to in § 14-90-801 may be in substantially the following form:

“Whereas, a majority in value of the property holders owning property adjoining the locality to be affected and situated in District No. organized for the purpose of have petitioned the governing body of the city (or town) of for the construction of said improvement, and that the cost thereof shall be assessed upon the real property of said district according to the benefits received; and “Whereas, said benefits received by each and every block, lot, and parcel of real property situated in said district equals or exceeds the local assessment thereon; and “Whereas, the estimated cost of said improvement is Dollars: “Therefore, it is now ordained by the governing body of the city (or town) of , that said several blocks, lots, and parcels of real property in said district be assessed according to the assessment list for said improvement district as the same now remains in the office of the recorder or city clerk, and that percent of the assessment of each of said blocks, lots, and parcels shall be collected by the County Collector on or before the day of , and percent of the assessment shall be collected with the first installment of general taxes becoming due more than five (5) months thereafter, and annually thereafter, with the first installment of general taxes until the whole of said local assessment shall be paid.”

Click to view form.

History. Acts 1881, No. 84, § 5, p. 161; 1899, No. 183, § 7, p. 323; 1901, No. 143, § 5, p. 264; C. & M. Dig., § 5667; Pope's Dig., § 7305; Acts 1949, No. 195, § 2; 1969, No. 290, § 3; 1975, No. 224, § 1; A.S.A. 1947, § 20-413.

Publisher's Notes. The 1949 amendment to this section does not apply to municipal improvement districts in existence prior to July 1, 1952. See §§ 14-90-102, 14-90-103.

Case Notes

Cited: McAllister v. Forrest City Street Improv. Dist. No. 11, 274 Ark. 372, 626 S.W.2d 194 (1981).

14-90-803. Publication of ordinance.

Within thirty (30) days after the passage of the ordinance mentioned in § 14-90-801, the recorder or city clerk shall publish a copy of it in some newspaper published and having a bona fide circulation in the town or city for one (1) time; or if no newspaper is published in the city or town, then in some newspaper published in the county; and, if no newspaper is published in the county, then by posting in at least ten (10) conspicuous places in the city or town.

History. Acts 1881, No. 84, § 6, p. 161; 1899, No. 183, § 8, p. 323; 1901, No. 143, § 6, p. 264; 1913, No. 5, § 2; C. & M. Dig., § 5668; Acts 1929, No. 64, § 13; Pope's Dig., § 7307; A.S.A. 1947, § 20-416.

Case Notes

Construction.

The provisions of this section are mandatory. Gibson v. Hoxie, 110 Ark. 544, 162 S.W. 568 (1913).

Cited: Burris v. City of Little Rock, 941 F.2d 717 (8th Cir. 1991).

14-90-804. Contesting payment.

  1. Within thirty (30) days after publication as prescribed in § 14-90-803, the municipal improvement district or any property owner may bring suit in the chancery court of the county for the purpose of correcting or invalidating the assessment.
  2. If the suit is not brought within that time, all objections to the creation of the district or the validity of the assessment shall be forever barred and precluded.

History. Acts 1881, No. 84, § 6, p. 161; 1899, No. 183, § 8, p. 323; 1901, No. 143, § 6, p. 264; 1913, No. 5, § 2; C. & M. Dig., § 5668; Acts 1929, No. 64, § 13; Pope's Dig., § 7307; A.S.A. 1947, § 20-416.

Research References

ALR.

What Constitutes Plain, Speedy, and Efficient State Remedy Under Tax Injunction Act, (28 USCS § 1341) Prohibiting Federal District Courts from Interfering with Assessment, Levy, or Collection of State Business Taxes. 31 A.L.R. Fed. 2d 237.

Case Notes

Constitutionality.

The fact that owners made a mistake in valuing their property and consequently in failing to object to that assessment does not make this a governmental taking; the right of the property owner to make a direct attack on the assessment satisfies the due process requirements of the Constitution. Maumelle Blvd. Water & Sewer Dist. No. 1 v. Davis, 315 Ark. 353, 868 S.W.2d 73 (1993).

In General.

This section gives a reasonable opportunity to be heard. Board of Improv. Dist. No. 5 v. Offenhauser, 84 Ark. 257, 105 S.W. 265 (1907); Board of Imp. v. Pollard, 98 Ark. 543, 136 S.W. 957 (1911).

Construction.

The provisions of this section are mandatory. Gibson v. Hoxie, 110 Ark. 544, 162 S.W. 568 (1913).

If school property was not benefited by an improvement, the directors of the school district could have appealed the finding of the assessors to the city council for a hearing de novo and then have had its assessment corrected by applying to the chancery court within 30 days after publication of the city ordinance confirming the assessments, and in the absence of a showing that these procedures were successfully followed, it must be presumed that the school property was benefited. Rainwater v. Haynes, 244 Ark. 1191, 428 S.W.2d 254 (1968).

Appeals.

Where assessments were found excessive as to specific property and collection of benefits permanently enjoined, case was remanded since trial court was in error in not determining the correct benefits to be assessed against the property. Paving Imp. Dist. v. Brooks, 222 Ark. 227, 258 S.W.2d 233 (1953).

Collateral Attack.

The establishment of an improvement district and the assessment of benefits are subject to collateral attack only when they appear on their face to be demonstrably erroneous. Davidson v. Sewer Improv. Dist., 182 Ark. 741, 32 S.W.2d 1062 (1930).

Action to set aside assessment of benefits for street improvement commenced more than 30 days after notice of the filing of the assessment was a collateral attack and not maintainable. Wood v. Tobin, 193 Ark. 964, 104 S.W.2d 203 (1937).

If no objection was made to the regularity of the assessment of benefits within the statutory period, no such objection could be made by the city curb and gutter district in an action by the trustee to enforce payment of the district's bonds. Curb & Gutter Dist. v. Parrish., 110 F.2d 902 (8th Cir. 1940).

A municipal improvement district can be collaterally attacked even after the 30-day limitation has expired if fraud or demonstrable mistake can be shown. McAllister v. Forrest City Street Improv. Dist. No. 11, 274 Ark. 372, 626 S.W.2d 194 (1981).

An improvement district's assessment of benefits is subject to collateral attack, after the period for direct attack has run, in certain limited circumstances; a collateral attack can prevail only in the event the property owner can show that there was fraud or demonstrable error in the original assessment of the benefits. Maumelle Blvd. Water & Sewer Dist. No. 1 v. Davis, 315 Ark. 353, 868 S.W.2d 73 (1993).

The chancellor erred in going outside of the face of the record of the proceedings that created the district to find extraneous evidence of demonstrable error in the assessment of benefits on collateral attack. Maumelle Blvd. Water & Sewer Dist. No. 1 v. Davis, 315 Ark. 353, 868 S.W.2d 73 (1993).

Direct Attack.

A suit by property owners to set aside an assessment brought within the designated time constitutes a direct attack on the assessment. Kelley Trust Co. v. Paving Dist. No. 46, 184 Ark. 408, 43 S.W.2d 71 (1931).

When the direct attack, one within 30 days, relates to the excessiveness of the assessments on specific property, it is for the purpose of correcting the assessment. Paving Imp. Dist. v. Brooks, 222 Ark. 227, 258 S.W.2d 233 (1953).

When a direct attack, one made in 30 days, is against all of the assessments in the improvement district, then the chancery court, if it sustains the attack, necessarily sets aside all the assessed benefits. Paving Imp. Dist. v. Brooks, 222 Ark. 227, 258 S.W.2d 233 (1953).

The assessment of benefits of a municipal improvement district can be attacked directly or, in limited circumstances, collaterally; in order to directly attack an assessment of benefits, a property owner must institute an action to correct or invalidate the assessment within 30 days of its publication. Maumelle Blvd. Water & Sewer Dist. No. 1 v. Davis, 315 Ark. 353, 868 S.W.2d 73 (1993).

Where plaintiffs did not file a direct attack within 30 days of the publication of the assessment, they were barred from directly attacking the assessment of benefits. Maumelle Blvd. Water & Sewer Dist. No. 1 v. Davis, 315 Ark. 353, 868 S.W.2d 73 (1993).

Federal Jurisdiction.

In an action to enjoin the assessment and collection of taxes, and where the plaintiffs had a plain, speedy, and efficient remedy in the Arkansas courts under this section, § 14-90-501, § 16-111-103, and § 16-113-306, the Tax Injunction Act, 28 U.S.C. § 1341, barred federal jurisdiction. Burris v. City of Little Rock, 941 F.2d 717 (8th Cir. 1991).

Limitation of Actions.

Suits contesting assessments must be brought within 30 days. Ahern v. Board of Improv. Dist. No. 3, 69 Ark. 68, 61 S.W. 575 (1901); Burrus v. Board of Sewer Improv., 134 Ark. 10, 203 S.W. 20 (1918); Missouri P. R. Co. v. Waterworks Improv. Dist., 134 Ark. 315, 203 S.W. 696 (1918); Davidson v. Sewer Improv. Dist., 182 Ark. 741, 32 S.W.2d 1062 (1930).

Suits not brought within time prescribed held barred. Webster v. Ferguson, 95 Ark. 575, 130 S.W. 513 (1910); Ingram v. Thames, 150 Ark. 443, 234 S.W. 629 (1921); Thomas v. Street Improv. Dist., 158 Ark. 187, 249 S.W. 590 (1923); Carnahan v. City of Fayetteville, 175 Ark. 405, 1 S.W.2d 10 (1927); Williams v. Serer Improv. Dist., 180 Ark. 510, 22 S.W.2d 405 (1929); Yates v. Phillips, 180 Ark. 709, 22 S.W.2d 559 (1929); Missouri P. R. Co. v. Sewer Improv. Dist. No. 2, 33 F.2d 566 (8th Cir. 1929); Laflin v. Board of Comm'rs, 205 Ark. 24, 166 S.W.2d 653 (1942); Ray v. City of Mt. Home, 228 Ark. 885, 311 S.W.2d 163 (1958).

Pleadings.

The plaintiff in a suit attacking the validity of an assessment in an improvement district was properly required to amend his complaint by stating when the ordinance was passed. Boles v. Kelley, 90 Ark. 29, 117 S.W. 1073 (1909).

After the expiration of the 30-day period for attacking improvement district ordinances, third persons who were not parties to the action previously instituted for the purpose of attacking an assessment can become party plaintiffs by adopting the pleadings of the original plaintiffs. Meyer v. Board of Imp. Paving Dist., 148 Ark. 623, 231 S.W. 12 (1921).

14-90-805. Preference of assessment.

  1. An assessment shall be a charge and a lien against all the real property in a municipal improvement district from the date of an ordinance and shall be entitled to preference over all judgments, executions, encumbrances, or liens whenever created.
  2. The lien shall continue until the local assessment, including any penalty and costs that may accrue thereon, shall be paid. Provided, however, with the prior written approval of the board of improvement, the county clerk shall release from the lien of any assessment any lot, block, or tract with respect to which the assessment shall have been paid or prepaid.
  3. As between grantor and grantee, all payments not due at the date of the transfer of the real property shall be payable by the grantee.

History. Acts 1881, No. 84, § 5, p. 161; 1899, No. 183, § 7, p. 323; 1901, No. 143, § 5, p. 264; C. & M. Dig., § 5667; Pope's Dig., § 7306; A.S.A. 1947, § 20-414; Acts 1991, No. 504, § 1.

Case Notes

In General.

Assessments for a local improvement are a charge and lien entitled to preference against the real property in the district from the date of the ordinance levying the assessment, which shall continue until the assessment shall be paid. Hudgins v. Schultice, 118 Ark. 139, 175 S.W. 526 (1915).

Continuing Lien.

Improvement district can only release its lien upon full payment of all assessments against the property involved. Lueken v. Burch, 214 Ark. 921, 219 S.W.2d 235 (1949).

It was held proper to require commissioners of improvement district to collect all delinquent assessments with interest with notice that such delinquencies were to be paid within 90 days in order to redeem property, since liability for assessments continues. Whitaker & Co. v. Sewer Improv. Dist., 229 Ark. 697, 318 S.W.2d 831 (1958).

Grantor and Grantee.

A local assessment is not a “tax” within an exception in a covenant of warranty of the taxes for a certain year. Sanders v. Brown, 65 Ark. 498, 47 S.W. 461 (1898).

Lien on All Real Property.

A municipal improvement district has lien for delinquent assessments on buildings on the lot as well as the lot itself. City of Eureka Springs v. Banks, 206 Ark. 289, 174 S.W.2d 947 (1943).

Limitation of Actions.

Where street improvement district foreclosed its lien and sold property and sewer improvement district foreclosed its lien upon the same property and sold its interest, the respective purchasers from the two districts were not tenants in common, but divided fund on sale of property in ratio to amount of their respective liens upon the property. Sanders v. Mhoon, 214 Ark. 589, 217 S.W.2d 349 (1949).

Statute of limitations does not run against right of improvement district to foreclose its lien. Lueken v. Burch, 214 Ark. 921, 219 S.W.2d 235 (1949).

Mortgagee held subrogated to rights of improvement district against which statute of limitations did not run. Lueken v. Burch, 214 Ark. 921, 219 S.W.2d 235 (1949).

Cited: Burris v. City of Little Rock, 941 F.2d 717 (8th Cir. 1991).

Subchapter 9 — Collection of Assessments

Cross References. Payment of improvement district taxes with bonds of district, § 14-86-803.

Effective Dates. Acts 1897, No. 16, § 5: effective on passage.

Acts 1951, No. 234, § 3: Mar. 6, 1951. Emergency clause provided: “Whereas Collectors are having great difficulty in securing deputy hire to prepare tax books on Municipal Improvement Districts an emergency is hereby declared to exist and this act shall be in full force and effect upon and after its passage and approval.”

Acts 1953, No. 39, § 3: Feb. 6, 1953. Emergency clause provided: “Whereas, Collectors are having great difficulty in securing deputy hire to prepare tax books on Municipal Improvement Districts an emergency is hereby declared to exist and this Act shall be in full force and effect upon and after its passage and approval.”

Acts 1957, No. 332, §§ 2, 3: Jan. 1, 1957. Emergency clause provided: “It is hereby determined by the General Assembly that the allowance for deputy hire by County Clerks and Tax Collectors in extending and collecting improvement district taxes is wholly inadequate and that the immediate passage of this Act is necessary in order to correct said condition. Therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.” Approved March 27, 1957.

14-90-901. Penalty — Damages.

    1. Any county tax collector who fails to make payment to the county treasurer within the time prescribed by §§ 14-90-904 and 14-90-907, or who fails to certify the delinquent list to the clerk of the chancery court within the time prescribed by §§ 14-90-905 and 14-90-908, shall be guilty of a misdemeanor and shall be fined in the sum of ten dollars ($10.00) for each offense.
    2. Each day intervening between the time fixed for making the payment or filing the delinquent list and the time the payment is made or the delinquent list is filed shall be considered a separate offense.
  1. The municipal improvement district may recover from the collector and his bondsmen all damages sustained by reason of his noncompliance with the provisions of this act.

History. Acts 1949, No. 195, § 10; A.S.A. 1947, § 20-418.6.

Publisher's Notes. This section does not apply to municipal improvement districts in existence prior to July 1, 1952. See §§ 14-90-102, 14-90-103.

Meaning of “this act”. Acts 1949, No. 195, codified as §§ 14-88-401, 14-88-404, 14-90-102, 14-90-801, 14-90-802, 14-90-90114-90-915, 14-90-1002, 14-90-1107, 14-90-1301, 14-90-1303, 14-90-1405, and 14-90-1406.

14-90-902. Copy of assessments delivered to collector.

Within forty (40) days after the passage of a municipal improvement district assessment ordinance, unless the time is extended by the city or town council, the city clerk or town recorder shall deliver to the county tax collector a certified copy of the assessment of benefits containing a description of the blocks, lots, and parcels of land in the district and the amount assessed on each, duly extended against each lot, block, or parcel of land and a certified copy of the ordinance fixing the percent to be collected each year.

History. Acts 1881, No. 84, § 7, p. 161; 1901, No. 143, § 7, p. 264; C. & M. Dig., § 5669; Pope's Dig., § 7308; Acts 1949, No. 195, § 3; A.S.A. 1947, § 20-417.

Publisher's Notes. The 1949 amendment to this section does not apply to municipal improvement districts in existence prior to July 1, 1952. See §§ 14-90-102, 14-90-103.

Acts 1901, No. 143, § 8, provided:

“That this act shall not apply to districts already formed unless a majority of the property owners in value shall apply to the city or town council to reorganize under this act, and shall be granted the privilege of doing so by ordinance duly passed.”

Case Notes

Failure to Deliver.

Failure of city clerk to file annually the assessment list and warrant (now certified copy of ordinance) did not invalidate the lien. Martin v. Board of Comm'rs, 190 Ark. 747, 81 S.W.2d 414 (1935) (decision prior to 1949 amendment).

Board of commissioners of street improvement district of city was held not prevented from bringing suit to enforce payment of delinquent assessment by reason that no warrant (now certified copy of ordinance) for the collection of assessments was ever issued by the city clerk or recorder. Ingram v. Board of Comm'rs, 197 Ark. 404, 123 S.W.2d 1074 (1938) (decision prior to 1949 amendment).

14-90-903. Notice for collection of assessment.

The county tax collector shall immediately upon the receipt of the certified copies of the municipal improvement district assessment of benefits and ordinance cause to be published in some newspaper published in the city a notice, which may be in the following form:

“Special Assessment “The tax book for the collection of the first annual special assessment upon the real property in District No. for the purpose of has been placed in my hands. All owners of real property lying in the District are required to pay their assessment to me within thirty (30) days from this date. If such payment is not made, action shall be commenced at the end of that time for the collection of said assessments and for legal penalties and costs. “Given under my hand this day of , 19 County Collector”

Click to view form.

History. Acts 1881, No. 84, § 8, p. 161; C. & M. Dig., § 5671; Pope's Dig., § 7309; Acts 1949, No. 195, § 4; A.S.A. 1947, § 20-418.

Publisher's Notes. The 1949 amendment to this section does not apply to municipal improvement districts in existence prior to July 1, 1952. See §§ 14-90-102 and 14-90-103.

14-90-904. First annual special assessment.

  1. The tax collector shall collect that part of the municipal improvement district assessment extended against each lot, block, or parcel of land as specified in the certified copy of the assessment of benefits filed with him.
  2. Within thirty (30) days after the expiration of the time for paying the first annual assessment, the collector shall pay to the county treasurer, for the credit of the district, all moneys received by him in the payment of the first annual special assessment, less the fees allowed him by the provisions of § 14-90-913.
  3. The treasurer shall immediately pay all funds so paid to him by the collector to the board of improvement or other persons authorized to receive them, less the fees allowed by the provisions of § 14-90-913.

History. Acts 1949, No. 195, § 5; A.S.A. 1947, § 20-418.1.

Publisher's Notes. This section does not apply to municipal improvement districts in existence prior to July 1, 1952. See §§ 14-90-102 and 14-90-103.

14-90-905. Delinquent first annual assessments.

  1. Within thirty (30) days after the expiration of the period allowed for the payment of the municipal improvement district first annual special assessment, the county tax collector shall certify a list of the lands which have become delinquent by reason of the nonpayment of the first annual special assessment within the time specified under § 14-90-903.
  2. On the list, the collector shall show the name of the supposed owner as it appears on the tax books, describe the delinquent lot, block, or parcel of land, and indicate after each description the amount of the delinquent installment and the year in which that installment became due.

History. Acts 1949, No. 195, § 6; A.S.A. 1947, § 20-418.2.

Publisher's Notes. This section does not apply to municipal improvement districts in existence prior to July 1, 1952. See §§ 14-90-102 and 14-90-103.

14-90-906. Filing with county clerk — Extensions.

  1. At the same time the city clerk or town recorder delivers to the county tax collector a certified copy of the municipal improvement district assessment of benefits and a certified copy of the ordinance fixing the percent to be collected, he shall deliver like certified copies to the county clerk.
    1. For the payment of the second and subsequent annual installments of the special assessment, the county clerk shall annually extend on the tax books against the property described in the assessment of benefits the percent designated in the ordinance for annual collection.
    2. In making this extension, the county clerk shall include the name of the district levying the assessment and shall indicate the amount of the annual installment to be collected in dollars and cents.
    1. If the ordinance fixing the percent for annual collection is amended, then a certified copy of the amended ordinance shall be filed with the county clerk, and thereafter he shall extend the percent as fixed by the amended ordinance.
    2. Not more than twenty-five percent (25%) of the benefits may be extended in any one (1) year.
    1. In the event the assessments as contained in the certified copy of the assessments filed in the office of the county clerk are in any manner revised, changed, or divided, then, upon receipt of a certificate executed by the board of improvement or its duly authorized agent, the county clerk shall have the right to change the assessment of benefits as filed in his office so as to correspond with the change, alteration, or division.
    2. When extending the annual installments in the future, the county clerk shall make the extensions in accordance with the change, alteration, or division.

History. Acts 1949, No. 195, § 7; A.S.A. 1947, § 20-418.3.

Publisher's Notes. This section does not apply to municipal improvement districts in existence prior to July 1, 1952. See §§ 14-90-102 and 14-90-103.

14-90-907. Subsequent annual installments.

  1. For the second and subsequent annual installments of a municipal improvement district special assessment, the county tax collector shall collect on each lot, block, or parcel of land in the district that part of the assessment which is specified on the tax list as prepared by the county clerk, and this amount shall be collected along with the first installment of general taxes. However, the payment of the annual installment levied by the district shall not be a condition precedent to the payment of general taxes.
  2. After expiration of the time allowed by law for the payment of the first installment of general taxes, except as provided in § 14-90-908, the collector shall not collect any of the annual installments due the district.
  3. Within thirty (30) days after the expiration of the time for paying the first installment of general taxes, the collector shall pay to the county treasurer, for the credit of the district, all moneys received by him in the payment of the annual installments, less the fees allowed him by the provisions of § 14-90-913. However, in counties where collections are made in more than thirty-five (35) improvement districts, the collector shall have ninety (90) days in which to make payment to the treasurer.
  4. The treasurer shall immediately pay all funds so paid to him by the collector to the board of improvement or other persons authorized to receive them, less the fees allowed by the provisions of § 14-90-913.
  5. No disbursement shall be made to any district, however, until all fees due the county clerk for extending the annual installments have been paid.
  6. The payment of any subsequent annual installment after the property has become delinquent by reason of nonpayment of some past-due installment shall not be treated as a redemption and shall not affect the district's right to foreclose the delinquent installment.

History. Acts 1949, No. 195, § 8; A.S.A. 1947, § 20-418.4.

Publisher's Notes. This section does not apply to municipal improvement districts in existence prior to July 1, 1952. See §§ 14-90-102 and 14-90-103.

14-90-908. Delinquent annual installments.

    1. Within thirty (30) days after the expiration of the period allowed for the payment of the first installment of general taxes, the county tax collector shall certify a list of the lands which have become delinquent by reason of the nonpayment of the annual installments within the time specified under § 14-90-907. However, in counties where collections are made in more than thirty-five (35) improvement districts, the collector shall have ninety (90) days within which to make the certification.
    2. Separate lists shall be made for each district if the collector collects the annual installments of more than one (1) district.
  1. On that list, the collector shall show the name of the supposed owner as it appears on the tax books, describe the delinquent lot, block, or parcel of land, and indicate after each description the amount of the delinquent installment and the year in which the installment became due.
  2. Until such time as the collector has certified the list of the lands which have become delinquent, the collector may continue to receive payment of the delinquent annual taxes in the same manner and to the same effect as if the payment had been made prior to the time it became delinquent.

History. Acts 1949, No. 195, § 9; A.S.A. 1947, § 20-418.5.

Publisher's Notes. This section does not apply to municipal improvement districts in existence prior to July 1, 1952. See §§ 14-90-102 and 14-90-103.

14-90-909. Delinquent penalty.

  1. Upon receipt of the municipal improvement district delinquent list as certified by the county tax collector, the collector shall mark the filing date and add to each delinquent installment a penalty of ten percent (10%).
  2. The collector shall then extend into the books or permanent record each tract, block, or parcel of land with the total of the annual installment, penalty, and costs, together with the name and address of each supposed owner of each tract, block, or parcel.

History. Acts 1949, No. 195, § 11; A.S.A. 1947, § 20-418.7.

Publisher's Notes. This section does not apply to municipal improvement districts in existence prior to July 1, 1952. See §§ 14-90-102 and 14-90-103.

14-90-910. Redemption of delinquent lands.

    1. Anyone desiring to redeem any delinquent lot, block, or parcel of land in a municipal improvement district shall pay to the clerk of the chancery court the annual installment, penalty, and costs. The clerk shall thereupon issue a redemption certificate in triplicate.
    2. The original shall be delivered to the person making the redemption, one (1) copy shall be furnished to the board of commissioners of the district, and one (1) copy shall be retained by the clerk.
    3. Opposite each tract appearing on the delinquent list, the clerk shall make a notation of the redemption and the date of the issuance of the certificate.
  1. The clerk shall, at monthly intervals, remit all taxes and penalties so collected to the board of the district or other person authorized to receive them.

History. Acts 1949, No. 195, § 12; A.S.A. 1947, § 20-418.8.

Publisher's Notes. This section does not apply to municipal improvement districts in existence prior to July 1, 1952. See §§ 14-90-102 and 14-90-103.

The authority of the clerk of the chancery court may be transferred to the county tax collector pursuant to the authority of § 14-86-1001.

14-90-911. Proceedings before filing delinquency suit.

    1. Before filing suit to collect delinquent municipal improvement district installments, the board of improvement shall obtain from the county tax collector or the officials having the delinquent list a certified list of all lots, blocks, and parcels of lands unredeemed.
    2. This list shall contain the description and the name of the supposed owner.
    3. For preparing the list, the clerk or person preparing it shall be entitled to ten cents (10¢) per tract, which shall be charged to the delinquent lands and collected from the owners when the lands are redeemed or charged as costs in the foreclosure suit.
    1. The board shall submit the list to a competent abstractor, who shall compile a list of the names and last known addresses of the owners of record of all tracts included in the list prepared by the collector and shall certify as to the source of the addresses furnished by him.
    2. For these services, they may pay the abstractor such sum as may be reasonable and customary, not to exceed fifty cents (50¢) for each lot, block, or parcel.
  1. Certified copies of both lists shall be attached as exhibits to the complaint.
  2. Twenty (20) days prior to the filing of the complaint, the board shall cause to be mailed, by certified mail with return receipt requested, to each record owner as listed by the abstractor, a notice describing the delinquent property, specifying the year of delinquency and the amount or the approximate amount necessary for redemption, and informing the owner as to the date on which the suit will be filed.
    1. As an exhibit to the complaint, there shall be attached an affidavit of the person who mailed the notices.
    2. The affidavit shall:
      1. Set forth a copy of the notice;
      2. Show:
        1. The date the notices were mailed;
        2. The names and addresses of the last owners of record; and
        3. To whom the notices were mailed; and
      3. Contain a list of all notices which, because of insufficient addresses, were returned prior to the filing of the complaint.
  3. The amounts expended by the board in obtaining the list of the last owners of record from the abstractor and in sending the registered letters shall be certified by the board to the collector and shall be charged on a per tract basis to the delinquent lands and collected from the owners when the lands are redeemed, or charged as costs in the foreclosure suit.

History. Acts 1949, No. 195, § 17; A.S.A. 1947, § 20-418.13; Acts 1991, No. 92, § 1.

Publisher's Notes. This section applies to all municipal improvement districts whether created before or after its enactment. See §§ 14-90-102 and 14-90-103.

Case Notes

Notice.

Where owners had no notice of any kind (either actual or by registered mail) that the foreclosure suit would be or was in fact filed in this case, the foreclosure decree, together with the deeds based thereon, would be subject to collateral attack. Beck v. Rhoads, 235 Ark. 619, 361 S.W.2d 545 (Ark. 1962).

Redemption.

It was not necessary for owners to allege they paid the assessments on their land in suit brought by them to redeem the land, since this suit in no way says or intimates that a landowner can redeem only where he has paid his taxes; and it was not incumbent upon them to have a valid defense to the forfeiture action wherein the land was sold. Beck v. Rhoads, 235 Ark. 619, 361 S.W.2d 545 (Ark. 1962).

14-90-912. Fees for filing delinquencies.

  1. The county tax collector, for his services in filing the delinquent list and extending the taxes, penalty, and costs, and in issuing the certificate of redemption, shall be entitled to the sum of twenty-five cents (25¢) per tract for each delinquency.
  2. This sum shall be added at the time the delinquent list is filed and shall be collected from the property owner when the delinquent property is redeemed.
  3. In the event the property is included in a foreclosure suit, the twenty-five cents (25¢) per tract shall be charged against the delinquent property, taxed as costs, and paid to the collector.

History. Acts 1949, No. 195, § 13; A.S.A. 1947, § 20-418.9.

Publisher's Notes. This section does not apply to municipal improvement districts in existence prior to July 1, 1952. See §§ 14-90-102 and 14-90-103.

14-90-913. Fees for extension of annual installments.

  1. For services in extending the annual installments, the municipal improvement district shall pay the county clerk one and one-half percent (1½%) of the total amount extended.
  2. For services in collecting the annual installments, the district shall pay to the county tax collector one and three-eighths percent (13/8%) of the amount collected by him, which he may withhold.
  3. For services in disbursing the moneys, the district shall pay the county treasurer one-eighth of one percent (1/8 of 1%) of the amount received by him from the collector, which he may withhold.

History. Acts 1949, No. 195, § 14; A.S.A. 1947, § 20-418.10.

Publisher's Notes. This section does not apply to municipal improvement districts in existence prior to July 1, 1952. See §§ 14-90-102 and 14-90-103.

14-90-914. Deputy clerks.

  1. County clerks are authorized to employ a deputy to do the additional work imposed by the terms of this act.
  2. The clerk may pay the deputy a salary up to the sum of three thousand three hundred dollars ($3,300) per annum. However, the salary shall never exceed the receipts from the one and one-half percent (1½%) allowed the clerk by the provisions of § 14-90-913.

History. Acts 1949, No. 195, § 15; 1957, No. 332, § 1; A.S.A. 1947, § 20-418.11.

Publisher's Notes. This section does not apply to municipal improvement districts in existence prior to July 1, 1952. See §§ 14-90-102 and 14-90-103.

Meaning of “this act”. See note to § 14-90-901.

14-90-915. Deputy collectors.

  1. County tax collectors are authorized to employ one (1) deputy to do the additional work imposed by the terms of this act.
  2. The collector may pay the deputy a salary up to the sum of three thousand three hundred dollars ($3,300) per annum. However, the salary shall never exceed the receipts from the one and three-eighths percent (13/8%) allowed the collectors by the provisions of § 14-90-913.

History. Acts 1949, No. 195, § 16; 1951, No. 234, § 1; 1953, No. 39, § 1; 1957, No. 332, § 1; A.S.A. 1947, § 20-418.12.

Publisher's Notes. This section does not apply to municipal improvement districts in existence prior to July 1, 1952. See §§ 14-90-102 and 14-90-103.

Meaning of “this act”. See note to § 14-90-901.

14-90-916. Payments by collector.

The county tax collector shall pay over to the county treasurer, on the first day of each month, all moneys received by him, deducting therefrom his commission for his services, which shall not exceed three percent (3%), to be fixed by the board of improvements. He shall take duplicate receipts therefor, one (1) of which he shall file with the board.

History. Acts 1881, No. 84, § 12, p. 161; 1897, No. 16, § 3, p. 23; C. & M. Dig., § 5704; Pope's Dig., § 7343; A.S.A. 1947, § 20-419.

Publisher's Notes. As to the compensation of collectors in municipal improvement districts created after July 1, 1952, see § 14-90-913.

Subchapter 10 — Suits to Enforce Payment

Cross References. Lien of district may be enforced notwithstanding tax sale to state, § 14-86-1601 et seq.

Effective Dates. Acts 1913, No. 125, § 9: approved Mar. 3, 1913. Emergency declared.

Acts 1937, No. 101, § 3: Feb. 17, 1937. Emergency clause provided: “Whereas, the owners of real property situated in Municipal Improvement Districts in the State of Arkansas, are now being required to pay exorbitant fees for procuring services in suits brought to enforce collection of delinquent assessments. And:

“Whereas, these fees have been, and are burdensome upon the owners of real property whose lands are being foreclosed for the purpose of enforcing collection of the delinquent assessments. And:

“Whereas, there are now many suits about to be brought for the purpose of enforcing collection of such delinquent assessments by reason of which a large number of citizens of this State will be materially damaged in their property rights, an emergency is hereby declared, because of such fact, and this act being necessary for the immediate preservation of the public peace, health and safety, it shall become effective immediately upon its passage and approval.”

Research References

Ark. L. Rev.

A Commentary on State and Improvement District Tax Sales, 8 Ark. L. Rev. 386.

14-90-1001. Precedence of cases.

  1. For the purpose of taking every step in such suits as are referred to in this subchapter from the beginning to the end, the court shall be always open.
  2. All cases brought under this act shall have precedence of all other cases pending in the court and shall be decided within thirty (30) days after service of publication.

History. Acts 1881, No. 84, § 10, p. 161; C. & M. Dig., § 5681; Pope's Dig., § 7322; A.S.A. 1947, § 20-425.

Meaning of “this act”. Acts 1881, No. 84, codified as §§ 14-88-101, 14-88-202, 14-88-204, 14-88-302, 14-88-303, 14-88-30514-88-308, 14-88-311, 14-88-403, 14-88-502, 14-89-201, 14-89-1001, 14-89-1002, 14-90-101, 14-90-201, 14-90-302, 14-90-403, 14-90-701, 14-90-80114-90-805, 14-90-902, 14-90-903, 14-90-916, 14-90-100114-90-1003, 14-90-1005, 14-90-1006, 14-90-110114-90-1106, 14-90-1108, 14-90-120114-90-1204, 14-90-1302, 14-90-1303, 14-91-101, 14-91-10414-91-107, 14-91-201, and 14-235-30114-235-305.

Case Notes

Cited: Ferrell v. Massie, 150 Ark. 156, 233 S.W. 1083 (1921).

14-90-1002. Filing of complaint.

  1. A municipal board of improvement, within six (6) months after the delinquent list is prepared by the county tax collector, may file and prosecute a suit to collect the delinquent installments.
    1. In the complaint, it shall only be necessary to allege that the lot, block, or parcel of land, describing it, was assessed and that the annual assessment, giving the amount and specifying the year for which levied, was not paid within the time required by law.
    2. It shall not be necessary to allege the steps taken by the municipal council, the board, or other officer.
    3. It shall conclude with the prayer that the delinquent property be charged with the installment in default, penalty, and costs and that it be condemned and sold in payment thereof.
  2. Any lot, block, or parcel of land which has been sold to the improvement district in a prior foreclosure suit and has not been redeemed shall not be included in any subsequent foreclosure suit.
  3. No exhibits other than those specified in this section need to be attached to the complaint.

History. Acts 1881, No. 84, § 10, p. 161; C. & M. Dig., §§ 5674, 5675; Pope's Dig., §§ 7313, 7314; Acts 1949, No. 195, §§ 19, 20; A.S.A. 1947, §§ 20-422, 20-422.1.

Publisher's Notes. This section applies to all municipal improvement districts whether created before or after its enactment. See §§ 14-90-102, 14-90-103.

The collection of delinquent improvement district taxes or assessments has been transferred to the county tax collector by § 14-86-1001.

Cross References. Certified copy of delinquent list filed with complaint, § 14-86-1208.

14-90-1003. Publication of notice.

  1. Notice of the pendency of a suit to collect delinquent municipal improvement district assessments shall be given by publication weekly for two (2) weeks before judgment shall be entered for the sale of the lands, in some newspaper published in the county where the suit is pending.
  2. The notice may be in the following form:

“COMMISSIONERS OF IMPROVEMENT DISTRICTS VS. DELINQUENT LANDS. All persons having a claim and interest in any of the following described lands are hereby notified that suit is pending in the Chancery Court in County, Arkansas, to enforce the collection of certain Improvement District Assessments on the following list of lands, the names of each supposed owner having been set opposite together with the amount of taxes due on each tract, (then shall follow a list of the owners with the descriptive list of delinquent lands, and the several amounts due thereon), all persons and corporations interested in said lands are hereby notified that they are required by law to appear and make defense to said suit, or the same will be taken as confessed and final judgment will be entered, directing the sale of said lands for the purpose of collecting said assessments, together with the penalty and cost allowed by law. (Seal) Clerk of Said Court.”

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History. Acts 1881, No. 84, § 10, p. 161; C. & M. Dig., § 5678; Acts 1937, No. 101, § 1; A.S.A. 1947, § 20-426.

Case Notes

Constitutionality.

The 1933 amendment of this section was held unconstitutional. W. B. Worthen Co. v. Kavanaugh, 295 U.S. 56, 55 S. Ct. 555, 79 L. Ed. 1298 (1935); Hopkins v. Fields, 202 Ark. 890, 154 S.W.2d 22 (1941).

14-90-1004. Party defendant.

In suits to foreclose the lien of assessments upon property in a municipal improvement district, the name of the last owner of the property as it appears in the recorder's office shall always be given as the owner and that party shall be made defendant, unless the board of improvement knows that some other party has acquired title, in which event the actual owner shall be made the defendant.

History. Acts 1913, No. 125, § 4; C. & M. Dig., § 5677; A.S.A. 1947, § 20-424.

14-90-1005. Joinder of parties.

It shall be no objection to any suit brought for the purpose of collecting delinquent municipal improvement district assessments that the lands of two (2) or more owners are joined in the same proceeding, and these suits may be brought against one (1) or more owners.

History. Acts 1881, No. 84, § 10, p. 161; C. & M. Dig., § 5676; A.S.A. 1947, § 20-423.

14-90-1006. Decree.

Under this subchapter, if the decree is in favor of the municipal board of improvement and for the condemnation of the land, it shall be for the penalty and costs of suit, as well as for the amount of the assessment.

History. Acts 1881, No. 84, § 10, p. 161; C. & M. Dig., § 5683; A.S.A. 1947, § 20-427.

Subchapter 11 — Sale of Property

Publisher's Notes. This subchapter, except § 14-90-1107, may be superseded pursuant to §§ 14-90-102, 14-90-103. See also note to § 14-90-1107.

Cross References. Purchaser entitled to possession during redemption period, § 14-86-1501.

Effective Dates. Acts 1925, No. 91, § 3: effective on passage.

14-90-1101. Court order.

  1. In a suit to collect delinquent municipal improvement district assessments brought in the name of the board of improvement, the chancery court shall order, in its decree of condemnation, that if the sum adjudged shall not be paid within ten (10) days, the property shall be sold by a commissioner, appointed for that purpose, upon twenty (20) days' notice.
  2. Only so much of the property shall be sold as will pay the assessment, costs, and penalty, and no more.

History. Acts 1881, No. 84, § 10, p. 161; C. & M. Dig., § 5684; A.S.A. 1947, § 20-428.

Case Notes

Constitutionality.

The 1933 amendment of this section was held unconstitutional. W. B. Worthen Co. v. Kavanaugh, 295 U.S. 56, 55 S. Ct. 555, 79 L. Ed. 1298 (1935); Hopkins v. Fields, 202 Ark. 890, 154 S.W.2d 22 (1941).

14-90-1102. Rules for sales.

  1. All sales under this subchapter shall be for cash and to the highest legal bidder.
  2. If the sales are not completed on the first day, the commissioner shall continue the sales from day to day until completed.
  3. In other respects, these sales shall be governed by the rules and laws regulating other sales of land made under decrees in chancery, and with like notice.

History. Acts 1881, No. 84, § 25, p. 161; C. & M. Dig., § 5700; A.S.A. 1947, § 20-430.

14-90-1103. Payment.

  1. An amount bid at the sale of lands under this subchapter equal to the assessment, penalty, and costs shall be paid at the time of the sale, and the residue of the purchase money shall be paid into the chancery court.
  2. Within twenty (20) days after the period of redemption shall have expired, the court shall cause the assessment and penalty to be paid over to the municipal board of improvement.

History. Acts 1881, No. 84, § 24, p. 161; C. & M. Dig., § 5696; A.S.A. 1947, § 20-431.

14-90-1104. Certificate of purchase.

Upon a sale under this subchapter, the commissioner shall execute to the purchaser a certificate of purchase, in which shall be stated the whole sum paid by the purchaser.

History. Acts 1881, No. 84, § 10, p. 161; C. & M. Dig., § 5691; A.S.A. 1947, § 20-432.

14-90-1105. Failure to pay bid.

In making sales under this subchapter, if any bidder to whom any parcel of land shall be sold shall fail to pay his bid, the commissioner shall at once offer it again, and the bid of the delinquent bidder shall not be taken again at a sale.

History. Acts 1881, No. 84, § 25, p. 161; C. & M. Dig., § 5699; A.S.A. 1947, § 20-433.

14-90-1106. Failure to sell.

Should any of the lands fail to be sold under this subchapter for any reason, the chancery court may, from time to time, order them to be offered again for sale.

History. Acts 1881, No. 84, § 25, p. 161; C. & M. Dig., § 5701; A.S.A. 1947, § 20-434.

14-90-1107. Sale to improvement district.

  1. Municipal improvement districts may purchase lands sold under foreclosure decrees when there are no other bids equal to the delinquent installments, penalties, and costs.
  2. In the absence of bids, the commissioner making the sale, without bidding on the part of the district or its agent, shall sell the lands to the district for the full amount chargeable against the lands by the terms of the decree.
  3. The district may hold, sell, and convey all lands purchased at foreclosure sales.

History. Acts 1925, No. 91, § 1; Pope's Dig., § 7335; Acts 1949, No. 195, § 23; A.S.A. 1947, § 20-435.

Publisher's Notes. This section applies to all municipal improvement districts whether created before or after its enactment. See §§ 14-90-102, 14-90-103.

Acts 1925, No. 91, § 2, contained a provision which read “provided that this act shall not apply to any property which shall have become delinquent or have been forfeited prior to the passage of this act.”

Cross References. Lands forfeited to or bought by district for delinquent taxes, § 26-38-204.

Case Notes

Purpose.

Where the sole object of the improvement district is to collect delinquent taxes, it may purchase the property, and the object of this section is to better accomplish that end. Dewoody v. Jones, 202 Ark. 345, 150 S.W.2d 208 (1941).

Power of Districts.

The power conferred on improvement districts by this section implies the power to accomplish the same result by a conveyance of the property by the owners free of other liens. Dewoody v. Jones, 202 Ark. 345, 150 S.W.2d 208 (1941).

14-90-1108. Compensation of commissioner.

For a sale of property under this subchapter, no allowance to the commissioner for his services shall exceed five dollars ($5.00) for each lot, block, or part of a block of land sold and certificate made by him.

History. Acts 1881, No. 84, § 10, p. 161; C. & M. Dig., § 5685; Pope's Dig., § 7323; A.S.A. 1947, § 20-429.

Subchapter 12 — Appeal from Decree of Sale

14-90-1201. Advancement of cause.

If any appeal is taken from any decree ordering the sale of property to collect delinquent municipal improvement district assessments, the Supreme Court shall advance the cause on its docket and shall hear and decide the cause at as early a day as practicable.

History. Acts 1881, No. 84, § 10, p. 161; C. & M. Dig., § 5686; Pope's Dig., § 7324; A.S.A. 1947, § 20-436.

Case Notes

Constitutionality.

This section was repealed in 1933, but the act was declared unconstitutional. W.B. Worthen Co. ex rel. W. B. Worthen Co. v. Kavanaugh, 295 U.S. 56, 55 S. Ct. 555, 79 L. Ed. 1298 (1935); Hopkins v. Fields, 202 Ark. 890, 154 S.W.2d 22 (1941).

Construction.

This section is mandatory with respect to the time for obtaining the appeal and filing the transcript. Crandell v. Harrison, 105 Ark. 110, 150 S.W. 560 (1912).

14-90-1202. Time to prosecute.

No appeal shall be prosecuted from any decree after the expiration of the twenty (20) days granted in § 14-90-1203 for filing the transcript in the clerk's office of the Supreme Court.

History. Acts 1881, No. 84, § 10, p. 161; C. & M. Dig., § 5689; Pope's Dig., § 7327; A.S.A. 1947, § 20-439.

Case Notes

Constitutionality.

This section was repealed in 1933, but the act was declared unconstitutional. W.B. Worthen Co. ex rel. W. B. Worthen Co. v. Kavanaugh, 295 U.S. 56, 55 S. Ct. 555, 79 L. Ed. 1298 (1935); Hopkins v. Fields, 202 Ark. 890, 154 S.W.2d 22 (1941).

Construction.

This section is mandatory, and when a transcript has not been filed on time, the appeal must be dismissed. Miller v. White, 108 Ark. 253, 157 S.W. 934 (1913).

Cited: Osborne v. Board of Imp., 94 Ark. 563, 128 S.W. 357 (1910); Fulmer v. Board of Comm'rs, 286 Ark. 419, 692 S.W.2d 246 (1985).

14-90-1203. Filing of transcript.

  1. In an appeal under this subchapter, the transcript shall be filed in the office of the clerk of the Supreme Court within twenty (20) days after the rendering of the decree appealed from.
  2. In taking an appeal, the appellant shall only include in the transcript so much of the record as relates to his own lands.

History. Acts 1881, No. 84, § 10, p. 161; C. & M. Dig., §§ 5687, 5688; Pope's Dig., §§ 7325, 7326; A.S.A. 1947, §§ 20-437, 20-438.

Case Notes

Constitutionality.

This section was repealed in 1933, but the act was declared unconstitutional. W. B. Worthen Co. v. Kavanaugh, 295 U.S. 56, 55 S. Ct. 555, 79 L. Ed. 1298 (1935); Hopkins v. Fields, 202 Ark. 890, 154 S.W.2d 22 (1941).

Construction.

This section is mandatory, and when an appeal has not been filed on time, the appeal must be dismissed. Miller v. White, 108 Ark. 253, 157 S.W. 934 (1913).

Applicability.

This section applies in case of an appeal from a decree although the defendant by cross-claim seeks to attack the validity of the improvement district or of the assessments. Ferrell v. Massie, 150 Ark. 156, 233 S.W. 1083 (1921).

Cited: Fulmer v. Board of Comm'rs, 286 Ark. 419, 692 S.W.2d 246 (1985).

14-90-1204. Decision of court.

In an appeal under this subchapter, the Supreme Court shall either affirm or reverse the decree appealed from, shall render such a decree as should have been rendered by the lower court, or shall remand the cause to the inferior court without delay.

History. Acts 1881, No. 84, § 10, p. 161; C. & M. Dig., § 5690; Pope's Dig., § 7328; A.S.A. 1947, § 20-440.

Subchapter 13 — Redemption of Property

Effective Dates. Acts 1995, No. 801, § 6: Mar. 27, 1995. Emergency clause provided: “It is hereby found and determined by the Eightieth General Assembly of the State of Arkansas that the time period for redemption of real property with respect to municipal improvement districts generally, being five (5) years, renders the property unsalable by foreclosing improvement districts; that this results in financial distress for the district and is unfair to the owners of property not delinquent in their assessments; and that these conditions must be relieved immediately. Therefore, an emergency is hereby declared to exist, and this act being necessary for the immediate preservation of the public peace, health, and safety, shall be in full force and effect from and after its passage and approval.”

14-90-1301. Right to redeem.

The owner or person having an interest in any real property sold for delinquent assessment installments due municipal improvement districts shall have the right to redeem the property by paying to the purchaser or his assignee the sale price plus interest from the date of sale to the date of redemption at the rate of six percent (6%) per annum within the periods that follow:

  1. In the case of foreclosure proceedings commenced after May 1, 1995, two (2) years following the foreclosure sale; or
    1. In all other cases, the later of:
      1. Two (2) years after the date of foreclosure; or
      2. December 1, 1996.
    2. Provided, however, in the case of the redemption periods in subdivision (2) (A) of this section, the period shall not be less than one (1) year following notice sent by registered or certified mail to the owner and the holder of any interest of record in such real property, at the address set forth in the real property records or tax records with respect to such real property, advising the owner and holder of the date of expiration of the applicable redemption period.

History. Acts 1949, No. 195, § 21; A.S.A. 1947, § 20-446.1; Acts 1995, No. 801, § 1.

Publisher's Notes. This section applies to all municipal improvement districts whether created before or after its enactment. See §§ 14-90-102, 14-90-103.

Amendments. The 1995 amendment substituted “owner or person having an interest in any real property” for “owner of any land” and “the property by paying to the purchaser” for “at any time within five (5) years from the date of sale, by paying the purchaser” and added “within the periods that follow” in the first paragraph; and added (1) and (2).

Case Notes

Equitable Circumstances.

The fact that this section does not allow redemption as a matter of right after five years does not make it a federal constitutional violation to grant a privilege of redemption beyond the five years as a matter of judicial grace in a situation of equitable circumstances, where no vested legal right is thereby impaired. Dickie v. Sewer Improvement Dist., 328 F.2d 296 (8th Cir. 1964), cert. denied, Dickie v. Sewer Improv. Dist. No. 1, 379 U.S. 821, 85 S. Ct. 42 (1964).

Notice.

This section is not construed to mean the owner could not redeem after five years where he was not given notice of the foreclosure suit, as any other interpretation would seem to nullify the express purpose for which it was enacted, that of providing more protection for the owners of property located within municipal improvement districts. Beck v. Rhoads, 235 Ark. 619, 361 S.W.2d 545 (Ark. 1962).

Where owners had no notice of any kind (either actual or by registered mail) that the foreclosure suit would be or was in fact filed, the foreclosure decree, together with the deeds based thereon, would be subject to collateral attack. Beck v. Rhoads, 235 Ark. 619, 361 S.W.2d 545 (Ark. 1962).

14-90-1302. Waiver of right.

    1. If the owner of property sold to collect delinquent municipal improvement district assessments shall come into court at any time within the period allowed for redemption and shall waive his right of redemption, the court shall order the purchaser to pay the amount that may be going to him within twenty (20) days after service of a copy of the order made on him to that effect.
    2. The payment shall be made into court for the benefit of the owner.
  1. On failure of the purchaser to make the payment, the court shall make an order setting aside the sale and restoring the property to the owner free from all claims of the purchaser, upon payment into court for his use of the amount of the assessment, penalty, and costs, and twenty percent (20%) thereon, which shall be paid over to the purchaser on his application.
    1. In case the certificate of purchase shall have been assigned, the notice provided for in this section may be served on the assignee holding it.
    2. In case the owner of the certificate of purchase shall not be known and that fact shall be made apparent to the court, the court shall cause publication to be made of a copy of the order in some newspaper published in the city for two (2) insertions. The last insertion shall be at least two (2) weeks before the making of the order contemplated in this section.

History. Acts 1881, No. 84, § 24, p. 161; C. & M. Dig., §§ 5697, 5698; A.S.A. 1947, § 20-449.

14-90-1303. Deed after expiration of redemption period.

    1. If any lands sold under this act shall not be redeemed within the time allowed in it, the court in which the suit is brought for the condemnation thereof shall direct a commissioner to execute a deed to the purchaser or his assignee, which may be in the following words:
    2. The deed shall be executed by the commissioner in the same manner as other deeds are required to be executed in cases of sale made under decrees of courts of chancery.
    1. The deed shall be prima facie evidence that all things were done that were necessary to make good the sale and conveyance for the transfer of an estate in fee simple.
      1. Unless the tax has in fact been paid, irregularities which could have been corrected by appeal shall not suffice to impair the validity of the commissioner's deed.
      2. If the name of the owner of record is used, failure to use the name of the true owner shall not impair the validity of the proceeding of the commissioner's deed.
  1. The deed mentioned in this section shall only be made on the filing of the certificate of purchase in the court unless proof of the loss of that certificate shall be made to the satisfaction of the court.

“Know all men by these presents, That whereas, a decree was rendered in the court of the county on the day of , 19 , condemning to be sold for the nonpayment of assessment for local improvement, certain lots (or blocks, as the case may be), which are described as follows: , lying in the city of , and whereas, they were duly sold by a commissioner appointed by said court for that purpose in said cause in which the board of improvement No. , for the purpose of , was plaintiff and was defendant, and were bought by for the following sums respectively, which sums were by him duly paid; and whereas, the time allowed for the redemption of said lands has expired, and I, , as commissioner, appointed by said court in said cause, am directed by said court to execute a deed, conveying said lands to him; therefore, in consideration of the premises, I, the said , do hereby grant and convey unto the said , the lands above described. Witness my hand this day of , 19 ”

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History. Acts 1881, No. 84, §§ 22, 23, p. 161; C. & M. Dig., §§ 5692-5695; Pope's Dig., § 7334; Acts 1949, No. 195, § 22; A.S.A. 1947, §§ 20-450, 20-451.

Publisher's Notes. This section applies to all municipal improvement districts whether created before or after its enactment. See §§ 14-90-102, 14-90-103.

Meaning of “this act”. Acts 1881, No. 84, codified as §§ 14-88-101, 14-88-202, 14-88-204, 14-88-302, 14-88-303, 14-88-30514-88-308, 14-88-311, 14-88-403, 14-88-502, 14-89-201, 14-89-1001, 14-89-1002, 14-90-101, 14-90-201, 14-90-302, 14-90-403, 14-90-701, 14-90-80114-90-805, 14-90-902, 14-90-903, 14-90-916, 14-90-100114-90-1003, 14-90-1005, 14-90-1006, 14-90-110114-90-1106, 14-90-1108, 14-90-120114-90-1204, 14-90-1302, 14-90-1303, 14-91-101, 14-91-10414-91-107, 14-91-201, and 14-235-30114-235-305.

Acts 1949, No. 195, codified as §§ 14-88-401, 14-88-404, 14-90-102, 14-90-801, 14-90-802, 14-90-90114-90-915, 14-90-1002, 14-90-1107, 14-90-1301, 14-90-1303, 14-90-1405, and 14-90-1406.

Cross References. Collection of delinquent improvement district taxes or assessments transferred to county tax collector, § 14-86-1001.

Case Notes

Irregularities.

When a decree condemning land to be sold for delinquent assessments failed to recite that 10 days be allowed before the sale shall be made, the irregularity was cured when the commissioner waited 10 days before advertising the land for sale under the decree. Beasley v. Bratcher, 114 Ark. 512, 170 S.W. 249 (1914).

After the confirmation of a sale has been made by order of the court, all defects and irregularities in the conduct of the sale are cured and every presumption will be indulged in favor of its fairness and regularity. Cassady v. Norris, 118 Ark. 449, 177 S.W. 10 (1915).

Subchapter 14 — Supplementary Foreclosure Proceedings

Effective Dates. Acts 1937, No. 207, § 10: approved Mar. 8, 1937. Emergency clause provided: “Whereas, the present method of foreclosing liens for past due assessments in municipal improvement districts is unduly costly and expensive to the property owners and to the Districts, an emergency is hereby declared, and this act is necessary for the preservation of the public peace, health and safety; an emergency is hereby declared to exist and this act shall take effect and be in full force from and after its passage.”

Acts 1939, No. 130, § 2: approved Feb. 24, 1939. Emergency clause provided: “It appearing that numerous suits ought to be brought to foreclose the tax lien of improvement districts, and the expense of bringing them, on account of the requirement of publication for four weeks, has been expensive, and for this reason there is a disturbed condition which should be immediately remedied, and this act being necessary for the immediate preservation of public peace, health and safety, an emergency is hereby declared and this act shall be in full force and effect from and after its passage.”

Research References

Ark. L. Rev.

A Commentary on State and Improvement District Tax Sales, 8 Ark. L. Rev. 386.

14-90-1401. Purpose.

This subchapter is intended to supplement existing laws relative to foreclosure of assessment liens in municipal improvement districts.

History. Acts 1937, No. 207, § 8; Pope's Dig., § 7320; A.S.A. 1947, § 20-447.

14-90-1402. Construction.

This subchapter is to be cumulative and shall repeal only those statutes in direct conflict with it.

History. Acts 1937, No. 207, § 9; Pope's Dig., § 7321; A.S.A. 1947, § 20-448.

14-90-1403. List of delinquent property.

If any assessment, or annual installment thereof, levied by a municipal improvement district shall not be paid within the time provided by the city ordinance approving the assessment, the county tax collector shall add thereto a penalty of ten percent (10%) and shall at once return a list of all the property within the district on which the assessment or installment has not been paid to the board of improvement as delinquent.

History. Acts 1937, No. 207, § 1; Pope's Dig., § 7311; A.S.A. 1947, § 20-421.

Cross References. Filing of delinquent lists in counties having in excess of 75,000 inhabitants, § 14-86-1206.

Remission of delinquent penalties in excess of 10 percent, § 14-86-1002.

Case Notes

Interest and Attorneys' Fees.

Where assessments for municipal improvement district remained delinquent at the time of foreclosure, chancery court could properly adjudge interest and attorney's fee. City of Eureka Springs v. Banks, 206 Ark. 289, 174 S.W.2d 947 (1943).

Penalty.

The chancery court has no discretion as to the penalty prescribed in this section. Board of Comm'rs v. Delinquent Lands, 195 Ark. 681, 113 S.W.2d 730 (1938).

Cited: Schuman v. Cherry, 215 Ark. 342, 220 S.W.2d 817 (1949).

14-90-1404. Permanent record of delinquencies.

    1. When the suit with the delinquent list is filed with the county tax collector under this subchapter, the delinquent list of property shall be copied into a permanent record of delinquent lands.
    2. The collector shall receive, as part of his costs, the sum of ten cents (10¢) for each separate line of description of property. This amount shall be paid by the plaintiff when the suit is filed and shall be taxed and collected as part of the cost and refunded to the plaintiff.
    1. On the record of delinquent lands, the collector shall note all redemptions made prior to the date of sale.
    2. The collector shall also note on the record the redemption of lands after the sale, first recording after the description of each piece of property to whom it was sold or if sold to the plaintiff.

History. Acts 1937, No. 207, § 7; Pope's Dig., § 7319; A.S.A. 1947, § 20-442.

Case Notes

Failure to File.

Failure of clerk to file and record delinquent list is not jurisdictional; hence such failure by the clerk did not make the sale under foreclosure action by drainage district void. Rouse v. Teeter, 214 Ark. 488, 216 S.W.2d 869 (1948).

14-90-1405. Jurisdiction of court.

  1. Under this subchapter, the chancery court shall have the jurisdiction of suits brought to collect delinquent installments.
    1. The court shall enter a decree against the lots, blocks, or parcels of land for the amount of the delinquent installments, together with penalty, attorney's fee, and costs.
    2. The decree shall provide for the sale of the delinquent lands by a commissioner, for cash, after advertisement, as specified in § 14-90-1408.

History. Acts 1937, No. 207, § 2; Pope's Dig., § 7312; Acts 1949, No. 195, § 18; A.S.A. 1947, § 20-441.

Publisher's Notes. This section applies to all municipal improvement districts whether created before or after its enactment. See §§ 14-90-102, 14-90-103.

Case Notes

Constitutionality.

This section is not violative of the due process clause, U. S. Ark. Const. Amend. 14, because it provides for constructive service. Stith v. Pinkert, 217 Ark. 871, 234 S.W.2d 45 (1950), appeal dismissed, 341 U.S. 901, 71 S. Ct. 613 (1951).

Purpose.

The purpose of this section is to aid the improvement district in collecting its delinquent taxes, and the express power conferred on the district to acquire property by foreclosure of its tax lien necessarily implies the power to accomplish the same result by a conveyance from the property owner, free of other liens. Dewoody v. Jones, 202 Ark. 345, 150 S.W.2d 208 (1941).

Applicability.

This section is not retroactive and was held not applicable to proceeding pending at the time it was enacted. Cutsinger v. Strang, 203 Ark. 699, 158 S.W.2d 669 (1942).

This section was held applicable to pending litigation on its effective date in that it only applies to or affects remedies in procedure. Stith v. Pinkert, 217 Ark. 871, 234 S.W.2d 45 (1950), appeal dismissed, 341 U.S. 901, 71 S. Ct. 613 (1951).

Entry of Decree.

This section does not make judgment mandatory except as to delinquent assessments and penalties at the time the matter is addressed to the court for decree. Board of Comm'rs v. Delinquent Lands, 195 Ark. 681, 113 S.W.2d 730 (1938).

—Delinquent Assessments.

The board of commissioners of a municipal improvement district is the proper party to bring suit against property owner for delinquent assessment against property. Beloate v. Street Imp. Dist., 203 Ark. 899, 159 S.W.2d 451 (1942).

—Penalty, Attorney's Fee, and Costs.

Chancellor has no discretion as to penalty provided by § 14-90-1403. Board of Comm'rs v. Delinquent Lands, 195 Ark. 681, 113 S.W.2d 730 (1938).

A requisite to a valid collection of attorney fees is that an order be issued, directing that such charge be extended against the particular tract of land included in the notice, and before a taxpayer can be required to pay such fee, there must be judgment to that effect, or payment may be ordered generally from penalties if the improvement district has contracted to that effect. Board of Comm'rs v. Delinquent Lands, 195 Ark. 681, 113 S.W.2d 730 (1938).

Where taxpayers paid amounts with which they stood charged, a finding that no attorney fees were chargeable to property owners until judgment was rendered and fees collected prior thereto should be refunded was held proper. Board of Comm'rs v. Delinquent Lands, 195 Ark. 681, 113 S.W.2d 730 (1938).

Statute of Limitations.

There is no statute of limitations on suits to collect assessments, except § 14-86-1208. Martin v. Board of Comm'rs, 190 Ark. 747, 81 S.W.2d 414 (1935).

14-90-1406. Proceedings in rem.

  1. Under this subchapter, proceedings shall in nature be in rem, and insofar as the rights of the purchaser are concerned, it shall be immaterial that the ownership of the lots, blocks, or parcels of land is incorrectly alleged in the proceedings.
  2. The decree shall be enforceable only against the delinquent property and not against any other property or estate of the defendants or the true owners of the delinquent property.
  3. In listing the lots, blocks, and parcels of land, they may be combined where they are constituent parts of a single improvement.

History. Acts 1937, No. 207, § 2; Pope's Dig., § 7312; Acts 1949, No. 195, § 18; A.S.A. 1947, § 20-441.

Publisher's Notes. This section applies to all municipal improvement districts whether created before or after its enactment. See §§ 14-90-102 and 14-90-103.

Cross References. Lien of district may be enforced notwithstanding tax sale to state, § 14-86-1601 et seq.

Case Notes

Constitutionality.

This section is not violative of the due process clause, U. S. Const., Amend. 14, because it makes foreclosure proceedings an action in rem against the lands and provides that an incorrect allegation of ownership should be immaterial. Stith v. Pinkert, 217 Ark. 871, 234 S.W.2d 45 (1950), appeal dismissed, 341 U.S. 901, 71 S. Ct. 613 (1951).

Purpose.

The purpose of this section is to aid the improvement district in collecting its delinquent taxes, and the express power conferred on the district to acquire property by foreclosure of its tax lien necessarily implies the power to accomplish the same result by a conveyance from the property owner, free of other liens. Dewoody v. Jones, 202 Ark. 345, 150 S.W.2d 208 (1941).

Applicability.

This section is not retroactive and was held not applicable to proceeding pending at the time it was enacted. Cutsinger v. Strang, 203 Ark. 699, 158 S.W.2d 669 (1942).

This section was held applicable to pending litigation on its effective date in that it only applies to or affects remedies in procedure. Stith v. Pinkert, 217 Ark. 871, 234 S.W.2d 45 (1950), appeal dismissed, 341 U.S. 901, 71 S. Ct. 613 (1951).

Allegations of Ownership.

In action for foreclosure of delinquent assessments on lands within improvement district, clerical error in owner's name does not render the decree void, the action under this section being in the nature of proceedings in rem and any foreclosure judgment therein to be enforced wholly against the assessed property. Stith v. Pinkert, 217 Ark. 871, 234 S.W.2d 45 (1950), appeal dismissed, 341 U.S. 901, 71 S. Ct. 613 (1951).

Delinquent Property.

Where improvement district acquired title by voluntary conveyance from owner in satisfaction of delinquent taxes, inclusion of certain property outside the district so as to include the whole of a little house, being merely incidental to the main purpose, was held not to invalidate the conveyance on ground that district had no power to acquire land beyond its boundaries. Dewoody v. Jones, 202 Ark. 345, 150 S.W.2d 208 (1941).

14-90-1407. Property included in suit.

In proceedings under this subchapter, all of the delinquent property in a municipal improvement district may and should be included in one (1) suit, and the suit may cover more than one (1) past due installment.

History. Acts 1937, No. 207, § 3; Pope's Dig., § 7315; Acts 1939, No. 130, § 1; A.S.A. 1947, § 20-443.

14-90-1408. Publication of notice.

    1. The warning order or notice of the pendency of a suit under this subchapter shall be given by publication weekly for two (2) weeks before judgment is entered for the sale of the lands, lots, blocks, or parcels of land, or railroad tracks and rights-of-way in some newspaper published in the county where the suits may be pending.
    2. The warning order or notice may be in the following terms:
  1. The service by notice as provided in this section shall be just as effective and binding on the property as though service was had under § 14-90-1003.

“Board of Commissioners, (and name of improvement district), Plaintiff, vs. Delinquent Lands, Lots, Blocks or Parcels of Land, and railroad tracks and right-of-way, in said district , Defendants. “All persons, firms, or corporations having or claiming an interest in any of the following described lands, lots, blocks, or parcels of land, or railroad tracks and rights-of-way, are hereby notified and warned that suit is pending in the Chancery Court of County, Arkansas, to enforce the collection of certain taxes or assessments on the subjoined list of lands, each supposed owner having been set opposite his or her or its lands, together with the amounts severally due from each, to-wit: “(Then shall follow a list of supposed owners, with a description of each separate property that is delinquent, and amount due thereon respectively as aforesaid), and said warning order or notice may conclude in the following form: “All persons, firms and corporations interested in any of said property are hereby warned and notified that they are required by law to appear within four weeks and make defense to said suit, or the same will be taken for confessed and final judgment will be entered directing the sale of said lands for the purpose of collecting said taxes or assessments, together with the payment of interest, penalty, attorney's fee, and costs adjudged against each tract. Clerk of said Court.”

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History. Acts 1937, No. 207, §§ 3, 8; Pope's Dig., §§ 7315, 7320; Acts 1939, No. 130, § 1; A.S.A. 1947, §§ 20-443, 20-447.

Case Notes

Constitutionality.

Where notices were given the landowner, whose property was being sold to satisfy a lien created by his failure to pay an improvement district assessment, by publication and by mail as required by this section and § 14-86-1403, respectively, the notice given the landowner comported with due process. Fulmer v. Board of Comm'rs, 286 Ark. 419, 692 S.W.2d 246 (1985).

Rules of Procedure.

The notice provisions of ARCP 4 do not apply in an action by the board of commissioners to sell a landowner's property to satisfy a lien created by his failure to pay an improvement district assessment. Fulmer v. Board of Comm'rs, 286 Ark. 419, 692 S.W.2d 246 (1985).

14-90-1409. Trial, decree, and sale generally.

    1. Under this subchapter, a suit shall stand for trial at the first term of court, or adjourned day of court, after the complaint is filed, if the four (4) weeks shall expire either before the first day of the term or during the term of court to which the suits are brought, respectively, unless a continuance is granted for good cause shown, within the discretion of the court.
    2. A continuance for good cause shown may be granted as to a part of the lands or defendants without affecting the duty of the court to dispose finally of the others as to whom no continuance may be granted.
    1. In all cases where notice has been properly given as prescribed in § 14-90-1408 and where no answer has been filed, or, if filed, and the cause decided for the plaintiff, the court, by its decree, shall grant the relief as requested in the complaint and shall direct the commissioner to sell the lands, lots, blocks, or parcels of land, or railroad tracks and rights-of-way described in the complaint at the courthouse door of the county where the decree is entered, at public outcry, to the highest and best bidder, for cash in hand, after having first advertised the sale. This advertisement may include all the different properties described in the decree. It shall be published weekly for two (2) weeks, consecutively, in some newspaper published in the county, or, if there is no such newspaper, the advertisement may be published in some newspaper published in an adjoining county.
    2. If all the lands, lots, blocks, or parcels of land, or railroad tracks and rights-of-way are not sold on the day as advertised, the sale shall continue, from day to day, until completed.
  1. The commissioner shall, by proper deed, convey to the purchaser the lands, lots, blocks, or parcels of land, and railroad tracks and rights-of-way so sold, and the title to the property shall thereupon become vested in the purchaser as against all others whomsoever, saving to infants and to insane persons having no guardian or curators the right they now have by law to appear and contest the proceedings within three (3) years after their disabilities are removed.

History. Acts 1937, No. 207, § 4; Pope's Dig., § 7316; A.S.A. 1947, § 20-444.

Cross References. Collection of delinquent improvement district taxes or assessments transferred to county tax collector, § 14-86-1001.

Purchaser entitled to possession during redemption period, § 14-86-1501.

Case Notes

Sale of Property.

Where improvement district sold property acquired at foreclosure sale at an inadequate price, such sale was not void on the ground of inadequacy, in action brought by original purchaser over five years after foreclosure sale, as time for redemption had expired, and amount of purchase price was no concern of original owner. Schuman v. Cherry, 215 Ark. 342, 220 S.W.2d 817 (1949).

—Notice.

Where landowner's name is omitted from published notice of sale of lands in foreclosure of improvement district assessments, the defect is immaterial under this section. Stith v. Pinkert, 217 Ark. 871, 234 S.W.2d 45 (1950), appeal dismissed, 341 U.S. 901, 71 S. Ct. 613 (1951).

—Redemption.

Until the issuance of the deed provided by this section, the purchaser is not vested with legal title and the chancery court can grant additional redemption time to the holder of the legal title. Dickie v. Sewer Improvement Dist., 328 F.2d 296 (8th Cir. 1964), cert. denied, Dickie v. Sewer Improv. Dist. No. 1, 379 U.S. 821, 85 S. Ct. 42 (1964).

14-90-1410. Sale to plaintiff.

At a sale under the provisions of this subchapter, if there be no purchaser offering as much as the total tax or assessment, plus penalty, interest, and all costs and attorney fees allowed, the property shall be sold to the plaintiff.

History. Acts 1937, No. 207, § 5; Pope's Dig., § 7317; A.S.A. 1947, § 20-445.

Case Notes

Improvement Districts.

The authority of an improvement district to purchase real estate under a decree of the chancery court for the collection of delinquent assessments is conferred by this section. Dewoody v. Jones, 202 Ark. 345, 150 S.W.2d 208 (1941).

Improvement district acquiring title by voluntary conveyance from owner in satisfaction of delinquent taxes was held not engaged in real estate business, sole object being to collect its taxes by resale of the property. Dewoody v. Jones, 202 Ark. 345, 150 S.W.2d 208 (1941).

Purchase Price.

Sale of vacant lots on foreclosure sale to improvement district for amount of delinquent taxes and penalties is not void on the ground of inadequacy of sales price. Schuman v. Cherry, 215 Ark. 342, 220 S.W.2d 817 (1949).

14-90-1411. Redemption of property.

Any person, firm, or corporation having an interest in any property sold under the provisions of this subchapter may redeem it as required by law. However, the chancery clerk, in writing up the certificate of redemption, shall not charge and receive more than fifty cents (50¢) for one (1) separate call of property as listed and sold, and the sum of twenty-five cents (25¢) for each additional call or description of property which the person, firm, or corporation so redeeming may require to be redeemed and placed on the certificate.

History. Acts 1937, No. 207, § 6; Pope's Dig., § 7318; A.S.A. 1947, § 20-446.

Publisher's Notes. The collection of delinquent improvement district taxes or assessments has been transferred to the county tax collector by § 14-86-1001.

Cross References. Duty of chancery clerk, § 14-86-1207.

Case Notes

Period of Redemption.

Period of redemption from foreclosure sale by municipal improvement district is five years. Schuman v. Cherry, 215 Ark. 342, 220 S.W.2d 817 (1949).

Chapter 91 Construction, Operation, Repair, and Sale of Municipal Improvements

Subchapter 1 — General Provisions

Effective Dates. Acts 1913, No. 125, § 9: approved Mar. 3, 1913. Emergency declared.

Acts 1929, No. 64, § 23: approved Feb. 28, 1929. Emergency clause provided: “It is ascertained and hereby declared that by reason of the inability under the present laws to extend water mains and repair water plants there is great danger of conflagration, that by reason of the inability to extend electric light plants there is great danger to the public peace and safety, owing to the darkness of the streets, and that by reason of the inability to extend and repair sewers there is great danger to the public health, and that for these reasons it is immediately necessary that this act should go into operation, and it is therefore declared that an emergency exists, and this act shall be in force and effect from and after its passage.”

Research References

ALR.

Damages resulting from temporary conditions incident to public improvements or repairs as compensable taking. 23 A.L.R.4th 674.

Validity, construction, and effect of requirement under state statute or local ordinance giving local or locally qualified contractors a percentage preference in determining lowest bid. 89 A.L.R.4th 587.

What entities or projects are “public” for purposes of state statutes requiring payment of prevailing wages on public works projects. 5 A.L.R.5th 470.

14-91-101. Plans and costs for improvements generally.

    1. Immediately after their qualification, a municipal board of improvement shall form plans for the improvement as requested in the petition and shall procure estimates of the cost thereof. All improvements shall be made with reference to the grades of streets and alleys as fixed, or may be fixed by the ordinances of the city or town.
    2. For this purpose, the board may employ such engineers and other agents as may be needful and may provide for their compensation which, with all other necessary expenditures, shall be taken as a part of the cost of the improvement.
  1. If for any cause the improvement shall not be made, the cost shall be a charge upon the real property in the district and shall be raised and paid by an ad valorem tax upon the real property in the district as assessed for the state and county purposes. This tax shall be levied by the city or town council, on the application of any person interested, and shall be paid to the board, to be distributed among the creditors of the district.
  2. When any improvement is abandoned, it is made the duty of the board to report to the city or town council the total amount of the debts which it has incurred, to the end that the city or town council may make adequate provision for their payment.

History. Acts 1881, No. 84, § 4, p. 161; C. & M. Dig., § 5656; Acts 1929, No. 64, § 6; Pope's Dig., § 7290; A.S.A. 1947, § 20-301.

Case Notes

Abandonment.

Where two petitions for the same improvement were filed but no action was taken on them, they must be treated as abandoned. McDonnell v. Improvement Dist., 97 Ark. 334, 133 S.W. 1126 (1911)Questioned byTappan v. Helena Fed. Sav. & Loan Ass'n, 193 Ark. 1023, 104 S.W.2d 458 (1937). But see Lenon v. Tunnah, 174 Ark. 765, 297 S.W. 819 (1927).

Attorney representation.

Boards of improvement have power under subdivision (a)(2) to employ attorneys to represent the districts. Bourland v. Coleman, 187 Ark. 392, 60 S.W.2d 1021 (1933).

Filing requirement.

Where the board of improvement formed plans and procured an estimate of costs and reported to the city council that it had done so, but did not file the plans or estimates with that body, the council was authorized to appoint the assessors. Ingram v. Thames, 150 Ark. 443, 234 S.W. 629 (1921).

Formulation of Plans and Cost Estimates.

The board of improvement can fix the method and extent of the improvement, but not determine what streets should be paved. Boles v. Kelley, 90 Ark. 29, 117 S.W. 1073 (1909); McDonnell v. Improvement Dist., 97 Ark. 334, 133 S.W. 1126 (1911)Questioned byTappan v. Helena Fed. Sav. & Loan Ass'n, 193 Ark. 1023, 104 S.W.2d 458 (1937); Ruddell v. Monday, 179 Ark. 920, 18 S.W.2d 910 (1929).

The nature of the improvement is fixed by the petition and ordinance. Board of Imp. v. Brun, 105 Ark. 65, 150 S.W. 154 (1912).

The board of improvement cannot substitute a different improvement. Meehan v. Maxwell, 115 Ark. 594, 172 S.W. 1013 (1914).

If cost would exceed the limit, the board of improvement may change the plans. Buxton v. City of Nashville, 132 Ark. 511, 201 S.W. 512 (1918).

The board of improvement must make definite plans. Missouri P. R. Co. v. Waterworks Improv. Dist., 134 Ark. 315, 203 S.W. 696 (1918).

Plans for the improvement of certain named streets which provided for a brick, asphalt, or other suitable wearing surface on a concrete base and stated definitely the cost were not indefinite. Conway v. Commissioners of Bd. of Imp. Dist., 165 Ark. 487, 265 S.W. 45 (1924).

By specifying in the petition the kind of materials and manner of paving, the property owners may restrict the powers of the commissioners. Thacker v. Paving Improv. Dist., 182 Ark. 368, 31 S.W.2d 758 (1930).

Grades of Streets and Alleys.

Grades of streets need not be established before improvement district is formed. McDonnell v. Improvement Dist., 97 Ark. 334, 133 S.W. 1126 (1911)Questioned byTappan v. Helena Fed. Sav. & Loan Ass'n, 193 Ark. 1023, 104 S.W.2d 458 (1937); Williams v. Serer Improv. Dist., 180 Ark. 510, 22 S.W.2d 405 (1929).

City is liable for change of grade and not improvement district. Eickhoff v. City of Argenta, 120 Ark. 212, 179 S.W. 367 (1915)Limited byHot Spring County v. Bowman, 229 Ark. 790, 318 S.W.2d 603 (1958).

It is not necessary that the city council pass an ordinance fixing the grades of street before formation of a street improvement district; rather grades may be established at any time prior to the making of the improvements. Street Imp. Dist. v. Cooper, 215 Ark. 760, 223 S.W.2d 607 (1949).

Where evidence failed to show any passing of an ordinance fixing the grades of streets, the chancellor was justified in restraining district commissioners from proceeding with surfacing of the streets until such ordinance was passed. Street Imp. Dist. v. Cooper, 215 Ark. 760, 223 S.W.2d 607 (1949).

Improvements Not Made.

Municipal council cannot abolish improvement district on the ground that proposed improvement is impracticable or on petition of large majority of property owners, but only where the cost will exceed the limit fixed by law or the petition. Board of Imp. v. Earl, 71 Ark. 4, 71 S.W. 666 (1903).

14-91-102. Approval of State Health Officer.

  1. In municipal waterworks and sewer improvement districts, the commissioners shall confer with the State Health Officer in forming their plans and specifications and shall not adopt any plans and specifications until they have been approved by the officer in writing.
  2. A certificate of his approval shall be filed with the city clerk or town recorder.

History. Acts 1929, No. 64, § 7; Pope's Dig., § 7291; A.S.A. 1947, § 20-302.

Research References

Ark. L. Rev.

Constitutional Law — Fluoridation of City Water, 10 Ark. L. Rev. 496.

14-91-103. Notice before paving streets.

    1. Before any street is paved, the commissioners on the board of improvement for a municipal improvement district may give notice to waterworks companies, gas companies, and other public service corporations of their intention to pave the street. They shall, in the notice, fix a reasonable time in which the public service corporations shall make excavations, for the purpose of laying down the service pipes and conduits to the property line.
    2. Thereafter, it shall be unlawful for the public service corporations or for any individual to make any excavations in the streets, except upon condition of restoring the streets to their condition as they were before the excavation was made, and paying to the commissioners of the district, or, in case of their discharge, to the city or town, twenty-five dollars ($25.00) for each excavation.
    1. The sum of twenty-five dollars ($25.00) shall be paid before the work of excavation is begun.
    2. If the work of excavation is begun without this payment, the commissioners of the district or, in case of their discharge, the city or town may recover the sum of fifty dollars ($50.00) from the party undertaking the excavations, together with all costs and a reasonable attorney's fee, to be taxed by the court.

History. Acts 1913, No. 125, § 8; C. & M. Dig., § 5736; Pope's Dig., § 7380; A.S.A. 1947, § 20-310.

Case Notes

Construction.

This section is penal and must be strictly construed. River Valley Gas Co. v. Improvement Dist., 187 Ark. 990, 63 S.W.2d 539 (1933).

Applicability.

This section is limited to such companies as were in existence when the pavements were constructed and received notice of the construction. River Valley Gas Co. v. Improvement Dist., 187 Ark. 990, 63 S.W.2d 539 (1933).

14-91-104. Eminent domain proceedings.

    1. A municipal board of improvement shall have power to enter upon any private property for the construction of any designed improvement.
    2. Any damages that may be sustained thereby shall be paid out of the improvement fund.
    1. If the person damaged and the board cannot agree on the sum to be paid for the damages, the person aggrieved may file his petition in the circuit court of the county, setting forth his grievance, and asking compensation therefor, making the board a party defendant.
    2. The issues in the suit shall be made up as in other cases at law, and the cause shall be tried by a jury, unless dispensed with by the parties.
    3. The case shall be advanced on the docket so as to have precedence of all other causes.
      1. The judge of the circuit court may hold a special term at any time for the trial of any such cause, giving ten (10) days' notice to the parties of the time of holding that special term, which may be in writing.
      2. The notice shall be served on the parties as a writ of summons is directed to be served unless it is waived by the parties or one of them.
      1. The judge of the court may, in vacation, in case an agreement cannot be arrived at between the board and the owner of the property in relation to the damages claimed, fix an amount to be deposited with some person, to be designated by the court, before the entering upon and taking possession of the property to be used and taken as prescribed.
      2. Upon the amount required being deposited and a certificate thereof filed in the cause, the work may proceed.

History. Acts 1881, No. 84, § 21, p. 161; C. & M. Dig., §§ 4022-4026; Pope's Dig., §§ 5024-5028; A.S.A. 1947, § 20-309.

Cross References. Eminent domain generally, § 18-15-101 et seq.

Case Notes

Title to Property.

Title to property condemned will not pass until the money has been deposited in court for the payment of the owner's damages. Cannon v. Felsenthal, 180 Ark. 1075, 24 S.W.2d 856 (1930).

14-91-105. Injunctions.

No injunction shall issue to restrain the prosecution of any work contemplated by this act. Rather, any person injured shall seek his relief by proceedings at law, within the time provided, or he shall be deemed to have waived it. However, an injunction may issue where an illegal assessment shall be sought, under the color of this act, to be enforced.

History. Acts 1881, No. 84, § 20, p. 161; C. & M. Dig., § 5740; Pope's Dig., § 7381; A.S.A. 1947, § 20-314.

Meaning of “this act”. Acts 1881, No. 84, codified as §§ 14-88-101, 14-88-202, 14-88-204, 14-88-302, 14-88-303, 14-88-30514-88-308, 14-88-311, 14-88-403, 14-88-502, 14-89-201, 14-89-1001, 14-89-1002, 14-90-101, 14-90-201, 14-90-302, 14-90-403, 14-90-701, 14-90-80114-90-805, 14-90-902, 14-90-903, 14-90-916, 14-90-100114-90-1003, 14-90-1005, 14-90-1006, 14-90-110114-90-1106, 14-90-1108, 14-90-120114-90-1204, 14-90-1302, 14-90-1303, 14-91-101, 14-91-10414-91-107, 14-91-201, and 14-235-30114-235-305.

Case Notes

Cited: Ryall v. Waterworks Improve. Dist., 247 Ark. 739, 447 S.W.2d 341 (1969).

14-91-106. Suits on bonds.

Suit may be brought by and in the name of a municipal board of improvement upon any bond given to the board, but the sum recovered shall be for the use of the fund of the improvement district for which the bond was given.

History. Acts 1881, No. 84, § 14, p. 161; C. & M. Dig., § 5738; Pope's Dig., § 7365; A.S.A. 1947, § 20-312.

14-91-107. Exemption from liability.

No member of any municipal board of improvement shall be liable for any damages sustained by anyone in the prosecution of the work under his charge, unless it shall be made to appear that the member has acted with a corrupt or malicious intent.

History. Acts 1881, No. 84, § 19, p. 161; C. & M. Dig., § 5734; Pope's Dig., § 7362; A.S.A. 1947, § 20-313.

Case Notes

Negligent Injuries.

Commissioners of an improvement district charged with the performance of a public undertaking are not liable for a negligent injury to an employee of the district in the absence of a corrupt or malicious intent. Board of Improv. v. Moreland, 94 Ark. 380, 127 S.W. 469 (1910).

Cited: Ryall v. Waterworks Improve. Dist., 247 Ark. 739, 447 S.W.2d 341 (1969).

Subchapter 2 — Construction of Improvements Generally

14-91-201. Powers of improvement boards.

  1. Municipal boards of improvement shall have control of the construction of the improvements in their improvement districts.
  2. The boards may advertise for proposals for doing any work by contract and may accept or reject any proposals.
  3. All contractors shall be required to give bond for the faithful performance of such contracts as may be awarded them, with good and sufficient securities, in double the amount of the contract work, and the board shall not remit or excuse the penalty or forfeiture of the bond for the breaches thereof.
  4. The boards may appoint all necessary agents for carrying on the work and may fix their pay.
  5. The boards may buy all necessary material and may sell any such materials or implements as may be on hand, and which may not be necessary for the completion of the improvement under way, or which may have been completed.
  6. The boards may, in general, make all contracts in the prosecution of the work as may best subserve the public interest.

History. Acts 1881, No. 84, § 17, p. 161; C. & M. Dig., §§ 5710, 5737; Pope's Dig., §§ 7349, 7364; A.S.A. 1947, § 20-311.

Case Notes

Contractual Obligations.

The board of commissioners of an improvement district could not, by its conduct, excuse any failure on the part of the contractor to perform his work according to the contract after the work had been done. This section would not prevent the board, during the progress of the work, from making changes therein by agreement with the contractor, and if the board, during the time the work was progressing, acquiesced in or consented to certain changes, the district would be precluded by such actions on the part of the board from recovering against the contractor for damages based upon these changes as alleged breaches of the contract. Board of Imp. Comm'rs v. Galbraith, 133 Ark. 302, 185 S.W. 474 (1916).

An improvement district was not estopped to maintain a suit for money paid to the contractor under a contract for the construction of a sewer system where it took possession of the system and endeavored to complete it after the contractor quit, as the district could not excuse a failure of performance. United States Fid. & Guar. Co. v. Board of Comm'rs, 137 Ark. 375, 209 S.W. 88 (1919).

Subchapter 3 — Construction in Levee or Flood Control Districts

Effective Dates. Acts 1947, No. 23, § 6: Feb. 4, 1947. Emergency clause provided: “That it is found and determined as a fact that the provisions contained in this act are immediately necessary in order that municipal levee and flood control improvement districts in Arkansas may avail themselves to the fullest extent of the flood control program of the United States of America, and that this act is immediately necessary to permit such municipal improvement districts in Arkansas to avoid the disastrous effect of floods which are a menace to the public health and safety, an emergency is hereby declared to exist and this act shall be in full force and effect from and after the date of its passage and approval.”

14-91-301. Applicability.

This subchapter shall apply to any municipal levee or flood control district organized and existing under the laws of the State of Arkansas relative to the formation of improvement districts in cities and towns but shall not apply to any rural improvement district.

History. Acts 1947, No. 23, § 5; A.S.A. 1947, § 20-337.

14-91-302. Definition.

As used in this subchapter, unless the context otherwise requires, “levees and flood control projects” mean all sumps, drainage structures, and other works reasonably necessary or desirable for the construction, operation, and maintenance of a levee or flood control project.

History. Acts 1947, No. 23, § 1; A.S.A. 1947, § 20-334.

14-91-303. Authority generally.

  1. Any municipal levee or flood control improvement district organized and existing in accordance with the laws of the State of Arkansas relative to the formation of improvement districts in cities or towns may construct and maintain, or cause to be constructed and maintained, levees and flood control projects under, over, across, and along the waters and lands belonging to this state and along and over the public streets and highways of the municipality in which the district is located.
    1. The district may also construct and maintain levees and flood control projects upon, along, and across any railroad right-of-way, on and over any lands belonging to the municipality in which the district is located, and on and over any lands belonging to the county in which the district is located, and on and over the lands belonging to corporations and individuals.
    2. The ordinary use of the railroads shall not be obstructed and just damages shall be paid to the owners of any land structure and railroad right-of-way taken by eminent domain.

History. Acts 1947, No. 23, § 1; A.S.A. 1947, § 20-334.

14-91-304. Agreements with federal government.

  1. A municipal levee or flood control improvement district may enter into contracts with the federal government, or any of its agencies, for the construction of levee or flood control projects and may give such assurances to the federal government, or any of its agencies, as may be required by or under any act of Congress, subject only to such limitations as may be imposed on the district by the Constitution of the State of Arkansas or the acts of the General Assembly under which the district is organized.
  2. The district may authorize the federal government, and its officers, agents, and contractors, to construct levee and flood control projects and to enter upon lands or rights-of-way acquired or occupied by the district pursuant to the terms of this subchapter.

History. Acts 1947, No. 23, § 1; A.S.A. 1947, § 20-334.

14-91-305. Assistance by municipality.

  1. The municipality in which a municipal levee or flood control district is located may enter into contracts with, and give assurances to, the federal government, or any of its agencies, that the municipality, on completion of the project, will operate and maintain it.
  2. The municipality may, from its own funds, assist the district and it may also donate to the district, by proper conveyance, any land belonging to the municipality reasonably necessary or desirable for the construction, maintenance, and operation of the project.

History. Acts 1947, No. 23, § 1; A.S.A. 1947, § 20-334.

14-91-306. Authorization to use county land.

The county court in which a municipal levee or flood control district is located may, by its order, authorize the district, without the payment of compensation or damages, to enter upon and use any land belonging to the county which is reasonably required or desirable for the construction, operation, and maintenance of the project upon a finding by the court that the interests of the public and the county will be benefited thereby.

History. Acts 1947, No. 23, § 1; A.S.A. 1947, § 20-334.

14-91-307. Right to acquire lands.

A municipal levee or flood control improvement district may acquire and occupy all lands and rights-of-way reasonably necessary or desirable for the construction, operation, and maintenance of levees and flood control projects.

History. Acts 1947, No. 23, § 1; A.S.A. 1947, § 20-334.

14-91-308. Failure to obtain rights by agreement.

In the event the district shall fail, upon application to the individuals, corporations, railroads, county, or municipality, to secure the needed right-of-way or lands by consent, contract, or agreement or if the owners of them are unknown, uncertain, nonresidents, or under disability, then the district shall have the right to procure the condemnation of the property, lands, rights, privileges, and easements in the manner prescribed in § 14-91-309.

History. Acts 1947, No. 23, § 2; A.S.A. 1947, § 20-335.

14-91-309. Eminent domain proceedings.

      1. The circuit judge of any county in which it becomes necessary or desirable for a municipal levee or flood control improvement district to condemn rights-of-way, lands, or structures shall, upon the written application of the district, appoint three (3) resident landowners of the municipality in which the district is located, to be known as appraisers, to assess damages for the appropriation of land for the project.
        1. The appraisers shall hold their offices for a term of one (1) year and until their successors are appointed and qualified.
        2. Vacancies occurring in the board of appraisers shall be filled by the circuit judge.
      2. The appointment of appraisers shall be made, in writing, by the circuit judge and filed with the circuit clerk and spread by him upon the records of the circuit court.
    1. The appraisers shall take an oath before the circuit clerk that they will make a just and true award of the compensation of any landowner by reason of rights-of-way, lands, or structures taken for the project by condemnation. The oaths shall be reduced to writing, signed by the assessors and spread by the clerk upon the records of the circuit court.
    2. If any appraiser is interested in any property to be condemned, he shall not act as to the property.
    3. The board of improvement of the district may consult with and use the services of the board of appraisers in seeking to acquire needed lands and rights-of-way by consent and deed.
    4. Reasonable compensation to be fixed by the circuit court shall be allowed the appraisers for their services, and the compensation shall be paid by the district.
      1. Whenever any such district deems it necessary to take or use any rights-of-way, land, or structures for the project, or when the project has already been entered upon by the district, then the district may file a petition with the clerk of the circuit court of the county in which the property is situated. The petition shall describe, as near as may be practical, the property taken, or proposed to be taken, and ask that the property described in the petition be condemned and that the appraisers make an award to the owners of the land or property.
          1. The owners of each tract of land or right-of-way described in the petition shall be made defendants in the petition.
          2. The term owners shall include unknown owners where it is alleged in the petition that the names of the owners are unknown or uncertain.
        1. Persons or corporations holding any lien or lease upon, or claiming any interest in, the land may also be made defendants.
        2. It shall be no objection that several tracts of land or rights-of-way belonging to different owners are included in the same petition.
        1. When the petition is filed, the circuit clerk shall notify the appraisers of the filing, whose duty it shall then be to assemble, at some convenient time, and ascertain the fair market value of the property appropriated or intended to be appropriated and the damages, if any, to the remainder of each tract.
          1. The appraisers shall reduce their findings to writing, giving the amount of award as to each tract, and shall sign it and file the findings with the circuit court.
            1. The clerk shall immediately issue a summons directed to the sheriff of the county, together with a copy of the award attached thereto, commanding him to serve the owners as in ordinary suits at common law.
              1. If the owners are nonresidents of the state, or if it is alleged in the petition that the owners of any tract or persons having an interest in any tract are unknown or uncertain, it shall be the duty of the clerk to publish a warning order in some newspaper published in the municipality in which the district is located once a week for two (2) consecutive weeks.
              2. (i) The warning order may be in the following form:
      1. If no exception is filed by the owners within twenty (20) days after service of summons, or within twenty (20) days after the date of the first publication of the warning order, or by the district within twenty (20) days after the award is filed, then it shall be the duty of the circuit clerk to call the court's attention to the award and to the failure to file exceptions thereto after notice having been given as provided in this section. Upon such information the court shall proceed to enter a judgment in favor of the owners of such lands against the district for the amount awarded by the appraisers and for condemnation upon payment of the amount adjudged to the owners or into the registry of the court for their benefit.
          1. In case exceptions are filed by either party within the time prescribed in this section, it shall be the duty of the clerk to docket the cause.
          2. The petition originally filed by the district and the award of the appraisers shall constitute all necessary pleadings in the proceedings.
        1. In case a trial is demanded or requested by either party, the question shall be tried as other common law cases are tried.
        1. Where the determination of questions in controversy in the proceedings is likely to retard the progress of the construction, then upon the filing of the award by the appraisers, the circuit court, or the judge thereof, in vacation, upon request of the district, shall designate an amount of money to be deposited by the district, subject to the order of the court, and for the purposes of making just compensation when the amount thereof shall have been assessed.
        2. The judge shall designate the place of the deposit.
      1. In designating the amount of money to be deposited, the court or judge shall accept the award of the appraisers as prima facie correct.
      2. Whenever the deposits shall have been made in compliance with the order of the court or judge, it shall be lawful for that district to enter upon the lands in controversy and proceed with their work of construction prior to the final judgment and payment of damages and compensation.
      1. Upon the petition of the district, any landowner, lienholder, or lessee, the circuit court may order the payment of the final judgment to the parties interested therein in accordance with their several interests.
      2. If there is a conflict in interest among those entitled to the judgment or if the owners are unknown or uncertain, the district may be permitted to pay the final judgment into the registry of the court to await its further orders.
    1. Upon the payment of any judgment, either to the owners or into the registry of the court, a final judgment of condemnation shall be entered.

“To (name of supposed owners) and all other persons, having any claim and interest in and to the following described land situated in County, Arkansas, namely: (here describe the land set forth in the petition over which the levee or flood control project passes); you are hereby warned to appear in the Circuit Court within twenty (20) days, and file exceptions to the award which has been filed in my office by the levee and flood control appraisers of district for the appropriation of the hereinbefore described land, for the construction, or intended construction of a levee and flood control project over and across the same.”

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( ii ) The warning order shall be dated and signed by the clerk.

History. Acts 1947, No. 23, § 3; A.S.A. 1947, § 20-336.

Subchapter 4 — Operation of Facilities Generally

Effective Dates. Acts 1893, No. 158, § 3: effective on passage.

Acts 1929, No. 64, § 23: approved Feb. 28, 1929. Emergency clause provided: “It is ascertained and hereby declared that by reason of the inability under the present laws to extend water mains and repair water plants there is great danger of conflagration, that by reason of the inability to extend electric light plants there is great danger to the public peace and safety, owing to the darkness of the streets, and that by reason of the inability to extend and repair sewers there is great danger to the public health, and that for these reasons it is immediately necessary that this act should go into operation, and it is therefore declared that an emergency exists, and this act shall be in force and effect from and after its passage.”

Acts 1949, No. 242, § 3: approved Mar. 7, 1949. Emergency clause provided: “Whereas confusion presently exists as to whether water and electric light districts, having discharged their bonded indebtedness shall turn over merely the physical works of said district to the city, or shall turn over all other assets as well, this Act is deemed to be immediately necessary for the preservation of the public peace, health and safety, and shall be in full force and effect from and after its passage.”

14-91-401. Operation of water and electric light plants in cities of the first class.

  1. The commissioners on boards of improvement for water and electric light improvement districts in cities of the first class shall control and manage the affairs of the district until the bonds issued to pay therefor and all other indebtedness have been retired. At that time, they shall turn over the works to the city council or other governing body of the city, together with any and all cash on hand, bonds, or other securities, resulting from the operation of the water or electric light plant.
    1. As long as the commissioners continue to operate the water and electric light districts, they shall make an annual report to the city or town council showing, in detail, all receipts and disbursements made by them.
        1. As long as they continue such operation, they shall have the right to fix the rates to be paid by consumers of water and electric light or power.
        2. The rates shall be fixed as nearly as possible at amounts which will pay the bonds of the district as they mature, so as to relieve the real property of the district as far as possible from the burden of taxation therefor.
        1. From the rates fixed by the board, any property owner may take an appeal to the circuit court of the county, which shall confirm or set aside the rates as it finds just.
        2. If it sets aside rates fixed by the board, it shall itself fix rates which will be reasonable and adequate for the purposes prescribed.

History. Acts 1929, No. 64, § 18; Pope's Dig., § 7367; Acts 1949, No. 242, § 1; A.S.A. 1947, § 20-315.

A.C.R.C. Notes. In subdivision (b)(2)(A)(ii), the words “as they mature, so as to relieve the real property of the district” were inserted inasmuch as they appeared in this section prior to the 1949 amendment and are necessary in order to preserve the meaning.

Cross References. Operation of electric light and water plants in cities of the second class and incorporated towns, § 14-201-301 et seq.

Case Notes

In General.

Section 14-201-301 et seq. does not affect the operation of this section in cities of the first class. Malvern v. Young, 205 Ark. 886, 171 S.W.2d 470 (1943).

Construction.

If this section does not repeal § 14-91-402, then the two sections provide alternative methods. Malvern v. Young, 205 Ark. 886, 171 S.W.2d 470 (1943).

Rates.

Where waterworks district allowed residents of other districts to receive water at the same rate charged residents of the district following payment of all its bonded indebtedness, city could not, upon assuming operation of the district, charge residents of other districts a surcharge, since such surcharge, absent evidence of change in condition or additional expenditures, would constitute an unreasonable discrimination. Malvern v. Young, 205 Ark. 886, 171 S.W.2d 470 (1943).

Retirement of Indebtedness.

Where commissioners continued to operate water plant until all bonded indebtedness was paid off, after turning waterworks over to the city, they were required to collect all delinquent assessments and distribute the money so received, together with any other money on hand, to the property holders. Malvern v. Young, 205 Ark. 886, 171 S.W.2d 470 (1943).

14-91-402. Operation of waterworks, gas, or electric light works.

  1. In case of the construction of waterworks or gas or electric light works by any municipal improvement district, the city or town council, after the works are constructed, shall have full power and authority to operate and maintain them instead of the improvement district board.
  2. The council may supply water and light to private consumers and make and collect uniform charges for the service and apply the income therefrom to the payment of operating expenses and maintenance of the works.

History. Acts 1893, No. 158, § 2, p. 271; C. & M. Dig., § 5739; Pope's Dig., § 7366; A.S.A. 1947, § 20-316.

Case Notes

Construction.

If this section is not repealed by § 14-91-401, then the two sections provide alternative methods. Malvern v. Young, 205 Ark. 886, 171 S.W.2d 470 (1943).

Legal Actions.

Where an improvement district was sued for coal alleged to have been furnished to it to run a water and electric light plant for the city, it was a good defense that such plant was being operated by the city and that the coal was furnished by the city for its operation. Improvement Dist. of Wynne v. Brown, 86 Ark. 61, 109 S.W. 1010 (1908).

Where the authority of a city to maintain its waterworks plant ceased upon the creation by the legislature of a waterworks district to take over such plant and the acceptance thereof by the city, the city could not claim subsequent damages for breach of a contract to furnish power for such waterworks. City of Paragould v. Arkansas Light & Power Co., 171 Ark. 86, 284 S.W. 529, 46 A.L.R. 1186 (1926).

Power and Authority.

—In General.

A city has express statutory authority under this section to own and operate light and power plants and may delegate this authority to an agency without creating a board of public utilities as provided in § 14-201-301 et seq.Adams v. Bryant, 236 Ark. 859, 370 S.W.2d 432 (1963).

—Maintenance.

This section empowered the city council to contract for an electric pump and for the current to operate it, the original steam pumping plant being retained as an emergency plant. Arkansas Light & Power Co. v. City of Paragould, 146 Ark. 1, 225 S.W. 435 (1920).

This section has been held to authorize a city operating electric light works constructed by an improvement district to construct a new power house on another tract and to install new machinery and equipment. McCutchen v. City of Siloam Springs, 185 Ark. 846, 49 S.W.2d 1037 (1932).

—Operations.

Where a city took over the control of the water supply and system of a water district and later a second district was organized covering other territory in the city not covered by the first district, it was held that the city had authority to permit the second district to connect with the mains of the first district and to sell water to the second district where there was an ample water supply and the city made money by the transaction. Armour v. City of Ft. Smith, 117 Ark. 214, 174 S.W. 234 (1915).

Where city water plant was turned over to a board of managers by ordinance which did not authorize employment of superintendent, contract made by board of managers employing superintendent, not authorized or approved by city, was not binding; payment of superintendent's salary could be enjoined, but the contract being neither illegal nor immoral, superintendent could retain salary already received if not in excess of the actual value of his services. Gladson v. Wilson, 196 Ark. 996, 120 S.W.2d 732 (1938).

Cited: Wilson v. Blanks, 95 Ark. 496, 130 S.W. 517 (1910).

Subchapter 5 — Repairs, Replacements, Improvements, and Extensions of Facilities Generally

Effective Dates. Acts 1929, No. 64, § 23: approved Feb. 28, 1929. Emergency clause provided: “It is ascertained and hereby declared that by reason of the inability under the present laws to extend water mains and repair water plants there is great danger of conflagration, that by reason of the inability to extend electric light plants there is great danger to the public peace and safety, owing to the darkness of the streets, and that by reason of the inability to extend and repair sewers there is great danger to the public health, and that for these reasons it is immediately necessary that this act should go into operation, and it is therefore declared that an emergency exists, and this act shall be in force and effect from and after its passage.”

Acts 1935, No. 145, § 8: approved Mar. 20, 1935. Emergency clause provided: “It is ascertained and hereby declared that by reason of the fact that heretofore it has been necessary to obtain the consent of only a bare majority in value of the owners of real property in order to organize a local improvement district, the organization of such districts all over the State of Arkansas has been in the past greatly abused, advantage has been taken of the owners of property therein and burdensome taxes have been laid upon property owners without any actual increase in property values as compensation therefor, many of such districts having been organized for promotion purposes; that many property owners throughout the State are in danger of losing their said property by reason of their inability to pay the said local improvement taxes; and that unless legislation is immediately enacted making it necessary to obtain the consent of more than a majority in value of said property owners the practice of organizing such districts and the abuse thereof will be continued, all to the serious detriment and injury of owners of property. It is, therefore, found and declared that an emergency exists, and this act shall be in force and effect from and after its passage.”

14-91-501. Authority generally.

    1. It is realized that waterworks and electric light plants and sewers will wear out and must be repaired and replaced, and that with the growth of our cities and towns, improvement and extensions of these plants and sewers are necessary from time to time.
    2. So far as municipal improvement districts, created for the purpose of installing waterworks and electric light plants and sewers, have funds, they may make these repairs, replacements, improvements, and extensions.
    1. If it is necessary to borrow money for the purpose of making repairs, replacements, improvements, or extensions, the board of improvement of the district shall cause plans and estimates of cost thereof to be prepared and shall file them with the city or town clerk or recorder.
      1. If the improvements so to be made will benefit property beyond the limits of the district as then existing, they shall file with their report a map showing the boundaries of the original district and the territory to be annexed thereto.
        1. If within twelve (12) months thereafter, a petition signed by parties claiming to be two-thirds (2/3) in assessed value of the real property in the original territory and in the territory to be annexed, each taken separately, is filed with the city or town clerk or recorder, requesting that the repairs, replacements, improvements, or extensions be made, he shall give notice of a hearing upon the petition to be had at the next regular meeting of the city or town council held at least fifteen (15) days after the publication of a notice.
        2. The notice may be substantially in the following form:

“Notice is hereby given that the Commissioners of Water (or Electric Light or Sewer) Improvement District No. , of the City (or Town) of , have filed their plans for repairs, replacements, improvements, or extensions, in my office, and there has been filed in my office a petition signed by parties claiming to be a two-thirds in value of the owners of real property within said district, as shown by the last county assessment on file (and within the territory proposed to be annexed) praying that the repairs, replacements, improvements, or extensions be made. Said petition will be heard at a meeting of the City (or Town) Council to be held at the hour of p.m., on the day of , 19 , and at said meeting said Council will determine whether those signing the petition constitute the two-thirds in value of such owners of real property; and at said meeting all owners of real property within the district (and within the territory to be annexed) who desire, will be heard upon the question. “The territory to be added to the district is described as follows: The City Clerk (or Town Recorder)”

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History. Acts 1929, No. 64, § 14; 1935, No. 145, § 5; Pope's Dig., § 7368; A.S.A. 1947, § 20-322.

Case Notes

Petition.

A petition of a majority (now two-thirds) in value of the property owners in a waterworks district authorizing the district to borrow money was not required in a purchase of an engine where under the contract of purchase no money was to be borrowed but the engine was to be paid for out of the district's income. Mississippi Valley Power Co. v. Board of Imp., 185 Ark. 76, 46 S.W.2d 32 (1932) (decision prior to 1935 amendment).

14-91-502. Hearing and approval.

    1. At the time named in the notice the city or town council shall meet and hear all persons who wish to be heard upon the question whether two-thirds (2/3) in assessed value of the owners of real property within the original district and two-thirds (2/3) of the owners within the territory to be annexed have signed the petition.
    2. If it finds that two-thirds (2/3) of the property owners in the original district and in the annexation each have so signed, they shall declare the fact by an ordinance.
  1. In the ordinance, they shall annex to the original district the territory described in the petition and notice. They shall authorize the commissioners to proceed with the work of improvement as contemplated in their plans and to borrow the funds necessary for the purpose in the same manner as they were authorized to borrow money for the making of the original improvement.
  2. The finding of the council shall be conclusive unless, within thirty (30) days from publication of the ordinance, suit is brought in the chancery court to set it aside.
    1. The council and chancery court in their finding shall be governed by the record of deeds in the office of the recorder of the county and shall not consider any unrecorded instrument.
    2. They shall also be governed by the value placed upon the property as shown by the last county assessment on file in the county clerk's office.
  3. The ordinance shall be substantially in the following form:

“AN ORDINANCE PROVIDING FOR REPAIRS, REPLACEMENTS, IMPROVEMENTS OR EXTENSIONS OF THE WATERWORKS (OR ELECTRIC LIGHT PLANT OR SEWER) OF DISTRICT NO. OF THE CITY (OR TOWN) OF . “WHEREAS, a petition has been presented to the City (or Town) Council of the City (or Town) of , purporting to be signed by parties constituting two-thirds in assessed value of the real property in the said District No. , and in the territory hereinafter described, sought to be annexed thereto, each taken separately, and praying that the repairs, replacements, and improvements on extensions be made; and “WHEREAS, notice of the filing of said petition has been duly given as required by law, and a hearing has been duly had thereon as the law requires, and at said hearing it was ascertained that a two-thirds in assessed value of the owners of real property within the said district as heretofore established, and a two-thirds in assessed value of the owners of real property in the territory hereby annexed, have signed said petition: “NOW, THEREFORE, BE IT ORDAINED BY THE CITY (OR TOWN) COUNCIL OF THE CITY (OR TOWN) OF “Section 1. The commissioners of said District No. are hereby authorized to make the repairs, replacements, improvements or extensions of the waterworks (or electric light plant or sewers) of said district, shown in their plans on file with the city (or town) Clerk (or Recorder), and to borrow money for that purpose, and may extend the said into the adjacent property hereinafter described. “Section 2. The following described property, to-wit. (Here describe the property) which is adjacent to the said district as heretofore laid out, will be benefited by the proposed repairs, replacements, improvements or extensions of the said and said territory is hereby annexed to the said Improvement District No. , and shall hereafter constitute a part thereof. “Section 3. This ordinance shall take effect and be in force immediately after its passage.”

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History. Acts 1929, No. 64, § 15; 1935, No. 145, § 6; Pope's Dig., § 7369; A.S.A. 1947, § 20-323.

Cross References. Annexation of territory to district, § 14-88-503.

14-91-503. Assessment procedures.

    1. The city or town council shall also appoint a board of three (3) assessors who shall reassess the benefit that will accrue to the owners of the real property within the improvement district from the making of the original improvements and from the proposed repairs, replacements, improvements, or extensions.
    2. The reassessment shall be filed, advertised, equalized, and corrected like the original assessment of benefits and shall become incontestable under the same circumstances as the original assessment of benefits.
  1. The council shall pass an ordinance levying upon the assessment of benefits the tax essential to pay for the work of improvement, including repairs, replacements, improvements, or extensions, substantially in the following form:
  2. The local assessment shall be a charge and a lien against all the real property in the district from the date of the ordinance and shall be entitled to preference over all judgments, executions, encumbrances, or liens whensoever created.
  3. The assessment shall continue until the local assessment, with any penalty and costs that may accrue thereon, shall be paid.
  4. As between grantor and grantee, all payments not due at the date of the transfer of the real property shall be payable by the grantee.

“AN ORDINANCE LEVYING AN ASSESSMENT FOR REPAIRS, REPLACEMENTS, IMPROVEMENTS OR EXTENSIONS IN WATERWORKS (OR ELECTRIC LIGHT OR SEWER) DISTRICT NO. , OF THE CITY (OR TOWN) OF . “WHEREAS, two-thirds in value of the property holders owning property in District No. of the City (or Town) of as now organized have petitioned the Council of the City (or Town) of for repairs, replacements, improvements or extensions, and that the cost thereof shall be assessed upon the real property of the said district according to benefits received; and “WHEREAS, said benefits received by each and every block, lot, and parcel of real property situated in said district equals or exceeds the local assessment thereon; and “WHEREAS, the estimated cost of said improvement is Dollars; “THEREFORE, it is now ordained by the City or Town Council of the City or Town of , that said several blocks, lots, and parcels of real property in said district be assessed according to the assessment list for said improvement district as the same now remains in the office of the Recorder or City Clerk, and that percent on each of said blocks, lots and parcels shall be paid annually on or before the day of until the whole of said local assessment shall be paid.”

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History. Acts 1929, No. 64, § 16; 1935, No. 145, § 7; Pope's Dig., § 7370; A.S.A. 1947, § 20-324.

Case Notes

Betterment.

The theory upon which improvement districts taxes are sustained is that the proposed improvement will enhance the value of the land sought to be taxed, and the tax is imposed upon this enhanced value, called betterment. Ragsdale v. Cunningham, 201 Ark. 848, 147 S.W.2d 20 (1941).

Subchapter 6 — Continuance of Districts for Maintenance and Repair

Effective Dates. Acts 1909, No. 245, § 6: effective on passage.

Acts 1921, No. 477, § 2: effective on passage.

14-91-601. Procedure generally.

    1. All improvement districts in cities and towns organized under §§ 14-88-203 — 14-88-205, 14-88-207 — 14-88-210, 14-88-301 — 14-88-303, 14-88-305, 14-88-306, 14-88-308, and 14-88-407 may be prolonged or continued after the completion of the improvement for which they were organized for the purpose of maintaining and keeping those improvements in a good state of repair, upon a petition of a majority in value of the owners of real property within the district adjoining the locality to be affected, to the city or town council, requesting that the life of the district be prolonged or continued for that purpose.
    2. The petition shall designate the time during which the maintenance and repair shall be undertaken, and the manner and estimated cost thereof, requesting that the cost be assessed and charged upon the real property situated within the district.
    1. Thereupon, the council shall provide by ordinance for the prolongation or continuation of the district as requested, and the board of assessors shall thereupon assess the value of all benefits to be received by the land owned by reason of the maintenance and keeping in repair of the improvement as affecting each of the blocks, lots, or parcels of land within the district.
    2. The board shall at once proceed to inscribe in the assessment book of the district the value of the benefits to accrue to each of the blocks, lots, or parcels of land.

History. Acts 1909, No. 245, § 1, p. 742; C. & M. Dig., § 5728; Acts 1921, No. 477, § 1; Pope's Dig., § 7384; A.S.A. 1947, § 20-317.

Case Notes

In General.

This section confers authority to prolong improvement districts and to assess the maintenance cost thereof against the property in the district. Ragsdale v. Cunningham, 201 Ark. 848, 147 S.W.2d 20 (1941).

Assessment of Benefits.

Ordinance reciting that property in sewer improvement district was assessed according to assessment list in the office of the city clerk was held invalid for undertaking to make the assessment which this section requires the board of assessors to make. Ragsdale v. Cunningham, 201 Ark. 848, 147 S.W.2d 20 (1941).

Betterments for sewerage purposes may be assessed against vacant property where, if and when desired, the sewerage connections may be made. Ragsdale v. Cunningham, 201 Ark. 848, 147 S.W.2d 20 (1941).

Original and Annexed Districts.

Original sewer district and annexed district could be treated as a single district for purposes of maintenance, after the indebtedness of both districts had been discharged, if the two districts were so connected that they might, in fact, be regarded as a single district. Ragsdale v. Cunningham, 201 Ark. 848, 147 S.W.2d 20 (1941).

Where ordinances treated original sewer district and annexed district as separate entities, absent ordinance prolonging life of annexed district, there was no authority to assess and impose upon the lands in that district the cost of maintenance. Ragsdale v. Cunningham, 201 Ark. 848, 147 S.W.2d 20 (1941).

14-91-602. Levy of assessment.

  1. The city or town council shall provide, by ordinance, for the levy of the assessment of the benefits as made by the assessors under § 14-91-601 and shall fix the day in the year when the assessment shall be paid.
  2. The assessment shall be a charge and lien against all the real property in the district from the date of the ordinance and shall be entitled to preference over all judgments, executions, encumbrances, or liens whensoever created, except the lien for original assessment, and shall continue until the assessments, with any penalty and costs that may accrue, shall be paid.
  3. As between grantor and grantee, all payments not due at the date of the transfer of the real property shall be payable by the grantee.

History. Acts 1909, No. 245, § 4, p. 742; C. & M. Dig., § 5731; Pope's Dig., § 7387; A.S.A. 1947, § 20-320.

14-91-603. Limitations on assessment.

The assessments for maintenance and repair made pursuant to § 14-91-601 may be in addition to the twenty percent (20%) maximum assessment permitted for the original cost of the improvement by § 14-90-801, but no additional assessment shall be made in excess of five percent (5%) of the value of the real property in the district as shown by the last county assessment, and not more than ten percent (10%) of the additional assessment of benefits shall be collected in any one (1) year.

History. Acts 1909, No. 245, § 3, p. 742; C. & M. Dig., § 5730; Pope's Dig., § 7386; A.S.A. 1947, § 20-319.

14-91-604. Readjustment of assessment.

The assessment made pursuant to § 14-91-601 may be annually readjusted according to additional improvements upon the lands by board of assessors. Immediately upon the recording of the assessment, notice thereof shall be inserted in some newspaper, and appeals may be filed and shall be heard and disposed of all in the same manner as provided by law for publishing notice of and protesting against the original assessment for the improvement.

History. Acts 1909, No. 245, § 2, p. 742; C. & M. Dig., § 5729; Pope's Dig., § 7385; A.S.A. 1947, § 20-318.

Cross References. Correction, revision, and reduction of original assessments, § 14-90-601 et seq.

14-91-605. Law controlling assessments.

Under this subchapter, the publication of a copy of the ordinance, the infliction of a penalty for nonpayment, and the enforcement and foreclosure of the lien shall all be had and done in the same manner as is provided in reference to the original assessment.

History. Acts 1909, No. 245, § 5, p. 742; C. & M. Dig., § 5732; Pope's Dig., § 7388; A.S.A. 1947, § 20-321.

Subchapter 7 — New Districts to Enlarge or Reconstruct Existing Works

Effective Dates. Acts 1915, No. 5, § 11: approved Jan. 27, 1915. Emergency clause provided: “This Act being for the immediate preservation of the public peace and safety, an emergency is declared, and this Act shall take effect and be in force from and after its passage.”

14-91-701. Formation generally.

  1. It shall be lawful for an improvement district in a city or town to be formed for the purpose of enlarging or reconstructing waterworks and electric light plants previously constructed by other improvement districts or owned or controlled by the city or town council, and extending the pipes, wires, and other equipment for it.
  2. The district shall be organized and all the proceedings in it had in pursuance of the provisions of the laws governing improvement districts in cities and towns.
  3. The council, the commissioners of the improvement district board, and assessors shall have the powers and duties prescribed thereby.
  4. When the improvement districts are organized, possession and control of the waterworks and electric light plants shall be taken by the commissioners in the districts.
  5. When the work of the improvement is finished and all debts of the preceding districts have been paid, the control of the waterworks and electric light plants shall pass to the council, as provided by § 14-91-402.
  6. The commissioners may secure the payment of any borrowed money by a mortgage on the plant and a first lien pledge and mortgage of the assessment of benefits made on the reconstruction.

History. Acts 1915, No. 5, § 10; C. & M. Dig., § 5727½; A.S.A. 1947, § 20-338.

Subchapter 8 — Improvement of Water Plants for Veterans' Hospitals

Effective Dates. Acts 1932 (2nd Ex. Sess.), No. 3, § 5: approved Mar. 23, 1932. Emergency clause provided: “It being ascertained that there is great demand in many of the cities of this State for such extension, improvements and developments of such waterworks and plants, and for the financing thereof as herein provided, and that the public peace, health and safety of the citizens of such cities is thereby imperiled, therefore an emergency is hereby declared to exist, and this act shall be in full force and effect from and after its passage.”

14-91-801. Authority generally.

All water improvement districts in any and all of the cities of the first and second class of the State of Arkansas that may be designated as sites for United States Veterans' Hospitals and their respective boards of managers and boards of improvements, or any of them, are authorized to extend, develop, and improve water plants and systems, and to acquire real estate as to them may seem necessary and advisable for this purpose. They may issue their certain negotiable promissory obligations in payment thereof, payable out of the surplus, from year to year, of the revenue arising from the operation of any such plant of the district, after all operating expenses have been paid or provided for, and to sell and negotiate such obligations for the purpose of securing cash funds with which to so extend, develop, and improve the plant and to acquire real estate.

History. Acts 1932 (2nd Ex. Sess.), No. 3, § 1; A.S.A. 1947, § 20-325.

14-91-802. Assistance by city.

All cities of the first and second class in this state are authorized, by ordinance, in consideration of the benefits to be received by the cities by reason of the matters set out in § 14-91-801, to obligate itself to aid or assume the obligations of the improvement districts, or of its board of managers or board of improvement, payable out of the surplus revenues of the city, after the necessary expenses of the city have been paid or provided for. They shall be paid out of such surplus, from year to year, until the obligations assumed shall have been fully paid.

History. Acts 1932 (2nd Ex. Sess.), No. 3, § 2; A.S.A. 1947, § 20-326.

Publisher's Notes. As to validation of prior action, see Acts 1932 (2nd Ex. Sess.), No. 3, § 3.

Subchapter 9 — Sewer Connections to Lands Outside District

Cross References. Connections to suburban sewer districts, § 14-249-103.

Effective Dates. Acts 1941, No. 53, § 4: approved Feb. 13, 1941. Emergency clause provided: “By reason of the need of sanitary sewer connections in our cities and towns, an emergency is hereby declared and this act shall take effect and be in force from and after its passage.”

Acts 1969, No. 304, § 4: Mar. 21, 1969. Emergency clause provided: “It has been found and is declared by the General Assembly of Arkansas that many purchasers of land have been misled and deceived and put to extra expense by reason of their lack of knowledge that land purchased by them is subject to unpaid connection charges for necessary sanitary sewer facilities and that only through enactment of this bill will this situation be remedied. Therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation of the public peace, health and safety, shall take effect and be in force from the date of its approval.”

14-91-901. Authority to connect.

All municipal sewer improvement districts shall have authority to permit lands outside the boundaries of the district to connect sewer lines serving the lands with the sewer lines and mains of the district and to make a charge for this privilege.

History. Acts 1941, No. 53, § 1; A.S.A. 1947, § 20-332.

14-91-902. Terms of connection.

  1. The commissioners on the board of a municipal sewer improvement district shall have the right to consent to or refuse to allow connections within their discretion.
    1. The connections shall be made on such terms as the commissioners may dictate. However, no lands outside of the district shall be permitted to connect with the sewer line of the district except upon payment to the district of a sum equal to the charge made against similarly benefited lands within the district.
    2. In case such connections have been made without the payment of a charge for the connection, the district may refuse to allow sewer service to the lands until permission for the connection is granted and the charge for the service is paid to the district.

History. Acts 1941, No. 53, § 2; A.S.A. 1947, § 20-333.

Case Notes

Connection Charge.

This section imposes a duty on the commissioners to make a connection charge when the land to be served is outside the sewer improvement district. Morrilton Homes, Inc. v. Sewer Improv. Dist., 226 Ark. 22, 287 S.W.2d 581 (1956).

Where proof showed that sewer improvement district's assessment of benefits to landowners within the district averaged $100 per lot, an assessment of $30.00 per lot for sewer connections outside the district where corporation which connected to the district's system laid its own mains was not excessive. Morrilton Homes, Inc. v. Sewer Improv. Dist., 226 Ark. 22, 287 S.W.2d 581 (1956).

Discretion of Commissioners.

The commissioners have the right to exercise their discretion as to whether connections with sewer line shall be permitted outside the improvement district. Sewer Imp. Dist. v. Davis, 227 Ark. 755, 301 S.W.2d 15 (1957).

The mere fact that property owners have sewer lines from their property connected to the improvement district system for more than three years did not give them a vested right to use the sewer system without consent. Sewer Imp. Dist. v. Davis, 227 Ark. 755, 301 S.W.2d 15 (1957).

14-91-903. Recording required.

  1. In any instance where a municipal sewer improvement district has contracted for the furnishing of sanitary sewer service to lands lying outside the boundaries of the district, that district shall cause to be recorded, in the land records of the county in which the land is located, an instrument containing:
    1. A full and complete description of the lands which are subject to the contract;
    2. A fair summary of the terms and provisions of the contract; and
    3. Such other information as might be pertinent to the transaction.
  2. If the instrument referred to in subsection (a) of this section is not recorded as there required, a subsequent purchaser of all, or any part, of the land covered by the contract shall have the right to connect improvements located on the lands to the sanitary sewer lines of the district without charge for the connections, unless the purchaser had actual notice of the contract and the terms thereof concerning connection charges.

History. Acts 1969, No. 304, §§ 1, 2; A.S.A. 1947, §§ 20-333.1, 20-333.2.

Subchapter 10 — Sale of Waterworks

Cross References. Lease or sale of public utilities, §§ 14-199-301 et seq., 14-219-101 et seq.

Effective Dates. Acts 1929, No. 103, § 6: approved Mar. 7, 1929. Emergency clause provided: “It is ascertained and hereby declared that there are in various cities and towns in this State waterworks which are now so inadequate to meet the requirements of the inhabitants of such cities and towns that they are prejudicial to the public health and inadequate for the extinction of fires; and that such cities and towns and such improvement districts owning such waterworks have no means with which to make the necessary improvements, repairs and extensions, so that there is an immediate menace to the public health and safety. Therefore an emergency is declared, and for the preservation of the public peace, health and safety this act shall go into immediate operation and take effect upon its passage.”

14-91-1001. Authority to sell.

  1. Wherever in any city or incorporated town in this state a waterworks plant and a sewer system have been constructed by the same improvement district as part of a single improvement, the city or town council shall have authority to sell the waterworks.
    1. To that end, the council shall select a competent engineer familiar with the waterworks plants, who shall appraise the waterworks and file with the clerk or recorder of the city or town his appraisement in writing.
        1. Thereupon, it shall be the duty of the clerk or recorder of the city or town to publish a notice.
        2. The notice may be in the following form:
      1. The notice shall be published once a week for four (4) weeks.
    1. Unless some property owner of the city or town brings suit in the chancery court within thirty (30) days from the first publication of the notice to review the appraisal, the appraisal shall stand and be conclusive upon all parties.
    2. If such a suit is brought, it shall be treated as a matter of public interest and advanced in all courts, and all appeals therein must be taken and perfected within thirty (30) days.
    3. If at the end of the period of thirty (30) days no suit has been brought to set aside the appraisal, the appraisement shall be conclusive of the value of the property.

“NOTICE IS HEREBY GIVEN that the appraiser appointed by the City (or Town) Council of the City (or Town) of has appraised the value of the waterworks system constructed by said City (or Town; or by Improvement District No ) at the sum of Dollars ($ ). City Clerk (or Recorder).”

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History. Acts 1929, No. 103, § 1; Pope's Dig., § 7395; A.S.A. 1947, § 20-327.

14-91-1002. Proceedings to approve sale.

  1. The council of any municipal corporation may sell its system of waterworks, together with the right to operate it, when they shall determine, by resolution adopted by a majority vote of the council, that it would be for the best interest of the town or city that the sale be consummated.
    1. Before any such sale shall be consummated, there shall be filed, within one (1) year after the adoption of the resolution, with the council a petition signed by a majority in value as shown by the last county assessment of the owners of real property within the town or city proposing to make the sale, asking that the sale be made and stating the minimum price at which the sale shall be made, which shall in no event be a sum less than the appraised value thereof.
      1. Upon the filing of this petition, the council of the city or town shall give notice by publication once a week for two (2) weeks in some newspaper published in the county in which the city or town is located, advising the owners of real property within the city or town that on a day therein named the council of the city or town will hear the petition and determine whether those signing it constitute a majority in value of the owners of real property.
        1. At the meeting named in the notice, the owners of real property within the city or town shall be heard before the council, which shall determine whether the signers of the petition constitute a majority in value.
        2. The finding of the council shall be conclusive unless, within thirty (30) days thereafter, suit is brought to review its action in the chancery court of the county in which the city or town lies.
      2. In determining whether those signing the petition constitute a majority in value of the owners of the real property within the city or town, the council and the chancery court shall be guided by the records of deeds in the office of the recorder of the county and shall not consider any unrecorded instruments.

History. Acts 1929, No. 103, § 2; Pope's Dig., § 7396; A.S.A. 1947, § 20-328.

14-91-1003. Purchase of waterworks.

    1. The purchaser of the water system in any city or town in this state shall pay at least the appraised value for the plant.
      1. If the purchaser desires to assume an amount of bonds equal to the purchase price outstanding against the plant, he shall give to the city or town an indemnifying bond in some good surety company, conditioned for the payment of the interest and the retiring of the bonds, so assumed by the purchaser, as they may become due and payable.
      2. Should the purchaser desire to take up the amount of bonds that may be adjudged against the waterworks, as shown by the purchase price, he may do so by making the necessary arrangements for retiring them with the holders of the bonds.
      1. The transfer of the properties shall be evidenced by a deed of conveyance in the usual form and with the usual covenants of warranty.
      2. A lien against the property sold shall be retained in the deed for all of the unpaid sale price with the right upon default of payment of any interest or indebtedness when it falls due to declare all of the unpaid sale price due and payable and to proceed with a foreclosure of the lien so retained.
    1. The deed of conveyance shall be executed on behalf of the city or town by the clerk or recorder, when authorized by the city or town council.
    2. A receipt duly executed by the treasurer of the city or town shall release the purchaser from further liability for the payment of the amount of money received.
    3. If payment is made in cash, it shall be applied only to the retirement of the bonds of the district.
  1. Upon the payment of all indebtedness for which a lien may be retained in a deed of conveyance, the mayor, or recorder, or clerk of the town or city is authorized and directed to satisfy the lien by a deed of release, or by marginal entry upon the deed record where it may be recorded.

History. Acts 1929, No. 103, § 3; Pope's Dig., § 7397; A.S.A. 1947, § 20-329.

14-91-1004. Effect of sale.

The sale of the property as mentioned in this subchapter shall not work a forfeiture of the corporate entity of the improvement district. Rather, it shall be maintained for the operating of the sewer system which is to be retained by the district and the town and city.

History. Acts 1929, No. 103, § 3; Pope's Dig., § 7397; A.S.A. 1947, § 20-329.

14-91-1005. Outstanding bonds.

The remainder of the outstanding bonds issued by a municipal waterworks improvement district shall remain as an indebtedness against it and shall be paid by a levy on the assessment of benefits of the district in force at the time of a sale.

History. Acts 1929, No. 103, § 4; Pope's Dig., § 7398; A.S.A. 1947, § 20-330.

14-91-1006. Priority of suits.

All suits in reference to the sale of municipal waterworks shall be deemed matters of public interest and shall be advanced in all courts and heard at the earliest possible moment, and appeals therein must be taken and perfected within thirty (30) days.

History. Acts 1929, No. 103, § 5; Pope's Dig., § 7399; A.S.A. 1947, § 20-331.

Subchapter 11 — Change of Plans in Cities with a Population Exceeding 60,000

Effective Dates. Acts 1925, No. 238, § 8: approved Mar. 27, 1925. Emergency clause provided: “This act being necessary for the immediate preservation of the public peace, health and safety, an emergency is hereby declared to exist, and this act shall be in force from and after its passage.”

14-91-1101. Applicability.

This subchapter shall apply only to improvement districts created in cities having a population exceeding sixty thousand (60,000) inhabitants, as shown by the federal census immediately preceding the proceedings authorized by this subchapter.

History. Acts 1925, No. 238, § 2; A.S.A. 1947, § 20-303.

14-91-1102. Authority generally.

The commissioners on the boards of improvement districts formed in cities having more than sixty thousand (60,000) inhabitants are authorized and empowered to change the plans for the improvement either before or after the assessments of benefits are made in their districts and to make and complete the improvement in them according to the changed plans.

History. Acts 1925, No. 238, § 3; A.S.A. 1947, § 20-304.

14-91-1103. Revised plans.

  1. At any time before the completion of the improvements in the improvement districts, the commissioners on the boards of improvement may make revised plans for the improvements involving changes in the original plans and complete the improvements according to the changed plans.
  2. As soon as the commissioners have formed the revised plans for the improvements, they shall file a report thereof with the city clerk, together with an estimate of the cost of completing the improvements according to the changed plans.

History. Acts 1925, No. 238, § 4; A.S.A. 1947, § 20-305.

14-91-1104. Plans not exceeding cost limit.

  1. If the estimate of cost of making and completing the improvements according to the changed plans does not exceed the limit of cost to be borne by the landowners in the improvement district as limited by the statute in force at the time the second or majority petition is filed, or by a majority petition, the assessors shall immediately proceed to make a reassessment of benefits to be derived from the making of the improvements according to the changed plans.
  2. The reassessment shall be filed, advertised, and heard, and the time for any complaints against it shall be limited, as is provided for on the original assessment in the district.

History. Acts 1925, No. 238, § 4; A.S.A. 1947, § 20-305.

14-91-1105. Plans exceeding cost limit.

    1. If the estimate of cost in any improvement district on any revised or changed plans shall exceed the amount limited by statute in force at the time the second or majority petition is filed with the city clerk, or the amount limited by the second or majority petition, the commissioners shall not proceed with the improvements according to the changed plans unless, within one (1) year after the changed plans are filed with the city clerk signed by a majority in value of the owners of real property in the district as shown by the last assessment for state and county taxes and a hearing is had thereon after notice by publication has been given for the time and in the manner required for such hearings on second or majority petitions in improvement districts in cities and towns, the city council finds that the petition contains the consent of a majority in value of the owners of real property in the district, as provided for in this section.
    2. The finding of the city council on the petition shall be conclusive, subject to attack in the chancery court within thirty (30) days after the finding is made, and not thereafter.
    3. The petition of the property owners provided for in this section shall state that the petitioners consent to the making and completion of the improvements in the district according to the changed plans and that the cost thereof be assessed against the real property in the district.
    1. If the city council shall find that a majority of the landowners in the improvement district have petitioned for the making and completion of the improvements according to the revised plans, as provided for in subsection (a) of this section, the assessors shall, as soon as possible, make a reassessment of the benefits to be derived from the making and completion of the improvements according to the changed plans.
    2. The reassessment shall be filed, notice thereof given by publication, and shall be heard by the council for the time and in the manner provided by law on the original assessment in the district, with the right of any property owner to appeal to the chancery court within the time, after the passage of the ordinance levying the installments of the reassessment of benefits, provided by law for appeals from assessments of benefits in improvement districts in cities and towns, and not thereafter.

History. Acts 1925, No. 238, §§ 5, 6; A.S.A. 1947, §§ 20-306, 20-307.

14-91-1106. Borrowing of money.

In order to secure funds for the making and completion of the improvements in the improvement district according to the changed plans, the board of improvement may borrow money not exceeding the full amount of the estimated cost of making and completing the improvements, with ten percent (10%) added for overhead cost, at a rate of interest not exceeding eight percent (8%) per annum, and may issue negotiable notes or bonds of the district for the payment thereof, and pledge all uncollected assessments for the security of the payment of the notes or bonds.

History. Acts 1925, No. 238, § 7; A.S.A. 1947, § 20-308.

Chapter 92 Suburban Improvement Districts

Subchapter 1 — General Provisions

Preambles. Acts 1943, No. 198 contained a preamble which read:

“Whereas, in the period of prosperity prior to the depression beginning in 1929, certain owners of property in the less populated and developed areas of cities and towns and in areas adjacent thereto gave consent to and joined in the formation of various kinds of improvement districts organized for the purpose of providing for the owners of lands of such areas public facilities and conveniences, and such improvement districts did construct in such areas such facilities and improvements and to pay for the same, issued and sold bonds which are in fact a first mortgage on all the lands in the districts; and

“Whereas, this debt was created in the belief of the owners of the property that the period of prosperity was a permanent period, and that the facilities and conveniences provided by the district would lead to the improvement and building up of the less populated and unimproved area of the district; and

“Whereas, many of such districts had sold their bonds and had completed the installation of the improvements provided for only a short time before the country was struck by the depression, and as a result all development ceased. Persons who had purchased vacant lots for the purpose of building thereon, found it impossible to finance buildings and as a result lost interest in paying special improvement district taxes or county and state taxes on their property; and

“Whereas, during the depression years the Federal Government, in order to relieve unemployed labor, created the Works Progress Administration and the said W. P. A. proposed to states, counties, cities and improvement districts to pay the entire expense of labor and a substantial portion of the cost of the material used in making various public improvements, and under this agency or authority public facilities and conveniences of the same kind and character as those theretofore constructed under the improvement district system of bonded indebtedness were made in other areas at a cost of from one-sixth to one-third of the bonded indebtedness of areas included in improvement districts, and thereby lessened the value and attractiveness of property laboring under the debt of a regular improvement district; and

“Whereas, it is now an evident fact that in many cases ten or more years annual assessments of improvement district taxes have accumulated on the lands of such improvement districts and the sum necessary to redeem such lands, together with state and county taxes which remain unpaid, is too much for the average man to pay in one installment, and such areas are now and must remain blighted until some legal method is devised to relieve such property from accumulation of delinquent improvement district taxes and to devise a method for the payment of such accumulation of taxes in installments distributed in the future; and

“Whereas, it is evident that the best method to place such property on a current basis and to utilize the facilities and conveniences, such as pavements, sidewalks, water, light, and sewer lines now existing thereon is to provide a plan whereby the accumulation of assessments may be paid in annual installments instead of a lump sum….”

Effective Dates. Acts 1943, No. 198, § 2: approved Mar. 11, 1943. Emergency clause provided: “It is hereby ascertained and declared that the provisions of this act are necessary to aid said improvement districts to work out their affairs by making conditions so that more property owners would pay taxes or assessments to the district, to the end that the district can meet its bonded indebtedness and have funds left to take care of necessary maintenance of the improvements constructed, for without sufficient revenue, the districts cannot maintain their water systems or fire hydrants and a continuous supply of water is necessary for the health and protection against fire of the inhabitants and property of the district; similarly necessary repairs of pavements are essential to the safety of the driving public, a regular maintenance of sewers is necessary to prevent stoppages which frequently occur and if not corrected will cause sewage to pour from the manholes and greatly endanger the health of the entire community. These repairs and maintenance of such utilities, as well as the repair and maintenance of other improvements made by such districts are necessary for the public peace, health and safety, and for these reasons it is ascertained and declared that the immediate operation of this act is necessary for the preservation of the public peace, health and safety. An emergency is therefore declared, and this act shall take effect and be in force from and after its passage.”

14-92-101. Assessments delinquent for more than two years.

    1. When, in any improvement district composed of territory adjacent to a city created under any special or general act, for the purpose of grading, draining, paving, curbing, or guttering streets and highways; laying sidewalks; constructing waterworks systems or laying pipes connected with waterworks systems; laying gas pipelines connecting with gas systems; constructing electric lines for light and power connecting with the lines of electric light systems; and constructing independent sewer systems or systems of sewers connecting with the sewer systems of other districts or cities; or for more than one (1) of these purposes, any annual installments of assessments are delinquent for more than two (2) years, its board of improvement, in its discretion, may adopt a resolution finding the amount of the balance of unpaid assessment of benefits against each tract or parcel of land within the district and providing that the balance shall be the assessment of benefits against each respective tract or parcel of land.
    2. No annual installment of assessment against any property which assessment is, on the date of any assessment made under this section, barred by any statute of limitation or on which suit for the collection thereof has not been brought within the time provided or limited by law, or which has been held void by a court of competent jurisdiction, shall be included in the new assessment or in the balance of unpaid assessment of benefits.
  1. After the date of the resolution and the filing of the assessment of benefits, the annual levies on the assessment of benefit shall be collected on the respective assessment of benefits as thus fixed against each tract or parcel of land.
      1. A copy of the resolution, certified by the secretary of the district, shall be incorporated in the assessment book, which shall be filed with the county clerk.
      2. In the making of the assessment book, the assessors shall follow the provisions of the legislation under which the respective district was created.
      1. Upon the filing of the assessment book, the secretary of the board shall thereupon give notice of its filing in a publication of one (1) insertion in a newspaper published and having a bona fide circulation in the county.
      2. This notice may be in substantially the following form:
    1. On the day named in the notice, which shall not be less than ten (10) days from the date of the publication of the notice, it shall be the duty of the assessors and the board of improvement to meet at the place named to hear all complaints as to the correctness of the assessments of benefits. Their determination, evidenced by a resolution, shall be final unless suit is brought in chancery court within thirty (30) days to review it.
    2. Any appeal to the Supreme Court from the chancery court shall be taken and perfected within thirty (30) days and shall be deemed a matter of public interest to be disposed of at the earliest possible moment.
    1. The assessments of benefits fixed by the board of improvement shall supplant all prior assessment or reassessments of benefits.
    2. All annual installments of assessments which were delinquent at the date of any assessment made under this section shall be deemed cancelled on the completion of the new assessment.
  2. The assessment of benefits shall continue to bear interest as provided in the legislation under which the district was organized.

“Notice to landowners of real property in Improvement District No. of County, Arkansas. Notice is hereby given that the Board of Commissioners of Improvement District No. of County, Arkansas, has filed in the office of the County Clerk of County, the assessment book of the district, in which is incorporated a resolution fixing the assessment of benefits on each tract or parcel of land within the district, as authorized by Act No. of the regular session of the General Assembly of Arkansas for the year 1943, (giving the number of this act) and the same is now open to inspection. All persons wishing to be heard on said assessment of benefits will be heard by the assessor or assessors and the Commissioners of the District between the hours of 10 a.m. and 12 noon and between the hours of 2 p.m. and 4 p.m. at the office of the County Clerk of County, Arkansas, on the day of , 19 . “Given this day of , 19 . Secretary. Improvement District No. of County, Arkansas.”

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History. Acts 1943, No. 198, § 1; A.S.A. 1947, § 20-728.

Case Notes

Appeals.

The improvement district must act for the benefit of all the affected property owners, and if any property owner feels aggrieved, he has the right to have the decision of the district judicially reviewed. Cherokee Village Homeowners Protective Asso. v. Cherokee Village Road & Street Improv. Dist., 248 Ark. 1055, 455 S.W.2d 93 (1970).

Subchapter 2 — Suburban Improvement Districts Generally

Cross References. Formation of municipal improvement districts outside cities or towns, § 14-88-201.

Powers of deputies, § 14-15-503.

Preliminary expenses, levy of tax and issuance of bonds, § 14-86-701 et seq.

Proceedings to correct errors or irregularities in formation of district, § 14-86-401 et seq.

Preambles. Acts 1941, No. 41 contained a preamble which read:

“Whereas, the Federal Government Has Made Available to States and to Their Sub-Divisions, Funds for Improvements Through the Work Projects Administration and Their Agencies, and

“Whereas, Citizens of Cities and Towns Have Availed Themselves of the Funds Through Formation of Improvement Districts for Paving and for Other Purposes; and

“Whereas, Under Existing Arkansas Statutes, Persons Residing Outside Cities and Towns Are Not Permitted to Form Such Improvement Districts and Are Thus Prohibited From Benefits of Funds From the Government of the United States.

“Now Therefore, It Is Declared to Be the Purpose of This act to Make Provision for Formation of Improvement District on the Outside of and Adjacent to Cities Having a Population of 5,000 or more.”

Effective Dates. Acts 1941, No. 41, § 29: approved Feb. 13, 1941. Emergency clause provided: “It is hereby ascertained and declared that many suburban homes are liable to be destroyed by fire for the want of waterworks systems, and the owners thereof are liable to be killed or injured by such fires; that many suburban sections are in need of waterworks systems and sewers for the benefit of public health; that gas light is in many cases of suburban property essential for the public safety; that telephone systems connecting suburban property with the adjacent cities are often necessary to the public safety and health, being essential to give notice of fires, lawless acts and uprisings and for calling physicians to attend the sick; and for these reasons it is ascertained and declared that the immediate operation of this act is necessary for the preservation of the public peace, health and safety, and an emergency is therefore declared, and this act shall take effect and be in force from and after its passage.”

Acts 1951, No. 115, § 2: effective on passage.

Acts 1951, No. 233, § 3: Mar. 6, 1951. Emergency clause provided: “Whereas there is at this time discrimination between Municipal and Suburban Improvement Districts in the rates of commission, and such discrimination is detrimental to the welfare of the state, an emergency is declared to exist and this Act shall be in full force and effect upon and after its passage and approval.”

Acts 1953, No. 420, § 4: approved Mar. 30, 1953. Emergency clause provided: “Whereas, the existing statutes of the State of Arkansas with relation to rural fire protection districts are inadequate to provide fire protection to rural districts in the State of Arkansas, and whereas the public peace, health and safety is threatened by the lack of proper rural fire protection, an emergency has arisen, and does now exist, and is hereby declared, and this act shall be in full force and effect from and after its passage.”

Acts 1957, No. 331, §§ 2, 3: Jan. 1, 1957. Emergency clause provided: “It is hereby determined by the General Assembly that the allowance for deputy hire by County Clerks and Tax Collectors in extending and collecting improvement district taxes is wholly inadequate and that the immediate passage of this Act is necessary in order to correct said condition. Therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.” Approved March 27, 1957.

Acts 1963, No. 150, § 2: Mar. 4, 1963. Emergency clause provided: “It is hereby found and declared by the General Assembly that there is no adequate statutory procedure for the dissolution of suburban improvement districts which have surplus funds which are not necessary for the repair and maintenance of the district's facilities, and that substantial amounts of excess collections are lying idle and should be refunded to property owners in said districts; and that an emergency is therefore declared to exist, and this act being necessary for the preservation of the public peace, health and safety, shall take effect and be in force from the date of its approval.”

Acts 1967, No. 286, § 8: Mar. 10, 1967. Emergency clause provided: “It is hereby ascertained and declared that at the present time there is no provision of law whereby suburban improvement districts may be organized for the purpose of accepting as gifts from the Federal Government and others of recreational facilities and for the maintenance of same; further, that the present laws relative to suburban improvement districts are not specific as to authority and purpose to the extent that districts have not in many instances been organized and the suburban residents of the State of Arkansas have suffered from lack of fire protection, waterworks systems, sewers and other necessities for the health, welfare and safety of suburban residents of the State of Arkansas; for these reasons it is ascertained and declared that the immediate operation of this Act is necessary for the preservation of the public peace, health and safety, and an emergency is therefore declared, and this Act shall take effect and be in force from and after its passage and approval.”

Acts 1969, No. 230, § 5: Mar. 10, 1969. Emergency clause provided: “It is hereby found and determined by the General Assembly that there is an immediate need in some parts of the State for additional hospital facilities, and that the construction and equipment of many of these facilities can be financed only by suburban improvement districts. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1970 (Ex. Sess.), No. 16, § 3: Mar. 13, 1970. Emergency clause provided: “It is hereby ascertained and declared that the present law of suburban improvement districts does not adequately limit the financial interests of the members of the Board of Commissioners in dealings with said Districts; and further, that there is an immediate need to limit the amount of annual instalments of assessed benefits, which may be collected for the purposes of purchasing, maintaining or operating certain improvements in said Districts. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1970 (Ex. Sess.), No. 53, § 4: Mar. 13, 1970. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health, and safety, shall be in effect from and after its passage and approval.”

Acts 1971, No. 263, § 3: Mar. 11, 1971. Emergency clause provided: “It is hereby found and determined by the General Assembly that the requirements for the formation of water and sewer improvement districts under the present suburban improvement district law are too strenuous and creates unnecessary difficulties in the formation of these districts; that since these districts are created for the sole purpose of benefitting the property owners, the proper persons to determine whether a district is to be created should be the majority in value of the property owners of such proposed district; and that only by the passage of this Act can this be accomplished. Therefore, an emergency is hereby declared to exist and this Act, being necessary for the immediate preservation of the public peace, health and safety, shall become effective from and after its passage and approval.”

Acts 1971, No. 360, § 5: became law without Governor's signature, Mar. 23, 1971. Emergency clause provided: “It has been found and is hereby declared that the financing of the public improvements to which this Act pertains requires that its provisions be not inconsistent with each other, that necessary administrative powers of its commission be clearly provided therein, and that it have such powers as will avoid unnecessary duplication of public districts, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 1975 (Extended Sess., 1976), No. 1213, § 4: Feb. 12, 1976. Emergency clause provided: “It is hereby found and determined by the General Assembly that as a result of several developments in recent months ambulance services in many areas of the State are totally inadequate to serve the needs of the residents of such areas; that there is presently no law authorizing the establishment of improvement districts for the purpose of providing ambulance services; that this Act is designed to specifically authorize the establishment of such districts to permit residents of any defined area to establish an ambulance service improvement district to assure adequate ambulance services to the residents of this district and should be given effect immediately in order that appropriate steps may be taken at the earliest possible date to establish such districts in those areas where it is necessary to do so in order to provide adequate ambulance services. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1981, No. 474, § 9: Mar. 13, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that the present laws relating to Suburban Improvement Districts and Central Business Improvement Districts are unduly restrictive with respect to the maximum interest rates that such districts are allowed to pay and receive and that this Act is designed to permit such districts to pay and receive the maximum lawful rates of interest; that Central Business Improvement Districts are now severely hampered by their inability to issue revenue bonds to acquire property in the boundaries of the District and that this Act will authorize the issuance of such bonds and will thereby enable such districts to be more effective in eliminating urban blight and decay; that this Act should be given effect immediately to help solve the aforementioned problems. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1981, No. 510, § 11: Mar. 16, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that the present law relating to the establishment and dissolution of suburban improvement districts is unclear in many areas and is not adequate to protect property owners in some cases; that this Act is designed to clarify said law and to assure adequate protection to property owners and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1981, No. 703, § 6: Mar. 24, 1981. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 1983, No. 524, § 2: Mar. 17, 1983. Emergency clause provided: “It is hereby found and declared by the General Assembly that the present procedure of requiring suburban improvement district warrants to be signed by at least two of the commissioners of the district is unnecessary and unduly cumbersome as to those suburban improvement districts issuing a large number of warrants, resulting in delays of payment of persons supplying goods and services to the district. An emergency is therefore declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall take effect and be in force from the date of its approval.”

Acts 1987, No. 1008, § 4: Apr. 14, 1987. Emergency clause provided: “It is hereby found and determined by the General Assembly that because of the case Ricarte v. State, CR 86-31, a question has arisen over the validity of Act 1213 of the Extended Session of 1976; that this Act is a reenactment of the former law; and that the immediate passage of this Act is necessary to clarify the state of the law on this issue. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1987 (1st Ex. Sess.), No. 37, § 7: June 12, 1987. Emergency clause provided: “It is hereby found and determined by the General Assembly that regulation of small water and sewer utilities as ‘public utilities’ under the jurisdiction of the Public Service Commission generally imposes heavy regulatory costs upon the consumers, so that the cost of preparing a rate case alone may equal or exceed the other total revenue requirements of those utilities; that the effect of regulation is often to increase costs that are proportionately far in excess of the benefits of regulation; that customers of small water and sewer utilities may be better off in the long run if they could simply buy their water or sewer utility outright and run it themselves; and that this Act is immediately necessary to remedy the present situation. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1991, No. 281, § 6: July 1, 1991. Emergency clause provided: “It has been found and determined by the General Assembly that present law provides for collection of delinquent suburban improvement district taxes by inclusion of the suburban improvement taxes and penalty in the county collector's tax sale for ad valorem real property taxes. Such sale has been abolished, leaving no clear remedy for delinquent suburban improvement taxes. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in full force and effect from and after July 1, 1991 and shall be applicable to suburban improvement district taxes due and payable on or before October 10, 1991.”

Research References

U. Ark. Little Rock L.J.

Goldner, A Call for Reform of Arkansas Municipal Law, 15 U. Ark. Little Rock L.J. 175.

Case Notes

Constitutionality.

Former statute authorizing the creation of suburban improvement districts was not invalid as an invasion of the jurisdiction of the county courts in the establishment of highways. Newton v. Altheimer, 170 Ark. 366, 280 S.W. 641 (1926); Reed v. Paving Dist. of Jefferson County, 171 Ark. 710, 286 S.W. 829 (1926); Morehart v. Mabelvale Rd. Imp. Dist., 178 Ark. 219, 10 S.W.2d 856 (1928) (decisions under prior law).

This subchapter is not void as making an unreasonable or arbitrary classification. Murphy v. Cook, 202 Ark. 1069, 155 S.W.2d 330 (1941).

This subchapter is general legislation and not a local act. Murphy v. Cook, 202 Ark. 1069, 155 S.W.2d 330 (1941).

14-92-201. Definitions.

As used in this subchapter, unless the context otherwise requires:

  1. “Last federal census” means the most recent federal census taken prior to the filing of any petition as provided in this subchapter for the formation of any suburban improvement district;
  2. “Majority in value” means a majority in assessed value as shown by the latest county assessment records for general taxes;
  3. “Land” or “real property” means all property subject to taxation for the purposes of this subchapter;
  4. “County court,” “county judge,” or “county clerk” means “circuit court,” “circuit judge,” or “circuit clerk” in the cases where the district contains lands in more than one (1) county;
  5. “Nearby municipalities” means municipalities within ten (10) miles of any boundary of the district.

History. Acts 1941, No. 41, §§ 1, 4, 5, 23; 1951, No. 115, § 1; 1967, No. 286, §§ 1-3; 1969, No. 230, §§ 1, 2; 1971, No. 263, § 1; 1981, No. 510, § 1; A.S.A. 1947, §§ 20-701, 20-704, 20-705, 20-723.

Case Notes

Land.

While timeshare owners do not receive an individual tax bill, the property itself is assessed real property taxes by the assessor and improvement-district assessments, which are then paid by the timeshare owners through the owners association; thus, a timeshare owner owns property subject to taxation and thereby satisfies the definition of a “property owner” entitled to individual notice of commissioner elections under § 14-92-240(c), and each timeshare owner is entitled to one vote for each commissioner position to be filled. Roberts v. Holiday Island Suburban Improvement Dist. #1, 2018 Ark. App. 394, 559 S.W.3d 269 (2018).

14-92-202. Applicability of 1981 amendments.

  1. The provisions of Acts 1981, No. 510, shall not apply to districts in existence on March 16, 1981, and these districts shall continue to be governed by the law in effect immediately prior to that date.
    1. Upon the petition of thirty-five percent (35%) of the property owners of a district in existence on March 16, 1981, the district shall be subject to the provisions of § 14-92-209 concerning the election of commissioners to fill vacancies on the commission and concerning the recall of commissioners.
    2. The petition may also provide for the board of commissioners to be enlarged from three (3) members to five (5) members and may provide for the imposition of a specified term of years on the board positions. If the petition requests a board of commissioners composed of five (5) members, then two (2) additional commissioners shall be elected in the same manner as provided for filling vacancies under § 14-92-209(b).
    3. Commissioners serving at the time the petition is filed shall continue to serve.
    4. The petition shall be filed with the circuit court of the judicial district in which most of the district is located.
  2. Subsection (a) of this section shall not apply to any improvement district in any city or incorporated town in this state established for the purpose of providing water or sewer services for municipal purposes.

History. Acts 1981, No. 510, § 9; A.S.A. 1947, § 20-744; Acts 1993, No. 782, § 1; 2011, No. 1225, § 2.

Publisher's Notes. Acts 1981, No. 510 is codified as §§ 14-92-201, 14-92-202, 14-92-20414-92-209, 14-92-218, 14-92-221, 14-92-226, and 14-92-237.

Amendments. The 1993 amendment substituted “that” for “this” in present (a); and added (b).

The 2011 amendment substituted “property owners” for “realty owners” in (b)(1); inserted “and may provide for the imposition of a specified term of years on the board positions” in (b)(2); and added (c).

Case Notes

Cited: Adams v. Highway 10 Water Pipe Line Improv. Dist., 217 Ark. 473, 230 S.W.2d 956 (1950); Reeme v. Natural Gas Imp. Dist., 247 Ark. 983, 448 S.W.2d 647 (1970); Cherokee Village Homeowners Protective Asso. v. Cherokee Village Road & Street Improv. Dist., 248 Ark. 1055, 455 S.W.2d 93 (1970).

14-92-203. Penalty.

  1. It shall not be lawful for the board of commissioners of any suburban improvement district or any officer, member, or agent thereof to appropriate or use any money arising from the sale of any bonds authorized to be issued under this subchapter to any use or purpose whatever other than is specified and expressly directed.
  2. And any officer, member, or agent of the board of a district who shall violate any of the provisions of this subchapter as prescribed in this section shall be deemed guilty of a felony and, upon conviction shall be punished by imprisonment in the penitentiary for not less than one (1) year nor more than five (5) years.

History. Acts 1941, No. 41, § 20; 1967, No. 286, § 6; A.S.A. 1947, § 20-720.

Case Notes

Payment by State.

Although the state under former statute would pay all the outstanding bonds of a road improvement district, the state was not entitled to any part of the funds of the district where it had not taken over the roads of the district for maintenance. State ex rel. Holt v. Little Rock-Highland Paving Dist., 199 Ark. 430, 133 S.W.2d 878 (1939) (decision under prior law).

Cited: Cherokee Village Homeowners Protective Asso. v. Cherokee Village Road & Street Improv. Dist., 248 Ark. 1055, 455 S.W.2d 93 (1970).

14-92-204. Hearing prior to filing petition to form district.

      1. Prior to filing the petition for formation of a district, each owner of realty within the boundaries of the proposed district shall be notified by certified letter of the intent of formation of the proposed district.
      2. The notice shall be accompanied by:
        1. A copy of the petition;
        2. A list of those candidates nominated for commissioner;
        3. Proxy materials for the use of those owners not able to attend the public meeting; and
        4. The name and mailing address of the senior justice of the peace within the area encompassed by the proposed district.
    1. The notice shall indicate the date and location of a public meeting to be held not less than fifteen (15) days nor more than thirty (30) days prior to filing the petitions with the court.
    2. The letters of notification shall be mailed not less than fifteen (15) days nor more than thirty (30) days prior to the public hearing.
      1. The notice shall also be published in a newspaper having general circulation within the counties where the proposed district is located.
      2. The publication shall be once a week for two (2) weeks prior to the public meeting, and the notice shall indicate the date and location of the public hearing.
    1. The public hearing shall be held within the boundaries of the proposed district, unless public meeting facilities of sufficient size are not available, in which instance the meeting shall be held in the nearest public facility of sufficient size.
    2. The public hearing shall be chaired by the senior justice of the peace within the area encompassed by the proposed district or his appointee.
    3. The public hearing shall commence between the hours of 6:00 p.m. and 9:00 p.m.
      1. The purpose of the hearing shall be:
        1. To inform the affected owners of realty of the type of the proposed district, the preliminary cost estimates and basis thereof, and general information; and
        2. The election, by those realty owners in attendance, in person or by proxy given to the senior justice of the peace within the area encompassed by the proposed district, by simple plurality vote with the number of votes for each candidate reported, of seven (7) commissioners, whose names shall be transmitted to the court with the petitions.
        1. Each commissioner shall be nominated and elected by position;
        2. Any owner of realty within the proposed district may nominate candidates for commissioner at any time before or during the public meeting;
      1. Each commissioner shall own realty within the boundaries of the proposed district.
    4. The petitions shall not contain the names of proposed commissioners.
    5. On all questions submitted to the realty owners of a district or proposed district, each owner of realty therein shall be entitled to cast one (1) vote.

History. Acts 1941, No. 41, § 1; 1981, No. 510, § 1; A.S.A. 1947, § 20-701.

Case Notes

Cited: Adams v. Highway 10 Water Pipe Line Improv. Dist., 217 Ark. 473, 230 S.W.2d 956 (1950); Reeme v. Natural Gas Imp. Dist., 247 Ark. 983, 448 S.W.2d 647 (1970).

14-92-205. Petition to form district.

  1. Upon the petition of a majority of the number of realty owners within a proposed suburban improvement district, the owners of a majority of the realty in the area of the proposed district and the owners of a majority of the assessed value of the realty within the proposed district, the greater portion of which realty does not lie within the boundaries of a municipality, meaning a city of the first class, city of the second class, or an incorporated town, it shall be the duty of the county court to lay off into a district the territory described in the petition, for the purpose of purchasing, accepting as a gift, constructing, or maintaining waterworks or waterpipes, recreational facilities, systems of gas pipelines, sewers or grading, draining, paving, curbing and guttering streets and highways and laying sidewalks, and establishing, equipping, and maintaining rural fire departments, or for more than one (1) of these purposes and to name as commissioners of the district the seven (7) persons whose names have been transmitted with the petitions as having been elected at a public hearing held prior to the filing of the petitions.
  2. All, or any portion, of any municipality may be included in these districts, if the portion of the area located within the municipalities shall be less than fifty percent (50%) of the area of the entire district. However, no portion of a municipality shall be included in the district unless it shall be found that a majority of the number of owners of realty within the municipality, the owners of a majority of the realty in area within the municipality, and the owners of a majority of the assessed value of the realty within the municipality have petitioned for the formation of the district.
  3. All districts shall be numbered consecutively or else shall receive names selected by the court.
  4. If the court does not act promptly in complying with the terms of this section, or of any other section of this subchapter essential to the creation and operation of the districts, it may be compelled to do so by mandamus.
    1. If land in more than one (1) county is embraced in the proposed district, the petition shall be addressed to the circuit court in which the largest portion of the land lies, and all proceedings shall be had in that circuit court.
    2. All notices in that event shall be published in newspapers published and having a bona fide circulation in each county in which the district embraces land.
    1. Any number of identical petitions may be circulated, and identical petitions with additional names may be filed at any time until the court acts.
    2. A petition under this section shall contain a bold heading stating that a signature on the petition is a vote to create the district.

History. Acts 1941, No. 41, §§ 1, 2; 1953, No. 420, § 1; 1959, No. 170, § 1; 1967, No. 286, § 1; 1969, No. 230, § 1; 1971, No. 263, § 1; 1981, No. 510, §§ 1, 2; A.S.A. 1947, §§ 20-701, 20-702; Acts 2019, No. 1025, § 2.

Amendments. The 2019 amendment added the (f)(1) designation; and added (f)(2).

Case Notes

Applicability.

This section is prospective in its applicability. Murphy v. Cook, 202 Ark. 1069, 155 S.W.2d 330 (1941).

Majority of Owners.

Petition of the majority required by this section is a jurisdictional fact which must be shown before district can be established. Johnson v. Norsworthy, 239 Ark. 545, 390 S.W.2d 439 (1965).

Majority in Area.

Signature of corporate officers in their individual capacities and not on behalf of the corporations did not permit inclusion of corporate lands in determining whether there was a majority in area of property owners and such defect could not be cured by subsequent ratification or substitution. Johnson v. Norsworthy, 239 Ark. 545, 390 S.W.2d 439 (1965).

Majority of Assessed Value.

Where assessor permitted owner of real estate addition to fix the value of lots in the addition, and he fixed such value far in excess of their actual value, such assessment could not have been used in determining whether a majority in value of the property owners had signed the petition. Fisher v. Texarkana Forest Park Paving Dist., 181 Ark. 450, 26 S.W.2d 111 (1930) (decision under prior law).

Signatures.

Where person had signed petition for creation of district and petition had been filed, he could not withdraw his name without leave of court. Reed v. Paving Dist. of Jefferson County, 171 Ark. 710, 286 S.W. 829 (1926) (decision under prior law).

Cited: Adams v. Highway 10 Water Pipe Line Improv. Dist., 217 Ark. 473, 230 S.W.2d 956 (1950); Reeme v. Natural Gas Imp. Dist., 247 Ark. 983, 448 S.W.2d 647 (1970); Cherokee Village Homeowners Protective Asso. v. Cherokee Village Road & Street Improv. Dist., 248 Ark. 1055, 455 S.W.2d 93 (1970).

14-92-206. Hearing on petition and determination.

    1. Upon the filing of a petition as prescribed in § 14-92-205, it shall be the duty of the county clerk to give notice of the filing of it, describing the territory to be affected and calling upon all persons who wish to be heard upon the question of the establishment of the suburban improvement district to appear before the county court on a day to be fixed in the notice, at least thirty (30) days after the filing of a petition.
      1. The notice shall be published one (1) time a week for two (2) weeks in some newspaper published and having a bona fide circulation in the county where the lands affected are situated and, if available, on the website of the county or of the Secretary of State.
      2. This notice may be in the following form:
      1. On the day named in the notice, it shall be the duty of the court to meet and to hear the petition and to ascertain whether those signing it constitute a majority of the number of owners of realty in the proposed district, the owners of a majority of the realty in area of the proposed district, and the owners of a majority of the assessed value of realty in the proposed district.
        1. If the court determines that the majority have petitioned for the improvement, it shall enter its judgment laying off the district as defined in the petition and appoint the commissioners elected at the public hearing held prior to filing the petition.
        2. If the court finds that a majority have not signed the petition, it shall enter its order denying the district.
        1. If any part of the proposed district shall be located within the corporate limits of an incorporated town or city, the court shall make a separate finding on the question of whether a majority of the number of realty owners in the incorporated area, the owners of a majority of the realty in area in the incorporated area, and the owners of a majority of the assessed value of realty in the incorporated area have signed the petition.
        2. The court shall also make a separate finding on the question of whether a majority of the number of realty owners within the unincorporated area of the proposed district, the owners of a majority of realty in area in the unincorporated area of the proposed district, and the owners of a majority of assessed value of realty within the unincorporated area of the proposed district have signed the petition.
        1. If the court determines that the majority have petitioned for the improvement, it shall enter its judgment laying off the district as defined in the petition and appoint the commissioners elected at the public hearing held prior to the filing of the petition.
        2. If the court finds that a majority have not signed the petition, it shall enter its order denying the district.
    1. Any petitioner or any opponent of the petition may appeal from the judgment of the court creating or refusing to create the district. However, the appeal must be taken and perfected within thirty (30) days.
    2. If no appeal is taken within that time, the judgment creating the district shall be final and conclusive upon all persons.
    1. The petition shall state the specific purpose for which the district is to be formed, and the judgment establishing the district shall give it a name, which shall be descriptive of the purpose.
    2. The district shall also receive a number to prevent its being confused with other districts formed for similar purposes.

“Notice is hereby given that a petition has been filed praying for the formation of an improvement district for the purpose of Said petition is on file at the office of the County Clerk of County, where it is open for inspection. All persons desiring to be heard on the question of the formation of said district will be heard by the County Court on the day of , 20 The following lands are affected: (Here give description of lands affected; same may be described by using the largest subdivision possible.) County Clerk”

Click to view form.

History. Acts 1941, No. 41, § 2; 1981, No. 510, § 2; A.S.A. 1947, § 20-702; Acts 2019, No. 1025, § 3.

Amendments. The 2019 amendment added “at least thirty (30) days after the filing of a petition” in (a)(1); in (a)(2)(A), substituted “one (1) time a week” for “once a week” and added “and, if available, on the website of the county or of the Secretary of State”; and substituted “20” for “19” in the form in (a)(2)(B).

Cross References. Notice on formation of improvement districts, § 14-86-301 et seq.

Case Notes

Constitutionality.

The equal protection clause does not require that questions involving the creation, organization, and management of improvement districts be submitted to popular vote. Clem v. Cooper Communities, Inc., 344 F. Supp. 579 (E.D. Ark. 1972).

Appeals.

Judgment of circuit court on appeal from judgment of county court establishing road district was not defective because it stated that the order of the county court “should be affirmed” where the recitals of the judgment had shown that the circuit court heard the case de novo and found that the district was validly organized. Reed v. Paving Dist. of Jefferson County, 171 Ark. 710, 286 S.W. 829 (1926) (decision under prior law).

Persons objecting to regularity of organization of district should have appealed to Supreme Court from judgment of circuit court, and could not bring an action in the chancery court attacking the organization of the district. Moffett v. Texarkana Forest Park Paving, Sewer & Water Dist., 181 Ark. 474, 26 S.W.2d 589 (1930) (decision under prior law).

The question of the validity of a suburban water improvement district could not have been raised over 30 days after the county court order creating the district even though suit attacking correctness of assessment had been filed before 30 days. Mowrey v. Coleman, 224 Ark. 979, 277 S.W.2d 481 (1955).

On appeal it is the duty of the circuit court to approve the order of the county court unless it is shown by the testimony that the county court order is in error, and the burden is on the appellants to make such showing. Bellott v. Weatherly, 229 Ark. 741, 318 S.W.2d 152 (1958).

Where an order forming a suburban improvement district was contested, the provisions of this section requiring that an appeal from such order be taken and perfected applies rather than the six month period allowed by § 16-67-201, since this section is specific legislation relating to suburban improvement districts; however, the question of timely perfection of such appeal, since it is not specified by this section, is controlled by the general statute, § 16-67-201, which requires that the aggrieved party file an affidavit and prayer for appeal with the clerk of the court in which the appeal is taken. Moore v. Mears, 273 Ark. 411, 619 S.W.2d 662 (1981).

Approval by Court.

An order of a county court creating a district constituted an establishment, by the county court, of a highway in accordance with the route outlined in the petition. Newton v. Altheimer, 170 Ark. 366, 280 S.W. 641 (1926) (decision under prior law).

The owners of the majority of the real estate in an area selected by them may not form an improvement district at will, but the proposed purposes for such a district must be submitted to and approved by the county or circuit court. Cherokee Village Homeowners Protective Asso. v. Cherokee Village Road & Street Improv. Dist., 248 Ark. 1055, 455 S.W.2d 93 (1970).

The electoral process does not play any part in the formation, governance, or operation of an improvement district under this section. Clem v. Cooper Communities, Inc., 344 F. Supp. 579 (E.D. Ark. 1972).

Notice.

—In General.

The publication of notice is for advising people having property within the district of the date of hearing on the petition for the formation of the district in order that such property owners may attend and protect their rights, and the publication of the notice is jurisdictional. Loetscher v. Baseline Sewer Imp. Dist., 235 Ark. 636, 361 S.W.2d 257 (1962).

—Description of Lands.

Where all land included in district was accurately described in notice, the fact that a further description which listed the lots by number failed to include one lot would not invalidate the notice. Castle v. Sanders, 160 Ark. 391, 254 S.W. 674 (1923) (decision under prior law).

Irregularity of boundary lines did not invalidate district, there being no evidence to show an arbitrary or colorable inclusion or exclusion of land. Page v. Highway No. 10 Water Pipe Line Improv. Dist., 201 Ark. 512, 145 S.W.2d 344 (1940) (decision under prior law).

—Time Requirement.

Where the first notice was published on Jan. 5, 1961, of a public hearing on a petition for the formation of a suburban sewer improvement district on Jan. 19, 1961, and the second notice was on Jan. 13, 1961, one of the days within the second week, the statutory notice was found to have been published for the full time required by this section, and the publication on the 13th of January of the second notice falls within this section, nothing appearing in the statute that connotes an intention by the legislature that any specific time was to be observed within the second week. Loetscher v. Baseline Sewer Imp. Dist., 235 Ark. 636, 361 S.W.2d 257 (1962).

A property owner is assured of two weeks notice of hearing on petition for the formation of a suburban sewer improvement district in that publication for “two weeks” requires an interval of 14 days between the first publication and the events stated in the notice. Loetscher v. Baseline Sewer Imp. Dist., 235 Ark. 636, 361 S.W.2d 257 (1962).

14-92-207. Board of commissioners generally.

      1. Within thirty (30) days after their appointment, the members of a board of commissioners shall take and file with the county clerk their oath of office, in which they shall swear to support the Constitution of the United States and the Constitution of the State of Arkansas and to discharge faithfully their duties as commissioners in the manner provided by law.
        1. Any commissioner failing to file his oath within this period shall be deemed to have declined the office.
        2. In such instance, the county court shall call a public hearing in the same manner prescribed in § 14-92-204 for the purpose of electing a successor to fill the vacancy under the same procedures described in § 14-92-204.
      1. The board of commissioners shall organize by electing one (1) of its members chairman, and it shall select a secretary.
      2. The board may also employ such agents, employees, engineers, and attorneys as it deems best and fix their compensation and the compensation of the secretary.
    1. The board shall also select some solvent bank or trust company as the depository of its funds, exacting of the depository a bond in an amount equal to the amount of money likely to come into its hands.
  1. No member of the board shall be liable for any damages unless it shall be made to appear that he had acted with a corrupt and malicious intent.

History. Acts 1941, No. 41, §§ 3, 17; 1970 (Ex. Sess.), No. 16, § 1; 1971, No. 360, § 2; 1981, No. 510, § 3; A.S.A. 1947, §§ 20-703, 20-717.

Case Notes

Constitutionality.

Fact that commissioners may have continued in office after road was completed did not render former statute unconstitutional. Morehart v. Mabelvale Rd. Imp. Dist., 178 Ark. 219, 10 S.W.2d 856 (1928) (decision under prior law).

Cited: Cherokee Village Homeowners Protective Asso. v. Cherokee Village Road & Street Improv. Dist., 248 Ark. 1055, 455 S.W.2d 93 (1970).

14-92-208. Interest of commissioners in purchase, acquisition, or donation.

  1. No commissioners, nor the board of commissioners of a suburban improvement district, shall be financially interested, directly or indirectly, in any firm, corporation, or association from which any property, services, materials, or facilities are purchased, acquired, or received by donation for the district, unless it is first submitted to, and approved by, the court having original jurisdiction under which the district was organized; nor shall any commissioners, or the board, enter into any contract with, or accept a donation of property or facilities from, any person with whom they are, directly or indirectly, engaged in business, without court approval as prescribed.
    1. The court may not act upon such matters until after twenty (20) days from the date of first publication of the notice.
      1. The clerk of the court shall give notice of the hearing by publication once each week for two (2) successive weeks.
      2. The notice shall be commenced the week following the date upon which application is made to the court.
  2. In the event any prohibited transaction shall occur or shall have occurred without court approval as prescribed, then, by action commenced in the circuit court in the county in which the larger portion of land within the district is located, any property owner within the district shall have the right, within one (1) year from the date thereof, to require that the purchase, acquisition, or donation be rescinded. Each commissioner participating in the action shall be subject to removal from office as provided in this subchapter.

History. Acts 1941, No. 41, § 3; 1970 (1st Ex. Sess.), No. 16, § 1; 1971, No. 360, § 2; 1981, No. 510, § 3; A.S.A. 1947, § 20-703.

Case Notes

Conflict Not Found.

The fact that persons appointed as commissioners were officers and stockholders of a company owning more than 50% of the land included in the proposed district and organized for the purpose of the development and sale of lands with various improvements did not disqualify them for such appointment in the absence of evidence that they have acted in violation of the statutory provisions. Cherokee Village Homeowners Protective Asso. v. Cherokee Village Road & Street Improv. Dist., 248 Ark. 1055, 455 S.W.2d 93 (1970).

14-92-209. Removal of commissioners — Vacancies.

  1. A commissioner of a suburban improvement district established pursuant to this subchapter may be removed from office as follows:
    1. An owner of realty within the district may petition the county court to call a public hearing for the purpose of the removal of a commissioner named in the petition and the election of a successor;
    2. Upon determining that at least twenty-five percent (25%) of the number of owners of realty within the proposed district have signed the recall petition, the court shall call a public hearing on the matter and shall notify each owner of realty within the proposed district in the manner prescribed by § 14-92-204, except that the notice shall be mailed by first class mail;
    3. Upon the affirmative vote of a majority, but not less than twenty-five percent (25%) of all votes entitled to be cast, of all votes cast by owners in attendance, in person or by proxy, at the public meeting as recorded through the number voting “yea” and the number voting “nay”, a commissioner named in the recall petitions may be removed;
    4. The court shall at the meeting declare the commissioner removed and accept nominations for a successor commissioner;
      1. The successor commissioner shall be nominated by a realty owner in attendance, in person or by proxy, at the public hearing.
      2. The nominee shall meet the qualifications required of the commissioner originally elected; and
    5. A successor commissioner shall be elected from among those so nominated at a subsequent public meeting called and held by the court in accordance with the provisions of § 14-92-204, except that any required notice shall be mailed by first class mail.
  2. A successor commissioner to fill a vacancy on the board of commissioners due to any other reason than proceedings under subsection (a) of this section shall be nominated at a public hearing called by the county court within thirty (30) days of notification of the vacancy, and any required notice shall be mailed by first class mail. The successor commissioner shall be elected at a subsequent public hearing in the same manner as provided in subsection (a) of this section.
    1. The provisions of subsection (a) of this section shall apply to a district in existence on March 16, 1981.
    2. A vacancy created by the recall of a commissioner shall be filled in the manner as provided in subsection (a) of this section.
    1. The provisions of subsection (b) of this section shall apply to a district in existence on March 16, 1981, and which is an improvement district in any city or incorporated town in this state established for the purpose of providing water or sewer services for municipal purposes.
    2. Any other vacancy on the board of commissioners of any other district in existence on March 16, 1981, shall continue to be filled in the manner as provided by law prior to March 16, 1981.

History. Acts 1981, No. 510, § 8; A.S.A. 1947, § 20-743; Acts 1993, No. 492, § 1; 2007, No. 598, § 1; 2011, No. 1225, §§ 3, 4.

Amendments. The 1993 amendment added (c).

The 2011 amendment deleted the (c)(2)(A) designation and (c)(2)(B); and added (d).

14-92-210. Powers of board generally.

In addition to, and not by way of limitation of the powers prescribed in § 14-92-220, the board of commissioners of a suburban improvement district shall have the powers to:

  1. Make and execute all contracts, leases, conveyances, and other instruments of the district;
  2. Join with any other political subdivision, municipality, district, or governmental agency, either state or federal, in the acquisition, construction, maintenance, operation, and financing of any of the facilities, works, or operations authorized by this subchapter or as to the performance of any of its functions;
  3. Establish rules and regulations for the transaction of the district's business and for the services, use, and right to use of its facilities or services, or both, or to effectuate any purpose of this subchapter;
  4. Do all things incidental or auxiliary to the exercise of the express powers granted by this subchapter; and
  5. Perform all actions useful to carry out the purposes of this subchapter, unlimited by any express provision of it.

History. Acts 1941, No. 41, § 3; 1941, No. 41, § 4a, as added by Acts 1971, No. 360, § 1; 1971, No. 360, § 2; 1981, No. 510, § 3; A.S.A. 1947, § 20-704.1.

Case Notes

District's Authority.

Section 14-92-240(c) explicitly sets out the qualifications of commissioners and voters under the statute and unambiguously provides for the number of votes each property owner may cast in the elections; nothing in this section gives the district the authority to alter those requirements, and thus the improvement district in this case acted outside its authority in enacting certain regulations. Roberts v. Holiday Island Suburban Improvement Dist. #1, 2018 Ark. App. 394, 559 S.W.3d 269 (2018).

14-92-211. Bond of contractors.

  1. All contractors shall be required to give bond for the faithful performance of the contracts as may be awarded them, with good and sufficient sureties, in an amount to be fixed by the board of commissioners of a suburban improvement district.
  2. The board shall not remit or excuse the penalty or forfeiture of the bond or the breaches of it.

History. Acts 1941, No. 41, § 14; A.S.A. 1947, § 20-714.

Cross References. Bond of public contractor, § 22-9-401 et seq.

14-92-212. Payments generally — Warrants.

  1. The depository shall pay out no money save upon the order of the board of commissioners and upon a warrant signed by the person designated by the commissioners.
  2. Every warrant shall state upon its face to whom, the amount, and the purpose for which it is issued.
  3. All warrants shall be dated and shall be numbered consecutively, in a record to be kept by the board of the number and amount of each. No warrant shall be paid unless there are in the treasury funds enough to pay all outstanding warrants bearing a lower number.
  4. No warrants shall be increased by reason of any depreciation in the market value thereof, nor shall any contract or warrant be made payable or paid in anything but currency.

History. Acts 1941, No. 41, § 13; 1983, No. 524, § 1; A.S.A. 1947, § 20-713.

14-92-213. Payments to contractor.

  1. It shall be the duty of the board of commissioners of a suburban improvement district to have the amount of work done by any contractor estimated, from time to time, as may be desirable, by the engineer selected by the board.
  2. The board shall draw its warrants in favor of the contractor for not more than ninety percent (90%) of the amount of work so reported, reserving the remainder until it has been ascertained that the work is completed according to contract and is free from liens.

History. Acts 1941, No. 41, § 15; A.S.A. 1947, § 20-715.

Case Notes

Refusal to Pay.

Where district received benefits of contract to construct road, it could not refuse to pay therefor even though contract was illegal. Morehart v. Mabelvale Rd. Imp. Dist., 183 Ark. 411, 36 S.W.2d 68 (1931) (decision under prior law).

14-92-214. Legal services in organizing.

The board of commissioners of a suburban improvement district shall pay a reasonable fee for legal services in organizing the district and for circulating petitions.

History. Acts 1941, No. 41, § 14; A.S.A. 1947, § 20-714.

14-92-215. Sale of unnecessary materials.

The board of commissioners of a suburban improvement district may sell all unnecessary materials and implements that may be on hand and which may not be necessary for the completion of the improvement under way or which may have been completed.

History. Acts 1941, No. 41, § 14; A.S.A. 1947, § 20-714.

14-92-216. Planning by board.

    1. Immediately after their qualification, the board of commissioners of a suburban improvement district shall consider the offer of any gift of improvements or facilities which has been tendered to the district, if there has been such an offer, and shall carefully examine the conditions as to the acceptance of the gift.
    2. The board may employ such engineers, attorneys, or other assistants as they find necessary and shall file a copy of all reports as well as the copy of the offer of gift with conditions incidental thereto and a written copy of the action of the commission relative to the acceptance or the rejection of the offer of gift with the county clerk.
    1. Likewise, in the event the district has been organized for the purpose of purchasing an improvement or facility or for the purpose of constructing an improvement or facility, the board shall form plans relative to the purchase or the construction of the improvement.
    2. To that end the board may also employ such engineers, attorneys, and other assistants as they may find necessary and shall file copies of all pertinent reports and actions by the commissioners with the county clerk.

History. Acts 1941, No. 41, § 5; 1951, No. 115, § 1; 1967, No. 286, § 3; A.S.A. 1947, § 20-705.

Case Notes

Cited: Cherokee Village Homeowners Protective Asso. v. Cherokee Village Road & Street Improv. Dist., 248 Ark. 1055, 455 S.W.2d 93 (1970).

14-92-217. Change of plans.

  1. The board of commissioners of a suburban improvement district may, at any time, alter the plans and specifications.
    1. The changed plans, with the accompanying specifications, shall be filed with the county court.
    2. Notice of the filing shall be given by publication for two (2) weeks in some newspaper issued and having a bona fide circulation in the county.
    1. If by reason of the change of plans the board deems that the assessment of benefits has become inequitable, it shall direct the assessor to make a reassessment.
      1. If any property owner deems that, by reason of the change of plans, his assessment has become inequitable, he may, within two (2) weeks after the last publication of the notice, petition the board to order a reassessment.
      2. The decision of the board upon the property owner's petition shall be final, unless an appeal is taken within ten (10) days to the county court.
  2. In case of reassessment, the reassessment shall be filed, advertised, and equalized as provided for in the original assessment.

History. Acts 1941, No. 41, § 23; A.S.A. 1947, § 20-723.

Case Notes

Changes Allowed.

This section permits only immaterial changes and not material changes in plans. Adams v. Highway 10 Water Pipe Line Improv. Dist., 217 Ark. 473, 230 S.W.2d 956 (1950).

Changes Not Allowed.

Where a water pipeline improvement district changed plans to shorten the pipeline one mile thereby leaving out of the improvement a school district, this would be a material change which would be in violation of this section. Adams v. Highway 10 Water Pipe Line Improv. Dist., 217 Ark. 473, 230 S.W.2d 956 (1950).

14-92-218. Petition by property owners to extend improvements.

  1. In addition to the changes which may be made in the manner provided in § 14-92-217, real property owners sufficient to cause a district to be formed may petition the board of commissioners of a suburban improvement district to apply to the county court that the district be authorized to extend any of its empowered improvements into an area in the district for which existing authority does not appear and to assess the cost thereof on benefited property. However, the signatures in the petition shall represent at least sixty-six percent (66%) of the number of owners of realty in the proposed area, the owners of at least sixty-six percent (66%) of the realty in area in the proposed area, and the owners of at least sixty-six percent (66%) of the assessed value of realty in the proposed area as shown in the latest general tax roll.
  2. The court shall take proceedings for granting such authority in like manner and with like effect as provided in §§ 14-92-205 and 14-92-206, with appropriate changes therefor.
    1. The costs of the proposed additional improvements shall be assessed upon the real property benefited thereby, in the manner and with like effect provided in § 14-92-225 et seq., for an original improvement.
    2. When an existing assessment on any parcel or tract of land is proposed to be enlarged by reason of the changed authority, a reassessment of the parcels so affected shall be had in the manner and with like effect provided in § 14-92-227.
    1. Copies of each notice of hearing before the court or the board required in any proceeding authorized in this section shall be sent by certified mail at least fifteen (15) days and not more than thirty (30) days prior to the hearing, to each owner of real property affected by the proceeding as his name and address appear in the latest county assessment records.
    2. Similar notice may be given for any other hearing authorized under this chapter.

History. Acts 1941, No. 41, § 24, as added by Acts 1971, No. 360, § 4; 1981, No. 510, §§ 6, 7; A.S.A. 1947, § 20-724.

Case Notes

In General.

The purposes for which an improvement district may be organized are succinctly set out in this section. Cherokee Village Homeowners Protective Asso. v. Cherokee Village Road & Street Improv. Dist., 248 Ark. 1055, 455 S.W.2d 93 (1970).

Multi-Purpose Districts.

One district may be created for the purpose of laying a system of water pipes, for the purpose of laying a system of gas pipes, and for the purpose of building a system of electric lines. McCoy v. Holman, 173 Ark. 592, 292 S.W. 999 (1927) (decision under prior law).

14-92-219. Purposes for which district organized.

A suburban improvement district may be organized for any one (1) or more of the following purposes:

  1. To purchase, accept as a gift, or construct a waterworks system or betterments, improvements, and extensions to such waterworks system, either within or without the boundaries of the district, if the property of the district will benefit and to operate and maintain any such waterworks system it may purchase, construct, or own;
  2. To purchase, accept as a gift, or construct, either within or without the boundaries of the district, if the property of the district will benefit, a sewage collection system or a sewage treatment plant or intercepting sewers, outfall sewers, force mains, pumping stations, ejector stations, and all other appurtenances necessary or useful and convenient for the collection or treatment, purification, and disposal, in a sanitary manner, of the liquid and solid waste, sewage, night soil, and industrial waste of the area within the boundaries of the district or adjacent thereto, and to operate and maintain any such sewage system and facilities;
    1. To open, grade, drain, pave, curb, gutter, or otherwise improve streets, roads, highways, and every other way for passage and use of vehicles, including viaducts and underpasses, either within or without the boundaries of the district, if the property of the district will benefit.
    2. Such purpose shall include the acquisition of rights-of-way by purchase or the exercise of the power of eminent domain, and to maintain such streets, roads, highways, and every other way for passage and use by vehicles, lying within the boundaries of the district or beyond the boundaries of the district, if the property of the district will benefit;
  3. To build, purchase, or accept as a gift recreational facilities such as, but not limited to, parks, lakes, golf courses, playgrounds, clubhouses, stadiums, auditoriums, arts and crafts centers, folklore centers, interpretative centers, camping areas, greenbelt areas, and any other facilities to provide for the recreation and cultural needs of the owners of the lands within the district and also to care for, maintain, and operate any such recreational facilities;
  4. To lay and maintain sidewalks;
    1. To lay, own, extend, operate and maintain gas pipelines connecting with gas systems.
      1. Nothing in this subchapter shall be construed to allow the purchase of an existing natural gas system or any part thereof.
      2. Any such gas system shall be subject to the jurisdiction of the Pipeline Safety Division of the Arkansas Public Service Commission and shall be subject to all provisions of the Arkansas Gas Pipeline Code;
  5. To build telephone lines to connect with the telephone systems operating in nearby or adjacent municipalities;
  6. To establish, equip, and maintain rural fire departments, including construction of fire department buildings, purchase of fire trucks, fire boats, and other firefighting equipment;
  7. To own, acquire, construct, reconstruct, extend, equip, improve, maintain, and operate hospitals or to acquire appropriate vehicles and equipment for, maintain, and operate ambulance services;
  8. To own, acquire, construct, reconstruct, extend, equip, improve, maintain, and operate libraries; and
    1. To provide a solid waste management system to adequately provide for the collection and disposal of all solid wastes generated or existing within the boundaries of the district in accordance with the rules and orders of the Arkansas Pollution Control and Ecology Commission.
      1. The governing body of the district may enter into an agreement with one (1) or more municipalities, counties, county solid waste authorities, regional solid waste management districts, private persons, private trusts, or any combination thereof, to provide a solid waste management system or any part of a system for the district.
        1. The district may levy and collect fees and require licenses as determined appropriate to discharge the responsibilities of the district.
        2. Any fees, charges, and licenses shall be based upon a schedule set forth by the district.

History. Acts 1941, No. 41, § 4; 1953, No. 420, § 2; 1967, No. 286, § 2; 1969, No. 230, § 2; 1975 (Extended Sess. 1976), No. 1213, § 1; A.S.A. 1947, § 20-704; reen. Acts 1987, No. 1008, § 1; 1997, No. 1134, § 1; 2005, No. 927, § 1; 2019, No. 315, § 998.

A.C.R.C. Notes. Part of this section was reenacted by Acts 1987, No. 1008, § 1. Acts 1987, No. 834 provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

Amendments. The 1997 amendment rewrote (6).

The 2005 amendment added (11) and made related changes.

The 2019 amendment deleted “regulations” following “rules” in (11)(A).

Case Notes

Cited: Southwest Power Pool, Inc. v. Kanis & Denny Rds. Suburban Water Improvement Dist. No. 349 of Pulaski County, 2016 Ark. 135, 489 S.W.3d 140 (2016).

14-92-220. Powers of districts generally.

  1. Any district, in aid to and furtherance of the purposes prescribed in § 14-92-219, shall have the authority to hire managers and other employees and to pay their salaries incident to the operation and maintenance of any of the improvements and facilities authorized in this subchapter. The district shall also have the authority to acquire and purchase equipment and machinery incident to the operation and maintenance of the facilities and shall be further authorized to do any and all other actions which shall be deemed necessary in order to purchase, construct, accept as a gift, operate, and maintain any and all improvements and facilities authorized in this subchapter.
  2. Any district shall have the power to sell or lease any improvement owned by it to any adjacent or nearby municipality, to an improvement district therein, to public service corporations serving on behalf of the property owners of the district, or to any other corporation, organization, or person. It may make contracts with the inhabitants of nearby municipalities, or it may operate such improvements for water, gas, recreation, or telephone service and may connect sewers with the sewers of any adjacent municipality or of other districts, or carry its sewers to any proper outlet within or without the district.
  3. Any district may accept as a gift any or all of the improvements and facilities authorized in this subchapter upon the assumption of the maintenance and operation of such improvements and facilities. It shall have the authority to effect the assessment of benefits and to levy the necessary tax against such assessment of benefits, as prescribed in this subchapter in order to provide the revenue for the costs of maintenance and operation.

History. Acts 1941, No. 41, § 4; 1953, No. 420, § 2; 1967, No. 286, § 2; 1969, No. 230, § 2; A.S.A. 1947, § 20-704.

Case Notes

Constitutionality.

The powers conferred on improvement districts do not constitute an unconstitutional delegation of legislative authority. Cherokee Village Homeowners Protective Asso. v. Cherokee Village Road & Street Improv. Dist., 248 Ark. 1055, 455 S.W.2d 93 (1970).

In General.

The powers that an improvement district may exercise are succinctly set out in this section. Cherokee Village Homeowners Protective Asso. v. Cherokee Village Road & Street Improv. Dist., 248 Ark. 1055, 455 S.W.2d 93 (1970).

14-92-221. Corporate powers.

Each suburban improvement district shall be a body corporate with power to sue and to be sued, and it shall have a corporate seal.

History. Acts 1941, No. 41, § 3; 1970 (Ex. Sess.), No. 16, § 1; 1971, No. 360, § 2; 1981, No. 510, § 3; A.S.A. 1947, § 20-703.

14-92-222. Right and power of eminent domain.

    1. All improvement districts organized under this subchapter shall have the right of eminent domain in order that they may carry out the purposes of their creation.
    2. This right shall be exercised in the same manner as in the case of railroads, telegraph, and telephone companies but without the necessity of making a deposit of money before entering into possession of the property condemned.
    1. Any district shall have the power of eminent domain for the purposes of:
      1. Condemning any water or sewer utility found within the boundaries of the district which is exempt from the definition of “public utility” as found in § 23-1-101(4);
      2. Securing any lands or rights-of-way needed in making improvements to water or sewer systems owned and operated by that district.
      1. The board of the district shall have the power to enter upon any private property for the purposes stated in subdivision (b)(1) of this section. If the person is damaged and the board cannot agree on the sum to be paid for the damages, the person aggrieved may file his petition in the circuit court of the county setting forth his grievance and asking compensation therefor, making the board a party defendant. The issues in the suit shall be made up as in other cases at law, and the cause shall be tried by a jury, unless dispensed with by the parties. The case shall be advanced on the docket so as to have precedence over all other causes. The judge of the circuit court may hold a special term at any time for the trial of the cause, giving ten (10) days' notice to the parties of the time of holding the special term. The notice may be in writing and shall be served on the parties as a writ of summons is directed to be served unless the notice is waived by the parties, or one of them.
      2. In case an agreement cannot be arrived at between the board of improvement and the owner of the property in relation to the damages claimed, the judge of the court, in vacation, may fix an amount to be deposited with some person to be designated by the court, before the entering upon and taking possession of the property to be used and taken as provided in this subsection. Upon the amount required being deposited and certificate thereof filed in the cause, the work may proceed.

History. Acts 1941, No. 41, § 25; A.S.A. 1947, § 20-725; Acts 1987 (1st Ex. Sess.), No. 37, § 3.

Cross References. Eminent domain by railroad, telegraph, and telephone companies, § 18-15-1201 et seq.

Case Notes

Public Purposes.

The acquisition of recreational facilities and public parks as authorized by this section are for public purposes. Cherokee Village Homeowners Protective Asso. v. Cherokee Village Road & Street Improv. Dist., 248 Ark. 1055, 455 S.W.2d 93 (1970).

14-92-223. Sale of land.

Any land that may be acquired by any improvement district organized under this subchapter may be sold by the board of commissioners for the price and on the terms it deems best.

History. Acts 1941, No. 41, § 28; A.S.A. 1947, § 20-727.

14-92-224. Priority of cases.

All cases involving the validity of suburban improvement districts or the assessment of benefits and all suits to foreclose the lien for taxes shall be deemed matters of public interest and shall be advanced and disposed of at the earliest possible moment, and all appeals from them must be taken and perfected within thirty (30) days.

History. Acts 1941, No. 41, § 21; A.S.A. 1947, § 20-721.

Case Notes

Judicial Review.

The improvement district must act for the benefit of all the affected property owners, and if any property owner feels aggrieved, he has the right to have the decision of the district judicially reviewed. Cherokee Village Homeowners Protective Asso. v. Cherokee Village Road & Street Improv. Dist., 248 Ark. 1055, 455 S.W.2d 93 (1970).

Cited: Pate v. Piney Sewer Improv. Dist. No. 32, 15 Ark. App. 231, 15 Ark. App. 235, 691 S.W.2d 882 (1985).

14-92-225. Assessment of benefits and damages.

    1. In the event the board of commissioners of a suburban improvement district shall have voted to accept any offer of gift, shall have voted to purchase any improvement or facility, or shall have voted to construct any improvement or facility, it shall thereupon appoint an assessor to assess the benefits which will accrue to the real property within the district from the acceptance of the gift of improvement or facilities, the purchase of the improvement or facilities, or the construction of the improvement or facilities.
    2. The assessor shall take an oath that he will well and truly assess all benefits that will accrue to the landowners of the district by reason of the acceptance, purchase, or construction of the proposed improvement or facilities, sometimes referred to as “improvement.” He shall thereupon proceed to assess the lands within the district.
    1. The assessor shall inscribe in a book each tract of land and shall place in one column his valuation of each tract or parcel of land prior to the improvement, which may be marked “Assessed Value of Lands Prior to Improvements,” and in another column he shall place what he thinks will be the value of each tract or parcel of land after the improvement, which may be marked “Assessed Value of Lands After Improvements.”
        1. If the assessed value of land after improvements is greater than the assessed value of land before improvements, as assessed by the assessor for the district, then the difference between the two shall be the assessed benefits that will accrue to each tract by reason of the improvement.
        2. If the assessed value of land, as assessed by the assessor of the district, after improvements are acquired or made is less than the assessed value of land before improvements are acquired or made, as assessed by the assessor for the district, then the difference between the two shall be the assessed damages that will accrue to the particular parcel or tract of land by reason of the improvement.
      1. The assessor shall enter the assessment of benefits or damages opposite the description of each piece of property in appropriate columns, one of which may be marked “Assessed Benefits” and the other may be marked “Assessed Damages,” and in another column the assessor shall show the estimate of the probable cost to the landowner, which may be marked “Estimated Cost.”
    1. The assessment shall embrace not merely the lands, but shall embrace all railroads, tramroads, telegraph lines, telephone lines, pipelines, and other improvements on real estate that will be benefited by the acquiring or making of the improvement.
    2. No assessment shall apply against any pipelines or other improvements which are extensions of or connected to the pipeline distribution system or other improvements within any city adjacent to the district.
    1. The assessor shall place opposite each tract the name of the supposed owner as indicated by the deed records, but a mistake in name shall not vitiate the assessment.
      1. The assessor shall also assess all damages that will accrue to any landowner by reason of the proposed improvement including all injury to lands taken or damaged.
      2. Where the assessor returns no such damages to any tract of land, it shall be deemed a finding by him that no damages will be sustained.
  1. The assessor shall hold his office at the pleasure of the board, which can fill any vacancy in the position of assessor.
  2. In assessing benefits which shall accrue as the result of the acquisition or construction of gas pipelines, the assessor may consider the number of burner tips and the historical and estimated usage of gas with respect to each tract of land assessed.

History. Acts 1941, No. 41, § 5; 1951, No. 115, § 1; 1967, No. 286, § 3; A.S.A. 1947, § 20-705; Acts 1997, No. 1134, § 2.

Amendments. The 1997 amendment added (f).

Cross References. Partition of assessments among several owners of single tract, § 14-86-601.

Case Notes

Constitutionality.

Fact that assessors were given power, in making assessment of benefits, to assess damages that would accrue to any landowner by reason of proposed improvement, including all injury to lands taken or damaged, did not render former statute unconstitutional. Morehart v. Mabelvale Rd. Imp. Dist., 178 Ark. 219, 10 S.W.2d 856 (1928) (decision under prior law).

Challenge of Assessments.

Where a sewer improvement district in 1973 filed its assessment of benefits and damages pursuant to this section preparatory to condemning rights of ways for roads and sewer lines and where property owners failed to thereafter file suit in chancery court within 30 days as required by § 14-92-226, the property owners were not precluded by the 30-day limitations period from asking damages in answer to a condemnation suit filed by the district in 1975, since at the time of the 1975 hearing there was a total want of proof by the district regarding its assessment of benefits and the owners' alleged failure to file a timely challenge. Cleveland v. Gravel Ridge Sanitary Sewer Improv. Dist., 274 Ark. 330, 625 S.W.2d 446 (1981) (decision prior to 1981 amendment of § 14-92-226).

Circuit court erred in granting summary judgment to a water district on a power company's challenge to the reasonableness of a reassessment of benefits and accompanying levy of taxes by the district because the company's commercial facility, an improvement that it made on its property, was connected to the city's waterworks system and thus was not subject to assessment under subdivision (c)(2) of this section. Southwest Power Pool, Inc. v. Kanis & Denny Rds. Suburban Water Improvement Dist. No. 349 of Pulaski County, 2016 Ark. 135, 489 S.W.3d 140 (2016).

Method of Assessment.

Where the assessor testified that he had followed the method of assessments provided in this section and that, in determining the proper basis for assessment of value for benefits to accrue to each piece of property, he considered the value, area, location of the property, the improvements thereon, its relation to other properties, and every other element which might go to make up the sum total of benefits, and there was no evidence that he did not comply with the statutory requirements, the chancellor properly found that the assessor's method of assessment was proper. Pate v. Piney Sewer Improv. Dist. No. 32, 15 Ark. App. 231, 15 Ark. App. 235, 691 S.W.2d 882 (1985).

Nature of Assessments.

A local improvement district is not a “taxing agency” as its levies are special assessments or matured assessments of benefits and interest thereon and it is not a subordinate political agency of the state, so such a district is not bound by statutory provisions for minimum prevailing wages to be paid on works of a “taxing agency.” Wood v. Henderson, 225 Ark. 180, 280 S.W.2d 226 (1955).

Cited: Cherokee Village Homeowners Protective Asso. v. Cherokee Village Road & Street Improv. Dist., 248 Ark. 1055, 455 S.W.2d 93 (1970).

14-92-226. Filing and notice of assessment.

    1. The assessment shall be filed with the county clerk of the county.
        1. The secretary of the board of commissioners shall thereupon give notice of its filing by publication once a week for two (2) weeks in a newspaper published and having a bona fide circulation in the county.
        1. The secretary shall send a copy of the notice by certified letter to each owner of realty within the boundaries of the district.
        2. The letters of notification shall be mailed not less than fifteen (15) days nor more than thirty (30) days prior to the date of hearing. The letter notices shall also advise each property owner of the benefits or damages assessed against all of his property located within the district.
  1. On the day named in the notice, it shall be the duty of the commissioners and assessor to meet together at the place named as a board of equalization and to hear all complaints against the assessment and to equalize and adjust it. Their determination shall be final unless suit is brought in the chancery court to review it.

This notice may be in the following form:

“Notice is hereby given that the assessment of benefits and damages of District Number has been filed in the office of the county clerk of County, and where it is open to inspection. All persons wishing to be heard on said assessment will be heard by the commissioners and the assessor of said district between the hours of 10 a.m. and 4 p.m., at , in City of , Arkansas, on the day of , 19 . Secretary”

Click to view form.

History. Acts 1941, No. 41, § 6; 1981, No. 510, § 4; A.S.A. 1947, § 20-706.

Case Notes

Judicial Review.

Suit in chancery court attacking assessments is prematurely brought before an attempt is made to have assessment corrected by board of equalization. Moffett v. Texarkana Forest Park Paving, Sewer & Water Dist., 181 Ark. 474, 26 S.W.2d 589 (1930) (decision under prior law).

Where a sewer improvement district in 1973 filed its assessment of benefits and damages pursuant to § 14-92-225 preparatory to condemning rights of ways for roads and sewer lines and where property owners failed to thereafter file suit in chancery court within 30 days as required by this section, the property owners were not precluded by the 30-day limitations period from asking damages in answer to a condemnation suit filed by the district in 1975, since at the time of the 1975 hearing there was a total want of proof by the district regarding its assessment of benefits and the owners' alleged failure to file a timely challenge. Cleveland v. Gravel Ridge Sanitary Sewer Improv. Dist., 274 Ark. 330, 625 S.W.2d 446 (1981) (decision prior to 1981 amendment).

14-92-227. Reassessment.

  1. The board of commissioners may, not more often than one (1) time each year, require the assessor to reassess the benefits in a suburban improvement district. However, if the district has incurred any indebtedness or issued bonds, the total amount of assessed benefits shall never be diminished.
    1. The reassessment shall be filed with the county clerk of the county.
        1. The secretary of the board of commissioners shall give notice of its filing by publication one (1) time each week for two (2) consecutive weeks in a newspaper published and having a general circulation in the county.
        2. The form of the notice shall be substantially as follows:
        1. The secretary shall send a copy of the notice by certified letter to each owner of realty within the boundaries of the district whose assessment has increased as a result of the assessment.
        2. The letters of notification shall be mailed not less than fifteen (15) days nor more than thirty (30) days before the date of hearing. The letter notices shall advise each property owner of the benefits or damages assessed against all of his or her property located within the district.
    1. On the day named in the notice, the board of commissioners and assessor shall meet together at the place named as a board of equalization and hear all complaints against the reassessment and equalize and adjust the reassessment.
    2. The determination is final unless suit is brought in court to review it.

“Notice is hereby given that the reassessment of benefits and damages of District Number ___ has been filed in the office of the county clerk of ___ County, and it is open to inspection. All persons wishing to be heard on the reassessment will be heard by the commissioners and the assessor of the district between the hours of 10 a.m. and 4 p.m., at___, in City of___, Arkansas, on the day of___, 20___. Secretary ___”.

History. Acts 1941, No. 41, § 7; A.S.A. 1947, § 20-707; Acts 2015, No. 1116, § 1.

Amendments. The 2015 amendment, in (a), substituted “one (1) time each” for “once a,” substituted “if” for “in the event,” and substituted “has” for “shall have”; rewrote (b); and added (c).

Cross References. Assessments not to be reduced after issuance of bonds, § 14-86-602.

Case Notes

Financial Restraints.

Where district was validly organized, it could not have been restrained from issuing bonds and levying and collecting taxes; the validity of contract for construction of road would not have been involved in such case. Morehart v. Mabelvale Rd. Imp. Dist., 183 Ark. 411, 36 S.W.2d 68 (1931) (decision under prior law).

14-92-228. Levy of tax.

    1. The board of commissioners of a suburban improvement district shall, at the same time that the assessment of benefits is equalized or at any time thereafter, enter upon its records an order, which shall have all the force of a judgment, providing that there shall be assessed upon the real property of the district a tax sufficient to pay the estimated cost of the improvement, with ten percent (10%) added for unforeseen contingencies.
    2. The tax is to be paid by the real property in the district in proportion to the amount of the assessment of benefits thereon and is to be paid in annual installments, not to exceed ten percent (10%) for any one (1) year, as provided in the order.
  1. The tax so levied shall be a lien upon all the real property in the district from the time it is levied and shall be entitled to preference over all demands, executions, encumbrances, or liens, whensoever created, and shall continue until the assessment, with any penalty costs that may accrue thereon, shall have been paid.
    1. The remedy against the levy of taxes shall be by suit in chancery.
    2. The suit must be brought within thirty (30) days from the time of notice that the levy was made, and on the appeal, the presumption shall be in favor of the legality of the tax.
    1. The commissioners shall, promptly after entry of an order levying the tax, publish once a week for two (2) consecutive weeks in some newspaper having general circulation in the district, a notice setting forth the order of levy and warning all persons affected by it that it shall become final unless suit is brought to contest it within thirty (30) days of the date of first publication of the notice.
    2. No property owner shall be barred from contest of the levy within the thirty-day publication period.

History. Acts 1941, No. 41, § 8; 1961, No. 154, § 1; 1970 (Ex. Sess.), No. 16, § 2; A.S.A. 1947, § 20-708; Acts 1989, No. 548, § 1.

Case Notes

Judicial Review.

The improvement district must act for the benefit of all the affected property owners, and if any property owner feels aggrieved, he has the right to have the decision of the district judicially reviewed. Cherokee Village Homeowners Protective Asso. v. Cherokee Village Road & Street Improv. Dist., 248 Ark. 1055, 455 S.W.2d 93 (1970).

14-92-229. Interest on assessments.

The assessment of the benefits shall bear interest at a rate or rates from the time it is equalized, not to exceed that required to service the bonds, or at the maximum interest rate allowed by law if no bonds issue. However, the interest need not be calculated until it is necessary to do so to avoid exceeding the total amount of benefits and interest, or the interest may be first collected.

History. Acts 1941, No. 41, § 9; 1971, No. 360, § 3; 1981, No. 474, § 1; A.S.A. 1947, § 20-709.

14-92-230. Extension and collection of taxes.

    1. When the board of commissioners in a suburban improvement district shall make the levy of taxes, it shall be the duty of the assessor to extend the amount levied and set it opposite each benefit assessed in a column marked “Annual Collection”.
      1. It shall be the duty of the county clerk of the county to extend the taxes annually upon the tax books of the county until the levy is exhausted.
      2. For his or her services, the clerk shall receive a commission of one and one-half percent (1.5%) of the amount so extended.
        1. It shall then be the duty of the tax collector of the county to collect each year the taxes extended upon the books along with the other taxes until the entire levy is exhausted.
        2. For his or her services in making the collections, including prepayments, the collector shall receive a commission of one and one-half percent (1.5%). In the case of prepayments, the maximum commission shall be the lesser of one and one-half percent (1.5%) or fifty dollars ($50.00).
      1. The taxes shall be paid over by the collector to the depository of the district at the same time he or she pays over the county funds.
    1. In counties operating under the unit tax ledger system, the collector shall receive a commission of one and one-half percent (1.5%) for extending the taxes and a commission of an additional one and one-half percent (1.5%) for collecting the taxes.
    1. County clerks and tax collectors are authorized to employ additional deputies to do the increased work imposed by the terms of this subchapter.
    2. They may pay the deputies' salaries up to the sum of three thousand three hundred dollars ($3,300) per annum. However, the salaries shall never exceed the receipts from the commissions allowed by this subchapter.
  1. A property owner shall be required to pay applicable suburban improvement taxes provided in this subchapter as a prerequisite to paying his or her ad valorem real property taxes.

History. Acts 1941, No. 41, § 10; 1951, No. 233, § 1; 1957, No. 331, § 1; A.S.A. 1947, § 20-710; Acts 1991, No. 281, § 1; 2001, No. 1816, § 1.

Publisher's Notes. Acts 1991, No. 281, § 6, provided, in part, that the 1991 amendment to (d) “shall be applicable to suburban improvement district taxes due and payable on or before October 10, 1991.”

Amendments. The 2001 amendment substituted present (b)(1)(A)(ii) for the former, which read: “For his services in making the collections, the collector shall receive a commission of one and one-half percent (1½%).”

Cross References. Advancement of funds to suburban improvement districts by municipalities, § 14-89-801.

14-92-231. Subsequent levies.

  1. If the tax first levied shall prove insufficient to pay the bonds, both the principal and interest issued by the board of commissioners on account of an improvement, as provided in this subchapter, as it shall become due and payable, they shall, from time to time, make such further levies upon the property previously assessed for sums sufficient to complete the improvement and to pay such bonds and interest, which shall be extended and collected in the same manner as the first levy. However, the total levy shall in no case exceed the value of the benefits assessed on the property with interest.
  2. The performance of such duties may be enforced by mandamus at the instance of any person or board interested.

History. Acts 1941, No. 41, § 11; A.S.A. 1947, § 20-711.

14-92-232. Payment of taxes — Enforcement.

  1. All taxes levied under the terms of this subchapter shall be payable at the same time as ad valorem real property taxes.
  2. Delinquent suburban improvement district assessments shall be held by the county collector, and, if not redeemed, the assessments shall be certified to the Commissioner of State Lands for redemption or sale, pursuant to Act 626 of 1983, as amended.
  3. A suburban improvement district may enforce collection of delinquent suburban improvement district assessments by chancery proceedings in the chancery court of the county in the manner as provided for municipal property owners' improvement districts under § 14-94-122.

History. Acts 1941, No. 41, § 12; 1977, No. 463, § 1; A.S.A. 1947, § 20-712; Acts 1991, No. 281, § 2; 1993, No. 782, § 2.

Publisher's Notes. Acts 1991, No. 281, § 6 provided, in part, that the 1991 amendment to this section “shall be applicable to suburban improvement district taxes due and payable on or before October 10, 1991”.

Amendments. The 1993 amendment added (c).

Meaning of “this act”. Acts 1983, No. 626, codified as §§ 26-37-101, 26-37-101 note; 26-37-10226-37-105; 26-37-20126-37-205; and 26-37-30126-37-303.

Cross References. Lien of district may be enforced notwithstanding tax sale to state, § 14-86-1601 et seq.

Payment of improvement district taxes with bonds of district, § 14-86-803.

14-92-233. Notice of delinquency.

  1. County tax collectors shall, at least once annually, send a delinquency notification to each property owner who is delinquent in the payment of the assessed benefits levied by suburban improvement districts formed under this subchapter.
  2. The notice shall be mailed to the last known address of the delinquent property owner and shall include an identification of the property, the amount of the delinquency, and any interest or penalties thereon.

History. Acts 1983, No. 903, § 1; A.S.A. 1947, § 20-745.

14-92-234. Notes, bonds, or evidences of debt.

    1. In order to meet preliminary expenses and to do the work, the board of commissioners may issue negotiable notes or bonds of the suburban improvement district signed by the chair and secretary of the board and bearing such rate or rates of interest as shall be determined by the board and may pledge and mortgage all assessments of benefits of the district and all or any part of the profits of the district derived from its operation of any waterworks, sewer system, gas system, recreational facilities, or hospital to the payment of the notes and bonds.
    2. The board may also issue to the contractors who do the work negotiable evidences of debt bearing interest at the same rate or rates prescribed by the board and secure them in the same manner.
    3. With the consent of the sellers of improvements, as provided in this chapter, it may issue to the sellers negotiable notes or bonds of the district bearing interest at the rate or rates prescribed by the board covering all or a portion of the purchase price of the improvements and secure the notes or bonds in the same manner as provided in this section.
    4. As further security for the payment of any such indebtedness, the members of the board of any district organized for the construction of waterworks or water pipes, tanks, and wells, sewer systems, gas pipelines, recreational facilities, or hospitals may be resolved to establish the water or sewer rates, rates for use of gas pipelines, rates for use of recreational facilities, or rates for use of the hospitals to be collected from the users thereof. The board may mortgage any or all of its property, including the system, buildings, equipment, lands, leases, easements, and rights-of-way.
  1. No bonds issued under the terms of this subchapter shall run for more than thirty (30) years, and all issues of bonds may be divided so that a portion thereof may mature each year as the assessments, revenues, or profits from the systems are collected, or they may all be made payable at the same time, with proper provision for a sinking fund.
  2. The bonds shall not be sold for less than par without the unanimous vote of the board.

History. Acts 1941, No. 41, § 16; 1967, No. 286, § 4; 1969, No. 230, § 3; 1970 (Ex. Sess.), No. 53, § 1; 1981, No. 703, § 3; A.S.A. 1947, § 20-716; Acts 1997, No. 1134, §§ 3, 4; 2007, No. 602, § 1.

Amendments. The 1997 amendment inserted “gas system” following “sewer system” in (a)(1); and, in (a)(4), inserted “gas pipelines” following “sewer systems” and inserted “rates for use of gas pipelines” following “water or sewer rates.”

Case Notes

Bonds.

Complaint filed by property holders attacking constitutionality of refunding bonds, issued by district created under former statute, was properly dismissed for lack of equity when the complaint contained no exhibits sufficient in character to constitute proof of illegality and where only proof at the trial was that the plaintiffs were property holders. Pruitt v. Pine Bluff Water & Sewer Extension Dist., 214 Ark. 64, 214 S.W.2d 489 (1948).

Where resident of water and sewer improvement district filed a class suit to prevent sale of bonds, on the ground that certain resolutions and pledge of the board delegated authority to a trustee not authorized, the court would not presume that, if the contingencies arose, the actual procedure followed would be contrary to that authorized; hence complaint was dismissed for lack of equity. Roscoe v. Water & Sewer Improv. Dist., 216 Ark. 109, 224 S.W.2d 356 (1949).

Cited: Cherokee Village Homeowners Protective Asso. v. Cherokee Village Road & Street Improv. Dist., 248 Ark. 1055, 455 S.W.2d 93 (1970).

14-92-235. Payment of bonds.

    1. All bonds issued by a board of commissioners for a suburban improvement district under the terms of this subchapter shall be secured by a lien on all real property in the district that will be benefited by the acquiring or making of the improvement financed with the proceeds of such bonds.
      1. The board shall see to it that a tax is levied annually and collected under the provisions of this subchapter, so long as it may be necessary to pay any bond issued or obligation contracted under its authority.
      2. The making of said assessment or levy and collection may be enforced by mandamus.
      1. If any bond or interest coupon on any bond issued by the board is not paid within thirty (30) days after its maturity, it shall be the duty of any court of competent jurisdiction, on application of any holder of the bond or interest coupon so overdue, to appoint a receiver to collect the taxes and an assessor to reassess the benefits, if necessary.
      2. The proceeds of the taxes and collections shall be applied after payment of costs, first to overdue interest and then to payment pro rata of all bonds issued by the board which are then due and payable.
      1. The receiver may be directed, by suit, to foreclose the lien of taxes on lands.
      2. The suits so brought by the receiver shall be conducted in all matters as suits by the board as provided in this subchapter and with like effect, and the decree and deeds therein shall have the same presumption in their favor.
  1. When all the sums have been paid, the receiver shall be discharged and the affairs of the district conducted by the board as provided in this subchapter.

History. Acts 1941, No. 41, § 19; A.S.A. 1947, § 20-719; Acts 1997, No. 1134, § 5.

Amendments. The 1997 amendment rewrote (a)(1).

Cross References. Receiver of district may redeem from state, § 14-86-1602.

14-92-236. Public contributions to road or street improvement districts.

    1. The county court is authorized to turn over to any road or street improvement district organized under this subchapter that proportion of the road tax, as may be just and equitable, or any portion of the automobile or gasoline tax.
    2. The county court is further authorized to contribute these funds in money or scrip to the expense of the improvement from the general revenue of the county as it may deem appropriate.
    1. Any such district is authorized to receive any part of the funds that may be set aside by the federal government for the improvement of public roads and any that may be set aside by the government of this state for aid in the improvement of public roads.
    2. The board of commissioners of the district and the Arkansas Department of Transportation are authorized and directed to take such action as may be necessary to secure any of these funds for these districts as an improvement of a part of the public roads of the state in which the state has an interest.

History. Acts 1941, No. 41, § 27; A.S.A. 1947, § 20-726; Acts 2017, No. 707, § 25.

Amendments. The 2017 amendment substituted “Department of Transportation” for “State Highway and Transportation Department” in (b)(2).

14-92-237. Dissolution or conversion of district — Definition.

    1. After all bonds, notes, or other evidences of indebtedness plus all interest thereon shall have been paid in full, a suburban improvement district may, by unanimous vote of the board of commissioners, be dissolved and all future levies and assessments cancelled, the board relieved from further duties, and the surplus funds of the district distributed in accordance with the procedures set forth in subsections (b) and (c) of this section, if title to and control of the facilities constructed by the district have been taken over or assumed by any political subdivision, municipal utility commission or agency, or any regulated public utility, or a suburban improvement district may, by unanimous vote of the board of commissioners, be converted into a fire protection district and all future levies and assessments cancelled, the board relieved from further duties, and any remaining funds and any other property of the district transferred to the new entity in accordance with the procedures set forth in subsection (d) of this section.
    2. The districts are authorized, at the discretion of the commissioners, to enter into repair and maintenance agreements or contracts and to expend funds of the districts for these purposes.
  1. Any improvement district created pursuant to this subchapter may be dissolved in the same manner it was created. However, if any district having outstanding bonds or other indebtedness is dissolved, the assessed benefits being levied at the time of dissolution shall continue to be levied and collected until the outstanding bonds or other indebtedness is paid.
      1. If the commissioners vote to dissolve the district or the district is dissolved by vote of the realty owners at a public hearing, the board shall first pay from surplus funds all debts of the district, including any reasonable legal and other expenses incurred in connection with the dissolution, and dispose of the remaining assets under subdivision (c)(1)(B) of this section or subdivision (c)(2) of this section.
        1. The commissioners shall convert all assets into cash and may refund all remaining funds of the district, pro rata, to the property owners who hold title to the property in the district at the time the refund is made.
          1. The pro rata refund to the property owners shall be made on the basis of the most recent assessment or reassessment of benefits on the parcels of property before dissolution and shall be in the same proportion that the assessed benefits of each individual parcel of property bears to the total of the assessed benefits of all the property in the district.
          2. A property or owner whose property is delinquent in any sum for district assessments, penalties, or interest, at the time the refund is made shall not be counted in calculating the pro rata distribution, or receive any portion of the refund.
      2. Within ninety (90) days after the distribution of the surplus funds has been completed, the board shall file a copy of the resolution of dissolution and a financial statement of the district, verified by all commissioners, in the office of the county clerk in the county in which the district is located.
      1. The commissioners may transfer all remaining cash and other monetary assets and any real property and personal property to a school district located within ten (10) miles of any boundary of the district.
        1. The transfer shall be made under a valid contract between the suburban improvement district and the school district.
          1. The contract shall be supported by adequate consideration.
          2. As used in this section, “adequate consideration” includes public advantage that promotes a general, suitable, and efficient system of free public schools.
      2. Within ninety (90) days after the transfer of all remaining funds and property has been completed, the board shall file a copy of the resolution of dissolution and a financial statement of the suburban improvement district, verified by all commissioners, in the office of the county clerk in the county in which the suburban improvement district is located.
    1. Any improvement district created pursuant to this subchapter solely for the purposes of providing fire protection services may be converted into a new fire protection district under § 14-284-201 et seq., and shall, after the conversion, be governed under the authority of that law. However, if a district has any outstanding bonds or other indebtedness, it shall not be converted until the outstanding bonds or other indebtedness is paid.
    2. In the event the commissioners vote to convert the district, the board shall choose a date certain of not less than sixty (60) days nor more than twelve (12) months at which time the conversion shall become effective and shall notify the county court of the county in which the district is located that the board has voted to convert the district and shall specifically define the area proposed to be included in the new fire protection district. After verifying that the commissioners have voted unanimously to convert the district to a proposed fire protection district and that there is no outstanding indebtedness for the district, the county court shall enter an order establishing the district as described in the notice by the board and establishing the time and place of a public meeting to be held within the district to elect the new commissioners of the fire protection district as is otherwise provided by law.
    3. After paying all debts of the district, including any reasonable legal and other expenses incurred in connection with the conversion, the board shall transfer any and all remaining cash and other monetary assets and any real and personal property to the new district on the effective date of the conversion. All delinquent assessments of the district and any debts owed to the district shall become debts to the new district and shall be subject to collection by the new district in accordance with its powers and authority.
    4. Within ninety (90) days after the transfer of any and all remaining funds and property has been completed, the board shall file a copy of the resolution of conversion and a final financial statement of the district, verified by all commissioners, in the office of the county clerk in the county in which the district is located. The fire protection district shall be deemed to have been formed upon the date of its conversion from a suburban improvement district.

History. Acts 1941, No. 41, § 18; 1963, No. 150, § 1; 1967, No. 286, § 5; 1981, No. 510, § 5; A.S.A. 1947, § 20-718; Acts 1997, No. 323, § 1; 2009, No. 451, § 1.

Amendments. The 1997 amendment added the language beginning “or a suburban improvement district may, by unanimous vote of the board of commissioners” to the end of (a)(1); and added (d).

The 2009 amendment redesignated (c)(1), in (c)(1)(A) deleted “shall convert all assets into cash and” following “the board” and inserted “and dispose of the remaining assets … (c)(2) of this section”, inserted “convert all assets into cash and may” in (c)(1)(B)(i), inserted (c)(2), and made related and minor stylistic changes.

Case Notes

Abolishment by Legislature.

The legislature could not abolish an individual improvement district established under a general law. Raines v. Bolick, 183 Ark. 832, 39 S.W.2d 309 (1931) (decision under prior law).

14-92-238. Lien for preliminary expenses.

  1. In case, for any reason, the improvement contemplated by any suburban improvement district organized under this subchapter is not made, the preliminary expense shall be a first lien upon all the land in the district and shall be paid by a levy of a tax thereon upon the assessed value for county and state taxation.
  2. The levy shall be made by the chancery court of the county and shall be collected by a receiver to be appointed by the court.

History. Acts 1941, No. 41, § 22; A.S.A. 1947, § 20-722.

Case Notes

Constitutionality.

This section is not unconstitutional because it does not provide that each landowner be served with personal notice of the proceeding to determine the district's preliminary expenses, since no such notice is necessary; in a dispute between an improvement district and its creditors, the district's board of commissioners represents the district. Harrill v. Board of Comm'rs, 282 Ark. 348, 668 S.W.2d 538 (1984).

Jurisdiction.

This section is not invalid as conferring jurisdiction on the chancery court to levy a tax since the chancellor is not vested with any discretion in the levy of the tax; the chancery court has jurisdiction to determine the preliminary expense because it is a first lien on the land, a matter traditionally within the jurisdiction of a court of equity; but, once the amount of the district's debt for preliminary expenses has been determined, the computation of the tax is merely a matter of distributing the burden over the total assessed value of the property within the district. Harrill v. Board of Comm'rs, 282 Ark. 348, 668 S.W.2d 538 (1984).

Notice.

Where landowners did not show that their position differed in any pertinent respect from that of other landowners who contested assessment of benefit and, moreover, their petition to intervene and their proposed complaint were considered at a hearing at which they were specifically given the opportunity to proffer whatever proof they may have had and they presented no evidence to show that the absence of personal notice prejudiced them in any way, they had notice and an opportunity to be heard, so personal notice to each landowner was not required. Harrill v. Board of Comm'rs, 282 Ark. 348, 668 S.W.2d 538 (1984).

Preliminary Expenses.

Judgment was reversed and the case was remanded in engineer's breach of contract case against defendant improvement district because the trial court had to determine the portion of compensatory damages awarded that qualified as “preliminary expenses” and, hence, were subject to a tax levy against the improvement district's land. Perkins v. Cedar Mt. Sewer Improvement Dist. No. 43, 360 Ark. 50, 199 S.W.3d 667 (2004).

Although all of the work performed by an engineer was preliminary to the construction phase of a sewer improvement project, the engineer had yet to complete all of the work required by the contract; once the construction began and the contract was completed, the preliminary expenses under this section would merge into the general cost of the improvement. Perkins v. Cedar Mt. Sewer Improvement Dist. No. 43, 360 Ark. 50, 199 S.W.3d 667 (2004).

Protests.

Every landowner is given the opportunity to protest when his land is assessed for general taxation; a second opportunity need not be given for them to protest valuations for suburban improvement districts pursuant to this section. Harrill v. Board of Comm'rs, 282 Ark. 348, 668 S.W.2d 538 (1984).

14-92-239. Continued existence of district.

Suburban improvement districts shall not cease to exist upon the acquiring, construction, or completion of the improvement but shall continue to exist for the purpose of preserving, maintaining, and operating the improvement, replacing equipment, paying salaries to employees, and performing any other functions or services authorized in this subchapter. To this end, the board of commissioners may, from time to time, make such additional levies based upon the assessment of benefits as may be necessary for these purposes. However, the amount of the total levies shall not exceed the assessed benefits and interest thereon.

History. Acts 1941, No. 41, § 18; 1953, No. 420, § 3; 1963, No. 150, § 1; 1967, No. 286, § 5; A.S.A. 1947, § 20-718.

Case Notes

Constitutionality.

Provision that districts shall not cease to exist upon completion of the improvement, but may continue for the purpose of preserving and keeping the district in repair, is authorized under the constitution. Murphy v. Cook, 202 Ark. 1069, 155 S.W.2d 330 (1941).

Sale of Improvements.

Since improvement district could build a pipeline and then sell it, it could also contract to sell the pipeline before it was built. Page v. Highway No. 10 Water Pipe Line Improv. Dist., 201 Ark. 512, 145 S.W.2d 344 (1940) (decision under prior law).

14-92-240. Districts of less than six thousand lots — Alteration of number of and method of selecting commissioners.

  1. Any suburban improvement district which contains fewer than six thousand (6,000) lots and which selects successor commissioners by a vote of the remaining commissioners may alter the number and method of selection of members of the board of commissioners of the district pursuant to this section.
    1. Any property owner in the suburban improvement district may make a written request for an election on the question of whether to change the method of selecting the board of commissioners of the district. The request shall be filed with a quorum court member whose district includes all or part of the suburban improvement district.
    2. The property owner filing the request shall be responsible for all costs of the election and any notice required under subsection (b) of this section.
      1. Within forty-five (45) days after receiving the request, the quorum court member shall mail, by first class mail, ballots to all property owners in the district, along with a copy of this section.
      2. The date for returning ballots shall be set by the quorum court member and shall not be less than twenty (20) days after the date he or she mailed the ballots to property owners.
      3. Ballots shall not be valid unless signed by the property owner and mailed within the time allowed.
    3. Two (2) votes shall be awarded for each property. The interests of time-share owners shall be voted by the time-share owners' association on the same basis.
    4. A majority of the votes cast on the issue shall be required for passage of the measure.
    5. The quorum court member who conducted the election shall notify the property owners of the results of the election. If the measure passes, the notice shall include the notice of the meetings for nomination and election.
    6. The commissioners serving on the board at the time of the approval of the measure shall continue to serve until a new board is elected.
      1. Not more than sixty (60) days nor less than thirty (30) days after the measure is approved, the quorum court member who conducted the election under subsection (b) of this section shall hold a meeting to accept nominations for the new commissioners. Nominations for commissioners shall be made by property owners.
      2. The commissioners shall be elected, from among those nominated, at a subsequent public meeting to be held not less than thirty (30) days after the meeting to nominate commissioners.
      3. Notice of the meetings shall be mailed to each property owner at least thirty (30) days prior to the meeting to nominate comissioners.
      4. The notice shall include the following information:
        1. The time, place, and date of the meetings to nominate and elect a new board of commissioners;
        2. How to request an absentee ballot; and
        3. The qualifications for voting in the election.
    1. Each property owner in attendance at the meeting to nominate shall be entitled to nominate one (1) district resident property owner. Each property owner shall be entitled to one (1) vote for each position of commissioner to be filled. A property owner may cast his or her vote in person at the meeting conducted to elect commissioners or may vote by an absentee ballot. Absentee ballots must be received prior to the meeting held to elect commissioners. Any absentee ballot may be requested by any property owner.
      1. A meeting shall be held annually to nominate successor members, and a subsequent meeting shall be held to elect successor members.
      2. The annual meetings shall be conducted by the board.
      3. The same notice requirements as for the initial meetings for nomination and election of commissioners shall apply to the annual meetings for nomination and election of commissioners.
    2. The cost of the election held to select commissioners under this subsection shall be borne by the district.
    1. The new board of commissioners shall consist of five (5) members, who shall serve staggered terms of three (3) years.
    2. The terms of office of initial members shall be determined as follows:
      1. The individuals receiving the highest and second highest number of votes shall serve an initial term of three (3) years;
      2. The individuals receiving the third and fourth highest number of votes shall serve an initial term of two (2) years; and
      3. The individual receiving the fifth highest number of votes shall serve an initial term of one (1) year.
    3. If two (2) commissioners are to be elected at an annual meeting, the individuals receiving the highest and second highest number of votes shall be elected. If one (1) commissioner is to be elected at an annual meeting, the individual receiving the highest number of votes shall be elected.
      1. Vacancies occurring on the board shall be filled until the next annual election by a majority vote of the remaining commissioners.
      2. At the annual election, the position shall be filled for the remainder of the unexpired term. If two (2) commissioners are to be elected at the annual meeting, the individual receiving the second highest number of votes shall fill the vacancy for the unexpired term. If three (3) commissioners are to be elected at the annual meeting, the individual receiving the third highest number of votes shall fill the vacancy for the unexpired term.
    4. Whenever any member of the board fails to attend a majority of the meetings of the board during any six-month period, the board shall declare the position vacant, and the position shall be filled in the same manner as by this section for other vacancies.
  2. Whenever notice is required under this section, the notice shall be given by first class mail.

History. Acts 1993, No. 524, § 1; 1993, No. 1138, § 1.

Amendments. The 1993 amendment by No. 1138, which specifically amended Acts 1993, No. 524, rewrote (c)(2).

Case Notes

District's Authority.

Subsection (c) of this section explicitly sets out the qualifications of commissioners and voters under the statute and unambiguously provides for the number of votes each property owner may cast in the elections; nothing in § 14-92-210 gives the district the authority to alter those requirements, and thus the improvement district in this case acted outside its authority in enacting certain regulations. Roberts v. Holiday Island Suburban Improvement Dist. #1, 2018 Ark. App. 394, 559 S.W.3d 269 (2018).

Property Owner.

While timeshare owners do not receive an individual tax bill, the property itself is assessed real property taxes by the assessor and improvement-district assessments, which are then paid by the timeshare owners through the owners association; thus, a timeshare owner owns property subject to taxation and thereby satisfies the definition of a “property owner” entitled to individual notice of commissioner elections under subsection (c) of this section, and each timeshare owner is entitled to one vote for each commissioner position to be filled. Roberts v. Holiday Island Suburban Improvement Dist. #1, 2018 Ark. App. 394, 559 S.W.3d 269 (2018).

Subchapter 3 — Consolidated Systems for Joint Operation

Preambles. Acts 1959, No. 262 contained a preamble which read:

“WHEREAS, There are many improvement districts organized under the authority of the suburban improvement district laws and the municipal improvement district laws that are contiguous or adjacent and which can be more efficiently operated, maintained and extended under a central control; and

“Whereas, the improvements originally contemplated by the organization of the districts have been constructed and completed, but by reason of growth of the community the facilities are inadequate and should be enlarged and extended, requiring additional capital;

“Now, therefore….”

Effective Dates. Acts 1959, No. 262, § 10: Mar. 25, 1959. Emergency clause provided: “In order to secure efficiency and economy in the operation of water and sewer services and to promote the health and comfort of residents of such districts, there is a need for the authorization granted by this Act, and therefore an emergency is declared; and this Act, being necessary for the preservation of the public peace, health and safety, shall take effect and be in force upon its passage and approval.”

14-92-301. Authority to contract.

  1. Where there are contiguous or adjacent districts organized under the suburban improvement district laws or the municipal improvement district laws for either water, sewer or gas pipeline services, or any combination thereof, it shall be permissible for all or any two (2) or more of such districts, suburban, municipal, or any combination thereof, to enter into a contract with each other for the joint operation, maintenance, improvement, enlargement, and betterment of their respective systems or of the consolidated system, to be paid for by charges for the services.
    1. Any such district which has paid its outstanding bonds in indebtedness, but which has not been turned over to the municipality for operation, may join in contracts for joint operation.
    2. Any facilities constructed by any districts outside their boundaries shall be included in the consolidated systems.

History. Acts 1959, No. 262, § 1; A.S.A. 1947, § 20-732; Acts 1997, No. 1134, § 6.

Amendments. The 1997 amendment substituted “either water, sewer or gas pipeline services, or any combination thereof” for “either water or sewer services, or both” in (a).

14-92-302. Commission members.

    1. When two (2) or more districts enter into a contract described in § 14-92-301, they shall jointly petition the county judge of the county in which the districts lie to appoint a commission of three (3) members, all of whom shall be property owners and electors within the territory affected.
    2. In the event there are more than two (2) districts joining in the petition, no two (2) of the commissioners shall be appointed from the same district.
  1. The members of the commission shall proceed to organize by:
    1. First taking the oath of office as prescribed for a commissioner of a suburban improvement district;
    2. Electing a chairman and a secretary; and
    3. Selecting a name for the consolidated system.
    1. The commission members shall have the authority to carry out the powers conferred by this subchapter.
    2. In all other respects, the commission shall be governed by and have all the authority of § 14-234-301 et seq.

History. Acts 1959, No. 262, § 4; A.S.A. 1947, § 20-735.

14-92-303. Authority as body politic.

  1. Any consolidation of improvement districts shall be a body politic as a governmental and political subdivision of the state.
  2. The consolidated systems shall exercise the authority conferred in this subchapter according to the provisions, applicable and not in conflict herewith, of § 14-234-201 et seq. for the details of the issuance of revenue bonds, the pledge in the resolution of the commissioners, the determination of revenue for the payment of bonds, depreciation account, audits, rights of bondholders, and all other matters connected therewith.

History. Acts 1959, No. 262, § 2; A.S.A. 1947, § 20-733.

14-92-304. Resolution for financial matters.

  1. After the execution of the contract for consolidation, the commissioners provided for in § 14-92-302 shall adopt a resolution setting forth their estimate of the cost of retiring outstanding bond issues, together with the cost of the contemplated improvements and betterments, and a brief description thereof, and provide for the issuance of revenue bonds including the amount, rate of interest, time and place of payment, and other details connected with them.
  2. The resolution shall also:
    1. Declare that a statutory mortgage lien shall exist upon the property of the consolidated system;
    2. Fix the minimum rates to be collected prior to the payment of the bonds; and
    3. Pledge the revenues derived from its services for the purpose of paying the bonds and interest.

History. Acts 1959, No. 262, § 2; A.S.A. 1947, § 20-733.

14-92-305. Notice and hearing on bonds.

  1. After the adoption of the resolution, it shall be published once in a newspaper published in the county where the system lies. If there is no newspaper so published, then the resolution shall be posted in at least three (3) public places in the county, with a notice to all persons concerned stating that the resolution has been adopted, that the consolidated system contemplates the issuance of the bonds so described, and that any person interested may appear before the county judge of the county upon a certain date, not less than ten (10) days subsequent to the publication or posting, to present protests.
  2. The judge shall hear all objections and suggestions and take such action as he shall deem proper in the premises.

History. Acts 1959, No. 262, § 3; A.S.A. 1947, § 20-734.

Case Notes

Judicial Review.

The district must act for the benefit of all the affected property owners, and if any property owner feels aggrieved, he has the right to have the decision of the improvement district judicially reviewed. Cherokee Village Homeowners Protective Asso. v. Cherokee Village Road & Street Improv. Dist., 248 Ark. 1055, 455 S.W.2d 93 (1970).

14-92-306. Borrowing of money.

  1. Consolidated systems may borrow money to pay and discharge any outstanding bond issues and indebtedness of the districts joining in the consolidations and may borrow money also for improvement, enlargement, and betterment of the facilities of the consolidated systems.
  2. To accomplish these purposes, the consolidated systems may issue negotiable coupon bonds or certificates of indebtedness evidencing the money so borrowed, to:
    1. Be secured solely by a pledge of the net revenues derived from the operation of the facilities;
    2. Bear interest not to exceed six percent (6%) per annum;
    3. Mature at such times and places as the issuer shall decide best, but in no event to mature later than forty (40) years after date of issue;
    4. Be issued with such terms of payment, call provisions, and interest rates as the issuer may decide best; and
    5. Be sold with the privilege of conversion to lower interest rates.

History. Acts 1959, No. 262, § 1; A.S.A. 1947, § 20-732.

14-92-307. Schedule of rates.

The commission of the consolidated systems shall have the power to fix the schedule of rates for its services.

History. Acts 1959, No. 262, § 6; A.S.A. 1947, § 20-737.

14-92-308. Use of net revenues.

  1. The net revenues from a joint operation shall be used first to pay the principal and interest as they mature of revenue bonds issued under this subchapter.
  2. Any remaining net revenues may be used to provide funds or pay bonds and interest issued for improvements, extensions, and betterments.

History. Acts 1959, No. 262, § 5; A.S.A. 1947, § 20-736.

14-92-309. Extension of facilities.

    1. Consolidated systems may extend facilities to serve adjacent or nearby areas without applying for a certificate of convenience and necessity.
    2. These systems shall not be limited by the original boundaries of the districts joining in the consolidation.
  1. The operations shall be a governmental function of the consolidated systems, and they may not be required to so extend their services.

History. Acts 1959, No. 262, § 7; A.S.A. 1947, § 20-738.

14-92-310. Right of eminent domain.

For the purpose of carrying out the provisions of this subchapter, the consolidated systems shall have the right of eminent domain as is provided in §§ 18-15-301 —18-15-307.

History. Acts 1959, No. 262, § 8; A.S.A. 1947, § 20-739.

Subchapter 4 — Sale of Property by District

14-92-401. Petition by landowners.

    1. The owners of a two-thirds (2/3) majority in value as shown by the last county assessment of the real property within any suburban improvement district may, by written petition, require the board of commissioners of the district to sell all or any portion of the real or personal property, or both, owned by the district.
      1. The petition shall specify with reasonable certainty what property is to be sold and shall stipulate the sale price and may specify such other terms and conditions of the sale as to the petitioners may seem desirable.
      2. The sale price shall in no event be a sum less than the amount necessary to pay all the outstanding secured indebtedness against the property to be sold.
  1. Upon the filing of the petition, the board shall give notice by publication once a week for two (2) weeks in some newspaper having a general circulation throughout the district, advising the owners of real property within the district that on a day therein named the commissioners will hear the petition and determine whether those signing it constitute a two-thirds (2/3) majority in value of the owners of real property within the district.
    1. At the meeting named in the notice, the owners of real property within the district shall be heard before the board which shall determine whether the signers of the petition constitute a two-thirds (2/3) majority in value.
      1. The finding of the commissioners shall be conclusive, unless within thirty (30) days thereafter, suit is brought to review its action in the chancery court of the county in which the district was organized.
      2. In determining whether those signing the petition constitute a two-thirds (2/3) majority in value of the owners of the real property within the district, the commissioners and the court shall be guided by the record of deeds in the office of the recorder of the county and shall not consider any unrecorded instrument.

History. Acts 1965, No. 377, § 1; A.S.A. 1947, § 20-740.

Case Notes

Judicial Review.

The improvement district must act for the benefit of all the affected property owners, and if any property owner feels aggrieved, he has the right to have the decision of the district judicially reviewed. Cherokee Village Homeowners Protective Asso. v. Cherokee Village Road & Street Improv. Dist., 248 Ark. 1055, 455 S.W.2d 93 (1970).

14-92-402. Procedure for sale.

Upon determination of the sufficiency of the petition, the board of commissioners shall proceed to sell the property which the property owners have petitioned to have sold, subject to the terms of the petition.

History. Acts 1965, No. 377, § 2; A.S.A. 1947, § 20-741.

14-92-403. Provisions cumulative.

This subchapter shall not be deemed to repeal any other legislation authorizing the sale of improvement district property, but shall be cumulative to all such existing legislation.

History. Acts 1965, No. 377, § 3; A.S.A. 1947, § 20-741n.

Subchapter 5 — Systems Turned Over to Municipalities

Preambles. Acts 1959, No. 146, contained a preamble which read:

“WHEREAS, Due to the rapid growth of suburban housing, many of the areas adjacent to municipalities have organized improvement districts under the suburban improvement district law and have been collecting assessments of benefits in addition to the charges for the services of the facility constructed, and it is to the best interests of the residents of both the suburbs and the municipality to have the management and operation of the facilities; and

“Whereas, The municipalities may operate their water and sewer facilities on a revenue basis and are able to pay the bonds therefor without levying a tax on an assessment of benefits, and can thus effect a saving to the property owners and at the same time produce a more efficient service by the facilities; Now, therefore ….”

Effective Dates. Acts 1959, No. 146, § 3: Mar. 3, 1959. Emergency clause provided: “In order to secure efficiency and economy in the operation of water and sewer services and to promote the health and comfort of residents adjacent to a municipality, there is a need for the authorization granted by this Act, and therefore an emergency is declared and this Act, being necessary for the preservation of the public peace, health and safety, shall take effect and be in force upon its passage and approval.”

14-92-501. Applicability.

Any municipality that has a population of twenty-five thousand (25,000) or more according to the last federal census shall be entitled to exercise the authority conferred by this subchapter.

History. Acts 1959, No. 146, § 1; A.S.A. 1947, § 20-730.

14-92-502. Water or sewer systems.

  1. In those cases where improvement districts have been organized under the suburban improvement district law, or any consolidation of suburban and municipal improvement districts, either for furnishing of water or sewer services, or both, and all, or any part, of it lies outside a municipality within the class affected by this subchapter which desires to operate it as a municipal waterworks or a municipal sewer system, the boards of commissioners of the suburban district, in order to secure more adequate service for the inhabitants within the district, shall have the authority to turn over to the municipality the operation and maintenance of the system.
    1. The municipality may issue revenue bonds, fix the rates for the services, and use the net revenues from the operation to pay the principal and interest and paying charges of its revenue bonds for payment and discharge of the outstanding bonds of the districts.
    2. If the net revenues are not sufficient to prevent a default in the bonds or interest, a tax sufficient to produce enough revenue to cure the default shall be levied on the assessments of benefits in the districts.
    3. Nothing in this section shall impair the rights of the holders of the outstanding bonds to demand and receive sufficient annual collections on the assessments of benefits to meet interest and principal payments as they become due.

History. Acts 1959, No. 146, § 2; A.S.A. 1947, § 20-731.

Subchapter 6 — Collection of Taxes

14-92-601. Applicability.

    1. This subchapter shall be applicable to suburban improvement districts organized and existing pursuant to the provisions of § 14-92-201 et seq. with an area of not less than five thousand (5,000) acres and not more than seven thousand (7,000) acres.
    2. These districts will be referred to as “eligible districts.”
  1. This subchapter shall apply to taxes to be collected in 1986 and subsequent years.

History. Acts 1985, No. 430, § 1; A.S.A. 1947, § 20-746.

14-92-602. Election to collect taxes.

    1. Any eligible district may elect to collect the taxes levied by it pursuant to the provisions of §§ 14-92-228 and 14-92-239. This election shall be made by resolution of the board of commissioners of the eligible district.
    2. Certified copies of the resolution shall be filed with the county clerk and county tax collector of each county in which any of the territory of the district is located, not later than July 15 of the year immediately preceding the first year in which the district will collect the taxes.
  1. Once the election is made and so long as it continues in force, the clerk shall not extend the district taxes upon the county tax books, and the collector shall not collect the district taxes. The district shall be solely responsible for collecting the district taxes, which shall be due and payable on or before October 15 of each year.
    1. Once an eligible district makes the election provided for in this section to collect its own taxes, the election shall continue in effect and the district shall collect its own taxes unless and until the election is revoked.
      1. The election may be revoked by resolution of the board of the district, and the filing of certified copies thereof with the clerk and collector of each county in which any of the territory of the district is located, such filing to be made on or before July 15 of any year.
      2. The revocation shall be effective as to taxes to be collected in the year immediately succeeding the year in which the revocation is filed.

History. Acts 1985, No. 430, § 2; A.S.A. 1947, § 20-747; Acts 2011, No. 175, § 1.

Amendments. The 2011 amendment substituted “October 15” for “October 10” in (b).

14-92-603. Collection of delinquent taxes.

  1. If an eligible district has elected to collect its own taxes under § 14-92-602, the district is responsible for and may take action for collecting taxes that have become delinquent.
    1. An eligible district that has not elected to collect its own taxes under § 14-92-602 may elect to assume sole responsibility for the collection of the eligible district's taxes that have become delinquent.
      1. An election under subdivision (b)(1) of this section shall be made by resolution of the board of commissioners of the eligible district, and a certified copy of the resolution shall be filed with the county tax collector of each county in which any of the territory of the eligible district is located, prior to October 15 of any year.
      2. The election shall be effective for taxes becoming delinquent in the year of filing.
    1. If an eligible district has responsibility under this section for collecting the delinquent taxes of the district, or if the eligible district elects to assume this responsibility, the county collector shall take no action to enforce collection of delinquent taxes.
    2. If the eligible district has elected to collect only delinquent taxes, the county collector shall report delinquencies to the board of the eligible district.
  2. If it is the responsibility of the eligible district to collect delinquent taxes, the district shall add to the amount of the tax a penalty of twenty-five percent (25%) and shall enforce collection by civil proceedings in the circuit court of the county and in the manner provided by §§ 14-121-426 — 14-121-432.
    1. Once an eligible district makes the application to collect the delinquent taxes of the district, the election continues in effect until revoked.
      1. Revocation shall be by resolution of the board and the filing of certified copies of the resolution with the collector of each county in which any of the territory of the eligible district is located.
      2. A filing under subdivision (e)(2)(A) of this section shall be made on or before October 15 of any year and shall be effective as to taxes becoming delinquent in that year.

History. Acts 1985, No. 430, § 3; A.S.A. 1947, § 20-748; Acts 2011, No. 175, § 2.

Amendments. The 2011 amendment substituted “October 15” for “October 10” in (b)(2)(A) and (e)(2)(B); substituted “An election under subdivision (b)(1) of this section” for “This election” in (b)(2)(A); in (d), substituted “civil proceedings” for “chancery proceedings” and “circuit court” for “chancery court”; and substituted “A filing under subdivision (e)(2)(A) of this section” for “These filings” in (e)(2)(B).

Chapter 93 Property Owners' Improvement Districts

Cross References. Deputies employed by property owners associations, insurance, § 14-15-503.

Municipal property owner's improvement district law, § 14-94-101 et seq.

Effective Dates. Acts 1983, No. 613, § 27: Mar. 21, 1983. Emergency clause provided: “It has been found and it is hereby declared that the laws of Arkansas pertaining to improvement districts do not at this time provide for the formation and operation of such district on the basis of the consent of all the owners of real property within such districts and that this inadequacy is causing the delay of the accomplishment of projects which are greatly needed and in the public interest. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect upon its passage and approval.”

Acts 1985, No. 296, § 12: Mar. 11, 1985. Emergency clause provided: “It is hereby found and declared that the laws of Arkansas pertaining to the organization and operation of property owners improvement districts as authorized by Act 613 of 1983 are inadequate and must be clarified and supplemented in order to permit such districts to effectively carry out the purposes for which they have been created; and that this inadequacy is causing the delay of the accomplishment of projects and improvements of a public nature which are greatly needed and in the best interests of the inhabitants of each such district. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect upon its passage and approval.”

Acts 1987, No. 787, § 6: Apr. 8, 1987. Emergency clause provided: “It is hereby found and declared that the laws of Arkansas pertaining to the organization and operation of property owners improvement districts as authorized by Act 613 of 1983 are inadequate and must be clarified and supplemented in order to permit such districts to effectively carry out the purposes for which they have been created; and that this inadequacy is causing the delay of the accomplishment of projects and improvements of a public nature which are greatly needed and in the best interests of the inhabitants of each such district. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect upon its passage and approval.”

Acts 1987 (1st Ex. Sess.), No. 37, § 7: June 12, 1987. Emergency clause provided: “It is hereby found and determined by the General Assembly that regulation of small water and sewer utilities as ‘public utilities’ under the jurisdiction of the Public Service Commission generally imposes heavy regulatory costs upon the consumers, so that the cost of preparing a rate case alone may equal or exceed the other total revenue requirements of those utilities; that the effect of regulation is often to increase costs that are proportionately far in excess of the benefits of regulation; that customers of small water and sewer utilities may be better off in the long run if they could simply buy their water or sewer utility outright and run it themselves; and that this Act is immediately necessary to remedy the present situation. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1991, No. 504, § 7: Mar. 13, 1991. Emergency clause provided: “It is hereby found and determined by the Seventy-Eighth General Assembly of the State of Arkansas that the impairment of the rights of owners of real property located within various improvement districts to prepay their assessments greatly infringes on their rights to own, manage, and enjoy their real property and that it must be made unimpeachably clear that these owners of real property do have and should have the right to prepay these assessments and to be released from the liens upon the prepayment of these assessments. Therefore, in order to clarify and extend rights of owners of real property located within various improvement districts, an emergency is hereby declared to exist, and this act being necessary for the immediate preservation of the public peace, health, and safety, shall be in full force and effect from and after its passage and approval.”

Acts 2013, No. 290, § 4: Mar. 6, 2013. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that certain individuals have used the current law to meet their own ends by abusing the power of eminent domain; that because of that abuse, property value has declined in certain areas; and that this act is immediately necessary because this type of abuse needs to be rectified as soon as possible. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

14-93-101. Title.

This chapter may be known and cited as the “Property Owners' Improvement District Law.”

History. Acts 1983, No. 613, § 1; 1985, No. 296, § 1; A.S.A. 1947, § 20-2401.

14-93-102. Legislative intent.

  1. It is the intent and purpose of this chapter to authorize the formation of improvement districts by the unanimous approval of all owners of real property located in the territory to be included in the district.
  2. It is the intention of Acts 1985, No. 296, to amend or repeal only such sections or subsections of Acts 1983, No. 613, as are specifically mentioned in Acts 1985, No. 296, and the remainder of Acts 1983, No. 613, shall remain in full force and effect as enacted until Acts 1983, No. 613, shall be further amended or repealed.

History. Acts 1983, No. 613, § 1; 1985, No. 296, §§ 1, 11; A.S.A. 1947, §§ 20-2401, 20-2401n; Acts 1999, No. 475, § 1.

Publisher's Notes. Acts 1985, No. 296, is codified as §§ 14-93-10114-93-103, 14-93-107, 14-93-111, 14-93-124, 14-93-125, and 14-93-13014-93-132.

Acts 1983, No. 613, is codified as §§ 14-93-10114-93-129.

14-93-103. Definitions.

As used in this chapter, unless the context otherwise requires:

  1. “Board” means any board of commissioners appointed pursuant to this chapter;
  2. “District” means any improvement district formed under the provisions of this chapter;
  3. “Improvement” means any lands, structures, improvements, fixtures, and appurtenant equipment acquired, constructed, improved, or equipped by a district;
  4. “Nearby municipality” means any municipality located within ten (10) miles of any boundary of a district;
  5. “Person” means an individual, corporation, partnership, association, firm, or other entity recognized by law as having capacity to own real property in the State of Arkansas. As used in this chapter, person shall include a husband and wife owning property jointly;
  6. “Land” or “real property” means all property subject to taxation for the purposes of this chapter;
  7. “County court”, “county judge”, or “county clerk” means “circuit court”, “circuit judge”, or “circuit clerk” in the cases where the district contains lands in more than one (1) county.

History. Acts 1983, No. 613, §§ 2, 3, 7; 1985, No. 296, § 2; A.S.A. 1947, §§ 20-2402, 20-2403, 20-2407.

14-93-104. Construction.

The provisions of this chapter shall be liberally construed to accomplish the purposes of this chapter, and this chapter shall be the sole authority necessary to accomplish its purposes. To this end, it shall not be necessary to comply with the requirements of other laws in acting pursuant to this chapter to accomplish its purposes.

History. Acts 1983, No. 613, § 24; A.S.A. 1947, § 20-2424.

14-93-105. Petition to form district.

  1. Upon the petition of all the owners of the record title as reflected by the deed records in the office of the circuit clerk and ex officio recorder of the pertinent county of real property in any territory, it shall be the duty of the county court to:
    1. Lay off into an improvement district the territory described in the petition for the purpose of:
      1. Purchasing, accepting as a gift, constructing, or maintaining waterworks, recreational facilities, systems of gas pipelines, and sewers;
      2. Grading, draining, paving, curbing, and guttering streets and highways and laying sidewalks;
      3. Establishing, equipping, and maintaining rural fire departments; or
      4. More than one (1) of such purposes; and
    2. Name as commissioners of the district the three (3) persons whose names appear in the petition if the petition contains names, or if not, three (3) individuals of integrity and good business ability.
  2. Portions of municipalities may be included in these districts if the portion of area located within municipalities shall be less than fifty percent (50%) of the area of the entire district.
  3. All districts shall be numbered consecutively or else shall receive names selected by the court.
  4. If the court does not act promptly in complying with the terms of this section, or of any other section of this chapter essential to the creation and operation of the district, it may be compelled to do so by mandamus.
    1. If land in more than one (1) county is embraced in the proposed district, the petition shall be addressed to the circuit court in which the largest portion of the lands lie, and all proceedings shall be had in that court.
    2. Any notices in that event shall be published in newspapers published and having a bona fide circulation in each county in which the district embraces land.
    1. Any number of petitions may be circulated, and identical petitions with additional names may be filed at any time until the court acts.
    2. A petition under this section shall contain a bold heading stating that a signature on the petition is a vote to create the district.

History. Acts 1983, No. 613, § 3; A.S.A. 1947, § 20-2403; Acts 1987, No. 787, § 1; 1999, No. 475, § 2; 2019, No. 1025, § 4.

Amendments. The 2019 amendment added the (f)(1) designation; and added (f)(2).

Case Notes

Cited: Nat'l Bank of Ark. v. Panther Mt. Land Dev., LLC (In re Panther Mt. Land Dev., LLC), 686 F.3d 916 (8th Cir. 2012).

14-93-106. Hearing on petition and determination.

    1. Upon the filing of a petition, it shall be the duty of the county clerk to present the petition to the county judge.
      1. The judge shall thereupon set a date and time, not more than sixty (60) days and not less than thirty (30) days after the date of the presentation of the petition to the judge, for a hearing, before the county court, for consideration of the petition.
      2. A notice of the hearing shall be published for two (2) consecutive weeks in a newspaper of general circulation in the county and, if available, on the website of the county or of the Secretary of State.
    1. At the hearing, it shall be the duty of the court to hear the petition and to ascertain whether those signing it constitute all the owners of the real property to be located in the district.
      1. If the court determines that all the owners of the real property to be located in the district have petitioned for the improvement, it shall enter its judgment laying off the district as defined in the petition and appointing the commissioners named in the petition if commissioners are named therein and are property holders in the district.
      2. If the court finds that fewer than all the owners have signed the petition, it shall enter its order denying the petition.
    1. Any petitioner or any opponent of the petition may appeal from the judgment of the court creating or refusing to create the district. However, appeal must be taken and perfected within thirty (30) days after entry of the judgment.
    2. If no appeal is taken within that time, the judgment creating the district shall be final and conclusive upon all persons.
    1. The petition shall state the specific purpose for which the district is to be formed, and the judgment establishing the district shall give it a name which shall be descriptive of the purpose.
    2. The district shall also receive a number to prevent its being confused with other districts formed for similar purposes.

History. Acts 1983, No. 613, § 4; A.S.A. 1947, § 20-2404; Acts 2019, No. 1025, § 5.

Amendments. The 2019 amendment added the (a)(2)(A) designation; substituted “not more than sixty (60) days and not less than thirty (30) days” for “not later than ten (10) days” in (a)(2)(A); and added (a)(2)(B).

Case Notes

Cited: Nat'l Bank of Ark. v. Panther Mt. Land Dev., LLC (In re Panther Mt. Land Dev., LLC), 686 F.3d 916 (8th Cir. 2012).

14-93-107. Board of commissioners generally.

      1. Within thirty (30) days after their appointment, the members of a board of commissioners shall take and file with the county clerk their oath of office, in which they shall swear to support the Constitution of the United States and the Constitution of the State of Arkansas, to discharge faithfully their duties as commissioners, and to not be interested, directly or indirectly, in any contract let by the board except upon the approval of all the owners of real property located in the district.
      2. Any commissioner failing to file this oath within this period shall be deemed to have declined the office and the county court shall appoint some property holder as his successor, who shall qualify in like manner within a like time.
      1. In case of a vacancy on the board, after the members have organized, the remaining commissioners shall select the successor.
      2. The person so selected shall qualify by taking the oath of office as prescribed for the original commissioners.
      1. The board shall organize by electing one (1) of its members chairman and another as secretary.
      2. The board may also employ such agents, servants, engineers, and attorneys as it deems best and fix their compensation and the compensation of the secretary.
    1. The board shall also select some solvent bank or trust company as the depository of its funds.
  1. In addition to and not by way of limitation of the above powers, the board shall have the power to:
    1. Make and execute all contracts, leases, conveyances, and other instruments of the district;
    2. Join with any other political subdivision, municipality, district, or government agency, either state or federal, in the acquisition, construction, maintenance, operation, and financing of any of the facilities, works, or operations authorized by this chapter or as to the performance of any of its functions;
    3. Establish rules and regulations for the transaction of the district's business and for the services, use, and right to use of its facilities or services, or both, or to effectuate any purpose of this chapter;
    4. Do all things incidental or auxiliary to the exercise of the express powers granted by this chapter; and
    5. Perform all actions useful to carry out the purposes of this chapter, unlimited by any express provision of this section.
  2. No member of the board shall be liable for any damages unless it shall be made to appear that he acted with a corrupt and malicious intent.

History. Acts 1983, No. 613, §§ 5, 16; 1985, No. 296, § 3; A.S.A. 1947, §§ 20-2405, 20-2416.

Case Notes

Cited: Nat'l Bank of Ark. v. Panther Mt. Land Dev., LLC (In re Panther Mt. Land Dev., LLC), 686 F.3d 916 (8th Cir. 2012).

14-93-108. Removal of board members.

  1. When the owners of two-thirds (2/3) in assessed value of the real property located within any district shall sign a petition stating that the petitioners believe it to be in the best interest of the district that the board, or any member thereof, be removed and shall file it with the county court of the county in which the district is located, the court shall set a date for a hearing thereon and shall give notice thereof by one (1) publication in a newspaper of general circulation in the district at least ten (10) days before the date of the hearing.
    1. The purpose of the hearing shall be to determine the sufficiency of the petition.
    2. Any property owner of the district may appear and present evidence either in support of or against the sufficiency of the petition.
    1. If, after hearing the evidence presented, the court shall determine that the petition is signed by at least two-thirds (2/3) in assessed value of the real property owners in the district, the court shall forthwith enter an order of the court removing the member of the board in accordance with the petition.
    2. The vacancies thereby created shall be filled in the manner prescribed by law.

History. Acts 1983, No. 613, § 23; A.S.A. 1947, § 20-2423.

Case Notes

Cited: Nat'l Bank of Ark. v. Panther Mt. Land Dev., LLC (In re Panther Mt. Land Dev., LLC), 686 F.3d 916 (8th Cir. 2012).

14-93-109. Planning by board.

  1. The board shall form plans relative to the acceptance, purchase, or construction of the improvement.
  2. To that end, the board may employ such engineers, attorneys, and other assistants as it may find necessary and shall file copies of all pertinent reports and actions by its members with the county clerk.

History. Acts 1983, No. 613, § 7; A.S.A. 1947, § 20-2407.

14-93-110. Purposes for which district organized.

Any district may be organized for any one (1) or more of the following purposes:

  1. To purchase, accept as a gift, or construct a waterworks system or betterments, improvements, and extensions to such waterworks system, either within or without the boundaries of the district if the property of the district will be benefited thereby and to operate and maintain any such waterworks system it may purchase, construct, or own;
  2. To purchase, accept as a gift, or construct, either within or without the boundaries of the district, if the property of the district will be benefited thereby, a sewage collection system or a sewage treatment plant, intercepting sewers, outfall sewers, force mains, pumping stations, ejector stations, and all other appurtenances necessary or useful and convenient for the collection or treatment, purification, and disposal of industrial or domestic sewage;
  3. To open, grade, drain, pave, curb, gutter, or otherwise improve streets, roads, highways, and every other way, including viaducts and underpasses for passage and use of vehicles, either within or without the boundaries of the district, if the property of the district will be benefited thereby. Such purpose shall include the acquisition of rights-of-way by purchase or the exercise of the power of eminent domain, and to maintain such streets, roads, highways, and every other way for passage and use by vehicles, lying within the boundaries of the district or beyond the boundaries of the district, if the property of the district will be benefited thereby;
  4. To build, purchase, or accept as a gift recreational facilities such as, but not limited to, parks, lakes, golf courses, playgrounds, clubhouses, stadiums, auditoriums, arts and crafts centers, folklore centers, interpretative centers, camping areas, green belt areas, and any other facilities to provide for the recreation and cultural needs of the owners of the lands within the district;
  5. To lay and maintain sidewalks;
  6. To lay gas pipelines connecting with gas systems in nearby or adjacent municipalities;
  7. To build telephone lines to connect with the telephone system operating in nearby or adjacent municipalities; and
  8. To establish, equip, and maintain rural fire departments including construction of fire department buildings, and purchase of fire trucks, fire boats, and other fire fighting equipment.

History. Acts 1983, No. 613, § 6; A.S.A. 1947, § 20-2406.

14-93-111. Powers of districts generally.

  1. Any district, in aid to and furtherance of the purposes prescribed in § 14-93-110, shall have the authority to hire managers and other employees and to pay their salaries incident to the operation and maintenance of any of the improvements authorized in this chapter. It shall also have the authority to acquire and purchase equipment and machinery incident to the operation and maintenance of such facilities and shall be further authorized to do any and all other actions which shall be deemed necessary in order to purchase, construct, accept as a gift, operate, and maintain any and all improvements authorized in this chapter.
  2. Any district shall have the power to sell or lease any improvement owned by it to any adjacent or nearby municipality, or district therein or another improvement district within or near the county, to public service corporations serving on behalf of the property owners of the district, or to any other corporation, organization, or person, and may make contracts with the inhabitants of nearby municipalities, or it may operate any such improvement and may connect any such improvement with the improvements, systems, and transmission lines of any municipality or other district, and with respect to sewers, may carry its sewers to any proper outlet within or without the district.
  3. Any district may accept as a gift any or all of the improvements and facilities authorized in this chapter upon the assumption of the maintenance and operation of the improvement and shall have the authority to effect the assessment of benefits and to levy the necessary tax against the assessment of benefits, as provided in this chapter, in order to provide the revenue for the costs of maintenance and operation.

History. Acts 1983, No. 613, § 6; 1985, No. 296, § 4; A.S.A. 1947, § 20-2406.

14-93-112. Corporate powers.

Each district shall be a body corporate with power to sue and to be sued, and it shall have a corporate seal.

History. Acts 1983, No. 613, § 5; 1985, No. 296, § 3; A.S.A. 1947, § 20-2405.

Case Notes

Cited: Nat'l Bank of Ark. v. Panther Mt. Land Dev., LLC (In re Panther Mt. Land Dev., LLC), 686 F.3d 916 (8th Cir. 2012).

14-93-113. Right and power of eminent domain.

      1. All districts organized under this chapter shall have the right of eminent domain in order that they may carry out the purposes of their creation.
      2. A district under this chapter shall not have the right of eminent domain to condemn rights-of-way outside the boundaries of the district.
    1. This right shall be exercised in the same manner as in the case of railroad, telegraph, and telephone companies, but without the necessity of making a deposit of money before entering into possession of the property condemned.
  1. A district shall have the power of eminent domain for the purposes of:
    1. Condemning any water or sewer utility other than a water or sewer utility owned by a municipality or other type of improvement district, including without limitation a municipal improvement district or consolidated utility district, that is found within the boundaries of the district and is exempt from the definition of “public utility” defined under § 23-1-101; and
    2. Securing any lands or rights-of-way needed in making improvements to water or sewer systems owned and operated by that district.
      1. The board of the district may enter upon any private property for the purposes stated in subsection (b) of this section.
      2. If the person is damaged and the board of the district cannot agree on the sum to be paid for the damages, the person aggrieved may file his or her other petition in the circuit court of the county setting forth his or her other grievance and asking compensation for the grievance, making the board of the district a party defendant.
      3. The issues in the suit shall be made up as in other cases at law, and the cause shall be tried by a jury, unless dispensed with by the parties.
      4. The case shall be advanced on the docket so as to have precedence over all other causes.
        1. The judge of the circuit court may hold a special term at any time for the trial of the cause, giving ten (10) days' notice to the parties of the time of holding the special term.
        2. This notice may be in writing and shall be served on the parties as a writ of summons is directed to be served unless the notice is waived by the parties or one (1) of the parties.
      1. In case an agreement cannot be arrived at between the board of improvement and the owner of the property in relation to the damages claimed, the judge of the court, in vacation, may fix an amount to be deposited with some person, to be designated by the court, before the entering upon and taking possession of the property to be used and taken as provided in this section.
      2. When the required amount has been deposited and the certificate filed in the cause, the work may proceed.

History. Acts 1983, No. 613, § 21; A.S.A. 1947, § 20-2421; Acts 1987 (1st Ex. Sess.), No. 37, § 4; 2013, No. 290, §§ 2, 3.

A.C.R.C. Notes. Acts 2013, No. 290, § 1, provided: “This act shall be known and may be cited as Seth's Law.”

Acts 2013, No. 290, § 3, provided:

“Legislative intent.

“(a) The purpose of this act is to limit the power of eminent domain only for property owners' improvement districts.

“(b) This act does not apply to other types of improvement districts, including without limitation municipal improvement districts or consolidated utility districts.

“(c) This act does not limit the power of eminent domain available under applicable law to other types of improvement districts.”

Amendments. The 2013 amendment added (a)(1)(B); in (b)(1)(A), inserted “other than a water or sewer utility ... consolidated utility district, that is,” substituted “and is” for “which is,” and substituted “defined under § 23-1-101(9); and” for “as found in § 23-1-101(4)”; redesignated (b)(2) as (c); substituted “may” for “shall have the power to” in (c)(1)(A); in (c)(1)(B), inserted “of the district” and “or her other” twice, and substituted “for the grievance” for “therefor”; substituted “(1) of the parties” for “of them” in (c)(1)(E)(ii); and rewrote (c)(2)(B).

Cross References. Eminent domain by railroad, telegraph, and telephone companies, § 18-15-1201 et seq.

Case Notes

Cited: Property Owners Imp. Dist. No. 247 v. Williford, 40 Ark. App. 172, 843 S.W.2d 862 (1992); Nat'l Bank of Ark. v. Panther Mt. Land Dev., LLC (In re Panther Mt. Land Dev., LLC), 686 F.3d 916 (8th Cir. 2012).

14-93-114. Sale of land.

Any land that may be acquired by any district organized under this chapter may be sold by the board thereof for the price and on the terms it deems best.

History. Acts 1983, No. 613, § 22; A.S.A. 1947, § 20-2422.

14-93-115. Priority of cases.

All cases involving the validity of districts or the assessment of benefits and all suits to foreclose the lien or taxes shall be deemed matters of public interest and shall be advanced and disposed of at the earliest possible moment, and all appeals from them must be taken and perfected within thirty (30) days.

History. Acts 1983, No. 613, § 19; A.S.A. 1947, § 20-2419.

14-93-116. Assessment of benefits and damages.

    1. In the event that the board shall have voted to accept any offer of gift, shall have voted to purchase any improvement, or shall have voted to construct any improvement, it shall thereupon appoint an assessor to assess the benefits which will accrue to the real property within the district from the acceptance of the gift of improvement, the purchase of the improvement, or the construction of the improvement.
    2. The assessor shall take an oath that he will well and truly assess all benefits that will accrue to the landowners of the district by reason of the acceptance, purchase, or construction of the proposed improvement. He shall thereupon proceed to assess the lands within the district.
    1. The assessor shall inscribe in a book each tract of land and shall place in one column his valuation of each tract or parcel of land prior to the improvement, which may be marked “Assessed Value of Lands Prior to Improvements,” and in another column he shall place what he thinks will be the value of each tract or parcel of land after the improvement, which may be marked “Assessed Value of Lands After Improvement.”
        1. If the assessed value of land after improvements is greater than the assessed value of land before improvements, as assessed by the assessor for the district, then the difference between the two shall be the assessed benefits that will accrue to each tract by reason of the improvement.
        2. If the assessed value of land, as assessed by the assessor of the district, after the improvement is acquired or made is less than the assessed value of land before improvements are acquired or made, as assessed by the assessor for the district, then the difference between the two shall be the assessed damages that will accrue to the particular parcel or tract of land by reason of the improvement.
      1. The assessor shall enter the assessment of benefits or damages opposite the description of each piece of property in appropriate columns, one of which may be marked “Assessed Benefits” and the other may be marked “Assessed Damages,” and in another column the assessor shall show the estimate of the probable cost to the landowner, which may be marked “Estimated Cost.”
    1. The assessment shall embrace not merely the lands, but all railroads, tramroads, telegraph lines, telephone lines, pipelines, and other improvements on real estate that will be benefited by the acquiring or making of the improvement.
    2. No assessment shall apply against any pipelines or other improvements which are extensions of or connected to the pipeline distribution system or other improvements within any city adjacent to the district.
    1. The assessor shall place opposite each tract the name of the supposed owner as indicated by the deed records, but a mistake in name shall not vitiate the assessment.
      1. The assessor shall also assess all damages that will accrue to any landowner by reason of the proposed improvement, including all injury to lands taken or damaged.
      2. Where the assessor returns no such damages to any tract of land, it shall be deemed a finding by him that no damages will be sustained.
  1. The assessor shall hold his office at the pleasure of the board, which can fill any vacancy in the position of assessor.

History. Acts 1983, No. 613, § 7; A.S.A. 1947, § 20-2407.

Case Notes

Benefits for Improvement.

Improvement district's right of eminent domain requires payment of the market value for the land taken without offset for any benefit the landowner may receive from the construction of the improvement. Property Owners Imp. Dist. No. 247 v. Williford, 40 Ark. App. 172, 843 S.W.2d 862 (1992).

Burden of Proof.

In a condemnation case where the issue is just compensation, the landowners have the burden of proof on that issue. Property Owners Imp. Dist. No. 247 v. Williford, 40 Ark. App. 172, 843 S.W.2d 862 (1992).

Cited: Nat'l Bank of Ark. v. Panther Mt. Land Dev., LLC (In re Panther Mt. Land Dev., LLC), 686 F.3d 916 (8th Cir. 2012).

14-93-117. Filing and notice of assessment — Hearing.

    1. The assessment shall be filed with the county clerk.
      1. The secretary of the board shall thereupon give notice of its filing by publication once a week for two (2) weeks in a newspaper published and having a bona fide circulation in the county.
      2. This notice may be in the following form:
  1. On the day named in the notice, it shall be the duty of the commissioners and assessors to meet together at the place named as a board of equalization, to hear all complaints against the assessment, and to equalize and adjust it. Their determination shall be final, unless suit is brought in the chancery court within thirty (30) days to review it.

“Notice is hereby given that the assessment of benefits and damages of District Number has been filed in the office of the County Clerk of County, and where it is open to inspection. All persons wishing to be heard on said assessment will be heard by the commissioners and the assessor of the district between the hours of 10 a.m. and 4 p.m., at , in the City of , Arkansas, on the day of , 19 . Secretary”

Click to view form.

History. Acts 1983, No. 613, § 8; A.S.A. 1947, § 20-2408.

Case Notes

Cited: Nat'l Bank of Ark. v. Panther Mt. Land Dev., LLC (In re Panther Mt. Land Dev., LLC), 686 F.3d 916 (8th Cir. 2012).

14-93-118. Reassessment.

  1. The board may, not more often than once a year, require the assessor to reassess the benefits in the district. However, in the event the district shall have incurred any indebtedness or issued bonds, the total amount of assessed benefits shall never be diminished.
  2. The reassessment shall be made, advertised, and equalized in the same manner as provided in this chapter for making the original assessment.

History. Acts 1983, No. 613, § 9; A.S.A. 1947, § 20-2409.

14-93-119. Levy of tax.

    1. The board of the district shall, at the same time that the assessment of benefits is equalized or at any time thereafter, enter upon its records an order which shall have all the force of a judgment, providing that there shall be assessed upon the real property of the district a tax sufficient to pay the estimated cost of the improvement, with ten percent (10%) added for unforeseen contingencies.
    2. The tax is to be paid by the real property in the district in the proportion to the amount of the assessment of benefits thereon and is to be paid in annual installments, as provided in the order.
  1. The tax so levied shall be a lien upon all the real property in the district from the time it is levied, shall be entitled to preference over all demands, executions, encumbrances, or liens whenever created, and shall continue until such assessment, with any penalty costs that may accrue thereon, shall have been paid. Provided, however, with the prior written approval of the board of the district, the county clerk shall release from the lien of the assessment and tax any lot, block, or tract with respect to which the assessment and tax shall have been paid or prepaid.
    1. The remedy against the levy of taxes shall be by suit in chancery.
    2. The suit must be brought within thirty (30) days from the time of notice that the levy was made, and on the appeal, the presumption shall be in favor of the legality of the tax.
    1. The board shall, promptly after entry of an order levying the tax, publish once a week for two (2) consecutive weeks in some newspaper having general circulation in the district, a notice setting forth the order of levy and warning all persons affected thereby that it shall become final unless suit is brought to contest it within thirty (30) days of the date of first publication of the notice.
    2. No property owner shall be barred from contest of the levy within the thirty-day publication period.

History. Acts 1983, No. 613, § 10; A.S.A. 1947, § 20-2410; Acts 1991, No. 504, § 2.

Case Notes

Cited: Nat'l Bank of Ark. v. Panther Mt. Land Dev., LLC (In re Panther Mt. Land Dev., LLC), 686 F.3d 916 (8th Cir. 2012).

14-93-120. Interest on assessment.

The assessment of the benefits shall bear interest at the rate of ten percent (10%) per annum from the time it is equalized. However, the interest need not be calculated until it is necessary to do so to avoid exceeding the total amount of benefits and interest, or the interest may be first collected.

History. Acts 1983, No. 613, § 11; A.S.A. 1947, § 20-2411.

Case Notes

Cited: Nat'l Bank of Ark. v. Panther Mt. Land Dev., LLC (In re Panther Mt. Land Dev., LLC), 686 F.3d 916 (8th Cir. 2012).

14-93-121. Extension and collection of taxes.

    1. When the board shall make the levy of taxes, it shall be the duty of the assessor to extend the amount levied and set it opposite each benefit assessed in a column marked “Annual Collection”.
      1. It shall be the duty of the county clerk of the county to extend the taxes annually upon the tax books of the county until the levy is exhausted.
      2. For his or her services, the clerk shall receive a commission of one and one-half percent (1.5%) of the amount so extended.
        1. It shall then be the duty of the tax collector of the county to collect each year the taxes extended upon the tax books along with the other taxes until the entire levy is exhausted.
        2. For his or her services in making the collections, including prepayments, the collector shall receive a commission of one and one-half percent (1.5%). In the case of prepayments, the maximum commission shall be the lesser of one and one-half percent (1.5%) or fifty dollars ($50.00).
      1. The taxes shall be paid over by the collector to the depository of the district at the same time he or she pays over the county funds.
    1. In counties operating under the unit tax ledger system, the collector shall receive a commission of one and one-half percent (1.5%) for extending the taxes and a commission of an additional one and one-half percent (1.5%) for collecting the taxes.
    1. County clerks and tax collectors are authorized to employ additional deputies to do the increased work imposed by the terms of this chapter.
    2. They may pay the deputies salaries up to the sum of five thousand dollars ($5,000) per annum. However, the salaries shall never exceed the receipts from the commissions allowed by this chapter.
  1. No property owner shall be required to pay the improvement taxes provided in this chapter as a prerequisite to paying his or her general taxes.

History. Acts 1983, No. 613, § 12; A.S.A. 1947, § 20-2412; Acts 2001, No. 1816, § 2.

Case Notes

Cited: Nat'l Bank of Ark. v. Panther Mt. Land Dev., LLC (In re Panther Mt. Land Dev., LLC), 686 F.3d 916 (8th Cir. 2012).

14-93-122. Subsequent levies.

  1. If the tax first levied shall prove insufficient to pay the bonds, both the principal and interest, issued by the board on account of an improvement as provided in this chapter, as it shall become due and payable, the board shall, from time to time, make such further levies upon the property previously assessed for sums sufficient to complete the improvement and to pay such bonds and interest which shall be extended and collected in the same manner as the first levy. However, the total levy shall in no case exceed the value of the benefits assessed on the property with interest.
  2. The performance of the duties set forth in this section may be enforced by mandamus.

History. Acts 1983, No. 613, § 13; A.S.A. 1947, § 20-2413.

Case Notes

Cited: Nat'l Bank of Ark. v. Panther Mt. Land Dev., LLC (In re Panther Mt. Land Dev., LLC), 686 F.3d 916 (8th Cir. 2012).

14-93-123. Payment of taxes — Enforcement.

  1. All taxes levied under the terms of this chapter shall be payable in installments at the same time as other state, county, and city taxes are paid.
  2. Delinquencies.
    1. If any taxes levied by the board under this chapter are not paid at maturity, the county tax collector shall not embrace the taxes in the taxes for which he shall sell the lands, but shall report the delinquencies to the board of the district, which shall add to the amount of the tax a penalty of twenty-five percent (25%).
    2. The board shall enforce the collection by chancery proceedings in the chancery court of the county in which the lands are situated having chancery jurisdiction. The court shall give judgment against the lands for the amount of the delinquent taxes, and the penalty of twenty-five percent (25%) and interest thereon, from the end of the sixty (60) days allowed for the collection thereof, at the rate of six percent (6%) per annum, and all costs of the proceeding.
    3. The judgments shall provide for the sale of the delinquent lands for cash by a commissioner of the court, after advertisement as set out in subsection (c) of this section.
    4. Proceedings and judgment shall be in the nature of proceedings in rem.
      1. It shall be immaterial that the ownership of the lands be incorrectly alleged in the proceedings.
      2. Judgment shall be enforced wholly against the lands and not against any other property or estate of the defendant.
    5. All or any part of the delinquent lands for each of the counties may be included in one (1) suit for each county, instituted for the collection of the delinquent taxes, etc., as aforesaid.
    6. The procedures set forth in this section shall apply to all improvement districts subject to this chapter and shall apply retroactively to those improvement districts already subject to this chapter.
  3. Notice of Proceedings for Collection of Taxes. Notice of the pendency of the suit shall be given by publication weekly for four (4) weeks before judgment is entered for the sale of the lands in some newspaper published in the county where the suits may be pending, which public notice may be in the following terms:
  4. Trial Date — Suit by Bondholder.
      1. The suit shall stand for trial at the first term of court after the complaint may be filed, if four (4) weeks shall expire either before the first day of the term, or during the term of court to which the suits are brought respectively, unless a continuance is granted for good cause shown, within the discretion of the court.
      2. The continuance, for good cause shown, may be granted as to a part of the lands or defendants without affecting the duty of the court to dispose finally of the others as to whom no continuance may be granted.
    1. In case the commissioners shall fail to commence suit within sixty (60) days after the taxes become delinquent, the holder of any bond issued by the district or any trustee on behalf of the holder of any bond issued by the district shall have the right to bring suit for the collection of the delinquent assessments, and the proceedings in the suit brought by the bondholder or trustee shall in all respects be governed by the provisions applicable to suits by the commissioners.
  5. Trial Procedure.
    1. Suits for collection shall be conducted in the name of the property owners' improvement district, and in accordance with the practice and proceedings of chancery courts in this state, except as otherwise provided in this chapter, and neither attorneys ad litem, nor guardians ad litem, nor any of the provisions of § 16-65-403 [repealed] shall be required.
    2. The suits may be disposed of on oral testimony, as in ordinary suits at law.
    3. The law shall be liberally construed to give to the assessment and tax lists the effect of bona fide mortgage for a valuable consideration, and a first lien upon the lands, as against all persons having an interest therein.
    4. In such suits, it shall be sufficient to allege generally and briefly the organization of the district and the nonpayment of the taxes, setting forth the description of the lands proceeding against, and the amount chargeable to each tract, with prayer for foreclosure.
    5. No informality or irregularity in holding any of the meetings provided for herein, in valuation, in assessment of the lands, or in the name of the owners, or the number of acres therein shall be a valid defense to the action.
  6. Sale of the Land.
      1. In all cases where notice has been properly given and where no answer has been filed, or if filed, and the cause decided for the plaintiff, the court, by its decree, shall grant the relief as prayed for in the complaint.
        1. The court shall direct the commissioner to sell the lands described in the complaint at the courthouse door of the county wherein the decree is entered, at public outcry, to the highest and best bidder, for cash in hand, after having first advertised the sale weekly for two (2) weeks, consecutively, in some newspaper having a general circulation in the county.
        2. The advertisement may include all the lands described in the decree.
    1. If all the lands are not sold on the day as advertised, the sale shall continue from day to day until completed.
    2. The commissioners shall by proper deeds convey to the purchaser the lands so sold. The title to the lands shall thereupon become vested in the purchaser as against all others whomsoever.
    1. In any case where the lands are offered for sale by the commissioner, as provided by this subchapter, and the sum of the delinquent tax due, together with interest, cost, and penalty, is not bid for the lands, the commissioner shall bid the lands off in the name of the board of directors of the property improvement district, bidding therefore the whole amount due as aforesaid.
      1. The commissioner shall execute his deed conveying the land to the property owners' improvement district board.
      2. No report of sale other than the execution of the deed and its submission to the court for approval and no confirmation other than approval of the deed need be made in any such case and a deed to the land executed by the commissioner, approved by the court and recorded, shall be conclusively presumed to be in consideration of the total amount rightfully due to the district whether that amount is stated or whether it is stated correctly or incorrectly in the deed.
    2. The deeds, together with other deeds as are duly executed in conformity to the provisions of this subchapter and recorded, shall be received as evidence in all cases showing an indefeasible title in the district, unassailable in either law or equity.
    1. No provision contained herein shall relieve any purchasers of lands, excluding the district, from the obligation to pay all future taxes levied under the terms of this chapter following the enforcement of these foreclosure proceedings.
    2. The obligation to pay all future taxes shall also extend to any purchaser of lands who purchases such lands from the district following the district's obtaining of the land pursuant to subsection (g) of this section.
  7. Attorney's Fees. In all suits brought for collection of delinquent taxes under this subchapter, a reasonable attorney's fee shall be taxed in favor of the attorney for the plaintiff, which fee shall be added to the amount of the cost.
  8. Redemption.
    1. At any time within thirty (30) days after the rendition of the final decree of the chancery court provided for in this subchapter, the owner of the lands may file his petition in the court rendering the decree, alleging the payment of taxes on the land for the year for which they were sold and payment of all costs associated with the enforcement of the provisions of this chapter, including attorney's fees.
    2. Upon the establishment of that fact, the court shall vacate and set aside that decree, provided that any landowner shall have the right within thirty (30) days after the day upon which lands are offered for sale to redeem any and all lands sold at the sale.

“Board of Commissioners, Property Owners' Improvement District vs. Delinquent Lands All persons having or claiming an interest in any of the following described lands, are hereby notified that suit is pending in the Chancery Court of County, Arkansas, to enforce the collection of certain property owners' improvement district taxes on the subjoined list of lands, each supposed owner having been set opposite his or her or its lands, together with the amounts severally due from each, to wit: ” (Then shall follow a list of supposed owners, with a descriptive list of said delinquent lands, and amounts due thereon respectively as aforesaid), and said public notice may conclude in the following form: “All persons and corporations interested in said lands are hereby notified that they are required by law to appear within four (4) weeks and make defense to said suit, or the same will be taken for confessed, and final judgment will be entered directing the sale of said lands for the purpose of collecting said taxes, together with the payment of interest, penalty, and costs allowed by law. Clerk of Said Court.”

Click to view form.

History. Acts 1983, No. 613, § 14; A.S.A. 1947, § 20-2414; Acts 1997, No. 1338, § 1.

Amendments. The 1997 amendment substituted “levied by the board under this chapter” for “levied by a board in pursuance to this chapter” in (b)(1); rewrote (b)(2); added (b)(3); and added (c)-(j).

14-93-124. Negotiable notes, bonds, or evidences of debt.

    1. In order to meet preliminary expenses and to finance the cost of the improvements to be accomplished with cost incidental to the improvements and to the issuance of the bonds, the board may issue negotiable notes or bonds of the district and may pledge and mortgage all assessments of benefits to the district and all or any part of the profits of the district derived from its operation of any improvements of the district to the payment of the notes and bonds.
    2. The board may also issue to the contractors who do the work negotiable evidences of debt to bear interest at the rates prescribed by the board and secure them in the same manner.
    3. As for the security for the payment of any such indebtedness, the members of the board may, by resolution, establish the rates for use of the improvements to be collected from the users of such improvements and may mortgage any or all of its property, including improvements.
    1. Bonds and notes issued under the authority of this chapter shall bear interest at such rate or rates, shall mature at such time or times, shall be payable, as to principal, premium, if any, and interest, at such places, within or without the State of Arkansas, shall be in such form, whether bearer or registered, shall be subject to such exchange privileges, and shall have such other details as may be set forth in the resolution of the board authorizing their issuance.
    2. The resolution may provide for the execution and delivery of a trust indenture or like instrument by the board securing the bonds and for the execution and delivery of other writings pertaining thereto.
    3. The bonds, and coupons, if any, may be executed by the manual or facsimile signatures of the members of the board.

History. Acts 1983, No. 613, § 15; 1985, No. 296, § 5; A.S.A. 1947, § 20-2415.

14-93-125. Bonds — Tax exemption.

Bonds, and the interest thereon, shall be exempt from all state, county, and municipal taxes, including income, property, and inheritance taxes.

History. Acts 1983, No. 613, § 15; 1985, No. 296, § 5; A.S.A. 1947, § 20-2415.

14-93-126. Payment of bonds and interest.

    1. All bonds issued under the terms of this chapter shall be secured by a lien on all real property in the district.
      1. The board shall see to it that a tax is levied annually and collected under the provisions of this chapter, so long as it may be necessary to pay any bond issued or obligation contracted under its authority.
      2. The making of an assessment or levy and collection may be enforced by mandamus.
      1. If any bond, or interest thereon, is not paid within thirty (30) days after its maturity, it shall be the duty of any court of competent jurisdiction, on application of any holder of the bond or interest coupon so overdue, to appoint a receiver to collect the taxes and an assessor to reassess the benefits, if necessary.
      2. The proceeds of the taxes and collections shall be applied, after payment of costs, first to overdue interest, and then to payment pro rata of all bonds issued by the board which are then due and payable.
      1. The receiver may be directed, by suit, to foreclose the lien of the taxes on the real property.
      2. Suits brought by the receiver shall be conducted in all matters as are suits by the board as provided in this chapter and with like effect, and the decree and deeds therein shall have the same presumption in their favor.
  1. When all the sums have been paid, the receiver shall be discharged and the affairs of the district conducted by the board as provided in this chapter.

History. Acts 1983, No. 613, § 18; A.S.A. 1947, § 20-2418.

14-93-127. Dissolution of district.

    1. After all bonds, notes, or other evidences of indebtedness, including interest, have been paid in full, then a district by unanimous vote of the board may be dissolved and all future levies and assessments cancelled, the board relieved from further duties, and the surplus funds of the district distributed in accordance with the procedures set forth in subsection (b) of this section if title to and control of the facilities constructed by the district have been taken over or assumed by a political subdivision, a municipal utility commission or agency, a regulated public utility, or an incorporated property owners' association served or benefitted by the facilities.
    2. The districts are authorized, at the discretion of the board, to enter into repair and maintenance agreements or contracts and to expend funds of the districts for these purposes.
    1. In the event the board votes to dissolve the district under subsection (a) of this section, the board shall convert all assets into cash and shall first pay from such surplus funds all debts of the district, including any reasonable legal and other expenses incurred in connection with the dissolution.
      1. The board then shall refund all remaining funds of the district, pro rata, to the property owners who hold title to the property in the district at the time the refund is made.
        1. The pro rata refund to the property owners shall be made on the basis of the most recent assessment or reassessment of benefits on the parcels of property prior to dissolution and shall be in the same proportion that the assessed benefits of each individual parcel of property bears to the total of the assessed benefits of all the property in the district.
        2. No property owner whose property is delinquent in any sum for district assessments, penalties, or interest, at the time the refund is made, shall be counted in calculating the pro rata distribution, or receive any portion of the refund.
      2. Within ninety (90) days after the distribution of the surplus funds has been completed, the board shall file a copy of the resolution of dissolution and a financial statement of the district, verified by all its members, in the office of the county clerk in the county in which the district is located.

History. Acts 1983, No. 613, § 17; A.S.A. 1947, § 20-2417; Acts 2017, No. 819, § 1.

Amendments. The 2017 amendment inserted “or an incorporated property owners' association served or benefitted by the facilities” and made stylistic changes in (a)(1).

Case Notes

Cited: Nat'l Bank of Ark. v. Panther Mt. Land Dev., LLC (In re Panther Mt. Land Dev., LLC), 686 F.3d 916 (8th Cir. 2012).

14-93-128. Lien for preliminary expenses.

  1. In case, for any reason, the improvement contemplated by any district organized under this chapter is not made, the preliminary expense shall be a first lien upon all the land in the district and shall be paid by a levy of a tax thereon.
  2. The levy shall be made by the chancery court of the county and shall be collected by a receiver to be appointed by the court.

History. Acts 1983, No. 613, § 20; A.S.A. 1947, § 20-2420.

14-93-129. Continued existence of district.

If the petition for formation of the district provides therefor or the owners of real property in the district agree thereto, then a district shall not cease to exist upon the acquiring, construction, or completion of the improvement, but shall continue to exist for the purpose of preserving, maintaining, and operating the improvement, replacing equipment, paying salaries to employees, and performing any other functions or services authorized in this chapter. To this end, the board may, from time to time, make such additional levies based upon the assessment of benefits as may be necessary for these purposes. However, the amount of the total levies shall not exceed the assessed benefits and interest thereon.

History. Acts 1983, No. 613, § 17; A.S.A. 1947, § 20-2417.

14-93-130. Systems turned over to municipality.

  1. In those cases where improvement districts have been organized under this chapter or any consolidation of districts organized under this chapter with one another or with suburban or municipal improvement districts, either for furnishing of water or sewer services, or both, and all or any part thereof lies outside a municipality within the class affected by this chapter which desires to operate them as a municipal waterworks or a municipal sewer system, the boards of these districts, in order to secure more adequate service for the inhabitants within the districts, shall have the authority to turn over to the municipality the operation and maintenance of the systems.
    1. The municipality may issue revenue bonds and fix the rates for the services and use the net revenues from the operation to pay the principal and interest and paying charges of its revenue bonds for payment and discharge of the outstanding bonds of the district.
    2. If the net revenues are not sufficient to prevent a default in the bonds or interest, a tax sufficient to produce enough revenue to cure the default shall be levied on the assessments of benefits in the district and nothing in this section shall impair the rights of the holders of the outstanding bonds to demand and receive sufficient annual collections on the assessments of benefits to meet interest and principal payments as they become due.

History. Acts 1985, No. 296, § 7; A.S.A. 1947, § 20-2426.

14-93-131. Consolidated systems authorized.

  1. Where there are contiguous or adjacent districts organized under this chapter or under the suburban improvement district laws or the municipal improvement district laws for either water or sewer services, or both, it shall be permissible for all or any two (2) or more of these districts, whether organized under this chapter, the suburban improvement district laws, the municipal improvement district laws, or any combination thereof, to enter into a contract with each other for the joint operation, maintenance, improvement, enlargement, and betterment of their respective systems or of the consolidated system, to be paid for by charges for the services.
  2. Any such district which has paid its outstanding bonded indebtedness but which has not been turned over to the municipality for operation, may join in contracts for joint operation, and any facilities constructed by any districts outside their boundaries shall be included in the consolidated systems.
  3. These consolidated systems may borrow money to pay and discharge any outstanding bond issues and indebtedness of the districts joining in the consolidations and may borrow money also for improvement, enlargement, and betterment of the facilities of the consolidated systems.
  4. To accomplish these purposes, consolidated systems may issue negotiable bonds or notes evidencing the money so borrowed, to be secured solely by a pledge of the net revenues derived from the operation of the facilities, to bear interest at such rate or rates as prescribed by the boards of the district, and to mature at such time and places as the board shall decide best, and to be issued with such terms of payment, call provisions, and interest rates as the board shall deem to be in the best interest of the inhabitants of the consolidated district.

History. Acts 1985, No. 296, § 8; A.S.A. 1947, § 20-2427.

14-93-132. Connections outside district boundaries.

  1. All districts organized pursuant to the provisions of this chapter for the purposes of constructing waterworks, sewers, gas pipelines, or telephone lines shall have the authority to permit lands outside the boundaries of the district to connect to these improvements and transmission lines serving the lands with water, sewer, gas, and telephone improvements of the district and to make a charge for this privilege.
    1. The commissioners of the district shall have the right to consent to or refuse to allow these connections within their discretion.
      1. These connections shall be made on such terms as the commissioners may dictate. However, no lands outside the district shall be permitted to connect with the improvements of the district except on payment to the district of a sum equal to not less than the charge made against similarly benefited lands within the district.
      2. In case connections have theretofore been made without the payment of a charge for the connection, the district may refuse to allow service to the lands until permission for the connection is granted and the charge for the service is paid to the district.

History. Acts 1985, No. 296, § 6; A.S.A. 1947, § 20-2425.

14-93-133. Annexation of lands outside district boundaries.

    1. All districts organized under this chapter shall have the authority to permit lands outside the boundaries of the district to be annexed to the district.
    2. Annexation shall be permissible only for the purpose of providing improvements to the property to be annexed for purposes similar to the purposes for which the district was formed or for which the district currently exists.
    1. When persons claiming to constitute all of the owners of territory contiguous to any such district desire that the territory be annexed to the district, they may present their petition describing the territory to be annexed to the clerk of the county court.
    2. The petition shall be accompanied by a resolution of the board of the existing district approving the annexation.
    3. The county court shall then direct the clerk to publish for two (2) consecutive weeks, in some newspaper having general circulation in each county in which the district and the territory proposed to be annexed is located, a notice calling upon the owners in the district and the territory proposed to be annexed to appear before the county court on the date and time and at the place named in the notice and show cause for or against the annexation.
    1. On the day named in the notice, the county court shall hear all persons who desire to be heard on the following questions:
      1. Whether the territory to be annexed to the district lies within the jurisdiction of the county court;
      2. Whether all of the owners of real property in the territory sought to be annexed have signed the petition; and
      3. Whether a majority of the board of the district has approved the annexation by resolution of the board.
    2. The findings of the county court shall have all the force and effect of a judgment, and shall be conclusive, unless, within thirty (30) days thereafter, suit is brought in the chancery court to review it.
    1. The finding of the county court shall be expressed as a judgment in case it is in favor of the petitioners.
    2. In that event, the territory sought to be annexed shall become a part of the district, and the improvements petitioned for shall be made by the commissioners.
    3. The commissioners shall make the assessment of benefits and levy the tax for the improvements on the territory annexed under the provision of this section as if the territory were included in the original district.

History. Acts 1987, No. 787, § 2.

Chapter 94 Municipal Property Owners' Improvement District Law

Publisher's Notes. Acts 1987, No. 113, § 25, provided that the provisions of this act shall not repeal but shall be cumulative and supplemental to all other laws now in effect concerning municipal improvement districts.

Cross References. Property owners' improvement districts, § 14-93-101 et seq.

Effective Dates. Acts 1987, No. 113, § 27: Mar. 4, 1987. Emergency clause provided: “It has been found and it is hereby declared that the laws of Arkansas pertaining to municipal improvement districts do not at this time provide for the formation and operation of such District on the basis of the consent of all the owners of real property within such District and that this inadequacy is causing the delay of the accomplishment of projects which are greatly needed and in the public interest. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect upon its passage and approval.”

Acts 1989, No. 276, § 8: Mar. 1, 1989. Emergency clause provided: “It has been found and it is hereby declared that municipal property owners improvement districts may be formed only upon the petition of all owners of real property located in the territory included in such districts, that it is not feasible in all such districts to require that all commissioners thereof be owners of real property therein, that such a requirement exclude from service as commissioners persons who are qualified so to serve and who would be chosen so to serve by all the owners of real property therein, that the present law impairs the formation and operation of districts which are essential to the orderly and proper growth of municipalities, some of which districts must be and have been formed to accomplish improvements which are urgently needed. Therefore, an emergency is declared and this Act, being necessary for the preservation of the public peace, health and safety, shall be in force upon its passage and approval and shall apply to municipal property owners districts now being formed or already formed, provided that all owners of real property in such districts shall have petitioned for or agreed to rights and powers as set forth in this Act.”

Acts 1991, No. 504, § 7: Mar. 13, 1991. Emergency clause provided: “It is hereby found and determined by the Seventy-Eighth General Assembly of the State of Arkansas that the impairment of the rights of owners of real property located within various improvement districts to prepay their assessments greatly infringes on their rights to own, manage, and enjoy their real property and that it must be made unimpeachably clear that these owners of real property do have and should have the right to prepay these assessments and to be released from the liens upon the prepayment of these assessments. Therefore, in order to clarify and extend rights of owners of real property located within various improvement districts, an emergency is hereby declared to exist, and this act being necessary for the immediate preservation of the public peace, health, and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1991, No. 927, § 5: Mar. 29, 1991. Emergency clause provided: “It is hereby found and determined by the General Assembly that the foreclosure procedure for tax delinquent lands in a municipal property owners' improvement district is unreasonable in length of time and greatly infringes on the rights of bondholders or other interested parties to foreclose upon the land securing their bonds. Therefore, in order to shorten the time in which a bondholder or other interested party may foreclose upon tax delinquent lands within a municipal property owners' improvement district, an emergency is hereby declared to exist and this act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1993, No. 819, § 5: Apr. 1, 1993. Emergency clause provided: “It is hereby found and determined by the General Assembly that the ambiguity in existing laws with respect to the formation of municipal property owners improvement districts for lands lying in more than one municipality inhibits the formation of such districts for the construction of projects urgently needed. Therefore, an emergency is hereby declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall be in full force and effect from and after its passage and approval.”

Acts 2019, No. 1077, § 7: Apr. 17, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that fire protection districts provide critical public safety functions often not available from local governmental units; that funding sources for these fire protection districts are limited; and that this act is immediately necessary because without securing better funding, many fire protection districts will be unable to continue providing public safety functions at expected levels. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto”.

Research References

U. Ark. Little Rock L.J.

Goldner, A Call for Reform of Arkansas Municipal Law, 15 U. Ark. Little Rock L.J. 175.

14-94-101. Title.

This chapter may be known and cited as the “Municipal Property Owner's Improvement District Law”.

History. Acts 1987, No. 113, § 1.

14-94-102. Legislative intent.

It is the intent and purpose of this chapter to authorize the formation of improvement districts by the unanimous approval of the owners of real property located in the territory to be included in the district.

History. Acts 1987, No. 113, § 1; 1993, No. 819, § 1; 1999, No. 475, § 3.

Amendments. The 1993 amendment made no change in this section.

Case Notes

Cited: First Ark. Bank & Trust v. Gill Elrod Ragon Owen & Sherman, P.A., 2013 Ark. 159, 427 S.W.3d 47 (2013).

14-94-103. Definitions.

As used in this chapter, unless the context otherwise requires:

  1. “Board” means any board of commissioners appointed pursuant to this subchapter;
  2. “Clerk” means the clerk or recorder of a municipality;
  3. “District” means any improvement district formed under the provisions of this chapter;
  4. “Facilities” means any properties, real, personal, or mixed, tangible or intangible;
  5. “Governing body” means any city council, town council, board of directors, or like body having legislative powers for any municipality;
  6. “Improvement” or “improvements” means any lands, structures, improvements, fixtures, and appurtenant equipment acquired, constructed, improved, or equipped by a district;
  7. “Municipality” means any city or incorporated town of the State of Arkansas;
  8. “Nearby municipality” means any municipality located within ten (10) miles of any boundary of a district;
  9. “Person” means an individual, corporation, partnership, association, firm, or other entity recognized by law as having capacity to own real property in the State of Arkansas;
  10. “Real property” shall be construed to embrace all property subject to assessment for the purposes of this chapter.

History. Acts 1987, No. 113, §§ 2, 7.

Case Notes

Real Property.

Improvement district's lien for nonpayment of improvement taxes attached to unimproved tracts; under the definition of “real property” in this section, the land need only be subject to assessment, and it is not necessary that a benefit actually be assessed. The unimproved land in question was subject to the initial assessment and therefore constituted “real property” under § 14-94-101 et seq.Bullock's Ky. Fried Chicken, Inc. v. City of Bryant, 2019 Ark. 249, 582 S.W.3d 8 (2019).

14-94-104. Construction.

The provisions of this chapter shall be liberally construed to accomplish the purposes of this chapter, and this chapter shall be the sole authority necessary to accomplish its purposes. To this end, it shall not be necessary to comply with the requirements of other laws including, without limitation, those pertaining to notice, consent, and like requirements in acting pursuant to this chapter to accomplish its purposes.

History. Acts 1987, No. 113, § 24.

14-94-105. Petition to form district.

  1. Upon the petition of all the owners of the record title as reflected by the deed records in the office of the circuit clerk and ex officio recorder of the pertinent county, it shall be the duty of the governing body to:
    1. Lay off into an improvement district the territory described in the petition for the purpose of purchasing, accepting as a gift, constructing, or maintaining facilities for waterworks, recreation, drainage, gas pipelines, underground trenches and excavations necessary for the installation by public utilities or municipal utilities of electric and telephone distribution systems, sanitary sewers, streets and highways, including curbs and gutters, and sidewalks, together with facilities related to any of the foregoing, or for more than one (1) of those purposes; and
      1. Name as commissioners of the district the three (3) individuals whose names appear in the petition if the petition contains those names, and if not, then three (3) individuals of integrity and good business ability who own real property in the district or are creditors of the district or live in the district.
      2. In the event that a property owner or creditor is a corporation, partnership, trust, or other legal entity, any officer, director, trustee, employee, or other designated representative of the entity may be named and appointed as a commissioner.
  2. All the districts shall be numbered consecutively and shall receive names selected by the governing body. If the governing body does not act promptly in complying with the terms of this section, or of any other section of this chapter essential to the creation and operation of the district, it may be compelled to do so by mandamus.
    1. Any number of petitions may be circulated, and identical petitions with additional names may be filed at any time until the governing body acts.
    2. A petition under this section shall contain a bold heading stating that a signature on the petition is a vote to create the district.
  3. The formation and creation of such districts is authorized, in whole or in part, outside any municipality.
  4. In the event that lands to be included in a district lie in more than one (1) municipality:
    1. The municipality in which lies the largest portion of the lands, exclusive of lands which do not lie in any municipality, shall have jurisdiction to create such district and to conduct all other municipal proceedings relating thereto and to the business and affairs thereof, which municipality is referred to hereinbelow as the “creating municipality”;
    2. No portion of a municipality shall be included in such district unless it shall be found by the creating municipality that the owners of real property lying within such municipality and within the district shall have petitioned for creation of such district;
    3. Notice of the filing of the petition for creation of such district shall be given by first-class mail to the mayor of each such municipality by the clerk or recorder of the creating municipality, and each such municipality may, at any time within fifteen (15) days after the deposit of such notice in the mails, unless such notice shall be waived by resolution of the governing body of such municipality, file with the clerk or recorder of the creating municipality a certified copy of a resolution of its governing body finding that the proposed improvements do not harmonize with the community facilities plans of such municipality or would diminish vehicular or pedestrian traffic in such municipality; and
    4. In the event of the filing of the resolution described in subdivision (e)(3) of this section, the governing body of the creating municipality shall reject the petition for creation of such district.

History. Acts 1987, No. 113, § 3; 1989, No. 276, § 1; 1993, No. 819, § 1; 1995, No. 1127, § 1; 1999, No. 475, § 4; 2019, No. 1025, § 6.

Amendments. The 1993 amendment added (d) and (e).

The 1995 amendment made a stylistic change in (a)(1); added the language beginning “who own real property” at the end of (a)(2)(A); and added (a)(2)(B).

The 2019 amendment added the (c)(1) designation; and added (c)(2).

14-94-106. Hearing on petition and determination.

      1. Upon the filing of the petition with the clerk, it shall be the duty of the clerk to present the petition to the mayor.
      2. The petition shall be accompanied by a certificate from a title insurance company transacting business in the municipality:
        1. Stating that the signatures on the petition constitute all of the owners of real property to be located in the district; and
        2. Identifying any mortgagee holding a first mortgage lien on real property constituting more than ten percent (10%) in area of the real property to be located in the district.
      1. The mayor shall thereupon set a date and time, not more than sixty (60) days and not less than thirty (30) days after the date of the presentation of the petition to the mayor, for a hearing before the governing body for consideration of the petition.
      2. Notice of the hearing shall be sent by certified mail to any mortgagee holding a first mortgage lien on real property constituting more than ten percent (10%) in area of the real property to be located in the district.
      3. The notice of hearing under subdivision (a)(2)(B) of this section shall state that any existing mortgage shall be subordinated pursuant to this section and § 14-94-118(b) if the mortgagee fails to appear at the hearing and object to formation of the district.
    1. At the hearing, it shall be the duty of the governing body to hear the petition and to ascertain whether those signing the petition constitute all the owners of the real property to be located in the district.
      1. Except as provided in subdivision (b)(2)(B) of this section, if the governing body determines that all the owners of the real property to be located in the district have petitioned for the improvements, it shall then be its duty by ordinance to establish and lay off the district as defined in the petition and to appoint the commissioners as named in the petition if commissioners are named in the petition and are property owners in or creditors of the district, or as is otherwise provided from among such property owners or creditors.
      2. If at the hearing on the petition any mortgagee holding a first mortgage lien on real property constituting more than ten percent (10%) in area of the real property to be located within the district objects to the formation of the district, then the governing body shall reject the petition for creation of the district.
    2. The petition shall state the specific purposes for which the district is to be formed, and the ordinance establishing the district shall give it a name which shall be descriptive of the purpose. It shall also receive a number to prevent its being confused with other districts for similar purposes.
  1. The ordinance establishing the district shall be published within thirty (30) days after its adoption by one (1) insertion in some newspaper of general circulation in the municipality in which the district lies.
  2. The findings of the governing body shall be conclusive unless attacked by a suit in the circuit court of the county in which the municipality is located, brought within thirty (30) days after the publication.

History. Acts 1987, No. 113, § 4; 1989, No. 276, § 2; 1995, No. 1127, § 2; 2009, No. 501, § 1; 2009, No. 1408, § 1; 2019, No. 1025, § 7.

Amendments. The 1995 amendment redesignated former (b)(2)(A) and (B) as present (b)(2) and (3); in (b)(2), inserted “as” preceding “named” and added the language beginning “and are property owners”; and deleted “which suit” preceding “brought” in (d).

The 2009 amendment by No. 501 inserted (a)(1)(B), (a)(2)(B) and (C), and (b)(2)(B) and redesignated the remaining subdivisions accordingly; inserted “Except as provided in subdivision (b)(2)(B) of this section” in (b)(2)(A); substituted “circuit” for “chancery” in (d); and made related changes.

The 2009 amendment by No. 1408 rewrote (a)(2)(C).

The 2019 amendment substituted “not more than sixty (60) days and not less than thirty (30) days” for “not later than fifteen (15) days” in (a)(2)(A).

Case Notes

Notice.

Notice provisions in a prior version of this section, allowing notice by publication, did not violate due process because appellants failed to establish that notice by publication was inappropriate to the circumstances of the case. Bullock's Ky. Fried Chicken, Inc. v. City of Bryant, 2019 Ark. 249, 582 S.W.3d 8 (2019) (decision under prior law).

14-94-107. Board of commissioners generally.

      1. Within thirty (30) days after their appointment, the commissioners shall take and file with the clerk their oath of office, in which they shall swear to support the Constitution of the United States and the Constitution of the State of Arkansas, to discharge faithfully their duties as commissioners, and to not be interested, directly or indirectly, in any contract let by the board except upon the approval of all the owners of real property located in the district.
      2. Any commissioner failing to file the oath within this period shall be deemed to have declined the office, and the governing body shall appoint some property owner as his successor, who shall qualify in like manner within a like time.
      1. In case of a vacancy on the board after the commissioners have organized, except as set forth in § 14-94-108, the remaining commissioners shall select some property owner in the district or creditors of the district as a successor; provided, however, if all improvements in the district have been completed, then the governing body shall select the successor.
      2. The person so selected shall qualify by taking the oath of office as prescribed for the original commissioners.
      1. The board shall organize by electing one (1) of its members as chairman and another as secretary.
      2. It may also employ such agents, servants, engineers, and attorneys as it deems best and fix their compensation and the compensation of the secretary.
    1. The board shall also select some solvent bank or trust company as the depository of its funds.
  1. In addition to and not by way of limitation of the above powers, the board shall have the power to:
    1. Make and execute all contracts, leases, conveyances, and other instruments of the district;
    2. Join with any county, municipality, improvement district, or other political subdivision or government agency, local, state, or federal, in the acquisition, construction, maintenance, operation, and financing of any of the improvements authorized by this chapter or as to the performance of any of its functions;
    3. Establish rules and regulations for the transaction of the district's business and for the services, use, and right to use of its facilities or services, or both, or to effectuate any purpose of this chapter;
    4. Do all things incidental to the exercise of the express powers granted by this chapter; and
    5. Perform all acts useful to carry out the purposes of this chapter, unlimited by any express provision hereof.
  2. No member of the board shall be liable for any damages unless it shall be made to appear that he acted with a corrupt intent.

History. Acts 1987, No. 113, §§ 5, 16; 1995, No. 1127, § 3.

Amendments. The 1995 amendment inserted “as” in (a)(1)(B); and rewrote (a)(2)(A).

14-94-108. Removal of board members.

  1. When the owners of two-thirds (2/3) in assessed value of the real property located within any district shall sign a petition stating that the petitioners believe it to be in the best interest of the district that the board, or any member thereof, be removed and shall file the petition with the governing body, the governing body shall set a date for a hearing on the petition and shall give notice of the hearing by one (1) publication in a newspaper of general circulation in the district at least ten (10) days before the date of the hearing.
    1. The purpose of the hearing shall be to determine the sufficiency of the petition.
    2. Any property owner of the district may appear and present evidence either in support of or against the sufficiency of the petition.
  2. If, after hearing, based upon the evidence presented, the governing body shall determine that the petition is signed by at least two-thirds (2/3) in assessed value of the real property owners in the district, the governing body shall immediately adopt a resolution removing the member of the board in accordance with the petition and appoint some property owner in the district or creditor of the district as a successor to fill the vacancy created by his removal.
  3. No member of the board shall be liable for any damages unless he or she shall have acted with a corrupt intent.

History. Acts 1987, No. 113, § 23; 1989, No. 276, § 3; 1995, No. 1127, § 4.

Amendments. The 1995 amendment inserted “some property owner in the district or creditor of the district as” in (c).

14-94-109. Planning by board.

  1. The board shall form plans relative to the acceptance, purchase, or construction of the improvement.
  2. To that end, the board may employ such engineers, attorneys, and other assistants as it may find necessary and shall file copies of all pertinent reports and actions of the board with the clerk.

History. Acts 1987, No. 113, § 7.

14-94-110. Powers of districts generally.

  1. Any district, in furtherance of any of the purposes set forth in § 14-94-105, shall have the authority to hire managers and other employees and to pay their salaries incident to the operation and maintenance of any of the improvements authorized by this chapter. It shall also have the authority to acquire and purchase equipment and machinery incident to the operation and maintenance of these improvements and shall be further authorized to do any and all other acts which shall be deemed necessary in order to purchase, construct, accept as a gift, operate, and maintain any and all improvements authorized by this chapter.
  2. Any district shall have the power to sell or lease any improvements owned by it to any nearby municipality or district or other improvement district within the nearby municipality serving on behalf of the property owners of the district or to any other person. The district may make contracts with any person, or it may operate any improvement and may connect any improvement with the improvements, systems, and transmission lines of any nearby municipality or other district or improvement district and, with respect to sewers, may carry its sewers to any proper outlet within or without the district.
  3. Any district may accept as a gift any or all of the improvements and facilities authorized in this chapter upon the assumption of the maintenance and operation of the improvements and shall have the authority to assess and collect benefits as provided in this chapter, in order to provide the revenue for the costs of the maintenance and operation.

History. Acts 1987, No. 113, § 6.

14-94-111. Corporate powers.

Each district shall be a body corporate with power to sue and to be sued on its contracts, and it shall have a corporate seal.

History. Acts 1987, No. 113, § 5.

14-94-112. Right of eminent domain.

  1. All districts organized under this chapter shall have the right of eminent domain in order that they may carry out the purposes of their creation.
  2. This right shall be exercised in the same manner as in the case of railroad, telegraph, and telephone companies, but without the necessity of making a deposit of money before entering into possession of the property condemned.
  3. Nothing in this chapter shall be construed to authorize any property owner improvement district to issue or sell revenue bonds or use the proceeds thereof to purchase, condemn, or otherwise aquire a utility generating plant, transmission or distribution system owned or operated by a regulated public utility.

History. Acts 1987, No. 113, § 21; 1989, No. 276, § 4.

14-94-113. Sale of land.

Any property that may be acquired by any district organized under this chapter may be sold by the board of the district for the price and on the terms it deems best.

History. Acts 1987, No. 113, § 22.

14-94-114. Priority of cases.

  1. All cases involving the validity of districts or the assessment of benefits and all suits to foreclose the lien or taxes shall be deemed matters of public interest and shall be advanced and disposed of at the earliest possible moment.
  2. All appeals therefrom must be taken and perfected within thirty (30) days after the order or decree.

History. Acts 1987, No. 113, § 19.

14-94-115. Assessment of benefits and damages.

    1. In the event that the board shall have voted to accept any offer of gift, or shall have voted to purchase any improvement, or shall have voted to construct any improvement or any facilities for the improvement, it shall thereupon appoint an assessor to assess the benefits which will accrue to the real property within the district as a result of the improvement.
    2. The assessor shall take an oath that he will well and truly assess all benefits that will accrue to the landowners of the district by reason of the improvement.
    1. The assessor shall proceed to assess the real property within the district, and he shall inscribe in a book each tract of real property and shall place in one (1) column his valuation of each tract or parcel of real property prior to the improvement, which column may be marked “Assessed Value of Real Property Prior to Improvement”, and in another column he shall place what he thinks will be the value of each tract or parcel of real property after the improvement, which column may be marked “Assessed Value of Real Property After Improvement”.
        1. If the assessed value of real property after improvement is greater than the assessed value of real property before improvement, as assessed by the assessor for the district, the difference between the two (2) shall be the assessed benefits that will accrue to each tract by reason of the improvement.
        2. If the assessed value of real property as assessed by the assessor of the district after the improvement is less than the assessed value of real property before the improvement, the difference between the two (2) shall be the assessed damages that will accrue to the particular parcel or tract of real property by reason of the improvement.
      1. The assessor shall enter the assessment of benefits or damages opposite the description of each piece of property in appropriate columns, one (1) of which may be marked “Assessed Benefits”, and the other may be marked “Assessed Damages”. In another column the assessor shall show the estimate of the probable cost to the property owner, which may be marked “Estimated Cost”.
    1. The assessment shall embrace not merely the lands but all railroads, tramroads, telegraph and telephone lines, pipelines, and other improvements on land that will be benefited by the acquiring or making of the improvement.
    2. No assessment shall apply against any pipelines or other improvements which are owned by any municipality, county, school district, or improvement district.
    1. The assessor shall place opposite each tract the name of the supposed owner as indicated by the deed records, but a mistake in name shall not vitiate the assessment.
      1. The assessor shall also assess all damages that will accrue to any property owner by reason of the improvement, including all injury to real property taken or damaged.
      2. Where the assessor returns no damages to any tract of real property, it shall be deemed a finding by him that no damages will be sustained.
  1. The assessor shall hold his office at the pleasure of the board, which can fill any vacancy in the position of assessor.

History. Acts 1987, No. 113, § 7.

14-94-116. Filing and notice of assessment — Hearing.

    1. The assessment shall be filed with the clerk.
      1. The secretary of the board shall thereupon give notice of its filing by two (2) publications in a newspaper having a general circulation in the municipality in which the district lies, with the first publication to be not fewer than seven (7) days prior to the date set for the hearing.
      2. This notice may be in the following form:
  1. On the day named in the notice, it shall be the duty of the commissioners and assessors as a board of equalization to meet together at the place named to hear all complaints against the assessment, and to equalize and adjust them. Their determination shall be final, unless suit is brought in the chancery court in which the municipality is located within thirty (30) days to review it.

“Notice is hereby given that the assessment of benefits and damages of District Number has been filed in the office of the City Clerk (or Town Recorder) of , where it is open to inspection. All persons wishing to be heard on the assessment will be heard by the commissioners and the assessor of the District between the hours of 10 a.m. and 4 p.m., at , in the City of , Arkansas, on the day of , 19 . Secretary”

Click to view form.

History. Acts 1987, No. 113, § 8.

Case Notes

Constitutionality.

Notice provisions within § 14-94-101 et seq. did not violate due process because indirect notice has been held sufficient in matters affecting real estate and appellants failed to establish that notice by publication was inappropriate to the circumstances of the case. Bullock's Ky. Fried Chicken, Inc. v. City of Bryant, 2019 Ark. 249, 582 S.W.3d 8 (2019).

14-94-117. Reassessment.

  1. The board may, not more often than one (1) time a year, require the assessor to reassess the benefits in the district. However, in the event the district shall have incurred any indebtedness or issued bonds, the total amount of assessed benefits shall never be diminished.
  2. The reassessment shall be made, advertised, and equalized in the same manner as provided in this subchapter for making the original assessment.

History. Acts 1987, No. 113, § 9.

14-94-118. Levy of tax.

    1. At the same time that the assessment of benefits is equalized or at any time thereafter, the board shall enter upon its records an order, which shall have all the force of a judgment, providing that there is levied upon the real property of the district a tax sufficient to pay the estimated cost of the improvement with ten percent (10%) added for unforeseen contingencies.
    2. The tax is to be paid by the real property owners in the district in the proportion to the amount of the assessment of benefits thereon and is to be paid in annual installments, as provided in the order.
  1. The tax so levied shall be a lien upon all the real property in the district from the time it is levied, shall be entitled to preference over all demands, executions, encumbrances, or liens whenever created, and shall continue until the assessment, with any penalty costs that may accrue thereon, shall have been paid. Provided, however, with the prior written approval of the board, the county clerk shall release from the lien for the assessment and tax any lot, block, or tract with respect to which the assessment and tax shall have been paid or prepaid.
    1. Promptly after entry of an order levying the tax, the board shall publish at least one (1) time in some newspaper having general circulation in the municipality a notice setting forth the order of levy and warning all persons affected by it that the order shall become final unless suit is brought to contest the order within thirty (30) days of the date of first publication of the notice; and
    2. No property owner shall be barred from contest of the levy within the thirty-days' publication period.
    1. The remedy against such levy of taxes shall be by suit in chancery.
    2. The suit must be brought within thirty (30) days from the time of notice that the levy was made, and, on the appeal, the presumption shall be in favor of the legality of the tax.

History. Acts 1987, No. 113, § 10; 1991, No. 504, § 3.

Case Notes

Attachment of Lien.

Improvement district's lien for nonpayment of improvement taxes attached to unimproved tracts; under the definition of “real property” in § 14-94-103, the land need only be subject to assessment, and it is not necessary that a benefit actually be assessed. The unimproved land in question was subject to the initial assessment and therefore constituted “real property” under § 14-94-101 et seq.Bullock's Ky. Fried Chicken, Inc. v. City of Bryant, 2019 Ark. 249, 582 S.W.3d 8 (2019).

Appellants' contention that improvement district's lien attached only to individual tracts on which improvement taxes were actually delinquent and unpaid was rejected; the plain language of subsection (b) of this section indicates a legislative intent for all property within the district to be subject to the lien. Bullock's Ky. Fried Chicken, Inc. v. City of Bryant, 2019 Ark. 249, 582 S.W.3d 8 (2019).

Commissioner's Prior Fraud Not Imputable to District.

Fraud of an attorney who did not record sellers' mortgages so as to give the sellers the priority the sellers bargained for but instead recorded a bank's mortgage before recording the sellers' mortgages was not imputable to an improvement district for which the attorney later served as commissioner because, inter alia, the priority of the improvement district's lien was not due to the fraud, but was statutory. Bullock's Ky. Fried Chicken, Inc. v. City of Bryant, 2019 Ark. 249, 582 S.W.3d 8 (2019).

Prepayment of Taxes.

Improvement district and a bank did not improperly refuse to allow an assignee to prepay improvement taxes due on certain tracts in the improvement district to release those tracts from the tax lien because (1) a prepayment provision in a trust indenture was not triggered when a developer never sold the tracts, (2) subsection (b) of this section did not apply, as there was no evidence of written approval by the improvement district's board to release any tracts, (3) the assignee never actually paid the taxes, and (4) the right to prepay taxes was not absolute. Bullock's Ky. Fried Chicken, Inc. v. City of Bryant, 2019 Ark. 249, 582 S.W.3d 8 (2019).

14-94-119. Interest on assessment.

The assessment of the benefits shall bear interest at a rate equal to the lesser of the maximum rate permitted by law or the rate of ten percent (10%) per annum from the time it is equalized, but the interest need not be calculated until it is necessary to do so to avoid exceeding the total amount of benefits and interest, or the interest may be first collected.

History. Acts 1987, No. 113, § 11.

14-94-120. Extension and collection of taxes.

    1. When the board shall make the levy of taxes, it shall be the duty of the assessor to extend the amount levied and set forth the amount in the assessment book opposite each benefit assessed in a column marked “Annual Collection”. The assessor shall file a certified copy of the completed assessment book with the county clerk.
      1. It shall be the duty of the county clerk of the county to extend the taxes annually upon the tax books of the county until the levy is exhausted.
      2. For his or her services, he or she shall receive a commission of one and one-half percent (1.5%) of the amount so extended.
        1. It shall then be the duty of the collector of the county to collect each year the taxes extended upon the tax books along with the other taxes until the entire levy is exhausted.
        2. For his or her services in making the collections, including prepayments, the collector shall receive a commission of one and one-half percent (1.5%). In the case of prepayments, the maximum commission shall be the lesser of one and one-half percent (1.5%) or fifty dollars ($50.00).
      1. The taxes shall be paid over by the collector to the district at the same time he or she pays over the county funds.
    1. In counties operating under the unit tax ledger system, the tax collector shall receive a commission of one and one-half percent (1.5%) for extending the taxes and a commission of an additional one and one-half percent (1.5%) for collecting the taxes.
  1. A property owner shall pay the taxes under this subchapter as a prerequisite to paying his or her ad valorem real property taxes.

History. Acts 1987, No. 113, § 12; 2001, No. 1816, § 3; 2019, No. 1077, § 1.

Amendments. The 2019 amendment, in (c), substituted “A” for “No”, “shall pay the taxes under” for “shall be required to pay the taxes provided for in”, and “ad valorem real property taxes” for “general taxes”.

14-94-121. Subsequent levies.

  1. If the tax first levied shall prove insufficient to pay the bonds, both the principal and interest, issued by the board on account of the improvement, as provided in this chapter, as the principal and interest on the bonds shall become due and payable, the board shall from time to time make the further levy upon the property previously assessed for a sum sufficient to complete the improvement and to pay the bonds and interest, which shall be extended and collected in the same manner as the first levy. However, the total levy shall in no case exceed the value of the benefits assessed on the property with interest.
  2. The performance of the duties set forth in this section may be enforced by mandamus.

History. Acts 1987, No. 113, § 13.

14-94-122. Payment of taxes — Enforcement.

  1. Payment. All taxes levied under the terms of this chapter shall be payable in installments at the same time as county, city, and school district taxes are paid.
  2. Delinquencies.
    1. If any taxes levied by the board under this chapter are not paid at maturity, the county tax collector shall not embrace the taxes in the taxes for which he shall sell the lands, but shall report the delinquencies to the board of the district, which shall add to the amount of the tax a penalty of twenty-five percent (25%).
    2. The board shall enforce the collection by chancery proceedings in the chancery court of the county in which the lands are situated having chancery jurisdiction. The court shall give judgment against the lands for the amount of the delinquent taxes, and the penalty of twenty-five percent (25%) and interest thereon, from the end of the sixty (60) days allowed for the collection thereof, at the rate of six percent (6%) per annum, and all costs of the proceedings.
    3. The judgments shall provide for the sale of the delinquent lands for cash by a commissioner of the court, after advertisement as set out in subsection (c) of this section.
    4. Proceedings and judgment shall be in the nature of proceedings in rem.
      1. It shall be immaterial that the ownership of the lands be incorrectly alleged in the proceedings.
      2. Judgment shall be enforced wholly against the lands and not against any other property or estate of the defendant.
    5. All or any part of the delinquent lands for each of the counties may be included in one (1) suit for each county, instituted for the collection of the delinquent taxes, etc., as aforesaid.
  3. Notice of Proceedings for Collection of Taxes. Notice of the pendency of the suit shall be given by publication weekly for four (4) weeks before judgment is entered for the sale of the lands in some newspaper published in the county where the suits may be pending, which public notice may be in the following terms:
  4. TrialDate — Suit byBondholder.
      1. The suit shall stand for trial at the first term of court after the complaint may be filed, if four (4) weeks shall expire either before the first day of the term, or during the term of court to which the suits are brought respectively, unless a continuance is granted for good cause shown, within the discretion of the court.
      2. The continuance, for good cause shown, may be granted as to a part of the lands or defendants without affecting the duty of the court to dispose finally of the others as to whom no continuance may be granted.
    1. In case the commissioners shall fail to commence suit within sixty (60) days after the taxes become delinquent, the holder of any bond issued by the district or any trustee on behalf of the holder of any bond issued by the district shall have the right to bring suit for the collection of the delinquent assessments, and the proceedings in the suit brought by the bondholder or trustee shall in all respects be governed by the provisions applicable to suits by the commissioners.
  5. TrialProcedure.
    1. Suits for collection shall be conducted in the name of the municipal property owners' improvement district, and in accordance with the practice and proceedings of chancery courts in this state, except as otherwise provided in this chapter, and neither attorneys ad litem, nor guardians ad litem, nor any of the provisions of § 16-65-403 [repealed] shall be required.
    2. The suits may be disposed of on oral testimony, as in ordinary suits at law.
    3. This law shall be liberally construed to give to the assessment and tax lists the effect of bona fide mortgage for a valuable consideration, and a first lien upon the lands, as against all persons having an interest therein.
    4. In such suits, it shall be sufficient to allege generally and briefly the organization of the district and the nonpayment of the taxes, setting forth the description of the lands proceeded against, and the amount chargeable to each tract, with prayer for foreclosure.
    5. No informality or irregularity in holding any of the meetings provided for herein, in valuation, in assessment of the lands, or in the name of the owners, or the number of acres therein shall be a valid defense to the action.
  6. Sale ofLand.
      1. In all cases where notice has been properly given and where no answer has been filed or, if filed, and the cause decided for the plaintiff, the court, by its decree, shall grant the relief as prayed for in the complaint.
        1. The court shall direct the commissioner to sell the lands described in the complaint at the courthouse door of the county wherein the decree is entered, at public outcry, to the highest and best bidder, for cash in hand, after having first advertised the sale weekly for two (2) weeks, consecutively, in some newspaper having a general circulation in the county.
        2. The advertisement may include all the lands described in the decree.
    1. If all the lands are not sold on the day as advertised, the sale shall continue from day to day until completed.
    2. The commissioner shall by proper deeds convey to the purchaser the lands so sold. The title to the lands shall thereupon become vested in the purchaser as against all others whomsoever.
    1. In any case where the lands are offered for sale by the commissioner, as provided by this subchapter, and the sum of the delinquent tax due, together with interest, cost, and penalty, is not bid for the lands, the commissioner shall bid the lands off in the name of the board of directors of the municipal property owners' improvement district, bidding therefor the whole amount due as aforesaid.
      1. The commissioner shall execute his deed conveying the land to the municipal property owners' improvement board.
      2. No report of sale other than the execution of the deed and its submission to the court for approval and no confirmation other than approval of the deed need be made in any such case, and a deed to the land executed by the commissioner, approved by the court and recorded, shall be conclusively presumed to be in consideration of the total amount rightfully due to the district whether that amount is stated or whether it is stated correctly or incorrectly in the deed.
    2. The deeds, together with other deeds as are duly executed in conformity to the provisions of this subchapter and recorded, shall be received as evidence in all cases showing an indefeasible title in the district, unassailable in either law or equity.
  7. (A) No provision contained herein shall relieve any purchasers of lands, excluding the district, from the obligation to pay all future taxes levied under the terms of this chapter following the enforcement of these foreclosure procedures.
  8. Attorney'sFees. In all suits brought for collection of delinquent taxes under this subchapter, a reasonable attorney's fee shall be taxed in favor of the attorney for the plaintiff, which fee shall be added to the amount of the cost.
  9. Redemption.
    1. At any time within thirty (30) days after the rendition of the final decree of the chancery court provided for in this subchapter, the owner of the lands may file his petition in the court rendering the decree, alleging the payment of taxes on the land for the year for which they were sold and payment of all costs associated with the enforcement of the provisions of this chapter, including attorney's fees.
    2. Upon the establishment of that fact, the court shall vacate and set aside that decree, provided that any landowner shall have the right within thirty (30) days after the day upon which lands are offered for sale to redeem any and all lands sold at the sale.

“Board of Commissioners, Municipal Property Owners' Improvement District vs. Delinquent Lands All persons having or claiming an interest in any of the following described lands, are hereby notified that suit is pending in the Chancery Court of County, Arkansas, to enforce the collection of certain municipal property owners' improvement district taxes on the subjoined list of lands, each supposed owner having been set opposite his or her or its lands, together with the amounts severally due from each, to wit: ” (Then shall follow a list of supposed owners, with a descriptive list of said delinquent lands, and amounts due thereon respectively as aforesaid), and said public notice may conclude in the following form: “All persons and corporations interested in said lands are hereby notified that they are required by law to appear within four (4) weeks and make defense to said suit, or the same will be taken for confessed, and final judgment will be entered directing the sale of said lands for the purpose of collecting said taxes, together with the payment of interest, penalty, and costs allowed by law. Clerk of Said Court.”

Click to view form.

(B) The obligation to pay all future taxes shall also extend to any purchaser of lands who purchases such lands from the district following the district's obtaining of the land pursuant to subsection (g) of this section.

History. Acts 1987, No. 113, § 14; 1991, No. 927, § 1.

Case Notes

Attachment of Lien.

Requirement in this section that foreclosure actions under § 14-94-101 et seq. proceed in rem did not mean that the improvement district could only foreclose on specific tracts that were delinquent on payment of assessment taxes rather than on all the property within the improvement district; given that the legislative intent indicates that the lien attaches to all unreleased property within an improvement district, it is fair to assume the requirement of in rem proceedings merely intends to limit the scope of the foreclosure action to real property within a district. Bullock's Ky. Fried Chicken, Inc. v. City of Bryant, 2019 Ark. 249, 582 S.W.3d 8 (2019).

Property Exempt from Taxation.

Property acquired and held by an improvement district as the result of foreclosure for failure to pay improvement district assessments is not subject to taxation. Pulaski County v. Carriage Creek Property Owners Improv. Dist. No. 639, 319 Ark. 12, 888 S.W.2d 652 (1994).

Requirements for Foreclosure Complaint.

Failure of improvement district's foreclosure complaint to separately describe each delinquent tract and the taxes due on each tract was not fatal because (1) § 14-94-101 et seq. did not define the term “tract” used in this section nor contain specific instructions for how a district should delineate land to be foreclosed upon, and (2) the complaint plainly described the land the improvement district sought to foreclose, as well as the tracts excluded from the action, and identified the owner of the land and the total amount of taxes owed. Bullock's Ky. Fried Chicken, Inc. v. City of Bryant, 2019 Ark. 249, 582 S.W.3d 8 (2019).

Cited: Barker v. Frank, 327 Ark. 589, 939 S.W.2d 837 (1997).

14-94-123. Negotiable notes, bonds, or evidence of debt.

    1. In order to meet preliminary expenses and to finance the cost of the improvements to be accomplished, with costs incidental to them and to the issuance of the bonds, the board may issue bonds of the district and may pledge all assessments of benefits to the district and all or any part of the profits of the district derived from its operation of any improvements of the district to the payment of the bonds.
    2. The board may also issue to the contractors who do the work evidences of debt bearing interest at the rate or rates prescribed by the board and secure them in the same manner.
    3. As for the security for the payment of any indebtedness, the members of the board may, by resolution, establish the rates for use of the improvements to be collected from the users of the improvements and may mortgage any or all of its property, including improvements.
    1. Bonds issued under the authority of this chapter shall:
      1. Bear interest at such rate or rates;
      2. Mature at such time or times;
      3. Be payable, as to principal, premium, if any, and interest, at such places, within or without the State of Arkansas;
      4. Be in such form, whether bearer or registered, negotiable or nonnegotiable;
      5. Be subject to such exchange privileges; and
      6. Have such other details as may be set forth in the resolution of the board authorizing their issuance.
    2. The resolution may provide for the execution and delivery of a trust indenture or like instrument by the board securing the bonds and for the execution and delivery of other writings pertaining thereto.
    3. The bonds, and coupons, if any, may be executed by the manual or facsimile signatures of the members of the board.

History. Acts 1987, No. 113, § 15.

Case Notes

Trust Indentures.

Pledge and mortgage agreements entered into between municipal improvement districts and trustee of public bond financing, while termed by the parties as a trust, were actually more akin to a trust indenture; therefore, a breach of contract cause of action existed on the part of the districts against the trustee when the trustee failed to perform its obligations under the pledge and mortgage agreements. First United Bank v. Phase II, Edgewater Addition Residential Prop. Owners Improvements Dist. No. 1 of Maumelle, 347 Ark. 879, 69 S.W.3d 33 (2002).

Cited: First Ark. Bank & Trust v. Gill Elrod Ragon Owen & Sherman, P.A., 2013 Ark. 159, 427 S.W.3d 47 (2013).

14-94-124. Tax exemption.

The bonds, and interest on them, shall be exempt from all state, county, and municipal taxes, including income, property, and inheritance taxes.

History. Acts 1987, No. 113, § 15.

14-94-125. Payment of bonds and interest.

    1. All bonds issued under the terms of this chapter shall be secured by a lien on all real property in the district.
    2. The making of assessments, levies, and collections, as authorized by this chapter, may be enforced by mandamus.
      1. If any bond, or interest thereon, is not paid within thirty (30) days after its maturity, it shall be the duty of the chancery court, on application of any holder of the bond or any interest coupon so overdue, to appoint a receiver to collect the taxes aforesaid and an assessor to reassess the benefits, if necessary.
      2. The proceeds of the taxes and collections shall be applied, after payment of costs, first to overdue interest, and then to payment pro rata of all bonds issued by the district which are then due and payable.
      1. The receiver may be directed by suit to foreclose the lien of the taxes on the real property.
      2. The suits brought by the receiver shall be conducted in all matters as suits by the board as provided in this chapter and with like effect, and the decree and deeds therein shall have the same presumption in their favor.
      3. When all the sums have been paid, the receiver shall be discharged and the affairs of the district conducted by the board as provided in this chapter.

History. Acts 1987, No. 113, § 18.

14-94-126. Dissolution of district.

    1. After all bonds or other evidences of indebtedness, plus all interest on them, shall have been paid in full, then a district may, by unanimous vote of the members of the board, be dissolved and all further levies and assessments cancelled, the members of the board relieved from further duties, and the surplus funds of the district distributed in accordance with the procedures set forth in subsection (b) of this section.
    2. The districts are authorized, at the discretion of the respective boards, to enter into repair and maintenance agreements and to expend funds of the districts for these purposes.
    1. In the event that the board shall vote to dissolve a district under subsection (a) of this section, the board shall convert all assets into cash and shall first pay from the surplus funds all debts of the district, including any reasonable legal and other expenses incurred in connection with the dissolution.
      1. The board shall then refund all remaining funds of the district pro rata to the property owners who hold title to the property in the district at the time the refund is made.
        1. The pro rata refund to the property owners shall be made on the basis of the most recent assessment or reassessment of benefits on the parcel of property prior to dissolution and shall be in the same proportion that the assessed benefits of each individual parcel of property bears to the total of the assessed benefits of all the property in the district.
        2. No property or owner whose property is delinquent in any sum for district assessments, penalties, or interest at the time the refund is made shall be counted in calculating the pro rata distribution or receive any portion of the refund.
      2. Within ninety (90) days after the distribution of surplus funds has been completed, the board shall file a copy of the resolution of dissolution and a financial statement of the district, verified by all members of the board, in the office of the clerk of the municipality in which the district was established.

History. Acts 1987, No. 113, § 17.

14-94-127. Lien for preliminary expenses.

If for any reason the improvement contemplated by any district organized under this chapter is not made, the preliminary expense shall be a first lien upon all the real property in the district and shall be paid by a levy of a tax on it. The levy shall be made by the chancery court of the county and shall be collected by a receiver to be appointed by the court.

History. Acts 1987, No. 113, § 20.

Case Notes

Constitutionality.

The absence of language in this section directing the chancery court to use a particular method for computing the tax levy bestows upon the judiciary a nondelegable power of the legislature in violation of the separation of powers provisions of the Arkansas Constitution. Robert D. Holloway, Inc. v. Pine Ridge Addition Residential Property Owners, 332 Ark. 450, 966 S.W.2d 241 (1998).

14-94-128. Continued existence of district.

If the petition for formation of the district provides therefor or the owners of real property in the district agree thereto, a district shall not cease to exist upon the acquiring, construction, or completion of the improvement, but it shall continue to exist for the purpose of preserving, maintaining, and operating the improvement, replacing equipment, paying salaries to employees, and performing any other functions or services authorized in this chapter. To this end, the board may, from time to time, make such additional levies based upon the assessment of benefits as may be necessary for such purposes. However, the amount of the total levies shall not exceed the assessed benefits and interest thereon.

History. Acts 1987, No. 113, § 17.

Chapter 95 Urban Service District

Subchapter 1 — General Provisions

14-95-101. Intent.

The intent of this chapter is:

  1. To enable municipalities to establish urban service districts upon petition by residents in a proposed district for the provision of services;
  2. To provide for the management of the services;
  3. To authorize the levying of fees for payment of the services;
  4. To allow for the termination of water, sewer, or garbage services upon nonpayment of the fees; and
  5. For any other similar purposes.

History. Acts 1995, No. 1090, § 1.

14-95-102. Urban service districts generally.

Urban service districts may be established, operated, combined, enlarged, reduced, or abolished, subject to the provisions of this chapter, by ordinance of the governing body of a city or town to provide one (1) or more of the services authorized to be provided by the municipal governments.

History. Acts 1995, No. 1090, § 2.

14-95-103. Area served.

  1. An urban service district may include all or any part of the jurisdictional areas of a municipality.
  2. Two (2) or more cities, or one (1) or more cities and one (1) or more towns, may create a joint service district through an interlocal agreement.

History. Acts 1995, No. 1090, § 2.

14-95-104. Purposes of district.

  1. An urban service district shall be defined as a municipal service organization established to provide one (1) or more city services or additional municipal services and financed from revenues secured from within the designated service area through the levy and collection of service charges.
  2. Districts may be created for the following purposes, all of which are found to be public purposes within the meaning of Arkansas Constitution, Amendment 65:
    1. Emergency services, including ambulance services, civil defense services, fire prevention and protection services, and public safety and security services;
    2. Solid waste services, including recycling services, and solid waste collection and disposal services;
    3. Parking services and public transportation services;
    4. Recreation services, including parks, playgrounds, bicycle paths, and recreation programs; and
    5. Neighborhood improvement services, including, but not limited to:
      1. Housing maintenance and redevelopment;
      2. Neighborhood business district maintenance and redevelopment;
      3. Community facilities maintenance and redevelopment;
      4. Street lighting and street cleaning; and
      5. Weed lot and alley maintenance services.

History. Acts 1995, No. 1090, § 2.

Research References

Ark. L. Rev.

Note, Dolan v. City of Tigard: Paving New Bicycle Paths Through the Thickets of the Fifth Amendment's Takings Clause, 48 Ark. L. Rev. 823.

14-95-105. Financing.

Notwithstanding any provisions of law requiring uniform taxation within a municipality, a municipal governing body, by ordinance, may establish urban service districts and levy service charges to provide and finance any municipal service or function which a municipality is otherwise authorized to undertake.

History. Acts 1995, No. 1090, § 2.

Subchapter 2 — Establishment

14-95-201. Establishment of urban service districts — Procedure generally.

An urban service district may be established in the following manner:

    1. Upon petition to the governing body of a city or town signed by not less than twenty-five percent (25%) of the electors of a proposed urban service district, the governing body of a city or town may establish an urban service district by ordinance adopted after notice and public hearing.
    2. The governing body shall set a date for a public hearing and give notice of the hearing.
    3. Following the public hearing, the governing body may either:
      1. Adopt an ordinance creating the urban service district;
      2. Refuse to act further on the matter; or
      3. Submit the matter to the electors of the proposed district by referendum.
    1. Where an ordinance is adopted establishing an urban service district, the governing body of the city or town shall, in addition to all other requirements, at a minimum, publish notice of the adoption of the ordinance.
    2. The notice shall include a statement setting out the elector's right to protest.
    3. If, within thirty (30) days of the notice, fifty percent (50%) or more of the electors residing in the proposed urban service district file a written protest, by individual letter or petition, then the ordinance creating the urban service district shall be void.
    4. If hearings on protests indicate that a geographic area desires exclusion from the proposed urban service district, the ordinance may be amended to exclude the property in that area.
  1. No service charges shall be assessed until after the thirty-day period has elapsed.

History. Acts 1995, No. 1090, § 3.

14-95-202. Ordinance requirements.

An ordinance to establish an urban service district shall include:

  1. The name of the proposed district;
  2. The services to be provided by the proposed district;
  3. The convenience or necessity of the proposed district;
  4. A map containing the boundaries of the proposed district;
  5. The estimated cost of services to be provided and methods of financing the proposed services;
  6. The method for administering the proposed district; and
  7. The time period for which the fee is to be levied, but in no case to exceed ten (10) years from the date of the establishment of the district, unless the fees are pledged to service a bond indebtedness, in which case the time period of the levy shall be on a parity with the maturity of the bonds.

History. Acts 1995, No. 1090, § 3.

14-95-203. Initiative and referendum.

All provisions of Arkansas Constitution, Amendment 7, shall apply to an ordinance establishing an urban service district.

History. Acts 1995, No. 1090, § 3.

Subchapter 3 — Modification or Dissolution

14-95-301. Modification or dissolution — Prohibitions — Exception.

  1. Once an urban service district has incurred bond indebtedness, it shall not be dissolved or modified in any respect until all bonds are retired.
  2. This prohibition shall not prevent the creation of a new or additional district with boundaries larger, smaller, or coextensive with, an existing urban service district.

History. Acts 1995, No. 1090, § 4.

14-95-302. Modification or dissolution generally.

The governing body of a city or town may, by ordinance, with notice and public hearing:

  1. Decrease or terminate the type of services and associated fees that the urban service district is authorized to provide, unless fifty percent (50%) or more of the electors residing in the district protest;
  2. Enlarge the district to include adjacent land if fifty percent (50%) or more of the electors residing in the proposed addition do not protest and the advisory board or administrative board of the original district consents;
  3. Combine the urban service district with another urban service district for ease of administration, unless fifty percent (50%) or more of the electors in either district protest, but it may not combine advisory boards or administrative boards without the concurrence of each;
  4. Abolish the urban service district unless fifty percent (50%) or more of the electors in the district protest;
    1. Change the method for administering the urban service district, unless fifty percent (50%) of the electors in the district protest.
    2. Provided, that existing advisory boards or administrative boards cannot be dissolved, diminished, or combined without their consent; and
  5. Increase or change the services or service charges that the urban service district is authorized to provide upon petition of no less than twenty-five percent (25%) of the electors of the district;

History. Acts 1995, No. 1090, § 4.

14-95-303. Dissolution — Combination of service district.

Dissolution or any combination of service districts shall provide for the following:

  1. The transfer or other disposition of property and other rights, claims, and assets of the district;
  2. The payment of all obligations from the resources of the district;
  3. The payment of all costs of abolishing or combining a district from the resources of the districts involved;
  4. The honoring of any bonds, debt, contract, obligation, or cause of action accrued or established under the urban service district;
  5. The provision for the:
    1. Equitable disposition of the assets of the district;
    2. Adequate protection of the legal rights of employees of the district; and
    3. Adequate protection of the legal rights of creditors; and
  6. The transfer of all property and assets to the jurisdiction of the city or town.

History. Acts 1995, No. 1090, § 4.

14-95-304. Voter approval.

All changes in urban service districts may be submitted to the electors of the existing or proposed district, whichever is larger, by initiative or referendum.

History. Acts 1995, No. 1090, § 4.

Subchapter 4 — Administration

14-95-401. Administration of urban service districts.

  1. An urban service district shall be administered directly as a part of the office of the mayor, or the city manager or city administrator, as a part of a department with or without an advisory or administrative board, or as a separate department with or without an advisory or administrative board, as defined in the petition and establishing ordinance.
  2. The budget for each urban service district shall be appropriated as other funds of the city.

History. Acts 1995, No. 1090, § 5.

14-95-402. Service charges — Levy.

  1. The governing body of the city or town is authorized to levy, by ordinance, service charges for the district to establish, operate, maintain, support, and otherwise provide any and all services authorized for the district.
    1. Service charges adopted by the governing body shall be equally administered on a per capita or per household basis, or on a per unit of service basis, or a combination of these methods.
    2. Services charge levied on a per capita or per household basis shall be collected equally without regard to whether or not an individual or household avails itself of the service.
  2. Except as otherwise provided for in this chapter, no service fee may be levied for a period of time exceeding ten (10) years except upon a new petition from electors in the service district and by passage of a new authorizing ordinance by the city or town's governing body per the provisions in this chapter.

History. Acts 1995, No. 1090, § 3.

14-95-403. Service charges — Billing.

    1. Service charges for urban service districts may be entered on the municipal water bill, sewer bill, or garbage bill.
    2. Funds collected on the bills by the municipal utilities shall be paid over to the depository for the district's funds.
    3. Upon nonpayment of service fees, the municipality or municipal utility may discontinue water, sewer, or garbage services as provided in its own ordinances.
    1. Funds raised through service charges for an urban service district may be used only for urban service district purposes.
    2. These public funds shall be maintained in the town or city treasury and accounted for as a separate enterprise fund.
    3. Disbursements of all urban service district funds shall be made only upon voucher or claim presented to and approved by the mayor, city manager, or city administrator.

History. Acts 1995, No. 1090, § 5.

Subchapter 5 — Capital Construction and Improvements Program

14-95-501. Creation.

  1. The governing body of a city or town which has established an urban service district is authorized to compile a program of capital construction, reconstruction, and improvements within the district and submit the program to the Arkansas Development Finance Authority.
  2. Each program shall specify:
    1. The capital construction, reconstruction, and improvements to be made within the district;
    2. The estimates of cost of the specific projects; and
    3. The total cost for each district within a municipality.
  3. The mayor, city manager, or city administrator is authorized to employ architects and other like professional and technical assistance as is determined to be necessary for laying out, compiling, and implementing the program of capital construction, reconstruction, and improvements within the district.

History. Acts 1995, No. 1090, § 6.

14-95-502. Financing.

  1. To finance the cost of the program, the governing body of each municipality shall adopt a resolution pledging the urban service district's service charges, or a portion thereof, to finance the program compiled for the district.
  2. The resolution shall specify:
    1. The district's projected revenues;
    2. The projected costs of the program; and
    3. The period of time for which the district's revenues shall be obligated.

History. Acts 1995, No. 1090, § 6.

Subchapter 6 — Arkansas Development Finance Authority

14-95-601. Pledge of revenues.

  1. On and after the effective date of this chapter, the Arkansas Development Finance Authority is authorized:
    1. To receive from an urban service district a pledge of revenues; and
    2. To package several programs of the districts from several counties and municipalities into a single bond issue to finance the various programs of the several districts.
  2. The authority is authorized to execute and deliver the pledges, resolutions, instruments, and other undertakings and writings and to take any action as may be appropriate to evidence the debt obligations and the security therefor and to carry out the purposes of this chapter.

History. Acts 1995, No. 1090, § 7.

14-95-602. Revenue bonds.

  1. Pursuant to the intention of the General Assembly expressed in § 15-5-303, the Arkansas Development Finance Authority is hereby authorized and empowered to issue revenue bonds, at one (1) time or from time to time, and to use the proceeds there of to:
    1. Provide urban service districts in various counties or municipalities with money for a program of capital construction, reconstruction, improvements, and services within the districts for purposes set forth in this chapter;
    2. Pay all incidental expenses in connection with those purposes;
    3. Pay the expenses of authorizing and issuing the bonds;
    4. Establish a debt service reserve to secure the payment of the bonds, if the authority deems it desirable; and
    5. Make provision for the payment of interest and trustee's fees on the bonds.
  2. The bonds outstanding under this chapter may be in such principal amount as the authority shall determine to be necessary for the accomplishment of the purposes of this chapter.
  3. The bonds shall be authorized, shall be sold by the means, shall bear the rate or rates of interest, and shall be executed and delivered in the manner as the authority may determine pursuant to the provisions of §§ 15-5-301—15-5-316, inclusive.
  4. The bonds issued shall mature over a period of not more than thirty (30) years.
  5. The authority is authorized to enter into authorizing resolutions and trust indentures as it deems necessary to secure the revenue bonds.

History. Acts 1995, No. 1090, § 7, 8.

14-95-603. Issuance.

  1. Bonds may be issued for the purpose of refunding any bonds issued under this chapter.
  2. Refunding bonds may be issued by the Arkansas Development Finance Authority pursuant to the provisions of § 15-5-314.

History. Acts 1995, No. 1090, § 13.

14-95-604. Restrictions.

All pledged revenues are hereby specifically declared to be restricted in their use and dedicated and to be used solely as provided and authorized in this chapter.

History. Acts 1995, No. 1090, § 10.

14-95-605. Bond fund.

  1. Commencing the first day of the month succeeding the issuance of the bonds under this chapter and so long as any bonds are outstanding under this chapter, the pledged revenues of each municipality's urban service district shall be periodically transferred to the authority and shall not be subject to appropriation by the municipality, but, as and when received by the authority, shall be deposited in a bank or banks selected by the authority to the credit of a fund designated as the “Urban Service District Revenue Bond Fund”, with appropriate identification for separate issues or series.
    1. So long as any bonds are outstanding under this chapter, all moneys in any bond fund shall be used solely for the payment of the principal of, premiums, if any, interest on, and trustees' and paying agents' fees in connection with the bonds, with the maintenance of necessary funds and reserves.
    2. Except that, the authorizing resolution or trust indenture may provide for the withdrawal, for other purposes, of surplus moneys, as defined in the authorizing resolution or trust indenture.
  2. Nothing in § 14-95-604, this section, or § 14-95-608 is intended to prohibit the authority from investing moneys received under this section, § 14-95-604, or § 14-95-608, as provided in this chapter.

History. Acts 1995, No. 1090, § 10.

14-95-606. Deposit of proceeds.

  1. The Arkansas Development Finance Authority shall include necessary provisions in the authorizing resolution or trust indenture to provide for the deposit of the proceeds of the bonds pursuant to the provisions of § 15-5-209.
  2. The authority may create and establish one (1) or more special funds in such depositories and make such investment as it may designate to provide for the construction, secure the bonds, establish reserves, and fund other necessary functions or activities authorized by this chapter.

History. Acts 1995, No. 1090, § 12.

14-95-607. Liens and pledges.

  1. The principal of, premiums, if any, interest on, and trustees' and paying agents' fees in connection with the bonds shall be secured by a lien on and pledge of, and shall be payable from, the pledged revenues defined in § 14-95-608.
  2. The authorizing resolution or trust indenture shall set forth details of the nature and extent of the lien and pledge, including provisions for the use of surplus revenues, if any, for any other lawful purposes.

History. Acts 1995, No. 1090, § 9.

14-95-608. Pledged revenues.

The principal of, premiums, if any, interest on, and trustees' and paying agents' fees in connection with all bonds issued under this chapter shall be secured solely by a lien on and pledge of each municipality's urban service district's revenues derived from their service charges credited to the town or city treasury, and the pledging of those revenues, the “pledged revenues”, is hereby authorized.

History. Acts 1995, No. 1090, § 10.

14-95-609. Resolutions and indentures.

  1. Any authorizing resolution and trust indenture shall, together with this chapter, constitute a contract between the Arkansas Development Finance Authority and the holders and registered owners of the bonds, which contract, and all covenants, agreements, and obligations therein, shall be promptly performed in strict compliance with the terms and provisions of the contract, and the covenants, agreements, and obligations of the authority may be enforced by mandamus or other appropriate proceedings at law or in equity.
  2. In this regard, in addition to other provisions referred to above, the authority is hereby expressly authorized to include in any authorizing resolution or trust indenture a covenant that, to the fullest extent possible, each municipality's urban service district's revenues derived from its service charges will be collected under this chapter to the fullest extent possible so as to avoid any impairment of the security for the bonds and that the authority will always maintain reserves at proper levels, and otherwise comply with any provisions of authorizing resolutions or trust indentures concerning revenues and bonds.

History. Acts 1995, No. 1090, § 11.

14-95-610. Bond description and liability.

  1. It shall be plainly stated on the face of each bond that:
    1. It has been issued under the provisions of this chapter;
    2. The bonds shall be obligations only of the Arkansas Development Finance Authority, as specified in the applicable trust indenture; and
    3. In no event shall they constitute indebtedness for which the faith and credit of the State of Arkansas or any of its revenues, within the meaning of Arkansas Constitution, Amendment 20, are pledged.
  2. No member of the authority shall be personally liable on the bonds.

History. Acts 1995, No. 1090, § 9.

Chapters 96-103 [RESERVED.]

[Reserved]

Subtitle 6. Water and Soil Conservation Generally

Chapters 104-113 [RESERVED.]

[Reserved]

Subtitle 7. Water and Soil Improvement Districts

Chapter 114 General Provisions

A.C.R.C. Notes. Acts 2005, No. 1243, § 2, provided:

“Arkansas Soil and Water Conservation Commission renamed ‘Arkansas Natural Resources Commission’.

“(a)(1) “The ‘Arkansas Soil and Water Conservation Commission’ as it is referred to or empowered throughout the Arkansas Code, is renamed.

“(2) In its place, the ‘Arkansas Natural Resources Commission’ is established, succeeding to the general powers and responsibilities previously assigned to the Arkansas Soil and Water Conservation Commission.

“(3) The Executive Director of the Arkansas Soil and Water Conservation Commission is directed to identify and revise all interagency agreements, financial instruments, funds, and other necessary legal documents in order to effect this change.

“(b) Nothing in this act shall be construed as impairing the powers and authorities of the Arkansas Soil and Water Conservation Commission before the effective date of the name change.”

Effective Dates. Acts 1999, No. 52, § 6: Feb. 11, 1999. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly that conjunctive use of water is necessary for Arkansas' long term economic benefit; that districts must participate in any long-term solution; that several studies would be delayed and could impact development of water resource within the watershed. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

14-114-101. Conflict of regulations.

In the event that the regulations of water and soil improvement districts under subtitle 7 of title 14 of the Code conflict, and in the event that the water and soil improvement districts are unable to resolve the conflict, the Arkansas Soil and Water Conservation Commission shall have all powers necessary to resolve the conflict including the power to require any district to modify or rescind any regulation in conflict.

History. Acts 1989, No. 618, § 3.

14-114-102. Definitions — Financial statement.

  1. As used in this section, unless the context otherwise requires:
    1. “Commission” means the Arkansas Soil and Water Conservation Commission; and
    2. “District” means all levee, drainage, irrigation, watershed, and river impoundment districts.
  2. Financial reporting.
    1. On or before March 1 of each year, each district shall file with the county clerk where the majority of lands in a district are located a financial statement as of the preceding December 31.
    2. The financial statements shall include, but not be limited to, the following:
      1. A statement of revenues, expenses, and fund balances;
      2. A balance sheet;
      3. A statement of the cash on hand as of January 1 of the year for which the report is made, together with all other assets of the district;
      4. The total receipts for the preceding year;
      5. The disbursements for administration, construction, and maintenance for bonds redeemed and for interest paid on outstanding bonds; and
      6. Interest due on outstanding bonds, together with all other indebtedness of the district.
    3. Each district's accounts shall be open for inspection according to the rules governing freedom of information as set forth in § 25-19-101 et seq.
    4. Failure of an official to perform the duties and acts required herein shall be a violation punishable by a fine of not less than one hundred dollars ($100) and not more than one thousand dollars ($1,000).

History. Acts 1993, No. 1175, §§ 1, 2.

14-114-103. Watershed or basin studies and funding for costs.

    1. Irrigation, drainage, watershed, regional water distribution, levee, and conservation districts may participate in watershed or basin studies within their basins to assess:
      1. The water quantity or quality issues within the basin; or
      2. The impacts, feasibility, planning, and design of any proposed project within the watershed or basin that could impact the districts' facilities and operation.
    2. The study may be conducted by one (1) or more districts, with or without the assistance of the state or federal government.
  1. A district may use any operation and maintenance funds or other funds not otherwise pledged to assist with study costs.

History. Acts 1999, No. 52, § 1; 2001, No. 1553, § 23.

14-114-104. [Repealed.]

Publisher's Notes. This section, concerning funds for study costs, was repealed by Acts 2001, No. 1553, § 23. The section was derived from Acts 1999, No. 52, § 2.

Chapter 115 Interstate Watershed Cooperation Act

Preambles. Acts 1967, No. 31 contained a preamble which read:

“Whereas, the United States of America under and by virtue of the several acts of Congress, active by and through its various departments and agencies, is authorized to cooperate with and furnish financial assistance to the states and local public organizations in the execution of plans and projects for watershed protection, prevention of erosion, flood water and sediment damage and the conservation, development, utilization, and disposal of water; and

“Whereas, in order to obtain such federal assistance, it is necessary that the local organization have the requisite power and authority with respect to providing the necessary lands, easements, and rights-of-way, for financing the local share of the installation cost and to operate and maintain the works so installed; and

“Whereas, under existing laws local organizations in this State do not have authority to participate in such projects involving works of improvements which are located partly within and partly without this State; and

“Whereas, it is desirable that the local organizations in this State be empowered to participate in such interstate projects and enter into agreements with state and local organizations of adjoining states for the construction, operation, and maintenance of works of improvement within and without this State in order to obtain and receive the benefits that will accrue by reason of such improvements to lands and other property within the boundaries of this State….”

Effective Dates. Acts 1967, No. 31, § 8: approved Feb. 2, 1967. Emergency clause provided: “It is hereby found and declared that under existing laws, improvement districts of this State are unable to participate in interstate watershed projects; that there is an urgent need for the protection afforded to lands and property of this State by participating in and carrying out of such projects; that the enactment hereof will enable improvement districts of this State to obtain and receive the financial and other assistance available under national legislation for preserving and protecting the State's land and water resources; therefore, an emergency is declared to exist and this act, being necessary for the protection of the public peace, health and safety of this State, shall take effect and be in force from and after its passage.”

Research References

ALR.

Liability for diversion of surface water by raising surface level of land. 88 A.L.R.4th 891.

Ark. L. Rev.

Lex Aquae Arkansas, 27 Ark. L. Rev. 429.

14-115-101. Title.

This chapter may be known as the “Interstate Watershed Cooperation Act.”

History. Acts 1967, No. 31, § 1; A.S.A. 1947, § 21-1801.

14-115-102. Purpose — Construction.

  1. The purpose of this chapter is to enable existing improvement districts or any improvement districts to be created, to make, or contribute to the cost of, improvements for the purpose of flood prevention and control, preventing erosion, floodwater, and sediment damage, and of furthering the conservation, development, utilization, and disposal of water in interstate watershed projects.
  2. The provisions of this chapter shall not be construed to impair or limit in any way the interstate rights of the federal government or any of its departments or agencies, with respect to its jurisdiction, management, or control over waters or other matters or projects of an interstate nature. It is the purpose and intention of this chapter that neither the powers granted herein nor any agreement pursuant hereto shall interfere directly or indirectly with the federal jurisdiction or authority.
  3. None of the additional powers granted by this chapter shall be exercised except for the purpose of participating in programs authorized by the Congress of the United States relating to the control and prevention of floodwater and sediment damages and the conservation, development, utilization, and disposal of water.

History. Acts 1967, No. 31, § 3; A.S.A. 1947, § 21-1803.

14-115-103. Definitions.

As used in this chapter, unless the context otherwise requires:

  1. “Interstate watershed project” means any undertaking in cooperation with the federal government for preparing and carrying out works of improvement for the control and prevention of floodwater, erosion, and sediment damage, and the conservation, development, utilization, and disposal of water lying wholly or in part outside the boundaries of this state, the installation of which will benefit lands and property in this state;
  2. “Improvement district” or “district” includes drainage, soil or water conservation, irrigation, levee, flood control, or other special improvement district, and all other political subdivisions including incorporated cities and towns;
  3. “Bonds” means any notes, bonds, or other obligations without regard to form or source of payment, issued by any district pursuant to any law of this state;
  4. “Taxes” means general taxes levied on an ad valorem basis or special benefit taxes levied pursuant to the laws governing improvement districts.

History. Acts 1967, No. 31, § 2; A.S.A. 1947, § 21-1802.

14-115-104. Authority to cooperate with state and federal governments.

With respect to planning, constructing, operating, and maintaining works of improvement in the interstate watershed projects, the governing authority of any improvement district is authorized to cooperate and enter into agreements with, and to furnish financial and other assistance to, and receive financial and other assistance from:

  1. The federal government, or any department or agency thereof;
  2. The state government of other states; and
  3. Other improvement districts in this state and in adjoining states.

History. Acts 1967, No. 31, § 4; A.S.A. 1947, § 21-1804.

14-115-105. Contents of agreements between Arkansas and another state.

  1. Any such agreement between a district in this state and a district in an adjoining state shall contain as a minimum the following:
    1. A statement of the obligations of each district as to the installation of the works of improvement and the amount or proportionate share of the nonfederal installation costs to be borne by each district;
    2. A statement of the obligations of each district as to the operation and maintenance of the works of improvement lying within each district and the amount or proportionate part of the cost of the operation and maintenance to be borne by each district;
    3. The obligation of each district to pay a proportionate part of any damages which may be recovered against either district resulting from the injury to, or taking of, lands or other property necessary for carrying out the works of improvement;
    4. A statement that any installation funds remaining after completion of the work and payment of all costs shall be divided and returned to each district in the same proportion that each contributed to the cost.
  2. However, no such agreement with an adjoining state or district of that state shall be inconsistent with the Constitution of the United States of America, or of either state, for the carrying out of the proposed works of improvement.

History. Acts 1967, No. 31, § 5; A.S.A. 1947, § 21-1805.

14-115-106. Raising funds to carry out obligations under contracts entered.

The governing authority of any improvement district is authorized to appropriate sums, issue bonds, and levy taxes in the manner and for the purposes provided by the law under which it is organized to raise funds as necessary to fulfill the district's obligations under the terms of any agreement entered into under this chapter.

History. Acts 1967, No. 31, § 6; A.S.A. 1947, § 21-1806.

Chapter 116 Regional Water Distribution District Act

Research References

Ark. L. Rev.

Looney, Modification of Arkansas Water Law: Issues and Alternatives, 38 Ark. L. Rev. 221.

Looney, Enhancing the Role of Water Districts in Groundwater Management and Surface Water Utilization in Arkansas, 48 Ark. L. Rev. 643.

U. Ark. Little Rock L.J.

Survey of Arkansas Law, Public Law, 1 U. Ark. Little Rock L.J. 230.

Trelease, A Water Management Law For Arkansas, 6 U. Ark. Little Rock L.J. 369.

Comment, Arkansas at the Water Crossroads: Regulations or Solutions?, 7 U. Ark. Little Rock L.J. 401.

Subchapter 1 — General Provisions

A.C.R.C. Notes. Acts 2005, No. 1243, § 2, provided:

“Arkansas Soil and Water Conservation Commission renamed ‘Arkansas Natural Resources Commission’.

“(a)(1) The ‘Arkansas Soil and Water Conservation Commission’ as it is referred to or empowered throughout the Arkansas Code, is renamed.

“(2) In its place, the ‘Arkansas Natural Resources Commission’ is established, succeeding to the general powers and responsibilities previously assigned to the Arkansas Soil and Water Conservation Commission.

“(3) The Executive Director of the Arkansas Soil and Water Conservation Commission is directed to identify and revise all interagency agreements, financial instruments, funds, and other necessary legal documents in order to effect this change.

“(b) Nothing in this act shall be construed as impairing the powers and authorities of the Arkansas Soil and Water Conservation Commission before the effective date of the name change.”

Preambles. Acts 1957, No. 114, contained a preamble which read:

“Whereas, the United States under and by virtue of several acts of Congress has authorized, and may by similar acts authorize, the Corps of Engineers of the Department of the Army and/or the Chief of Engineers of the United States Army to discuss plans and to execute projects for the construction of multipurpose reservoirs for the purpose of flood control and water supply on rivers and tributaries of/or bordering on this State: and,

“Whereas, the Congress of the United States has announced a policy in adopting and authorizing such projects that no federal funds can be expended to provide water storage capacity for industrial, municipal and agricultural water supply purposes in said reservoirs until some authorized local agency shall execute to the United States a contract of assurance that such local interest will, (a) make use of said water supply and (b) pay such additional costs of said reservoir as may be allocated to water supply; and,

“Whereas, no work can be done on some of the projects which have been adopted and authorized by the Congress of the United States, and no projects hereafter authorized by Congress, for the reason that there is no law in this State under which an individual water district can conveniently be organized over the large area required; and,

“Whereas, in instances now existing and which will exist in the future, the State and counties in the affected area to be benefited by said improvements have been deprived, and will continue to be deprived, of receiving and participating in said water supply to be realized from said projects, and that it is to the interest of the State that some provision be made for the organization and creation of such water districts, with full power and authority to give such assurances to the United States, and with full power and authority to comply with the terms and provisions of said acts of Congress, to acquire title to and use of water stored in said reservoirs and to sell and distribute same for the use and benefit of the people of the State of Arkansas; Now Therefore ….”

Effective Dates. Acts 1957, No. 114, § 17: approved Feb. 28, 1957. Emergency clause provided: “It is hereby ascertained by the General Assembly of the State of Arkansas that there are no present laws concerning the organization, formation and operation of public, nonprofit regional water distribution districts to make use of a water supply available, and to be available, in multipurpose reservoirs constructed by, or under the supervision of, the Corps of Engineers of the Department of the Army on rivers and tributaries of/or bordering on this State, and to pay such additional costs of said reservoirs as may be allocated to water supply. And it is further ascertained that no work can be done on some of the projects which have been adopted and authorized by the Congress of the United States, or which may hereafter be authorized by Congress, for the reason that there are no laws in this State under which nonprofit regional water distribution districts can conveniently be organized over a large area required, and that the State will lose the profit of such projects unless this Act is passed and becomes effective immediately. It is therefore declared that this Act is necessary for the immediate preservation of the public peace, health and safety and an emergency is declared to exist, and this Act shall take effect and be in full force from and after its passage.”

Acts 1963, No. 14, §§ 11-17, 20: Feb. 8, 1963. Sections 11-17 effective April 1, 1963. Emergency clause provided: “It has been found that notwithstanding the fact that the Commission will not have the functions performable by it hereunder until April 1, 1963, it is necessary that immediate action be taken by the Governor to appoint, and by the Senate to confirm the appointment of, the members of the Commission in order that the Commission may organize and begin to prepare its plan of operations so that there may be no disruption of service on and after that date, and that only by the immediate operation of this act may such condition be obviated. Therefore, an emergency is hereby declared to exist, and this act being necessary for the preservation of the public peace, health and safety shall take effect and be in full force from and after its passage and approval.”

Acts 1975, No. 208, § 6: Feb. 18, 1975. Emergency clause provided: “It is hereby found and determined by the General Assembly that water districts created under Act 114 of 1957 are authorized to individually undertake projects to utilize a water supply available as a result of multi-purpose reservoirs constructed by the United States Corps of Engineers; that it would be mutually beneficial to permit water districts created under Act 114 of 1957 to jointly and cooperatively undertake such projects and that this Act is immediately necessary to permit such cooperative or joint action by such water districts. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 2001, No. 618, § 4: Mar. 8, 2001. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that there is an immediate need for the operation of sewer facilities by a responsible regional public agency in certain situations, to assure the health and safety of persons and the environment. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

14-116-101. Title.

This chapter may be cited as “The Regional Water Distribution District Act.”

History. Acts 1957, No. 114, § 1; A.S.A. 1947, § 21-1401.

Case Notes

Cited: Hale v. Southwest Ark. Water Dist., 244 Ark. 647, 244 Ark. 647, 427 S.W.2d 14 (1968); City of Maumelle v. Jeffrey Sand Co., 353 Ark. 686, 120 S.W.3d 55 (2003).

14-116-102. Purpose.

Public nonprofit regional water distribution districts may be organized under this chapter for any one (1) or more of the following purposes:

  1. Acquisition of water from wells, lakes, rivers, tributaries, or streams of or bordering this state or from existing reservoirs heretofore created by the construction of dams by or under the direction and supervision of the United States Army Corps of Engineers;
  2. Acquisition of water, water storage facilities, and the storage of the water in reservoirs created by the construction of multipurpose dams by or under the direction and supervision of the United States Army Corps of Engineers, or by the water district with federal financial or other assistance furnished by the United States Secretary of Agriculture under the provisions of the Watershed Protection and Flood Prevention Act or any other federal law;
  3. Purification, treatment, and processing of the water;
  4. Furnishing the water to persons desiring it;
  5. Assisting in the installation and operation of the water and transportation facilities of persons who are furnished water by the water district and the acquisition, supply, or installation of equipment necessary therefor;
  6. Transportation and delivery of the water to persons furnished it by the water district;
  7. In the case of a district in existence on January 1, 2001, other than a district the lands within which are subject to assessment under § 14-116-601 et seq., owning, acquiring, operating, constructing, equipping, improving, expanding, contracting, concerning, and otherwise dealing in and with regard to properties, real, personal, or mixed, tangible and intangible, for the purpose of the collecting, transporting, treating, and disposing of sewage and liquid waste, industrial, commercial, and residential; and
  8. Carrying out the functions as may be related and appropriate to the accomplishment of the purposes enumerated in this section.

History. Acts 1957, No. 114, § 3; 1963, No. 120, § 2; 1973, No. 137, § 1; A.S.A. 1947, § 21-1403; Acts 2001, No. 618, § 1.

A.C.R.C. Notes. Acts 2001, No. 618, § 3, provided:

“This act shall apply to regional water distribution districts in existence on January 1, 2001, provided that it shall not apply to districts the lands within which have been subjected to an assessment or assessments of benefits under Arkansas Code §§ 14-116-601 through 14-116-611.”

U.S. Code. The Watershed Protection and Flood Prevention Act, referred to in this section, is codified as 16 U.S.C. §§ 1001-1007.

Case Notes

Acquisition of Water.

This section authorizes the districts to acquire water from wells, lakes, rivers, tributaries, or streams of or bordering this state, in addition to water from federal impoundments. Lyon v. White River-Grand Prairie Irrigation Dist., 281 Ark. 286, 664 S.W.2d 441 (1984).

Four cities undertaking to obtain a supplementary water supply from a water district had authority, in that all each city sought was a dependable water supply, to enter into an agreement to obtain a water supply from the district, such district being authorized to contract with the Corps of Engineers for the acquisition of water rights in federal impoundments. Hink v. Board of Dirs., 235 Ark. 107, 357 S.W.2d 271 (1962).

Authorized Uses.

This chapter not only authorizes the establishment of water distribution districts for municipal and industrial uses, but also authorizes their establishment for agricultural or other purposes as well. Lyon v. White River-Grand Prairie Irrigation Dist., 281 Ark. 286, 664 S.W.2d 441 (1984).

A regional water district may be pre-formed for the purpose of planning a water project. City of Fort Smith v. River Valley Reg'l Water Dist., 344 Ark. 57, 37 S.W.3d 631 (2001).

14-116-103. Definitions.

As used in this chapter, unless the context otherwise requires:

  1. “Acquire” means and includes construct, acquire by purchase, lease, devise, gift, or other mode of acquisition;
  2. “Board” means a board of directors of a regional water distribution district organized under this chapter;
  3. “Commission” means the Arkansas Soil and Water Conservation Commission;
  4. “Court” means the circuit court creating the water district pursuant to § 14-116-201 et seq.;
  5. “Improvement project area” means an area established by the court within the district for which an approved improvement plan has been developed and for which assessment of benefits may be made to pay the cost of development, construction, operation, and maintenance of the improvement plan and its works of improvement;
  6. “Improvement plan” means a plan developed by a water district to carry out any of the purposes contained in § 14-116-102 or the ancillary benefits derived therefrom within an improvement project area;
  7. “Obligation” includes bonds, notes, debentures, interim certificates or receipts, and all other evidences of indebtedness issued by a regional water distribution district formed under this chapter;
  8. “Person” includes any natural person, firm, association, corporation, business trust, partnership, federal agency, state agency, state or political subdivision thereof, municipality, or any body politic;
  9. “Reservoir” means any impoundment of water through the construction of a dam by or under the direction and supervision of the United States Army Corps of Engineers, or by the water district, with federal financial or other assistance furnished by the United States Secretary of Agriculture under the provisions of the Watershed Protection and Flood Prevention Act or any other federal law;
  10. “Water district” or “district” means a nonprofit regional water distribution district organized pursuant to the provisions of this chapter;
  11. “Works of improvement” means any facilities developed by the water district as district as part of an improvement plan which need not be located exclusively within a proposed improvement project area or within the water district.

History. Acts 1957, No. 114, § 2; 1963, No. 14, § 16; 1963, No. 120, § 1; A.S.A. 1947, § 21-1402; Acts 1995, No. 838, § 1.

Amendments. The 1995 amendment renumbered the sections alphabetically; inserted “the” in present (3); inserted present (4)-(6) and (11); and inserted “or ‘district’” in (10).

U.S. Code. The Watershed Protection and Flood Prevention Act, referred to in this section, is codified as 16 U.S.C. §§ 1001-1007.

14-116-104. Chapter controlling.

This chapter is complete in itself and shall be controlling. The provisions of any other law of this state, except as provided in this chapter, shall not apply to a water district organized under this chapter.

History. Acts 1957, No. 114, § 16; A.S.A. 1947, § 21-1415.

Case Notes

Joint Projects.

This chapter, authorizing the creation of water distribution districts, is a later statute than § 14-234-507 and is clearly not affected by its provisions as to the joinder of two or more municipalities in the acquiring of a water supply. Hink v. Board of Dirs., 235 Ark. 107, 357 S.W.2d 271 (1962).

14-116-105. Construction.

This chapter shall be construed liberally. The enumerating of any object, purpose, power, manner, method, or thing shall not be deemed to exclude like or similar objects, purposes, powers, manners, methods, or things.

History. Acts 1957, No. 114, § 14; A.S.A. 1947, § 21-1414.

14-116-106. Joint projects.

  1. It is the intent and purpose of this section and § 25-20-103 to permit any two (2) or more water districts created under this chapter to jointly and cooperatively undertake and carry out any purpose or project which a single water district created under this chapter is authorized to undertake and carry out. It is further the intent that any agreement entered into by two (2) or more water districts pursuant to the authority granted in this section to undertake a joint or cooperative project shall, so far as practical, be entered into in conformity with the requirements and provisions of the Interlocal Cooperation Act, § 25-20-101 et seq.
  2. Any two (2) or more water districts created under this chapter are authorized to enter into an agreement or agreements for the joint or cooperative exercise of any power or authority or for the undertaking of any project which a single water district created under this chapter could exercise or undertake.
  3. Any agreement or agreements between two (2) or more water districts pursuant to the authority granted in this section and § 25-20-103 shall, so far as practicable, be entered into in accordance with the provisions of the Interlocal Cooperation Act, § 25-20-101 et seq. Any power or authority exercised or any project undertaken jointly or cooperatively by the agreeing water districts pursuant to the agreement shall be exercised, undertaken, and consummated in accordance with the provisions of this chapter.

History. Acts 1975, No. 208, §§ 1-3, 5; A.S.A. 1947, §§ 21-1416 — 21-1418.

14-116-107. Applicability of Regional Water Distribution District Act.

The provisions of § 14-116-101 et seq., the Regional Water Distribution District Act, as now or hereafter amended, shall not be applicable to agencies of the State of Arkansas or of political subdivisions of the state, nor to lands owned by such agencies.

History. Acts 1995, No. 838, § 10.

Case Notes

Municipalities.

This section does not mean that municipalities may not be contained within regional water districts; instead, it merely provides that the state and its political subdivisions do not have to seek formation of a regional water district in order to furnish water to their respective citizens. City of Fort Smith v. River Valley Reg'l Water Dist., 344 Ark. 57, 37 S.W.3d 631 (2001).

Cited: Ark. Soil & Water Conservation Comm'n v. City of Bentonville, 351 Ark. 289, 92 S.W.3d 47 (2002).

Subchapter 2 — Establishment of Water Districts

Preambles. Acts 1957, No. 114, contained a preamble which read:

“Whereas, the United States under and by virtue of several acts of Congress has authorized, and may by similar acts authorize, the Corps of Engineers of the Department of the Army and/or the Chief of Engineers of the United States Army to discuss plans and to execute projects for the construction of multipurpose reservoirs for the purpose of flood control and water supply on rivers and tributaries of/or bordering on this State: and,

“Whereas, the Congress of the United States has announced a policy in adopting and authorizing such projects that no federal funds can be expended to provide water storage capacity for industrial, municipal and agricultural water supply purposes in said reservoirs until some authorized local agency shall execute to the United States a contract of assurance that such local interest will, (a) make use of said water supply and (b) pay such additional costs of said reservoir as may be allocated to water supply; and,

“Whereas, no work can be done on some of the projects which have been adopted and authorized by the Congress of the United States, and no projects hereafter authorized by Congress, for the reason that there is no law in this State under which an individual water district can conveniently be organized over the large area required; and,

“Whereas, in instances now existing and which will exist in the future, the State and counties in the affected area to be benefited by said improvements have been deprived, and will continue to be deprived, of receiving and participating in said water supply to be realized from said projects, and that it is to the interest of the State that some provision be made for the organization and creation of such water districts, with full power and authority to give such assurances to the United States, and with full power and authority to comply with the terms and provisions of said acts of Congress, to acquire title to and use of water stored in said reservoirs and to sell and distribute same for the use and benefit of the people of the State of Arkansas; Now Therefore ….”

Effective Dates. Acts 1957, No. 114, § 17: approved Feb. 28, 1957. Emergency clause provided: “It is hereby ascertained by the General Assembly of the State of Arkansas that there are no present laws concerning the organization, formation and operation of public, nonprofit regional water distribution districts to make use of a water supply available, and to be available, in multipurpose reservoirs constructed by, or under the supervision of, the Corps of Engineers of the Department of the Army on rivers and tributaries of/or bordering on this State, and to pay such additional costs of said reservoirs as may be allocated to water supply. And it is further ascertained that no work can be done on some of the projects which have been adopted and authorized by the Congress of the United States, or which may hereafter be authorized by Congress, for the reason that there are no laws in this State under which nonprofit regional water distribution districts can conveniently be organized over a large area required, and that the State will lose the profit of such projects unless this Act is passed and becomes effective immediately. It is therefore declared that this Act is necessary for the immediate preservation of the public peace, health and safety and an emergency is declared to exist, and this Act shall take effect and be in full force from and after its passage.”

14-116-201. Authority to petition for district establishment.

  1. When there is water available for industrial, municipal, or agricultural irrigation water supply purposes from wells, lakes, rivers, tributaries, or streams of this state or bordering on this state or from reservoirs heretofore created by the construction of multipurpose dams by or under the direction and supervision of the United States Army Corps of Engineers on any of the rivers, tributaries, or streams of or bordering on this state, or when the United States Congress has enacted a law authorizing the construction of a reservoir by or under the supervision and direction of the United States Army Corps of Engineers on any of the rivers, tributaries, or streams of or bordering on this state, or when a proposed reservoir on any stream of this state is to be constructed by a water district established under this chapter with federal or other assistance furnished by the United States Secretary of Agriculture under the provisions of the Watershed Protection and Flood Prevention Act, 16 U.S.C. §§ 1001-1007, or any other federal law, then one hundred (100) or more qualified voters residing and owning lands situated within the boundaries of the water district proposed to be established under the provisions of this chapter may petition the circuit court in the county to establish a water district for the purposes set out in this section.
  2. A petition under this section shall contain a bold heading stating that a signature on the petition is a vote to create the district.

History. Acts 1957, No. 114, § 4; 1963, No. 120, § 3; 1973, No. 137, § 2; A.S.A. 1947, § 21-1404; Acts 1995, No. 838, § 2; 2019, No. 1025, § 8.

Amendments. The 1995 amendment substituted “and owning lands” for “or owning lands” near the end; and made stylistic changes.

The 2019 amendment added the (a) designation; inserted “16 U.S.C. §§ 1001-1007” in (a); and added (b).

Case Notes

Purposes.

This section not only authorizes the establishment of water distribution districts for municipal and industrial uses, but also authorizes their establishment for agricultural or other purposes as well. Lyon v. White River-Grand Prairie Irrigation Dist., 281 Ark. 286, 664 S.W.2d 441 (1984).

14-116-202. Contents of petition.

The petition shall contain:

  1. An accurate description of the territory which it is proposed shall be embraced within the water district, and a map of the territory shall be attached to the petition as an exhibit thereto;
  2. A brief and concise statement describing the water source, whether it is wells, lakes, streams, a reservoir heretofore created by the construction of a dam, or a proposed reservoir authorized by the Congress of the United States of America or a proposed reservoir to be constructed by the water district with federal financial or other assistance furnished by the United States Secretary of Agriculture under the provisions of the Watershed Protection and Flood Prevention Act or any other federal law;
  3. A brief and concise statement showing the necessity for forming and operating the proposed water district, describing the benefits to be received therefrom by the residents and property owners in the territory proposed to be embraced in the water district, and if the water district proposes to use project improvement plans and assessments, a statement that such petitioners are aware of the power of the district under this chapter to levy taxes;
  4. The proposed name for the water district;
  5. The proposed location of the principal office of the water district;
  6. Other and additional information appropriate and useful in support.

History. Acts 1957, No. 114, § 4; 1963, No. 120, § 3; 1973, No. 137, § 2; A.S.A. 1947, § 21-1404; Acts 1995, No. 838, § 3.

Amendments. The 1995 amendment added the language beginning “and if the water district proposes” in (3).

U.S. Code. The Watershed Protection and Flood Prevention Act, referred to in this section, is codified as 16 U.S.C. §§ 1001-1007.

Case Notes

Sufficiency of Petition.

A petition was sufficient where it (1) reflected that the proposed water district would be all of a county and a city, (2) a map of the territory was attached to the petition, (3) the petition contained a brief description of the proposed water source, and (4) the petition further contained a brief statement showing the necessity for forming the district, the proposed name of the district, and the proposed location of the district's office. City of Fort Smith v. River Valley Reg'l Water Dist., 344 Ark. 57, 37 S.W.3d 631 (2001).

14-116-203. Petition — Land in more than one county.

  1. The territory proposed to be embraced within the water district may include lands in one (1) or more counties.
  2. If more than one (1) county is involved, the petition shall be filed in the circuit court of the county having the greatest acreage within the boundaries of the proposed water district.

History. Acts 1957, No. 114, § 4; 1963, No. 120, § 3; 1973, No. 137, § 2; A.S.A. 1947, § 21-1404.

14-116-204. Commission review of petition.

  1. Upon the filing of the petition in the office of the circuit clerk for the county or any one (1) of the counties where the reservoir or other water source as referred to in § 14-116-102(1) is located or to be located, in whole or in part, the clerk shall prepare a certified copy of the petition and transmit the copy to the commission within five (5) days from the date of the filing of the petition.
  2. Upon receipt of the certified copy, the commission shall institute an investigation of the proposed district and its territory and purposes. The commission shall, within thirty (30) days after receipt of the copy, transmit a written report of its findings on the petition to the clerk of the circuit court.
  3. The report of the commission shall include, but not be limited to:
    1. A finding as to how the proposed boundaries of the water district conflict with the boundaries of any existing water district of which the commission may have supervisory jurisdiction;
    2. A finding as to whether the statement of purposes contained in the petition conforms with the intent and purposes of this chapter as applied to the area proposed to be included within the boundaries of the water district;
    3. A finding as to whether the organization of the proposed water district would promote the general welfare and be conducive to the purposes of this chapter;
    4. Any conditions, revisions, including revisions of area, or limitations which the commission deems necessary to the organization of the water district, the conditions, revisions, or limitations to be stated as changes in the petition. These changes shall thereupon become a part of the petition and be deemed effective without another amendment thereto.

History. Acts 1957, No. 114, § 5; 1973, No. 137, § 3; A.S.A. 1947, § 21-1405.

Case Notes

Report of Findings.

This section, which requires that the Soil and Water Conservation Commission institute an investigation and transmit a written report of its findings to the circuit court clerk, establishes prima facie that the commission, and only the commission, is authorized to prepare the report. Lyon v. White River-Grand Prairie Irrigation Dist., 281 Ark. 286, 664 S.W.2d 441 (1984).

Cited: City of Fort Smith v. River Valley Reg'l Water Dist., 344 Ark. 57, 37 S.W.3d 631 (2001).

14-116-205. Notice of hearing.

  1. Between thirty (30) and sixty (60) days after the report of the Arkansas Natural Resources Commission has been filed in the office of the circuit clerk, the petition shall be presented to the judge of the circuit court of the county, either in term or vacation, and the court shall thereupon enter its order:
    1. Setting a hearing upon the petition for a day certain; and
    2. Directing the clerk of the court to give notice of the hearing by publication for two (2) consecutive weeks in some newspaper or newspapers having a general circulation in each of the counties containing lands embraced within the boundaries of the proposed water district and, if available, on the website of the county or of the Secretary of State.
  2. The notice shall contain:
    1. A concise statement describing the purpose of the hearing;
    2. A description of the territory to be embraced within the water district;
    3. A concise statement of the action of the commission;
    4. A warning to all persons residing or owning property within the boundaries of the proposed water district to appear upon the date and at the time and place of the hearing to show cause, if any exists, why the petition should not be granted.

History. Acts 1957, No. 114, § 5; 1973, No. 137, § 3; A.S.A. 1947, § 21-1405; Acts 2019, No. 1025, § 9.

Amendments. The 2019 amendment, in the introductory language of (a), substituted “Between thirty (30) and sixty (60) days” for “Within thirty (30) days” and substituted “report of the Arkansas Natural Resources Commission” for “report of the commission”; and added “and, if available, on the website of the county or of the Secretary of State” in (a)(2).

14-116-206. Hearing — Appeal.

  1. Upon the date and at the time and place named in the notice, the circuit court shall meet and shall hear all persons who wish to appear and advocate or resist the establishment of the water district. If the court, after being satisfied as to the sufficiency of the petition and the proceedings thereon, finds and deems it to be in the best interests of the persons residing or owning land within the boundaries of the proposed water district that the water district be established under the terms of this chapter, then the court shall enter its order establishing a water district embracing the territory described in the petition, subject to all the terms and provisions in this chapter and designating a name for the water district.
  2. The order establishing the water district shall empower the water district, to the full extent that the State of Arkansas can grant that right, the right to acquire absolute title to and use of water stored in any water source as referred to in § 14-116-102 or in the reservoir created, or to be created, by the construction of the dam by, or under the direction and supervision of, the United States Army Corps of Engineers or by the water district with federal financial or other assistance furnished by the United States Secretary of Agriculture under the provisions of the Watershed Protection and Flood Prevention Act, or any other federal law. The water district shall by the order be empowered to enter into contracts of assurances with the United States of America for the storage, procurement, or removal of the water from the reservoir or other such water source. The order establishing the water district shall have all the force and effect of a judgment. Any person aggrieved by the entry of the order by the court may appeal, as in other cases of appeal, to the Supreme Court, from the order within thirty (30) days after the order has been made. If no appeal is taken within that time, the order authorizing and creating the water district shall be deemed conclusive, and any person residing or owning land in the district may in like manner and time appeal from any order refusing to establish the water district.

History. Acts 1957, No. 114, § 6; 1963, No. 120, § 4; 1973, No. 137, § 4; 1983, No. 396, § 1; A.S.A. 1947, § 21-1406.

U.S. Code. The Watershed Protection and Flood Prevention Act, referred to in this section, is codified as 16 U.S.C. §§ 1001-1007.

Case Notes

In General.

This section does not require that a court specifically rule that a regional water district has the power to acquire specific land for a specific project and that the district has the power to contract with the United States government. City of Fort Smith v. River Valley Reg'l Water Dist., 344 Ark. 57, 37 S.W.3d 631 (2001).

14-116-207. Exclusion of land for irrigation purposes.

  1. Any owner of real property within the territory of the proposed water district may, at any time before the entry of the order establishing the district or before the entry of the order establishing an improvement project area including such real property, petition the court to exclude his property for agricultural irrigation water uses.
  2. To exclude the property from the district, the court must make the following determinations:
    1. The property is supplied by adequate agricultural irrigation water from surface sources or other sources; and
    2. The property is not and will not in the future be benefited by the improvements of the proposed water district.

History. Acts 1957, No. 114, § 6; 1963, No. 120, § 4; 1973, No. 137, § 4; 1983, No. 396, § 1; A.S.A. 1947, § 21-1406; Acts 1995, No. 838, § 4; 1997, No. 907, § 1.

Amendments. The 1995 amendment rewrote this section.

The 1997 amendment substituted “or” for “and” following “establishing the district” in (a).

Subchapter 3 — Board of Directors

Preambles. Acts 1957, No. 114, contained a preamble which read:

“Whereas, the United States under and by virtue of several acts of Congress has authorized, and may by similar acts authorize, the Corps of Engineers of the Department of the Army and/or the Chief of Engineers of the United States Army to discuss plans and to execute projects for the construction of multipurpose reservoirs for the purpose of flood control and water supply on rivers and tributaries of/or bordering on this State: and,

“Whereas, the Congress of the United States has announced a policy in adopting and authorizing such projects that no federal funds can be expended to provide water storage capacity for industrial, municipal and agricultural water supply purposes in said reservoirs until some authorized local agency shall execute to the United States a contract of assurance that such local interest will, (a) make use of said water supply and (b) pay such additional costs of said reservoir as may be allocated to water supply; and,

“Whereas, no work can be done on some of the projects which have been adopted and authorized by the Congress of the United States, and no projects hereafter authorized by Congress, for the reason that there is no law in this State under which an individual water district can conveniently be organized over the large area required; and,

“Whereas, in instances now existing and which will exist in the future, the State and counties in the affected area to be benefited by said improvements have been deprived, and will continue to be deprived, of receiving and participating in said water supply to be realized from said projects, and that it is to the interest of the State that some provision be made for the organization and creation of such water districts, with full power and authority to give such assurances to the United States, and with full power and authority to comply with the terms and provisions of said acts of Congress, to acquire title to and use of water stored in said reservoirs and to sell and distribute same for the use and benefit of the people of the State of Arkansas; Now Therefore….”

Effective Dates. Acts 1957, No. 114, § 17: approved Feb. 28, 1957. Emergency clause provided: “It is hereby ascertained by the General Assembly of the State of Arkansas that there are no present laws concerning the organization, formation and operation of public, nonprofit regional water distribution districts to make use of a water supply available, and to be available, in multipurpose reservoirs constructed by, or under the supervision of, the Corps of Engineers of the Department of the Army on rivers and tributaries of/or bordering on this State, and to pay such additional costs of said reservoirs as may be allocated to water supply. And it is further ascertained that no work can be done on some of the projects which have been adopted and authorized by the Congress of the United States, or which may hereafter be authorized by Congress, for the reason that there are no laws in this State under which nonprofit regional water distribution districts can conveniently be organized over a large area required, and that the State will lose the profit of such projects unless this Act is passed and becomes effective immediately. It is therefore declared that this Act is necessary for the immediate preservation of the public peace, health and safety and an emergency is declared to exist, and this Act shall take effect and be in full force from and after its passage.”

Acts 1970 (Ex. Sess.), No. 21, § 4: Mar. 13, 1970. Emergency clause provided: “It is hereby found and determined by the General Assembly that the present law relating to the boards of directors of regional water distribution districts does not assure adequate representation to all areas of such districts; that it is essential to the proper and efficient administration of the business of such water districts that the court creating such districts be given authority to increase the membership of the board of directors of such district to assure proper representation to all areas of the district; that the present law relative to water districts should be clarified to assure that the furnishing of water to consumers outside the district shall not result in increase of the cost of water or other services to members within the district; and that this act is immediately necessary in order to correct the above described inadequacies in the water district law. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in effect from the date of its passage and approval.”

Acts 2009, No. 1480, § 117: Apr. 10, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act makes various revisions to Arkansas election laws that are designed to improve the administration of elections and special elections and that these revisions should be implemented as soon as possible so that the citizens of this state may benefit from improved election procedures. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2019, No. 597, § 10: July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that there is a need for uniform candidate filing and petition circulation periods; that if there is a delay in implementation, some candidate filing and petition circulation periods may be disrupted by the change in the middle of a candidate’s campaign; and that this act should become effective before candidates begin circulating petitions and filing for candidacy in the 2019 November annual school elections. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

14-116-301. Members generally — Original appointments.

  1. If a water district is composed of all or a portion of four (4) or more counties:
    1. The board of directors shall be composed of three (3) qualified electors who are residents of the district from each of the counties in which lands are embraced in the district. Furthermore, if the circuit court creating a water distribution district finds that a larger number of board members than that provided for above is necessary to afford adequate representation for the various parts of the district, the court may establish a board consisting of a greater number of members than that provided for above. In this case the representation on the board of directors shall be apportioned to the various parts of the district in a manner the circuit court deems just and equitable; and
    2. When the circuit court has established the district, it shall within a reasonable time thereafter appoint the three (3) or more directors of the water district. Upon the expiration of the terms of the directors so appointed, subsequent directors shall be elected as set out in this subchapter by the qualified electors residing in the water district in each county in which there is area included in the district.
  2. If a water district is composed of all or a portion of less than four (4) counties:
    1. The board of directors shall be composed of three (3) qualified voters residing in the service area of the customers of the district, which is the area within the boundaries of the water district to which the customers of the district currently provide retail water or other services that they have purchased from the district. However, if the district embraces lands in more than one (1) county but less than four (4) counties, then the board of directors shall be composed of three (3) qualified electors who are residents of the service area of the customers of the district from each of the counties in which lands are embraced in the district. Furthermore, if the court creating a water distribution district finds that a larger number of board members than that provided for above is necessary to afford adequate representation for the various parts of the district, the court may establish a board consisting of a greater number of members than that provided for above. In this case the representation on the board of directors shall be apportioned to the various parts of the district in a manner the court deems just and equitable, and each director shall be a qualified voter residing in the part of the service area of the customers of the district that he or she represents; and
    2. When the circuit court has established the district, it shall appoint, within a reasonable time thereafter, the three (3) or more directors of the water district. Upon the expiration of the terms of the directors so appointed, subsequent directors shall be elected as set out in this subchapter by the qualified electors, who shall consist of those electors residing in all or part of any precinct in the service area of the customers of the water district in each county in which lands are embraced in the district or, if the district has been apportioned by the court, by qualified voters, who shall consist of those voters residing in all or part of any precinct in the service area of the customers of the district that the director will represent.
  3. In a water district that does not provide potable water, an individual is eligible to be a director if the individual is a property owner in the water district.

History. Acts 1957, No. 114, § 7; 1970 (1st Ex. Sess.), No. 21, § 1; A.S.A. 1947, § 21-1407; Acts 2007, No. 863, § 1; 2009, No. 370, § 1; 2019, No. 450, § 1.

Amendments. The 2009 amendment, in (b)(2), inserted “who shall consist of those electors,” “all or part of any precinct in,” and “who shall consist of those voters,” substituted “all or part of any precinct in” for “the part of,” and made related changes.

The 2019 amendment added (c).

14-116-302. Members — Terms.

    1. Each director on the board of directors of a water district shall serve a term of six (6) years and until his or her successor is duly elected and qualified, except that one (1) of the original directors from each county shall serve a term of not more than two (2) years, one (1) for a term of not more than four (4) years, and one (1) for a term of not more than six (6) years as determined by the circuit court.
      1. The circuit court may find at any time that it is necessary or desirable that the membership of the board of directors of the water district increase or, in the case of a water district that includes less than the entirety of a county, decrease to a number other than three (3) for each county represented in the water district in order to provide proper representation to the various parts of the water district.
      2. In modifying the number of directors under subdivision (a)(2)(A) of this section, the circuit court shall adjust the terms of office as necessary to properly provide for staggered terms for the directors representing each part of the water district.
  1. The term of office of the directors shall expire on December 31 of the last year of the term of each director.

History. Acts 1957, No. 114, § 7; 1970 (1st Ex. Sess.), No. 21, § 1; A.S.A. 1947, § 21-1407; Acts 2007, No. 863, § 2; 2019, No. 450, § 2.

Amendments. The 2019 amendment rewrote (a); and deleted “the year that constitutes” following “December 31 of” in (b).

14-116-303. Members — Nomination and election.

      1. If a water district is composed of all or a portion of four (4) or more counties, then nominations for directors shall be upon a petition signed by at least fifty (50) qualified electors residing in the area of the district from which the director is to be elected, to be circulated for no longer than ninety (90) days.
      2. The petition under subdivision (a)(1)(A) of this section shall be filed with the county clerk during a one-week period ending at 12:00 noon ninety (90) days before the general election.
      1. If a water district is composed of all or a portion of less than four (4) counties, then nominations for directors shall be upon a petition signed by at least fifty (50) qualified electors, who shall consist of those electors residing in all or part of any precinct in the service area of the customers of the district from which the director is to be elected.
      2. The petition under subdivision (a)(2)(A) of this section shall be circulated for no longer than ninety (90) days and filed with the county clerk during a one-week period ending at 12:00 noon ninety (90) days before the general election.
    1. A water district shall file a service area map with the county clerk no later than January 31 before the general election.
  1. Election of the directors shall be held as a part of the general election and under the laws governing it.
  2. Any director shall be qualified to succeed himself or herself.

History. Acts 1957, No. 114, § 7; 1970 (1st Ex. Sess.), No. 21, § 1; A.S.A. 1947, § 21-1407; Acts 2007, No. 863, § 3; 2009, No. 370, § 2; 2009, No. 1480, § 82; 2019, No. 597, § 9.

Amendments. The 2009 amendment by No. 370, in (a), substituted “no later than July 1 before” for “at least sixty (60) days prior to” in (a)(1) and (a)(2), in (a)(2) inserted “who shall consist of those electors” and substituted “all or part of any precinct in” for “the part of,” inserted (a)(3), and made a related change.

The 2009 amendment by No. 1480 substituted “clerk not later than 12:00 noon on July 1” for “board of election commissioners no later than July 1” in the last sentences of (a)(1) and (a)(2).

The 2019 amendment rewrote (a)(1) and (a)(2).

14-116-304. Members — Vacancy.

The directors shall fill any vacancy occurring on the board prior to the expiration of the term of any director by electing a substitute director to serve for the balance of the unexpired term.

History. Acts 1957, No. 114, § 7; 1970 (Ex. Sess.), No. 21, § 1; A.S.A. 1947, § 21-1407.

14-116-305. Members — Oath.

  1. Each of the original directors and all directors elected thereafter shall take the oath of office required by Arkansas Constitution, Article 19, § 20, and shall also swear that he will not directly or indirectly be interested in any contract made by the board.
  2. Any director failing to take the oath within thirty (30) days after his appointment or election shall be deemed to have declined the appointment or election and his place shall be filled as other vacancies.
  3. All oaths of directors shall be executed in writing and filed in the office of the circuit clerk in the county where the petition is originally filed.

History. Acts 1957, No. 114, § 7; 1970 (Ex. Sess.), No. 21, § 1; A.S.A. 1947, § 21-1407.

14-116-306. Members — Compensation.

The directors provided for, upon majority vote of the board, may receive the sum of no more than two hundred dollars ($200) each day as compensation for attending meetings of the board or any of its committees. However, not more than four hundred dollars ($400) shall be paid to any director for meetings held in any one (1) calendar month, together with the director's reasonable and necessary expenses.

History. Acts 1957, No. 114, § 7; 1970 (Ex. Sess.), No. 21, § 1; A.S.A. 1947, § 21-1407; Acts 1987, No. 149, § 1; 1997, No. 709, § 1.

Amendments. The 1997 amendment substituted “two hundred dollars ($200)” for “one hundred dollars ($100)”; and substituted “four hundred dollars ($400)” for “two hundred dollars ($200).”

14-116-307. Organization.

Immediately upon the appointment of the board of directors, the directors shall meet and organize and shall elect a president, vice president, and secretary-treasurer from their membership and shall adopt bylaws which shall govern their proceedings.

History. Acts 1957, No. 114, § 7; 1970 (Ex. Sess.), No. 21, § 1; A.S.A. 1947, § 21-1407.

14-116-308. Meetings.

  1. Regular meetings of the board of directors shall be held quarterly in the office of the district on the day selected by the board.
  2. Notice of the meeting shall be mailed to each director at least five (5) days prior to the date of the meeting. Special meetings may be held at any time upon waiver of notice of the meeting by all directors or may be called by the president or by any two (2) directors at any time, provided that notice in writing signed by the persons calling any special meeting is mailed to each director at least five (5) days prior to the time fixed for a special meeting.
    1. A majority of the directors shall constitute a quorum for the transaction of business.
    2. In the absence of any of the duly elected officers of the district, a quorum at any meeting may select a director to act as officer pro tem.
    1. Each meeting of the board, whether regular or special, shall be open to the public.
    2. However, the board may conduct meetings in executive session as permitted under § 25-19-106.

History. Acts 1957, No. 114, § 7; 1970 (1st Ex. Sess.), No. 21, § 1; A.S.A. 1947, § 21-1407; Acts 2003, No. 1210, § 1.

Amendments. The 2003 amendment added the subdivision designations in (c); redesignated former (d) as present (d)(1) and deleted “and the board shall at no time go into executive session” following “public”; added (d)(2); and made stylistic changes.

Research References

Ark. L. Rev.

Watkins, Open Meetings Under the Arkansas Freedom of Information Act, 38 Ark. L. Rev. 268 (1984).

14-116-309. Powers and duties.

  1. All powers granted a water district created under this subchapter shall be executed by a board of directors.
  2. The board shall have the right, power, and authority to employ attorneys, agents, and personnel as it may deem necessary and to fix their compensation.

History. Acts 1957, No. 114, § 7; 1970 (Ex. Sess.), No. 21, § 1; A.S.A. 1947, § 21-1407.

Research References

Ark. L. Rev.

Watkins, Open Meetings Under the Arkansas Freedom of Information Act, 38 Ark. L. Rev. 268 (1984).

Subchapter 4 — Operation of Water Districts

Preambles. Acts 1957, No. 114, contained a preamble which read:

“Whereas, the United States under and by virtue of several acts of Congress has authorized, and may by similar acts authorize, the Corps of Engineers of the Department of the Army and/or the Chief of Engineers of the United States Army to discuss plans and to execute projects for the construction of multipurpose reservoirs for the purpose of flood control and water supply on rivers and tributaries of/or bordering on this State: and,

“Whereas, the Congress of the United States has announced a policy in adopting and authorizing such projects that no federal funds can be expended to provide water storage capacity for industrial, municipal and agricultural water supply purposes in said reservoirs until some authorized local agency shall execute to the United States a contract of assurance that such local interest will, (a) make use of said water supply and (b) pay such additional costs of said reservoir as may be allocated to water supply; and,

“Whereas, no work can be done on some of the projects which have been adopted and authorized by the Congress of the United States, and no projects hereafter authorized by Congress, for the reason that there is no law in this State under which an individual water district can conveniently be organized over the large area required; and,

“Whereas, in instances now existing and which will exist in the future, the State and counties in the affected area to be benefited by said improvements have been deprived, and will continue to be deprived, of receiving and participating in said water supply to be realized from said projects, and that it is to the interest of the State that some provision be made for the organization and creation of such water districts, with full power and authority to give such assurances to the United States, and with full power and authority to comply with the terms and provisions of said acts of Congress, to acquire title to and use of water stored in said reservoirs and to sell and distribute same for the use and benefit of the people of the State of Arkansas; Now Therefore….”

Effective Dates. Acts 1957, No. 114, § 17: approved Feb. 28, 1957. Emergency clause provided: “It is hereby ascertained by the General Assembly of the State of Arkansas that there are no present laws concerning the organization, formation and operation of public, nonprofit regional water distribution districts to make use of a water supply available, and to be available, in multipurpose reservoirs constructed by, or under the supervision of, the Corps of Engineers of the Department of the Army on rivers and tributaries of/or bordering on this State, and to pay such additional costs of said reservoirs as may be allocated to water supply. And it is further ascertained that no work can be done on some of the projects which have been adopted and authorized by the Congress of the United States, or which may hereafter be authorized by Congress, for the reason that there are no laws in this State under which nonprofit regional water distribution districts can conveniently be organized over a large area required, and that the State will lose the profit of such projects unless this Act is passed and becomes effective immediately. It is therefore declared that this Act is necessary for the immediate preservation of the public peace, health and safety and an emergency is declared to exist, and this Act shall take effect and be in full force from and after its passage.”

Acts 1969, No. 98, § 4: Feb. 24, 1969. Emergency clause provided: “It has been found and is hereby declared by the General Assembly that regional water distribution districts are essential to the proper development of the resources of the state of Arkansas; that in order for these regional water distribution districts to obtain adequate financing for the accomplishment of the purposes for which they were created, it is essential that the maximum interest rate permitted for obligations issued by them be specified clearly and that the procedure for the issuance of such obligations be clarified; and that only by the immediate effectiveness of this Act may the foregoing purposes be accomplished. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall take effect and be in force from and after its passage and approval.”

Acts 1970 (Ex. Sess.), No. 21, § 4: Mar. 13, 1970. Emergency clause provided: “It is hereby found and determined by the General Assembly that the present law relating to the boards of directors of regional water distribution district does not assure adequate representation to all areas of such district; that it is essential to the proper and efficient administration of the business of such water districts that the court creating such districts be given authority to increase the membership of the board of directors of such district to assure proper representation to all areas of the district; that the present law relative to water districts should be clarified to assure that the furnishing of water to consumers outside the district shall not result in increase of the cost of water or other services to members within the district; and that this act is immediately necessary in order to correct the above described inadequacies in the water district law. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in effect from the date of its passage and approval.”

Acts 1977, No. 194, § 2: Feb. 18, 1977. Emergency clause provided: “It is hereby found and determined by the General Assembly that the development of the water resources of this State is essential to the economic growth of the State, and is especially vital to the development of rural areas within the State, and that the immediate passage of this Act is necessary to enable regional water distribution districts to borrow funds, especially from instrumentalities of the federal government, to mature within not more than forty (40) years, to establish a schedule of payments of principal and interest thereon in an economically feasible and manageable manner commensurate with the estimated resources to be available to the districts, and that the immediate passage of this Act is necessary to accomplish such purposes and to enable said project to complete their organization and development. Therefore, an emergency is hereby declared to exist and this Act, being immediately necessary for the preservation of the public peace, health, and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1979, No. 721, § 5: Apr. 3, 1979. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the present interest rate for bonds issued by regional water distribution districts (being eight percent (8%) per annum) is not adequate to permit the financing of improvements by such districts, which improvements are in some instances immediately and urgently needed. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect upon its passage and approval.”

Acts 1981, No. 425, § 54: Mar. 11, 1981. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 1989, No. 705, § 7: Mar. 20, 1989. Emergency clause provided: “It is hereby found and determined by the General Assembly that there is an immediate and urgent need to provide for State, county, and municipal tax exemption for regional water distribution district bonds so that regional water distribution districts can reduce debt service costs. Therefore, an emergency is declared to exist and this act, being necessary for the preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

Acts 2001, No. 618, § 4: Mar. 8, 2001. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that there is an immediate need for the operation of sewer facilities by a responsible regional public agency in certain situations, to assure the health and safety of persons and the environment. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

14-116-401. Exemption from jurisdiction of Arkansas Public Service Commission.

Water districts organized under this subchapter shall be exempt in any and all respects from the jurisdiction and control of the Arkansas Public Service Commission.

History. Acts 1957, No. 114, § 11; A.S.A. 1947, § 21-1411.

Case Notes

Construction.

This section did not impliedly repeal § 23-18-101, which prohibits any public utility from providing utility service in an area allocated to another public utility. Southwestern Elec. Power Co. v. Carroll Elec. Coop. Corp., 261 Ark. 919, 554 S.W.2d 308 (1977).

14-116-402. District powers.

  1. Each water district shall have power to:
    1. Sue and be sued and complain and defend in the district's name;
    2. Adopt a seal which may be altered at pleasure and to use it, or a facsimile thereof, as required by law;
    3. Acquire absolute title to and use for any purpose and at any place water stored in any reservoir or other water source created by the construction of a multipurpose dam by or under the direction and supervision of the United States Army Corps of Engineers, or by the water district with federal financial or other assistance furnished by the United States Secretary of Agriculture under the provisions of the Watershed Protection and Flood Prevention Act, as amended, or with financing provided by any federal, state, or other source;
    4. Acquire water storage and withdrawal rights in any reservoir or other water source created by the construction of a multipurpose dam by or under the direction and supervision of the United States Army Corps of Engineers, or by the water district with federal financial or other assistance furnished by the United States Secretary of Agriculture under the provisions of the Watershed Protection and Flood Prevention Act, as amended, or with financing provided by any federal, state, or other sources;
    5. Transport, distribute, sell, furnish, and dispose of the water from whatever source derived to any person at any place;
    6. In the case of a district in existence on January 1, 2001, other than districts the lands in which are subject to assessment under § 14-116-601 et seq., collect, transport, treat, and dispose of sewage and liquid waste and own, acquire, operate, construct, equip, improve, expand, contract concerning, or otherwise deal in and with regard to facilities for any or all of the purposes;
    7. Construct, erect, purchase, lease as lessee and in any manner acquire, own, hold, maintain, operate, sell, dispose of, lease as lessor, exchange, and mortgage real property, personal property, easements, interests in real property, plants, buildings, works, machinery, supplies, equipment, apparatus, facilities, property rights, and transportation and distribution lines, facilities, equipment, or systems necessary, convenient, or useful;
      1. Regulate, define, and control the rate and location of any withdrawal or transfer of water which is owned, acquired, or developed by the water district in natural or manmade channels.
      2. However, riparian owners of natural watercourses are not obligated to pay for their historical riparian use from such natural water courses;
      1. Authorize persons to enter for any purpose water which has been or is being transported or is held by the water district, but only if the water district has acquired absolute title to land under the water or has obtained permission of the owner of the land under the water.
      2. However, this subdivision (a)(9) does not limit a district's authority to enter on lands for inspection or other purposes consistent with the purposes of this chapter;
    8. Assist its customers in the preparation of their premises for the use of water furnished by the water district and install upon the premises fixtures, machinery, supplies, apparatus, and equipment of any and all kinds and character, and in connection therewith, and for that purpose, to purchase, acquire, lease, sell, distribute, install, and repair fixtures, machinery, supplies, apparatus, and equipment of any and all kinds and character and to receive, acquire, endorse, pledge, hypothecate, and dispose of notes, bonds, and other evidences of indebtedness;
    9. Acquire, own, hold, use, exercise, and to the extent permitted by law, to sell, mortgage, pledge, hypothecate, and in any manner dispose of franchises, rights, privileges, licenses, rights-of-way, and easements necessary, useful, or appropriate;
    10. Purchase, receive, lease as lessee, or in any other manner acquire, own, hold, maintain, sell, exchange, and use any and all real and personal property, or any interest therein;
      1. Borrow money and otherwise contract indebtedness, to issue its obligations therefor, and to secure the payment thereof by mortgage, pledge, or deed of trust of all or any part of its property, assets, franchises, rights, privileges, licenses, rights-of-way, easements, revenues, or income.
      2. The obligations may be in the form of negotiable bonds but may be registered as public obligations under the Registered Public Obligations Act of Arkansas, § 19-9-401 et seq., may be issued in one (1) or more series, may bear such date or dates, may mature at such times, not exceeding forty (40) years from their respective dates, may bear interest at rate or rates, may be in such form, may be executed in such manner, may be payable in such medium of payment, may be payable at such place or places, within or without the State of Arkansas, may be subject to such terms of redemption, and may contain such terms, covenants, and conditions as the resolution of the board authorizing the bonds may provide.
      3. The resolution of the board authorizing the bonds may provide for the execution by the water district of a trust indenture with a bank or trust company, within or without the State of Arkansas, which defines the rights of the holders and registered owners of the bonds and provides for the appointment of a trustee for the holders and registered owners of the bonds.
      4. The trust indenture may control the priority between successive issues and may contain such other terms, covenants, and conditions that are deemed desirable including, without limitation, those pertaining to the custody and application of the proceeds of the bonds, the collection and disposition of revenues, the maintenance and investment of various funds and reserves, the nature and extent of the security, the rights and duties of the water district and the trustee for the holders or registered owners of the bonds, and the rights of the holders or registered owners of the bonds.
      5. The bonds may be sold at such price, including sale at a discount, and in such manner as the board may determine.
      6. All bonds, whether previously or subsequently issued pursuant to the provisions of this section, shall be exempt from all state, county, and municipal taxes;
    11. Sell and convey, mortgage, pledge, lease as lessor, and otherwise dispose of all or any part of its property, assets, franchises, rights, privileges, licenses, rights-of-way, and easements;
      1. In connection with the acquisition, construction, improvement, operation, or maintenance of its transportation and distribution lines, systems, equipment, facilities, or apparatus, use the bed of any stream without adversely affecting existing riparian rights, any highway or any right-of-way, easement, or other similar property rights, or any tax-forfeited land owned or held by the State of Arkansas or any political subdivision.
      2. However, this subdivision (a)(15) does not entitle riparian users to receive water owned, acquired, or developed by the water district without paying the district's water user charges;
      1. Have and exercise the right of eminent domain for the purpose of acquiring rights-of-way and other properties necessary in the construction or operation of its property and business in the manner now provided by the condemnation laws of this state for acquiring private property for public use.
      2. However, the power under subdivision (a)(16)(A) of this section shall not be used by an irrigation water district for the acquisition or construction of private on-farm irrigation reservoirs or natural watercourses, and any surplus property obtained by an irrigation water district under this power shall be first offered to the person or persons owning the remaining property from which it was taken at the price paid as eminent domain damages before it may be sold to others;
    12. Accept gifts or grants of money, services, franchises, rights, privileges, licenses, rights-of-way, easements, or other property, real or personal;
    13. Make any and all contracts necessary or convenient for the exercise of the powers granted in this chapter;
      1. Fix, regulate, and collect rates, fees, rents, or other charges for water and any other facilities, supplies, equipment, or services furnished by the water district.
      2. Rates shall be just, reasonable, and nondiscriminatory.
        1. If any district distributes water to consumers outside the district, the rates, fees, rents, and other charges for water and other facilities, supplies, equipment, or services furnished to consumers outside the district shall be calculated to pay the cost of such distribution outside the district.
        2. No part of the cost of distributing water or providing other services outside the district shall be borne by the members of the district, and there shall be no increase in the cost to members in the district as a result of furnishing water to consumers outside the district;
    14. Conduct its affairs within and without this state;
    15. Elect, appoint, or employ officers, agents, and employees of the water district and define their duties and fix their compensation;
    16. Do and perform all acts and things and have and exercise any and all powers as may be necessary, convenient, or appropriate to effectuate the purposes for which the water district is organized;
    17. Accept appropriations from the state upon such terms and conditions as may be imposed by law or rule to be used in the furtherance of the purposes for which the water district was created; and
    18. With notice, enter upon any land within or outside the water district for inspection purposes or other purposes as are necessary, convenient, and not inconsistent with the purposes of this chapter.
  2. Notwithstanding the powers conferred by this section, a water district shall comply with all laws of the State of Arkansas regarding the acquisition, storage, transportation, distribution, treatment, or disposal of water, including, without limitation, laws related to minimum stream flow, nonriparian water use, groundwater use, Arkansas Water Plan compliance, and public water supply.
      1. Notwithstanding any other provisions of this chapter, no irrigation district shall have the power to acquire title to or use any water stored in any reservoir created by a dam constructed before July 1, 1995, or to acquire water storage or withdrawal rights in any such reservoir.
      2. Subdivision (c)(1)(A) of this section shall not apply to United States Army Corps of Engineers projects whose main purpose is navigation.
    1. Irrigation districts may obtain water from wells, from excess surface water as defined in § 15-22-304(b), and from reservoirs constructed after July 1, 1995.

History. Acts 1957, No. 114, § 8; 1963, No. 120, § 5; 1969, No. 98, § 1; 1970 (1st Ex. Sess.), No. 21, § 2; 1973, No. 137, § 5; 1977, No. 194, § 1; 1979, No. 721, § 1; 1981, No. 425, § 33; A.S.A. 1947, § 21-1408; Acts 1989, No. 618, § 1; 1989, No. 705, § 1; 1995, No. 838, § 5; 1997, No. 907, § 2; 2001, No. 618, § 2; 2019, No. 315, § 999; 2019, No. 383, § 14.

A.C.R.C. Notes. Acts 1989, No. 705, § 2, provided:

“Act No. 114 of 1957, as amended, and as amended hereby, is hereby confirmed.”

Acts 1989, No. 705, § 3, provided:

“Any provision of law, whether special or general, in conflict with this act is expressly superseded by this act to the extent of such conflict. This act is supplemental to all other provisions of state law governing the issuance of bonds and, except as otherwise provided in this act, the provisions of state law governing the issuance of bonds continue to apply.”

Acts 1989, No. 705, § 4, provided that the provisions of this act shall be liberally construed in order to effectively carry out its purposes.

Acts 2001, No. 618, § 3, provided:

“This act shall apply to regional water distribution districts in existence on January 1, 2001, provided that it shall not apply to districts the lands within which have been subjected to an assessment or assessments of benefits under Arkansas Code §§ 14-116-601 through 14-116-611.”

Amendments. The 2019 amendment by No. 315 substituted “rule” for “regulation” in (a)(17) [now (a)(23)].

The 2019 amendment by No. 383, redesignated (a)(3)(A) as (a)(3) and redesignated the remaining subdivisions accordingly; substituted “However” for “Provided, that” in (a)(8)(B); substituted “However, this subdivision (a)(9) does not” for “Provided this provision shall not” in (a)(9)(B); substituted “subdivision (a)(15)” for “provision” in (a)(15)(B); substituted “the power under subdivision (a)(16)(A) of this section” for “this power” in (a)(16)(B); and added the (a)(19)(C)(i) and (a)(19)(C)(ii) designations.

U.S. Code. The Watershed Protection and Flood Prevention Act, referred to in this section, is codified as 16 U.S.C. §§ 1001-1007.

Cross References. Tort liability immunity, § 21-9-301 et seq.

Arkansas Water Plan, § 15-22-503.

Research References

Ark. L. Rev.

Looney, Enhancing the Role of Water Districts in Groundwater Management and Surface Water Utilization in Arkansas, 48 Ark. L. Rev. 643.

Case Notes

Acquisition of Water.

This chapter authorizes the districts to acquire water from wells, lakes, rivers, tributaries, or streams of or bordering this state, in addition to water from federal impoundments. Lyon v. White River-Grand Prairie Irrigation Dist., 281 Ark. 286, 664 S.W.2d 441 (1984).

Electric Utility Lines.

The powers granted to a water district in the context of the operation of water distribution facilities and services do not give the water district the right to construct its own electric power line from its plant within one power company's certified territory into the certified territory of another power company. Southwestern Elec. Power Co. v. Carroll Elec. Coop. Corp., 261 Ark. 919, 554 S.W.2d 308 (1977).

Eminent Domain.

The fact that a proposed canal for which a water district sought to acquire a right-of-way under eminent domain would at first serve only one user did not make such exercise of the right of eminent domain for private rather than public use where such water would be rendered available to many prospective users on the same terms. Hale v. Southwest Ark. Water Dist., 244 Ark. 647, 244 Ark. 647, 427 S.W.2d 14 (1968).

Cited: Ark. Soil & Water Conservation Comm'n v. City of Bentonville, 351 Ark. 289, 92 S.W.3d 47 (2002).

14-116-403. Appeal from district actions.

Any person aggrieved by the service furnished or rates charged by the water district shall have, as a matter of right, the right to petition the grievance from the decision or action of the water district, to the circuit court wherein the water district was formed. Upon the petition being filed, the circuit court shall hear the petition de novo and is empowered to make orders as necessary and proper in equity.

History. Acts 1957, No. 114, § 9; A.S.A. 1947, § 21-1409.

Case Notes

Cited: Hale v. Southwest Ark. Water Dist., 244 Ark. 647, 244 Ark. 647, 427 S.W.2d 14 (1968).

14-116-404. Revenues.

  1. Water districts formed pursuant to this subchapter shall be operated without profit, but the rates, fees, rent, or other charges for water and other facilities, supplies, equipment, or services furnished by the water district shall be sufficient at all times:
    1. To pay all operating and maintenance expenses necessary or desirable for the prudent conduct of its affairs and the principal of and interest on the obligations issued or assumed by the water district in the performance of the purposes for which it was organized; and
    2. For the creation of adequate reserves.
  2. The revenues of the water district shall be devoted, first, to the payment of operating and maintenance expenses and the principal and interest on outstanding obligations, and thereafter to reserves for improvements, new construction, depreciation, and contingencies as the board may from time to time prescribe.
  3. Revenues not required for the purposes set forth in subsection (b) of this section shall be returned from time to time to the customers of the water district on a pro rata basis, according to the amount of business done with each customer during the period for which the return is made, either in cash, in abatement of current charges for water, or otherwise as the board determines; but such return may be made by way of a general rate reduction to customers if the board so elects.

History. Acts 1957, No. 114, § 12; A.S.A. 1947, § 21-1412.

Case Notes

Net Revenues.

A deed of trust when construed as a whole provides for the operation and maintenance of the district's property so that there is no pledge of gross revenues in violation of the statutory provision for pledge only of net revenues. Hink v. Board of Dirs., 235 Ark. 107, 357 S.W.2d 271 (1962).

14-116-405. Tax exemption.

Water districts formed under this chapter shall be exempt from all excise taxes of whatsoever kind or nature, and further, shall be exempt from payment of assessments in any general or special taxing district levied upon the property of the water district, whether real, personal, or mixed.

History. Acts 1957, No. 114, § 10; A.S.A. 1947, § 21-1410.

Cross References. Exemption from ad valorem taxation, § 26-3-305.

14-116-406. Annexation of additional territory.

  1. Additional territory may be annexed to and embraced by a water district established and operating under this subchapter by petition to the circuit court in which the water district was originally established.
  2. The petition shall be prepared, filed, and proceedings had thereon in the same manner as is set out in this subchapter for original petitions praying the formation of a water district.

History. Acts 1957, No. 114, § 13; A.S.A. 1947, § 21-1413.

14-116-407. Contracts — Water district and United States.

The board is authorized to:

  1. Cooperate with the United States or any agency or instrumentality thereof, hereinafter referred to as the “United States”, in the development of plans for the construction, operation, and maintenance of any facilities which the water district is authorized to construct, operate, and maintain;
  2. Negotiate a contract with the United States or give such assurance as may be required by the United States for the construction, operation, and maintenance of such facilities or any part thereof by the United States.
      1. The contract or assurance may provide for the payment by the water district to the United States of the agreed costs thereof in the form of construction charges, operation and maintenance charges, water storage rental, or service charges.
      2. “Construction charges” may include the cost of works of improvement for any project addressing the purposes contained in § 14-116-102 and ancillary benefits derived therefrom, including, but not limited to, fish and wildlife, prevention of seepage on irrigated lands, prevention of erosion and sediment damages, and the conservation, development, utilization, and disposal of water.
    1. The contract or assurance may provide for the repayment of the various charges by the water district primarily or exclusively from revenue to be derived by the district from the sale under contract between the district and its water users from the district works, with payment to be made either in the form of agricultural products, cash, or, if an improvement project area has been created under § 14-116-501 et seq., § 14-116-601 et seq., or § 14-116-701 et seq., with revenues derived from assessments levied pursuant thereto.
    2. The contract or assurance may provide that the water district shall furnish lands, easements, and rights-of-way and that property so acquired by the district may be conveyed to the United States insofar as the property may be required for the construction, operation, and maintenance of works thereon by the United States for the benefit of the district.
    3. The contract or assurance may provide that the water district shall save and hold harmless the United States from any liability or damages due to or arising out of the construction, operation, and maintenance of any of the works.

History. Acts 1995, No. 838, § 6.

Subchapter 5 — Improvement of Water Districts

Effective Dates. Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

14-116-501. Proposed improvement plan for assessment-based water district projects.

    1. Upon the securing of a petition described in subsection (b) of this section, a water district may develop an improvement project plan for any purpose contained in § 14-116-102 that would benefit the lands within the district.
    2. All such improvement plans for improvement project areas shall be appropriately identified by a number or a name selected by the district.
    3. The district may employ an independent engineer or seek the assistance of federal or state agencies in developing the plan.
    4. The plan must include a preliminary survey and a report and should include the following as a minimum:
        1. The territory which will be benefited by the proposed improvement.
        2. The territory need not consist of contiguous parcels of land;
      1. The general character of the improvements;
      2. An estimate, in reasonable detail, of the expenses involved;
      3. The proposed works of improvement and their proposed locations as can be estimated;
      4. The general nature, purposes, utility, and need of the proposed improvements and their feasibility;
      5. An estimate, to the extent it is known, of the method of financing for works of improvement;
      6. The amount, if any, proposed to be assessed generally against the benefited lands;
      7. Whether, and if so, to what extent, any lands, lakes, or natural watercourses, rivers, tributaries, or streams within the project improvement area are likely to be damaged by or as a result of the acquisition or construction of improvements constituting part of the plan of improvement; and
      8. The plan for compensating landowners for damages, if any.
  1. Upon the securing of a petition by a majority of the owners of the benefited lands and the owners of a majority in value of the benefited lands, as shown by the last assessment of real property within a proposed improvement project area within the water district, the district shall update and complete a final improvement plan which shall contain a final survey and report.
  2. The petition shall describe generally the proposed improvement plan as contained in the preliminary survey and the report.
    1. Upon completion of the final improvement plan for an improvement project area, a copy of the final survey and report shall be submitted to the Arkansas Natural Resources Commission for its approval and to other appropriate federal and state agencies for comment.
      1. The Arkansas Natural Resources Commission shall solicit written comment from appropriate federal and state agencies on the items described in the final survey and report, including, but not limited to, the United States Army Corps of Engineers, the United States Fish and Wildlife Service, the Arkansas State Game and Fish Commission, the Division of Arkansas Heritage, and the Division of Environmental Quality.
      2. Upon receipt of comments from such agencies, the Arkansas Natural Resources Commission shall make such comments available to the public and shall solicit comments from the public, giving notice by publication in a newspaper published and having a general circulation in the water district, once a week for two (2) weeks, of the Arkansas Natural Resources Commission's intent to hold a hearing, to be held not less than twenty (20) days after first publication of such notice, at which hearing comments from the public will be heard.
      3. The Arkansas Natural Resources Commission shall duly consider all comments received from such agencies and the general public, if any, and shall thereafter approve, modify, or disapprove such final report and survey and notify the district's board of directors of its action in the matter.
  3. If the Arkansas Natural Resources Commission approves the report, or approves the report with modifications, and after the board reviews comments, the board of directors of a regional water distribution district may adopt the final improvement plan, with any necessary amendments or revisions, or both, to the final survey and report.

History. Acts 1995, No. 838, § 7; 1997, No. 907, § 3; 1999, No. 1164, § 124; 2019, No. 910, § 3034.

Amendments. The 2019 amendment, in (d)(2)(A), substituted “Division of Arkansas Heritage” for “Department of Arkansas Heritage” and “Division of Environmental Quality” for “Arkansas Department of Environmental Quality”.

14-116-502. Court approval of project improvement plan — Appointment of assessor.

  1. The board of directors of the regional water distribution district shall by petition request court approval of the improvement plan. As part of its petition, the board of directors of a regional water distribution district shall submit a copy of the final survey and report along with such additional information or maps necessary so that the court may understand there from the purpose, utility, feasibility, and need for the improvement plan.
  2. Upon the filing of the petition by the board of directors of a regional water distribution district, the court clerk shall give notice thereof by certified registered letter to each landowner, at the address contained in the records of the county tax collector, owning property within the proposed improvement project area and by publication for two (2) weeks in a newspaper published and having a general circulation in the water district calling upon all persons owning property within the proposed improvement project area, which shall be described in the notice, to appear at a hearing before the court, on some day to be fixed by the court, to show cause in favor of or against the property improvement plan for the proposed improvement project area.
    1. Based upon a review of the petition and attachments, the court, if it determines that the improvement plan is in the best interest of the owners of land within the proposed improvement project area, shall authorize the district to employ an assessor.
    2. If the court determines that the improvement plan is not in the best interest of the owners of land within the proposed project area, it shall deny the petition.
    1. The assessor retained by the district shall take the oath of office as required by Arkansas Constitution, Article 19, § 20, and shall also swear that he or she will well and truly complete his or her duties of assessor.
    2. The district may from time to time change assessors, but the assessor selected must be approved by the court.
  3. The assessor shall review the petitions of the landowners to determine if at least a majority of the owners of the benefited lands and the owners of a majority in value of the benefited lands, as shown by the last assessment of real property within a proposed improvement project area, have signed said petitions.
  4. Upon certification by the assessor that the requirements of subsection (e) of this section have been met, the court shall enter an order approving the improvement plan and establishing the project improvement area.
  5. The court's findings shall have the force and effect of a judgment, from which an appeal may be taken within thirty (30) days, either by any such owner of land or by the board; but, if no appeal is taken within that time, the order shall be deemed to be conclusive and binding upon all the land within the boundaries of the improvement project area, and upon the landowners.

History. Acts 1995, No. 838, § 7.

14-116-503. Expenses — Plan preparation, adoption, and approval.

All costs and expenses incurred in the preparation, adoption, and approval of an improvement plan shall be paid by the water district out of its general funds, but all such costs and expenses paid or otherwise incurred by the district, upon the approval of the improvement plan, shall be repaid to the general funds of the district out of the proceeds of the first taxes or other revenues collected by the district for carrying out the improvement plan; provided that nothing in this chapter shall authorize punitive assessments to be made against any landowner.

History. Acts 1995, No. 838, § 7.

14-116-504. Alteration of plans.

    1. The board of directors of the regional water distribution district may, at any time after the court has approved the improvement plan, make alterations in the plan and its works of improvement, provided such changes do not change the benefits of the improvement plan.
    2. Any such change in the improvement plan shall be filed with the court clerk.
  1. If alterations in the improvement plan would change the court-approved assessment of benefits and damages, the changed assessment must be submitted to the court for consideration according to the procedures established in this chapter; except that only owners of lands whose assessments are changed may object.

History. Acts 1995, No. 838, § 7.

14-116-505. Additional works of improvement.

After the work contemplated by the original improvement plan has been completed, the board of directors of the regional water distribution district may adopt and file with the court clerk a plan for additional works of improvement for the improvement project area, and the proceedings with respect to such additional plan, including the right of appeal, shall be the same insofar as may be practicable as those required in connection with the original plan; except that the petitions of the landowners shall not be required.

History. Acts 1995, No. 838, § 7.

Subchapter 6 — Improvement Plan Assessments

14-116-601. Assessment of benefits and damages.

  1. After the court issues an order approving the improvement plan, the assessor shall proceed to assess the land within the project area on the basis of benefits accruing to the land from the improvement plan.
    1. Taking into account available funding sources, and in the discretion of the district, the total tax levied against all individual and separate parcels of land within the project area shall be sufficient to pay up to the estimated cost of the improvement, all related costs, including, but not limited to, the interest, bond issuance, legal, accounting, appraisals, the debt issuance and related costs, and up to an additional twenty percent (20%) for unforeseen contingencies.
    2. The amount of interest which will accrue on notes, bonds, or other evidences of indebtedness issued by a water district shall be included in and added to the taxes levied against the land in the project area, but the interest to accrue on the notes, bonds, or other evidences of indebtedness shall not be construed as a part of the costs of construction in determining whether the expenses and the costs of making the improvements exceed the assessment of benefits.
  2. The tax so levied shall be a lien upon the land within the improvement project area from the time that the tax is levied by the court and shall be entitled to preference over all demands, executions, encumbrances, or liens whensoever created. It shall continue until the tax and all related costs and expenses with penalties shall have been paid.
    1. A separate book for each improvement project area shall be maintained with respect to assessments of benefits on the basis of benefits accruing to the land from the improvement plan.
    2. The assessor shall cause to be inscribed in the book the description of each tract of land. The assessor shall assess the value of the benefits to accrue to each tract by reason of the improvement plan, including, without limitation, the works of improvement, and shall enter the assessment of benefits opposite the description, together with an estimate of what the landowner will be required to pay on the assessment.
    3. There shall be placed opposite the description of each tract of land the name of the owner, as shown by the last county assessment, but a mistake in the name shall not vitiate the assessment. Evident errors which occur in the county assessment list may be corrected.
  3. The assessor shall also assess all damages that will accrue to any landowner by reason of the proposed improvements, including all injury to lands taken or damaged.

History. Acts 1995, No. 838, § 7.

14-116-602. Assessments — Filing and recording — Appointment of board of adjustment.

    1. When an assessment is completed, the assessor shall subscribe an original and one (1) copy of the assessment and deposit the original with the court clerk, where it shall be kept and preserved as a public record.
    2. The copy shall be certified by the court clerk after court confirmation and returned to the assessor to be preserved with the records of the water district.
  1. Upon the filing of assessment with the court clerk, the court shall appoint a three-member board of adjustment to hear complaints as provided for in § 14-116-605. Members of the board of adjustment shall be owners of land within the improvement project area and shall serve without compensation, except that the water district shall pay the board of adjustment and its members necessary and reasonable expenses associated with hearing complaints and reporting its recommendations to the court.

History. Acts 1995, No. 838, § 7.

14-116-603. Appeal — Notice — Hearing of assessment complaints.

    1. Upon the filing of assessment, the court clerk shall give notice thereof by publication for two (2) weeks in a newspaper published and having a general circulation in the water district.
    2. The notice of hearing shall give a description of the land assessed and state that the owners of the land may appear before the board of adjustment on a day named therein and present complaints, if they have any, against the assessment of any land in the improvement project area.
    3. The day so named shall be not less than ten (10) days nor more than thirty (30) days after the last publication of the notice.
  1. If no complaint is made on the assessments levied, the assessments as deposited with the court clerk shall be conclusive, and the court shall enter an order confirming the assessment.
  2. Findings of the court shall have the force and effect of a judgment, from which an appeal may be taken within thirty (30) days, either by any such owner of land or by the board.

History. Acts 1995, No. 838, § 7.

14-116-604. Acquiescence in damage assessment — Condemnation.

If such owner has been given notice by certified mail posted at least thirty (30) days prior to the date of the hearing provided for in § 14-116-603, he shall be construed to have accepted the assessment of damages in his favor made by the assessor or to have acquiesced in the failure to assess damages in his favor unless he gives to the court clerk, not later than the date of the hearing provided for in § 14-116-603, notice in writing that he demands a reassessment of his damages. In this event, the board shall institute an action to condemn the land that will be taken or damaged in carrying out the works of improvement included in the improvement plan.

History. Acts 1995, No. 838, § 7.

14-116-605. Assessments — Complaints.

  1. Any owner of land within the improvement project area who conceives himself to be aggrieved by the assessment of benefits or that the assessment of any land within the project area is inadequate, shall present his complaint to the board of adjustment on the day named in the notice of hearing. At that time, the board of adjustment shall consider the complaint and make recommendations to the court thereon, either confirming the assessment or increasing or diminishing it.
  2. After review of the evidence presented to the board of adjustment and the recommendation of the board of adjustment, the court shall enter its findings thereon, either confirming the assessment or increasing or diminishing it.

History. Acts 1995, No. 838, § 7.

14-116-606. Reassessments.

  1. In no event shall a reduction of assessments be made after the assessment of benefits has been confirmed by the court as provided in § 14-116-603 and obligations based on the assessments have been incurred, but any reduction in benefits shall be paid for by the water district as damages. The claim for those damages shall be secondary and subordinate to the rights of the holders of bonds or other obligations or evidences of indebtedness which have theretofore been issued.
  2. If, by reason of a change of the improvement plan pursuant to § 14-116-504, or change in land use, or any other reason, the board determines that current assessment on any land within the improvement project area has become inequitable, the board may direct the assessor to reassess the property. The assessor shall reassess the land in question, increasing the assessment if greater benefits will be received and reducing the assessment if benefits have decreased or if damages will be sustained.
  3. All reassessments shall be made, advertised, and confirmed as is provided for the original assessment of benefits under this subchapter.
  4. If any obligation of the water district arising from the improvement plan shall be outstanding at the time of a reassessment, the total liability thereon of land against which assessments of benefits have been confirmed shall be no less than the liability of the property by reason of the original assessment.

History. Acts 1995, No. 838, § 7.

14-116-607. Payment of taxes.

  1. When the tax levies are made, the landowners shall have the privilege of paying the taxes in full, without interest, within thirty (30) days after the levy becomes final.
  2. All taxes levied may be paid in installments, so that not more than ten percent (10%) of the allocated tax shall be collectible in any one (1) year against the wishes of the landowner. The deferred installments of the taxes shall bear interest at a rate established by the board and shall be payable only in installments as levied.
  3. If any landowner shall pay in full the levy of taxes against his land as herein provided, that land shall not be further liable by reason of the assessment of benefits or any reassessment thereof except a reassessment because of changed plans as provided in § 14-116-606(b), and then only to the extent of the increase in assessment, if any, because of the greater benefit thereby received. However, in case of any additional assessment for greater benefit, any landowner who shall have paid his previous tax levy in full shall have the privilege of paying in full the increase in tax levied in the manner herein provided.

History. Acts 1995, No. 838, § 7.

14-116-608. Levy of tax — Lien — Appeal from tax assessment.

  1. The court shall, at the same time that the assessment of benefits is filed or at any subsequent time when called upon by the board, enter an order, which shall have the force and effect of a judgment, providing that there shall be levied against the land within the project area a tax sufficient to pay the estimated cost of the improvement, with up to twenty percent (20%) added for unforeseen contingencies.
    1. This tax shall be a charge against the land in the proportion to the amount of the assessment of benefits thereon and may be paid in full or in annual installments as provided in § 14-116-607.
    2. The tax so levied shall be a lien upon the land within the improvement project area from the time that the tax is levied by the court and shall be entitled to preference over all demands, executions, encumbrances, or liens whensoever created. It shall continue until the tax, with such penalties and costs as may accrue thereon, shall have been paid.
    1. The remedy against such levy of taxes shall be by appeal, and this appeal shall be taken within twenty (20) days from the date of the order by the court.
    2. On this appeal, the presumption shall be in favor of the legality of the tax.

History. Acts 1995, No. 838, § 7.

14-116-609. Levy of tax for preliminary expenses.

  1. If the board does not deem it to the advantage of the project area to proceed immediately with the construction of the works of improvement upon the filing and confirmation of the assessment of benefits, it may cause to be levied and collected a tax based upon the assessment of benefits and collectible from the benefited land in the improvement project area in the proportion to the amount of the assessment of benefits thereon for the purpose of paying preliminary expenses for development of the improvement plan for the improvement project area.
  2. The board shall report to the court the rate of taxation necessary to be levied to pay the preliminary expenses, and thereupon it shall be the duty of the court to make levy of taxes upon the benefited land in the project area sufficient to pay the preliminary expenses, with ten percent (10%) added for unforeseen contingencies. This tax shall be extended upon the tax books of the county and collected along with other taxes in the same manner as taxes levied for construction purposes, as provided in this chapter.
  3. If any project area is abandoned before the making of the assessment of benefits, the tax for preliminary expenses shall be levied at the rate fixed by the board upon the real property therein upon the basis of the assessment for county and state purposes.

History. Acts 1995, No. 838, § 7.

14-116-610. Levy of tax for operation and maintenance.

  1. On or before the first Monday in October of each year, the board shall estimate the amount necessary for the ensuing calendar year for operation and maintenance of the works of improvement provided for in the improvement plan, taking into account all available funding, and shall submit the estimate to the court, with a request that a tax levy be made for the amount needed.
  2. If the court finds the amount to be fair and reasonable, it shall enter an order, which shall have the force and effect of a judgment, providing that there shall be levied against the benefited land within the improvement project area a tax sufficient to pay the estimated cost of operation and maintenance.
  3. This tax may be a flat charge per acre or a charge against the benefited land in the proportion to the amount of the assessment of benefits on the land.

History. Acts 1995, No. 838, § 7.

14-116-611. Extension of taxes on county tax books — Collection of taxes.

  1. Copies of the assessment necessary for the assessment and collection of taxes by the county shall be provided by the district to the appropriate county officials of each county within the improvement project area.
    1. The amount of the taxes herein provided for shall be annually extended upon the tax books of the county, or counties if the improvement project area is situated in more than one (1) county, and collected by the collector of the county along with the other taxes.
    2. For his services in making this collection, the collector shall receive a commission as is provided by law.
  2. The collections shall be paid over to the board by the collector at or before the time that he is now required to make settlement with the county treasurer for general taxes.
  3. The collection of taxes levied hereunder, the proceedings for the collection of delinquent taxes, and the periods of redemption from sales for foreclosure of tax liens shall be in accordance with §§ 14-117-423 — 14-117-427.

History. Acts 1995, No. 838, § 7.

Subchapter 7 — Bonds

14-116-701. Authority to borrow money or issue bonds, etc.

The board may borrow money at a rate of interest from any agency of the United States, the state, or any other public or private lending source; may issue promissory notes, negotiable bonds, or other evidences of indebtedness as required by the lender thereof; and may pledge and assign all assessments and revenues relating to the improvement project area for the repayment thereof.

History. Acts 1995, No. 838, § 7.

14-116-702. Terms and form of bonds, etc.

  1. Bonds or other evidences of indebtedness issued under the terms of this subchapter shall bear such date or dates, mature at such time or times not in excess of forty (40) years, and any such bonds shall be sold at public sale through competitive bidding, and any such bonds and other evidences of indebtedness and be in such form and denomination as the board may determine.
  2. The board may sell, exchange, or hypothecate these obligations from time to time at such interest rates and such prices as are specified by the board.

History. Acts 1995, No. 838, § 7.

14-116-703. Refunding bonds.

Refunding bonds may be issued and may be sold, exchanged, or hypothecated by the board.

History. Acts 1995, No. 838, § 7.

14-116-704. Security for bonds — Delinquencies.

  1. All bonds issued under the terms of this chapter that are made payable from the proceeds of assessments shall be secured by a lien on all benefited lands in each individual improvement project area unless the board shall be able to sell bonds payable out of revenue only; provided, however, that land in any district which is not part of a project improvement area shall not be assessed with respect to any costs relating to such project improvement and shall not be encumbered with any lien relating to bonds issued with respect thereto. The board shall see to it that a tax is levied annually and collected under the provisions of this chapter so long as it may be necessary to pay any bond issued under its authority.
      1. If any bond or interest on any bond issued by the board is not paid within thirty (30) days after its maturity, it shall be the duty of the court, on the application of any holder of the bond or interest so overdue, to order the collection of the taxes aforesaid.
      2. At its discretion, the court may appoint a receiver therefor.
    1. The proceeds of the taxes and collections of each improvement project area shall be applied, after payment of costs, first to overdue interest and then to payment pro rata of all bonds issued for that project area which are then due and payable.
    2. The board or receiver may be directed by suit to foreclose the lien of the taxes on delinquent parcels of land.
    3. The suits so brought by the receiver shall be conducted in all matters as suits by the board, as herein provided, and with like effect.
    4. The decrees and deeds herein shall have the same presumptions in their favor.
    5. However, when all such sums have been paid, the receiver shall be discharged, and the affairs of the district with respect to the improvement project area shall be conducted by the board as provided in this chapter.

History. Acts 1995, No. 838, § 7.

Subchapter 8 — Applicability of Chapter

14-116-801. Provisions inapplicable to state agencies, political subdivisions, and state lands.

The provisions of this chapter, as now or hereafter amended shall not be applicable to agencies of the State of Arkansas or of political subdivisions of the state, nor to lands owned by such agencies.

History. Acts 1995, No. 838, § 10.

Chapter 117 Irrigation, Drainage, and Watershed Improvement District Act

Research References

ALR.

Local use zoning of wetlands or flood plain as taking without compensation. 19 A.L.R.4th 756.

Liability for diversion of surface water by raising surface level of land. 88 A.L.R.4th 891.

U. Ark. Little Rock L.J.

Looney, Diffused Surface Water in Arkansas: Is It Time for a New Rule?, 18 U. Ark. Little Rock L.J. 3.

Subchapter 1 — General Provisions

Cross References. Relocation assistance payments, § 22-9-701 et seq.

Effective Dates. Acts 1957, No. 171, § 10: Mar. 6, 1957. Emergency clause provided: “It has been found and declared by the General Assembly that erosion, floodwater and sediment damages in the watershed of the rivers and streams of this state are causing loss of life and damage to property and constitute a menace to the welfare of the people of this state. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health, safety and welfare shall be in full force and effect from and after its passage and approval.”

Research References

Ark. L. Rev.

Looney, Enhancing the Role of Water Districts in Groundwater Management and Surface Water Utilization in Arkansas, 48 Ark. L. Rev. 643.

14-117-101. Title.

This chapter shall be known as the “Arkansas Irrigation, Drainage, and Watershed Improvement District Act of 1949.”

History. Acts 1949, No. 329, § 1; 1957, No. 171, § 1; A.S.A. 1947, § 21-901.

Case Notes

Cited: Allen v. Tri-County Watershed Imp. Dist., 245 Ark. 905, 435 S.W.2d 796 (1968).

14-117-102. Declaration of policy.

  1. The General Assembly takes notice that interests of the state would be benefited by the establishment of irrigation systems and that the coordination of irrigation, flood control, and drainage improvements is a matter of public interest and public welfare; the General Assembly believes that this end will be promoted by enabling legislation for the organization of irrigation and drainage districts, vesting the districts with appropriate powers to accomplish their objectives, and, therefore, declares its policy to be to promote these activities by providing for the organization, operation, and maintenance of districts for the multiple purposes of irrigation, flood control, and drainage.
    1. The General Assembly also takes notice that:
      1. Erosion, floodwater, and sediment damages in the watersheds of the rivers and streams of this state, causing loss of life and damage to property, constitute a menace to the welfare of the people of this state;
      2. This state and its political subdivisions should cooperate with the federal government for the purpose of preventing such damages and of furthering the conservation, development, utilization, and disposal of water and thereby preserve and protect this state's land and water resources, as contemplated by the Watershed Protection and Flood Prevention Act;
      3. This cooperation may be more fully promoted by enabling legislation for the organization of watershed improvement districts vested with appropriate powers to accomplish their objectives.
    2. Therefore, the General Assembly declares its policy to be to promote such cooperation and purposes by providing for the organization, operation, and maintenance of watershed improvement districts. These districts may be combined with the other districts authorized by this chapter.

History. Acts 1949, No. 329, § 2; 1957, No. 171, § 2; A.S.A. 1947, § 21-902.

U.S. Code. The Watershed Protection and Flood Prevention Act, referred to in this section, is codified as 16 U.S.C. §§ 1001-1007.

14-117-103. Definition.

As used in this chapter, unless the context otherwise requires, “board” means the board of commissioners organized pursuant to § 14-117-301 et seq.

History. Acts 1949, No. 329, § 8; A.S.A. 1947, § 21-908.

14-117-104. Construction of chapter.

Nothing in this chapter shall be construed to in any way repeal any existing statute with reference to the creation of other improvement districts within the State of Arkansas nor to in any other manner impair any obligations on contracts entered into by the other improvement districts.

History. Acts 1949, No. 329, § 3; A.S.A. 1947, § 21-903.

14-117-105. Master.

  1. The chancery or circuit court is expressly authorized to appoint a master to take testimony and perform the functions of a master as in other cases and to make a final report and recommendation to the court.
  2. Any aggrieved party may, within thirty (30) days of the filing of a report by a master appointed as hereinbefore provided, file a written protest to the finding or recommendation of the master.
  3. The court shall approve, modify, or reverse the findings of the master and shall enter a decree in accordance with the equities in the case.
  4. Any owner of real property within the district or any other party who feels aggrieved from the final decree of the court may appeal to the Supreme Court.

History. Acts 1949, No. 329, § 33; A.S.A. 1947, § 21-933.

14-117-106. Prompt court compliance required.

If the court does not act promptly in complying with the terms of any section of this chapter essential to the creation and operation of a district, it may be compelled to do so by proceeding in mandamus in a court of competent jurisdiction.

History. Acts 1949, No. 329, § 5; 1957, No. 171, § 4; 1963, No. 37, § 1; A.S.A. 1947, § 21-905.

Case Notes

Cited: Allen v. Tri-County Watershed Imp. Dist., 245 Ark. 905, 435 S.W.2d 796 (1968).

14-117-107. Change of jurisdiction.

  1. All districts formed prior to June 13, 1963, the jurisdiction over which was vested in the chancery court, upon approval of a majority of its board of directors, may petition the circuit court to assume jurisdiction.
  2. If the circuit court deems the action to be in the best interests of the landowners of the petitioning district, an order shall be entered upon the court's records to that effect. Jurisdiction shall therefore vest to the exclusion of chancery court.
  3. However, nothing in this chapter is intended to affect the validity of existing districts heretofore created under the jurisdiction of chancery court.

History. Acts 1963, No. 37, § 6; A.S.A. 1947, § 21-934.

Publisher's Notes. Acts 1963, No. 37, § 7, provided “All irrigation and watershed districts heretofore created and operating under the jurisdiction of the Chancery Court and all acts performed by or in behalf of such districts pursuant to or in accordance with orders of the Chancery Court are hereby validated for all intents and purposes.”

Subchapter 2 — District Establishment

Effective Dates. Acts 1957, No. 171, § 10: Mar. 6, 1957. Emergency clause provided: “It has been found and declared by the General Assembly that erosion, floodwater and sediment damages in the watershed of the rivers and streams of this state are causing loss of life and damage to property and constitute a menace to the welfare of the people of this state. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health, safety and welfare shall be in full force and effect from and after its passage and approval.”

Acts 1959, No. 131, § 6: Mar. 3, 1959. Emergency clause provided: “It is hereby determined and declared that the organization and operation of Watershed Improvement Districts are being unduly delayed; that except for the passage of this Act, said districts will have to incur unnecessary expenses in the organization and operation of said districts. An emergency is therefore declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and safety, it shall be in effect and full force from and after its passage and approval.”

14-117-201. Purposes.

The purposes for which districts may be organized under this chapter shall include:

  1. The construction, operation, and maintenance of pools, lakes, reservoirs, dams, levees, ditches, canals, waterways, pumping works, and other facilities for the purpose of irrigation, flood control, and drainage, or in the furtherance of such purposes;
  2. The construction, operation, and maintenance of levees, ditches, dams, canals, waterways, pumping works, and other facilities and improvements on lakes, rivers, bayous, and streams to provide for irrigation, flood control, and drainage, or in furtherance of such purposes;
  3. The construction, operation, and maintenance of works of improvement for the purposes of preventing erosion, floodwater, and sediment damages and for the conservation, development, utilization, and disposal of water or in furtherance of such purposes;
  4. The construction, operation, and maintenance of reservoirs or other areas and facilities for recreation, fish and wildlife, or in the furtherance of such purposes.

History. Acts 1949, No. 329, § 4; 1957, No. 171, § 3; 1963, No. 110, § 1; A.S.A. 1947, § 21-904.

14-117-202. Petition for establishment — Engineer and survey — Bond.

  1. It shall be the duty of the court to enter upon its record an order appointing an engineer to be selected by the petitioners when a majority in number of the owners, exclusive of the owners of real property in incorporated towns or cities, of the lands or the owners of a majority in value of the lands, exclusive of the owners of real property in incorporated towns or cities, as shown by the last assessment of real property within a proposed district shall:
    1. Petition the chancery or circuit court to establish a district to embrace their property:
      1. Describing generally the region which it is intended shall be included within the district.
      2. Setting forth:
        1. The proposed name of the district;
        2. The purpose or purposes of the district;
        3. The general nature of the work to be done;
        4. The necessity of the work;
        5. The feasibility of the work; and
        6. The estimated cost of the project, as then estimated by those filing the petition from information they have at the time, with reasonable detail and definiteness in order that the court may understand the purpose, utility, feasibility, and need or necessity for the project; and
    2. File a good bond to pay for the expenses of survey of the proposed district, in case the district is not formed.
  2. The engineer selected by the petitioners shall be a suitable person, and if not, an engineer shall be named who is satisfactory to the court.
  3. The engineer shall give bond in a sum not less than one thousand dollars ($1,000) to be fixed by the court for the faithful discharge of his duties. He shall be liable upon such bonds for negligence or incompetency causing loss to the district.
  4. The engineer shall forthwith proceed to make a survey and ascertain the limits of the region which would be benefited by the proposed improvements.
  5. The engineer shall file with the chancery or circuit clerk a report showing the territory which will be benefited by the proposed improvements, giving a general idea of its character and expense, and making suggestions as to the proposed improvements and their location as he may deem advisable.
  6. The territory need not consist of contiguous parcels of land.
  7. All expenses incident to the survey and the cost of publication shall be paid by the county or counties in the ratio and proportion of benefits assessed to lands in the respective counties as the work progressed upon proper showing; but all expenses incurred by the county or counties in the creation of any district shall, upon the creation of the district, be reimbursed to the county or counties out of the proceeds of the first revenues collected by the district.

History. Acts 1949, No. 329, § 5; 1957, No. 171, § 4; 1963, No. 37, § 1; A.S.A. 1947, § 21-905.

Case Notes

Estimated Costs.

Although the improvements may cost more than the estimated cost of the project as estimated by those then filing the petition, where many thousands of acres of rich land were involved in the district, it would not be such a great difference as to be unreasonable and not in conformity with the estimate. Pendleton v. Stuttgart & King's Bayou Drainage & Irrigation Dist., 235 Ark. 513, 360 S.W.2d 750 (1962).

Petitioners.

Where no fraud, duress, deception, or anything of that kind was alleged by movants in a petition who sought to have their names withdrawn after a great deal of work had been done on the project and expense incurred in connection therewith and a lengthy trial had, the court committed no error in denying their motion. Pendleton v. Stuttgart & King's Bayou Drainage & Irrigation Dist., 235 Ark. 513, 360 S.W.2d 750 (1962).

Territory Included.

The inclusion in a new district of lands already in an existing district is permissible since the lands may be benefited by both drainage districts. Pendleton v. Stuttgart & King's Bayou Drainage & Irrigation Dist., 235 Ark. 513, 360 S.W.2d 750 (1962).

Where lands above overflow would receive indirect benefits as a result of the proposed improvement to the district, the proposed improvement was one in which all the landowners within the territory of the proposed district had, to a certain extent, a common interest, and they were to be included in the district. Pendleton v. Stuttgart & King's Bayou Drainage & Irrigation Dist., 235 Ark. 513, 360 S.W.2d 750 (1962).

Cited: Allen v. Tri-County Watershed Imp. Dist., 245 Ark. 905, 435 S.W.2d 796 (1968).

14-117-203. Alternative petition for establishment.

  1. If, upon the presentation of the petition for the formation of a district, provided for in § 14-117-202, a preliminary survey has been made and a report prepared with assistance from the United States Department of Agriculture, Soil Conservation Service, or from the Chief of Engineers, United States Army Corps of Engineers, or any other federal or state agency, and that report sets forth the proposed name of the district, the purpose or purposes of the district, delineates the area to be benefited, describes the general nature of the works of improvement, the necessity thereof, the feasibility thereof, and the estimated cost of the project, with reasonable detail and definiteness in order that the court may understand therefrom the purpose, utility, feasibility, and need or necessity therefor, a majority in number of the owners of title to real property and the owners of a majority in value of the real property in the proposed district, as shown by the last assessment, may present a petition to the chancery or circuit court, accompanied by the aforesaid survey and report, praying the establishment of the district.
  2. Upon the presentation of such a petition, it shall be the duty of the court to make the order establishing the district without the appointment of an engineer and without further inquiry.
  3. Any detailed plans prepared following the formation of the improvement district will be filed with the court as a supplement to the preliminary survey and report when the plans are adopted by the board of directors, as provided in § 14-117-401.
  4. If no such petition is filed, it shall be the duty of the court to investigate as provided in § 14-117-202 and to establish the district if it is of the opinion that the establishment thereof will be to the advantage of the owners of real property therein.
  5. Guardians may sign the petition for their wards; trustees, executors, and administrators may sign for estates represented by them. If the signature of any corporation thereto is attested by the corporate seal, the signature shall be sufficient evidence of the assent of the corporation to the petition.

History. Acts 1949, No. 329, § 6; 1959, No. 131, § 1; 1963, No. 37, § 2; A.S.A. 1947, § 21-906.

Case Notes

Petitioners.

The court, in its discretion, may deny a petition that fails to contain the names of both a majority in number and in valuation of the affected landowners. Balloun v. Archer, 238 Ark. 194, 379 S.W.2d 6 (1964).

The names of petitioners who owned no land within the proposed watershed improvement district, those petitioners who died before the filing of the petition, those signatures obtained without authority of the landowners, and one who denied (without contradiction) ever signing the petition should have been removed from the petition. Balloun v. Archer, 238 Ark. 194, 379 S.W.2d 6 (1964).

Cited: Allen v. Tri-County Watershed Imp. Dist., 245 Ark. 905, 435 S.W.2d 796 (1968).

14-117-204. Notice and hearing.

  1. The chancery or circuit clerk shall give notice by publication for two (2) weeks in some newspaper published and having a general circulation in the county calling upon all persons owning property within the proposed district to appear before the court on some day to be fixed by the court to show cause in favor of or against the establishment of the district. If the court deems it to the best interest of the owners of real property within the proposed district that the district shall become a district under the terms of this chapter, it shall make an order upon its records establishing the property as a district subject to all the terms and provisions of this chapter.
  2. Any owner of real property within the territory of the proposed district may petition the court to exclude his property.
  3. If the court finds that the real property would not be benefited by the improvements of the proposed district, the court, in its order, shall exclude the real property of the petitioner or petitioners from the district. However, lands shall be excluded for irrigation purposes by the order of the court upon a showing that the land is supplied by adequate irrigation from surface sources or other sources existing at time of order creating the district and, provided further, that lands so excluded shall be subordinate to all lands within the irrigation district should water from the irrigation works be desired at a later date.

History. Acts 1949, No. 329, § 5; 1957, No. 171, § 4; 1963, No. 37, § 1; A.S.A. 1947, § 21-905.

Case Notes

Cited: Allen v. Tri-County Watershed Imp. Dist., 245 Ark. 905, 435 S.W.2d 796 (1968).

14-117-205. Land in more than one county.

  1. If land in more than one (1) county is embraced in the proposed district, the petition shall be addressed to the chancery or circuit court in which the largest portion of the lands lie. All proceedings shall be had in that court, and the court shall apportion all costs incurred in the creation of the district between the county or counties in proportion to the benefits assessed to lands in each such county.
  2. Such expenses as are incurred prior to the time when the assessment is made shall be apportioned between the counties in the proportion which the court shall deem to be just and equitable.
  3. In the event district lands are in more than one (1) county, all notices shall be published in newspapers published and having a bona fide circulation in each such county in which the district will embrace land.
  4. All of the districts shall be appropriately identified by the court, that is, they shall be numbered consecutively or shall receive names selected by the court.

History. Acts 1949, No. 329, § 5; 1957, No. 171, § 4; 1963, No. 37, § 1; A.S.A. 1947, § 21-905.

Case Notes

Cited: Allen v. Tri-County Watershed Imp. Dist., 245 Ark. 905, 435 S.W.2d 796 (1968).

14-117-206. Prompt payment of expenses required.

If the expenses incurred in the creation of a district are not promptly paid by the county or counties pursuant to the order of the court, a proceeding in mandamus shall lie to compel the payment of the expenses.

History. Acts 1949, No. 329, § 5; 1957, No. 171, § 4; 1963, No. 37, § 1; A.S.A. 1947, § 21-905.

Case Notes

Cited: Allen v. Tri-County Watershed Imp. Dist., 245 Ark. 905, 435 S.W.2d 796 (1968).

14-117-207. Effect of establishment order — Appeal.

  1. The order of the chancery or circuit court establishing the district shall have all the force of a judgment.
  2. Any owner of real property within the district may appeal from the judgment within thirty (30) days after the judgment has been made, but if no appeal is taken within that time, the judgment shall be deemed conclusive and binding upon all the real property within the bounds of the district, and upon the owners thereof.
  3. Any owner of property in the proposed district may within a like time appeal from any order refusing to establish the district.

History. Acts 1949, No. 329, § 7; 1963, No. 110, § 2; A.S.A. 1947, § 21-907.

14-117-208. Changing district boundaries.

    1. The holder or holders of title representing in assessed value one-half (½) or more of any body of lands benefited or capable of being benefited by the works of a district may petition the chancery or circuit court which established the district to change the boundaries of the district to include that body of lands.
    2. Any owner of lands within the boundaries of a district may also petition the court to change the boundaries of the district to exclude such lands.
  1. The petition shall describe the boundaries of the parcel or tract of land owned by the petitioner or petitioners.
  2. The clerk shall give notice by publication for two (2) weeks in some newspaper published and having a general circulation in the county or counties within the district, calling upon all persons owning property within the district and, in the case of a proposed inclusion of lands, all persons owning property within the area proposed to be included to appear before the court on some day to be fixed by the court to show cause in favor of or against the inclusion or exclusion of lands of petitioners.
  3. If the court deems it to be to the best interest of the district that the lands be included or excluded from the district, it shall make an appropriate order upon its records changing the boundaries of the district.
  4. If the court finds that lands should be included in the district, the court shall make a finding and order as to an equitable amount to be paid by the petitioner or petitioners in lieu of the amount the petitioners or their grantors would have been required to pay to the district as assessments had the lands been included in the district at the time the district was originally formed. These amounts shall be divided into installments as the court may determine and shall be added to and be collected with any assessments subsequently levied against the assessment of benefits and shall be a part of the assessment of benefits.
  5. If the court finds that lands should be excluded from the district, the court shall make a finding and order as to the amount, if any, which shall be refunded by the district to any and all persons who have paid any assessment or assessments to the district.
  6. In making this determination, the court shall consider whether the parties have realized benefits from the organization and operation of the district, and the value of those benefits as determined by the court shall be deducted from the assessments paid in by the parties.
  7. No land excluded from the district shall be released from any obligation to pay any valid outstanding indebtedness of the district at the time of filing the petition for exclusion unless the holders of the indebtedness shall assent to the release of the lands from such obligation.
  8. All costs of the proceedings shall be assessed against the petitioners.
  9. Appeals from judgments of the court made pursuant to this section shall be taken by an aggrieved party in accordance with the provisions of § 14-117-207.

History. Acts 1949, No. 329, § 10; A.S.A. 1947, § 21-910.

Case Notes

Court Order.

The formation of a district was not subject to the objection that the decree did not conform to the order of the court because of the addition of lands to the district upon the petition of the owners thereof after the court directed the formation of the district in accordance with the engineering report. Allen v. Tri-County Watershed Imp. Dist., 245 Ark. 905, 435 S.W.2d 796 (1968).

14-117-209. Assessment of lands outside district — Boundary extension.

  1. If the board, upon petition of a majority in number as provided in §§ 14-117-202 and 14-117-204 — 14-117-206 for the establishment of districts, finds that other lands not embraced within the boundaries of the district will be affected by the proposed improvement, it shall assess the estimated benefits and damages to the lands and shall specially report to the chancery or circuit court the assessment which it has made on the lands beyond the boundaries of the district as already established.
  2. It shall then be the duty of the court to give notice by publication for two (2) weeks in a newspaper or newspapers published in the county or counties where the lands lie, describing the additional lands which have been assessed. The owners of real property so assessed shall be allowed thirty (30) days after the last publication of the notice to file with the clerk their protest against being included within the district.
  3. The court shall at its next session investigate the question whether the lands beyond the boundaries of the district so assessed by the board will in fact be benefited or damaged by the making of the improvement. From its finding in that regard and its order based thereon, either the property owners affected by the assessment or the board may within thirty (30) days file an appeal to the Supreme Court. If the finding and order is in favor of the inclusion of the lands, the limits of the district shall by order of the court be extended so as to embrace the lands.

History. Acts 1949, No. 329, § 11; A.S.A. 1947, § 21-911.

Subchapter 3 — Board of Commissioners

Cross References. Tort liability immunity, § 21-9-301 et seq.

Effective Dates. Acts 1957, No. 171, § 10: Mar. 6, 1957. Emergency clause provided: “It has been found and declared by the General Assembly that erosion, floodwater and sediment damages in the watershed of the rivers and streams of this state are causing loss of life and damage to property and constitute a menace to the welfare of the people of this state. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health, safety and welfare shall be in full force and effect from and after its passage and approval.”

Acts 1959, No. 131, § 6: Mar. 3, 1959. Emergency clause provided: “It is hereby determined and declared that the organization and operation of Watershed Improvement Districts are being unduly delayed; that except for the passage of this Act, said districts will have to incur unnecessary expenses in the organization and operation of said districts. An emergency is therefore declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and safety, it shall be in effect and full force from and after its passage and approval.”

14-117-301. Members.

  1. When the circuit court has established any improvement district, the court shall appoint five (5) owners of real property within the district to act as a board of commissioners for that district, which shall be its governing body.
    1. Each of these commissioners shall take the oath of office required by Arkansas Constitution, Article 19, § 20, and shall also swear that he or she will well and truly assess all benefits resulting from the improvement and all damages caused thereby.
    2. Any commissioner failing to take the oath within thirty (30) days after his or her appointment shall be deemed to have declined, and his or her place shall be filled by the court.
    1. All vacancies on the board shall be filled by the court.
    2. However, if the owners of a majority in assessed value of the real property in the district shall petition for the appointment of a particular person or persons as commissioner or commissioners, it shall be the duty of the court to appoint the person or persons so designated.
  2. The court shall remove any member of the board on the petition of owners of a majority in assessed value of the real property in the district.
  3. The commissioners provided for in this section shall receive as compensation the sum of no more than fifty dollars ($50.00) each day for attending meetings of the board, together with their necessary expenses.

History. Acts 1949, No. 329, §§ 8, 9; A.S.A. 1947, §§ 21-908, 21-909; Acts 2001, No. 460, § 1.

14-117-302. Organization.

The board shall select one (1) of their number as chairman, and a majority shall constitute a quorum.

History. Acts 1949, No. 329, § 8; A.S.A. 1947, § 21-908.

14-117-303. Agents and employees generally.

The board shall have the authority to hire all necessary agents and employees.

History. Acts 1949, No. 329, § 12; 1957, No. 171, § 5; 1959, No. 131, § 2; A.S.A. 1947, § 21-912.

14-117-304. Powers and duties.

  1. The board of commissioners shall have and may exercise any functions, powers, authority, rights, and duties that permit the accomplishments of the purposes for which such districts may be created, including the investigation and in case a plan for improvements is adopted, then the construction, maintenance, and operation of all necessary improvements, plants, works, and facilities; the acquisition by purchase, lease, gift, or condemnation of water rights and all other properties, lands, tenements, easements; and all other rights helpful in carrying out the purposes of the organization of the district.
  2. The board, its agents, and its employees shall have the right to enter upon any land within the district to make surveys and for other purposes.
  3. The board also may accept appropriations from the state and from the United States Government upon such terms and conditions as may be imposed by law, rule, or regulation to be used in the furtherance of the purposes for which the district was authorized.
  4. The board also may construct the necessary improvements and do any lawful act necessary to accomplish the purposes of the organization of the district.
  5. In order to protect the improvements of the district from damage, the board may make and prescribe necessary regulations. The board may make regulations to define and set the rate and location of any withdrawal of waters owned, acquired, or developed by the district and transferred by natural or man-made channels. The board may also make regulations governing the operation of the works of the district and the delivery of water owned or acquired by it to users and the performance of any of its other functions. The willful violation of these regulations shall constitute a misdemeanor under the laws of this state punishable by a fine not to exceed one thousand dollars ($1,000).

History. Acts 1949, No. 329, § 12; 1957, No. 171, § 5; 1959, No. 131, § 2; A.S.A. 1947, § 21-912; Acts 1989, No. 618, § 2; 2005, No. 1190, § 1; 2019, No. 315, § 1000.

Amendments. The 2005 amendment inserted “and from the United States government” in (c).

The 2019 amendment inserted “rule” in (c).

14-117-305. Eminent domain.

  1. The right and power of eminent domain heretofore conferred shall, as to watershed improvement districts organized under this chapter for the purpose of cooperation under Public Law 83-566, as amended, include the power to enter upon, take, and condemn private property, located either within or without the boundaries of the district, for the construction or erection of works or improvements necessary to conserve soil and water resources; prevent erosion, floodwater, and sediment damage; construct diversion systems, floodwater retarding structures, floodways, levees, desilting basins, channels, rights-of-way, including rights-of-way for improvements in upland areas upstream from district lands when such upstream areas are sources of floodwater or sediment which causes damage to district lands; or other lawful purposes. The term “or other lawful purposes,” as used in this section, shall include a watershed improvement plan in its entirety, or any integral part thereof, necessary to carrying out the plans of the district.
  2. Condemnation proceedings instituted under this section shall be conducted in the manner as is now provided by §§ 18-15-1001 — 18-15-1010.
  3. Legal title to all property so acquired shall vest in the district for the uses and purposes of the district.

History. Acts 1949, No. 329, § 12; 1957, No. 171, § 5; 1959, No. 131, § 2; A.S.A. 1947, § 21-912.

U.S. Code. Public Law 83-566, referred to in this section, is codified as 16 U.S.C. §§ 1001-1007.

Case Notes

Discretion.

By conferring on the district the power of eminent domain, the state left largely to the discretion of the district the location and area of the land to be taken; and one seeking to show that the taking has been arbitrary or excessive shoulders a heavy burden of proof in attempting to persuade the court to overrule the district's judgment. Gray v. Ouachita Creek Watershed Dist., 234 Ark. 181, 351 S.W.2d 142 (1961).

14-117-306. Control of construction — Advertisement for bids.

  1. The board shall have control of the construction of the improvements in their districts.
  2. It may advertise in local or state papers or papers published in other states for proposals for doing any work by contract. No work exceeding one thousand dollars ($1,000) shall be let without public advertisement. The board may accept or reject any proposals.

History. Acts 1949, No. 329, § 31; 1969, No. 152, § 1; A.S.A. 1947, § 21-931.

14-117-307. Construction — Cooperation with federal government.

  1. If the improvements are undertaken in cooperation with the United States, the board may enter into an agreement providing for the construction of the works of improvement and awarding of contracts therefor, to be by, and under the control and supervision of, the United States or any agency or instrumentality thereof.
  2. In that event, the advertisement, award, and carrying out of the contracts shall be in accordance with the provisions of law applicable to the federal agency.

History. Acts 1949, No. 329, § 31; 1969, No. 152, § 1; A.S.A. 1947, § 21-931.

14-117-308. Contractors and agents.

  1. All contractors shall be required to give bond for the faithful performance of the contracts awarded them, with good and sufficient securities, in an amount to be fixed by the board. The board shall not remit or excuse the penalty or forfeiture of the bond or the breaches thereof.
  2. The board may:
    1. Appoint all necessary agents for carrying on the work and fix their pay;
    2. Buy and sell all necessary material and implements as may be on hand, which may not be necessary for the completion of the improvement under way, or which may have been completed;
    3. Make all such contracts in the prosecution of the work as may best subserve the public interest.
  3. It shall be the duty of the board to have the amount of work done by any contractor estimated, from time to time as may be desirable, by the engineer selected by the board. The board shall draw its warrants in favor of the contractor for not more than ninety percent (90%) of the amount of work so reported, reserving the remainder until it has been ascertained that the work has been completed according to contract and is free from liens.

History. Acts 1949, No. 329, § 32; 1963, No. 110, § 5; A.S.A. 1947, § 21-932.

14-117-309. Disposal of unneeded land.

The board may determine, by resolution, that any real or personal property is no longer needed for the uses and purposes of the district and may thereafter sell, lease, or otherwise dispose of the property upon such terms and in such manner as appear to the board to be for the best interest of the district.

History. Acts 1949, No. 329, § 12; 1957, No. 171, § 5; 1959, No. 131, § 2; A.S.A. 1947, § 21-912.

Subchapter 4 — District Operation

Effective Dates. Acts 1957, No. 171, § 10: Mar. 6, 1957. Emergency clause provided: “It has been found and declared by the General Assembly that erosion, floodwater and sediment damages in the watershed of the rivers and streams of this state are causing loss of life and damage to property and constitute a menace to the welfare of the people of this state. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health, safety and welfare shall be in full force and effect from and after its passage and approval.”

Acts 1959, No. 131, § 6: Mar. 3, 1959. Emergency clause provided: “It is hereby determined and declared that the organization and operation of Watershed Improvement Districts are being unduly delayed; that except for the passage of this Act, said districts will have to incur unnecessary expenses in the organization and operation of said districts. An emergency is therefore declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and safety, it shall be in effect and full force from and after its passage and approval.”

Acts 1971, No. 156, § 3: approved Feb. 26, 1971. Emergency clause provided: “It is hereby found and declared that under existing law Watershed Improvement Districts are unable to carry out works of improvement on an area basis and for such reason the loss of Federal Aid in Watershed projects is threatened; that there is an urgent need for the protection afforded to lands and property of this State by participating in and carrying out such Federal Aid projects; that the enactment of this Bill will enable Watershed Improvement Districts to obtain the financial and other assistance available under Federal Legislation for preserving and protecting the State's land and water resources; therefore, an emergency is declared to exist, and this Act being necessary for the protection of the public health and safety of the people of this State, an emergency is therefore declared, and this Act shall take effect and be in force from and after its passage.”

Acts 1981, No. 425, § 54: Mar. 11, 1981. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

14-117-401. Plans — Construction areas.

  1. Plans prepared by “local organizations,” as defined by the Watershed Protection and Flood Prevention Act, with assistance from the United States Department of Agriculture, Soil Conservation Service, and plans prepared by the Department of the Army, Chief of Engineers, or any other federal or state agency may be adopted by the board of directors and when so adopted shall become the plan of improvement of the district and may be used in lieu of the engineer's survey and other requirements pertaining thereto mentioned in § 14-117-202, or as a supplement to the preliminary survey and report filed under the provisions of § 14-117-203. As soon as the board has adopted its plan for improvement of the district and has ascertained the cost thereof, it shall file the plan with the chancery or circuit clerk. The plans shall be accompanied by a map showing the location of the proposed improvements.
    1. If, in the preparation of the final work plan, it is determined by the board that the location and character of the works of improvement are so varied that it would be impracticable to let contracts on all of them in the same year, or if federal funds would not be available for all of them in the same year, the final work plan may be segregated or divided into one (1) or more units of construction constituting any work or group of works proposed in the final work plan which can be constructed and operated as a feasible unit alone and which can also be operated economically in conjunction with the other proposed works in the plan.
    2. The final work plan shall indicate the area included in each unit of construction and establish each such area as a separate construction area, set forth the percentage or portion of the total project costs allocated to each construction area, and delineate the lands in each construction area which, on the basis of preliminary estimates, will derive some benefit from the works of improvement to be installed therein.
    3. Each construction area shall be appropriately identified by name and number, such as “Construction Area No.….”.
    4. The determination of the board that the works of improvement proposed in the final work plan, even though divided into units of construction, do not lack unity or singleness of purpose and that the works in each unit of construction confer some benefit on the lands therein shall be final and conclusive.
    1. The board of commissioners shall have the authority to let contracts for carrying out the works of improvement on a construction area basis, to borrow money and issue notes or bonds, and to assess benefits and damages on a construction area basis.
    2. A separate assessment book shall be prepared and maintained for each construction area.
    3. The tax levied under § 14-117-413 to secure and repay notes or bonds shall be limited to and be a lien only on the lands located within each construction area found to be benefited by the works installed in the construction area, and that fact shall be indicated on the face of the notes or bonds.
    4. All published notices with respect to the assessment of benefits and damages and the borrowing of money and issuance of notes or bonds shall list the lands according to the construction area in which they are located.

History. Acts 1949, No. 329, § 13; 1957, No. 171, § 6; 1959, No. 131, § 3; 1963, No. 37, § 3; 1971, No. 156, § 1; A.S.A. 1947, § 21-913.

U.S. Code. The Watershed and Flood Prevention Act, referred to in this section, is codified as 16 U.S.C. §§ 1001-1007.

14-117-402. Contracts between district and United States.

  1. The board is authorized to:
    1. Cooperate with the United States or any agency or instrumentality thereof, hereinafter referred to as the United States, in the development of plans for the construction, operation, and maintenance of any facilities which the district is authorized to construct, operate, and maintain;
    2. Negotiate a contract with the United States or give such assurance as may be required by the United States for the construction, operation, and maintenance of such facilities or any part thereof by the United States.
      1. The contract or assurance may provide for the payment by the district to the United States of the agreed costs thereof in the form of construction charges, operation and maintenance charges, water rental, or service charges.
      2. The construction charges may include the cost of works of improvement for irrigation, drainage, flood control, prevention of seepage of irrigated lands, prevention of erosion, floodwater, and sediment damages, and the conservation, development, utilization, and disposal of water.
      3. The contract or assurance may provide for the repayment of the various charges by the district primarily or exclusively from revenue to be derived by the district from the sale under contract between the district and its water users from the district works, with payment to be made either in the form of agricultural products or cash. However, if sufficient revenue is not available from this source or if the district was organized primarily for purposes other than irrigation, then the board shall have authority to assess benefits against the property within the district for the purpose of repaying the obligations of the district under the terms of the contract with or assurances given to the United States.
      4. The contract or assurance may provide that the district shall furnish lands, easements, and rights-of-way and that property so acquired by the district may be conveyed to the United States insofar as the property may be required for the construction, operation, and maintenance of works thereon by the United States for the benefit of the district.
      5. The contract or assurance may provide that the district shall save and hold harmless the United States from any liability or damages due to or arising out of the construction, operation, and maintenance of any of the works.
  2. Until all moneys receivable by the United States from the district under the contract or assurance shall have been fully paid, the boundaries of the district shall not be altered without the consent of the United States.
  3. Any indebtedness to the United States shall be and remain a prior charge against the lands of the district. It shall be paid by sale or rental of water or service under contract with the landowners of the district, by the annual levy of assessments by the commissioners against the district lands or by advance toll charge, all as herein provided, and the obligation to the United States shall so remain prior to any subsequent obligation of the district.
    1. After the terms of the contract or assurance have been negotiated with the United States, the board shall petition the chancery or circuit court for the approval, if necessary, of a bond issue or other evidence of indebtedness by the district for the purpose of paying for preliminary expenses and the cost of acquisition of lands, easements, and rights-of-way which may be needed in order to carry out the plan of improvement.
    2. The chancery or circuit clerk shall thereupon give notice by publication for two (2) weeks in some newspaper published and having a general circulation in the county or counties within the district, calling upon all persons owning property within the district to appear before the court upon some date not less than thirty (30) days nor more than ninety (90) days from the date of the last publication, to be fixed by the court, to show cause in favor of or against the issuance of bonds or other evidence of indebtedness.
    3. If upon final hearing the court deems it to be in the best interest of the owners of real property within the district, the court shall enter an order authorizing the issuance of bonds or other evidence of indebtedness. However, if it is determined by the court that a majority in number of the holders of title to the lands within the district and the owners of a majority in value of the lands therein, as shown by the last assessment, oppose the issuance of bonds or other evidence of indebtedness, the court shall enter a decree disapproving the issuance of bonds or other evidence of indebtedness.
    4. The order of the court shall have the force of a judgment, and any aggrieved party may appeal from the order as provided in § 14-117-207.

History. Acts 1949, No. 329, § 14; 1957, No. 171, § 7; 1963, No. 37, § 4; 1963, No. 110, § 3; A.S.A. 1947, § 21-914.

Case Notes

Majority of Landowners.

Where petitions against ratification of contract under this section were signed by husband alone, the fact that their land was held by entirety estate with wife did not mean that wives could be counted to establish that majority of landowners were against ratification, as the signature of the wife was necessary on the petition and later oral testimony that wife was against contract was insufficient for inclusion of wife among number of landowners against ratification. Gardner v. Bullard, 241 Ark. 75, 406 S.W.2d 368 (1966).

14-117-403. Assessment of benefits and damages.

    1. As soon as plans for the improvement work have been completed or a contract has been entered into with the United States, the board shall proceed to assess the lands within the district on the basis of benefits accruing from works of improvement for irrigation, drainage, flood control, prevention of seepage of irrigated lands, prevention of erosion, floodwater, and sediment damages, and the conservation, development, utilization, and disposal of water.
    2. A separate book shall be maintained with respect to assessments of benefits on the basis of benefits derived from works of improvement for irrigation, drainage, flood control, prevention of seepage of irrigated lands, prevention of erosion, floodwater, and sediment damages, and the conservation, development, utilization, and disposal of water.
    3. The board shall cause to be inscribed in the book the description of each tract of land and shall assess the value of the benefits to accrue to each tract by reason of the improvements and enter the assessment of benefits opposite the description, together with an estimate of what the landowner will probably have to pay on the assessment.
    4. Their assessment shall embrace not merely the land but all public and corporate roads, railroads, tramroads, and other improvements on lands that will be benefited by the district.
    5. They shall place opposite each tract of land the name of the owner, as shown by the last county assessment, but a mistake in the name shall not vitiate the assessment. They may correct evident errors which occur in the county assessment list.
  1. If any landowner, any private corporation, or any other drainage district has made any improvements or works that can be profitably used as a part of the general system, the value of those improvements or works shall be assessed by the board, shall separately appear upon their assessment, and shall be paid for by the district, either in cash or by reduction of assessments.
  2. The board shall also assess all damages that will accrue to any landowner by reason of the proposed improvement, including all injury to lands taken or damaged. Where they return no such assessment of damages as to any tract of land, it shall be deemed a finding by them that no damage will be sustained.

History. Acts 1949, No. 329, § 15; 1957, No. 171, § 8; A.S.A. 1947, § 21-915.

14-117-404. Filing of assessment.

  1. When their assessment is completed, the board shall subscribe an original and one (1) copy of the assessment and deposit the original with the circuit or chancery clerk, where it shall be kept and preserved as a public record.
  2. The copy shall be certified by the clerk and returned to the board to be preserved with the records of the district.

History. Acts 1949, No. 329, § 16; A.S.A. 1947, § 21-916.

14-117-405. Notice and hearing on assessment — Appeal.

  1. Upon the filing of the assessment, the clerk shall give notice of that fact by publication for two (2) weeks in some weekly newspaper issued in each of the counties in which the lands of the district may lie.
  2. The notice shall give a description of the lands assessed and shall state that the owners of the lands, if they desire, may appear before the court on a certain day, naming the day, and present complaints, if they have any, against the assessment of any lands in the district.
  3. The day so named shall be more than ten (10) days after the last publication of the notice.
  4. If no complaint is made as herein provided, the assessment as deposited with the clerk shall be conclusive.
  5. Any owner of real property within the district who perceives himself to be aggrieved by the assessment of benefits or damages or deems that the assessment of any land in the district is inadequate shall present his complaint to the court on the day named in the notice.
  6. The court shall consider the complaint and enter its finding thereon, either confirming the assessment or increasing or diminishing the assessment.
  7. Its findings shall have the force and effect of a judgment, from which an appeal may be taken within thirty (30) days, either by the property owners or by the board of the district.

History. Acts 1949, No. 329, § 16; A.S.A. 1947, § 21-916.

14-117-406. Acquiescence in assessment of damages — Demand for assessment — Condemnation.

Any property owner may accept the assessment of damages in his favor made by the board, or acquiesce in their failure to assess damages in his favor, and shall be construed to have done so unless he gives to the board, within thirty (30) days after the assessment is filed, notice in writing that he demands an assessment of his damages by a jury. In that event, the board shall institute an action to condemn the lands that must be taken or damaged in the making of the improvement, which action shall be in accordance with the proceedings provided in § 14-117-305.

History. Acts 1949, No. 329, § 17; A.S.A. 1947, § 21-917.

Case Notes

Attorney's Fees, Etc.

A landowner may recover attorney's fees, court costs, and other expenses incurred by him in defense of condemnation action, when a condemning agency fails to act in good faith in instituting and later abandoning condemnation proceedings. Des Arc Bayou Watershed Imp. Dist. v. Finch, 271 Ark. 603, 609 S.W.2d 70 (1980).

14-117-407. Alteration of plans.

The board may at any time alter the plans for improvement, but before constructing the work according to the changed plans, the changed plans shall be filed with the circuit or chancery clerk and notice of the filing shall be given by publication for one (1) insertion in some newspaper issued and having a bona fide circulation in each of the counties in which there are lands within the district.

History. Acts 1949, No. 329, § 18; A.S.A. 1947, § 21-918.

14-117-408. Reassessment of benefits — Appeals.

    1. If, by reason of a change of plans pursuant to § 14-117-407, either the board or any property owners deem that the assessment on any property has become inequitable, they may petition the court, which may thereupon refer the petition to the board. The board shall then reassess the property mentioned in the petition, increasing the assessment if greater benefits will be received and allowing damages if less benefits will be received or if damages will be sustained.
    2. In no event shall a reduction of assessments be made after the assessment of benefits has been confirmed by the court as provided in § 14-117-405, but any reduction in benefits shall be paid for as damages. The claim for the damages shall be secondary and subordinate to the rights of the holders of bonds or other obligations or evidence of indebtedness which have heretofore been issued.
    3. From the action of the board in the matter, the property owners shall have the same right of appeal that is herein provided for in the case of the original assessment.
    1. The board shall have the power to make a reassessment of the benefits not more often than once a year. The reassessment shall be made, advertised, and equalized as is provided for the original assessment of benefits.
    2. All appeals of landowners objecting to the reassessment must be taken and perfected within thirty (30) days from the time of the action of the chancery or circuit court thereon.
    3. If any obligation of the district shall be outstanding at the time of the reassessment, the liability thereon of real property against which assessments of benefits have been confirmed shall be no less than the liability of the property by reason of the original assessment.

History. Acts 1949, No. 329, §§ 18, 19; A.S.A. 1947, §§ 21-918, 21-919.

14-117-409. Additional work or improvements — Reassessment — Appeals.

  1. After the work contemplated by the original plans has been completed, the board may file with the circuit or chancery clerk of the county where the district was first organized plans for additional work or improvements in the district.
  2. The clerk shall give notice by publication for two (2) weeks in some newspaper or newspapers published and having a general circulation in the county or counties within the district, calling upon all persons owning property within the district to appear before the court on some date not less than thirty (30) days nor more than ninety (90) days from the last publication, to be fixed by the court, to show cause in favor of or against the proposal.
  3. If, upon final hearing, the court deems it to the best interest of the owners of real property within the district, the court shall enter an order ratifying and approving the additional work or improvements. However, if it is determined by the court that a majority in number of the holders of title to the lands within the district and the owners of a majority in value of the lands therein, as shown by the last assessment, oppose the proposal for additional work or improvement, the court shall enter a decree disapproving the proposed additional work or improvements.
  4. If the proposal is approved by the order of the court, the board may proceed with the assessment of benefits in accordance with the provisions of this chapter.
  5. From the action of the court any party aggrieved, including the commissioners of the district, may take an appeal, but the appeal must be taken and perfected within thirty (30) days.
  6. The proceedings in the chancery or circuit court shall be deemed matters of public interest and heard at the earliest possible moment.
  7. When any such reassessment of benefits has been made and stands confirmed, it shall be the assessment of benefits until another reassessment has been made as provided in this chapter, and levies of the taxes on the reassessed benefits shall be made and collected in the same manner as levies on the original assessment of benefits and shall be a first lien on the lands of the district from the time they are made.

History. Acts 1949, No. 329, §§ 20, 21; A.S.A. 1947, §§ 21-920, 21-921.

14-117-410. Inclusion of bond interest with tax — Exception.

The amount of interest which will accrue on bonds issued by the districts shall be included and added to the tax, but the interest to accrue on account of the issuing of the bonds shall not be construed as a part of the cost of construction in determining whether or not the expense and the costs of making the improvements are or are not equal to or in excess of the benefits assessed.

History. Acts 1949, No. 329, § 29; 1963, No. 110, § 4; A.S.A. 1947, § 21-922.

14-117-411. Payment of assessment.

  1. When assessments of benefits are made, the landowners shall have the privilege of paying the assessments in full within thirty (30) days after the assessment becomes final.
      1. However, all such assessments shall be made payable in installments so that not more than ten percent (10%) shall be collectible in any one (1) year against the wishes of the landowner.
      2. In the event that any landowner avails himself or herself of this indulgence, the deferred installments of the assessed benefits shall bear interest at the rate of six percent (6%) per annum and shall be payable only in installments as levied.
    1. Installment payments of less than ten dollars ($10.00) per acre per year are not subject to the ten-percent limitation in subdivision (b)(1)(A) of this section unless a majority of the board of commissioners agrees that the ten-percent limitation should apply.
  2. If any landowner shall pay in full the assessment of benefits against his or her land as provided in this section, the land shall not be further liable by reason of the assessment or any reassessment of the land except a reassessment because of changed plans as provided in § 14-117-408. It shall then be liable only to the extent of the increase in assessment, if any, because of the greater benefit thereby received. However, in case of any such additional assessment for greater benefit, any landowner who shall have paid his or her previous assessment in full shall have the privilege of paying in full the increase in assessment in the manner provided in this section.

History. Acts 1949, No. 329, § 22; 1963, No. 110, § 4; A.S.A. 1947, § 21-922; Acts 2005, No. 1190, § 2.

Amendments. The 2005 amendment redesignated former (b) as present (b)(1)(A) and (B); and added (b)(2).

14-117-412. Levy of assessment — Interest.

The levy of the assessment may be made by way of proportional amounts of the total assessed benefits. Interest need not be calculated until it is necessary to do so to avoid exceeding the total amount of benefits and interest, or the interest may be first collected.

History. Acts 1949, No. 329, § 22; 1963, No. 110, § 4; A.S.A. 1947, § 21-922.

14-117-413. Levy of tax — Preliminary expenses.

  1. At the same time that the assessment of benefits is filed or at any subsequent time when called upon by the board of directors, the circuit court shall enter upon its records an order, which shall have all the force of a judgment providing that there shall be assessed upon the real property of the district a tax sufficient to pay the estimated cost of the improvement, with ten percent (10%) added for unforeseen contingencies.
    1. The tax is to be paid by the real property in the district in proportion to the amount of the assessment of benefits on the real property and shall be paid in annual installments not to exceed ten percent (10%) for any one (1) year, as provided in the order.
    2. The circuit court may order that any tax of less than ten dollars ($10.00) per acre per year to be paid by the real property in the improvement district in proportion to the amount of the assessment of benefits is to be paid in one (1) year.
  2. The tax so levied shall be a lien upon all the real property in the district from the time that the lien is levied by the circuit court, shall be entitled to preference over all demands, executions, encumbrances, or liens whenever created, and shall continue until the assessment, with penalty and costs that may accrue on the assessment, shall have been paid.
  3. The remedy against the assessment of taxes shall be by appeal. The appeal must be taken within twenty (20) days from the date of the order by the circuit court. On the appeal the presumption shall be in favor of the legality of the tax.
  4. Any owner of real property within the district by mandamus may by the circuit court compel compliance with the terms of this section.
  5. If the board deems it not to the advantage of the district to proceed immediately with the construction of the improvement upon the filing and confirmation of the assessment of benefits, it may report to the circuit court the rate of taxation necessary to be levied to pay the preliminary expenses of the district. Thereupon, it shall be the duty of the circuit court to make a levy of taxes upon the real property in the district sufficient to pay the preliminary expenses, with ten percent (10%) added for unforeseen contingencies. This tax shall be extended upon the tax books of the county and collected along with other taxes in the same manner as the taxes levied for construction purposes, as provided in this chapter.

History. Acts 1949, No. 329, § 23; A.S.A. 1947, § 21-923; Acts 2005, No. 1190, § 3.

Amendments. The 2005 amendment redesignated former (b) as present (b)(1); and added (b)(2).

14-117-414. Borrowing money and issuing bonds.

  1. The board may petition the chancery or circuit court for authority to borrow money or issue negotiable bonds, and the court shall cause a public hearing to be held with respect to the petition in accordance with the same procedure for the issuance of bonds in connection with contracts with the United States as set forth in § 14-117-402.
  2. The petition of the board shall state whether it is desired that the bonds shall be made payable from the proceeds of revenues derived from the sale or delivery of water by the district or shall be made payable from the proceeds of assessments against the real property within the district. The order of the court authorizing the issuance of the bonds shall specify which of the sources shall be liable for the payments of the principal of and interest on the bonds.
  3. If the board is authorized to do so upon the presentation of the petition to the court, and after compliance with the provisions of § 14-117-402, it may borrow money at a rate of interest determined by the board from any agency of the United States or any other available lending source, may issue promissory notes, negotiable bonds, or such other evidence of indebtedness as required by the lender therefor, signed by the members of the board, and may pledge or assign all assessments and revenues for the repayment thereof.
  4. If promissory notes are issued, the board is authorized to execute mortgages on real or personal property owned by the district or assign or pledge such revenues and assessments as may be required by the lender as security for the repayment of the loan. No promissory notes issued under the terms of this chapter shall run for more than fifty (50) years.
  5. No bonds issued under the terms of this chapter shall run for more than fifty (50) years. All issues of bonds may be divided so that a portion of them may mature each year as the assessments are collected, or they may all be made payable at the same time, with proper provision for a sinking fund.
  6. In all other respects, the board shall determine the form and denominations of the bonds.
  7. The board may sell, exchange, or hypothecate the bonds from time to time and at prices which best serve the interests of the district, provided that any sale or exchange of the bonds at less than ninety percent (90%) of their par value shall first have the approval of the chancery or circuit court.

History. Acts 1949, No. 329, § 24; 1959, No. 131, § 4; 1963, No. 37, § 5; 1981, No. 425, § 37; A.S.A. 1947, § 21-924.

14-117-415. Court order as to bonds.

  1. After issuing any bonds and before their sale, exchange, or hypothecation, the board shall petition the chancery or circuit court for an order approving the legality and regularity of all proceedings leading up to the issuance of the bonds. This order shall have the force of a judgment and shall be subject to appeal to the Supreme Court within thirty (30) days by the board or by any owner of real property against which assessments of benefits by the district have been confirmed.
  2. If the order of the court shall specify that the bonds shall be made payable from revenues from the sale or delivery of water, the order shall declare specifically the revenues or portion thereof that shall be pledged to secure the payment of the principal of and interest upon the bonds. The order of the court shall constitute a sufficient pledge to secure all payments of all bonds that may be issued in pursuance thereof, and all revenue so designated shall be applied first to the payment of the bond requirements. No tax shall be levied by or on behalf of the district against any real property within the district to pay any part of the principal or interest of such bonds.
  3. If the order of the court authorizing the issuance of bonds shall specify that they shall be made payable from the proceeds of assessments, then the order shall provide for the levying of a tax against the real property within the district in proportion to the assessment of benefits for the improvement, in the same manner and with the same effect as provided in § 14-117-413.
  4. If the order of the court authorizing the borrowing of money and the issuance of promissory notes shall specify that they shall be payable from the proceeds of assessments, then the order shall provide for the levying of a tax against the real property within the district in proportion to the assessment of benefits for the improvements, in the same manner and with the same effect as provided in § 14-117-413. The indebtedness arising from the issuance of the promissory notes shall be and remain a prior charge against the lands of the district, as provided in § 14-117-402.

History. Acts 1949, No. 329, § 24; 1959, No. 131, § 4; 1963, No. 37, § 5; 1981, No. 425, § 37; A.S.A. 1947, § 21-924.

14-117-416. Refunding bonds.

Refunding bonds may be issued and may be sold, exchanged, or hypothecated under the procedure provided in §§ 14-117-414 and 14-117-415.

History. Acts 1949, No. 329, § 24; 1959, No. 131, § 4; 1963, No. 37, § 5; 1981, No. 425, § 37; A.S.A. 1947, § 21-924.

14-117-417. Security for bonds — Levy and collection of tax.

All bonds issued under the terms of this chapter that are made payable from the proceeds of assessments shall be secured by a lien on all lands in the district unless the district shall be able to sell bonds payable out of water revenue only. The board shall see to it that a tax is levied annually and collected under the provisions of this chapter, so long as it may be necessary to pay any bond issued or obligation contracted under its authority. The making of the assessment or levy and collection may be enforced by mandamus.

History. Acts 1949, No. 329, § 25; A.S.A. 1947, § 21-925.

14-117-418. Default in bond payment.

  1. If any bond, or interest coupon on any bond, issued by the board is not paid within thirty (30) days after its maturity, it shall be the duty of the circuit or chancery court of the proper county, on the application of any holder of a bond or interest coupon so overdue, to order the collection of the taxes as provided in § 14-117-417. At its discretion, the court may appoint a receiver therefor.
  2. The proceeds of the taxes and collections shall be applied, after payment of costs, first to overdue interest, and then to payment pro rata of all bonds issued by the board which are then due and payable.
  3. The board or receiver may be directed by suit to foreclose the lien of the taxes on the lands.
  4. Suits so brought by a receiver shall be conducted in all matters as suits by the board, as provided in §§ 14-117-423 — 14-117-426, and with like effect.
  5. The decrees and deeds herein shall have the same presumptions in their favor.
  6. However, when all such sums have been paid, the receiver shall be discharged, and the affairs of the district shall be conducted by the board as provided in this subchapter.

History. Acts 1949, No. 329, § 25; A.S.A. 1947, § 21-925.

14-117-419. Records and reports.

  1. The board shall also keep the original itemized bills and accounts of all financial transactions and all warrants which have been paid. Each warrant shall state on its face the service for which it was rendered, the person to whom paid, and the amount of the warrant.
  2. On or before March 1 of each year, the board shall file with the circuit or chancery clerk a sworn statement of the financial condition of the district, to cover the year ending on December 31 preceding. The report shall contain, among other things:
    1. A statement of the cash on hand as of January 1 of the year for which the report is made, together with all other assets of the district;
    2. The total receipts for the preceding year;
    3. The disbursements for administration, construction, and maintenance of bonds redeemed, and for interest paid on outstanding bonds; and
    4. Interest due on outstanding bonds, together with all other indebtedness of the district.
  3. In districts with revenues, from whatever source derived, in excess of five thousand dollars ($5,000) per year, the books, records, and last annual report of the district shall be examined at least one (1) time a year by a certified public accountant. The accountant shall file a report of the examination with the circuit or chancery clerk within thirty (30) days after completing the examination.
  4. The accountant shall recommend the form and methods for keeping books and records and for making the reports of the district.
  5. The expense of the examination shall be paid as a part of the expenses of the district.
  6. All accounts of the district shall be open for inspection by any person lawfully entitled to inspect them.
  7. The failure of any of the officials named in this section to perform the duties and acts required herein shall be a misdemeanor punishable by a fine of not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000) for each offense. For the making of a false or fraudulent report, the person so making shall be guilty of perjury and punished accordingly.

History. Acts 1949, No. 329, § 26; A.S.A. 1947, § 21-926; Acts 1987, No. 472, § 2.

Publisher's Notes. Acts 1987, No. 472, § 1, provided that there are many small levee and drainage districts and improvement project areas of conservation districts with revenues of $5,000 per year or less; under current law, the costs of formal audits have become a burden to the small districts and should be removed.

14-117-420. Taxation for operation, maintenance, and service of district properties.

  1. The districts shall have authority to levy and collect a tax to secure funds to maintain, repair, and operate all plants, properties, and improvements of the district and to give and maintain proper service for the purposes of its organization.
      1. The board of commissioners may apply to the county court to levy an additional tax.
      2. The tax may be levied as a flat tax per acre.
      1. Upon the filing of the petition with the county court, notice shall be published by the county clerk for two (2) weeks in a newspaper published in each of the counties in which the district has land.
      2. Any property owner opposing the additional levy may appear at the next regular, special, or adjourned term of the county court or adjourned day of the court and state his or her objections to the levy.
      3. An appeal from the findings of the county court may be taken by either the property owners or the board.

History. Acts 1949, No. 329, § 27; A.S.A. 1947, § 21-927; Acts 2005, No. 1019, § 1.

Amendments. The 2005 amendment added (b).

14-117-421. Extension of taxes on books — Collection.

  1. The amount of the taxes provided for in this chapter shall be annually extended upon the tax books of the county and collected by the collector of the county along with the other taxes, and for his services in making the collection the collector shall receive a commission as provided by law.
  2. Collections shall be paid over to the board of the respective district by the collector at or before the time that he is now required to make settlement with the county treasurer for general taxes.

History. Acts 1949, No. 329, § 28; A.S.A. 1947, § 21-928.

14-117-422. Time for payment of taxes — Installments.

  1. All taxes levied under the terms of this chapter shall be deemed to be due and payable at any time from the third Monday in February to and including October 1 and shall be payable, at the option of the taxpayer, in installments as follows:
    1. The first installment of one-fourth (¼) of the amount of the taxes shall be due and payable on and from the third Monday in February to and including the third Monday in April;
    2. The second installment of one-fourth (¼) shall be due and payable on and from the third Monday in April to and including the third Monday in July; and
    3. The third installment of one-half (½) shall be due and payable on and from the third Monday in July to and including October 1.
  2. All such taxes remaining unpaid after the periods above specified shall be considered as delinquent.

History. Acts 1949, No. 329, § 29; A.S.A. 1947, § 21-929.

14-117-423. Delinquencies on tax payment.

  1. If any taxes levied in pursuance of this chapter are not paid at maturity, the collector shall not embrace the taxes in the taxes for which he shall sell the lands, but he shall add to the amount of the tax a penalty of ten percent (10%).
  2. The board shall enforce the collection by chancery proceedings in a court of the county in which the lands are situated having chancery jurisdiction.
  3. The court shall give judgment against the lands for the amount of the taxes and the penalty of ten percent (10%), plus interest on the delinquent taxes and penalty at the rate of six percent (6%) per annum, and all costs of the proceedings.
  4. Such judgments shall provide for the sale of the delinquent lands for cash by a commissioner of the court, after advertisement as set out in § 14-117-425.
  5. The proceedings and judgment shall be in the nature of proceedings in rem, and it shall be immaterial that the ownership of the lands is incorrectly alleged in the proceedings.
  6. The judgment shall be enforced wholly against the lands and not against any other property or estate of the defendants.
  7. All or any part of the delinquent lands for each of the counties may be included in one (1) suit for each county, instituted for the collection of the delinquent taxes, as aforesaid.

History. Acts 1949, No. 329, § 29; A.S.A. 1947, § 21-929.

14-117-424. Notice of pendency of suit.

Notice of the pendency of the suit shall be given by publication weekly for four (4) consecutive weeks before judgment is entered on the sale of the lands in some newspaper published in the county where the suit may be pending, which public notice may be in the following terms:

“Board of Commissioners District vs. Delinquent Lands. All persons having or claiming an interest in any of the following described lands, are hereby notified that suit is pending in the chancery court of County, Arkansas, to enforce the collection of certain taxes on the following list of lands, each supposed owner having been set opposite his or her or its lands, together with the amounts severally due from each to wit: (Then shall follow a list of supposed owners, with a descriptive list of the delinquent lands, and amounts due thereon respectively as aforesaid), and the public notice may conclude in the following form: All persons and corporations interested in the lands are notified that they are required by law to appear within four (4) weeks and make defense to the suit, or the same will be taken for confessed and final judgment will be entered directing the sale of the lands for the purpose of collecting the taxes, together with the payment of interest, penalty and cost allowed by law. Clerk of the Court.”

Click to view form.

History. Acts 1949, No. 329, § 29; A.S.A. 1947, § 21-929.

14-117-425. Trial generally — Sale of land to bidders.

  1. The suit shall stand for trial at the first term of court after the complaint may be filed if the four (4) weeks shall expire either before the first day of the term or during the term of court to which the suit is brought unless a continuance is granted, for good cause shown, within the discretion of the court. The continuance for good cause shown may be granted as to a part of the lands or defendants without affecting the duty of the court to dispose finally of the others as to whom no continuance may be granted.
  2. In all cases where notice has been properly given as provided in § 14-117-424 and no answer has been filed or, if filed, the cause has been decided for the plaintiff, the court, by its decree, shall grant the relief prayed for in the complaint and shall direct the commissioner to sell the lands described in the complaint at the courthouse door of the county wherein the decree is entered, at public outcry, to the highest and best bidder for cash in hand, after having first advertised the sale weekly for two (2) weeks, consecutively, in some newspaper published in the county, if there is one, and, if there is no newspaper, then that the advertisement be published in some newspaper in an adjoining county. The advertisement may include all lands described in the decree.
  3. If all the lands are not sold on the day as advertised, the sale shall continue from day to day until completed.
  4. The commissioner shall by proper deeds convey to the purchaser the lands so sold. The title to the lands shall thereupon become vested in the purchaser as against all others whomsoever, saving to infants and to insane persons having no guardian or curators, the right they now have by law to appear and except to the proceedings within three (3) years after their disabilities are removed.
  5. In all suits brought under this section and §§ 14-117-423 and 14-117-424, a reasonable attorney's fee shall be taxed in favor of the attorney for the plaintiff, which fee shall be added to the amount of the cost.
  6. In case the board shall fail to commence suit within sixty (60) days after the taxes become delinquent, the holder of any bond or other evidence of indebtedness issued by the district shall have the right to bring suit for the collection of the delinquent assessments. The proceedings in the suit brought by the bondholder or other creditor shall in all respects be governed by the provisions applicable to suits by the board.

History. Acts 1949, No. 329, § 29; A.S.A. 1947, § 21-929.

14-117-426. Trial procedure — Sale of land to district.

  1. Suits for collection of taxes shall be conducted in the name of the district and in accordance with the practice and proceedings of chancery or circuit courts in this state, except as herein otherwise provided, and neither attorneys ad litem nor guardians ad litem, nor any of the provisions of § 16-65-403 [repealed] shall be required.
  2. The suits may be disposed of on oral testimony, as in ordinary suits at law.
  3. This law shall be liberally construed to give to this assessment and these tax lists the effect of bona fide mortgage for a valuable consideration, and a first lien upon the lands, as against all persons having an interest therein.
  4. In such suits, it shall be sufficient to allege generally and briefly the organization of the district and the nonpayment of the taxes, setting forth the description of the lands proceeded against, and the amount chargeable to each tract, with prayer for foreclosure.
  5. However, no informality or irregularity in holding any of the meetings provided for herein, or valuation, assessment of the lands, in the name of the owners, or the number of acres therein shall be a valid defense to the action.
  6. In any case where the lands are offered for sale by the commissioner, as provided by this chapter, and the sum of the tax due, together with interest, cost, and penalty, is not bid for the lands, the commissioner shall:
    1. Bid the lands off in the name of the district, bidding therefor the whole amount due as aforesaid;
    2. Execute his deed therefor, as in other cases under this chapter, conveying the land to the district. The deeds, when duly executed in conformity to the provisions of this chapter and recorded, shall be received as evidence in all cases, showing an indefeasible title in the purchasers, unassailable in either law or equity.

History. Acts 1949, No. 329, § 30; A.S.A. 1947, § 21-930.

14-117-427. Right of redemption.

At any time within two (2) years after the rendition of the final decree of the chancery or circuit court herein provided for, the owner of the lands may file his petition in the court rendering the decree, alleging the payment of taxes on the lands for the year for which they were sold. Upon the establishment of that fact, the court shall vacate and set aside that decree and provide that any landowner shall have the right to redeem any and all lands sold at that sale within two (2) years thereafter, which shall run from the day when the lands are offered for sale and not from the day the sale is confirmed.

History. Acts 1949, No. 329, § 30; A.S.A. 1947, § 21-930.

Chapter 118 Improvement Districts for Rivers

Subchapter 1 — General Provisions

Cross References. Relocation assistance payments, § 22-9-701 et seq.

Tort liability immunity, § 21-9-301 et seq.

Preambles. The preamble of the Acts of 1949, No. 328, read:

“Whereas, The United States under and by virtue of the several Acts of Congress has authorized and may by similar Acts hereafter authorize the Department of the Army and the Chief of Engineers of the United States Army or other Federal agencies to design plans and to execute projects for the improvement of Rivers and their respective Tributaries of this State; and,

“Whereas, the Congress of the United States has adopted a policy in adopting and authorizing such projects that no Federal funds can be expended upon such project until some local State Agency can execute to the United States a Contract of Assurance that the local interest will, (a) furnish without cost to the United States all lands, easements and rights-of-way required for the construction of said projects, (b) to maintain all works after completion, and (c) to indemnify and save harmless the United States from any and all liability for damages growing out of the construction of said project, and other assurances and agreements; and,

“Whereas, no work can be done on some of the projects which have been adopted and authorized by the Congress of the United States and no projects hereafter adopted and authorized by Congress for the reason that there is no law in this State under which an individual improvement district can conveniently be organized over the large territory required; and,

“Whereas, in many instances now existing and in many instances which will exist in the future, the State and communities in the affected areas to be benefited by said improvement have been deprived and will continue to be deprived of receiving and participating in funds appropriated by Congress to carry into execution such adopted and approved projects, and that it is to the interest of the State that some provision be made for the organization and creation of such improvement districts, with full power and authority to give such assurances to the United States, and with full power and authority to comply with the terms and provisions of said Acts of Congress….”

Effective Dates. Acts 1949, No. 328, § 14: Mar. 21, 1949.

14-118-101. Construction.

This subchapter shall be liberally construed to effectuate its purpose.

History. Acts 1949, No. 328, § 13; A.S.A. 1947, § 21-1013.

14-118-102. Subchapter cumulative.

This subchapter shall be cumulative and shall not repeal any existing law, nor shall it be deemed to take from any levee, drainage, or other improvement district any power or right the district now has to enter into and perform any agreement or contract with the United States Army Corps of Engineers or other federal agency.

History. Acts 1949, No. 328, § 12; A.S.A. 1947, § 21-1012.

14-118-103. Petition to establish district.

  1. When the Congress of the United States has enacted a law adopting and authorizing a project for the improvement of any of the rivers, tributaries, or streams of or bordering on this state, ten (10) or more owners of real property within the area embraced within the adopted and authorized project shall petition the circuit court to establish an improvement district to embrace the property within the area, describing generally the region which is intended to be embraced within the district. A concise statement of the authorized and adopted project, a copy of the Act of Congress, together with the plans and estimated cost to be borne by the district as made by the United States Army Corps of Engineers or other agency of the federal government, shall be attached and made a part of the petition. A concise statement showing the necessity of forming and creating the proposed improvement district, and a concise statement as to the benefits to be received by the proposed adopted and authorized project shall be included.
  2. Upon the filing of the petition, it shall be presented to the judge of the circuit court, either in term or vacation, and the court shall make an order directing the clerk of the circuit court in which the petition is filed to give notice by publication for two (2) weeks in some newspaper or newspapers published and having a general circulation in each of the counties embraced within the proposed boundaries of the district, calling upon all persons owning property therein to appear before the court on some day to be fixed by the court to show cause in favor of or against the establishment of the district.
  3. At the time named in the notice, the circuit court shall meet and hear all property owners within the proposed district who wish to appear and advocate or resist the establishment of the district. If the court finds and deems it to be the best interest of the owners of real property within the district that the proposed district shall become an improvement district, under the terms of this subchapter, it shall make an order upon its records establishing the proposed district as an improvement district, subject to all of the terms and provisions of this subchapter.

History. Acts 1949, No. 328, § 1; A.S.A. 1947, § 21-1001.

Case Notes

Notice and Hearing.

The requirement of notice by publication under this section does not violate the due process clause of U.S. Const. Amend. 14 where it is not reasonably possible or practical to give a more adequate warning; accordingly, where the number of landowners in a proposed improvement district is likely to be in the thousands, notice by publication instead of by certified mail does not violate due process. Cypress Creek Farms v. L'Anguille Improv. Dist. No. 1, 274 Ark. 518, 626 S.W.2d 357 (1982).

The hearing to establish the improvement district under this section is the only opportunity a landowner has to contest the necessity of the inclusion of his land in the district, and the land included will then be subject to having benefits or damages assessed under § 14-118-108; therefore, substantial property rights of the landowner are involved at the hearing to establish the district, and before such right can be affected, he is entitled to notice and opportunity for hearing appropriate to the nature of the case. Cypress Creek Farms v. L'Anguille Improv. Dist. No. 1, 274 Ark. 518, 626 S.W.2d 357 (1982).

14-118-104. Petition — Lands in more than one county.

  1. If lands in more than one (1) county are embraced within the adopted and authorized project and within the proposed district, the petition shall be filed in the circuit court in the judicial district in which the largest portion of the lands are situated and within a county in which some part or portion of lands in the proposed district are situated. All proceedings shall be had in the circuit court.
  2. All improvement districts created under this subchapter shall receive names selected and designated by the circuit court.
  3. No petition filed under the provisions of this subchapter shall include lands in any other county except the one in which the petition is filed, unless there is attached to the petition a statement signed by twenty (20) landowners or by one-half (½) of the owners in the affected area of each of the counties sought to be included asking that the lands of their county be included.

History. Acts 1949, No. 328, § 1; A.S.A. 1947, § 21-1001.

14-118-105. Establishment order — Appeal.

  1. The order of the circuit court establishing the district shall have all of the force and effect of a judgment.
  2. Any owner of real property within the district may appeal from the judgment within thirty (30) days after the judgment has been made, but if no appeal is taken within that time, the judgment authorizing and creating the district shall be deemed conclusive and binding upon all of the property within the bounds of the district and upon the owners thereof.
  3. Any owner of property in the district may in a like manner appeal from any order refusing to establish the district.

History. Acts 1949, No. 328, § 2; A.S.A. 1947, § 21-1002.

Case Notes

Cited: Cypress Creek Farms v. L'Anguille Improv. Dist. No. 1, 274 Ark. 518, 626 S.W.2d 357 (1982).

14-118-106. Board of commissioners.

  1. When the circuit court has established any improvement district, it shall appoint any number of owners of real property within the district, the number to be fixed by the court, to act as commissioners. At least one (1) shall be appointed from each county containing lands embraced in the district.
  2. Each of these commissioners shall take the oath of office required by Arkansas Constitution, Article 19, § 20, and shall also swear that he will not directly or indirectly be interested in any contract made by the board, and that he will well and truly assess all benefits resulting from the improvement and all damages caused thereby. Any commissioner failing to take the oath within thirty (30) days after his appointment shall have been deemed to decline, and his place shall be filled by the circuit court, if in session, and if not, by the circuit judge.
  3. All vacancies of the board shall be filled by the circuit court wherein the district was formed or the judge thereof in vacation.
  4. The board shall select one (1) of their number as chairman, and a majority shall constitute a quorum.
  5. The commissioners provided for shall receive as compensation the sum of five dollars ($5.00) each day for attending meetings of the board, together with their necessary expenses.
  6. The board of commissioners shall have the right, power, and authority to:
    1. Employ attorneys, agents, and personnel as it deems necessary, and fix their respective compensation; and
    2. Purchase and operate machinery or to contract work required by the federal agency.

History. Acts 1949, No. 328, § 3; A.S.A. 1947, § 21-1003.

Case Notes

Cited: Kinard v. Cache River Bayou DeView Imp. Dist., 285 Ark. 202, 686 S.W.2d 407 (1985).

14-118-107. District use of federal agency plans.

The plans prepared by the Chief of Engineers, United States Army Corps of Engineers, or any other federal agency as and when adopted, approved, and authorized by Congress of the United States, shall be the plan of improvement for the district.

History. Acts 1949, No. 328, § 4; A.S.A. 1947, § 21-1004.

14-118-108. Assessment of benefits and damages.

  1. The commissioners shall proceed to assess the lands within the district, shall inscribe in a book the description of each tract of land, shall assess the value of the benefits to accrue to each tract by reason of the improvement, and shall enter the assessment of benefits opposite the description.
  2. The assessment shall embrace not merely the lands, but all property and corporate roads, railroads, tramroads, and other improvements on land that will be benefited by the improvement.
  3. There shall be placed opposite each tract of land the name of the supposed owner as shown by the last county assessment, but a mistake in the name shall not vitiate the assessment and the commissioners may correct evident errors which occur in the county assessment list.
  4. The commissioners shall also assess all damages that will accrue to any landowner by reason of the proposed improvement, including all injury to lands taken or damaged. Where they return no such assessment of damages as to any tract of land, it shall be deemed a finding by them that no damage will be sustained.

History. Acts 1949, No. 328, § 5; A.S.A. 1947, § 21-1005.

Case Notes

Notice and Hearing.

The hearing to establish the improvement district under § 14-118-103 is the only opportunity a landowner has to contest the necessity of the inclusion of his land in the district, and the land included will then be subject to having benefits or damages assessed under this section; therefore, substantial property rights of the landowner are involved at the hearing to establish the district, and before such right can be affected, he is entitled to notice and opportunity for hearing appropriate to the nature of the case. Cypress Creek Farms v. L'Anguille Improv. Dist. No. 1, 274 Ark. 518, 626 S.W.2d 357 (1982).

14-118-109. Filing of assessment — Notice and hearing — Appeal.

  1. When the assessment is completed, the commissioners shall subscribe the assessment and deposit it with the clerk of the circuit court where the district was organized. The book shall be kept and preserved as a public record, and a list of the lands and assessments in the county shall be filed with the respective circuit clerk and recorder in each of the counties.
  2. Upon the filing of the assessment the circuit clerk shall give notice of the fact by publication for two (2) weeks in some newspaper in each of the counties in which the lands of the district may be situated.
  3. The notice shall give a description of the lands assessed for the proposed improvement, and it shall indicate that the owners of the lands, if they desire, may appear before the circuit court on a day therein named and fixed by the clerk and present complaints against the assessment of any lands in the district.
  4. Any owner of real property within the district who conceives himself to be aggrieved by the assessment of benefits or damages, or deems that the assessment of any lands in the district is inadequate, shall present his complaint to the circuit court on the day named in the notice.
  5. The court shall consider the complaint and enter its findings thereon, either confirming the assessment or increasing or diminishing it, and its findings shall have the force and effect of a judgment, from which an appeal may be taken to the Supreme Court of Arkansas within thirty (30) days, either by the property owner or by the commissioners of the district.

History. Acts 1949, No. 328, § 6; A.S.A. 1947, § 21-1006.

14-118-110. Tax levy — Appeal.

  1. The circuit court shall at the same time that the assessment of benefits is confirmed, or any subsequent time when called upon by the commissioners of the district, enter upon its records an order which shall have all the force of a judgment, providing that there shall be assessed upon the real property of the district a tax sufficient to pay the estimated cost of acquiring lands, easements, and rights-of-way and other costs required by the construction of the project by the United States, and the estimated cost to maintain the works after completion, with ten percent (10%) added for unforeseen contingencies.
  2. The tax shall be paid by the owners of the real property in the district in proportion to the amount of the assessment of benefits thereon. It is to be paid in annual installments not to exceed twenty-five percent (25%) for any one (1) year, as provided in the order.
  3. The tax so levied shall be a lien upon all real property in the district from the time the tax is levied by the court and shall be entitled to preference over all demands, executions, encumbrances, or liens whensoever created. It shall continue until the assessment with penalty and cost that may accrue thereon shall have been paid.
  4. The remedy against the assessment of taxes shall be by appeal, and the appeal must be taken within thirty (30) days from the time the assessment has been made by the circuit court, and on appeal the presumption shall be in favor of the legality of the tax.
  5. The assessment of benefits shall bear interest at the rate of six percent (6%) per annum and shall be payable only in installments as levied.

History. Acts 1949, No. 328, § 7; A.S.A. 1947, § 21-1007.

14-118-111. Extension of tax upon books — Collection, delinquency, redemption.

  1. The amount of the tax provided for shall be annually extended upon the tax books of each county where any lands are embraced within the district. The tax shall be collected by the collector of each county in the same manner and within the same time as other state and county taxes, and for his services in making the collection the collector shall receive a commission as is provided by law. The tax shall be paid over to the commissioners of the district by the collector at or before the time he is required by law to make settlement with the county treasurer for county taxes.
  2. The collection of taxes or installments of special assessments levied under this subchapter and the foreclosure of delinquent taxes or installments of special assessments, sale of lands to satisfy foreclosure decrees, and the periods of redemption provided shall be as is prescribed in Acts 1909, No. 279, as amended, and §§ 14-121-426 — 14-121-433.

History. Acts 1949, No. 328, § 9; A.S.A. 1947, § 21-1009.

Publisher's Notes. Acts 1909, No. 279, referred to in this section, is codified as §§ 14-121-101, 14-121-102, 14-121-104, 14-121-105, 14-121-20114-121-205, 14-121-207, 14-121-301, 14-121-304, 14-121-305, 14-121-307, 14-121-310, 14-121-311, 14-121-313, 14-121-40114-121-406, 14-121-408, 14-121-411, 14-121-412, 14-121-42214-121-432, 14-121-44014-121-442, 14-121-80214-121-805, and 14-121-808.

14-118-112. Board authority to borrow money and issue bonds.

The acquisitions of rights-of-way, payment of damages, construction of bridges, maintenance, or any other payment or contribution required of the local interests by the plan of the district may be hastened by the borrowing of money by the board at a rate of interest not exceeding six percent (6%) per annum. The board may issue its negotiable bonds or its negotiable evidences of debt signed by such officers as the members of the board may, by resolution, designate, and the board may pledge all assessments of benefits for the repayment thereof.

History. Acts 1949, No. 328, § 8; A.S.A. 1947, § 21-1008.

14-118-113. District rights, powers, and privileges.

  1. Districts organized under this subchapter shall have all the rights, powers, and privileges of drainage districts organized under existing laws and all amendments of those laws, and specifically under Acts 1909, No. 279, as amended.
  2. However, districts organized under this subchapter shall be limited to the purposes of complying with requirements made of the local interests of drainage, levee, or flood control projects approved and authorized by the Congress of the United States and constructed or partially constructed by the United States Army Corps of Engineers or by other federal agencies.

History. Acts 1949, No. 328, § 10; A.S.A. 1947, § 21-1010.

Publisher's Notes. For the codification of Acts 1909, No. 279, see Publisher's Note to § 14-118-111.

14-118-114. Contracts of assurance with federal agencies — Eminent domain.

Districts formed under this chapter shall have:

  1. Full power to enter into contracts of assurance with the federal government or any of its agencies and to do and perform all acts required by that agency in furtherance of the plan of improvement as authorized by the Congress of the United States; and
  2. The right of eminent domain as provided by law for other levee or drainage districts.

History. Acts 1949, No. 328, § 11; A.S.A. 1947, § 21-1011.

Subchapter 2 — Red River Improvement Districts

A.C.R.C. Notes. Acts 2005, No. 1243, § 2, provided:

“Arkansas Soil and Water Conservation Commission renamed ‘Arkansas Natural Resources Commission’.

“(a)(1) “The ‘Arkansas Soil and Water Conservation Commission’ as it is referred to or empowered throughout the Arkansas Code, is renamed.

“(2) In its place, the ‘Arkansas Natural Resources Commission’ is established, succeeding to the general powers and responsibilities previously assigned to the Arkansas Soil and Water Conservation Commission.

“(3) The Executive Director of the Arkansas Soil and Water Conservation Commission is directed to identify and revise all interagency agreements, financial instruments, funds, and other necessary legal documents in order to effect this change.

“(b) Nothing in this act shall be construed as impairing the powers and authorities of the Arkansas Soil and Water Conservation Commission before the effective date of the name change.”

Effective Dates. Acts 1973, No. 264, § 12: Mar. 9, 1973. Emergency clause provided: “It is hereby found and determined by the General Assembly that improvements to the Red River would provide substantial economic benefits to the counties in this State served by said River, and would also provide benefits to the environment, the economy, and transportation in this State; and that the immediate passage of this Act is necessary to establish procedures for making said improvements and to cooperate with the appropriate federal agencies in order to obtain the benefits of federal funds required therefor. Therefore, an emergency is hereby declared to exist, and this act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after its passage and approval.”

Acts 1975 (Extended Sess., 1976), No. 1035, § 3: Jan. 27, 1976. Emergency clause provided: “It is hereby found and determined by the Seventieth General Assembly, meeting in Extended Session, that the standardization of mileage reimbursement for members of the State's Boards and Commissions will alleviate many discrepancies and inequities in existing laws and will allow such members to receive travel reimbursement commensurate with that paid to State employees. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1987, No. 862, § 3: Apr. 13, 1987. Emergency clause provided: “It is hereby found and determined by the General Assembly that because of the case Ricarte v. State, CR 86-31, a question has arisen over the validity of Act 1035 of the Extended Session of 1976; that this Act is a reenactment of the former law; and that the immediate passage of this Act is necessary to clarify the state of the law on this issue. Therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1997, No. 103, § 8: Feb. 6, 1997. Emergency clause provided: “It is hereby found and determined by the Eighty-first General Assembly that various studies being conducted by the federal government regarding the use of the Red River are nearing completion; that further studies and projects on the Red River will require state participation; and that the provisions of this Act will provide the necessary state resources for such projects. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1997, No. 250, § 258: Feb. 24, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 1211 of 1995 established the procedure for all state boards and commissions to follow regarding reimbursement of expenses and stipends for board members; that this act amends various sections of the Arkansas Code which are in conflict with the Act 1211 of 1995; and that until this cleanup act becomes effective conflicting laws will exist. Therefore an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governer [sic], it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

14-118-201. Subchapter cumulative.

This subchapter shall be cumulative and shall not repeal any existing law, nor shall it be deemed to take from any levee, drainage, or other improvement district any power or right the district now has to enter into and perform any agreement or contract with the United States Army Corps of Engineers or other federal agency.

History. Acts 1973, No. 264, § 10; A.S.A. 1947, § 21-1023.

14-118-202. Red River Commission — Creation, powers, and duties.

There is created and established the Red River Commission with the following powers, duties, and responsibilities:

  1. To cooperate with the appropriate state and federal agencies for the study and planning of needed improvements to and along the main stem of the Red River in Little River, Hempstead, Miller, and Lafayette Counties, Arkansas;
  2. To review, study, and examine any plan by the State of Arkansas or the federal government, or any agency thereof, for the improvement of the main stem of the Red River in Arkansas and to ascertain the nature and purpose of the improvement, the benefits to be expected therefrom, and the necessity, feasibility, and estimated cost thereof;
  3. To determine the local, nonfederal costs necessary for the construction, operation, and maintenance of any Red River improvement project along and upon the main stem thereof;
  4. To delineate the area to be benefited by improvement of the main stem of the Red River.

History. Acts 1973, No. 264, § 1; A.S.A. 1947, § 21-1014.

14-118-203. Commission members.

    1. The commission shall be composed of eight (8) members, appointed by the Governor as follows: Two (2) who are residents and electors of Little River County, two (2) who are residents and electors of Hempstead County, two (2) who are residents and electors of Miller County, and two (2) who are residents and electors of Lafayette County.
    2. The Governor's appointments shall be by and with the advice and consent of the Senate.
  1. Before entering upon commission duties, each member of the commission shall take and subscribe and file in the office of the Secretary of State an oath to support the Constitution of the United States and the Constitution of the State of Arkansas and to faithfully perform the duties of the office upon which he is about to enter.
  2. For each member of the commission, the term of office shall commence on January 15 following the January 14 expiration date, and shall end on January 14 of the seventh year following the year in which the term commenced.
  3. Any vacancies arising in the membership of the commission for any reason other than expiration of the regular terms for which the members were appointed shall be filled by appointment by the Governor, and to be thereafter effective until the expiration of the regular terms, subject, however, to the confirmation of the Senate when it is next in session.
  4. Members of the commission shall receive no pay for their services, but whenever the General Assembly shall have appropriated funds to the Arkansas Water Development Fund administered by the Arkansas Soil and Water Conservation Commission, they may, upon proper application to the Arkansas Soil and Water Conservation Commission, be reimbursed for expenses in accordance with § 25-16-901 et seq.

History. Acts 1973, No. 264, §§ 2-5; 1975 (Extended Sess., 1976), No. 1035, § 1; A.S.A. 1947, §§ 6-616, 21-1015 — 21-1018; reen. Acts 1987, No. 862, § 1; 1997, No. 250, § 88.

A.C.R.C. Notes. Part of this section was reenacted by Acts 1987, No. 862, § 1. Acts 1987, No. 834 provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

Amendments. The 1997 amendment rewrote (e).

14-118-204. Petition for district establishment — Notice and hearing.

  1. Whenever the Congress of the United States has enacted a law adopting and authorizing a project for the improvement of the main stem of the Red River in Little River, Hempstead, Miller, or Lafayette Counties in Arkansas, the commission may, after performing their duties as outlined and prescribed by § 14-118-202, petition the circuit court in the judicial district in which the largest portion of the lands to be benefited are situated and within a county in which some part or portion of lands in the proposed district are situated for the establishment of an improvement district to embrace the property within the area to be benefited.
  2. The petition shall contain a general description of the region which it is intended shall be embraced within the district, a concise statement of the authorized and adopted project, a copy of the Act of Congress, together with the plans and estimated cost to be borne by the district as made by the United States Army Corps of Engineers or other agency of the United States Government, a concise statement showing the necessity of forming and creating the proposed improvement district, a concise statement as to the benefits to be received by the proposed adopted and authorized project, and a statement of the amount of local nonfederal costs necessary for the construction, operation, and maintenance of the project, together with a description of the other local participation required by the appropriate federal agency for construction of the improvements.
  3. Upon the filing of the petition, it shall be presented to the judge of the circuit court, either in term or vacation, and the court shall make an order directing the clerk of the circuit court in which the petition is filed to give notice by publication for two (2) weeks in some newspaper or newspapers published and having a general circulation in each of the counties embraced within the proposed boundaries of the district, calling upon all persons owning property therein to appear before the court on some day to be fixed by the court to show cause in favor of or against the establishment of the district.
  4. At the time named in the notice, the circuit court shall meet and hear all property owners within the proposed district who wish to appear and advocate or resist the establishment of the district. If the court finds and deems it to be in the best interest of the owners of real property within the district that the area shall become an improvement district, under the terms of this subchapter, it shall make an order upon its records establishing the area as an improvement district, subject to all of the terms and provisions of this subchapter.
  5. All proceedings shall be had in the circuit court where the petition is filed, and all improvement districts created under this subchapter shall receive names selected and designated by the circuit court.
  6. No petition filed under the provisions of this subchapter shall include lands in any other county except the one in which the petition is filed, unless there is attached to the petition a statement signed by twenty (20) landowners or by one-half (½) of the owners in the affected area of each of the counties sought to be included asking that the lands of their county be included.

History. Acts 1973, No. 264, § 6; A.S.A. 1947, § 21-1019.

14-118-205. Establishment order.

  1. The order of the circuit court establishing the district shall have all of the force and effect of a judgment.
  2. Any owner of real property within the district may appeal from the judgment within thirty (30) days after the judgment has been made, but if no appeal is taken within that time, the judgment authorizing and creating the district shall be deemed conclusive and binding upon all of the property within the bounds of the district and upon the owners thereof. Any owner of property in the district may in a like manner appeal from any order refusing to establish the district.

History. Acts 1973, No. 264, § 7; A.S.A. 1947, § 21-1020.

14-118-206. District board of commissioners.

  1. When the circuit court has established the improvement district upon the petition of the commission, it shall proceed for the appointment of a board of commissioners in the same manner as provided by § 14-118-106.
  2. The board of commissioners shall have all the rights, powers, authorities, and duties required or necessary for the construction, operation, and maintenance of the improvements set forth in the petition for the establishment of the district and as are provided under and by virtue of the provisions of §§ 14-118-106 — 14-118-114. However, any such board of commissioners shall consist of not less than five (5) members nor more than nine (9) members.
  3. The term of the initial board members shall be staggered whereas four (4) shall expire one (1) each year for four (4) years, and the remaining members of the board shall have five-year terms.
  4. Each member shall serve until his successor is appointed and qualified.
  5. Appointments by the court shall be made upon petition by the commission established under this subchapter.

History. Acts 1973, No. 264, § 8; A.S.A. 1947, § 21-1021.

14-118-207. Relocation assistance.

The provisions of §§ 22-9-701 and 22-9-702, which provide for public entities to provide assistance and payments to persons displaced by the acquisition of real property in connection with programs and projects wholly or partially financed by federal funds and to do such other acts and follow such procedures and practices as may be necessary to comply with the provisions of Public Law 91-646, shall be applicable to all projects undertaken under the provisions of this subchapter.

History. Acts 1973, No. 264, § 9; A.S.A. 1947, § 21-1022.

U.S. Code. Public Law 91-646, referred to in this section, is codified as 42 U.S.C. §§ 4601-4655.

14-118-208. Additional powers.

  1. The Red River Commission may receive and use any federal, state or private funds, donations, and grants made available for the development, use and expansion of the Red River.
  2. The commission may share in costs associated with the Red River Valley Association.

History. Acts 1997, No. 103, § 2.

Subchapter 3 — Extension of Improvement District Powers

14-118-301. Subchapter cumulative.

This subchapter shall be cumulative and shall not repeal any existing law, nor shall it be deemed to take away from any levee, drainage, or other improvement district any power or right that district now has to enter into and perform any agreement or contract with the United States Army Corps of Engineers or other federal agency.

History. Acts 1983, No. 432, § 10; A.S.A. 1947, § 21-1033.

14-118-302. Subchapter construction.

This subchapter shall be liberally construed to effect its purpose.

History. Acts 1983, No. 432, § 11; A.S.A. 1947, § 21-1034.

14-118-303. General rights, powers, and duties not limited.

  1. The enumeration of the specific powers and duties under this subchapter shall not be deemed to be a limitation under the general rights, powers, and privileges conferred by the existing drainage district laws of the State of Arkansas as provided in this subchapter.
  2. The district proceeding under this subchapter shall have all the powers specified in this subchapter as well as all the powers specified in §§ 14-117-101 — 14-117-106, 14-117-201 — 14-117-209, 14-117-301 — 14-117-309, 14-117-401 — 14-117-427.

History. Acts 1983, No. 432, § 9; A.S.A. 1947, § 21-1032.

14-118-304. Preconditions for extension of powers.

When an improvement district has been established by order of the circuit court pursuant to the provisions of §§ 14-118-10114-118-114, commissioners for the improvement district have been appointed by order of the circuit court, an assessment of benefits has been made and approved by order of the circuit court in that district, and the project for the improvement of the rivers, tributaries, or streams by the United States with which the improvement district was intended to cooperate has not been completed by the United States and work thereon has ceased, the improvement district may have the additional powers specified in this subchapter by proceeding as provided in this subchapter.

History. Acts 1983, No. 432, § 1; A.S.A. 1947, § 21-1024.

14-118-305. Petition to acquire powers of drainage district — Notice — Hearing — Order — Appeal.

  1. The board of commissioners of such an improvement district, by resolution adopted by a majority of the members thereof, may determine that the improvement district should have those rights, powers, and privileges of drainage districts organized under the existing laws of this state and all amendments thereof and specifically under §§ 14-120-601 — 14-120-608, 14-121-101 — 14-121-105, 14-121-201 — 14-121-208, 14-121-301 — 14-121-305, 14-121-307 — 14-121-314, 14-121-401 — 14-121-412, 14-121-420 — 14-121-433, 14-121-440 — 14-121-443, 14-121-501 — 14-121-504, 14-121-602 — 14-121-607, 14-121-701 — 14-121-706, 14-121-801 — 14-121-811, 14-121-1001 — 14-121-1009, and 14-123-313, inclusive, and upon the adoption of the resolution may petition the circuit court by order of which the district was created for such powers.
  2. Upon the filing of the petition, the petition shall be presented to the judge of the circuit court, either in term or vacation, and the court shall make an order directing the clerk of the circuit court in which the petition is filed to give notice by publication for two (2) weeks in some newspaper or newspapers published and having a general circulation in each of the counties embraced within the boundaries of the improvement district, calling upon all persons owning property therein to appear before the court on some day to be fixed by the court and to show cause in favor of or against the enlargement of powers of the district.
  3. At the time named in that notice, the circuit court shall meet and hear all property owners within the district who wish to appear and advocate or resist the enlargement of powers of the district. If the court finds and deems it to be in the best interest of the owners of real property within the district that the powers thereof shall be enlarged as herein provided, it shall make an order upon its records granting to the district the powers herein specified.
  4. The order of the circuit court enlarging the powers of the district shall have all the force and effect of a judgment.
  5. Any owner of real property within the district may appeal from the judgment within thirty (30) days after the judgment has been made, but if no appeal is taken within that time, the judgment authorizing the enlargement of the powers of the district shall be deemed conclusive and binding upon all of the property within the bounds of the district and upon the owners thereof. Any owner of property in the district or the board of commissioners may within a like manner appeal from an order refusing to enlarge the powers thereof.

History. Acts 1983, No. 432, § 2; A.S.A. 1947, § 21-1025.

Case Notes

Appeals.

Where protesting landowners failed to appeal the trial court's initial order granting an extension of a river improvement district's powers to that of a drainage district, they could not, in a later appeal from the trial court's subsequent order approving an alteration of the drainage district's plans, raise the issue that the original plans did not comport with the requirement in § 14-118-306 that the purpose of allowing a river improvement district to expand its powers is to complete projects contemplated by an act of Congress and the United States Army Corps of Engineers. Kinard v. Cache River Bayou DeView Imp. Dist., 285 Ark. 202, 686 S.W.2d 407 (1985).

14-118-306. Extension of powers — Purpose.

  1. By the order of the circuit court, the powers of the improvement district shall be enlarged and extended to embrace all the powers, rights, and privileges of drainage districts organized under the existing laws of the State of Arkansas and all amendments to the existing laws and, specifically, under Acts of 1909, No. 279, as amended.
  2. The purpose of this extension of powers shall be to complete the improvements contemplated by the act of Congress and the plans of the United States Army Corps of Engineers, which were filed with and made a part of the petition for the establishment of the improvement district under subchapter 1 of this chapter, which plans constitute the plan of improvement of the district under the provisions of subchapter 1.

History. Acts 1983, No. 432, § 3; A.S.A. 1947, § 21-1026.

Publisher's Notes. Acts 1909, No. 279, referred to in this section, is codified as §§ 14-121-101, 14-121-102, 14-121-104, 14-121-105, 14-121-20114-121-205, 14-121-207, 14-121-301, 14-121-304, 14-121-305, 14-121-307, 14-121-310, 14-121-311, 14-121-313, 14-121-40114-121-406, 14-121-408, 14-121-411, 14-121-412, 14-121-42214-12-432, 14-121-44014-121-442, 14-121-80214-121-805, and 14-121-808.

Case Notes

Appeals.

Where protesting landowners failed to appeal the trial court's initial order granting an extension of a river improvement district's powers to that of a drainage district, they could not, in a later appeal from the trial court's subsequent order approving an alteration of the drainage district's plans, raise the issue that the original plans did not comport with the requirement in this section that the purpose of allowing a river improvement district to expand its powers is to complete projects contemplated by an act of Congress and the United States Army Corps of Engineers. Kinard v. Cache River Bayou DeView Imp. Dist., 285 Ark. 202, 686 S.W.2d 407 (1985).

14-118-307. Assessment of benefits and damages.

    1. Upon the order granting the enlarged powers, the commissioners of the improvement district may determine to proceed to assess the lands in the district for the purpose of carrying out the plans of improvement as adopted in the order creating the district.
    2. Thereupon, the commissioners shall:
      1. Proceed to assess the lands within the district;
      2. Inscribe in a book the description of each tract of land;
      3. Assess the value of the benefits to accrue to each tract by reason of the improvement; and
      4. Enter the assessment of benefits opposite the description.
    3. The assessment shall embrace not merely the lands but all property and corporate roads, railroads, tramroads, and other improvements on land that will be benefited by the improvement. There shall be placed opposite each tract of land the name of the supposed owner as shown by the last county assessment, but a mistake in the name shall not vitiate the assessment. The commissioners may correct any evident error which occurs in the county assessment list.
  1. The commissioners shall also assess all damages that will accrue to any landowner by reason of the proposed improvement, including all injury to lands taken or damaged. Where they return no such assessment of damages as to any tract of land, it shall be deemed a finding by them that no damage will be sustained.

History. Acts 1983, No. 432, § 4; A.S.A. 1947, § 21-1027.

14-118-308. Filing of assessment — Notice.

  1. When the assessment is completed, the commissioners shall subscribe the assessment and deposit it with the clerk at the circuit court where the district was organized. The book shall be kept and preserved as a public record, and a list of the lands and assessments in the county shall be filed with the respective circuit clerk and recorder in each of the counties.
  2. Upon the filing of the assessment, the circuit clerk shall give notice of the fact by publication two (2) weeks in some newspaper in each of the counties in which the lands of the district may be situated. The notice shall give a description of the lands assessed for the proposed improvement. The owners of the lands, if they desire, may appear before the circuit court on a day therein named and fixed by the clerk and present complaints, if they have any, against the assessment of any lands in the district.

History. Acts 1983, No. 432, § 5; A.S.A. 1947, § 21-1028.

Case Notes

Cited: Kinard v. Cache River Bayou DeView Imp. Dist., 285 Ark. 202, 686 S.W.2d 407 (1985).

14-118-309. Hearing of complaints against assessment — Appeal.

  1. Any owner of real property within the district who conceives himself to be aggrieved by the assessment of benefits or damages or deems that the assessment of any lands in the district is inadequate shall present his complaint to the circuit court on the day named in the notice.
  2. The court shall consider the complaint and enter its findings thereon, either confirming the assessment or increasing or diminishing it.
  3. The court's findings shall have the force and effect of a judgment, from which an appeal may be taken to the Supreme Court of Arkansas within thirty (30) days, either by the property owner or by the commissioners of the district.

History. Acts 1983, No. 432, § 5; A.S.A. 1947, § 21-1028.

14-118-310. Assessment order — Lien — Appeal.

  1. The circuit court, at the same time that the assessment of benefits is confirmed or any time when called upon by the commissioners of the district, shall enter upon its records an order which shall have all the force of a judgment, providing that:
    1. There shall be assessed upon the real property of the district a tax sufficient to pay the estimated cost of acquiring lands, easements, and rights-of-way and other costs required by the construction of the project by the United States, the estimated cost to complete the improvements, and the estimated cost to maintain the works after completion, with ten percent (10%) added for unforeseen contingencies;
    2. The tax shall be paid by the owner of the real property in the district in proportion to the amount of the assessment of benefits thereon and which is to be paid in annual installments, not to exceed twenty-five percent (25%) for any one (1) year, as provided in the order. The tax so levied shall be a lien upon all real property in the district from the time the tax is levied by the court, shall be entitled to preference over all demands, executions, encumbrances, or liens whensoever created, and shall continue until the assessment with penalty and cost that may accrue thereon shall have been paid.
  2. The remedy against the assessment of taxes shall be by appeal, and the appeal must be taken within thirty (30) days from the time the assessment has been made by the circuit court. On appeal, the presumption shall be in favor of the legality of the tax.

History. Acts 1983, No. 432, § 6; A.S.A. 1947, § 21-1029.

14-118-311. Payment of assessment — Interest.

The assessment of benefits shall bear interest at the rate of six percent (6%) per annum and shall be payable only in installments as levied.

History. Acts 1983, No. 432, § 6; A.S.A. 1947, § 21-1029.

14-118-312. Board authority to borrow money and issue bonds.

  1. In order to hasten the work, the board may borrow money at a rate of interest not exceeding the maximum rate prescribed by the Constitution of the State of Arkansas at the time of issuance. The board may issue negotiable bonds therefor signed by the members of the board and may pledge all assessments for the repayment thereof.
  2. It may also issue to contractors to do the work as negotiable evidences of debt, bearing interest not exceeding the lawful rate of interest prescribed by the Constitution of the State of Arkansas.
  3. No bonds issued under the terms of this subchapter shall run for more than thirty (30) years. All issues of bonds shall be divided so that a portion thereof may mature each year as the assessments are collected, or they may all be made payable at the same time, with proper provision for a sinking fund.

History. Acts 1983, No. 432, § 7; A.S.A. 1947, § 21-1030.

14-118-313. Units of construction.

  1. If, in the preparation of the final work plan, it is determined by the board that the location and character of the works of improvement are so varied that it would be impractical to let contracts on all of them in the same year or if funds would not be available for all of them in the same year, the final work plan may be segregated and divided into one (1) or more units of construction constituting any work or group of works proposed in the final work plan which can be constructed and operated as a feasible unit alone and which can also be operated economically and in conjunction with other proposed works in the plan.
  2. The final work plan shall indicate the area included in each unit of construction and establish each such area as a separate construction area, set forth a percentage or portion of the total project costs allocated to each construction area, and delineate the lands in each construction area which, on the basis of preliminary estimates, would derive some benefits from the works of improvement to be installed therein.
  3. Each construction area shall be appropriately identified by name and number, such as “Construction Area No. ”
  4. The determination of the board that the works are approved and proposed in the final work plan, even though divided into units of construction, do not lack unity or singleness of purpose and that the works in each unit of construction confer some benefit on the lands therein shall be final and conclusive.
  5. The board of commissioners shall have authority to let contracts for carrying out the works of improvement on a construction area basis and to borrow money and issue notes or bonds and assess benefits and damages on a construction area basis.
  6. A separate assessment book shall be prepared and maintained for each construction area.
  7. The tax levied to secure and repay notes or bonds shall be limited to and be a lien only on the lands located within each construction area found to be benefited by the works installed at the construction area, and that fact shall be indicated on the face of the bonds or notes.
  8. All published notices with respect to the assessment of benefits and damages and the borrowing of money and issuance of notes and bonds shall list the lands according to the construction area in which they are located.

History. Acts 1983, No. 432, § 8; A.S.A. 1947, § 21-1031.

Chapter 119 Water Improvement District Accounting

Cross References. Applicability of water district accounting law, § 14-89-101.

14-119-101. Title.

This chapter shall be known and cited as “The Water Improvement District Accounting Law of 1973.”

History. Acts 1973, No. 211, § 1; A.S.A. 1947, § 21-2201.

14-119-102. Bank accounts.

  1. All water improvement districts of this state shall establish and maintain commercial bank accounts for the deposit of all funds received.
  2. The accounts shall be established and maintained in the name of the water improvement district.

History. Acts 1973, No. 211, § 2; A.S.A. 1947, § 21-2202.

14-119-103. Deposit of funds.

All funds received by a water improvement district of this state shall be deposited in total in such bank accounts as prescribed by § 14-119-102.

History. Acts 1973, No. 211, § 3; A.S.A. 1947, § 21-2203.

14-119-104. Prenumbered receipts.

  1. All items of income are to be formally receipted by the use of prenumbered receipts or mechanical receipting devices such as cash registers or validating equipment. However, the use of prenumbered receipts shall not be required for receipting revenues derived from the sale of water to individual consumers where the income is determined by periodic readings of meters and the individual consumer is billed for such water by means of a water bill, part of which must be returned by the consumer with his remittance.
  2. In the use of prenumbered receipts, the following minimum standards shall be met:
    1. Receipts are to be prenumbered by the printer and a printers' certificate obtained and retained for audit purposes. The certificate shall state the date printing was done, the numerical sequence of receipts printed, and the name of the printer;
    2. The prenumbered receipts shall contain the following information for each item receipted:
      1. Date;
      2. Amount of receipt;
      3. Name of person or company from whom money was received;
      4. Purpose of payment;
      5. Fund to which receipt is to be credited;
      6. Signature of employee receiving money;
    3. The original receipt should be given to the party making payment. One (1) duplicate copy of the receipt shall be maintained in numerical order in the receipt books and made available to the auditors during the course of annual audit. Additional copies of the receipt are optional with the district's office and may be used for any purposes they deem fit.
  3. The use of mechanical receipting devices, which accomplish the same purpose as prenumbered receipts, is acceptable and is encouraged where such equipment is utilized.

History. Acts 1973, No. 211, § 4; A.S.A. 1947, § 21-2204.

14-119-105. Prenumbered checks.

  1. All disbursements of water improvement district funds, except as noted in § 14-119-106, are to be made by prenumbered checks drawn upon the bank account of that district. Such checks shall be of the form normally provided by commercial banking institutions and shall contain as a minimum the following information:
    1. Date of issue;
    2. Check number;
    3. Payee;
    4. Amount both in numerical and written form;
    5. Signature of authorized disbursing officer of the water improvement district.
  2. The district shall maintain printers' certificates as to the numerical sequence of checks printed.

History. Acts 1973, No. 211, § 5; A.S.A. 1947, § 21-2205.

14-119-106. Petty cash funds.

  1. Water improvement district officers are permitted to establish petty cash funds so long as the funds are maintained on the basis set forth in this section.
  2. The establishment of a petty cash fund must be approved by the board of directors.
  3. In establishing such a fund, a check is to be drawn payable to “petty cash.”
  4. That amount may be maintained in the district's office for the handling of small expenditures for items such as postage, light bulbs, delivery fees, etc.
  5. A paid-out slip is to be prepared for each item of expenditure from that fund and signed by the person receiving the moneys.
  6. These paid-out slips shall be maintained with the petty cash.
  7. When the fund becomes depleted, the district's official may then draw another check payable to “petty cash” in an amount which equals the total paid-out slips issued. At that time, the paid-out slips shall be removed from the petty cash fund and utilized as invoice support for the check replenishing petty cash.

History. Acts 1973, No. 211, § 6; A.S.A. 1947, § 21-2206.

14-119-107. Reconciliation of bank accounts.

  1. All water improvement districts maintaining bank accounts, as prescribed in § 14-119-102, shall reconcile their cash receipts and cash disbursements journal to the amount on deposit in banks on a monthly basis. The reconciliations shall take the following form:
  2. This reconciled balance shall agree to either the cash balance as shown on the official's check stubs running bank balance or the official's general ledger cash balance, whichever system the official employs.

“Water Improvement District of Date Amount Per Bank Statement Dated $ .00 ADD: Deposits in transit (Receipts recorded in Cash Receipts Journal not shown on this bank statement.) DATE RECEIPTS NO. AMOUNT $ .00 .00 .00 .00 DEDUCT: Outstanding checks (Checks issued and dated prior to date of bank statement per Cash Disbursements Journal not having yet cleared the bank.) CHECK NO. PAYEE AMOUNT $ .00 .00 .00 .00 RECONCILED BALANCE: $ .00

Click to view table.

History. Acts 1973, No. 211, § 7; A.S.A. 1947, § 21-2207.

14-119-108. Fixed asset records.

  1. All water improvement districts shall establish and maintain, as a minimum, listing of all fixed assets and equipment owned by or under the control of their district. The listing shall contain as a minimum:
    1. Property item number, if used by the district;
    2. Brief description;
    3. Serial number, if available;
    4. Location of property;
    5. Vendor purchased from and the date of acquisition;
    6. Cost of property.
  2. In lieu of maintaining the list, the district may maintain an index card system for accounting for fixed assets and equipment. The index card system must contain the above information for each unit of property owned or under the control of the district.
  3. Such fixed asset and equipment records shall constitute a part of the general records of the office and accordingly shall be made available for utilization by the auditor at the time of audit.

History. Acts 1973, No. 211, § 8; A.S.A. 1947, § 21-2208.

14-119-109. Cash receipts journal.

  1. All water improvement districts of this state shall establish and maintain as a minimum a cash receipts journal for recording of all moneys received by the district.
  2. The journal shall consist of columnar paper and have sufficient columns to provide for the recording of:
    1. Date;
    2. Person moneys received from;
    3. Prenumbered receipt number;
    4. Total amount received;
    5. Additional columns as deemed necessary by the district for proper classification.

History. Acts 1973, No. 211, § 9; A.S.A. 1947, § 21-2209.

14-119-110. Cash disbursements journal.

  1. All water improvement districts of this state shall establish and maintain as a minimum a cash disbursements journal for recording and classifying cash disbursements.
  2. The journal shall consist of columnar paper and shall have sufficient columns to provide for the recording of:
    1. Date;
    2. Payee;
    3. Check number;
    4. Amount check was written for;
    5. Additional columns for the classification of expenditures according to major expense categories such as:
      1. Salaries;
      2. Supplies;
      3. Maintenance;
      4. Etc.

History. Acts 1973, No. 211, § 10; A.S.A. 1947, § 21-2210.

14-119-111. Accounting systems above minimum.

In the event any water improvement district feels its system of bookkeeping is such that it equals or exceeds the basic system prescribed by this chapter, the district may request a review by the Legislative Joint Auditing Committee. Upon its concurrence with these facts, the Legislative Joint Auditing Committee may issue a certificate to the district stating that the district's accounting system is of a degree of sophistication such that the basic requirements of this chapter are being met and exempting the district from the requirement of the particulars of the system prescribed by this chapter.

History. Acts 1973, No. 211, § 11; A.S.A. 1947, § 21-2211.

14-119-112. Classification, maintenance, and destruction of records.

  1. Accounting records can basically be divided into the two (2) groups: Support documents and permanent records.
    1. Support documents consist primarily of the following items:
      1. Cancelled checks;
      2. Invoices;
      3. Bank statements.
    2. Support documents shall be maintained for a period of at least three (3) years and in no event shall be disposed of prior to being audited for the period in question.
  2. Permanent records consist of journals, ledgers, subsidiary ledgers, minutes, fixed assets, and equipment detail records and shall be maintained permanently by the district.
  3. When support documents are destroyed, the district shall document such destruction by the following procedure:
    1. An affidavit is to be prepared stating which documents are being destroyed and which period of time they apply to, indicating the method of destruction.
    2. This affidavit is to be signed by the district employee performing such destruction, and one (1) board member.
  4. In addition, the approval of the board for destruction of such documents shall be obtained, and an appropriate note of such approval indicated in the board minutes along with the destruction affidavit. Such board approval shall be obtained prior to the destruction.

History. Acts 1973, No. 211, § 12; A.S.A. 1947, § 21-2212.

Chapter 120 Drainage and Levee Improvement Districts Generally

Research References

ALR.

Liability for diversion of surface water by raising surface level of land. 88 A.L.R.4th 891.

Am. Jur. 78 Am. Jur. 2d, Waters § 119.

Ark. L. Rev.

Lex Aquae Arkansas, 27 Ark. L. Rev. 429.

U. Ark. Little Rock L.J.

Looney, Diffused Surface Water in Arkansas: Is It Time for a New Rule?, 18 U. Ark. Little Rock L.J. 3.

Subchapter 1 — General Provisions

Cross References. Relocation assistance payments, § 22-9-701 et seq.

Preambles. Acts 1951, No. 83 contained a preamble which read:

“Whereas, the United States of America, in the furtherance of its policy of flood control of the Mississippi River and its tributaries, has or may hereafter undertake to straighten and clean out bayous that serve as natural drainage of levee districts, provided such levee districts furnish the necessary rights-of-way and otherwise meet the requirements therefor;

Now, therefore….”

Effective Dates. Acts 1927, No. 109, § 6: approved Mar. 4, 1927. Emergency clause provided: “It is hereby ascertained that the statutes by which many of such levee and drainage districts were created are now inadequate to enable them to carry out their purposes, so that there is great danger to lives and property from overflow and great danger to health from stagnant water, so that this act is immediately necessary for the protection of the public health and safety, and it is therefore declared that an emergency exists, and this act shall be in force from and after its passage.”

Acts 1929, No. 47, § 5: approved Feb. 25, 1929. Emergency clause provided: “It is found as a matter of fact that many levee and drainage districts in the State have been unable to meet the payment of maturing bonds and interest coupons, and that as a result of such default in the payment of bonds and interest coupons many districts are threatened with the appointment of receivers, by reason of which appointment the said districts will be prevented from performing the functions they were created to perform and will be prevented from maintaining the levees they have already constructed, to the serious impairment of land values in the said districts, and imperiling lives and property within the same; and it is found necessary for the preservation of the public peace, health and safety that this act shall become effective and be in force without delay, and an emergency is therefore declared to exist, and this act shall be in force and effect from and after its passage.”

Acts 1929, No. 285, § 3: approved Mar. 29, 1929. Emergency clause provided: “It is found as a fact that many levee and drainage districts in the state have outstanding certificates of indebtedness, notes, and unsatisfied judgments against them and will be unable to pay the certificates of indebtedness or notes when due, and are unable to satisfy the judgments now in force against them, in consequence of which they will have to use all of their income in paying pressing debts, when some of such income is urgently needed to make repairs on the levees and drains, so that they will not be able to protect the lands of the district from overflow; that there are many such districts where work is now urgently needed, which cannot be done unless the payment of pressing indebtedness can be deferred, so that unless this act goes into immediate operation valuable lands will be overflowed with great peril to human lives by drowning and the diseases that follow an overflow and defective drainage; and it is found necessary for the preservation of the public peace, health and safety that this act shall become effective without delay, and an emergency is declared, and this act shall take effect and be in force on and after its passage.”

Acts 1931, No. 240, § 3: approved Mar. 27, 1931. Emergency clause provided: “It is ascertained and hereby declared as a matter of fact that because of the inability of many land owners to pay the taxes of such improvement districts, and large delinquencies in the collections of the revenues thereof, many levee and drainage districts in this State have been, are now and will be unable to meet the payment of maturing bonds and accruing interest thereon now outstanding, and that many such districts are threatened with receivership, and are being prevented from performing the functions for which they were created, and will be prevented from maintaining their improvements already constructed, to the serious impairment and practical destruction of such improvements, and the land value in said districts, and imperiling lives and property within the same, and that the refunding of the indebtedness of such districts is necessary to give relief to the taxpayers thereof, and to rehabilitate such districts; and for these reasons, this act being necessary for the preservation of the public peace, health and safety, an emergency is therefore declared to exist, and this act shall take effect and be in force from and after its passage.”

Acts 1935, No. 79, § 5: approved Feb. 26, 1935. Emergency clause provided: “In view of the fact that no adequate market now exists for the bonds and interest coupons of drainage and levee districts of this State, many of which are now in default due to the present economic depression and resultant collapse of land and other values, thus making it impossible for the present owners and holders of such bonds and interest coupons to realize the value thereof; and the further fact that vast areas of tillable and highly fertile lands within such improvement districts are delinquent, or have been foreclosed upon and acquired by such improvement districts and thus lost to use and taxation, and rendering such districts unable to maintain, repair and preserve such improvements as have been constructed by them for the benefit of the inhabitants and property owners of such districts, and impairing the security of the bondholders of such districts; and the further fact that the legal owners of lands within such districts, due to the presently depressed economic conditions prevailing and long existing in this State and Nation, are about to lose their lands and homes within such districts unless afforded this means of redeeming and/or repurchasing their lands and homes from such improvement districts, and such districts thereby prevented from rehabilitating and preserving such districts, and restoring said lands to commercial uses and taxation, an emergency requiring this act to be placed in immediate operation is declared to exist, and this act being necessary for the due preservation of the public peace, health and safety, shall become operative and be in full force and effect from and after its passage.”

Acts 1939, No. 37, § 5: Feb. 6, 1939. Emergency clause provided: “Because of the urgent need for experienced management of Improvement District affairs, this Act is necessary for the immediate preservation of the public peace, health and safety, and an emergency is hereby declared to exist, and this Act shall take effect and be in full force and effect from and after its passage and approval.”

Acts 1947, No. 216, § 2: approved Mar. 18, 1947. Emergency clause provided: “Whereas, there are many instances in drainage and levee districts within the State where entire additions in towns and cities which were originally assessed on a lot basis have been reduced to acreage and the land is now being farmed and in other instances land has been platted into lots and new additions formed and said lands still remain on the assessment rolls of the district on an acreage basis. In view of such existing conditions many inequities have arisen and the collection of taxes levied by the districts on said assessments has been impaired. It is therefore found necessary for the preservation of the public peace, health and safety that this Act shall become effective and be in force without delay and an emergency is hereby declared and this Act shall be in force and effect from and after its passage.”

Acts 1951, No. 83, § 6: effective on passage.

Acts 1959, No. 44, § 3: Feb. 13, 1959. Emergency clause provided: “It is hereby ascertained and declared that the passage of this act will eliminate the confusion that presently exists in the time for payment of general and improvement taxes and that its immediate operation is essential to the public peace, health and safety. An emergency is hereby declared, and it shall go into effect immediately upon its passage and approval.”

Acts 1959, No. 62, § 2: Feb. 20, 1959. Emergency clause provided: “It is hereby found and determined by the General Assembly that many levee and drainage districts of this State were created by special acts of the General Assembly; that the date of the regular annual meetings of the board of directors of many such levee and drainage districts was fixed by such special acts; that such dates for holding regular annual meetings are working undue hardship on many such boards of directors and prohibits the efficient administration of the affairs of such districts; and, that only by the immediate passage of this Act may such situation be corrected. Therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1981, No. 425, § 54: Mar. 11, 1981. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

14-120-101. Date of annual board meeting.

The board of directors of any levee or drainage district created by special act of the General Assembly and for which a date for the regular annual meeting of the board of directors is fixed by special act, may change the date of the regular annual meeting by resolution adopted by a majority vote of the membership of the board of directors.

History. Acts 1959, No. 62, § 1; A.S.A. 1947, § 21-838.

14-120-102. Elections in certain combination levee and drainage districts.

  1. There shall be held an election annually on the first Monday in May in all combination levee and drainage districts where the boundaries of the districts embrace all of the lands within the corporate limits of a city of the first class and no lands situated more than three (3) miles from the corporate limits, for the election of one (1) member of the board of improvement. The judges of the election are to be appointed by the county board of election commissioners.
    1. The improvement district commissioners shall be elected for terms of three (3) years, one (1) commissioner to be elected each year.
      1. The commissioners of the districts as constituted on February 6, 1939, shall hold office according to seniority. The oldest commissioner in point of service shall hold office for three (3) years; the next commissioner in point of service shall hold office for two (2) years; and the last elected or appointed commissioner shall serve for one (1) year, or until their successors are elected and qualified.
      2. All of these terms begin from the first Monday in May, 1939.
  2. If for any cause a vacancy occurs on the board of commissioners, then the remaining two (2) commissioners shall fill the vacancy by the appointment of some person qualified to serve.

History. Acts 1939, No. 37, §§ 1-3; A.S.A. 1947, §§ 21-801 — 21-803.

Publisher's Notes. Acts 1939, No. 37, § 4, provided:

“That section 1 of Act No. 122 of the Acts of 1911, or so much thereof as in conflict with the provisions of this act, especially that part of section one, providing for the annual election of all members of Helena Improvement District, is hereby repealed, and the provisions of this act shall apply to said Improvement District.”

Case Notes

In General.

Emergency clause stating that, because of urgent need for experienced management of improvement district's affairs, this section was necessary, was held to state no fact creating an emergency, and this section was not in effect on the first Monday in May, 1939. Cunningham v. Walker, 198 Ark. 928, 132 S.W.2d 24 (1939).

The question of whether this section constitutes a special act was mentioned but not decided. Cunningham v. Walker, 198 Ark. 928, 132 S.W.2d 24 (1939).

14-120-103. Agreements with United States for straightening out, cleaning, and deepening bayous.

    1. The board of directors of any levee district or any levee and drainage district in this state, howsoever created, is authorized and empowered to make and execute any and all required, necessary, and proper contracts and assurances with the United States of America, the Secretary of the Army, the Chief of Engineers of the United States Army, or any other federal agency, to the end that:
      1. The lands, rights-of-way, and easements necessary for straightening out, cleaning out, and deepening bayous that serve as natural drainage for the levee districts may be provided for the work, which work is authorized by the United States of America or any such federal agency;
      2. To hold and save the United States of America free from damages due to such work; and
      3. To maintain such work, after completion thereof, in accordance with regulations prescribed by the Secretary of the Army.
    2. Before the board of directors of any levee district or of any levee and drainage district shall be entitled to exercise any of the powers provided under this section, it shall first ascertain and be declared by resolution of the board of directors, duly entered upon their minutes, a finding that:
      1. The benefits of the proposed work are general to the whole district;
      2. The benefits of the proposed work are equal to or in excess of the cost to the district.
    1. Such districts are authorized and empowered to take and hold any lands, interests, or servitudes therein, whether by purchase, grant, donation, or otherwise, that may be declared necessary and proper by the Chief of Engineers of the United States Army for the location, construction, channel rectification, canal, floodway, or diversion contemplated to be constructed or done by the United States of America and thereafter maintained by the district.
    2. And in order that the rights, easements, and servitudes necessary may be acquired, the board of directors of the district is given authority and power to condemn lands or interest therein for the purposes set out in subdivision (b)(1) of this subsection and to exercise the right of eminent domain. Condemnation proceedings therefor shall be instituted and conducted by such districts in the manner as now provided for condemnation for levee purposes by such districts.
  1. The Governor and Secretary of State of Arkansas are authorized, empowered, and directed to make and execute any and all necessary and proper contracts, easements, deeds, or other instruments in writing giving, granting, and conveying to the board of directors of any such district rights-of-way over, upon, and across any lands owned by the state which are necessary or required to carry out the work contemplated, provided those instruments shall not impair any valid outstanding lien against the lands or any vested private right therein.
  2. This section shall be construed to be cumulative to existing laws relating to levee districts or levee and drainage districts and shall be liberally construed and applied to enable such districts to cooperate with the United States of America or any agency thereof with respect to the work contemplated.
  3. As used in this section, “board of directors” includes the board of commissioners or other governing body of a district, as the case may be.

History. Acts 1951, No. 83, §§ 1-5; A.S.A. 1947, §§ 21-827 — 21-831.

14-120-104. Foreclosure sales — Payment with bonds or interest coupons.

  1. Any levee or drainage improvement district in this state having acquired title to any lands within that district by virtue of foreclosure of benefit assessments thereon may sell the lands at prices fixed by the commissioners of the district and may receive in payment of the purchase price for the land the bonds and interest coupons of the district, at face value, to the amount of the purchase price.
  2. Any person redeeming or purchasing lands from the districts, at the time of making payment for those lands in bonds or interest coupons of the district, shall pay to the district in cash an amount necessary to defray all costs and expenses of foreclosure which the district shall have incurred as to the redeemed or purchased tract of land.

History. Acts 1935, No. 79, §§ 2, 3; Pope's Dig., §§ 4589, 4590; A.S.A. 1947, §§ 21-817, 21-818.

Publisher's Notes. This section insofar as it relates to repurchases of land acquired by a levee or drainage district by the original owner is superseded by § 14-86-803.

14-120-105. Funding and refunding indebtedness evidenced by bonds or certificates.

  1. Any and all levee and drainage improvement districts of this state, whether organized and created under general law or by special act of the General Assembly, shall have power to fund and refund their outstanding indebtedness including bonded indebtedness, certificates of indebtedness, and accrued matured interest on such indebtedness, and to extend the maturity of the indebtedness on such terms as the commissioners or directors of the districts shall deem for the best interest of the districts. To that end the commissioners or directors may issue the negotiable bonds of the districts, with interest coupons attached; these refunding bonds are to run for a period of not exceeding fifty (50) years from date of issue.
  2. The commissioners or directors of the districts may exchange new bonds for outstanding bonds and certificates of indebtedness, including accrued matured interest coupons, or they may issue and sell new bonds and use the proceeds to take up any of the outstanding bonds or other indebtedness of the districts in the refunding thereof.
  3. These refunding bonds shall not be issued in a greater amount than is necessary to pay the outstanding bonds and certificate of indebtedness and accrued interest coupons then being refunded, with interest to the date such new bonds are delivered plus expenses incurred in connection with the issuance of the new bonds.
  4. The refunding bonds shall be negotiable instruments and may have coupons evidencing interest payable at annual or semiannual periods and shall have all the rights of security, including liens on assessments of benefits and levy of taxes on the lands, together with all remedies for their collection that are provided for the original bonds issued by the district. The refunding bonds may be further secured by a pledge and mortgage of the assessment of benefits and taxes in the district to be executed by the directors or commissioners.

History. Acts 1931, No. 240, §§ 1, 2; Pope's Dig., §§ 11341, 11342; Acts 1981, No. 425, § 26; A.S.A. 1947, §§ 21-819, 21-820.

Cross References. Sale of refunding bonds when old bonds cannot be presented for payment, § 19-9-302.

14-120-106. Funding indebtedness other than bonded indebtedness.

  1. Any levee or drainage district in Arkansas, whether created under the general law or by special act of the General Assembly, which has outstanding certificates of indebtedness, notes, warrants, or any unsatisfied judgment against it is authorized and empowered to issue funding bonds for the purpose of paying the certificates of indebtedness, notes, or unsatisfied judgment against it.
  2. The funding bonds may be issued by the commissioners or directors of any levee or drainage improvement district under the terms and provisions of §§ 14-120-107 and 14-120-108. All proceedings relating to the issuance of any such funding bonds for the purpose of paying outstanding certificates of indebtedness, notes, or for satisfying any judgment of record shall be had in the same manner as provided by §§ 14-120-107 and 14-120-108.
    1. When any outstanding certificate of indebtedness, note, or judgment is paid by the issuance of the funding bonds herein authorized, the certificate of indebtedness or note shall be plainly marked “CANCELLED” and deposited by the secretary of the district with the county clerk if the district embraces only land in the county.
    2. If the district embraces land in more than one (1) county, then the certificate of indebtedness or note shall be deposited with the clerk of the circuit court for the county or judicial division of the county in which is situated the largest part of the lands in the district.
  3. If an unsatisfied judgment is paid by the issuance of the funding bonds, it shall be the duty of the owner of the judgment to satisfy the judgment within ten (10) days after the payment of the amount due, which satisfaction shall be duly noted on the judgment record in the manner now provided by law.
  4. The commissioners or directors of any levee or drainage district in this state may issue and sell the funding bonds authorized and use the proceeds to take up outstanding certificates of indebtedness and notes or to pay unsatisfied judgments of the district, or they may exchange new bonds for the outstanding certificates of indebtedness, notes, or in payment of the unsatisfied judgments. All proceedings with reference to the issuance or exchange of such funding bonds shall be had in accordance with the provisions of §§ 14-120-105, 14-120-107, and 14-120-108.

History. Acts 1929, No. 285, §§ 1, 2; Pope's Dig., §§ 4582, 4583; A.S.A. 1947, §§ 21-823, 21-824.

Cross References. Reorganization or consolidation of districts refunding bonds, § 14-87-101 et seq.

Sale of refunding bonds when old bonds cannot be presented for payment, § 19-9-302.

Case Notes

Cited: Drainage Dist. v. McMeen, 183 Ark. 984, 39 S.W.2d 713 (1931).

14-120-107. Cancellation of old bonds.

  1. All bonds taken up by any district by funding bonds or proceeds thereof shall be plainly marked “CANCELLED” and deposited by the secretary of the district with the county clerk if the district embraces only land in the county. If the district embraces lands in more than one (1) county, then the bonds shall be deposited with the clerk of the circuit court for the county or judicial division of the county in which is situated the largest part of the lands in the district.
  2. The secretary of the district shall file with the cancelled bonds his certificate showing the number, date, place of payment, and maturity of the cancelled funding bonds including the numbers of the interest coupons, and also the numbers, date, and place of payment of maturity of the new bonds issued for the funding.
  3. The cancelled bonds shall be carefully kept by the county clerk or circuit court clerk receiving them in his office and the certificate of the secretary of the district shall be recorded in the permanent record book in his office. For his services in filing the bonds and making the record, the clerk shall receive pay on the basis of ten cents (10¢) per line for the record, to be paid by the district.

History. Acts 1929, No. 47, § 3; Pope's Dig., § 4586; A.S.A. 1947, § 21-821.

14-120-108. Reassessment of benefits generally.

  1. In any levee or drainage district, if the original assessment of benefits was made by assessors, then the board of directors or commissioners of the district shall have the power to fill any vacancies in the board of assessors.
  2. If, however, in any such district the power of the board of assessors was exhausted on making the original assessment, the board of commissioners or directors of the district shall have the power to appoint a new board of assessors composed of the same number and with the same qualifications as the original board, the new board to have all powers to make the reassessments provided for in this section as were conferred on the original board of assessors.

History. Acts 1929, No. 47, § 4; Pope's Dig., § 4587; A.S.A. 1947, § 21-822.

14-120-109. Reassessment of benefits — Particular pieces of property.

  1. A reassessment of benefits may be made in any levee or drainage district in this state, whether created by general or special act, not more often than once a year. The reassessment may be made only as to particular pieces of real property within the district, either by lowering or raising the assessed benefits as justice may require, without the necessity of reassessing all the property in the district. However, where any district shall have issued bonds or incurred indebtedness, the total amount of the assessed benefits for the whole district shall never be reduced on any reassessment.
  2. This reassessment shall be made in the same form, after the same notice, hearing, and right of appeal as provided for the original assessment of benefits in the district and shall have the same time limitation on right of appeal and suits attacking the assessment of benefits in the district as provided for the original assessment of benefits. The installments thereof shall be levied, extended, and collected at the same time, in the same manner, by the same officers, and with the same lien and penalties for delinquencies as were provided for the original assessment.

History. Acts 1947, No. 216, § 1; A.S.A. 1947, § 21-826.

Case Notes

In General.

Under former similar statute, any levee or drainage district was authorized to reassess benefits, whether created under general law or by special act, not oftener than once a year. Drainage Dist. v. McMeen, 183 Ark. 984, 39 S.W.2d 713 (1931) (decision under prior law).

14-120-110. Installment payment of levee and drainage taxes — Exceptions.

  1. All taxes levied on land, railroads, tramroads, pipelines, telephone lines, telegraph lines, and other improvements on real estate situated in any levee or drainage districts in the State of Arkansas shall be deemed to be due and payable at any time from the third Monday in February to and including October 1 in the year succeeding the year in which the levy is made. The taxes shall be payable at the option of the taxpayer in installments as follows:
    1. The first installment of one-fourth (¼) of the amount of the taxes shall be due and payable on and from the third Monday in February to and including the third Monday in April;
    2. The second installment of one-fourth (¼) shall be payable on and from the third Monday in April to and including the third Monday in July; and
    3. The third installment of one-half (½) shall be payable on and from the third Monday in July to and including October 1.
  2. All such taxes remaining unpaid after the periods above specified shall be considered as delinquent. However, this section shall not be applicable to any levee or drainage districts having any outstanding bonded indebtedness, nor shall it be applicable to any levee or drainage district unless and until the commissioners or directors of the districts shall by resolution adopt it.

History. Acts 1959, No. 44, § 1; A.S.A. 1947, § 21-837.

14-120-111. Printing delinquent lists.

Newspapers which print delinquent lists and notices of sale for levee and drainage districts within this state shall be entitled to receive the fee prescribed by § 26-37-107(c)(1)-(3) for the publication of delinquent real property tax lists.

History. Acts 1957, No. 99, § 1; A.S.A. 1947, § 21-832; Acts 1993, No. 623, § 1.

Amendments. The 1993 amendment substituted “the fee prescribed by § 26-37-108 … property tax lists” for “forty-five cents (45¢) per tract for the first insertion … thereafter” following “entitled to receive”; and deleted (b).

14-120-112. Districts created or organized under special or general law, prior acts — Organization, operation under Acts 1909, No. 279.

  1. Any levee district embracing lands lying wholly within one (1) county, whether created by special act or organized under the general law, and any drainage district created by special act or organized under the provisions of Crawford & Moses' Digest, §§ 3569-3606 [repealed], may become a district duly organized and existing under the provisions of Acts 1909, No. 279, by proceeding in the manner set forth in this section.
    1. The directors or commissioners of the district may petition the county court for an order changing the district to a district operating under Acts 1909, No. 279.
    2. Thereupon the county court shall give notice of the application by two (2) weeks' publication in some newspaper published and having a bona fide circulation in the county and of a time when the petition will be heard.
  2. All owners of real property within the district shall have the right to appear and contest the petition or to support the petition.
  3. The county court shall hear the evidence.
    1. If it appears to the court that a majority in acreage or value of the landowners within the district have petitioned the court to make the change, the court shall either grant the petition or deny the petition, as it deems most advantageous to the property owners of the district. If the court grants the petition, the district shall have all the rights and powers and be subject to all obligations provided by the terms of Acts 1909, No. 279, as amended, and of this section.
    2. However, if a majority of the landowners of the district, or the owners of a majority in value or a majority in acreage of such lands, petition for the change, the county court must make an order declaring that the district shall henceforth be governed by the terms of Acts 1909, No. 279, as amended; and such duty may be enforced by mandamus.
    1. Where districts have been levying their taxes through their boards of directors or commissioners, the boards shall continue to levy the taxes of the district.
    2. When they have duly adopted a resolution levying taxes, the secretary of the board shall deliver to the county clerk a list of the lands in the district, with a statement of the taxes levied against each tract, and it shall then be the duty of the county clerk to enter such taxes upon the tax books of the county, to the end that they may be collected along with the state and county taxes.
    3. In case of any delinquency in the payment of such taxes, they shall be enforced in the method provided by §§ 14-121-426 — 14-121-432.
    1. When any districts described in subsection (a) of this section have been collecting their taxes upon an ad valorem plan, based upon the assessment for state and county taxes, it is ascertained and declared that the benefits which will accrue to the lands within their boundaries from the protection of the lands against overflow or their reclamation from surface water, or both, will always be in proportion to their assessment for state and county purposes.
    2. Where the taxes of the district have in the past been levied by the county court, it shall be the duty of the county court, upon the petition of the commissioners or directors of the district, or of any creditor thereof, to levy upon the lands, upon the ad valorem basis, taxes sufficient to pay the debts of such district and to carry out the plans of improvement made by the commissioners or directors thereof. To that end the commissioners or directors shall file with the county clerk their plans of improvement with an estimate of the cost thereof.
    1. The commissioners or directors of the district shall continue to be commissioners or directors of such districts when operating under this section.
    2. If there are more than three (3) of such commissioners or directors, they shall continue to function with all the powers and responsibilities of commissioners acting under Acts 1909, No. 279, as amended. However, as commissioners or directors die, resign, or become incompetent, their places shall not be filled until the board is reduced to a membership of three (3), after which all vacancies shall be filled by the county court or by the county judge in vacation.
  4. The purpose of this section is to enable levee districts embracing lands lying wholly within one (1) county, which have been created by special acts or organized under the general law and drainage districts created by special acts or organized under the provisions of the acts which appear as Crawford & Moses' Digest, §§ 3569-3606 [repealed], to become districts duly organized and existing under the provisions of Acts 1909, No. 279, as amended.

History. Acts 1927, No. 109, §§ 1-5.

Publisher's Notes. Acts 1909, No. 279, referred to in this section is codified as §§ 14-121-101, 14-121-102, 14-121-104, 14-121-105, 14-121-20114-121-205, 14-121-207, 14-121-301, 14-121-304, 14-121-305, 14-121-307, 14-121-310, 14-121-311, 14-121-313, 14-121-40114-121-406, 14-121-408, 14-121-411, 14-121-412, 14-121-42214-121-432, 14-121-44014-121-442, 14-121-80214-121-805, and 14-121-808.

Acts 1927, No. 109, § 5, provided, in part, for the severability of the act.

14-120-113. Delinquent levies.

      1. A county collector may certify all delinquent levies to a drainage or levee improvement district for collection after January 1 of each year.
      2. The county collector shall maintain a list of all certified delinquent levies of a drainage or levee improvement district.
      1. A county collector shall accept payment of a delinquent levy after certification to a drainage or levee improvement district if the payor is paying:
        1. In person; and
        2. By separate check from the payment of ad valorem taxes.
      2. The county collector may:
        1. Forward the certified delinquent levy list to the drainage or levee improvement district for collection; or
          1. Forward the certified delinquent levy list in the drainage or levee improvement district to the Commissioner of State Lands for delinquency procedures under § 26-37-101 et seq.
          2. The certified delinquent levy list under subdivision (a)(1)(B) of this section may only be forwarded to the Commissioner of State Lands if the parcel for which the delinquent levy is owed is also certified for nonpayment of ad valorem taxes.
        1. The county collector is not required to provide a receipt for the payment of the delinquent levy.
        2. The payor is responsible for obtaining a receipt for payment of the delinquent levy from the drainage or levee improvement district.
  1. A county collector who collects and remits delinquent levies to the drainage or levee improvement district after certification under subdivision (a)(2)(B)(i) of this section shall impose penalties against the payor on behalf of the drainage or levee improvement district under § 14-120-229.

History. Acts 2013, No. 1186, § 1.

Subchapter 2 — Agreements with United States Generally

Preambles. Acts 1937, No. 67 contained a preamble which read:

“Whereas, the United States of America, under and by virtue of the several acts of Congress, has authorized, and may hereafter authorize, the Secretary of War and the Chief of Engineers of the United States Army to execute plans and projects for the control of the excess floodwater of the Mississippi River and its tributaries; and

“Whereas, it was desirable that the state, levee and drainage districts, and other political subdivisions thereof, cooperate with the federal government and its agencies in the execution of said plans and projects in order to obtain and receive the benefits to be derived from the construction of said flood control works….”

Acts 1949, No. 249 contained a preamble which read:

“(a) To authorize and empower them to make and execute any and all necessary and proper contracts with the United States of America, the Secretary of the Army, the Chief of Engineers of the United States Army, or any other Federal agency, to enable them to comply with obligations and requirements heretofore imposed, or which may be hereafter imposed, on them by the United States of America, by law or under contract, in order that they may obtain and derive benefits which will accrue to such districts as a result of the construction of projects by the Federal Government designed to control the flood waters of the Mississippi River and its tributaries, and,

“(b) To authorize and empower them to acquire by grant, donation, purchase, and right of eminent domain, rights of way, flowage and storage rights for the construction of levees, channel rectification, drainage canals, floodways, flood gates, pumping plants, reservoirs, spillways and diversions, and spoil disposal areas, and,

“(c) To authorize and empower them to levy such an assessment of benefits on and against the lands, town lots, blocks, railroads and tramroads, telegraph and telephone lines and electric power lines, and all other real property, of whatsoever kind or character, situate within the boundaries of any such district, as the board of assessors thereof may deem reasonable and commensurate with the increase in value or betterment, which annually accrue to such lands, town lots, blocks, railroads and tramroads, telegraph and telephone lines and electric power lines, and all other real property of whatsoever kind or character, situate within the boundaries of any such district, by reason of the construction of flood control works which may be hereafter done by the United States of America within the boundaries of said district, and the perpetual operation and maintenance of such flood control works by the district, and,

“(d) To levy annually a tax not to exceed five per cent [5%] on such increased value, or betterment, which tax shall constitute a lien on the real property on which the assessment of benefits hereinbefore referred to be laid, and provide means for the collection and enforcement of payment thereof, and,

“(e) To borrow such sum of money as may be necessary to enable them to execute and fully perform any and all obligations imposed upon, and assumed by them, under any contracts made in furtherance of the construction of, and the perpetual operation and maintenance of, flood control works which may hereafter be constructed by the United States of America within the boundaries of such districts; and for such purposes, and to that end, to issue negotiable bonds, and to pledge as security for the prompt and due payment thereof, and the interest to accrue thereon, assessment of benefits and the revenues to be derived by such districts under this Act, in whole or in part, as to the board of directors of any such district may be deemed expedient, and,

“(f) For other purposes.

“(1) Whereas, under resolutions heretofore adopted, or which may be hereafter adopted, by the Congress of the United States, the Secretary of Army has been, or may hereafter be, authorized and directed to cause to be made preliminary examinations and surveys for flood control and allied purposes, including channel and major drainage improvements of the Mississippi River and the tributaries thereof, and,

“(2) Whereas, certain of said preliminary examinations and surveys so heretofore authorized and directed have been, or may hereafter be completed, and the Chief of Engineers of the United States Army has filed, or may hereafter file, the report required of him thereon; and plans for the construction of projects ancillary to, and in aid of, levee, drainage and other flood control works heretofore done by the United States of America on the Mississippi River and the tributaries thereof, have been, or may hereafter be approved, adopted and authorized to be done by the United States of America, and,

“(3) Whereas, the projects heretofore adopted and authorized, or those which may be hereafter adopted and authorized, provide for the construction of levees along the Mississippi River and the tributaries thereof; the construction of levees, dams, floodways, drainage canals, reservoirs, channel rectifications, and other flood control and drainage works in the particular area lying wholly, or in part, within the boundaries of levee, or drainage, or levee and drainage districts situate in this State, and,

“(4) Whereas, the United States of America will not undertake to construct, nor construct, the flood control and drainage works provided for in the projects heretofore adopted and authorized, or projects which may be hereafter adopted and authorized, unless and until a responsible local agency has given assurances satisfactory to the Secretary of the Army that it will (a) provide, without cost to the United States of America, all lands, easements and rights of way necessary for the construction of any of such projects, and (b) hold and save the United States of America free from damage due to the construction works, and (c) maintain and operate the works so constructed, after completion in accordance with regulations prescribed by the Secretary of the Army, and,

“(5) Whereas, such flood control and drainage works to be so constructed will lie, either wholly or in part, within the boundaries of a particular levee, or drainage, or levee and drainage district, and, when completed and thereafter perpetually operated and maintained by a district designated in the manner required by the Secretary of the Army, will greatly benefit and increase the value of lands, town lots, blocks, railroads and tramroads, telegraph and telephone lines and electric power lines, and other real property lying within the boundaries of the levee, drainage, or levee and drainage district in which such flood control works are constructed, and,

“(6) Whereas, it is the sense of the General Assembly, and is hereby legislatively declared and determined, that by reason of the benefit and increased value that will accrue to lands, town lots, blocks, railroads and tramroads, telegraph and telephone lines and electric power lines, and other real property, lying within the boundaries of any such levee, or drainage, or levee and drainage district, as the result of the construction of such flood control and drainage works by the United States of America and the perpetual operation and maintenance of such works by such district, it is desirable that such flood control and drainage works be constructed and perpetually operated and maintained, and,

“(7) Whereas, it is further found and legislatively declared and determined that where the construction of such flood control and drainage works will be done within the boundaries of an area located within the boundaries of a presently existing levee district, wherein there presently exists other levee districts and drainage districts of a smaller area, the levee district containing the greater area should be the responsible local agency to cooperate with the United States of America; and that for such purposes, and in order to accomplish that result, the Board of Directors of such levee, or drainage, or levee and drainage district, should be empowered and authorized to enter into any and all necessary and proper contracts with the United States of America, the Secretary of the Army, the Chief of Engineers of the United States Army, or any other Federal agency, in order to comply with the provisions of all laws and requirements of the United States of America with respect to the Construction and perpetual operation and maintenance of such flood control and drainage works, all to the end that said flood control and drainage works be constructed and thereafter perpetually operated and maintained by such district, as may be required by the Secretary of the Army….”

Effective Dates. Acts 1937, No. 67, § 8: approved Feb. 10, 1937. Emergency clause provided: “It is ascertained and hereby declared that the provisions of this act are necessary to aid the levee or drainage districts, or levee and drainage districts, of this state to obtain and receive the benefits of national flood control legislation to protect the people and properties of this state from floods along the Mississippi River and its tributaries, and this act being necessary for the protection of the public health and safety of the people of this state, an emergency is therefore declared, and this act shall take effect and be in force from and after its passage.”

Acts 1949, No. 249, § 26: effective on passage.

Acts 1959, No. 86, § 2: Feb. 20, 1959. Emergency clause provided: “The General Assembly hereby finds and determines that the laws of this state are not clear as to the method of apportionment of operating costs between projects sponsored by levee and drainage districts which sponsor two or more projects; that because of such uncertainty many levee and drainage districts are unable to properly apportion the cost of operation between the various projects; and, that only by the immediate passage of this Act may said situation be corrected. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1995, No. 264, § 6: Feb. 13, 1995. Emergency clause provided: “It is hereby found and determined by the General Assembly that the law pertaining to drainage and levee districts should be expanded to authorize the districts within the Red River basin to sponsor construction and maintain, repair, restore, and/or realign levees, revetments, realignments and other associated flood protection improvements and to authorize districts to grant, undertake and carry out assurances of local cooperation and to acquire and make available rights-of-way incident to the prosecution of such works of public improvement which are located outside the boundaries of the districts in order to allow the districts to give assurances to the Corps of Engineers that such improvements will be maintained by the districts; that until such authority is granted, the Corps of Engineers projects located outside a drainage or levee district may be in jeopardy; and that this act should go into effect immediately in order to persuade the Corps of Engineers to continue with revetment projects located outside the boundaries of any levee or drainage district. Therefore, an emergency is hereby declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall be in full force and effect from and after its passage and approval.”

Acts 2009, No. 1480, § 117: Apr. 10, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act makes various revisions to Arkansas election laws that are designed to improve the administration of elections and special elections and that these revisions should be implemented as soon as possible so that the citizens of this state may benefit from improved election procedures. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

14-120-201. Legislative intent.

  1. It is found and declared as a matter of legislative determination that the construction of flood control and drainage works by the United States of America, provided in any project which it has heretofore adopted and authorized or any project which it may hereafter adopt and authorize, and the perpetual operation and maintenance thereof as directed by the Secretary of the Army will be conducive to the public welfare and will result in great betterment and increase in value of lands, town lots, blocks, railroads and tramroads, telegraph and telephone lines and electric power lines, and all other real property situate within the boundaries of the district wherein the flood control and drainage works may be constructed by the United States of America.
  2. For the purpose of this subchapter, the amount of the increased value or betterment to such lands, town lots, blocks, railroads and tramroads, telegraph and telephone lines and electric power lines, and all other real property lying within the boundaries of the district, which is estimated to accrue to the property by reason of the construction of the flood control and drainage works provided for in any such adopted and authorized project, and the costs of perpetual operation and maintenance thereof, shall be ascertained and definitely determined and fixed in the manner provided in §§ 14-120-221 and 14-120-222.

History. Acts 1937, No. 67, § 8, as added by Acts 1949, No. 249, § 8; A.S.A. 1947, § 21-809.1.

14-120-202. Definition.

As used in this subchapter, unless the context otherwise requires, “board of directors” shall include the board of commissioners or other governing body of a district, as the case may be.

History. Acts 1937, No. 67, § 24, as added by Acts 1949, No. 249, § 8; A.S.A. 1947, § 21-809.17.

14-120-203. Construction.

  1. This subchapter shall be liberally construed and applied to enable levee districts, or drainage districts, or levee and drainage districts to cooperate with the United States of America, or any agents or agency thereof, with respect to the making of contracts or agreements, and the performance of the obligations and requirements thereby imposed, relating to the construction of flood control and drainage works within the boundaries of any such district by the United States of America which are designed to control the floodwaters of the Mississippi River and its tributaries.
  2. Districts located within the Red River basin are empowered to cooperate with the United States of America, or any agents or agencies thereof, with respect to the making of contracts or agreements, and the performance of the obligation and requirements thereby imposed, relating to the construction and maintenance of levees, revetments, realignments and other flood protection works located outside the boundaries of the district.
  3. It is the legislative intent that all provisions of this subchapter shall be liberally and reasonably construed so as to give them full force and effect to the end that the purposes and objectives of this subchapter are fully and expeditiously accomplished.

History. Acts 1937, No. 67, § 6; 1937, No. 67, § 25, as added by Acts 1949, No. 249, § 8; Pope's Dig., § 4601; Acts 1949, No. 249, § 6; A.S.A. 1947, §§ 21-809, 21-809.18; Acts 1995, No. 264, § 1.

Amendments. The 1995 amendment deleted the comma following “America” in (a); and inserted present (b), redesignating former (b) as (c).

14-120-204. Subchapter cumulative.

This subchapter shall be construed to be cumulative to existing laws, except as to those sections herein expressly amended or repealed. This subchapter shall not repeal Acts 1909, No. 279, and the amendments thereto, nor § 14-121-801, and amendments thereto, but shall be considered an alternative plan to that provided in § 14-121-801.

History. Acts 1937, No. 67, § 22, as added by Acts 1949, No. 249, § 8; A.S.A. 1947, § 21-809.15.

Publisher's Notes. Acts 1909, No. 279, referred to in this section, is codified as §§ 14-121-101, 14-121-102, 14-121-104, 14-121-105, 14-121-20114-121-205, 14-121-207, 14-121-301, 14-121-304, 14-121-305, 14-121-307, 14-121-310, 14-121-311, 14-121-313, 14-121-40114-121-406, 14-121-408, 14-121-411, 14-121-412, 14-121-42214-121-432, 14-121-44014-121-442, 14-121-80214-121-805, and 14-121-808.

14-120-205. Conditions precedent to conferring powers on districts — In general.

No levee district or drainage district, or levee and drainage district, lying in one (1) or more counties, coming within the provisions of this subchapter shall exercise any of the powers conferred by this subchapter or be subject to any of the obligations and duties thereof until the provisions of §§ 14-120-20614-120-215 have been complied with.

History. Acts 1937, No. 67, § 23, as added by Acts 1949, No. 249, § 8; A.S.A. 1947, § 21-809.16.

14-120-206. Filing project outline and estimate.

  1. An outline of the project insofar as it affects the district and as adopted by the Congress of the United States must be filed in the office of the district and made available for inspection by any interested parties.
  2. There must also be filed with the outline an estimate prepared by the engineer of the district showing the total approximate cost of the project which the district will be required to pay in the event the district exercises the authority conferred by this subchapter with respect to the project. However, if the district does not have a regularly retained engineer, the district may employ a competent engineer to prepare and file the estimate, and, in that event, the district may pay reasonable compensation to the engineer so employed.
  3. Notice of the filing of the outline and estimate shall be given in each county of the district by publication of a notice for at least one (1) insertion in a newspaper published and having a bona fide circulation in each of the counties of the district.

History. Acts 1937, No. 67, § 23, as added by Acts 1949, No. 249, § 8; A.S.A. 1947, § 21-809.16.

14-120-207. Board approval of proposal.

The board of directors of the district shall approve the proposed project insofar as it affects the particular district by a proper resolution to that effect which has been adopted by two-thirds (2/3) of the members of the board of directors of the particular district.

History. Acts 1937, No. 67, § 23, as added by Acts 1949, No. 249, § 8; A.S.A. 1947, § 21-809.16.

14-120-208. Approval election generally.

An election must be held in each county of the district in the manner provided in this subchapter. A majority of the landowners of the district voting at this election shall approve the project according to the outline which was filed with the district and shall authorize the directors of the district to exercise the powers conferred on the district by this subchapter with respect to the project.

History. Acts 1937, No. 67, § 23, as added by Acts 1949, No. 249, § 8; A.S.A. 1947, § 21-809.16.

14-120-209. Date of election.

The election shall be held on a date to be fixed by the directors of the drainage and levee improvement district at a special meeting called for that purpose in accordance with § 7-11-201 et seq. However, the date of the election shall be not less than sixty (60) days nor more than one hundred eighty (180) days next succeeding the date of the first publication of the notice of the filing of the outline of the project with the district as provided in § 14-120-206(c).

History. Acts 1937, No. 67, § 23, as added by Acts 1949, No. 249, § 8; A.S.A. 1947, § 21-809.16; Acts 2005, No. 2145, § 43; 2007, No. 1049, § 64; 2009, No. 1480, § 83.

Amendments. The 2005 amendment added (b).

The 2009 amendment substituted “§ 7-11-201 et seq.” for “§ 7-5-103(b)” in the first sentence.

14-120-210. Notice of election.

  1. Notice of the election shall be given by the secretary of the district, not less than thirty (30) days prior to the date fixed for the election, by publication of a notice for at least two (2) consecutive weekly insertions in a newspaper published and having a bona fide circulation in each of the counties within the district.
  2. The voting places in each county shall be designated by the board of directors of the district, and there shall be not less than two (2) voting places in each county of the district.
  3. The notice of election shall be in substantially the following form:
  4. The notice shall be dated and signed by the secretary of the district. All persons of legal age owning lands within the boundaries of the particular district on the date of the election shall be entitled to vote at the election.
  5. Any corporation owning land within the boundaries of the district shall be permitted to vote at the election in the following manner:
    1. The board of directors of the corporation shall adopt a resolution designating some person to vote for it at the election, and the person so designated shall be entitled to cast one (1) vote at the election for the corporation he represents by filing with the judges of the election a certified copy of the resolution; and
    2. The judges shall return the resolution to the board of directors of the district with the ballots from the election as provided in this subchapter.
  6. No landowner or corporation shall cast more than one (1) vote at any such election.

“NOTICE OF SPECIAL ELECTION Notice is hereby given that a special election will be held in County, Arkansas, on the day of , 19 , for the purpose of determining whether the Board of Directors of District shall be authorized to cooperate with the United States Government in the execution of a certain project for the construction of levees, drains, floodways, drainage canals, reservoirs, channel rectifications, and other flood control and drainage works within the boundaries of the District according to the outline of the plan for such project which was filed in the office of the District on the day of , 19 , and whether the Board of Directors of the District shall be authorized to exercise with respect to the project the powers conferred on the District under the provisions of Act No. of the Acts of the General Assembly of Arkansas for 1949 which became effective on the day of , 1949. The voting places in County, Arkansas, for the election aforesaid shall be as follows: (Here will be inserted the various voting places of the county in which the particular notice is published.)”

Click to view form.

History. Acts 1937, No. 67, § 23, as added by Acts 1949, No. 249, § 8; A.S.A. 1947, § 21-809.16.

14-120-211. Election judges and clerks.

At the request of the secretary of the district, the judges and clerks for the election shall be designated by the election commissioners of the respective counties in which the election is held. The election officials shall be in the same number, have the same qualifications, and shall be entitled to the same compensation as provided by law for the conduct of general elections in this state.

History. Acts 1937, No. 67, § 23, as added by Acts 1949, No. 249, § 8; A.S.A. 1947, § 21-809.16.

14-120-212. Ballots.

  1. The ballots for the election in the respective counties shall be prepared and distributed to the election officials by, or under the supervision of, the secretary of the district.
  2. The ballot to be used at the election need not be in duplicate and shall be in substantially the following form:

“BALLOT “(Special election held on the day of , 19 ) “The purpose of this election is to determine whether the Board of Directors of District shall be authorized to cooperate with the United States Government in the execution of a certain project for the construction of levees, drains, floodways, drainage canals, reservoirs, channel rectifications, and other flood control and drainage works within the boundaries of the District according to the outline of the plan for such project which was filed in the office of the District on the day of , 19 , and whether the Board of Directors of the District shall be authorized to exercise with respect to the aforesaid project the powers conferred on the District under the provisions of Act of the Acts of the General Assembly of Arkansas for 1949 which became effective on the day of , 1949. “FOR APPROVAL OF PLAN AND EXERCISE OF AUTHORITY CONFERRED BY THIS ACT. “AGAINST APPROVAL OF PLAN AND EXERCISE OF AUTHORITY CONFERRED BY THIS ACT.”

Click to view form.

History. Acts 1937, No. 67, § 23, as added by Acts 1949, No. 249, § 8; A.S.A. 1947, § 21-809.16.

14-120-213. Voting — Certification of results.

  1. The voting places shall be open between the hours of 8:00 a.m. 6:00 p.m. on the date of the election.
  2. Upon the closing of the voting places, the ballots shall be canvassed and the result of the election certified by the judges and clerks of the election at each voting place as expeditiously as possible.
  3. The certificate of the results of the election shall be signed by the judges and clerks at each voting place and the certificate, together with the original ballots cast at the election, shall be delivered not later than two (2) days after the date of the election by the judges holding the election, or by any one of them designated for that purpose, to the secretary of the district who shall keep and preserve the original ballots in a safe place for the time and for the purposes hereinafter set forth.
  4. A true copy of the certificate of the results of the election signed by the judges and clerks in each county shall be filed and recorded in the office of the county clerk of the respective counties.
  5. The ballots may be destroyed under the direction of the board of directors of the district at any time after six (6) months from the date of the election unless otherwise ordered by a court of competent jurisdiction.

History. Acts 1937, No. 67, § 23, as added by Acts 1949, No. 249, § 8; A.S.A. 1947, § 21-809.16.

14-120-214. Canvass of results — Judicial review.

  1. Within twenty (20) days after the certification of the election and when the ballots from each county have been delivered to the secretary of the district as provided in this subchapter, the board of directors of the district shall meet at the office of the district and canvass the results of the election in each county.
  2. Notice of the meeting shall specify its date and purpose and shall be published for two (2) consecutive weekly insertions in some newspaper published and having a bona fide circulation in each county of the district.
  3. The meeting shall be open to the public. At that meeting any landowner of the district may challenge in writing the certificate of results of the election from any one (1) or more counties of the district and submit evidence in support thereof.
  4. The district shall furnish a stenographer who shall take and transcribe all the testimony introduced before the board.
  5. The board shall keep a true and perfect record of its proceedings at the meeting which shall be filed as a public record in the office of the district.
  6. A copy of the record, certified by the secretary of the district, shall be competent evidence in all courts of this state.
  7. After consideration of all challenges, if any, the board of directors shall, by proper resolution duly adopted by the board of directors, declare the result of the election.
  8. Any landowner aggrieved by the finding of the board as to the results of the election may have such finding reviewed by the chancery court of any county in the district. The appeal shall be perfected in thirty (30) days. The review shall be heard by the court on the evidence introduced before the board of directors at the meeting referred to in this section. No additional or different evidence shall be admissible except on an issue of corrupt purpose or fraudulent action on the part of the board of directors in canvassing and declaring the results of the election. Appeals to the Supreme Court shall be perfected in thirty (30) days.

History. Acts 1937, No. 67, § 23, as added by Acts 1949, No. 249, § 8; A.S.A. 1947, § 21-809.16.

14-120-215. Majority vote — Payment of expenses.

  1. No powers shall be exercised by the district under the provisions of this subchapter nor shall any obligations be incurred or assumed by the district under the provisions of this subchapter unless, after canvass of the results of the election, the board of directors of the district shall have found and declared in the manner provided in this subchapter that a majority of all of the landowners in the district voting at the election have voted for the approval of the plan and the exercise of the authority conferred by this subchapter.
  2. However, the expenses of the election and the compensation paid as provided in this subchapter for the preparation of the estimate of cost to the district may be paid by the district out of any funds of the district which may be available for that purpose.
  3. Further, any expenses incurred by the district in connection with the election and the preparation of the engineer's estimate of cost to the district as provided in this subchapter shall be refunded to the district out of the proceeds of any bonds sold by the district pursuant to the provisions of this subchapter.
  4. No more than one (1) election as herein provided shall be held in any one (1) year.

History. Acts 1937, No. 67, § 23, as added by Acts 1949, No. 249, § 8; A.S.A. 1947, § 21-809.16.

14-120-216. Contract authority.

The board of directors of any levee district, drainage district, or any levee and drainage district in this state is authorized and empowered to make and execute any and all necessary and proper contracts with the United States Army Corps of Engineers or any other federal agency to the end that:

  1. The district will provide the lands, rights-of-way, and easements necessary by purchase, lease, donation, condemnation, or otherwise for the construction, maintenance, repair, realignment, and/or restoration of the works of improvement of any flood control or drainage project of the Mississippi River and its tributaries which heretofore has been adopted and authorized, or any such project which may be adopted and authorized by the United States of America, and the cost thereof paid by the board of directors of the district;
  2. The district will hold and save the United States of America free from damages due to the construction of any such flood control and drainage works;
  3. The district will perpetually maintain and operate the flood control and drainage works, after completion thereof, in accordance with regulations prescribed by the United States Army Corps of Engineers or other federal agency; and
  4. The district will provide any and all additional local assurances required of the district by the United States Army Corps of Engineers or other federal agency.

History. Acts 1937, No. 67, § 1; Pope's Dig., § 4596; Acts 1949, No. 249, § 1; A.S.A. 1947, § 21-804; Acts 1995, No. 264, § 2.

Amendments. The 1995 amendment substituted “United States Army Corps of Engineers” for “United States of America, the Secretary of the Army, the Chief of Engineers of the United States Army” in the first paragraph; rewrote (1); substituted “will hold” for “shall hold” in (2); substituted “United States Army Corps of Engineers or other federal agency” for “Secretary of the Army” in (3); and added (4).

Case Notes

Rights-of-Way.

This section confers authority upon drainage and levee districts to make contracts by which federal government is to construct essential levees to protect drainage projects, but drainage districts are to acquire all necessary rights-of-way for the levees and pay incidental damages arising out of their construction; and district has the right to use its surplus tax collection and revenues for the purchase of rights-of-way for the federal control projects without obtaining authority so to do from the county court. Drainage Dist. No. 18, Craighead County v. Cornish, 198 Ark. 857, 131 S.W.2d 938 (1939).

14-120-217. Board authority to acquire land — Condemnation.

  1. In order to discharge its obligations under any contract or agreement authorized to be made by the provisions of § 14-120-216, the board of directors of any levee district or drainage district, or levee and drainage district, is authorized and empowered to:
    1. Enter upon, take, and hold any lands, interests, or servitude therein, whether by purchase, grant, donation, devise, or otherwise, that may be declared necessary and proper by the Chief of Engineers of the United States Army for the location, construction, operation, repair, or the maintenance of any levee, channel rectification, drainage canal, floodway, reservoir, spillway, or diversion contemplated to be constructed by the United States of America, and thereafter to be perpetually operated and maintained by that district, as provided in any project heretofore adopted and authorized, or in any project which may be hereafter adopted and authorized; and
    2. Take, hold, and acquire flowage and storage rights and servitudes upon, over, and across any land which may be necessary and incident to the construction, operation, repair, and maintenance of any necessary levee, floodway, channel rectification, reservoir, drainage canal, spillway, or diversion.
  2. In order that the rights, easements, and servitudes conferred may be acquired, the board of directors of the district is given authority and power to condemn lands or interest therein for such purposes, and the authority and power to exercise the rights of eminent domain.
  3. Condemnation proceedings therefor shall be instituted and conducted in the manner as is now provided in §§ 18-15-1001 — 18-15-1010. Further damages shall be paid for any easement or flowage right or increased use or servitude on any lands by reason of increasing the amount or depth of water on the lands regardless of whether the lands are protected or unprotected by levees, and these damages shall be in addition to damages set out in §§ 18-15-1001 — 18-15-1010.
  4. Any action for taking or damaging property as provided in this section or in §§ 18-15-1001 — 18-15-1010 shall be commenced within five (5) years from the time the cause of action accrues.

History. Acts 1937, No. 67, § 2; Pope's Dig., § 4597; Acts 1949, No. 249, § 2; A.S.A. 1947, § 21-805.

Case Notes

Damages.

In condemnation cases, the landowner is limited to five items of damage: (1) the fair market value of the land appropriated, (2) damage which the construction of the levee will cause by the obstruction of natural drainage, (3) inconvenience of passing over the levee, ditch, drain, or canal, (4) the value of crop and houses on the right-of-way injured or destroyed, and (5) damages shall be paid for any easement or flowage right or increased use or servitude. Board of Dirs. v. Morledge, 231 Ark. 815, 332 S.W.2d 822 (1960).

The landowner is entitled to all the damages which may reasonably flow from the taking of his property, and the chancery court acts properly in ascertaining the total value of the landowner's property before the taking and the total value after the taking, in order to determine the damages. Board of Dirs. v. Morledge, 231 Ark. 815, 332 S.W.2d 822 (1960).

In condemnation cases, the landowner is entitled to recover damages for all property taken or damaged; within such purview is part of the land which will be on one side of the river and part on the other, and the tract which will be practically isolated because of the road when constructed. Board of Dirs. v. Morledge, 231 Ark. 815, 332 S.W.2d 822 (1960).

The landowner is entitled to all elements of damages shown to result from the taking of the land, and floodway damages come within such purview. Board of Dirs. v. Morledge, 231 Ark. 815, 332 S.W.2d 822 (1960).

14-120-218. Conveyance of rights-of-way across state lands.

The Governor and Secretary of State are authorized, empowered, and directed to make and execute any and all necessary and proper contracts, easements, deeds, or other instruments, in writing, giving, granting, and conveying to the board of directors of any such district, to the United States of America, the Secretary of the Army, Chief of Engineers of the United States Army, or any other federal agency rights-of-way for levees, levee foundations, channel rectifications, reservoirs, reservoir sites, drainage canals, and easements for flowage, and storage rights over, upon, and across any lands owned by the state which are necessary and required for the construction of levees, channel rectifications, floodways, reservoirs, spillways, and diversions and drainage canals. However, no such conveyance, contract, donation, or grant shall impair any valid outstanding lien against the lands or any vested private right therein.

History. Acts 1937, No. 67, § 3; Pope's Dig., § 4598; Acts 1949, No. 249, § 3; A.S.A. 1947, § 21-806.

14-120-219. Agreements for construction across highways.

If the construction of the flood control and drainage works contemplated under any project is to be constructed upon, over, and across any highways of this state, the State Highway Commission is authorized, empowered, and directed to make and execute any and all contracts, easements, or other instruments in writing with the board of directors of any such district, the United States, the Secretary of the Army, Chief of Engineers of the United States Army, or any other federal agency for rights-of-way for levees, levee foundations, channel rectifications, reservoirs, reservoir sites, drainage canals, and flowage and storage rights thereon, in conformity with any act of Congress applicable.

History. Acts 1937, No. 67, § 4; Pope's Dig., § 4599; Acts 1949, No. 249, § 4; A.S.A. 1947, § 21-807.

14-120-220. Eminent domain by the United States.

  1. The State of Arkansas agrees:
    1. That the United States of America, the Secretary of the Army of the United States on behalf of the United States, or any of its agencies thereunto legally authorized, be, and each is, fully authorized, empowered, and enabled within this state to exercise the rights of eminent domain and to obtain and acquire property and property rights, flowage rights, rights-of-way and servitudes or easements, or options therefor, in this state, either by voluntary agreements with the owners thereof or by condemnation proceedings under the laws of the United States in pursuance of authority conferred by law in connection with the construction of the works provided for in any such adopted and authorized project; and
    2. Upon the filing of any such condemnation proceedings, the United States shall have the right to take immediate possession thereof to the extent of the interest sought to be acquired and proceed with the construction of flood control and drainage works thereon, as provided in the authorized and adopted project. However, in the event immediate possession is taken as provided in this section, adequate provision shall have been made for the payment of just compensation to the party or parties entitled thereto, and provided further that such condemnation proceedings shall be diligently prosecuted in order that the compensation shall be promptly ascertained and paid.
  2. Nothing contained in this section shall be construed in such manner as to relieve any levee district, drainage district, or levee and drainage district from any liability to the owners of the property taken or damaged, whether condemnation proceedings be instituted by the United States, or by such district, and in any taking by the United States or any of its agencies, the district shall be liable to the property owner for any damages compensable under existing Arkansas law, whether or not it is compensable under the laws of the United States.

History. Acts 1937, No. 67, § 5; Pope's Dig., § 4600; Acts 1949, No. 249,§ 5; A.S.A. 1947, § 21-808.

14-120-221. Board of assessors.

The duly constituted board of assessors of the levee district or drainage district, or levee and drainage district in which the flood control and drainage works may be constructed, which contains within its boundaries lands lying in more than one (1) county and which may hereafter desire to avail itself of the powers and authority and benefits conferred by this subchapter, shall constitute a board of assessors for the purpose of ascertaining, determining, and fixing the increase in value, or betterment, which will annually accrue to the lands, town lots, blocks, railroads and tramroads, telegraph and telephone lines, and electric power lines, and all other real property situated within the boundaries of the district.

History. Acts 1937, No. 67, § 9, as added by Acts 1949, No. 249, § 8; A.S.A. 1947, § 21-809.2.

14-120-222. Assessment roll.

  1. The board of assessors, each for the county it represents, shall make, in a book to be provided by the district for that purpose, a separate assessment of the increased value or betterment, which it is estimated will annually accrue to the lands, town lots, blocks, railroads and tramroads, telegraph and telephone lines, and electric power lines, and other real property within the boundaries of the district by reason of the construction of the flood control and drainage works provided for in the adopted and authorized project and the perpetual operation and maintenance thereof.
  2. The assessment roll shall be made by the assessors of the real property in each county in the following manner:
    1. The lands shall be entered upon the assessment roll in convenient subdivisions, according to the government survey. If the lands may not be definitely described according to the government survey, a metes and bounds description, or any other description by which the lands may be identified, will suffice;
    2. Lots and blocks situated in towns and cities shall be entered upon the assessment roll according to the legal description thereof;
    3. Railroad rights-of-way, including roadbeds, shall be assessed according to the betterment and increase in value and may be assessed per mile;
    4. Telegraph and telephone lines, electric power lines, and all other real property not here enumerated, shall be assessed on the basis of the increase in value, or betterment thereto, in a manner the board of assessors may deem expedient and reasonable;
    5. The value of each separate tract or parcel of property, as estimated prior to the construction of the flood control and drainage works provided for in the adopted and authorized project shall be shown in one (1) column; and the increased value thereof, or betterment thereto, estimated to accrue to it annually by reason of the construction of the flood control and drainage works provided for in the adopted and authorized project, and the perpetual operation and maintenance thereof, shall be shown in another column.

History. Acts 1937, No. 67, § 9, as added by Acts 1949, No. 249, § 8; A.S.A. 1947, § 21-809.2.

14-120-223. Assessment — Time, certification, and filing.

  1. The assessors shall make their assessment in their respective counties at the time they may be directed to do so by the board of directors of the levee district, drainage district, or levee and drainage district.
  2. After each of them shall have completed the assessment for his particular county, he shall certify to it and file it in the office of the board of directors of the district, where it shall be open to public inspection.

History. Acts 1937, No. 67, § 10, as added by Acts 1949, No. 249, § 8; A.S.A. 1947, § 21-809.3.

14-120-224. Board of assessment and equalization.

  1. When the assessments for each county shall have been filed, the president of the district shall call a meeting of the assessors, to be held at the office of the domicile of the district, to sit as a board of assessment and equalization.
  2. Thereupon, the president of the board of directors of the district shall cause a notice of the time and place of the meeting to be published once a week for two (2) consecutive weeks in a newspaper in each county which, or a part of which, is embraced in the levee district, calling on all the land, lot, and other property owners, railroad owners, telegraph, telephone, and electric power line owners, or other property owners who should deem themselves aggrieved by reason of the assessment, to appear, on the day named for the holding of the meeting of the board of assessment and equalization, and present their grievances, to the end that any wrongful or erroneous assessment may be corrected.
  3. After the notice shall have been given, the board of assessment and equalization shall meet at the office of the board of directors at the domicile of the district on the day mentioned in the notice.
  4. They shall select one (1) of their members as a chairman and another as secretary.
  5. A stenographer shall take and transcribe all testimony introduced before the board.
  6. A true and perfect record of its proceedings shall be made and filed as a public record in the office of the district.
  7. They shall hear complaints of property owners who deem themselves aggrieved and shall adjust any errors or wrongful assessments complained of.
  8. They shall compare and equalize their assessments and correct the assessment rolls to conform to the equalization.
  9. Their assessments, as equalized, shall be the assessment of benefits for the purpose of this subchapter, until the next assessment shall be ordered by the board of directors of the district.
  10. In all meetings of the board of assessors for equalizing purposes, a majority thereof shall be sufficient to constitute a quorum for the transaction of business and the equalization of the assessments.
  11. The assessors shall receive for their services compensation as the board of directors of the district may deem commensurate.

History. Acts 1937, No. 67, § 10, as added by Acts 1949, No. 249, § 8; A.S.A. 1947, § 21-809.3.

14-120-225. Chancery court review of assessment.

Any person aggrieved by an assessment made or equalized by the board of assessment and equalization may have the assessment reviewed by the chancery court of the county in which the property is situate, or by the chancery court of the county in which the district has its domicile if the property involved lies in more than one (1) county, by proceeding in the manner provided in §§ 14-124-10914-124-113.

History. Acts 1937, No. 67, § 11, as added by Acts 1949, No. 249, § 8; A.S.A. 1947, § 21-809.4.

14-120-226. Tax levy by board to satisfy certain obligations.

  1. The board of directors of any levee district, drainage district, or levee and drainage district is authorized and empowered, and it is made their duty, to assess and levy annually a tax upon the increased value, or betterment, estimated to accrue, and which will accrue, to lands, town lots, blocks, railroads, and tramroads, telegraph and telephone lines, and electric power lines, and all other real property lying within the boundaries of any such district, by reason of the construction and perpetual maintenance and operation of the flood control and drainage works provided for in any projects heretofore adopted and authorized or any projects which may be hereafter adopted and authorized, for the purpose of enabling the district to comply with the provisions of any contract or agreement that it may make with the United States of America, the Secretary of the Army, the Chief of Engineers of the United States Army, or any other federal agency under which it may obligate itself:
    1. To provide, without cost to the United States, all lands, easements, and rights-of-way necessary for the construction of any adopted and authorized project;
    2. To hold and save the United States free from damages due to the construction of such flood control and drainage works; and
    3. To maintain and operate such flood control and drainage works, after completion, in accordance with regulations prescribed by the Secretary of the Army; and
    4. To perform any and all other requirements which may be imposed on it with respect to the construction of such flood control and drainage works and the perpetual maintenance and operation of those works.
  2. The tax to be so annually levied on the increased value, or betterment, shall not exceed five percent (5%) of the increased value, or betterment, as determined and fixed under the provisions of §§ 14-120-223 and 14-120-224 not to exceed twenty-five cents (25¢) per acre on rural lands.

History. Acts 1937, No. 67, § 12, as added by Acts 1949, No. 249, § 8; A.S.A. 1947, § 21-809.5.

14-120-227. Alternative method of assessment — Reassessment — Vacancies on board.

  1. Any levee district, drainage district, or levee and drainage district in this state, lying in one (1) or more counties which may hereafter avail itself of the benefits and the power and authority conferred by this subchapter, at its election and in the alternative, may have an assessment of benefits made in the manner provided in the law under which it operates. The tax on such assessment of benefits shall be levied in the manner and by the means provided in the law under which it operates, notwithstanding the provisions of §§ 14-120-221 — 14-120-226, and 14-120-228 — 14-120-235 directing:
    1. The manner and method of making the assessment of benefits estimated to accrue to the lands, town lots, blocks, railroads, and tramroads, telegraph and telephone lines, and electric power lines, and other real property situate within the boundaries of the district;
    2. The levy of the annual tax on the assessment of benefits; and
    3. The method of providing for the collection and enforcement of payment thereof.
  2. In any levee district, drainage district, or levee and drainage district, which may hereafter adopt the alternative method provided in this section, the amount of interest which will accrue on bonds authorized to be issued by the district shall be included and added to the tax, but the interest to accrue on account of the issuing of those bonds shall not be construed as a part of the cost of construction in determining whether or not the expenses and cost of making the improvements are or are not equal to or in excess of the benefits assessed.
  3. The landowners in any district which may adopt the alternative method provided in this section shall have the privilege of paying their assessments of benefits in full within thirty (30) days after the assessment becomes final. But all such assessments shall be made payable in installments, so that not more than twenty-five percent (25%) shall be collectible in any one (1) year against the wishes of the landowner. In the event that any landowner avails himself of this indulgence, the deferred installments of the assessed benefits shall bear interest at the rate of six percent (6%) per annum and shall be payable only in installments as levied.
  4. The levy of the assessment may be made by way of proportional amounts of the total assessed benefits, and interest need not be calculated until it is necessary to do so to avoid exceeding the total amount of benefits and interest.
  5. A reassessment of benefits may be made in any district which may adopt the alternative method provided in this section not more often than once a year, and the reassessment shall be made by the commissioners, directors, or assessors, respectively, of the districts as was authorized for the original assessment. The reassessment shall be made in the same form, after the same notice, hearing, and right of appeal as were provided for the original assessment, and with the same time limitation on right of appeal and suits attacking the assessment of benefits as provided for the original assessment of benefits, and installments thereof levied, extended, and collected at the same time, in the same manner, by the same officers, and with the same lien and penalties for delinquencies as were provided for the original assessment.
  6. If in any such district the original assessment of benefits was made by assessors, the board of directors or commissioners of the district shall have the power to fill any vacancies in the board of assessors, or, if in any such district the power of the board of assessors was exhausted on making the original assessment, the board of commissioners or directors of that district shall have the power to appoint a new board of assessors composed of the same number and with the same qualifications as the original board. The new board shall have all powers to make the reassessments herein provided for as were conferred on the original board of assessors.

History. Acts 1937, No. 67, § 13, as added by Acts 1949, No. 249, § 8; A.S.A. 1947, § 21-809.6.

14-120-228. Collectors.

  1. The qualified and acting tax collectors of the levee district, drainage district, or levee and drainage districts which may hereafter avail themselves of the powers, authority, and benefits conferred by this subchapter, are charged with the duty of collecting the annual taxes levied under the provisions of this subchapter.
  2. The collector shall collect the tax herein provided to be levied at the same time and in the same manner as other taxes levied by and for the particular district are collected and shall receive compensation therefor as the board of directors of the district may provide.

History. Acts 1937, No. 67, § 14, as added by Acts 1949, No. 249, § 8; A.S.A. 1947, § 21-809.7.

14-120-229. Penalty for delinquency — Enforcement proceedings generally.

  1. If the annual tax levied as provided in this subchapter is not paid within the time fixed by law for payment of other taxes levied by law for the particular district each year:
    1. A penalty of twenty-five percent (25%) shall at once attach for the delinquency; and
    2. The board of directors of the district shall enforce the collection of the taxes and penalty by a proceeding filed in the chancery court of the county in which the delinquent property is situated.
  2. The court shall give judgment against the delinquent lands, town lots, blocks, railroads and tramroads, telegraph and telephone lines, electric power lines, and other real property situate within the boundaries of the district for the amount of the delinquent taxes, penalty, and interest at the rate of six percent (6%) thereon from the date of delinquency, and all costs of the proceeding, and may include a reasonable attorney fee.
  3. The judgment so rendered by the court shall provide for the sale of the delinquent lands, town lots, blocks, railroads and tramroads, telegraph and telephone lines, and electric power lines, and other real property situate within the boundaries of the district by a commissioner of the court, after advertisement in the manner and form hereinafter set out.
  4. It shall not be necessary that the ownership of the lands, town lots, blocks, railroads and tramroads, telegraph and telephone lines, and electric power lines, and other real property, be alleged in the proceedings.
  5. The judgment so rendered shall be enforced wholly against the lands, town lots, blocks, railroads and tramroads, telegraph and telephone lines, and electric power lines, and other real property, and not against any other property or estate of the owner.
  6. All or any part of the delinquent lands, town lots, blocks, railroads and tramroads, telegraph and telephone lines, electric power lines, and other real property, and the taxes delinquent thereon for one (1) or more years, may be included in one (1) suit for each county, instituted for the collection of the delinquent taxes, penalty, and interest. The proceeding shall be a proceeding in rem.

History. Acts 1937, No. 67, § 14, as added by Acts 1949, No. 249, § 8; A.S.A. 1947, § 21-809.7.

14-120-230. Filing complaint — Notice.

  1. The board of directors of the district shall file its complaint, setting out the list of delinquent lands, town lots, blocks, railroads and tramroads, telegraph and telephone lines, electric power lines, and other real property, each being set opposite the name of the supposed owner and followed by the total amount of taxes and penalty due upon each separate tract thereof.
  2. Thereupon, the clerk of the court shall cause to be published a notice containing the list of lands, town lots, blocks, railroads and tramroads, telegraph and telephone lines, electric power lines, and other real property, with the names of the supposed owners and amounts due, in a weekly newspaper published in the county for four (4) weekly insertions prior to any day of the next term of the chancery court. The notice shall call upon the supposed owners named in the complaint, and all other persons claiming any interest whatever in the lands, town lots, blocks, railroads and tramroads, telegraph and telephone lines, electric power lines, and other real property, to appear and show cause why a decree should not be rendered condemning the lands, town lots, blocks, railroads and tramroads, telegraph and telephone lines, electric power lines, and other real property for sale for the delinquent taxes, interest, penalty, and costs.
  3. The notice may be in the following form:
  4. The published notice may conclude in the following form:

“Board of Directors, District, vs. “Certain Lands. “Any and all persons or corporations having or claiming an interest in any of the following described lands, town lots, blocks, railroads or tramroads, telegraph and telephone lines, and electric power lines are hereby notified that suit is pending in the Chancery Court of County, Arkansas, to enforce the collection of certain levee taxes on the subjoined list of lands, together with the amounts severally due upon each, to wit:”

Click to view form.

Then shall follow a descriptive list of said lands, town lots, blocks, railroads or tramroads, telegraph and telephone lines, electric power lines, and other real property and amounts thereon respectively as aforesaid.

“All persons and corporations interested in said lands, town lots, blocks, railroads or tramroads, telegraph and telephone lines, electric power lines, and other real property, are notified that they are required by law to appear and make defense to said suit or the same will be taken for confessed and judgment final will be entered directing the sale of said lands, town lots, blocks, railroads or tramroads, telegraph and telephone lines, electric power lines, and other real property, and for the purpose of collecting said delinquent levee taxes together with the payment of interest, penalty, and costs allowed by law. “ “Clerk of the Court.”

Click to view form.

History. Acts 1937, No. 67, § 14, as added by Acts 1949, No. 249, § 8; A.S.A. 1947, § 21-809.7.

14-120-231. Trial date — Continuance or dismissal.

  1. The suit shall stand for trial on any day of the first term of court held after the filing of the complaint, provided that four (4) weeks' publication shall have been made as hereinbefore directed before such day of trial unless a continuance is granted for good cause shown, within the discretion of the court.
  2. Continuance may be granted as to part of the delinquent lands, town lots, blocks, railroads and tramroads, telegraph and telephone lines, electric power lines, and other real property, without affecting the disposition finally of other tracts as to which no such continuances are granted.
  3. After the complaint is filed and before a decree is rendered, any person may have the complaint dismissed as to tracts of land, town lots, blocks, railroads and tramroads, telegraph and telephone lines, electric power lines, and other real property, by paying to the clerk of the court the taxes with interest at six percent (6%) per annum thereon from the date they were due and payable, a penalty of twenty-five percent (25%) of the amount of taxes due upon the tract, and all costs of the proceeding attributable to the tract.

History. Acts 1937, No. 67, § 14, as added by Acts 1949, No. 249, § 8; A.S.A. 1947, § 21-809.7.

14-120-232. Trial procedure.

  1. The suit shall be conducted in accordance with the practice and procedure of chancery courts in this state, except as provided in this subchapter. However, no affidavit shall be required for the publication of the notice, and neither attorneys nor guardians ad litem, nor any provision of § 16-65-403 [repealed] shall be required, and the suits may be disposed of on oral testimony, as in proceedings at law.
  2. The provisions of this subchapter shall be liberally construed to give the assessment list the effect of a bona fide mortgage for a valuable consideration and to constitute a first lien upon the lands as against all persons having any claim to, or interest in, the lands.
  3. No informality or irregularity in the levying of the tax or in the description or valuation of the lands shall be held a valid defense to the proceedings.

History. Acts 1937, No. 67, § 14, as added by Acts 1949, No. 249, § 8; A.S.A. 1947, § 21-809.7.

14-120-233. Decree — Sale of real property by commissioner.

  1. If the taxes, interest, penalty, and costs are not paid before the day of the taking of the decree, the court shall:
    1. Enter a decree condemning the lands, town lots, blocks, railroads and tramroads, telegraph and telephone lines, electric power lines, and other real property for sale for the payment of the taxes, interest, penalty, and costs and may include a reasonable attorney fee; and
    2. Appoint a commissioner to make such sale for the satisfaction thereof, upon such notice as the court may direct.
  2. The decree of the court shall direct that:
    1. The sale shall be made to the highest bidder for cash; and
    2. If no person bids the amount of taxes, penalty, interest, and costs, including a reasonable attorney fee, then the board of directors of the district shall be deemed the purchaser thereof and the commissioner shall execute a deed to the district on request.

History. Acts 1937, No. 67, § 14, as added by Acts 1949, No. 249, § 8; A.S.A. 1947, § 21-809.7.

14-120-234. Execution of deed.

  1. It shall be the duty of the commissioner to execute his deed to the purchaser of each separate tract as in other chancery proceedings.
  2. The effect of the commissioner's deed so executed shall be to convey to the purchaser of the lands, town lots, blocks, railroads and tramroads, telegraph and telephone lines, electric power lines, and other real property the title in fee to the real property against all persons.

History. Acts 1937, No. 67, § 14, as added by Acts 1949, No. 249, § 8; A.S.A. 1947, § 21-809.7.

14-120-235. Redemption of property — Vacation of decree.

Notwithstanding the provisions of § 14-120-234, the owner of any lands, town lots, blocks, railroads and tramroads, telegraph and telephone lines, electric power lines, and other real property sold in the manner provided in this subchapter may redeem the property within two (2) years after the date of the sale. Furthermore, the owner of the lands, town lots, blocks, railroads and tramroads, telegraph and telephone lines, electric power lines, and other real property, at any time within three (3) years after the rendition of the final decree, may file his petition in the same court alleging the payment of the taxes on the lands, town lots, blocks, railroads and tramroads, telegraph and telephone lines, electric power lines, and other real property for the years for which they were sold. Upon the establishment of that fact, the court shall vacate and set aside the decree and the deed issued by the commissioner thereunder as to those lands, town lots, blocks, railroads and tramroads, telegraph and telephone lines, electric power lines, and other real property lying within the boundaries of the district.

History. Acts 1937, No. 67, § 14, as added by Acts 1949, No. 249, § 8; A.S.A. 1947, § 21-809.7.

14-120-236. Tributary tax fund.

  1. The moneys derived from the tax levied under the provisions of this subchapter on the increased value, or betterment, which will accrue to the lands, town lots, blocks, railroads and tramroads, telegraph and telephone lines, electric power lines, and other real property, by reason of the construction of the flood control and drainage works provided for in the adopted and authorized project, shall be designated as the tributary tax fund.
  2. These moneys shall be expended for the purposes of:
    1. Paying the principal and interest indebtedness evidenced by bonds or notes issued by the district as provided in this subchapter; and
    2. Enabling the district to comply with the obligations imposed upon, and assumed by, the board of directors in contracts and agreements it makes with the United States of America, the Secretary of the Army, the Chief of Engineers of the United States Army, or any other federal agency with respect to the construction of the flood control and drainage works as provided for in the adopted and authorized project and the perpetual operation and maintenance thereof under regulations prescribed by the Secretary of the Army; and
    3. Payment of administrative and operating expenses incurred by the district in the performance of its obligations hereunder.
  3. The board of directors of the district shall apportion all administrative and operating expenses of the district between the tributary tax fund and the other operating funds of the district in such manner and amounts as the board of directors shall deem reasonable and proper, and shall pay that part of the administrative and operating expenses apportioned to the tributary project from tributary tax funds.

History. Acts 1937, No. 67, § 20 as added by Acts 1949, No. 249, § 8; 1959, No. 86, § 1; A.S.A. 1947, § 21-809.13.

14-120-237. Disbursement of funds on vouchers.

Disbursement of the funds constituting the tributary compliance fund and the tributary tax fund shall be made on vouchers signed by the president and the secretary of the district.

History. Acts 1937, No. 67, § 21, as added by Acts 1949, No. 249, § 8; A.S.A. 1947, § 21-809.14.

14-120-238. Authority to borrow money and issue bonds — Purpose.

For the purpose of enabling the board of directors of any levee district, drainage district, or levee and drainage district, lying in one (1) or more counties, to cooperate with the United States of America and fully perform any and all agreements, contracts, or obligations imposed on and assumed by it in the construction of the flood control and drainage works provided for in any adopted and authorized project, and, more especially, to enable the board of directors of the district to acquire, and pay for, lands, rights-of-way, and easements necessary to the construction of flood control and drainage works, to save and hold harmless the United States of America from any damage arising by the construction of flood control and drainage works, and the obligations which will be imposed on it to perpetually operate and maintain the works after the completion of them, as the Secretary of the Army may, by regulation, require, the board of directors of any such levee district or drainage district, or levee and drainage district, is authorized to borrow money, and to that end may issue negotiable bonds or notes of the district.

History. Acts 1937, No. 67, § 15, as added by Acts 1949, No. 249, § 8; A.S.A. 1947, § 21-809.8.

14-120-239. Issuance of bonds — Interest coupons.

  1. Bonds may be sold and negotiated in any market after due advertisement and may be made callable as the board of directors may direct.
  2. The bonds so issued shall be signed by the president of the board and countersigned by the secretary.
  3. The bonds shall bear interest at a rate not exceeding an average of three and one-half percent (3½%) per annum, over the period of the life of the bonds, represented by semiannual coupons.
  4. The place of payment and the amount of the several installments to be paid each year may be fixed by the board.
  5. The interest coupons shall be authenticated by the lithographed signature of the president of the board.

History. Acts 1937, No. 67, § 15, as added by Acts 1949, No. 249, § 8; A.S.A. 1947, § 21-809.8.

14-120-240. Lithographing and registration of bonds.

  1. The bonds shall be lithographed with such devices for identification and to prevent imitation as the board of directors may think proper.
  2. The secretary shall register the bonds in a book to be kept for that purpose as the bonds are issued, stating therein the date, letter, number, amount and place of payment, to whom issued and sold, of each bond, and shall take a receipt from the person to whom each of the bonds is delivered.
  3. The treasurer of the board shall keep a like register and shall show all bonds paid or taken up by the board. The register shall show when and to whom payment was made, and no bond or coupon paid or taken up by the board shall again be issued, but shall be cancelled by the treasurer and punched with an instrument provided for that purpose.

History. Acts 1937, No. 67, § 16, as added by Acts 1949, No. 249, § 8; A.S.A. 1947, § 21-809.9.

14-120-241. Bonds — Sale prohibitions — Penalty.

    1. It shall be unlawful for the board of directors of any such district, or any officer or member thereof, to sell or dispose of any bonds authorized to be sold under the provisions of this subchapter at any place other than the domicile of the board; to pledge or deposit any bond or coupon issued under the provisions of this subchapter as security for the payment of any borrowed money or any debt or obligation of the board or of any other person, firm, or corporation whatever; to appropriate or to use any money arising from the sale of bonds to any use or purpose whatever other than herein expressly provided for; or to sell or negotiate the bonds at less than par, on the basis of bonds bearing interest at three and one-half percent (3½%) per annum.
    2. The bonds shall be sold at public auction to the highest bidder at the office of the levee district, drainage district, or levee and drainage district after notice of the sale has been published for three (3) consecutive insertions in two (2) or more newspapers having general circulation in the area affected.
    3. It is unlawful for the board of directors to pay directly or indirectly any brokerage fee or fiscal agent's fee or enter into any private contract with any person, firm, or corporation agreeing to sell bonds to the person, firm, or corporation or agreeing to pay a fee to the person, firm, or corporation in the event that the person, firm, or corporation is not the successful bidder.
    4. Any person violating the provisions of subsection (a) of this section shall be deemed guilty of a misdemeanor and shall be subject to a fine of not more than five thousand dollars ($5,000).
  1. No compensation shall be allowed the treasurer of the district, or any other officer or member of the board of directors thereof, either directly or indirectly, for negotiating the sale of the bonds or paying out the proceeds arising from the sale of those bonds.

History. Acts 1937, No. 67, §§ 17, 19, as added by Acts 1949, No. 249, § 8; A.S.A. 1947, §§ 21-809.10, 21-809.12.

14-120-242. Use of revenues for bond payment — Lien.

  1. To secure the due and prompt payment of both principal and interest of any bonds issued under the provisions of this subchapter, the entire revenues, or a fractional part thereof as the board deems expedient and necessary, arising from annual taxes to be levied on the increased value or betterment to accrue to the lands, town lots, blocks, railroads and tramroads, telegraph and telephone lines, electric power lines, and other real property, are pledged.
  2. The board of directors of the district is required to set aside annually from the first revenue collected a sum sufficient in amount to secure and pay the interest on the bonds and the principal thereof, as the interest and principal may become due. Its duty to do so may be enforced by mandamus proceedings.
  3. The principal and interest of the bonds shall be secured by a lien on all the lands, town lots, blocks, railroads and tramroads, telegraph and telephone lines, and electric power lines, and all other real property in the district.
  4. The board of directors may pledge all or any part of the assessment of benefits and its revenues as security for the payment of the principal and interest of the bonds.

History. Acts 1937, No. 67, § 18, as added by Acts 1949, No. 249, § 8; A.S.A. 1947, § 21-809.11.

14-120-243. Nonpayment of bonds — Collection by receiver.

  1. If any bond so issued, or interest coupon thereon, is not paid within six (6) months after its maturity, it shall be the duty of the chancery court of any county within the boundaries of the district, on application of any holder of the bond or interest coupon so overdue, to appoint a receiver to collect the taxes then due and thereafter to become due and which are authorized to be levied under the provisions of this subchapter.
  2. The proceeds of the taxes and collections shall be applied after payment of costs, first, to overdue interest, and then to the payment pro rata of all outstanding bonds issued as provided herein, which are then due and payable. The receiver may be directed by suit to foreclose the lien of the taxes on the lands, town lots, blocks, railroads and tramroads, telegraph and telephone lines, electric power lines, and other real property situate within the boundaries of the district.
  3. The suits so brought by the receiver shall be conducted in all matters as suits by the board of directors, as herein provided, and with like effect. The decrees and deeds therein shall have the same presumptions in their favor.
  4. However, the receiver shall be discharged when all such sums have been paid.

History. Acts 1937, No. 67, § 18, as added by Acts 1949, No. 249, § 8; A.S.A. 1947, § 21-809.11.

14-120-244. Disposition and use of proceeds from bonds.

The proceeds derived from the bonds to be so sold shall be paid to the treasurer of the district and shall be set aside from and not commingled with any other funds of the district, shall be designated tributary compliance funds, and shall be used solely for the purpose of enabling the board of directors of that district to comply with the obligations imposed on and assumed by it in the contracts and agreements made with the United States of America or any other federal agency relating to the construction and perpetual operation and maintenance of the flood control works provided for in the adopted and authorized project.

History. Acts 1937, No. 67, § 15, as added by Acts 1949, No. 249, § 8; A.S.A. 1947, § 21-809.8.

Subchapter 3 — Consolidation of District Duties, Obligations, and Purposes

Effective Dates. Acts 1961, No. 20, § 22: approved Feb. 2, 1961. Emergency clause provided: “It has been found and it is hereby declared by the General Assembly of the State of Arkansas that some levee districts or drainage districts, or levee and drainage districts, have assumed additional obligations and duties in carrying out the provisions of Act 249 of the Acts of the General Assembly of the State of Arkansas for 1949 and Acts amendatory thereof; that such operation as a separate operation from the project for which said districts were originally created places an undue burden on such districts, causes a duplication of work and increases the cost of construction, operation and maintenance; and that the best interests of said districts would be served by the consolidation of the duties, obligations and purposes of said district; for said reasons this Act is hereby declared necessary for the preservation of the public peace, health and safety of such districts and its inhabitants. An emergency, therefore, is declared to exist and this Act shall take effect and be in full force from and after its passage.”

Acts 1981, No. 425, § 54: Mar. 11, 1981. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

14-120-301. Legislative determination.

It is found and declared as a matter of legislative determination that:

  1. The construction, operation, and maintenance of those flood control and drainage projects authorized by subchapter 2 of this chapter, as amended, as a separate operation by a levee district or drainage district, or levee and drainage district, from the project for which the district was originally created places an undue burden on the district, causes a duplication of work, and increases the cost of construction, operation, and maintenance; and
  2. The construction, operation, and maintenance of the projects could best be carried out by consolidation of the flood control or drainage project authorized by subchapter 2 of this chapter, and acts amendatory thereof, with the levee or drainage project, or levee and drainage project for which the district was originally created.

History. Acts 1961, No. 20, § 1; A.S.A. 1947, § 21-839.

14-120-302. Definition.

As used in this chapter, unless the context otherwise requires, “board of directors” includes the board of commissioners or other governing body of a district, as the case may be.

History. Acts 1961, No. 20, § 19; A.S.A. 1947, § 21-857.

14-120-303. Construction.

It is the legislative intent that all provisions of this subchapter shall be liberally and reasonably construed so as to give them full force and effect to the end that the purposes and objectives of this subchapter be fully and expeditiously accomplished.

History. Acts 1961, No. 20, § 20; A.S.A. 1947, § 21-858.

14-120-304. Subchapter cumulative.

This subchapter shall be construed to be cumulative to existing laws relating to levee districts, drainage districts, or levee and drainage districts and shall not repeal any existing law unless the law is in direct conflict herewith. It is the purpose of this subchapter to permit consolidation by any levee district, drainage district, or levee and drainage district of the duties, obligations and purposes for which the district was originally created with those assumed by it under the provisions of subchapter 2 of this chapter and amendments thereto and not to eliminate the method by which levee districts, drainage districts, or levee and drainage districts, may enter contracts with the United States of America, the Secretary of the Army, the Chief of Engineers of the United States Army, or any other federal agency regarding the construction, operation, and maintenance of flood control and drainage works within the district.

History. Acts 1961, No. 20, § 17; A.S.A. 1947, § 21-855.

14-120-305. Construction of levees and drainage works declared conducive to public welfare.

  1. It is found and declared as a matter of legislative determination that the construction of levees, levee foundations, channel rectifications, floodways, reservoirs, spillways, diversions, drainage canals, or other flood control or drainage works by any levee district, drainage district, or levee and drainage district, or by the United States of America, and the perpetual operation and maintenance of the work by the district will be conducive to the public welfare and will result in great betterment and increase in value of lands, town lots, suburban lots, rural lots, industrial tracts, blocks, railroads, tramroads, telegraph, telephone, and electric power lines and underground cables, pipelines, and all other real property and interests in real property situate within the boundaries of the district wherein the levee and other flood control and drainage works may be constructed by the levee district or drainage district, or levee and drainage district, or by the United States of America and operated and maintained by that district.
  2. For the purpose of this subchapter, the amount of the increased value or betterment to the lands, town lots, suburban lots, rural lots, industrial tracts, blocks, railroads, tramroads, telegraph, telephone, and electric power lines and underground cables, pipelines, and all other real property and interests in real property, within the boundaries of the district, which are estimated to accrue thereto by reason of the construction of levee and other flood control and drainage works and the perpetual operation and maintenance thereof, shall be ascertained and definitely determined and fixed in the manner provided in §§ 14-120-313 and 14-120-314.

History. Acts 1961, No. 20, § 7; A.S.A. 1947, § 21-845.

14-120-306. Powers of board of directors.

  1. In order to discharge the obligations for which the district was originally created and those which it assumed under the terms of subchapter 2 of this chapter and acts amendatory thereto, the board of directors of any levee district, or drainage district, or levee and drainage district is authorized and empowered:
    1. To enter upon, take, and hold any lands, or interests or servitudes therein, whether by purchase, grant, donation, devise, or otherwise that may be deemed necessary and proper for the location, construction, operation, repair, or maintenance of any levee, levee foundation, channel rectification, floodway, reservoir, spillway, diversion, drainage canal, or other flood control or drainage works contemplated to be constructed and thereafter to be perpetually operated and maintained by the district; and
    2. To take, hold, and acquire flowage and storage rights and servitudes upon, over, and across any land which may be necessary and incident to the construction, operation, repair, and maintenance of any necessary levee, levee foundation, channel rectification, floodway, reservoir, spillway, diversion, drainage canal, or other flood control or drainage works.
  2. In order that the rights, easements, and servitudes conferred may be acquired, the board of directors of the district is given authority and power to condemn lands or interests therein for such purposes and the authority and power to exercise rights of eminent domain. Condemnation proceedings therefor shall be instituted and conducted in the manner as is now provided in §§ 18-15-1001 — 18-15-1010 and provided further damages shall be paid for any easement or flowage right or increased use or servitude on any lands by reason of increasing the amount or depth of water on those lands regardless of whether the lands are protected or unprotected by levees, and those damages shall be in addition to damages set out in §§ 18-15-1001 — 18-15-1010. Any action for taking of property or damaging property as provided in this subchapter or in §§ 18-15-1001 — 18-15-1010 shall be commenced within five (5) years from the time the cause of action accrues.

History. Acts 1961, No. 20, § 3; A.S.A. 1947, § 21-841.

14-120-307. Conveyance of rights-of-way across state lands.

The Governor and the Secretary of State are authorized, empowered, and directed to make and execute any and all necessary and proper contracts, easements, deeds, or other instruments in writing, giving, granting, and conveying to the board of directors of that district rights-of-way for levees, levee foundations, channel rectifications, floodways, reservoirs, spillways, diversions, drainage canals, or other flood control or drainage works, and easements for flowage and storage rights over, upon, and across any lands owned by the state which are necessary or required for the construction of levees, levee foundations, channel rectifications, floodways, reservoirs, spillways, diversions, drainage canals, or other flood control or drainage works, provided no such conveyance, contract, donation, or grant shall impair any valid outstanding lien against the lands or any vested private right therein.

History. Acts 1961, No. 20, § 4; A.S.A. 1947, § 21-842.

14-120-308. Agreements for construction across highways.

If any levee, flood control, or drainage work contemplated to be done by any district coming within the provisions of this subchapter is to be constructed upon, over, and across any highways, or highway rights-of-way of this state, the State Highway Commission is authorized, empowered, and directed to make and execute any and all contracts, easements, or other instruments in writing with the board of directors of that district for rights-of-way for levees, levee foundations, channel rectifications, floodways, reservoirs, spillways, diversions, drainage canals, or other flood control or drainage works and flowage and storage rights thereon.

History. Acts 1961, No. 20, § 5; A.S.A. 1947, § 21-843.

14-120-309. Eminent domain by the United States.

  1. The State of Arkansas agrees that the United States of America, the Secretary of the Army of the United States on behalf of the United States, or any of its agencies thereunto legally authorized:
    1. Shall be, and each is, fully authorized, empowered, and enabled within this state to exercise the rights of eminent domain and to obtain and acquire property and property rights, flowage rights, rights-of-way, and servitudes or easements, or options therefor, in this state, either by voluntary agreements with the owners thereof or by condemnation proceedings under the laws of the United States in pursuance of authority conferred by law; and
    2. Upon the filing of any condemnation proceedings, shall have the right to take immediate possession of the property to the extent of the interest sought to be acquired, and proceed with the construction of levees, levee foundations, channel rectifications, floodways, reservoirs, spillways, diversions, drainage canals, or other flood control or drainage works thereon. However, in the event immediate possession is taken as herein provided, adequate provision shall be made for the payment of just compensation to the party or parties entitled thereto. Furthermore, those condemnation proceedings shall be diligently prosecuted in order that compensation shall be promptly ascertained and paid.
  2. Nothing contained in this section shall be construed in such manner as to relieve any levee district, drainage district, or levee and drainage district from any liability to the owners of property taken or damaged, whether condemnation proceedings are instituted by the United States, or by such district. In any taking by the United States, or any of its agencies, the district shall be liable to the property owner for any damages compensable under existing Arkansas law, whether or not it is compensable under the laws of the United States.

History. Acts 1961, No. 20, § 6; A.S.A. 1947, § 21-844.

14-120-310. Authority to consolidate.

  1. Any levee district, drainage district, or any levee and drainage district, in this state which has executed or may hereafter execute contracts with the United States of America, the Secretary of the Army, the Chief of Engineers of the United States Army, or any other federal agency may consolidate all duties, obligations, and purposes required to carry out flood control or drainage projects with the duties, obligations, and purposes required of it to carry out the obligations and purposes for which the levee district, drainage district, or levee and drainage district, was originally created, if, by the terms of the contract, the levee district or drainage district, or levee and drainage district, has obligated itself:
    1. To acquire and furnish the lands, rights-of-way, and easements necessary for the construction of any flood control or drainage project by the United States of America within the bounds of the district;
    2. To hold and save the United States of America free from damages due to the construction of any such flood control and drainage works; and
    3. To perpetually maintain and operate the flood control and drainage works after the completion thereof, as provided in subchapter 2 of this chapter, and acts amendatory thereto.
  2. In order to effect the consolidation, the levee district or drainage district, or levee and drainage district, may:
    1. Combine all acts required to operate the projects separately into one (1) operation, may levy and collect one (1) tax for construction, operation, and maintenance of both projects, and may use the funds arising from the tax so levied for the payment of any obligation incurred in the construction, operation, or maintenance of either project;
    2. Cause an assessment of benefits to be made of the benefits arising from the construction, operation, and maintenance of the project for which the district was originally created and those arising from the flood control and drainage project for which the district assumed the sponsorship under the terms of subchapter 2 of this chapter, and acts amendatory thereto.

History. Acts 1961, No. 20, § 2; A.S.A. 1947, § 21-840.

14-120-311. Consolidation procedure.

  1. No levee district, drainage district, or levee and drainage district coming within the provision of this subchapter shall exercise any of their powers conferred by this subchapter or consolidate the construction, operation, and maintenance of the project for which the district was originally created with those of the flood control or drainage project assumed by it under the provision of subchapter 2 of this chapter, and amendments thereto, until:
    1. The board of directors of the district shall have determined by a proper resolution, adopted by two-thirds (2/3) of the members of the board of directors of the district, that the consolidation would be to the best interest of the district and the landowners thereof;
    2. A special meeting of the landowners and bondholders of the district shall have been held at which the question of consolidation shall have been presented and for the purpose of hearing objections to the consolidation.
  2. Notice of the hearing shall be given by the secretary of the district by publication of a notice for at least two (2) consecutive weekly insertions in a newspaper published and having a bona fide circulation in each county within the district. This notice shall state:
    1. The time and place at which the board of directors shall meet for the purpose of hearing objections;
    2. That the meeting shall be open to the public; and
    3. That at such meeting any landowner or bondholder of the district may offer objection to the action of the board in adopting the resolution.
    1. At the time and place specified in the notice, the board of directors shall meet at the office of the district for the purpose of hearing the objections.
    2. The district shall furnish a stenographer who shall take and transcribe all the testimony introduced before the board.
    3. The board shall keep a true and perfect record of its proceedings at the meeting which shall be filed as a public record in the office of the district.
    4. A copy of the record, certified by the secretary of the district, shall be competent evidence in all courts of this state.
    5. After consideration of all objections, if any, the board of directors, by proper resolution duly adopted by two-thirds (2/3) of the members of the board of directors, shall declare its decision regarding consolidation of the district.
    6. Any landowner or bondholder aggrieved by the decision of the board may have the findings reviewed by the circuit court of the county in which the district has its domicile.
    7. The appeal shall be perfected in thirty (30) days.
    8. The review shall be heard by the court on the evidence introduced before the board of directors at the meeting aforesaid, and no additional or different evidence shall be admissible.
    9. Appeals to the Supreme Court from the decision of the circuit court shall be perfected in thirty (30) days.

History. Acts 1961, No. 20, § 18; A.S.A. 1947, § 21-856.

14-120-312. Consolidation and use of assets — Prior liabilities and obligations.

  1. Any levee district, drainage district, or levee and drainage district, which shall consolidate the duties, obligations, and purposes for which it was originally created with those assumed under the provisions of subchapter 2 of this chapter and acts amendatory thereto, shall consolidate all assets held by it arising from either project and shall also assume all liabilities of the district whether created for purposes for which the district was originally created or those assumed by it under the provisions of subchapter 2 of this chapter and acts amendatory thereto.
  2. The assets may be used by the district for any and all purposes now or hereafter authorized by law, and the liabilities of the district may be paid with funds arising from any source.
  3. All the provisions, rights, security, pledges, covenants, and limitations contained in the instrument creating the liability shall not be affected by the consolidation but shall apply with the same force and effect as provided in the original creation of the liability.
  4. All bonds or notes heretofore issued by the levee district, drainage district, or levee and drainage district shall not be affected by this consolidation, but they shall bear the same rate of interest as now provided and shall be due and payable at the time and place provided in the original issue of the bonds or notes.

History. Acts 1961, No. 20, § 16; A.S.A. 1947, § 21-854.

14-120-313. Board of assessors.

The duly constituted board of assessors of the levee district, drainage district, or levee and drainage district, which shall have consolidated the duties, obligations, and purposes required of it by the acts under which it was originally created, and acts amendatory thereto, with the duties, obligations, and purposes required of it to carry out the flood control and drainage operations assumed by it under subchapter 2 of this chapter, and amendments thereto, shall constitute a board of assessors for the purpose of ascertaining, determining, and fixing the increase in value or betterment which will annually accrue to the lands, town lots, suburban lots, rural lots, industrial tracts, blocks, railroads, tramroads, telegraph, telephone, and electric power lines and underground cables, pipelines, and all other real property and interests in real property within the boundaries of the district.

History. Acts 1961, No. 20, § 8; A.S.A. 1947, § 21-846.

14-120-314. Assessment roll.

  1. The board of assessors shall, each for the county he represents, make in a book, to be provided by the district for that purpose, a separate assessment of the increased value or betterment, which it estimates will annually accrue to the lands, town lots, suburban lots, rural lots, industrial tracts, blocks, railroads, tramroads, telegraph, telephone, and electric power lines and underground cables, pipelines, and all other real property and interests in real property within the boundaries of the district, by reason of the construction of levees and other flood control and drainage works and the perpetual operation and maintenance of these works.
  2. The assessment roll of the property in each county shall be made by the assessors in the following manner:
    1. The lands shall be entered upon the assessment roll in convenient subdivisions according to the government survey. If the lands may not be definitely described according to the government survey, a metes and bounds description, or any other description by which the lands may be identified, will suffice;
    2. Lots and blocks situated in towns and cities shall be entered on the roll according to the legal description thereof;
    3. Suburban lots, rural lots, and industrial tracts shall be entered upon the assessment roll under such description as will properly identify the property involved;
    4. Railroad and tramroad rights-of-way shall be assessed according to the betterment or increase in value and may be assessed per mile;
    5. Telegraph, telephone, and electric power lines and underground cables, pipelines, and all other property, or interests in property not here enumerated, shall be assessed on the basis of the increase in value, or betterment thereto, in a manner the board of assessors may deem expedient and reasonable;
    6. The value of each separate tract or parcel of property as estimated without the levees and other flood control or drainage works shall be shown in one (1) column; the increased value thereof, or betterment thereto, estimated to accrue to it annually by reason of the construction of levees and other flood control and drainage works and the perpetual operation, and maintenance thereof, shall be shown in another column.

History. Acts 1961, No. 20, § 8; A.S.A. 1947, § 21-846.

14-120-315. Assessment — Time, certification, and filing.

  1. The assessors shall make their assessments in their respective counties at such time as they may be directed so to do by the board of directors of the levee district, drainage district, or levee and drainage district.
  2. After each of them shall have completed the assessment for his particular county, he shall certify to it and file it in the office of the board of directors of the district, where it shall be open to public inspection.

History. Acts 1961, No. 20, § 9; A.S.A. 1947, § 21-847.

14-120-316. Board of assessment and equalization.

  1. When the assessments for each county shall have been filed, the president of the board of directors of the district shall call a meeting of the assessors, to be held at the office of the domicile of the district, to sit as a board of assessment and equalization.
  2. The president of the board of directors of the district shall cause a notice of the time and place of the meeting to be published once a week for two (2) consecutive weeks in a newspaper in each county which, or a part of which, is embraced in the levee district, calling on all owners of the lands, town lots, suburban lots, rural lots, industrial tracts, blocks, railroads, tramroads, telegraph, telephone, and electric power lines and underground cables, pipelines, and all other real property and interests in real property who deem themselves aggrieved by reason of the assessment to appear on the day named for the holding of the meeting of the board of assessment and equalization and present their grievances to the end that any wrongful or erroneous assessment may be corrected.
  3. After notice has been given, the board of assessment and equalization shall meet at the office of the board of directors at the domicile of the district on the day mentioned in the notice.
  4. They shall select one (1) of their members as chairman and another as secretary.
  5. A stenographer shall take and transcribe all testimony introduced before the board; and a true and perfect record of its proceedings shall be made and filed as a public record in the office of the district.
  6. They shall hear complaints of property owners who deem themselves aggrieved and shall adjust any errors or wrongful assessments complained of.
  7. They shall compare and equalize their assessments and correct the assessment rolls to conform to this equalization. Their assessments, as equalized, shall be the assessment of benefits for the purpose of this subchapter until the next assessment is made.
  8. In all meetings of the board of assessors for equalization purposes, a majority shall be sufficient to constitute a quorum for the transaction of business and the equalization of the assessments.
  9. The assessors shall receive for their services such compensation as the board of directors of the district may deem commensurate.
  10. The action of the board of directors in ordering an assessment under the terms of this subchapter shall not be deemed to be an abandonment of benefits previously assessed under the provisions of the act creating the district, and acts amendatory thereof, or under subchapter 2 of this chapter and amendments thereto, but the assessments of benefits shall be and remain in full force and effect until the new assessment becomes final. Upon the assessment becoming final, either through action of the board of assessors or on review by a circuit court as provided in this subchapter, the final assessment shall be the assessment of benefits for the district until a new assessment is made.

History. Acts 1961, No. 20, § 9; A.S.A. 1947, § 21-847.

14-120-317. Chancery court review of assessment.

Any person aggrieved by an assessment made or equalized by the board of assessment and equalization may have that assessment reviewed by the chancery court of the county in which the district has its domicile, by proceeding in the manner provided in §§ 14-124-10914-124-113.

History. Acts 1961, No. 20, § 10; A.S.A. 1947, § 21-848.

14-120-318. Annual assessment and levy of tax upon increased value.

For the purpose of enabling any levee district, drainage district, or levee and drainage district to carry out the purposes for which the district was originally created and those assumed by it under the terms of subchapter 2 of this chapter and acts amendatory thereto, the board of directors of the district is authorized and empowered, and it is made their duty, to assess and levy annually a tax upon the increased value or betterment estimated to accrue, and which will accrue, to all lands, town lots, suburban lots, rural lots, industrial tracts, blocks, railroads, tramroads, telegraph, telephone, and electric power lines, and underground cables, pipelines, and all other real property and interests in real property lying within the boundaries of the district by reasons of the construction, perpetual maintenance, and operation of the levees and other flood control and drainage works, the operation and maintenance of which is the duty of the district, provided the tax to be so annually levied on such increased value or betterment shall not exceed five percent (5%) of the increased value, or betterment, as determined and fixed under the provisions of §§ 14-120-315 and 14-120-316 nor twenty-five cents (25¢) per acre on rural lands.

History. Acts 1961, No. 20, § 11; A.S.A. 1947, § 21-849.

Case Notes

“Levy” Construed.

Although no Arkansas cases describe “levy,” Arkansas cases, statutes, and constitution use the word to mean to impose a tax under authority of law. Price v. Drainage Dist. No. 17, 302 Ark. 64, 787 S.W.2d 660 (1990).

14-120-319. Alternative method of assessment — Reassessment.

  1. Any levee district, drainage district, or levee and drainage district in this state, lying in one (1) or more counties, which may hereafter avail itself of the benefits and the power and authority conferred by this subchapter may, at its election and in the alternative, have the assessment of benefits made in the manner provided in the law under which it operates, and the tax on the assessed benefits shall be levied in the manner and by the means provided in the law under which it operates, notwithstanding the provisions of §§ 14-120-313 — 14-120-318 and 14-120-328 — 14-120-332 of this subchapter directing:
    1. The manner and method of making the assessment of benefits estimated to accrue to the lands, town lots, suburban lots, rural lots, industrial tracts, blocks, railroads, tramroads, telegraph, telephone, and electric power lines, and underground cables, pipelines, and all other real property and interests in real property situate within the boundaries of such district;
    2. The levy of the annual tax on the assessment of benefits; and
    3. The method of providing for the collection and enforcement of payment of the tax.
  2. In the levee district, drainage district, or levee and drainage district, which may hereafter adopt the alternative method provided in this section, the amount of interest which will accrue on bonds authorized to be issued by the district shall be included and added to the tax, but the interest to accrue on account of the issuing of the bonds shall not be considered as a part of the cost of construction in determining whether or not the expenses and cost of making the improvements are or are not equal to or in excess of the benefits assessed.
  3. The landowners in any district which may adopt the alternative method provided in this section shall have the privilege of paying their assessments of benefits in full within thirty (30) days after the assessment becomes final. But all such assessments not paid in full shall be made payable in installments, so that not more than twenty-five percent (25%) shall be collectible in any one (1) year against the wishes of the landowner. In the event that any landowner avails himself of this indulgence, the deferred installments of the assessed benefits shall bear interest at the rate of six percent (6%) per annum and shall be payable only in installments as levied. The levy of the assessment may be made by way of proportional amounts of the total assessed benefits. Interest need not be calculated until it is necessary to do so to avoid exceeding the total amount of benefits and interest.
  4. A reassessment of benefits may be made in the district which may adopt the alternative method provided in this section not more often than once a year, and the reassessment shall be made by the commissioners, directors, or assessors, respectively, of the districts as was authorized for the original assessment. The reassessment shall be made in the same form, after the same notice, hearing, and right of appeal as were provided for the original assessment and with the same time limitation on right of appeal and suits attacking the assessment of benefits as provided for the original assessment of benefits. The installments thereof shall be levied, extended, and collected at the same time, in the same manner, by the same officers, and with the same lien and penalties for delinquencies as were provided for the original assessment. If in the district the original assessment of benefits was made by assessors, the board of directors or commissioners of the district shall have the power to fill any vacancies in the board of assessors; or, if in the district the power of the board of assessors was exhausted on making the original assessment, the board of commissioners or directors of the district shall have the power to appoint a new board of assessors composed of the same number and with the same qualifications as the original board. The new board shall have all powers to make the reassessments herein provided for as were conferred on the original board of assessors.

History. Acts 1961, No. 20, § 12; A.S.A. 1947, § 21-850.

Case Notes

“Levy” Construed.

Although no Arkansas cases describe “levy,” Arkansas cases, statutes, and constitution use the word to mean to impose a tax under authority of law. Price v. Drainage Dist. No. 17, 302 Ark. 64, 787 S.W.2d 660 (1990).

14-120-320. Collectors.

  1. The qualified and acting tax collectors of levee districts, drainage districts, or levee and drainage districts which may hereafter avail themselves of the powers, authority and benefits conferred by this subchapter, are charged with the duty of collecting the annual tax levied under the provisions of this subchapter.
  2. The collectors shall collect the tax herein provided to be levied at the same time and in the same manner as is now fixed by law and shall receive compensation therefor as the board of directors of the district may provide.

History. Acts 1961, No. 20, § 13; A.S.A. 1947, § 21-851.

14-120-321. Penalty for delinquency — Enforcement proceedings generally.

  1. If the annual tax levied as provided in this subchapter is not paid within the time fixed by law:
    1. A penalty of twenty-five percent (25%) shall at once attach for the delinquency; and
    2. The board of directors of the district shall enforce the collection of the taxes and penalty by a proceeding filed in the chancery court of the county in which the delinquent property is situated.
  2. The court shall give judgment against the delinquent lands, town lots, suburban lots, rural lots, industrial tracts, blocks, railroads, tramroads, telegraph, telephone, and electric power lines and underground cables, pipelines, and all other real property and interests in real property situate within the boundaries of the district for the amount of the delinquent taxes, penalty and interest at the rate of six percent (6%) per annum from the date of delinquency, and all costs of the proceeding, and may include a reasonable attorney fee.
  3. The judgment so rendered by the court shall provide for the sale of the delinquent lands, town lots, suburban lots, rural lots, industrial tracts, blocks, railroads, tramroads, telegraph, telephone, and electric power lines and underground cables, pipelines, and all other real property and interests in real property situate within the boundaries of the district by a commissioner to be appointed by the court after advertisement in the manner and form set out in this subchapter.
  4. It shall not be necessary that the true ownership of the lands, town lots, suburban lots, rural lots, industrial tracts, blocks, railroads, tramroads, telegraph, telephone, and electric power lines and underground cables, pipelines, and all other real property and interests in real property be alleged in the proceedings.
  5. The judgment so rendered shall be enforced wholly against the lands, town lots, suburban lots, rural lots, industrial tracts, blocks, railroads, tramroads, telegraph, telephone, and electric power lines and underground cables, pipelines, and all other real property and interests in real property and not against any other property or estate of the owner.
  6. All or any part of the delinquent lands, town lots, suburban lots, rural lots, industrial tracts, blocks, railroads, tramroads, telegraph, telephone, and electric power lines, and underground cables, pipelines, and all other real property and interest in real property, and the taxes delinquent thereon for one (1) or more years, may be included in one (1) suit for each county, instituted for the collection of the delinquent taxes, penalty, interest, and costs. The proceeding shall be a proceeding in rem.

History. Acts 1961, No. 20, § 13; 1977, No. 233, § 1; A.S.A. 1947, § 21-851.

14-120-322. Filing complaint of delinquency — Notice.

  1. The board of directors of the district shall file its complaint, setting out the list of delinquent lands, town lots, suburban lots, rural lots, industrial tracts, blocks, railroads, tramroads, telegraph, telephone, and electric power lines and underground cables, pipelines, and all other real property and interests in real property, each being set opposite the name of the supposed owner, as shown by the delinquent lists, and followed by the total amount of taxes and penalty due upon each separate tract thereof.
  2. Thereupon, the clerk of the court shall cause to be published a notice containing the list of lands, town lots, suburban lots, rural lots, industrial tracts, blocks, railroads, tramroads, telegraph, telephone, and electric power lines and underground cables, pipelines, and all other real property and interests in real property with the names of the supposed owners, as shown by the delinquent lists, and amounts due in a newspaper published in the county for two (2) weekly insertions prior to any day of the next term of the chancery court.
  3. The notice shall call upon the supposed owners named in the complaint, and all other persons claiming any interest whatever in lands, town lots, suburban lots, rural lots, industrial tracts, blocks, railroads, tramroads, telegraph, telephone, and electric power lines and underground cables, pipelines, and all other real property and interests in real property to appear and show cause why a decree should not be rendered condemning property for sale for the delinquent taxes, interest, penalty, and costs.
  4. The notice may be in the following form:
  5. The published notice may conclude in the following form:

“Board of Directors, District vs. Certain Lands Any and all persons or corporations having or claiming an interest in any of the following described lands, town lots, suburban lots, rural lots, industrial tracts, blocks, railroads, tramroads, telegraph, telephone, and electric power lines and underground cables, pipelines, and all other real property and interests in real property, are hereby notified that suit is pending in the Chancery Court of County, Arkansas, to enforce the collection of certain taxes on the subjoined list of property, together with the amounts severally due upon each, to wit:”

Click to view form.

(Then shall follow a descriptive list of the lands, town lots, suburban lots, rural lots, industrial tracts, blocks, railroads, tramroads, telegraph, telephone, and electric power lines and underground cables, pipelines, and all other real property and interests in real property and amounts due thereon respectively as aforesaid.)

“All persons and corporations interested in the lands, town lots, suburban lots, rural lots, industrial tracts, blocks, railroads, tramroads, telegraph, telephone, and electric power lines and underground cables, pipelines, and all other real property and interests in real property, are hereby notified that they are required by law to appear and make defense to the suit or the same will be taken for confessed, and judgment final will be entered directing the sale of the lands, town lots, suburban lots, rural lots, industrial tracts, blocks, railroads, tramroads, telegraph, telephone, and electric power lines and underground cables, pipelines, and all other real property and interests in real property, and for the purpose of collecting said delinquent taxes together with the payment of interest, penalty, and costs allowed by law. Clerk of the Court”

Click to view form.

History. Acts 1961, No. 20, § 13; 1977, No. 233, §§ 1, 2; A.S.A. 1947, § 21-851.

14-120-323. Trial date — Continuance or dismissal.

  1. The suit shall stand for trial on any day of the first term of court held after the filing of the complaint, provided that two (2) weeks' publication shall have been made, as directed in this subchapter, before the day of trial, unless a continuance is granted for good cause shown within the discretion of the court.
  2. Continuance may be granted as to part of the delinquent lands, town lots, suburban lots, rural lots, industrial tracts, blocks, railroads, tramroads, telegraph, telephone, and electric power lines and underground cables, pipelines, and all other real property and interests in real property, without affecting the disposition finally of other tracts, as to which no such continuances are granted.
  3. After the complaint is filed and before a decree is rendered, any person may have the complaint dismissed as to tracts of lands, town lots, suburban lots, rural lots, industrial tracts, blocks, railroads, tramroads, telegraph, telephone, and electric power lines and underground cables, pipelines, and all other real property and interests in real property by paying to the clerk of the court the taxes with interest at six percent (6%) per annum thereon from the date they were due and payable, a penalty of twenty-five percent (25%) of the amount of taxes due upon such tract and all costs of the proceeding attributable to the tract.

History. Acts 1961, No. 20, § 13; 1977, No. 233, § 2; A.S.A. 1947, § 21-851.

14-120-324. Trial procedure.

  1. The suit shall be conducted in accordance with the practice and procedure of chancery courts in this state, except as provided in this subchapter. However, no affidavit shall be required for the publication of the notice, and neither attorneys nor guardians ad litem, nor any provision of § 16-65-403 [repealed], shall be required, and the suits may be disposed of on oral testimony, as in proceedings at law.
  2. The provisions of this subchapter shall be liberally construed to give the assessment list the effect of a bona fide mortgage for a valuable consideration and to constitute a first lien upon the property as against all persons having any claim to, or interest in the property.
  3. No informality or irregularity in the levying of the tax or in the description or valuation of the property shall be held a valid defense to the proceedings.

History. Acts 1961, No. 20, § 13; A.S.A. 1947, § 21-851.

14-120-325. Decree — Sale of real property by commissioner.

  1. If the taxes, interest, penalty, and costs are not paid before the day of the taking of the decree, the court shall:
    1. Enter a decree condemning the lands, town lots, suburban lots, rural lots, industrial tracts, blocks, railroads, tramroads, telegraph, telephone, and electric power lines and underground cables, pipelines, and all other real property and interests in real property, for sale for the payment of the taxes, interest, penalty, and costs and may include a reasonable attorney fee; and
    2. Appoint a commissioner to make the sale for the satisfaction thereof, upon such notice as the court may direct.
  2. The decree of the court shall direct that:
    1. The sale be made to the highest bidder for cash; and
    2. If no person bids the amount of taxes, penalty, interest, and costs, and attorney's fee if included, then the board of directors of the district shall be deemed the purchaser thereof and the commissioner shall execute a deed to the district on request.

History. Acts 1961, No. 20, § 13; A.S.A. 1947, § 21-851.

14-120-326. Execution of deed.

  1. It shall be the duty of the commissioner to execute his deed to the purchaser of each separate tract as in other chancery proceedings.
  2. The effect of the commissioner's deed so executed shall be to convey to the purchaser of the lands, town lots, suburban lots, rural lots, industrial tracts, blocks, railroads, tramroads, telegraph, telephone, and electric power lines and underground cables, pipelines, and all other real property and interests in real property the title in fee to the real property and interests in real property against all persons.

History. Acts 1961, No. 20, § 13; A.S.A. 1947, § 21-851.

14-120-327. Redemption of property — Vacation of decree.

Notwithstanding the provisions of § 14-120-326, the owner of any lands, town lots, suburban lots, rural lots, industrial tracts, blocks, railroads, tramroads, telegraph, telephone, and electric power lines and underground cables, pipelines, and all other real property and interests in real property, sold in the manner provided in this subchapter, may redeem the property within two (2) years after the date of the sale. Furthermore, owner of the lands, town lots, suburban lots, rural lots, industrial tracts, blocks, railroads, tramroads, telegraph, telephone, and electric power lines and underground cables, pipelines, and all other real property and interests in real property, at any time within three (3) years after the date of sale, may file his petition in the same court, alleging the payment of the taxes on the lands, town lots, suburban lots, rural lots, industrial tracts, blocks, railroads, tramroads, telegraph, telephone, and electric power lines and underground cables, pipelines, and all other real property and interests in real property, for the years for which they were sold. Upon the establishment of that fact, the court shall vacate and set aside the decree and the deed issued by the commissioner thereunder as to the lands, town lots, suburban lots, rural lots, industrial tracts, blocks, railroads, tramroads, telegraph, telephone, and electric power lines and underground cables, pipelines, and all other real property and interests in real property lying within the boundaries of the district.

History. Acts 1961, No. 20, § 13; A.S.A. 1947, § 21-851.

14-120-328. Authority to borrow money and issue bonds — Purpose.

For the purpose of enabling the board of directors of any levee district, drainage district, or levee and drainage district to carry out the obligations imposed upon it by the act under which it was originally created and the obligations assumed by it for flood control and drainage works under the provisions of subchapter 2 of this chapter and amendments thereto, the board of directors of the levee district, drainage district, or levee and drainage district is authorized to borrow money and to that end may issue negotiable bonds or notes of the district.

History. Acts 1961, No. 20, § 14; 1981, No. 425, § 27; A.S.A. 1947, § 21-852.

14-120-329. Sale of bonds — Interest coupons.

  1. Bonds or notes may be sold and negotiated in any market, either at public or private sale, and may be made callable.
  2. The terms of sale, the rate of interest, and other conditions of the bonds or notes shall be as the board of directors of the district shall direct.
  3. A place of payment and the amount of the several installments to be paid each year may be fixed by the board.
  4. The bonds or notes so issued shall be signed by the president of the board and countersigned by the secretary.
  5. If the bonds are issued, the interest thereon shall be represented by semiannual coupons authenticated by the lithographed signature of the president of the board.

History. Acts 1961, No. 20, § 14; 1981, No. 425, § 27; A.S.A. 1947, § 21-852.

14-120-330. Disposition and use of bond proceeds.

The proceeds derived from the sale of those bonds or notes shall be paid to the treasurer of the district and may be used for the operation of the district in carrying out the purposes for which it was originally created and those assumed by it under the provisions of subchapter 2 of this chapter and acts amendatory thereto.

History. Acts 1961, No. 20, § 14; A.S.A. 1947, § 21-852.

14-120-331. Lithographing and registration of bonds.

  1. The bonds shall be lithographed with such devices for identification and to prevent imitation as the board of directors may think proper.
  2. The secretary shall register the bonds in a book to be kept for that purpose as the bonds are issued, stating therein the date, number, amount and place of payment, to whom issued and sold of each bond and shall take a receipt from the person to whom each of the bonds is delivered.
  3. The treasurer of the board shall keep a like register and shall show all bonds paid or taken up by the board, showing when payment was made. No bond or coupon paid or taken up by the board shall again be issued but shall be cancelled by the treasurer and punched with an instrument provided for that purpose.

History. Acts 1961, No. 20, § 14; A.S.A. 1947, § 21-852.

14-120-332. No compensation for negotiating sale of bonds.

No compensation shall be allowed the treasurer of the district, or any other officer or member of the board of directors, either directly or indirectly, for negotiating the sale of the bonds or paying out the proceeds arising from their sale.

History. Acts 1961, No. 20, § 14; A.S.A. 1947, § 21-852.

14-120-333. Use of revenues for bond payment — Lien.

  1. To secure the due and prompt payment of both principal and interest of any bonds or notes issued under the provisions of this subchapter, the entire revenue of the district or such fractional part thereof as the board of directors may deem expedient and necessary is pledged.
  2. The board of directors of the district is required to set aside annually from the first revenue collected a sum sufficient in amount to secure and pay the interest on the bonds or notes and the principal, as the interest and principal may become due. Its duty to do so may be enforced by mandamus proceedings.
  3. The principal and interest of the bonds or notes shall be secured by a lien on all the lands, town lots, suburban lots, rural lots, industrial tracts, blocks, railroads, tramroads, telegraph, telephone, and electric power lines and underground cables, pipelines, and all other real property and interests in real property in the district.
  4. The board of directors may pledge all or any part of the assessment of benefits and its revenues as security for the payment of the principal and interest of the bonds or notes.
  5. In the event the board of directors fails or refuses to levy and collect the tax in any year in which there are bonds or notes or interest coupons outstanding when the proceeds of the tax are required for the payment of the bonds, notes, or interest coupons, this duty may be enforced by a mandamus or by a mandatory injunction in equity at the instance of any landowner in the district, the trustee in any deed of trust securing the bonds of the district, the holder of any bond, note, or interest coupon as to which the district has defaulted in the payment, or any other creditor of the district.

History. Acts 1961, No. 20, § 15; A.S.A. 1947, § 21-853.

Subchapter 4 — Alternative Procedure for Extension, Collection, and Payment of Assessments and Taxes

Effective Dates. Acts 1980 (1st Ex. Sess.), No. 19, § 5: Jan. 25, 1980. Emergency clause provided: “It is hereby found and determined by the General Assembly that the method of collection of levee district taxes may be inefficient in some districts and therefore would not allow the fullest utilization of taxes received for flood control; and unnecessary and legally unprecedented notice requirements for sale of land for nonpayment of assessments obstruct the assessment collection system; and only by immediate passage of this Act may the situation be corrected. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

14-120-401. Legislative intent.

Sections 14-120-402 — 14-120-408 of this subchapter shall not repeal any existing laws but are intended to provide an alternative procedure for the extension and collection of taxes and assessments that may be adopted by any board of directors which now collects taxes and assessments in a manner other than provided for by this subchapter.

History. Acts 1980 (1st Ex. Sess.), No. 19, § 3; A.S.A. 1947, § 21-859.2.

14-120-402. Definition.

As used in this subchapter unless the context otherwise requires, “board of directors” means the governing body of levee districts, drainage districts, or levee and drainage districts and includes the term “board of commissioners.”

History. Acts 1980 (1st Ex. Sess.), No. 19, § 1; A.S.A. 1947, § 21-859.

14-120-403. Resolution.

Notwithstanding the provisions of any special or general act, the board of directors of any levee district, drainage district, or levee and drainage district collecting taxes and assessments by special collectors may, by resolution adopted by a majority of the directors, change such method of collection and direct that the amount of taxes levied and assessed by the district shall annually be extended upon the tax books of the county or counties within which the lands so assessed and taxed are located and annually collected by the tax collectors in each county or counties along with the other taxes. Upon the adoption of that resolution, the clerk and tax collector of each county shall be charged with the duty of extending and collecting the annual tax and assessment levied by the districts.

History. Acts 1980 (1st Ex. Sess.), No. 19, § 1; A.S.A. 1947, § 21-859.

14-120-404. Due dates of taxes.

  1. All taxes levied and assessed under § 14-120-403 are due and payable between the first business day in March and October 15 inclusive in the year levied.
    1. Taxes levied and assessed under § 14-120-403 are a lien upon and bind the property upon which it is levied.
    2. The lien is entitled to preference over all demands, executions, encumbrances, or liens beginning the first Monday in January of the year in which the assessment shall be made.
    3. The lien shall continue until the taxes, together with any penalties that accumulate on the taxes, are paid.
    4. However, as between grantor and grantee, the lien shall not attach until the last date fixed by law for the county clerk to deliver the tax books to the county collector in each year.

History. Acts 1980 (1st Ex. Sess.), No. 19, § 1; A.S.A. 1947, § 21-859; Acts 2011, No. 175, § 3.

Amendments. The 2011 amendment subdivided the section into subsections (a) and (b); rewrote present (a); inserted “Taxes levied and assessed under § 14-120-403 are” in (b)(1); in (b)(2), inserted “The lien is” and substituted “beginning” for “from”; and inserted “county” in (b)(4).

14-120-405. Delinquencies.

If taxes and assessments shall not be paid at maturity, the collector shall not embrace such taxes in the taxes for which he shall sell the land but shall, on or before the date fixed by law for making settlement with the county treasurer for general taxes, make out and file with the board of directors of the district a list of all real property which lies in the county and which is delinquent for nonpayment of said taxes and retain a copy for use in collecting such delinquent taxes. The board of directors of the district shall enforce the collection of such taxes and the penalties thereon in the manner now provided by law.

History. Acts 1980 (1st Ex. Sess.), No. 19, § 1; A.S.A. 1947, § 21-859.

14-120-406. Disposition of taxes collected.

The net amount of the taxes collected for the district shall be paid over by the collector to the board of the district at or before the time the collector is now required to make settlement with the county treasurer for general taxes.

History. Acts 1980 (1st Ex. Sess.), No. 19, § 1; A.S.A. 1947, § 21-859.

14-120-407. Commissions.

The county clerk and tax collector shall receive commissions for the extension and collection of the taxes as are now or may hereafter be provided by law.

History. Acts 1980 (1st Ex. Sess.), No. 19, § 1; A.S.A. 1947, § 21-859.

14-120-408. Notice of sale of land for nonpayment of taxes in certain districts.

Notwithstanding the provisions of §§ 14-86-140114-86-1405, and any other provision relating to giving notice prior to selling or filing suit for sale of lands for nonpayment of improvement district assessments, the provisions of subchapter 3 of this chapter shall be the only notice requirement applicable to any improvement district embracing lands in four (4) or more counties for selling or filing suit to sell any lands for nonpayment of improvement district assessments.

History. Acts 1980 (1st Ex. Sess.), No. 19, § 2; A.S.A. 1947, § 21-859.1.

14-120-409. Business interest exemption for districts with land in four or more counties.

The members of the board of directors of any improvement district consolidated pursuant to the provisions of subchapter 3 of this chapter, which encompasses lands located in four (4) or more counties, shall not be required to file the written statement required by §§ 21-8-30121-8-305, 21-8-30621-3-309.

History. Acts 1980 (1st Ex. Sess.), No. 19, § 4; A.S.A. 1947, § 21-859.3.

Publisher's Notes. Sections 21-8-30521-8-309, referred to in this section, were repealed by Acts 1989, No. 719; however, Acts 1991, No. 326, reenacted §§ 21-8-30521-8-309, as modified by Acts 1989, No. 719, § 5. As to legislative intent of Acts 1991, No. 326, and derivation of former §§ 21-8-306 — 21-8-309, see notes to §§ 21-8-305 and 21-8-306.

Subchapter 5 — Judicial Review of Assessment of Benefits

Effective Dates. Acts 1939, No. 60, § 7: approved Feb. 9, 1939. Emergency clause provided: “It being found that a speedy administrative remedy for determining the proper assessments of benefits in drainage districts, levee districts, and drainage and levee districts, is necessary both for the convenience and protection of the property owners in the districts and the collection of the taxes due the district, thereby avoiding delays detrimental to the public interests which the districts were created to promote and conserve, an emergency is found to exist and is hereby declared, and this act shall take effect and be in force from and after its passage.”

14-120-501. Right to review — Construction.

  1. Any person aggrieved by an assessment of benefits established against his property in any drainage district, levee district, or drainage and levee district, whether created under general laws or by special acts, may have the assessment reviewed by the chancery court of the county in which the property is situated or by the chancery court of the county in which the district has its domicile if the property involved is in more than one (1) county.
  2. The right of review provided in this subchapter shall be construed to be an enlargement of the administrative remedies now provided by law.

History. Acts 1939, No. 60, § 1; A.S.A. 1947, § 21-810.

14-120-502. Petition for review.

  1. The petition for review shall be filed within thirty (30) days from the date when the assessment is completed and would, except for the purpose of review, become effective.
  2. A copy of the petition shall be delivered to the president of the district or to the chairman of its board of directors or commissioners.

History. Acts 1939, No. 60, § 2; A.S.A. 1947, § 21-811.

14-120-503. Hearing and determination.

  1. The court shall hear the petition as expeditiously as possible. It shall have power to lower, raise, equalize, and determine the proper assessment of benefits established against the property described in the petition.
  2. The amount and legality of an assessment made by any district, in the absence of a petition for a review, shall be conclusive.

History. Acts 1939, No. 60, § 3; A.S.A. 1947, § 21-812.

14-120-504. Certification to district of court's determination.

As soon as the court determines the proposed assessment of benefits under any petition pending before it, the clerk of the court shall promptly certify the assessment to the district so that the district taxes may be extended against it.

History. Acts 1939, No. 60, § 4; A.S.A. 1947 § 21-813.

14-120-505. Appeal to Supreme Court.

  1. An appeal may be prosecuted from the assessment determined by the court, but the transcript shall be filed with the Clerk of the Supreme Court within sixty (60) days from the rendition of its determination by the chancery court.
  2. The Supreme Court shall advance the appeal on its docket as involving a matter of public interest.

History. Acts 1939, No. 60, § 5; A.S.A. 1947, § 21-814.

14-120-506. Suit to collect taxes on property in custody of another court.

In suits by a drainage district, levee district, or drainage and levee district to collect taxes on any property in the custody of a court other than that in which the tax suit is brought, the decree shall adjudicate the amount and legality of the tax. The district shall file a certified copy of the decree in the court having the custody of the property for appropriate action for the payment of the tax.

History. Acts 1939, No. 60, § 6; A.S.A. 1947, § 21-815.

14-120-507. Reduction of penalty for delinquency.

In all drainage districts organized by special act of the General Assembly in which the penalty is now twenty-five percent (25%) for failure to pay drainage district taxes within the time designated by the act, the commissioners of any drainage or levee district, at their discretion, may reduce all or any part of the penalty as low as ten percent (10%).

History. Acts 1941, No. 332, § 1; A.S.A. 1947, § 21-816.

Cross References. Remission of penalties exceeding 10 percent, § 14-86-1002.

Subchapter 6 — Certain Boards of Commissioners

14-120-601. Subchapter supplemental.

The provisions of this subchapter shall be supplemental to the laws of this state governing levee and drainage districts and shall repeal only those laws or parts of laws which are specifically in conflict with this subchapter. It is the intent of the General Assembly that this subchapter shall not modify, affect, or repeal any of the existing levee and drainage district laws of this state, except to the extent the laws conflict with the provisions of this subchapter.

History. Acts 1971, No. 105, § 9; A.S.A. 1947, § 21-505.9.

14-120-602. Applicability.

  1. This subchapter shall not apply to any drainage district or levee district, or combination of districts, which, under present law, are governed by more than five (5) commissioners, nor shall it apply to any such districts governed by commissioners who are elected under existing law.
  2. Laws concerning all such districts and other laws governing improvement and drainage and levee districts shall continue in full force and effect.

History. Acts 1971, No. 105, § 1; A.S.A. 1947, § 21-505.2.

Cross References. Board of commissioners in drainage districts, § 14-121-301 et seq.

14-120-603. Determination of number of commissioners.

All drainage districts, levee districts, or combinations of such districts shall have either three (3) or five (5) commissioners, the exact number of which shall be determined by the court having jurisdiction of the formation of the district.

History. Acts 1971, No. 105, § 2; A.S.A. 1947, 21-505.3.

14-120-604. Increase in number of commissioners.

  1. The boards of commissioners of drainage districts, levee districts, and combinations of such districts which are now composed of only three (3) members may be increased to five (5) members by order of the court having jurisdiction of such districts in accordance with § 14-120-605.
  2. A petition to increase the number of commissioners may be filed with the court having jurisdiction by any interested taxpayer, and the clerk of the court shall give notice of hearing on the petition by publication for two (2) weeks in some newspaper published and having a general circulation in the county and shall further serve notice on the existing commissioners.
  3. The time and place of hearing on the petition shall be fixed by the court.

History. Acts 1971, No. 105, § 3; A.S.A. 1947, § 21-505.4.

14-120-605. Petition by majority of landowners or existing commissioners — Order.

If, upon the hearing provided for in § 14-120-604, a petition is presented to the court signed by landowners against whose lands more than fifty percent (50%) in value of the assessment of benefits in a district is levied, or if the petition is presented to the court by the existing commissioners of the district, the court shall forthwith issue an order that the board of commissioners of the district shall thereafter consist of five (5) members, selected as hereinafter provided.

History. Acts 1971, No. 105, § 4; A.S.A. 1947, § 21-505.5.

14-120-606. Terms of office in districts having three commissioners.

  1. The terms of office of commissioners in all districts which have three (3) commissioners shall be nine (9) years to serve until their successors are duly selected and qualified as herein set forth.
    1. These terms of office shall begin January 1.
      1. For the initial terms the commissioners shall select one (1) of their number to serve for three (3) years, one (1) to serve for six (6) years, and one (1) to serve for nine (9) years.
      2. The names and terms, so selected shall be certified to the clerk of the court having jurisdiction on or before January 1.

History. Acts 1971, No. 105, § 5; A.S.A. 1947, § 21-505.6.

14-120-607. Terms of office in districts having five commissioners.

  1. The term of office of commissioners in all districts which have five (5) commissioners shall be ten (10) years to serve until their successors are duly selected and qualified as set forth in this subchapter.
    1. These terms of office shall begin January 1.
      1. For the initial terms, the commissioners shall select one (1) of their number to serve for two (2) years, one (1) for four (4) years, one (1) for six (6) years, one (1) for eight (8) years, and one (1) for ten (10) years.
      2. The names and terms so selected shall be certified to the clerk of the court having jurisdiction on or before January 1.

History. Acts 1971, No. 105, § 6; A.S.A. 1947, § 21-505.7.

14-120-608. Filling vacancies and new positions.

Vacancies in the office of commissioners, or creation of new positions by increase of number, shall be filled by order of the court having jurisdiction, subject to the following:

  1. Ten (10) or more landowners against whose lands more than fifty percent (50%) in value of the assessment of benefits in a district is levied may, at any time, petition the court to remove a commissioner or commissioners and to appoint designated qualified persons as successors, and the court shall forthwith enter an order to that effect.
  2. In the event of expiration of term of office, removal, or vacancy from any other cause, and in the absence of a petition as specified in the preceding subdivision, the court, on petition of any number of landowners or by the remaining commissioners, shall enter an order making the appointments. It shall cause notice to be published once a week for two (2) weeks in a newspaper or newspapers having general circulation in each of the counties involved in the district of the entry of its order appointing named commissioners for specified terms. Such notice shall specify a time and place for hearing, which shall be not less than ten (10) days after first publication of notice, at which time objections to such appointments will be heard. At the hearing the court may confirm the appointments or appoint any other qualified person.

History. Acts 1971, No. 105, § 7; A.S.A. 1947, § 21-505.8.

Subchapter 7 — Maintenance of Facilities

14-120-701. Purpose and intent.

  1. It is the express purpose and intent of this subchapter to require levee and drainage districts to keep their facilities in proper repair, whenever the districts shall have given assurances to the federal government that maintenance of a facility would be provided upon its completion.
  2. In imposing the duty upon levee and drainage districts, the General Assembly takes cognizance of the fact that many levee and drainage facilities in the State of Arkansas are constructed through the cooperation of the federal government and that adequate maintenance of these facilities in good faith is extremely important if the State of Arkansas is to continue to receive the benefit of future development of levee and drainage projects in this state by the federal government.
  3. The General Assembly also recognizes that a number of levee or drainage districts may be involved in an overall connecting levee or drainage project that results in mutual benefits to all districts in the affected area.
  4. If one (1) or more of these districts fails to provide adequate maintenance according to the assurance given the federal government, the lack of maintenance can jeopardize the entire project.
  5. Therefore, each district shall have the duty of maintaining its facility and shall not endanger the facilities of the other districts in the affected area.
  6. In addition, the General Assembly recognizes that the policies of Congress in planning future levee and drainage work in the State of Arkansas will be influenced by the adequacy with which levee and drainage districts in this state provide maintenance of existing facilities according to the terms of the assurances given the federal government.
  7. In order to encourage Congress to continue to make available funds for future development and improvement of levee and drainage projects in this state, the General Assembly recognizes that the State of Arkansas must take steps to see that the assurances given to the federal government by levee and drainage districts as authorized by the laws of this state shall be fulfilled. It is declared that the purpose of this subchapter is to require that maintenance shall be provided.

History. Acts 1957, No. 72, § 3; A.S.A. 1947, § 21-835.

14-120-702. Authority and powers of board of commissioners.

  1. The board of commissioners of any drainage or drainage and levee district organized under the laws of the State of Arkansas are authorized and empowered to purchase, lease, or rent, separately as individual districts or jointly with other districts such machinery, equipment, and material to be used in repairing, deepening, widening, clearing, and maintaining the ditches and levees of their districts.
  2. The board of commissioners is further authorized and empowered to employ personnel as necessary and incident to the use of the machinery, equipment, and material obtained.
  3. For the purpose of carrying out the provisions of this subchapter, drainage districts, and levee and drainage districts are authorized to levy a maintenance tax and obtain funds as now provided by law.

History. Acts 1957, No. 72, § 4; A.S.A. 1947, § 21-836.

14-120-703. Maintenance requirements.

  1. Whenever any levee or drainage district in the State of Arkansas shall have given assurances to the United States Army Corps of Engineers or other appropriate federal agency that the levee or drainage district will maintain any levee or drainage facility upon its completion by the federal government, then that levee or drainage district shall maintain the levee or drainage facility according to the terms of the assurance agreement entered into with the federal government.
  2. It shall be the duty of the board of commissioners of all levee and drainage districts to take all appropriate action to maintain their levee and drainage facilities according to the assurances given to the federal government.

History. Acts 1957, No. 72, § 1; A.S.A. 1947, § 21-833.

14-120-704. Failure to maintain structures.

    1. Whenever any levee or drainage district shall fail, refuse, or neglect to maintain the levee and drainage structures after completion, in compliance with the assurances given the federal government, then the United States Army Corps of Engineers may give written notice to the officers of the levee and drainage district and in the notice shall set forth the plans and specifications and estimate of cost of restoring and maintaining the structures in accordance with the assurances given.
    2. The levee and drainage district shall take steps to comply with the specifications and requirements made by the United States Army Corps of Engineers within six (6) months after receiving notice.
    3. In the event that the levee and drainage district has not taken steps to comply therewith within the period of time above provided, then the United States Army Corps of Engineers may give written notice to the Attorney General of the State of Arkansas that the levee and drainage district has failed, refused, or neglected to comply with the requirements and upon receipt of written notice from the United States Army Corps of Engineers to the Attorney General of the State of Arkansas, then the Attorney General shall immediately bring a mandamus suit in a court of competent jurisdiction in the name of the State of Arkansas against the officers, commissioners, or directors of the levee and drainage district in the county in which the domicile of the district is situated. However, in the mandamus proceedings, if it is shown that the district has insufficient funds to meet and fulfill these requirements, then it shall be deemed a compliance with this subchapter if the district has taken steps to assess and levy a sufficient maintenance tax.
    1. Where the board of commissioners of a drainage or levee district has indicated by resolution that it will not comply with the specifications and requirements contained in the notice of the United States Army Corps of Engineers, the Attorney General may immediately, in lieu of a mandamus proceeding against the commissioners of the district, bring an action and take other necessary legal steps in the proper local court, or courts, in the name of the State of Arkansas against the delinquent levee or drainage district, or subdivision thereof, or the board of commissioners thereof to effectuate, in the manner now provided by law, the assessment, reassessment, extension, or collection of a sufficient annual tax upon the real property in the levee or drainage district to enable the performance of the assurances given to the federal government.
    2. The Attorney General may also bring the action where the board of commissioners has failed to perform the assurances after the giving of the notice above specified.

History. Acts 1957, No. 72, § 2; 1957, No. 416, § 1; A.S.A. 1947, § 21-834.

Publisher's Notes. Acts 1957, No. 416, § 2, provided:

“This Act shall be cumulative to the provisions of Act 72 of the Acts of the General Assembly of the State of Arkansas for 1957.”

14-120-705. Collection and expenditure of tax — Costs.

  1. In all proceedings for the imposition and collection of an annual tax upon the real property in the levee or drainage district, the powers and duties of the Attorney General in this respect shall cease when the order of the proper court in the matter has become final.
  2. The actual collection and expenditure of the tax shall be left to the board of directors or commissioners.
  3. If the board fails or refuses to make the collection and expenditure, mandamus proceedings may be instituted, or, in case a district is without representation, the Attorney General may, in the name of the State of Arkansas, petition the proper local court for a receiver for the district to collect and expend the taxes.
  4. The order of the court in all such proceedings shall provide for the payment of the legal costs, including a reasonable fee for the Attorney General, by the defendant district.
  5. The order of the court in imposing an assessment or reassessment of taxes upon the real property in the district shall take into account the costs and expenses.

History. Acts 1957, No. 72, § 2; 1957, No. 416, § 1; A.S.A. 1947, § 21-834.

Publisher's Notes. Acts 1957, No. 416, § 2, provided:

“This Act shall be cumulative to the provisions of Act 72 of the Acts of the General Assembly of the State of Arkansas for 1957.”

Chapter 121 Drainage Improvement Districts Generally

Research References

Ark. L. Rev.

Lex Aquae Arkansas, 27 Ark. L. Rev. 429.

U. Ark. Little Rock L.J.

Looney, Diffused Surface Water in Arkansas: Is It Time for a New Rule?, 18 U. Ark. Little Rock L.J. 3.

Case Notes

Constitutionality.

This chapter is not in conflict with Ark. Const., Art. 2, § 23. Less Land Co. v. Fender, 119 Ark. 20, 173 S.W. 407 (1915).

This chapter does not deprive the owners of their property without due process of law nor deny them the equal protection of the law. Less Land Co. v. Fender, 119 Ark. 20, 173 S.W. 407 (1915).

Subchapter 1 — General Provisions

Cross References. Extension of powers of improvement districts, § 14-118-301 et seq.

Municipal drainage improvement districts, § 14-115-101 et seq.

Relocation assistance payments, § 22-9-701 et seq.

Tort liability immunity, § 21-9-301 et seq.

Effective Dates. Acts 1909, No. 279, § 35: effective on passage.

Acts 1911, No. 54, § 2: effective on passage.

Acts 1913, No. 177, § 22: approved Mar. 13, 1913. Emergency declared.

14-121-101. Definitions.

  1. As used in this act, unless the context otherwise requires:
    1. “Real property” shall have the same meaning as when used in § 26-1-101 et seq. and shall embrace all railroads and tramroads within the district;
    2. “Ditch” includes branch or lateral ditches, tile drains, levees, sluiceways, floodgates, and any other construction work found necessary for the reclamation of wet and overflowed land.
  2. Whenever the words “county court” or “county judge” are used in this act, they shall be construed to mean “circuit court” or “circuit judge,” and the words “county clerk” shall mean “circuit clerk” in cases where the district contains lands in more than one (1) county.

History. Acts 1909, No. 279, §§ 1, 5, 32, p. 829; 1913, No. 177, § 5; C. & M. Dig., §§ 3611, 3638; Pope's Dig., §§ 4459, 4489; A.S.A. 1947, §§ 21-501, 21-511, 21-566.

Meaning of “this act”. Acts 1909, No. 279, codified as §§ 14-121-101, 14-121-102, 14-121-104, 14-121-105, 14-121-20114-121-205, 14-121-207, 14-121-301, 14-121-304, 14-121-305, 14-121-307, 14-121-310, 14-121-311, 14-121-313, 14-121-40114-121-406, 14-121-408, 14-121-411, 14-121-412, 14-121-42214-121-432, 14-121-44014-121-442, 14-121-80214-121-805, and 14-121-808.

Case Notes

Circuit Court.

This section authorizes an original proceeding in the circuit court to establish a drainage district. Grassy Slough Drainage Dist. v. National Box Co., 111 Ark. 144, 163 S.W. 512 (1914).

Ditch.

The word “ditch” includes “levees.” Grassy Lake & Tyronza Drainage Dist. v. Drainage Dist. of Mississippi County, 205 Ark. 694, 170 S.W.2d 1007 (1943).

Real Property.

Nothing in this section authorizes the assessment of benefits against county roads. Board of Comm'rs v. Arkansas County, 179 Ark. 91, 14 S.W.2d 226 (1929).

Cited: Greer v. Blocker, 218 Ark. 259, 236 S.W.2d 68 (1951); Cherry v. Cousart Bayou Drainage Dist., 222 Ark. 404, 259 S.W.2d 513 (1953).

14-121-102. Applicability.

  1. This act shall apply to the organization of districts, the main object of which is the construction of levees.
  2. This act shall not repeal the drainage laws now in force, but it is an alternative system.
  3. Drainage districts may be organized under this act or under the statutes which are in force at the time of the passage of this act.

History. Acts 1909, No. 279, §§ 32, 34, p. 829; 1911, No. 54, § 1; 1911, No. 221, § 5; 1913, No. 177, § 5; C. & M. Dig., §§ 3638, 3654; Pope's Dig., §§ 4489, 4505; A.S.A. 1947, §§ 21-566, 21-567.

Publisher's Notes. In reference to the term “the time of the passage of this act”, Acts 1909, No. 279, § 35, provided that the act would be in effect and in force from and after its passage. The act was signed by the Governor on May 27, 1909.

The former law relating to drainage districts that was in effect when Acts 1909, No. 279 was passed was Acts 1903, No. 159, which was repealed by Acts 1935, No. 60.

Meaning of “this act”. See note to § 14-121-101.

Case Notes

Levees.

A drainage district may construct a levee where necessary to prevent the overflowing and filling up of its ditches. Britt v. Laconia Circle Special Drainage Dist., 165 Ark. 92, 263 S.W. 48 (1924); Drainage Dist. No. 18, Craighead County v. Cornish, 198 Ark. 857, 131 S.W.2d 938 (1939).

The county court may establish a drainage district which may construct a levee to protect lands from overflows. Walker v. Roland Drainage Dist., 212 Ark. 633, 207 S.W.2d 319 (1948).

14-121-103. Special court sessions.

The county and circuit court may, at the request of the commissioners of the district, at any time hold special sessions for the purpose of:

  1. Acting upon any petition or report; or
  2. Making any order in a matter involving any drainage district.

History. Acts 1913, No. 177, § 15; C. & M. Dig., § 3647; Pope's Dig., § 4498; A.S.A. 1947, § 21-563.

Case Notes

Circuit Court Jurisdiction.

The circuit court has jurisdiction to hold a special term, not only where it has formed a drainage district, but also to hear an appeal from the county court questioning the correctness of a drainage assessment. Kirten v. Chicot County Drainage Dist., 161 Ark. 334, 256 S.W. 50 (1923).

14-121-104. Appeals not to delay work.

No appeal provided for in this chapter shall be allowed to delay the organization of the district or the progress of the work of improvement.

History. Acts 1909, No. 279, § 29, p. 829; C. & M. Dig., § 3636; Pope's Dig., § 4488; A.S.A. 1947, § 21-564.

Case Notes

Appellate Jurisdiction.

An appeal from an order of the county court establishing a drainage district does not operate as a stay of proceedings on the judgment appealed from, but this section does not impair the power of the circuit court, or judge thereof in vacation, to make orders in the exercise of its appellate jurisdiction as are necessary to protect the right of the parties in the litigation. Strangways v. Ringgold, 106 Ark. 433, 153 S.W. 619 (1913).

Cited: St. Louis, I.M. & S.R. v. Maple Slough Drainage Dist., 138 Ark. 131, 211 S.W. 168 (1919).

14-121-105. Obstructing or damaging drainage works — Penalty.

Any person who obstructs a drain or damages drainage works provided for by this act shall be guilty of a violation and fined one hundred dollars ($100). He or she shall also be liable to the district for double the cost of removing the obstruction or repairing damage.

History. Acts 1909, No. 279, § 31, p. 829; C. & M. Dig., § 3665; Pope's Dig., § 4516; A.S.A. 1947, § 21-565; Acts 2019, No. 383, § 15.

Amendments. The 2019 amendment, in the first sentence, substituted “obstructs” for “shall obstruct”, substituted “damages” for “damage” and substituted “violation” for “misdemeanor”; and inserted “or she” in the second sentence.

Meaning of “this act”. See note to § 14-121-101.

Cross References. Penalty for obstructing drains generally, § 5-72-105.

Case Notes

Liability for Damages.

Where defendants did not obtain permission from drainage district before constructing dam across a ditch on their lands and torrential rainfall caused ditch to overflow on lands of plaintiffs, defendants were liable to plaintiffs for damages, since negligence of defendants in constructing dam concurred with rainfall to cause overflow on plaintiffs' land. Adams v. Adams, 228 Ark. 741, 310 S.W.2d 813 (1958).

Subchapter 2 — District Establishment

Publisher's Notes. As to validation of prior proceedings in circuit court, see Acts 1911, No. 221, § 6.

Preambles. Acts 1927, No. 227, contained a preamble which read:

“Whereas, there are in this State many drainage districts created by Special Laws, which need amendment, but which cannot be amended under the present constitutional restrictions; and

“Whereas, the general drainage law, which appears as act number 279 of the year 1909, furnishes an adequate uniform system for the operation of drainage districts….”

Effective Dates. Acts 1909, No. 279, § 35: effective on passage.

Acts 1911, No. 54, § 2: effective on passage.

Acts 1913, No. 177, § 22: approved Mar. 13, 1913. Emergency declared.

Acts 1921, No. 353, § 3: effective on passage.

Acts 1927, No. 227, § 2: approved Mar. 23, 1927. Emergency clause provided: “It is ascertained and hereby declared that by reason of the deficiencies in various special acts creating drainage districts in this State such districts are unable to function properly and to perform their duty so that the public health is impaired by stagnant water which they are intended to drain away, and it is therefore declared that an emergency exists, and that for the preservation of the public health this act should go into immediate operation, and it is therefore provided that this act shall be force from and after its passage.”

Acts 1957, No. 327, § 7: approved Mar. 27, 1957. Emergency clause provided: “It is hereby ascertained and declared that there are many projects which the U. S. Government might construct if an agency existed for the maintenance of such projects after construction, and that such projects would be of immense benefit to the citizens of this state and that the proper development of the state is being retarded because no agency can be created under the present laws of the state for the maintenance of such projects, and that an emergency exists and this act being necessary for the immediate promotion of public peace, health and safety the same shall take effect and be in force from and after its passage.”

14-121-201. Petition for establishment — Engineer and survey — Bond.

  1. It shall be the duty of the county court to enter upon its records an order appointing an engineer to be selected by the petitioners when three (3) or more owners of real property within a proposed district shall:
    1. Petition the county court to establish a drainage district or a district to construct drainage or drainage and levee improvements in conjunction with the federal government and thereafter to maintain the whole of the improvements, or to maintain drainage or levee improvements constructed wholly or in part by the federal government, to embrace their property, describing generally the region which it is intended shall be embraced within the district; and
    2. File a good bond to pay for the expense of survey of the proposed district, in case the district is not formed.
  2. However, the engineer whom they select shall be a suitable person, and if not, an engineer shall be named who is satisfactory to the court. He shall give bond in a sum not less than one thousand dollars ($1,000), to be fixed by the court, for the faithful discharge of his duties, and shall be liable upon such bond for negligence or incompetency causing loss to the district.
  3. The engineer shall forthwith proceed to make a survey and ascertain the limits of the region which would be benefited by the proposed system of drainage.
  4. The engineer shall file with the county clerk a report showing the territory which will be benefited by the proposed improvement, giving a general idea of its character and expense and making such suggestions as to the size of the drainage ditches and their location as he may deem advisable.
  5. All expense incident to the survey and cost of publication shall be paid by the county as the work progresses upon proper showing, but all expenses incurred by the county shall be repaid out of the proceeds of the first assessment levied under this act.

History. Acts 1909, No. 279, § 1, p. 829; 1911, No. 221, § 1; C. & M. Dig., § 3607; Acts 1921, No. 353, § 1; Pope's Dig., § 4455; Acts 1957, No. 327, § 1; A.S.A. 1947, § 21-501.

Publisher's Notes. Acts 1957, No. 327, § 6, provided that the act would be cumulative and would not repeal any then existing law and would not apply to any district already then organized. The section further provided that the act would not be deemed to take from any levee, drainage, or other improvement district the power or right the district then had to enter into and perform any contract or agreement of the United States Army Corps of Engineers or other federal agency.

Meaning of “this act”. Acts 1909, No. 279, codified as §§ 14-121-101, 14-121-102, 14-121-104, 14-121-105, 14-121-20114-121-205, 14-121-207, 14-121-301, 14-121-304, 14-121-305, 14-121-307, 14-121-310, 14-121-311, 14-121-313, 14-121-40114-121-406, 14-121-408, 14-121-411, 14-121-412, 14-121-42214-121-432, 14-121-44014-121-442, 14-121-80214-121-805, and 14-121-808.

Case Notes

Bond for Expenses.

When a drainage district was formed under this section, a bond for preliminary expenses signed by 15 of the petitioners who were able to discharge the obligation was valid without other sureties. Less Land Co. v. Fender, 119 Ark. 20, 173 S.W. 407 (1915).

A county is not liable for the cost of a preliminary survey where a projected drainage district has not been formed, the petitioners for the district being liable on their bond where the district is not created. Gibson v. Hempstead County, 139 Ark. 26, 212 S.W. 99 (1919).

Petitions.

A petition for the formation of a drainage district is sufficient if it shows that the proposed ditch either will be “conducive to the public health, convenience or welfare” or “will be of public utility or benefit.” Terre Noir Drainage Dist. v. Thornton, 93 Ark. 332, 124 S.W. 774 (1910).

Where drainage district filed a petition for authority to levy taxes in cleaning and widening ditches in district, the circuit court could not consider issue raised by another drainage district as to whether the entire creek should be cleaned out, since original petition was a special proceeding. Beaver Bayou Drainage Dist. v. Lee-Phillips Drainage Dist., 221 Ark. 550, 254 S.W.2d 465 (1953).

Reports.

In a collateral attack upon the organization of a drainage district, it will be presumed that the county court considered the correctness of the survey and report when the hearing was given to the property owners in response to the published notice; and the fact that the report was filed on the day of the appointment of the engineer will not necessarily imply that the survey was insufficient. Arkansas Land Dev. Co. v. Bayou De View Drainage Dist., 125 Ark. 388, 189 S.W. 48 (1916).

There being no provision in this section for the filing of anything more than a report by the engineer, which must describe the lands to be benefited, the filing also of a map will be treated as surplusage and any variance between the published notice and the description on the map will be immaterial. Arkansas Land Dev. Co. v. Bayou De View Drainage Dist., 125 Ark. 388, 189 S.W. 48 (1916).

Surveys.

In the organization of a drainage district, the boundaries may be designated and described by reference to natural or artificial monuments; the engineer or surveyor is not required to outline the boundaries of lands by reference to plats only. If the boundaries of the district or the boundaries of lands contained therein are described so that the landowners and county courts can understand where they are, such description would be sufficient. Hudson v. Quattlebaum, 132 Ark. 613, 201 S.W. 1113 (1918).

Rights-of-way 300 feet in width executed by landowners to drainage district for construction of a new levee, but which were not described by metes and bounds, did not include area of land ditch constructed 100 feet west of the right-of-way, as words “west of old levee” could not be extended to mean “and adjacent thereto.” Drainage Dist. of Mississippi County v. Holly, 213 Ark. 889, 214 S.W.2d 224 (1948).

Cited: Greer v. Blocker, 218 Ark. 259, 236 S.W.2d 68 (1951); Cherry v. Cousart Bayou Drainage Dist., 222 Ark. 404, 259 S.W.2d 513 (1953).

14-121-202. Notice and hearing.

  1. The county clerk shall thereupon give notice by publication for two (2) weeks in some newspaper published and having a general circulation in the county calling upon all persons owning property within the district to appear before the court on some day to be fixed by the court, to show cause in favor of or against the establishment of the district.
  2. At the time named in the notice, the county court shall meet and hear all property owners within the proposed district who wish to appear and advocate or resist the establishment of the district. If the court deems it to the best interest of owners of real property within the district that the proposed district shall become a drainage district under the terms of this act, then it shall make an order upon its records establishing the same as a drainage district subject to all the terms and provisions of this act.

History. Acts 1909, No. 279, § 1, p. 829; 1911, No. 221, § 1; C. & M. Dig., § 3607; Acts 1921, No. 353, § 1; Pope's Dig; § 4455; Acts 1957, No. 327, § 1; A.S.A. 1947, § 21-501.

Publisher's Notes. Acts 1957, No. 327, § 6, provided that the act would be cumulative and would not repeal any then existing law and would not apply to any district already then organized. The section further provided that the act would not be deemed to take from any levee, drainage, or other improvement district the power or right the district then had to enter into and perform any contract or agreement of the United States Army Corps of Engineers or other federal agency.

Meaning of “this act”. Acts 1911, No. 221, codified as §§ 14-121-102, 14-121-20114-121-205, 14-121-207, 14-121-301, and 14-121-304.

Case Notes

Jurisdiction.

Where a district is attempted to be organized, in order for the county court to acquire jurisdiction, it is necessary that the county court fix the date for the hearing before the publication of the notice to the property owners. Gibson v. Lower Running Water Drainage Dist., 127 Ark. 165, 191 S.W. 908 (1917).

Where proceedings looking to the organization of an improvement district are special and out of the course of the common law, no presumption can be indulged with respect to jurisdictional matters, and the question of jurisdiction may be inquired into either directly or collaterally. Gibson v. Lower Running Water Drainage Dist., 127 Ark. 165, 191 S.W. 908 (1917).

Notice.

—In General.

All persons are charged with knowledge of the amendatory acts to the general drainage laws, but landowners are not required to take notice of the proceedings to organize a drainage district until a notice is properly published. Drainage Dist. No. 7 v. Terry, 126 Ark. 518, 191 S.W. 8 (1917).

Notice of hearing on a proposed establishment of a district is jurisdictional, and no lands can be included in the district that are not included in the notice. Smith v. Lawrence, 175 Ark. 712, 300 S.W. 386 (1927).

—Requirements.

The notice of a petition for the formation of a drainage district must clearly and specifically declare that purpose so that one reading it may ascertain from it just what is intended without any extraneous matter or other source of information. Drainage Dist. No. 7 v. Terry, 126 Ark. 518, 191 S.W. 8 (1917).

In the organization of a drainage district, only one notice is required to be given preliminary to the organization of a district; that notice must be published by the circuit clerk after the report of the engineer appointed by the district has been filed, calling upon all landowners in the district to appear before the court to show cause for or against the creation of the district. Oates v. Cypress Creek Drainage Dist., 135 Ark. 149, 205 S.W. 293 (1918).

A description of the property to be embraced in the district is to be included in the notice published. Mahan v. Wilson, 169 Ark. 117, 273 S.W. 383 (1925).

—Sufficiency.

As to notices held insufficient, Drainage Dist. No. 7 v. Terry, 126 Ark. 518, 191 S.W. 8 (1917).

As to notices held sufficient, Burns v. Fisher, 171 Ark. 1012, 287 S.W. 205 (1926); Drainage Dist, No. 9 v. Merchants' & Planters' Bank, 176 Ark. 474, 2 S.W.2d 1079 (1928); Riley v. Eight Mile Drainage Dist., 223 Ark. 533, 267 S.W.2d 302 (1954).

Sufficiency of published notice to landowners may be raised on appeal, though not raised in trial court, since proper notice is jurisdictional. Riley v. Eight Mile Drainage Dist., 223 Ark. 533, 267 S.W.2d 302 (1954).

Order of Court.

The power lodged in the county court under this section, being very great, there should be no uncertainty about the advantage to the landowners before the court should order the establishment of the district, and any uncertainty must be resolved in favor of the landowners upon whom the burden of the improvement rests. Where the court's finding showed uncertainty, the county court will not be ordered to establish the district. Burton v. Chicago Mill & Lumber Co., 106 Ark. 296, 153 S.W. 114 (1913)Limited byBoard of Directors v. Dunbar, 107 Ark. 285, 155 S.W. 96 (Ark. 1913).

A petition for and order creating a drainage district need not state that the proceedings are under the alternative system where such fact appears from the complaint filed to enjoin further proceedings under the order. Robinson v. Mud Slough Drainage Dist., 174 Ark. 369, 295 S.W. 360 (1927).

Cited: Greer v. Blocker, 218 Ark. 259, 236 S.W.2d 68 (1951); Cherry v. Cousart Bayou Drainage Dist., 222 Ark. 404, 259 S.W.2d 513 (1953).

14-121-203. Land in more than one county.

  1. If land in more than one (1) county is embraced in the proposed district, the application shall be addressed to the circuit court in which the largest portion of the lands lie, and all proceedings shall be had in the circuit court.
  2. The circuit court shall apportion all costs between the county or counties in proportion to the benefits assessed to each county.
  3. The expenses incurred prior to the time when the assessment is made shall be apportioned between the counties in the proportion which the circuit court shall deem to be just and equitable.
  4. All notices in that event shall be published in newspapers published and having bona fide circulation in each county in which the district embraces lands.
  5. All of the districts shall be numbered consecutively or else shall receive names selected by the county court.
  6. If the county court does not act promptly in complying with the terms of any section of this act essential to the creation and operation of the districts, it may be compelled to do so by mandamus.
  7. The domicile of the district shall be the county in which the largest portion of the lands in the district lie, and all suits against it shall be by service on all of the commissioners of the district.

History. Acts 1909, No. 279, § 1, p. 829; 1911, No. 221, § 1; C. & M. Dig., § 3607; Acts 1921, No. 353, § 1; Pope's Dig., § 4455; Acts 1957, No. 327, § 1; A.S.A. 1947, § 21-501.

Publisher's Notes. Acts 1957, No. 327, § 6, provided that the act would be cumulative and would not repeal any then existing law and would not apply to any district already then organized. The section further provided that the act would not be deemed to take from any levee, drainage, or other improvement district the power or right the district then had to enter into and perform any contract or agreement of the United States Army Corps of Engineers or other federal agency.

Meaning of “this act”. See note to § 14-121-201.

Case Notes

Jurisdiction.

Where the lands proposed to be included in a drainage district lie in more than one county, jurisdiction to create the district is in the circuit court. Grassy Slough Drainage Dist. v. National Box Co., 111 Ark. 144, 163 S.W. 512 (1914); Bayou Meto Drainage Dist. v. Ingram, 165 Ark. 318, 264 S.W. 947 (1924); Grady Drainage Dist. v. Free, 178 Ark. 346, 10 S.W.2d 854 (1928).

Cited: Greer v. Blocker, 218 Ark. 259, 236 S.W.2d 68 (1951); Cherry v. Cousart Bayou Drainage Dist., 222 Ark. 404, 259 S.W.2d 513 (1953).

14-121-204. Signatures — Establishment when no petition is filed.

  1. If, upon hearing provided for in §§ 14-121-201 — 14-121-203, the petition is presented to the county court signed by a majority, either in numbers or in acreage or in value of the holders of real property within the proposed district, praying that the improvement be made, it shall be the duty of the county court to make the order establishing the district without further inquiry.
  2. If no petition is filed, it shall be the duty of the county court to investigate as provided in §§ 14-121-201 — 14-121-203 and to establish the district if it is of the opinion that the establishment thereof will be to the advantage of the owners of real property therein.
  3. The petition provided for therein may be signed by guardians for their wards, and by trustees, executors, and administrators for the estates represented by them.
  4. If the signature of any corporation thereto is attested by the corporate seal, the signature shall be sufficient evidence of the assent of the corporation to the petition.

History. Acts 1909, No. 279, § 2, p. 829; 1911, No. 221, § 2; C. & M. Dig., § 3608; Pope's Dig., § 4456; A.S.A. 1947, § 21-502.

Case Notes

Petitions.

Where the petition for the establishment of an improvement district does not have a majority of the signatures of landowners, either in number, acreage, or value, there should be no uncertainty about it being to the advantage of the landowners; and under such circumstances, an uncertainty should be resolved in favor of the owners of the property to be assessed upon whose shoulders the burden of the improvement will rest. Jack Bayou Drainage Dist. v. St. Louis, I.M. & S. Ry., 116 Ark. 30, 171 S.W. 867 (1914).

The organization of a drainage district was not rendered invalid because a second petition was not filed nor because, in making the final order establishing the district, the court excluded three sections of land embraced in the original petition. Jones v. Fletcher, 132 Ark. 328, 200 S.W. 1034 (1918).

Where a majority in acreage of the property owners in a drainage district sign a petition asking for the cleaning out of ditch, the district has right to purchase equipment to be used on the work. Halsell v. Draingage Dist. of Mississippi County, 216 Ark. 746, 227 S.W.2d 136 (1950).

14-121-205. Effect of order establishing district — Appeal.

  1. The order of the county court establishing the district shall have all of the force of a judgment.
  2. Any owner of real property within the district may appeal from the judgment within twenty (20) days after the judgment has been made, but if no appeal is taken within that time, the judgment shall be deemed conclusive and binding upon all the real property within the bounds of the district and upon the owners thereof. Any owner of property in the district may within a like time appeal from any order refusing to establish the district.

History. Acts 1909, No. 279, § 3, p. 829; 1911, No. 221, § 3; C. & M. Dig., § 3609; Pope's Dig., § 4457; A.S.A. 1947, § 21-503.

Case Notes

Constitutionality.

This section affords due process of law. Dickerson v. Tri-County Drainage Dist., 138 Ark. 471, 212 S.W. 334 (1919).

Appeals.

Where landowner did not lodge the transcript in the circuit court for one year after the allowance of the appeal, it was within the discretion of the court to determine whether it would permit him to prosecute the appeal. Wulff v. Clabourne, 107 Ark. 325, 155 S.W. 497 (1913).

Jurisdiction.

Although the attempted organization of a drainage district is void, the county court has no jurisdiction to grant relief by injunction to property owners against unlawful acts of the commissioners. Wilson v. Mattix, 149 Ark. 23, 231 S.W. 197 (1921).

Where original order establishing district was void because the description of the land described no land, the county court had jurisdiction to create a new district on a new petition in which the lands were correctly described although at the time of the latter order an appeal from the first order was pending. O'Kane v. McLean Bottom Levee & Drainage Dist., 211 Ark. 938, 203 S.W.2d 392 (1947).

The county court is authorized to establish a drainage district. Walker v. Roland Drainage Dist., 212 Ark. 633, 207 S.W.2d 319 (1948).

14-121-206. Advancement of cases involving validity of organization.

All cases in which there arises a question of the validity of the organization of drainage districts shall be advanced as matters of public interest and heard in all courts at the earliest practicable moment.

History. Acts 1913, No. 177, § 12; C. & M. Dig., § 3644; Pope's Dig., § 4495; A.S.A. 1947, § 21-504.

14-121-207. Reorganization of districts formed under other laws.

Any district organized under the existing statutes may become a drainage district under the terms of this act as follows:

  1. If three (3) owners of real property within the district shall petition the county court to constitute them a drainage district under the terms hereof, the county court shall give notice of the application by two (2) weeks' publication in some newspaper published and having a bona fide circulation in the county, and of a time when the petition will be heard.
  2. All owners of real property within the district shall have the right to appear and contest the petition or to support it.
  3. The county court shall hear the evidence and shall either grant the petition or deny it, as it deems most advantageous to the property owners of the district. If it grants the petition, the district shall have all the rights and powers and be subject to all the obligations provided by the terms of this act.
  4. However, if the majority of the landowners of the district or the owners of a majority of the acreage therein petition for the adoption of this act, the county court must make an order declaring that the district shall henceforth be governed by the terms of this act and shall appoint commissioners of his own selection, who shall carry into effect, without delay, the proposed drainage improvement.
  5. The provisions of this act and the act of which it is amendatory shall not apply to or in any way affect Drainage District No. 2 and Drainage District No. 5, both in Poinsett County, as originally organized in and by the county court of the county. The court shall proceed to carry out the proposed improvements as if this act and the act of which it is amendatory had never been passed or become a law.

History. Acts 1909, No. 279, § 34, p. 829; 1911, No. 54, § 1; 1911, No. 221, § 5; C. & M. Dig., § 3654; Pope's Dig., § 4505; A.S.A. 1947, § 21-567.

Publisher's Notes. The former law relating to drainage districts that was in effect when Acts 1909, No. 279 was passed was Acts 1903, No. 159, which was repealed by Acts 1935, No. 60.

Meaning of “this act”. See note to § 14-121-202.

Case Notes

Circuit Court.

Where the lands lie in two counties, this section authorizes the filing of a petition in the circuit court to change a drainage district formed under the older statutes. Grassy Slough Drainage Dist. v. National Box Co., 111 Ark. 144, 163 S.W. 512 (1914).

14-121-208. Making districts created by special act into districts governed by general law.

All drainage districts created by special acts are made drainage districts under Acts 1909, No. 279, with all the powers conferred by the latter and with all the liabilities and restrictions thereby imposed. However, nothing in this section shall be construed as taking away from any improvement district created by special acts any powers which are thereby conferred upon it, nor shall it displace any commissioners or directors of such districts now in office.

History. Acts 1927, No. 227, § 1; Pope's Dig., § 4519; A.S.A. 1947, § 21-568.

Publisher's Notes. Acts 1909, No. 279, referred to in this section, is codified as §§ 21-501 — 21-503, 21-505, 21-506, 21-511 — 21-517, 21-523 — 21-528, 21-531 — 21-533, 21-542, 21-543, 21-546, 21-547, 21-549 — 21-551, 21-553 — 21-556, 21-564 — 21-567.

Case Notes

Constitutionality.

This section is an independent act and is not void as extending the special act by reference, in violation of Ark. Const., Art. 5, § 23. Winton v. Bartlett, 181 Ark. 669, 27 S.W.2d 100 (1930).

Purpose.

This section was intended to provide a uniform system for the operation of all drainage districts. Berry v. Cousart Bayou Drainage Dist., 181 Ark. 974, 28 S.W.2d 1060 (1930).

Drainage districts created by special acts prior to 1926 retain all the powers under the special acts granted to them and also have all powers allowed to such districts under the general law of 1909, for this is the legislative intent expressed in this section. Campbell v. Beaver Bayou Drainage Dist., 215 Ark. 187, 219 S.W.2d 934 (1949), cert. denied, 338 U.S. 829, 70 S. Ct. 80 (1949).

Applicability.

This section made the general drainage district law applicable to the Cypress Creek Drainage District, and therefore office of commissioner was appointive under provisions of § 14-121-301. Meador v. Warrington, 228 Ark. 297, 307 S.W.2d 75 (1957).

Commissioners.

This section has the effect of bringing all drainage districts under the general law, which, among other things, requires appointment of the commissioners of drainage districts by the court, so that special act where individual held office was superseded by the general law. Meador v. Warrington, 228 Ark. 297, 307 S.W.2d 75 (1957).

Powers.

Where a drainage district created by a special act was changed to a district operating under the general statutes, it was no longer bound by the limitations prescribed by the special act and could construct a levee. Britt v. Laconia Circle Special Drainage Dist., 165 Ark. 92, 263 S.W. 48 (1924) (decision under prior law).

Cited: Cherry v. Cousart Bayou Drainage Dist., 222 Ark. 404, 259 S.W.2d 513 (1953); Price v. Drainage Dist. No. 17, 302 Ark. 64, 787 S.W.2d 660 (1990).

Subchapter 3 — Board of Commissioners

Publisher's Notes. Acts 1939, No. 260, § 1, provides, in part, that where any drainage district in Arkansas is organized under any general or special act of the General Assembly provided for election of commissioners and, through error, the commissioners have not been elected but selected by some other method and the commissioners have taken the oath required by law and have served as commissioners in good faith, the acts of those commissioners are validated and shall have the same force and effect as though the commissioners had been selected in the manner provided by law.

Cross References. Certain boards of commissioners in drainage or levy districts, § 14-120-601 et seq.

Preambles. Acts 1969, No. 277 contained a preamble which read:

“WHEREAS, prior to the adoption of Amendment 14 to the Constitution of the State of Arkansas, which prohibited the enactment of local or special legislation, the General Assembly had by special Acts created a number of drainage districts in this State; and

“WHEREAS, Act 227 of 1927 (Arkansas Statutes 21-568) provided that all drainage districts created by special legislative Acts were reconstituted as drainage districts under the provisions of Act 279 of 1909; and

“WHEREAS, Section 4 of Act 279 of 1909, as amended, (Arkansas Statutes 21-505), provides for the appointment of three (3) commissioners of drainage districts effected by such Act; and

“WHEREAS, because of the establishment of a number of drainage districts by special Acts a number of vacancies have been created in drainage district boards and confusion has arisen with respect to the membership of such boards; and

“WHEREAS, it is believed that these matters should be clarified by the enactment of authority whereby a majority in value of the owners of real property in drainage district may provide for the increasing of the number of members on the Board of Commissioners of the drainage district from three (3) to five (5)….”

Effective Dates. Acts 1909, No. 279, § 35: effective on passage.

Acts 1913, No. 177, § 22: approved Mar. 13, 1913. Emergency declared.

Acts 1921, No. 353, § 3: effective on passage.

Acts 1927, No. 203, § 5: effective on passage.

Acts 1955, No. 66, § 2: Feb. 17, 1955. Emergency clause provided: “Inasmuch as there are many drainage districts in the State whose levees, lands and crops are being washed away by flash floods; and which also suffer at times from drouths, and inasmuch as the Federal Government is assisting in the buildings of dams and reservoirs to impound the head waters causing same, and which dams also serve as a means of irrigating said lands during drouths; an emergency is hereby declared to exist, and being necessary for the public health and convenience and safety, this act will take immediate effect and be in force on and from the date of its passage and approval.”

Acts 1957, No. 327, § 7: approved Mar. 27, 1957. Emergency clause provided: “It is hereby ascertained and declared that there are many projects which the U. S. Government might construct if an agency existed for the maintenance of such projects after construction, and that such projects would be of immense benefit to the citizens of this state and that the proper development of the state is being retarded because no agency can be created under the present laws of the state for the maintenance of such projects, and that an emergency exists and this act being necessary for the immediate promotion of public peace, health and safety, the same shall take effect and be in force from and after its passage.”

Acts 1969, No. 27, § 3: Feb. 4, 1969. Emergency clause provided: “It is hereby found and determined by the General Assembly that the requirement that the board of commissioners of a drainage district retain 20% of the compensation for work done by a contractor until the contract is completed is unduly restrictive; that many drainage district boards have been retaining only 10% of the estimated work as construction has progressed rather than 20%; that there is immediate need for legislation to remove this unduly restrictive requirement in order that public contractors not be unduly oppressed by the greater amount of retainage, and in order that public works be bid at the lowest possible prices and completed as expeditiously as possible. Therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation of the public peace, health and safety, shall be in full force and effect from and after the date of its passage and approval.”

Acts 1969, No. 277, § 4: became law without Governor's signature, Mar. 18, 1969. Emergency clause provided: “It is hereby found and determined by the General Assembly that considerable confusion exists with respect to the membership of a number of drainage districts which were established by special Acts of the General Assembly and that the immediate passage of this Act is necessary to establish procedures to clarify such confusion and to enable a majority in value of the owners of real property in a drainage district to provide for the increase of the Board of Commissioners from three (3) to five (5) members thereby improving and expediting the management of the affairs of such district. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1970 (Ex. Sess.), No. 61, § 4: Mar. 13, 1970. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health, and safety, shall be in effect from and after its passage and approval.”

Acts 1975, No. 225, § 26: became law without Governor's signature, Feb. 19, 1975. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this state and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this act. Therefore, an emergency is declared to exist and this act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 1981, No. 425, § 54: Mar. 11, 1981. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 1995, No. 343, § 8: Feb. 16, 1995. Emergency clause provided: “It is hereby found and determined by the General Assembly that Drainage Improvement Districts should be authorized to levy their assessments as a flat tax per acre; that the statutes do not specifically now authorize such; that such authority should be granted immediately; and this act will grant that authority. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Research References

U. Ark. Little Rock L.J.

Goldner, A Call for Reform of Arkansas Municipal Law, 15 U. Ark. Little Rock L.J. 175.

14-121-301. Members generally.

  1. When the county court has established any such drainage district, it shall appoint three (3) owners of real property within the county to act as commissioners.
  2. Each of these commissioners shall take the oath of office required by Arkansas Constitution, Article 19, § 20, and shall also swear that he will not directly or indirectly be interested in any contract made by the board and that he will well and truly assess all benefits resulting from the improvement and all damages caused thereby.
  3. Any commissioner failing to take the oath within thirty (30) days after his appointment shall be deemed to have declined, and his place shall be filled by the county court if in session, and if not, by the county judge.
  4. All vacancies on the board shall be filled by the county court, or the county judge in vacation; but if a majority in value of the owners of real property in the district shall petition for the appointment of particular persons as commissioners, it shall be the duty of the county court or county judge to appoint the persons so designated.
    1. The county court shall remove any member of the board on the petition of a majority in value of the owners of real property in the district.
    2. The county court may remove any commissioner and appoint his successor upon proof of incompetency or neglect of duty, but the charges shall be in writing, and the commissioner shall have the right to be heard in his defense and to appeal to the circuit court.
  5. The commissioners provided for in this subchapter shall receive as compensation the sum of twenty-five dollars ($25.00) each day for attending meetings of the board, together with their necessary expenses.

History. Acts 1909, No. 279, §§ 4, 13, 18, p. 829; 1911, No. 221, § 4; C. & M. Dig., §§ 3610, 3621, 3626; Acts 1921, No. 353, § 2; Pope's Dig., §§ 4458, 4472, 4477; Acts 1969, No. 152, § 3; 1971, No. 95, § 1; A.S.A. 1947, §§ 21-505, 21-506, 21-523.

Case Notes

Oath of Office.

Oath of office taken by commissioners of levee and drainage district was in substantial, if not literal, compliance with this section and Ark. Const., Art. 19, § 20. O'Kane v. McLean Bottom Levee & Drainage Dist., 211 Ark. 938, 203 S.W.2d 392 (1947).

Where commissioner did not take oath after appointment, he was not a de jure officer although he did take oath after election, since commissioners of drainage districts do not take office by election. Meador v. Warrington, 228 Ark. 297, 307 S.W.2d 75 (1957).

Owners of Real Property.

This section provides that the commissioners shall be owners of real property within the county; the fact they own land within the district does not disqualify them to act as commissioners. Less Land Co. v. Fender, 119 Ark. 20, 173 S.W. 407 (1915).

The commissioners of a drainage district lying in more than one county must be owners of real property within the district. Oates v. Cypress Creek Drainage Dist., 135 Ark. 149, 205 S.W. 293 (1918).

Special Acts.

The elective term of office of commissioner contemplated by the special act creating the Cypress Creek Drainage District has been superseded by the appointive power granted under this section by virtue of § 14-121-208. Meador v. Warrington, 228 Ark. 297, 307 S.W.2d 75 (1957).

Cited: Beaver Bayou Drainage Dist. v. Lee-Phillips Drainage Dist., 221 Ark. 550, 254 S.W.2d 465 (1953); Meador v. Warrington, 228 Ark. 297, 307 S.W.2d 75 (1957).

14-121-302. Members — Increase in number.

  1. Whenever a majority in value of the owners of real property in any drainage district in this state which was established pursuant to the provisions of special acts of the General Assembly, but which were, by the provisions of § 14-121-208, brought under the provisions of §§ 14-121-101, 14-121-102, 14-121-104, 14-121-105, 14-121-201 — 14-121-205, 14-121-207, 14-121-301, 14-121-304, 14-121-305, 14-121-307, 14-121-310, 14-121-311, 14-121-313, 14-121-401 — 14-121-406, 14-121-408, 14-121-411, 14-121-412, 14-121-422 — 14-121-432, 14-121-440 — 14-121-442, 14-121-802 — 14-121-805, and 14-121-808 shall file petitions with the county court of the county in which the drainage district is located requesting that the membership of the board of commissioners of the drainage district shall be increased from three (3) to five (5) members, it shall be the duty of the county court to appoint, in the manner provided by law, two (2) additional owners of real property in the district as commissioners of the district. Thereafter, the total membership of the board of commissioners of the drainage district shall consist of five (5) members.
  2. Such additional members shall be appointed in the same manner and vacancies in any position shall be filled in the same manner as now provided by law.
  3. All action by the board of commissioners of any drainage district affected by this section shall be a majority vote of the membership of the board of commissioners.

History. Acts 1969, No. 277, § 1; A.S.A. 1947, § 21-505.1.

14-121-303. Members — District in more than one county.

  1. In case of a district lying in more than one (1) county, three (3) commissioners shall be appointed, and in all cases the commissioners must be owners of real property within the district.
  2. However, where a district embraces lands in three (3) or more counties, the court may appoint as many commissioners as there are counties, but it shall be discretionary with the court whether he shall appoint a commissioner from each county.

History. Acts 1913, No. 177, § 6; C. & M. Dig., § 3639; Pope's Dig., § 4490; Acts 1957, No. 327, § 2; A.S.A. 1947, § 21-508.

Publisher's Notes. Acts 1957, No. 327, § 6, provided that the act would be cumulative and would not repeal any then existing law and would not apply to any district already then organized. The section further provided that the act would not be deemed to take from any levee, drainage, or other improvement district the power or right the district then had to enter into and perform any contract or agreement of the United States Army Corps of Engineers or other federal agency.

Case Notes

Owners of Real Property.

The commissioners of a drainage district lying in more than one county must be owners of real property within the district. Oates v. Cypress Creek Drainage Dist., 135 Ark. 149, 205 S.W. 293 (1918).

14-121-304. Organization.

The board shall select one (1) of their number as chairman, and a majority shall constitute a quorum.

History. Acts 1909, No. 279, § 4, p. 829; 1911, No. 221, § 4, p. 193; C. & M. Dig., § 3610; Acts 1921, No. 353, § 2; Pope's Dig., § 4458; A.S.A. 1947, § 21-505.

Case Notes

Cited: Beaver Bayou Drainage Dist. v. Lee-Phillips Drainage Dist., 221 Ark. 550, 254 S.W.2d 465 (1953); Meador v. Warrington, 228 Ark. 297, 307 S.W.2d 75 (1957).

14-121-305. Powers and duties.

  1. The boards of commissioners mentioned in this chapter shall have control of the construction of the improvements in their districts.
    1. A board may advertise in local papers or papers published in other states for proposals for doing any work by contract.
    2. No work exceeding twenty thousand dollars ($20,000) shall be let without public advertisement.
    3. A board may accept or reject any proposals.
  2. A board may:
    1. Appoint all necessary agents for carrying on the work and fix their pay;
    2. Buy all necessary material and implements;
    3. Sell material or implements on hand which may not be necessary for the completion of the improvement; and
    4. Make all such contracts in the prosecution of the work as may best subserve the public interest.
  3. It shall be the duty of a board to have the amount of work done by any contractor estimated, from time to time as may be desirable, by the engineer selected by the board. The board shall draw its warrants in favor of the contractor for not more than ninety percent (90%) of the amount of work so reported, reserving the remainder until it has been ascertained that the work has been completed according to contract and is free from liens.

History. Acts 1909, No. 279, §§ 13, 14, p. 829; C. & M. Dig., §§ 3621, 3622; Pope's Dig., §§ 4472, 4473; Acts 1969, No. 27, § 1; 1969, No. 152, § 3; A.S.A. 1947, §§ 21-523, 21-524; Acts 1987, No. 79, § 1; 1995, No. 343, § 1; 2001, No. 200, § 1.

Case Notes

In General.

Commissioners must proceed in the regular manner prescribed by statute without any conduct on their part, intentional or otherwise, which is calculated to deceive or mislead property owners to their detriment. Protho v. Williams, 147 Ark. 535, 229 S.W. 38 (1921).

Employment of Engineers.

The commissioners of a drainage district have authority to employ and pay engineers. Wallace v. McCartney, 159 Ark. 617, 252 S.W. 600 (1923).

Liability.

The commissioners of a district are exempted from liability for damages resulting to a landowner from faulty or improper construction of the improvement. Wood v. Drainage Dist., No. 2, 110 Ark. 416, 161 S.W. 1057 (1913).

Cited: Meador v. Warrington, 228 Ark. 297, 307 S.W.2d 75 (1957).

14-121-306. Authority to secure federal aid — Surveys.

All drainage districts in the State of Arkansas, whether created by special act or otherwise, are authorized, when considered practicable by the board of commissioners or directors of any such district, to make any necessary surveys for the securing of federal aid and assistance in the construction of dams and reservoirs for impounding of head waters which cause floods that overflow the ditches, wash away the levees and crops, and erode the lands in the district.

History. Acts 1955, No. 66, § 1; A.S.A. 1947, § 21-585.

14-121-307. Cooperation with the United States.

  1. If improvements are undertaken in cooperation with the United States, the board may enter into an agreement providing for the construction of the works of improvement and awarding of contracts therefor, to be by, and under the control and supervision of, the United States or any agency or instrumentality thereof.
  2. In that event, the advertisement, award, and carrying out of the contracts shall be in accordance with the provisions of law applicable to the federal agency.

History. Acts 1909, No. 279, § 13; C. & M. Dig., § 3621; Pope's Dig., § 4472; Acts 1969, No. 152, § 3; A.S.A. 1947, § 21-523.

Cross References. Agreements with United States authorized, §§ 14-120-216, 14-120-217.

Case Notes

Cited: Meador v. Warrington, 228 Ark. 297, 307 S.W.2d 75 (1957).

14-121-308. Authority to improve or extend districts, borrow money, and issue bonds.

  1. The commissioners of any drainage district organized under the provisions of §§ 14-121-101 — 14-121-104, 14-121-201 — 14-121-207, 14-121-301, 14-121-303 — 14-121-305, 14-121-307, 14-121-309 — 14-121-314, 14-121-401 — 14-121-406, 14-121-408, 14-121-411, 14-121-412, 14-121-420 — 14-121-424, 14-121-425 (a), (b), 14-121-426 — 14-121-433, 14-121-440 — 14-121-442, 14-121-501, 14-121-502, 14-121-802 — 14-121-808, and 14-121-810 shall have the power as hereinafter provided, either before or after the completion of the plans for the work therein, to deepen or widen the drains in the district and to build additional laterals for the better drainage of its lands, and to borrow money for that purpose.
  2. To that end, they shall have power to issue negotiable bonds bearing a rate or rates of interest as provided in the resolution of the commissioners authorizing their issuance for the purpose of securing funds with which to complete the work of improvement in the district, and of widening or deepening the ditches, adding laterals, and for maintenance of the ditches and levees.
  3. They may secure the payment of the bonds by a pledge and a mortgage of the assessment of the benefits in the district, and of all reassessments thereof.

History. Acts 1927, No. 203, § 1; Pope's Dig., § 4526; Acts 1970 (Ex. Sess.), No. 61, § 1; 1975, No. 225, § 9; 1981, No. 425, § 9; A.S.A. 1947, § 21-518.

Case Notes

New Plans.

Commissioners of drainage district do not have to file new plans if residuary betterments are for purpose of maintenance of original construction, but if assessments are for expansion or structural enlargements not contemplated by original proceedings, then plans for additional undertakings must be filed. Owen v. Central Clay Drainage Dist., 216 Ark. 159, 224 S.W.2d 529 (1949).

Petition filed by commissioners asking permission to charge betterments with a one per cent annual levy to preserve levee without necessity of filing additional plans was granted, as levee was an integral part of the drainage district. Owen v. Central Clay Drainage Dist., 216 Ark. 159, 224 S.W.2d 529 (1949).

Cited: Walker v. Roland Drainage Dist., 212 Ark. 633, 207 S.W.2d 319 (1948).

14-121-309. Deposit of funds — Bond.

  1. If the commissioners deem best, they shall deposit the funds of the district in a solvent bank which will pay interest at not less than three percent (3%) nor exceeding four percent (4%) and shall give a good bond, conditioned that the funds shall be safely kept and paid out in accordance with the law.
  2. The order shall relieve the treasurer and his bondsmen from liability for loss of the funds through the insolvency of the bank and its bondsmen, and no commission shall be paid the treasurer on sums so deposited. The bank shall pay out the funds only on warrants drawn upon it as prescribed for funds in the hands of the treasurer.

History. Acts 1913, No. 177, § 17; C. & M. Dig., § 3649; Pope's Dig., § 4500; A.S.A. 1947, § 21-552.

Cross References. Penalty for failing to require bond, § 14-86-1801.

Case Notes

Treasurer's Commissions.

The treasurer of a county is not entitled to any commissions on sums deposited with him by the county collector, but which the commissioners of the district had deposited in a bank. Brown v. Epperson, 148 Ark. 62, 228 S.W. 1048 (1921).

14-121-310. Treasurer — Warrants.

  1. The treasurer shall:
    1. Pay out no money, save upon the order of the board and upon a warrant signed by the chairman of the board;
    2. Be allowed a commission not exceeding one percent (1%) upon all sums lawfully paid out, to be fixed by the board; and
    3. Give special bond in a sum to be fixed by the county court as treasurer of each drainage district.
    1. Every warrant shall state upon its face to whom, the amount, and the purpose for which it is issued.
    2. All warrants shall be dated and numbered consecutively. A record shall be kept by the board of the number and amount of each warrant.
    3. No warrant shall be paid unless there is in the treasury funds enough to pay all outstanding warrants bearing a lower number.
    4. No warrant shall be increased by reason of any depreciation in the market value thereof, nor shall any contract or warrant be made payable or paid in anything but currency.

History. Acts 1909, No. 279, § 11, p. 829; C. & M. Dig., § 3619; Pope's Dig., § 4470; A.S.A. 1947, § 21-551.

14-121-311. Records and reports of financial transactions — Penalty.

  1. The commission shall also keep the original itemized bills and accounts of all financial transactions and all warrants which have been paid. Each warrant shall state on its face the service for which it was rendered, the person to whom paid, and the amount of the warrant.
    1. On or before January 1 of each year, the commission shall file with the county clerk a sworn statement of the financial condition of the district, to cover the year ending on November 1 preceding.
    2. The report shall contain, among other things:
      1. A statement of the cash on hand January 1 of the year for which the report is made, together with all other assets of the district;
      2. The total receipts for the preceding year; and
      3. The disbursements for administration, for construction, and for maintenance of bonds redeemed, of interest paid, and of interest due on outstanding bonds, together with all other indebtedness of the district.
    1. In districts with revenues, from whatever source derived, in excess of five thousand dollars ($5,000) per year, the books, records, and last annual report of the district shall be examined at least one (1) time a year by a certified public accountant.
    2. The accountant shall file a report of the examination with the county court within thirty (30) days after completing the examination.
    3. The accountant shall recommend the form and methods for keeping books and records and for making the reports of the district.
    4. The expense of the examination shall be paid as a part of the district's expenses.
  2. All accounts of this district shall be open for inspection by any person lawfully entitled to inspect them.
    1. The failure of any of the officials named in this section to perform the duties and acts required herein shall be a misdemeanor, punishable by a fine of not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000) for each offense.
    2. For the making of a false or fraudulent report, the person or persons so making shall be guilty of perjury and punished accordingly.

History. Acts 1909, No. 279, § 30, p. 829; C. & M. Dig., § 3637; Pope's Dig., § 4487; A.S.A. 1947, § 21-556; Acts 1987, No. 472, § 3.

Publisher's Notes. Acts 1987, No. 472, § 1, provided that there are many small levee and drainage districts and improvement project areas of conservation districts with revenues of $5,000 per year or less; under current law, the costs of formal audits have become a burden to the small districts and should be removed.

Case Notes

In General.

The statutory procedure provided by this section is administrative rather than judicial. Keenan v. Williams, 225 Ark. 556, 283 S.W.2d 688 (1955).

Jurisdiction in Equity.

A court of equity has jurisdiction to prevent the misapplication of improvement district funds, and this section does not have the effect of depriving such court of that jurisdiction. Keenan v. Williams, 225 Ark. 556, 283 S.W.2d 688 (1955).

14-121-312. Attorneys.

The commissioners of drainage districts appointed under § 14-121-301 shall have power to employ attorneys as needed by the district and to fix their compensation.

History. Acts 1913, No. 177, § 13; C. & M. Dig., § 3645; Pope's Dig., § 4496; A.S.A. 1947, § 21-507.

Case Notes

Power of Commissioners.

This section does not empower the commissioners to compel attorneys to represent the district or to fix arbitrarily their fees after they are employed. Bayou Meto Drainage Dist. v. Chapline, 143 Ark. 446, 220 S.W. 807 (1920).

14-121-313. Liability.

No member of any board of improvement shall be liable for any damages sustained by anyone in the prosecution of the work under his charge unless it shall be made to appear that he has acted with a corrupt and malicious intent.

History. Acts 1909, No. 279, § 16, p. 829; C. & M. Dig., § 3624; Pope's Dig., § 4475; A.S.A. 1947, § 21-526.

14-121-314. Ratification of commissioners' acts.

The property owners in a drainage district may:

  1. Consent to waive the right to resort to courts and may absolutely ratify and confirm what has been done by the board of commissioners and all other officials with reference to the district; and
  2. Thereafter, be forever barred from testing or contesting in any way the validity of the proceedings up to that time, the assessments made or the tax levied for the payment of principal and interest of bonds, or for any other purpose.

History. Acts 1913, No. 177, § 8; C. & M. Dig., § 3641; Pope's Dig., § 4492; A.S.A. 1947, § 21-562.

Case Notes

Contracts.

If landowners execute easement contracts to federal government for construction of levee, they are forever barred from contesting any of the proceedings up to the date of the execution of the contracts, including organization of district and assessments made by the commission. Harris v. Blackburn, 215 Ark. 195, 219 S.W.2d 922 (1949).

Delays.

Delay of 14 years while waiting for federal government aid in construction of levee was not “piecemeal construction” so as to prejudice rights of landowners where evidence showed that 14-year period was groping period impliedly consented to by the landowners. Harris v. Blackburn, 215 Ark. 195, 219 S.W.2d 922 (1949).

Irregularities.

Where there was a variance between an order of the court creating a drainage district and the published notice thereof in that a certain tract of land was substituted in the notice for one contained in the order, all of the property owners in the proposed district could consent to waive the irregularity, but a waiver by the owner of two tracts was insufficient. Lane v. Cook, 135 Ark. 528, 205 S.W. 887 (1918).

Subchapter 4 — District Operation Generally

Effective Dates. Acts 1909, No. 279, § 35: effective on passage.

Acts 1911, No. 136, § 2: approved Mar. 28, 1911. Emergency declared.

Acts 1913, No. 177, § 22: approved Mar. 13, 1913. Emergency declared.

Acts 1919, No. 467, § 2: approved Mar. 28, 1919. Emergency declared.

Acts 1923, No. 562, § 4: approved Mar. 22, 1923. Emergency clause provided: “All laws and parts of laws in conflict with this act are hereby repealed; and this act being necessary for the immediate preservation of the public peace, health and safety, an emergency is hereby declared, and it shall take effect and be in force from and after its passage.”

Acts 1927, No. 59, § 4: approved Feb. 24, 1927. Emergency clause provided: “And it appearing that a number of drainage districts in the State of Arkansas have issued bonds to pay the costs of preliminary expenses, and that such districts are likely to be forced into liquidation and dissolution unless immediate legislative relief is granted, thereby preventing the making of improvements essential to the public health, an emergency is hereby declared to exist, and it is declared that this act is necessary for the immediate preservation of the public health, and that the same shall take effect and be in force from and after its passage.”

Acts 1927, No. 203, § 5: effective on passage.

Acts 1937, No. 350, § 3: effective on passage.

Acts 1939, No. 50, § 3: effective on passage.

Acts 1939, No. 163, § 4: approved Feb. 28, 1939. Emergency clause provided: “This act being necessary for the immediate preservation of the public health and security, an emergency is hereby declared, and this act shall be in force and effect from and after its passage.”

Acts 1941, No. 285, § 2: effective on passage.

Acts 1945, No. 180, § 3: effective on passage.

Acts 1949, No. 28, § 2: approved Feb. 1, 1949. Emergency clause provided: “Whereas the ditches and improvements of drainage districts within the State are deteriorating for lack of proper care and maintenance, and whereas statutes now in force require that hearings on the levying of maintenance taxes to be held at regular court terms only, thereby causing serious and prolonged delay to the detriment of the drainage systems, this Act is necessary for the immediate preservation of the public peace, health and safety, and an emergency is hereby declared to exist. This Act shall, therefore, take effect and be in force from and after its passage.”

Acts 1951, No. 72, § 4: approved Feb. 9, 1951. Emergency clause provided: “Because many of the ditches and improvements in drainage districts in this State are deteriorating for lack of necessary maintenance and maintenance work could be done at a great saving to the property owners if necessary work could be done before the collection of the annual maintenance taxes, this Act is necessary for the immediate preservation of the public peace, health, and safety, and an emergency is hereby declared to exist. This Act shall, therefore, take effect and be in force from and after its passage.”

Acts 1957, No. 327, § 7: approved Mar. 27, 1957. Emergency clause provided: “It is hereby ascertained and declared that there are many projects which the U. S. Government might construct if an agency existed for the maintenance of such projects after construction, and that such projects would be of immense benefit to the citizens of this state and that the proper development of the state is being retarded because no agency can be created under the present laws of the state for the maintenance of such projects, and that an emergency exists and this act being necessary for the immediate promotion of public peace, health and safety the same shall take effect and be in force from and after its passage.”

Acts 1970 (Ex. Sess.), No. 49, § 4: Mar. 13, 1970. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health, and safety, shall be in effect from and after its passage and approval.”

Acts 1975, No. 225, § 26: became law without Governor's signature, Feb. 19, 1975. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this state and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this act. Therefore, an emergency is declared to exist and this act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 1981, No. 425, § 54: Mar. 11, 1981. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 1995, No. 343, § 8: Feb. 16, 1995. Emergency clause provided: “It is hereby found and determined by the General Assembly that Drainage Improvement Districts should be authorized to levy their assessments as a flat tax per acre; that the statutes do not specifically now authorize such; that such authority should be granted immediately; and this act will grant that authority. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

14-121-401. Plans for improvements.

  1. As soon as the board shall have formed its plans for improvements and shall have ascertained the cost thereof, it shall file the plans with the county clerk.
  2. The plans shall be accompanied by:
    1. A map showing the location of all main and lateral ditches; and
    2. Specifications fully describing the character of the improvements to be made, the width and depth of the ditches, the probable quantity of earth to be removed, and all other work to be done.

History. Acts 1909, No. 279, § 6, p. 829; C. & M. Dig., § 3612; Pope's Dig., § 4660; A.S.A. 1947, § 21-512.

Case Notes

Delays.

Commissioners had power to delay construction of pumping plant under plan calling for construction of levee, additional drainage, and pumping plant. Clements v. Bronaugh, 218 Ark. 783, 239 S.W.2d 1 (1951), cert. denied, 342 U.S. 866, 72 S. Ct. 106 (1951).

Cited: Kersh Lake Drainage Dist. v. State Bank & Trust Co., 85 F.2d 643 (8th Cir. 1936).

14-121-402. Assessment of benefits and damages within district.

    1. The commissioners shall proceed to assess the lands within the district and shall inscribe in a book the description of each tract of land. They shall assess the value of the benefits to accrue to each tract by reason of the improvement and shall enter such assessment of benefits opposite the description, together with an estimate of what the landowner will probably have to pay on the assessment.
    2. These assessments shall embrace not merely the land but all public and corporate roads, railroads, tramroads, and other improvements on lands that shall be benefited by the drainage system.
    3. They shall place opposite each tract of land the name of the supposed owner, as shown by the last county assessment, but a mistake in the name shall not vitiate the assessment. They may correct evident errors which occur in the county assessment list.
  1. If any commissioner or any private corporation or other drainage district has dug ditches or made drainage works that can be profitably used as a part of the general system, the value of the ditches or drainage works to the district shall be assessed by the commissioners, shall separately appear upon their assessment, and shall be paid for by the district, either in cash or by reduction of assessment.
    1. The commissioners shall also assess all damages that will accrue to any landowner by reason of the proposed improvement, including all injury to lands taken or damaged.
    2. Where they return no such assessment of damages as to any tract of land, it shall be deemed a finding by them that no damage shall be sustained.
    3. Whenever the district embraces land in more than one (1) county, the secretary of the board of commissioners shall forward to the county clerk of each county in which the lands of the district lie a copy of the assessment of benefits insofar as relates to the lands in that county. The copy shall be preserved by the respective county clerks as permanent records of their offices.

History. Acts 1909, No. 279, § 7, p. 829; 1913, No. 177, § 1; C. & M. Dig., § 3613; Pope's Dig., § 4461; Acts 1957, No. 327, § 3; A.S.A. 1947, § 21-513.

Publisher's Notes. Acts 1957, No. 327, § 6, provided that the act would be cumulative and would not repeal any then existing law and would not apply to any district already then organized. The section further provided that the act would not be deemed to take from any levee, drainage, or other improvement district the power or right the district then had to enter into and perform any contract or agreement of the United States Army Corps of Engineers or other federal agency.

Case Notes

Benefit Assessment.

—In General.

The amount of benefit which an improvement will confer upon particular land and whether it is benefited at all is a matter of forecast and estimate. Oates v. Cypress Creek Drainage Dist., 135 Ark. 149, 205 S.W. 293 (1918).

All the elements of betterment need not be expressly shown on the drainage district benefit assessments, so long as reasonable men, with the essential information, conclude that the undertaking would especially benefit the whole district, and the methods of assessing the benefits to the property do not show on its face that the assessments were arbitrary and discriminatory. Lessenberry v. Little Rock-Pulaski Drainage Dist., 211 Ark. 1046, 204 S.W.2d 554 (1947).

The drainage commissioners who adopt the appraisers' report on benefit assessment are presumed to have been in possession of information necessary to determine whether the methods used were fair and the result uniform within the scope of due process. Lessenberry v. Little Rock-Pulaski Drainage Dist., 211 Ark. 1046, 204 S.W.2d 554 (1947).

—Public Roads.

This section does not authorize an assessment of benefits against county roads. Board of Comm'rs v. Arkansas County, 179 Ark. 91, 14 S.W.2d 226 (1929).

—Railroads.

It was proper in assessing the property of a railroad company within the district to make a total assessment of the entire benefit to the whole property of the railway company within the district. Oates v. Cypress Creek Drainage Dist., 135 Ark. 149, 205 S.W. 293 (1918).

Collateral Attack.

A collateral attack upon an assessment of benefits which has become final because of the failure to attack it within the time and manner provided by law will not lie unless the assessment is void on its face, and the rule applies to districts formed under general laws as well as those formed under special acts. Main v. Drainage Dist., 204 Ark. 506, 162 S.W.2d 901 (1942).

14-121-403. Assessment of lands outside of district — Hearing — Extension of boundaries.

  1. If the commissioners find that other lands not embraced within the boundaries of the district will be affected by the proposed improvement, they shall assess the estimated benefits and damages to the land and shall specially report to the county court the assessment which they have made on the lands beyond the boundaries of the district as already established.
  2. It shall then be the duty of the county court to give notice in a newspaper published in the county where the lands lie, describing the additional lands which have been assessed.
  3. The owners of real property so assessed shall be allowed twenty (20) days after the publication of the notice to file with the county clerk their protest against being included within the district.
  4. The county court shall, at its next session, investigate the question of whether the lands beyond the boundaries of the district so assessed by the commissioners will in fact be benefited or damaged by the making of the improvement.
  5. From its finding in that regard, either the property owners affected by the assessment or the commissioners of the district may appeal to the circuit court within twenty (20) days.
  6. If the finding is in favor of the commissioners, the limits of the district shall be extended so as to embrace any lands that may be affected by the making of the improvement.

History. Acts 1909, No. 279, § 7, p. 829; 1913, No. 177, § 1; C. & M. Dig., § 3614; Pope's Dig., § 4462; A.S.A. 1947, § 21-514.

Cross References. Assessments not to be reduced after issuance of bonds, § 14-86-602.

Right of review of assessment by chancery court, § 14-120-501.

Case Notes

Irregularities.

Where lands in one township were not included in drainage district when formed but were treated as being therein and assessment of benefits was made, failure to comply with statutory procedure was held cured by legislation approved after county clerk had received from the commissioners the assessment rolls which included lands of the township. Miller v. Cache River Drainage Dist., 205 Ark. 618, 170 S.W.2d 371 (1943).

Municipalities.

Rural property owners in forming drainage district for purpose of controlling flood waters in area were not prohibited by provisions of Ark. Const., Art. 19, § 27, from including greater part of city in district even though consent of property owners in city was not obtained. Curlin v. Harding Drain Improv. Dist., 221 Ark. 412, 253 S.W.2d 345 (1952).

Proposed Improvements.

A drainage district may not add lands after the improvements have been completed on the basis that the lands to be added benefit from the improvements, as the improvement is no longer “proposed” but has been completed. Williams v. Village Creek, White River & Mayberry Levee & Drainage Dist., 285 Ark. 194, 685 S.W.2d 797 (1985).

14-121-404. Filing the assessment — Notice.

  1. When their assessment is completed, the commissioners shall subscribe the assessment and deposit it with the county clerk, where it shall be kept and preserved as a public record.
  2. Upon the filing of the assessment, the county clerk shall give notice of the fact by publication for two (2) weeks in some newspaper issued in each of the counties in which the lands of the district may lie.
  3. The notice shall give a description of the lands assessed for drainage purposes in the district, so that the owners of the lands, if they desire, may appear before the county court on a certain day, naming the day and present complaints, if they have any, against the assessment of any lands in the district.

History. Acts 1909, No. 279, § 7, p. 829; 1913, No. 177, § 1; C. & M. Dig., § 3615; Acts 1925, No. 124, § 3; Pope's Dig., § 4463; A.S.A. 1947, § 21-515.

Case Notes

Jurisdictional Requirement.

The requirements of this section are jurisdictional, and compliance is necessary. Drainage Dist, No. 9 v. Merchants' & Planters' Bank, 176 Ark. 474, 2 S.W.2d 1079 (1928).

Publication.

This section is complied with by publishing the notice once a week for two weeks in a daily newspaper. Johnson v. Tucker Lake Levee & Drainage Dist., 168 Ark. 889, 271 S.W. 965 (1925).

Notices of the organization of a drainage district and of assessment of benefits therein which were printed on presses located across the state line but brought into a town within the county and bearing the name of such town and county and distributed therefrom in the first instance were a sufficient compliance with this section. Drainage Dist, No. 9 v. Merchants' & Planters' Bank, 176 Ark. 474, 2 S.W.2d 1079 (1928).

Cited: Beaver Bayou Drainage Dist. v. Lee-Phillips Drainage Dist., 221 Ark. 550, 254 S.W.2d 465 (1953).

14-121-405. Hearing on complaints — Appeal.

  1. Any owner of real property within the district who perceives himself to be aggrieved by the assessment of benefits or damages or deems that the assessment of any land in the district is inadequate shall present his complaint to the county court at the first regular, adjourned, or special session held more than ten (10) days after the publication of the notice.
  2. The court shall consider the complaint and enter its finding thereon, either confirming the assessment or increasing or diminishing the assessment.
  3. The court's finding shall have the force and effect of a judgment, from which an appeal may be taken within twenty (20) days, either by the property owners or by the commissioners of the district.

History. Acts 1909, No. 279, § 7, p. 829; 1913, No. 177, § 1; C. & M. Dig., § 3615; Acts 1925, No. 124, § 3; Pope's Dig., § 4463; A.S.A. 1947, § 21-515.

Case Notes

Constitutionality.

This section does not constitute a denial of the constitutional right of appeal. St. Louis, I.M. & S.R. v. Maple Slough Drainage Dist., 138 Ark. 131, 211 S.W. 168 (1919).

Finding of Court.

Assessment of benefits upon land in drainage district, confirmed by the county court, constitutes a valid lien. Caldwell v. Scott, 195 Ark. 467, 112 S.W.2d 978 (1938).

Where commissioners acted under legal authority from the courts, their acts in making of assessments and improvements will not be set aside by a court of equity unless there is evidence of actual fraud on the part of the commission. Harris v. Blackburn, 215 Ark. 195, 219 S.W.2d 922 (1949).

Jurisdictional Requirements.

The requirements of this section are jurisdictional and compliance is necessary. Drainage Dist, No. 9 v. Merchants' & Planters' Bank, 176 Ark. 474, 2 S.W.2d 1079 (1928).

The county court has exclusive original jurisdiction to pass upon the assessment of benefits and damages and to levy the tax for the payment of the improvements made in the district and when it refuses to do so the remedy to compel it to exercise its discretion is by mandamus, and where county court, upon landowner's application, improperly dissolved drainage district, circuit court's refusal to try de novo question of assessments of benefits and levy for collection of tax and issuance of writ of mandamus was held proper. Roberts v. Baucum Drainage Dist., 198 Ark. 964, 132 S.W.2d 184 (1939).

Cited: Beaver Bayou Drainage Dist. v. Lee-Phillips Drainage Dist., 221 Ark. 550, 254 S.W.2d 465 (1953).

14-121-406. Acquiescence to assessment or failure to assess — Effect of demand for assessment.

  1. Any property owner may accept the assessment of damages in his favor made by the commissioners or acquiesce in their failure to assess damages in his favor. He shall be construed to have done so unless he gives to the commissioners, within thirty (30) days after the assessment is filed, notice in writing that he demands an assessment of his damages by a jury.
  2. In that event, the commissioners shall institute in the circuit court of the proper county an action to condemn the lands that must be taken or damaged in the making of the improvement. This action shall be in accordance with the proceedings for condemnation of rights-of-way by railroad, telegraph, and telephone companies, with the same right of paying into court a sum to be fixed by the circuit court or judge, and proceeding with the work before assessment by the jury.
  3. If there is more than one (1) claimant to the lands, all claimants may be made parties defendant in the suit, and the fund paid into court, leaving the claimants to contest in that action their respective rights to the fund.

History. Acts 1909, No. 279, § 8, p. 829; C. & M. Dig., § 3616; Pope's Dig., § 4464; A.S.A. 1947, § 21-516.

Cross References. Condemnation of rights-of-way by railroad, telegraph, and telephone companies, § 18-15-1201 et seq.

Case Notes

Delay in Construction.

Where drainage district was organized according to law and assessments against landowners were made pursuant to court orders, landowners could not attack court orders after 14 years' delay in construction of levee when they failed to object to assessments at the time the assessments were made and delay was solicited and approved by landowners. Harris v. Blackburn, 215 Ark. 195, 219 S.W.2d 922 (1949).

Jury.

The guarantee of a jury trial in condemnation proceedings, in Ark. Const., Art. 12, § 9, applies to condemnation proceeding by private corporations and not to a proceeding by a drainage district for the taking of private property for a ditch. Dickerson v. Tri-County Drainage Dist., 138 Ark. 471, 212 S.W. 334 (1919).

14-121-407. Reassessment of benefits — Appeals.

  1. The commissioners of the districts shall have the power to make a reassessment of the benefits not more often than once a year, and the reassessment shall be made, advertised, and equalized as is provided for the original assessment of benefits.
  2. All appeals of landowners objecting thereto must be taken and perfected within thirty (30) days from the time of the county court's action thereon.

History. Acts 1927, No. 203, § 2; Pope's Dig., § 4527; A.S.A. 1947, § 21-519.

Cross References. Reassessment of benefits, §§ 14-120-108, 14-120-109.

Case Notes

Suit Barred.

Where court approved a bond issued by commissioners for cost of additional drainage and pumping plant, a suit by landowners for reassessment based on fact that federal government had granted funds for construction of levee was barred by adverse decision in prior suit by same plaintiffs for reassessment as result of federal aid in construction of levee. Clements v. Bronaugh, 218 Ark. 783, 239 S.W.2d 1 (1951), cert. denied, 342 U.S. 866, 72 S. Ct. 106 (1951).

14-121-408. Alteration of plans — Reassessment.

  1. The commissioners may at any time alter the plans of the ditches and drains, but before constructing the work according to the changed plans, the changed plans with accompanying specifications showing the dimensions of the work as changed shall be filed with the county clerk. Notice of the filing shall be given by publication for one (1) insertion in some newspaper issued and having a bona fide circulation in each of the counties in which there are lands belonging to the district.
  2. If by reason of the change of plans either the board of commissioners or any property owners deem that the assessment on any property has become inequitable, they may petition the county court which shall thereupon refer the petition to the commissioners provided for in § 14-121-201, who shall reassess the property mentioned in the petition, increasing the assessment if greater benefits will be received and allowing damages if less benefits will be received or if damages will be sustained.
  3. In no event shall a reduction of assessments be made after the assessment of benefits has been confirmed, but any reduction in benefits shall be paid for as damages. That claim for damages shall be secondary and subordinate to the rights of the holders of bonds which have heretofore been issued.
  4. From the action of the commissioners in the matter, the property owners shall have the same right of appeal provided by § 14-121-405 for the original assessment.

History. Acts 1909, No. 279, § 17, p. 829; 1913, No. 177, § 2; C. & M. Dig., § 3625; Pope's Dig., § 4476; A.S.A. 1947, § 21-517.

Case Notes

Appeals.

Where protesting landowners failed to appeal the trial court's initial order granting an extension of a river improvement district's powers to that of a drainage district, they could not, in a later appeal from the trial court's subsequent order approving an alteration of the drainage district's plans, raise the issue that the original plans did not comport with the requirement that the purpose of allowing a river improvement district to expand its powers is to complete projects contemplated by an Act of Congress and the United States Army Corps of Engineers. Kinard v. Cache River Bayou DeView Imp. Dist., 285 Ark. 202, 686 S.W.2d 407 (1985).

Change in Location.

The commissioners of a drainage district have power to alter the location of a ditch at any time before constructing the work, even after a judgment of the county court is rendered confirming assessments of benefits. Protho v. Williams, 147 Ark. 535, 229 S.W. 38 (1921).

Where it had been demonstrated by various floods that ditch and spoil bank in drainage district organized under general statutes was insufficient to give protection under the plans contemplated when district was organized, commissioners of the district had the power, in the absence of fraud, to enter into agreement to pay part of cost of obtaining land and easement necessary for construction of levee located in another district, to be built by federal government to protect land in both districts. Grassy Lake & Tyronza Drainage Dist. v. Drainage Dist. of Mississippi County, 205 Ark. 694, 170 S.W.2d 1007 (1943).

Completion of Improvements.

Where a drainage district is organized and the work completed, any plan of improvement thereafter contemplated would be a new plan, and not the original plan altered and changed, and there is no statutory authority to file or change plans after the work originally contemplated has been completed. Indian Bayou Drainage Dist. v. Walt, 154 Ark. 335, 242 S.W. 575 (1922).

While this section does not authorize an independent improvement after completion of the improvement as originally planned, it does authorize a change in original plan at any time before its completion so as to include lands necessary or benefited by the improvement. Bayou Meto Drainage Dist. v. Ingram, 165 Ark. 318, 264 S.W. 947 (1924).

An improvement is not “completed” until the main channel of the ditch reaches the outlet so as to carry off the water. Bayou Meto Drainage Dist. v. Ingram, 165 Ark. 318, 264 S.W. 947 (1924).

Materially Different Undertakings.

Landowners were not entitled to a reassessment merely because federal government stepped in and constructed levee, unless levee as constructed by the federal government resulted in a materially different undertaking than that originally planned by the district. Harris v. Blackburn, 215 Ark. 195, 219 S.W.2d 922 (1949).

Remedies.

The remedy provided in this section excludes a right to resort to equity, in the absence of fraud, unavoidable casualty, or other ground for equitable interference. Hudson v. Simonson, 170 Ark. 243, 279 S.W. 780 (1926).

If levee plans of district are materially changed, this section permits injured person to sue for damages, but does not permit a few to injure the credit of the district once the undertaking is definitely launched by filing a petition for refund of assessments. Harris v. Blackburn, 215 Ark. 195, 219 S.W.2d 922 (1949).

Cited: Beaver Bayou Drainage Dist. v. Lee-Phillips Drainage Dist., 221 Ark. 550, 254 S.W.2d 465 (1953).

14-121-409. Petition that improvements and extensions proceed under revised plans — Notice, hearing, and appeal.

  1. If the commissioners shall have filed plans for additional work in the district, no proceeding shall be taken looking to a confirmation of the assessment of benefits based thereon until a petition has been filed with the county court, signed by a majority in numbers, acreage, and value of the owners of land within the district, praying that the work as provided for in the plans shall proceed. If no such petition is filed with the county court within one (1) year after the filing of the assessment based upon the revised plans, the assessment of benefits shall be withdrawn by the commissioners, and nothing further shall be done toward the carrying out of the revised plans.
  2. If the petition, purporting to be signed by a majority in value, number, and acreage of the property owners, is filed within the one-year time limit, it shall be the duty of the county clerk to give notice by publication once a week for two (2) weeks, the last insertion to be not less than ten (10) days before the date fixed for the hearing, of a date when the county court will hear the petition and determine whether it is signed by the requisite majority and whether the assessment of benefits which has been based thereon shall be sustained.
  3. Notice may be in the following form:
  4. On the day named in the notice, it shall be the duty of the county court to meet and to hear all persons who wish to be heard and first to determine whether a majority in numbers, acreage, or value of the landowners have petitioned for the doing of the work under the revised plans. If it finds that the majority have signed the petition, then it shall hear all persons who filed written complaints against the assessment of benefits of their own land or the lands of anyone else and determine whether the assessment of benefits is equitable and just, and to equalize it.
  5. From the action of the court any party aggrieved, including the commissioners of the district, may appeal to the circuit court. However, the appeal must be taken and perfected within thirty (30) days; in the circuit court, proceedings shall be deemed matters of public interest and heard at the earliest possible moment, and appeals from its decisions must be taken and perfected within thirty (30) days.

“ DRAINAGE DISTRICT Notice is hereby given that parties claiming to be a majority in numbers, acreage and value of the owners of real property in Drainage District of County, have filed with the county clerk of said county their petition praying that the work contemplated by the revised plans of the commissioners of said district on file in my office shall be carried out, and all land owners within said district are notified to appear before the county court of County, at the hour of on the day of 19 , where they will be heard on the question whether the signers of said petition constitute the required majority, and whether the assessment of benefits which has been made on the revised plans is equitable. County Clerk.”

Click to view form.

History. Acts 1927, No. 203, § 3; Pope's Dig., § 4528; A.S.A. 1947, § 21-520.

Case Notes

Jurisdiction.

The circuit court in the county in which the larger portion of the lands embraced within the district was situated, though the district was not originally organized there, had jurisdiction of proceedings for the assessments of benefits for widening and digging lateral ditches. Grady Drainage Dist. v. Free, 178 Ark. 346, 10 S.W.2d 854 (1928).

Signatures.

A petition for a proposed improvement in a drainage district must be signed by the majority of real estate owners in numbers, acreage, or valuation of the entire district, not merely by a majority of those in the territory alleged to be affected by the improvement. Walker v. Roland Drainage Dist., 212 Ark. 633, 207 S.W.2d 319 (1948).

14-121-410. Effect of reassessment.

  1. When any reassessment of benefits has been made and stands confirmed, it shall be the assessment of benefits until another reassessment has been made as provided in this chapter.
  2. Levies of the taxes on the reassessed benefits shall be made and collected in the same manner as levies on the original assessment of benefits and shall be a first lien on the lands of the district from the time they are made.

History. Acts 1927, No. 203, § 4; Pope's Dig., § 4529; A.S.A. 1947, § 21-521.

14-121-411. Benefits to lands in other districts — Assessments.

In case any land in any drainage or other improvement district is benefited, and for any reason it was not assessed in the original proceedings, or was not assessed to the extent of benefits received or in case any corporation, individual, or other drainage district organized under this or any other general or special act, outside the limits of any district organized or operating under the terms of this act, shall drain land into any ditch belonging to any district formed or operating under the terms of this act, the commissioners of the drainage district shall assess the benefits or the enhanced benefits received by the land, and the proceedings outlined in §§ 14-121-40214-121-405 for assessing benefits to lands not included within the boundaries of the district shall in all matters be conformed with. However, this section and § 14-121-808 shall not operate to interfere with vested rights to natural drainage.

History. Acts 1909, No. 279, § 20, p. 829; 1913, No. 177, § 3; C. & M. Dig., § 3628; Pope's Dig., § 4479; A.S.A. 1947, § 21-531.

Meaning of “this act”. Acts 1913, No. 177, is codified as §§ 14-121-10114-121-103, 14-121-206, 14-121-303, 14-121-309, 14-121-312, 14-121-314, 14-121-40214-121-405, 14-121-408, 14-121-411, 14-121-421, 14-121-433, 14-121-50114-121-504, 14-121-80614-121-808, and 14-121-810.

Case Notes

Cited: Beaver Bayou Drainage Dist. v. Lee-Phillips Drainage Dist., 221 Ark. 550, 254 S.W.2d 465 (1953).

14-121-412. District continuance — Additional levy.

  1. The district shall not cease to exist upon the completion of its drainage system but shall continue to exist for the purpose of preserving the system, of keeping the ditches clear from obstruction, and of extending, widening, or deepening the ditches from time to time as may be found advantageous to the district.
      1. To this end, the commissioners may, from time to time, apply to the county court for the levying of additional taxes.
      2. The taxes may be levied as a flat tax per acre.
      1. Upon the filing of the petition, notice shall be published by the clerk for two (2) weeks in a newspaper published in each of the counties in which the district embraces land.
      2. Any property owner seeking to resist the additional levy may appear at the next regular, special, or adjourned term of the county court or adjourned day of the court and urge his objections thereto.
      3. Either the property owners or the commissioners may appeal from the finding of the county court.

History. Acts 1909, No. 279, § 22, p. 829; C. & M. Dig., § 3630; Pope's Dig., § 4481; Acts 1949, No. 28, § 1; A.S.A. 1947, § 21-533; Acts 1995, No. 343, § 2.

Amendments. The 1995 amendment added the subdivision designations in (b); and added (b)(1)(B).

Case Notes

Improvements Not Authorized.

A new and independent drainage canal exceeding in cost the whole system originally contemplated and completed is an improvement so extensive and so different from that originally planned that it would have to be accomplished through the formation of a new district, and not as an extension of the canal as originally constructed, nor as a widening or deepening of the ditch already completed. Indian Bayou Drainage Dist. v. Walt, 154 Ark. 335, 242 S.W. 575 (1922).

Where a new canal was proposed to furnish an outlet for a drainage system, which outlet was not available until after the drainage improvement had been completed, it was not an extension of a canal originally constructed nor a widening or deepening of ditches that were originally completed and therefore was not authorized. Clay v. England, 172 Ark. 373, 288 S.W. 895 (1926).

While the commissioners of a drainage district may preserve the improvement without a petition from the landowners to that effect, provided the necessary funds are available, if it is proposed to do the additional work, that is, work not contemplated by the original plans upon which the assessment of benefits was based, a petition by the landowners is required. Indian Bayou Drainage Dist. v. Dickie, 177 Ark. 728, 7 S.W.2d 794 (1928).

Levy of Taxes.

Petition filed by commissioners asking permission to charge betterments with a one percent annual levy to preserve levee without necessity of filing additional plans was granted where levee was then an integral part of the drainage district. Owen v. Central Clay Drainage Dist., 216 Ark. 159, 224 S.W.2d 529 (1949).

There is nothing to indicate that drainage system must be allowed to become obstructed and useless merely because maintenance was unnecessary for many years, and statute of limitations plays no part in matter until there is levied tax which gives district enforceable cause of action. Watson v. Drainage Dist., Crittenden County, 218 Ark. 361, 236 S.W.2d 423 (1951).

Where drainage district filed a petition for authority to levy taxes in cleaning and widening ditches in district, the court could not consider issue raised by another drainage district as to whether the entire creek should be cleaned out, since original petition was a special proceeding. Beaver Bayou Drainage Dist. v. Lee-Phillips Drainage Dist., 221 Ark. 550, 254 S.W.2d 465 (1953).

The commissioners of an original drainage district from which several counties have withdrawn are the proper parties to initiate court action for levy of taxes against the lands of all the counties in the original district for the purpose of preserving the established drainage system and keeping the ditches clear from obstructions. Tri-County Drainage Dist. v. Morrison, 227 Ark. 29, 295 S.W.2d 781 (1956).

While a drainage district from which counties have withdrawn retains the power to seek tax levy on the withdrawn counties pro rata to “clean out” and maintain the established drainage system, a reasonable latitude of discretion and judgment is allowed the drainage commissioners and courts to determine what is maintenance of the system as opposed to the extension thereof. Tri-County Drainage Dist. v. Morrison, 227 Ark. 29, 295 S.W.2d 781 (1956).

Notice.

If notice is published designating certain date for hearing, it is not necessary to be republished if hearing is recessed until another date. Beaver Bayou Drainage Dist. v. Lee-Phillips Drainage Dist., 221 Ark. 550, 254 S.W.2d 465 (1953).

Notice of hearing on tax levies against all the lands in an original, established drainage district is not defective for failure to describe each parcel of land in the district or the boundaries of the district. Tri-County Drainage Dist. v. Morrison, 227 Ark. 29, 295 S.W.2d 781 (1956).

Preservation of Systems, Etc.

The power of drainage commissioners to construct an embankment in aid of the drainage project after its completion was within the authority of the commissioners, and hence they were not individually liable for damages to land from overflow caused by the embankment. Gray v. Doyle, 167 Ark. 495, 269 S.W. 579 (1925).

A drainage district is authorized to lengthen its ditches. Lesser-Goldman Cotton Co. v. Cache River Drainage Dist., 174 Ark. 160, 294 S.W. 711 (1927).

Where a drainage district has on hand, after paying all debts, a surplus of funds, it may use them to preserve or repair the ditches by keeping them clear of obstructions and to extend, deepen, or widen them, since such use of the money is not a diversion thereof, but is for the necessary purposes of the district. Green v. Wulff Drainage Dist. No. 4, 193 Ark. 1087, 104 S.W.2d 1076 (1937).

Court does not have the authority to control exercise of discretion by commissioners as to course they will follow in cleaning out ditches in the district. Beaver Bayou Drainage Dist. v. Lee-Phillips Drainage Dist., 221 Ark. 550, 254 S.W.2d 465 (1953).

Cited: Cherry v. Cousart Bayou Drainage Dist., 222 Ark. 404, 259 S.W.2d 513 (1953); Lee-Phillips Drainage Dist. v. Beaver Bayou Drainage Dist., 226 Ark. 105, 289 S.W.2d 192 (1956); Park Corp. v. Tri-County Drainage Dist., 226 Ark. 357, 290 S.W.2d 18 (1956).

14-121-413 — 14-121-419. [Reserved.]

  1. When assessments of benefits have been made in drainage districts organized either under general or special acts, the property owner shall have the right to pay the assessment in full within sixty (60) days after the formation of the district, but if he does not avail himself of this privilege, the assessment of benefits shall bear interest at the rate of six percent (6%) per annum and shall be payable only in installments as levied.
  2. The interest need not be computed until necessary to be sure that the collections have not exceeded the total amount of benefits and interest, or the interest may be first collected.
  3. However, this section shall not apply to districts heretofore organized in which interest on bonds or other borrowed money was calculated as a part of the cost of construction and included in the assessment of benefits.

History. Acts 1919, No. 467, § 1; C. & M. Dig., § 3656; Pope's Dig., § 4507; Acts 1941, No. 285, § 1; A.S.A. 1947, § 21-541.

Case Notes

In General.

Right to distribute collection of assessments over a period of years rather than to require their immediate payment at the time they are approved by the county court is authorized by this section. Main v. Drainage Dist., 204 Ark. 506, 162 S.W.2d 901 (1942).

Interest.

A district's right to collect interest on deferred instalments of assessed benefits is not lost by failure to compute the interest in advance and add it to the instalments of assessments. Kersh Lake Drainage Dist. v. State Bank & Trust Co., 92 F.2d 783 (8th Cir. 1937).

Interest continues to accrue on matured but unpaid instalment bonds. Greer v. Blocker, 218 Ark. 259, 236 S.W.2d 68 (1951).

Interest may be collected on assessed benefits. Greer v. Blocker, 218 Ark. 259, 236 S.W.2d 68 (1951).

To extent that collection of interest on benefits is necessary to pay outstanding indebtedness of district, subsection (c) is not applicable. Greer v. Blocker, 218 Ark. 259, 236 S.W.2d 68 (1951).

Subsection (c) does not have effect of removing district from operation of statutes which provide for interest on assessment of benefits. Watson v. Drainage Dist., Crittenden County, 218 Ark. 361, 236 S.W.2d 423 (1951).

In absence of some written evidence in assessment proceedings to show that commissioners included interest on bonds in assessment of benefits, subsection (c) is not applicable. Watson v. Drainage Dist., Crittenden County, 218 Ark. 361, 236 S.W.2d 423 (1951).

14-121-421. Payment of assessments in improvement districts — Interest.

  1. When assessments of benefits are made in drainage and other improvement districts, the landowners shall have the privilege of paying the assessment in full within thirty (30) days after the assessment becomes final. However, the assessments shall be made payable in installments so that not more than twenty-five percent (25%) shall be collectible in any one (1) year against the wishes of the landowner. In the event that any landowner avails himself of this indulgence, the deferred installments of the assessed benefits shall bear interest at the rate of six percent (6%) per annum and shall be payable only in installments as levied.
  2. The levy of the assessment may be made by way of proportional amounts of the total assessed benefits. Interest need not be calculated until it is necessary to do so to avoid exceeding the total amount of benefits and interest.
  3. The amount of interest which will accrue on bonds issued by districts and subdistricts shall be included and added to the tax, but the interest to accrue on account of the issuing of the bonds shall not be construed as a part of the cost of construction in determining whether or not the expenses and costs of making the improvements are, or are not, equal to or in excess of the benefits assessed.

History. Acts 1913, No. 177, § 10; C. & M. Dig., § 3643; Pope's Dig., § 4494; A.S.A. 1947, § 21-540.

Case Notes

In General.

Liability of land in drainage district for unpaid obligations of the district is limited to full amount of betterment assessed with interest thereon. Kersh Lake Drainage Dist. v. Johnson, 203 Ark. 315, 157 S.W.2d 39 (1941)Certiorari or review denied by316 U.S. 673, 62 S. Ct. 1044 (1942).

Purpose.

This section has been held to imply an intention to declare the interest on bonds not to be a part of the cost of construction and is intended as authority for allowing interest on the bonds to be met by interest on the deferred payments of assessments. Oliver v. Whittaker, 122 Ark. 291, 183 S.W. 201 (1916).

One purpose of this section is to permit interest on benefits to offset interest on bonds. Watson v. Drainage Dist., Crittenden County, 218 Ark. 361, 236 S.W.2d 423 (1951).

Applicability.

This section is directed to districts already in existence and not only to those to be created in the future. Kersh Lake Drainage Dist. v. State Bank & Trust Co., 92 F.2d 783 (8th Cir. 1937).

Interest.

A drainage district has power to collect interest on deferred payments of instalments of benefits. Kersh Lake Drainage Dist. v. Johnson, 203 Ark. 315, 157 S.W.2d 39 (1941)Certiorari or review denied by316 U.S. 673, 62 S. Ct. 1044 (1942).

If annual interest on assessed benefits was available to district if it chose to collect all or any part of it by the levy of a tax, district's failure to collect full amount of interest in given year operated as waiver of uncollected amount. Watson v. Drainage Dist., Crittenden County, 218 Ark. 361, 236 S.W.2d 423 (1951).

14-121-422. Procedure for levy of tax — Preliminary expenses — Validation of prior levies.

  1. The county court shall, at the same time that the assessment of benefits is filed or any subsequent time when called upon by the commissioners of the district, enter upon its records an order, which shall have all the force of a judgment, providing that there shall be assessed upon the real property of the district a tax sufficient to pay the estimated cost of the improvement with ten percent (10%) added for unforeseen contingencies.
  2. The tax shall be paid by the owner of the real property in the district, in proportion to the amount of the assessment of benefits thereon, and which is to be paid in annual installments, payable not to exceed twenty-five percent (25%) for any one (1) year, as provided in the order.
  3. The tax so levied shall be a lien upon all the real property in the district from the time the tax is levied by the county court and shall be entitled to preference over all demands, executions, encumbrances, or liens whensoever created. The tax shall continue until the assessment, with penalty and costs that may accrue thereon, shall have been paid.
  4. The remedy against the assessment of taxes shall be by appeal, and the appeal must be taken within twenty (20) days from the time that the assessment has been made by the county court, and on appeal the presumption shall be in favor of the legality of the tax.
  5. Any owner of real property within the district may by mandamus compel compliance by the county court with the terms of this section.
  6. If the commissioners do not deem it to the advantage of the district to proceed immediately with the construction of the improvements upon the filing and confirmation of the assessment of benefits, they may report to the county court the rate of taxation necessary to be levied to pay the preliminary expenses of the district. Thereupon it shall be the duty of the county court to make a levy of taxes upon the real property in the district sufficient to pay the preliminary expenses, with ten percent (10%) added for unforeseen contingencies, which tax shall be extended upon the tax books of the county and collected along with other taxes in the same manner as the taxes levied for construction purposes, as hereinbefore set forth. Where any levy has heretofore been made by the county court or any board of commissioners or directors, for the purpose of winding up the district, the levy is confirmed and ratified, and shall be collected in the manner provided by the law governing the district.
  7. Whenever any district embraces lands in more than one (1) county, the secretary of the board of commissioners shall file with the county clerk of each of the counties in which any land is situated a corrected copy of the order levying the tax, which shall be recorded by the county clerk in the county court records. The county clerk or other officials making up the general tax books from year to year shall annually extend the taxes upon the general tax books during the period provided for by the order, according to the assessment list for the county on file in the county clerk's office.

History. Acts 1909, No. 279, § 9, p. 829; C. & M. Dig., § 3617; Acts 1923, No. 562, § 1; Pope's Dig., § 4465; Acts 1957, No. 327, § 4; A.S.A. 1947, § 21-542.

Publisher's Notes. Acts 1957, No. 327, § 6, provided that the act would be cumulative and would not repeal any then existing law and would not apply to any district already then organized. The section further provided that the act would not be deemed to take from any levee, drainage, or other improvement district the power or right the district then had to enter into and perform any contract or agreement of the United States Army Corps of Engineers or other federal agency.

Case Notes

Interest.

Where drainage district instalment bonds bore interest until paid, interest could be added to cost of improvement, plus 10 percent for unforeseen contingencies, before any question could arise that power to tax had been exhausted by previous levy of tax which was less in amount than amount of assessed benefits. Greer v. Blocker, 218 Ark. 259, 236 S.W.2d 68 (1951).

14-121-423. Validity of assessment or levy when error appears in description, etc.

No error in the names or residences of the owners of railroads, tramroads, lands, or improvements, or the description thereof, shall invalidate the assessment or levy of taxes if sufficient description is given to ascertain where the lands, railroads, or tramroads are situated.

History. Acts 1909, No. 279, § 27, p. 829; C. & M. Dig., § 3635; Pope's Dig., § 4486; A.S.A. 1947, § 21-549.

14-121-424. Insufficiency of tax — Additional levy.

  1. If the tax first levied shall prove insufficient to complete the improvement or to pay the bonds, both the principal and interest, issued by the board of commissioners on account of the improvement, as provided in this chapter, as the principal and interest shall become due and payable, the board shall report the amount of the deficiency to the county court. The county court shall thereupon make such further levy or levies on the property previously assessed for sums sufficient to complete the improvement and to pay the bonds and interest which shall be collected in the same manner as the first levy.
  2. The total levy or levies shall in no case exceed the value of the benefits assessed on the property.
  3. The performance of the duties may be enforced by mandamus at the instance of any person or board interested.

History. Acts 1909, No. 279, § 12, p. 829; 1911, No. 136, § 1; C. & M. Dig., § 3620; Pope's Dig., § 4471; A.S.A. 1947, § 21-550.

Case Notes

Limitation.

Increased levies must be within the assessed benefits. Griffin v. Little Red River Levee Dist., 157 Ark. 590, 249 S.W. 16 (1923).

14-121-425. Collection of taxes generally — Extension on county tax books.

  1. The amount of the taxes provided for in this section shall be annually extended upon the tax books of the county and collected by the collector of the county along with the other taxes. For his services in making the collection, the collector shall receive a commission as is now or may hereafter be provided by law. The amount collected shall be, by the collector, paid over to the commissioners of the respective districts at or before the time that he is now required to make settlement with the county treasurer for general taxes. However, this section shall not apply to any district that collects its annual assessments or taxes by collector other than the collector of state and county taxes.
  2. All districts shall collect their own assessments and taxes at their respective offices and issue receipts therefor, if those districts:
    1. Maintain a permanent office open during business hours throughout the year;
    2. Are in charge of full-time employees;
    3. Have assessed benefits in excess of five million dollars ($5,000,000); and
    4. Collect annual assessments of one hundred thousand dollars ($100,000) or more.
  3. If any collector whose duty it is to collect drainage tax shall fail to collect the drainage tax, he shall be subject to a penalty of one hundred dollars ($100) for each instance in which he shall collect from an individual the other taxes and omit the drainage tax unless the drainage tax has been enjoined by a court of competent jurisdiction to be recovered in a suit brought by the commissioners to the use of the district. The county clerk shall be subject to a like penalty for each case in which he shall fail to enter the drainage tax on the tax books.
  4. Where a majority of the drainage districts request in writing that the collector issue separate receipts for drainage taxes, he shall do so. A perforated receipt shall be deemed a separate receipt. However, this section shall not apply to any district that now collects or may hereafter collect its annual assessments or taxes by a collector other than the collector of state and county taxes.

History. Acts 1909, No. 279, § 10, p. 829; C. & M. Dig., § 3618; Acts 1937, No. 350, §§ 1, 2; Pope's Dig., §§ 4468, 4469; Acts 1939, No. 50, §§ 1-2a; 1945, No. 180, §§ 1, 2; A.S.A. 1947, §§ 21-543 — 21-545.

Cross References. Collection of taxes in improvement districts, § 14-86-801.

Payment of improvement district taxes with bonds of district, § 14-86-803.

Case Notes

Collector.

The collector must accept general taxes alone, when tendered. Howell v. Lamberson, 149 Ark. 183, 231 S.W. 872 (1921).

14-121-426. Time for payment of tax — Delinquency.

  1. All taxes levied under the terms of this act shall be payable on or before October 1 of each year.
  2. If any taxes levied by the county court in pursuance to this act are not paid at maturity, the collector shall not embrace the taxes in the taxes for which he shall sell the lands, but he shall report the delinquents to the board of commissioners of the district, who shall add to the amount of the tax a penalty of twenty-five percent (25%).
  3. The board of commissioners shall enforce the collection by chancery proceedings in a court of the county in which the lands are situated having chancery jurisdiction. The court shall give judgment against the lands, railroads, or tramroads for the amount of the taxes, and the penalty of twenty-five percent (25%) and interest thereon, from the end of the sixty (60) days allowed for the collection thereof, at the rate of six percent (6%) per annum, and all costs of the proceedings.
  4. The judgments shall provide for the sale of the delinquent lands for cash by a commissioner of the court, after advertisement as set out in § 14-121-430.
  5. Proceedings and judgment shall be in the nature of proceedings in rem.
  6. It shall be immaterial that the ownership of the lands be incorrectly alleged in the proceedings. Judgment shall be enforced wholly against the lands and not against any other property or estate of the defendant.
  7. All or any part of the delinquent lands, railroads, or tramroads for each of the counties may be included in one (1) suit for each county, instituted for the collection of the delinquent taxes, etc., as aforesaid.

History. Acts 1909, No. 279, § 23, p. 829; C. & M. Dig., § 3631; Pope's Dig., § 4482; Acts 1939, No. 163, § 1; A.S.A. 1947, § 20-1124, 21-546.

Meaning of “this act”. Acts 1909, No. 279, codified as §§ 14-121-101, 14-121-102, 14-121-104, 14-121-105, 14-121-20114-121-205, 14-121-207, 14-121-301, 14-121-304, 14-121-305, 14-121-307, 14-121-310, 14-121-311, 14-121-313, 14-121-40114-121-406, 14-121-408, 14-121-411, 14-121-412, 14-121-42214-121-432, 14-121-44014-121-442, 14-121-80214-121-805, and 14-121-808.

Cross References. Delinquent improvement taxes generally, § 14-86-1101 et seq.

Payment of levee and drainage tax in instalments, § 14-120-110.

Remission of delinquent penalties in excess of 10 percent, § 14-86-1002.

Case Notes

Allegations of Ownership.

Where, in foreclosure sale, the name of the supposed owner was given as “appears on the tax books,” it was not necessary that an investigation be undertaken to determine the supposed owner. Leonard v. Thompson, 228 Ark. 136, 306 S.W.2d 869 (1957).

Illegal Assessments.

Where illegal assessment was made against land, payment of taxes by the landowner, with knowledge of the facts, was voluntary and the taxes could not be recovered, where it appeared that, although the lands would have been declared delinquent, they could not have been levied upon and seized to enforce payment. Brunson v. Board of Directors, 107 Ark. 24, 153 S.W. 828 (1913).

Liability of Landowners.

Where lands are properly included within a drainage district, upon the taxes becoming delinquent, the landowner is liable for taxes, penalty, attorney's fees, and interest. Tarleton Drainage Dist. v. American Inv. Co., 187 Ark. 385, 59 S.W.2d 1029 (1933).

Where land against which a drainage district had assessed benefits was taken by the state highway commission by condemnation for highway purposes, the district has no interest in the condemned land apart from that of the owner entitling it to a separate award of damages from the highway commission, but its interest is in the nature of a lien and its sole remedy is against the award to the owner. Arkansas State Highway Com. v. Sub-District of Grassy Lake, 237 Ark. 614, 376 S.W.2d 259 (1964).

Cited: Brown v. Wells, 228 Ark. 179, 306 S.W.2d 865 (1957).

14-121-427. Notice of proceedings for collection of taxes.

    1. Notice of the pendency of a suit shall be given by publication weekly for two (2) weeks before judgment is entered for the sale of lands, railroads, or tramroads in some newspaper published in the county where the suits may be pending.
    2. The public notice may be in the following terms:
  1. Then shall follow a list of supposed owners, with a descriptive list of the delinquent lands, and amounts due thereon respectively as aforesaid, and the public notice may conclude in the following form:

“Board of Commissioners, Drainage District vs. Delinquent Lands All persons having or claiming an interest in any of the following described lands are hereby notified that suit is pending in the Circuit Court of County, Arkansas, to enforce the collection of certain drainage taxes on the subjoined list of lands, each supposed owner having been set opposite his or her or its lands, together with the amounts severally due from each, to wit:”

Click to view form.

“All persons and corporations interested in the lands are hereby notified that they are required by law to appear within four (4) weeks and make defense to the suit or the same will be taken for confessed, and final judgment will be entered directing the sale of the lands for the purpose of collecting the taxes, together with the payment of interest, penalty, and costs allowed by law. Clerk of the Court.”

Click to view form.

History. Acts 1909, No. 279, § 23, p. 829; C. & M. Dig., § 3631; Pope's Dig., § 4482; A.S.A. 1947, § 21-546; Acts 2005, No. 2170, § 1.

Amendments. The 2005 amendment, in (a)(1), substituted “two (2) weeks” for “four (4) weeks” in the first paragraph; and substituted “Circuit Court” for ‘Chancery Court’ in the second paragraph.

Case Notes

Date.

Notice of pendency of suit instituted to foreclose delinquent drainage taxes does not need to be dated. Deaner v. Gwaltney, 194 Ark. 332, 108 S.W.2d 600 (1937).

Description of Lands.

The notice must correctly describe the lands to be sold and is not susceptible to amendment; a correct description is necessary in order to give the court jurisdiction. Beck v. Anderson-Tulley Co., 113 Ark. 316, 169 S.W. 246 (1914).

The court was without jurisdiction to order a sale of land for drainage tax where the land was not described in the published notice, and the sale was properly cancelled on collateral attack. Union Inv. Co. v. Hunt, 187 Ark. 357, 59 S.W.2d 1039 (1933).

Supposed Owners.

Where no person named Smith ever owned the lands and a neighboring owner was named Smith, the constructive notice of process showing Smith as owner was misleading and the foreclosure decree was void. Isaack v. Davis, 254 Ark. 115, 491 S.W.2d 784 (1973).

Cited: Brown v. Wells, 228 Ark. 179, 306 S.W.2d 865 (1957).

14-121-428. Trial date — Suit by bondholder.

  1. The suit shall stand for trial at the first term of court after the complaint may be filed, if four (4) weeks shall expire either before the first day of the term, or during the term of court to which the suits are brought respectively, unless a continuance is granted for good cause shown, within the discretion of the court. The continuance, for good cause shown, may be granted as to a part of the lands or defendants without affecting the duty of the court to dispose finally of the others as to whom no continuance may be granted.
  2. In case the commissioners shall fail to commence suit within sixty (60) days after the taxes become delinquent, the holder of any bond issued by the district shall have right to bring suit for the collection of the delinquent assessments, and the proceedings in the suit brought by the bondholder shall in all respects be governed by the provisions applicable to suits by the commissioners.

History. Acts 1909, No. 279, § 23, p. 829; C. & M. Dig., § 3631; Pope's Dig., § 4482; A.S.A. 1947, § 21-546.

Case Notes

Cited: Brown v. Wells, 228 Ark. 179, 306 S.W.2d 865 (1957).

14-121-429. Trial procedure.

  1. Suits for collection shall be conducted in the name of the drainage district, and in accordance with the practice and proceedings of chancery courts in this state, except as otherwise provided in this chapter, and neither attorneys ad litem nor guardians ad litem, nor any of the provisions of § 16-65-403 shall be required.
  2. The suits may be disposed of on oral testimony, as in ordinary suits at law.
  3. This law shall be liberally construed to give to the assessment and tax lists the effect of bona fide mortgage for a valuable consideration, and a first lien upon the lands, railroads, and tramroads, as against all persons having an interest therein.
  4. In such suits it shall be sufficient to allege generally and briefly the organization of the district and the nonpayment of the taxes, setting forth the description of the lands proceeded against, and the amount chargeable to each tract, with prayer for foreclosure.
  5. No informality or irregularity in holding any of the meetings provided for herein, in valuation, in assessment of the lands, or in the name of the owners, or the number of acres therein shall be a valid defense to the action.

History. Acts 1909, No. 279, § 24, p. 829; C. & M. Dig., § 3632; Pope's Dig., § 4483; Acts 1953, No. 226, § 1; A.S.A. 1947, § 21-547.

Case Notes

Cited: Davidson v. Hartsfield, 250 Ark. 1072, 468 S.W.2d 774 (1971); Isaack v. Davis, 254 Ark. 115, 491 S.W.2d 784 (1973).

14-121-430. Sale of land.

      1. In all cases in which notice has been properly given and in which no answer has been filed, or if filed and the cause decided for the plaintiff, the circuit court by its decree shall grant the relief as prayed for in the complaint.
        1. The court shall direct the commissioner of the court to sell the lands, railroads, and tramroads described in the complaint at the courthouse door of the county in which the decree is entered, at public outcry, to the highest and best bidder for cash in hand after having first advertised the sale for one (1) week in some newspaper published in the county, if there is one.
        2. If there is no newspaper, then that advertisement shall be published in some newspaper in an adjoining county.
        3. The advertisement may include all the lands described in the decree.
    1. If all the lands, railroads, and tramroads are not sold on the day as advertised, the sale shall continue from day to day until completed.
      1. The commissioner of the court shall convey to the purchaser by proper deeds the lands, railroads, and tramroads so sold.
      2. The title to the lands, railroads, and tramroads shall thereupon become vested in the purchaser as against all others whomsoever, saving to infants and to insane persons having no guardian or curator, the right they now have by law to appear and except to the proceedings within three (3) years after their disabilities are removed.
    1. In any case in which the lands, railroads, and tramroads are offered for sale by the commissioner of the court, as provided by this act, and the sum of the tax due, together with interest, cost, and penalty, is not bid for the lands, railroads, and tramroads, the commissioner of the court shall bid the lands, railroads, and tramroads off in the name of the board of directors of the drainage district, bidding the whole amount due.
      1. The commissioner of the court shall execute the deed conveying the land to the drainage board.
        1. No report of sale other than the execution of the deed and its submission to the court for approval and no confirmation other than approval of the deed need be made in any such case.
        2. A deed to the land executed by the commissioner of the court, approved by the court and recorded, shall be conclusively presumed to be in consideration of the total amount rightfully due to the district whether that amount is stated or whether it is stated correctly or incorrectly in the deed.
    2. The deeds, together with other deeds as are duly executed in conformity to the provisions of this act and recorded, shall be received as evidence in all cases showing an indefeasible title in the district unassailable in either law or equity.

History. Acts 1909, No. 279, §§ 23, 24, p. 829; C. & M. Dig., §§ 3631, 3632; Pope's Dig., §§ 4482, 4483; Acts 1953, No. 226, § 1; A.S.A. 1947, §§ 21-546, 21-547; Acts 2005, No. 2170, § 2.

Amendments. The 2005 amendment substituted “for one (1) week” for “weekly for two (2) weeks, consecutively” in (a)(1).

Meaning of “this act”. See note to § 14-121-426.

Cross References. Lien of district may be enforced notwithstanding tax sale to state, § 14-86-1601 et seq.

Research References

Ark. L. Rev.

A Commentary on State and Improvement District Tax Sales, 8 Ark. L. Rev. 386.

Case Notes

Complaint.

The complaint must correctly describe the lands to be sold and is not susceptible to amendment; a correct description is necessary in order to give the court jurisdiction. Beck v. Anderson-Tulley Co., 113 Ark. 316, 169 S.W. 246 (1914).

Persons Under Disabilities.

Subdivision (a)(3) is not a redemption statute and does not confer upon minors different rights of redemption from those given to other owners. Deaner v. Gwaltney, 194 Ark. 332, 108 S.W.2d 600 (1937).

Cited: Brown v. Wells, 228 Ark. 179, 306 S.W.2d 865 (1957); Davidson v. Hartsfield, 250 Ark. 1072, 468 S.W.2d 774 (1971); Isaack v. Davis, 254 Ark. 115, 491 S.W.2d 784 (1973).

14-121-431. Attorney's fees.

In all suits brought for collection of delinquent taxes under this subchapter, a reasonable attorney's fee shall be taxed in favor of the attorney for the plaintiff, which fee shall be added to the amount of the cost.

History. Acts 1909, No. 279, § 23, p. 829; C. & M. Dig., § 3631; Pope's Dig., § 4482; A.S.A. 1947, § 21-546.

Case Notes

Cited: Brown v. Wells, 228 Ark. 179, 306 S.W.2d 865 (1957).

14-121-432. Redemption.

  1. At any time within two (2) years after the rendition of the final decree of the chancery court provided for in this subchapter, the owner of the lands may file his petition in the court rendering the decree, alleging the payment of taxes on the land for the year for which they were sold.
  2. Upon the establishment of that fact, the court shall vacate and set aside that decree, provided that any landowner shall have the right within two (2) years after the day upon which lands are offered for sale to redeem any and all lands sold at the sale.

History. Acts 1909, No. 279, § 24, p. 829; C. & M. Dig., § 3632; Pope's Dig., § 4483; Acts 1953, No. 226, § 1; A.S.A. 1947, § 21-547.

Cross References. Redemption of improvement district lands, § 14-86-1105.

Case Notes

Alleging Payment of Taxes.

Where the petitioners filed their petition within two years after the rendition of the decree, such decree condemning the lands was not conclusive of the issues raised by the petition whether the taxes had been paid for the year in which they were returned delinquent since the proceeding was to be considered as directly attacking the decree. Fleischer v. Wappanocca Outing Club, 118 Ark. 287, 176 S.W. 312 (1915).

Where land has been sold for drainage taxes under a decree of the chancery court and the sale has been confirmed, the title of the purchaser at the tax sale is not open to collateral attack upon the ground that the taxes had been paid. Smith v. Spillman, 135 Ark. 279, 205 S.W. 107 (1918).

Proof of publication was sufficiently identified so as to make it part of the record in a suit to set aside a tax sale. Union Inv. Co. v. Hunt, 187 Ark. 357, 59 S.W.2d 1039 (1933).

Right to Redeem.

When an owner of land tenders his taxes due and the collector by mistake refuses to accept them, the owner may redeem the land if it is subsequently sold. Fleischer v. Wappanocca Outing Club, 118 Ark. 287, 176 S.W. 312 (1915).

Though when drainage district was formed, statute fixed at five years the time within which property could be redeemed from delinquent tax sale, subsequent reduction by the legislature of the redemption period was held not a violation of the contract clause of the Arkansas Constitution. State Nat'l Bank v. Morthland, 196 Ark. 346, 118 S.W.2d 266 (1938).

Trial court erred by granting summary judgment in a grantee's favor because her collateral attack on the foreclosure decree, which was based on her allegation that the redemption period cited in the decree was incorrect, did not render the decree void; the foreclosure decree explicitly stated that redemption of the property would be governed by this section, which grants a two-year period in which to redeem the property. Fed. Nat'l Mortg. Ass'n v. Taylor, 2015 Ark. 78, 455 S.W.3d 811 (2015).

Cited: Davidson v. Hartsfield, 250 Ark. 1072, 468 S.W.2d 774 (1971); Isaack v. Davis, 254 Ark. 115, 491 S.W.2d 784 (1973).

14-121-433. Land subject to improvement district tax lien — Sale and resale.

  1. On sales of land condemned to be sold for the taxes of drainage districts and other improvement districts in this state, the land shall first be offered subject to the lien of all improvement district assessments then existing on it.
  2. If no one will purchase on those terms, the commissioner appointed to make the sale shall report that fact to the court and the land shall not again be offered for sale until after the lapse of one (1) year, nor until an attorney ad litem has been appointed to notify the commissioners or directors of other improvement districts and the trustees of all bondholders having liens thereon that the lands have been offered for sale on those terms and that no purchaser therefor has been found.
  3. Upon the coming in of the report of the attorney ad litem, showing in detail the notice that he has given to the commissioners or directors of other improvement districts having liens upon the property, and to the trustees of the bondholders of all districts having liens on the property, the court shall make an order for the sale of the lands free of encumbrances of the assessments of all other improvement districts that are subordinate to the lien that is foreclosed, but subject to subsequent installments of the assessments of benefits in the plaintiff district.
  4. When the sale is made, any balance that may remain after paying the cost of foreclosure and the amount of the lien that is foreclosed shall be distributed by the court in an equitable manner.
  5. If the board of commissioners or directors of any drainage district having a lien on the lands or the trustee of any bondholders having such lien is not notified of the application for the sale, they may on motion at any time within three (3) years have the sale set aside and the lands resold.

History. Acts 1913, No. 177, § 14; C. & M. Dig., § 3646; Pope's Dig., § 4497; A.S.A. 1947, § 21-548.

Case Notes

In General.

This section contemplates that the sale under the paramount lien shall free the land of assessments of other improvement districts that have already accrued, but not cut off the lien of instalments of such districts subsequently accruing. Board of Comm'rs v. Board of Dirs., 181 Ark. 898, 28 S.W.2d 721 (1930).

Purchasers of Liens.

If street improvement district forecloses its lien and sells property and sewer improvement district forecloses its lien upon the same property and sells its interest, the respective purchasers from the two districts are not tenants in common, but divide fund on sale of property in ratio to amount of their respective liens upon the property. Sanders v. Mhoon, 214 Ark. 589, 217 S.W.2d 349 (1949).

Sale of Lands.

It was not necessary to resort to sale under this section before land was sold to the drainage district in payment of taxes due thereon, since the land was necessarily sold subject to the lien of all assessments existing against them at the time of the sale. Oliver v. Gann, 183 Ark. 959, 39 S.W.2d 521 (1931).

Setting Aside Sales.

Any right of action to set aside a sale is barred if suit is not brought within three years after the sale. Sadler v. Hill, 243 Ark. 247, 419 S.W.2d 298 (1967).

14-121-434 — 14-121-439. [Reserved.]

  1. It shall not be lawful for:
    1. The board of the district, or any officer, member, or agent thereof, to pledge or deposit any bond or coupon issued under the provisions of this act as security for payment of any borrowed money or any debt or obligation of board or any person, firm, or corporation whatever;
    2. The board of the district, or any officer, member, or agent thereof, to appropriate or use any money arising from the sale of any bond or bonds authorized to be issued under this act for any use or purpose whatever other than is herein specified and expressly directed.
  2. Any member, officer, or agent of the board of the district who shall violate any of the provisions of this section shall be deemed guilty of a felony and upon conviction shall be punished by imprisonment in the penitentiary for not less than one (1) year nor more than five (5) years.
  3. To the payment of both the principal and interest of the bonds to be issued under the provisions of this act, the entire revenues of the district arising from any and all sources and all real estate, railroads, and tramroads subject to taxation in the district are by this act pledged. The board of directors is required to set aside annually from the first revenues collected from any source whatever a sufficient amount to secure and pay the interest on the bonds and a sinking fund for their ultimate retirement if a sinking fund is contracted for.

History. Acts 1909, No. 279, § 26, p. 829; C. & M. Dig., § 3634; Pope's Dig., § 4485; A.S.A. 1947, § 21-555.

Meaning of “this act”. See note to § 14-121-426.

Case Notes

Cited: Oliver v. Western Clay Drainage Dist., 187 Ark. 539, 61 S.W.2d 442 (1933).

14-121-441. Issuing bonds and evidences of debt to hasten work — Terms of bonds.

  1. In order to hasten work, the board may borrow money at a rate of interest as provided for in a resolution of the commissioners, may issue negotiable bonds therefor, signed by the members of the board, and may pledge all assessments for the repayment thereof. It may also issue to the contractors who do the work its negotiable evidences of debt, bearing interest at such rate or rates as determined by the board.
  2. No bonds issued under the terms of this act shall run for more than thirty (30) years. All issues of bonds may be divided so that a portion thereof may mature each year as the assessments are collected, or they may all be made payable at the same time, with proper provision for a sinking fund.

History. Acts 1909, No. 279, § 15, p. 829; C. & M. Dig., § 3623; Pope's Dig., § 4474; Acts 1970 (Ex. Sess.), No. 49, § 1; 1975, No. 225, § 10; 1981, No. 425, § 10; A.S.A. 1947, § 21-553.

Meaning of “this act”. See note to § 14-121-426.

Case Notes

Advertisement.

An advertisement of the sale of bonds is not required. Boyce v. Clapham, 142 Ark. 519, 219 S.W. 24 (1920).

Bidding.

This section does not contemplate that there should be but a single bid which would dispose of both the bonds and the work, and a single contract let by the commissioners is made without authority. Hopson v. Hellums, 108 Ark. 460, 158 S.W. 771 (1913).

Borrowing.

The authority to purchase a dragline costing $45,000 and the issuing of bonds therefor was sustained where the district had money on hand to pay existing bonds and unused benefits in excess of $500,000. Cherry v. Cousart Bayou Drainage Dist., 222 Ark. 404, 259 S.W.2d 513 (1953).

14-121-442. Security for bonds — Levy and collection of tax — Default in payment of bonds.

  1. All bonds issued by commissioners under the terms of this act shall be secured by a lien on all lands, railroads, and tramroads in the district. The board of directors shall see to it that a tax is levied annually and collected under the provisions of this act, so long as it may be necessary to pay any bond issued or obligation contracted under its authority; and the making of the assessment or levy and collection may be enforced by mandamus.
  2. If any bond or interest coupon on any bond issued by the board is not paid within thirty (30) days after its maturity, it shall be the duty of the chancery court of the proper county, on the application of any holder of the bond or interest coupon so overdue, to cause the collection of the taxes set out in this chapter. The proceeds of the taxes and collections shall be applied, after payment of costs, first to overdue interest and then to payment pro rata of all bonds issued by the board which are then due and payable; and the commissioners may be directed by suit to foreclose the lien of the taxes on the lands.
  3. The suits so brought by the commissioners shall be conducted in all matters as suits by the board, as provided in this chapter, and with like effect.
  4. The decrees and deeds herein shall have the same presumptions in their favor.

History. Acts 1909, No. 279, § 25, p. 829; C. & M. Dig., § 3633; Pope's Dig., § 4484; A.S.A. 1947, § 21-554.

Meaning of “this act”. Acts 1909, No. 279, codified as §§ 14-121-101, 14-121-102, 14-121-104, 14-121-105, 14-121-20114-121-205, 14-121-207, 14-121-301, 14-121-304, 14-121-305, 14-121-307, 14-121-310, 14-121-311, 14-121-313, 14-121-40114-121-406, 14-121-408, 14-121-411, 14-121-412, 14-121-42214-121-432, 14-121-44014-121-442, 14-121-80214-121-805, and 14-121-808.

14-121-443. Tax to pay off bonds issued for preliminary expenses.

    1. For the purpose of paying the principal and interest of any bonds issued to pay preliminary expenses, either original or refunding bonds, when an assessment of benefits has not been made on the real property of the district, the court by which the district was established shall, when called upon by the commissioners of the district, enter upon its records an order, which shall have all the force and effect of a judgment, providing that there shall be assessed and collected a tax upon the real property of the district. This tax shall be sufficient to pay the bond issue as the bond issue matures, with ten percent (10%) added for unforeseen contingencies, based upon the valuation thereof as shown by the last assessment for county and state purposes. This tax shall be extended upon the tax books of the county and collected in the same manner as may be provided by law for the collection of taxes for state and county purposes, and for his services in making the collection, the collector shall receive a commission of one percent (1%).
    2. The tax so levied shall be a lien on all the real property of the district from the time the tax is levied by the court.
    3. The remedy against the assessment of taxes shall be by appeal, and the appeal must be taken within twenty (20) days from the time the assessment of taxes has been made by the court, and on appeal the presumption shall be in favor of the legality of the tax.
  1. The levy and collection of a tax for the payment of bonds issued to pay for preliminary expenses of a district or refunding bonds issued for such purposes shall not operate as an abandonment of the district, but the organization of the district shall be continued until such time as the board of commissioners of the district may deem it advisable to complete the improvements contemplated in the district, or, until it may be deemed advisable to abolish the district in the manner provided in subchapter 10 of this chapter.

History. Acts 1927, No. 59, § 2; Pope's Dig., § 4524; A.S.A. 1947, § 21-560.

Cross References. Issuance of bonds to pay preliminary expenses, § 14-86-702.

14-121-444. Issuance of certificates of indebtedness for maintenance — Appeal.

  1. Any drainage district organized under and pursuant to the laws of the State of Arkansas in which an additional tax levy has been made for the purpose of preserving the drainage system and of keeping the ditches clear from obstruction and of extending, widening, or deepening the ditches thereof, in order not to delay the necessary work, may issue and sell, with the approval of the court levying or approving the levying of the additional taxes, certificates of indebtedness, bearing interest at a rate not to exceed six percent (6%) per annum and for a total amount not to exceed one (1) annual tax. These certificates shall be, and are made, negotiable and shall mature and be made payable within one (1) year after their issuance and shall constitute a lien and charge against any funds of the district not previously pledged.
  2. No such certificates of indebtedness shall be issued while any appeal from any order levying such additional taxes is pending in any of the courts of this state, nor shall any such certificates of indebtedness be issued prior to the expiration of the time for appeal from any such order levying such taxes.
  3. However, the provisions of this section requiring the approval of the court of tax levies shall not apply to drainage districts which have heretofore been organized and created by special acts wherein it is provided that all tax levies shall be made by resolution or order of the board of commissioners or directors, and the provisions of such special acts so provided shall remain in full force and effect.
  4. Any property owner or the commissioners of any drainage district may appeal from the finding of the county court, or the circuit court where the lands comprising the district lie in more than one (1) county, on any petition for the levying of additional taxes for the purpose of preserving the drainage system and of keeping the ditches clear from obstruction and of extending, widening, or deepening the ditches thereof, at any time within thirty (30) days from the rendition of the finding, order, or judgment, but not thereafter.

History. Acts 1951, No. 72, §§ 1-3; A.S.A. 1947, §§ 21-583, 21-584.

14-121-445. Refunding bonds.

  1. Any drainage district in this state which has issued and sold bonds, prior to the assessment of benefits on the property of the district, for the purpose of paying preliminary expenses of the district is authorized and empowered to issue refunding bonds for the purpose of paying any bond or bonds of the district then outstanding.
    1. The refunding bonds shall mature at such time or times as the board of commissioners of the district may direct.
    2. The refunding bonds may not bear a greater rate of interest than six percent (6%) per annum. However, the bonds may be converted into a larger amount of bonds bearing a lower rate of interest on such terms that the district shall receive therefor and pay thereon substantially the same amount of money.
  2. The refunding bonds shall not be issued for a substantially greater amount than is necessary to pay outstanding bonds with all interest thereon in addition to such discounts and expenses only as may be necessary and incident to the refunding bond issue.

History. Acts 1927, No. 59, § 1.

Cross References. Preliminary expenses, issuance of bonds, § 14-86-702.

Case Notes

Double Purposes.

A single bond issue for the double purposes of refunding outstanding bonds of a drainage district and to obtain money for additional work is authorized. Indian Bayou Drainage Dist. v. Dickie, 177 Ark. 728, 7 S.W.2d 794 (1928).

Subchapter 5 — Subdistricts

Effective Dates. Acts 1913, No. 177, § 22: approved Mar. 13, 1913. Emergency declared.

Acts 1917, No. 270, § 2: approved Mar. 21, 1917. Emergency declared.

Acts 1959, No. 153, § 2: Mar. 4, 1959. Emergency clause provided: “It has been found and is declared by the General Assembly of the State of Arkansas that many of the improvements constructed by drainage districts subject to the general laws have been found to be inadequate for the purposes for which they were designed, and many have so deteriorated that they do not function so as to realize the purposes of the organization of such original drainage districts; that adequate means do not now exist to remedy these conditions, resulting in large areas of lands remaining overflowed and wet for long periods of time, all to the detriment of the public; and that enactment of this measure will provide the needed remedy. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health and safety, shall take effect and be in force from the date of its approval.”

Case Notes

Improvements.

The extent or magnitude of improvement contemplated in the proposed subdistrict is immaterial. Mahan v. Wilson, 169 Ark. 117, 273 S.W. 383 (1925).

Organization.

A subdistrict of land wholly or partly within a drainage district may be organized and become a part of the principal district though such district has been completed. Shewmake v. Hudson, 171 Ark. 739, 285 S.W. 382 (1926).

A subdistrict organized as part of a drainage district becomes a separate entity so far as the assessment of benefits necessary to construct it is concerned. Shewmake v. Hudson, 171 Ark. 739, 285 S.W. 382 (1926).

Cited: Walker v. Roland Drainage Dist., 212 Ark. 633, 207 S.W.2d 319 (1948).

14-121-501. Applicability of §§ 14-121-204 and 14-121-205.

The provisions of §§ 14-121-204 and 14-121-205 shall apply to the organization of a subdistrict the same as to the organization of the district.

History. Acts 1913, No. 177, § 18; C. & M. Dig., § 3650; Pope's Dig., § 4501; A.S.A. 1947, § 21-509.

14-121-502. Formation procedure in county court.

    1. When three (3) or more owners of real property within a proposed subdistrict, composed of land wholly within a drainage district, or partly within and partly without that district, shall petition the county court to establish a subdistrict to embrace their property, describing generally the region which it is intended shall be embraced within the subdistrict, and shall file a good bond to pay for the expense of the survey of the proposed subdistrict, in case the subdistrict is not formed, it shall be the duty of the county court to enter upon its records an order directing the commissioners of the main district to forthwith proceed to cause a survey to be made and to ascertain the limits of the region which would be benefited by the proposed system of improvements.
    2. The commissioners shall cause a survey to be made and shall file with the county clerk a report showing the territory which will be benefited by the proposed improvement, giving a general idea of its character and expense and making suggestions as to the size of the drainage ditches and their location as the commissioners may deem advisable. They shall file their report with the county clerk.
    3. All expenses incident to preparing those plans, estimates, and the cost of publication shall be paid from the funds of the main drainage district, as the work progresses, upon proper showing to the commissioners of the district. However, all expenses incurred by the subdistricts shall be repaid out of the proceeds of the first money received by the proposed subdistrict.
    1. The county clerk shall thereupon give notice by publication for two (2) weeks in some newspaper published in the county or counties in which the subdistrict will be located, calling upon all persons owning property in the subdistrict to appear before the court on some day fixed by the court to show cause in favor of or against the establishment of the subdistrict.
    2. At the time named in the notice, the county court shall meet and hear all property owners within the proposed subdistrict who wish to appear and advocate or resist the establishment of the subdistrict.
    3. If it appears to the court that the petition is signed by three (3) or more owners of real property within the subdistrict and if it appears to the county court that the organization of the proposed subdistrict will be conducive to the public health, convenience, and welfare, and to the interest of the owners of real property therein, then it shall make an order upon its records to the terms and provisions of this act.
    4. If the county court does not act promptly in complying with the terms of this section or any other section in this act essential to the creation and operation of the district, it may be compelled to do so by mandamus.

History. Acts 1913, No. 177, § 18; C. & M. Dig., § 3650; Pope's Dig., § 4501; A.S.A. 1947, §§ 21-509, 21-510.

Meaning of “this act”. Acts 1913, No. 177, codified as §§ 14-121-10114-121-103, 14-121-206, 14-121-303, 14-121-309, 14-121-312, 14-121-314, 14-121-40214-121-405, 14-121-408, 14-121-411, 14-121-421, 14-121-433, 14-121-50114-121-504, 14-121-80614-121-808, and 14-121-810.

Case Notes

Cited: Walker v. Roland Drainage Dist., 212 Ark. 633, 207 S.W.2d 319 (1948).

14-121-503. Formation procedure in circuit court.

  1. Where the main drainage district, of which the proposed subdistrict is to become a part, shall have been organized by a circuit court, the petition for the proposed subdistrict shall be presented to the circuit court and all subsequent proceedings had therein.
  2. Where the main drainage district, of which the proposed subdistrict shall embrace lands lying in another, or other counties, the petition for the organization of the proposed subdistrict shall be filed in the circuit court of the county in which the main district was organized and all subsequent proceedings shall be had in the circuit court.

History. Acts 1913, No. 177, § 19; 1917, No. 270, § 1, p. 1446; C. & M. Dig., § 3151; Pope's Dig., § 4502; A.S.A. 1947, § 21-510.

14-121-504. Commissioners — Subsequent proceedings.

When the county or circuit court has established a subdistrict, it shall appoint the commissioners of the main district of which the subdistrict is to become a part to act as commissioners of the subdistrict, and the proceedings thereafter shall conform to the provision of this act relating to drainage districts.

History. Acts 1913, No. 177, § 19; 1917, No. 270, § 1, p. 1446; C. & M. Dig., § 3151; Pope's Dig., § 4502; A.S.A. 1947, § 21-510.

Meaning of “this act”. See note to § 14-121-502.

Case Notes

Authority.

The commissioners of a drainage district have no authority to do anything not authorized by the act creating the district, but the commissioners of a subdistrict derive their authority from the general law and not from the special act. Shewmake v. Hudson, 171 Ark. 739, 285 S.W. 382 (1926).

14-121-505. Authority to do construction for land reclamation.

A subdistrict of a drainage district organized under, or made subject to, §§ 14-121-101, 14-121-102, 14-121-104, 14-121-105, 14-121-20114-121-205, 14-121-207, 14-121-301, 14-121-304, 14-121-305, 14-121-307, 14-121-310, 14-121-311, 14-121-313, 14-121-40114-121-406, 14-121-408, 14-121-411, 14-121-412, 14-121-42214-121-432, 14-121-44014-121-442, 14-121-80214-121-805, and 14-121-808 may reconstruct, repair, enlarge, straighten, extend, and improve ditches, drains, levees, sluiceways, flood gates, and any and all other construction work of the original district for the reclamation of wet and overflowed land, as a part of the system of improvements of the subdistrict, provided the work shall be done at the expense of the subdistrict.

History. Acts 1959, No. 153, § 1; A.S.A. 1947, § 21-586.

Subchapter 6 — Forming Maintenance Districts Within Original Districts

Effective Dates. Acts 1947, No. 371, § 8: Mar. 28, 1947. Emergency clause provided: “This act being necessary to simplify and clarify laws regarding drainage districts thereby better protecting the interest of taxpayers residing in said districts, it is hereby declared that an emergency exists and this act, being necessary for the immediate preservation of the public peace, health and safety, shall take effect and be in force from and after its passage and approval.”

14-121-601. Scope.

The terms and provisions of this subchapter shall never at any time be applicable to a drainage district organized under the general drainage laws of this state for the primary purpose of constructing levees and other flood control projects under the terms and provisions of the Flood Control Acts of Congress, approved May 15, 1928, and June 15, 1936, and any amendments thereto, and all districts organized as aforesaid are exempt from the provisions of this subchapter.

History. Acts 1947, No. 371, § 6; A.S.A. 1947, § 21-582.

U.S. Code. The Flood Control Acts of Congress are codified primarily as 33 U.S.C. § 701 et seq.

The Flood Control Act of Congress approved May 15, 1928, referred to in this section, is codified as 33 U.S.C. §§ 702a, 702b-702d, 702e-702g, 702h-702j, 702k, 702l, 702m, and 704.

The Flood Control Act of Congress approved June 15, 1936, referred to in this section, is codified as 33 U.S.C. §§ 702a-1, 702a-2 — 702a-11, 702g-1, 702j-1, 702j-2, 702k-1, and 702k-2.

14-121-602. Definition.

Throughout this subchapter, unless the context otherwise requires, “original district” includes the district which was first created in the circuit court and all subdistricts within and appurtenant to that district.

History. Acts 1947, No. 371, § 2; A.S.A. 1947, § 21-578.

14-121-603. Dividing district land according to county boundaries.

Any drainage district in this state not organized for the primary purpose of constructing levees and receiving federal aid under Flood Control Acts of Congress, approved May 15, 1928, and June 15, 1936, and amendments thereto, comprising lands in more than one (1) county and organized under the provisions of the general drainage laws which have no outstanding unpaid bonds or other evidences of indebtedness may be divided into separate districts comprising the lands in each county of the original district for the purpose of preserving the drainage system, of keeping the ditches clear from obstructions and of extending, widening, or deepening the ditches from time to time as may be found advantageous to the lands in the separate district or districts, as provided in this subchapter.

History. Acts 1947, No. 371, § 1; A.S.A. 1947, § 21-577.

U.S. Code. For Flood Control Acts, referred to in this section, see note to § 14-121-601.

Case Notes

Notice.

Statutory publication of notice of hearing on tax levies against all the lands in an original, established drainage district is not defective for failure to describe each parcel of land in the district or the boundaries of the district. Tri-County Drainage Dist. v. Morrison, 227 Ark. 29, 295 S.W.2d 781 (1956).

Withdrawal of Counties.

Attorney's and engineer's fees are not such indebtedness of a drainage district as would prevent a county from withdrawing from the district. Tri-County Drainage Dist. v. Morrison, 227 Ark. 29, 295 S.W.2d 781 (1956).

The commissioners of an original drainage district from which several counties have withdrawn are the proper parties to initiate court action for levy of taxes against the lands of all the counties in the original district for the purpose of preserving the established drainage system and keeping the ditches clear from obstructions. Tri-County Drainage Dist. v. Morrison, 227 Ark. 29, 295 S.W.2d 781 (1956).

While a drainage district from which counties have withdrawn retains the power to seek tax levy on the withdrawn counties pro rata to “clean out” and maintain the established drainage system, a reasonable latitude of discretion and judgment is allowed the drainage commissioners and courts to determine what is maintenance of the system as opposed to the extension thereof. Tri-County Drainage Dist. v. Morrison, 227 Ark. 29, 295 S.W.2d 781 (1956).

14-121-604. Filing petition for separation — Order.

  1. Any five (5) owners of land within the boundaries of the original district may file a petition in the circuit court of the county in which the district was originally organized, setting forth the fact that:
    1. The improvement for which the district was originally organized has been completed;
    2. The district comprises lands in more than one (1) county, that all obligations of the district have been paid in full, that the drainage district was not organized primarily for the construction of levees and has not received federal aid under Flood Control Acts of Congress approved May 15, 1928, and June 15, 1936, and amendments thereto, and praying that the lands in the county mentioned in the petition be separated from the original district for the purposes set forth in § 14-121-603.
  2. If the circuit court in which the petition is filed shall find the facts set forth in the petition to be true, the court shall enter an order granting the prayer of the petition for the purposes of this subchapter.
  3. Upon the filing of a certified copy of the order in the county court of the county set forth in the petition, the county court shall thereupon enter an order establishing a separate district which shall be named in the order and which shall comprise the lands in the county which were included in the district as originally organized.

History. Acts 1947, No. 371, § 3; A.S.A. 1947, § 21-579.

U.S. Code. For Flood Control Acts, referred to in this section, see note to § 14-121-601.

Case Notes

Fees.

Attorney's and engineer's fees are not such indebtedness of a drainage district as would prevent a county from withdrawing from the district. Tri-County Drainage Dist. v. Morrison, 227 Ark. 29, 295 S.W.2d 781 (1956).

14-121-605. Commissioners of separate districts.

  1. The county court shall appoint three (3) owners of real property within the boundaries of the separate district as commissioners thereof.
  2. Each commissioner shall take the oath of office required by Arkansas Constitution, Article 19, § 20, and shall also swear that he will not be directly or indirectly interested in any contract made by the board.
  3. Any commissioner failing to take the oath within thirty (30) days after his appointment shall be deemed to have declined to act, and his place shall be filled by the county court of that county.
  4. All vacancies on the board shall be filled by the county court, or the judge thereof in vacation, but if a majority in value of the owners of real property in the subdistrict shall petition for the appointment of a particular person or persons as commissioners, it shall be the duty of the county court to appoint the person or persons so designated.
  5. The board shall select one (1) of their number as chairman, and a majority shall constitute a quorum.
  6. The county court shall remove any member of the board on petition of a majority in value of the owners of real property in the district.

History. Acts 1947, No. 371, § 4; A.S.A. 1947, § 21-580.

14-121-606. Commissioners of original district.

When the order has been entered by the county court and the commissioners have qualified as such under provisions of this subchapter, the lands in each county shall no longer be a part of the district as originally organized, and the power of the original district and the commissioners thereof to levy a tax on the lands in the county so separated from the original districts for the purposes provided in § 14-121-412 or for any other purposes shall terminate, but their authority as to all other lands located in the original district shall not be thereby affected.

History. Acts 1947, No. 371, § 5; A.S.A. 1947, § 21-581.

14-121-607. Powers of separate districts.

The separate districts shall have the power to preserve the portion of the drainage system located in the county as provided in § 14-121-412 in the same manner as if the separate district had originally been organized under the laws of Arkansas as a drainage district comprising lands in one (1) county. However, the circuit court in which the original district was organized shall have authority to cause to be levied and collected a tax on all the lands of the original district for the purpose of paying the expenses incident to the cleaning out, but not for the purpose of extending, widening, or deepening existing ditches so as to provide an adequate outlet for the entire drainage system of the original district.

History. Acts 1947, No. 371, § 5; A.S.A. 1947, § 21-581.

Case Notes

Assessments.

Assessments of drainage district properly and lawfully made do not constitute a cloud on the title to the land involved even though the money collected is used for an unlawful purpose. Park Corp. v. Tri-County Drainage Dist., 226 Ark. 357, 290 S.W.2d 18 (1956).

Circuit court in which original district was created had the authority to cause assessments and taxes to be levied for purpose of cleaning out existing ditches lying in county in which new district created was situated even though the county in which the new district lay was in a different judicial district from that of court in which original district was formed. Park Corp. v. Tri-County Drainage Dist., 226 Ark. 357, 290 S.W.2d 18 (1956).

Where original district created lay in three counties and new district was created lying in one of the counties of the original district, property owners in the new district could be assessed by both the original district and the new district for clearing out ditches existing at the time of the creation of the new district. Park Corp. v. Tri-County Drainage Dist., 226 Ark. 357, 290 S.W.2d 18 (1956).

Withdrawal of Counties.

Attorney's and engineer's fees are not such indebtedness of a drainage district as would prevent a county from withdrawing from the district. Tri-County Drainage Dist. v. Morrison, 227 Ark. 29, 295 S.W.2d 781 (1956).

The commissioners of an original drainage district from which several counties have withdrawn are the proper parties to initiate court action for levy of taxes against the lands of all the counties in the original district for the purpose of preserving the established drainage system and keeping the ditches clear from obstructions. Tri-County Drainage Dist. v. Morrison, 227 Ark. 29, 295 S.W.2d 781 (1956).

While a drainage district from which counties have withdrawn retains the power to seek tax levy on the withdrawn counties pro rata to “clean out” and maintain the established drainage system, a reasonable latitude of discretion and judgment is allowed the drainage commissioners and courts to determine what is maintenance of the system as opposed to the extension thereof. Tri-County Drainage Dist. v. Morrison, 227 Ark. 29, 295 S.W.2d 781 (1956).

Subchapter 7 — Annexing Certain Benefited Lands to District

Preambles. Acts 1927, No. 180 contained a preamble which read:

“Whereas, into the ditches of some drainage districts of the state, after the ditches were completed, other lands have been drained by digging private ditches, thereby draining sloughs, marshes and lakes that could not otherwise be drained; and

“Whereas, in certain instances, sanitary sewer lines have made use of such drainage ditches to procure an emptying outlet, thereby saving the sanitary sewer district large sums of money; and

“Whereas, it is right and just that such lands as make use of and are benefited by such drainage ditches of any such drainage districts should stand their just portion of the costs of the construction and maintenance of such drainage ditches in proportion to the benefits received;

“Therefore….”

14-121-701. Lands to be annexed.

Where any slough, marsh, or lake has been drained into the drainage ditches of any drainage district which has completed its work of construction, lands benefited by the draining of the slough, marsh, or lake may be added to the drainage district in the manner provided by § 14-121-703, but in no case shall lands paying taxes in another drainage district be added to any drainage district under the provisions of this subchapter, and in no case shall lands, lots, or blocks already in a drainage district be in any way affected by the provisions of this subchapter.

History. Acts 1927, No. 180, § 1; Pope's Dig., § 4530; A.S.A. 1947, § 21-534.

Case Notes

Purpose.

The purpose of this section is to prevent owners of sewer lines, sloughs, marshes, and lakes from making use of drainage district's improvements without just compensation. Pendleton v. Stuttgart & King's Bayou Drainage & Irrigation Dist., 235 Ark. 513, 360 S.W.2d 750 (1962).

This section requires affirmative action by the owners of the outside lands before annexation into a drainage district can be granted. The preamble to the act which enacted this section unequivocally recites that the purpose of the act is to provide equitable relief to drainage districts when owners of lands outside the district dig private ditches to drain their lowlands into the district. Mayberry Drainage Dist. v. Graham, 289 Ark. 156, 711 S.W.2d 147 (1986).

Applicability.

This section applies only to lands added to a district existing under the provisions of this subchapter and does not apply to districts formed under the provisions of other acts. Pendleton v. Stuttgart & King's Bayou Drainage & Irrigation Dist., 235 Ark. 513, 360 S.W.2d 750 (1962).

Cited: Williams v. Village Creek, White River & Mayberry Levee & Drainage Dist., 285 Ark. 194, 685 S.W.2d 797 (1985).

14-121-702. Addition of sanitary sewer district — Taxes and bonds.

  1. If any sanitary sewer district drains into the ditches or conduits of any drainage district which has completed its work of construction, or if private or other public sanitary sewers drain into the ditches or conduits, the lands within the sanitary sewer district or the lands served by those private or other public sewers may be added to the drainage district in the manner provided in § 14-121-703.
  2. If lands, lots, or blocks served by sanitary sewers are added to the drainage district, they shall not be taxed exceeding an average of fifty cents (50¢) per year for each lot or parcel of land fifty feet by one hundred fifty feet (50' x 150'), and more or less for larger or smaller tracts or parcels of land. It is ascertained that the average benefits to the lands, lots, or parcels derived from the sanitary sewer drainage will not exceed that sum.
  3. The commissioners of any drainage district, with the consent of the chancery court in which the lands of the district are located, shall have the right to sell additional bonds for the purpose of cleaning, widening, deepening, and completing necessary ditches for the proper drainage of the district.

History. Acts 1927, No. 180, § 2; Pope's Dig., § 4531; A.S.A. 1947, § 21-535.

14-121-703. Annexation procedure.

  1. When the commissioners of any such drainage district find that lands, lots, or blocks such as are described in §§ 14-121-701 and 14-121-702 of this subchapter have been benefited by the connection established with the drainage ditches or conduits of the district, they shall file with the clerk of the chancery court of the county where the lands lie a petition setting forth the reasons why the lands, lots, or blocks should be annexed to the drainage district and praying for their annexation.
  2. Thereupon, it shall be the duty of the clerk of the court to publish once a week for two (2) weeks in some newspaper issued and having a bona fide circulation in the county a notice in substantially the following form:
  3. On the day named in the notice or as soon thereafter as the business of the court will permit, the court shall hear all persons who wish to be heard on the question of whether the lands, lots, or blocks shall be annexed to the drainage district, and it shall enter its decree which shall be conclusive unless an appeal therefrom is taken and perfected within thirty (30) days.
  4. If it makes an order annexing the territory, the annexed territory shall constitute a part of the drainage district.

“ DRAINAGE DISTRICT NOTICE IS HEREBY GIVEN that the commissioners of Drainage District have filed in the Chancery Court of County their petitions setting forth that the following lands, lots, and blocks (here will follow a description of the lands, lots, and blocks sought to be annexed) have been benefited by connections made with the drainage ditches or conduits of said district and praying that such lands, lots, and blocks be annexed to said district; and all persons interested are warned to appear in said court on the day of , 19 and show cause for or against the proposed annexation. Chancery Clerk”

Click to view form.

History. Acts 1927, No. 180, § 3; Pope's Dig., § 4532; A.S.A. 1947, § 21-536.

Case Notes

Petition.

This section provides a method for annexing lowlands to a drainage district where the improvements have been completed and where the owners of the lands to be annexed have taken some affirmative action to drain sloughs, marshes, or lakes into the completed improvement; thus, where the annexation petition filed by the drainage district did not contain an allegation of affirmative action by the owners of the lands to be annexed, no cause of action had been stated. Mayberry Drainage Dist. v. Graham, 289 Ark. 156, 711 S.W.2d 147 (1986).

Cited: Williams v. Village Creek, White River & Mayberry Levee & Drainage Dist., 285 Ark. 194, 685 S.W.2d 797 (1985).

14-121-704. Assessment or reassessment of benefits.

  1. When lands have been annexed, the assessor of the drainage district shall proceed to assess the benefits in the annexed territory.
  2. Where there are no assessors, the board of commissioners shall act as assessors.
  3. The benefits shall be assessed, advertised, and equalized in the manner provided in §§ 14-121-402, 14-121-404, and 14-121-405, and appeals from the proceedings confirming the assessment must be taken within the time therein provided.
  4. If the commissioners of that drainage district deem it best, they may have a reassessment of all the benefits in the entire district, so as to equalize the burden, which reassessment shall be made, advertised, and equalized as above provided.

History. Acts 1927, No. 180, § 4; Pope's Dig., § 4533; A.S.A. 1947, § 21-537.

Cross References. Reassessment of benefits, § 14-120-108.

Case Notes

Cited: Williams v. Village Creek, White River & Mayberry Levee & Drainage Dist., 285 Ark. 194, 685 S.W.2d 797 (1985).

14-121-705. Use of increased revenues.

Any increased revenues by reason of the annexes to a district together with any other revenues of any district not required for bonds and interest payments may be used by the commissioners for the purpose of cleaning, widening, deepening, or maintaining the drainage ditches of the districts.

History. Acts 1927, No. 180, § 5; Pope's Dig., § 4534; A.S.A. 1947, § 21-538.

14-121-706. Legal proceedings.

All proceedings brought under this subchapter and all suits to enjoin such proceedings or questioning the assessment of benefits had hereunder shall be deemed matters of public interest and shall be disposed of at the earliest possible moment. Appeals therefrom must be taken and perfected within thirty (30) days.

History. Acts 1927, No. 180, § 6; Pope's Dig., § 4535; A.S.A. 1947, § 21-539.

Subchapter 8 — Construction and Maintenance Generally

Effective Dates. Acts 1909, No. 279, § 35: effective on passage.

Acts 1913, No. 177, § 22: approved Mar. 13, 1913. Emergency declared.

Acts 1945, No. 213, § 3: approved Mar. 20, 1945. Emergency clause provided: “Whereas certain drainage districts located within the State of Arkansas and organized under special acts have very rich and fertile lands, a great many acres of which cannot be used on account of the obstructions existing in the lower end of the drainage ditches and, not having proper outlet, the lands cannot be put into cultivation on account of the overflow and destruction of the crops;

“And whereas the said government has agreed to give aid to certain districts and to reconstruct, repair and replace certain levees and setbacks within the districts and to remove the obstructions in the drainage ditches and thus secure a better outlet for said ditches, so that these rich lands can be immediately put into cultivation and thus grow the crops that are so vitally needed at this time, and unless these districts shall have the above authority to maintain the levees and keep the outlets open, such federal aid will not be given, and the lands cannot be cultivated: an emergency is, therefore, declared to exist, and the passage of this act and the adoption of this emergency clause is necessary for the public health and safety, and this act shall be in full force and effect immediately from and after the day of its passage.”

Acts 1947, No. 95, § 3: Feb. 18, 1947. Emergency clause provided: “Whereas, much valuable land located within drainage districts is now subject to flooding from excessive rains, thereby rendering cultivation of such land impossible, an emergency is declared to exist and this act shall be in effect from and after its passage and approval.”

Acts 1947, No. 124, § 4: Feb. 26, 1947. Emergency clause provided: “Whereas certain drainage districts located within the State of Arkansas have very rich and fertile lands, subject to flooding from excessive rains, many acres of which cannot be placed in cultivation on account of inadequate drainage, and insufficient outlet; and the cost of deepening, widening, clearing of obstructions, making cutoffs, and providing an outlet is prohibitive to the landowners;

“And whereas the Federal Government is authorized by an Act of Congress to do drainage improvement work in aid of Flood Control and Drainage in certain areas, which will result in making thousands of acres of land available to habitation and cultivation, improve drainage and increase production of all agricultural products, permit the building of roads, improve health of the people, be an aid to school attendance by children living in said areas, and promote the general welfare, an emergency is therefore declared to exist, and the passage of this act and the adoption of this emergency clause is necessary for the public health and safety, and this act shall be in effect from and after its passage and approval.”

Acts 1967, No. 206, § 3: Mar. 6, 1967. Emergency clause provided: “It is hereby found and determined by the General Assembly that guidelines have not been established by law for defining what constitutes compensation to be paid personnel employed by a drainage district; that there is great chaos, confusion and uncertainty as to what compensation is to be paid such employees; and that in order to clarify this situation and to insure the employees of such districts of a fair wage, it is necessary that this act become effective immediately. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1969, No. 27, § 3: Feb. 4, 1969. Emergency clause provided: “It is hereby found and determined by the General Assembly that the requirement that the board of commissioners of a drainage district retain 20% of the compensation for work done by a contractor until the contract is completed is unduly restrictive; that many drainage district boards have been retaining only 10% of the estimated work as construction has progressed rather than 20%; that there is immediate need for legislation to remove this unduly restrictive requirement in order that public contractors not be unduly oppressed by the greater amount of retainage, and in order that public works be bid at the lowest possible prices and completed as expeditiously as possible. Therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after the date of its passage and approval.”

Acts 1995, No. 343, § 9: Feb. 16, 1995. Emergency clause provided: “It is hereby found and determined by the General Assembly that Drainage Improvement Districts should be authorized to levy their assessments as a flat tax per acre; that the statutes do not specifically now authorize such; that such authority should be granted immediately; and this act will grant that authority. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

14-121-801. Cooperation with the United States.

  1. All drainage districts organized under the laws of Arkansas, within whose boundaries the federal government has been, or shall hereafter be, authorized to do improvement work in aid of drainage and flood control, pursuant to an act of Congress, whereby the ditches and drains are to be cleared of obstructions, deepened, widened, and repaired, and the natural drains within a district are to be improved by clearing, dredging, or making cutoffs therein, are authorized to cooperate with the Department of Defense of the United States or other federal agency by permitting the work to be done in the district, and by furnishing any right-of-way necessary for the drainage improvement, for which purpose the districts shall have the right of eminent domain in accordance with §§ 18-15-1001 — 18-15-1011, and amendments thereto.
    1. Any drainage district shall have the further right and authority to give assurance to the federal government that it will maintain and keep in proper repair any ditch or drain which may be widened, deepened, cleared of obstructions, improved, or repaired within the district by the federal government acting through the United States Army Corps of Engineers or other agency, pursuant to an act of Congress of the United States in aid of flood control and drainage, and to agree to save and hold harmless the federal government from any liability or damages due to the construction of the works.
    2. Where the plans for the proposed improvement cover and include an area in which more than one (1) drainage district is located, and all of the included districts are part of one (1) comprehensive plan in the same drainage basin, then the districts in the affected area are authorized to form a permanent committee, composed of one (1) member from each of the districts, who shall be elected by the commissioners of each district, who may or may not be a commissioner, for the purpose of facilitating compliance with the regulations of the Secretary of Defense or other federal agency with reference to procuring all necessary commitments and assurances from the respective drainage districts, obtaining rights-of-way for the project, and as to inspections and maintenance of drainage and flood control works when completed by the federal government.
    3. The committee may employ a competent person to coordinate and perform the work and such clerical help as it deems necessary for the purpose.
    4. The expense thereof shall be considered as maintenance costs, which shall be paid by, and apportioned among, the districts in such areas on the basis of the total acreage in the districts in a fair and equitable manner.
    5. The cost of maintaining ditches and drains or drainage structures of each district after completion of the work by the federal government shall be borne wholly by the district in which the work is done.
      1. For the purpose of carrying out all of the provisions of this section, districts are authorized to levy a maintenance tax, and obtain funds, as now provided by law.
      2. The tax may be levied as a flat tax per acre.
    6. In areas where all of the lands involved are situated within a levee district, the levee district may participate in the committee herein authorized to be formed on a basis which its commissioners deem to be fair and equitable.
  2. This section is supplemental and does not repeal any existing drainage law.

History. Acts 1947, No. 124, §§ 1-3; 1949, No. 84, § 1; A.S.A. 1947, §§ 21-572 — 21-574; Acts 1995, No. 343, § 3.

Amendments. The 1995 amendment made a stylistic change in (b)(6)(A); and added (b)(6)(B).

Case Notes

Authority.

Where levee was constructed by federal government in 1938, landowners of drainage district where the levee was located could not in 1949 maintain that levee was illegally constructed, since levee district had such authority under this section and § 14-121-809 and levee was an integral part of the drainage district. Owen v. Central Clay Drainage Dist., 216 Ark. 159, 224 S.W.2d 529 (1949).

14-121-802. Contractor's bond.

All contractors shall be required to give bond for the faithful performance of the contracts awarded them, with good and sufficient securities, in an amount to be fixed by the board. The board shall not remit or excuse the penalty or forfeiture of the bond or the breaches thereof.

History. Acts 1909, No. 279, § 14, p. 829; C. & M. Dig., § 3622; Pope's Dig., § 4473; Acts 1969, No. 27, § 1; A.S.A. 1947, § 21-524.

Cross References. Public contractors' bonds, § 22-9-401 et seq.

Case Notes

Construction.

The bond of a contractor for the construction of ditches in a drainage district is in the nature of a contract of insurance and should be most strongly construed against the surety. Union Indem. Co. v. Forgey, 174 Ark. 1110, 298 S.W. 1032 (1927).

14-121-803. Right to pass over land — Commissioners, engineers, and contractors.

  1. The commissioners, engineers, and contractors engaged in drainage work shall have the right to pass, with their equipment, over all the lands of the district, being liable to the owner for any damage done thereto.
  2. Any owner who shall prevent the passage over his land shall be guilty of a misdemeanor and fined one hundred dollars ($100) for each day that he prevents the passage.

History. Acts 1909, No. 279, § 33, p. 829; C. & M. Dig., § 3653; Pope's Dig., § 4504; A.S.A. 1947, § 21-525.

Cross References. Destroyed section corners to be relocated, § 14-86-501 et seq.

14-121-804. Landowner ditches draining into public ditches — Crossing lands of another.

  1. Any landowner within the district may build ditches to drain his lands into the public ditches.
  2. If any intervening landowner should refuse permission to cross his lands with such ditch, the landowner seeking to construct the ditch may, by proceedings in the circuit court to be conducted in the same manner as condemnation proceedings instituted by railroad, telegraph, and telephone companies, condemn a right-of-way for the ditch.
  3. In those proceedings, the jury shall deduct from the damages the benefits that will accrue to the intervening landowner by the construction of the ditch, and the intervening landowner shall have the right to use the ditch for the drainage of his own lands.

History. Acts 1909, No. 279, § 19, p. 829; C. & M. Dig., § 3627; Pope's Dig., § 4478; A.S.A. 1947, § 21-527.

Cross References. Condemnation proceedings by railroad, telegraph, and telephone companies, § 18-15-1201 et seq.

14-121-805. Ditches across or under highways, railroads, or bridges.

  1. The commissioners shall have the right to carry the ditches across any highway.
  2. Ditches may also be carried under or through any railroad track or tramway, and the owner thereof shall have no claim for damages on that account but shall bridge the ditch at its own expense.

History. Acts 1909, No. 279, § 28, p. 829; C. & M. Dig., § 3648; Pope's Dig., § 4499; A.S.A. 1947, § 21-528.

Cross References. Agreement with State Highway Commission, § 14-120-219.

Case Notes

Duty to Bridge.

It is the duty of a railroad company to build, at its own expense, the crossing over a ditch carried under or through its track. Hahn & Carter v. Gould S.W. Ry., 113 Ark. 537, 168 S.W. 1064 (1914).

14-121-806. District duty to build highway bridges over ditches.

The district shall build bridges to carry the county highways over the ditches dug by it.

History. Acts 1913, No. 177, § 16; C. & M. Dig., § 3648; Pope's Dig., § 4499; A.S.A. 1947, § 21-529.

14-121-807. Regulations for district fences, bridges, etc.

  1. In order to prevent damages to drainage systems and to secure the best results from their construction, the board of commissioners of any district may:
    1. Make regulations for and may prescribe the manner of building fences and bridges across any ditch or other construction; and
    2. Prescribe the manner in which branch ditches or tile lines shall enter the ditches of the district, and the means by which crossings shall be made over levees.
  2. The construction of any fences, bridges, or other construction and the digging of any lateral ditches into the ditches of the district in a manner contrary to that specified by the commissioners shall be a misdemeanor, punishable by a fine of not to exceed one hundred dollars ($100).
  3. The commissioners shall have authority to enforce the regulations and may remove any construction or may close any opening improperly made.

History. Acts 1913, No. 177, § 7; C. & M. Dig., § 3640; Pope's Dig., § 4491; A.S.A. 1947, § 21-530.

14-121-808. Construction of ditches beyond district limits.

  1. In case it is necessary to do so in order to obtain a proper outlet for the drainage system or otherwise to perfect the system of improvements, the commissioners may construct ditches or do other work on land beyond the jurisdiction of the county court or which for other reasons cannot be included in the district, so as to secure the object of the improvement.
  2. In that event, they shall have the right to condemn a right-of-way for that drain or other construction.
  3. The proceedings for the right-of-way shall be the same that are now provided by law for the condemnation of the rights-of-way for railroads, telegraphs, and telephones.
  4. The ditch or drain beyond the limits of the districts shall be the property of the district, and no person, corporation, or other drainage district not assessed shall have the right to dig any lateral drain connecting therewith without paying compensation to be fixed by the circuit court.

History. Acts 1909, No. 279, § 21, p. 829; 1913, No. 177, § 4; C. & M. Dig., § 3629; Pope's Dig., § 4480; A.S.A. 1947, § 21-532.

Cross References. Condemnation by railroads, telegraph, and telephone companies, § 18-15-1201 et seq.

Case Notes

Authority.

It is no objection to the legality of a drainage district that a canal was to be built outside the boundaries of the district to divert waters from the district. O'Kane v. McLean Bottom Levee & Drainage Dist., 211 Ark. 938, 203 S.W.2d 392 (1947).

Damages.

Owners of land adjoining drainage ditch could not recover for damages to crops caused by poison used by drainage district to kill willows growing on the drainage ditch right-of-way which drifted through the air and came in contact with some of the crops being grown by plaintiffs, since the crops were not damaged for public use, the principles of eminent domain were not applicable, and an improvement district is not liable in tort. Saint Francis Drainage Dist. v. Austin, 227 Ark. 167, 296 S.W.2d 668 (1956).

14-121-809. Construction, reconstruction, replacement, and repair of certain levees and setbacks.

  1. All drainage districts organized under special acts of the General Assembly are given authority to construct, reconstruct, repair, and replace levees and to construct setbacks abutting drainage ditches whenever deemed necessary and proper by the board of directors of the district for the benefit of the lands of the district in securing better drainage for those lands and preventing overflows and destruction of the crops and the erosion of lands within the district. They are given the power of eminent domain over such lands as may be necessary for the purpose.
  2. The drainage districts shall have a further right and authority to obligate the district to maintain and keep in proper repair any levees which may be constructed, reconstructed, repaired, or replaced within the district by the federal government for the benefit of the lands within the district and to further obligate the district to keep its drainage ditches and their outlets free of obstructions.

History. Acts 1945, No. 213, §§ 1, 2; A.S.A. 1947, §§ 21-570, 21-571.

14-121-810. Ownership of timber on right-of-way.

In case the right-of-way for the improvement is through timber, the ownership of the timber shall pass to the district with the control of the right-of-way, and the board of commissioners may use or dispose of the timber as they deem best.

History. Acts 1913, No. 177, § 9; C. & M. Dig., § 3642; Pope's Dig., § 4493; A.S.A. 1947, § 21-522.

14-121-811. Authority to obtain and dispose of maintenance equipment — Personnel — Tax.

    1. Boards of commissioners of drainage districts organized under the laws of Arkansas are authorized upon petition of the majority of the property owners in their districts, or upon petition of the owners of the majority of the property in their district, to purchase, lease, or rent, separately as individual districts or jointly with other districts, machinery, equipment, and material to be used in repairing, deepening, widening, and clearing the ditches of their districts.
    2. The commissioners are further authorized to employ and fix the compensation to be paid such personnel as may be necessary and incidental for the use of the machinery, equipment, and material obtained.
      1. For the purpose of carrying out the provisions of this section, the drainage districts are authorized to levy a maintenance tax and obtain funds as now provided by law.
      2. The tax may be levied as a flat tax per acre.
    3. Commissioners are further authorized to sell or lease machinery, equipment, or material purchased under the provisions of this section, the proceeds of the sale or lease to be deposited to the credit of the district's maintenance fund in the established depository of the district.
  1. As used in this section, unless the context otherwise requires, “compensation” means all salaries, hourly wages, retirement allowances, group insurance, medical benefits, and anything else of value that the district provides in return for work done by the personnel.
  2. This section is supplemental and does not repeal any existing drainage law.

History. Acts 1947, No. 95, §§ 1, 2; 1967, No. 206, §§ 1, 2; A.S.A. 1947, §§ 21-575, 21-576; Acts 1995, No. 343, § 4.

Amendments. The 1995 amendment added (a)(3)(B).

Case Notes

Borrowing Money.

Recourse must necessarily be had to the general law regulating procedure by districts for the exercise of the power granted in this section and for the procedure as to notice, hearings, determination of the majority, and authorization for borrowing money. Cherry v. Cousart Bayou Drainage Dist., 222 Ark. 404, 259 S.W.2d 513 (1953).

The authority to purchase a dragline costing $45,000 and the issuing of bonds therefor was affirmed where the district had money on hand to pay existing bonds and unused benefits in excess of $500,000. Cherry v. Cousart Bayou Drainage Dist., 222 Ark. 404, 259 S.W.2d 513 (1953).

Purchase, Etc., of Equipment.

Where a majority in acreage of the property owners in a drainage district signed petition asking for the cleaning out of ditch, the district had right to purchase equipment to be used on the work. Halsell v. Draingage Dist. of Mississippi County, 216 Ark. 746, 227 S.W.2d 136 (1950).

Subchapter 9 — Cleaning Public Drains

Effective Dates. Acts 1907, No. 314, § 6: effective on passage.

14-121-901. Board.

For the purpose of keeping a small cash fund on hand with which to clean out the public drains of this state, the county judge, county clerk, and sheriff of each county of this state wherein are located any public drains shall be and compose a board, of which the county judge shall be president and the county clerk shall be secretary, whose duty it shall be to ascertain the amount necessary to keep each public drain in their respective counties clean for the next ensuing year and certify the amount to the several quorum courts of the counties at the regular sessions of the courts for the levying of other taxes. It shall then be the duty of the levying court to levy the amount so certified as other taxes are levied, which amount so levied shall be by the county clerk extended as taxes against the lands assessed for the construction of each public drain in the same proportion as the land was originally assessed for the construction of the ditch, and when extended the amount shall be a lien upon the land. The land shall be subject to sale for the nonpayment of the incidental ditch tax and be sold in default of the payment of the tax as in cases of other delinquent taxes.

History. Acts 1907, No. 314, § 1, p. 746; C. & M. Dig., § 3657; Pope's Dig., § 4508; A.S.A. 1947, § 21-401.

14-121-902. Treasurers to keep separate account with drainage district.

The county treasurers of this state shall keep upon their books a separate account with each public drainage district of their county, and no money collected under the provisions of § 14-121-901 shall be paid out only for the purpose of keeping clean the particular public ditch for which it was collected.

History. Acts 1907, No. 314, § 2, p. 746; C. & M. Dig., § 3658; Pope's Dig., § 4509; A.S.A. 1947, § 21-402.

14-121-903. Unpaid amounts considered in making estimate — Extension of overdue amounts.

  1. Whenever there shall remain due and unpaid at the date of the passage of this act any amounts for labor performed in cleaning out any of the public drains of this state, it shall be the duty of the board provided for in this act to take these amounts into consideration in making their estimates of the expenses of keeping the drains clean for the ensuing year. These amounts shall be paid out of the money arising from the amount certified by the board and collected as provided in § 14-121-901.
  2. Where fees have already been paid by the owner of any particular tract of land subject to the tax, no further amount shall be assessed against the land. The amount provided for in this section shall only be extended against the land as has not already been paid on. The county clerk, in extending the overdue amount, shall only extend the amount against the land as has not been previously paid, which amount shall be in addition to the land's share of the necessary amount to keep the drain clean for the ensuing year.

History. Acts 1907, No. 314, § 4, p. 746; C. & M. Dig., § 3660; Pope's Dig., § 4511; A.S.A. 1947, § 21-404.

Publisher's Notes. In reference to the term “passage of this act,” Acts 1907, No. 314, was signed by the Governor and became effective on May 13, 1907.

Subchapter 10 — Dissolution or Abolition of Districts

Effective Dates. Acts 1927, No. 59, § 4: approved Feb. 24, 1927. Emergency clause provided: “And it appearing that a number of drainage districts in the State of Arkansas have issued bonds to pay the costs of preliminary expenses, and that such districts are likely to be forced into liquidation and dissolution unless immediate legislative relief is granted, thereby preventing the making of improvements essential to the public health, an emergency is hereby declared to exist, and it is declared that this act is necessary for the immediate preservation of the public health, and that the same shall take effect and be in force from and after its passage.”

Acts 1955, No. 116, § 11: Mar. 1, 1955. Emergency clause provided: “It being ascertained that under the present drainage laws of the State of Arkansas, landowners in a district have no power, without action of the commissioners, to dissolve or abolish a drainage district previously created and there being no efficient means for determining or paying the legitimate obligations of a drainage district sought to be dissolved or abolished in advance of the actual dissolution thereof, and this act therefore, being necessary for the immediate preservation of the public peace, health and safety, an emergency is hereby declared to exist and this act shall be in force immediately after its passage and approval.”

Acts 1999, No. 1321, § 5: Apr. 12, 1999. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly that current law provides no way for drainage districts to be abolished and funds returned to landowners within the district when districts are no longer beneficial to landowners within the district. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

14-121-1001. Applicability.

The provisions of this act shall be applicable to any drainage district of this state which shall meet all the following requirements:

  1. The district shall have been created either by order of the county court or the circuit court on appeal;
  2. All lands within the district shall be within a single county;
  3. No assessment of benefits shall have been confirmed by the county court or the circuit court on appeal;
  4. No bonds shall have been issued by the districts secured by a valid pledge of any assessments, benefits, or betterments;
  5. The district shall have been created without petitions in favor thereof having been filed, signed by a majority either in numbers, in acreage, or in value of the holders of real property within the district.

History. Acts 1955, No. 116, § 1; A.S.A. 1947, § 21-561.1.

Meaning of “this act”. Acts 1955, No. 116, codified as §§ 14-121-100114-121-1008.

14-121-1002. Filing petition.

The board of commissioners of any drainage district subject to the provisions of this act and meeting the requirements of § 14-121-1001, or not less than a majority of the property owners in the district determined either in number, in acreage, or in value of the lands of the district, when they deem it inadvisable or impractical and not for the best interest of the property owners of the district to construct the improvements contemplated by the organization of the district, may file a petition in the county court wherein the original petition to create the district was filed praying the court to abolish or dissolve the district. In the petition, the commissioners or landowners filing the petition shall set up their reasons why they are of the opinion the district should be abolished or dissolved.

History. Acts 1955, No. 116, § 2; A.S.A. 1947, § 21-561.2.

Meaning of “this act”. See note to § 14-121-1001.

14-121-1003. Notice and hearing.

  1. Upon the filing of the petition the court shall direct the clerk of the court to give notice by publication in some newspaper in the county in which the property in the district lies for not less than two (2) consecutive weekly publications, which notice shall set out the purpose of the petition and the day set for the hearing thereon. The court shall fix a day for the hearing of the petition and shall hear the evidence thereon, and if it is of the opinion that it is for the best interests of the property owners of the district that the petition be granted, it shall abolish or dissolve the district, but if it is of the opinion that it is for the best interest of the property owners that the organization of the district be continued, then it shall overrule the petition.
  2. The overruling of one petition for the abandonment of a district or a determination of the court in that hearing that the petition is not signed by the requisite number of landowners shall not be a bar to the filing of another petition for that purpose.

History. Acts 1955, No. 116, § 3; A.S.A. 1947, § 21-561.3.

14-121-1004. Contracts during pendency of petition.

During the pendency of the petition and prior to the hearing on it, the county court may, in its discretion and by its order, prohibit the commissioners of the district subject to the term of this act at the time of the filing of the petition from the making of contracts, the pledging of assessments or betterments, the incurring of new indebtedness or the issuance of bonds or other obligations of the district.

History. Acts 1955, No. 116, § 4; A.S.A. 1947, § 21-561.4.

Meaning of “this act”. See note to § 14-121-1001.

14-121-1005. Valid indebtedness unimpaired.

No dissolution of a district under the terms of this act shall impair or deny any creditor of the district the right to the collection of its bona fide and valid indebtedness existing against the district, but the creditors of the district shall be subject to the provisions of this act in connection with the presentation, allowance, or other adjudication with reference to their claim.

History. Acts 1955, No. 116, § 5; A.S.A. 1947, § 21-561.5.

Meaning of “this act”. See note to § 14-121-1001.

14-121-1006. Claims against district.

  1. All claims against the district existing at the time the county court shall make an order for the dissolution of the district must be presented to the commissioners duly itemized and verified as is required in actions of account. If not presented to the commissioners of the district within six (6) months from the date of the county court order of dissolution, claims shall forever be barred.
  2. Within ten (10) days from the allowance or disallowance of any claim presented to the commissioners, the claim shall be filed by the commissioners in the county court with an endorsement thereon as their allowance or disallowance of the same, and within thirty (30) days from the filing of the claim or account in the county court, the county court shall make its order either approving, rejecting, or modifying the actions of the commissioners with reference to any such indebtedness. Within the time allowed by law for appeal from orders of the county court, either the district or any landowner therein or any party claiming to be a creditor of the district may either appeal from the order of the county court to the circuit court or any creditor may institute an action against the district in any court of competent jurisdiction for the determination of the determination of the existence and amount of his claim.

History. Acts 1955, No. 116, § 6; A.S.A. 1947, § 21-561.6.

14-121-1007. Partial continuance.

  1. All drainage districts which are dissolved or abolished pursuant to the terms of this act shall nevertheless be continued in existence for the purpose of prosecuting and defending suits by or against the district and for the purpose of enabling the district to settle, close its business, to dispose of and convey its property, to levy, receive, and distribute taxes which are levied or collected for the purpose of meeting the obligations of the district, but not for the purpose of constructing the improvements for which the district shall have been established or for the purpose of creating any new indebtedness therefor other than indebtedness incident to the liquidation and settlement of the affairs of the district.
  2. Notwithstanding the order of dissolution, commissioners may be appointed or removed in the same manner as if the order of dissolution had not been made.

History. Acts 1955, No. 116, § 7; A.S.A. 1947, § 21-561.7.

Meaning of “this act”. See note to § 14-121-1001.

14-121-1008. Indebtedness of dissolved districts — Levy and collection of tax.

  1. When the indebtedness owing by a district dissolved under the provisions of this act shall have been determined, it shall be the duty of the commissioners to certify to the county court their determination as to a tax levy upon the real property of the district which is sufficient to pay the indebtedness thereof, including the reasonable expenses of dissolution and settlement of the affairs of the district, which expenses shall be subject to the approval, modification, or rejection by the county court. Upon ascertainment by the county court that the levy is required for the purpose of this act, the county court shall approve the levy by its order and certify the amount of the levy to the quorum court of the county in which the district is located.
  2. The levy shall be upon the assessed value of the real property in the district for the state and county taxation as it appears upon the county assessment records.
  3. The taxes shall be collected and delinquencies shall be enforced in the same manner as if the district had continued in existence for the purpose of making the improvements contemplated by its original organization.

History. Acts 1955, No. 116, §§ 8, 9; A.S.A. 1947, §§ 21-561.8, 21-561.9.

Meaning of “this act”. See note to § 14-121-1001.

14-121-1009. Procedure when construction of improvement abandoned and all indebtedness paid.

  1. The board of commissioners of any drainage district in this state, when they may deem it inadvisable or impracticable and not for the best interests of the property owners of the district to construct the improvements contemplated by the organization of the district, may, when all indebtedness of the district has been fully paid, file a petition in the court in which the district was organized praying the court to abolish the district. In the petition the commissioners shall set up the reasons why they are of the opinion the district should be abolished.
    1. Upon the filing of the petition, the court shall direct the clerk to give notice by publication in some newspaper in the county or counties in which the property in the district lies, for not less than two (2) consecutive weekly publications.
    2. The notice shall set out the purpose of the petition and the day set for the hearing thereof.
  2. The court shall fix a day for the hearing of the petition and shall hear the evidence thereon.
    1. If the court is of the opinion that it is for the best interests of the property owners of the district that the petition be granted, it shall abolish the district.
    2. If the court is of the opinion that it is for the best interests of the property owners that the organization of the district be continued, then it shall overrule the petition.
  3. The overruling of one petition for the abandonment of a district shall not be a bar to the filing of another petition for that purpose.

History. Acts 1927, No. 59, § 3; Pope's Dig., § 4523; A.S.A. 1947, § 21-561.

Case Notes

Abandonment.

Drainage district had no right to require landowners to move buildings from old levee, when the district constructed a new levee under a new right-of-way deed, as old levee was abandoned by action of district in destroying old levee, and district had knowledge for several years that landowners were constructing buildings upon the old levee. Drainage Dist. of Mississippi County v. Holly, 213 Ark. 889, 214 S.W.2d 224 (1948).

Petition by Commissioners.

As the statutes do not authorize the county court to dissolve a drainage district after it has been organized, it cannot exercise that authority. Wilson v. Mattix, 149 Ark. 23, 231 S.W. 197 (1921) (decision under prior law).

County court has no authority on application by landowner to dissolve a drainage district after it has been organized. Roberts v. Baucum Drainage Dist., 198 Ark. 964, 132 S.W.2d 184 (1939).

14-121-1010. Procedures when improvements are abandoned, no maintenance assurances are given, and all indebtedness is paid.

    1. The board of commissioners of any drainage district in this state, when they may deem it inadvisable or impracticable and not for the best interests of the property owners of the district for the district to continue in operation, when all indebtedness of the district has been fully paid and if no assurance of continued operation and maintenance has been given to the United States or the state, may file a petition in the court in which the district was organized praying the court to abolish the district.
      1. In the petition the commissioners shall set out the reasons why they are of the opinion that the district should be abolished.
      2. In addition, the petition shall contain a current financial statement of the district and a plan of distribution of any money held by the district consistent with the district's prior assessment of benefits.
    1. Upon the filing of the petition, the court shall direct the clerk to give notice by publication in some newspaper in the county or counties in which the property in the district lies for not less than two (2) consecutive weekly publications.
    2. The notice shall set out the purpose of the petition, the plan of distribution, and the day set for the hearing on the petition.
  1. The court shall fix a day for the hearing of the petition and shall hear the evidence on the petition.
    1. If the court is of the opinion that it is in the best interests of the property owners of the district that the petition be granted, it shall by order approve the plan of distribution and, upon proper distribution of funds, abolish the district.
    2. If the court is of the opinion that it is in the best interests of the property owners that the organization of the district be continued, then it shall overrule the petition.
  2. The overruling of one (1) petition for the abandonment of a district shall not be a bar to the filing of another petition for that purpose.

History. Acts 1999, No. 1321, § 1.

Subchapter 11 — Drainage Districts

14-121-1101. Legislative determination.

It is found and declared as a matter of legislative determination that the organization and administration of those drainage districts authorized under this chapter, as amended, as separate and distinct entities and the operation and maintenance of the drainage levees and projects for which the districts were originally created places an undue burden on the districts, causes an unnecessary duplication of work, and increases the cost of construction, operation, and maintenance of the districts and their facilities. Further, the organization and administration of those drainage districts authorized under this chapter, as amended, as separate and distinct entities and the operation and maintenance of the drainage levees and projects for which the districts were originally created can be greatly benefited by the merger of drainage districts with other similar drainage districts, levees, and drainage projects, and merger will create economies of scale to achieve a significant savings in administrative and operational costs.

History. Acts 1999, No. 329, § 1.

14-121-1102. Definitions.

As used in this subchapter:

  1. In cases where the drainage district contains lands in more than one (1) county, “county court”, “county judge”, and “county clerk” shall be construed to mean “circuit court”, “circuit judge”, and “circuit clerk”, respectively, of the judicial circuit containing the majority in assessed value of the lands of the merged district; and
  2. “Drainage district” includes any drainage district organized under Acts 1909, No. 279, codified as §§ 14-121-101, 14-121-102, 14-121-104, 14-121-105, 14-121-201 — 14-121-205, 14-121-207, 14-121-301, 14-121-304, 14-121-305, 14-121-307, 14-121-310, 14-121-311, 14-121-313, 14-121-401 — 14-121-406, 14-121-408, 14-121-411, 14-121-412, 14-121-422 — 14-121-432, 14-121-440 — 14-121-442, 14-121-802 — 14-121-805, and 14-121-808 and any drainage district organized under other acts which have been reorganized under Acts 1909, No. 279, as provided for by § 14-121-207.

History. Acts 1999, No. 329, § 1.

14-121-1103. Subchapter cumulative.

This subchapter shall be construed to be cumulative to existing laws relating to drainage districts and shall not repeal any existing law unless the law is in direct conflict with this subchapter. It is the purpose of this subchapter to permit the merger by one (1) or more drainage districts of the duties, obligations, and purposes for which the districts were originally created under the provisions of this chapter and amendments thereto.

History. Acts 1999, No. 329, § 1.

14-121-1104. Authority to merge.

  1. Any drainage district may merge all its required duties, obligations, and purposes whereby it carries out drainage projects with the duties, obligations, and purposes required of any other drainage district if it follows the terms and procedures of this subchapter in order to merge with the other drainage district.
  2. In order to effect the merger, the drainage district may:
    1. Combine into one (1) operation the organization and administration of the drainage districts and the operation and maintenance of the drainage levees and projects for which the districts were originally created;
    2. Levy and collect one (1) assessment for construction, operation, and maintenance of any and all operations and projects coming under the management and control of various districts prior to the merger and operations commenced by the district subsequent to merger;
    3. Use the funds arising from the assessments so levied for the payment of any obligation incurred in the construction, operation, or maintenance of any operation or project merged; and
    4. Cause an assessment of benefits to be made of the benefits arising from the merged construction, operation, and maintenance for which the districts were originally created and for those arising from the merged district.

History. Acts 1999, No. 329, § 1.

14-121-1105. Merger procedure.

  1. No drainage district coming within the provisions of this subchapter shall exercise any of its powers conferred by this subchapter or merge the operation and maintenance of a levee or project for which the district was originally created with those of another drainage district's operations or maintenance until:
    1. The board of directors of each merging district shall have determined by a proper resolution, adopted by two-thirds (2/3) of the members of the board of directors of the district, that the merger would be in the best interest of the district and of the landowners; and
    2. A special meeting of the landowners and bondholders of the district shall have been held at which the question of merger shall have been presented and for the purpose of hearing support for or objections to the merger.
  2. Notice of the hearing shall be given by the secretary of the district by publication of a notice for at least two (2) consecutive weekly insertions in a newspaper published and having a bona fide circulation in each county within the district. This notice shall state:
    1. The time and place at which the board of directors shall meet for the purpose of hearing support for or objections to the merger;
    2. That the meeting shall be open to the public; and
    3. That at such meeting any landowner or bondholder of the district may offer support for or objection to the action of the board in adopting the resolution.
    1. At the time and place specified in the notice, the board of directors shall meet at the office of the district for the purpose of the hearing.
    2. The district shall furnish a stenographer who shall take and transcribe all the testimony introduced before the board.
    3. The board shall keep a true and perfect record of its proceedings at the meeting, which shall be filed as a public record in the office of the district.
    4. A copy of the record certified by the secretary of the district shall be competent evidence in all courts of this state.
    5. After consideration of all comments in support of or in objection to the merger, if any, the board of directors, by proper resolution duly adopted by two-thirds (2/3) of the members of the board of directors, shall declare its decision regarding the merger of the district.
    6. Any landowner or bondholder aggrieved by the decision of the board may have the findings reviewed by the circuit court of the county in which the district has its domicile.
    7. The appeal shall be perfected in thirty (30) days.
    8. The review shall be heard by the court on the evidence introduced before the board of directors at the meeting aforesaid, and no additional or different evidence shall be admissible.
    9. Appeals to the Supreme Court from the decision of the circuit court shall be perfected in thirty (30) days.

History. Acts 1999, No. 329, § 1.

14-121-1106. Board of directors for merged districts.

  1. Upon the merger's becoming effective, the new board of directors of the merged drainage district shall consist of one (1) member from each of the merging districts' boards of directors to be selected by each board and named in its resolution of merger, but in no event shall a new board of directors consist of less than three (3) members. In the event only two (2) districts have merged, the merging district with the majority of the value of real property within the merged district shall be entitled to name two (2) members to the board.
  2. Each of these members of the board shall take the oath of office required by Arkansas Constitution, Article 19, § 20, and shall also swear that he or she will not directly or indirectly be interested in any contract made by the board and that he or she will well and truly assess all benefits resulting from the improvement and all damages caused thereby.
  3. Any member failing to take the oath within thirty (30) days after his or her appointment shall be deemed to have declined, and his or her place shall be filled by the county judge.
  4. All vacancies on the board shall be filled by the county judge, but if a majority in value of the owners of real property in the merged district shall petition for the appointment of particular persons as members of the board, it shall be the duty of the county judge to appoint the persons so designated.
  5. The county judge shall remove any member of the board on the petition of a majority in value of the owners of real property in the district. He or she may remove any member and appoint his or her successor upon proof of incompetency or neglect of duty, but the charges shall be in writing, and the charged member shall have the right to be heard in his or her defense and to appeal to the circuit court.
  6. The board of directors provided for in this subchapter shall receive as compensation the sum of twenty-five dollars ($25.00) each day for attending meetings of the board, together with their necessary expenses.
  7. Actions by the board of directors of any merged district affected by this section shall be by a majority vote of the membership of the board.

History. Acts 1999, No. 329, § 1.

14-121-1107. Powers of board of directors.

  1. In order to discharge the obligations for which the district was originally created and those which it assumed under the terms of this subchapter, the board of directors of any merged drainage district under this subchapter is authorized and empowered:
    1. To exercise any and all the powers and duties of boards of directors of drainage districts as found under § 14-121-301 et seq., including, but not limited to, the authority to:
      1. Improve or extend district boundaries;
      2. Borrow money and issue bonds;
      3. Secure federal aid for surveys of drainage projects;
      4. Cooperate with the United States on drainage projects; and
      5. Employ attorneys for the district;
    2. To carry on district operations as found under § 14-121-401 et seq., including, but not limited to:
      1. Formulating plans for improvements;
      2. Making assessments of benefits and damages within the district;
      3. Reassessing benefits;
      4. Taking appeals;
      5. Altering plans for improvements;
      6. Collecting taxes; and
      7. Issuing bonds;
    3. To exercise any and all of the functions of other drainage districts under authority of § 14-121-501 et seq., § 14-121-601 et seq., § 14-121-701 et seq., § 14-121-801 et seq., § 14-121-901 et seq., and § 14-121-1001 et seq.;
    4. To enter upon, take, and hold any lands, or interests or servitudes therein, whether by purchase, grant, donation, devise, or otherwise that may be deemed necessary and proper for the location, construction, operation, repair, or maintenance of any levee, levee foundation, channel rectification, floodway, reservoir, spillway, diversion, drainage canal, or other drainage works contemplated to be constructed and thereafter to be perpetually operated and maintained by the district;
    5. To take, hold, and acquire flowage and storage rights and servitudes upon, over, and across any land which may be necessary and incident to the construction, operation, repair, and maintenance of any necessary levee, levee foundation, channel rectification, floodway, reservoir, spillway, diversion, drainage canal, or other drainage works; and
      1. To perform maintenance services on its merged drainage system for the purposes of:
        1. Preserving the system;
        2. Keeping the ditches clear from obstruction; and
        3. Extending, widening, or deepening the ditches from time to time as may be found advantageous to the merged district.
      2. To this end, the board of directors, from time to time, may levy a uniform maintenance service charge on all lands and landowners in the merged district at a flat rate per acre for the maintenance services.
    1. In order that the rights, easements, and servitudes conferred may be acquired, the board of directors of the district is given authority and power to condemn lands or interests therein for such purposes and the authority and power to exercise rights of eminent domain.
    2. Condemnation proceedings therefor shall be instituted and conducted in the manner as is now provided in §§ 18-15-1001 — 18-15-1010 and provided further damages shall be paid for any easement or flowage right or increased use or servitude on any lands by reason of increasing the amount or depth of water on those lands regardless of whether the lands are protected or unprotected by levees, and those damages shall be in addition to damages set out in §§ 18-15-1001 — 18-15-1010. Any action for taking of property or damaging property as provided in this subchapter or in §§ 18-15-1001 — 18-15-1010 shall be commenced within five (5) years from the time the cause of action accrues.

History. Acts 1999, No. 329, § 1.

14-121-1108. Merger and use of assets — Prior liabilities and obligations.

  1. Any drainage district which shall merge the duties, obligations, and purposes for which it was originally created with those of another district under the provisions of this subchapter shall merge all assets held by it and arising from any projects and shall also assume all liabilities of the district whether created for purposes for which the district was originally created or those assumed by it under the provisions of this subchapter.
    1. The assets may be used by the merged district for any and all purposes now or hereafter authorized by law, and the liabilities of the merged district may be paid with funds arising from any source.
    2. However, if at the time of the merger, a merging drainage district has remaining cash balances which were dedicated to specific projects that remain uncompleted at the time of the merger, then those balances shall be spent only on the specific uncompleted projects, or if the district has made assessments which were dedicated for the construction of a specific project or improvement, then those assessments shall be used only on the specific projects within the boundaries of the former drainage district from which the assessments were made.
  2. All the provisions, rights, securities, pledges, covenants, and limitations contained in the instrument creating the liability shall not be affected by the merger but shall apply with the same force and effect as provided in the original creation of the liability.
  3. All bonds or notes heretofore issued by the drainage district shall not be affected by this merger, but they shall bear the same rate of interest as now provided and shall be due and payable at the time and place provided in the original issue of the bonds or notes.

History. Acts 1999, No. 329, § 1.

14-121-1109. Valid indebtedness unimpaired.

No merger of a district under the terms of this subchapter shall impair or deny any creditor of the merging districts the right to the collection of its bona fide and valid indebtedness existing against the districts, but the creditors of the districts shall be subject to the provisions of this subchapter in connection with the presentation, allowance, or other adjudication with reference to their claim.

History. Acts 1999, No. 329, § 1.

14-121-1110. Claims against district.

  1. All claims against the district existing at the time of the merger of the district shall be presented to the board of directors duly itemized and verified as is required in actions of account. If not presented to the board of directors of the district within six (6) months from the date of the effectiveness of the merger, the claims shall forever be barred.
    1. Within ten (10) days from the allowance or disallowance of any claim presented, the claim shall be filed by the board in the county court with an endorsement thereon as their allowance or disallowance of the same, and within thirty (30) days from the filing of the claim or account in the county court, the county court shall make its order either approving, rejecting, or modifying the actions of the board with reference to any such indebtedness.
    2. Within the time allowed by law for appeal from orders of the county court, either the district, any landowner in the district, or any party claiming to be a creditor of the district may either appeal from the order of the county court to the circuit court or may institute an action against the district in any court of competent jurisdiction for the determination of the existence and amount of the claim.

History. Acts 1999, No. 329, § 1.

14-121-420. Payment of assessments in drainage districts — Interest.

14-121-440. Bonds — Prohibitions.

Chapter 122 Municipal Drainage Improvement Districts

Publisher's Notes. As to applicability of certain laws to municipal improvement districts existing prior to 1949, see § 14-90-102.

As to the applicability of certain laws to municipal improvement districts existing prior to July 1, 1952, see § 14-90-103.

Research References

U. Ark. Little Rock L.J.

Goldner, A Call for Reform of Arkansas Municipal Law, 15 U. Ark. Little Rock L.J. 175.

Looney, Diffused Surface Water in Arkansas: Is It Time for a New Rule?, 18 U. Ark. Little Rock L.J. 3.

Subchapter 1 — General Provisions

Effective Dates. Acts 1975, No. 746, § 18: Apr. 3, 1975. Emergency clause provided: “It is hereby found and determined by the General Assembly that some cities in the State having population in excess of 50,000 persons and particularly those situated on large streams in the State, have a serious drainage problem; that it is essential to the health and welfare of the citizens of such cities that appropriate drainage facilities be constructed and maintained; that this Act is designed to establish a procedure whereby such cities may create drainage improvement districts for constructing and maintaining such essential drainage facilities and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1989, No. 526, § 5: Mar. 14, 1989. Emergency clause provided: “It is hereby found and determined by the General Assembly that many cities in the state have serious drainage problems; that it is essential to the health and welfare of the citizens of those cities that appropriate drainage facilities be constructed and maintained; that this act is designed to establish a procedure whereby all cities may create drainage improvement districts for constructing and maintaining such essential drainage facilities and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 2009, No. 1480, § 117: Apr. 10, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act makes various revisions to Arkansas election laws that are designed to improve the administration of elections and special elections and that these revisions should be implemented as soon as possible so that the citizens of this state may benefit from improved election procedures. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

14-122-101. Chapter cumulative.

This chapter shall be construed to be cumulative of existing laws relating to the creation, operation, and existence of municipal improvement districts and shall not repeal any existing law unless that law is in direct conflict herewith, it being the intent of this chapter to provide additional authority to municipalities for creation of improvement districts and to authorize and enumerate additional powers for those districts.

History. Acts 1975, No. 746, § 16; A.S.A. 1947, § 20-1816.

14-122-102. Creation of drainage improvement districts by certain cities.

Any city of the first class in this state having a mayor-council form of government, may, by ordinance of the governing body, create a drainage improvement district in that city encompassing all or any part of the territory within the limits of the city.

History. Acts 1975, No. 746, § 1; A.S.A. 1947, § 20-1801; Acts 1989, No. 526, § 1.

14-122-103. Publication of notice of adoption of ordinance.

When the governing body of any city enacts an ordinance pursuant to the authority granted herein, creating a drainage improvement district encompassing all or any part of the territory within the limits of the city, the governing body shall cause a notice of the adoption of the ordinance and a complete copy of the ordinance enacted to be published in a newspaper of general circulation in the district within seven (7) days after the enactment thereof.

History. Acts 1975, No. 746, § 2; A.S.A. 1947, § 20-1802.

14-122-104. Filing referendum petitions — Special election.

If petitions signed by not less than fifteen percent (15%) of the qualified electors voting on the office of mayor in the city at the last preceding general election are filed with the city clerk of the city within forty-five (45) days after the enactment of the ordinance creating the municipal drainage improvement district requesting that the ordinance be referred to a vote of the qualified electors of the district, the petitions shall be referred to the people at a special election to be called by the mayor of the municipality in accordance with § 7-11-201 et seq. to be held not more than ninety (90) days after the proclamation.

History. Acts 1975, No. 746, § 3; A.S.A. 1947, § 20-1803; Acts 2005, No. 2145, § 44; 2007, No. 1049, § 65; 2009, No. 1480, § 84.

Amendments. The 2005 amendment inserted the subsection (a) designation; substituted “thirty (30)” for “forty-five (45)” in present (a); and added (b).

The 2009 amendment substituted “§ 7-11-201 et seq.” for “§ 7-5-103(b).”

14-122-105. Establishment of drainage improvement district — Conditions.

If referendum petitions are not filed within the time prescribed herein or if such petitions are filed and the electors voting at the special election held thereon do not reject the ordinance, the governing body of the municipality shall proceed to establish the drainage improvement district proposed in the ordinance in the manner and for the purposes provided in this chapter.

History. Acts 1975, No. 746, § 4; A.S.A. 1947, § 20-1804.

14-122-106. District board of commissioners — Members.

  1. The board of commissioners for the district, consisting of five (5) owners of real property in the district or officers or stockholders of a corporation owning real property within the district shall be appointed as follows:
    1. Four (4) commissioners shall be appointed by the governing body of the city, and if the district includes all territory within the corporate limits of the city no more than one (1) member of the board shall be appointed from each of the wards in the city;
    2. One (1) commissioner shall be appointed by the mayor of the city from the district at large.
  2. Any vacancy occurring on the board shall be filled in the same manner herein prescribed for the initial appointments.
  3. The members of the board shall receive no compensation for their services but may be reimbursed for their actual expenses incurred in the performance of their duties.
  4. The governing body of the city shall have the authority to remove any member of the board by a two-thirds (2/3) vote of the membership of the governing body for cause, after a hearing thereon at which the board member proposed to be removed and all other interested parties shall be given an opportunity to be heard.

History. Acts 1975, No. 746, § 5; A.S.A. 1947, § 20-1805.

14-122-107. Board meeting and organization — Formulation and filing of plans.

The board shall meet as soon as is practicable after appointment and qualification of its members, shall elect a chairman, a secretary, and such other officials as it deems necessary to carry out its responsibilities, and shall form plans for the improvement of drainage facilities in the district and obtain estimates of the cost thereof. The plan formed by the board shall be filed in the office of the city clerk.

History. Acts 1975, No. 746, § 6; A.S.A. 1947, § 20-1806.

14-122-108. Employment of personnel — Payment of costs if improvement not made.

  1. In the preparation of the plan of improvement, the district is authorized to employ architects and engineers to prepare plans, specifications, and estimates of cost for the construction of the improvements and to supervise and inspect the construction.
  2. In addition, the district is authorized to engage and pay attorneys, accountants, and consultants and to obtain and pay for the other professional and technical services as it shall determine to be necessary or desirable in assisting it to effectively carry out the functions, powers, and duties conferred and imposed upon it to accomplish and maintain the proposed improvement.
  3. The district is further authorized to employ on a full-time basis persons necessary to maintain, operate, supervise, repair, administer, or otherwise render assistance in the effecting of the plan and its continued benefit.
  4. All expenditures hereunder shall be taken as a cost of the improvement.
  5. If for any cause the improvement shall not be made, the cost shall be a charge upon the real property in the district and shall be raised and paid by an assessment upon the real property in the district as assessed for state and county purposes, which shall be levied by the governing body on the application of any person interested, and shall be paid to the district to be distributed amongst the creditors of the district.
  6. When any improvement is abandoned, it is made the duty of the board to report to the governing body the total amount of the debts which it has incurred, to the end that the governing body may make adequate provision for their payment.

History. Acts 1975, No. 746, § 7; A.S.A. 1947, § 20-1807.

14-122-109. Powers of district to execute plans.

  1. The district shall have all powers necessary or desirable to undertake and carry out any and all parts of the plan for constructing, reconstructing, expanding, improving, or otherwise providing appropriate drainage facilities in the district, and to employ persons as it deems necessary to accomplish the purposes of the plan, including the authority to issue bonds as hereinafter provided except as otherwise provided in this chapter, Acts 1881, No. 84, and Acts 1899, No. 183, and all other laws of the State of Arkansas pertaining to municipal improvement districts, in general, as they have been and may be from time to time amended.
  2. This chapter shall be applicable to a drainage improvement district established hereunder, and shall govern the procedures for the operation of a district's affairs including without limitation, the giving of any notice, appointment of assessors, making and filing of assessments of benefits or reassessments of benefits, annexation of additional territory to a district, collection of assessments, enforcement of delinquent assessments, and all other matters relating to the internal operation of a district.

History. Acts 1975, No. 746, § 8; A.S.A. 1947, § 20-1808.

Publisher's Notes. Acts 1881, No. 84, is codified as §§ 14-88-101, 14-88-202, 14-88-204, 14-88-302, 14-88-303, 14-88-30514-88-308, 14-88-311, 14-88-403, 14-88-502, 14-89-201, 14-89-1001, 14-89-1002, 14-90-101, 14-90-201, 14-90-302, 14-90-403, 14-90-701, 14-90-80114-90-805, 14-90-902, 14-90-903, 14-90-916, 14-90-100114-90-1003, 14-90-1005, 14-90-1006, 14-90-110114-90-1106, 14-90-1108, 14-90-120114-90-1204, 14-90-1302, 14-90-1303, 14-91-101, 14-91-10414-91-107, 14-91-201, and 14-235-30114-235-305.

Acts 1899, No. 183, also referred to in this section, is codified as §§ 14-90-20114-90-203, 14-90-401, 14-90-402, 14-90-501, 14-90-502, 14-90-601, 14-90-603, and 14-90-80114-90-805.

14-122-110. Powers of municipality.

The governing body of any municipality in which a drainage improvement district is created as authorized in this chapter shall have all the powers necessary or desirable to undertake and carry out, or to assist a district to undertake and carry out, all improvements described in the drainage improvement plan of the district.

History. Acts 1975, No. 746, § 9; A.S.A. 1947, § 20-1809.

14-122-111. Eminent domain.

  1. The right and power of eminent domain is conferred upon a district to enter upon, take, and condemn private property for the construction of improvements described in the plan of improvement, and the right and power of eminent domain conferred shall be exercised by the district in accordance with the procedures in §§ 18-15-301 — 18-15-307, as amended.
  2. The right and power conferred shall include without limitation the right and power to enter upon lands and proceed with the work of construction prior to the assessment and payment of damages and compensation upon posting a deposit by the district in accordance with the procedure described in §§ 18-15-301 — 18-15-303, as amended.
  3. The rights and powers granted in this section shall apply outside the boundaries of the municipality if the board of commissioners determines in writing that the exercise of the powers is necessary to accomplish the plan of improvement.
  4. The rights and powers granted in this section shall not apply outside the boundaries of the county in which the municipality is located nor shall the rights and powers apply within the boundaries of another municipality within the county.

History. Acts 1975, No. 746, § 10; A.S.A. 1947, § 20-1810; Acts 1989, No. 526, § 2.

14-122-112. Dissolution of districts.

A district created under this chapter shall continue in existence in perpetuity unless dissolved by ordinance of the governing body of the city. However, no district shall be dissolved at any time during which there shall be outstanding bonded indebtedness of the district unless funds sufficient to retire the indebtedness, including all interest, redemption premiums, if any, trustee's and paying agent's fees, and cost of publication of notice of redemption, shall have been deposited in trust according to the terms of the resolution or trust indenture authorizing the bonded indebtedness.

History. Acts 1975, No. 746, § 15; A.S.A. 1947, § 20-1815.

Subchapter 2 — District Financing

Effective Dates. Acts 1975, No. 746, § 18: Apr. 3, 1975. Emergency clause provided: “It is hereby found and determined by the General Assembly that some cities in the State having population in excess of 50,000 persons and particularly those situated on large streams in the State, have a serious drainage problem; that it is essential to the health and welfare of the citizens of such cities that appropriate drainage facilities be constructed and maintained; that this Act is designed to establish a procedure whereby such cities may create drainage improvement districts for constructing and maintaining such essential drainage facilities and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1981, No. 425, § 54: Mar. 11, 1981. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

14-122-201. Authority to borrow money and issue bonds or certificates — Security.

  1. For the purpose of providing funds to pay preliminary expenses, to construct improvements according to the plan, or to pay for an improvement already completed, the district may borrow money in an amount not exceeding the estimated cost thereof, including interest on the money borrowed to a date six (6) months subsequent to the estimated date of completion of the work and a reserve not to exceed one (1) year's principal and interest requirements, and may to that extent issue negotiable bonds or certificates of indebtedness.
  2. In order to secure the bonds, the district may pledge and mortgage all uncollected assessments of benefits for the payments of the bonds, and, in addition thereto, the municipality in which the district is created may pledge surplus utility revenues of the city to secure the bonds of the district.
  3. The bonds of the district shall be authorized and issued upon a majority vote of the qualified electors of the municipality.

History. Acts 1975, No. 746, § 11; 1981, No. 425, § 32; A.S.A. 1947, § 20-1811.

14-122-202. Nature of bonds.

  1. The bonds may be coupon bonds, payable to bearer, or may be registrable as to principal only or as to principal and interest, and may be made exchangeable for bonds of another denomination, may be in such form and denomination, may have such date or dates, may be stated to mature at such times, may bear interest payable at such times and at such rate or rates, may be payable at such places within or without the State of Arkansas, may be made subject to such terms of redemption in advance of maturity at such prices, and may contain such terms and conditions, all as the board shall determine.
  2. The bonds shall have all the qualities of negotiable instruments under the laws of the State of Arkansas, subject to provisions as to registration as set forth in this section.

History. Acts 1975, No. 746, § 11; 1981, No. 425, § 32; A.S.A. 1947, § 20-1811.

14-122-203. Authorizing resolution.

The authorizing resolution may contain any of the terms, covenants, and conditions that are deemed desirable by the board including, without limitation, those pertaining to:

  1. The maintenance of various funds and reserves;
  2. The nature and extent of the security;
  3. The issuance of additional bonds and the nature of the lien and pledge, parity or priority, in that event;
  4. The custody and application of the proceeds of the bonds;
  5. The collection and disposition of revenues;
  6. The investing and reinvesting in securities specified by the board of any moneys during the periods not needed for authorized purposes; and
  7. The rights, duties, and obligations of the district, the board, and of the holders and of the registered owners of the bonds.

History. Acts 1975, No. 746, § 11; 1981, No. 425, § 32; A.S.A. 1947, § 20-1811.

14-122-204. Trust indenture.

  1. The authorizing resolution may provide for the execution by the district with a bank or trust company within or without the State of Arkansas of a trust indenture.
  2. The trust indenture may contain any terms, covenants, and conditions that are deemed desirable by the board including, without limitation, those pertaining to the maintenance of various funds and reserves, the nature and extent of the security, the issuance of additional bonds, and the nature of the lien and pledge, parity or priority, in that event, the custody and application of the proceeds of the bonds, the collection and disposition of assessments and of revenues, the investing and reinvesting, in securities specified by the board, of any moneys during periods not needed for authorized purposes, and the rights, duties, and obligations of the board and the holders and registered owners of the bonds.

History. Acts 1975, No. 746, § 11; 1981, No. 425, § 32; A.S.A. 1947, § 20-1811.

14-122-205. Contents of bonds.

It shall be plainly stated on the face of each bond that it has been issued under the provisions of this chapter, that the bonds shall be obligations only of the district, and that in no event shall they constitute any indebtedness for which the faith and credit of the municipality or any of its revenues, other than surplus utility revenues, are pledged.

History. Acts 1975, No. 746, § 12; A.S.A. 1947, § 20-1812.

14-122-206. Sale of bonds.

  1. The bonds shall be sold at public sale on sealed bids.
  2. Notice of the sale shall be published once a week for at least two (2) consecutive weeks in a newspaper having a general circulation throughout the State of Arkansas, with the first publication to be at least twenty (20) days prior to the date of sale, and may be published in such other publications as the district may determine.
  3. The bonds may be sold at such price as the board may accept, including sale at a discount.
  4. The award, if made, shall be to the bidder whose bid results in the lowest net interest cost.

History. Acts 1975, No. 746, § 11; 1981, No. 425, § 32; A.S.A. 1947, § 20-1811.

14-122-207. Execution of bonds — Seal.

  1. The bonds shall be executed by the manual or facsimile signature of the chairman of the board and by the manual signature of the secretary of the board.
  2. The coupons attached to the bonds shall be executed by the facsimile signature of the chairman of the board.
  3. In case any of the officers whose signatures appear on the bonds or coupons shall cease to be such officers before the delivery of the bonds or coupons, their signatures shall, nevertheless, be valid and sufficient for all purposes.
  4. The district shall adopt and use a seal in the execution and issuance of the bonds, and each bond shall be sealed with the seal of the district.

History. Acts 1975, No. 746, § 11; 1981, No. 425, § 32; A.S.A. 1947, § 20-1811.

14-122-208. Security and payment of bonds.

The principal of and interest on, and paying agent's fees in connection with, the bonds shall be secured by a lien on and pledge of, and shall be payable from, the assessments levied against the real property within the district.

History. Acts 1975, No. 746, § 12; A.S.A. 1947, § 20-1812.

14-122-209. Bonds — Tax exemption.

Bonds issued under the provisions of this chapter, and the interest thereon, shall be exempt from all state, county, and municipal taxes. The exemption shall include income, inheritance, and estate taxes.

History. Acts 1975, No. 746, § 13; A.S.A. 1947, § 20-1813.

A.C.R.C. Notes. Language excluding property taxes from the exemption provided by this section was deleted pursuant to Ark. Const. Amend. 57, § 1 and § 26-3-302. Arkansas Const. Amend. 57, § 1 provides that the General Assembly may classify intangible personal property for assessment at lower percentages of value than other property and may exempt one or more classes of intangible personal property from taxation, or may provide for the taxation of intangible personal property on a basis other than ad valorem. Section 26-3-302 exempts all intangible personal property in this state from all ad valorem tax levies of counties, cities, and school districts in the state as of January 1, 1976.

14-122-210. Board liability on bonds.

No member of the board shall be personally liable on the bonds or for any damages sustained by anyone in connection with any contracts entered into in carrying out the purposes and intent of this chapter unless he shall have acted with corrupt intent.

History. Acts 1975, No. 746, § 12; A.S.A. 1947, § 20-1812.

14-122-211. Additional funds — Supplemental annual assessment.

  1. In order to effectuate the plan of improvement and to maintain the improvements constructed thereunder, it may be desirable to provide additional funds for operation, maintenance, repairs, and replacements and to levy a supplemental annual assessment upon the property owners within the district in order to provide funds for such purposes.
  2. The supplemental annual assessment for operation, maintenance, repairs, and replacements shall be in addition to that levied and collected upon the assessment of benefits which has been, or may be, pledged and mortgaged to retire bonded indebtedness of the district as authorized in this chapter.
  3. The petition requesting the creation of the district, and the ordinances creating the district and levying the tax on the assessment of benefits to provide for the retirement of bonded indebtedness, may also provide for a continuing supplemental annual levy of an assessment, which shall be designated for the purposes of operation, maintenance, repairs, and replacements of the improvements.
  4. However, if the petition requesting the creation of the district does not contain a provision requesting the levy of a supplemental annual assessment for operation, maintenance, repairs, and replacements, a majority in value of the owners of real property within the district may at any time petition the governing body for the adoption of an ordinance levying the supplemental assessment.
  5. If such petition is later filed, it shall be the duty of the governing body to adopt the requested ordinance upon inquiry only as to the sufficiency of the petition.
  6. The levy and collection of the supplemental annual assessment for operation, maintenance, repairs, and replacements shall not operate to reduce the total of the assessed benefits which may be, or may have been, mortgaged and pledged to secure bonded indebtedness of the district.
  7. Upon request of the board, the annual supplemental assessment may be adjusted no more frequently than annually by the governing body.
  8. Collection of the supplemental assessment for operation, maintenance, repairs, and replacements shall be in the same manner as for the collection of assessment of benefits pledged to retire indebtedness of the district. The failure to pay the supplemental assessments shall be enforced by proceedings in the same manner as other delinquent assessments.

History. Acts 1975, No. 746, § 14; A.S.A. 1947, § 20-1814.

Chapter 123 Levee Improvement Districts Generally

Cross References. Combination levee and drainage improvement districts, § 14-120-101 et seq.

Publication of notices, § 16-3-101 et seq.

Relocation assistance payments, § 22-9-701 et seq.

Tort liability immunity, § 21-9-301 et seq.

Research References

Am. Jur. 3 Am. Jur. 2d, Adv. Poss., § 270.

16 Am. Jur. 2d, Con. Law, § 350.

Ark. L. Rev.

The Vitality of the Navigability Criterion in the Era of Environmentalism, 25 Ark. L. Rev. 250.

Lex Aquae Arkansas, 27 Ark. L. Rev. 429.

Subchapter 1 — General Provisions

[Reserved]

Subchapter 2 — District Establishment

Effective Dates. Acts 1879, No. 78, § 24: effective on passage.

Acts 1889, No. 26, § 8: effective on passage.

14-123-201. Authority to create districts.

The county courts of the several counties in this state containing lands subject to overflow may divide the territory of their respective counties subject to overflow into one (1) or more districts, having reference to the locality of the land and the character of the river front, including in each of the districts as nearly as is possible all lands subject to overflow from the same crevasses or direction, which can be protected by the same system of levees.

History. Acts 1891, No. 163, § 1, p. 297; C. & M. Dig., §§ 6811, 6812; Pope's Dig., §§ 4537, 4538; A.S.A. 1947, § 21-601.

14-123-202. Notice of proposed district formation.

  1. No district shall be formed unless notice of an intention to apply therefor is first given by posting written notices in three (3) public places in the limits of the proposed district at least ten (10) days before the formation of the district.
  2. Notice may be given by any land holder in the district or by order of the court made at a preceding term.

History. Acts 1879, No. 78, § 1, p. 117; C. & M. Dig., § 6814; Pope's Dig., § 4540; A.S.A. 1947, § 21-603.

14-123-203. District name.

The court shall designate a number or name for each district, and the district shall be known and designated by number or name, thus:

“Levee District No. , County , Levee District County.”

History. Acts 1879, No. 78, § 5, p. 117; C. & M. Dig., § 6821; Pope's Dig., § 4547; A.S.A. 1947, § 21-607.

14-123-204. Consolidation of districts and boards — Cooperation with other states.

  1. Wherever it shall be made to appear in any way that there shall be land in two (2) or more counties subject to overflow from the same crevasses or direction, and which can be protected by the same system of levees, the directors of the several levee districts of the two (2) or more counties may, by the consent of the county courts of counties entered of record, consolidate their several districts into one (1) district, and the directors shall constitute the board of directors for the consolidated district and shall represent their several districts in the consolidated districts.
  2. The board of the consolidated district shall elect a president, a secretary and treasurer, and an auditor, and allow such salary to each as his services may justify.
  3. The levee board shall control and supervise the interests of the consolidated levee system, and the officers of all county levee boards within the system shall report to the board of directors through their county directors.
  4. The board may cooperate with any levee board of another state if necessary to complete their system of levees.

History. Acts 1891, No. 163, § 1, p. 297; C. & M. Dig., §§ 6811, 6812; Pope's Dig., §§ 4537, 4538; A.S.A. 1947, § 21-601.

14-123-205. Boundaries — Change or alteration.

  1. The court may lay off levee districts or change or alter the boundaries of existing levee districts at any regular term.
  2. When an alteration or change in the boundary line of any existing levee district is desired and the new territory sought to be embraced in the alteration or change lies in two (2) or more counties, either county, with the consent of the county court of the other county or counties, entered of record, may make the change or alteration. The court of the county making the change or alteration shall have the same jurisdiction and power over the lands and officers of the district as if the district were wholly within the county.
  3. The notice required by § 14-123-202, for the formation of any new district, shall not be required for the change or alteration in the boundaries of an existing district.

History. Acts 1879, No. 78, § 1, p. 117; 1889, No. 26, § 1, p. 27; C. & M. Dig., § 6813; Pope's Dig., § 4539; A.S.A. 1947, § 21-602.

Subchapter 3 — Board of Directors or Assessors

Preambles. Acts 1979, No. 67 contained a preamble which read:

“Whereas, ownership of timber located on the rights-of-way of levee and drainage districts created under Act 279 of 1909, as amended, is vested in said districts under section 9 of Act 177 of 1913; and

“Whereas, the Board of Directors of the St. Francis Levee District created by Act 19 of 1893 has exercised control and ownership of the timber located on its rights-of-way since the creation of said District; and

“Whereas, it was the legislative intent that the St. Francis Levee District have the same right and title to the timber located on its rights-of-way as those districts created under Act 279 of 1909, as amended and such intent should be expressed by the enactment of this Act;

“Now therefore….”

Effective Dates. Acts 1879, No. 78, § 24: effective on passage.

Acts 1887, No. 86, § 10: effective on passage.

Acts 1889, No. 26, § 8: effective on passage.

Acts 1909, No. 231, § 3: effective on passage.

Acts 1934 (3rd Ex. Sess.), No. 5, § 6: Apr. 13, 1934. Emergency clause provided: “It is hereby ascertained and declared that by reason of the defects in the laws of the State of Arkansas regulating the issuance and sale of bonds of levee districts, the deposits of their funds and the bonds of their treasurers, it is difficult for said districts to sell bonds to raise funds with which to make necessary repairs and extensions to their levees, as a result of which the health and safety of the lives and property of many citizens of the State are endangered; and that by reason of the present economic conditions many citizens of the state are out of work, and the funds herein referred to would provide work for a large number of persons and thereby add to the peace and happiness of the state. It is, therefore, declared that an emergency exists, that this act is necessary for the immediate preservation of the public peace, health and safety and that this Act shall take effect and be in force from and after its approval.”

Acts 1943, No. 49, § 3: approved Feb. 13, 1943. Emergency clause provided: “It is ascertained that in levee districts in which the compensation of the officers and employees who devote their full time to the performance of their duties is fixed by legislative act, the compensation paid to such officers and employees is not commensurate with the services rendered, thereby impairing the successful operation of such districts. An emergency is, therefore, declared and this Act shall take effect and be in force from and after its passage.”

Acts 1979, No. 67, § 3: Feb. 7, 1979. Emergency clause provided: “It is hereby found and determined by the General Assembly that there is some doubt as to the ownership of timber located on rights-of-way of certain levee districts and that this Act is immediately necessary to clarify the legislative intent of enactment creating certain levee districts. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall take effect and be in full force from the date of its approval.”

Acts 1991, No. 778, § 5: Mar. 26, 1991. Emergency clause provided: “It is hereby found and determined by the Seventy-Eighth General Assembly of the State of Arkansas that due to no fault of their own, certain levee districts have failed to select members of their Directors in the manner required by law; that such Directors have been acting in good faith during their terms in office; that such action should be validated by this act becoming effective immediately upon its passage and approval. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after is passage and approval.”

14-123-301. Election of directors and assessors — In general — Erroneous selection of commissioners or directors.

  1. At the term of the court at which the districts may be laid off, or at any future term, the court shall designate and fix a day of election for three (3) directors of levees and three (3) assessors of lands in each of the districts and shall appoint three (3) judges of election to hold the election.
  2. The election shall be held in accordance with the general election laws of the state, except that none but landholders of the district and mortgagees in possession after condition broken shall be allowed to vote at the election, be eligible to election to either of the offices, or to act as judges at the election, except that guardians duly appointed, and who shall have given bond and received letters of guardianship of infant heirs or insane persons owning land in the district, may vote in right of their respective wards.
  3. Where any levee district in Arkansas organized under any general or special act of the General Assembly provided for election of commissioners or directors and, through error, such commissioners or directors have not been elected but selected by some other method, and such commissioners or directors have served as such commissioners or directors in good faith, the acts of such commissioners and directors are hereby validated and shall have the same force and effect as though such commissioners or directors had been selected in the manner provided by law.
  4. In any levee district heretofore established which is now operating with a board of commissioners or directors, all of whom have taken, or, within thirty (30) days after March 26, 1991, take the oath required by law, said commissioners or directors may continue to serve for the terms prescribed by law, and the acts of such boards are hereby validated.

History. Acts 1879, No. 78, § 2, p. 117; C. & M. Dig., §§ 6815, 6816; Pope's Dig., §§ 4541, 4542; A.S.A. 1947, § 21-604; Acts 1991, No. 778, § 1.

14-123-302. Voting by nonresident bondholders.

Nonresident bondholders, as well as resident landowners, shall be allowed to vote at such elections and also have a vote in determining when work shall be done, as prescribed in § 14-123-301, and the nonresident bondholders may cast their votes either by themselves or by their agents or attorney in fact, duly appointed.

History. Acts 1879, No. 78, § 18, p. 117; C. & M. Dig., § 6841; Pope's Dig., § 4567; A.S.A. 1947, § 21-609.

14-123-303. Certification of unopposed candidates without election.

  1. In all elections held within this state for the election of directors or commissioners of any levee district, the names of unopposed candidates shall not be printed on the ballot, and the election commissioners of the county shall certify as elected the person who qualifies for the office.
  2. In the event all of the candidates within the county are unopposed, no election shall be held in the county. The person qualifying for the office shall be certified by the county board of election commissioners as the duly elected director or commissioner of the district and shall receive from the county board of election commissioners a certificate of election to the office.

History. Acts 1967, No. 504, § 1; A.S.A. 1947, § 21-605.1.

14-123-304. Procedure at polls — Depositing ballots and returns.

  1. The judges of the election shall:
    1. Open the polls;
    2. Appoint two (2) clerks of election;
    3. Proceed to hold the election by ballot;
    4. Keep the polls open until sundown of election day; and
    5. Cause poll books to be kept and the name of each voter to be recorded with the number of his ballot.
  2. Ballots shall be counted, and the result of the election shall be declared and recorded and the returns signed by the judges and clerks of the election.
  3. The returns and ballots shall be:
    1. Sealed up and directed to the judge of the county court;
    2. Sealed up in separate envelopes; and
    3. Deposited in the clerk's office of the county by one (1) of the judges of the election within five (5) days after the election is held.

History. Acts 1879, No. 78, § 3, p. 117; C. & M. Dig., § 6817; Pope's Dig., § 4543; A.S.A. 1947, § 21-605.

14-123-305. Canvass of votes — Declaration of result — Contest.

  1. If it is more than ten (10) days until a regular term of the court after the election is held, the judge of the county court shall hold a special term of the court within ten (10) days of the election, at which the returns shall be opened by the court and clerk, who shall constitute the board of canvassers to canvass the votes at the election and declare the result.
  2. The three (3) persons having the highest number of votes in the district for directors shall compose the board of levee directors for the district.
  3. The three (3) persons having the highest number of votes for assessors shall compose the board of assessors of the district.
  4. The court shall cause an order to be entered on the minutes of the court reciting the election and the names of the persons so found to be elected to the offices and shall give to each of the persons a certificate of his election, attested by the clerk and the seal of the court.
  5. In case any person voted for at the election shall contest the election of either of the officers, he shall commence proceedings within ten (10) days after the result of the election is declared by the court. The contest shall be conducted in the same manner and governed by the same laws as are prescribed for contesting the election of constable.

History. Acts 1879, No. 78, § 4, p. 117; C. & M. Dig., §§ 6818-6820; Pope's Dig., §§ 4544-4546; A.S.A. 1947, § 21-606.

14-123-306. Oath — Terms of office.

  1. All directors and assessors elected under the provisions of this act shall, before they enter upon the discharge of their duties, take and subscribe the oath required by Arkansas Constitution, Article 19, § 20.
  2. They shall each hold their office for three (3) years and until their successors are elected and qualified.
  3. After the first election, the county court shall designate one (1) director and one (1) assessor to hold office for one (1) year, and one (1) of each to hold office for two (2) years, and one (1) of each for three (3) years, and thereafter one (1) of each of the officers shall be elected by the landholders of the district on the first Monday of May of each year.
  4. The directors and assessors shall hold their offices until the first Monday in May after the expiration of one (1) year from their first election.

History. Acts 1879, No. 78, § 17, p. 117; C. & M. Dig., §§ 6839, 6840; Pope's Dig., §§ 4565, 4566; A.S.A. 1947, § 21-608.

Meaning of “this act”. Acts 1879, No. 78, codified as §§ 14-123-202, 14-123-203, 14-123-205, 14-123-301, 14-123-302, 14-123-30414-123-306, 14-123-311, 14-123-316, 14-123-40114-123-409, 14-123-411, and 14-123-41314-123-419.

14-123-307. Vacancies.

Should a vacancy occur in the board of directors or assessors during the term for which they are elected, the county court shall order an election to fill the vacancy, notice of which election shall be given by posting written or printed handbills in at least twenty (20) public places in the district ten (10) days immediately prior to holding the election.

History. Acts 1889, No. 26, § 5, p. 27; C. & M. Dig., § 6833; Pope's Dig., § 4559; A.S.A. 1947, § 21-610.

14-123-308. Powers and duties.

The board of directors shall:

  1. Have the exclusive control and supervision of the levees in their district; and
  2. Make all necessary rules for their protection.

History. Acts 1889, No. 26, § 7, p. 27; C. & M. Dig., § 6835; Pope's Dig., § 4561; A.S.A. 1947, § 21-614.

14-123-309. Records and reports.

The board of directors shall keep a record of their proceedings as well as a record of all the meetings of the district and shall, at the annual meeting on the first Monday of May in each year, report to the electors of the district an itemized statement, under oath, of the receipts and expenditures of the year preceding, which report they shall also cause to be published in some newspaper printed and published in the county, if any exists.

History. Acts 1889, No. 26, § 6, p. 27; C. & M. Dig., § 6834; Pope's Dig., § 4560; A.S.A. 1947, § 21-613.

14-123-310. Treasurer.

  1. The board of directors shall at their annual meeting on the first Monday in May, or as soon thereafter as practicable, elect a treasurer for the levee district, whose term of office shall continue until the first Monday in the following May or until his successor is duly elected and qualified.
  2. The treasurer shall give such bond and receive such compensation as from time to time may be fixed by the board of directors.
  3. The treasurer of any levee district shall be custodian of all funds of the district and shall cause to be made and filed with the board of directors or commissioners of the district a sufficient bond, conditioned on the faithful performance of his duties, and to render full accountability, which bond shall be written in some surety company authorized to do business in the State of Arkansas and approved by the board or its finance committee, the expense of which is to be paid by the district.
  4. The treasurer shall not be construed to be an insurer of the funds of the district and shall not be liable on the bond except for his failure to pay over or account for funds in his possession. The receipt of any funds by any depository of the district shall release the treasurer from any liability therefor unless and until the funds shall thereafter be paid to him by the depository.

History. Acts 1897, No. 8, § 6, p. 8; C. & M. Dig., § 6845; Acts 1934 (3rd Ex. Sess.), No. 5, § 4; Pope's Dig., §§ 4571, 4575; A.S.A. 1947, §§ 21-615, 21-618.

Case Notes

Cited: Jefferson Bank v. Little Red River Levee Dist., 186 Ark. 1048, 57 S.W.2d 805 (1933).

14-123-311. Warrants — Employment and supervision of laborers.

  1. The board of levee directors shall draw warrants on the treasurer of the district to pay for work done on the levees, which shall be paid by the treasurer in the order of presentation.
  2. The board of levee directors shall:
    1. Have charge of all the public levees in their districts;
    2. Keep the public levees in repair; and
    3. For this purpose, have power to employ and superintend laborers.

History. Acts 1879, No. 78, § 22, p. 117; 1887, No. 86, § 9, p. 132; C. & M. Dig., § 6844; Pope's Dig., § 4570; A.S.A. 1947, § 21-619.

14-123-312. Determination of necessary work — Survey and report.

  1. It shall be the duty of the board of directors to determine what work is necessary to be done, or levees to be constructed, to protect their district from overflow.
  2. They shall cause accurate surveys of all work deemed necessary by them and accurate estimates and calculations, to be made by some suitable and competent engineer or other person, who shall make a written report thereof, showing the amount, character, and kind of work, the exact location thereof, and the probable cost thereof, and return the report with all plans and specifications to the board of directors.

History. Acts 1879, No. 78, § 6, p. 117; C. & M. Dig., § 6822; Pope's Dig., § 4548; A.S.A. 1947, § 21-620.

Case Notes

Continuing Power.

The board of directors has a continuing power to act after the completion of the improvement and, at their discretion, to perform the work necessary to be done on the levee system for the purpose of protecting the property of their district from loss and destruction by overflow. West v. Cotton Belt Levee Dist., 116 Ark. 538, 173 S.W. 403 (1915).

The power conferred on levee districts to construct levees is not exhausted by their original construction, but is a continuing one, and they are authorized to relocate and reconstruct the levees as the exigency of the case may require. Hornor v. Craggs, 185 Ark. 1155, 51 S.W.2d 861 (1932).

14-123-313. Ownership of timber on right-of-way.

The ownership of timber located on the right-of-way of any levee district, embracing lands in four (4) or more counties, shall be vested in the board of directors of the district. The board may use, sell, or dispose of the timber as it deems best.

History. Acts 1979, No. 67, § 1; A.S.A. 1947, § 21-522.1.

14-123-314. Depositories for funds.

  1. The board of directors or commissioners of any levee district organized under general or special laws, which is or may be hereafter authorized to select depositories for the funds of the district, shall select the depositories at the time, in the manner, and for the term as is required by existing statutes.
  2. However, in the event the depositories so selected cannot or do not provide the security required by law in an amount sufficient to provide protection for all the funds of the district, the board of directors or commissioners are authorized to select additional depositories without advertising for bids, which depositories may be located outside the district and within or without the State of Arkansas. The additional depositories shall be required to provide the security required by law for deposits of improvements districts.

History. Acts 1934 (3rd Ex. Sess.), No. 5, § 2; Pope's Dig., § 4573; A.S.A. 1947, § 21-616.

Cross References. Deposit of public funds, § 19-8-101 et seq.

Depositories required to give bond, § 14-86-1801 et seq.

14-123-315. Interest on deposits.

The rate of depository interest to be paid by the depositories selected in accordance with § 14-123-314 and by those depositories selected in accordance with existing laws shall be such as, in the opinion of the board of directors or commissioners, is consistent with the security given and for the best interests of the district. However, if the board is unable to secure any interest on its deposits, then it is authorized to make such deposits without interest.

History. Acts 1934 (3rd Ex. Sess.), No. 5, § 3; Pope's Dig., § 4574; A.S.A. 1947, § 21-617.

14-123-316. Compensation of directors, assessors, employees, etc.

  1. The directors and assessors shall each receive the sum of up to fifty dollars ($50.00) per day for attending meetings of the board and while actually and necessarily engaged in the performance of their duties under this act.
  2. The directors shall be authorized to employ an engineer at a price not to exceed one hundred fifty dollars ($150) per month while actually engaged in the performance of his or her duties.
  3. The board of directors or board of commissioners of levee districts organized under general laws or special acts shall have the power to fix the amount of compensation to be paid to the officers and employees of the district who are required to devote all their time to the performance of the duties of their office or employment.

History. Acts 1879, No. 78, § 19, p. 117; 1909, No. 231, § 2, p. 696; C. & M. Dig., § 6842; Pope's Dig., § 4568; Acts 1943, No. 49, § 1; A.S.A. 1947, §§ 21-611, 21-612; Acts 2011, No. 187, § 1.

Amendments. The 2011 amendment, in (a), substituted “up to fifty dollars ($50.00)” for “five dollars ($5.00)” and inserted “for attending meetings of the board and.”

Meaning of “this act”. See note to § 14-123-306.

Case Notes

Retirement Plans.

Levee district did not have authority to put into effect retirement plan for officers and employees. Daggett v. St. Francis Levee Dist., 226 Ark. 545, 291 S.W.2d 254 (1956).

Subchapter 4 — District Operation

Cross References. Alternative method of assessment in districts in more than one county, § 14-124-101 et seq.

Assessments not to be reduced after issuance of bonds, § 14-86-602.

Partition of assessments among several owners of single tracts, § 14-86-601.

Reassessments, §§ 14-120-108, 14-120-109.

Right of review of assessment by chancery court, § 14-120-501 et seq.

Time for payment of taxes or assessments, § 14-86-1103.

Preambles. Acts 1932 (2nd Ex. Sess.), No. 14 contained a preamble which read:

“Whereas, when levees are constructed, persons whose lands are protected thereby are induced to make valuable improvements on the faith of such levees, and lands are purchased and sold on the faith that the protection will continue, and taxes are assessed and collected on that basis; and

“Whereas, a setting back of the levee exposes the lands to destructive overflows, and an encircling of the lands by a change in the levee deprives them of the advantages of drainage and access; and

“Whereas, such changes are made for the public good and constitute a damage to property for a public use under the provisions of our Constitution;

“Now, therefore….”

Effective Dates. Acts 1879, No. 78, § 24: effective on passage.

Acts 1887, No. 86, § 10: effective on passage.

Acts 1889, No. 26, § 8: effective on passage.

Acts 1895, No. 26, § 4: effective on passage.

Acts 1897, No. 8, § 7: effective on passage.

Acts 1901, No. 94, § 4: effective on passage.

Acts 1909, No. 231, § 3: effective on passage.

Acts 1932 (2nd Ex. Sess.), No. 14, § 4: approved Apr. 14, 1932. Emergency clause provided: “It is ascertained and hereby declared that it is urgently necessary that levee districts be granted the powers hereby conferred, in order that they may construct, reconstruct and repair their levees, and change the location thereof, without vexatious litigation which might retard their construction, repair or change of location, and expose the lands of the district to destructive overflows, and that such overflows are perilous to the public health and safety; and it is therefore ascertained and declared that an emergency exists requiring that this act should go into immediate operation; and, accordingly, this act shall take effect and be in force immediately upon its passage.”

Acts 1934 (3rd Ex. Sess.), No. 5, § 6: Apr. 13, 1934. Emergency clause provided: “It is hereby ascertained and declared that by reason of the defects in the laws of the State of Arkansas regulating the issuance and sale of bonds of levee districts, the deposits of their funds and the bonds of their treasurers, it is difficult for said districts to sell bonds to raise funds with which to make necessary repairs and extensions to their levees, as a result of which the health and safety of the lives and property of many citizens of the State are endangered; and that by reason of the present economic conditions many citizens of the state are out of work, and the funds herein referred to would provide work for a large number of persons and thereby add to the peace and happiness of the state. It is, therefore, declared that an emergency exists, that this act is necessary for the immediate preservation of the public peace, health and safety and that this act shall take effect and be in force from and after its approval.”

Acts 1947, No. 141, § 3: approved Mar. 3, 1947. Emergency clause provided: “It is hereby ascertained by the General Assembly of the State of Arkansas that the present laws concerning the notification of the pendency of suits required to be given landowners whose lands in levee districts of this State are delinquent are inadequate and necessitate needless expenditures to defray court costs. It is therefore declared that this Act is necessary for the immediate preservation of the public peace, health and safety and an emergency is declared to exist and this Act shall take effect and be in full force from and after its passage.”

Acts 1981, No. 425, § 54: Mar. 11, 1981. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

14-123-401. Assessment of lands.

Assessors shall:

  1. Assess the value of lands in the district subject to overflow and benefited by the work, having reference to the value of the land without the work, and the value thereof as benefited by work; and
  2. Assess the value thereof as improved by the work in an assessment book to be provided for that purpose.

History. Acts 1879, No. 78, § 7, p. 117; C. & M. Dig., § 6823; Pope's Dig., § 4549; A.S.A. 1947, § 21-621.

Case Notes

Construction.

Word “taxation” does not include benefit assessment by local improvement district, as it is based on alleged benefit to property owner and is not for support of the local government. Board of Directors v. Reconstruction Fin. Corp., 170 F.2d 430 (8th Cir. 1948).

Mineral Interests.

Separate assessment of mineral interests is inapplicable in assessment of benefits by an improvement district. Long Prairie Levee Dist. v. Wall, 227 Ark. 305, 298 S.W.2d 52 (1957).

14-123-402. Entry of land on assessment book.

  1. The lands shall be entered upon the books in convenient subdivisions, as surveyed by the federal government, with appropriate columns showing the names and residences of owners of the land, and of any person holding recorded liens or encumbrances thereon, if known to the assessors.
  2. The following shall also be recorded on the assessment book: The number of acres cleared or uncleared, as nearly as the assessors can ascertain, without measurement; the value thereof as assessed by them without the work; and the value thereof as improved by the work.
  3. No error in the description of the lands shall invalidate the assessment if sufficient description is given to ascertain where the land is situated.

History. Acts 1879, No. 78, § 7, p. 117; 1887, No. 86, § 2, p. 132; C. & M. Dig., § 6824; Pope's Dig., § 4550; A.S.A. 1947, § 21-622.

14-123-403. Notice of landholders' meeting.

The board of directors shall then call a meeting of all the landholders of the district at some place convenient to some part of the work and shall give at least five (5) days' notice of the time and place of the meeting, by written or printed handbills put up in ten (10) public places in the district, that the estimates of the surveyor and the list of the assessors will be submitted to the meeting for action, and requiring the owner of the lands and the holders of any lien thereon to show cause at the meeting why the lands shall not be assessed with their proportional part of the cost of the work.

History. Acts 1879, No. 78, § 8, p. 117; C. & M. Dig., § 6825; Pope's Dig., § 4551; A.S.A. 1947, § 21-623.

Case Notes

Constitutionality.

This section is valid. West v. Cotton Belt Levee Dist., 116 Ark. 538, 173 S.W. 403 (1915).

14-123-404. Landowners' meeting — Levy of tax — Issuance of evidence of indebtedness.

  1. At the landowners' meetings the reports and estimates of the engineers, the assessments of the assessors, and an estimate of the probable cost of the work shall be laid before the landowners present. If a majority of the landowners present, either in person or by proxy, shall vote in favor of the work, it shall be the duty of the board of directors to cause the levee to be constructed in accordance with the reports and estimates of the engineers, as nearly as may be.
  2. To that end the board of directors shall have power and authority to levy a tax upon the betterment estimated to accrue to the lands by reason of the work, sufficient to pay the cost thereof, which the tax may be paid as a whole or in such annual installments as the board of directors may decide.
  3. When the assessment shall be payable in annual installments, the treasurer of the district shall collect each year only the annual installments due for the year and any delinquent installments.
  4. The board of directors may issue interest-bearing evidences of indebtedness or bonds which may be either negotiable or nonnegotiable, and in such form and bearing interest at such rate or rates, and payable at such time or times as the board of directors may by resolution declare.
  5. To secure the prompt payment thereof, the board may pledge the property and revenue of the district, provided the total indebtedness shall not exceed the estimated betterment to accrue to the land by reason of the work.

History. Acts 1879, No. 78, § 9, p. 117; 1887, No. 86, § 3, p. 132; 1895, No. 26, § 1, p. 30; 1909, No. 231, § 1, p. 696; C. & M. Dig., § 6826; Pope's Dig., § 4552; Acts 1981, No. 425, § 25; A.S.A. 1947, § 21-624.

Cross References. Levy of tax for preliminary expenses, § 14-86-701.

Case Notes

Cited: Overstreet v. Levee Dist. of Conway County, 80 Ark. 462, 97 S.W. 676 (1906).

14-123-405. Letting of work.

If it shall be decided at the meeting, in the manner aforesaid, to do the work, the directors shall proceed to let the work out to the lowest and best bidder. However, the directors shall have the right to reject all bids if the bids shall be deemed too high.

History. Acts 1879, No. 78, § 9, p. 117; C. & M. Dig., § 6827; Pope's Dig., § 4553; A.S.A. 1947, § 21-625.

14-123-406. Bond of contractors.

The contractors shall give bond to the directors in a sum sufficient to secure the prompt execution of their contract, conditioned to pay any damages which shall result to the landholders of the district from a failure to perform their contracts or by reason of a negligent performance of the contract.

History. Acts 1879, No. 78, § 11, p. 117; C. & M. Dig., § 6828; Pope's Dig., § 4554; A.S.A. 1947, § 21-626.

Cross References. Contractors' bonds, § 22-9-401 et seq.

14-123-407. Execution of work — Acceptance.

The work shall be done by contractors, under the supervision of the board of directors or any engineers to be selected by them and, when completed, if performed according to the terms of their contract and the plans and specifications submitted to the meeting of landholders, shall be received and accepted by the board of directors.

History. Acts 1879, No. 78, § 12, p. 117; C. & M. Dig., § 6829; Pope's Dig., § 4555; A.S.A. 1947, § 21-627.

14-123-408. Assessment for cost of work — Revision and delivery of lists.

  1. The board of assessors shall:
    1. Make an assessment of the cost of the work upon the lands situated in the district benefited by the work and reported to the meeting of landholders upon the value of the lands as increased by the work; and
    2. Also make a list of the lands as assessed, showing the owners' names, the description of the land, the number of acres, the valuation thereof as increased by the work, and the amounts of the assessments thereon.
  2. The assessors and board of directors shall then go carefully over the list, descriptions, and valuations and make all necessary corrections in the description of the lands assessed, adding to the list any lands omitted and striking out any lands improperly assessed.
  3. Notice of the time and place of the revision shall be given by written or printed handbills posted in ten (10) public places in the district for ten (10) days prior thereto. At that time any person feeling himself aggrieved by the assessment may appear and have his complaint heard and considered by the board of directors.
  4. The assessors shall make alterations and corrections in the list ordered by the board and shall then file the list in the clerk's office of the county court of the county. They shall also make a separate list thereof and deliver the separate list to the treasurer of the district. Both lists shall be signed by the assessors. For the purpose of ascertaining the description of any lands embraced in the district, the assessors and the owners of the land shall be governed by and subject to the provisions of § 26-26-717.

History. Acts 1879, No. 78, § 13, p. 117; 1887, No. 86, § 4, p. 132; 1889, No. 26, § 2, p. 27; 1897, No. 8, § 1, p. 8; C. & M. Dig., § 6830; Pope's Dig., § 4556; A.S.A. 1947, § 21-628.

Case Notes

Enforcement of Assessments.

In an action to enforce an assessment to build a levee, it is no defense that lands have not yet received any benefit from the levee, provided the lands would be benefited when the levee was completed according to the plans of the district; nor is it a defense that the levee was not properly constructed and affords no protection from overflow. Salmon v. Board of Directors, 100 Ark. 366, 140 S.W. 585 (1911).

14-123-409. Assessments as lien — Interest on delinquent assessments — Correcting errors.

  1. The assessments shall be a lien on all the lands of the district, in the nature of a mortgage, and shall bear interest at the rate of six percent (6%) per annum after thirty (30) days from the filing of the assessments in the county clerk's office, and until paid.
  2. If at any time before judgment, in any foreclosure proceeding brought to enforce the lien, it shall appear that an error has been made in the description of any of the lands embraced in the assessment or lists, the error shall be at once corrected, and the correction shall have the effect in all respects as if the error had not existed.

History. Acts 1879, No. 78, § 13, p. 117; 1887, No. 86, § 5, p. 132; 1889, No. 26, § 3, p. 27; C. & M. Dig., § 6831; Pope's Dig., § 4557; A.S.A. 1947, § 21-629.

Case Notes

Statute of Limitations.

Delinquent assessments in a levee district are declared to be a lien on the lands which is not barred by the statute of limitations. New Netherlands American Mtg. Bank v. Little Red River Levee Dist., 186 Ark. 965, 56 S.W.2d 1016 (1933).

14-123-410. Assessment of omitted lands.

  1. If, for any cause, any of the lands in any district now existing, or hereafter formed, has not been assessed or subjected to its proportional share of any work voted to be done, or to the annual tax provided in § 14-123-419, it shall be the duty of the assessors to at once make out and present lists to the board of directors, who shall examine the lists. They shall proceed to hear and determine all complaints respecting the lists, after notice to the owners as provided in § 14-123-408.
  2. The list shall then be filed in the clerk's office and with the board of directors, as provided in § 14-123-408, and shall constitute a lien on the lands to be enforced as if originally assessed as herein provided in this chapter.

History. Acts 1889, No. 26, § 4, p. 27; C. & M. Dig., § 6832; Pope's Dig., § 4558; A.S.A. 1947, § 21-630.

14-123-411. Payment of assessments — Effect of delinquency.

  1. When the assessment list is delivered to the treasurer, he shall proceed immediately to collect the assessments.
  2. If the assessments are not paid within thirty (30) days, a penalty of ten percent (10%) shall at once attach for the delinquency. The board of directors shall enforce the collection of the whole by chancery proceedings in a court of the county having chancery jurisdiction in which the lands are situated. The court shall give judgment against the persons claiming to be the owners of the land, if known to the board, for the amount of the assessment, the penalty of ten percent (10%), interest on the assessment from the end of the thirty (30) days allowed for the collection thereof at the rate of six percent (6%) per annum, and all costs of the proceedings.
  3. If the ownership of delinquent lands is unknown to the board, the lands may be proceeded against as set forth in this section for the collection of the assessments, penalty, interests, and costs due thereon, as being owned by unknown owners.
  4. The judgment shall provide for the sale of the delinquent lands for cash, by commissioner of the court, after advertisement as set out in this section.
  5. The proceedings and judgment shall be in the nature of proceeding in rem, and it shall be immaterial that the ownership of the lands may be incorrectly alleged in the proceedings.
  6. The judgment shall be enforced wholly against the land and not against any other property or estate of the defendant.
  7. All or any part of the delinquent lands in any levee district in one (1) county may be included in one (1) suit instituted for the collection of the delinquent assessments, etc., as aforesaid, and all delinquent owners of the land, including those unknown as aforesaid, may be included in the one (1) suit as defendant.

History. Acts 1879, No. 78, § 14, p. 117; 1887, No. 86, § 6, p. 132; 1897, No. 8, § 2, p. 8; C. & M. Dig., § 6836; Pope's Dig., § 4562; A.S.A. 1947, § 21-631.

Cross References. Payment of improvement district taxes with bonds of district, § 14-86-803.

Payment of levee and drainage taxes in instalments, § 14-120-110.

Remission of delinquent penalties in excess of 10 percent, § 14-86-1002.

Suit for collection of delinquent taxes, § 14-86-1106.

Case Notes

Improper Assessments.

The fact the lands were improperly assessed for levee taxes and the taxes were from year to year paid to the collector by another did not estop the levee district which owned the land, nor its successor, from asserting title. Miller v. Henry, 105 Ark. 261, 150 S.W. 700 (1912).

Where person paid levee taxes illegally assessed on land which had been taken by the levee district for levee purposes, he cannot recover such taxes, though he did not know how much of his land had been appropriated, since his payment was voluntary, and by refusing to pay he could have made his defense in the suit which the district would have had to bring to collect the taxes. Chapman & Dewey Land Co. v. Board of Directors, 172 Ark. 414, 288 S.W. 910 (1926).

Set-off.

The assessment cannot be set off by a claim which the taxpayer may have against the levee district. Fitzhugh v. Cotton Belt Levee Dist., 54 Ark. 224, 15 S.W. 455 (1891).

14-123-412. Notice of pending suit in districts with five counties or less.

  1. In all suits brought by any levee district formed under the general statutes or under any special act of this state to enforce the collection of assessments, the levee district shall give notice of the pendency thereof as against all landowners, whether known or unknown, when the suits may be pending. Notice shall be given by publication weekly for four (4) weeks prior to the date of the term of court on which final judgment may be entered for the sale of land in the levee district on which the assessments are delinquent in some newspaper published in the county where the suit is pending, which public notice may be in the following form:
  2. Where the owners are unknown, that fact shall be so stated in the published notice. Upon the giving of the notice of the pendency of the suit, no further notice shall be necessary to any landowner and personal summons against the landowner need not be served, and the suit shall stand for trial as now provided by law.
  3. All statutory provisions contrary to the terms of this section are amended to conform hereto. However, this section shall not apply to levee districts comprising lands located in more than five (5) counties.

“NOTICE Levee District vs. Delinquent Lands The following named persons and corporations and all others having or claiming an interest in the following described lands are hereby notified that suit is pending in the Chancery Court of County, Arkansas, to enforce the collection of certain levee assessments on the subjoined list of lands, each supposed owner's lands being set opposite his or her or its name, respectively, together with the amount severally due from each, to wit: (Then shall follow a list of supposed owners, with descriptive list of said lands and amounts due thereon, respectively, as aforesaid). Said public notice may be concluded in the following form: Said persons and corporations and all others interested in said lands are hereby notified that they are required by law to appear and make defense to said suit, or the same will be taken for confessed, and final judgment will be entered directing the sale of said lands for the purpose of collecting said levee assessments, together with the payment of interest, penalty, and costs allowed by law. Clerk of said Court.”

Click to view form.

History. Acts 1947, No. 141, §§ 1, 2; A.S.A. 1947, § 21-632.

14-123-413. Notice of pending suit generally.

  1. Notice of the pendency of the suit shall be given as against nonresidents of the county and unknown owners, respectively, when the suits may be pending, by publication weekly for four (4) weeks prior to the day of the term of court on which final judgment may be entered for the sale of the land, in some newspaper published in the county, where the suit may be pending, which public notice may be in the following form:
  2. Where the owners are unknown, that fact shall be so stated in the published notice.
  3. As against any defendant who resides in the county where the suit may be brought and who appears by the lists of land made by the assessors and filed in the county clerk's office to be the owner of any of the land proceeded against, notice of the pending suit shall be given by the service of personal summons of the court at least twenty (20) days before the day on which the defendant is required to answer as set out in the summons.

“NOTICE Levee District vs. Delinquent Lands The following named persons and corporations and all others having or claiming an interest in the following described lands, are hereby notified that suit is pending in the Chancery Court of County, Arkansas, to enforce the collection of certain levee assessments on the subjoined list of lands, each supposed owner's lands being set opposite his or her or its name, respectively, together with the amount severally due from each, to wit: (Then shall follow a list of supposed owners, with descriptive list of said lands and amounts due thereon, respectively, as aforesaid). Said public notice may be concluded in the following form: Said persons and corporations and all others interested in said lands are hereby notified that they are required by law to appear and make defense to said suit, or the same will be taken for confessed, and final judgment will be entered directing the sale of said lands for the purpose of collecting said levee assessments, together with the payment of interest, penalty, and costs allowed by law. Clerk of said Court.”

Click to view form.

History. Acts 1879, No. 78, § 14, p. 117; 1887, No. 86, § 6, p. 132; 1897, No. 8, § 2, p. 8; C. & M. Dig., § 6836; Pope's Dig., § 4562; A.S.A. 1947, § 21-631.

Publisher's Notes. This section, in so far as it relates to the notice of suit for delinquent assessments and provides for personal service on residents, is superseded by § 14-123-412 as to districts comprising five (5) counties or less.

14-123-414. Trial date — Continuance.

  1. The suit shall stand for trial at the first term of the court after complaint may be filed, if four (4) weeks in the case of a nonresident or unknown defendant as set out in § 14-123-413, or twenty (20) days in the case of resident defendants as set out in § 14-123-413, shall expire either before the first day of the term or during the term of the court to which the suits are brought, respectively, unless a continuance is granted for good cause shown within the discretion of the court.
  2. Continuances for good cause shown may be granted as to a part of the lands of defendants without affecting the duty of the court to dispose finally of the others as to whom no such continuances may be granted.

History. Acts 1879, No. 78, § 14, p. 117; 1887, No. 86, § 6, p. 132; 1897, No. 8, § 2, p. 8; C. & M. Dig., § 6836; Pope's Dig., § 4562; A.S.A. 1947, § 21-631.

14-123-415. Decree — Sale of land.

  1. In all cases where notice has been properly given as set out in § 14-123-413 and where no answer has been filed, or, if filed and the cause decided for the plaintiff, the court by its decree shall:
    1. Grant the relief as prayed in the complaint;
    2. Direct the commissioner to sell the land described in the decree at the courthouse door of the county wherein the decree is entered, at public outcry, to the highest bidder for cash in hand, after having first advertised the sale weekly for two (2) weeks, consecutively, in some newspaper published in the county, if there is one. If no newspaper is published in the county, then the advertisement shall be published in some newspaper of an adjoining county. The advertisement may include all the lands described in the decree.
  2. If all of the lands be not sold on the day as advertised, the sale shall be continued from day to day until completed.
  3. The commissioner shall by proper deeds convey to the purchasers the lands so sold, and the titles to the lands shall thereupon become vested in the purchasers as against all others whomsoever, saving to infants and insane persons having no guardians or curators, but who now have the rights by law to appear and except to the proceedings within twelve (12) months after their disabilities are removed.
  4. In any case where lands are offered for sale by the commissioner as provided by this act, and the sum of the assessment due, together with interests, costs, and penalty, is not bid for the lands, the commissioner shall bid the lands off in the name of the plaintiff levee district, bidding therefor the whole amount due as aforesaid, and shall execute his deed therefor, as in all other cases under this act, conveying the lands to the plaintiff levee district. The deed, when duly executed in conformity with the provisions of this act and recorded shall be received as evidence in all cases showing an indefeasible title in the purchasers, unassailable either in law or equity.

History. Acts 1879, No. 78, § 14, p. 117; 1887, No. 86, § 6, p. 132; 1897, No. 8, § 2, p. 8; C. & M. Dig., § 6836; Pope's Dig., § 4562; A.S.A. 1947, § 21-631.

Meaning of “this act”. Acts 1897, No. 8, codified as §§ 14-123-310, 14-123-408, 14-123-411, and 14-123-41314-123-418.

Cross References. Lien of district may be enforced notwithstanding tax sale to state, § 14-86-1601 et seq.

Case Notes

Collateral Attack.

A decree based upon constructive service enforcing a lien for levee taxes against unoccupied land of a nonresident owner is not open to collateral attack because the ownership is incorrectly alleged to be in a resident owner who actually has no interest therein. Crittenden Lumber Co. v. McDougal, 101 Ark. 390, 142 S.W. 836 (1911).

Conclusiveness of Decree.

A decree enforcing levee taxes rendered upon due service is conclusive as to whether the taxes were due and unpaid. Board of Directors v. Fleming, 93 Ark. 490, 125 S.W. 132 (1910).

Conclusiveness of Sale.

Where the land of a nonresident was proceeded against for levee taxes and was sold under a decree which recited that published notice was given as required, such recital is conclusive upon a collateral proceeding. Pattison v. Smith, 94 Ark. 588, 127 S.W. 983 (1910).

District's failure to designate the true owner of the land does not affect the validity of foreclosure sale. Long Prairie Levee Dist. v. Wall, 227 Ark. 305, 298 S.W.2d 52 (1957).

Extinguishing Liens.

A decree confirming the state's tax title has the effect of suspending the enforcement of special improvement taxes against the lands during the time the title thereto remains in the state, but does not extinguish the lien of such taxes. Harris v. Little Red River Levee Dist., 188 Ark. 975, 69 S.W.2d 877 (1934).

One who purchases lands from the state after its title has been confirmed must pay the taxes due to levee and drainage districts to extinguish their liens. Harris v. Little Red River Levee Dist., 188 Ark. 975, 69 S.W.2d 877 (1934).

Penalty.

It is error to refuse to give judgment for the penalty. Overstreet v. Levee Dist. of Conway County, 80 Ark. 462, 97 S.W. 676 (1906).

Vesting of Title.

One who purchases land under a sale pursuant to a decree enforcing a lien for levee acquires at least a prima facie title which is good against all the world until overcome by one showing a better title. Robinson v. Cross, 98 Ark. 110, 134 S.W. 954 (1911).

Title to mineral interest in land vested in levee district through purchase of land in foreclosure suits brought for the collection of delinquent levee assessments where former owners instead of applying for relief stood by for more than 10 years and permitted the land to be sold to the district and the period of redemption to expire. Long Prairie Levee Dist. v. Wall, 227 Ark. 305, 298 S.W.2d 52 (1957).

14-123-416. Redemption.

However, at any time within two (2) years after the rendition of the final decree of the chancery court as provided in § 14-123-415, the owner of the lands may file his petition in the court rendering the decree alleging the payment of the assessments on the lands for which they were sold. Upon the establishment of that fact, the court shall vacate and set aside the decree.

History. Acts 1879, No. 78, § 14, p. 117; 1887, No. 86, § 6, p. 132; 1897, No. 8, § 2, p. 8; C. & M. Dig., § 6836; Pope's Dig., § 4562; A.S.A. 1947, § 21-631.

Cross References. Redemption of land, § 14-86-1105.

Case Notes

Payment.

To redeem from drainage and levee taxes, a purchaser of the state's tax title must pay such improvement taxes accruing both before and after the state's tax title was acquired. Harris v. Little Red River Levee Dist., 188 Ark. 975, 69 S.W.2d 877 (1934).

Persons in possession of the land under color of title had the right to redeem the land by paying the amount prescribed. Beck v. DeFir, 227 Ark. 112, 296 S.W.2d 396 (1956).

14-123-417. Parties defendant.

All persons having any interest in the lands or recorded liens thereon, known to the directors, shall be made parties defendant to the suit and shall be bound thereby and by the judgment and decree rendered therein.

History. Acts 1879, No. 78, § 15, p. 117; 1887, No. 86, § 7, p. 132; 1897, No. 8, § 3, p. 8; C. & M. Dig., § 6837; Pope's Dig., § 4563; A.S.A. 1947, § 21-633.

14-123-418. Trial procedure.

  1. Suits shall be conducted in accordance with the practice and proceedings of chancery courts in this state, except as herein otherwise provided, and except:
    1. Neither attorneys for nonresident defendants nor guardians ad litem, nor any provision of § 16-65-403 [repealed] shall be required; and
    2. Suits may be disposed of on oral testimony as in ordinary suits at law; and
    3. This law shall be liberally construed to give the assessment lists the effect of bona fide mortgages for a valuable consideration, and a first lien upon the lands as against all persons having any interest therein.
  2. No informality or irregularity in holding the meetings, or in the description or valuation of the lands, or in the names of the owners, or the number of acres therein, shall be valid defense to the action.
  3. This act shall apply to all suits that may be brought for the collection of assessments heretofore levied that may be brought after the passage of this act.

History. Acts 1879, No. 78, § 16, p. 117; 1887, No. 86, § 8, p. 132; 1897, No. 8, § 4, p. 8; C. & M. Dig., § 6838; Pope's Dig., § 4564; A.S.A. 1947, § 21-634.

Publisher's Notes. In reference to the term “passage of this act,” Acts 1897, No. 8, was signed by the Governor and became effective on February 6, 1897.

Meaning of “this act”. See note to § 14-123-415.

Cross References. Payment of levee and drainage taxes in instalments, § 14-120-110.

Case Notes

Cited: Davidson v. Hartsfield, 250 Ark. 1072, 468 S.W.2d 774 (1971).

14-123-419. Annual tax.

For the purpose of paying the expenses mentioned in § 14-123-316, for keeping the levees in each district in repair, and to meet the incidental and contingent expenses of the district, there shall be levied and collected off the lands as reported as benefited by the assessors an annual tax not to exceed five (5) mills on the dollar of the value of the lands as assessed for state and county purposes, to be levied, extended, and collected as state and county taxes are now collected by the officer authorized to levy and collect the tax. The taxes shall be extended on the tax books of the county against the lands so taxable as aforesaid, and to be paid over by the county collector to the treasurer of the levee district in coin or legal tender currency of the United States. The amount of the tax, not exceeding the rate percent aforesaid, shall be voted on at a meeting of the landholders of the district called by notice given as required by § 14-123-403, and the tax so certified to the county court of the county by the directors of the district on or before the day fixed by law for levying county and state taxes and making annual appropriations for the county.

History. Acts 1879, No. 78, § 20, p. 117; 1895, No. 26, § 2, p. 30; C. & M. Dig., § 6843; Pope's Dig., § 4569; A.S.A. 1947, § 21-635.

14-123-420. Protection of persons injured by change of levee location.

  1. In all cases where the board of directors or commissioners of any levee district has, prior or subsequent to the passage of this act, agreed, contracted, or promised, formally or informally, to pay any landowner or landowners for damages to land caused by withdrawal of levee protection therefrom, or by enclosing the land within a loop or circle of the levee, or surrounding the land by the levee, the agreement, contract, promise, or understanding, when evidenced by a writing, whether a formal contract or a resolution of the board or other instrument, shall be valid and enforceable between the parties, except as to the amount of the damages, and amount of the damages which the landowner or landowners will sustain by reason of a change of the levee as provided in this section shall be assessed in the manner provided by Acts 1905, No. 53 [repealed].
  2. Damage shall include all damages which will result from the change in the position of the levee including injuries to natural and artificial drainage, withdrawal of levee protection therefrom, enclosing the lands within a loop or circle of the levees surrounding the lands by the levee, the inconvenience in passing over the levees, injury to crops and houses on the right-of-way injured or destroyed by the reconstruction of the levees, and any other damages which may be caused by the change in the location of the levees.
  3. The damages shall be recoverable, although the change in the levee may have been made upon the request of the federal government under and by virtue of the powers vested in it by the acts of Congress called “Flood Control.”

History. Acts 1932 (2nd Ex. Sess.), No. 14, §§ 1, 2, p. 31; Pope's Dig., §§ 4579, 4580; A.S.A. 1947, § 21-636.

Publisher's Notes. In reference to the term “passage of this act,” Acts 1932 (2nd Ex. Sess.), No. 14, was signed by the Governor and became effective on April 14, 1932.

Acts 1905, No. 53, referred to in this section, was superseded by Acts 1945, No. 177, which is codified as §§ 18-15-100118-15-1010. Acts 1905, No. 53, was subsequently repealed by Acts 1953, No. 62, § 1.

U.S. Code. The Flood Control Acts of Congress referred to in this section are codified primarily as 33 U.S.C. § 701 et seq.

Case Notes

Agreements.

The legislature, having passed this section, could validate, by subsequent legislation, a contract by the levee district to pay damages for the withdrawal of levee protection to a landowner who had paid levee taxes for 30 years. Howington v. Friend, 187 Ark. 411, 61 S.W.2d 62 (1933).

Where an assessment of damages for the withdrawal of levee protection made by appraisers was accepted by the landowners and the directors of the district agreed to pay the assessment before the passage of this section, the agreement was validated by this section, and a later resolution of the directors was merely a recognition and compromise of the original agreement. Crain v. Board of Directors, 190 Ark. 305, 79 S.W.2d 87 (1935).

Settlements.

Settlement between district and landowner for construction of setback levee did not bar suit for damages by landowner against district as result of old levee being removed where parties had made prior settlement with understanding that old levee would be retained. White River Levee Dist. v. Beeman, 219 Ark. 935, 245 S.W.2d 807 (1952).

Cited: Gladish v. Drainage Dist. of Mississippi County, 217 Ark. 411, 230 S.W.2d 490 (1950).

14-123-421. Authority to issue remaining bonds.

  1. Any levee district in the State of Arkansas, organized under general or special laws, which has not yet issued and sold all the bonds authorized to be issued by the district or by its board of directors or commissioners, may issue, in its own name or in the name of its board of directors or commissioners, as directed by the laws authorizing their issuance, the remaining bonds authorized in serial form and with such maturities as the board of directors or commissioners may determine to be for the best interests of the district.
  2. The bonds may be made registrable as to principal only at the option of the holder or holders and may be made callable at the option of the board of directors or board of commissioners at any time to be fixed by the board.

History. Acts 1934 (3rd Ex. Sess.), No. 5, § 1; Pope's Dig., § 4572; A.S.A. 1947, § 21-637.

Case Notes

Damages.

Where the amount of damages to be sustained by a levee district in acquiring a right-of-way needed in relocating its foundation had been ascertained, the district, needing money to pay therefor, was authorized to pay for the land by issuing its bonds at par to the landowners. Hornor v. Craggs, 185 Ark. 1155, 51 S.W.2d 861 (1932) (decision under prior law).

14-123-422. Report of state lands sold by levee districts.

  1. On or before May 1 in each year after the passage of this act, the president and secretary of each of the levee boards created under the laws of this state and holding lands by virtue of any acts passed by the General Assembly of the State of Arkansas, donating lands to the several levee districts in the state, shall file with the Commissioner of State Lands a list of all lands disposed of by their respective boards the preceding year, showing the sections or parts of sections disposed of, the respective purchasers of each tract, and the date of sale. The first report shall contain a list showing a description of all the lands previously sold and the respective purchasers of each tract.
  2. Upon receipt of the report, it shall be the duty of the Commissioner of State Lands to certify down to the clerks of the respective counties, a list of all lands sold, to the end that they may be listed for taxation.
  3. Upon failure of any levee board or boards to comply with subsection (a) of this section, the clerks of the respective counties in which the lands of the district or districts are situated shall list all of the lands of the district or districts for taxation, and the lands shall be taxed as lands of all private individuals, corporations, and companies.

History. Acts 1901, No. 94, §§ 1-3, p. 160; C. & M. Dig., §§ 6585, 9927; Pope's Dig., §§ 8616, 13694; A.S.A. 1947, §§ 21-641 — 21-643.

Publisher's Notes. In reference to the term “passage of this act,” Acts 1901, No. 94, was signed by the Governor and became effective on April 11, 1901.

Subchapter 5 — Districts in Four or More Counties

Effective Dates. Acts 1929, No. 75, § 6: approved Mar. 2, 1929. Emergency clause provided: “It is ascertained that the affairs and needs of large levee districts, which are quasi-public corporations and agencies, demand a reorganization of their boards of directors on a more representative basis, in order to function more successfully; that delay in such reorganization will greatly impair the efficacy of such agencies; and that the immediate operation of this act is imperative. An emergency is therefore declared, and this act shall take effect and be in force from and after its passage.”

Acts 1951, No. 126, § 3: approved Feb. 20, 1951. Emergency clause provided: “It is ascertained and hereby declared that in levee districts in which compensation of officers, employees, tax collectors and assessors is fixed by legislative act, the compensation paid to such officers, employees, tax collectors and assessors is not commensurate with the services rendered, thereby impairing the successful operation of such districts. An emergency is therefore declared to exist and this Act shall take effect and be in full force from and after its passage.”

Acts 1967, No. 57, § 3: approved Feb. 9, 1967. Emergency clause provided: “It is ascertained and hereby declared that in levee districts in which the compensation of officers, employees, tax collectors and assessors and the per diem of its members are fixed by legislative acts, the compensation and per diem paid is not commensurate with the services rendered, thereby impairing the efficient operation of such districts. An emergency is therefore declared to exist and this Act shall take effect and be in full force and effect from and after its passage.”

Acts 1981, No. 968, § 4: became law without Governor's signature, Apr. 8, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that Section 1 of Act 75 of 1929 requires that any county having lands that lie in certain levee districts, which are not now assessed for levee taxes, must have one (1) levee director, and that such law is inequitable, and that this Act is immediately necessary to eliminate such inequity. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

14-123-501. Directors.

    1. The board of directors of any levee district embracing lands in four (4) or more counties shall consist of one (1) director for every one hundred thousand (100,000) acres, and for a fraction or more than fifty thousand (50,000) acres, of lands on which taxes are assessed by the district in each of the respective counties. However, any county which has more than one hundred thousand (100,000) acres and less than one hundred fifty thousand (150,000) acres embraced in any levee district, subject to a levee tax, shall have two (2) levee directors.
    2. This subsection is not intended to cut short the term of any member of the board of directors of any levee district, but is intended to eliminate the requirement that any county having lands embraced in a levee district under this section of which are not assessed for levee taxes have one (1) levee director, provided that provision is only to be eliminated upon the expiration of the term of the levee director or if a vacancy occurs in that levee director's office prior to the expiration of his term, that position shall then be abolished.
    1. The Governor shall appoint directors in conformity to this section for existing districts, who shall serve for a term of four (4) years and until their successors are elected and qualified.
    2. On the first Monday in November 1933 and every (4) years thereafter, one (1) director shall be elected from each county or division, as the case may be, in the manner provided by law, who shall serve for a term of four (4) years and until his successor is elected and qualified.
  1. Any resident of a county whose lands are embraced in any levee district and is otherwise eligible to serve as a levee director shall not be required to reside in the land embraced in the levee district division of the county.
  2. The directors shall organize by electing one (1) of their number as president.
  3. They shall also employ other officers and employees as are necessary in the discretion of the board.
  4. The new board shall be the legal successor to the old.

History. Acts 1929, No. 75, §§ 1-4; Pope's Dig., §§ 4592-4595; Acts 1981, No. 968, §§ 1, 2; A.S.A. 1947, §§ 21-644 — 21-647.

14-123-502. Compensation of officers, employees, etc.

  1. The board of directors or board of commissioners of levee districts embracing land in four (4) or more counties within the state shall have the power to fix the amount of compensation to be paid to all officers, employees, tax collectors, and assessors of the district and to fix the amount of per diem to be paid to members of the board of directors for attendance at all meetings.
  2. “Compensation” means all salaries, retirement allowances, group insurance, medical benefits, work uniforms, meals, housing, and anything else of value that the district provides in return for the work done by its officers and employees.

History. Acts 1951, No. 126, § 1; 1957, No. 98, § 1; 1967, No. 57, § 1; A.S.A. 1947, §§ 21-648, 21-648.1.

Case Notes

Retirement Plans.

Levee district did not have authority to put into effect retirement plan for officers and employees. Daggett v. St. Francis Levee Dist., 226 Ark. 545, 291 S.W.2d 254 (1956).

14-123-503. Tax collectors and assessors generally.

The board of directors or board of commissioners of levee districts embracing lands in four (4) or more counties within the state shall appoint tax collectors and assessors for each county within the district as is now provided by existing laws, but no tax collector or assessor shall be related by blood or marriage within the fourth degree to any member of the board of directors of such levee district.

History. Acts 1951, No. 86, § 1; A.S.A. 1947, § 21-649.

14-123-504. Tax collector's bond.

  1. The tax collectors in all levee districts embracing land in four (4) or more counties within the state shall each give bond, payable to the president of the board of levee directors, and his successors in office, in an amount to be fixed by the board of directors of the levee district.
  2. The bond shall be executed by the collector as principal and by some surety company authorized to do business in the State of Arkansas as surety.
  3. The treasurer of the board of directors of the levee district is authorized to pay the premiums on the bonds with funds of the levee district.

History. Acts 1951, No. 85, § 1; A.S.A. 1947, § 21-650.

14-123-505. Remittance by tax collector.

During the period permitted for the collection of levee taxes in levee districts embracing lands in four (4) or more counties within the state, each tax collector shall make remittance of all collections to the treasurer of the board of directors every ten (10) days or more often if required by the board of directors to do so.

History. Acts 1951, No. 86, § 2; A.S.A. 1947, § 21-651.

14-123-506. Tax collector's report — Final settlement.

  1. When the time for payment of levee taxes as provided by law shall have expired, the several collectors of taxes shall cease to collect the taxes and shall at once make up a report to the board of directors of the district of all taxes collected for the current year.
  2. This report, together with the tax books, shall be delivered by the collector to the board on or before December 15. At the time of delivery of the report and tax books, the collector shall make final settlement with the board for all taxes collected during the current year.
  3. If any such collector shall fail to make final settlement within the time herein fixed, he shall be chargeable with a penalty for each day that he may be delinquent with the settlement, in a sum equal to five percent (5%) of the amount of compensation to which he would otherwise be entitled.

History. Acts 1951, No. 86, § 3; A.S.A. 1947, § 21-652.

14-123-507. List of uncollected taxes.

  1. The collector shall also file with the clerk of the chancery court of the county for which he is collector of levee taxes, at the time as is now required by law, a list of all uncollected levee taxes, showing thereon the name of the supposed owner, the description of the delinquent property, the amount of the uncollected tax, and all penalties.
  2. The list shall have affixed thereto an affidavit of the collector verifying its correctness.
  3. The collector shall also deliver a copy of the list to the secretary of the levee district.

History. Acts 1951, No. 86, § 4; A.S.A. 1947, § 21-653.

Chapter 124 Alternative Method of Assessment and Collection of Taxes in Levee Improvement Districts of More Than One County

Cross References. Partition of assessments among several owners of a single tract, § 14-86-601.

Publication of notice, § 16-3-101 et seq.

Reassessment of benefits, §§ 14-120-108, 14-120-109.

14-124-101. Resolution required.

This subchapter shall not be in force as to any district until a proper resolution to that effect is adopted by the board of directors of the district, and a copy of the resolution is published in a newspaper in each county which, or a part of which, is embraced in the levee district.

History. Acts 1941, No. 287, § 16; A.S.A. 1947, § 21-716.

14-124-102. Appointment of assessor in each county.

The board of directors or commissioners of levee districts embracing parts of more than one (1) county, at an annual meeting or at a special meeting called for the purpose, shall appoint a landowner in each county or part of a county in the levee district who shall assess the annual benefit accruing by reason of levee protection to the lands, town lots, suburban lots, rural lots, industrial plants, railroads, tramroads, telegraph and telephone lines, electric high power lines in his county or part of a county in books to be furnished by the levee district for that purpose.

History. Acts 1941, No. 287, § 1; A.S.A. 1947, § 21-701.

14-124-103. Filing assessment.

Each assessor, on completing his assessment, shall file it in the office of the board of directors or commissioners at the domicile of the district, where it shall be open to public inspection.

History. Acts 1941, No. 287, § 2; A.S.A. 1947, § 21-702.

14-124-104. Calling a meeting of assessors — Creation of board of assessment and equalization.

When all the assessments have been filed, the president of the levee district shall call a meeting of the assessors to be held in the office of the district at its domicile to sit as a board of assessment and equalization.

History. Acts 1941, No. 287, § 3; A.S.A. 1947, § 21-703.

14-124-105. Notice of meeting.

Notice of the time and place of the meeting shall be published once a week for two (2) consecutive weeks in some newspaper in each county which, or a part of which, is embraced in the levee district:

  1. Notifying all property owners that at the meeting the board of assessment and equalization would sit to correct all wrongful or erroneous assessments and to equalize the assessments throughout the district; and
  2. Calling on all persons who are or may be aggrieved by the assessment of their property, or of the various classes of property, to appear and present their grievances and otherwise protect their interest.

History. Acts 1941, No. 287, § 4; A.S.A. 1947, § 21-704.

14-124-106. Organization of board — Record of proceedings.

  1. The assessors shall meet as a board of assessment and equalization at the time and place specified in the notice and shall elect one (1) of their members as chairman and another as secretary.
  2. The levee district shall furnish a stenographer who shall take and transcribe all the testimony introduced before the board.
  3. The board shall keep a true and perfect record of its proceedings which shall be filed as a public record in the office of the levee district.
  4. A copy of the record, certified by the secretary of the levee district, shall be competent evidence in the courts.

History. Acts 1941, No. 287, § 5; A.S.A. 1947, § 21-705.

14-124-107. Powers and duties of board.

  1. The board shall:
    1. Hear all complaints filed before it, which shall be in writing;
    2. Correct all wrongful or erroneous assessments; and
    3. Equalize the assessments of all classes of property throughout the district so as to make them uniform.
  2. The board shall have the power to lower assessments that are intrinsically or relatively too high and to raise assessments that are intrinsically or relatively too low.
  3. Inequalities among assessments in one (1) class shall not be ground of complaint by property owners in another class if the class as a whole bears its just proportion of the burden of levee protection.
  4. When an assessment is made and equalized as provided in this chapter, it shall remain the assessment for the district until a new assessment is made pursuant to an order of the board of directors or commissioners.
  5. The assessment books for the several counties shall be corrected to conform to the action of the board.

History. Acts 1941, No. 287, § 6; A.S.A. 1947, § 21-706.

14-124-108. Units for assessment purposes — Assessments according to benefits accruing.

  1. The assessors for the several counties and the board of assessment and equalization may adopt such units for assessment purposes as they deem practicable and advisable, such as the acre for rural lands; the lot for real estate in cities, towns, and villages; the plant and the land on which it is located for industrial properties; and the mile for railroads, tramroads, telegraph and telephone lines, electric high power lines, and rural electrification lines.
  2. They shall assess the properties in each class according to the special benefits which accrue by reason of levee protection to property of the character embraced in the particular class.

History. Acts 1941, No. 287, § 7; A.S.A. 1947, § 21-707.

14-124-109. Chancery court review of assessment.

  1. Any person aggrieved by an assessment made or equalized by the board of assessment and equalization may have the assessment reviewed by the chancery court of the county in which the property is situated or by the chancery court of the county in which the district has its domicile if the property involved is in more than one (1) county.
  2. Review shall be heard on the evidence introduced before the board of assessment and equalization. No additional or different evidence shall be admissible except on an issue of corrupt purpose or fraudulent action on the part of the board of assessment and equalization resulting in a wrongful and discriminatory assessment.
  3. The right of review provided herein shall be construed to be a part of the administrative remedy for relief from wrongful or erroneous assessments.

History. Acts 1941, No. 287, § 8; A.S.A. 1947, § 21-708.

14-124-110. Petition for review.

The petition for review shall be filed within thirty (30) days from the date when the assessment is completed and would, except for the purpose of review, become effective. A copy of the petition shall be delivered to the president of the district, or to the chairman of its board of directors or commissioners.

History. Acts 1941, No. 287, § 9; A.S.A. 1947, § 21-709.

14-124-111. Hearing — District assessment conclusive in absence of review.

  1. The court shall hear the petition as expeditiously as possible, and it shall have the power to lower, raise, equalize, and determine the proper amount of benefit assessable against the property described in the petition.
  2. The amount and legality of an assessment made by any district, in the absence of a petition for a review, shall be conclusive.

History. Acts 1941, No. 287, § 10; A.S.A. 1947, § 21-710.

14-124-112. Certification of assessment.

As soon as the court determines the proper assessment of benefits under any petition pending before it, the clerk of the court shall promptly certify such assessment to the district, so that the district taxes may be extended against it.

History. Acts 1941, No. 287, § 11; A.S.A. 1947, § 21-711.

14-124-113. Appeal to Supreme Court.

  1. An appeal may be prosecuted from the assessment as fixed by the court, but the transcript shall be filed with the Clerk of the Supreme Court within sixty (60) days from the rendition of the decree of the chancery court.
  2. The Supreme Court shall advance the appeal on its docket as involving a matter of public interest.

History. Acts 1941, No. 287, § 12; A.S.A. 1947, § 21-712.

14-124-114. Suits to collect taxes.

In suits by a levee district to collect taxes on any property in the custody of a court other than that in which the tax suit is brought, the decree shall simply be for the amount of the tax adjudged to be due. The district shall file a certified copy of the decree in the court having the custody of the property for appropriate action for the payment of the tax.

History. Acts 1941, No. 287, § 13; A.S.A. 1947, § 21-713.

14-124-115. Levy of tax — Limitation on rate.

  1. The board of directors or commissioners shall annually, at a regular meeting or at a special meeting called for that purpose, levy a tax on the benefits as assessed and equalized by the board of assessment and equalization.
  2. The rate of the tax shall be subject to the limitation, for the equal protection of all classes of property, that the tax on rural lands according to the rate shall not exceed twenty-five cents (25¢) an acre.

History. Acts 1941, No. 287, § 14; A.S.A. 1947, § 21-714.

14-124-116. Tax as lien.

The tax shall constitute a lien on the property in the district, shall be payable at the time and subject to the penalties for nonpayment, and shall be collected, except as specified in this chapter, in the manner provided by law.

History. Acts 1941, No. 287, § 15; A.S.A. 1947, § 21-715.

Chapter 125 Conservation Districts Law

Subchapter 1 — General Provisions

A.C.R.C. Notes. Acts 2005, No. 1243, § 2, provided:

“Arkansas Soil and Water Conservation Commission renamed ‘Arkansas Natural Resources Commission’.

“(a)(1) The ‘Arkansas Soil and Water Conservation Commission’ as it is referred to or empowered throughout the Arkansas Code, is renamed.

“(2) In its place, the ‘Arkansas Natural Resources Commission’ is established, succeeding to the general powers and responsibilities previously assigned to the Arkansas Soil and Water Conservation Commission.

“(3) The Executive Director of the Arkansas Soil and Water Conservation Commission is directed to identify and revise all interagency agreements, financial instruments, funds, and other necessary legal documents in order to effect this change.

“(b) Nothing in this act shall be construed as impairing the powers and authorities of the Arkansas Soil and Water Conservation Commission before the effective date of the name change.”

Effective Dates. Acts 1963, No. 14, §§ 11-17, 20: Feb. 8, 1963. Sections 11-17 effective Apr. 1, 1963. Emergency clause provided: “It has been found that notwithstanding the fact that the Commission will not have the functions performable by it hereunder until April 1, 1963, it is necessary that immediate action be taken by the Governor to appoint, and by the Senate to confirm the appointment of, the members of the Commission in order that the Commission may organize and begin to prepare its plan of operations so that there may be no disruption of service on and after that date, and that only by the immediate operation of this act may such condition be obviated. Therefore, an emergency is hereby declared to exist, and this act being necessary for the preservation of the public peace, health and safety shall take effect and be in full force from and after its passage and approval.”

Acts 1973, No. 140, § 4: Feb. 16, 1973. Emergency clause provided: “It is found and is hereby declared by the General Assembly of the State of Arkansas that conservation district elections are scheduled to be held in many districts throughout the State of Arkansas in March, 1973, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health and safety, shall take effect and be in force from the date of its approval.”

Research References

ALR.

Local use zoning of wetlands or flood plain as taking without compensation. 19 A.L.R.4th 756.

14-125-101. Title.

This chapter may be known and cited as the “Conservation Districts Law.”

History. Acts 1937, No. 197, § 1; Pope's Dig., § 11833; Acts 1963, No. 14, § 12; 1969, No. 181, § 1; A.S.A. 1947, § 9-901.

14-125-102. Legislative determination — Soil condition.

It is declared, as a matter of legislative determination:

  1. That the farm and grazing lands of the State of Arkansas are among the basic assets of the state and that the preservation of these lands is necessary to protect and promote the health, safety, and general welfare of its people;
  2. That improper land-use practices have caused and have contributed to, and are now causing and contributing to, a progressively more serious erosion of the farm and grazing lands of this state by water and wind;
  3. That the breaking of natural grass, plant, and forest cover have interfered with the natural factors of soil stabilization, causing loosening of soil and exhaustion of humus and developing a soil condition that favors erosion;
  4. That the topsoil is being washed and blown out of the fields and pastures;
  5. That there has been an accelerated washing of sloping fields;
  6. That these processes of erosion by water and wind speed up with removal of absorptive topsoil, causing exposure of less absorptive and less protective but more erosive subsoil;
  7. That failure by any landowner to conserve the soil and control erosion upon his lands causes a washing and blowing of soil and water from his lands onto other lands and makes the conservation of soil and control of erosion on such other lands difficult or impossible.

History. Acts 1937, No. 197, § 2; Pope's Dig., § 11834; A.S.A. 1947, § 9-902.

14-125-103. Legislative determination — Consequences of erosion.

It is declared, as a matter of legislative determination, that the consequences of soil erosion in the form of soil-washing and soil-blowing are:

  1. The silting and sedimentation of stream channels, reservoirs, dams, ditches, and harbors;
  2. The loss of fertile soil material in dust storms;
  3. The piling up of soil on lower slopes and its deposit over alluvial plains;
  4. The reduction in productivity or outright ruin of rich bottom lands by overwash of poor subsoil material, sand, and gravel swept out of the hills;
  5. Deterioration of soil and its fertility, deterioration of crops grown thereon, and declining acre yields despite development of scientific processes for increasing such yields;
  6. Loss of soil and water which causes destruction of food and cover for wildlife;
  7. A washing and blowing of soil into streams which silts over spawning beds and destroys water plants, diminishing the food supply of fish;
  8. A diminishing of the underground water reserve, which causes water shortages, intensifies periods of drought, and causes crop failures;
  9. An increase in the speed and volume of rainfall runoff, causing severe and increasing floods, which bring suffering, disease, and death;
  10. Impoverishment of families attempting to farm eroding and eroded lands;
  11. Damage to roads, highways, railways, farm buildings, and other property from floods and from dust storms; and
  12. Losses in navigation, hydroelectric power, municipal water supply, irrigation developments, farming, and grazing.

History. Acts 1937, No. 197, § 2; Pope's Dig., § 11834; A.S.A. 1947, § 9-902.

14-125-104. Legislative determination — Improvements.

It is declared, as a matter of legislative determination, that to control and prevent soil erosion, to prevent floodwater and sediment damages, and to further the conservation, development, and utilization of soil and water resources and the disposal of water, it is necessary:

  1. That land-use practices contributing to soil wastage and soil erosion be discouraged and discontinued, and appropriate soil-conserving land-use practices and works of improvement for flood prevention or the conservation, development, and utilization of soil and water resources and the disposal of water be adopted and carried out;
  2. That among the works of improvement and procedures needed are:
    1. The carrying on of engineering operations such as the construction of terraces, terrace outlets, check dams, desilting basins, floodwater-retarding structures, channel improvements, floodways, dikes, ponds, ditches, and the like;
    2. The utilization of strip cropping, lister furrowing, contour cultivating, and contour furrowing;
    3. Land drainage;
    4. Land irrigation;
    5. Seeding and planting of waste, sloping, abandoned, or eroded lands to water-conserving and erosion-preventing plants, trees, and grasses;
    6. Forestation and reforestation;
    7. Rotation of crops;
    8. Soil stabilization with trees, grasses, legumes, and other thick-growing, soil-holding crops;
    9. Retardation of run-off of increasing absorption of rainfall;
    10. Retirement from cultivation of steep, highly erosive areas and areas now badly gullied or otherwise eroded;
    11. Fish and wildlife or recreational developments;
    12. The storage, transportation, and sale of water for irrigation, municipal or industrial water supply purposes; and
    13. Rural domestic water supply systems.

History. Acts 1937, No. 197, § 2; Pope's Dig., § 11834; Acts 1965, No. 424, § 1; A.S.A. 1947, § 9-902.

14-125-105. Legislative policy.

It is declared to be the policy of the General Assembly to provide for the control and prevention of soil erosion, for the prevention of floodwater and sediment damages, and for furthering the conservation, development, and utilization of soil and water resources and the disposal of water, and thereby to preserve natural resources, control floods, prevent impairment of dams and reservoirs, assist in maintaining the navigability of rivers and harbors, preserve wildlife, assist in the control of nonpoint source pollution, protect the tax base, protect public lands, and protect and promote the health, safety, and general welfare of the people of this state.

History. Acts 1937, No. 197, § 2; Pope's Dig., § 11834; Acts 1965, No. 424, § 1; A.S.A. 1947, § 9-902; Acts 2003, No. 1060, § 2.

Amendments. The 2003 amendment inserted “assist in the control of nonpoint source pollution.”

14-125-106. Definitions.

As used in this chapter, unless the context otherwise requires:

  1. “District,” “conservation district,” “soil conservation district,” or “soil and water conservation district” means a governmental subdivision of this state and a public body, corporate and politic, organized in accordance with the provisions of this chapter for the purposes, with the powers, and subject to the provisions, herein set forth. All districts created under this chapter shall be known as conservation districts and shall have all the powers and duties set out in this chapter;
  2. “Director” means one (1) of the members of the governing body of a district, elected or appointed in accordance with the provisions of this chapter;
  3. “Petition” means a petition filed under the provisions of § 14-125-201 for the creation of a district;
  4. “Nominating petition” means a petition filed under the provisions of § 14-125-302 to nominate candidates for the office of director of a soil conservation district;
  5. “State” means the State of Arkansas;
  6. “Agency of this state” includes the government of this state and any subdivision, agency, or instrumentality, corporate or otherwise, of the government of this state;
  7. “United States” or “agencies of the United States” includes the United States of America, the Soil Conservation Service of the United States Department of Agriculture, and any other agency or instrumentality, corporate or otherwise, of the United States of America;
  8. “Government” or “governmental” includes the government of this state, the Government of the United States, and any subdivision, agency, or instrumentality, corporate or otherwise, of either of them;
  9. “Landowner” or “owner of land” includes any person, firm, or corporation who shall hold title to or shall have contracted to purchase any lands lying within a district organized under the provisions of this chapter;
  10. “Due notice” means notice published at least twice, with an interval of at least seven (7) days between the two (2) publication dates, in a newspaper or other publication of general circulation within the appropriate area, or posted at a reasonable number of conspicuous places within the appropriate areas. This posting shall include, where possible, posting at public places where it may be customary to post notices concerning county or municipal affairs generally. At any hearing held pursuant to the notice, at the time and place designated in the notice, adjournment may be made from time to time without the necessity of renewing the notice for the adjourned dates;
  11. “Plan for works of improvement” or “improvement plan” means a plan for works of improvement, adopted by the board of directors of a district and approved by the chancery court, for an improvement project area established under this chapter;
  12. “Improvement project area” or “project area” means an area established under the provisions of this chapter within a soil and water conservation district or districts for the carrying out of a plan for works of improvement;
  13. “Qualified elector” means any owner of land within the district who is registered to vote under the election laws of the State of Arkansas.

History. Acts 1937, No. 197, § 3; Pope's Dig., § 11835; Acts 1963, No. 14, § 13; 1965, No. 424, § 2; 1969, No. 181, § 2; A.S.A. 1947, § 9-903.

14-125-107. Chapter controlling.

Insofar as any of the provisions of this chapter are inconsistent with the provisions of any other law, the provisions of this chapter shall be controlling.

History. Acts 1937, No. 197, § 14; A.S.A. 1947, § 9-913n.

14-125-108. Development of soil conservation program — Powers and duties of commission.

  1. The Arkansas Natural Resources Commission in cooperation with the land grant college in the state shall develop a program for soil conservation and for other purposes as provided for in this chapter, which shall be recognized as the state's policy in soil conservation. It may perform such acts, hold such public hearings, and promulgate such rules as may be necessary for the execution of its functions under this chapter.
  2. The commission may employ technical experts and other agents and employees, permanent and temporary, as it may require, and shall determine their qualifications and duties. The commission may call upon the Attorney General of the state for the legal services it may require. It shall have authority to delegate to its chair, to one (1) or more of its members, or to one (1) or more agents or employees such powers and duties as it may deem proper. Upon request of the commission for the purpose of carrying out any of its functions, the supervising officer of any state agency, or of any state institution of learning may, insofar as may be possible under available appropriations, and having due regard to the needs of the agency to which the request is directed, assign or detail to the commission members of the staff or personnel of the agency or institution of learning, and make special reports, surveys, or studies as the commission may request.
  3. In addition to the duties and powers hereinafter conferred upon the commission, it shall have the following duties and powers:
    1. To offer such assistance as may be appropriate to the directors of soil conservation districts, organized as provided hereinafter, in the carrying out of any of their powers and programs;
    2. To keep the directors of each of the several districts organized under the provisions of this chapter informed of the activities and experience of all other districts organized hereunder and to facilitate an interchange of advice and experience between the districts and cooperation between them;
    3. To coordinate the programs of the several soil conservation districts organized hereunder so far as this may be done by advice and consultation;
    4. To secure the cooperation and assistance of the United States and of any of its agencies, and of agencies of this state, in the work of the districts;
    5. To disseminate information throughout the state concerning the activities and programs of the soil conservation districts organized hereunder and to encourage the formation of the districts in areas where their organization is desirable.

History. Acts 1937, No. 197, § 4; Pope's Dig., § 11836; Acts 1963, No. 14, § 18; 1973, No. 140, § 1; A.S.A. 1947, § 9-904; Acts 2019, No. 315, § 1001.

Amendments. The 2019 amendment deleted “and regulations” following “rules” in the second sentence of (a).

14-125-109. Payments made to district by commission.

  1. For the purpose of aiding the development and general operation of the respective soil conservation districts of this state, the Arkansas Natural Resources Commission is authorized to make payments to the districts from time to time from funds appropriated for that purpose. All payments made to soil conservation districts shall be used for the purposes authorized by law, and no payments may be made to any district that does not comply with the provisions of this section.
    1. Whenever the General Assembly shall have appropriated funds to be used for making payments as authorized by this section, the commission shall annually through its designated employee give notice to all soil conservation districts of this state that applications for payments will be received by the commission on or before a date designated by the commission, which date shall be at least thirty (30) days after the date of notice.
    2. Any soil conservation district desiring to receive payments under the provisions of this section shall make application therefor upon forms furnished by the commission and shall return the application to the commission on or before the date specified by the commission.
    3. All applications for payments shall be signed and verified by the chair and secretary of the board of directors of the soil conservation district.
    4. The application form shall contain a statement that the signers thereof understand the purposes for which payments will be received and that they agree to use the payments for the purpose for which they are made and will be held accountable for any misuse of the payments.
    5. No application for payments shall be considered by the commission that is not prepared and signed according to the rules of the commission or which is received after the date specified by the commission for receiving applications.
  2. Payments made to the various conservation districts of this state shall be used only in furtherance of the purposes of this chapter and shall be in such amounts and with such restrictions as prescribed by the rules of the commission.
      1. Arkansas Legislative Audit may annually audit the books and accounts of each of the soil conservation districts receiving payments under the provisions of this section.
      2. All payments made to the districts shall be used for the purposes provided for in this section.
      1. Any soil conservation district which violates the provisions of this section shall not be eligible for payments under the provisions of this section for three (3) years.
      2. Any member of the board of directors of any soil conservation district or any other person who violates any of the provisions of this section shall be guilty of a misdemeanor.

History. Acts 1957, No. 196, §§ 1-4; 1963, No. 14, § 17; 1969, No. 181, § 5; 1971, No. 160, § 1; 1973, No. 140, § 3; A.S.A. 1947, §§ 9-914 — 9-917; Acts 2005, No. 903, § 1; 2019, No. 315, §§ 1002, 1003.

Publisher's Notes. Acts 1963, No. 14, § 18, provided:

“The following laws and parts of laws enacted by the General Assembly of the State of Arkansas are hereby repealed, effective April 1, 1963: the first four unnumbered sentences of Subsection (A), and all of Subsection (C), of Section 4 of Act 197, approved March 3, 1937; Sections 1 to 8, inclusive, of Act 212, approved March 8, 1937; Section 1 of Act 146, approved March 24, 1941; Sections 4 and 5 of Act 407, approved March 27, 1941; Section 3 of Act 351, approved March 24, 1943; Section 1 of Act 354, approved March 24, 1943; Act 255, approved March 15, 1955; all of Section 3, save only the last sentence thereof, and Paragraphs (a), (b) and (c) of Section 4, of Act 81, approved February 25, 1957.”

Amendments. The 2005 amendment substituted “Division of Legislative Audit may” for “Audit shall” in present (d)(1)(A).

The 2019 amendment deleted “and regulations” following “rules” in (b)(5) and (c).

Subchapter 2 — District Organization

A.C.R.C. Notes. Acts 2005, No. 1243, § 2, provided:

“Arkansas Soil and Water Conservation Commission renamed ‘Arkansas Natural Resources Commission’.

“(a)(1) The ‘Arkansas Soil and Water Conservation Commission’ as it is referred to or empowered throughout the Arkansas Code, is renamed.

“(2) In its place, the ‘Arkansas Natural Resources Commission’ is established, succeeding to the general powers and responsibilities previously assigned to the Arkansas Soil and Water Conservation Commission.

“(3) The Executive Director of the Arkansas Soil and Water Conservation Commission is directed to identify and revise all interagency agreements, financial instruments, funds, and other necessary legal documents in order to effect this change.

“(b) Nothing in this act shall be construed as impairing the powers and authorities of the Arkansas Soil and Water Conservation Commission before the effective date of the name change.”

Effective Dates. Acts 1945, No. 225, § 2: approved Mar. 20, 1945. Emergency clause provided: “It is hereby found and declared to be a fact that in the interest of the public welfare, there is an urgent need to permit the soil conservation districts to vary their boundary lines, and that to do so will make it more convenient to the farmers throughout soil conservation districts to carry on their production program needed in the war effort under the provisions of this act; therefore, this act being necessary for the preservation of the public peace, health and safety of the people of the State of Arkansas, an emergency is declared to exist and this act shall be in force and effect from and after its passage.”

14-125-201. Petition for district organization.

  1. Any twenty-five (25) owners of land lying within the limits of the territory proposed to be organized into a district may file a petition with the Arkansas Soil and Water Conservation Commission asking that a soil conservation district be organized to function in the territory described in the petition.
  2. The petition shall set forth:
    1. The proposed name of the district;
    2. That there is need, in the interest of the public health, safety, and welfare for a soil conservation district to function in the territory described in the petition;
    3. A description of the territory proposed to be organized as a district, which description shall not be required to be given by metes and bounds or by legal subdivisions but shall be deemed sufficient if generally accurate;
    4. A request that:
      1. The Arkansas Soil and Water Conservation Commission duly define the boundaries for the district;
      2. A referendum be held within the territory so defined on the question of the creation of a soil conservation district in the territory; and
      3. The commission determine that such a district be created.
  3. Where more than one (1) petition is filed covering parts of the same territory, the Arkansas Soil and Water Conservation Commission may consolidate all or any such petitions.

History. Acts 1937, No. 197, § 5; Pope's Dig., § 11837; A.S.A. 1947, § 9-905.

14-125-202. Hearings — Determination of necessity and boundaries for district.

  1. Within thirty (30) days after the petition has been filed with the Arkansas Soil and Water Conservation Commission, it shall cause due notice to be given of a proposed hearing upon the question of the desirability and necessity, in the interest of the public health, safety, and welfare, of the creation of the district, upon the question of the appropriate boundaries to be assigned to the district, upon the propriety of the petition and other proceedings taken under this chapter, and upon all questions relevant to such inquiries.
  2. All owners of land within the limits of the territory described in the petition, and of lands within any territory considered for addition to the described territory, and all other interested parties, shall have the right to attend the hearings and to be heard.
  3. If it shall appear upon the hearing that it may be desirable to include within the proposed district territory outside of the area within which due notice of the hearing has been given, the hearing shall be adjourned and due notice of further hearings shall be given throughout the entire area considered for inclusion in the district, and the further hearing held.
  4. After the hearing, if the commission shall determine, upon the facts presented at the hearing and upon such other relevant facts and information as may be available, that there is need, in the interest of the public health, safety, and welfare, for a soil conservation district to function in the territory considered at the hearing, it shall make and record the determination, and shall define, by metes and bounds, or by sections or part-sections, or by legal subdivisions, the boundaries of the district.
  5. In making the determination and in defining the boundaries, the commission shall give due weight and consideration to:
    1. The topography of the area considered and of the state;
    2. The composition of soils therein;
    3. The distribution of erosion;
    4. The prevailing land-use practices;
    5. The desirability and necessity of including within the boundaries the particular lands under consideration and the benefits the lands may receive from being included within the boundaries;
    6. The relation of the proposed area to existing watersheds and agricultural regions; and
    7. Other soil conservation districts already organized or proposed for organization under the provisions of this chapter and such other physical, geographical, and economic factors as are relevant, having due regard to the legislative determination set forth in §§ 14-125-102 — 14-125-104.
  6. The territory to be included within the boundaries need not be contiguous.
  7. If the commission shall determine after the hearing, after due consideration of the relevant facts, that there is no need for a soil conservation district to function in the territory considered at the hearing, it shall make and record the determination and shall deny the petition.
  8. After six (6) months shall have expired from the date of the denial of a petition, subsequent petitions covering the same or substantially the same territory may be filed as aforesaid and new hearings held and determinations made thereon.

History. Acts 1937, No. 197, § 5; Pope's Dig., § 11837; A.S.A. 1947, § 9-905.

14-125-203. Administrative practicability and feasibility generally — Holding referendum.

  1. After the commission has made and recorded a determination that there is need, in the interest of the public health, safety, and welfare, for the organization of a district in a particular territory and has defined the boundaries thereof, it shall consider the question whether the operation of a district within the boundaries with the powers conferred upon soil conservation districts in this chapter is administratively practicable and feasible.
  2. To assist the commission in the determination of administrative practicability and feasibility, it shall be the duty of the commission, within a reasonable time after entry of the findings that there is need for the organization of the proposed district and the determination of the boundaries thereof, to hold a referendum within the proposed district upon the proposition of the creation of the district and to cause due notice of the referendum to be given.
  3. The question shall be submitted by ballots upon which the words “FOR creation of a soil conservation district of the lands below described and lying in the county(ies) of , and ” and “AGAINST creation of a soil conservation district of the lands below described and lying in the county(ies) of and ” shall be printed, with a direction to cross out or scratch off one (1) or the other of the propositions, leaving unmarked the proposition for which the voter wishes to vote.
  4. The ballot shall set forth the boundaries of the proposed district as determined by the commission.
  5. All owners of lands lying within the boundaries of the territory, as determined by the Arkansas Soil and Water Conservation Commission, shall be eligible to vote in the referendum.
  6. Only such landowners shall be eligible to vote.

History. Acts 1937, No. 197, § 5; Pope's Dig., § 11837; A.S.A. 1947, § 9-905.

14-125-204. Expenses and conduct of hearings and referenda.

  1. The Arkansas Natural Resources Commission shall pay all expenses for the issuance of notices and the conduct of the hearings and referenda and shall supervise the conduct of the hearings and referenda.
  2. It shall issue appropriate rules governing the conduct of the hearings and referenda, and providing for the registration prior to the date of the referendum of all eligible voters, or prescribing some other appropriate procedure for the determination of those eligible as voters in the referendum.
  3. No informalities in the conduct of the referendum or in any matters relating thereto shall invalidate the referendum or its result if notice thereof shall have been given substantially as herein provided and the referendum shall have been fairly conducted.

History. Acts 1937, No. 197, § 5; Pope's Dig., § 11837; Acts 1945, No. 225, § 1; 1965, No. 424, § 3; A.S.A. 1947, § 9-905; Acts 2019, No. 315, § 1004.

Amendments. The 2019 amendment substituted “rules” for “regulations” in (b).

14-125-205. Results of referendum — Final determination by commission.

  1. The commission shall publish the result of the referendum and shall thereafter consider and determine whether the operation of the district within the defined boundaries is administratively practicable and feasible.
  2. If the commission shall determine that the operation of the district is not administratively practicable and feasible, it shall record the determination and deny the petition.
  3. If the commission shall determine that the operation of the district is administratively practicable and feasible, it shall record the determination and shall proceed with the organization of the district in the manner hereinafter provided.
  4. In making the determination the commission shall give due regard and weight to the attitudes of the owners of lands lying within the defined boundaries, the number of landowners eligible to vote in the referendum who shall have voted, the proportion of the votes cast in the referendum in favor of the creation of the district to the total number of votes cast, the approximate wealth and income of the landowners of the proposed district, the probable expense of carrying on erosion-control operations within the district, and other economic and social factors as may be relevant to the determination, having due regard to the legislative determinations set forth in §§ 14-125-102 — 14-125-104.
  5. However, the commission shall not have authority to determine that the operation of the proposed district within the defined boundaries is administratively practicable and feasible unless at least two-thirds (2/3) of the votes cast in the referendum upon the proposition of the creation of the district shall have been cast in favor of the creation of the district.

History. Acts 1937, No. 197, § 5; Pope's Dig., § 11837; A.S.A. 1947, § 9-905.

14-125-206. Appointment of directors — Proceedings for organization.

  1. If the commission shall determine that the operation of the proposed district within the defined boundaries is administratively practicable and feasible, it shall appoint two (2) directors to act, with the three (3) directors elected as provided hereinafter, as the governing body of the district.
  2. The district shall be a governmental subdivision of this state and a public body, corporate and politic, upon the taking of the following proceedings:
    1. The two (2) appointed directors shall present to the Secretary of State an application signed by them, which shall set forth, and the application need contain no detail other than the mere recitals:
        1. That a petition for the creation of the district was filed with the Arkansas Soil and Water Conservation Commission pursuant to the provisions of this chapter and that the proceedings specified in this chapter were taken pursuant to the petition;
        2. That the application is being filed in order to complete the organization of the district as a governmental subdivision and a public body, corporate and politic, under this chapter; and
        3. That the commission has appointed them as directors;
      1. The name and official residence of each of the directors, together with a certified copy of the appointments evidencing their right to office;
      2. The term of office of each of the directors;
      3. The name which is proposed for the district; and
      4. The location of the principal office of the directors of the district.
    2. The application shall be subscribed and sworn to by each of the directors before an officer authorized by the laws of this state to take and certify oaths, who shall certify upon the application that he personally knows the directors and knows them to be the officers as affirmed in the application, and that each has subscribed thereto in the officer's presence.
    3. The application shall be accompanied by a statement by the Arkansas Soil and Water Conservation Commission, which shall certify, and such statement need contain no detail other than the mere recitals, that:
      1. A petition was filed, notice issued, and hearing held as aforesaid;
      2. The commission did duly determine that there is need, in the interest of the public health, safety, and welfare, for a soil conservation district to function in the proposed territory and did define the boundaries thereof;
      3. Notice was given and a referendum held on the question of the creation of the district, that the result of the referendum showed two-thirds (2/3) of the votes cast in the referendum to be in favor of the creation of the district, and that thereafter the commission did duly determine that the operation of the proposed district is administratively practicable and feasible.
    4. The statement shall set forth the boundaries of the district as they have been defined by the commission.
    5. The Secretary of State shall examine the application and statement and, if he finds that the name proposed for the district is not identical with that of any other soil conservation district of this state or so nearly similar as to lead to confusion or uncertainty, shall receive and file them and shall record them in an appropriate book of record in his office. If the Secretary of State shall find that the name proposed for the district is identical with that of any other soil conservation district of this state, or so nearly similar as to lead to confusion and uncertainty, he shall certify that fact to the Arkansas Soil and Water Conservation Commission, which shall thereupon submit to the Secretary of State a new name for the district, which shall not be subject to the defects. Upon receipt of the new name, free of such defects, the Secretary of State shall record the application and statement, with the name so modified, in an appropriate book of record in his office.
    6. When the application and statement have been made, filed, and recorded, as provided in this section, the district shall constitute a governmental subdivision of this state and a public body, corporate and politic.
    7. The Secretary of State shall make and issue to the directors a certificate, under the seal of the state, of the due organization of the district and shall record the certificate with the application and statement. The boundaries of the district shall include the territory as determined by the Arkansas Soil and Water Conservation Commission as set out in §§ 14-125-201 and 14-125-202, but in no event shall they include any area included within the boundaries of another soil conservation district organized under the provisions of this chapter.

History. Acts 1937, No. 197, § 5; Pope's Dig., § 11837; Acts 1945, No. 225, § 1; 1965, No. 424, § 3; A.S.A. 1947, § 9-905.

14-125-207. Subsequent petitions for district organization.

After six (6) months shall have expired from the date of entry of a determination by the Arkansas Soil and Water Conservation Commission that operation of a proposed district is not administratively practicable and feasible, and denial of a petition pursuant to the determination, subsequent petitions may be filed as set out in § 14-125-201 and action taken thereon in accordance with the provisions of this chapter.

History. Acts 1937, No. 197, § 5; Pope's Dig., § 11837; A.S.A. 1947, § 9-905.

14-125-208. Petitions to include additional territory.

  1. Petitions for including additional territory within an existing district may be filed with the Arkansas Soil and Water Conservation Commission, and the proceedings herein provided for in the case of petitions to organize a district shall be observed in the case of petitions for inclusion.
  2. The commission shall prescribe the form for such petitions, which shall be as nearly as may be in the form prescribed in this chapter for petitions to organize a district.
  3. Where the total number of landowners in the area proposed for inclusion shall be less than twenty-five (25), the petition may be filed when signed by two-thirds (2/3) of the owners of such areas, and in such case no referendum need be held.
  4. In referenda upon petitions for such inclusion, all owners of land lying within the proposed additional area shall be eligible to vote.

History. Acts 1937, No. 197, § 5; Pope's Dig., § 11837; A.S.A. 1947, § 9-905.

14-125-209. Certificate as evidence.

  1. In any suit, action, or proceeding involving the validity or enforcement of, or relating to, any contract, proceeding, or action of the district, the district shall be deemed to have been established in accordance with the provisions of this chapter upon proof of the issuance of a certificate by the Secretary of State pursuant to § 14-125-206.
  2. A copy of the certificate duly certified by the Secretary of State shall be made admissible in evidence in any such suit, action, or proceeding and shall be proof of the filing and contents thereof.

History. Acts 1937, No. 197, § 5; Pope's Dig., § 11837; A.S.A. 1947, § 9-905.

Subchapter 3 — Board of Directors

A.C.R.C. Notes. Acts 2005, No. 1243, § 2, provided:

“Arkansas Soil and Water Conservation Commission renamed ‘Arkansas Natural Resources Commission’.

“(a)(1) The ‘Arkansas Soil and Water Conservation Commission’ as it is referred to or empowered throughout the Arkansas Code, is renamed.

“(2) In its place, the ‘Arkansas Natural Resources Commission’ is established, succeeding to the general powers and responsibilities previously assigned to the Arkansas Soil and Water Conservation Commission.

“(3) The Executive Director of the Arkansas Soil and Water Conservation Commission is directed to identify and revise all interagency agreements, financial instruments, funds, and other necessary legal documents in order to effect this change.

“(b) Nothing in this act shall be construed as impairing the powers and authorities of the Arkansas Soil and Water Conservation Commission before the effective date of the name change.”

Effective Dates. Acts 1947, No. 338, § 2: effective on passage.

Acts 1973, No. 140, § 4: Feb. 16, 1973. Emergency clause provided: “It is found and is hereby declared by the General Assembly of the State of Arkansas that conservation district elections are scheduled to be held in many districts throughout the State of Arkansas in March, 1973, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health and safety, shall take effect and be in force from the date of its approval.”

Acts 1977, No. 295, § 2: July 1, 1977. Emergency clause provided: “It is hereby found and determined by the Seventy-First General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1977 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1977 could work irreparable harm upon the proper administration and providing of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after July 1, 1977.”

Acts 1981, No. 755, § 21: July 1, 1981. Emergency clause provided: “It is hereby found and determined by the Seventy-Third General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1981 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1981 could work irreparable harm upon the proper administration and providing of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1981.”

Acts 1985, No. 676, § 3: Mar. 27, 1985. Emergency clause provided: “It is hereby found and determined by the General Assembly that the election of conservation district directors should be rescheduled; that in certain counties, the elections should occur in March 1985; that unless this emergency clause is adopted, this Act will not go into effect until months after March 1985. Therefore, an emergency is hereby declared to exist, and this Act being immediately necessary for the preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

14-125-301. Directors generally.

    1. The governing body of the district shall consist of five (5) directors, elected or appointed pursuant to this chapter.
    2. The three (3) elected directors shall be qualified electors residing in the district.
    3. The two (2) directors appointed by the Arkansas Natural Resources Commission shall be persons who are owners of land within the district and who are by training and experience qualified to perform the services which will be required of them in the performance of their duties under this chapter.
  1. The directors shall designate a chair and may, from time to time, change the designation.
  2. The term of office of each director shall begin on the first day of the month next following his or her date of election or appointment, as the case may be, and shall be for three (3) years. The directors who are first appointed shall be designated to serve for terms of one (1) year and two (2) years, respectively, from the date of their appointment.
  3. Before entering on the duties of office, each director shall take and subscribe to the oath of office required by Arkansas Constitution, Article 19, § 20.
  4. A director shall hold office until his or her successor has been elected or appointed and has qualified.
  5. All vacancies shall be filled by appointment by the commission. Vacancies in the office of an elected director shall be filled for the unexpired term. Vacancies in the office of an appointed director shall be filled for a new full term.
  6. In making appointments, the commission shall consider any recommendation which may be made by the remaining members of the local board.
  7. A majority of the directors shall constitute a quorum, and the concurrence of the majority in any matter within their duties shall be required for its determination.
  8. As reimbursement for his or her attendance at any scheduled meeting of the district, a director may receive a sum not to exceed fifteen dollars ($15.00) plus mileage allowance at the same rate authorized by law or state travel rules for state employees, per mile traveled from his or her home to the place of meeting and return. He or she may also be reimbursed for his or her actual expenses, including traveling expenses, necessarily incurred in the discharge of his or her other duties.
  9. Any director may be removed by the commission upon notice and hearing, for neglect of duty or malfeasance in office, but for no other reason.
  10. A director shall not qualify for reappointment or reelection unless he or she shall have attended at least sixty-five percent (65%) of the scheduled conservation district board meetings and at least three (3) state or area meetings during each three-year term of office; provided, however, absences which are excused by the commission shall not disqualify a director for reappointment or reelection. Furthermore, the commission shall not require a director to personally appear before the commission in order to receive a waiver.
  11. However, upon a showing of good cause, this condition may be waived by resolution duly adopted by the commission.

History. Acts 1937, No. 197, § 7; Pope's Dig., § 11839; Acts 1969, No. 181, § 4; 1977, No. 295, § 1; 1983, No. 687, § 1; A.S.A. 1947, § 9-907; Acts 1993, No. 1005, § 1; 2019, No. 315, § 1005.

Amendments. The 1993 amendment, in (k), added the proviso at the end of the first sentence and deleted the second sentence.

The 2019 amendment substituted “rules” for “regulations” in the first sentence of (i).

14-125-302. Election of directors.

  1. Within thirty (30) days after the date of issuance by the Secretary of State of a certificate of organization of a conservation district, nominating petitions may be filed with the Arkansas Natural Resources Commission to nominate candidates for directors of the district.
    1. The commission shall have authority to extend the time within which nominating petitions may be filed.
    2. No such nominating petition shall be accepted by the commission unless it shall be subscribed by twenty-five (25) or more qualified electors within the boundaries of the district.
    3. Qualified electors may sign more than one (1) such nominating petition to nominate more than one (1) candidate for director.
    4. The commission shall give due notice of an election to be held for the election of three (3) directors for the district.
    5. The names of all nominees on behalf of whom the nominating petitions have been filed within the time herein designated shall be printed, arranged in alphabetical order of the surnames upon ballots, with a direction to vote for three (3) by placing an “X” in the square beside the name of each person for whom the voter wishes to vote.
    6. All qualified electors within the district shall be eligible to vote in the election.
    7. The three (3) candidates who shall receive the largest number, respectively, of the votes cast in the election shall be the elected directors for the district.
    8. The commission shall:
      1. Pay all the expenses of the election;
      2. Supervise the conduct thereof;
      3. Prescribe rules governing the conduct of the election and the determination of the eligibility of voters therein; and
      4. Publish the results and report results of the election to the Secretary of State.
    1. Subsequent elections shall be conducted in the same manner. However, the district shall pay all the expenses of the elections, and the nominating petitions for candidates shall be filed with the commission during the first two (2) weeks of February of the year of election.
    2. The elections shall be scheduled as follows:
      1. On the first Tuesday in March 2000, and on the first Tuesday in March every third year thereafter, in those districts which have the greatest amount of district territory in the following counties:
      2. On the first Tuesday in March 1998, and on the first Tuesday in March every third year thereafter, in those districts which have the greatest amount of district territory in the following counties:
      3. On the first Tuesday in March 1999, and on the first Tuesday in March every third year thereafter in those districts which have the greatest amount of district territory in the following counties:

Boone Little River Carroll Logan Clark Lonoke Clay Poinsett Cleburne Polk Cleveland Saline Columbia Scott Conway Searcy Crawford St. Francis Cross White Fulton Woodruff Greene Yell Jefferson

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Baxter Phillips Calhoun Pike Craighead Pope Dallas Prairie Faulkner Pulaski Garland Randolph Hempstead Sebastian Monroe Sevier Nevada Sharp Newton Stone Ouachita Union Perry Van Buren Washington

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Arkansas Hot Spring Ashley Howard Benton Independence Bradley Izard Chicot Jackson Crittenden Johnson Desha Lafayette Drew Lawrence Franklin Lee Grant Lincoln Madison Mississippi Marion Montgomery Miller

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History. Acts 1937, No. 197, § 6; Pope's Dig., § 11838; Acts 1969, No. 181, § 3; 1973, No. 140, § 2; 1985, No. 676, § 1; A.S.A. 1947, § 9-906; Acts 1997, No. 505, § 1; 2019, No. 315, § 1006.

Amendments. The 1997 amendment rewrote (c)(2).

The 2019 amendment substituted “rules” for “regulations” in (b)(8)(C).

14-125-303. Powers of districts and directors.

  1. A soil and water conservation district organized under the provisions of this chapter shall constitute a governmental subdivision of this state, and a public body, corporate and politic, exercising public powers. The district and the directors thereof shall have the following powers, in addition to others granted in other sections of this chapter:
    1. To carry out preventive and control measures and works of improvement for flood prevention or the conservation, development, and utilization of soil and water resources and the disposal of water within the district including, but not limited to, engineering operations, methods of cultivation, the growing of vegetation, changes in use of land, and the measures listed in § 14-125-104, on lands owned or controlled by this state or any of its agencies, with the consent and cooperation of the agency administering and having jurisdiction thereof, and on any other lands within the district upon obtaining the consent of the owner of the lands or the necessary rights or interests in the lands. When needed to carry out the purposes of the chapter within the district, works of improvement may also be carried out outside the boundaries of the district.
    2. To cooperate, or enter into agreements with, and within the limits of appropriations duly made available to it by law, to furnish financial or other aid to any agency, governmental or otherwise, or any owner of lands within the district, in the carrying on of erosion-control and prevention operations and works of improvement for flood prevention of the conservation, development, and utilization of soil and water resources and the disposal of water within the district, subject to such conditions as the directors may deem necessary to advance the purposes of this chapter;
    3. To obtain options upon and to acquire, by purchase, exchange, gift, grant, bequest, devise, or otherwise, any real or personal property, or rights or interests therein, within or without the district which may be needed for works of improvement for the prevention of erosion, floodwater, and sediment damages, or the conservation, development, and utilization of soil and water resources and the disposal of water; to acquire by condemnation any real property, or rights or interests therein, within or without the district, in the same manner provided by Acts 1945, No. 177 [repealed] except as otherwise provided in this chapter:
      1. To maintain, administer, and improve any properties acquired;
      2. To receive income from such properties and to expend such income in carrying out the purposes and provisions of this chapter; and
      3. To sell, lease, or otherwise dispose of any of its property or interests therein in furtherance of the purposes and provisions of this chapter;
    4. To make available, on such terms as it shall prescribe to landowners within the district, agricultural and engineering machinery and equipment, fertilizer, seeds and seedlings, and such other material or equipment, as will assist such landowners to carry on operations upon their lands for the prevention and control of soil erosion and for flood prevention or the conservation, development, and utilization of soil and water resources and the disposal of water;
    5. To construct, improve, operate, and maintain such works of improvement as may be necessary or convenient for the performance of any of the operations authorized in this chapter;
    6. To develop comprehensive plans for the control and prevention of soil erosion and for flood prevention or the conservation, development, and utilization of soil and water resources and the disposal of water within the district. These plans shall specify in such detail as may be possible, the acts, procedures, performances, and avoidances which are necessary or desirable for the effectuation of such plans, including the specification of engineering operations, methods of cultivation, the growing of vegetation, cropping programs, tillage practices, and changes in use of land, and to bring such plans and information to the attention of owners of lands within the district;
    7. To accept donations, gifts, and contributions in money, services, materials, or otherwise from the United States or any of its agencies, from this state or any of its agencies, or from any other source and to use or expend such moneys, services, materials, or other contributions in carrying on its operations, except that all forest tree seedlings shall be obtained, insofar as available, from the State Forestry Commission in cooperation with the United States Department of Agriculture; to accept appropriations from the state upon such terms and conditions as may be imposed by law to be used in the furtherance of the purposes of the district.
      1. To sue and be sued in the name of the district;
      2. To have a seal which seal shall be judicially noticed;
      3. To have perpetual succession unless terminated as hereinafter provided;
      4. To make and execute contracts and other instruments, necessary or convenient to the exercise of its powers;
      5. To borrow money and to issue notes, bonds, and other evidences of indebtedness in connection therewith and to pledge, mortgage, and assign the income of the district, including special benefit taxes, and its personal property as security therefor;
      6. To levy taxes based on special benefits;
      7. To make, and from time to time amend and repeal rules and regulations not inconsistent with this chapter, to carry into effect its purposes and powers;
    8. As a condition to the extending of any benefits under this chapter to, or the performance of work upon, any lands not owned or controlled by this state or any of its agencies, directors to require contributions in money, services, materials, or otherwise to any operation conferring such benefits, and require landowners to enter into and perform such agreements or covenants as to the permanent use of such lands as will tend to prevent or control erosion and prevent floodwater and sediment damages thereon.
  2. No provisions with respect to the acquisition, operation, or disposition of property by other public bodies shall be applicable to the acquisition, operation, or disposition of property by a district organized hereunder unless the General Assembly shall specifically so state.

History. Acts 1937, No. 197, § 8; Pope's Dig., § 11840; Acts 1947, No. 338, § 1; 1959, No. 36, § 1; 1959, No. 137, § 1; 1965, No. 424, § 4; A.S.A. 1947, § 9-909.

14-125-304. Delegation of directors' powers and duties.

The directors may delegate to their chairman, to one (1) or more directors, or to one (1) or more agents or employees such powers and duties as they may deem proper.

History. Acts 1937, No. 197, § 7; Pope's Dig., § 11839; Acts 1969, No. 181, § 4; 1977, No. 295, § 1; A.S.A. 1947, § 9-907.

14-125-305. Employees — Legal services.

  1. The directors may employ technical experts, whose qualifications shall be approved by the commission, and such other employees as they may require, and shall determine their qualifications, duties, and compensations.
  2. The directors may call upon the commission's attorney or the Attorney General for such legal services as they may require.

History. Acts 1937, No. 197, § 7; Pope's Dig., § 11839; Acts 1969, No. 181, § 4; 1977, No. 295, § 1; A.S.A. 1947, § 9-907.

Cross References. Membership in state public employees retirement system, § 24-4-729.

14-125-306. Furnishing information to commission.

The directors shall furnish to the commission, upon request, copies of such rules, regulations, orders, contracts, forms, and other documents as they shall adopt or employ and such other information concerning their activities as it may require in the performance of its duties under this chapter.

History. Acts 1937, No. 197, § 7; Pope's Dig., § 11839; Acts 1969, No. 181, § 4; 1977, No. 295, § 1; A.S.A. 1947, § 9-907.

14-125-307. Assistance from counties and municipalities.

  1. The directors may invite the legislative body of any municipality or county located within or near the territory comprised within the district to designate a representative to advise and consult with the directors of the district on all questions of program and policy which may affect the property, water supply, or other interests of the municipality or county.
  2. Since the protection, preservation, conservation, and proper utilization of renewable natural resources are necessary in order to protect the public health and welfare, the county judge of any county served by a conservation district may assist the directors of the district in carrying out the purposes of this chapter. To that end he may use the equipment and employees of the county to do the conservation work as may be requested by the directors and may make a reasonable charge therefor.
  3. In the event the county court finds that the benefits accruing to the county by reason of the program of a conservation district justify the action, it may make donations to the district of money, services, or the use of equipment.
  4. The directors of those districts desiring county assistance shall make application therefor to the county judge and in such form as he may prescribe.
  5. The quorum courts of the respective counties of the state are authorized and empowered to appropriate annually an amount as may be deemed necessary for such purposes.

History. Acts 1937, No. 197, § 7; Pope's Dig., § 11839; Acts 1969, No. 181, § 4; A.S.A. 1947, § 9-907.

14-125-308. Cooperation between districts.

The directors of any two (2) or more districts organized under the provisions of this chapter may cooperate with one another in the exercise of any or all powers conferred in this chapter.

History. Acts 1937, No. 197, § 11; Pope's Dig., § 11843; A.S.A. 1947, § 9-912.

14-125-309. Construction.

  1. The board of directors shall have control of the construction of the works provided for in the improvement plan.
  2. It may advertise in local or state papers or papers published in other states for proposals for doing any work by contract. No work exceeding one thousand dollars ($1,000) shall be let without public advertisement. The board may accept or reject any proposals.
  3. If the improvement plan is undertaken in cooperation with the United States, the board may enter into an agreement providing for the construction of the works of improvement and awarding of contracts therefor, to be by, and under the control and supervision of, the United States or any agency or instrumentality thereof. In that event the advertisement, award, and carrying out of the contracts shall be in accordance with the provisions of law applicable to such federal agency.
  4. All contractors shall be required to give bond for the faithful performance of such contracts as may be awarded them for construction of the works provided for in the improvement plan, with good and sufficient sureties, in an amount to be fixed by the board. The board shall not remit or excuse the penalty or forfeiture of the bond or the breaches thereof.
  5. The board may:
    1. Appoint all necessary agents for carrying on the work and fix their pay;
    2. Buy all necessary materials and implements and sell any material or implements as may be on hand and which may not be necessary for the completion of the improvements; and
    3. Make all such contracts in the prosecution of the work as may best subserve the public interest.
  6. It shall be the duty of the board to have the amount of work done by any contractor estimated, from time to time as may be desirable, by the engineer selected by the board. The board shall draw its warrants in favor of the contractor for not more than ninety percent (90%) of the amount of work so reported, reserving the remainder until it has been ascertained that the work has been completed according to contract and is free from liens.

History. Acts 1937, No. 197, §§ 34, 35, as added by Acts 1965, No. 424, § 5; 1969, No. 152, § 2; A.S.A. 1947, §§ 9-937, 9-938.

14-125-310. Surety bonds, records of proceedings, and audits.

The directors shall provide for:

  1. The execution of surety bonds for all employees and officers who shall be entrusted with funds or property;
  2. The keeping of a full and accurate record of all proceedings and of all resolutions, regulations, and orders issued or adopted; and
  3. An annual audit of the accounts of receipts and disbursements.

History. Acts 1937, No. 197, § 7; Pope's Dig., § 11839; Acts 1969, No. 181, § 4; 1977, No. 295, § 1; 1983, No. 687, § 1; A.S.A. 1947, § 9-907.

14-125-311. Record and report of financial transactions.

  1. The board of directors shall keep a complete record of all financial transactions relating to the carrying out of the approved plan for works of improvement in a project area.
    1. On or before March 1 of each year, the board shall file with the clerk of the court a sworn statement covering the preceding year ending December 31 of the financial condition of the district with respect to the approved plan in a project area.
    2. In project areas with revenues, from whatever source derived, in excess of five thousand dollars ($5,000) per year, the pertinent books, records, and last annual report of the district with respect to the approved plan shall be examined at least once a year by a certified public accountant.
    3. The accountant shall file a report of the examination with the clerk of the court within thirty (30) days after completing such examination.
    4. The accountant shall recommend the form and method for keeping books and records and for making the reports of the district with respect to the approved plan.
    5. The expense of the examination shall be paid as a part of the expenses of carrying out the approved plan.

History. Acts 1937, No. 197, § 31, as added by Acts 1965, No. 424, § 5; A.S.A. 1947, § 9-934; Acts 1987, No. 472, § 4.

14-125-312. Health insurance for conservation district employees.

Conservation district employees are deemed to be state employees for the purpose of participating in group health insurance programs.

History. Acts 1981, No. 755, § 15; A.S.A. 1947, § 9-907.1; Acts 1991, No. 165, § 1.

Subchapter 4 — Division or Combination of Districts

A.C.R.C. Notes. Acts 2005, No. 1243, § 2, provided:

“Arkansas Soil and Water Conservation Commission renamed ‘Arkansas Natural Resources Commission’.

“(a)(1) The ‘Arkansas Soil and Water Conservation Commission’ as it is referred to or empowered throughout the Arkansas Code, is renamed.

“(2) In its place, the ‘Arkansas Natural Resources Commission’ is established, succeeding to the general powers and responsibilities previously assigned to the Arkansas Soil and Water Conservation Commission.

“(3) The Executive Director of the Arkansas Soil and Water Conservation Commission is directed to identify and revise all interagency agreements, financial instruments, funds, and other necessary legal documents in order to effect this change.

“(b) Nothing in this act shall be construed as impairing the powers and authorities of the Arkansas Soil and Water Conservation Commission before the effective date of the name change.”

Effective Dates. Acts 1945, No. 225, § 2: approved Mar. 20, 1945. Emergency clause provided: “It is hereby found and declared to be a fact that in the interest of the public welfare, there is an urgent need to permit the soil conservation districts to vary their boundary lines, and that to do so will make it more convenient to the farmers throughout soil conservation districts to carry on their production program needed in the war effort under the provisions of this act; therefore, this act being necessary for the preservation of the public peace, health and safety of the people of the State of Arkansas, an emergency is declared to exist and this act shall be in force and effect from and after its passage.”

14-125-401. In general.

Any district or districts organized under the provisions of this chapter may be divided, or combined with any other district or districts, or divided and combined with any other district or districts in the manner set out in §§ 14-125-40214-125-409.

History. Acts 1937, No. 197, § 5; Pope's Dig., § 11837; Acts 1945, No. 225, § 1; A.S.A. 1947, § 9-905.

14-125-402. Petition requesting division or combination.

  1. At least twenty-five (25) landowners of each district affected by the proposed division or combination shall sign and file with the Arkansas Soil and Water Conservation Commission a petition requesting that the district or districts, as the case may be, and the operations thereof, be divided or combined, or divided and combined, in the manner requested.
  2. The commission shall prescribe the form for the petitions, which shall be as nearly as may be in the form described in this chapter for petitions to organize a district.
  3. The commission may conduct the public meetings and public hearings upon the petition as may be necessary to assist it in the consideration thereof.
  4. The commission may define in more detail the boundaries outlined in the petitions for the districts proposed to result from the division or combination.

History. Acts 1937, No. 197, § 5; Pope's Dig., § 11837; Acts 1945, No. 225, § 1; A.S.A. 1947, § 9-905.

14-125-403. Conduct of referendum.

  1. Within sixty (60) days after a petition has been filed with the Arkansas Natural Resources Commission pursuant to § 14-125-402, the commission shall give due notice of the holding of a referendum, shall supervise and conduct the referendum, and shall issue appropriate rules governing the conduct thereof.
  2. Each owner of land lying within the district or districts to be affected shall be entitled to vote, and only such landowners shall be entitled to vote.
  3. The commission shall make provisions on the referendum for each landowner to vote:
    1. On whether or not he or she approves of the proposed division, if any, of the district in which his or her land is located; and
    2. On whether or not he or she approves of the proposed new district in which his or her land will be located under the proposed combination, if any.
  4. No informalities in the conduct of the referendum or in any matters relating thereto shall invalidate the referendum or the result thereof if notice shall have been given substantially as provided in this section and the referendum shall have been fairly conducted.

History. Acts 1937, No. 197, § 5; Pope's Dig., § 11837; Acts 1945, No. 225, § 1; A.S.A. 1947, § 9-905; Acts 2019, No. 315, § 1007.

Amendments. The 2019 amendment substituted “rules” for “regulations” in (a).

14-125-404. Results of referendum — Commission determination.

  1. The commission shall publish the results of the referendum and shall thereafter consider and determine whether the division or combination requested in the petition is administratively practicable and feasible.
  2. If the commission shall determine that the division or combination of the district or districts is not administratively practicable and feasible, it shall record the determinations and deny the petition. If the commission shall determine that the division or combination is administratively feasible and practicable, it shall record the determinations and proceed with the division or combination of the district or districts in the manner hereafter provided.
  3. In making the determinations, the commission shall give due regard and weight to:
    1. The attitudes of the owners of lands lying within the defined boundaries of the districts to be affected;
    2. The number of landowners eligible to vote in the referendum who shall have voted;
    3. The proportion of the votes cast in the referendum in favor of the division or combination of the district or districts to the total number of votes cast;
    4. The approximate wealth and income of the land owners of the proposed new district or districts;
    5. The probable expense of carrying on erosion-control operations within the district or districts; and
    6. Such other economic and social factors as may be relevant to the combination, having due regard to the legislative determinations set forth in §§ 14-125-102 — 14-125-104.
  4. However, no district or districts may be divided or combined if a majority of land owners voting vote against either the particular division or combination which is submitted to their vote as hereinabove provided.

History. Acts 1937, No. 197, § 5; Pope's Dig., § 11837; Acts 1945, No. 225, § 1; A.S.A. 1947, § 9-905.

14-125-405. Directors — Certification of commission determination.

  1. If the commission shall determine that the proposed division or combination is practicable and feasible in its entirety, it shall appoint for each district to result from the proposed division or combination two (2) directors to act with three (3) directors to be elected in accordance with, and subject to, the terms and conditions set forth in §§ 14-125-301 and 14-125-302, except that the nominating petitions shall be filed within thirty (30) days of the determination of the commission and notice thereof to the eligible voters, as the governing body of each such district.
  2. Any existing director shall be eligible to be appointed or elected as a new director.
  3. The commission shall then certify to the new directors, and to the directors of each existing district which is to be divided or combined, hereinafter sometimes called “old directors”, the determination of the commission as to the administrative practicability and feasibility of the division or combination, the boundaries of the proposed district, the names, addresses, and positions of the directors appointed or elected for each new district, and such other data as it deems appropriate.
  4. Thereupon, the old directors of each district to be divided, if any, shall decide the proportion and manner of division of its property, assets, and rights, exclusive, however, of any executory contracts, among the new districts into which the old district is to be divided, taking into consideration the nature and source of the property, assets, and rights, the comparative sizes of the new divisions, the number of landowners of each division, and general considerations of fairness in making the allocation.
  5. The directors shall notify the commission and the new directors, who are to receive any of the property, rights, and assets, of their decision; and the property, assets, and rights shall then be divided and transferred accordingly.
  6. If no division of a district is to be made, the directors shall simply transfer the assets, property, and rights of the district to the new directors of the combined district of which it will comprise a part.
  7. If the directors of a district to be divided are unable to agree on the division of the property, assets, and rights to be made, within sixty (60) days after the certification of determination from the commission, they shall notify the commission. After a hearing of the directors and any other persons within the district who may be, in the commission's judgment, reasonably entitled to be heard, the commission shall decide and determine finally the proportions and manner of the division and shall certify its decision to the directors, who shall proceed forthwith to divide the property, assets, and rights accordingly.

History. Acts 1937, No. 197, § 5; Pope's Dig., § 11837; Acts 1945, No. 225, § 1; A.S.A. 1947, § 9-905; Acts 1993, No. 403, § 6.

Amendments. The 1993 amendment substituted “commission” for “committee” after “determination of the” in (a).

14-125-406. Application for completion.

  1. Upon receiving the property, assets, and rights to which they shall be entitled under the division or combination decided upon in the above manner, the directors of each resulting district shall file an application, duly verified, with the Secretary of State, for the completion of the division or combination, which application shall set forth, and such application need contain no detail other than the mere recitals that:
    1. A petition for the division or combination of the district was filed with the Arkansas Soil and Water Conservation Commission pursuant to the provisions of this chapter and that the proceedings specified in this chapter were taken pursuant to petition;
    2. The application is being filed in order to complete the division or combination of the old district or districts as governmental subdivisions and public bodies, corporate and politic, under this chapter;
    3. They have been appointed and elected, respectively, as directors; and
    4. The application shall also set forth with respect to the resulting district or districts the matters required in § 14-125-206.
  2. The application shall:
    1. Be executed and sworn to as provided in § 14-125-206; and
    2. Be accompanied by a statement by the Arkansas Soil and Water Conservation Commission, which shall certify, and such a statement need contain no detail other than the mere recitals, that:
      1. A petition was filed, notice given, and a referendum held on the question of dividing or combining the named districts;
      2. The commission did duly determine that the division or combination was administratively practicable and feasible; and
      3. The division or combination of the property, assets, and rights was decided upon and carried out in accordance with the provisions of this chapter.
    3. The statement shall set forth the boundaries of the district as they have been described in the petition or further defined by the commission.

History. Acts 1937, No. 197, § 5; Pope's Dig., § 11837; Acts 1945, No. 225, § 1; A.S.A. 1947, § 9-905.

14-125-407. Processing applications — Certification of resulting districts.

The Secretary of State shall examine the applications, shall receive and file them, and shall record them in the book for the recording of applications for the organization of districts. The old districts shall cease to exist as districts, and the resulting districts shall constitute governmental subdivisions of this state and public bodies corporate and politic. The secretary shall issue to the directors of each resulting district a certificate, under the seal of the state, of the due constitution by division or combination, as the case may be, of the district and shall record the certificate with the application and statement.

History. Acts 1937, No. 197, § 5; Pope's Dig., § 11837; Acts 1945, No. 225, § 1; A.S.A. 1947, § 9-905.

14-125-408. Effect of prior district regulations, contracts, etc. — Commission responsibility.

  1. Upon the issuance of the certificate of due constitution of each such district under the provisions of this chapter, all ordinances and regulations theretofore adopted and in force within the former districts shall be of no further force and effect.
  2. All contracts, agreements, and easements entered into, to which an old district or the old directors thereof, are parties, shall remain in force and effect for the period provided in the contracts.
  3. The Arkansas Soil and Water Conservation Commission shall be substituted for the district or directors as a party to such contracts.
  4. The commission shall be entitled to all benefits and subject to all liabilities under the contracts and shall have the same right and liability to perform, to require performance, to sue and be sued, and to modify or terminate the contracts by mutual consent or otherwise, as the supervisors of the former district would have had.
  5. The commission may designate and direct any of the new districts to act as its agent to carry out any contract or duty, or enforce any right, or perform any other work which accrues to it under this subchapter on account of the division or combination of an old district.

History. Acts 1937, No. 197, § 5; Pope's Dig., § 11837; Acts 1945, No. 225, § 1; A.S.A. 1947, § 9-905.

14-125-409. District powers and restrictions.

The district constituted by the division or combination, and the directors thereof, shall have the same powers and be subject to the same restrictions as districts organized under §§ 14-125-20114-125-209 and the directors thereof.

History. Acts 1937, No. 197, § 5; Pope's Dig., § 11837; Acts 1945, No. 225, § 1; A.S.A. 1947, § 9-905.

14-125-410. Change of district name.

  1. The name of any soil and water conservation district may be changed with the approval of the Arkansas Soil and Water Conservation Commission upon:
    1. The adoption of a resolution by a majority of the board of directors of the district; and
    2. The filing of a certified copy of the resolution with the Secretary of State.
  2. The Secretary of State shall, if he finds that the name is not identical or so nearly similar to the name of another soil and water conservation district as to lead to confusion or uncertainty, file the resolution and issue a new certificate to the district showing the new name.

History. Acts 1937, No. 197, § 5; Pope's Dig., § 11837; Acts 1965, No. 424, § 3; A.S.A. 1947, § 9-905.

Subchapter 5 — Land-Use Regulations

14-125-501. Authority to formulate regulations — Meetings and hearings.

  1. The directors of any district may formulate regulations governing the use of lands within the district in the interest of conserving soil and soil resources and preventing and controlling soil erosion.
  2. The directors may conduct public meetings and public hearings upon tentative regulations as may be necessary to assist them in this work.

History. Acts 1937, No. 197, § 9; Pope's Dig., § 11841; A.S.A. 1947, § 9-910.

14-125-502. Contents of regulations — Uniformity.

  1. The regulations to be adopted by the directors under the provisions of this subchapter may include:
    1. Provisions requiring the carrying out of necessary engineering operations, including the construction of terraces, terrace outlets, check dams, dikes, ponds, ditches, and other necessary structures;
    2. Provisions requiring observance of particular methods of cultivation including contour cultivating, contour furrowing, lister furrowing, sowing, planting, strip cropping, seeding, and planting of lands with water-conserving and erosion-preventing plants, trees, and grasses, forestation, and reforestation;
    3. Provisions requiring the retirement from cultivation of highly erosive areas or of areas on which erosion may not be adequately controlled if cultivation is carried on;
    4. Provisions for such other means, measures, operations, and programs as may assist conservation of soil resources and prevent or control soil erosion in the district, having due regard for the legislative findings set forth in §§ 14-125-102 — 14-125-104.
  2. The regulations shall be uniform throughout the territory comprised within the district except that the directors may classify the lands within the district with reference to such factors as soil type, degree of slope, degree of erosion threatened or existing, cropping and tillage practices in use, and other relevant factors and may provide regulations varying with the type or class of land affected but uniform as to all lands within each class or type.

History. Acts 1937, No. 197, § 9; Pope's Dig., § 11841; A.S.A. 1947, § 9-910.

14-125-503. Notice of referendum — Proposed ordinance.

  1. The directors shall not have authority to enact such land-use regulations into law until after:
    1. They shall have caused due notice to be given of their intention to conduct a referendum for submission of the regulations to the owners of lands lying within the boundaries of the district for their indication of approval or disapproval of the proposed regulations; and
    2. The directors have considered the result of the referendum.
  2. The proposed regulations shall be embodied in a proposed ordinance.
  3. Copies of the proposed ordinance shall be available for the inspection of all eligible voters during the period between publication of notice and the date of the referendum.
  4. The notices of the referendum shall recite the contents of the proposed ordinance or shall state where copies of the proposed ordinance may be examined.

History. Acts 1937, No. 197, § 9; Pope's Dig., § 11841; A.S.A. 1947, § 9-910.

14-125-504. Referendum.

  1. The question shall be submitted by ballots, upon which the words “FOR approval of proposed ordinance No. , prescribing land-use regulations for conservation of soil and prevention of erosion” and “AGAINST approval of proposed ordinance No. prescribing land-use regulations for conservation of soil and prevention of erosion” shall be printed, with a direction to cross out or scratch off one (1) or the other of the propositions, leaving unmarked the proposition for which the voter wishes to vote.
  2. The directors shall supervise the referendum, shall prescribe appropriate regulations governing the conduct thereof, and shall publish the result thereof.
  3. All owners of lands within the district shall be eligible to vote in the referendum. Only such landowners shall be eligible to vote.
  4. No informalities in the conduct of the referendum or in any matters relating thereto shall invalidate the referendum or its result if notice thereof shall have been given substantially as provided in this section and if the referendum shall have been fairly conducted.

History. Acts 1937, No. 197, § 9; Pope's Dig., § 11841; A.S.A. 1947, § 9-910.

14-125-505. Effect of referendum.

  1. The directors shall not have authority to enact the proposed ordinance into law unless at least three-fourths (¾) of the votes cast in the referendum shall have been cast for approval of the proposed ordinance.
  2. The approval of the proposed ordinance by three-fourths (¾) of the votes cast in the referendum shall not be deemed to require the directors to enact the proposed ordinance into law.

History. Acts 1937, No. 197, § 9; Pope's Dig., § 11841; A.S.A. 1947, § 9-910.

14-125-506. Copies of regulations.

Copies of land-use regulations adopted under the provisions of this subchapter shall be printed and made available to all occupiers of lands lying within the district.

History. Acts 1937, No. 197, § 9; Pope's Dig., § 11841; A.S.A. 1947, § 9-910.

14-125-507. Force and effect of regulations.

Land-use regulations prescribed in ordinances adopted pursuant to the provisions of this subchapter by the directors of any district shall have the force and effect of law in the district and shall be binding and obligatory upon all owners of lands within the district.

History. Acts 1937, No. 197, § 9; Pope's Dig., § 11841; A.S.A. 1947, § 9-910.

14-125-508. Enforcement.

  1. Where the directors of any district shall find that any of the provisions of land-use regulations prescribed in an ordinance adopted in accordance with the provisions of §§ 14-125-501 — 14-125-507 and 14-125-509 are not being observed on particular lands and that the nonobservance tends to increase erosion on the lands and interferes with the prevention or control of erosion on other lands within the district, the directors may present to the chancery court for the county or counties within which the lands of the defendant may lie, a petition, duly verified, setting forth the adoption of the ordinance prescribing land-use regulations, the failure of the defendant landowner to observe the regulations and to perform particular work, operations, or avoidances as required thereby, and that such nonobservance tends to increase erosion on such lands and is interfering with the prevention or control of erosion on other lands within the district, praying the court to require the defendant to perform the work, operations, or avoidances within a reasonable time, and to order that if the defendant shall fail so to perform, the directors may go on the land, perform the work or other operations, or otherwise bring the condition of the lands into conformity with the requirements of the regulations and recover the costs and expenses thereof, with interest, from the owner of the land.
  2. Upon the presentation of the petition, the court shall cause process to be issued against the defendant and shall hear the case.
  3. If it shall appear to the court that testimony is necessary for the proper disposition of the matter, it may take evidence or appoint a referee to take the evidence as it may direct and report the evidence to the court with his findings of fact and conclusions of law, which shall constitute a part of the proceedings upon which the determination of the court shall be made.
  4. The court may dismiss the petition, or it may require the defendant to perform the work, operations, or avoidances. It may also provide that upon the failure of the defendant to initiate the performance within the time specified in the order of the court and to prosecute the performance to completion with reasonable diligence, the directors may enter upon the lands involved and perform the work or operations or otherwise bring the condition of the lands into conformity with the requirements of the regulations and recover the costs and expenses thereof, with interest at the rate of five percent (5%) per annum, from the owner of the lands.
  5. The court shall retain jurisdiction of the case until after the work has been completed.
  6. Upon completion of the work pursuant to the order of the court, the directors may file a petition with the court, a copy of which shall be served upon the defendant in the case, stating the costs and expenses sustained by them in the performance of the work and praying judgment therefor with interest.
  7. The court shall have jurisdiction to enter judgment for the amount of such costs and expenses, with interest at the rate of five percent (5%) per annum until paid, together with the costs of suit, including a reasonable attorney's fee to be fixed by the court.

History. Acts 1937, No. 197, § 10; Pope's Dig., § 11842; A.S.A. 1947, § 9-911.

14-125-509. Amendment, supplementation, or repeal of regulations.

  1. Any owner of land within the district may at any time file a petition with the directors asking that any or all of the land-use regulations prescribed in any ordinance adopted by the directors under the provisions of this subchapter shall be amended, supplemented, or repealed.
  2. Land-use regulations prescribed in any ordinance adopted pursuant to the provisions of this subchapter shall not be amended, supplemented, or repealed except in accordance with the procedure prescribed in this section for adoption of land-use regulations.
  3. Referenda on adoption, amendment, supplementation, or repeal of land-use regulations shall not be held more often than once in six (6) months.

History. Acts 1937, No. 197, § 9; Pope's Dig., § 11841; A.S.A. 1947, § 9-910.

Subchapter 6 — Improvement Plans

14-125-601. Proposed improvement plan for project areas within districts — Petition.

  1. The board of directors of a district may from time to time, on its own motion, and upon the filing of a petition by a majority in number of the owners of the lands or the owners of a majority in value of the lands, as shown by the last assessment of real property within a proposed improvement project area within the district, adopt a proposed plan for the construction, operation, and maintenance of works of improvement for the prevention of erosion, floodwater and sediment damages, or for the conservation, development, and utilization of soil and water resources and the disposal of water within the proposed project area.
  2. The petition shall describe generally the territory intended to be included in the project area and shall state the general nature and purposes of the proposed improvements and their necessity, feasibility, and estimated cost, with such reasonable detail and definiteness as will demonstrate the utility, feasibility, and need for the improvements.
  3. The petition of the landowners shall also be accompanied by a surety bond to pay for the expenses of survey of the proposed area, in case the proposed improvement plan for the project area is not approved by the court.

History. Acts 1937, No. 197, § 15, as added by Acts 1965, No. 424, § 5; A.S.A. 1947, § 9-918.

14-125-602. Court approval of plan generally.

  1. Upon its adoption of a proposed improvement plan for an improvement project area, a copy of the plan shall be submitted to appropriate federal and state agencies for comment and the board of directors shall file the plan with the clerk of the chancery court of the county in which the district is located, with a petition that the court approve such plan for the project area therein described.
    1. The court shall enter an order appointing an engineer to be selected by the board, subject to approval by the court, who shall give bond in a sum not less than one thousand dollars ($1,000), to be fixed by the court, for the faithful discharge of his duties.
    2. The engineer shall forthwith proceed to make a survey and ascertain the limits of the region which would be benefited by the proposed improvements. He shall file with the clerk of the court a report showing the territory which will be benefited by the proposed improvements, giving a general idea of the character and expense thereof, and making such suggestions as to the proposed improvements and their location as he may deem advisable.
    3. The territory need not consist of contiguous parcels of land.
    1. The chancery clerk shall, upon the filing of the report, give notice by publication for two (2) weeks in some newspaper published and having a general circulation in the county calling upon all persons owning property within the proposed project area, which shall be described in the notice, to appear at a hearing before the court on some day to be fixed by the court, to show cause in favor of or against the proposed improvement plan for the project area.
    2. If the court deems it to be in the best interests of the owners of land within the project area that the plan for the area shall be approved, it shall enter an order approving such plan and establishing the project area described therein.
    3. Any owner of land within the territory of such project area may petition the court at the hearing to exclude his property.
    4. If the court finds that the land would not be benefited by the proposed plan, the court, in its order, shall exclude the land of the petitioner or petitioners from the project area.
    5. All such improvement plans for project areas shall be appropriately identified by a number or a name selected by the court.

History. Acts 1937, No. 197, § 16, as added by Acts 1965, No. 424, § 5; A.S.A. 1947, § 9-919.

14-125-603. Court approval of plan based on preliminary survey and report prepared with agency assistance.

  1. If the plan adopted by the board and filed with the clerk of the court is based on, and accompanied by, a preliminary survey and report prepared with the assistance of a federal or state agency, which sets forth the purpose of the plan, delineates the area to be benefited, describes the general nature of the works of improvement, the necessity, feasibility, and estimated cost thereof, with such reasonable detail and definiteness that the court may understand therefrom the purpose, utility, feasibility, and need therefor, and if the court deems it to be in the best interests of the owners of land within the proposed project area, the court may, without the appointment of an engineer, hold a hearing in the manner provided in § 14-125-602. If, after the hearing, the court deems it to be in the best interests of the owners of land within the proposed project area, it shall enter an order approving the plan and establishing the project area described therein, subject to the filing of a final work plan with the court.
  2. When completed, the final work plan shall be filed by the board of directors, together with a map showing the location of the proposed improvements and an estimate of the costs thereof, with the court as a supplement to the preliminary survey and report, and if the court deems it to be in the best interests of the landowners of the project area, it shall enter an order approving such final plan as the improvement plan for the improvement project area delineated in such final plan.
  3. If the final work plan includes in the project area lands in addition to those included in the project area in the preliminary survey and report, the court shall, before entering an order approving the plan as the improvement plan for the project area described therein, hold a hearing with respect to the additional lands in the manner provided in § 14-125-602, and make a determination as to whether the improvement plan is in the best interests of the owners of land within the modified project area described therein.

History. Acts 1937, No. 197, § 17, as added by Acts 1965, No. 424, § 5; A.S.A. 1947, § 9-920.

14-125-604. Expense of plan preparation, adoption, and approval.

All costs and expenses incurred in the preparation, adoption, and approval of an improvement plan shall be paid by the district out of its general funds, but all such costs and expenses paid by the district, upon the approval of the improvement plan, shall be repaid to the general funds of the district out of the proceeds of the first taxes or other revenues collected by the district for carrying out the improvement plan.

History. Acts 1937, No. 197, § 16, as added by Acts 1965, No. 424, § 5; A.S.A. 1947, § 9-919.

14-125-605. Effect of order approving improvement plan and establishing project area.

  1. The order of the court approving the improvement plan as provided in § 14-125-602 or the final improvement plan as provided in § 14-125-603, and establishing the improvement project area described therein, shall have all the force and effect of a judgment.
  2. Any landowner within the project area may appeal from the order within thirty (30) days after it has been made, but if no appeal is taken within that time, the order shall be deemed conclusive and binding upon all the land within the boundaries of the project area, and upon the landowners.
  3. Any owner of land within a proposed project area may within like time appeal from any order refusing to approve a proposed plan and establish a project area.

History. Acts 1937, No. 197, § 18, as added by Acts 1965, No. 424, § 5; A.S.A. 1947, § 9-921.

14-125-606. Improvement plan for an improvement project area situated in more than one district.

    1. If a proposed improvement plan for an improvement project area includes land in more than one (1) soil and water conservation district, the districts involved, after adoption of the plan by the respective boards of directors of each district, may jointly petition the chancery court of the county in which the largest portion of the land lies for approval of the plan, and all proceedings with respect to the plan shall be had in the court.
    2. The court shall apportion all costs and expenses incurred in the preparation, adoption, and approval of the plan between the districts in the proportion to the amount of the assessment of benefits to lands in each district, and the costs and expenses that are incurred prior to the time when the assessment of benefits is made shall be apportioned between the districts in the amounts which the court shall deem to be just and equitable, but the costs and expenses paid by the districts shall, if the plan is approved, be refunded to the respective districts out of the first taxes or other revenues collected for the carrying out of such plan.
    3. All notices in connection with the improvement plan shall be published in newspapers published and having a general circulation in each district in which any lands of the project area are located.
    4. In all other respects, the proceedings in connection with the improvement plan shall be the same as is provided for an improvement plan for a project area situated in one (1) district.
    1. The improvement plan for any project area situated in more than one (1) district shall be carried out and administered by a joint board of directors appointed by the chancery court at the time the court approves the improvement plan from among the members of the boards of directors of the respective districts having land within the project area, which directors shall be eligible to serve on the joint board only during their tenure as district directors.
    2. The joint board shall consist of not more than five (5) directors, except where a larger number is required to afford adequate representation for each district having lands within the area.
    3. The representation of each district on the joint board shall be on such basis as the court shall deem to be just and equitable.
    4. In making the appointments, the court shall take into consideration the proportion that the benefits accruing from the improvement plan to the land in each district bears to the total benefits accruing to all lands within the project area and the proportion that the acreage of lands of each district included within the project area bears to the total acreage of lands within the project area.
    5. The court shall likewise fill by appointment any vacancy occurring on the board by reason of resignation, death, or otherwise.
    1. The joint board shall act on behalf of the participating districts and shall exercise all the powers and duties of the districts with respect to the carrying out of the improvement plan for the project area.
    2. The actions taken and obligations entered into in the carrying out of the improvement plan shall be the actions and obligations of each of the participating districts acting through the joint board.
    3. All obligations issued by the joint board, including notes, bonds or other evidences of indebtedness, which are payable from taxes levied on the basis of assessment of benefits, shall be paid from the taxes levied against the land in the project area located in the several participating districts. The liability of each such district shall be in the proportion to the amount of the assessment of benefits on the lands in the district.

History. Acts 1937, No. 197, § 19, as added by Acts 1965, No. 424, § 5; A.S.A. 1947, § 9-922.

14-125-607. Alteration of plans.

  1. The board of directors may at any time alter the plan for works of improvement, but, before constructing the work according to the changed plan, the changed plan shall be filed with the clerk of the chancery court, and notice of the filing shall be given by publication for two (2) weeks in some newspaper published and having a general circulation in each of the counties containing lands within the project area.
  2. If the court approves the changes, it shall enter its order approving the alteration of plans. However, if the changes add lands to the established project area, the court shall, before entering the order, hold a hearing with respect to the additional lands in the manner provided in § 14-125-602 to determine whether the improvement plan is in the best interests of the owners of land within the modified project area, and the owners shall have the same right of appeal as provided in connection with the original improvement plan.

History. Acts 1937, No. 197, § 23, as added by Acts 1965, No. 424, § 5; A.S.A. 1947, § 9-926.

14-125-608. Additional works of improvement.

After the work contemplated by the original improvement plan has been completed, the board of directors may adopt and file with the clerk of the chancery court where the original plan was filed a plan for additional works of improvement for the project area, and the proceedings with respect to such additional plan, including the right of appeal, shall be the same insofar as may be practicable as those required in connection with the original plan.

History. Acts 1937, No. 197, § 25, as added by Acts 1965, No. 424, § 5; A.S.A. 1947, § 9-928.

Subchapter 7 — Taxes and Assessments

14-125-701. Assessments of benefits and damages.

  1. As soon as the court has entered its order approving an improvement plan and establishing the improvement project area described therein, the court shall appoint three (3) assessors who shall be resident landowners of the project area.
  2. Each of the assessors shall take the oath of office as required by Arkansas Constitution, Article 19, § 20, and shall also swear that he will well and truly assess all benefits resulting from the improvement and all damages caused thereby.
  3. Any assessor failing to take the oath within thirty (30) days after his appointment shall be deemed to have declined, and his place shall be filled by the chancery court.
  4. All vacancies shall be filled by the chancery court. However, if the owners of a majority in assessed value of the real property in the project area shall petition for the appointment of a particular person or persons as assessor or assessors, it shall be the duty of the chancery court to appoint the person or persons so designated.
  5. The chancery court shall remove any of the assessors on the petition of owners of a majority in assessed value of the real property in the district.
  6. The assessors herein provided for shall receive as compensation the sum of five dollars ($5.00) each day they are engaged in carrying out their duties hereunder, together with their necessary expenses.
  7. The assessors shall proceed to assess the land within the project area on the basis of benefits accruing to the land from the works of improvement for the prevention of erosion, floodwater, and sediment damages, or the conservation, development, and utilization of soil and water resources and the disposal of water.
  8. A separate book for each project area shall be maintained with respect to assessments of benefits on the basis of benefits accruing to the land from the works of improvement.
  9. The assessors shall cause to be inscribed in the book the description of each tract of land. The assessors shall assess the value of the benefits to accrue to each tract by reason of the works of improvement and shall enter the assessment of benefits opposite the description, together with an estimate of what the landowner will be required to pay on the assessment.
  10. The assessment shall embrace not merely the land, but shall also embrace all railroads, tramroads, and other improvements on land that will be benefited by the works of improvement.
  11. There shall be placed opposite each tract of land the name of the owner, as shown by the last county assessment, but a mistake in the name shall not vitiate the assessment. Evident errors which occur in the county assessment list may be corrected.
  12. If any owner of land or other district has made any improvements or works in the project area that can be profitably used as a part of the approved improvement plan, the value of the improvement or works shall be appraised by the assessors, shall separately appear upon its assessment of benefits, and shall be paid for the district, either in cash or by a reduction of assessment of benefits.
  13. The assessors shall also assess all damages that will accrue to any landowner by reason of the proposed improvements, including all injury to lands taken or damaged. Where the assessors return no such assessment of damages as to any tract of land, it shall be deemed a finding by the assessors that no damage will be sustained.

History. Acts 1937, No. 197, § 20, as added by Acts 1965, No. 424, § 5; A.S.A. 1947, § 9-923.

14-125-702. Filing and record of assessment.

  1. When an assessment is completed, the assessors shall subscribe an original and one (1) copy of the assessment and deposit the original with the clerk of the chancery court, where it shall be kept and preserved as a public record.
  2. The copy shall be certified by the clerk and returned to the assessors to be preserved with the records of the district.
  3. If the project area includes land in more than one (1) county, a certified copy of the assessment shall also be deposited with the clerk of the chancery court in such other county or counties to be kept and preserved as a public record.

History. Acts 1937, No. 197, § 21, as added by Acts 1965, No. 424, § 5; A.S.A. 1947, § 9-924.

14-125-703. Notice — Hearing of complaints — Appeal.

  1. Upon the filing of assessment, the clerk shall give notice thereof by publication for two (2) weeks in some newspaper published and having a general circulation in the county or counties in which the lands in the project area are located.
  2. The notice shall give a description of the land assessed and state that the owners of the land may appear before the court on a day named therein and present complaints, if they have any, against the assessment of any land in the project area.
  3. The day so named shall be not less than ten (10) days nor more than thirty (30) days after the last publication of the notice.
  4. If no complaint is made as provided in this section, the assessment as deposited with the clerk shall be conclusive and the court shall enter an order confirming the assessment.
  5. Any owner of land within the project area who conceives himself to be aggrieved by the assessment of benefits or damages or deems that the assessment of any land within the project area is inadequate shall present his complaint to the court on the day named in the notice.
  6. The court shall consider the complaint and enter its finding thereon, either confirming the assessment or increasing or diminishing it.
  7. Its findings shall have the force and effect of a judgment, from which an appeal may be taken within thirty (30) days, either by any such owner of land or by the board of directors.

History. Acts 1937, No. 197, § 21, as added by Acts 1965, No. 424, § 5; A.S.A. 1947, § 9-924.

14-125-704. Acquiescence in damage assessment — Demand for assessment — Condemnation.

Any owner of land may accept the assessment of damages in his favor made by the assessors or acquiesce in their failure to assess damages in his favor. He shall be construed to have done so unless he gives to the board, not later than the date of the hearing provided for in § 14-125-703, notice in writing that he demands an assessment of his damages by a jury. In this event, the board shall institute an action to condemn the land that will be taken or damaged in carrying out the works of improvement included in the approved improvement plan, which action shall be in accordance with the proceedings provided in § 14-125-303(a)(3).

History. Acts 1937, No. 197, § 22, as added by Acts 1965, No. 424, § 5; A.S.A. 1947, § 9-925.

14-125-705. Reassessment of benefits generally.

  1. The board shall have the power to order a reassessment of the benefits not more often than once a year, and this reassessment shall be made, advertised, and equalized as is provided for the original assessment of benefits.
  2. All appeals of landowners objecting thereto must be taken and perfected within thirty (30) days from the time of the action of the court thereon.
  3. If any obligation of the district shall be outstanding at the time of the reassessment, the liability thereon of land against which assessments of benefits have been confirmed shall be no less than the liability of the property by reason of the original assessment.

History. Acts 1937, No. 197, § 24, as added by Acts 1965, No. 424, § 5; A.S.A. 1947, § 9-927.

14-125-706. Reassessment after alteration of plans.

  1. If by reason of a change of plans pursuant to § 14-125-607, either the board or any landowners deem that the assessment on any land has become inequitable, they may petition the court. The court may thereupon refer the petition to the assessors, which shall reassess the land mentioned in the petition, increasing the assessment if greater benefits will be received and allowing damages if less benefits will be received or if damages will be sustained. A copy of the reassessment shall be deposited with the clerk of the chancery court as provided in § 14-125-702 in connection with the original assessment.
  2. In no event shall a reduction of assessments be made after the assessment of benefits has been confirmed by the court as provided in § 14-125-703 and obligations based on the assessments have been incurred, but any reduction in benefits shall be paid for by the district as damages. The claim for those damages shall be secondary and subordinate to the rights of the holders of bonds or other obligations or evidences of indebtedness which have theretofore been issued.
  3. The landowners shall have the same right of appeal from reassessment as provided for in this chapter in the case of the original assessment.

History. Acts 1937, No. 197, § 23, as added by Acts 1965, No. 424, § 5; A.S.A. 1947, § 9-926.

14-125-707. Taxes payable in full or in installments.

  1. The amount of interest which will accrue on notes, bonds, or other evidences of indebtedness issued by a district shall be included in and added to the taxes levied against the land in the project area, but the interest to accrue on the notes, bonds, or other evidences of indebtedness shall not be construed as a part of the costs of construction in determining whether the expenses and the costs of making the improvements exceed the assessment of benefits.
    1. When the tax levies are made, the landowners shall have the privilege of paying the taxes in full, without interest, within thirty (30) days after the levy becomes final.
    2. But all these taxes shall be made payable in installments, so that not more than ten percent (10%) of the taxes shall be collectible in any one (1) year against the wishes of the landowner. In the event that any landowner avails himself of this privilege, the deferred installments of the taxes shall bear interest at the rate of six percent (6%) per annum and shall be payable only in installments as levied.
    3. However, the commencement of the payment of the taxes in installments may be deferred for such period after the completion of the improvement plan as the chancery court deems to be in the best interests of the landowners in the project area.
    4. If any landowner shall pay in full the levy of taxes against his land as herein provided, that land shall not be further liable by reason of the assessment of benefits or any reassessment thereof except a reassessment because of changed plans as provided in § 14-125-705, and then only to the extent of the increase in assessment, if any, because of the greater benefit thereby received. However, in case of any additional assessment for greater benefit, any landowner who shall have paid his previous tax levy in full shall have the privilege of paying in full the increase in tax levy in the manner herein provided.

History. Acts 1937, No. 197, § 26, as added by Acts 1965, No. 424, § 5; A.S.A. 1947, § 9-929.

14-125-708. Levy of tax — Lien — Appeal from tax assessment.

  1. The chancery court shall at the same time that the assessment of benefits is filed or at any subsequent time when called upon by the board enter an order, which shall have the force and effect of a judgment, providing that there shall be levied against the land within the project area a tax sufficient to pay the estimated cost of the improvement, with ten percent (10%) added for unforeseen contingencies. This tax shall be a charge against the land in the proportion to the amount of the assessment of benefits thereon and may be paid in full or in annual installments as provided in § 14-125-707.
  2. The tax so levied shall be a lien upon the land within the project area from the time that the tax is levied by the court and shall be entitled to preference over all demands, executions, encumbrances, or liens whensoever created. It shall continue until the tax, with such penalties and costs as may accrue thereon, shall have been paid.
  3. The remedy against such levy of taxes shall be by appeal, and this appeal shall be taken within twenty (20) days from the date of the order by the court. On this appeal, the presumption shall be in favor of the legality of the tax.

History. Acts 1937, No. 197, § 27, as added by Acts 1965, No. 424, § 5; A.S.A. 1947, § 9-930.

14-125-709. Levy of tax for preliminary expenses.

  1. If the board does not deem it to the advantage of the project area to proceed immediately with the construction of the improvements upon the filing and confirmation of the assessment of benefits, it may cause to be levied and collected a tax based upon the assessment of benefits and collectible from the benefited land in the project area in the proportion to the amount of the assessment of benefits thereon for the purpose of paying preliminary expenses for development of the improvement plan for the project area.
  2. The board shall report to the court the rate of taxation necessary to be levied to pay the preliminary expenses, and thereupon it shall be the duty of the court to make levy of taxes upon the benefited land in the project area sufficient to pay the preliminary expenses, with ten percent (10%) added for unforeseen contingencies. This tax shall be extended upon the tax books of the county and collected along with other taxes in the same manner as taxes levied for construction purposes, as provided in this chapter.
  3. If any project area is abandoned before the making of the assessment of benefits, the tax for preliminary expenses shall be levied at the rate fixed by the board upon the real property therein upon the basis of the assessment for county and state purposes.

History. Acts 1937, No. 197, § 28, as added by Acts 1965, No. 424, § 5; A.S.A. 1947, § 9-931.

14-125-710. Levy of tax for operation and maintenance.

  1. On or before the first Monday in October of each year, the board of directors shall estimate the amount necessary for the ensuing calendar year for operation and maintenance of the works of improvement provided for in the improvement plan and shall submit the estimate to the chancery court which approved the plan, with a request that a tax levy be made for the estimated amount.
  2. If the court finds the estimated amount to be fair and reasonable, it shall enter an order, which shall have the force and effect of a judgment, providing that there shall be levied against the benefited land within the project area a tax sufficient to pay the estimated cost of operation and maintenance. This tax shall be a charge against the benefited land in the proportion to the amount of the assessment of benefits on the land.

History. Acts 1937, No. 197, § 32, as added by Acts 1965, No. 424, § 5; A.S.A. 1947, § 9-935.

14-125-711. Extension of taxes on county tax books — Collection of taxes.

  1. The amount of the taxes herein provided for shall be annually extended upon the tax books of the county, or counties if the project area is situated in more than one (1) county, and collected by the collector of the county along with the other taxes. For his services in making this collection, the collector shall receive a commission as is provided by law.
  2. The collections shall be by the collector paid over to the board of directors at or before the time that he is now required to make settlement with the county treasurer for general taxes.
  3. The collection of taxes levied hereunder, the proceedings for the collection of delinquent taxes, and the periods of redemption from sales for foreclosure of tax liens shall be in accordance with §§ 14-125-707 and 14-125-708.

History. Acts 1937, No. 197, § 33, as added by Acts 1965, No. 424, § 5; A.S.A. 1947, § 9-936.

Subchapter 8 — Bonds and Evidences of Indebtedness

Effective Dates. Acts 1983, No. 340, § 3: Mar. 7, 1983. Emergency clause provided: “It is hereby found and determined by the General Assembly that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and that this Act is immediately necessary to accomplish these public improvements. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety shall be in effect from and after its passage and approval.”

Acts 1983, No. 531, § 3: Mar. 18, 1983. Emergency clause provided: “It is hereby found and determined by the General Assembly that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and that this Act is immediately necessary to accomplish these public improvements. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety shall be in effect from and after its passage and approval.”

14-125-801. Petition to borrow money or issue bonds, etc.

  1. The board of directors may petition the chancery court for authority to borrow money or issue bonds or other evidences of indebtedness.
  2. The petition of the board shall state whether it is desired that those bonds or other evidences of indebtedness shall be made payable from the proceeds of any revenues derived from the operation of the works of improvement included in the approved plan or from the proceeds of taxes levied against the land within the project area.
  3. The order of the court authorizing the issuance of the bonds or other evidences of indebtedness shall specify which sources shall be liable for the payments of the principal and interest thereon.

History. Acts 1937, No. 197, § 29, as added by Acts 1965, No. 424, § 5; 1983, No. 340, § 1; 1983, No. 531, § 1; A.S.A. 1947, § 9-932.

14-125-802. Notice — Issuance.

  1. The clerk of the court shall upon receipt of the petition give due notice by publication for two (2) weeks in some newspaper published and having a general circulation within the county in which the project area is located calling upon all persons owning land within the area to appear before the court upon a date to be fixed by the court, not less than ten (10) days nor more than thirty (30) days from the date of the last publication, to show cause in favor of or against the issuance of bonds or other evidences of indebtedness.
  2. If upon final hearing the court deems it to be in the best interest of the owners of the land, the court shall enter an order authorizing the issuance of bonds or other evidences of indebtedness.
  3. The order of the court shall have the force and effect of a judgment and any aggrieved party may appeal from this order within thirty (30) days after the order has been made. If no appeal is taken within that time, the order shall be deemed conclusive and binding upon the lands in the project area and upon the owners thereof.
  4. The board may thereupon borrow money at a rate of interest from any agency of the United States or any other public or private lending source; may issue promissory notes, negotiable bonds, or other evidences of indebtedness as required by the lender thereof; and may pledge and assign all assessments and revenues relating to the project area for the repayment thereof.

History. Acts 1937, No. 197, § 29, as added by Acts 1965, No. 424, § 5; 1983, No. 340, § 1; 1983, No. 531, § 1; A.S.A. 1947, § 9-932.

14-125-803. Terms and form of bonds, etc.

  1. Bonds or other evidences of indebtedness issued under the terms of this chapter shall bear such date or dates, mature at such time or times not in excess of fifty (50) years, and be in such form and denomination as the board may determine.
  2. The board may sell, exchange, or hypothecate these obligations from time to time at such prices as shall best serve the interests of the owners of land within the project area, provided that any sale or exchange of the obligations at less than par value shall first have the approval of the chancery court.

History. Acts 1937, No. 197, § 29, as added by Acts 1965, No. 424, § 5; 1983, No. 340, § 1; 1983, No. 531, § 1; A.S.A. 1947, § 9-932.

14-125-804. Court order approving proceedings.

  1. After issuing any bonds or other evidences of indebtedness and before their sale, exchange, or hypothecation, the board may petition the chancery court for an order approving the legality and regularity of all proceedings leading up to the issuance of the bonds or other evidences of indebtedness. This order shall have the force and effect of a judgment from which an appeal may be taken within thirty (30) days by the board or by any owner of land against which assessments of benefits by the district have been confirmed.
  2. If the order of the court shall specify that the bonds or other evidences of indebtedness shall be made payable from revenues, the order shall declare specifically the revenues or portion thereof that shall be pledged to secure the payment of the principal and interest thereon. This order shall constitute a sufficient pledge to secure all such payments of all bonds or other evidences of indebtedness that may be issued in pursuance thereof. All revenues so designated shall be applied, except for a reasonable amount for annual operation and maintenance costs, first to the payment of such principal and interest. No tax shall be levied by or on behalf of the district against any land within the project area to pay any part of the principal or interest of the bonds or other evidence of indebtedness.
  3. If the order of the court authorizing the borrowing of money and the issuance of notes, bonds, or other evidences of indebtedness shall specify that they shall be made payable from the proceeds of assessments, that order shall provide for the levying of a tax against the benefited land within the project area in the proportion to the amount of the assessment of benefits thereon in the same manner and with the same effect as provided in § 14-125-708.

History. Acts 1937, No. 197, § 29, as added by Acts 1965, No. 424, § 5; 1983, No. 340, § 1; 1983, No. 531, § 1; A.S.A. 1947, § 9-932.

14-125-805. Refunding bonds.

Refunding bonds may be issued and may be sold, exchanged, or hypothecated under the procedure provided in §§ 14-125-80114-125-804.

History. Acts 1937, No. 197, § 29, as added by Acts 1965, No. 424, § 5; 1983, No. 340, § 1; 1983, No. 531, § 1; A.S.A. 1947, § 9-932.

14-125-806. Security for bonds — Delinquencies.

  1. All bonds issued under the terms of this chapter that are made payable from the proceeds of assessments shall be secured by a lien on all benefited lands in the project area unless the board of directors shall be able to sell bonds payable out of revenue only. The board shall see to it that a tax is levied annually and collected under the provisions of this chapter so long as it may be necessary to pay any bond issued under its authority.
    1. If any bond or interest coupon on any bond issued by the board is not paid within (30) days after its maturity, it shall be the duty of the chancery court of the proper county, on the application of any holder of the bond or interest coupon so overdue, to order the collection of the taxes aforesaid. At its discretion, the court may appoint a receiver therefor.
    2. The proceeds of the taxes and collections shall be applied, after payment of costs, first to overdue interest and then to payment pro rata of all bonds issued by the board which are then due and payable.
    3. The board or receiver may be directed by suit to foreclose the lien of the taxes on the lands.
    4. The suits so brought by the receiver shall be conducted in all matters as suits by the board, as hereinbefore provided, and with like effect.
    5. The decrees and deeds herein shall have the same presumptions in their favor.
    6. However, when all such sums have been paid, the receiver shall be discharged, and the affairs of the district with respect to the project area conducted by the board, as provided in this chapter.

History. Acts 1937, No. 197, § 30, as added by Acts 1965, No. 424, § 5; A.S.A. 1947, § 9-933.

Subchapter 9 — Discontinuance of Districts

A.C.R.C. Notes. Acts 2005, No. 1243, § 2, provided:

“Arkansas Soil and Water Conservation Commission renamed ‘Arkansas Natural Resources Commission’.

“(a)(1) “The ‘Arkansas Soil and Water Conservation Commission’ as it is referred to or empowered throughout the Arkansas Code, is renamed.

“(2) In its place, the ‘Arkansas Natural Resources Commission’ is established, succeeding to the general powers and responsibilities previously assigned to the Arkansas Soil and Water Conservation Commission.

“(3) The Executive Director of the Arkansas Soil and Water Conservation Commission is directed to identify and revise all interagency agreements, financial instruments, funds, and other necessary legal documents in order to effect this change.

“(b) Nothing in this act shall be construed as impairing the powers and authorities of the Arkansas Soil and Water Conservation Commission before the effective date of the name change.”

14-125-901. Petition.

  1. At any time after five (5) years after the organization of a district under the provisions of this chapter, any twenty-five (25) owners of land lying within the boundaries of the district may file a petition with the Arkansas Soil and Water Conservation Commission praying that the operations of the district be terminated and the existence of the district discontinued.
  2. The commission may conduct the public meetings and public hearings upon the petition as may be necessary to assist it in the consideration thereof.

History. Acts 1937, No. 197, § 12; Pope's Dig., § 11844; A.S.A. 1947, § 9-913.

14-125-902. Notice and conduct of referendum.

  1. Within sixty (60) days after a petition has been received by the commission, it shall:
    1. Give due notice of the holding of a referendum;
    2. Supervise the referendum; and
    3. Issue appropriate regulations governing the conduct of the referendum.
  2. The question shall be submitted by ballots upon which the words “FOR terminating the existence of the (name of the soil conservation district to be here inserted)” and “AGAINST terminating the existence of the (name of the soil conservation district to be here inserted)” shall be printed, with a direction to cross out or scratch off one (1) or the other of the propositions, leaving unmarked the proposition for which the voter wishes to vote.
  3. Only owners of lands lying within the boundaries of the district shall be eligible to vote in the referendum.
  4. No informalities in the conduct of the referendum or in any matters relating thereto shall invalidate the referendum or its result if notice thereof shall have been given substantially as provided in this subchapter and the referendum shall have been fairly conducted.

History. Acts 1937, No. 197, § 12; Pope's Dig., § 11844; A.S.A. 1947, § 9-913.

14-125-903. Results of referendum — Practicability and feasibility of continued operation.

  1. The commission shall publish the result of the referendum and shall thereafter consider and determine whether the continued operation of the district within the defined boundaries is administratively practicable and feasible.
  2. If the commission shall determine that the continued operation of the district is administratively practicable and feasible, it shall record the determination and deny the petition.
  3. If the commission shall determine that the continued operation of the district is not administratively practicable and feasible, it shall record that determination and shall certify that determination to the directors of the district.
  4. In making that determination the commission shall give due regard and weight to:
    1. The attitudes of the owners of lands lying within the district;
    2. The number of landowners eligible to vote in the referendum who shall have voted;
    3. The proportion of the votes cast in the referendum in favor of the discontinuance of the district to the total number of votes cast;
    4. The approximate wealth and income of the landowners of the district;
    5. The probable expense of carrying on erosion control operations within the district; and
    6. Such other economic and social factors as may be relevant to the determination, having due regard to the legislative findings set forth in §§ 14-125-102 — 14-125-104.
  5. However, the commission shall not have authority to determine that the continued operation of the district is administratively practicable and feasible unless at least a majority of the votes cast in the referendum shall have been cast in favor of the continuance of the district.

History. Acts 1937, No. 197, § 12; Pope's Dig., § 11844; A.S.A. 1947, § 9-913.

14-125-904. Termination of district affairs — Certification of dissolution.

  1. Upon receipt from the Arkansas Soil and Water Conservation Commission of a certification that the commission has determined that the continued operation of the district is not administratively practicable and feasible, pursuant to the provisions of this subchapter, the directors shall forthwith proceed to terminate the affairs of the district.
  2. The directors shall dispose of all property belonging to the district at public auction and shall pay over the proceeds of the sale to be covered into the State Treasury.
  3. The directors shall thereupon file an application, duly verified, with the Secretary of State for the discontinuance of the district and shall transmit with the application the certificate of the Arkansas Soil and Water Conservation Commission setting forth the determination of the commission that the continued operation of the district is not administratively practicable and feasible.
  4. The application shall recite that the property of the district has been disposed of and the proceeds paid over as provided in this subchapter and shall set forth a full accounting of the properties and proceeds of the sale.
  5. The Secretary of State shall issue to the directors a certificate of dissolution and shall record this certificate in an appropriate book or record in his office.

History. Acts 1937, No. 197, § 12; Pope's Dig., § 11844; A.S.A. 1947, § 9-913.

14-125-905. Times for discontinuance.

The Arkansas Soil and Water Conservation Commission shall not, until five (5) years have elapsed for the date of the district organization nor more often than once in three (3) years thereafter:

  1. Entertain petitions for the discontinuance of any district;
  2. Conduct referenda upon petitions; or
  3. Make determinations pursuant to such petitions in accordance with the provisions of this chapter.

History. Acts 1937, No. 197, § 12; Pope's Dig., § 11844; A.S.A. 1947, § 9-913.

14-125-906. Consent requirement.

No one (1) individual or corporation may be forced against his or its will into any district that may be created under the provisions of this chapter without the consent of the individual or corporation, unless lands so held by the above-named individual or persons mentioned above is wholly within the district, or the lands are so located in the district that it would be necessary to carry out the purpose of this chapter by including these lands in the district.

History. Acts 1937, No. 197, § 12; Pope's Dig., § 11844; A.S.A. 1947, § 9-913.

14-125-907. Effect of prior district regulations and contracts — Commission responsibilities.

  1. Upon issuance of a certificate of dissolution under the provisions of this subchapter, all regulations theretofore adopted and in force within the districts shall be of no further force and effect.
  2. All contracts theretofore entered into, to which the district or supervisors are parties, shall remain in force and effect for the period provided in such contracts.
  3. The Arkansas Soil and Water Conservation Commission shall be substituted for the district or directors as party to the contracts.
  4. The commission shall be entitled to all benefits and subject to all liabilities under the contracts and shall have the same right and liability to perform, to require performance, to sue and be sued thereon, and to modify or terminate the contracts by mutual consent or otherwise, as the directors of the district would have had.

History. Acts 1937, No. 197, § 12; Pope's Dig., § 11844; A.S.A. 1947, § 9-913.

Chapter 126 Alternative Method of Assessment of Taxes in Levee Improvement Districts of More Than Two Counties

14-126-101. Resolution required.

  1. This chapter shall not be in force as to any levee district until:
    1. A proper resolution to that effect is adopted by the board of directors of the levee district; and
    2. A copy of the resolution is published in a newspaper in each county that in whole or in part is embraced in the levee district.
  2. If the board of directors of a levee district chooses to adopt this chapter by resolution, its provisions shall be supplemental to other laws under which the levee district is established and operates.
    1. The board of directors of a levee district may rescind a resolution adopted under this chapter.
    2. If a resolution is rescinded, a notice to that effect shall be published in a newspaper in each county that in whole or in part is embraced in the levee district.

History. Acts 2013, No. 570, § 1.

14-126-102. Alternative method of assessments.

  1. The board of directors of a levee district that includes more than two (2) counties may, at a regular meeting or at a special meeting called for the purpose, adopt a resolution providing for assessments as provided in this section.
    1. The board of directors of a levee district that includes more than two (2) counties may provide by resolution for an annual assessment under this section upon:
      1. All real estate subject to overflow in the district;
      2. All improvements on real estate subject to overflow in the district; and
      3. Telephone, electrical light and power lines, and pipelines subject to overflow within the district.
      1. The board of directors of a levee district may assess a tax on the real estate subject to overflow in the district in the amount of thirty cents (30¢) per acre or city lot.
      2. The board of directors of a levee district may assess a millage upon all improvements to real estate subject to overflow in the district in an amount not to exceed twenty (20) mills on the dollar of the assessed value as the property is assessed for state and county tax purposes.
    2. The millage assessed upon telephone, electrical light and power lines, and pipelines subject to overflow within the district shall not exceed twenty (20) mills on the dollar of twenty percent (20%) of the assessed valuation of the utility company based on calculations by the Arkansas Public Service Commission that are provided to the tax assessor in each county within the levee district.
  2. The board of directors of a levee district may assess a tax on a railroad, its right-of-way, and roadbed subject to overflow within the district in an amount not to exceed two hundred fifty dollars ($250) per mile within the district.
  3. The alternative assessments under this section shall be in lieu of assessments required by other laws under which the levee district is established and operates.

History. Acts 2013, No. 570, § 1.

14-126-103. Review of alternative assessment.

    1. A person aggrieved by an alternative assessment under this chapter may petition to have the assessment reviewed by the board of directors.
    2. A petition for review shall be filed within thirty (30) days from the date when the assessment becomes effective.
    3. The board of directors may lower, raise, equalize, or determine the proper amount of benefit assessable against the property described in the petition.
    4. The amount and legality of an assessment made by a district, in the absence of a petition for a review, is conclusive.
      1. Within thirty (30) days of the conclusion of a review by the board of directors, an appeal may be filed with the county equalization board of the county in which the:
        1. Property is situated; or
        2. District has its domicile if the property involved is in more than one (1) county.
      2. A copy of the appeal shall be delivered to the:
        1. President of the levee district; or
        2. Chair of the board of directors of the levee district.
      1. An appeal before the county equalization board shall be heard on the evidence introduced before the board of directors.
      2. Additional or different evidence shall not be admissible except on an issue of corrupt purpose or fraudulent action on the part of the board of directors resulting in a wrongful and discriminatory assessment.
    1. The right of review is part of the administrative remedy for relief from wrongful or erroneous assessments.
      1. The county equalization board shall hear the petition as expeditiously as possible.
      2. The county equalization board may lower, raise, equalize, or determine the proper amount of benefit assessable against the property described in the appeal.
      3. As soon as the county equalization board determines the proper assessment under a petition pending before it, the county equalization board shall promptly certify the assessment to the district, and the district shall modify the assessment as necessary.
      1. Within thirty (30) days of the conclusion of an appeal to the county equalization board, an appeal may be filed with the circuit court of the county in which the:
        1. Property is situated; or
        2. District has its domicile if the property involved is in more than one (1) county.
      2. A copy of the appeal to the circuit court shall be delivered to the:
        1. President of the levee district; or
        2. Chair of the board of directors of the levee district.
      1. Review shall be heard on the evidence introduced before the board of directors.
      2. Additional or different evidence shall not be admissible except on an issue of corrupt purpose or fraudulent action on the part of the board of directors resulting in a wrongful and discriminatory assessment.
    1. The right of review is part of the administrative remedy for relief from wrongful or erroneous assessments.
      1. The circuit court shall hear the petition as expeditiously as possible.
      2. The circuit court may lower, raise, equalize, or determine the proper amount of benefit assessable against the property described in the appeal.
    2. As soon as the circuit court determines the proper assessment under a petition pending before it, the clerk of the circuit court shall promptly certify the assessment to the district, and the district shall modify the assessment as necessary.
      1. An appeal may be filed from the assessment fixed by the circuit court with the Supreme Court.
      2. The transcript shall be filed with the Clerk of the Supreme Court within sixty (60) days from the issuance of the decree of the circuit court.
    1. The Supreme Court shall advance the appeal on its docket as involving a matter of public interest.

History. Acts 2013, No. 570, § 1.

Chapters 127-135 [RESERVED.]

[Reserved]

Subtitle 8. Public Facilities Generally

Chapter 136 General Provisions

[Reserved]

Chapter 137 Public Facilities Boards

Effective Dates. Acts 1975, No. 142, § 23: Feb. 12, 1975. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that for the benefit of the people of this State, the increase of their commerce, welfare and prosperity, and the improvement and maintenance of their health and living conditions, it is essential and necessary that additional means be provided to assist in the financing of the public facilities to which this Act pertains. Therefore, an emergency is hereby declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall take effect and be in full force from and after its passage and approval.”

Acts 1975 (Extended Sess., 1976), No 1224, § 4: Feb. 12, 1976. Emergency clause provided: “It is hereby found and declared by the General Assembly of the State of Arkansas that the additional powers which may be granted to Public Facilities Boards as authorized by this Act are immediately necessary for the benefit of the people of this State, the increase of their commerce, welfare and prosperity, and the improvement and maintenance of their health and living conditions. Therefore, an emergency is hereby declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall take effect and be in force from and after its passage and approval.”

Acts 1977, No. 446, § 7: became law without Governor's signature, Mar. 16, 1977. Emergency clause provided: “It has been found and it is hereby declared that existing authority for the financing of public facilities projects, particularly health care facilities, is inadequate and that by reason of such inadequacy many needed projects have been delayed. Therefore, an emergency is declared to exist and this Act, being necessary for preservation of the public peace, health and safety, shall be in force upon its approval.”

Acts 1981, No. 52, § 5: Feb. 12, 1981. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that in order to promote the conservation of energy and the development of new energy resources, which will benefit the people of this State by improving and maintaining their health and living conditions, it is essential and necessary that additional means be provided to assist in the financing of energy facilities to which this Act pertains. Therefore, an emergency is hereby declared to exist, and this Act being immediately necessary for the preservation of the public peace, health and safety shall take effect and be in full force from and after its passage and approval.”

Acts 1981, No. 231, § 5: Feb. 26, 1981. Emergency clause provided: “It has been found and it is hereby declared that certain confusion exists regarding the types of facilities which may be provided and financed as public facilities projects as health care facilities and it is necessary that the intention and meaning of Act 142 of 1975 be clarified without delay in order that the public health and welfare may be advanced. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety shall be in force upon its approval.”

Acts 1981, No. 528, § 9: Mar. 17, 1981. Emergency clause provided: “It has been found and it is hereby declared that educational facilities, as defined in this Act, are essential to the continued, welfare, safety and economic growth of the State of Arkansas and her people and that the availability of financing for educational facilities under Act No. 142 of 1975, as amended, is immediately necessary for the development of educational facilities prior to the beginning of the 1981-82 school year. Therefore, an emergency is hereby declared to exist and this Act, being necessary for the preservation of the public peace, health and safety shall be in effect upon its passage and approval.”

Acts 1981, No. 827, § 6: Mar. 28, 1981. Emergency clause provided: “It has been found and it is hereby declared that educational facilities, as defined in this Act, are essential to the continued health, welfare, safety and economic growth of the State of Arkansas and her people and that the availability of financing for educational facilities under Act No. 142 of 1975, as amended, is immediately necessary for the development of educational facilities prior to the beginning of the 1981-82 school year. Therefore, an emergency is hereby declared to exist and this Act, being necessary for the preservation of the public peace, health and safety shall be in effect upon its passage and approval.”

Acts 1981, No. 857, § 3: Mar. 28, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that the law relating to the establishment, operation and power of municipal and county public facilities boards does not contain specific authority for such public facilities boards to own and operate public transportation facilities; that the rapidly increasing cost of motor fuel makes it impractical for persons of low income or retired persons living on fixed incomes to own personal motor vehicles to use for their necessary travel; that it is in the best interest of energy conservation and would be financially helpful to low income persons to authorize public facilities boards to own and operate public transportation facilities and that this Act is designed to accomplish this purpose and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1981 (Ex. Sess.), No. 18, § 7: Nov. 25, 1981. Emergency clause provided: “It has been found and it is hereby declared that the development of hydroelectric power projects, as defined in this Act, is essential to the meeting of urgent needs of the inhabitants of this State for electrical energy and that the method of developing and financing such projects authorized by this Act, is essential to the meeting of urgent needs of the inhabitants of this State for electrical energy and that the method of developing and financing such projects authorized by this Act is the most efficient and expeditious method for developing and financing some proposed hydroelectric power projects. Therefore, an emergency is declared and this Act, being necessary for the preservation of the public peace, health and safety, shall be in force upon its passage and approval.”

Acts 1983, No. 221, § 2: Feb. 16, 1983. Emergency clause provided: “It is hereby found and determined that the provisions of recently enacted federal legislation, including the Tax Equity and Fiscal Responsibility Act of 1982, have created a serious uncertainty as to the manner in which revenue bonds issued by Public Facilities Boards established under the authority of Act 142 of 1975, as amended, should be executed and that such uncertainty threatens to delay the financing of projects by such Public Facilities Boards and to make such financings more expensive, thereby jeopardizing the ability of residents of the State of Arkansas to realize the benefits to be obtained from such projects, and it is further found that the immediate passage of this Act is necessary to resolve such uncertainties and to assist citizens of the State of Arkansas in obtaining the benefits from such projects. Therefore, an emergency is declared to exist, and this Act, being necessary for the immediate preservation of the public peace, health and safety of the citizens of the State of Arkansas, shall be in full force and effect from and after its passage and approval.”

Acts 1983, No. 531, § 3: Mar. 18, 1983. Emergency clause provided: “It is hereby found and determined by the General Assembly that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and that this Act is immediately necessary to accomplish these public improvements. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety shall be in effect from and after its passage and approval.”

Acts 1987, No. 47, § 8: Feb. 16, 1987. Emergency clause provided: “It is hereby found and is hereby declared by the General Assembly of the State of Arkansas that for the benefit of the people of this state the increase of their commerce, welfare and prosperity and the improvement and maintenance of their health and living conditions, it is essential and necessary that additional sources for the payment of revenue bonds be authorized to assist in the financing of public facilities projects to which this act pertains. Therefore, an emergency is hereby declared to exist and this act, being necessary for the preservation of the public peace, health and safety, shall take effect and be in full force from and after its passage and approval.”

Acts 1987, No. 929, § 4: Apr. 13, 1987. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that for the benefit of the people of this State, the increase of their commerce, welfare, and prosperity, and the improvement and maintenance of their health and living conditions, it is essential and necessary that additional means be provided to assist in the financing of public facilities to which this Act pertains. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the preservation of the public peace, health and safety, shall take effect and be in full force from and after its passage and approval.”

Acts 1987, No. 1012, § 4: Apr. 14, 1987. Emergency clause provided: “It is hereby found and determined by the General Assembly that because of the case Ricarte v. State, CR 86-31, a question has arisen over the validity of Act 1224 of the Extended Session of 1976; that this Act is a reenactment of the former law; and that the immediate passage of this Act is necessary to clarify the state of the law on this issue. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1991, No. 279, § 7: Feb. 28, 1991. Emergency clause provided: “It is hereby found and determined by the General Assembly that the changes this Act makes in the public facilities board law will result in the more efficient and effective operation of those boards; that the services provided by public facilities boards are in many instances vital to the public health and welfare; that the effect of this Act will be to provide better services to the people served by public facilities boards; and that this Act should go into effect immediately in order to enhance the services of the public facilities boards as soon as possible. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1992 (1st Ex. Sess.), Nos. 26 and 34, § 8: Mar. 10, 1992. Emergency clause provided: “It is hereby found and determined by the General Assembly that the Public Facilities Boards Act is in need of strengthening; that this act provides checks and balances which will benefit the people of this state and that this act should go in effect immediately in order to better serve the people as soon as possible. Therefore, an emergency is hereby declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall be in full force and effect from and after its passage and approval.”

Acts 1993, No. 349, § 5: Mar. 3, 1993. Emergency clause provided: “It is hereby found and determined by the General Assembly that the present law pertaining to public facilities boards is inadequate to the extent of the definition of capital improvement facilities which may be acquired by the boards; that the type of property which may be acquired by the boards should be expanded as soon as possible; that this act so provides and until it goes into effect the authority of the public facilities boards will be unduly restrictive. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 2003, No. 1772, § 5: Apr. 22, 2003. Emergency clause provided: “It is found and determined by the General Assembly that the counties, municipalities, public instrumentalities and other governmental entities of the State of Arkansas are experiencing severe jail overcrowding, and that existing jail facilities may not be in compliance with applicable state and federal regulations. It is further recognized that funding for jail renovation, improvement, and construction is extremely limited and oftentimes can be funded only through the implementation of new sales taxes, and that the failure to immediately address this problem could result in the possible closure of existing jail facilities, and the release of incarcerants prior to the schedule expiration of their terms. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Research References

U. Ark. Little Rock L.J.

Note, Revenue Bonds—The Election Requirement: City of Hot Springs v. Creviston, 288 Ark. 286, 705 S.W.2d 415 (1986), 9 U. Ark. Little Rock L.J. 63.

Case Notes

Cited: Sanders v. Bradley County Human Servs. Pub. Facilities Bd., 330 Ark. 675, 956 S.W.2d 187 (1997).

14-137-101. Title.

This chapter may be referred to and cited as the “Public Facilities Boards Act.”

History. Acts 1975, No. 142, § 1; A.S.A. 1947, § 20-1701.

Case Notes

Cited: Cortez v. Independence County, 287 Ark. 279, 698 S.W.2d 291 (1985); Gillam v. Harding Univ., No. 4:08-CV-00363-BSM, 2009 U.S. Dist. LEXIS 53609 (E.D. Ark. June 24, 2009).

14-137-102. Legislative determination and purpose.

  1. It is determined by the General Assembly that adequate:
    1. Facilities for health care;
    2. Decent, safe, and sanitary residential housing;
    3. Off-street parking facilities;
    4. Facilities for recreation and to develop tourism;
    5. Waterworks facilities;
    6. Sewer facilities;
    7. Facilities for securing or developing industry;
    8. Energy facilities;
    9. Educational facilities; and
    10. Hydroelectric power projects
  2. The General Assembly finds that:
    1. The State of Arkansas is confronted with a severe energy crisis;
    2. The demand for fuels has outstripped the available supplies;
    3. The cost to the consumer for energy usage continues to increase at an accelerated rate;
    4. A great and growing number of residents of this state can no longer afford basic energy needs;
    5. The energy crisis has adversely affected the growth and stability of agriculture, commerce, and industry within the state, producing widespread unemployment;
    6. The energy crisis will be perpetuated by a continued dependence on depletable energy resources which are subject to rapid increases in price and uncertain availability, and by the wasteful and inefficient use of available energy supplies;
    7. These conditions are inimical to the economic security of the state and the health, welfare, and prosperity of its citizens.
  3. It is declared to be the public policy and responsibility of this state to encourage energy conservation and to promote the development and use of renewable energy resources in order to alleviate the undesirable social and economic conditions created by the energy crisis.
  4. The General Assembly finds that the public policy and responsibility of the state as set forth in this section cannot be fully attained without the use of public financing, and it is the purpose of this chapter to make such financing available for energy facilities which will reduce energy consumption and make use of renewable energy resources in residential, agricultural, commercial, or industrial applications.
  5. It is found that the providing of health care through establishment of health care facilities in many cities and counties in Arkansas has been facilitated by the availability of assistance by public facilities boards created by counties and cities; that it is in the best interest of the citizens of the State of Arkansas that assistance be provided, in the discretion of local public facilities boards, for all forms of health care for the citizens in such counties and cities; and that confusion exists regarding whether certain facilities are properly qualified under the terms of this chapter, and amendment thereof is necessary for the clarification of the facilities comprehended within the term “health care facilities” within the meaning of this chapter.

are essential to the physical and mental health, safety, and physical and economic welfare of the people of this state. In order to meet these public needs, it is essential that public financing be provided for the facilities. It is the purpose of this chapter to provide an alternative method of financing for the facilities.

History. Acts 1975, No. 142, § 2; 1981, No. 231, § 1; 1981, No. 827, § 1; 1981 (Ex. Sess.), No. 18, § 1; A.S.A. 1947, §§ 20-1702, 20-1702.1.

Case Notes

Cited: Cortez v. Independence County, 287 Ark. 279, 698 S.W.2d 291 (1985).

14-137-103. Definitions.

As used in this chapter, unless the context otherwise requires:

  1. “Public facilities board” or “board” means any board organized pursuant to the provisions of this chapter;
  2. “State” means the State of Arkansas;
  3. “Municipality” means any incorporated city or town in this state;
  4. “County” means any county in this state;
  5. “Governing body” means the council, board of directors, or other like body in which the legislative functions of a municipality are vested, or the quorum court of the county as it shall have been duly constituted and acting as the legislative body of the county pursuant to the provisions of Arkansas Constitution, Amendment 55, or if not so constituted and acting, the county court of the county;
  6. “Facilities” means real property, personal property, or mixed property of any and every kind including, without limitation, rights-of-way, utilities, materials, equipment, fixtures, machinery, furniture, furnishings, buildings, and other improvements of every kind;
  7. “Health care facilities” means facilities for furnishing physical or mental health care including, without limitation, hospitals, nursing homes, rest homes, long-term care facilities, and offices and clinics of doctors of medicine, dentists, optometrists, podiatrists, chiropractors, and related facilities;
  8. “Residential housing facilities” means facilities for single and multifamily residential housing units of any and all kinds and such other facilities as are incidental or appurtenant thereto;
  9. “Off-street parking facilities” means facilities for the off-street parking of motor vehicles on, above, or below ground level including, without limitation, lots, garages, decks, and such other facilities as are incidental or appurtenant thereto;
  10. “Recreational and tourist facilities” means facilities for the securing and developing of athletics, recreation, relaxation, travel, entertainment, cultural development, and other recreational and tourism activities including, without limitation, hotels, motels, inns, lodges, camping centers, folklore facilities, cultural development facilities, auditoriums, convention facilities, restaurants in connection with other facilities for the securing and developing of recreation or tourism, parks, scenic roadways and walkways, stadiums, arts and crafts centers, museums, marinas, swimming pools, tennis courts, golf courses, gymnasiums, transportation facilities, park facilities, and tourist information and assistance centers, and recreation areas;
  11. “Waterworks facilities” means facilities for the furnishing of water for domestic, commercial, agricultural, and industrial purposes including, without limitation, mains, hydrants, meters, valves, standpipes, storage tanks, pumping tanks, intakes, wells, impounding reservoirs, purification plants, and lakes, watercourses, or water supplies pertaining thereto;
  12. “Sewer facilities” means facilities for the collection, treatment, and disposal of sewage, liquid and solid waste, and industrial waste;
  13. “Acquire” means to obtain, at any time by gift, purchase, or other arrangement, any project or any portion of a project, whether theretofore constructed and equipped, theretofore partially constructed and equipped, or being constructed and equipped at the time of acquisition, for such consideration and pursuant to such terms and conditions as the board shall determine;
  14. “Construct” means to acquire or build, in whole or in part, in such manner and by such method, including contracting therefor, and if the latter, by negotiation or bidding upon such terms and pursuant to such advertising as determined by the board, under the circumstances existing at the time, as will most effectively serve the purposes of this chapter;
  15. “Equip” means to install or place in or on any building or structure equipment of any and every kind, whether or not affixed, including, without limitation, building service equipment, fixtures, heating equipment, air conditioning equipment, machinery, furniture, furnishings, and personal property of every kind;
  16. “Lease” means to lease for such rentals, for such periods, and upon such terms and conditions as the board shall determine and the granting of such extension and purchase options for such prices and upon such terms and conditions as the board shall determine;
  17. “Sell” means to sell for such price, in such manner, and upon such terms as the board shall determine including, without limitiation, public or private sale, and if public, pursuant to such advertisement as the public facilities board shall determine, for cash or on credit payable in lump sum or in such installments as the board shall determine, and if on credit, with or without interest and at such rate as the board may determine;
  18. “Ordinance” means, as to counties in which the quorum court of the county is not at the time duly constituted and acting as the legislative body of the county pursuant to the provisions of Arkansas Constitution, Amendment 55, an order of the county court of the county;
  19. “Lend” means to extend credit, make a loan to, acquire the obligations of, and generally, without limitation, engage in the financing of any facilities which the board shall have authority to construct, acquire, or equip pursuant to this chapter, upon such terms and with such security as the board deems suitable;
  20. “Energy facilities” means facilities in residential, agricultural, commercial, or industrial applications which:
    1. Reduce the amount of energy required to perform desired tasks; or
    2. Utilize renewable energy resources to supply energy needs;
  21. “Renewable energy resources” means any technology or source of energy which:
    1. Does not depend on the use of depletable fossil fuels such as oil, natural gas, and coal, or nuclear fuels; and
    2. Makes use of nondepletable supplies of energy including, without limitation, solar, wind, bioconversion, falling or flowing water, geothermal deposits, or municipal, commercial, industrial, agricultural, or individual waste products, or makes use of cogeneration technology for the production of energy;
  22. “Educational facilities” means real, personal, and mixed property of any and every kind intended for use by an educational institution in furtherance of its educational program including, but not limited to, dormitories, classrooms, laboratories, athletic fields, administrative buildings, utilities, equipment, and other property for use therein or thereon;
  23. “Emergency medical health care facilities” means real, personal, and mixed property of any and every kind used to furnish emergency medical health care and emergency medical services including, but not limited to:
    1. Ambulances or vehicles specifically designed, equipped, and licensed for transporting the sick or injured;
    2. Emergency medical equipment and supplies;
    3. Dispatching and other communication systems;
    4. Computers for billing, collections, and system design and control; and
    5. Training and administrative facilities;
  24. “Hydroelectric power project” means any facilities intended to be employed in the generation of electrical energy by the use of water as the source of generating power, whether standing, running, or falling, and facilities incidental or related thereto.

History. Acts 1975, No. 142, § 3; 1977, No. 446, § 1; 1981, No. 52, § 2; 1981, No. 231, § 2; 1981, No. 703, § 1; 1981, No. 827, § 2; 1981 (Ex. Sess.), No. 18, § 2; 1981 (Ex. Sess.), No. 23, § 8(a); A.S.A. 1947, § 20-1703; Acts 1989, No. 55, § 2.

Publisher's Notes. Acts 1985, No. 1001, § 8, provided that nothing in that act repealed, by implication or otherwise, Acts 1981 (Ex. Sess.), No. 23, which is codified as this section and §§ 14-43-601, 14-54-704, 14-266-10114-266-110, and 14-137-106.

Case Notes

Educational Facilities.

“Educational facilities” includes a private college and a project to be financed there. Cortez v. Independence County, 287 Ark. 279, 698 S.W.2d 291 (1985).

14-137-104. Provisions supplemental and controlling.

  1. This chapter shall be deemed to provide an additional and alternative method for the doing of the things authorized thereby and shall be regarded as supplemental and additional to powers conferred by other laws.
  2. The construction of facilities for public facilities projects by or on behalf of a public facilities board under the provisions of this chapter need not comply with the requirements of any other law applicable to the construction of public works or facilities.
  3. Notwithstanding any other provisions of state law or ordinance of any municipality or county to the contrary, except as otherwise expressly provided in this chapter, none of the powers granted to a board under the provisions of this chapter shall be subject to the supervision or regulation or require the approval or consent of the state, or of any municipality, county, or political subdivision of the state, or of any commission, board, body, bureau, official, or agency of the state or any municipality, county, or political subdivision.

History. Acts 1975, No. 142, § 19; A.S.A. 1947, § 20-1719.

Case Notes

Legislative Intent.

The General Assembly, in subsection (c), has mandated independence between the facilities boards and the counties. Sanders v. Bradley County Human Servs. Pub. Facilities Bd., 330 Ark. 675, 956 S.W.2d 187 (1997).

14-137-105. Construction.

This chapter, being necessary for the welfare of the state and its inhabitants, shall be liberally construed to effect the purposes of it.

History. Acts 1975, No. 142, § 20; A.S.A. 1947, § 20-1720.

Case Notes

Cited: Cortez v. Independence County, 287 Ark. 279, 698 S.W.2d 291 (1985).

14-137-106. Creation — Purposes — Definition.

    1. Any municipality or any county is authorized to create one (1) or more public facilities boards and to empower each board to own, acquire, construct, reconstruct, extend, equip, improve, operate, maintain, sell, lease, contract concerning, or otherwise deal in or dispose of health care facilities, emergency medical health care facilities, residential housing facilities, off-street parking facilities, recreational and tourist facilities, waterworks facilities, sewer facilities, facilities for securing or developing industry, energy facilities, hydroelectric power projects, education facilities, other capital improvement facilities, or any combination of such facilities, or any interest in such facilities including, without limitation, leasehold interests in and mortgages on such facilities.
    2. Public facilities boards created under this chapter are not administrative boards under the County Government Code, § 14-14-101 et seq.
  1. The boards may be further empowered to make loans to mortgage lenders, defined as all banks or trust companies, industrial loan institutions, credit unions, mortgage banking firms, national banking associations, savings and loan associations and investment banking firms that maintain a principal office or place of business in the state, and all insurance companies authorized to do business in the state, on condition that the mortgage lenders use the proceeds of each loan to provide financing for either health care facilities, emergency medical health care facilities, residential housing facilities, off-street parking facilities, recreational and tourist facilities, waterworks facilities, sewer facilities, facilities for securing or developing industry, energy facilities, educational facilities, hydroelectric power projects, other capital improvement facilities, or any combination of such facilities.
  2. Any such undertaking by a board will be sometimes referred to in this chapter as a “public facilities project” or “project”.
  3. As used in this section, the term “other capital improvement facilities” means, whether obtained by purchase, lease, construction, reconstruction, restoration, improvement, alteration, repair, or other means, any physical public betterment or improvement or any preliminary plans, studies, or surveys relative thereto; lands or rights in land, including without limitations, leases, air rights, easements, rights-of-way, or licenses; furnishings, machinery, vehicles, apparatus, equipment, or other personal property for use by the city or county; and any furnishings, machinery, vehicles, apparatus, or equipment for any public betterment or improvement, which shall include, without limiting the generality of the foregoing, the following:
    1. Any and all facilities for city or town halls, courthouses, and administrative, executive, or other public offices;
    2. Court facilities, jails, and police and sheriff stations, apparatus, and facilities;
    3. Firefighting facilities and apparatus;
    4. Public health facilities and apparatus;
    5. Hospitals, nursing homes, and similar extended-care facilities;
    6. Residential housing for low and moderate income, elderly, or individuals with disabilities and families;
    7. Parking facilities and garages;
    8. Educational and training facilities for public employees;
    9. Auditoriums, stadiums, and convention, meeting, or entertainment facilities;
    10. Ambulance and other emergency medical service facilities;
    11. Civil defense facilities;
    12. Air and water pollution control facilities;
    13. Drainage and flood control facilities and storm sewers;
    14. Arts and crafts centers;
    15. Museums and libraries;
    16. Public parks, playgrounds, or other public open spaces;
    17. Marinas;
    18. Swimming pools, tennis courts, golf courses, camping facilities, gymnasiums, and other recreational facilities;
    19. Tourist information and assistance centers;
    20. Historical, cultural, natural, or folklore sites;
    21. Fair and exhibition facilities;
    22. Streets and street lighting, alleys, sidewalks, roads, bridges, and viaducts;
    23. Airports, passenger or freight terminals, and hangars and related facilities;
    24. Barge terminals, ports, harbors, ferries, wharves, docks, and similar marine services; and slack water harbors, water resource facilities, waterfront development facilities, and navigational facilities;
    25. Public transportation facilities;
    26. Public water systems and related transmission and distribution facilities; storage facilities, wells, and impounding reservoirs, treatment plants, lakes, dams, watercourses, and water rights;
    27. Sewer collection systems and treatment plants;
    28. Maintenance and storage buildings and facilities;
    29. Incinerators, and garbage and solid waste collection disposal, compacting, and recycling facilities of every kind; and
    30. Social and rehabilitative services facilities.

History. Acts 1975, No. 142, § 4; 1975 (Extended Sess., 1976), No. 1224, § 1; 1977, No. 446, § 2; 1981, No. 857, § 1; 1981 (1st Ex. Sess.), No. 18, § 3; 1981 (1st Ex. Sess.), No. 23, § 8(b); 1985, No. 973, §§ 1, 2; A.S.A. 1947, §§ 20-1704, 20-1704.2; Acts 1987, No. 929, § 1; reen. Acts 1987, No. 1012, § 1; Acts 1989, No. 55, § 1; 1991, No. 279, § 1; 1993, No. 349, § 1; 1997, No. 208, § 10.

A.C.R.C. Notes. Part of this section was reenacted by Acts 1987, No. 1012, § 1. Acts 1987, No. 834 provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

Acts 1989, No. 55, § 1, provided, in part:

“The term ‘other capital improvement facilities’ shall, until June 30, 1991, include, in addition to the foregoing, electric distribution facilities, and facilities related thereto, in the case of public facilities boards heretofore or hereafter created by municipalities and counties which have outstanding, on January 1, 1989, debt which was issued or incurred for the purpose of financing hydroelectric power facilities.”

Acts 1997, No. 208, § 1, as reenacted by Acts 2017, No. 255, § 1, provided: “Legislative intent and purpose. The General Assembly hereby acknowledges that many of the laws relating to individuals with disabilities are antiquated, functionally outmoded, derogatory, and ambiguous or are inconsistent with more recently enacted provisions of the law. Consequently, it is the intent of the General Assembly and the purpose of this act to clarify the relevant chapters of Titles 1, 6, 9, 13, 14, 16, 17, 20, 22, 23, and 27 of the Arkansas Code of 1987 Annotated.”

Publisher's Notes. Acts 1985, No. 1001, § 8, provided that nothing in that act repealed, by implication or otherwise, Acts 1981 (Ex. Sess.), which is codified as this section and §§ 14-43-601, 14-54-704, 14-266-10114-266-110, and 14-137-103.

Amendments. The 1993 amendment rewrote (d).

The 1997 amendment substituted “individuals with disabilities” for “handicapped persons” in (d)(6).

Case Notes

Illustrative Cases.

City of Searcy, Arkansas, did not violate the First Amendment to the U.S. Constitution, Ark. Const., Amend. 65, or Ark. Const., Art. 12, § 5 when it created a housing facilities board under the Arkansas Public Facilities Board Act (PFBA), § 14-137-101 et seq., and issued bonds so a university that was associated with the Churches of Christ could fund building projects. The PFBA allowed the housing facilities board to issue bonds to finance projects that had a public purpose, education was a public purpose, and neither the city nor the board acted with the purpose of advancing or inhibiting religion. Gillam v. Harding Univ., No. 4:08-CV-00363-BSM, 2009 U.S. Dist. LEXIS 53609 (E.D. Ark. June 24, 2009).

Cited: Sanders v. Bradley County Human Servs. Pub. Facilities Bd., 330 Ark. 675, 956 S.W.2d 187 (1997).

14-137-107. Creating ordinance — Authority.

  1. Each public facilities board shall be created by ordinance of the governing body. The ordinance:
    1. Shall give the board a name which:
      1. Shall include the name of the creating municipality or county;
      2. Shall be descriptive of the powers granted to the board; and
      3. Shall be distinctive from the name given to any other board created by the municipality or county;
      1. Shall specify the powers granted to the board; and
      2. May place specific limitations on the exercise of the powers granted, including limitations on the board's area of operations, the use of public facilities projects of the board, and the board's authority to issue bonds.
  2. Unless limited by the creating ordinance, each board created by a municipality shall be authorized to accomplish public facilities projects within or near or partly within and partly near the municipality. Each board created by a county shall be authorized to accomplish public facilities projects within or partly within and partly without the county.

History. Acts 1975, No. 142, § 5; A.S.A. 1947, § 20-1705.

Case Notes

Cited: Sanders v. Bradley County Human Servs. Pub. Facilities Bd., 330 Ark. 675, 956 S.W.2d 187 (1997).

14-137-108. Board members.

    1. Each public facilities board shall consist of five (5) members unless there is an expansion of the board to provide services outside the boundaries of the governmental unit from which it obtains power.
    2. The provisions of this subsection are applicable only to:
      1. Boards in counties having a population of less than one hundred fifty thousand (150,000) according to the most recent federal decennial census; and
      2. All boards established by municipalities having a population of less than one hundred thousand (100,000) according to the most recent federal decennial census, regardless of where located.
        1. The initial members shall be appointed by the mayor of the creating municipality or the county judge of the creating county for terms, respectively, of:
          1. One (1) year;
          2. Two (2) years;
          3. Three (3) years;
          4. Four (4) years; and
          5. Five (5) years.
        2. Members are not required to be residents of the municipality or county that has created the public facilities board.
          1. Successor members shall be nominated by a majority of the board and appointed by the mayor or the county judge, subject to confirmation by the governing body of the municipality or county for staggered terms of five (5) years each, unless the ordinance pursuant to which the public facilities board was formed provides for electing successor members by the membership of the board's service area.
          2. The board shall submit a written list of three (3) successor nominees to the mayor or the county judge at least sixty (60) days before the expiration of the term.
          3. If the board fails to submit a written list of nominees at least sixty (60) days before the expiration of the term, the mayor or the county judge may appoint a successor member without a nomination from the board.
        1. In a municipality located in a metropolitan statistical area designated by the United States Bureau of the Census having a population of one million (1,000,000) or more persons according to the most recent federal decennial census, successor members shall be appointed by a majority of the board.
      1. Each member shall serve until his or her successor is elected and qualified.
      2. A member is eligible to succeed himself or herself.
    3. Each member shall qualify by taking and filing with the clerk of the municipality or county creating the board the oath of office in which the member shall swear to support the United States Constitution and the Arkansas Constitution and to discharge faithfully his or her duties in the manner provided by law.
        1. In the event of a vacancy in the membership of the board, however caused, the mayor or the county judge shall appoint a successor member nominated by a majority of the board to serve the unexpired term, subject to confirmation by the governing body of the municipality or county.
        2. The board shall submit a written list of three (3) nominees to fill the vacancy to the mayor or the county judge not later than sixty (60) days after the vacancy occurs.
        3. If the board fails to submit a written list of nominees not later than sixty (60) days after the vacancy, the mayor or the county judge may appoint a successor member without a nomination from the board.
      1. In the event of a vacancy in the membership of the board, however caused, in a municipality located in a metropolitan statistical area designated by the United States Bureau of the Census having a population of one million (1,000,000) or more persons according to the most recent federal decennial census, the board shall appoint a successor member to serve the unexpired term.
    4. A member of the board shall not receive compensation for his or her services, but is entitled to reimbursement for reasonable and necessary expenses incurred in the performance of his or her duties.
    5. Any member of the board may be removed for misfeasance, malfeasance, or willful neglect of duty by the mayor of the municipality or the county judge of the county, as the case may be, which created the board, after reasonable notice of and an opportunity to be heard concerning the alleged grounds for removal.
        1. If the jurisdiction of a board, pursuant to interlocal agreements, expands to provide services outside the boundaries of the governmental unit from which it obtains power, then not more than two (2) additional members per governmental unit may be added pursuant to the terms of any relevant interlocal agreement.
          1. Each member shall be appointed by the mayor of the newly participating municipality or the county judge of the newly participating county and shall serve for a term agreed upon in the interlocal agreement.
          2. The term shall not exceed five (5) years.
        1. The other provisions of this section shall apply to these additional members.
        2. No additional member is eligible to serve as chair of the board.
    1. County public facilities boards in counties having a population of one hundred fifty thousand (150,000) or more according to the most recent federal decennial census and public facilities boards established by all municipalities having a population of one hundred thousand (100,000) or more according to the most recent federal decennial census shall consist of five (5) members unless there is an expansion of the board to provide services outside the boundaries of the governmental unit from which it obtains power.
        1. The initial members shall be appointed by the mayor of the creating municipality or the county judge of the creating county, subject to confirmation by the governing body of the municipality or county for terms as determined by the governing body of the municipality or county.
        2. The terms shall be set in a manner that results in the expiration of terms on a staggered basis.
          1. Successor members shall be appointed by the mayor of the creating municipality or the county judge of the creating county subject to confirmation by the governing body of the municipality or county for terms as determined by the governing body of the municipality or county.
          2. The terms shall be set in a manner that results in the expiration of terms on a staggered basis.
        1. In a municipality located in a metropolitan statistical area designated by the United States Bureau of the Census having a population of one million (1,000,000) or more persons according to the most recent federal decennial census, successor members shall be appointed by a majority of the board.
      1. Each member shall serve until his or her successor is elected and qualified.
      2. A member is eligible to succeed himself or herself.
        1. The governing body of the municipality or county may limit by ordinance the number of terms a person may serve on the board.
        2. Subdivision (b)(2)(E)(i) of this section shall not apply to a municipality located in a metropolitan statistical area designated by the United States Bureau of the Census having a population of one million (1,000,000) or more persons according to the most recent federal decennial census.
      3. Members of public facilities boards established by municipalities who have special expertise as designated by the governing body of the municipality:
        1. Are not required to be residents of the municipality that established the public facilities board but shall be residents of the county in which the municipality is located; and
        2. May be exempted by the governing body of the municipality from the term limits for board members, if any, set out in the ordinance establishing the public facilities board.
    2. Each member shall qualify by taking and filing with the clerk of the municipality or county creating the board his or her oath of office in which he or she shall swear to support the United States Constitution and the Arkansas Constitution and to discharge faithfully his or her duties in the manner provided by law.
    3. In the event of a vacancy in the membership of the board, however caused, a majority of the board shall elect a successor member to serve the unexpired term.
    4. The members of the board shall not receive compensation for their services, but are entitled to reimbursement for reasonable and necessary expenses incurred in the performance of their duties.
    5. Any member of the board may be removed for misfeasance, malfeasance, or willful neglect of duty, by the mayor of the municipality or the county judge of the county, as the case may be, which created the board after reasonable notice of and an opportunity to be heard concerning the alleged grounds for removal.
        1. If the jurisdiction of a board, under interlocal agreements, expands to provide services outside the boundaries of the governmental unit from which it obtains power, then not more than two (2) additional members per governmental unit may be added under the terms of any relevant interlocal agreement.
        2. These members shall be appointed initially by the mayor of the newly participating municipality or the county judge of the newly participating county and shall serve for a term agreed upon in the interlocal agreement, provided that the term shall not exceed five (5) years.
      1. This section shall apply to these additional members if no additional member is eligible to serve as chair of the board.

History. Acts 1975, No. 142, § 6; 1985, No. 937, §§ 1, 2; A.S.A. 1947, §§ 20-1706, 20-1706.1; Acts 1987, No. 407, § 1; 1987, No. 929, § 2; 1992 (1st Ex. Sess.), No. 26, §§ 2, 3; 1992 (1st Ex. Sess.), No. 34, §§ 2, 3; 1999, No. 782, § 1; 2003, No. 544, § 1; 2005, No. 1276, § 1; 2009, No. 407, § 1.

Amendments. The 2003 amendment added the subdivision designations in (a)(2) and (a)(3)(A)(i); rewrote (a)(3)(B) and (a)(5); substituted “Each member shall” for “These members shall initially” in (a)(8)(A)(ii); and made stylistic gender neutral changes throughout.

The 2005 amendment inserted “or her” in (b)(2)(C); inserted “or herself” in (b)(2)(D); and added (b)(2)(F).

The 2009 amendment inserted (a)(3)(B)(ii), (a)(5)(B), (b)(2)(B)(ii), and (b)(2)(E)(ii), and redesignated subdivisions accordingly; and made minor stylistic changes.

Case Notes

Cited: Sanders v. Bradley County Human Servs. Pub. Facilities Bd., 330 Ark. 675, 956 S.W.2d 187 (1997).

14-137-109. Officers — Executive director.

    1. The members of each public facilities board shall meet and organize by electing one (1) of their number as chairman, one (1) as vice chairman, one (1) as secretary, and one as treasurer, and such officers shall be elected annually thereafter in like manner.
    2. The duties of secretary and treasurer may be performed by the same member.
  1. The board may also appoint an executive director who shall serve at the pleasure of the board and receive such compensation as shall be fixed by the board.

History. Acts 1975, No. 142, § 6; A.S.A. 1947, § 20-1706; Acts 1991, No. 279, § 2.

14-137-110. Meetings — Records.

    1. Each public facilities board shall meet upon the call of its chairman, or a majority of its members, and at such times as may be specified in its bylaws for regular meetings. A majority of its members shall constitute a quorum for the transaction of business.
    2. The affirmative vote of a majority of the members present at a meeting of the board shall be necessary for any action taken by the board.
    3. Any action taken by the board may be authorized by resolution, and such resolution shall take effect immediately unless a later effective date is specified in the resolution.
    4. No vacancy in the membership of the board shall impair the right of a quorum to exercise all the rights and perform all the duties of the board.
    1. The secretary of the board shall keep a record of the proceedings of the board and shall be custodian of all books, documents, and papers filed with the board and of the minute book or journal of the board and of its official seal.
    2. The secretary may cause copies to be made of all minutes and other records and documents of the board. He may give certificates under the official seal of the board to the effect that the copies are true copies, and all persons dealing with the board may rely upon the certificates.
    3. County public facilities boards located in counties having a population of one hundred fifty thousand (150,000) or more persons according to the most recent federal decennial census shall preserve and maintain their records and documents at such locations and in such manner as prescribed by ordinance of the municipality or county which created the boards.

History. Acts 1975, No. 142, § 6; A.S.A. 1947, § 20-1706; Acts 1992 (1st Ex. Sess.), No. 26, § 1; 1992 (1st Ex. Sess.), No. 34, § 1.

Amendments. The 1992 (1st Ex. Sess.) amendment by Nos. 26 and 34 added (b)(3).

14-137-111. Powers generally — Bidding and appraisal requirements.

  1. Each public facilities board is authorized and empowered:
    1. To have perpetual succession as a body politic and corporate and to adopt bylaws for the regulation of its affairs and the conduct of its business;
    2. To adopt an official seal and alter it at pleasure;
    3. To maintain an office at such place in the municipality or county creating the board as it may designate;
    4. To sue and be sued in its own name;
    5. To fix, charge, and collect rents, fees, and charges for the use of any public facilities project;
    6. To employ and pay compensation to such employees and agents, including attorneys, consulting engineers, architects, surveyors, accountants, financial experts, and such other employees and agents as may be necessary in its judgment, and to fix their compensation;
    7. To accomplish public facilities projects as authorized by this chapter and the ordinance creating the board;
    8. To do any and all other acts and things in this chapter authorized or required to be done, whether or not included in the powers mentioned in this section;
    9. To lend money, directly or indirectly, for the financing of the construction, acquisition, and equipment of all or a portion of a public facilities project;
    10. To invest money, including a major portion of the proceeds of any issue of bonds for the term of the bonds or a shorter period, in consideration of a contract to make payment or payments to provide for the payment of the principal, premium, if any, and interest on the bonds when due;
    11. In the acquisition, construction, and equipment of, and in the operation of, hydroelectric power projects:
      1. To contract with any regulated public utility for the supplying of electrical energy produced by any such project, upon terms acceptable to the board; and
      2. To apply to the appropriate agencies of the state, the United States, or any state thereof, and to any other proper agency for such licenses, permits, certificates, or approvals as may be necessary, and to obtain, hold, and use the licenses, permits, certificates, and approvals. However, nothing contained in this subdivision shall be construed to require a board to obtain any license, certificate, permit, or approval from the Arkansas Public Service Commission; and
    12. To do any and all other things necessary or convenient to accomplish the purposes of this chapter.
    1. When purchasing or selling real or personal property, each public facilities board shall be subject to the bidding and appraisal requirements that apply to the county or city which created the board, except as allowed under subdivision (b)(2) of this section.
    2. A public facilities board may sell or transfer a waterworks facilities to, or purchase or otherwise acquire waterworks facilities from, a public body created under the Consolidated Waterworks Authorization Act, § 25-20-301 et seq., without application of the bidding and appraisal requirements of subdivision (b)(1) of this section.
  2. With regard to public facilities boards that own, operate, or administer jail facilities, the public facilities boards shall additionally possess the power and authority:
    1. To exercise those powers granted to jail boards pursuant to § 12-41-701 et seq.;
    2. To enter into contracts with any state agency, state or governmental body or political subdivision, public or private corporation, agencies or instrumentalities of the United States Government, or other governmental body or political subdivision, public or private corporation, or other legal entity, or any individual, or a combination of any of these entities and individuals, to provide for the design, financing, construction, expansion, operation, and maintenance of all or any portion of a jail facility or for any combination of such services or functions;
    3. To enter into long-term or short-term contracts with counties, municipalities, public entities, the State of Arkansas, agencies or instrumentalities of the United States Government, and other public entities under which the public facilities board shall provide nightly or other periodic housing of these entities' misdemeanants or other incarcerants for fee compensation or other consideration;
    4. To offer incarcerants the option to participate in community service programs and all other forms of voluntary labor;
    5. To enter into contracts with third-party governmental entities under which the board may receive compensation for supplying to these entities the voluntary services and labor of the board's incarcerants;
    6. To enter into jail management contracts with third-party governmental or private organizations upon terms and conditions that the board determines appropriate;
    7. To pledge contract revenue receivables realized through the execution of contracts with third parties for housing for incarcerants;
    8. To pledge contract revenue receivables realized through the execution of contracts with third parties for the labor of incarcerants or services rendered; and
    9. To pledge all other revenues and income of every nature that the board may realize through its operations that are otherwise expressly pledged and identified in the trust indenture that the board may execute in connection with the issuance of its debt.

History. Acts 1975, No. 142, § 7; 1977, No. 446, § 3; 1981 (1st Ex. Sess.), No. 18, § 4; A.S.A. 1947, § 20-1707; Acts 1987, No. 47, § 1; 1991, No. 506, § 1; 2003, No. 549, § 1; 2003, No. 1772, § 3.

Publisher's Notes. Acts 1987, No. 47, § 5, provided that the purpose of this act is to authorize public facilities boards to finance all, or a portion of, public facilities projects by issuing revenue bonds, a portion of the proceeds of which may be used to pay the costs of all, or a portion, of a public facilities project and expenses of issuing the bonds and a major portion of the proceeds of which may be invested in consideration of contracts to make payments at least sufficient, alone or with other available revenues pledged, to pay the principal of, premium, if any, and interest on the bonds when due, and the General Assembly declared that the issuance of such bonds for such purposes is a public purpose for the issuance of revenue bonds under Ark. Const. Amend. 65.

Amendments. The 2003 amendment by No. 549 inserted the subdivision (b)(1) designation; added (b)(2); and in present (b)(1), deleted “Hereafter” from the beginning and added “except as allowed under subdivision (b)(2) of this section” to the end.

The 2003 amendment by No. 1772 added (c).

Cross References. Repayment of debt issued by jail board or similar public facility, § 12-41-719.

Case Notes

Cited: Sanders v. Bradley County Human Servs. Pub. Facilities Bd., 330 Ark. 675, 956 S.W.2d 187 (1997).

14-137-112. Acquiring and transferring facilities.

  1. Any municipality or county may acquire facilities for a public facilities project, or any portion thereof, including a project site, by gift, purchase, lease, or condemnation, and may transfer any such facilities to a public facilities board created by the municipality or county by sale, lease, or gift.
  2. Transfer may be authorized by ordinance of the governing body without regard to the requirements, restrictions, limitations, or other provisions contained in any other law.
  3. Public facilities boards which operate water works facilities may exercise the power of eminent domain in accordance with the procedures prescribed by § 18-15-201 et seq.
  4. A county public facilities board may transfer land to the Arkansas State Game and Fish Commission with or without compensation, provided that the Arkansas State Game and Fish Commission agrees to develop a wildlife management area or to construct, stock, and maintain a public fishing lake thereon.

History. Acts 1975, No. 142, § 17; A.S.A. 1947, § 20-1717; Acts 1991, No. 279, § 3; 1991, No. 1091, § 6.

14-137-113. Postsecondary education or occupational training facilities.

Any public facilities board organized under the provisions of this chapter is authorized and empowered to include in the public facilities projects granted to the board, facilities for postsecondary education and occupational training programs, unless the ordinance creating the board placed specific limitations on the exercise of the powers granted or, from and after the passage of this section, the governing board limits by ordinance the public facilities projects in which the board is empowered to accomplish.

History. Acts 1981, No. 528, § 4; A.S.A. 1947, § 20-1704.1.

Publisher's Notes. In reference to the term “the passage of this section”, Acts 1981, No. 528, was signed by the Governor and became effective on March 17, 1981.

Case Notes

Bonds.

Legislative approval of bonds for financing higher educational facilities is found in this section which empowers public facilities boards to include “facilities for post-secondary education” in public facilities projects. Cortez v. Independence County, 287 Ark. 279, 698 S.W.2d 291 (1985).

City of Searcy, Arkansas, did not violate the First Amendment to the U.S. Constitution, Ark. Const., Amend. 65, or Ark. Const., Art. 12, § 5 when it created a housing facilities board under the Arkansas Public Facilities Board Act (PFBA), § 14-137-101 et seq., and issued bonds so a university that was associated with the Churches of Christ could fund building projects. The PFBA allowed the housing facilities board to issue bonds to finance projects that had a public purpose, education was a public purpose, and neither the city nor the board acted with the purpose of advancing or inhibiting religion. Gillam v. Harding Univ., No. 4:08-CV-00363-BSM, 2009 U.S. Dist. LEXIS 53609 (E.D. Ark. June 24, 2009).

14-137-114. Tax exemption of properties.

It is declared that each public facilities board created pursuant to this chapter will be performing public functions and will be a public instrumentality of the municipality or county creating the board. Accordingly, all properties at any time owned by the board and the income therefrom shall be exempt from all taxation in the State of Arkansas.

History. Acts 1975, No. 142, § 14; A.S.A. 1947, § 20-1714.

14-137-115. Use of funds and revenue — Bonds.

  1. Public facilities boards are authorized to use any available funds and revenues for the accomplishment of all or a portion of public facilities projects and may issue bonds, as authorized by this chapter, for the accomplishment of all or a portion of public facilities projects, either alone or together with other available funds and revenues.
  2. Bonds may be issued in principal amounts as shall be sufficient to pay the costs of issuing bonds, the amount necessary for a reserve, if deemed desirable, the amount necessary to provide for debt service until revenues for the payment thereof are available, the amount necessary to acquire a contract providing for payments to the board at a rate or rates at least sufficient to provide for, alone or with any other revenues that may be pledged, debt service on the bonds, if deemed desirable, and to pay any other costs and expenditures of whatever nature incidental to the accomplishment of all or a portion of the public facilities project involved and the placing of it in operation.
  3. Each county public facilities board in a county having a population of one hundred fifty thousand (150,000) or more according to the most recent federal decennial census and each public facilities board established by a municipality having a population of more than one hundred thousand (100,000) according to the most recent federal decennial census, regardless of where located, shall annually contract with a certified public accountant to perform an audit of the board's revenues which are not pledged to outstanding bonded indebtedness. The board shall furnish a copy of the audit report to the governing body of the municipality or county which created the board and the board shall make the audit report available to the public for inspection under the Freedom of Information Act, § 25-19-101 et seq.

History. Acts 1975, No. 142, § 8; A.S.A. 1947, § 20-1708; Acts 1987, No. 47, § 2; 1992 (1st Ex. Sess.), No. 26, § 4; 1992 (1st Ex. Sess.), No. 34, § 4.

Publisher's Notes. As to purpose of Acts 1987, No. 47, see Publisher's Notes, § 14-137-111.

Amendments. The 1992 (1st Ex. Sess.) amendment by Nos. 26 and 34 added (c).

Case Notes

Illustrative Cases.

City of Searcy, Arkansas, did not violate the First Amendment to the U.S. Constitution, Ark. Const., Amend. 65, or Ark. Const., Art. 12, § 5 when it created a housing facilities board under the Arkansas Public Facilities Board Act (PFBA), § 14-137-101 et seq., and issued bonds so a university that was associated with the Churches of Christ could fund building projects. The PFBA allowed the housing facilities board to issue bonds to finance projects that had a public purpose, education was a public purpose, and neither the city nor the board acted with the purpose of advancing or inhibiting religion. Gillam v. Harding Univ., No. 4:08-CV-00363-BSM, 2009 U.S. Dist. LEXIS 53609 (E.D. Ark. June 24, 2009).

14-137-116. Issuance, sale, and execution of bonds.

    1. The issuance of bonds shall be by resolution of the public facilities board.
    2. As the resolution authorizing their issuance may provide, the bonds may:
      1. Be coupon bonds payable to bearer, but subject to registration as to principal or as to principal and interest;
      2. Be exchangeable for bonds of another denomination;
      3. Be in such form and denominations;
      4. Be made payable at such places within or without the state;
      5. Be issued in one (1) or more series;
      6. Bear such date or dates, and mature at such time or times, not exceeding forty (40) years from the respective dates;
      7. Bear interest at such rate or rates;
      8. Be payable in such medium of payment;
      9. Be subject to such terms of redemption; and
      10. Contain such terms, covenants, and conditions including, without limitation, those pertaining to:
        1. The custody and application of the proceeds of the bonds;
        2. The collection and disposition of revenues;
        3. The maintenance of various funds and reserves;
        4. The nature and extent of the security and pledging of revenues;
        5. The rights, duties, and obligations of the board and the trustee for the holders and registered owners of the bonds; and
        6. The rights of the holders and registered owners of the bonds.
    3. There may be successive bond issues for the purpose of financing the same public facilities project, and there may be successive bond issues for financing the cost of reconstructing, replacing, constructing additions to, extending, improving, and equipping public facilities projects already in existence, whether or not originally financed by bonds issued under this chapter, with each successive issue to be authorized as provided by this chapter.
    4. Priority between and among issues and successive issues as to security of the pledge of revenues and lien on the public facilities project involved may be controlled by the resolution authorizing the issuance of the bonds.
    5. Subject to the provisions of this section pertaining to registration, the bonds shall have all the qualities of negotiable instruments under the laws of the State of Arkansas.
    6. Without limiting the generality of the foregoing, the resolution may provide for the investment of a major portion of the proceeds of the bonds in consideration of a contract to make payment or payments at least sufficient, alone or with other revenues pledged, to provide for principal, premium, if any, and interest on the bonds, as due.
    1. The resolution authorizing the bonds may provide for the execution by the board of an indenture which defines the rights of the holders and registered owners of the bonds and provides for the appointment of a trustee for the holders and registered owners of the bonds.
    2. The indenture may control the priority between and among successive issues and may contain any other terms, covenants, and conditions that are deemed desirable including, without limitation, those pertaining to:
      1. The custody and application of proceeds of the bonds;
      2. The maintaining of rates and charges;
      3. The collection and disposition of revenues;
      4. The maintenance of various funds and reserves;
      5. The nature and extent of the security and pledging of revenues;
      6. The rights, duties, and obligations of the board and the trustee; and
      7. The rights of the holders and registered owners of the bonds.
  1. The bonds may be sold at public or private sale for such price including, without limitation, sale at a discount, and in such manner as the board may determine by resolution.
    1. The bonds shall be executed by the manual or facsimile signature of the chairman and by the manual or facsimile signature of the secretary of the board.
    2. The coupons attached to the bonds may be executed by the facsimile signature of the chairman of the board.
    3. In case any of the officers whose signatures appear on the bonds or coupons shall cease to be such officers before the delivery of the bonds or coupons, their signatures shall nevertheless be valid and sufficient for all purposes.

History. Acts 1975, No. 142, § 9; 1981, No. 528, §§ 5, 6; 1981, No. 703, § 2; 1983, No. 221, § 1; A.S.A. 1947, § 20-1709; Acts 1987, No. 47, § 3.

Publisher's Notes. As to purpose of Acts 1987, No. 47, see Publisher's Notes, § 14-137-111.

14-137-117. Refunding bonds.

  1. Bonds may be issued for the purpose of refunding any obligations issued under this chapter. Such refunding bonds may be combined with bonds issued under the provisions of § 14-137-116 into a single issue.
  2. When bonds are issued under this section for refunding purposes, the bonds may either be sold or delivered in exchange for the outstanding obligations. If sold, the proceeds may be either applied to the payment of the obligations refunded or deposited in escrow for the retirement thereof either at maturity or upon any authorized redemption date.
    1. All bonds issued under this section shall in all respects be authorized, issued, and secured in the manner provided for other bonds issued under this chapter and shall have all the attributes of such bonds.
    2. The resolution under which the refunding bonds are issued may provide that any of the refunding bonds shall have the same priority of lien on the revenues pledged for their payment as was enjoyed by the obligations refunded thereby.

History. Acts 1975, No. 142, § 11; A.S.A. 1947, § 20-1711.

14-137-118. Investment of public funds in bonds.

Any municipality, or any board, commission, or other authority duly established by ordinance of any municipality, or the boards of trustees, respectively, of the firemen's relief and pension fund and the policemen's pension and relief fund of any municipality, or the board of trustees of any retirement system created by the General Assembly of the State of Arkansas, may, in its discretion, invest any of its funds not immediately needed for its purposes in bonds issued under the provisions of this chapter. Bonds issued under the provisions of this chapter shall be eligible to secure the deposit of public funds.

History. Acts 1975, No. 142, § 16; A.S.A. 1947, § 20-1716.

Publisher's Notes. Acts 1977, No. 793, § 11(3), provided that the authority of public retirement systems to invest funds of the systems in public facility board bonds as authorized in this section shall be construed to authorize the making of investments in these funds and accounts only in accordance with the procedures set forth in §§ 24-3-10124-3-414.

14-137-119. Bonds — Tax exemption.

Bonds issued under this chapter and the income therefrom shall be exempt from all state, county, and municipal taxes. This exemption includes income and estate taxes.

History. Acts 1975, No. 142, § 15; A.S.A. 1947, § 20-1715.

A.C.R.C. Notes. Language excluding property taxes from the exemption provided by this section was deleted pursuant to Ark. Const. Amend. 57, § 1 and § 26-3-302. Arkansas Const. Amend. 57, § 1 provides that the General Assembly may classify intangible personal property for assessment at lower percentages of value than other property and may exempt one or more classes of intangible personal property from taxation of intangible personal property on a basis other than ad valorem. Section 26-3-302 exempts all intangible personal property in this state from all ad valorem tax levies of counties, cities, and school districts in the state as of January 1, 1976.

14-137-120. Obligations on bonds.

  1. It shall be plainly stated on the face of each bond that it has been issued under the provisions of this chapter, that the bonds are obligations only of the public facilities board, and that in no event shall they constitute an indebtedness for which the faith and credit of the creating municipality or county or any of its revenues are pledged.
  2. No member of the board shall be personally liable on the bonds or for any damages sustained by anyone in connection with any contracts entered into in carrying out the purpose and intent of this chapter unless he shall have acted with a corrupt intent.
  3. The principal of and interest on the bonds shall be payable from:
    1. Revenues derived from the public facilities project acquired, constructed, reconstructed, equipped, extended, or improved, in whole or in part, with the proceeds of the bonds;
    2. Obligations of:
      1. The owners of public facilities projects; or
      2. Any person with whom the proceeds of the bonds, or a portion thereof, are invested by contract or otherwise;
    3. Any other funds or sources of funds of the board specifically pledged and which are set aside as a special fund or source, other than taxes or assessments for local improvements, for the purpose of paying the principal of and interest on the bonds; or
    4. Any combination of subdivisions (1), (2), and (3) of this subsection.
  4. The board is authorized to pledge those revenues, obligations, other special funds or sources to pay the principal of and interest on the bonds.

History. Acts 1975, No. 142, § 10; 1977, No. 446, § 4; A.S.A. 1947, § 20-1710; Acts 1987, No. 47, § 4.

Publisher's Notes. As to purpose of Acts 1987, No. 47, see Publisher's Notes, § 14-137-111.

Case Notes

Cited: Cortez v. Independence County, 287 Ark. 279, 698 S.W.2d 291 (1985); Sanders v. Bradley County Human Servs. Pub. Facilities Bd., 330 Ark. 675, 956 S.W.2d 187 (1997).

14-137-121. Mortgage liens — Enforcement.

  1. The resolution or indenture referred to in § 14-137-116 may, or may not, impose a foreclosable mortgage lien upon or security interest in all or any portion of the lands, buildings, or facilities acquired, constructed, reconstructed, extended, equipped, or improved, in whole or in part, with the proceeds of bonds issued under this chapter, and the nature and extent of the mortgage lien or security interest may be controlled by the resolution or indenture including, without limitation, provisions pertaining to the release of all or part of the lands, buildings, or facilities from the mortgage lien or security interest and the priority of the mortgage lien or security interest in the event of successive bond issues as authorized by § 14-137-116.
  2. Subject to such terms, conditions, and restrictions as may be contained in the resolution or indenture authorizing or securing the bonds, any holder or registered owner of bonds issued under the provisions of this chapter, or a trustee, on behalf of all holders and registered owners, may, either at law or in equity, enforce the mortgage lien or security interest and may, by proper suit, compel the performance of the duties of the members and employees of the issuing board as set forth in this chapter, the ordinance creating the board, and the resolution or indenture authorizing or securing the bonds.

History. Acts 1975, No. 142, § 12; A.S.A. 1947, § 20-1712.

14-137-122. Receivership upon default on bonds.

    1. In the event of a default in the payment of the principal of or interest on any bonds issued under the provisions of this chapter, any court having jurisdiction may appoint a receiver to take charge of the public facilities project upon or in which there is a mortgage lien or security interest securing the bonds in default.
    2. The receiver shall have the power and authority to operate and maintain the public facilities project in receivership and to charge and collect payments, fees, rents, and charges sufficient to provide for the payment of any costs of receivership and operating expenses of the project in receivership and to apply the revenues derived from the project in receivership in conformity with this chapter and the resolution or trust indenture securing the bonds in default.
    3. When the default has been cured, the receivership shall be ended and the project returned to the public facilities board.
  1. The relief provided for in this section shall be construed to be in addition and supplemental to the other remedies provided for in this chapter and the remedies that may be provided for in the resolution or trust indenture authorizing or securing the bonds, and shall be so granted and administered as to accord full recognition to priority rights of bondholders as to the pledge of revenues from and mortgage lien on or security interest in projects as specified in and fixed by the resolution or trust indenture authorizing or securing successive issues of bonds.

History. Acts 1975, No. 142, § 13; A.S.A. 1947, § 20-1713.

14-137-123. Annual reports.

  1. Within the first ninety (90) days of each calendar year, each public facilities board shall make a written report to the governing body of the municipality or county which created the board concerning its activities for the preceding calendar year.
  2. Each report shall set forth a complete operating and financial statement covering its operation during the year.

History. Acts 1975, No. 142, § 18; A.S.A. 1947, § 20-1718.

Chapter 138 Public Corporations For Municipal Facilities

Effective Dates. Acts 1967, No. 409, § 24: Mar. 16, 1967. Emergency clause provided: “It is hereby found and declared that there are inadequate facilities for carrying on necessary governmental functions and duties and there are no available means under existing laws to provide the necessary projects. By reason thereof, the public health, safety and welfare is jeopardized and these conditions can be properly alleviated only by the authorizations set forth in this Act. It is, therefore, declared that an emergency exists and this Act being necessary for the immediate preservation of the public peace, health and safety shall take effect and be in force from and after its passage and approval.”

Acts 1970 (Ex. Sess.), No. 32, § 4: Mar. 13, 1970. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health, and safety, shall be in effect from and after its passage and approval.”

Acts 1970 (Ex. Sess.), No. 41, § 8: Mar. 13, 1970. Emergency clause provided: “It is hereby found and determined by the General Assembly that additional buildings for public projects are required in order to enable cities, counties, school districts and other public bodies of this State to have adequate and sufficient facilities essential to their operations; that such buildings cannot be provided by existing methods of financing, and that the immediate passage of this Act is necessary to provide broadened authority of public corporations established under Act 409 of 1967, as amended, to enable such corporations to provide buildings required for city, county or other public projects. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1981, No. 425, § 54: Mar. 11, 1981. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

14-138-101. Legislative intent.

It is the intent of the General Assembly by the passage of this chapter to authorize in each municipality in this state the incorporation of a public corporation as a political subdivision of the state for the purpose of providing buildings and facilities for the respective purposes of projects enumerated in subdivision (9) of § 14-138-102, and to invest the corporation with all powers that may be necessary to enable it to accomplish such purposes, including the power to lease its properties and to issue interest bearing revenue bonds.

History. Acts 1967, No. 409, § 2; 1968 (1st Ex. Sess.), No. 28, § 2; 1970 (Ex. Sess.), No. 41, § 3; A.S.A. 1947, § 19-5102.

14-138-102. Definitions.

As used in this chapter:

  1. “Board” means the board of directors of the corporation;
  2. “Corporation” means a corporation organized under this chapter;
  3. “County” means that county in which the certificate of incorporation of the corporation shall be filed for record;
  4. “Governing body” means the council, board of directors, or other like body in which the legislative functions of the municipality are vested by law;
  5. “Indenture” means a mortgage, an indenture of mortgage, deed of trust, trust agreement, or trust indenture executed by the corporation as security for any bonds;
    1. “Lessee” means the municipality, the county, or other public body leasing a project from the corporation.
    2. “Other public body” as used in this subdivision (6) means any department, agency, subdivision, or instrumentality of the State of Arkansas or the United States, or of any city, county, or school district, a vocational-technical school, or a community junior college district;
  6. “Municipality” means that incorporated town, city of the second class, or city of the first class in the state that authorized the organization of the corporation; and
    1. “Project” means equipment to be utilized within or near or one (1) or more buildings located or to be located within or near the municipality and designed for use or occupancy by a lessee, as defined in this section, for any one (1) of the following public purposes:
      1. Convention centers;
      2. Airport facilities;
      3. Transportation facilities;
      4. Off-street parking facilities;
      5. Schools of any and all kinds supported by public funds including, but not limited to, day care, kindergarten, elementary, junior high, senior high, junior college, college, community college, graduate college, vocational-technical schools, and school administration facilities;
      6. City halls, including administrative offices, police, courts, and jail facilities;
      7. Fire stations and substations and sewage, garbage, and solid waste disposal facilities and a system for the management of fire stations and substations and sewage, garbage, and solid waste disposal facilities;
      8. Courthouses and related administrative facilities including, but not limited to, courts and jail facilities;
      9. Recreational facilities and community centers including, but not limited to, handicrafts, public gymnasiums and related facilities, swimming pools, meeting rooms, and dining facilities;
      10. Office space for state and federal agencies;
      11. Both school and public stadiums;
      12. Offices and administrative facilities including garages and necessary parking facilities for agencies of cities, counties, or other public bodies;
      13. Libraries and branch libraries;
      14. Hospitals and other medical facilities, and nursing homes and similar facilities;
      15. Garages including parking garages and storage buildings; and
      16. Any combination of subdivisions (8)(A)(i)-(xv) of this section or any type of facilities customarily constructed by the public for public use and benefit.
    2. The projects listed in subdivision (8)(A) of this section may include any lands or interest therein, deemed by the board to be desirable in connection therewith, and necessary equipment for the proper functioning and operation of the buildings or facilities involved.

History. Acts 1967, No. 409, § 1; 1968 (1st Ex. Sess.), No. 28, § 1; 1970 (1st Ex. Sess.), No. 41, §§ 1, 2; A.S.A. 1947, § 19-5101; Acts 2009, No. 529, §§ 1, 2; 2019, No. 383, § 16.

Amendments. The 2009 amendment, in (9)(A), inserted “equipment to be utilized within or near or” and substituted “use or occupancy” for “use and occupancy” in the introductory language, inserted (9)(A)(vii)(b) and redesignated the remaining text accordingly, and made related changes.

The 2019 amendment deleted “unless the context otherwise requires” following “chapter” in the introductory language; deleted former (3) and (6) and redesignated the definitions in alphabetical order; substituted “under” for “pursuant to the provisions of” in (2); substituted “(6) means” for “shall mean” in (6)(B); substituted “that authorized” for “which authorized” in (7); redesignated former (9)(A)(vii) (a) and (b) as (8)(A)(vii); substituted “fire stations and substations and sewage, garbage, and solid waste disposal facilities” for “a project described in subdivision (9)(A)(vii) (a) of this section” in (8)(A)(vii); substituted “subdivisions (8)(A)(i)-(xv) of this section” for “the above” in (8)(A)(xvi); and, in (8)(B), deleted “above” preceding “projects”, and inserted “listed in subdivision (8)(A) of this section”; and made stylistic changes.

14-138-103. Construction.

  1. This chapter shall be liberally construed in conformity with its intent.
  2. All acts and activities of the corporation performed pursuant to the authority of this chapter are legislatively determined and declared to be essential governmental functions. In this regard, it is determined and declared that this chapter is the sole authority necessary for the performance of the acts authorized by this chapter including, without limitation, the issuance of bonds.

History. Acts 1967, No. 409, §§ 2, 22; 1968 (1st Ex. Sess.), No. 28, § 2; 1970 (Ex. Sess.), No. 41, § 3; A.S.A. 1947, §§ 19-5102, 19-5122.

14-138-104. Authority generally.

There is conferred upon the corporation the authority to take such action and to do, or cause to be done, such things as shall be necessary or desirable to accomplish and implement the purposes and intent of this chapter according to the import of this chapter.

History. Acts 1967, No. 409, § 22; A.S.A. 1947, § 19-5122.

14-138-105. Authority and procedure to incorporate.

      1. If three (3) or more qualified electors file with the governing body an application in writing for authority to incorporate a public corporation under this chapter, the governing body may adopt a resolution declaring that it is wise, expedient, and necessary that a public corporation be formed and the persons filing the application may proceed to form the public corporation.
      2. After the adoption of the resolution under subdivision (a)(1)(A) of this section, the persons authorized to become the incorporators of the public corporation may incorporate the public corporation in the manner provided in this chapter.
      1. If approved by an ordinance of the governing body of the municipality, the board of directors of a planning and development district created under § 14-166-201 et seq. may file with the governing body of the municipality an application in writing to be designated and to act as a public corporation for one (1) or more projects.
        1. If the application under subdivision (a)(2)(A) of this section is approved by an ordinance of the governing body of the municipality, the district authorized to act as a public corporation under subdivision (a)(2)(A) of this section shall maintain detailed records of its activities, including without limitation financial records.
        2. A district that is authorized to act as a public corporation under subdivision (a)(2)(B)(i) of this section may also be designated as a public corporation by another municipality for a separate project or a joint project if the designation is approved by an ordinance of the governing body of each municipality.
        3. Sections 14-38-105 — 14-38-109, and 14-138-123 do not apply to a district that is authorized to act as a public corporation under subdivisions (a)(2)(B)(i) and (ii) of this section.
    1. A corporation shall not be designated or formed under this chapter unless the:
      1. Application provided for in this section has been made; and
      2. Resolution provided for in this section has been adopted.
    2. Regardless of whether or not the project or facility being financed qualifies as a project under § 14-138-102(8)(A), a municipality may designate a district or a newly formed public corporation to act for it as a municipality under the Municipalities and Counties Industrial Development Revenue Bond Law, § 14-164-201 et seq., or with respect to Arkansas Constitution, Amendment 62, or Arkansas Constitution, Amendment 65.

History. Acts 1967, No. 409, § 3; A.S.A. 1947, § 19-5103; Acts 2007, No. 827, § 130; 2009, No. 529, § 3.

Amendments. The 2009 amendment inserted (a)(2) and (b)(2) and redesignated the remaining text accordingly; and made minor stylistic changes throughout (a)(1) and (b)(1).

14-138-106. Certificate of incorporation.

  1. The certificate of incorporation of the corporation shall state:
    1. The names of the persons forming the corporation, together with the residence of each thereof, and a statement that each of them is a duly qualified elector of the municipality;
    2. The name of the corporation, which shall be “The Public Building Authority of the City or Town of ”; or some other name of similar import;
    3. The location of its principal office, which shall be in the municipality; the number of directors, which number shall be three (3) or a multiple of three (3); and
    4. Any other matters relating to the corporation that the incorporators may choose to insert and that is not inconsistent with this chapter or with the laws of the state.
  2. The form and contents of the certificate of incorporation must be submitted to the governing body for its approval, which shall be evidenced by a resolution duly entered upon the minutes of the governing body.

History. Acts 1967, No. 409, § 4; A.S.A. 1947, § 19-5104.

14-138-107. Execution and recording of certificate.

  1. The certificate of incorporation shall be signed and acknowledged by the incorporators and shall have attached thereto a certified copy of the resolution provided for in § 14-138-106 and a certificate by the Secretary of State that the name proposed for the corporation is not identical with that of any other corporation in the state, or so nearly similar thereto as to lead to confusion and uncertainty.
    1. The certificate of incorporation, together with the documents required by § 14-138-106 to be attached thereto, shall be filed in the office of the county clerk of the county in which the municipality is located, who shall forthwith receive and record it. A copy of the certificate shall be filed in the office of the Secretary of State.
    2. When the certificate of incorporation and attached documents have been so filed, the corporation referred to therein shall come into existence and shall constitute a body corporate and politic and a political subdivision of the state under the name set forth in the certificate of incorporation, whereupon the corporation shall be vested with the rights and powers granted in this chapter.

History. Acts 1967, No. 409, § 5; A.S.A. 1947, § 19-5105.

14-138-108. Board of directors.

  1. The corporation shall have a board of directors composed of the number of directors provided in the certificate of incorporation. All powers of the corporation shall be exercised by the board or pursuant to its authorization.
    1. The directors shall be qualified electors of the municipality and shall be elected by the governing body for staggered terms of office as follows:
      1. The first term of one-third (1/3) of the directors shall be two (2) years;
      2. Another one-third (1/3) shall be elected for four (4) years; and
      3. The remaining one-third (1/3) shall be elected for six (6) years.
    2. Thereafter, the term of office of each director shall be six (6) years.
  2. If any director resigns, dies, becomes incapable of acting as a director, or ceases to be a qualified elector of the municipality, the board shall nominate one (1) or more qualified electors, and the governing body shall elect from those nominated a successor to serve for the unexpired period of his term.
  3. Directors shall be eligible for reelection to succeed themselves in office.
  4. In the case of a vacancy by virtue of the expiration of a term, the board shall nominate one (1) or more qualified electors. The governing body shall then elect from those nominated the person to serve for a regular term in the position involved.
    1. A majority of the members of the board shall constitute a quorum for the transaction of business.
    2. No vacancy in the membership of the board shall impair the right of a quorum to exercise all the powers and duties of the corporation.
  5. The members of the board and the officers of the corporation shall serve without compensation, except that they may be reimbursed for actual expenses incurred in and about the performance of their duties.
    1. All proceedings of the board shall be reduced to writing by the secretary of the corporation and recorded in a well bound book.
    2. Copies of such proceedings, when certified by the secretary of the corporation under its seal, shall be received in all courts as evidence of the matters and things certified.

History. Acts 1967, No. 409, § 6; A.S.A. 1947, § 19-5106.

14-138-109. Officers.

    1. The officers of the corporation shall consist of a chairman, vice chairman, a secretary, a treasurer, and such other officers as the board shall deem necessary to accomplish the purposes for which the corporation was organized.
    2. The offices of secretary and treasurer may, but need not, be held by the same person.
    1. The chairman and vice chairman of the corporation shall be elected by the board from its membership.
    2. The secretary, the treasurer, and any other officers of the corporation, who may, but need not, be members of the board, shall also be elected by the board.

History. Acts 1967, No. 409, § 7; A.S.A. 1947, § 19-5107.

14-138-110. Powers generally.

The corporation shall have the following powers, together with all powers incidental thereto or necessary to the discharge thereof:

  1. To have succession by its corporate name until dissolved as provided in this chapter;
  2. To sue and be sued and to prosecute and defend suits in any court having jurisdiction of the subject matter and of the parties;
  3. To make use of a corporate seal and to alter it at pleasure;
  4. To adopt and alter bylaws for the regulation and conduct of its affairs and business;
  5. To acquire, whether by purchase, gift, lease, devise, or otherwise, property of every description which the board may deem necessary to the acquisition, construction, equipment, improvement, enlargement, operation, or maintenance of a project, and to hold title thereto;
  6. To construct, enlarge, equip, improve, maintain, and operate one (1) or more projects;
  7. To borrow money for any of its corporate purposes;
  8. To sell and issue its interest-bearing revenue bonds;
  9. To sell and issue refunding revenue bonds;
  10. To secure any of its bonds by pledge and indenture as provided in this chapter;
  11. To appoint, employ, and compensate such agents, architects, engineers, attorneys, and other persons and employees as the business of the corporation may require;
  12. To provide for such insurance as the board may deem advisable;
  13. To invest in obligations that are direct or guaranteed obligations of the United States of America, or other securities in which public funds may be invested under the laws of this state, any of its funds that the board may determine are not presently needed for its corporate purposes;
  14. To contract, lease, and make lease agreements respecting its properties, or any part thereof; and
  15. To sell, convey, or otherwise dispose of any of its properties that may have become obsolete or worn out, or that may no longer be needed or useful in connection with, or in the operation of, any project.

History. Acts 1967, No. 409, § 8; A.S.A. 1947, § 19-5108.

14-138-111. Lease agreements.

    1. The corporation and the lessee involved are respectively authorized to enter into with each other one (1) or more lease agreements whereunder a project shall be leased by the corporation to the lessee.
    2. Any lease agreement shall provide for subleasing of portions of the project under and pursuant to the provisions of law governing the leasing of public property to private persons.
    3. In the case of municipalities, counties, or other public bodies, the term of the lease shall not be longer than the then-current fiscal year of the municipality, county, or other public body. However, any such lease agreement may contain a grant to the municipality, county, or other public body of successive options of renewing the lease agreement on the terms specified therein for any subsequent fiscal year or years of the municipality, county, or other public body.
    4. The lease agreement may contain appropriate provisions as to the method by which the municipality, county, or other public body may, at its election, exercise such of the options of renewal as its governing body may elect, on the terms provided in this section such other covenants and provisions as shall not be inconsistent with this chapter, and as the corporation and the municipality, county, or other public body may agree.
    1. The rental for each fiscal year during which the lease agreement shall be in effect shall be due in advance on the first day of the fiscal year. The rental for the fiscal year shall be payable and any such covenant on the part of the municipality, county, or other public body shall be performed solely out of the current revenues of the municipality, county, or other public body for the fiscal year.
    2. The state shall not in any manner be liable for the performance of any obligation or agreement contained in the lease agreement.
    3. The rental payable and the covenants to be performed by the lessees under the provisions of the lease agreement shall never create an indebtedness of the lessees within the meaning of any applicable limitation in the Constitution of the state, including particularly Arkansas Constitution, Amendment 10.
    4. It is declared that it is an essential governmental function of the lessee to secure and supply reasonable and adequate project facilities for the performance of its public functions and duties, and the rentals payable by the lessee for such purpose are and shall constitute a necessary governmental operating expense of the lessee.
    5. If there is any default in the payment of any rental required to be paid or in the performance of any covenant required to be performed by the lessee under the provisions of any such lease agreement while such lease agreement shall be in effect, the corporation and any pledgee of the lease agreement or rentals thereunder may, by any appropriate proceedings at law or in equity, enforce and compel payment of such rental and performance of such covenant.
  1. Should any usable space in any project leased to a lessee become vacant after acquisition or construction thereof by the corporation, then neither the lessee, nor any officer or agency thereof, shall thereafter enter into any lease or rental agreement for additional space or renew any existing lease or rental agreement for such space, nor construct any facilities duplicating such vacant space in the project until after all vacant space in the project shall have been filled.

History. Acts 1967, No. 409, § 9; 1970 (Ex. Sess.), No. 41, § 4; A.S.A. 1947, § 19-5109.

14-138-112. Conveyance of property by lessee.

Any lessee is authorized to convey to the corporation, with or without the payment of monetary consideration therefor, any property that may be owned by the lessee, whether or not the property is necessary for the conduct of the governmental or other public functions of the lessee, if the conveyance has been authorized by a resolution duly adopted by the governing body prior to the conveyance.

History. Acts 1967, No. 409, § 20; A.S.A. 1947, § 19-5120.

14-138-113. Tax exemption of projects.

Each project, and the income from all leases made with respect thereto, are determined and declared by the General Assembly to be public property used exclusively for a public purpose and shall be exempt from ad valorem taxation by all taxing authorities.

History. Acts 1967, No. 409, § 15; A.S.A. 1947, § 19-5115.

14-138-114. Issuance of bonds.

    1. The corporation is authorized at any time and from time to time to issue its interest-bearing revenue bonds for the purpose of acquiring, constructing, improving, enlarging, completing, and equipping one (1) or more projects.
    2. The principal of and the interest on any bonds shall be payable solely out of the revenues derived from the projects with respect to which the bonds are issued.
    3. None of the bonds of the corporation shall ever constitute an obligation or debt of the state or the lessee, or a charge against the credit or taxing powers of the state or the lessee.
  1. As the corporation shall determine, bonds of the corporation may:
    1. Be issued at any time and from time to time;
    2. Be coupon bonds, payable to bearer, or may be registrable as to principal and interest without coupons, and may be made exchangeable for bonds of another denomination, which bonds of another denomination may in turn be either coupon bonds, bonds payable to bearer or bonds registrable as to principal only with coupons, or bonds registrable as to both principal and interest without coupons;
    3. Be in such form and denominations;
    4. Have such date or dates;
    5. Mature at such time or times and in such amount or amounts, provided that no bonds may mature more than forty (40) years from date;
    6. Bear interest payable at such times and at such rate or rates;
    7. Be payable at such place or places within or without the State of Arkansas;
    8. Be subject to such terms of redemption in advance of maturity at such prices, including such premiums; and
    9. Contain such other terms and provisions.
    1. Bonds of the corporation may be sold at either public or private sale in such manner and from time to time as may be determined by the board to be most advantageous.
    2. The corporation may pay all expenses, premiums, and commissions that the board may deem necessary or advantageous in connection with the authorization, sale, and issuance of its bonds.
  2. All bonds shall contain a recital that they are issued pursuant to the provisions of this chapter which recital shall be conclusive that they have been duly authorized pursuant to the provisions of this chapter.
  3. All bonds issued under the provisions of this chapter shall be and are declared to be negotiable instruments within the meaning of the negotiable instruments law of the state.

History. Acts 1967, No. 409, § 10; 1970 (Ex. Sess.), No. 32, § 1; 1981, No. 425, § 35; A.S.A. 1947, § 19-5110.

Cross References. Form of bonds, § 19-9-101.

Local Government Bond Act of 1985, § 14-164-301 et seq.

14-138-115. Notice of bond resolution.

  1. Upon the adoption by the board of any resolution providing for the issuance of bonds, the corporation may, in its discretion, cause to be published one (1) time a week for two (2) consecutive weeks in a newspaper published in the municipality, or if there is no newspaper published in the municipality, then in a newspaper published in the county in which the municipality is located, a notice in substantially the following form with the blanks being properly filled in: “ , a public corporation and a political subdivision of the State of Arkansas, on the day of , authorized the issuance of $ principal amount of revenue bonds of the said corporation for the constructing and equipping of a project generally described as: Any action or proceeding questioning the validity of the said bonds, or the pledge and the indenture to secure the same, or the proceedings authorizing the same, must be commenced within twenty (20) days after the first publication of this notice.”
  2. Any action or proceeding in any court to set aside or question the proceeding for the issuance of the bonds referred to in the notice, or to contest the validity of any such bonds or the validity of the pledge and indenture made therefor, must be commenced within twenty (20) days after the first publication of the notice. After the expiration of this period, no right of action or defense founded upon the validity of the proceedings or of the bonds, or the pledge, or of the indenture shall be asserted, nor shall the validity of the proceedings, bonds, pledge, or indenture be open to question in any court on any ground whatsoever except in an action commenced within such period.

History. Acts 1967, No. 409, § 19; A.S.A. 1947, § 19-5119.

14-138-116. Execution of bonds.

  1. Bonds shall be executed by the manual or facsimile signature of the chairman of the corporation and by the manual signature of the secretary of the corporation.
  2. Coupons attached to the bonds shall be executed by the facsimile signature of the chairman of the corporation.
  3. In case any of the officers whose signatures appear on the bonds or coupons shall cease to be such officer before the delivery of the bonds or coupons, their signatures shall nevertheless be valid and sufficient for all purposes.
  4. The bonds shall be sealed with the seal of the corporation.

History. Acts 1967, No. 409, § 11; A.S.A. 1947, § 19-1511.

14-138-117. Security for bonds.

  1. The principal of, and interest on, the bonds shall be secured by a pledge of the revenues out of which the bonds shall be made payable and by a pledge of the lease agreement covering the project from which revenues so pledged shall be derived and of the rental therefrom and may be secured by an indenture covering the project.
  2. The trustee under any indenture may be a trust company or bank having trust powers, whether located within or without the state.
    1. The indenture may contain any agreements and provisions customarily contained in instruments securing evidences of indebtedness including, without limiting the generality of the foregoing, provisions respecting:
      1. The nature and extent of the security;
      2. The collection, segregation, and application of the rental from any project covered by the indenture;
      3. Terms to be incorporated in the lease agreement respecting the project;
      4. Covenants to always operate the project as a revenue-producing undertaking and to charge and collect, including the obligation to increase from time to time, sufficient rentals to maintain income at required levels;
      5. The maintenance and insurance of the project;
      6. The creation and maintenance of reserve and other special funds; and
      7. The rights and remedies available in the event of default to the holders of the bonds or the trustees under the indenture, all as the board shall deem advisable and as shall not be in conflict with the provisions of this chapter.
    2. In making such agreements or provisions, the corporation shall not have the power to obligate itself except with respect to projects and the application of the revenue therefrom.
    1. If there is any default by the corporation in payment of the principal of or the interest on the bonds or in any of the agreements on the part of the corporation that may properly be included in any indenture securing the bonds, the bondholders or the trustee under any indenture, as authorized in such indenture, may either in law or in equity, by suit, action, mandamus, or other proceeding, enforce payment of the principal or interest and compel performance of all duties of the board and officers of the corporation, and shall be entitled as a matter of right and regardless of the sufficiency of any such security to the appointment of a receiver in equity with all the powers of such receiver for the operation and maintenance of the project covered by such indenture and the collection, segregation, and applications of rents therefrom.
    2. Any such indenture shall not be subject to foreclosure and shall not be construed so as to authorize the sale of any project covered thereby, or any part thereof, in satisfaction of the bonds secured thereby.
  3. The indenture may contain provisions:
    1. Regarding the rights and remedies of any trustee thereunder and the holders of the bonds and the coupons; and
    2. Restricting the individual rights of action of the holders of the bonds and coupons.

History. Acts 1967, No. 409, § 12; A.S.A. 1947, § 19-5112.

14-138-118. Eligibility of bonds as investment.

  1. Revenue bonds issued under the authority of this chapter are made securities in which insurance companies, trust companies, banks, investment companies, executors, administrators, trustees, and other fiduciaries may properly and legally invest funds, including capital in their control or belonging to them. The bonds are made securities which may properly and legally be deposited with and received by any state or municipal officer or any agency or political subdivision of the state for any purpose for which the deposit of bonds or obligations is authorized by law.
  2. Any municipality or county or any board, commission, or other authority duly established by any municipality or county, or the boards of trustees, respectively, of any retirement fund or retirement system created by or pursuant to authority conferred by the General Assembly of the State of Arkansas may, in its discretion, invest any of its funds not immediately needed for its purposes in bonds issued under the authority of this chapter, and bonds issued under the authority of this chapter shall be eligible to secure the deposit of public funds.

History. Acts 1967, No. 409, § 18; A.S.A. 1947, § 19-5118.

14-138-119. Bonds — Tax exemption.

The principal of and interest on bonds issued under the authority of this chapter shall be exempt from all state, county, and municipal taxes. This exemption shall include income, inheritance, and estate taxes.

History. Acts 1967, No. 409, § 17; A.S.A. 1947, § 19-5117.

A.C.R.C. Notes. Language excluding property taxes from the exemption provided by this section was deleted pursuant to Ark. Const. Amend. 57, § 1 and § 26-3-302. Arkansas. Const. Amend. 57, § 1 provides that the General Assembly may classify intangible personal property for assessment at lower percentages of value than other property and may exempt one or more classes of intangible personal property from taxation, or may provide for the taxation of intangible personal property on a basis other than ad valorem. Section 26-3-302 exempts all intangible personal property in this state from all ad valorem tax levies of counties, cities, and school districts in the state as of January 1, 1976.

14-138-120. Proceeds from sale of bonds.

  1. The proceeds derived from all of the bonds other than refunding bonds may be used only to pay the costs of acquiring, constructing, improving, enlarging, and equipping the project with respect to which they were issued, as may be specified in the proceedings in which the bonds are authorized to be issued and all costs incidental thereto including, without limitation:
    1. The costs of any land forming a part of the project;
    2. The costs of the labor, materials, and supplies used in any construction, improvement, and enlargement, including architect's and engineer's fees and the cost of preparing contract documents and advertising for bids;
    3. The purchase price of and the cost of installing equipment for the project;
    4. The cost of landscaping the lands forming a part of the project and of constructing and installing roads, sidewalks, curbs, gutters, utilities, and parking places in connection therewith;
    5. Legal, fiscal, and recording fees and expenses incurred in connection with the authorization, sale, and issuance of the bonds issued in connection with the project;
    6. Interest on bonds for a reasonable period prior to, during, and after the time required for such construction and equipment; and
    7. The amount necessary to fund a debt service reserve of not to exceed one (1) year's principal and interest requirements on the bonds.
  2. Nothing in this section shall be construed to authorize the use of proceeds derived from the sale of such bonds to purchase, condemn, or otherwise acquire a utility plant, property, or facilities owned or operated by any regulated utility.
  3. If any of the proceeds derived from the sale of bonds remains undisbursed after completion of the project and the making of all such expenditures, the balance shall be used for the redemption of bonds of the same issue.

History. Acts 1967, No. 409, § 13; 1970 (Ex. Sess.), No. 41; § 5; A.S.A. 1947, § 19-5113.

14-138-121. Refunding bonds.

  1. The corporation may at any time and from time to time issue refunding bonds for the purpose of refunding the principal of and interest on any bonds of the corporation theretofore issued under this chapter and then outstanding, whether or not the principal and interest shall have matured at the time of the refunding under this chapter and for the payment of any expenses incurred in connection with the refunding and any premium necessary to be paid in order to redeem or retire the bonds to be refunded.
  2. The proceeds derived from the sale of any refunding bonds shall be used only for the purposes for which the refunding bonds were authorized to be issued.
  3. Any such refunding may be effected either by sale of the refunding bonds and the application of the proceeds thereof by immediate application or by escrow deposit with the right to invest moneys in the escrow deposit until needed for the redemption or by exchange of the refunding bonds for the bonds or interest coupons to be refunded thereby. However, the holders of any bonds or coupons so to be refunded shall not be compelled without their consent to surrender their bonds or coupons for payment or exchange prior to the date on which they may be paid or redeemed by the corporation under their respective provisions.
  4. Any refunding bonds of the corporation shall be payable solely from the revenues out of which the bonds or coupons to be refunded were payable.
  5. All provisions of this chapter pertaining to bonds of the corporation that are not inconsistent with the provisions of this section shall, to the extent applicable, also apply to refunding bonds issued by the corporation.

History. Acts 1967, No. 409, § 14; A.S.A. 1947, § 19-5114.

14-138-122. Remedies on default.

  1. If there is any default in the payment of the principal of or interest on any bonds issued under this chapter, then the holder of any of the bonds and of any of the interest coupons applicable thereto and the trustee under any indenture, or any one (1) or more of them:
    1. May either at law or in equity, by suit, action, mandamus, or other proceeding, compel performance of all duties of the officers and directors of the corporation with respect to the use of funds for the payment of the bonds and for the performance of the agreements of the corporation contained in the proceedings under which they were issued, and compel performance of the duties of all officials of the city with respect to payment of the rentals provided to be paid under any lease made by the municipality pursuant to the provisions of this chapter and pledged as security for the bonds; and
    2. Regardless of the sufficiency of the security for the bonds and as a matter of right, shall be entitled to the appointment of a receiver to administer and operate the project out of the revenues from which the bonds issued with respect thereto are payable, with power to make leases with any public or private lessee including, without limitation, leases with a term running to the last maturity of the bonds, and fix and collect rents sufficient to provide for the payment of the principal of and interest on the bonds and any other obligations outstanding against the project or the revenues therefrom and for the payment of the expenses of operating and maintaining the project, and with power to apply the income therefrom in accordance with the provisions of the proceedings under which the bonds were authorized to be issued.
  2. The remedies specified in this section shall be cumulative to all other remedies which may otherwise be available for the benefit of the holders of the bonds and the coupons applicable thereto.

History. Acts 1967, No. 409, § 16; A.S.A. 1947, § 19-5116.

14-138-123. Dissolution.

      1. If the public corporation does not have any bonds outstanding, the board may adopt a resolution, which shall be entered in its minutes, declaring that the public corporation shall be dissolved; or
      2. If directed by its governing body, the board shall adopt a resolution to dissolve the public corporation.
    1. Upon the filing for record of a certified copy of a resolution made under subdivision (a)(1) of this section in the office of the county clerk of the county in which the municipality is located, the public corporation is dissolved.
    2. After its dissolution, the title to the property of a dissolved public corporation vests in the lessee.
  1. When the principal of and the interest on all bonds payable, in whole or in part, from the revenues derived from any project shall have been paid in full, title to that project shall thereupon vest in the lessee, but such vesting of title in the lessee shall not affect the title of the corporation to any other project, the revenues from which are pledged for the payment of any other bonds then outstanding.
  2. The formation and dissolution of one (1) or more corporations under the provisions of this chapter shall not prevent the subsequent formation under this chapter of other corporations in the same municipality.
  3. By giving a written notice to the district's board, the governing body of a municipality may rescind a planning and development district's designation and authority to act as a public corporation for a municipal facility under § 14-138-105(a)(2)(B) when the district does not have any bonds outstanding.

History. Acts 1967, No. 409 § 21; A.S.A. 1947, § 19-5121; Acts 2009, No. 529, §§ 4, 5.

Amendments. The 2009 amendment, in (a), inserted (a)(1)(B), redesignated the remaining text of (a), and made related and minor stylistic changes; and added (d).

Chapter 139 Municipal Exhibition Grounds And Buildings

Effective Dates. Acts 1938 (Ex. Sess.), No. 17, § 18: approved Apr. 1, 1938. Emergency clause provided: “Whereas, there are various communities in this State which are seriously in need of exhibition grounds for the purpose of exhibiting livestock, so as to encourage and foster livestock raising in this State, the absence of such improvements resulting in loss of revenues to the cities and to the State, which condition menaces the public health and safety; and

“Whereas, the passage of this act would create a means of immediately financing such Exhibition Grounds and Buildings through emergency Government lending agencies, which is not available under existing laws; and

“Whereas, the immediate construction of such Exhibition Grounds and Buildings (which can be accomplished under this act with the aid of existing Government lending agencies) will not only encourage and foster the raising of livestock and increase private and public revenues in this State, but would give employment to numerous citizens, thereby minimizing in some degree the prevailing conditions of unemployment; and

“Whereas, this act provides a method whereby such Exhibition Grounds and Buildings can be acquired by Municipalities;

“Therefore, it is hereby declared that an emergency exists, and that this act is necessary for the immediate preservation of the public peace, health and safety, and this Act will take effect, and be in force, from and after its passage.”

Acts 1981, No. 425, § 54: Mar. 11, 1981. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Research References

Am. Jur. 56 Am. Jur. 2d, Mun. Corp., §§ 541-543.

Ark. L. Rev.

Comment, Municipal Bonds and Amendment 62: Clearing Up a Serbonian Bog, 39 Ark. L. Rev. 499.

14-139-101. Definitions.

As used in this chapter, unless the context otherwise requires:

  1. “Exhibition grounds and buildings” means the exhibition grounds and buildings, in its entirety or any integral part thereof, including all improvements erected on the land used or useful for the purposes of exhibiting livestock;
  2. “Municipality” means any city of the first or second class or incorporated town in the State of Arkansas;
  3. “Legislative body” means the mayor and council of any city or town.

History. Acts 1938 (Ex. Sess.), No. 17, § 2; A.S.A. 1947, § 19-2902.

14-139-102. Construction.

  1. This chapter shall be construed as cumulative authority for the acquisition, purchase, and construction of the grounds and buildings and betterments and improvements thereon for use in the exhibition of livestock and shall not be construed to repeal any existing laws with respect to it.
  2. This chapter, being necessary for the public health, safety, and welfare, shall be liberally construed to effectuate the purposes of it.

History. Acts 1938 (Ex. Sess.), No. 17, §§ 2, 12; A.S.A. 1947, §§ 19-2902, 19-2912.

14-139-103. Authority generally.

  1. Any city or incorporated town in the State of Arkansas may acquire, purchase, or construct exhibition grounds and buildings for the purpose of exhibiting livestock, as provided in this chapter.
  2. This chapter shall, without reference to any other statute, be deemed full authority for the construction, acquisition, improvement, erection, maintenance, operation, and repair of exhibition grounds and buildings for the exhibition of livestock as provided for in this chapter and for the issuance and sale of the bonds authorized by this chapter.
  3. This chapter shall be construed as an additional and alternative method therefor and for the financing thereof. No petition or election or other or further proceeding in respect to the construction or acquisition of the exhibition grounds and buildings or to the issuance or sale of bonds under this chapter and no publication of any resolution, ordinance, notice, or proceeding relating to such construction or acquisition or to the issuance or sale of such bonds shall be required except such as are prescribed by this chapter, any provisions of other statutes of the state to the contrary notwithstanding.

History. Acts 1938 (Ex. Sess.), No. 17, §§ 1, 11; A.S.A. 1947, §§ 19-2901, 19-2911.

Cross References. Exhibitions, general authority to license, etc., § 14-54-1405.

Local government reserve funds, § 14-73-101 et seq.

14-139-104. Right of eminent domain.

For the purpose of acquiring any exhibition grounds and buildings to be used in connection with the exhibition of livestock under the provisions of this chapter, or for the purpose of acquiring any property necessary thereof, the municipality shall have the right of eminent domain as is provided in §§ 18-15-30118-15-303 and any acts amendatory or supplemental to it.

History. Acts 1938 (Ex. Sess.), No. 17, § 9; A.S.A. 1947, § 19-2909.

14-139-105. Issuance of revenue bonds.

  1. Whenever the legislative body of any municipality shall determine to acquire, purchase, and construct exhibition grounds and buildings under the provisions of this chapter, it shall cause an estimate to be made of the cost thereof and by ordinance shall provide for the issuance of revenue bonds under the provisions of this chapter.
  2. The ordinance shall set forth:
    1. A brief description of the contemplated improvement;
    2. The estimated cost thereof;
    3. The amount, rate of interest, and time and place of payment; and
    4. Other details in connection with the issuance of the bonds.
  3. The bonds shall bear interest at such rate or rates, payable semiannually, and shall be payable at such times and places, not exceeding twenty (20) years from their dates, as shall be prescribed in the ordinance providing for their issuance.
  4. The ordinance shall also:
    1. Declare that a statutory mortgage lien shall exist upon the property so to be acquired or constructed;
    2. Fix the rents or charges to be collected prior to the payment of all of the bonds; and
    3. Pledge the revenues derived from the exhibition grounds and buildings for the purpose of paying the bonds and interest thereon.
  5. The pledge shall definitely fix and determine the amount of revenue which shall be necessary to be set apart and applied to the payment of the principal of, and interest on, the bonds and the proportion of the balance of the revenues and income which are to be set aside as a proper and adequate depreciation account, and the remainder shall be set aside for the reasonable and proper operation thereof.
  6. The rents or charges from the exhibition grounds and buildings shall be sufficient to provide for:
    1. The payment of interest upon all bonds and to create a sinking fund to pay the principal thereof as and when the bonds shall become due;
    2. The operation and maintenance of the project; and
    3. An adequate depreciation fund.

History. Acts 1938 (Ex. Sess.), No. 17, § 3; 1981, No. 425, § 39; A.S.A. 1947, § 19-2903.

Cross References. Form of bonds, § 19-9-101.

Local Government Bond Act of 1985, § 14-164-301 et seq.

Research References

Ark. L. Rev.

Municipal Improvement Bonds in Arkansas, 8 Ark. L. Rev. 146.

14-139-106. Notice and hearing.

  1. After the ordinance shall have been adopted, it shall be published one (1) time in a newspaper published in the municipality; or if there is no newspaper so published, then the ordinance shall be posted in at least three (3) public places therein, with a notice to all persons concerned stating that:
    1. The ordinance has been adopted;
    2. The municipality contemplates the issuance of the bonds described in this ordinance; and
    3. Any person interested may appear before the governing body, upon a certain date which shall not be less than ten (10) days subsequent to the publication or posting of the ordinance and notice, and present protests.
  2. At the hearing, all objections and suggestions shall be heard, and the legislative body shall take such action as it shall deem proper in the premises.

History. Acts 1938 (Ex. Sess.), No. 17, § 4; A.S.A. 1947, § 19-2904.

14-139-107. Terms of authorizing ordinance.

  1. The ordinance authorizing the issuance of the revenue bonds may contain provisions for the acceleration of the maturities of all unmatured bonds in the event of default in the payment of any principal or interest maturing under the bond issue, or upon failure to meet any sinking fund requirements, or in any other event stipulated in the ordinance; and such provisions will be binding.
  2. The priorities as between successive issues of revenue bonds may also be controlled by the provisions of the ordinance.
  3. The ordinance may also, if deemed desirable, provide for:
    1. The execution, contemporaneously with the execution of bonds, by the municipality of an indenture defining the right of the bondholders' interests;
    2. Appointing a trustee for the bondholders, which trustee may be a domestic or foreign corporation;
    3. Vesting in the trustee, to such extent as is deemed advisable, all rights of action under the bonds;
    4. The priority of lien as between successive bond issues;
    5. The acceleration of bond maturities;
    6. Any covenants on the part of the municipality relating to the construction or acquisition of the project, or the application or safeguarding of the proceeds of the bonds, or other covenants intended for the protection of the bondholders; and
    7. Any other provisions, whether similar or dissimilar to the foregoing, which are consistent with the terms of this chapter and which may be deemed desirable.

History. Acts 1938 (Ex. Sess.), No. 17, § 15; A.S.A. 1947, § 19-2914.

14-139-108. Sale of bonds.

  1. Bonds provided for in this chapter shall be issued in such amounts as may be necessary to provide sufficient funds to pay all costs of construction or acquisition, including engineering, legal, and other expenses, together with interest to a date six (6) months subsequent to the estimated date of completion.
  2. Bonds issued under the provisions of this chapter are declared to be negotiable instruments. They shall be executed by the presiding officer and clerk or recorder of the municipality and be sealed with the corporate seal of the municipality. In case any of the officers whose signatures appear on the bonds or coupons shall cease to be such officers before delivery of the bonds, their signatures shall nevertheless be valid and sufficient for all purposes the same as if they had remained in office until the delivery.
  3. The bonds may be sold at not less than ninety cents (90¢) on the dollar, and the proceeds derived therefrom shall be used exclusively for the purposes for which the bonds are issued. They may be sold at one (1) time or in parcels as funds are needed.

History. Acts 1938 (Ex. Sess.), No. 17, § 5; A.S.A. 1947, § 19-2905.

14-139-109. Bonds to be secured.

All bonds of the entire issue, issued under the provisions of this chapter, shall be secured ratably and equally by the revenues of the entire and aggregate works financed by the bond issue.

History. Acts 1938 (Ex. Sess.), No. 17, § 14; A.S.A. 1947, § 19-2913.

14-139-110. Statutory mortgage lien.

    1. There shall be a statutory mortgage lien upon the exhibition grounds and buildings acquired or constructed from the proceeds of bonds authorized by this chapter to be issued, which shall exist in favor of the holder of the bonds and each of them, and to and in favor of the holder of the coupons attached to the bonds.
    2. The exhibition grounds and buildings shall remain subject to the statutory mortgage lien until payment in full of the principal and interest of the bonds.
  1. Subject to such restrictions as may be contained in the indenture authorized in this chapter, any holder of bonds issued under the provisions of this chapter, or of any coupons representing interest accrued thereon, may, either at law or in equity, enforce the statutory mortgage lien conferred by this section and may, by proper suit, compel the performance of the duties of the officials of the issuing municipality set forth in this chapter.
  2. If there is default in the payment of the principal of or interest upon any of the bonds, any court having jurisdiction in any proper action may appoint a receiver to administer the exhibition grounds and buildings on behalf of the municipality, with power to charge and collect rents or charges sufficient to provide for the payment of the bonds and interest thereon, and for the payment of the operating expense, and to apply the income and revenues in conformity with this chapter and the ordinance providing for the issuance of the bonds.

History. Acts 1938 (Ex. Sess.), No. 17, § 7; A.S.A. 1947, § 19-2907.

14-139-111. Rents or charges — Surplus.

  1. Rents or charges for the use of the exhibition grounds and buildings precedent to the issuance of bonds shall not be reduced until all of the bonds shall have been fully paid and may, whenever necessary, be increased in amounts sufficient to provide for the payment of the bonds, both principal and interest, and to provide proper funds for the depreciation account and operation and maintenance charges.
    1. If any surplus shall be accumulated in the operating and maintenance fund which shall be in excess of the cost of maintaining and operating the project during the remainder of the fiscal year then-current, and the cost of maintaining and operating the project during the fiscal year then-ensuing, then any excess may be transferred by the legislative body to either the depreciation account or to the bond and interest redemption account, as the legislative body may designate.
    2. If any surplus shall be accumulated in the depreciation account over and above that which the legislative body shall find may be necessary for the probable replacement which may be needed during the then-present fiscal year and the ensuing fiscal year, the excess may be transferred to the bond and interest redemption account.
    3. If surplus shall exist in the bonds and interest redemption account, it shall be applied insofar as possible in the purchase or retirement of outstanding revenue bonds payable from the account. For that purpose, the legislative body is authorized to purchase bonds not due in the open market at not more than the fair market value thereof.

History. Acts 1938 (Ex. Sess.), No. 17, § 8; A.S.A. 1947, § 19-2908.

14-139-112. Funds custodian and accounts.

    1. Any municipality issuing revenue bonds under the provisions of this chapter shall install and maintain a proper system of accounts, showing the amount of revenue received and the application of it.
    2. At least once a year, the municipality shall cause the accounts to be properly audited by a competent auditor, and the report of the audit shall be open for inspection at all proper times to any taxpayer or any holder of bonds issued under the provisions of this chapter, or anyone acting for and on behalf of such taxpayer or bondholder.
    1. The treasurer of the municipality shall be custodian of the funds derived from income received from projects acquired or constructed, either in whole or in part, under the provisions of this chapter and shall give proper bond for the faithful discharge of his duties as such custodian. The bond shall be fixed and approved by the legislative body of the municipality.
      1. All of the funds received as income from exhibition grounds and buildings acquired or constructed, in whole or in part, under the provisions of this chapter and all funds received from the sale of revenue bonds issued to acquire or construct those exhibition grounds and buildings shall be kept separate and apart from the other funds of the city.
      2. The treasurer shall maintain separate accounts in which shall be placed the interest and sinking fund moneys and other accounts in which shall be placed the depreciation funds and to provide for refunding outstanding certificates payable out of the project's revenue.

History. Acts 1938 (Ex. Sess.), No. 17, § 10; A.S.A. 1947, § 19-2910.

Cross References. Self-insured fidelity bond programs, § 21-2-701.

14-139-113. Payment of bonds.

Bonds issued under the provisions of this chapter shall be payable solely from the revenues derived from the exhibition grounds and buildings. The bonds shall not, in any event, constitute an indebtedness of the municipality within the meaning of the constitutional provisions or limitations. It shall be plainly stated on the face of each bond that it has been issued under the provisions of this chapter and that it does not constitute an indebtedness of the municipality within any constitutional or statutory limitation.

History. Acts 1938 (Ex. Sess.), No. 17, § 6; A.S.A. 1947, § 19-2906.

14-139-114. Obligations payable solely from bond fund.

  1. No obligation shall, or may, be incurred by the municipality in the construction or acquisition of the works contemplated by this chapter, or in the condemnation of property in connection therewith, except such as shall be payable solely from the funds to be acquired from the sale of revenue bonds of the character authorized by this chapter.
  2. In view of this section, the court, in condemnation proceedings instituted under this chapter by the municipality, may make such requirements of security as will serve to protect the landowner.

History. Acts 1938 (Ex. Sess.), No. 17, § 17; A.S.A. 1947, § 19-2916.

14-139-115. Bonds — Tax exemption.

Revenue bonds issued under this chapter shall be exempt from all state, county, and municipal taxation. This exemption shall include income taxation, inheritance taxation, as well as all forms of property taxation.

History. Acts 1938 (Ex. Sess.), No. 17, § 16; A.S.A. 1947, § 19-2915.

Chapter 140 Public Marketplaces in Cities and Towns

Research References

Am. Jur. 56 Am. Jur. 2d, Mun. Corp., §§ 541-543.

C.J.S. 63 C.J.S., Mun. Corp., § 1056.

64 C.J.S., Mun. Corp., § 1824 et seq.

87 C.J.S., Towns, § 95.

Subchapter 1 — General Provisions

Effective Dates. Acts 1875, No. 1, § 95: effective on passage.

Acts 1911, No. 372, § 4: approved May 31, 1911. Emergency declared.

14-140-101. Maintenance and regulation of markets.

  1. The governing body may erect, establish, and regulate the markets and marketplaces for the sale of vegetables and other articles necessary for the sustenance, convenience, and comfort of the city and the inhabitants thereof.
  2. The governing body shall have power to prescribe:
    1. The times of opening and closing the markets or marketplaces;
    2. The kind and description of articles that may be sold therein; and
    3. The stands or places to be occupied by the vendors.
  3. The governing body may have full power to:
    1. Prevent forestalling;
    2. Prohibit or regulate huckstering in the markets; and
    3. Adopt such rules and regulations as are necessary to prevent fraud, to preserve order in the market, and to ensure the health and safety of the citizens.
    1. The governing body may authorize the immediate seizure, arrest, or removal from any market of any person violating its regulations, as established by ordinance, together with any article in that person's possession, and the immediate seizure and destruction of tainted or unsound meat, seafood, poultry, vegetable, fruit, or other provisions.
    2. Under § 20-57-101 et seq., the Department of Health is the entity authorized to regulate food safety.
  4. A charge or an assessment, other than those essential for operations and maintenance, shall not be made or levied against any farmer or producer that is selling items grown or produced on the farmer's or producer's land or property.

History. Acts 1875, No. 1, § 6, p. 1; C. & M. Dig., §§ 7596, 7606; Pope's Dig., §§ 9682, 9701; A.S.A. 1947, § 19-3301; Acts 2011, No. 568, § 1.

Amendments. The 2011 amendment deleted former (b); redesignated former (a)(1)(A) through (D) as present (a) through (d); substituted “governing body may” for “city council shall” in (a); substituted “The governing body” for “They” in (b) and (c); redesignated former (a)(1)(B)(i) through (iii) as (b)(1) through (3); in (d)(1), substituted “The governing body” for “They” and inserted “seafood, poultry, vegetable, fruit”; rewrote (d)(2); and added (e).

Cross References. General authority to establish and regulate markets, § 14-54-103.

14-140-102. [Repealed.]

Publisher's Notes. This section, concerning hindering or taxing sale of farm products unlawful, was repealed by Acts 2011, No. 568, § 2. The section was derived from Acts 1911, No. 372, §§ 1, 2; C. & M. Dig., § 7533; Pope's Dig., § 9602; A.S.A. 1947, §§ 19-3302, 19-3303.

Case Notes

Inspection Fee.

A city ordinance requiring dairymen selling milk in the city to pay an inspection fee is valid. Coleman v. City of Little Rock, 191 Ark. 844, 88 S.W.2d 58 (1935).

Police Power.

Ordinances regulating the sale of milk and fresh meats are a valid exercise of the police power delegated to cities to protect the health of such corporations and the inhabitants thereof. Carpenter v. City of Little Rock, 101 Ark. 238, 142 S.W. 162 (1911).

Subchapter 2 — Market Facilities

Research References

Ark. L. Rev.

Comment, Municipal Bonds and Amendment 62: Clearing Up a Serbonian Bog, 39 Ark. L. Rev. 499.

14-140-201. Legislative declaration.

The General Assembly determines and declares that:

  1. The inadequate market facilities for the sale of farm products in the cities and incorporated towns of the State of Arkansas endanger the health and welfare of the public in general;
  2. The provision of adequate and conveniently located market facilities are therefore necessary to alleviate such conditions; and
  3. The establishment of public market facilities are deemed to be a proper public or municipal purpose.

History. Acts 1949, No. 300, § 1; A.S.A. 1947, § 19-3304.

14-140-202. Definition.

As used in this subchapter, unless the context otherwise requires, “public market facilities” means accommodations provided by public authority for the display and sale, both wholesale and retail, of farm products, and open to public use with or without charge. Market facilities may consist of lots, buildings, or other structures and accessories.

History. Acts 1949, No. 300, § 2; A.S.A. 1947, § 19-3305.

14-140-203. Market authorities.

  1. The city council or other governing body of any city or incorporated town is authorized to create a market authority within its jurisdiction for the purpose of establishing public market facilities.
    1. The market authority shall consist of five (5) members.
    2. The members shall be appointed by the mayor and approved by the council or other legislative body of the city creating the authority. These members shall be qualified electors residing in the city, incorporated town, or territory served by the market authority and cannot hold any elective office of the city, town, county, or state.
      1. The members of the authority shall be appointed for periods of one (1), two (2), three (3), four (4), and five (5) years respectively, so that the term of one (1) member shall expire each year after the creation of the authority.
      2. Upon the termination of office of each member, his successor shall be appointed for a term of five (5) years and shall serve until his successor shall have been appointed and qualifies.
    3. The members of the authority shall receive no compensation for their services.
    1. The authority shall have authority to employ such persons as it deems necessary in furtherance of its duties under this subchapter.
    2. The employees authorized by this section shall be chosen by the members of the market authority of the respective city or town.

History. Acts 1949, No. 300, §§ 3, 11; A.S.A. 1947, §§ 19-3306, 19-3314.

14-140-204. Authority to establish facilities.

The market authority of any city and town, acting alone or in cooperation with other market authorities or with any federal or state agency, is authorized to plan, design, locate, finance, acquire, and own property in order to construct, alter, enlarge, use, maintain, operate, and lease market facilities wherever and to the extent that such facilities are deemed necessary within its respective jurisdiction.

History. Acts 1949, No. 300, § 4; A.S.A. 1947, § 19-3307.

14-140-205. Planning for facilities.

  1. The market authority, after a thorough investigation of the marketing problem within its jurisdiction, shall formulate for public presentation a master plan of market facilities as a guide for the further provision for market facilities properly integrated with present and proposed market facilities, subject to alteration as necessary.
  2. A program of construction and method of financing shall likewise be formulated.

History. Acts 1949, No. 300, § 5; A.S.A. 1947, § 19-3308.

14-140-206. Design and location.

  1. The market authority is authorized to so design and locate, subject to approval of the planning commission, any market facilities as to best serve the public purpose for which these facilities are intended.
  2. These facilities may consist of:
    1. Lots, improved or unimproved;
    2. Single or multilevel buildings; and
    3. Such other structures and accessories that may be deemed necessary by the market authority.

History. Acts 1949, No. 300, § 6; A.S.A. 1947, § 19-3309.

14-140-207. Acquisition of property and property rights.

For the purposes of this subchapter, the market authority is authorized to acquire private or public, real or personal property and property rights necessary for market facilities or other purposes by purchase, eminent domain, gift, lease, or otherwise.

History. Acts 1949, No. 300, § 8; A.S.A. 1947, § 19-3311.

14-140-208. Construction — Contracts.

  1. The market authority is authorized to construct, or cause to be constructed, public market facilities including buildings, structures, equipment, entrances, exits, fencing, and all other accessories necessary or desirable for the safety or convenience of persons using the facilities.
  2. The contracts for any market facilities are to be awarded to the lowest responsible bidder in the same manner as contracts are authorized by law to be awarded in connection with highways or streets within the jurisdiction of the respective market authority.

History. Acts 1949, No. 300, § 9; A.S.A. 1947, § 19-3312.

14-140-209. Procedure for issuance of revenue bonds.

The city council or other legislative body of any city or town desiring to provide marketing facilities as provided in this subchapter is authorized to issue revenue bonds to finance the planning, designing, acquisition of property for, construction, alteration, enlargement, maintenance, or operation of market facilities by the following procedure:

  1. AuthorizingOrdinance.
    1. The city council or other legislative body of any city or town shall by ordinance provide for the issuance of revenue bonds. The ordinance shall set forth:
      1. A brief description of the contemplated improvement;
      2. The estimated cost thereof;
      3. The amount, rate of interest, time, and place of payment; and
      4. Other details in connection with the issuance of the bonds.
    2. The bonds shall bear interest at not more than six percent (6%) per annum, payable semiannually, and shall be payable at such times and places, not exceeding forty (40) years from their date, as shall be prescribed in the ordinance providing for their issuance.
  2. StatutoryMortgageLien.
    1. The ordinance shall also declare that a statutory mortgage lien shall exist upon the property so to be acquired, and all construction thereon, and shall pledge the revenues derived from the operation of the market facilities for the purpose of paying the bonds and interest thereon.
    2. The pledge shall definitely fix and determine the amount of revenue which shall be necessary to be set apart and applied to the payment of the principal of, and interest on, the bonds and the proportion of the balance of the revenues and incomes which are to be set aside as a proper and adequate depreciation account, and the remainder shall be set aside for the reasonable and proper operation thereof.
  3. Notice andHearing.
    1. After the ordinance shall have been adopted, it shall be published one (1) time in a newspaper published in the city or town with a notice to all persons concerned, stating that:
      1. The ordinance has been adopted;
      2. The city or town contemplates the issuance of the bonds described in the ordinance; and
      3. Any person interested may appear before the governing body upon a certain date, which shall not be less than ten (10) days subsequent to the publication of the ordinance and notice, and present protest.
    2. At the hearing, all objections and suggestions shall be heard, and the legislative body shall take such action as it shall deem proper in the premises.
  4. Issuance ofBonds.
    1. Bonds provided for in this section shall be issued in such amount as may be necessary to provide sufficient funds to pay all costs of planning, designing, acquisition of property for, construction, alteration, enlargement, and other expenses, together with interest to a date six (6) months subsequent to the estimated date of completion.
      1. Bonds issued under the provisions of this subchapter are declared to be negotiable instruments.
      2. They shall be executed by the presiding officer and clerk or recorder of the corporate town and bear the corporate seal.
      3. In case any of the officers whose signatures appear on the bonds or coupons shall cease to be such officers before delivery of the bonds, their signatures shall nevertheless be valid and sufficient for all purposes, the same as if they had remained in office until the delivery.
    2. The bonds may be sold at not less than ninety cents (90¢) on the dollar, and the proceeds derived therefrom shall be used exclusively for the purposes for which the bonds were issued.
  5. Payment ofBonds.
    1. Bonds issued under the provisions of this section shall be payable solely from the revenues derived from leasing the market facilities.
    2. The bonds shall not, in any event, constitute an indebtedness of the city or town within the meaning of the constitutional provisions or limitations, and it shall be plainly stated on the face of each bond that it has been issued under the provisions of this subchapter and that it does not constitute an indebtedness of the city or town.
  6. Enforcement ofMortgageLien.
    1. There shall be created a statutory mortgage lien upon the market facilities so acquired or constructed from the proceeds of bonds authorized by this section to be issued, which shall exist in favor of the holder of the bonds, and each of them, and in favor of the holder of the coupons attached to the bonds.
    2. The market facilities shall remain subject to the statutory mortgage lien until payment in full of the principal and interest of the bonds. Subject to such restrictions as may be contained in the indenture authorized in this section, any holder of bonds issued under the provisions of this subchapter or of the coupons representing interest accrued thereon may, either at law or in equity, enforce the statutory mortgage lien conferred by this section and may, by proper suit, compel the performance of the duties of the officials of the issuing city or town.
    3. If there is default in the payment of the principal of, and interest on, any of the bonds, any court having jurisdiction in any proper action may appoint a receiver to administer the market facilities on behalf of the city or town, with power to charge and collect rates sufficient to provide for the payment of the bonds and interest thereon, and for payment of the operating expenses, and to apply the income and revenues in conformity with this subchapter and the ordinance providing for the issuance of the bonds.
  7. RentalRates — Surplus.
    1. The rental rates for market facilities fixed precedent to the issuance of bonds shall not be reduced until all of the bonds shall have been fully paid and shall, wherever necessary, be increased, in amounts sufficient to provide for the payment of the bonds, both principal and interest, and to provide proper funds for the depreciation account and operation and maintenance charges. However, the rates may be reduced subject to any conditions which may be set out in the ordinance authorizing the issuance of the bonds of the trust indenture referred to in this section.
      1. If any surplus shall be accumulated in the operating and maintenance fund which shall be in excess of the cost of maintaining and operating the market facilities during the remainder of the fiscal year then current, and the cost of maintaining and operating the facilities during the fiscal year then next ensuing, then any excess may be transferred by the legislative body to either the depreciation account or other bond and interest redemption account.
      2. If a surplus shall exist in the bond or interest redemption account, it may be applied to the payment of any outstanding unmatured bonds payable from the bond and interest redemption account that may be subject to call for redemption before maturity.
  8. FundsCustodian andAccounts.
    1. Any municipality issuing revenue bonds under the provisions of this subchapter shall install and maintain a proper system of accounts. The accounts shall be properly audited by a competent auditor, and the report of the audit shall be open to the public for inspection.
    2. The treasurer of the municipality shall be custodian of the funds derived from income received from the market facilities. All of the funds received as such income shall be kept separate and apart from the other funds of the city.
  9. OtherTerms ofAuthorizingOrdinance.
    1. The ordinance authorizing the issuance of revenue bonds may contain provisions for the acceleration of the maturities of all unmatured bonds in the event of default in the payment of any principal or interest maturing under the bond issue, or upon failure to meet any sinking fund requirements, or in any other event stipulated in the ordinance, and such provisions will be binding.
    2. The ordinance may also, if deemed desirable, provide for:
      1. The execution, contemporaneously with the execution of bond, by the municipality of an indenture defining the rights of the bondholders inter sese;
      2. Appointing a trustee for the bondholders;
      3. A priority of lien as between successive bond issues;
      4. The acceleration of bond maturities;
      5. Any covenants on the part of the municipality relating to the construction or acquisition of the market facilities or the application of safeguarding of the proceeds of the bonds, or other covenants intended for the protection of the bondholders; and
      6. Any other provisions which are consistent with the terms of this subchapter and which may be deemed desirable.

History. Acts 1949, No. 300, § 7; A.S.A. 1947, § 19-3310.

Research References

Ark. L. Rev.

Municipal Improvement Bonds in Arkansas, 8 Ark. L. Rev. 146.

14-140-210. Records and reporting.

Every market authority shall maintain proper accounting and financial records of all transactions and provide and file annual financial statements with the city clerk.

History. Acts 1949, No. 300, § 10; A.S.A. 1947, § 19-3313.

Chapter 141 Operation of Municipal Auditoriums

Cross References. Local government reserve funds, § 14-73-101 et seq.

Effective Dates. Acts 1939, No. 355, § 15: approved Mar. 16, 1939. Emergency clause provided: “Whereas, in certain municipalities auditoriums are being constructed; and whereas, it is to the best interests of the public that said auditoriums be operated and controlled in the most economical and feasible manner possible; and whereas, it is to the best interest of the citizens of said municipalities that the operations of said auditoriums be in the most economical and businesslike manner possible; and whereas, the most economical and proper methods of operations may be obtained if this act were put into immediate force and effect; therefore, it is hereby declared an emergency exists and that this act is necessary for the immediate preservation of public peace, health and safety and this act, therefore, will take effect and be in force and effect from and after its passage.”

Acts 1975, No. 534, § 3: Mar. 21, 1975. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 355 of 1939 [§§ 14-141-10114-141-104, 14-141-10614-141-113] provided for the appointment of a Municipal Auditorium Commission of five (5) members; that in a number of cities of the first class in this State having a Municipal Auditorium Commission, it would be in the better interest of the efficient operation and the long-range planning for the use of said Auditorium that the city council of such cities be authorized to enlarge the membership of the Municipal Auditorium Commission; and the immediate passage of this Act is necessary to accomplish said purpose. Therefore, an emergency is hereby declared to exist, and this Act being immediately necessary for the preservation of the public peace, health, and safety shall be in full force and effect from and after its passage and approval.”

Research References

Am. Jur. 56 Am. Jur. 2d, Mun. Corp., §§ 541-543.

14-141-101. Savings provisions.

Nothing in this chapter shall be construed as repealing any special act heretofore passed providing for a board of commissioners to administer and operate municipal auditoriums. This chapter shall apply solely to cities of the first class. This chapter shall not alter, amend, or affect any indenture or obligation issued by a city prior to the passage of this act.

History. Acts 1939, No. 355, § 13; A.S.A. 1947, § 19-2613.

Publisher's Notes. In reference to the term “passage of this act,” Acts 1939, No. 355 was signed by the Governor on March 26, 1939.

Meaning of “this act”. Acts 1939, No. 355, codified as §§ 14-141-10114-141-104 and 14-141-10614-141-113.

14-141-102. Creation of commission authorized.

By appropriate action of its city council, any city of the first class that owns and operates a municipal auditorium may create a commission for the purpose of operating and managing the auditorium.

History. Acts 1939, No. 355, § 1; A.S.A. 1947, § 19-2601.

14-141-103. Passage or repeal of ordinance.

  1. Any city desiring to avail itself of the benefits of this chapter, by a majority vote of the duly elected and qualified members of its city council, may enact an ordinance creating a municipal auditorium commission to be composed of five (5) citizens who are qualified electors of the municipality.
  2. The city may repeal the ordinance creating the commission by an affirmative vote of three-fourths (¾) of the duly elected and qualified members of the city council.

History. Acts 1939, No. 355, § 2; A.S.A. 1947, § 19-2602.

14-141-104. Appointment of commissioners.

      1. The commissioners of a municipal auditorium commission shall be appointed by the mayor and confirmed by a majority vote of the duly elected and qualified members of the city council and shall hold office for a term of five (5) years.
      2. Those commissioners first appointed and confirmed after March 16, 1939, shall serve for terms of one (1), two (2), three (3), four (4), and five (5) years each, to be designated by the mayor and city council. Thereafter, upon the expiration of their respective terms, commissioners appointed by the mayor and approved by a majority vote of the city council shall each be appointed for a term of five (5) years.
    1. In the event of a vacancy occurring on the auditorium commission, it shall be filled by appointment by the mayor, subject to the approval of a majority vote of the duly elected and qualified members of the city council.
    2. Each commissioner shall file the oath required of public officials by law in the State of Arkansas.
  1. No member of a commission created under the provisions of this chapter shall hold any remunerative elective office under the municipal, county, state, or federal government while a member of the commission. However, the mayor of any such city may be made an ex officio member of the commission.
  2. Upon the appointment of the commissioners as provided in this section, the mayor and city council shall execute such instruments and enact such measures as may be necessary to vest complete charge of the municipally owned auditorium in the commissioners appointed under this chapter.

History. Acts 1939, No. 355, §§ 2, 3, 12; A.S.A. 1947, §§ 19-2602, 19-2603, 19-2612.

14-141-105. Enlarging commission by two members.

  1. Any city of the first class having a mayor-council form of government in which the city has established a municipal auditorium commission, as authorized in this chapter, which may desire to increase the membership of the commission by two (2) members in addition to the members thereof provided by § 14-141-104 may, upon the adoption of an ordinance therefor, enlarge the membership of the commission by two (2) additional members.
    1. The members shall be appointed in the same manner as provided in § 14-141-104.
    2. The first additional members appointed to the commission shall be appointed for terms designated by the mayor, with the term of one (1) member to expire six (6) years from the date of the appointment, and the term of the other member to expire seven (7) years from the date of the appointment.
  2. Nothing in this section shall affect or reduce the term of any member then serving on the commission. However, upon the expiration of the term of office of any member of the commission then serving, the successor member shall be appointed for a term of seven (7) years in order that the full membership of the commission shall consist of members appointed for staggered terms, with the term of one (1) member expiring each year.
  3. The provisions of this section shall be cumulative and supplemental to the provisions of this chapter and are not intended to modify or repeal any part or provision of this chapter unless specifically in conflict with this section.
  4. It is the sole purpose of this section to authorize the city council of a city of the first class in this state having a municipal auditorium commission to elect, by adoption of an ordinance therefor, to enlarge the membership of the municipal auditorium commission from five (5) to seven (7) members without disturbing the terms of any of the existing members, and to make the necessary adjustments in the terms of those members in order that successor members will be appointed for seven-year terms.

History. Acts 1975, No. 534, §§ 1, 2; A.S.A. 1947, §§ 19-2603.1, 19-2603.1n.

14-141-106. Removal of commissioner.

Any commissioner of a municipal auditorium commission appointed by the provisions of this chapter may be removed for cause upon a two - thirds (2/3) vote of the duly elected and qualified members of the city council.

History. Acts 1939, No. 355, § 4; A.S.A. 1947, § 19-2604.

14-141-107. Powers of commissioners generally — Exception.

  1. The commissioners of a municipal auditorium commission appointed under this chapter shall have full and complete authority to manage, operate, maintain, and keep in a good state of repair the municipal auditorium. They shall have full and complete charge of the building, including the right to control and permit or refuse to permit such public gatherings or other meetings or affairs as the commissioners shall see fit and deem to be in the best interests of the city.
  2. The commissioners shall have the right to employ or remove managers, janitors, and other employees of whatsoever nature, kind, or character and to fix, regulate, and pay their salaries, it being the intention of this chapter to vest in the commissioners authority to operate, manage, maintain, and control the municipal auditorium and to have full and complete charge thereof.
  3. The commissioners shall not have authority or power to sell, mortgage, or encumber the auditorium unless otherwise authorized by the statutes of Arkansas.

History. Acts 1939, No. 355, § 5; A.S.A. 1947, § 19-2605.

14-141-108. Rules and regulations.

The commissioners of a municipal auditorium commission shall adopt such rules and regulations as they may deem necessary and expedient for the proper operation and management of the municipal auditorium and shall have authority to alter, change, or amend the rules and regulations at their discretion.

History. Acts 1939, No. 355, § 8; A.S.A. 1947, § 19-2608.

14-141-109. Contracts for use.

The commissioners of a municipal auditorium commission shall have authority to enter into contracts with persons, firms, corporations, or organizations for the use of the auditorium building, or parts thereof.

History. Acts 1939, No. 355, § 7; A.S.A. 1947, § 19-2607.

14-141-110. Expenditures.

    1. The commissioners of a municipal auditorium commission under this chapter shall have, in addition to other powers enumerated in this chapter, the exclusive right and power to make purchases of all supplies, apparatus, and other property and things requisite and necessary for the management and operation of the city auditorium.
    2. In all expenditures which may exceed three hundred dollars ($300), it shall be the duty of the commissioners to advertise for bids and let the work or contract to the lowest responsible bidder, when and if it is feasible and possible to obtain competitive bids.
  1. The commissioners shall have no power in any case, except upon advertisement and to the lowest bidders, to make any contract with any person associated in business with or related within the sixth degree of consanguinity or affinity under the civil law to any member of the auditorium commission, or to the mayor or any member of the city council. Every contract in which such forbidden person shall have an interest, directly or indirectly, shall be null and void.
  2. In any city which has a population between twenty-five thousand five hundred (25,500) and twenty-seven thousand (27,000) according to the most recent federal decennial census, the commission shall be allowed to make purchases of one thousand dollars ($1,000) or less without soliciting competitive bids.

History. Acts 1939, No. 355, § 6; 1979, No. 689, § 1; A.S.A. 1947, §§ 19-2606, 19-2606.1.

14-141-111. Auditorium fund.

    1. The commissioners of a municipal auditorium commission appointed under this chapter shall have the authority to utilize all revenues derived from the auditorium in the operations of the auditorium.
      1. All funds derived from the use of the auditorium shall be segregated into an auditorium fund, which shall be used exclusively in the operations of the auditorium by the commissioners.
      2. Moneys in the fund shall not be mingled with other funds of the city and shall be handled exclusively by the commissioners.
    1. The commissioners shall each furnish to the city a five thousand dollar ($5,000) surety bond that will serve to insure the city against any misappropriation or mishandling of funds.
    2. The surety on the bond shall be a reputable surety corporation.
    3. The premium on the bonds shall be paid for from moneys in the fund.
  1. The commissioners shall receive no salary for their services but shall be reimbursed from the fund for actual expenses incurred in the performance of their duties.
  2. The fund may also be expended by the commissioners, as they deem best, for the purpose of obtaining conventions or other attractions to meet in the auditorium.

History. Acts 1939, No. 355, § 10; A.S.A. 1947, § 19-2610.

Cross References. Self-insured fidelity bond programs, § 21-2-701.

14-141-112. Supplemental appropriations.

  1. Upon each quarterly report being made to the mayor and city council by the commissioners of a municipal auditorium commission, the city council may appropriate funds from the general revenue fund of the city, or from such other funds as the city may have available, to make up any deficits or to provide such funds as may be necessary to carry on the operations of the auditorium.
  2. The council may, at any time other than when the quarterly report is filed, appropriate such funds as it deems necessary from the general revenue fund or such other funds that the city may have available for the purpose of maintaining and operating the auditorium.

History. Acts 1939, No. 355, § 11; A.S.A. 1947, § 19-2611.

14-141-113. Quarterly reports — Annual audit.

    1. The commissioners of a municipal auditorium commission shall submit quarterly reports, beginning three (3) months after they take their oath of office, and each three (3) months thereafter, reporting in full on the operations of the auditorium including an accounting of receipts and disbursements, to the mayor and city council. The commissioners shall furnish such other and further reports, data, and information as may be requested by the mayor or city council.
    2. The quarterly report to the mayor and city council with respect to receipts and disbursements shall be certified by the commissioners as correct.
  1. The commissioners shall further submit an annual audit of the operations of the auditorium to the mayor and city council.

History. Acts 1939, No. 355, § 9; A.S.A. 1947, § 19-2609.

Chapter 142 Local Government Library Bonds

Subchapter 1 — General Provisions

[Reserved]

Subchapter 2 — Local Government Library Bond Act

Effective Dates. Acts 1993, No. 920, § 29: Apr. 7, 1993. Emergency clause provided: “It is hereby found and declared that by virtue of adoption of Arkansas Constitution, Amendment 72, that there are now no provisions for municipalities and counties to conduct elections or otherwise implement the provisions of said amendment and that municipalities and counties have an immediate and pressing need for borrowing funds through the issuance of bonds authorized by Amendment 30 and Amendment 38, as amended by Amendment 72, attributable in substantial part to the lack of authority prior to the adoption of Amendment 72, for the levy and pledge of ad valorem taxes sufficient to finance the construction of capital improvements to or for libraries in the State of Arkansas. Therefore, an emergency is hereby declared to exist and this act being immediately necessary for the protection of the public peace, health and safety, shall take effect and be in full force, immediately upon its passage and approval.”

Acts 2009, No. 1480, § 117: Apr. 10, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act makes various revisions to Arkansas election laws that are designed to improve the administration of elections and special elections and that these revisions should be implemented as soon as possible so that the citizens of this state may benefit from improved election procedures. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

14-142-201. Title.

This subchapter shall be referred to and may be cited as the “Local Government Library Bond Act of 1993”.

History. Acts 1993, No. 920, § 1.

14-142-202. Legislative intent.

  1. The people of the State of Arkansas by the adoption of Arkansas Constitution, Amendment 72, which amends Arkansas Constitution, Amendments 30 and 38, have expressed their intention to provide cities having a population of not less than five thousand (5,000) expanded powers and authority with respect to the creation of bonded indebtedness for capital improvements to or construction of public city libraries and to provide counties expanded powers and authority with respect to the creation of bonded indebtedness for capital improvements to or construction of county libraries for county library services or systems, and have empowered the General Assembly to define and prescribe certain matters with respect to the exercise of this power and authority.
  2. To that end this subchapter is adopted to enable the accomplishment and realization of the public purposes intended by Arkansas Constitution, Amendment 72, and is not intended to otherwise limit in any manner the exercise of the powers of counties and municipalities.

History. Acts 1993, No. 920, § 2.

14-142-203. Definitions.

As used in this subchapter, unless the context otherwise requires:

  1. “Bonds” means bonds issued pursuant to this subchapter;
  2. “Capital improvements to or construction of public libraries” in the case of municipalities, or “capital improvements to or construction of county libraries for county library services or systems”, in the case of counties, or “capital improvements” generally, for the purposes of Arkansas Constitution, Amendments 30 and 38, as amended by Arkansas Constitution, Amendment 72 and this subchapter, mean, whether obtained by purchase, lease, construction, reconstruction, restoration, improvement, alteration, repair, or other means:
    1. Any buildings, improvements and other physical public library betterment or improvement or any preliminary plans, studies, or surveys relative thereto;
    2. Land or rights in land, including, without limitation, leases, air rights, easements, rights-of-way, or licenses; and
    3. Any furnishings, machinery, vehicles, apparatus, or equipment, which shall include, without limiting the generality of the foregoing definition, the following:
      1. Administrative, executive, or other public library offices;
      2. Computer systems, hardware and apparatus; and
      3. Research and reading materials;
  3. “Chief executive” means the mayor of a municipality or the county judge of a county;
  4. “Clerk” means the clerk or recorder of a municipality or county clerk of a county;
  5. “County” means any county in the State of Arkansas;
  6. “Issuer” means a municipality or a county;
  7. “Legislative body” means the council, board of directors, board of commissioners, or similar elected governing body of a municipality;
  8. “Municipality” means any city having a population of not less than five thousand (5,000) persons in the State of Arkansas;
  9. “Order” means an order entered by the county court of a county;
  10. “Ordinance” means an ordinance or other appropriate legislative enactment of a legislative body; and
  11. “Tax” or “ad valorem tax” means a tax authorized for the payment of bonded indebtedness in Arkansas Constitution, Amendments 30 and 38, as amended by Arkansas Constitution, Amendment 72.

History. Acts 1993, No. 920, § 3.

14-142-204. Construction.

This subchapter shall be construed liberally to effectuate the legislative intent and the purposes of this subchapter as complete and independent authority for the performance of each and every act and thing herein authorized, and all powers herein granted shall be broadly interpreted to effectuate the intent and purposes of this subchapter and not as a limitation of powers.

History. Acts 1993, No. 920, § 4.

14-142-205. Subchapter supplemental.

  1. It is the specific intent of this subchapter that the provisions of this subchapter are supplemental to other constitutional or statutory provisions which may provide for the financing of capital improvements for public libraries.
  2. Nothing contained in this subchapter shall be deemed to be a restriction or limitation upon alternative means of financing previously available or hereafter made available to municipalities or counties for the purposes set forth in this subchapter.
  3. Nothing herein shall be construed as preventing coordination of the services of a city public library and a county public library, the services of libraries of different cities, or the services of libraries of different counties.

History. Acts 1993, No. 920, §§ 5, 24.

14-142-206. Venue.

For the purposes of this subchapter, when it is necessary to determine whether publication or other activity has taken place within a municipality lying in more than one (1) county, or where suit shall be filed contesting an election in that municipality, then the publication, activity, or suit shall take place in the county in which a majority of the people living in the municipality reside.

History. Acts 1993, No. 920, § 6.

14-142-207. Bonds generally — Authorizing ordinance for municipalities.

  1. Whenever one hundred (100) or more tax-paying electors of any municipality shall file a petition with the mayor:
    1. Asking that an ad valorem tax on real and personal property be levied for capital improvements, which petition shall specify a rate of taxation not to exceed three (3) mills on the dollar; and
    2. Authorizing the legislative body of the municipality to issue bonds as prescribed by this subchapter for capital improvements to or construction of a public library and to pledge all or any part of the tax for the purpose of retiring the bonds, a legislative body shall authorize the issuance of the bonds by ordinance specifying the maximum principal amount of bonds to be issued, and the rate of any ad valorem tax to be levied and pledged to the retirement of the bonds as specified in Arkansas Constitution, Amendment 30, as amended by Arkansas Constitution, Amendment 72.
  2. Whenever one hundred (100) or more tax-paying electors of any county shall file a petition with the county court:
    1. Asking that an ad valorem tax on real and personal property be levied for capital improvements, which petition shall specify a rate of taxation not to exceed three (3) mills on the dollar; and
    2. Authorizing the county court to issue bonds as prescribed by this subchapter for capital improvements to or construction of county libraries for county library services or systems and to pledge all or any part of the tax for the purpose of retiring the bonds, the county court shall authorize the issuance of the bonds by order specifying the maximum principal amount of bonds to be issued, and the rate of any ad valorem tax to be levied and pledged to the retirement of the bonds as specified in Arkansas Constitution, Amendment 38, as amended by Arkansas Constitution, Amendment 72.

History. Acts 1993, No. 920, §§ 7, 8.

14-142-208. Bonds generally — Election to authorize issuance.

  1. The question of the issuance of such bonds shall be submitted to the electors of the municipality or county at the general election or at a special election called for that purpose in accordance with § 7-11-201 et seq., as provided in the ordinance or order and held in the manner provided in this subchapter; provided, however, that no voter residing within a municipality levying a maintenance tax for libraries or levying a tax pledged for the purpose of retiring library bonds issued by the municipality or pledged to pay for capital improvements to or construction of a public library pursuant to Arkansas Constitution, Amendment 30, and Arkansas Constitution, Amendment 72, shall be entitled to vote on the question of the issuance of bonds by the county within which the municipality is located as authorized pursuant to Arkansas Constitution, Amendment 38, and Arkansas Constitution, Amendment 72, and this section.
    1. Except as otherwise provided in this subchapter, the election shall be held and conducted in the same manner as a special or general election under the election laws of the state.
    2. The ordinance or order shall set forth the form of the ballot question or questions in the form prescribed by Arkansas Constitution, Amendment 30, or Arkansas Constitution, Amendment 38, as amended by Arkansas Constitution, Amendment 72.
    3. Notice of the election shall be given by the clerk of the issuer by one (1) publication in a newspaper having general circulation within the municipality or county not less than ten (10) days prior to the election. No other publication or posting of a notice by any other public official shall be required.
  2. The chief executive officer of the municipality or county shall proclaim the results of the election by issuing a proclamation and publishing it one (1) time in a newspaper having general circulation within the municipality or county.
    1. The results of the election as stated in the proclamation shall be conclusive unless suit is filed in the circuit court in the county in which the issuer is located within thirty (30) days after the date of the publication.
    2. No other action shall be maintained to challenge the validity of the bonds and of the proceedings authorizing the issuance of the bonds unless suit is filed in such circuit court within thirty (30) days after the date of adoption of an ordinance or entry of the order authorizing the sale of the bonds.

History. Acts 1993, No. 920, § 9; 1995, No. 545, § 1; 2005, No. 2145, § 45; 2007, No. 1049, § 66; 2009, No. 1480, § 85.

Amendments. The 1995 amendment, in the proviso in (a), inserted “or levying a tax pledged for … a public library,” substituted “Amendment 30 and Amendment 72” for “Amendment 30,” and added the language beginning “of the issuance of bonds.”

The 2005 amendment redesignated former (b)(4) as (b)(4)(A); and added (b)(4)(B).

The 2009 amendment substituted “§ 7-11-201 et seq.” for “§ 7-5-103(b)” in (a).

14-142-209. Bonds generally — Terms and conditions.

  1. As the ordinance, order, or trust indenture as authorized in this subchapter may provide, the bonds may:
    1. Be in registered or other form;
    2. Be in such denominations;
    3. Be exchangeable for bonds of another denomination;
    4. Be made payable at such places within or without the state;
    5. Be issued in one (1) or more series;
    6. Bear such date or dates;
    7. Mature at such time or times;
    8. Be payable in such medium of payment;
    9. Be subject to such terms of redemption; and
    10. May contain such other terms, covenants, and conditions, including, without limitation, those pertaining to:
      1. The custody and application of the proceeds of the bonds;
      2. The collection and disposition of tax collections;
      3. The maintenance of various funds and reserves;
      4. The nature and extent of the pledge and security;
      5. The maintaining of taxes;
      6. The remedies on default;
      7. The rights, duties, and obligations of the issuer and the trustee, if any, for the owners of the bonds; and
      8. The rights of the owners of the bonds.
  2. All bonds and notes issued under the provisions of this subchapter shall be and are declared to be negotiable instruments within the meaning of the negotiable instruments law of the state.

History. Acts 1993, No. 920, § 10.

14-142-210. Bonds generally — Interest rates.

Bonds for capital improvements issued pursuant to this subchapter shall not bear a rate of interest in excess of the rate provided in the Arkansas Constitution.

History. Acts 1993, No. 920, § 11.

14-142-211. Bonds generally — Trust indenture.

  1. The ordinance or order authorizing the bonds may provide for the execution by the chief executive officer of the issuer of a trust indenture which defines the rights of the owners of the bonds and provides for the appointment of a trustee for the owners of the bonds.
  2. The trust indenture may provide for the priority between and among successive issues and may contain any of the provisions set forth in § 14-142-209, and any other terms, covenants, and conditions that are deemed desirable.

History. Acts 1993, No. 920, § 12.

14-142-212. Bonds generally — Contents.

It shall be plainly stated on the face of each bond that it has been issued under the provisions of this subchapter and either Arkansas Constitution, Amendment 30, in the case of municipalities, or Arkansas Constitution, Amendment 38, in the case of counties, both as amended by Arkansas Constitution, Amendment 72.

History. Acts 1993, No. 920, § 13.

14-142-213. Bonds generally — Sale.

The bonds may be sold at public or private sale for such price, including, without limitation, sale at a discount, and in such manner as the issuer may determine.

History. Acts 1993, No. 920, § 15.

14-142-214. Bonds generally — Execution.

The bonds shall be executed in the manner provided by the Registered Public Obligations Act of Arkansas, § 19-9-401 et seq., as that subchapter may be amended.

History. Acts 1993, No. 920, § 14.

14-142-215. Bonds generally — Successive issues.

There may be successive bond issues for the purpose of financing the same capital improvements.

History. Acts 1993, No. 920, § 18.

14-142-216. Bonds generally — Pledge of taxes generally.

The bonds shall be secured by, and contain a pledge of, any tax or combination of taxes authorized to pay the bonded indebtedness and shall be payable solely from the taxes authorized by Arkansas Constitution, Amendment 30 or Amendment 38, as amended by Arkansas Constitution, Amendment 72, and this subchapter. However, the issuer is not prohibited from using other taxes, revenues, or receipts to retire the bonds.

History. Acts 1993, No. 920, § 16.

14-142-217. Bonds generally — Liability.

No officer, employee, or member of the issuer shall be personally liable on any bonds issued under the provisions of this subchapter or for any damages sustained by any person in connection with any contracts entered into to carry out the purposes and intent of this subchapter, unless that person has acted with a corrupt intent.

History. Acts 1993, No. 920, § 20.

14-142-218. Bonds generally — Pledge and collection of ad valorem taxes.

  1. The ad valorem tax pledged for payment of bonds shall constitute a special fund pledged as security for the payment of such indebtedness.
    1. The ad valorem tax shall never be extended for any other purpose nor collected for any greater length of time than necessary to retire such bonded indebtedness.
    2. However, tax collections in excess of the amount required to retire the debt according to its terms may, subject to covenants entered into with the owners of the bonds, be pledged as security for the issuance of additional bonds if authorized by the electors.
    3. The tax for the additional bonds shall terminate within the time provided for the tax originally imposed.
  2. Upon retirement on the bonded indebtedness, any surplus tax collections which may have accumulated shall be transferred to the general fund of the issuer, and shall be used for maintenance and operation of the public library.
  3. The collection of ad valorem taxes, or a portion thereof, may be suspended by the issuer when not required for the payment of the bonds, subject to any covenants with the owners of the bonds.
  4. Notwithstanding any other provision of this subchapter, a tax approved by the voters for the purpose of paying bonded indebtedness shall not be reduced or diminished, nor shall it be used for any other purpose than to pay principal of or premium or interest on the bonded indebtedness, and the reasonable fees of a trustee or paying agent so long as the bonded indebtedness shall remain outstanding and unpaid.
  5. Notwithstanding any other provision of this subchapter, a tax approved by the voters and levied for the purpose of paying bonded indebtedness authorized pursuant to this subchapter by a county shall not be levied against any real or personal property which is taxed by a municipality for the maintenance of a public library pursuant to Arkansas Constitution, Amendment 30, as amended by Arkansas Constitution, Amendment 72; provided, however, that no tax levied by a county for the purpose of paying bonded indebtedness authorized pursuant to this subchapter shall ever be diminished or reduced while such bonds are outstanding if a municipality within the county approves such a maintenance tax after the date on which the voters of a county approve a tax for the purpose of paying bonded indebtedness authorized pursuant to this subchapter.

History. Acts 1993, No. 920, § 17.

14-142-219. Bonds generally — Interim borrowing.

  1. If the issuance of bonds is authorized in accordance with the provisions of this subchapter, a municipality or county is authorized to obtain interim financing pending the delivery of all or any part of the bonds from such sources and upon such terms as the municipality or the county shall determine.
  2. As evidence of any indebtedness so incurred, the municipality or the county may execute and deliver its promissory note or notes and pledge to the payment thereof the tax or taxes approved by the voters to be pledged to the bonds, and to otherwise secure the notes as bonds issued under this subchapter may be secured.
  3. The notes may:
    1. Bear such date or dates;
    2. Mature at such time or times, not exceeding three (3) years from their respective dates;
    3. Bear interest at such rate or rates;
    4. Be in such form;
    5. Be executed in such manner;
    6. Be payable at such place or places;
    7. Contain such provisions for prepayment prior to maturity; and
    8. Contain such other terms, covenants, and conditions

as the ordinance or order may provide which are not inconsistent with the provisions of this subchapter.

History. Acts 1993, No. 920, § 22.

14-142-220. Refunding bonds.

  1. Bonds may be issued under this subchapter for the purpose of refunding any outstanding bonds issued hereunder.
    1. The refunding bonds may be either sold for cash or delivered in exchange for the outstanding obligations.
    2. If sold for cash, the proceeds may be either applied to the payment of the obligations refunded or deposited in an irrevocable trust for the retirement thereof either at maturity or on an authorized redemption date.
  2. Refunding bonds shall in all respects be authorized, issued, and secured in the manner provided for the bonds being refunded, and shall have all the attributes of the refunded bonds. However, if the refunding bonds are not in a greater principal amount than the bonds being refunded, the question of issuing such refunding bonds need not be submitted at an election.
  3. The ordinance or order under which the refunding bonds are issued may provide that any refunding bonds shall have the same priority of lien on all sources of taxation or other income as originally pledged for payment of the obligation refunded thereby.
    1. Bonds may also be issued under the provisions of this subchapter for the purpose of refunding any outstanding bonds issued pursuant to Arkansas Constitution, Amendment 62, whether or not issued prior to or subsequent to April 7, 1993, to finance capital improvements if the question of the issuance of the refunding bonds is submitted to the electors in the manner provided in § 14-142-208.
      1. The refunding bonds may be either sold for cash or delivered in exchange for the outstanding obligations.
      2. If sold for cash, the proceeds may either be applied to the payment of the bonds being refunded or deposited in an irrevocable trust for the retirement thereof at maturity or on an authorized redemption date.

History. Acts 1993, No. 920, § 23.

14-142-221. Bonds generally — Tax exemption.

Bonds and notes issued under the provisions of this subchapter and the income thereon shall be exempt from all state, county, and municipal taxes, including, without limitation, all income, property, and inheritance taxes.

History. Acts 1993, No. 920, § 21.

14-142-222. Bonds generally — Mortgage lien.

  1. The ordinance, order, or trust indenture authorized in §§ 14-142-207 and 14-142-209 may, but need not, impose a foreclosable mortgage lien upon the capital improvements financed with the proceeds of bonds issued under this subchapter.
  2. The nature and extent of such mortgage lien may be controlled by the ordinance, order, or trust indenture, including, without limitation, provisions:
    1. Pertaining to the release of all or part of the capital improvements from the mortgage lien;
    2. Pertaining to the priority of the mortgage lien in the event of successive bond issues; and
    3. Authorizing any owner of bonds, or a trustee on behalf of all owners, either at law or in equity, to enforce the mortgage lien and, by proper suit, compel the performance of the duties of the officials of the issuer set forth in this subchapter or in the ordinance, order, or trust indenture authorizing and securing the bonds.
  3. References in this section to “mortgage lien” shall include a security interest in any personal property constituting the capital improvements, or part thereof, financed with the proceeds of bonds issued under this subchapter.

History. Acts 1993, No. 920, § 19.

Chapter 143 Regional Intermodal Facilities Act

A.C.R.C. Notes. Acts 1997, No. 690, § 32, provided:

“All laws and parts of laws in conflict with this Act are hereby repealed. However, to the extent any provisions of this act conflict with the provisions of Act 77 of 1997, the provisions of Act 77 shall prevail.”

Cross References. Disposal of railroad track material, § 15-11-211.

Effective Dates. Acts 1997, No. 690, § 33: Mar. 19, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that there is currently no specific authority for the creation of regional intermodal facilities through cooperative efforts of municipalities and counties, that the passage of this Act and its immediate effectiveness will make it possible to provide necessary intermodal facilities on a regional basis to meet the transportation needs of the public. Therefore, in order to meet these needs, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health, and safety, shall be in full force and effect from and after its passage and approval.”

14-143-101. Title.

This chapter may be cited as the “Regional Intermodal Facilities Act.”

History. Acts 1997, No. 690, § 1.

14-143-102. Definitions.

As used in this chapter:

  1. “Authority” means any authority created under the provisions of this chapter;
  2. “Basic local exchange service” means the service provided to the premises of residential or business customers composed of the following:
    1. Voice grade access to the public switched network, with ability to replace and receive calls;
    2. Touch tone service availability;
    3. Flat rate residential local service and business local service;
    4. Access to emergency services (911/E911) where provided by local authorities;
    5. Access to basic operator services;
    6. A standard white page directory listing;
    7. Access to basic local directory assistance;
    8. Access to long distance toll service providers; and
    9. The minimum service quality as established and required by the Arkansas Public Service Commission on February 4, 1997;
  3. “Construct” means to acquire or build, in whole or in part, in the manner and by the method, including contracting therefor, and if the latter, by negotiation or bids upon the terms and pursuant to the advertising, as the authority shall determine to be in the public interest and necessary under the circumstances existing at the time to accomplish the purposes of and authorities set forth in this chapter;
  4. “County” means any county in this state;
  5. “Equip” means to install or place on or in any building or structure, equipment of any and every kind, whether or not affixed, including, without limiting the generality of the foregoing, building service equipment, fixtures, heating equipment, air conditioning equipment, machinery, furniture, furnishings, and personal property of every kind;
  6. “Facilities” or “property” or “properties” means any real property, personal property, or mixed property of any and every kind that can be used, or that will be useful, to accomplish the purposes of, and powers set forth in, this chapter including, without limiting the generality of the foregoing, rights-of-way, roads, streets, utilities, materials, equipment, fixtures, machinery, furnishings, furniture, instrumentalities, and other real, personal, or mixed property of every kind;
  7. “Governing body” means the council, board of directors, or city commission of any municipality or the county court of any county;
  8. “Intermodal” means one (1) or more modes of interconnected movement of freight, commerce, or passengers;
  9. “Lease” means to lease for such rentals, for such period or periods, and upon such terms and conditions as the authority shall determine, including, without limiting the generality of the foregoing, the granting of such renewal or extension options for such rentals, for such periods, and upon such terms and conditions as the authority shall determine and the granting of such purchase options for such prices and upon such terms and conditions as the authority shall determine;
  10. “Mode” means railway, highway, air, pipeline, waterway, transit, and communication systems and related means of movement of freight, commerce, or passengers;
  11. “Municipality” or “municipal corporation” means a city of the first class, a city of the second class, or an incorporated town;
  12. “Person” means any natural person, partnership, corporation, association, organization, business trust, and public or private person or entity;
  13. “Sell” means to sell for such price, in such manner, and upon such terms as the authority shall determine, including, without limiting the generality of the foregoing, private or public sale, and if public, pursuant to such advertising as the authority shall determine, sale for cash or credit payable in lump sum, or in installments over such period as the authority shall determine, and if on credit, with or without interest and at such rate or rates as the authority shall determine; and
  14. “State” means the State of Arkansas.

History. Acts 1997, No. 690, § 2; 2003, No. 1158, § 1.

Amendments. The 2003 amendment substituted “one (1) or more modes” for “more than one (1) mode” in present (8).

Research References

U. Ark. Little Rock L. Rev.

Survey of Legislation, 2003 Arkansas General Assembly, Local Government, Definition of Intermodal, 26 U. Ark. Little Rock L. Rev. 434.

14-143-103. Establishment of authorities.

    1. Any two (2) or more municipalities, any two (2) or more contiguous counties, or any one (1) or more municipalities together with any one (1) or more contiguous counties, are authorized to create and establish an authority as prescribed in this chapter for the purpose of acquiring, equipping, constructing, maintaining, and operating regional intermodal facilities.
    2. No county or municipality shall participate in such authority unless and until its governing body so provides by ordinance, and enters into an agreement with the other participating governmental units establishing the terms and conditions for the operation of the authority within the limitations provided in this chapter and such other laws of the State of Arkansas as may be applicable.
  1. To the extent that it is consistent with this chapter, the agreement shall specify the information provided for in § 25-20-104(c).
  2. The agreement shall be filed with the Secretary of State.

History. Acts 1997, No. 690, § 3.

14-143-104. Authority as public corporation.

  1. Each authority when created, and the members thereof, shall constitute a public corporation and, as such, shall have perpetual succession, may contract and be contracted with, sue and be sued, and have and use a common seal.
  2. The exercise of the powers and performance of duties provided for in this chapter by each authority and its officers, agents, and employees are declared to be public and governmental functions, exercised for a public purpose and matters of public necessity, conferring upon each authority governmental immunity from suit in tort.

History. Acts 1997, No. 690, § 4.

14-143-105. Appointment of board.

  1. Subject to such limitations as may be contained in the agreement provided for in § 14-143-103, the management and control of each authority and its property, operations, business, and affairs shall be lodged in a board of not less than six (6) nor more than twenty-four (24) persons who shall be appointed for terms of six (6) years each as hereinafter provided.
  2. The number of members that each of the participating governmental units is entitled to appoint to the board shall be set forth in the agreement provided for in § 14-143-103. However, each of the participating governmental units shall be entitled to appoint at least one (1) member to the board. Appointments shall be made by the mayor of each participating municipality and the county judge of each participating county.
  3. The members of the authority shall have staggered terms, as provided in the agreement establishing the authority, as follows: One-third (1/3) of the members for six-year terms; one-third (1/3) of the members for four-year terms; and one-third (1/3) of the members for two-year terms. Thereafter, all appointments shall be for six-year terms.
  4. All members of the board appointed by the participating municipalities and counties shall be bona fide residents and qualified electors of the county or municipality which the members represent.

History. Acts 1997, No. 690, § 5.

14-143-106. Vacancy on board.

  1. If any member of an authority dies, resigns, is removed, or for any other reason ceases to be a member of the authority, the mayor or the county judge, as appropriate to the governmental unit which the member represented, shall appoint another person to fill the unexpired portion of the term of the member.
  2. A member of the authority once qualified shall not be removed during his appointment except for cause by the mayor or the county judge, as appropriate to the governmental unit which the member represents, or upon such other conditions as shall be set forth in the agreement establishing the authority.

History. Acts 1997, No. 690, § 6.

14-143-107. Compensation prohibited — Reimbursement of expenses.

  1. No member of the board of an authority shall receive any compensation, whether in form of salary, per diem allowance, or otherwise, for or in connection with his services as a member.
  2. Each member shall, however, be entitled to reimbursement by the authority for any necessary expenditures in connection with the performance of his general duties as a member.

History. Acts 1997, No. 690, § 7.

14-143-108. Facilities authorized.

Each authority is authorized and empowered to acquire, equip, construct, maintain, and operate an intermodal facility and appurtenant facilities or properties so located to best serve the region in which they are located. Each authority is further authorized and empowered to acquire, equip, construct, maintain, and operate industrial, warehouse, distribution and related types of facilities, including education, training, office and support facilities, located at or near an intermodal facility for the purpose of securing and developing industry.

History. Acts 1997, No. 690, § 8.

14-143-109. Powers of authority generally.

  1. Each authority is given power and authority as follows:
    1. To make and adopt all necessary bylaws, rules, and regulations for its organization and operations not inconsistent with law;
    2. To elect its own officers, to appoint committees, and to employ and fix the compensation for personnel necessary for its operation;
    3. To enter into contracts with any person, governmental department, firm, or corporation, including both public and private corporations, and generally to do any and all things necessary or convenient for the purpose of acquiring, equipping, constructing, maintaining, improving, extending, financing, and operating an intermodal facility including, without limitation, railway-highway terminals, highway-railway terminals, shipping facilities, railroad sidings, turnouts, spur branches, switches, yards tracks, bridges and trestles, parks for industrial facilities, buildings, warehouses, utilities, highways, roads, streets, roadways and approaches, bulk loading and unloading facilities, elevators, tipples, compresses, refrigeration storage plants, transfer equipment, and related improvements and facilities as it may deem feasible for the expeditious and efficient handling of freight, commerce, and passengers to and from any other part of the state or any other state and foreign countries to best serve the region in which it is located;
    4. To assume the rights and responsibilities of the municipality with respect to all existing and future permits and franchises with public utilities for the supplying of public utility service to be intermodal facility;
    5. To delegate any authority given to it by law to any of its officers, committees, agents, or employees;
    6. To apply for, receive, and use grants-in-aid, donations, and contributions from any source, including, but not limited to, the federal government, or any agency thereof, and the State of Arkansas, or any agency thereof, and to accept and use bequests, devises, gifts, and donations from any person, firm, or corporation;
    7. To acquire lands and hold title thereto in its own name;
    8. To acquire, own, hold, lease as lessor or as lessee, sell, encumber, dispose of, or otherwise deal in and with any facilities or real, personal, or mixed property, wherever located;
    9. To borrow money and execute and deliver negotiable notes, mortgage bonds, other bonds, debentures, and other evidences of indebtedness therefor, and give such security therefor as shall be requisite, including giving a mortgage or deed of trust on its properties and facilities in connection with the issuance of mortgage bonds;
    10. To raise funds by the issuance and sale of revenue bonds in the manner and according to the terms set forth in this chapter;
    11. To expend its funds in the execution of the powers and authorities given in this chapter and to invest and reinvest any of its funds pending need therefor;
    12. To apply for, receive, and use loans, grants, donations, technical assistance, and contributions from any agency of the federal government or the State of Arkansas;
    13. To constitute the authority, or a committee thereof, as improvement district commissioners and to create and operate an improvement district, composed of the area encompassed within the jurisdictions of the participating governing bodies, upon the petition of persons claiming to be two-thirds (2/3) in value of the owners of real property in the area, as shown by the last county assessment. The improvement district shall be for the purpose of financing the construction, reconstruction, or repair of the regional intermodal facilities. The creation and operation of an improvement district shall, to the extent consistent with this chapter, be in accordance with the procedures established by the laws of this state for the creation and operation of municipal improvement districts;
    14. To enforce all rules, regulations, and statutes relating to its intermodal facilities;
    15. To plan, establish, develop, construct, enlarge, improve, maintain, equip, operate, and regulate its intermodal facilities and auxiliary services and facilities, and to establish minimum building codes and regulations and to protect and police the intermodal facilities and other facilities of the authority, in cooperation with the law enforcement agencies and officers having jurisdiction in the area where the facilities of the authority are located;
    16. To levy and collect a tax or fee, which tax or fee shall be levied upon and collected from the shippers, transporters, or other users loading or unloading freight, commerce or passengers at the terminal or other facilities of the authority, and the authority is empowered to make reasonable classifications of such shippers, transporters, or users for this purpose;
    17. To receive real and personal property from the United States for intermodal facilities and related purposes, by donation, purchase, lease or otherwise, and subject to such conditions and requirements relating thereto as the United States may require and to which the authority may agree;
    18. To apply to the proper authorities of the United States pursuant to appropriate law for the right to establish, operate, and maintain foreign trade zones within the area of jurisdiction of the member municipalities and/or counties and to establish, operate, and maintain such foreign trade zones;
    19. To promote, advertise, and publicize the authority and its facilities; provide information to shippers, transporters, users, operators and other commercial interests; and to represent and promote the interests of the authority; and
    20. To take such other action, not inconsistent with law, as may be necessary or desirable to carry out the powers and authorities conferred by this chapter and the intent and purposes of it.
  2. The enumeration of these powers shall not limit or circumscribe the broad objectives and purposes of this chapter and the broad objectives of developing to the utmost, intermodal facilities and necessary and desirable related facilities or properties, in order to stimulate commercial development.
  3. Nothing herein, however, authorizes this authority or any municipality, county, or state to provide, directly or indirectly, basic local exchange service.

History. Acts 1997, No. 690, § 9.

14-143-110. Issuance of revenue bonds — Authorization.

  1. Authorities are authorized to use any available revenues for the accomplishment of the purposes and the implementation of the powers authorized by this chapter, including the proceeds of revenue bonds issued from time to time pursuant to the provisions of this chapter, either alone or together with other available funds and revenues.
  2. The amount of each issue of bonds issued may be sufficient to pay:
    1. The costs of accomplishing the purposes for which it is being issued;
    2. The cost of issuing the bonds;
    3. The amount necessary for a reserve, if it is determined to be desirable in favorably marketing the bonds;
    4. The amount, if any, necessary to provide for debt service on the bonds until revenues for the payment thereof are available; and
    5. Any other costs and expenditures of whatever nature incidental to the accomplishment of the specified purposes.

History. Acts 1997, No. 690, § 10.

14-143-111. Issuance of revenue bonds — Resolution of authority — Nature of bonds.

  1. The issuance of revenue bonds shall be by resolution of the authority.
  2. The bonds of each issue may:
    1. Be coupon bonds payable to bearer or may be registrable as to principal only or as to both principal and interest;
    2. Be in such form and denominations;
    3. Be made payable at such places within or without the state;
    4. Be issued in one (1) or more series;
    5. Bear such date or dates;
    6. Mature at such time or times, not exceeding forty (40) years from their respective dates;
    7. Bear interest at such rate or rates;
    8. Be payable in such medium of payment;
    9. Be subject to such terms of redemption; and
    10. Contain such terms, covenants, and conditions as the resolution authorizing their issuance may provide including, without limitation, those pertaining to:
      1. The custody and application of the proceeds of the bonds;
      2. The collection and disposition of revenues;
      3. The maintenance and investment of various funds and reserves;
      4. The imposition and maintenance of taxes, fees, rates and charges for the use of the terminal and other facilities;
      5. The nature and extent of the security;
      6. The rights, duties, and obligations of the authority and the trustee for the holders and registered owners of the bonds; and
      7. The rights of the holders and registered owners of the bonds.
    1. There may be successive bond issues for the purpose of financing the same project. There may also be successive bond issues for financing the cost of reconstructing, replacing, constructing additions to, extending, improving, and equipping projects already in existence, whether or not originally financed by bonds issued under this chapter, with each successive issue to be authorized as provided by this chapter.
    2. Priority between and among issues and successive issues as to security, the pledge of revenues and lien on and security interest in the land, buildings, and facilities involved, may be controlled by the resolutions authorizing the issuance of bonds under this chapter.
  3. Subject to the provisions of this section and § 14-143-110 and §§ 14-143-112 — 14-143-118 of this chapter pertaining to registration, the bonds shall have all the qualities of negotiable instruments under the laws of the State of Arkansas.

History. Acts 1997, No. 690, § 11.

14-143-112. Issuance of revenue bonds — Indenture.

  1. The resolution authorizing the bonds may provide for the execution by the authority of an indenture which defines the rights of the holders and registered owners of the bonds and provides for the appointment of a trustee for the holders and registered owners of the bonds.
  2. Indenture may control the priority between successive issues and may contain any other terms, covenants, and conditions that are deemed desirable, including, without limitation, those pertaining to:
    1. The custody and application of the proceeds of the bonds;
    2. The collection and disposition of revenues;
    3. The maintenance of various funds and reserves;
    4. The imposition and maintenance of taxes, fees, rates and charges for the use of regional intermodal facilities and other facilities of the authority;
    5. The nature and extent of the security;
    6. The rights, duties, and obligations of the authority and the trustee; and
    7. The rights of the holders and registered owners of the bonds.

History. Acts 1997, No. 690, § 12.

14-143-113. Issuance of revenue bonds — Price and manner sold.

The bonds may be sold for such price, including sale at a discount, and in such manner as the authority may determine by resolution.

History. Acts 1997, No. 690, § 13.

14-143-114. Issuance of revenue bonds — Execution.

    1. The bonds shall be executed by the manual or facsimile signatures of the chairman and secretary of the authority.
    2. In case any of the officers whose signatures appear on the bonds or coupons shall cease to be such officers before the delivery of the bonds or coupons, their signatures shall nevertheless be valid and sufficient for all purposes.
  1. The coupons attached to the bonds may be executed by the facsimile signature of the chairman of the authority.

History. Acts 1997, No. 690, § 14.

14-143-115. Issuance of revenue bonds — Obligation of authority.

  1. The revenue bonds issued under this chapter shall be obligations only of the authority and shall not be general obligations of any county or municipality, or the state.
    1. In no event shall the revenue bonds constitute an indebtedness of any county or municipality, or the state within the meaning of any constitutional or statutory limitation.
    2. It shall be plainly stated on the face of each bond that it has been issued under the provisions of this chapter and that it does not constitute an indebtedness of any county or municipality, or the state within any constitutional or statutory limitation.
  2. The principal of and interest on the bonds may be secured, to the extent set forth in the resolution or indenture securing the bonds, by a pledge of and payable from all or any part of revenues derived from the use of facilities of the authority, including, without limitation:
    1. Revenues derived from rates and charges imposed and maintained for the use of facilities of the authority;
    2. Revenues derived from taxes or fees levied under subdivision (a)(15) and (16) of § 14-143-109 of this chapter; and
    3. Lease rentals under leases or payments under security agreements or other instruments entered into under this chapter.

History. Acts 1997, No. 690, § 15.

14-143-116. Issuance of revenue bonds — Refunding bonds.

    1. Revenue bonds may be issued under this chapter for the purpose of refunding any obligations issued under this chapter.
    2. The refunding bonds may be combined with bonds issued into a single issue.
    1. When bonds are issued under this section for refunding purposes, the bonds may either be sold or delivered in exchange for the outstanding obligations.
    2. If sold, the proceeds may be either applied to the payment of the obligations refunded or deposited in escrow for the retirement of them.
    1. All refunding bonds issued under this chapter shall, in all respects, be authorized, issued, and secured in the manner provided for other bonds issued under this chapter and shall have all the attributes of these bonds.
    2. The resolution under which these refunding bonds are issued may provide that any of the refunding bonds shall have the same priority of lien on the revenues pledged for their payment as was enjoyed by the obligations refunded by them.

History. Acts 1997, No. 690, § 16.

14-143-117. Issuance of revenue bonds — Mortgage lien.

  1. The resolution or indenture securing the bonds may impose a forecloseable mortgage lien upon or security interest in the facilities of the authority, or any portion thereof, and the extent of the mortgage lien or security interest may be controlled by the resolution or indenture including, without limitation, provisions pertaining to the release of all or part of the facilities subject to the mortgage lien or security interest in the event of successive issues of bonds.
  2. Subject to the terms, conditions, and restrictions contained in the resolution or indenture, any holder of any of the bonds, or of any coupon attached thereto, or a trustee on behalf of the holders may, either at law or in equity, enforce the mortgage lien or security interest and may, by proper suit, compel the performance of the duties of the officials of the authority set forth in this chapter and set forth in the resolution or indenture.

History. Acts 1997, No. 690, § 17.

14-143-118. Issuance of revenue bonds — Default.

    1. In the event of a default in the payment of the principal of or interest on any bonds issued under this chapter, any court having jurisdiction may appoint a receiver to take charge of any facilities upon or in which there is a mortgage lien or security interest securing the bonds in default.
    2. The receiver shall have the power to operate and maintain the facilities in receivership and to charge and collect taxes, fees, rates and rents sufficient to provide for the payment of any costs of receivership and operating expenses of the facilities in receivership and to apply the revenues derived from the facilities in receivership in conformity with this chapter and the resolution or indenture securing the bonds in default.
    3. When the default has been cured, the receivership shall be ended and the facilities returned to the authority.
  1. The relief provided for in this section shall be construed to be in addition and as supplemental to the remedies that may be provided for in the resolution or indenture securing the bonds and shall be so granted and administered as to accord full recognition to priority rights of bondholders as to the pledge of revenues from, mortgage lien on, and security interest in facilities as specified in and fixed by the resolution or indenture securing successive issues of bonds.

History. Acts 1997, No. 690, § 18.

14-143-119. Agreements to obtain funds.

Each authority may, in connection with obtaining funds for its purposes, enter into any agreement with any person, firm, or corporation including the federal government, or any agency or subdivision thereof, containing such provisions, covenants, terms, and conditions as the authority may deem advisable.

History. Acts 1997, No. 690, § 19.

14-143-120. Acquisition of property.

  1. Whenever it shall be deemed necessary by an authority, in connection with the exercise of its powers conferred in this chapter, to take or acquire any lands, structures, buildings, or other rights, either in fee or as easements, for the purposes set forth in this chapter, the authority may purchase them directly or through its agents from the owners thereof, or failing to agree with the owners, the authority may exercise the power of eminent domain, and these purposes are declared to be public uses for which private property may be taken or damaged.
  2. Should an authority elect to exercise the right of eminent domain, condemnation proceedings shall be maintained by and in the name of the authority, and it may proceed in the manner provided by the general laws of the State of Arkansas for the procedure by any county, municipality, or authority organized under the laws of this state, or by railroad corporations, as the authority may, in its discretion, elect.

History. Acts 1997, No. 690, § 20.

14-143-121. Exemption from taxation.

  1. Each authority shall be exempt from the payment of any taxes or fees to the state, or any subdivision thereof, or to any office or employee of the state, or of any subdivision thereof; however, each authority shall withhold and remit state income taxes as prescribed by the Arkansas Income Tax Withholding Act of 1965, § 26-51-901 et seq.
    1. The property of each authority shall be exempt from all local and municipal taxes.
    2. Bonds, notes, debentures, and other evidences of indebtedness of the authority are declared to be issued for a public purpose and to be public instrumentalities and, together with interest thereon, shall be exempt from all state, county, and municipal taxes, including, but without limitation, income, inheritance and estate taxes.
  2. A lessee of an authority under § 14-143-126 is exempt from state, county, and municipal sales and use taxes on purchases of tangible personal property and services if:
    1. The lessee's facility is constructed after July 22, 2015, and has not been occupied by any other authority lessee;
    2. At an establishment within fifty (50) miles of the intermodal facility, the lessee has not ceased or substantially reduced operations of a nature similar to those being performed at the lessee's facility within the intermodal facility;
    3. The tangible personal property or service is consumed, used, or performed at the lessee's facility within the intermodal facility; and
    4. The lessee's facility is used to carry out the essential governmental functions of the authority under § 14-143-104(b).

History. Acts 1997, No. 690, § 21; 2015, No. 691, § 1.

Amendments. The 2015 amendment added (c).

14-143-122. Use of surplus funds.

  1. If an authority should realize a surplus, whether from operating the intermodal facilities and other facilities or leasing it or them for operation, over and above the amount required for the maintenance, improvement, and operation of the intermodal facility and other facilities and for meeting all required payments on its obligations, it shall set aside the reserve for future operations, improvements, and contingencies as it shall deem proper and shall then apply the residue of the surplus, if any, to the payment of any recognized and established obligations not then due.
  2. After all the recognized and established obligations have been paid off and discharged in full, the authority shall, at the end of each fiscal year, set aside the reserve for future operations, improvements, and contingencies as prescribed in subsection (a) and then pay the residue of the surplus, if any, to the counties and municipalities in direct proportion to their financial contribution, provided that no such distribution of said residue of the surplus shall violate United States law or the terms of any deed, grant agreement or other agreement with the United States.

History. Acts 1997, No. 690, § 22.

14-143-123. Public and private contributions.

  1. Contributions may be made to authorities from time to time by the counties, municipalities, and the state and persons, firms, or corporations that shall desire to do so.
  2. In order to afford maximum opportunities for contributions, the agreement provided for under § 14-143-103 of this chapter may be treated as a cooperative agreement under the provisions of the Interlocal Cooperation Act, § 25-20-101 et seq., and may contain language enabling the agreement to be treated as a formal compact under §§ 14-165-201 — 14-165-204 in which case the authority shall hold title to property in its powers and capacity as a public corporation rather than as a commission-trustee as provided in §§ 14-165-201 — 14-165-204, or may be treated as a less formal arrangement for the cooperative use of industrial development bond funds, all to the end that the counties and municipalities may contribute to the authority funds derived from general obligation bonds under Arkansas Constitution Amendments 13 and 49, from revenue bonds under §§ 14-164-201 — 14-164-206 from other available sources, and may contribute funds derived from a combination of these sources.

History. Acts 1997, No. 690, § 23.

14-143-124. Accounts and reports.

    1. All funds received by an authority shall be deposited in such banks as the authority may direct and shall be withdrawn therefrom in such manner as the authority may direct.
      1. Each authority shall keep strict account of all of its receipts and expenditures and shall each quarter make a report to those participating entities which have made contributions.
        1. The report shall contain an itemized account of its receipts and disbursements during the preceding quarter.
        2. The report shall be made within sixty (60) days after the termination of the quarter.
    1. Within sixty (60) days after the end of each fiscal year, each authority shall cause an annual audit to be made by an independent certified public accountant and shall file a copy of the resulting audit report with each of the governing bodies participating in the authority. This audit shall contain an itemized statement of its receipts and disbursements for the preceding year.
    2. The books, records, and accounts of each authority shall be subject to audit and examination by any proper public official or body in the manner provided by law.
  1. The agreement provided for in § 14-143-103 of this chapter may also provide for each authority to furnish the participating governing bodies copies of its annual budget for examination and approval.

History. Acts 1997, No. 690, § 24.

14-143-125. County, municipal, and state authority.

  1. Counties and municipalities are authorized and empowered to appoint members of the authorities and counties, municipalities, and the state are authorized and empowered to contribute to the cost of acquiring, constructing, equipping, maintaining, and operating the regional intermodal facilities and appurtenant facilities.
  2. Counties, municipalities, and the state are authorized and empowered to transfer and convey to the authorities property of any kind acquired by the counties, municipalities, and the state for transportation purposes.

History. Acts 1997, No. 690, § 25.

14-143-126. Lease of facilities.

  1. Each authority may lease its intermodal facilities and all or any part of its appurtenances and facilities to any available lessee at such rental and upon such terms and conditions as the authority shall deem proper.
  2. Leases shall be for some purpose associated with intermodal transportation activities.

History. Acts 1997, No. 690, § 26.

14-143-127. Sale of assets.

In the event the board shall so determine, any authority may make sale of all or any part of its properties and assets and distribute the proceeds among the participating municipalities and the counties in the proportion each such unit contributed to the authority's funds or otherwise in the manner set forth in the agreement establishing the authority, provided, no sale of properties or assets and no distribution of proceeds of such sale shall be done in a manner which violates United States law or the terms of any deed, grant agreement, or other agreement with the United States.

History. Acts 1997, No. 690, § 27.

14-143-128. Authorized investors.

Any municipality, or any board, commission, or other authority duly established by ordinance of any municipality, or the boards of trustees, respectively, of the firemen's relief and pension fund and the policemen's pension and relief fund of any such municipality, or the board of trustees of any retirement system created by the General Assembly of the State of Arkansas, may, in its discretion, invest any of its funds not immediately needed for its purposes, in bonds issued under the provisions of this chapter, and bonds issued under the provisions of this chapter shall be eligible to secure the deposit of public funds.

History. Acts 1997, No. 690, § 28.

14-143-129. Construction.

This chapter shall be liberally construed to accomplish its intent and purposes and shall be the sole authority required for the accomplishment of its purpose. To this end:

  1. It shall not be necessary to comply with the general provisions of other laws dealing with public facilities, their acquisition, construction, leasing, encumbering, or disposition, except to the extent provided for in § 14-206-101, et. seq., § 14-207-101, et seq., and § 18-15-501, et seq.; and
  2. Section 15-5-303 shall not apply.

History. Acts 1997, No. 690, § 29.

14-143-130. Funding for regional intermodal facilities.

  1. The Arkansas Department of Transportation shall distribute the first five hundred twenty-five thousand dollars ($525,000) of interest income received under § 27-70-204 each year from the State Highway and Transportation Department Fund. The moneys shall be:
    1. Equally distributed to each authority;
    2. Deposited into a bank as the authority may direct under § 14-143-124(a)(1); and
    3. Used for the purposes and the implementation of the powers authorized under this chapter.
  2. Moneys remaining in the bank designated by the authority under subdivision (a)(2) of this section shall carry forward and be made available for the purposes stated in subdivision (a)(3) of this section in the next fiscal year.

History. Acts 2017, No. 705, § 1.

Chapter 144 Research Park Authority Act

Effective Dates. Acts 2007, No. 1045, § 8: Apr. 4, 2007. Emergency clause provided: “It is found and determined by General Assembly of the State of Arkansas that the development of products and services derived from research activities involving Arkansas institutions of higher education and businesses and entrepreneurs involved in these research activities form the basis for much needed economic development that capitalizes on knowledge acquired through research; that the resulting intellectual property that is the foundation for business development presents opportunities for the State of Arkansas to compete effectively in the changing global economy; that the opportunities available for the growth of knowledge-based businesses are dependent upon the State of Arkansas creating an environment that allows these new businesses to grow and succeed in Arkansas; and that this act is immediately necessary to develop and retain these knowledge-based businesses in the State of Arkansas. Therefore, an emergency is declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Subchapter 1 — Intent and Definitions

Effective Dates. Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

14-144-101. Title.

This chapter may be cited as the “Research Park Authority Act”.

History. Acts 2007, No. 1045, § 1.

14-144-102. Legislative intent.

    1. It is the intent of the General Assembly to maximize the benefits to be derived from Arkansas's institutions of higher education. Therefore it is necessary to provide an environment conducive to the creation and retention of businesses that develop through Arkansas's colleges and universities.
    2. In many instances, these businesses are founded by entrepreneurs engaged in research, and it is imperative that research facilities be made available in the State of Arkansas to encourage, house, and support these developing entrepreneurs and businesses.
    3. This chapter is intended to provide a mechanism by which appropriate research facilities may be developed, funded, and operated for the purpose of supporting and retaining Arkansas entrepreneurs and businesses dependent upon research for their further development.
  1. It is further intended that the research parks created under this chapter shall serve as a catalyst for community growth and transformation and as centers for community planning and improvement.

History. Acts 2007, No. 1045, § 1.

14-144-103. Definitions.

As used in this chapter:

  1. “Accredited institution of higher education” means a four-year public college or university that offers bachelor's degrees and is recognized by the Division of Higher Education for credit;
  2. “Construct” means to acquire or build, in whole or in part, in the manner and by the method, including contracting for the acquisition or building, and if the latter, by negotiation or bids upon the terms and pursuant to the advertising, as the research park authority shall determine to be in the public interest and necessary under the circumstances existing at the time to accomplish the purposes of and authorities under this chapter;
  3. “County” means any county in this state;
    1. “Development” means the translation of research findings or other knowledge into a plan or design for a new product or process or for a significant improvement to an existing product or process whether intended for sale or use.
    2. “Development” includes the conceptual formulation, design, and testing of all forms of software content, product alternatives, construction of prototypes, and operation of pilot plants;
  4. “Equip” means to install or place on or in any building or structure, equipment of any and every kind, whether or not affixed, including without limitation:
    1. Air conditioning equipment;
    2. Building service equipment;
    3. Fixtures;
    4. Furnishings;
    5. Furniture;
    6. Heating equipment;
    7. Machinery; and
    8. Personal property of every kind;
  5. “Facilities” means any real property, personal property, or mixed property of any kind that can be used or that will be useful to accomplish the purposes of this chapter, including without limitation:
    1. Equipment;
    2. Fixtures;
    3. Furnishings;
    4. Furniture;
    5. Instrumentalities;
    6. Machinery;
    7. Materials;
    8. Rights-of-way;
    9. Roads and streets;
    10. Utilities; and
    11. Other real, personal, or mixed property;
  6. “Governing body” means:
    1. For a municipality, the city council or board of directors;
    2. For a county, the quorum court;
    3. For an institution of higher education, the board of trustees;
    4. For a state agency, the Governor; and
    5. For a research institute or center, the board of directors of the 501(c)(3) or 501(c)(6) entity;
  7. “Lease” means to lease for rental, for periods, and upon terms and conditions the research park authority shall determine, including without limitation:
    1. The granting of renewal or extension options upon terms and conditions the authority shall determine; and
    2. The granting of purchase options at prices and upon terms the authority shall determine;
  8. “Municipality” means a city of the first class, a city of the second class, or an incorporated town;
  9. “Person” means any natural person, partnership, corporation, association, limited liability company, organization, business trust, foundation, trust, and public or private person;
  10. “Research” means planned research or critical investigation aimed at the discovery of new knowledge to create a new product or service or a new process or technique or to bring about a significant improvement in an existing product or process;
  11. “Research institute or center” means a nonprofit or government-owned or operated organization that has a presence in Arkansas and is involved with performing research for processes, products, techniques, or services;
  12. “Research park” means an area of a municipality or county with defined boundaries that is the site of one (1) or more buildings housing persons that are engaged in research and development projects under this chapter;
  13. “Research park authority” means a public entity created under this chapter to provide facilities and support for businesses engaged in research and development in pursuit of economic development opportunities;
    1. “Sell” means to sell for a price, in a manner, and upon terms the authority determines, including without limitation private or public sale.
      1. If the sale is public, the authority shall advertise the sale and shall determine whether the sale shall be for cash or credit payable in lump sum or in installments over a period the authority shall determine.
      2. If the sale is for credit, the authority shall determine whether the credit shall be with or without interest and at what rate; and
  14. “State” means the State of Arkansas.

History. Acts 2007, No. 1045, § 1; 2009, No. 163, § 1; 2011, No. 628, § 1; 2019, No. 910, § 2238.

Amendments. The 2009 amendment inserted (13), redesignated the remaining subsections accordingly, and made a minor stylistic change.

The 2011 amendment deleted “the council, board of directors, or city commission of any municipality, the quorum court of any county, or the board of trustees of an accredited institution of higher education” at the end of the introductory language of (7); added (7)(A) through (E); and added (12) and redesignated the remaining subdivisions accordingly.

The 2019 amendment substituted “Division of Higher Education” for “Department of Higher Education” in (1).

14-144-104. Construction.

  1. This chapter shall be liberally construed to accomplish its intent and purposes and shall be the sole authority required for the accomplishment of its purpose.
  2. To this end:
    1. It shall not be necessary to comply with the general provisions of other laws dealing with public facilities and their acquisition, construction, leasing, encumbering, or disposition, except to the extent provided for in § 14-206-101 et seq., § 14-207-101 et seq., and § 18-15-501 et seq.; and
    2. Section 15-5-303 shall not apply.

History. Acts 2007, No. 1045, § 1.

Subchapter 2 — Powers of Research Park Authority

14-144-201. Research park authority — Creation.

    1. A research park authority:
      1. Shall have as sponsor at least one (1) accredited institution of higher education; and
      2. May have one (1) or more:
        1. Municipality;
        2. County;
        3. State agency; or
        4. Research institute or center.
    2. One (1) or more sponsors who meet the requirements of subdivision (a)(1) of this section may create a research park authority under this chapter for the purpose of acquiring, constructing, maintaining, and operating a research park.
  1. A county or municipality shall not participate in a research park authority unless the governing body of the county or municipality:
    1. Provides by ordinance to participate in the research park authority; and
    2. Enters into an agreement with at least one (1) accredited institution of higher education to create and maintain the research park authority.
  2. An accredited institution of higher education shall not participate in a research park authority unless the governing body of the accredited institution of higher education adopts a resolution to participate in the research park authority.
  3. A research park shall be located either within:
    1. The geographical boundaries of a county or municipality that is a sponsor of the research park authority; or
    2. The main campus or in the proximity of the main campus of the sponsoring accredited institution of higher education that is a sponsor of the research park authority.
    1. A sponsor of a research park authority shall enter into an agreement establishing the terms and conditions for the operation of the authority under this chapter and any other laws of the State of Arkansas that may be applicable.
    2. To the extent that it is consistent with this chapter, the agreement shall specify the information provided for in the Interlocal Cooperation Act, § 25-20-101 et seq.
    3. The agreement may also provide for each authority to furnish the participating sponsor or sponsors copies of its annual budget for examination and approval.
    4. The agreement shall be filed with the Secretary of State.
  4. By action of the research park authority board, a research park authority established under this chapter may add one (1) or more sponsors to the creating sponsors under subdivision (a)(1)(B) of this section.

History. Acts 2007, No. 1045, § 1; 2011, No. 628, § 2.

Amendments. The 2011 amendment inserted “or” in (a)(1)(B); and added (a)(1)(B)(iv); redesignated former (c) and (c)(1) as (c); deleted former (c)(2); inserted “main campus, or in the proximity of the” in (d)(2); and added (f).

14-144-202. Public corporation.

  1. Upon creation of a research park authority:
    1. The authority and its members shall:
      1. Constitute a public corporation; and
      2. Have perpetual succession; and
    2. The authority and its members may:
      1. Contract and be contracted with;
      2. Sue and be sued; and
      3. Have and use a common seal.
  2. The exercise of the powers and performance of the duties under this chapter by each authority are declared to be public and governmental functions that are exercised for a public purpose and for matters of public necessity and that confer upon each authority governmental immunity from suit in tort.

History. Acts 2007, No. 1045, § 1.

14-144-203. Research park authority board.

  1. Subject to any limitations created in the agreement required under § 14-144-201(c), the management and control of each research park authority and its property, operations, business, and affairs shall be lodged in a research park authority board of not less than five (5) nor more than seven (7) natural persons who shall be appointed for terms of five (5) years each.
    1. The number of members of the board to which each of the participating governmental bodies is entitled shall be set forth in the agreement required under § 14-144-201(c).
    2. However, each of the participating governmental bodies shall be entitled to appoint at least one (1) member.
    3. Appointments of members shall be made:
      1. For a municipality, by the mayor;
      2. For a county, by the county judge;
      3. For an accredited institution of higher education, by the president or chancellor of the accredited institution of higher education; and
      4. For a state agency, by the Governor.
    1. The members shall serve staggered terms.
    2. Upon taking office, the members shall draw lots so that:
      1. One (1) member shall have a one-year term;
      2. One (1) member shall have a two-year term;
      3. One (1) member shall have a three-year term;
      4. One (1) member shall have a four-year term; and
      5. One (1) member shall have a five-year term.
    3. A sixth or seventh member shall serve a five-year term.
    4. After the expiration of their respective terms, persons reappointed to the board or their successors shall serve five-year terms.
    5. A person shall not serve as a member for more than a total of ten (10) consecutive years.
    1. A member appointed by a mayor or county judge shall be a bona fide resident and qualified elector of the municipality or county of the appointing mayor or county judge.
    2. A member of the board appointed by the president or chancellor of the accredited institution of higher education shall be a bona fide resident and qualified elector of the institution's metropolitan statistical area or the county in which the main campus of the institution is located if the main campus is not the institution's metropolitan statistical area.
    3. A member appointed by the Governor shall be a bona fide resident and a qualified elector of the State of Arkansas.
  2. If a member dies, resigns, is removed, or for any other reason ceases to be a member of the board, the officer who appointed the member shall appoint another eligible person to fill the unexpired portion of the term of the member.
  3. A member once qualified shall not be removed during his or her term except for cause by the mayor, county judge, president or chancellor of the accredited institution of higher education or Governor who appointed the member or upon such other conditions as may be set forth in the agreement required under § 14-144-201(c).
    1. A member shall not receive any compensation whether in the form of salary, per diem allowance, or in another form for or in connection with his or her services as a member.
    2. However, each member shall be entitled to reimbursement by the board for any necessary expenditures in connection with the performance of his or her general duties as a member.

History. Acts 2007, No. 1045, § 1.

14-144-204. Powers of research park authority board.

  1. Each research park authority board is given the following powers:
    1. To make and adopt all necessary bylaws for its organization and operation;
    2. To elect officers and to employ personnel necessary for its operation;
    3. To delegate any authority given to it by law to any of its officers, committees, agents, or employees;
    4. To enter into contracts necessary or incidental to its powers and duties under this chapter;
    5. To apply for, receive, and spend grants for any purpose of this chapter;
    6. To acquire lands and hold title to the lands acquired in its own name;
    7. To acquire, own, use, and dispose of property in the exercise of its powers and the performance of its duties under this chapter;
    8. To borrow money and execute and deliver negotiable notes in the exercise of its powers and the performance of its duties under this chapter;
    9. To issue bonds;
    10. To acquire, equip, construct, maintain, and operate a research park and appurtenant facilities or properties;
    11. To acquire, equip, construct, maintain, and operate research and related types of facilities, including education, training, office and support facilities, located at or near a research park for the purpose of securing and developing new businesses with a research orientation;
    12. To request and receive from time to time, from counties or cities within the boundaries of the research park authority, funds to finance and support the authority, including county or city turnback funds as set forth in §§ 27-70-206 and 27-70-207 for the purpose of matching federal transportation funds;
    13. To receive property or funds by gift or donation for the finance and support of the authority;
      1. Upon the petition of persons representing two-thirds (2/3) in value of the owners of real property in the area as shown by the last county assessment, to constitute the authority or a committee of the authority as an improvement district and to create and operate an improvement district composed of a specified area encompassed within the jurisdictions of the participating governing bodies.
        1. The improvement district shall be for the purpose of financing the construction, reconstruction, or repair of the research park and its facilities.
        2. To the extent consistent with this chapter, the creation and operation of an improvement district shall be in accordance with the procedures established by the laws of the State of Arkansas for the creation and operation of municipal improvement districts;
    14. To plan, establish, develop, construct, enlarge, improve, maintain, equip, operate, and regulate a research park and auxiliary services and facilities and to establish minimum building codes and regulations and to protect and police the research park and other facilities of the authority in cooperation with the law enforcement agencies and officers having jurisdiction in the area where the facilities of the authority are located;
    15. To levy and collect a tax or fee to be levied upon and collected from the tenants or occupants of the research park or from the property owners within the improvement district or redevelopment district;
    16. To receive real and personal property from the United States for research park facilities and related purposes by donation, purchase, lease, or otherwise and subject to any conditions the United States may require and to which the authority may agree;
    17. To promote, advertise, and publicize the authority and its facilities and to represent and promote the interests of the authority; and
    18. To do all things necessary or appropriate to carry out the powers and duties expressly granted or imposed under this chapter.
  2. A research park authority may engage in the following activities:
    1. Research;
    2. Development of products or services, including without limitation:
      1. Advanced materials and manufacturing systems;
      2. Advanced electronics or computer products, or both;
      3. Agriculture, aquaculture, and forestry technologies;
      4. Bio-based products;
      5. Biotechnology, bioengineering, and life sciences;
      6. Engineering technology;
      7. Food and environmental sciences;
      8. Information and related technology;
      9. Medical devices;
      10. Nanotechnology;
      11. Pharmaceutical products;
      12. Products for energy conservation;
      13. Products for testing or remediation of environmental hazards;
      14. Software, including creative and artistic content and data communications; and
      15. Transportation logistics;
    3. Production of materials and products ancillary to items listed under subdivisions (b)(1) and (2) of this section; and
    4. Acting as support or resource services and suppliers in connection with items listed under subdivisions (b)(1)-(3) of this section.
  3. Any additional activities undertaken by a research park authority shall be related to the commercialization of research and the furtherance of products and services derived from research and development activities.
  4. The enumeration of powers under this section does not limit or circumscribe the broad objectives and purposes of this chapter and the broad objectives of developing a research park and necessary and desirable related facilities or properties.

History. Acts 2007, No. 1045, § 1.

14-144-205. Eminent domain.

  1. A research park authority shall have the right to acquire any property necessary to carry out the purposes of this chapter by exercising the power of eminent domain.
  2. The research park authority, its agents, and its employees may seek a court order to enter upon real property and make surveys, examinations, photographs, tests, and samplings or to engage in other activities for the purpose of appraising the property or determining whether the real property is suitable for the authority's purpose.

History. Acts 2007, No. 1045, § 1.

14-144-206. Condemnation petition — Notice.

  1. A research park authority may exercise its power of eminent domain by filing an appropriate petition in condemnation in the circuit court of the county in which the property sought to be taken is situated to have the compensation determined, giving the owner of the property to be taken at least ten (10) days' notice in writing of the time and place where the petition will be heard.
    1. If the property sought to be condemned is located in more than one (1) county, the petition may be filed in any circuit court having jurisdiction in any county in which any part of the property may be located.
    2. The proceedings had in the circuit court shall apply to all of the property described in the petition.
      1. If the owner of the property sought to be taken is a nonresident of the state, notice shall be by registered or certified mail, return receipt requested, addressed to the last known address of the owner, and by publication in any newspaper in the county that is authorized by law to publish legal notices.
      2. This notice shall be published for the same length of time as may be required in other civil causes.
    1. If there is no such newspaper published in the county, then publication shall be made in a newspaper designated by the circuit clerk, and one (1) written or printed notice of the petition shall be posted on the door of the county courthouse.
    1. The condemnation petition shall describe the lands and property sought.
    2. When the immediate possession of lands and property is sought to be obtained, the research park authority may file a declaration of taking under this chapter at any time before judgment or together with the condemnation petition.

History. Acts 2007, No. 1045, § 1.

14-144-207. Declaration of taking.

    1. The petitioner may file a declaration of taking at any time before a judgment is signed by the chair of the research park authority board or with the condemnation petition in any proceeding instituted by and in the name of the research park authority that involves the acquisition of real property, an interest in the real property, or the easement.
    2. The declaration shall declare that the authority is taking the real property, an interest in the real property, or the easement for the use of the authority.
  1. The declaration of taking shall contain or have annexed to it the following:
    1. A statement that the authority is taking the real property, an interest in real property, or an easement;
    2. A statement of the purpose for which the authority is taking the real property, an interest in the real property, or the easement;
    3. A description of the real property, an interest in the real property, or the easement that the authority is taking sufficient for the identification of the real property, an interest in the real property, or the easement;
    4. A plat showing the real property, the interest in the real property, or the easement that the authority is taking; and
    5. A statement of the amount of money estimated by the acquiring authority to be just compensation for the taking of the real property, an interest in the real property, or the easement.

History. Acts 2007, No. 1045, § 1.

14-144-208. Condemnation proceedings and judgment.

  1. The circuit court shall impanel a jury of twelve (12) persons, as in other civil cases, to ascertain the amount of compensation that the research park authority shall pay for the real property, an interest in the real property, or an easement that the authority is taking.
  2. The matter shall proceed and be determined as in other civil cases.
  3. In all cases of infants or incompetent persons, when no legal representative or guardian appears in the infant's or incompetent person's behalf at the hearing, the court shall appoint a guardian ad litem who shall represent interests of the infant or incompetent person for all purposes.
  4. Compensation shall be ascertained and awarded in the proceeding and established by judgment in the proceeding.

History. Acts 2007, No. 1045, § 1.

14-144-209. Acquisition of property.

  1. Whenever it is deemed necessary by a research park authority in connection with the exercise of its powers conferred in this chapter to take or acquire any lands, structures, buildings, or other rights, either in fee or as easements, for the purposes set forth in this chapter, the authority may purchase them directly or through its agents from the owners thereof, or failing to agree with the owners, the authority may exercise the power of eminent domain in accordance with the procedures set forth in this chapter, and these purposes are declared to be public uses for which private property may be taken with just compensation.
  2. Should an authority elect to exercise the right of eminent domain, condemnation proceedings shall be maintained by and in the name of the authority, and it may proceed in the manner provided in this chapter and the general laws of the State of Arkansas not in conflict with this chapter that are applicable to the procedure by any county, municipality, accredited institution of higher education, or other authority organized under the laws of the State of Arkansas.

History. Acts 2007, No. 1045, § 1.

Subchapter 3 — Finance

14-144-301. Issuance of revenue bonds — Authorization.

  1. A research park authority may use any available revenues for the accomplishment of the purposes and the implementation of the powers authorized by this chapter, including the proceeds of revenue bonds issued from time to time under this chapter, either alone or together with other available funds and revenues.
  2. The amount of each issue of bonds may be sufficient to pay:
    1. The costs of accomplishing the purposes for which the bonds are being issued;
    2. The cost of issuing the bonds;
    3. The amount necessary for a reserve, if it is determined to be desirable in favorably marketing the bonds;
    4. The amount, if any, necessary to provide for debt service on the bonds until revenues for the payment of the bonds are available; and
    5. Any other costs and expenditures of whatever nature incidental to the accomplishment of the specified purposes.

History. Acts 2007, No. 1045, § 1.

14-144-302. Issuance of revenue bonds — Resolution of research park authority — Nature of bonds.

  1. The issuance of revenue bonds shall be by resolution of the research park authority.
  2. The bonds of each issue may:
    1. Be coupon bonds payable to bearer or may be registrable as to principal only or as to both principal and interest;
    2. Be in such form and denominations as may be appropriate and necessary;
    3. Be made payable at such places within or without the state as may be appropriate and necessary;
    4. Be issued in one (1) or more series;
    5. Have such date or dates as may be appropriate and necessary;
    6. Mature at such time or times as may be appropriate and necessary, not exceeding forty (40) years from their respective dates;
    7. Bear interest at such rate or rates;
    8. Be payable in such medium of payment as may be appropriate and necessary;
    9. Be subject to such terms of redemption as may be appropriate and necessary; and
    10. Contain such terms, covenants, and conditions as the resolution authorizing their issuance may provide, including without limitation those pertaining to:
      1. The custody and application of the proceeds of the bonds;
      2. The collection and disposition of revenues;
      3. The maintenance and investment of various funds and reserves;
      4. The imposition and maintenance of taxes, fees, rates, and charges for the use of the research park and other facilities of the authority;
      5. The nature and extent of the security;
      6. The rights, duties, and obligations of the authority and the trustee for the holders and registered owners of the bonds; and
      7. The rights of the holders and registered owners of the bonds.
      1. There may be successive bond issues for the purpose of financing the same project.
      2. There may also be successive bond issues for financing the cost of reconstructing, replacing, constructing additions to, extending, improving, and equipping projects already in existence, whether or not originally financed by bonds issued under this chapter, with each successive issue to be authorized as provided in this chapter.
    1. The priority between and among issues and successive issues as to security and the pledge of revenues and lien on and security interest in the land, buildings, and facilities involved may be controlled by the resolutions authorizing the issuance of bonds under this chapter.
  3. Subject to this section, the bonds shall have all the qualities of negotiable instruments under the laws of the State of Arkansas.

History. Acts 2007, No. 1045, § 1.

14-144-303. Issuance of revenue bonds — Indenture.

  1. The resolution authorizing the bonds may provide for the execution by the research park authority of an indenture that defines the rights of the holders and registered owners of the bonds and provides for the appointment of a trustee for the holders and registered owners of the bonds.
  2. The indenture may control the priority between successive issues and may contain any other terms, covenants, and conditions that are deemed desirable, including without limitation those pertaining to:
    1. The custody and application of the proceeds of the bonds;
    2. The collection and disposition of revenues;
    3. The maintenance of various funds and reserves;
    4. The imposition and maintenance of taxes, fees, rates, and charges for the use of the research park and other facilities of the authority;
    5. The nature and extent of the security;
    6. The rights, duties, and obligations of the authority and the trustee; and
    7. The rights of the holders and registered owners of the bonds.

History. Acts 2007, No. 1045, § 1.

14-144-304. Issuance of revenue bonds — Price and manner sold.

The bonds may be sold for a price, including sale at a discount, and in a manner the research park authority may determine by resolution.

History. Acts 2007, No. 1045, § 1.

14-144-305. Issuance of revenue bonds — Execution.

    1. The bonds shall be executed by the manual or facsimile signatures of the chair and secretary of the board of the research park authority.
    2. In case any of the officers whose signatures appear on the bonds or coupons cease to be officers before the delivery of the bonds or coupons, their signatures shall nevertheless be valid and sufficient for all purposes.
  1. The coupons attached to the bonds may be executed by the facsimile signature of the chair of the authority.

History. Acts 2007, No. 1045, § 1.

14-144-306. Issuance of revenue bonds — Obligation of research park authority.

  1. The revenue bonds issued under this chapter shall be obligations only of the research park authority and shall not be general obligations of any county or municipality, accredited institution of higher education, or the State of Arkansas.
    1. The revenue bonds shall not constitute an indebtedness of any county or municipality, accredited institution of higher education, or the State of Arkansas within the meaning of any constitutional or statutory limitation.
    2. It shall be plainly stated on the face of each bond that the bond has been issued under the provisions of this chapter and that the bond does not constitute an indebtedness of any county or municipality, accredited institution of higher education, or the State of Arkansas within any constitutional or statutory limitation.
  2. The principal of and interest on the bonds may be secured to the extent set forth in the resolution or indenture securing the bonds by a pledge of and payable from all or any part of revenues derived from the use of facilities of the authority, including without limitation:
    1. Revenues derived from rates and charges imposed and maintained for the use of facilities of the authority;
    2. Revenues derived from taxes or fees levied under this chapter; and
    3. Lease rentals under leases or payments under security agreements or other instruments entered into under this chapter.

History. Acts 2007, No. 1045, § 1.

14-144-307. Issuance of revenue bonds — Refunding bonds.

    1. Revenue bonds may be issued under this chapter to refund any obligations issued under this chapter.
    2. The refunding bonds may be combined with bonds issued into a single issue.
    1. When bonds are issued under this section for refunding purposes, the bonds may either be sold or delivered in exchange for the outstanding obligations.
    2. If the bonds are sold, the proceeds may be either applied to the payment of the obligations refunded or deposited in escrow for the retirement of the bonds.
    1. All refunding bonds issued under this chapter shall in all respects be authorized, issued, and secured in the manner provided for other bonds issued under this chapter and shall have all the attributes of those bonds.
    2. The resolution under which the refunding bonds are issued may provide that any of the refunding bonds shall have the same priority of lien on the revenues pledged for their payment as was enjoyed by the obligations refunded by the bonds.

History. Acts 2007, No. 1045, § 1.

14-144-308. Issuance of revenue bonds — Mortgage lien.

  1. The resolution or indenture securing the bonds may impose a foreclosable mortgage lien upon or security interest in the facilities of the research park authority or any portion of the facilities, and the extent of the mortgage lien or security interest may be controlled by the resolution or indenture, including without limitation provisions pertaining to the release of all or part of the facilities subject to the mortgage lien or security interest in the event of successive issues of bonds.
  2. Subject to the terms, conditions, and restrictions contained in the resolution or indenture, any holder of any of the bonds or of any coupon attached to a bond or a trustee on behalf of the holders either at law or in equity may enforce the mortgage lien or security interest and by proper suit may compel the performance of the duties of the officials of the authority set forth in this chapter and set forth in the resolution or indenture.

History. Acts 2007, No. 1045, § 1.

14-144-309. Issuance of revenue bonds — Default.

    1. In the event of a default in the payment of the principal of or interest on any bonds issued under this chapter, a court having jurisdiction may appoint a receiver to take charge of any facilities upon or in which there is a mortgage lien or security interest securing the bonds in default.
    2. The receiver may operate and maintain the facilities in receivership and charge and collect taxes, fees, rates, and rents sufficient to provide for the payment of any costs of receivership and operating expenses of the facilities in receivership and to apply the revenues derived from the facilities in receivership in conformity with this chapter and the resolution or indenture securing the bonds in default.
    3. When the default has been cured, the receivership shall be ended and the facilities returned to the research park authority.
  1. The relief provided for in this section is in addition and supplemental to the remedies that may be provided for in the resolution or indenture securing the bonds and shall be so granted and administered as to accord full recognition to the priority rights of bondholders as to the pledge of revenues from, mortgage lien on, and security interest in facilities as specified in and fixed by the resolution or indenture securing successive issues of bonds.

History. Acts 2007, No. 1045, § 1.

14-144-310. Agreements to obtain funds.

In connection with obtaining funds for its purposes, a research park authority may enter into an agreement with any person, including the United States Government or any agency or subdivision of the United States Government, containing such provisions, covenants, terms, and conditions as the authority deems advisable.

History. Acts 2007, No. 1045, § 1.

14-144-311. Exemption from taxation.

  1. The property of each research park authority is exempt from all local and municipal taxes.
  2. Bonds, notes, debentures, and other evidences of indebtedness of the authority are declared to be issued for a public purpose and to be public instrumentalities and, together with interest thereon, are exempt from all state, county, and municipal taxes, including without limitation income tax, inheritance tax, and estate taxes.
  3. The establishment, development, and growth of research parks in the State of Arkansas serves a public purpose and use through:
    1. The creation of high-paying jobs;
    2. The ability to retain some of our most highly educated Arkansans;
    3. The growth of Arkansas-based businesses whose focus on the research and development of products and services will serve to diversify Arkansas's economy; and
    4. A strategic alliance between business and higher education that has the potential to substantially improve Arkansas's economy.

History. Acts 2007, No. 1045, § 1.

14-144-312. Use of surplus funds.

  1. If a research park authority realizes a surplus, whether from operating the research park facilities and other facilities or leasing it or them for operation, over and above the amount required for the maintenance, improvement, and operation of the research park facility and other facilities and for meeting all required payments on its obligations, the authority shall set aside the reserve for future operations, improvements, and contingencies as the authority deems proper and shall then apply the residue of the surplus, if any, to the payment of any recognized and established obligations not then due.
  2. After all the recognized and established obligations have been paid off and discharged in full, the authority shall set aside at the end of each fiscal year the reserve for future operations, improvements, and contingencies as prescribed in subsection (a) of this section and then pay the residue of the surplus, if any, to the sponsoring county, municipality, accredited institution of higher education and, if applicable, state agency in direct proportion to each sponsor's financial contributions to the authority, if the distribution of the residue of the surplus does not violate United States law or the terms of any deed, grant agreement, or other agreement with the United States.

History. Acts 2007, No. 1045, § 1.

14-144-313. Public and private contributions.

  1. Contributions may be made to a research park authority from time to time by any county, municipality, or accredited institution of higher education by the State of Arkansas or any agency of the state or by any person.
    1. In order to afford maximum opportunities for contributions, the agreement provided for under § 14-144-201 may be treated as a cooperative agreement under the provisions of the Interlocal Cooperation Act, § 25-20-101 et seq., and at the election of the sponsors of the authority may contain language enabling the agreement to be treated as a formal compact under § 14-165-201 et seq.
    2. If the conditions set forth in subdivision (b)(1) of this section are met, the authority shall hold title to property in its powers and capacity as a public corporation rather than as a commission-trustee as provided in § 14-165-201 et seq. or may be treated as a less formal arrangement for the cooperative use of industrial development bond funds, all to the end that the counties and municipalities may contribute to the authority funds derived from general obligation bonds under the Arkansas Constitution, from revenue bonds under the Municipalities and Counties Industrial Development Revenue Bond Law, § 14-164-201 et seq., and from other available sources, and may contribute funds derived from a combination of these sources.

History. Acts 2007, No. 1045, § 1.

14-144-314. Accounts and reports.

    1. All funds received by a research park authority shall be deposited in such banks as the research park authority may direct and shall be withdrawn from those banks in a manner the authority may direct.
      1. Each authority shall keep strict account of all of its receipts and expenditures and shall each quarter make a report to those participating entities that have made contributions.
        1. The report shall contain an itemized account of the authority's receipts and disbursements during the preceding quarter.
        2. The report shall be made within sixty (60) days after the end of the quarter.
      1. Within sixty (60) days after the end of each fiscal year, each research park authority shall cause an annual audit to be made by an independent certified public accountant and shall file a copy of the resulting audit report with each of the governing bodies participating in the authority.
      2. The audit shall contain an itemized statement of the authority's receipts and disbursements for the preceding year.
    1. The books, records, and accounts of each authority shall be subject to audit and examination by any proper public official or body in the manner provided by law.

History. Acts 2007, No. 1045, § 1.

14-144-315. County, municipal, and state participation.

A county, municipality, accredited institution of higher education, and state agency that is a sponsor of a research park authority may:

  1. Appoint members of a research park authority;
  2. Contribute to the cost of acquiring, constructing, equipping, maintaining, and operating the research park facilities and appurtenant facilities; and
  3. Transfer and convey to the authority property of any kind acquired by the county, municipality, accredited institution of higher education, and state agency or the State of Arkansas for research and economic development.

History. Acts 2007, No. 1045, § 1.

14-144-316. Lease of facilities.

  1. Each research park authority may lease its research park facilities and all or any part of its appurtenances and facilities to any available lessee at a rental and upon such terms and conditions as the authority deems proper.
  2. Leases shall be for some purpose associated with research or economic development activities that serve to build the local, regional, and state economies.

History. Acts 2007, No. 1045, § 1.

14-144-317. Sale of assets.

If the board of a research park authority so determines, the authority may sell all or any part of its properties and assets and distribute the proceeds among the sponsoring counties, municipalities, accredited institutions of higher education, and state agencies in the proportion each sponsor contributed to the authority's funds or otherwise in the manner set forth in the agreement or resolution establishing the authority if no sale of properties or assets and no distribution of proceeds of a sale are done in a manner that violates United States law or the terms of any deed, grant agreement, or other agreement with the United States.

History. Acts 2007, No. 1045, § 1.

14-144-318. Authorized investors.

Any county or municipality or any board, commission, or other authority established by ordinance of any county or municipality or the boards of trustees, respectively, of the firemen's relief and pension fund and the policemen's pension and relief fund of any such municipality, or the board of trustees of any retirement system created by the General Assembly may invest any of its funds not immediately needed for its purposes in bonds issued under this chapter, and bonds issued under this chapter shall be eligible to secure the deposit of public funds.

History. Acts 2007, No. 1045, § 1.

Chapters 145-151 [RESERVED.]

[Reserved]

Subtitle 9. Public Facilities Improvement Districts

Chapters 152-161 [RESERVED.]

[Reserved]

Subtitle 10. Economic Development And Tourism Generally

Chapter 162 General Provisions

[Reserved]

Chapter 163 Industrial Commissions

Cross References. Authority of cities and towns to aid new industries, § 14-54-107.

Local Government Bond Act of 1985, § 14-164-301 et seq.

Tax to aid industries, Ark. Const. Amend. 18.

Subchapter 1 — General Provisions

[Reserved]

Subchapter 2 — Cities of the First Class in Counties of 105,000 or More

Effective Dates. Acts 1970 (Ex. Sess.), No. 60, § 5: Mar. 13, 1970. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 1975, No. 225, § 26: became law without Governor's signature, Feb. 19, 1975. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 1981, No. 425, § 54: Mar. 11, 1981. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 2009, No. 1480, § 117: Apr. 10, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act makes various revisions to Arkansas election laws that are designed to improve the administration of elections and special elections and that these revisions should be implemented as soon as possible so that the citizens of this state may benefit from improved election procedures. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

14-163-201. Title.

This subchapter shall be referred to and may be cited as the “Amendment No. 18 Implementing Act of 1963.”

History. Acts 1963, No. 206, § 1; A.S.A. 1947, § 19-3101.

14-163-202. Legislative intent.

  1. This subchapter is intended to supplement all constitutional provisions and other legislation designed to accomplish the securing and developing of factories, industries, and river transportation.
  2. When applicable, in accordance with the provisions of this subchapter, it may be utilized as an alternative notwithstanding any constitutional provision or any other legislation authorizing the issuance of bonds for the same or similar purposes.

History. Acts 1963, No. 206, § 10; A.S.A. 1947, § 19-3108.

14-163-203. Definitions.

As used in this subchapter, unless the context otherwise requires:

  1. “City” means any city of the first class located in a county having not less than one hundred five thousand (105,000) population;
  2. “Purposes and powers” means those purposes and powers specified in this subchapter, including particularly those purposes and powers enumerated in § 14-163-206.

History. Acts 1963, No. 206, §§ 2, 4; A.S.A. 1947, §§ 19-3102, 19-3104.

14-163-204. Construction.

This subchapter shall be liberally construed to accomplish its purposes.

History. Acts 1963, No. 206, § 10; A.S.A. 1947, § 19-3108.

14-163-205. Appointment of commissioners.

    1. The respective commissioners authorized by Arkansas Constitution, Amendment 18, shall be appointed by the appointing boards specified in it.
    2. The term of each commissioner shall be for six (6) years from the date of his appointment, and he shall serve for such a term and thereafter until his successor shall be appointed and qualified.
  1. Before entering upon his duties, each commissioner shall take and subscribe and file in the office of the circuit clerk of the county an oath to:
    1. Support the Constitution of the United States and the Constitution of the State of Arkansas; and
    2. Faithfully perform the duties of the office upon which he is about to enter.
    1. At the expiration of the term of each commissioner, the applicable appointing board shall appoint a successor or may reappoint the same member to another term.
    2. Any vacancy arising for any reason other than the expiration of the term of a particular commissioner shall be filled by the applicable appointing board, and the person appointed to fill the vacancy shall serve for the unexpired portion of the term of the resigning or vacating member.
    1. The commissioners shall not be charged with the responsibility to execute or perform the purposes and powers specified in this subchapter.
    2. The duties and responsibilities of the commissioners shall be those specified in Arkansas Constitution, Amendment 18.

History. Acts 1963, No. 206, §§ 4, 5; A.S.A. 1947, §§ 19-3104, 19-3105.

A.C.R.C. Notes. As enacted, Acts 1963, No. 206, § 4, provided that the commissioners would have the powers and duties set forth in § 5 of that act. However, the Supreme Court of Arkansas in McDonald v. Bowen, 250 Ark. 1049, 468 S.W.2d 765 (1971) held that Acts 1963, No. 206, § 5, was unconstitutional in that it stripped the commissioners of the powers set forth in Ark. Const. Amend. 18. Acts 1963, No. 206, §§ 4 and 5 have, therefore, been rewritten in conformity with the holding of McDonald v. Bowen.

Case Notes

Cited: City of Little Rock v. Raines, 241 Ark. 1071, 411 S.W.2d 486 (1967).

14-163-206. Use of tax and bond proceeds — Purposes and powers generally.

  1. The purposes for which the proceeds of the special tax or the proceeds of bonds issued under the provisions of this subchapter may be expended and the authority and powers that may be exercised in connection with the accomplishment of these purposes are the following:
    1. The establishment, development, and improvement of harbors, ports, river-rail and barge terminals, and any facilities or improvements necessary or desirable in connection with the utilization and operation of them within and adjacent to any city;
    2. The acquisition by gift, purchase, negotiation, or condemnation under the power of eminent domain, the construction, reconstruction, extension, equipment, owning, leasing, with or without options to purchase and with or without options to extend or renew, and the selling, the contracting concerning, or otherwise dealing in, with, or disposing of, any lands, buildings, machinery, or other personal property and facilities of any and every nature whatever necessary or desirable in connection with the establishing, developing, and improving of harbors, ports, and river-rail and barge terminals, and the improving of such portions of waterways as may be necessary or desirable in connection with them, which waterways are not within the exclusive jurisdiction of the federal government;
    3. The fostering and stimulation of the shipment of freight and commerce through ports, harbors, and river-rail and barge terminals, whether originating within or without the State of Arkansas, including the investigation, handling, and dealing with matters pertaining to all transportation rates and rate structures affecting them;
    4. The acquisition by gift, purchase, negotiation, or condemnation under the power of eminent domain, the construction, reconstruction, extension, equipment, owning, leasing, with or without options to purchase and with or without options to extend or renew, and the selling, the contracting concerning, or otherwise dealing in, with, or disposing of, any lands, buildings, machinery, or other personal property and facilities of any and every nature whatever necessary or desirable in connection with the securing and developing of factories, industries, river transportation, industrial sites, and facilities for them within and adjacent to any city;
    5. The acquisition of such rights-of-way, sites and lands, or any interest in them, as may be necessary or desirable, and the construction, reconstruction, extension, and equipment on them of such improvements of every nature whatever as may be necessary or desirable in connection with the securing and developing of factories, industries, river transportation, industrial sites, and facilities for them within and adjacent to any city, including by example and without limiting the generality of the foregoing:
      1. Storm drainage facilities;
      2. Streets, roads, and highways, including, without limitation, existing streets, roads, and highways, which will serve, in whole or in part, the transportation needs of any such factories, industries, river transportation, and other facilities;
      3. Fire stations and fire fighting facilities, water facilities, sewer facilities, and any other public facilities of any nature whatever to serve, in whole or in part, the needs of any such factories, industries, river transportation, and other facilities;
      4. The making of cash or noncash grants-in-aid or the making available of any funds from any tax levied under this subchapter or from the proceeds of any bond issued under this subchapter to the State of Arkansas, or any department, agency, commission, committee, or authority of it, any political subdivision of the state, or any department, agency, commission, committee, or authority of any political subdivision of the state, the federal government, or any department or agency of the federal government. This includes, without limitation, any housing authority or any city or metropolitan or other port authority, or any similar agencies, so long as the cash or noncash grant-in-aid or such funds are necessary or desirable for the accomplishment of any of the purposes authorized by this subchapter;
    6. The power to appoint, employ, and dismiss, at pleasure, agents and employees and to fix and pay their compensation;
    7. The payment of such expenses and costs, and the making of such other expenditures of every nature whatever, as may be necessary or desirable in the accomplishment of the authorized purposes and powers;
    8. The accomplishment of any other public purpose, except those excluded by Arkansas Constitution, Amendment 18, constituting an authorized action or activity of a city of the first class under constitutional and statutory provisions of the State of Arkansas, including, without limitation, the making of secured loans to persons, corporations, or associations for the operation of factories and industries upon such terms and conditions as shall be specified and agreed upon from time to time by the governing body of any city;
    9. The power to do any and all actions and things of whatever nature necessary or incidental to the accomplishment of the purposes specified by Arkansas Constitution, Amendment 18 and by this subchapter, including, without limitation, those that may exist by virtue of any other constitutional or statutory provision, whether or not specifically enumerated.
  2. Nothing in this subchapter shall be construed as including within the purposes and powers specified by this subchapter the power or authority to use the power of eminent domain or to issue or sell bonds or to use the proceeds of these bonds or of any special tax levied under the provisions of this subchapter to purchase, condemn, or otherwise acquire any plant, property, transmission, or distribution facility owned or operated by any regulated public utility as defined in § 23-1-101.

History. Acts 1963, No. 206, § 3; A.S.A. 1947, § 19-3103.

14-163-207. Levy of tax.

  1. By ordinance of its governing body, any city may levy, from time to time a special tax, not exceeding in the aggregate five (5) mills on the dollar of the assessed valuation of all taxable real and personal property in the city, for the purposes specified in § 14-163-206 when petitioned to do so by at least ten percent (10%) of the owners of real property in the city and after approval of a majority of the electors of the city voting on the question submitted at a special election called for the purpose.
    1. Each petition for a special tax shall be directed to the governing body of the city and filed with the city clerk.
    2. A petition shall contain at least the following information:
      1. The purposes for which the tax proceeds are to be expended, named by general designation as set forth in this subchapter, if these expenditures are to be made for less than all of the authorized purposes and, if not, a statement that the proceeds are to be expended for any or all authorized purposes as the governing body of the city in its discretion shall determine from time to time;
      2. The amount of the tax in terms of mills which may be for all or any portion of the total authorized five (5) mills not theretofore voted;
      3. The number of years for which the tax is to be collected; and
      4. If there is to be a bond issue, the total amount of bonds to be voted and the length of time in years over which the bonds are to mature.
    1. Upon the filing of the petition, the city clerk shall publish a notice one (1) time in a newspaper of general circulation in the city which need state only that a petition has been filed under the provisions of this subchapter requesting the levying of a special tax under Arkansas Constitution, Amendment 18, and stating the time, date, and place that a hearing will be held to determine the sufficiency of the petition.
    2. The notice must be published at least ten (10) days prior to the date of the hearing.
    1. At the time, date, and place specified in the notice, the governing body of the city shall hold the hearing and shall determine and make a finding as to whether or not the petition is signed by at least ten percent (10%) of the owners of real property in the city.
      1. If the governing body finds that the petition is signed by the requisite owners of real property, it shall adopt an ordinance setting forth its finding and calling a special election to be held in the city in accordance with § 7-11-201 et seq.
      2. The ordinance shall be published one (1) time.
      3. The finding that the petition is sufficient shall be conclusive unless attacked in the courts within thirty (30) days after the date of publication of the ordinance.
        1. The ordinance shall contain at least the information set forth in this section as required information to be included in the petition.
        2. In addition, the ordinance shall specify the form of the ballot to be submitted to the electors.
    1. The ballot shall submit the question of voting for or against an industrial tax in the amount specified by the petition.
    2. In addition, if the bonds are to be voted upon, the statement of the measure on the ballot must, by general language, advise the electors of:
      1. The amount of the bond issue;
      2. The length of time in years over which the bonds are to mature; and
      3. The fact that the industrial tax, if voted in, will be a continuing annual tax until the principal of and interest on the bonds are paid.
    1. The election shall be held and conducted, the vote canvassed, and the results declared in the manner provided for municipal elections, except as may be otherwise expressly provided.
    2. Notice of the election shall be given by the mayor of the city by advertisement in a newspaper of general circulation within the city one (1) time a week for four (4) consecutive weeks with the last publication to be not less than ten (10) days prior to the date of the election.
    3. Only qualified electors of the city shall have the right to vote.
    4. The results of the election shall be proclaimed by the mayor by proclamation published one (1) time in a newspaper of general circulation in the city and shall be conclusive unless attacked in the courts within thirty (30) days after the date of publication of the proclamation.
  2. The tax shall be levied by the governing body of the city and extended on the tax books and collected as general city taxes are extended and collected.

History. Acts 1963, No. 206, §§ 2, 6; A.S.A. 1947, §§ 19-3102, 19-3106; Acts 2005, No. 2145, § 46; 2007, No. 1049, § 67; 2009, No. 1480, § 86.

Amendments. The 2005 amendment added (d)(2)(A)(iii).

The 2009 amendment substituted “§ 7-11-201 et seq.” for “§ 7-5-103(b)” in (d)(2)(A).

Case Notes

Continuing Levy.

The legislature could authorize the electorate to approve a continuing levy to support a long-term bond issue. McDonald v. Bowen, 250 Ark. 1049, 468 S.W.2d 765 (1971).

14-163-208. Bonds — Issuance generally.

  1. If approved by the electors at a special election, the governing body of the city is authorized and empowered to issue bonds and to use the proceeds thereof for accomplishing the purposes and powers, either alone or together with other available funds and revenues, including the proceeds of any special tax theretofore levied and being collected under the provisions of Arkansas Constitution, Amendment 18 and the provisions of this subchapter.
  2. Each issuance of bonds shall be authorized by ordinance of the governing body of the city.

History. Acts 1963, No. 206, § 7; 1970 (Ex. Sess.), No. 60, §§ 1, 2; 1975, No. 225, § 4; 1981, No. 425, § 4; A.S.A. 1947, § 19-3107.

Case Notes

Elections.

A suit seeking to enjoin a city from holding an election concerning a bond issue could not be dismissed for lack of a justiciable issue, for, if the election was in fact an illegal election, the expenses of holding the election would constitute an illegal action for which the constitution provides a remedy by injunction. McDonald v. Bowen, 250 Ark. 1049, 468 S.W.2d 765 (1971).

Long-term Issue.

The legislature could authorize the electorate to approve a continuing levy to support a long-term bond issue. McDonald v. Bowen, 250 Ark. 1049, 468 S.W.2d 765 (1971).

Purposes.

Where the purposes set out in a petition for a special election for a tax levy were for the construction of a convention center, improved river transportation facilities, and to provide capital for a nonprofit small business investment company to aid in the financing of industries when private financing was not available, the purposes fell within the scope of Ark. Const. Amend. 18. McDonald v. Bowen, 250 Ark. 1049, 468 S.W.2d 765 (1971).

14-163-209. Bonds — Amount — Pledge and application of revenues.

  1. Bonds may be issued from time to time, and each issue shall be in the principal amount sufficient, together with other funds then available, for the accomplishment of the particular purpose for which the bonds are voted, including, without limitation:
    1. All costs and expenditures incurred in connection with the accomplishment of the particular purpose or purposes;
    2. All costs and expenditures incurred in connection with the issuance of the bonds;
    3. The amount necessary for a reserve, if deemed desirable by the governing body;
    4. The amount necessary to provide for debt service on the bonds until tax proceeds or other revenues are received in sufficient amounts for their payment as they become due and payable; and
    5. Any other costs necessarily incidental thereto.
  2. In this regard, if the particular purpose or purposes to be accomplished, in whole or in part, out of the proceeds of the bonds will be revenue producing, any available revenues may be pledged and applied to the payment of the principal of and interest on the bonds, and provision may be made for the suspension of the collection of all or part of the special continuing annual tax voted for the payment of the principal of and interest on the bonds, upon such terms and conditions as shall be specified by the governing body in the ordinance authorizing and directing the issuance of the bonds.

History. Acts 1963, No. 206, § 7; 1970 (Ex. Sess.), No. 60, §§ 1, 2; 1975, No. 225, § 4; 1981, No. 425, § 4; A.S.A. 1947, § 19-3107.

14-163-210. Bonds — Terms and conditions.

  1. The bonds shall be coupon bonds payable to bearer, but may be made subject to registration as to principal only.
  2. As the authorizing ordinance may provide, the bonds may:
    1. Be in one (1) or more series;
    2. Bear such date or dates;
    3. Mature at such time or times, not exceeding thirty-five (35) years from their respective dates;
    4. Bear interest at such rate or rates;
    5. Be in such form;
    6. Be executed in such manner;
    7. Be payable in such medium of payment, at such place or places;
    8. Be subject to such terms of redemption; and
    9. Contain such terms, covenants, and conditions, including without limitation, those pertaining to:
      1. The custody and application of the proceeds of the bonds;
      2. The collection and disposition of revenues and tax collections;
      3. The maintenance and investment of various funds and reserves;
      4. The nature and extent of the security;
      5. The rights, duties, and obligations of the city and of the trustee, if a trustee is designated, for the holders and registered owners of the bonds; and
      6. The rights of the holders or registered owners of the bonds.
  3. Bonds issued under this subchapter shall have all the qualities of negotiable instruments under the negotiable instruments laws of the State of Arkansas.

History. Acts 1963, No. 206, § 7; 1970 (Ex. Sess.), No. 60, §§ 1, 2; 1975, No. 225, § 4; 1981, No. 425, § 4; A.S.A. 1947, § 19-3107.

14-163-211. Bonds — Trust indenture.

Each ordinance authorizing the issuance of bonds may provide for the execution of an indenture defining the rights of the holders and registered owners of the bonds and providing for the appointment of a trustee for the holders and registered owners of the bonds and containing such other terms, covenants, and conditions as authorized in this section to be included in the ordinance.

History. Acts 1963, No. 206, § 7; 1970 (Ex. Sess.), No. 60, §§ 1, 2; 1975, No. 225, § 4; 1981, No. 425, § 4; A.S.A. 1947, § 19-3107.

14-163-212. Bonds — Sale.

Bonds issued under this subchapter shall be sold at public sale after twenty-days' advertisement in a newspaper having a bona fide circulation in the city. They may be sold for such price, including, without limitation, sale at a discount, as the governing body of the city shall determine.

History. Acts 1963, No. 206, § 7; 1970 (Ex. Sess.), No. 60, §§ 1, 2; 1975, No. 225, § 4; 1981, No. 425, § 4; A.S.A. 1947, § 19-3107.

14-163-213. Bonds, coupons — Execution — Seal.

    1. Bonds issued under this subchapter may be executed by the manual or fascimile signature of the mayor of the city but must contain the manual signature of the city clerk of the city.
    2. Coupons attached to the bonds shall be executed by the facsimile signature of the mayor of the city.
  1. In case any of the officers whose signatures appear on the bonds or coupons shall cease to be such officers before delivery of the bonds or coupons, their signatures shall nevertheless be valid and sufficient for all purposes.
  2. The bonds shall be sealed with the seal of the city.

History. Acts 1963, No. 206, § 7; 1970 (Ex. Sess.), No. 60, §§ 1, 2; 1975, No. 225, § 4; 1981, No. 425, § 4; A.S.A. 1947, § 19-3107.

14-163-214. Bonds — Conversion.

Bonds issued under this subchapter may be sold with the privilege of conversion to an issue bearing a lower rate or rates of interest, upon such terms and subject to such conditions as the governing body of the city shall determine. However, under no circumstances shall the city receive less or pay more than it would receive and pay if the bonds were not converted, and any conversion shall be subject to the approval of the governing body of the city.

History. Acts 1963, No. 206, § 7; 1970 (Ex. Sess.), No. 60, §§ 1, 2; 1975, No. 225, § 4; 1981, No. 425, § 4; A.S.A. 1947, § 19-3107.

14-163-215. Bonds — Tax exemption.

Bonds issued under the provisions of this subchapter shall be exempt from all state, county, and municipal taxes, and this exemption shall include income, inheritance, and estate taxes.

History. Acts 1963, No. 206, § 7; 1970 (Ex. Sess.), No. 60, §§ 1, 2; 1975, No. 225, § 4; 1981, No. 425, § 4; A.S.A. 1947, § 19-3107.

A.C.R.C. Notes. Language excluding property taxes from the exemption provided by this section was deleted pursuant to Ark. Const. Amend. 57, § 1 and § 26-3-302. The Arkansas Const. Amend. 57, § 1 provides that the General Assembly may classify intangible personal property for assessment at lower percentages of value than other property and may exempt one or more classes of intangible personal property from taxation, or may provide for the taxation of intangible personal property on a basis other than ad valorem. Section 26-3-302 exempts all intangible personal property in this state from all ad valorem tax levies of counties, cities, and school districts in the state as of January 1, 1976.

14-163-216. Refunding bonds.

  1. Bonds may be issued under this subchapter for the purpose of refunding any bonds theretofore issued under this subchapter.
  2. Refunding bonds may be issued alone or combined with bonds issued under this subchapter into a single issue for the purpose of refunding outstanding bonds and for the purpose of accomplishing any authorized purpose or power.
    1. When refunding bonds are issued, the bonds may be either sold or delivered in exchange for the outstanding bonds being refunded.
    2. If sold, the proceeds may either be applied to the payment of the bonds being refunded, or the proceeds may be deposited in escrow for the retirement of them.
  3. All refunding bonds shall be, in all respects, authorized, issued, and secured in the manner provided for other bonds issued under this subchapter and shall have all the attributes of these bonds.
  4. If refunding bonds alone are being issued which have the same maturity years as the bonds being refunded and to which the same special continuing annual tax theretofore voted for the bonds being refunded is to be pledged, no petition need be filed and no election need be held prior to the governing body authorizing the issuance of the refunding bonds by ordinance as prescribed in this subchapter.

History. Acts 1963, No. 206, § 7; 1970 (Ex. Sess.), No. 60, §§ 1, 2; 1975, No. 225, § 4; 1981, No. 425, § 4; A.S.A. 1947, § 19-3107.

14-163-217. Investment in bonds authorized.

Bonds issued under this subchapter shall be eligible to secure deposits of all public funds and shall be legal for the investment of bank, insurance company, and retirement funds.

History. Acts 1963, No. 206, § 7; 1970 (Ex. Sess.), No. 60, §§ 1, 2; 1975, No. 225, § 4; 1981, No. 425, § 4; A.S.A. 1947, § 19-3107.

Chapter 164 Industrial Development Bonds

Research References

ALR.

Adverse impact upon existing business as factor affecting validity and substantive requisites of issuance, by state or local governmental agencies, of economic development bonds in support of private business enterprise. 39 A.L.R.4th 1096.

Ark. L. Rev.

Comment, Municipal Bonds and Amendment 62: Clearing Up a Serbonian Bog, 39 Ark. L. Rev. 499.

Subchapter 1 — General Provisions

[Reserved]

Subchapter 2 — Municipalities and Counties Industrial Development Revenue Bond Law

A.C.R.C. Notes. Acts 1991, No. 629, § 8, which amended § 8-5-612, provided:

“For purposes of any other law, including, without limitation, § 14-164-201 et seq., the term ‘facilities’ or a similar term shall include a wastewater project or solid waste disposal project as those terms are defined in this subchapter, so that any law adopted authorizing the issuance of industrial development bonds, industrial development revenue bonds, or similar evidences of indebtedness shall be available for utilization in connection with a privatization project.”

Publisher's Notes. Acts 1985, No. 945, confirmed and continued the authority of municipalities and counties to issue industrial development revenue bonds pursuant to Acts 1960 (Ex. Sess.), No. 9.

Preambles. Acts 1960 (Ex. Sess.), No. 9 contained a preamble which read:

“Whereas, the people of the State of Arkansas have expressed themselves in favor of a more effective program of industrial development by their adoption of Amendment No. 49 [repealed] to the Arkansas Constitution; and

“Whereas, it is desirable to implement and supplement the provisions of said Amendment No. 49 [repealed] to the end of carrying out the broadest and most aggressive possible industrial development program; now, therefore….”

Effective Dates. Acts 1960 (Ex. Sess.), No. 9, § 16: approved Jan. 21, 1960. Emergency clause provided: “It has been found and it is hereby declared by the General Assembly that the State of Arkansas does not have an adequate program for the industrial development of the State and the financing thereof; that on account of such inadequate program the State of Arkansas has been unable to provide for its inhabitants maximum opportunities in industry; that on account thereof the State of Arkansas and municipalities and counties therein have lost certain industries that might otherwise have been obtained; that unless an adequate program for the industrial development of the State is immediately undertaken the State of Arkansas will suffer immediate and irreparable further loss in opportunities for industrial expansion and job opportunities for its inhabitants; and that only by giving immediate effect to this act can such conditions be alleviated. An emergency, therefore, is hereby declared to exist, and this act being necessary for the preservation of the public peace, health and safety shall take effect and be in full force from and after its passage.”

Acts 1961, No. 48, § 7: approved Feb. 6, 1961. Emergency clause provided: “It is hereby found and declared by the General Assembly that the providing for the citizens and inhabitants of the State of Arkansas of maximum opportunities in industry is essential to the public health, safety and welfare; that the provisions of this act are immediately needed for the accomplishment of an adequate program for industrial development of the State of Arkansas in order that the State of Arkansas not suffer irreparable further loss in opportunities for industrial expansion and job opportunities for its citizens and inhabitants; and that only by giving immediate effect to this act can unemployment existing because of inadequate industrial expansion and inadequate job opportunities be successfully alleviated, and new employment, increased payrolls and other benefits flowing from industrial expansion be accomplished. It is, therefore, declared that an emergency exists and this act being necessary for the immediate preservation of the public peace, health and safety shall take effect and be in force from and after its passage.”

Acts 1963, No. 231, § 4: approved Mar. 13, 1963. Emergency clause provided: “It is hereby found and declared by the General Assembly that the providing for the citizens and inhabitants of the State of Arkansas of maximum opportunities in industrial development is essential to the public health, safety and welfare; that the provisions of this act are immediately needed for the accomplishment of an adequate program for industrial developments in order that the State of Arkansas and its citizens not suffer irreparable further loss in opportunities for industrial expansion, additional employment and additional payrolls; and that only by giving immediate effect to this act can these public purposes be realized to the fullest possible extent. It is, therefore, declared that an emergency exists and this act being necessary for the immediate preservation of the public peace, health and safety shall take effect and be in force from and after its passage.”

Acts 1965, No. 383, § 5: approved Mar. 19, 1965. Emergency clause provided: “It is hereby found and declared by the General Assembly that the providing for the citizens and inhabitants of the State of Arkansas of maximum opportunities in industrial development is essential to the public health, safety and welfare; that the provisions of this act are immediately needed for the accomplishment of an adequate program for industrial development in order that the State of Arkansas and its citizens not suffer irreparable further loss and opportunities for industrial expansion, additional employment and additional payrolls; and that only by giving immediate effect to this act can these public purposes be realized to the fullest possible extent. It is, therefore, declared that an emergency exists and this act being immediately necessary for the preservation of the public peace, health and safety shall take effect and be in force from and after its passage.”

Acts 1968 (1st Ex. Sess.), No. 16, § 2: approved Feb. 15, 1968. Emergency clause provided: “It is hereby found and declared that industrial development revenue bond financing under Act No. 9 is an essential part of the present industrial development program of the State of Arkansas and its usefulness is in jeopardy because of current high interest rates. This situation can be alleviated by increasing the maximum permissible interest rate from 6% per annum to 7% per annum, and since industrial development is essential to the public welfare, it is necessary that the increased maximum go into effect immediately. Therefore, an emergency is declared to exist, and this act being necessary for the immediate preservation of the public peace, health and safety shall take effect and be in force from and after its passage.”

Acts 1968 (1st Ex. Sess.), No. 52, § 4: Feb. 27, 1968. Emergency clause provided: “The General Assembly finding that great care is immediately necessary in approving industrial revenue bonds issued in the industrial development of the State and that only by this act can more adequate control be made immediately available, an emergency therefore, is hereby declared to exist and this act being necessary for the preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1969, No. 121, § 2: approved Feb. 25, 1969. Emergency clause provided: “It is hereby found and declared that industrial development revenue bond financing under Act No. 9 is an essential part of the present industrial development program of the State of Arkansas and its usefulness is in jeopardy because of current high interest rates. This situation can be alleviated by increasing the maximum permissible interest rate from 7% per annum to 8% per annum, and since industrial development is essential to the public welfare, it is necessary that the increased maximum go into effect immediately. Therefore, an emergency is declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and safety shall take effect and be in force from and after its passage.”

Acts 1970 (Ex. Sess.), No. 36, § 4: Mar. 13, 1970. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 1971, No. 208, § 5: Mar. 2, 1971. Emergency clause provided: “It has been found and it is hereby declared by the General Assembly of the State of Arkansas that the securing and developing of industry on the best terms obtainable and upon terms and under conditions competitive with those made available by other states is essential to the continued economic growth and development of this State, with its resulting economic and other benefits to this State and her people, and the amendment made by this Act are necessary for the accomplishment of these purposes. Therefore, an emergency is declared to exist and this Act being necessary for the preservation of the public peace, health and safety shall be in effect upon its passage and approval.”

Acts 1975, No. 221, § 5: became law without Governor's signature, Feb. 19, 1975. Emergency clause provided: “In order to market industrial development revenue bonds on the most favorable basis a greater degree of flexibility must be provided with reference to the security for such bonds. This Act is immediately necessary for the providing of that flexibility and for the maximum realization of the public benefits resulting from such change. Therefore, an emergency is declared to exist and this Act being necessary for the preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1979, No. 773, § 3: Apr. 6, 1979. Emergency clause provided: “It is hereby found and declared that there is great need for clarifying the term ‘industry’ in Act 9 so that the people of the State of Arkansas can benefit from full industrial expansion and the accompanying job opportunities, new employment, increased payrolls and other benefits flowing from industrial expansion. Therefore, an emergency is hereby declared to exist, and this Act, being immediately necessary for the protection of the public peace, health and safety, shall take effect immediately upon its passage and approval.”

Acts 1981, No. 4, § 8: Jan. 28, 1981. Emergency clause provided: “It has been found and it is hereby declared that certain provisions of Act No. 9 of the First Extraordinary Session of the Sixty-Second General Assembly of the State of Arkansas need to be clarified and modified in order to permit the effective accomplishment of the purposes of Act No. 9 and the provisions of this Act are necessary therefor. With regard to interest rates, the limits presently contained in Act No. 9 are unnecessary because of the limits contained in other laws and serve to defeat the purpose of Act No. 9. Unless the clarification and modifications to be effected by this Act are made, some useful and needed projects may not be undertaken, with the resulting failure to realize the intended and needed economic benefits. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in force upon its passage and approval.”

Acts 1981, No. 503, § 6: Mar. 16, 1981. Emergency clause provided: “It has been found and it is hereby declared that Arkansas law concerning procedures for authorizing the issuance of revenue bonds for the securing and developing of industry must be clarified immediately in order to permit the continued issuance of such bonds in furtherance of the State's industrial development program. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in force upon its passage and approval.”

Acts 1987, No. 1020, § 4: Apr. 14, 1987. Emergency clause provided: “It is hereby found and determined by the General Assembly that because of the case Ricarte v. State, CR 86-31, a question has arisen over the validity of Act 1239 of the Extended Session of 1976; that this Act is a reenactment of the former law; and that the immediate passage of this Act is necessary to clarify the state of the law on this issue. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1999, No. 307, § 7: Feb. 25, 1999. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly that there is an immediate need for the issuance of industrial revenue bonds by municipalities and counties for the financing of tourism attractions and facilities, to facilitate the issuance of industrial revenue bonds in the most expeditious manner possible, and to enhance the security of such bonds through the pledging of surplus utility revenues and the use of surplus funds in appropriate circumstances, all for the purpose of securing and developing industry. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2005, No. 1922, § 6: Apr. 11, 2005. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that there is an immediate need to secure and develop industry through the issuance of industrial development revenue bonds by cities and counties to finance significant industrial projects, to enhance the security of the bonds through the pledging of additional revenue sources, and to confirm and ratify the practice of loaning the proceeds of industrial development revenue bonds to secure and develop industry. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2007, No. 644, § 3: Mar. 28, 2007. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that there is an immediate need for certainty in the procedure for issuance of industrial revenue bonds by municipalities and counties for the financing of industrial projects for the purpose of securing and developing industry. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Research References

Ark. L. Notes.

Gitelman, The Arkansas Supreme Court and Municipal Revenue Bonds, 1985 Ark. L. Notes 27.

Ark. L. Rev.

Mechanic's Liens on Project Financed by Act 9, 28 Ark. L. Rev. 280.

U. Ark. Little Rock L.J.

Legislative Survey, Bonds, 8 U. Ark. Little Rock L.J. 551.

Case Notes

Constitutionality.

This subchapter, authorizing municipalities and counties to engage in activity and issue bonds for the purpose of alleviating unemployment in the area, is not contrary to the Arkansas Constitution, since such activity constitutes a public purpose. Wayland v. Snapp, 232 Ark. 57, 334 S.W.2d 633 (1960).

Conflict of Laws.

This subchapter authorizing a city to construct an industrial facility for the purpose of securing and developing industry in the area and, in particular § 14-164-204, enacted in 1971, providing that this subchapter should be liberally construed and that projects under this subchapter did not have to comply with other laws dealing with public facilities, were in conflict with § 22-9-301 et seq., enacted in 1969, requiring that the prevailing minimum wage shall be paid to workers involved in projects constructed for public use; accordingly, § 14-164-204, as the most recent expression of the legislature, operated as a repeal of the provisions of § 22-9-301 et seq. insofar as they conflict, and therefore, the contractor on a commercial construction project which was financed pursuant to an industrial development bond issue under this subchapter was not required to pay the prevailing minimum wage. Daniels v. City of Ft. Smith, 268 Ark. 157, 594 S.W.2d 238 (1980).

Elections.

This subchapter was based upon former Ark. Const. Amend. 49 (repealed by Ark. Const. Amend. 62, § 11); this amendment did not provide for bonds of any kind to be issued without approval of a majority of the qualified electors voting in an election held for that purpose. Purvis v. City of Little Rock, 282 Ark. 102, 667 S.W.2d 936 (1984).

Implied Repeal.

Provisions of § 14-16-105 regarding the lease or sale of county property, as in the case of a lease agreement with option to purchase lands donated to county for its industrial development program, are inconsistent with provisions of this subchapter and as such serve to repeal this subchapter in cases coming within the scope of § 14-16-105. Dumas v. Jerry, 257 Ark. 1031, 521 S.W.2d 539 (1975).

Cited: Arkansas Indus. Dev. Comm'n v. FABCO of Ashdown, Inc., 312 Ark. 26, 847 S.W.2d 13 (1993); Pulaski County v. Jacuzzi Bros. Div., 332 Ark. 91, 964 S.W.2d 788 (1998).

14-164-201. Title.

This subchapter shall be referred to and may be cited as the “Municipalities and Counties Industrial Development Revenue Bond Law.”

History. Acts 1960 (Ex. Sess.), No. 9, § 1; A.S.A. 1947, § 13-1601.

A.C.R.C. Notes. Acts 1991, No. 629, § 8, provided:

“For purposes of any other law, including, without limitation, § 14-164-201 et seq., the term ‘facilities’ or a similar term shall include a wastewater project or solid waste disposal project as those terms are defined in this subchapter, so that any law adopted authorizing the issuance of industrial development bonds, industrial development revenue bonds, or similar evidences of indebtedness shall be available for utilization in connection with a privatization project.”

Publisher's Notes. Acts 1991, No. 629, § 8, is also codified at § 8-5-612.

Research References

ALR.

When is property owned by state or local governmental body put to public use so as to be eligible for property tax exemption. 114 A.L.R.5th 561.

Case Notes

Cited: United States v. White, 671 F.2d 1126 (8th Cir. 1982); Hufsmith v. Weaver, 285 Ark. 357, 687 S.W.2d 130 (1985).

14-164-202. Purpose.

This subchapter is intended to supplement all constitutional provisions and other legislation designed to secure and develop industry and, when applied in accordance with its provisions, may be used by any municipality or county as an alternative notwithstanding any constitutional provision or any other legislation authorizing a municipality or county or any commission or agency thereof to issue bonds for the purpose of securing and developing industry.

History. Acts 1960 (Ex. Sess.), No. 9, § 15; 1961, No. 48, § 5; A.S.A. 1947, § 13-1614.

Case Notes

Cited: Pulaski County v. Jacuzzi Bros. Div., 332 Ark. 91, 964 S.W.2d 788 (1998).

14-164-203. Definitions.

As used in this subchapter:

  1. “Construct” means to acquire or build, in whole or in part, in such manner and by such method, including contracting therefor and, if the latter, by negotiation or bidding upon such terms and pursuant to such advertising as the municipality or county shall determine to be in the public interest and necessary under the circumstances existing at the time to accomplish the purposes of, and authorities set forth in, this subchapter;
    1. “County” means a county of this state, or if a county is divided into two (2) districts, the term “county” means the entire county or either district of the county.
    2. It is the purpose and intent of this subdivision (2) to define the term “county”, as used in this subchapter, to mean an entire county or either district of a county which is divided into two (2) districts and has two (2) separate levying courts, in order that either district of a county so divided may issue revenue bonds and do all other acts in the manner and for the purposes authorized in this subchapter;
  2. “Equip” means to install or place on or in any building or structure equipment of any kind, whether or not affixed, including, without limiting the generality of the foregoing, building service equipment, fixtures, heating equipment, air conditioning equipment, machinery, furniture, furnishings, and personal property of every kind;
  3. “Facilities” means any real property, personal property, or mixed property of any kind that can be used or that will be useful in securing or developing industry, including, without limiting the generality of the foregoing, rights-of-way, roads, streets, pipes, pipelines, reservoirs, utilities, materials, equipment, fixtures, machinery, furniture, furnishings, instrumentalities, and other real, personal, or mixed property of every kind;
  4. “Governing body” means the council, board of directors, or city commission of any municipality;
  5. “Industry” means, but is not limited to, manufacturing facilities, warehouses, distribution facilities, repair and maintenance facilities, agricultural facilities, corporate and management offices for industry, tourism attractions and facilities, and technology-based enterprises;
  6. “Lease” means to lease for such rentals, for such periods, and upon such terms and conditions as the municipality or county shall determine, including, without limiting the generality of the foregoing, the granting of renewal or extension options for rentals for such periods and upon such terms and conditions as the municipality or county shall determine and the granting of purchase options for such prices and upon such terms and conditions as the municipality or county shall determine;
  7. “Loan” means to loan all or part of the proceeds of bonds upon repayment and other terms and conditions as the municipality or county determines;
  8. “Municipality” means a city of the first class, a city of the second class, or an incorporated town;
  9. “Sell” means to sell for such price, in such manner, and upon such terms as the municipality or county determines, including, without limiting the generality of the foregoing, private or public sale, and if public, pursuant to such advertisement as the municipality or county determines, sell for cash or credit payable in lump sum or installments over such period as the municipality or county determines and if on credit, with or without interest and at such rate or rates, as the municipality or county determines;
  10. “Surplus revenues” means revenues remaining after adequate provision has been made for expenses of operation, maintenance, and depreciation and all requirements of ordinances, orders, or indentures securing bonds issued before or after to finance the cost of acquiring, constructing, reconstructing, extending, or improving the lands, buildings, or facilities for developing and securing industry or utilities have been fully met and complied with;
  11. “Technology-based enterprises” means:
    1. A grouping of growing business sectors, identified as targeted businesses in § 15-4-2703(39) and which pay one hundred fifty percent (150%) of the lesser of the county or state average wage;
    2. “Scientific and technical services business” as defined in § 15-4-2703(35); and
    3. A corporation, partnership, limited liability company, sole proprietorship, or other legal entity whose primary business directly involves commercializing the results of research conducted in one (1) of the six (6) growing business sectors identified as targeted businesses in § 15-4-2703(39) and paying not less than one hundred fifty percent (150%) of the lesser of the county or state average wage; and
  12. “Tourism attractions and facilities” means:
    1. Cultural or historical sites;
    2. Recreational or entertainment facilities;
    3. Areas of natural phenomena or scenic beauty;
    4. Theme parks;
    5. Amusement or entertainment parks;
    6. Indoor or outdoor plays or music shows;
    7. Botanical gardens;
    8. Cultural or educational centers; and
    9. Lodging facilities that are an integrated part of any of the enterprises in subdivisions (13)(A)-(H) of this section.

History. Acts 1960 (1st Ex. Sess.), No. 9, §§ 6, 12; 1963, No. 231, § 1; 1967, No. 213, §§ 1, 2; 1971, No. 208, § 1; 1979, No. 773, § 1; 1981, No. 4, § 5; A.S.A. 1947, §§ 13-1606, 13-1612 — 13-1612.2; Acts 1999, No. 307, § 1; 2005, No. 1232, § 5; 2005, No. 1922, § 1.

Publisher's Notes. As to validation of prior actions, see Acts 1963, No. 231, § 1.

Amendments. The 2005 amendment by No. 1232, in (6), deleted the subdivision (A) designation, inserted “technology-based enterprises” and made a related change, and deleted former (B); and added (11) and (12).

The 2005 amendment by No. 1922 added (8); and redesignated the remaining subsections.

Case Notes

Cited: Dumas v. Jerry, 257 Ark. 1031, 521 S.W.2d 539 (1975).

14-164-204. Construction.

  1. This subchapter shall be liberally construed to accomplish its intent and purposes and shall be the sole authority required for the accomplishment of its purpose. To this end, it shall not be necessary to comply with general provisions of other laws dealing with public facilities, their acquisition, construction, leasing, encumbering, or disposition.
    1. The practice of municipalities and counties and their authority to loan the proceeds of industrial development revenue bonds to accomplish the purposes set forth in § 14-164-205 is explicitly confirmed and ratified.
    2. All loans previously made by a municipality or county shall be considered for all purposes as if made under the authority of this subchapter.

History. Acts 1960 (1st Ex. Sess.), No. 9, § 15; 1961, No. 48, § 5; 1971, No. 208, § 2; A.S.A. 1947, §§ 13-1614, 13-1615; Acts 2005, No. 1922, § 2.

Amendments. The 2005 amendment added (b).

Case Notes

Conflict of Laws.

This subchapter authorizing a city to construct an industrial facility for the purpose of securing and developing industry in the area and, in particular this section, enacted in 1971, providing that this subchapter should be liberally construed and that projects under this subchapter did not have to comply with other laws dealing with public facilities, were in conflict with § 22-9-301 et seq., enacted in 1969, requiring that the prevailing minimum wage shall be paid to workers involved in projects constructed for public use; accordingly, this section, as the most recent expression of the legislature, operated as a repeal of the provisions of § 22-9-301 et seq. insofar as they conflict, and therefore, the contractor on a commercial construction project which was financed pursuant to an industrial development bond issue under this subchapter was not required to pay the prevailing minimum wage. Daniels v. City of Ft. Smith, 268 Ark. 157, 594 S.W.2d 238 (1980).

Eminent Domain.

This section does not even suggest the conferring or delegating of the power of eminent domain to municipalities for the purpose of acquiring land, buildings, or facilities for use in securing and developing industry. City of Little Rock v. Raines, 241 Ark. 1071, 411 S.W.2d 486 (1967).

Implied Repeal.

This subchapter operated as a repeal of § 14-16-105 in those cases coming within the purview of this subchapter. Dumas v. Jerry, 257 Ark. 1031, 521 S.W.2d 539 (1975).

14-164-205. Authority to develop industry.

Any municipality or any county is authorized to own, acquire, construct, reconstruct, extend, equip, improve, operate, maintain, sell, lease, or contract concerning, or otherwise deal in or dispose of, any land, buildings, or facilities of any and every nature whatever that can be used in securing or developing industry within or near the municipality or county.

History. Acts 1960 (Ex. Sess.), No. 9, § 2; A.S.A. 1947, § 13-1602.

Case Notes

Eminent Domain.

This section authorizing municipalities to acquire land, buildings, or facilities that can be used in securing and developing industries does not confer or delegate to municipalities the power of eminent domain for such purposes. City of Little Rock v. Raines, 241 Ark. 1071, 411 S.W.2d 486 (1967).

Industrial Development.

Summary judgment for gas company in its declaratory action was proper because the county's grant of a pipeline easement to manufacturer was null and void due to the county's failure to follow the appraisal, notice, and bidding procedures required in § 14-16-105, and the exemptions set out in § 14-16-105(f)(2) for conservation easements did not include the pipeline easement; further, this section, which allows conveyances for industrial development, did not apply where there was no evidence that the easement was granted to develop industry. MacSteel Div. of Quanex v. Ark. Okla. Gas Corp., 363 Ark. 22, 210 S.W.3d 878 (2005).

In a gas corporation's suit against a steel manufacturer and the county challenging a lease and easement granted the manufacturer, summary judgment in favor of the manufacturer and the county was proper as the grant of the easement to allow the manufacturer to obtain gas for its industrial operations was permitted under this section. Ark. Okla. Gas Corp. v. MacSteel Div. of Quanex, 370 Ark. 481, 262 S.W.3d 147 (2007).

Private Use.

Where a city financed an industrial facility by issuing industrial development bonds, the facility was not “constructed for public use” within the meaning of § 22-9-301 et seq., which requires that the prevailing minimum wage be paid to workers involved in projects constructed for public use, since although the public would indirectly benefit from the facility, the private corporation retained sole control over all buildings, equipment, and other personal property at the facility, and the general public did not have open access to and use of the facility as they would have to a public library, courthouse, or other public facility. Daniels v. City of Ft. Smith, 268 Ark. 157, 594 S.W.2d 238 (1980).

Cited: Dumas v. Jerry, 257 Ark. 1031, 521 S.W.2d 539 (1975); Pulaski County v. Jacuzzi Bros. Div., 332 Ark. 91, 964 S.W.2d 788 (1998).

14-164-206. Authority to issue revenue bonds.

  1. Municipalities and counties are authorized to use any available revenues for the accomplishment of the purposes set forth in § 14-164-205 and are authorized to issue revenue bonds and to loan and otherwise use the proceeds thereof for the accomplishment of the purposes set forth in § 14-164-205, either alone or together with other available funds and revenues.
    1. The proceeds of bonds issued may be used or loaned to pay:
      1. All or any portion of the costs of accomplishing the specified purposes;
      2. All or any portion of the costs of issuing the bonds;
      3. The amount necessary for a reserve, if desirable;
      4. The amount necessary to provide debt service on the bonds until revenues for payment of the bonds are available; and
      5. Any other costs of whatever nature necessarily incidental to the accomplishment of the specified purposes.
      1. In addition, revenue bonds are authorized for the purpose of refunding any bonds issued and outstanding by a municipality or county under the provisions of Arkansas Constitution, Amendment 49 [repealed], it being declared that the refunding will be in the best interest of the municipality or county involved and will be in furtherance of the purpose of securing and developing industry in that the tax levied for Arkansas Constitution, Amendment 49 [repealed] bonds being refunded will, by virtue of the refunding, be released and thereby made available for a subsequent bond issue under Arkansas Constitution, Amendment 49 [repealed].
      2. The bonds issued under this subchapter for the purpose of refunding Arkansas Constitution, Amendment 49 [repealed] bonds may be issued solely for that purpose or may be issued for that purpose and for the accomplishment of any other purposes set forth in § 14-164-205.

History. Acts 1960 (1st Ex. Sess.), No. 9, § 3; 1961, No. 48, § 1; 1965, No. 383, § 1; A.S.A. 1947, § 13-1603; Acts 2005, No. 1922, §§ 3, 4.

A.C.R.C. Notes. It is questionable whether Ark. Const., Art. 49 is repealed in whole or whether only those provisions that conflict with Ark. Const., Art. 62 are repealed by Ark. Const., Art. 62.

Acts 2007, No. 644, § 2, provided: “The amendment made by Section 1 of this act shall apply to all ordinances and orders heretofore adopted or entered under the authority of Arkansas Code § 14-164-208. All such ordinances and orders heretofore adopted or entered shall be considered for all purposes as if adopted or entered under the authority of this act. No such ordinance heretofore adopted shall be held to be invalidly adopted by reason of the provision of Arkansas Code § 14-55-206.”

Amendments. The 2005 amendment inserted “loan and otherwise” preceding “use the proceeds” in (a); in (b)(1), substituted “proceeds” for “amount,” and “may be used or loaned” for “shall be sufficient”; inserted “or any portion of the” in (b)(1)(A) and (b)(1)(B); and substituted “payment of the bonds” for “the payment of them” in (b)(1)(D).

Cross References. Industrial development compacts between counties and/or municipalities, § 14-165-201 et seq.

Case Notes

Constitutionality.

The issuance of revenue bonds by a city to obtain money with which to purchase land and construct manufacturing facilities to alleviate unemployment in that area, being special bonds as distinguished from general obligation bonds, does not violate any constitutional provisions. Wayland v. Snapp, 232 Ark. 57, 334 S.W.2d 633 (1960).

Ad Valorem Tax Exemption.

In the context of an Act 9 industrial development program, as codified at §§ 14-164-201 to -224, maturity and payment of bonds do not independently trigger the end of the public purpose and the end of the exemption from ad valorem taxes. Pulaski County v. Jacuzzi Bros. Div., 332 Ark. 91, 964 S.W.2d 788 (1998).

14-164-207. Applicability of §§ 14-164-208 — 14-164-216, and 14-164-218.

The provisions of this section and §§ 14-164-20814-164-216 and 14-164-218 shall not restrict the issuance of any bonds with regard to which a resolution, ordinance, order, or like action authorizing or committing to the issuance of bonds shall have been adopted or taken by a municipality or county prior to March 16, 1981.

History. Acts 1981, No. 503, § 3; A.S.A. 1947, § 13-1605.1.

14-164-208. Adoption of bond ordinance or order.

    1. Revenue bonds authorized by this subchapter may be issued by a municipality upon the adoption of an ordinance for that purpose by the governing body of the municipality.
    2. Revenue bonds authorized by this subchapter may be issued by a county upon the entry of an order of the county court of the county.
  1. The ordinance or order shall state the purpose for which the revenue bonds are to be issued and the total principal amount of the issue.
    1. No ordinance or order shall be adopted or entered until after a public hearing is held before the governing body of the municipality or the county court of the county. However, no public hearing shall be required for the issuance of bonds for the purpose of refunding any obligations issued under this subchapter.
    2. At least ten (10) days prior to the date of the hearing, notice of it shall be published one (1) time in a newspaper of general circulation in the municipality or county.
  2. After the hearing, which may be adjourned from time to time, the ordinance or order as introduced or as modified or amended may be adopted or entered.
    1. The notice provided for in this section shall be published by the mayor, clerk, or recorder of the municipality or by the county judge or county clerk of the county.
    2. It shall not be necessary that the action be taken by the governing body or county court to direct publication of the notice.
      1. A municipal ordinance authorizing bonds shall be published one (1) time in a newspaper of general circulation in the municipality.
      2. It shall not be necessary to publish a county court order authorizing bonds.
      3. It shall not be necessary to comply with general provisions of other laws dealing with the publication or posting of ordinances or orders.
      1. Subdivision (f)(1) of this section applies to all ordinances and orders adopted or entered under this section before March 28, 2007.
      2. An ordinance or order adopted or entered before March 28, 2007, shall be considered for all purposes as if adopted or entered under the authority of this subsection.
      3. An ordinance adopted before March 28, 2007, shall not be held to be invalidly adopted for noncompliance with § 14-55-206.

History. Acts 1960 (1st Ex. Sess.), No. 9, § 4; 1968 (1st Ex. Sess.), No. 52, § 1; 1975 (Extended Sess., 1976), No. 1239, § 1; 1981, No. 503, § 1; A.S.A. 1947, § 13-1604; Acts 1997, No. 540, § 16; 1999, No. 307, § 2; 2007, No. 644, § 1; 2009, No. 163, § 2.

A.C.R.C. Notes. Acts 2007, No. 644, § 2, provided: “The amendment made by Section 1 of this act shall apply to all ordinances and orders heretofore adopted or entered under the authority of Arkansas Code § 14-164-208. All such ordinances and orders heretofore adopted or entered shall be considered for all purposes as if adopted or entered under the authority of this act. No such ordinance heretofore adopted shall be held to be invalidly adopted by reason of the provision of Arkansas Code § 14-55-206.”

Amendments. The 2009 amendment redesignated (f)(1) and inserted (f)(2).

14-164-209. Bonds — Issuance — Authorizing resolution.

  1. The issuance of revenue bonds shall be by an ordinance of the municipality or an order of the county court, as the case may be.
  2. In the ordinance of the municipality or the order of the county court authorizing the issuance of revenue bonds, the municipality or the county may:
    1. Provide for the initial issuance of one (1) or more bonds aggregating the principal amount of the entire issue and may, in the ordinance or order, make such provisions for installment payments of the principal amount of the bonds as it may consider desirable; and
    2. Provide for the bonds to be payable to the bearer with interest coupons, or to be registrable as to principal only with interest coupons, or to be registrable as to principal and interest, and where interest accruing thereon is not represented by interest coupons, for the endorsement of payment of interest on the bonds.

History. Acts 1960 (Ex. Sess.), No. 9, § 5; 1961, No. 48, § 2; 1963, No. 231, § 2; 1968 (1st Ex. Sess.), No. 16, § 1; 1969, No. 121, § 1; 1970 (Ex. Sess.), No. 36, § 1; 1981, No. 4, § 2; A.S.A. 1947, § 13-1605.

14-164-210. Bonds — Terms and conditions.

  1. The bonds may be in bearer or registered form, with or without coupons, and may be subject to exchange or modification in that regard, and, as the ordinance may provide, may:
    1. Be issued in one (1) or more series;
    2. Bear such date or dates;
    3. Mature at such time or times, not exceeding thirty (30) years from their respective dates;
    4. Bear interest at such rate or rates;
    5. Be in such form;
    6. Be executed in such manner;
    7. Be payable in such medium of payment, at such place or places;
    8. Be subject to such terms of redemption; and
    9. Contain such terms, covenants, and conditions, including, without limitation, those pertaining to:
      1. The custody and application of proceeds of the bonds;
      2. The collection and disposition of revenues;
      3. The maintenance of various funds and reserves;
      4. The nature and extent of the security;
      5. The rights, duties, and obligations of the municipality or county and the trustee for the holders or registered owners of the bonds; and
      6. The rights of the holders or registered owners of the bonds.
  2. The bonds shall have all the qualities of negotiable instruments under the negotiable instruments laws of this state.

History. Acts 1960 (Ex. Sess.), No. 9, § 5; 1961, No. 48, § 2; 1963, No. 231, § 2; 1968 (1st Ex. Sess.), No. 16, § 1; 1969, No. 121, § 1; 1970 (Ex. Sess.), No. 36, § 1; 1975, No. 221, § 1; 1975 (Extended Sess., 1976), No. 1239, § 2; 1981, No. 4, §§ 2-4; 1981, No. 503, § 2; A.S.A. 1947, § 13-1605.

14-164-211. Bonds — Trust indenture, lease, etc.

  1. The ordinance or order may provide for the execution by the municipality or county of an indenture which defines the rights of the bondholders and provides for the appointment of a trustee for the bondholders.
  2. The indenture may control the priority between successive issues and may contain any other items, covenants, and conditions that are deemed desirable, including, without limitation, those pertaining to:
    1. The custody and application of the proceeds of the bonds;
    2. The collection and disposition of revenues;
    3. The maintenance of various funds and reserves;
    4. The nature and extent of the security;
    5. The rights, duties, and obligations of the municipality or county and the trustee for the holders or registered owners of the bonds; and
    6. The rights of the holders or registered owners of the bonds.
  3. It shall not be necessary for the municipality to publish any indenture, lease, or any other agreement if the ordinance authorizing an indenture, the ordinance authorizing a lease, or the ordinance authorizing any other agreement is published as required by the law governing the publication of ordinances of a municipality and the ordinance advises that a copy of the indenture, lease, or other agreement, as the case may be, is on file in the office of the clerk or recorder of the municipality for inspection by an interested person, and the copy of the indenture, lease, or other agreement, as the case may be, is filed with the clerk or recorder of the municipality.

History. Acts 1960 (Ex. Sess.), No. 9, § 5; 1961, No. 48, § 2; 1963, No. 231, § 2; 1968 (1st Ex. Sess.), No. 16, § 1; 1969, No. 121, § 1; 1970 (Ex. Sess.), No. 36, § 1; 1975, No. 221, § 1; 1975 (Extended Sess., 1976), No. 1239, § 2; 1981, No. 4, §§ 2-4; 1981, No. 503, § 2; A.S.A. 1947, § 13-1605.

14-164-212. Bonds and coupons — Execution.

      1. The bonds shall be executed by the mayor and the city clerk or recorder of the municipality, or by the county judge and the county clerk of the county, as the case may be.
      2. One (1) signature may be facsimile, but one (1) signature must be manual.
    1. The coupons attached to the bonds may be executed by the facsimile signature of the mayor or county judge.
  1. In case any of the officers whose signatures appear on the bonds or coupons shall cease to be such officers before the delivery of the bonds or coupons, their signatures shall nevertheless be valid and sufficient for all purposes.

History. Acts 1960 (Ex. Sess.), No. 9, § 5; 1961, No. 48, § 2; 1963, No. 231, § 2; 1968 (1st Ex. Sess.), No. 16, § 1; 1969, No. 121, § 1; 1970 (Ex. Sess.), No. 36, § 1; 1975, No. 221, § 1; 1975 (Extended Sess., 1976), No. 1239, § 2; 1981, No. 4, §§ 2-4; 1981, No. 503, § 2; A.S.A. 1947, § 13-1605.

14-164-213. Bonds — Sale.

The bonds may be sold for such price, including, without limitation, sale at a discount, and in such manner as the municipality or county may determine by ordinance or order.

History. Acts 1960 (Ex. Sess.), No. 9, § 5; 1961, No. 48, § 2; 1963, No. 231, § 2; 1968 (1st Ex. Sess.), No. 16, § 1; 1969, No. 121, § 1; 1970 (Ex. Sess.), No. 36, § 1; 1975, No. 221, § 1; 1975 (Extended Sess., 1976), No. 1239, § 2; 1981, No. 4, §§ 2-4; 1981, No. 503, § 2; A.S.A. 1947, § 13-1605.

14-164-214. Bonds — Conversion.

The municipality or the county may make provision in the ordinance or order for the manner and circumstances in which and under which bonds issued under this section may, in the future at the request of the holders or registered owners thereof, be converted into bonds of smaller denomination. The bonds of smaller denomination may in turn be either coupon bonds payable to bearer or bonds registrable as to principal only, or bonds registrable as to both principal and interest.

History. Acts 1960 (Ex. Sess.), No. 9, § 5; 1961, No. 48, § 2; 1963, No. 231, § 2; 1968 (1st Ex. Sess.), No. 16, § 1; 1969, No. 121, § 1; 1970 (Ex. Sess.), No. 36, § 1; 1975, No. 221, § 1; 1975 (Extended Sess., 1976), No. 1239, § 2; 1981, No. 4, §§ 2-4; 1981, No. 503, § 2; A.S.A. 1947, § 13-1605.

14-164-215. Bonds — Successive issues.

There may be successive bond issues for the purpose of financing the same industrial projects, including land, buildings, or facilities, involving one (1) or more industries, and there may be successive bond issues for financing the cost of reconstructing, replacing, constructing additions to, extending, improving, and equipping industrial projects, including land, buildings, or facilities, already in existence, whether or not originally financed by bonds issued under this subchapter, with each successive issue to be authorized as provided by this subchapter.

History. Acts 1960 (Ex. Sess.), No. 9, § 5; 1961, No. 48, § 2; 1963, No. 231, § 2; 1968 (1st Ex. Sess.), No. 16, § 1; 1969, No. 121, § 1; 1970 (Ex. Sess.), No. 36, § 1; 1975, No. 221, § 1; 1975 (Extended Sess., 1976), No. 1239, § 2; 1981, No. 4, §§ 2-4; 1981, No. 503, § 2; A.S.A. 1947, § 13-1605.

14-164-216. Bonds — Priority among issues.

Priority between and among issues and successive issues as to security of the pledge of revenues and mortgage liens on the land, buildings, and facilities involved may be controlled by the ordinance or order authorizing the issuance of bonds under this subchapter.

History. Acts 1960 (Ex. Sess.), No. 9, § 5; 1961, No. 48, § 2; 1968 (1st Ex. Sess.), No. 16, § 1; 1969, No. 121, § 1; 1970 (Ex. Sess.), No. 36, § 1; 1981, No. 4, § 2; A.S.A. 1947, § 13-1605.

14-164-217. Bonds — Payment.

    1. Revenue bonds issued under this subchapter shall not be general obligations of the municipality or county, but shall be special obligations, and in no event shall the revenue bonds constitute an indebtedness of the municipality or county within the meaning of any constitutional or statutory limitation.
    2. It shall be plainly stated on the face of each bond that it has been issued under the provisions of this subchapter and that it does not constitute an indebtedness of the municipality or county within any constitutional or statutory limitation.
    1. The principal of and interest on the revenue bonds and trustee's and paying agent's fees shall be payable from one (1) or more of the following sources as determined by the municipality or county:
      1. Revenues derived from the lands, buildings, or facilities acquired, constructed, reconstructed, extended, or improved, in whole or in part, with the proceeds of the bonds;
      2. Surplus revenues derived from other lands, buildings, or facilities used and useful for securing and developing industry;
      3. Surplus revenues derived from water, sewer, sanitation, gas, and electric utilities owned by the municipality or county;
      4. Revenues derived from payments in lieu of ad valorem taxes to the municipality or county with respect to the lands, buildings, or facilities acquired, constructed, reconstructed, extended, or improved, in whole or in part, with the proceeds of the bonds; and
      5. Revenues derived from governmental grants and tax rebates and credits received or anticipated to be received with respect to the lands, buildings, or facilities acquired, constructed, reconstructed, extended, or improved, in whole or in part, with the proceeds of the bonds.
    2. The revenues may also be pledged to and used for the reimbursement for payments of the principal of and interest on the bonds and trustee's and paying agent's fees made by the Arkansas Economic Development Commission or the Arkansas Economic Development Council pursuant to guaranties issued under the Industrial Revenue Bond Guaranty Law, § 15-4-601 et seq., or made by the Arkansas Development Finance Authority pursuant to guaranties issued under the Arkansas Development Finance Authority Bond Guaranty Act of 1985, § 15-5-401 et seq.
    3. Surplus funds on hand derived from the water, sewer, sanitation, gas, and electric utilities owned by the municipality or county may also be pledged and used for any of the foregoing purposes, including the establishment and maintenance of a reserve fund or funds for the payment of the principal of and interest on the bonds and trustee's and paying agent's fees or the reimbursement thereof.

History. Acts 1960 (1st Ex. Sess.), No. 9, § 6; A.S.A. 1947, § 13-1606; Acts 1999, No. 307, § 3; 2005, No. 1922, § 5.

Amendments. The 2005 amendment, in (b)(1), inserted “and trustee's” and substituted “from one (1) … municipality or county: (A) Revenues” for “in the first instance from gross revenue”; in former (b)(2)(A), deleted the subdivision (2)(A) designation, deleted “In addition, the municipality or county is authorized to pledge to and use for the payment of the principal of and interest on the bonds and trustee's and paying agent's fees, and inserted the subdivision (B) and (C) designations; inserted present (b)(1)(D) and (F); redesignated former (b)(2)(B) and (C) as present (b)(2) and (3); and made related changes.

14-164-218. Bonds — Interim financing.

  1. If the issuance of bonds is authorized in accordance with the provisions of this subchapter, a municipality or county is authorized to obtain interim financing pending the delivery of all or any part of the bonds from such sources and upon such terms as the municipality or the county shall determine.
  2. As evidence of any indebtedness so incurred, the municipality or the county may execute and deliver its promissory note or notes and pledge to the payment thereof any revenues authorized by this subchapter to be pledged to revenue bonds and may secure the notes in the same manner as revenue bonds issued under this subchapter may be secured.
  3. As the ordinance or order may provide, the notes may:
    1. Bear such date or dates;
    2. Mature at such time or times, not exceeding thirty-six (36) months from their respective dates;
    3. Bear interest at such rate or rates;
    4. Be in such form;
    5. Be executed in such manner;
    6. Be payable at such place or places;
    7. Contain such provisions for prepayment prior to maturity; and
    8. Contain such other terms, or covenants and conditions, consistent with the provisions of this subchapter, pertaining to revenue bonds and pertaining to the security, rights, duties, and obligations of the municipality or county and the trustee for the holders or registered owners of the bonds and the rights of the holders or registered owners of the bonds.
  4. These notes shall not be general obligations of the municipality or county but shall be special obligations, and in no event shall these notes constitute an indebtedness of the municipality or county within the meaning of any constitutional or statutory limitation.
  5. The municipality or county may use, as distinguished from pledge, any available revenues to pay or to apply to the payment of the principal of, and interest on, these notes and may use the proceeds of revenue bonds, either alone or with other available revenues, to pay the principal and interest on the notes.

History. Acts 1960 (Ex. Sess.), No. 9, § 5; 1968 (1st Ex. Sess.), No. 16, § 1; 1969, No. 121, § 1; 1970 (Ex. Sess.), No. 36, § 1; 1975 (Extended Sess., 1976), No. 1239, § 2; 1981, No. 4, §§ 2-4; A.S.A. 1947, § 13-1605.

14-164-219. Refunding bonds.

    1. Revenue bonds may be issued under this subchapter for the purpose of refunding any obligations issued under this subchapter.
    2. Refunding bonds may be combined with bonds issued under the provisions of § 14-164-206 into a single issue.
    1. When bonds are issued under this section for refunding purposes, the bonds may either be sold or delivered in exchange for the outstanding obligations.
    2. If sold, the proceeds may be either applied to the payment of the obligations refunded or deposited in escrow for the retirement of them.
    1. The ordinance or order under which the refunding bonds are issued may provide that any of the bonds shall have the same priority of lien on the revenues pledged for their payment as was enjoyed by the obligations refunded by them.
    2. Refunding bonds shall be issued and secured in the manner provided for other bonds issued under this subchapter and shall have all the attributes of these bonds.

History. Acts 1960 (Ex. Sess.), No. 9, § 7; 1965, No. 383, § 2; 1975 (Extended Sess., 1976), No. 1239, § 3; A.S.A. 1947, § 13-1607; reen. Acts 1987, No. 1020, § 1.

A.C.R.C. Notes. This section was reenacted by Acts 1987, No. 1020, § 1. Acts 1987, No. 834 provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

14-164-220. Statutory mortgage lien.

    1. The ordinance, order, or indenture referred to in §§ 14-164-209 and 14-164-211 may, but need not, impose a foreclosable mortgage lien upon the land, buildings, or facilities acquired, constructed, reconstructed, extended, equipped, or improved, in whole or in part, with the proceeds of bonds issued under this subchapter.
    2. The nature and extent of the mortgage lien may be controlled by the ordinance, order, or indenture, including, without limitation, provisions pertaining to the release of all, or part of, the land, buildings, or facilities from the mortgage lien and the priority of the mortgage lien in the event of successive bond issues as authorized by § 14-164-215.
    1. The ordinance, order, or indenture authorizing or securing the bonds may authorize any holder or registered owner of bonds issued under the provisions of this subchapter, or a trustee on behalf of all holders and registered owners, either at law or in equity, to enforce the mortgage lien and, by proper suit, compel the performance of the duties of the officials of the issuing municipality or county set forth in this subchapter and set forth in the ordinance, order, or indenture authorizing or securing the bonds.
    2. References in this subchapter to mortgage liens shall include and mean security interest in any personal property embodied in the facilities acquired, constructed, reconstructed, extended, equipped, or improved, in whole or in part, with the proceeds of bonds issued under this subchapter.

History. Acts 1960 (Ex. Sess.), No. 9, § 8; 1961, No. 48, § 3; 1975, No. 221, § 2; A.S.A. 1947, § 13-1608.

Cross References. Condemnation of lands for which bonds issued, § 18-15-308.

Case Notes

Foreclosure.

If the municipality has the power to mortgage its property, it is subject to foreclosure on the breach of the condition. Wayland v. Snapp, 232 Ark. 57, 334 S.W.2d 633 (1960).

14-164-221. Default in payment of bonds.

  1. In the event of a default in the payment of the principal of, or interest on, any revenue bonds issued under this subchapter, any court having jurisdiction may appoint a receiver to take charge of the land, buildings, or facilities acquired, constructed, reconstructed, extended, equipped, or improved, in whole or in part, with the proceeds of revenue bonds issued under this subchapter, upon which land, buildings, or facilities, or any part thereof, there is a mortgage lien securing the revenue bonds with reference to which there is such a default in the payment of principal or interest.
  2. The receiver shall have the power to operate and maintain the land, buildings, or facilities and to charge and collect rates or rents sufficient to provide for the payment of the principal of, and interest on, the bonds, after providing for the payment of any cost of receivership and operating expenses of the land, buildings, or facilities, and to apply the income and revenues derived from the land, buildings, or facilities in conformity with this subchapter and the ordinance, order, or indenture authorizing or securing the bonds.
  3. When the default has been cured, the receivership shall be ended and the properties returned to the municipality or county.
  4. The relief afforded by this section shall be construed to be in addition and supplemental to the remedies that may be afforded the trustee for the bondholders and the bondholders in the ordinance, order, or indenture authorizing or securing the bonds and shall be so granted and administered as to accord full recognition to priority rights of bondholders as to the pledge of revenues from, and mortgage lien on, the land, buildings, or facilities as specified in, and fixed by, the ordinances, orders, or indentures authorizing or securing successive bond issues.

History. Acts 1960 (Ex. Sess.), No. 9, § 9; 1961, No. 48, § 4; A.S.A. 1947, § 13-1609.

14-164-222. Bonds — Tax exemption.

  1. Bonds issued under the provisions of this subchapter shall be exempt from all state, county, and municipal taxes.
  2. This exemption includes income and inheritance taxes.

History. Acts 1960 (Ex. Sess.), No. 9, § 10; A.S.A. 1947, § 13-1610.

A.C.R.C. Notes. Language excluding property taxes from the exemption provided by this section was deleted pursuant to Ark. Const. Amend. 57, § 1 and § 26-3-302. The Arkansas Const. Amend. 57, § 1 provides that the General Assembly may classify intangible personal property for assessment at lower percentages of value than other property and may exempt one or more classes of intangible personal property from taxation, or may provide for the taxation of intangible personal property on a basis other than ad valorem. Section 26-3-302 exempts all intangible personal property in this state from all ad valorem tax levies of counties, cities, and school districts in the state as of January 1, 1976.

Cross References. Exemptions from ad valorem taxation, § 14-164-701 et seq.

Case Notes

Elements.

For property to be exempted from taxation two elements must be present: (a) the subject property must be “public property,” that is, it must be owned by the municipality, and (b) it must be used exclusively for public purposes. Wayland v. Snapp, 232 Ark. 57, 334 S.W.2d 633 (1960).

14-164-223. Public investment.

  1. Any municipality or any board, commission, or other authority established by ordinance of any municipality, or the boards of trustees, respectively, of the firemen's relief and pension fund and the policemen's pension and relief fund of any municipality or any county, or the board of trustees of any retirement system created by the General Assembly may, in its discretion, invest any of its funds not immediately needed for its purposes in the revenue bonds issued under the provisions of this subchapter.
  2. Revenue bonds issued under this subchapter shall be eligible to secure the deposit of public funds.

History. Acts 1960 (Ex. Sess.), No. 9, § 11; A.S.A. 1947, § 13-1611.

14-164-224. No utility acquisition by municipality.

Nothing in this subchapter shall be construed to authorize any municipality to issue or sell revenue bonds, or use the proceeds thereof, to purchase, condemn, or otherwise acquire a utility plant or distribution system owned or operated by a regulated public utility.

History. Acts 1960 (Ex. Sess.), No. 9, § 13; A.S.A. 1947, § 13-1613.

Subchapter 3 — Local Government Bond Act

Publisher's Notes. Acts 1985, No. 976 confirmed and continued the authority of municipalities to levy the hotel and restaurant tax and to pledge the proceeds of that tax to tourism bonds by ordinance subject to referendum but without a prior vote of the people. It declared the proceeds of any hotel and restaurant tax pledged to tourism bonds issued under Acts 1971, No. 380, or bonds issued under the Local Government Capital Improvement Revenue Bond Act of 1985, § 14-164-401 et seq. for tourism projects, to be project revenues of the project financed. It further provided that the hotel and restaurant tax is not a “tax” as taxes are normally understood and intended for government support, but is a special levy paid and collected by those persons and entities peculiarly associated with and benefited by tourism. However, since the Local Government Bond Act of 1985, § 14-164-301 et seq. makes specific reference to hotel and restaurant taxes, and the Local Government Capital Improvement Revenue Bond Act of 1985, § 14-164-401 et seq. does not, it is uncertain which of these Acts was intended to be referred to by Acts 1985, No. 976.

A.C.R.C. Notes. References to “this subchapter” in §§ 14-164-30114-164-337 may not apply to §§ 14-164-33814-164-340 which were enacted subsequently.

Cross References. Community redevelopment financing, § 14-168-201 et seq.

County and municipal pollution control facilities, § 14-267-101 et seq.

Energy conservation and renewable energy resource financing, § 14-167-201 et seq.

Industrial development funds, § 14-164-201 et seq.

Local government reserve funds, § 14-73-101 et seq.

Municipal street and parking revenue bonds, § 14-302-101 et seq.

Registration of public obligations, § 19-9-401 et seq.

Tourism revenue bonds, § 14-170-201 et seq.

Sales and use tax, § 26-74-601 et seq.

Effective Dates. Acts 1985, No. 871, § 25: Apr. 15, 1985. Emergency clause provided: “It is hereby found and declared that by virtue of adoption of Amendment No. 62 that there are now no provisions for municipalities and counties to conduct elections or otherwise implement the provisions of said amendment and that municipalities and counties have an immediate and pressing need for borrowing funds through the issuance of bonds authorized by Amendment 62 attributable in substantial part to prevailing interest rates having been greatly in excess of limitations on interest rates heretofore imposed by the Constitution of Arkansas. Therefore, an emergency is hereby declared to exist and this Act, being immediately necessary for the protection of the public peace, health and safety, shall take effect, and be in full force, immediately on its passage and approval.”

Acts 1987, No. 368, § 3: Mar. 23, 1987. Emergency clause provided: “It has been found and it is hereby declared that certain municipalities in this State cannot finance facilities for nonprofit organizations engaged primarily in public health, safety and disaster relief at affordable costs except by the use of bonds as authorized hereby and that there is an immediate need for facilities for such organizations, which serve important public functions. Therefore, an emergency is declared and this Act, being necessary for the public peace, health and safety, shall be in force upon its passage and approval.”

Acts 1988 (4th Ex. Sess.), No. 25, § 1: July 25, 1988. Emergency clause provided: “It is hereby found and determined by the General Assembly that some local governments have an immediate and pressing need to finance capital improvements without incurring unnecessary bond issue expenses; that until this Act becomes effective, the local governments must either finance those capital improvements through bond issues or delay commencing the capital improvements which would in either case result in greater cost than using the method provided by this Act; and that this Act should be given effect immediately in order to minimize the amount of taxes necessary to finance capital improvements. Therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1988 (4th Ex. Sess.), No. 26, § 3: Aug. 3, 1988. Emergency clause provided: “It has been found and it is hereby declared that certain municipalities in this State cannot finance cable television facilities at affordable costs except by the use of bonds as authorized hereby. Therefore, an emergency is declared and this Act, being necessary for the public peace, health and safety, shall be in force upon its passage and approval.”

Acts 1989, No. 458, § 4: Mar. 10, 1989. Emergency clause provided: “It is hereby found and determined by the General Assembly that present law allows a one percent (1%) sales tax to be levied by the people to finance capital improvements and that the tax can be levied for no longer than twelve (12) months; that in some instances this method of financing is critical to the construction of local jails; that the twelve (12) month limit on the sales tax is inadequate to finance the construction of some local jails; that this Act would extend the time frame from twelve (12) months to twenty-four (24) months; and that this Act should be given immediate effect in order to authorize the voters to vote as soon as possible upon the issue of levying a one percent (1%) sales and use tax to be levied for twenty-four (24) months. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1989, No. 497, § 7: Mar. 13, 1989. Emergency clause provided: “It is hereby found and declared by the General Assembly that municipalities and counties of the State of Arkansas have outstanding bonds payable from local sales and use taxes that must cease to be collected when the bonds are retired; and that the provisions of this Act are immediately needed in order to provide a procedure for terminating the tax and thereby reducing the local tax burden on the taxpayers of such municipalities and counties. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1991, No. 645, § 6: Mar. 19, 1991. Emergency clause provided: “It has been found and it is hereby declared that certain municipalities in this state cannot finance educational facilities, economic development facilities, and museum related audiovisual facilities at affordable costs except by the use of bonds as authorized hereby. It has been further found and determined that the provisions of Title 14, Chapter 164, Subchapter 3 of the Arkansas Code of 1987 Annotated authorizing the levy of a local sales and use tax by municipalities and counties are in need of clarification as regards the authority of the governing bodies of such counties and municipalities to abolish such taxes in certain situations. Therefore, an emergency is declared and this act, being necessary for the public peace, health and safety, shall be in full force from and after its passage and approval.”

Acts 1991, No. 646, § 7: Mar. 19, 1991. Emergency clause provided: “It is hereby found and determined by the General Assembly that municipalities and counties in this state are faced with financial crises with reference to having sufficient tax resources to fund both capital projects and operations. That such financial crises constitute such an emergency that the immediate passage of this act is necessary in order to provide financial flexibility and relief to such municipalities and counties. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1991, No. 765, § 22: Apr. 8, 1991. Emergency clause provided: “It is hereby found and determined by the General Assembly that cities and counties are faced with financial crises with reference to having sufficient tax resources to fund capital improvements of a public nature and to provide services to their inhabitants; that under current law the counties are restricted to a one percent (1%) levy and the cities are restricted to a one-half of one percent (0.05%) or one percent (1%) levy; that the ability to levy a sales and use tax computed on one-fourth of one percent, one-half of one percent, three-fourths of one percent, or one percent (1%) would be a feasible alternative for some cities and counties in financial crisis; and that such financial crises constitute such an emergency that the immediate passage of this act is necessary in order to provide financial relief to the cities and counties. Therefore, an emergency is declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall take effect and be in full force from and after its passage and approval.”

Acts 1992 (1st Ex. Sess.), No. 36, § 5: Mar. 10, 1992. Emergency clause provided: “It is hereby found and declared by the General Assembly that municipalities and counties in this state have an immediate need to finance capital improvements of a public nature and that existing laws must be clarified in order to insure the use of those laws to accomplish the same. Therefore, an emergency is hereby declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1993, No. 1014, § 5: Apr. 12, 1993. Emergency clause provided: “It is hereby found and determined by the General Assembly that Arkansas Code 14-164-338 does not presently indicate where the revenues derived from the tax levied under that section may be used to retire existing bonded indebtedness for capital improvements; that such use of those tax revenues should be allowed; that this act allows such use; and that this act should go into effect as soon as possible in order to give the cities and counties the maximum flexibility for retiring existing bond issues for capital improvements. Therefore, an emergency is hereby declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall be in full force and effect from and after its passage and approval.”

Acts 1994 (2nd Ex. Sess.), No. 64, § 7: Aug. 26, 1994. Emergency clause provided: “It is hereby found and determined by the Seventy-Ninth General Assembly of the State of Arkansas meeting in the Second Extraordinary Session of 1994 that some local governments have an immediate and pressing need to finance capital improvements for criminal justice projects without incurring unnecessary bond issue expenses; that until this act becomes effective, the local governments must either finance those capital improvements through bond issues or delay commencing the capital improvements which would in either case result in greater cost than using the method provided by this act and a greater threat to the general public safety from criminals; and that this act should be given effect immediately in order to minimize the amount of taxes necessary to finance capital improvements for criminal justice purposes and to insure the public safety. Therefore, in order to authorize the people of counties and cities to vote as soon as possible on the issue of levying sales taxes for capital improvements for criminal justice projects, an emergency is hereby declared to exist, and this act being necessary for the immediate preservation of the public peace, health, and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1995, No. 101, § 5: approved Jan. 27, 1995. Emergency clause provided: “It is hereby found and determined by the General Assembly that a number of municipalities and counties in this State have levied a local sales and use tax to be collected only for a specified time or only so long as necessary to retire certain bonded indebtedness; that some of such municipalities and counties have an immediate need to finance capital improvements of a public nature; that under present law such municipalities and counties must, in order to do so, levy an additional tax or wait until the existing tax expires; and that such municipalities and counties should be permitted to finance the needed capital improvements without increasing tax rates by levying a new local sales and use tax at the same rate as the present tax and delay the effective date of the new tax until the expiration of the present. Therefore an emergency is hereby declared to exist and this act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1995, No. 565, § 25: July 1, 1995. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that there are in excess of 300 different local sales and use taxes in effect; that many of these taxes are for specified duration; that notification of affected taxpayers of the beginning and ending of these taxes is time consuming and costly; that requiring local sales and use taxes to begin and end on a calendar quarter basis will ease the administrative burden of taxpayers and the cost to the State of Arkansas; and that an effective date of July 1, 1995 is necessary to achieve the purpose of this legislation. Therefore, an emergency is hereby declared to exist and this act being necessary for the preservation of the public peace, health and safety shall be in full force and effect on and after July 1, 1995.”

Acts 1997, No. 1176, § 20: Jan. 1, 1998.

Acts 1999, No. 1137, § 12: Apr. 6, 1999. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly that the provisions of Act 1176 of 1997 were intended to encourage the establishment of uniform definitions of the term ‘single transaction’ in connection with the levy and collection of local sales and use taxes. However, since the procedures established by the provisions of Act 1176 have caused confusion and have resulted in inconsistent applications of the procedures for adoption of local sales and use taxes, the interests of a number of cities and counties who have otherwise complied fully with the provisions of Arkansas law may be prejudiced. This is a result never intended by the General Assembly and which could result in financial hardships and the reduction of services provided by Arkansas cities and counties. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 1999, No. 1324, § 5: Apr. 12, 1999. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly that the present law allows a one percent (1%) sales tax to be levied by the people to finance capital improvements and that the tax can be levied for no longer than twenty-four (24) months; that in some instances this method of financing is critical to the construction of capital improvements; that the twenty-four (24) month limit on sales taxes is inadequate to finance such capital improvements, that this act would extend the time frame from twenty-four (24) months to sixty (60) months which would enhance the ability to finance major capital improvement programs, and that this act should be given immediate effect in order to authorize the voters to vote as soon as possible upon this issue of levying the tax for sixty (60) months. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2001, No. 1168, § 4: Mar. 28, 2001. Emergency clause provided: “It is found and determined by the General Assembly that municipalities and counties utilize capital improvement bonds to finance needed capital improvements of a public nature and that legislation is needed to clarify and make technical changes to the statutory provisions regarding the levy of local sales and use taxes to be pledged to the retirement of capital improvement bonds. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2003, No. 362, § 3: Mar. 13, 2003. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that municipalities and counties utilize capital improvement bonds to finance needed capital improvements of a public nature; and that this act is immediately necessary because legislation is needed to amend the definition of the federal reserve rate in order to clarify the statutory maximum lawful rate of interest allowed on such bonds. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2003, No. 1273, § 88, as amended by Acts 2005, No. 2008, § 1, and Acts 2007, No. 180, § 1: Jan. 1, 2008. Effective date clause provided: “It is found and determined by the Eighty-fourth General Assembly that the Streamlined Sales and Use Tax Agreement is necessary in order to stop the loss of sales tax revenue due to the rapid growth of internet sales, to level the playing field between local businesses and out-of-state businesses, and to negate the undue burden on interstate commerce; and that this act is necessary in order for Arkansas to be in compliance with the Streamlined Sales and Use Tax Agreement. Under the Streamlined Sales and Use Tax Agreement, when at least ten (10) states comprising at least twenty percent (20%) of the total population, as determined by the 2000 Federal census, of all states imposing a state sales tax have petitioned for membership and have been found to be in compliance with the requirements of the agreement, the agreement will become effective unless a specific effective date is otherwise given. These contingencies were met and the Streamlined Sales and Use Tax Agreement went into effect on October 1, 2005. Pursuant to the Streamlined Sales and Use Tax Agreement, a state may apply to become a party to the Streamlined Sales and Use Tax Agreement by submitting a petition for membership and certificate of compliance to the governing board. The governing board shall then determine if the petitioning state is in compliance with the Streamlined Sales and Use Tax Agreement. A state is in compliance with the Streamlined Sales and Use Tax Agreement if the effect of the state's laws, rules, regulations, and policies is substantially in compliance with the requirements in the Streamlined Sales and Use Tax Agreement. The petitioning state's proposed date of entry to the Streamlined Sales and Use Tax Agreement shall be on the first day of a calendar quarter. It is anticipated that Arkansas will become a full member of the Streamlined Sales and Use Tax Governing Board on January 1, 2008. In order to allow the Department of Finance and Administration and local businesses additional time to prepare for the changes necessary as the result of this act, all of the sections in this act will become effective on January 1, 2008. Thus, any section of this act with a specific effective date shall have an effective date of January 1, 2008, and not the specific effective date provided in the introductory language to the section, and when no effective date was listed in the section, then the effective date will also be January 1, 2008.”

Acts 2005, No. 1551, § 8: Apr. 5, 2005. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the ability of local entities to issue bonds is an important component to the state economy; that laws concerning local capital improvement bonds are in need of immediate clarification in order to allow cities and counties to properly issue bonds for the benefit of the city, county, and state. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2007, No. 166, § 9: Feb. 28, 2007. Emergency clause provided: “It is found and determined by the General Assembly that the current procedure for revenue distribution to the regional airport beneficiaries is cumbersome and inefficient; that the regional airport beneficiaries of the funds levied under the Regional Airport Act are suffering material adverse consequences under current procedures; and that accelerated receipt of those funds is appropriate. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2009, No. 1480, § 117: Apr. 10, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act makes various revisions to Arkansas election laws that are designed to improve the administration of elections and special elections and that these revisions should be implemented as soon as possible so that the citizens of this state may benefit from improved election procedures. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2011, No. 287, § 2: Mar. 15, 2011. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the voters of the state have approved Issue No. 2 at the general election held November 2, 2010; that Issue No. 2 removed the interest rate limitation on bonds set forth in Amendment 62 of the Arkansas Constitution of 1874; that bonds are issued under the authority of Amendment 62 of the Arkansas Constitution of 1874 under § 14-164-301 et seq.; that the interest limit on bonds issued under § 14-164-301 et seq. must be removed; and that this act is immediately necessary to allow municipalities and counties to issue bonds at market rates to fund voter-approved capital improvement projects. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2011, No. 828, § 11, effective Oct. 1, 2011, provides: “Sections 1 through 10 of this act are effective on the first day of the calendar quarter following the effective date of this act.”

Acts 2013, No. 1241, § 4: Apr. 16, 2013. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that there is a shortage of moneys at the municipal and county level to fund contracts for surface transportation projects for which there is an immediate need in this state; that municipalities and counties can obtain funding for surface transportation projects by issuing bonds; and that this act is immediately necessary because municipalities and counties need to have the authority, with voter approval, to issue bonds payable from their share of collections of the temporary one-half percent (0.5%) sales and use tax levied under Amendment 91 to the Arkansas Constitution to finance surface transportation projects. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

Research References

U. Ark. Little Rock L.J.

Legislative Survey, Bonds, 8 U. Ark. Little Rock L.J. 551.

14-164-301. Title.

This subchapter shall be referred to and may be cited as the “Local Government Bond Act of 1985.”

History. Acts 1985, No. 871, § 1; A.S.A. 1947, § 13-1239.

A.C.R.C. Notes. It is questionable whether Ark. Const., Art. 49 is repealed in whole or whether only those provisions that conflict with Ark. Const., Art. 62 are repealed by Ark. Const., Art. 62.

14-164-302. Legislative intent.

The people of the State of Arkansas by the adoption of Arkansas Constitution, Amendment 62, have expressed their intention to provide county and municipal governments expanded powers and authority with respect to the creation of bonded indebtedness for capital improvements of a public nature and the financing of economic development projects, and have empowered the General Assembly to define and prescribe certain matters with respect to the exercise of this power and authority. To that end this subchapter is adopted to enable the accomplishment and realization of the public purposes intended by Arkansas Constitution, Amendment 62, and is not intended to otherwise limit in any manner the exercise of the powers of counties and municipalities.

History. Acts 1985, No. 871, § 2; A.S.A. 1947, § 13-1240; Acts 2017, No. 533, § 1.

Amendments. The 2017 amendment substituted “economic development projects” for “facilities for the securing and developing of industry” in the first sentence; and made stylistic changes.

14-164-303. Definitions.

As used in this subchapter:

  1. “Bonds” means bonds issued pursuant to this subchapter or under Arkansas Constitution, Amendment 62, if issued prior to the enactment hereof;
  2. “Capital improvements of a public nature” or “capital improvements” for the purposes of Arkansas Constitution, Amendment 62, and this subchapter means whether obtained by purchase, lease, construction, reconstruction, restoration, improvement, alteration, repair, or other means:
    1. Any physical public betterment or improvement or any preliminary plans, studies, or surveys relative thereto;
    2. Land or rights in land, including, without limitation, leases, air rights, easements, rights-of-way, or licenses; and
    3. Any furnishings, machinery, vehicles, apparatus, or equipment for any public betterment or improvement, which shall include, without limiting the generality of the foregoing definition, the following:
      1. City or town halls, courthouses, and administrative, executive, or other public offices;
      2. Court facilities;
      3. Jails;
      4. Police and sheriff stations, apparatus, and facilities;
      5. Firefighting facilities and apparatus;
      6. Public health facilities and apparatus;
      7. Hospitals, nursing homes, and other healthcare facilities;
      8. Facilities for nonprofit organizations engaged primarily in public health, health systems support, safety, disaster relief, and related activities;
      9. Residential housing for low and moderate income, elderly, or individuals with disabilities and families;
      10. Parking facilities and garages;
      11. Animal control facilities and apparatus;
      12. Economic development facilities;
      13. Education and training facilities;
      14. Auditoriums;
      15. Stadiums and arenas;
      16. Convention, meeting, or entertainment facilities;
      17. Ambulance and other emergency medical service facilities;
      18. Civil defense or early warning facilities and apparatus;
      19. Air and water pollution control facilities;
      20. Drainage and flood control facilities;
      21. Storm sewers;
      22. Arts and crafts centers;
      23. Museums and related audiovisual facilities;
      24. Libraries;
      25. Public parks, playgrounds, or other public open space;
      26. Marinas;
      27. Swimming pools, tennis courts, golf courses, camping facilities, gymnasiums, and other recreational facilities;
      28. Tourist information and assistance centers;
      29. Historical, cultural, natural, or folklore sites;
      30. Fair and exhibition facilities;
      31. Streets and street lighting, alleys, sidewalks, roads, bridges, viaducts, tunnels, overpasses, underpasses, interchanges, access roads, pedestrian walkways, and traffic control devices and improvements;
      32. Airports, passenger or freight terminals, hangars, and related facilities;
      33. Barge terminals, ports, harbors, ferries, wharves, docks, and similar marine services;
      34. Slack water harbors, water resource facilities, waterfront development facilities, and navigational facilities;
      35. Public transportation facilities;
      36. Public water systems and related transmission and distribution facilities, storage facilities, wells, impounding reservoirs, treatment plants, lakes, dams, watercourses, and water rights;
      37. Sewage collection systems and treatment plants;
      38. Maintenance and storage buildings and facilities;
      39. Incinerators;
      40. Garbage and solid waste collection disposal, compacting, and recycling facilities of every kind;
      41. Facilities for the generation, transmission, and distribution of television communications;
      42. Gas and electric generation, transmission, and distribution systems, including, without limiting the generality of the foregoing, hydroelectric generating facilities, dams, powerhouses, and related facilities;
      43. Social and rehabilitative service facilities;
      44. Communications facilities and apparatus;
      45. Facilities and apparatus for voice, data, broadband, video, or wireless telecommunications services; and
      46. Energy efficiency facilities and apparatus;
  3. “Chief executive” means the mayor of a municipality or the county judge of a county;
  4. “Clerk” means the clerk or recorder of a municipality or county clerk of a county;
  5. “County” means any county in the State of Arkansas;
  6. [Repealed.]
  7. “Economic development projects” means the land, buildings, furnishings, equipment, facilities, infrastructure, and improvements that are required or suitable for the development, retention, or expansion of:
    1. Manufacturing, production, and industrial facilities;
    2. Research, technology, and development facilities;
    3. Recycling facilities;
    4. Distribution centers;
    5. Call centers;
    6. Warehouse facilities;
    7. Job training facilities;
    8. Regional or national corporate headquarters facilities; and
    9. Sports complexes designed to host local, state, regional, and national competitions, including without limitation baseball, softball, and other sports tournaments;
  8. “Infrastructure” means:
    1. Land acquisition;
    2. Site preparation;
    3. Road and highway improvements;
    4. Rail spur, railroad, and railport construction;
    5. Water service;
    6. Wastewater treatment;
    7. Employee training, which may include equipment for such purpose; and
    8. Environmental mitigation or reclamation;
  9. “Issuer” means a municipality or a county;
  10. “Legislative body” means the quorum court of a county or the board of directors, board of commissioners, or similar elected governing body of a city or town;
  11. “Local sales and use tax”, as used in §§ 14-164-327 — 14-164-339, means a tax on the receipts from sales at retail within a municipality or county of all items and services which are subject to taxation under the Arkansas Gross Receipts Act of 1941, § 26-52-101 et seq., and a tax on the receipts for storing, using, or consuming tangible personal property or taxable services under the Arkansas Compensating Tax Act of 1949, § 26-53-101 et seq.;
  12. “Municipality” means any city or incorporated town in the State of Arkansas;
  13. “Ordinance” means an ordinance, resolution, or other appropriate legislative enactment of a legislative body; and
  14. “Surface transportation project” means a project that involves the acquisition, construction, reconstruction, widening, extension, or maintenance of streets, alleys, or roadways, including without limitation bridges, viaducts, tunnels, overpasses, underpasses, interchanges, access roads, sidewalks, lighting, pedestrian walkways, curbs, gutters, other drainage structures and improvements, street lighting, traffic control devices and improvements, land and right-of-way acquisitions, and any project related thereto.

History. Acts 1985, No. 871, §§ 3, 9; A.S.A. 1947, §§ 13-1241, 13-1247; Acts 1987, No. 368, § 1; 1988 (4th Ex. Sess.), No. 26, § 1; 1991, No. 645, § 1; 1991, No. 646, § 1; 1997, No. 208, § 11; 1997, No. 1176, § 1; 1999, No. 1137, § 1; 2003, No. 362, § 1; 2003, No. 1273, §§ 12, 76, 77; 2005, No. 1551, §§ 1-4; 2013, No. 1241, §§ 1, 2; 2017, No. 533, §§ 2-4; 2019, No. 703, § 1; 2019, No. 910, § 3380; 2019, No. 1072, § 3.

A.C.R.C. Notes. Acts 1997, No. 208, § 1, as reenacted by Acts 2017, No. 255, § 1, provided: “Legislative intent and purpose. The General Assembly hereby acknowledges that many of the laws relating to individuals with disabilities are antiquated, functionally outmoded, derogatory, and ambiguous or are inconsistent with more recently enacted provisions of the law. Consequently, it is the intent of the General Assembly and the purpose of this act to clarify the relevant chapters of Titles 1, 6, 9, 13, 14, 16, 17, 20, 22, 23, and 27 of the Arkansas Code of 1987 Annotated.”

Act 1999, No. 1137, § 8, provided:

“It is the express intent of the General Assembly that this act be applied retroactively to any city or county ordinance adopted after January 1, 1998, as it is remedial and procedural in nature.”

Acts 2003, No. 362, § 2, provided:

“This act applies retroactively to bonds approved at elections held on or after January 9, 2003.”

Acts 2003, No. 1273, § 1, provided:

“Fundamental purpose.

“(a) In order to allow Arkansas to enter into a Streamlined Sales and Use Tax Agreement, Arkansas must simplify and modernize its sales and use tax laws.

“(b) The Streamlined Sales and Use Tax Agreement focuses on improving sales and use tax administration systems for all sellers and for all types of commerce through all of the following:

“(1) State level administration of sales and use tax collections;

“(2) Uniformity in the state and local tax bases;

“(3) Uniformity of major tax base definitions;

“(4) Central, electronic registration system for all member states;

“(5) Simplification of state and local tax rates;

“(6) Uniform sourcing rules for all taxable transactions;

“(7) Simplified administration of exemptions;

“(8) Simplified tax returns;

“(9) Simplification of tax remittances; and

“(10) Protection of consumer privacy.

“(c) The Director of the Department of Finance and Administration may enter into the Streamlined Sales and Use Tax Agreement, as described in subsections (a) and (b) of this section, upon the agreement's going into effect as outlined by that agreement.

“(d)(1) The General Assembly has the authority to establish the parameters of state and local sales and use taxes, including the application, exemptions, limitations, and administration of those taxes.

“(2) The changes to existing law effectuated by this act are intended as an expression of the General Assembly's authority to modify the parameters of state and local sales and use taxes, and the changes are not intended as a revocation or restraint of the power of cities and counties to levy local sales and use taxes.

“(3) It is the intent of the General Assembly that any modifications to the application or administration of local sales and use taxes resulting from this act shall not require the approval of local voters, and that the modifications shall not invalidate existing local sales and use taxes.”

Publisher's Notes. The Arkansas Gross Receipts Tax Act of 1941, referred to in this section is codified as §§ 26-52-10126-52-107, 26-52-20126-52-208, 26-52-301, 26-52-303, 26-52-306, 26-52-307, 26-52-401, 26-52-402, 26-52-50126-52-503, 26-52-508, and 26-52-510.

The Arkansas Compensating Tax Act of 1949, referred to in this section, is codified as §§ 26-53-10126-53-106, 26-53-112, 26-53-114, 26-53-12126-53-127.

Amendments. The 2003 amendment by No. 362 substituted “the rate for primary credit, or its functional equivalent” for “the federal reserve discount rate on ninety-day commercial paper” in (a)(7).

The 2003 amendment by No. 1273 in (a)(12), inserted “and services” and “or taxable services” and deleted “Tax” following “Gross Receipts” and “as amended” following “1941” and “1949”; and deleted (b).

The 2005 amendment substituted “other health care” for “similar extended care” in (2)(C)(vii); substituted “Animal control facilities and apparatus” for “Educational facilities”; deleted “for public employees” from the end of (2)(C)(xiii); added “and arenas” in (2)(C)(xv); inserted “or early warning” following “defense” and added “and apparatus” at the end of (2)(C)(xviii); added (2)(C)(xliv) and made a related change.

The 2013 amendment added “tunnels, overpasses, interchanges, access ... devices and improvements” in (2)(C)(xxxi); and added the definition for “Surface transportation project”.

The 2017 amendment repealed former (7) through (9); added the definitions for “Economic development projects” and “Infrastructure”; and deleted “council” preceding “board of directors” in present (10).

The 2019 amendment by No. 703 added (2)(C)(xlv) and (2)(C)(xlvi).

The 2019 amendment by No. 910 repealed (6).

The 2019 amendment by No. 1072 added (7)(I).

Research References

U. Ark. Little Rock L.J.

Survey — Bonds, 10 U. Ark. Little Rock L.J. 545.

Case Notes

Cited: Paragould Cablevision, Inc. v. Paragould, 930 F.2d 1310 (8th Cir. Ark. 1991).

14-164-304. Construction.

This subchapter shall be construed liberally to effectuate the legislative intent and the purposes of this subchapter as complete and independent authority for the performance of each and every act and thing herein authorized and all powers herein granted shall be broadly interpreted to effectuate the intent and purposes and not as a limitation of powers.

History. Acts 1985, No. 871, § 22; A.S.A. 1947, § 13-1259.

Case Notes

Cited: Keeton v. Barber, 305 Ark. 147, 806 S.W.2d 363 (1991).

14-164-305. Subchapter supplemental.

  1. It is the specific intent of this subchapter that this subchapter, and in particular §§ 14-164-326 — 14-164-339, be supplemental to other constitutional or statutory provisions that may provide for the financing of capital improvements of a public nature or economic development projects.
  2. Nothing contained in this subchapter shall be deemed to be a restriction or limitation upon alternative means of financing previously available or hereafter made available to municipalities or counties for the purposes set forth in this subchapter.

History. Acts 1985, No. 871, § 21; A.S.A. 1947, § 13-1258; Acts 1991, No. 646, § 2; 2017, No. 533, § 5; 2019, No. 383, § 17.

Amendments. The 2017 amendment, in (a), deleted “the provisions of” following “this subchapter that”, substituted “§§ 14-164-32614-164-339, be” for “§§ 14-164-326 to 14-164-339, are” and “economic development projects” for “the securing and developing of industry”, and made stylistic changes.

The 2019 amendment deleted “§ 14-164-303(b) [repealed] and” following “particular” in (a).

14-164-306. Venue.

For the purposes of this subchapter, when it is necessary to determine whether publication or other activity has taken place within a municipality lying in more than one (1) county, or where suit shall be filed contesting an election in that municipality, then the publication, activity, or suit shall take place in the county in which a majority of the people living in the municipality reside.

History. Acts 1985, No. 871, § 17; A.S.A. 1947, § 13-1255.

14-164-307. Financing of economic development projects.

To provide for the financing of economic development projects, municipalities and counties may own, acquire, construct, reconstruct, extend, equip, improve, operate, maintain, sell, lease, contract concerning, and otherwise deal in or dispose of any economic development projects.

History. Acts 1985, No. 871, § 6; A.S.A. 1947, § 13-1244; Acts 2017, No. 533, § 6.

Amendments. The 2017 amendment substituted “economic development projects” for “facilities for industry” in the section heading; substituted “economic development projects” for “facilities for the securing, developing, preserving, and maintaining of industry” following “financing of”, “may” for “are authorized to”, “and” for “or” preceding “otherwise,” and “economic development projects” for “industrial facilities” at the end.

14-164-308. Bonds generally — Authorizing ordinance.

Whenever a legislative body determines the need to issue bonds for capital improvements or economic development projects, the legislative body shall authorize the issuance of the bonds by ordinance specifying the principal amount of bonds to be issued, the purpose or purposes for which the bonds are to be issued, and the maximum rate of any ad valorem tax to be levied and pledged to the retirement of the bonds.

History. Acts 1985, No. 871, § 4; A.S.A. 1947, § 13-1242; Acts 2017, No. 533, § 6.

Amendments. The 2017 amendment substituted “improvements or economic development projects” for “improvement or industrial development purposes” and “the legislative body” for “it”.

Case Notes

Purpose for Issuance.

Where ordinance described courthouse improvements but did not make any reference to the construction of a parking lot, the parking lot construction was not authorized by the ordinance. Keeton v. Barber, 305 Ark. 147, 806 S.W.2d 363 (1991).

14-164-309. Bonds generally — Election to authorize issuance.

  1. The question of the issuance of such bonds shall be submitted to the electors of the county or municipality at the general election or at a special election called for that purpose in accordance with § 7-11-201 et seq., as provided in the ordinance and held in the manner provided in this subchapter.
  2. Except as otherwise provided in this subchapter, the election shall be held and conducted in the same manner as a special or general election under the election laws of the state.
  3. The ordinance shall set forth the form of the ballot question or questions, which shall include a statement of the purpose or purposes for which the bonds are to be issued and the maximum rate of any ad valorem tax to be levied for payment of bonded indebtedness.
  4. Notice of the election shall be given by the clerk of the issuer by one (1) publication in a newspaper having general circulation within the municipality or county not less than ten (10) days prior to the election. No other publication or posting of a notice by any other public official shall be required.
  5. The chief executive officer of the municipality or county shall proclaim the results of the election by issuing a proclamation and publishing it one (1) time in a newspaper having general circulation within the municipality or county.
    1. The results of the election as stated in the proclamation shall be conclusive unless suit is filed in the circuit court in the county in which the issuer is located within thirty (30) days after the date of the publication.
    2. No other action shall be maintained to challenge the validity of the bonds and of the proceedings authorizing the issuance of the bonds unless suit is filed in such circuit court within thirty (30) days after the date of the adoption of an ordinance authorizing the sale of the bonds.

History. Acts 1985, No. 871, § 4; A.S.A. 1947, § 13-1242; Acts 2005, No. 2145, § 47; 2007, No. 1049, § 68; 2009, No. 1480, § 87.

Publisher's Notes. Acts 1985, No. 871, § 18, provided that any election called for the purpose of authorizing bonds for capital improvements or industrial development and any ordinances or resolutions of a legislative body or orders of a county court adopted in connection therewith prior to the effective date of that act would be deemed ratified and in full compliance with that act if the ordinance, order, or resolution calling the election or notice of the election was published at least one (1) time in a newspaper of general circulation in the municipality or county and all other procedures followed applied substantially with the provisions of that act.

Acts 1985, No. 871, § 23 provided that any election theretofore called or held in substantial compliance with Acts 1985, No. 24 [repealed], for the purpose of authorizing bonds for capital improvements or industrial development, and any ordinances, resolutions, or proclamations of a legislative body or an executive officer of a legislative body adopted in connection therewith including, without limitation, any levy of a tax authorized under Acts 1985, No. 24 [repealed], would be deemed conclusively to have been accomplished in full compliance with Acts 1985, No. 871.

Amendments. The 2009 amendment substituted “§ 7-11-201 et seq.” for “§ 7-5-103(b)” in (a).

Case Notes

Cited: Paragould Cablevision, Inc. v. Paragould, 930 F.2d 1310 (8th Cir. Ark. 1991).

14-164-310. Bonds generally — Terms and conditions.

  1. As the ordinance or trust indenture as authorized in this subchapter may provide, the bonds may:
    1. Be in registered or other form;
    2. Be in such denominations;
    3. Be exchangeable for bonds of another denomination;
    4. Be made payable at such places within or without the state;
    5. Be issued in one (1) or more series;
    6. Bear such date or dates;
    7. Mature at such time or times;
    8. Be payable in such medium of payment;
    9. Be subject to such terms of redemption; and
    10. May contain such other terms, covenants, and conditions, including, without limitation, those pertaining to:
      1. The custody and application of the proceeds of the bonds;
      2. The collection and disposition of tax collections;
      3. The maintenance of various funds and reserves;
      4. The nature and extent of the pledge and security;
      5. The maintaining of taxes;
      6. The remedies on default;
      7. The rights, duties, and obligations of the legislative body of the issuer and the trustee, if any, for the owners of the bonds; and
      8. The rights of the owners of the bonds.
  2. All bonds and notes issued under the provisions of this subchapter shall be and are declared to be negotiable instruments within the meaning of the negotiable instruments law of the state.

History. Acts 1985, No. 871, §§ 5, 16; A.S.A. 1947, §§ 13-1243, 13-1254.

14-164-311. Bonds generally — Interest rates.

Bonds may bear the rate or rates of interest that the ordinance or trust indenture authorized in § 14-164-310(a) provides.

History. Acts 1985, No. 871, § 5; A.S.A. 1947, § 13-1243; Acts 2011, No. 287, § 1.

Amendments. The 2011 amendment rewrote the section.

14-164-312. Bonds generally — Trust indenture.

  1. The ordinance authorizing the bonds may provide for the execution by the chief executive officer of the issuer of a trust indenture which defines the rights of the owners of the bonds and provides for the appointment of a trustee for the owners of the bonds.
  2. The trust indenture may provide for the priority between and among successive issues and may contain any of the provisions set forth in § 14-164-310 and any other terms, covenants, and conditions that are deemed desirable.
  3. A municipality or county is not required to publish an indenture or other agreement if:
    1. The ordinance that authorizes the indenture or other agreement:
      1. Is published as required by law governing the publication of an ordinance; and
      2. States that a copy of the indenture or other agreement is on file in the office of the clerk or recorder of the municipality or county for inspection by an interested person; and
    2. A copy of the indenture or other agreement is filed in the office of the clerk or recorder of the municipality or county.

History. Acts 1985, No. 871, § 5; A.S.A. 1947, § 13-1243; Acts 2007, No. 603, § 1.

14-164-313. Bonds generally — Contents.

It shall be plainly stated on the face of each bond that it has been issued under the provisions of Arkansas Constitution, Amendment 62 and this subchapter.

History. Acts 1985, No. 871, § 5; A.S.A. 1947, § 13-1243.

14-164-314. Bonds generally — Execution.

The bonds shall be executed in the manner provided by the Registered Public Obligations Act of Arkansas, § 19-9-401 et seq., as that act may be amended.

History. Acts 1985, No. 871, § 5; A.S.A. 1947, § 13-1243.

14-164-315. Bonds generally — Sale.

Bonds may be sold at public or private sale for such price, including without limitation sale at a discount, and in such manner as the legislative body of the issuer may determine.

History. Acts 1985, No. 871, §§ 5, 7; A.S.A. 1947, §§ 13-1243, 13-1245; Acts 2017, No. 533, § 7.

Amendments. The 2017 amendment deleted former (b); deleted the (a) designation; substituted “Bonds” for “Except as provided in subsection (b) of this section, the bonds”; and made a stylistic change.

14-164-316. Bonds generally — Pledge of taxes generally.

The bonds shall be secured by, and contain a pledge of, any tax or combination of taxes authorized to pay the bonded indebtedness and shall be payable solely from the taxes authorized by this subchapter. However, the issuer is not prohibited from using other taxes, revenues, or receipts to retire the bonds.

History. Acts 1985, No. 871, § 5; A.S.A. 1947, § 13-1243.

14-164-317. Bonds generally — Pledge and collection of ad valorem taxes.

  1. The ad valorem tax pledged for payment of bonds shall constitute a special fund pledged as security for the payment of such indebtedness.
  2. The ad valorem tax shall never be extended for any other purpose, nor collected for any greater length of time than necessary to retire the bonded indebtedness.
  3. Upon retirement on the bonded indebtedness, any surplus tax collections which may have accumulated shall be transferred to the general fund of the issuer.
  4. The collection of ad valorem taxes, or a portion thereof, may be suspended by the issuer when not required for the payment of the bonds, subject to any covenants with the owners of the bonds.

History. Acts 1985, No. 871, § 8; A.S.A. 1947, § 13-1246; Acts 2017, No. 533, § 8.

Amendments. The 2017 amendment deleted (b)(2) and (b)(3); deleted the (b)(1) designation; and made a stylistic change.

14-164-318. Bonds generally — Successive issues.

There may be successive bond issues for the purpose of financing the same capital improvements.

History. Acts 1985, No. 871, § 5; A.S.A. 1947, § 13-1243.

14-164-319. Bonds generally — Mortgage lien — Definition.

  1. The ordinance or trust indenture authorized in § 14-164-310 or § 14-164-312 may, but need not, impose a foreclosable mortgage lien upon the capital improvements or economic development projects financed with the proceeds of bonds issued under this subchapter.
  2. The nature and extent of the mortgage lien imposed under subsection (a) of this section may be controlled by the ordinance or trust indenture, including without limitation provisions:
    1. Pertaining to the release of all or part of the land, buildings, or facilities from the mortgage lien;
    2. Pertaining to the priority of the mortgage lien in the event of successive bond issues; and
    3. Authorizing any owner of bonds, or a trustee on behalf of all owners, either at law or in equity, to enforce the mortgage lien and, by proper suit, compel the performance of the duties of the officials of the issuer set forth in this subchapter or in the ordinance or trust indenture authorizing and securing the bonds.
  3. As used in this section, “mortgage lien” includes a security interest in any personal property constituting the capital improvements or economic development projects, or part of the capital improvements or economic development projects, financed with the proceeds of bonds issued under this subchapter.

History. Acts 1985, No. 871, § 13; A.S.A. 1947, § 13-1251; Acts 2017, No. 533, § 9.

Amendments. The 2017 amendment added “— Definition” in the section heading; substituted “economic development projects” for “industrial facilities” in (a); substituted “the mortgage lien imposed under subsection (a) of this section” for “such mortgage lien” in the introductory language of (b); rewrote (c); and made stylistic changes.

14-164-320. Bonds generally — Liability.

No officer, employee, or member of the legislative body of the issuer shall be personally liable on any bonds issued under the provisions of this subchapter or for any damages sustained by any person in connection with any contracts entered into to carry out the purposes and intent of this subchapter unless that person has acted with a corrupt intent.

History. Acts 1985, No. 871, § 19; A.S.A. 1947, § 13-1257.

14-164-321. Bonds generally — Tax exemption.

Bonds and notes issued under the provisions of this subchapter and the income thereon shall be exempt from all state, county, and municipal taxes, including, without limitation, all income, property, and inheritance taxes.

History. Acts 1985, No. 871, § 15; A.S.A. 1947, § 13-1253.

14-164-322. Bonds generally — Multipurpose bonds.

  1. When bonds are to be issued for more than one (1) purpose the principal amount of bonds applicable to each purpose shall be stated on the ballot as a separate question and no bonds shall be issued for such purpose unless a majority of the electors voting on each separate question shall have approved the issuance of bonds for such purpose.
  2. Bonds that are approved by the electors for more than one (1) purpose may be combined into a single issue.

History. Acts 1985, No. 871, §§ 4, 5; A.S.A. 1947, §§ 13-1242, 13-1243.

14-164-323. Bonds generally — Interim borrowing.

  1. If the issuance of bonds is authorized in accordance with the provisions of this subchapter, a municipality or county is authorized to obtain interim financing pending the delivery of all or any part of the bonds from such sources and upon such terms as the municipality or the county shall determine.
  2. As evidence of any indebtedness so incurred, the municipality or the county may execute and deliver its promissory note, or notes, and pledge to the payment thereof the tax or taxes approved by the voters to be pledged to the bonds, and to otherwise secure the notes as bonds issued under this subchapter may be secured.
  3. The notes may bear such date or dates, may mature at such time or times, not exceeding three (3) years from their respective dates, may bear interest at such rate or rates, may be in such form, may be executed in such manner, may be payable at such place or places, may contain such provisions for prepayment prior to maturity and may contain such other terms, or covenants, and conditions as the ordinance may provide which are not inconsistent with the provisions of this subchapter.

History. Acts 1985, No. 871, § 14; A.S.A. 1947, § 13-1252.

14-164-324. Refunding bonds.

  1. Bonds may be issued under this subchapter for the purpose of refunding any outstanding bonds issued pursuant to Arkansas Constitution, Amendment 62, or prior amendments to the Arkansas Constitution repealed by Arkansas Constitution, Amendment 62.
    1. The refunding bonds may be either sold for cash or delivered in exchange for the outstanding obligations.
    2. If sold for cash, the proceeds may be either applied to the payment of the obligations refunded or deposited in irrevocable trust for the retirement thereof either at maturity or on an authorized redemption date.
    1. Bonds issued to refund outstanding bonds that were issued under Arkansas Constitution, Amendment 62, shall in all respects be authorized and issued in the manner provided for the bonds being refunded.
      1. However, if the refunding bonds are not in a greater principal amount than the bonds being refunded, the question of issuing the refunding bonds need not be submitted at an election.
      2. Any premium paid as part of the purchase price of the refunding bonds shall not be taken into account in calculating the principal amount of the refunding bonds.
    1. The ordinance under which the refunding bonds are issued may provide that any refunding bonds shall have the same priority of lien on all sources of taxation or other income as originally pledged for payment of the obligation refunded thereby.
    2. Alternatively, the ordinance may provide that refunding bonds to be issued to refund indebtedness originally created under Arkansas Constitution, Amendment 13 [repealed], Arkansas Constitution, Amendment 17 [repealed], Arkansas Constitution, Amendment 25 [repealed], or Arkansas Constitution, Amendment 49 [repealed], may be issued and secured in the manner provided in Arkansas Constitution, Amendment 62, and this subchapter if the question of the issuance of the refunding bonds is submitted to the electors in the manner provided in § 14-164-309.
    1. Bonds may also be issued under the provisions of this subchapter for the purpose of refunding any outstanding short-term financing obligation issued under Arkansas Constitution, Amendment 78, or revenue bonds, including bonds secured in whole or in part by revenues derived from any special tax pledged to secure the bonds, issued, whether or not issued prior or subsequent to April 15, 1985, to finance capital improvements of a public nature if the question of the issuance of the refunding bonds is submitted to the electors in the manner provided in § 14-164-309.
      1. The refunding bonds may be either sold for cash or delivered in exchange for the outstanding obligations.
      2. If sold for cash, the proceeds may either be applied to the payment of the bonds being refunded or deposited in an irrevocable trust for the retirement thereof at maturity or on an authorized redemption date.

History. Acts 1985, No. 871, § 12; A.S.A. 1947, § 13-1250; Acts 2005, No. 1551, § 5; 2017, No. 533, §§ 10, 11.

A.C.R.C. Notes. It is questionable whether Ark. Const. Amends. 13, 17, 25 and 49 are repealed in whole or whether only those provisions that conflict with Ark. Const., Art. 62 are repealed by Ark. Const., Art. 62.

Amendments. The 2005 amendment rewrote the first sentence in (c), which formerly read: “Refunding bonds shall in all respects be authorized, issued, and secured in the manner provided for the bonds being refunded, and shall have all the attributes of the refunded bonds.”

The 2017 amendment redesignated former (c) as (c)(1) and (c)(2)(A); added (c)(2)(B); in (e)(1), inserted “short-term financing obligation issued under Arkansas Constitution, Amendment 78, or” and substituted “to secure the bonds” for “thereto”; and made a stylistic change.

14-164-325. Taxes not state revenues.

It is the express intent of the General Assembly that any tax levied under the authority of this subchapter by a municipality or county to finance capital improvements of a public nature or economic development projects shall not constitute revenues of the state within the meaning of any constitutional or statutory provisions, but the tax levied under this subchapter shall at all times continue to be revenues of the particular municipality or county notwithstanding the participation or involvement, for the convenience of administration, by the Secretary of the Department of Finance and Administration or the Treasurer of State in the manner authorized in this subchapter in any phase of collection, holding, or distribution of proceeds of any tax authorized under this subchapter.

History. Acts 1985, No. 871, § 2; A.S.A. 1947, § 13-1240; Acts 2017, No. 533, § 12; 2019, No. 910, § 3381.

Amendments. The 2017 amendment substituted “to finance” for “for the purpose of financing”, “economic development projects” for “facilities for the securing and developing of industry”, “the tax levied under this subchapter” for “such tax”, and “Treasurer of State” for “State Treasurer”.

The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration”.

14-164-326. Capital improvement bonds — Hotel and restaurant tax.

  1. Any municipality levying a tax upon the gross receipts of hotel and motel accommodations or upon the gross receipts of restaurants, cafes, cafeterias, and similar establishments is authorized to pledge all or a specified portion of the receipts of such tax to the retirement of bonds for capital improvements.
  2. However, no such pledge or the issuance of such bonds shall be effective unless the pledge or the issuance of the bonds has been approved by a majority of the electors of the municipality voting on the question at an election held substantially in the manner provided in § 14-164-328.

History. Acts 1985, No. 871, § 11; A.S.A. 1947, § 13-1249.

14-164-327. Capital improvement bonds — Local sales and use tax — Levy.

    1. In lieu of or in addition to the levying of an ad valorem tax to retire bonds for capital improvements or for financing economic development projects, the legislative body of a municipality or county may adopt an ordinance levying a local sales and use tax in the amount of one-eighth of one percent (0.125%), one-fourth of one percent (0.25%), one-half of one percent (0.5%), three-fourths of one percent (0.75%), one percent (1%), or any combination of these amounts to retire the bonds in accordance with the terms of this section and §§ 14-164-328 — 14-164-335.
      1. The ordinance may levy multiple taxes.
      2. However, there shall not be in effect at any one (1) time taxes levied under this subchapter at an aggregate rate greater than one percent (1%).
  1. A certified copy of the ordinance or ordinances authorizing the levy of a local sales and use tax or taxes and the issuance of bonds secured by the taxes shall be provided to the Secretary of the Department of Finance and Administration and to the Treasurer of State as soon as practicable after the adoption of the taxes.
  2. Section 26-74-414(b) does not apply to a local sales and use tax levied by a county under this subchapter for the sole purpose of retiring bonds for capital improvements or economic development projects if all collections derived from the local sales and use tax are pledged by the county to pay the principal and interest of the bonds for capital improvements or economic development projects.

History. Acts 1985, No. 871, § 9; A.S.A. 1947, § 13-1247; Acts 1991, No. 765, § 1; 2001, No. 1168, § 1; 2005, No. 1551, § 6; 2007, No. 603, § 2; 2011, No. 276, § 1; 2017, No. 533, §§ 13, 14; 2019, No. 910, § 3382.

Amendments. The 2005 amendment inserted “one-eighth of one percent (0.125%)” in (a).

The 2011 amendment added (c).

The 2017 amendment substituted “improvements or for financing economic development projects” for “improvement purposes” in (a)(1); and twice substituted “bonds for capital improvements or economic development projects” for “capital improvement bonds” in (c).

The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (b).

Case Notes

Cited: Hasha v. City of Fayetteville, 311 Ark. 460, 845 S.W.2d 500 (1993).

14-164-328. Capital improvement bonds — Local sales and use tax — Election to authorize.

      1. On the date of adoption of an ordinance levying a local sales and use tax or taxes to retire the bonds for capital improvements or economic development projects, or within thirty (30) days following the adoption of the ordinance, the municipality or county shall provide by ordinance for the calling and holding of an election on the issuance of the bonds to which the tax or taxes will be pledged as provided in § 14-164-309.
      2. The ordinance levying the tax may also call the election.
      1. In addition to the requirements of § 14-164-309 and in lieu of a reference to an ad valorem tax, if none is to be levied, there shall be set forth on the ballot a statement that a local sales and use tax or taxes shall be levied and pledged to the retirement of the bonds approved by the voters.
      2. The percentage rate for each tax shall also be specified on the ballot.
    1. Following the election, the chief executive of the municipality or county shall issue his or her proclamation of the results of the election with reference to the bonds.
    2. The proclamation shall be published one (1) time in a newspaper having general circulation in the municipality or county.
    1. Any person desiring to challenge the results of the election as published in the proclamation shall file a challenge in the circuit court in which the municipality or county is located within thirty (30) days of the date of publication of the proclamation.
    2. Hearings of such matters of litigation shall be advanced on the docket of the courts and disposed of at the earliest feasible time.

History. Acts 1985, No. 871, § 9; A.S.A. 1947, § 13-1247; Acts 1991, No. 765, § 2; 2001, No. 1168, § 2; 2017, No. 533, § 15.

Amendments. The 2017 amendment inserted “for capital improvements or economic development projects” in (a)(1)(A).

14-164-329. Capital improvement bonds — Local sales and use tax — Effective dates for imposition and termination of tax levy.

  1. The levy of a local sales and use tax shall not be effective until after the election has been held and the issuance of bonds has been approved by the voters and the Secretary of the Department of Finance and Administration has been given ninety (90) days' notice.
  2. In order to provide time for the preparations for election set forth in this section and to provide for the accomplishment of the administrative duties of the secretary, the following effective dates are applicable with reference to any such ordinance levying such tax:
      1. If an election challenge is not filed within thirty (30) days of the date of publication of the proclamation of the results of the election, the tax shall become effective on the first day of the first month of the calendar quarter after the expiration of the thirty-day period for challenge and after a minimum of sixty (60) days' notice has been provided by the secretary to sellers unless delayed under subdivision (b)(3) of this section.
      2. A rate change on a purchase from a printed catalog in which the purchaser computed the tax based on local tax rates published in the catalog will be applicable on the first day of a calendar quarter after a minimum of one hundred twenty (120) days' notice by the secretary to the sellers.
      3. For sales and use tax purposes only, a local boundary change will become effective on the first day of a calendar quarter after a minimum of sixty (60) days' notice by the secretary to sellers;
    1. In the event of an election contest, the tax shall be collected as prescribed in subdivision (b)(1) of this section unless enjoined by court order; and
      1. The municipality or county may delay the effective date of the tax.
      2. The delayed effective date shall be specified in the ordinance levying the tax and on the ballot approving the bonds or the tax, except in the event that the tax is replacing an existing tax. In such event, the ballot and the ordinance shall specify that the tax will replace the existing tax and that the effective date of the tax will be the day following the date the existing tax expires.
      3. The delayed effective date shall in any event be the first day of the first month of the calendar quarter.
      4. The effective date shall not be delayed for more than twelve (12) months, unless the tax replaces an existing tax.
      1. If bonds are issued, the tax shall be abolished when there are no bonds outstanding to which such tax collections are pledged as provided in this subchapter.
      2. If bonds have not been issued, the tax shall be abolished when it is determined by a roll call vote of two-thirds (2/3) of all the members elected to the municipality's or county's governing body that the bonds approved by the voters shall not be issued.
      3. Bonds shall not be deemed to be outstanding hereunder if the trustee for the bondholders provides the certificate provided for in subdivision (c)(2)(A) of this section.
    1. In order to provide for the accomplishment of the administrative duties of the secretary and to protect the owners of the bonds, the tax shall be abolished on the first day of the calendar quarter after the expiration of ninety (90) days from the date there is filed with the secretary a written statement signed by the chief executive officer of the municipality or county levying the tax and by the trustee for the bondholders, if a trustee is serving in such capacity, identifying the tax and the bonds, in which either:
      1. The trustee certifies that the trustee has or will have sufficient funds set aside to pay the principal of and interest on the bonds when due at maturity or at redemption before maturity and the municipality or county levying the tax certifies that the tax is not pledged to any other bonds of such municipality or county; or
      2. The municipality or county levying the tax certifies that there are no longer any bonds outstanding payable from tax collections.
    2. In the case of subdivision (c)(2)(B) of this section, there shall be attached to the written statement proof satisfactory to the secretary that there are no longer any bonds outstanding payable from tax collections.
    3. The chief executive officer of the municipality or county shall file the appropriate certificate not later than sixty (60) days after the bonds have been paid in full or funds to make payment in full have been set aside with the trustee.
  3. After one (1) year has elapsed after the effective date of the abolishment of the tax, the Treasurer of State shall remit the balance in any suspense account maintained by the Treasurer of State in connection therewith directly to the municipality or county levying the tax.

History. Acts 1985, No. 871, § 9; A.S.A. 1947, § 13-1247; Acts 1989, No. 497, § 1; 1991, No. 645, § 2; 1993, No. 266, § 8; 1995, No. 101, § 1; 2003, No. 1273, §§ 78-81; 2013, No. 538, § 1; 2019, No. 910, §§ 3383-3386.

A.C.R.C. Notes. Acts 2003, No. 1273, § 1, provided:

“Fundamental purpose.

“(a) In order to allow Arkansas to enter into a Streamlined Sales and Use Tax Agreement, Arkansas must simplify and modernize its sales and use tax laws.

“(b) The Streamlined Sales and Use Tax Agreement focuses on improving sales and use tax administration systems for all sellers and for all types of commerce through all of the following:

“(1) State level administration of sales and use tax collections;

“(2) Uniformity in the state and local tax bases;

“(3) Uniformity of major tax base definitions;

“(4) Central, electronic registration system for all member states;

“(5) Simplification of state and local tax rates;

“(6) Uniform sourcing rules for all taxable transactions;

“(7) Simplified administration of exemptions;

“(8) Simplified tax returns;

“(9) Simplification of tax remittances; and

“(10) Protection of consumer privacy.

“(c) The Director of the Department of Finance and Administration may enter into the Streamlined Sales and Use Tax Agreement, as described in subsections (a) and (b) of this section, upon the agreement's going into effect as outlined by that agreement.

“(d)(1) The General Assembly has the authority to establish the parameters of state and local sales and use taxes, including the application, exemptions, limitations, and administration of those taxes.

“(2) The changes to existing law effectuated by this act are intended as an expression of the General Assembly's authority to modify the parameters of state and local sales and use taxes, and the changes are not intended as a revocation or restraint of the power of cities and counties to levy local sales and use taxes.

“(3) It is the intent of the General Assembly that any modifications to the application or administration of local sales and use taxes resulting from this act shall not require the approval of local voters, and that the modifications shall not invalidate existing local sales and use taxes.”

Publisher's Notes. Acts 1989, No. 497, § 3, provided that the amendments made by this act shall apply to bonds heretofore or hereafter issued under the authority of Ark. Const. Amend. 62 to the Constitution of the State of Arkansas and the sales and use taxes pledged to such bonds.

Amendments. The 2003 amendment inserted “and the Director … (90) days' notice” in (a); in (b)(1), substituted “month of the calendar quarter after” for “calendar month subsequent to” and inserted “and after a minimum … director to sellers”; substituted “the first month of the calendar quarter” for “a calendar month” in (b)(3)(C); in (c)(2), substituted “first month of the calendar quarter after” for “calendar month subsequent to,” “ninety (90)” for “thirty (30)” and “in which” for “wherein”; and made minor stylistic changes.

The 2013 amendment redesignated former (b)(1) as (b)(1)(A); substituted “under” for “as provided in” in (b)(1)(A); and added (b)(1)(B) and (b)(1)(C).

The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a); and substituted “secretary” for “director” throughout the section.

Effective Dates. Acts 2003, No. 1273, § 88 as amended by Acts 2005, No. 2008, § 1 and Acts 2007, No. 180, § 1: Jan. 1, 2008. Effective date clause provided: “It is found and determined by the Eighty-fourth General Assembly that the Streamlined Sales and Use Tax Agreement is necessary in order to stop the loss of sales tax revenue due to the rapid growth of internet sales, to level the playing field between local businesses and out-of-state businesses, and to negate the undue burden on interstate commerce; and that this act is necessary in order for Arkansas to be in compliance with the Streamlined Sales and Use Tax Agreement. Under the Streamlined Sales and Use Tax Agreement, when at least ten (10) states comprising at least twenty percent (20%) of the total population, as determined by the 2000 Federal census, of all states imposing a state sales tax have petitioned for membership and have been found to be in compliance with the requirements of the agreement, the agreement will become effective unless a specific effective date is otherwise given. These contingencies were met and the Streamlined Sales and Use Tax Agreement went into effect on October 1, 2005. Pursuant to the Streamlined Sales and Use Tax Agreement, a state may apply to become a party to the Streamlined Sales and Use Tax Agreement by submitting a petition for membership and certificate of compliance to the governing board. The governing board shall then determine if the petitioning state is in compliance with the Streamlined Sales and Use Tax Agreement. A state is in compliance with the Streamlined Sales and Use Tax Agreement if the effect of the state's laws, rules, regulations, and policies is substantially in compliance with the requirements in the Streamlined Sales and Use Tax Agreement. The petitioning state's proposed date of entry to the Streamlined Sales and Use Tax Agreement shall be on the first day of a calendar quarter. It is anticipated that Arkansas will become a full member of the Streamlined Sales and Use Tax Governing Board on January 1, 2008. In order to allow the Department of Finance and Administration and local businesses additional time to prepare for the changes necessary as the result of this act, all of the sections in this act will become effective on January 1, 2008. Thus, any section of this act with a specific effective date shall have an effective date of January 1, 2008, and not the specific effective date provided in the introductory language to the section, and when no effective date was listed in the section, then the effective date will also be January 1, 2008.”

14-164-330. Capital improvement bonds — Local sales and use tax — Notice to Secretary of the Department of Finance and Administration.

As soon as is feasible and no later than ten (10) days following each of the events set forth in the ordinance with reference to the procedure for the adoption or abolition of the local sales and use tax and the effective dates of the action, the clerk shall notify the Secretary of the Department of Finance and Administration of such event.

History. Acts 1985, No. 871, § 9; A.S.A. 1947, § 13-1247; Acts 2003, No. 383, § 1; 2019, No. 910, § 3387.

Amendments. The 2003 amendment deleted the subdivision (a) designation and substituted “Director of the Department of Finance and Administration” for “director” following “notify the”; and deleted former (b).

The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in the section heading and in the section.

14-164-331. Capital improvement bonds — Local sales and use tax — Alteration of municipal boundaries.

If a municipality in which a local sales and use tax has been imposed in the manner provided for in this subchapter changes or alters its boundaries, any tax imposed under this subchapter shall be effective in the added territory or abolished in the detached territory on the first day of the first calendar month following the expiration of thirty (30) days from the date that the annexation or detachment becomes effective.

History. Acts 1985, No. 871, § 9; A.S.A. 1947, § 13-1247; Acts 2003, No. 383, § 2.

A.C.R.C. Notes. Acts 2003, No. 1273, § 1, provided:

“Fundamental purpose.

“(a) In order to allow Arkansas to enter into a Streamlined Sales and Use Tax Agreement, Arkansas must simplify and modernize its sales and use tax laws.

“(b) The Streamlined Sales and Use Tax Agreement focuses on improving sales and use tax administration systems for all sellers and for all types of commerce through all of the following:

“(1) State level administration of sales and use tax collections;

“(2) Uniformity in the state and local tax bases;

“(3) Uniformity of major tax base definitions;

“(4) Central, electronic registration system for all member states;

“(5) Simplification of state and local tax rates;

“(6) Uniform sourcing rules for all taxable transactions;

“(7) Simplified administration of exemptions;

“(8) Simplified tax returns;

“(9) Simplification of tax remittances; and

“(10) Protection of consumer privacy.

“(c) The Director of the Department of Finance and Administration may enter into the Streamlined Sales and Use Tax Agreement, as described in subsections (a) and (b) of this section, upon the agreement's going into effect as outlined by that agreement.

“(d)(1) The General Assembly has the authority to establish the parameters of state and local sales and use taxes, including the application, exemptions, limitations, and administration of those taxes.

“(2) The changes to existing law effectuated by this act are intended as an expression of the General Assembly's authority to modify the parameters of state and local sales and use taxes, and the changes are not intended as a revocation or restraint of the power of cities and counties to levy local sales and use taxes.

“(3) It is the intent of the General Assembly that any modifications to the application or administration of local sales and use taxes resulting from this act shall not require the approval of local voters, and that the modifications shall not invalidate existing local sales and use taxes.”

Because of the changes made to this section by Acts 2003, No. 383, § 2, which became effective July 16, 2003, the amendment by Acts 2003, No. 1273, § 82 cannot be implemented.

Acts 2003, No. 1273, § 82, provided:

“(a) If a municipality in which a local sales and use tax has been imposed in the manner provided for in this subchapter thereafter changes or alters its boundaries, the clerk of the municipality, ninety (90) days before the effective date, shall forward to the Director of the Department of Finance and Administration a certified copy of the ordinance annexing or detaching territory from the municipality and a map clearly showing the territory annexed or detached.

“(b) After the receipt of the ordinance and map, any tax imposed under this subchapter shall be effective in the added territory or abolished in the detached territory on the first day of the first month of the calendar quarter following the expiration of thirty (30) days from the date that the annexation or detachment becomes effective and after a minimum of sixty (60) days' notice by the director to sellers.”

Amendments. The 2003 amendment rewrote the section.

14-164-332. Capital improvement bonds — Local sales and use tax — Pledge.

  1. Any moneys collected under this subchapter by the director acting as agent for any municipality or county which, as indicated by a certified copy of an ordinance of the municipality or county previously filed with the director and the State Treasurer, are pledged to secure the retirement of bonds authorized by this subchapter shall be transmitted by the director to the State Treasurer.
  2. Notwithstanding the provisions of §§ 26-74-201 — 26-74-219, 26-74-221, 26-74-315 — 26-74-317, 26-75-201 — 26-75-221, 26-75-223, 26-75-317, and 26-75-318, in any municipality or county in which a local sales and use tax has been adopted in the manner provided for in this subchapter, and all or a portion of the tax is pledged to secure the payment of bonds as authorized by this subchapter, that portion of the tax pledged to retire the bonds shall not be repealed, abolished, or reduced so long as such bonds are outstanding and, subject to covenants entered into with owners of the bonds, the tax may be pledged as security for the issuance of additional bonds if authorized by the electors.

History. Acts 1985, No. 871, § 9; A.S.A. 1947, § 13-1247.

Case Notes

“Operating Penny” Statute.

Legislation implementing Ark. Const., Amend. 62, did not repeal the “operating penny” statute; rather, it recognized the continuation of the statute in §§ 14-164-332(b), 14-164-333(2)(a), 14-164-336(c) and 14-164-337(c)(1). Hasha v. City of Fayetteville, 311 Ark. 460, 845 S.W.2d 500 (1993).

14-164-333. Capital improvement bonds — Local sales and use tax — Administration, collection, etc.

    1. A sales and use tax levied pursuant to the authority granted by this subchapter shall be administered and collected subject to the provisions of § 26-74-212 or § 26-75-216, whichever shall be applicable.
      1. The Secretary of the Department of Finance and Administration shall perform all functions incidental to the administration, collection, enforcement, and operation of the tax, as provided in §§ 26-74-201 — 26-74-219, 26-74-221, 26-74-315 — 26-74-317, 26-75-201 — 26-75-221, 26-75-223, 26-75-317, and 26-75-318. Provided, however, to the extent the provisions of § 14-164-329 conflict with any provisions of § 26-74-101 et seq. or § 26-75-101 et seq., or any other law, § 14-164-329 shall be deemed to supersede the conflicting statutes.
      2. The tax levied in this subchapter on new and used motor vehicles shall be collected by the secretary directly from the purchaser in the manner prescribed in § 26-52-510.
      1. In each municipality or county where a local sales and use tax has been imposed in the manner provided in this subchapter, every retailer shall add the tax imposed by the Arkansas Gross Receipts Act of 1941, § 26-52-101 et seq., the Arkansas Compensating Tax Act of 1949, § 26-53-101 et seq., and the tax imposed by this subchapter to the sale price, and when added, the combined tax shall constitute a part of the price, shall be a debt of the purchaser to the retailer until paid, and shall be recoverable at law in the same manner as the purchase price.
      2. A retailer shall be entitled to a discount with respect to tax remitted under this subchapter as authorized in § 26-52-503.
      1. Any fraction of one cent (1¢) of tax which is less than one-half of one cent (0.5¢) shall not be collected.
      2. Any fraction of one cent (1¢) of tax equal to one-half of one cent (0.5¢) or more shall be collected as a whole cent (1¢) of tax.
  1. In the event the General Assembly or the electors of the state shall either increase or decrease the rate of the state gross receipts tax, the combined rate of the state gross receipts tax and the local sales tax shall be the sum of the two (2) rates.
    1. Each vendor who is liable for one (1) or more city sales or use taxes shall report a combined city sales tax and a combined city use tax on his or her sales and use tax report. The combined city sales tax is equal to the sum of all sales taxes levied by a city under this subchapter or any other provision of the Arkansas Code. The combined city use tax is equal to the sum of all use taxes levied by a city under this subchapter or any other provision of the Arkansas Code. This provision applies only to taxes collected by the secretary.
    2. Each vendor who is liable for one (1) or more county sales or use taxes shall report a combined county sales tax and a combined county use tax on his or her sales and use tax report. The combined county sales tax is equal to the sum of all sales taxes levied by a county under this subchapter or any other provision of the Arkansas Code. The combined county use tax is equal to the sum of all use taxes levied by a county under this subchapter or any other provision of the Arkansas Code. This provision applies only to taxes collected by the secretary.

History. Acts 1985, No. 871, § 9; A.S.A. 1947, § 13-1247; Acts 1995, No. 565, § 21; 1997, No. 1176, § 2; 2003, No. 747, § 1; 2003, No. 1273, §§ 83, 84; 2019, No. 910, §§ 3388, 3389.

A.C.R.C. Notes. Acts 2003, No. 1273, § 1, provided:

“Fundamental purpose.

“(a) In order to allow Arkansas to enter into a Streamlined Sales and Use Tax Agreement, Arkansas must simplify and modernize its sales and use tax laws.

“(b) The Streamlined Sales and Use Tax Agreement focuses on improving sales and use tax administration systems for all sellers and for all types of commerce through all of the following:

“(1) State level administration of sales and use tax collections;

“(2) Uniformity in the state and local tax bases;

“(3) Uniformity of major tax base definitions;

“(4) Central, electronic registration system for all member states;

“(5) Simplification of state and local tax rates;

“(6) Uniform sourcing rules for all taxable transactions;

“(7) Simplified administration of exemptions;

“(8) Simplified tax returns;

“(9) Simplification of tax remittances; and

“(10) Protection of consumer privacy.

“(c) The Director of the Department of Finance and Administration may enter into the Streamlined Sales and Use Tax Agreement, as described in subsections (a) and (b) of this section, upon the agreement's going into effect as outlined by that agreement.

“(d)(1) The General Assembly has the authority to establish the parameters of state and local sales and use taxes, including the application, exemptions, limitations, and administration of those taxes.

“(2) The changes to existing law effectuated by this act are intended as an expression of the General Assembly's authority to modify the parameters of state and local sales and use taxes, and the changes are not intended as a revocation or restraint of the power of cities and counties to levy local sales and use taxes.

“(3) It is the intent of the General Assembly that any modifications to the application or administration of local sales and use taxes resulting from this act shall not require the approval of local voters, and that the modifications shall not invalidate existing local sales and use taxes.”

Publisher's Notes. The Arkansas Gross Receipts Tax Act of 1941 referred to in this section is codified as §§ 26-52-10126-52-107, 26-52-20126-52-208, 26-52-301, 26-52-303, 26-52-306, 26-52-307, 26-52-401, 26-52-402, 26-52-50126-52-503, 26-52-508, and 26-52-510.

The Arkansas Compensating Tax Act of 1949 referred to in this section is codified as §§ 26-53-10126-53-106, 26-53-112, 26-53-114, and 26-53-12126-53-127.

Amendments. The 1995 amendment added the second sentence in (a)(2)(A).

The 1997 amendment added (d).

The 2003 amendment by No. 747 redesignated former (b)(1)(B) as present (b)(1)(B)(i) and (b)(1)(B)(ii); and in (b)(1)(b)(ii), substituted “a” for “the same” preceding “discount” and deleted “as is authorized for the collection and remission of gross receipts taxes to the state” following “subchapter.”

The 2003 amendment by No. 1273 rewrote (b)(1)(B); and in (c) deleted the last sentence and made a stylistic change.

The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a)(2)(A); and substituted “secretary” for “director” in (a)(2)(B), (d)(1), and (d)(2).

Case Notes

Construction.

City was not entitled to a per capita share of the 1% sales and use tax levied under § 26-73-113 and originally used solely for solid waste management; the City's argument that §§ 26-73-113 and this section incorporated the per capita remittance procedure in § 26-74-214(b)(2)(B)(i) was not supported by the plain language of the relevant statutes and thus the state treasurer was not required to remit the tax to the county and municipalities on a per capita basis. Instead, the state treasurer was always required to remit the tax proceeds directly to the county in accordance with §§ 26-73-113 and 14-164-336(c), irrespective of whether the interlocal agreement was repealed or not. City of Magnolia v. Milligan, 2019 Ark. App. 374, 584 S.W.3d 716 (2019).

This section does not apply to the state treasurer at all; rather, the state treasurer's remittance of the tax levied under § 26-73-113 is addressed in § 14-164-336. Further, § 14-164-336(c)'s reference to the county tax code does not include the per capita remittance procedure in § 26-74-214(b)(2). The plain language of § 14-164-336(c) is directed only to those provisions, such as § 26-74-214(a)(2), that authorize the state treasurer to withhold “charges payable and retainage” from the remitted funds. City of Magnolia v. Milligan, 2019 Ark. App. 374, 584 S.W.3d 716 (2019).

“Operating Penny” Statute.

Legislation implementing Ark. Const., Art. 62 did not repeal the “operating penny” statute; rather, it recognized the continuation of the statute in §§ 14-164-332(b), 14-164-333(a)(2)(A), 14-164-336(c) and 14-164-337(c)(1). Hasha v. City of Fayetteville, 311 Ark. 460, 845 S.W.2d 500 (1993).

14-164-334. Capital improvement bonds — Local sales and use tax — Single transactions.

  1. Any sales and use tax levied pursuant to this subchapter shall be levied and collected only on the first two thousand five hundred dollars ($2,500) of gross receipts, gross proceeds, or sales price on the sale of:
    1. Motor vehicles;
    2. Aircraft;
    3. Watercraft;
    4. Modular homes;
    5. Manufactured homes; or
    6. Mobile homes.
    1. For any taxpayer not subject to the levy of a use tax on taxable services or tangible personal property brought into the State of Arkansas for storage until the property is subsequently initially used in the State of Arkansas, the use tax portion of the local sales and use tax authorized by this subchapter shall be computed on each purchase of the property by the taxpayer as if all the property was subject upon purchase to the use tax but only on the first two thousand five hundred dollars ($2,500) of gross receipts, gross proceeds, or sales price on the sale of:
      1. Motor vehicles;
      2. Aircraft;
      3. Watercraft;
      4. Modular homes;
      5. Manufactured homes; or
      6. Mobile homes.
    2. The taxes so computed in the preceding sentence shall be aggregated on a monthly basis and the aggregate monthly amount shall be divided by the sum of the total purchases of the property on which the taxes are computed and the quotient shall be multiplied by the amount of the taxpayer's property subsequently initially used and subject to levy of such use tax within the municipality or county during the month for which the monthly aggregate tax figure was computed, and the product shall be the amount of such use tax liability for the taxpayer for the month computed.

History. Acts 1985, No. 871, § 9; A.S.A. 1947, § 13-1247; Acts 1993, No. 669, § 1; 2003, No. 1273, §§ 85, 86.

A.C.R.C. Notes. Acts 2003, No. 1273, § 1, provided:

“Fundamental purpose.

“(a) In order to allow Arkansas to enter into a Streamlined Sales and Use Tax Agreement, Arkansas must simplify and modernize its sales and use tax laws.

“(b) The Streamlined Sales and Use Tax Agreement focuses on improving sales and use tax administration systems for all sellers and for all types of commerce through all of the following:

“(1) State level administration of sales and use tax collections;

“(2) Uniformity in the state and local tax bases;

“(3) Uniformity of major tax base definitions;

“(4) Central, electronic registration system for all member states;

“(5) Simplification of state and local tax rates;

“(6) Uniform sourcing rules for all taxable transactions;

“(7) Simplified administration of exemptions;

“(8) Simplified tax returns;

“(9) Simplification of tax remittances; and

“(10) Protection of consumer privacy.

“(c) The Director of the Department of Finance and Administration may enter into the Streamlined Sales and Use Tax Agreement, as described in subsections (a) and (b) of this section, upon the agreement's going into effect as outlined by that agreement.

“(d)(1) The General Assembly has the authority to establish the parameters of state and local sales and use taxes, including the application, exemptions, limitations, and administration of those taxes.

“(2) The changes to existing law effectuated by this act are intended as an expression of the General Assembly's authority to modify the parameters of state and local sales and use taxes, and the changes are not intended as a revocation or restraint of the power of cities and counties to levy local sales and use taxes.

“(3) It is the intent of the General Assembly that any modifications to the application or administration of local sales and use taxes resulting from this act shall not require the approval of local voters, and that the modifications shall not invalidate existing local sales and use taxes.”

Amendments. The 2003 amendment substituted “on the sale of” for “from a single transaction” in (a); added (a)(1)-(a)(6); in (b)(1), inserted “taxable services or” and substituted “but only on the first … on the sale of” for “up to a maximum of twenty-five dollars ($25.00) per single transation”; and added (b)(1)(A)-(b)(1)(F).

14-164-335. Capital improvement bonds — Local sales and use tax — Reports.

Vendors collecting, reporting, and remitting such sales and use taxes shall show sales taxes as a separate entry on the tax report form filed with the director.

History. Acts 1985, No. 871, § 9; A.S.A. 1947, § 13-1247.

14-164-336. Local Sales and Use Tax Trust Fund.

  1. There is created a trust fund for the remittance of local sales and use taxes collected under this subchapter which shall be known as “the Local Sales and Use Tax Trust Fund,” which trust fund shall be held apart from the State Treasury by the Treasurer of State and shall be administered by the Treasurer of State as provided in this section, in addition to other duties of the Treasurer of State prescribed by law.
  2. The Treasurer of State shall not deposit any such moneys into the State Treasury or into general revenues, but shall hold such moneys apart, in trust, and shall deposit such moneys as cash funds into the Local Sales and Use Tax Trust Fund established by this subchapter.
  3. The Treasurer of State shall transmit monthly to the treasurer of the municipality or county, as the case may be, or in the alternative, to a bank or other depository designated by the municipality or county, the moneys of the municipality or county held in the Local Sales and Use Tax Trust Fund established by this subchapter, subject to the charges payable and retainage authorized by §§ 26-74-201 — 26-74-219, 26-74-221, 26-74-315 — 26-74-317, 26-75-201 — 26-75-221, 26-75-223, 26-75-317, 26-75-318, and the Local Sales and Use Tax Economic Development Project Funding Act, § 26-82-101 et seq.
    1. With the exception of revenue derived from taxes under subdivision (d)(2) of this section, revenue derived from a tax on aviation fuel by a city or county where a regional airport, as described by the Regional Airport Act, § 14-362-101 et seq., is located shall be remitted by the Treasurer of State directly to the regional airport located within the levying city or county.
    2. Revenue derived from a tax on aviation fuel in effect on December 30, 1987, is not subject to this section.

History. Acts 1985, No. 871, § 9; A.S.A. 1947, § 13-1247; Acts 2007, No. 166, § 1; 2011, No. 828, § 2.

Amendments. The 2011 amendment added “and the Local Sales and Use Tax Economic Development Project Funding Act, § 26-82-101 et seq.” at the end of (c).

Case Notes

Construction.

City was not entitled to a per capita share of the 1% sales and use tax levied under § 26-73-113 and originally used solely for solid waste management; the City's argument that §§ 26-73-113 and 14-164-333 incorporated the per capita remittance procedure in § 26-74-214(b)(2)(B)(i) was not supported by the plain language of the relevant statutes and thus the state treasurer was not required to remit the tax to the county and municipalities on a per capita basis. Instead, the state treasurer was always required to remit the tax proceeds directly to the county in accordance with §§ 26-73-113 and subsection (c) of this section, irrespective of whether the interlocal agreement was repealed or not. City of Magnolia v. Milligan, 2019 Ark. App. 374, 584 S.W.3d 716 (2019).

Section 14-164-333 does not apply to the state treasurer at all; rather, the state treasurer's remittance of the tax levied under § 26-73-113 is addressed in this section. Further, the reference in subsection (c) of this section to the county tax code does not include the per capita remittance procedure in § 26-74-214(b)(2). The plain language of subsection (c) of this section is directed only to those provisions, such as § 26-74-214(a)(2), that authorize the state treasurer to withhold “charges payable and retainage” from the remitted funds. City of Magnolia v. Milligan, 2019 Ark. App. 374, 584 S.W.3d 716 (2019).

“Operating Penny” Statue.

Legislation implementing Ark. Const. Amend. 62 did not repeal the “operating penny” statute; rather, it recognized the continuation of the statute in §§ 14-164-332(b), 14-164-333(a)(2)(A), 14-164-336(c) and 14-164-337(c)(1). Hasha v. City of Fayetteville, 311 Ark. 460, 845 S.W.2d 500 (1993).

14-164-337. Pledge of preexisting sales and use tax.

  1. In any municipality or county which has in effect the levy of a local sales and use tax, the legislative body may, by ordinance, pledge all or a specified portion of the existing tax to retire its bonds as provided in this subchapter.
    1. No pledge of an existing local sales and use tax levy shall be effective unless the issuance of bonds has been approved by the voters of the municipality or county issuing the bonds at an election as provided in § 14-164-328.
      1. The ballot form in an election to issue bonds secured by the pledge of an existing local sales and use tax levy shall be limited to the question or questions concerning the proposed bonds and shall not resubmit the levy of the tax.
      2. The ballot shall contain a statement that the existing sales and use tax shall be pledged to the retirement of the bonds.
    1. In any county which has in effect a county local sales and use tax, a municipality therein may, by ordinance, pledge all or any portion of such tax to which the municipality is entitled to receive to retire bonds of the municipality issued under this subchapter.
    2. As long as any bonds so authorized and issued are outstanding, the local sales and use tax shall continue to be levied and collected in such municipality until the bonds are retired, notwithstanding the repeal or abolishment of such countywide tax.
    1. In any county which has in effect a county local sales and use tax, a municipality therein may, by ordinance, pledge all or a portion of its share of the county tax to retire bonds of the county issued under this subchapter.
    2. All such amounts pledged shall be used by the county as its funds to the extent necessary to pay debt service on such bonds and, if not so necessary, shall be transferred by or on behalf of the county to the municipality.
  2. In any municipality or county in which an existing local sales and use tax is pledged to secure the payment of bonds authorized by this subchapter, that portion of the tax pledged to secure the payment of bonds shall not be repealed, abolished, or reduced so long as any of such bonds are outstanding.
    1. Any moneys collected which, as indicated by a certified copy of an ordinance of the municipality or county previously filed with the Secretary of the Department of Finance and Administration and the Treasurer of State, are pledged, under the provisions of any act, to secure the retirement of bonds authorized by this subchapter, shall be transmitted by the secretary to the Treasurer of State.
    2. The Treasurer of State shall not deposit any such moneys into the State Treasury or into general revenues, but shall hold such moneys apart, in trust, and shall deposit such moneys as cash funds into the Local Sales and Use Tax Trust Fund established by this subchapter.
    3. The Treasurer of State shall transmit monthly to the treasurer of the municipality or county, as the case may be, or, in the alternative, to a bank or other depository designated by the municipality or county, the moneys of the municipality or county held in the Local Sales and Use Tax Trust Fund established by this subchapter, subject to the charges payable and retainage authorized by §§ 26-74-201 — 26-74-219, 26-74-221, 26-74-315 — 26-74-317, 26-75-201 — 26-75-221, 26-75-223, 26-75-317, 26-75-318, and the Local Sales and Use Tax Economic Development Project Funding Act, § 26-82-101 et seq.
      1. Upon receipt of a written statement signed by the trustee for the bondholders that the trustee has or will have set aside sufficient funds to pay when due at maturity or at redemption prior to maturity the principal of and interest on the bonds to which such tax has been pledged.
      2. If no trustee is serving in such capacity, a written statement signed by the municipality or county pledging the tax or by the municipality or county issuing the bonds, or both, to the effect that the bonds to which the tax is pledged have been fully paid and are no longer outstanding, the Treasurer of State shall make payments directly to the treasurer of the municipality or county and the pledge of the tax shall cease.

History. Acts 1985, No. 871, § 10; A.S.A. 1947, § 13-1248; Acts 1989, No. 497, § 2; 1991, No. 765, § 3; 1997, No. 1176, § 3; 1999, No. 1137, § 2; 2003, No. 1273, § 87; 2011, No. 828, § 3; 2019, No. 910, § 3390.

A.C.R.C. Notes. Acts 2003, No. 1273, § 1, provided:

“Fundamental purpose.

“(a) In order to allow Arkansas to enter into a Streamlined Sales and Use Tax Agreement, Arkansas must simplify and modernize its sales and use tax laws.

“(b) The Streamlined Sales and Use Tax Agreement focuses on improving sales and use tax administration systems for all sellers and for all types of commerce through all of the following:

“(1) State level administration of sales and use tax collections;

“(2) Uniformity in the state and local tax bases;

“(3) Uniformity of major tax base definitions;

“(4) Central, electronic registration system for all member states;

“(5) Simplification of state and local tax rates;

“(6) Uniform sourcing rules for all taxable transactions;

“(7) Simplified administration of exemptions;

“(8) Simplified tax returns;

“(9) Simplification of tax remittances; and

“(10) Protection of consumer privacy.

“(c) The Director of the Department of Finance and Administration may enter into the Streamlined Sales and Use Tax Agreement, as described in subsections (a) and (b) of this section, upon the agreement's going into effect as outlined by that agreement.

“(d)(1) The General Assembly has the authority to establish the parameters of state and local sales and use taxes, including the application, exemptions, limitations, and administration of those taxes.

“(2) The changes to existing law effectuated by this act are intended as an expression of the General Assembly's authority to modify the parameters of state and local sales and use taxes, and the changes are not intended as a revocation or restraint of the power of cities and counties to levy local sales and use taxes.

“(3) It is the intent of the General Assembly that any modifications to the application or administration of local sales and use taxes resulting from this act shall not require the approval of local voters, and that the modifications shall not invalidate existing local sales and use taxes.”

Publisher's Notes. Acts 1989, No. 497, § 3, provided that the amendments made by this act shall apply to bonds heretofore or hereafter issued under the authority of Ark. Const. Amend. 62 and the sales and use taxes pledged to such bonds.

Act 1999, No. 1137, § 8, provided:

“It is the express intent of the General Assembly that this act be applied retroactively to any city or county ordinance adopted after January 1, 1998, as it is remedial and procedural in nature.”

Amendments. The 2003 amendment deleted (g).

The 2011 amendment added “and the Local Sales and Use Tax Economic Development Project Funding Act, § 26-82-101 et seq.” at the end of (f)(3).

The 2019 amendment, in (f)(1), substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” and “secretary” for “director”.

Case Notes

“Operating Penny” Statute.

Legislation implementing Ark. Const., Art. 62 did not repeal the “operating penny” statute; rather, it recognized the continuation of the statute in §§ 14-164-332(b), 14-164-333(a)(2)(A), 14-164-336(c) and 14-164-337(c)(1). Hasha v. City of Fayetteville, 311 Ark. 460, 845 S.W.2d 500 (1993).

14-164-338. Alternative to issuance of bonds.

  1. If a legislative body determines that a sales and use tax of one percent (1%) or less authorized by § 14-164-327 would, if levied for no longer than twenty-four (24) months, produce sufficient revenue to finance capital improvements of a public nature without resorting to a bond issue, the legislative body may dispense with the issuance of bonds, levy the tax for no longer than twenty-four (24) months, and appropriate the resulting revenues, subject to Arkansas Constitution, Article 12, § 4, paragraphs 2-4, provided:
    1. A majority of the qualified electors of the county or municipality voting on the question at a general or special election shall have approved the tax and the purpose of the capital improvements; and
    2. The revenues from the tax are expended solely for the purpose authorized by the electorate.
  2. The portion of the tax authorized by § 14-164-327 which is not utilized under this section may be used as otherwise provided in this subchapter.
  3. This section does not preclude or affect the ability of a municipality or county to levy a sales and use tax beyond the twenty-four-month period, unless so restricted on the ballot, or for less than the twenty-four-month period, if stated on the ballot, under § 26-74-201 et seq., §§ 26-74-301 — 26-74-319, § 26-75-201 et seq., §§ 26-75-301 — 26-75-318, and the Local Sales and Use Tax Economic Development Project Funding Act, § 26-82-101 et seq., and use all or a portion of the proceeds to finance capital improvements of a public nature, with or without issuing bonds and with or without an election approving the use of the tax collections for capital improvements.
  4. This section does not limit the authority of municipalities and counties to levy taxes for twenty-four (24) months only under § 26-74-201 et seq., §§ 26-74-301 — 26-74-319, § 26-75-201 et seq., §§ 26-75-301 — 26-75-318, and the Local Sales and Use Tax Economic Development Project Funding Act, § 26-82-101 et seq., and use the proceeds to finance capital improvements, and the General Assembly determines that § 26-74-201 et seq., §§ 26-74-301 — 26-74-319, § 26-75-201 et seq., §§ 26-75-301 — 26-75-318, and the Local Sales and Use Tax Economic Development Project Funding Act, § 26-82-101 et seq., each provide for the levy of up to a one percent (1%) sales and use tax and the use for any purpose for which the general funds of the municipality or county may be used unless restricted on the ballot to a specified purpose.
  5. The revenues derived from this tax may also be used to retire existing bonds issued for the acquisition, renovation, or construction of capital improvements.

History. Acts 1988 (4th Ex. Sess.), No. 25, § 1; 1989, No. 458, § 1; 1991, No. 765, § 4; 1992 (1st Ex. Sess.), No. 36, § 1; 1993, No. 1014, § 1; 1999, No. 1324, § 1; 2011, No. 828, § 4.

A.C.R.C. Notes. References to “this subchapter” in §§ 14-164-30114-164-337 may not apply to this section, which was enacted subsequently.

Acts 1999, No. 1324, § 1(b) provided:

“The provisions of this act shall expire on December 31, 2000, and until that time this act supercedes § 14-164-338(a).”

Amendments. The 2011 amendment, throughout (c) and (d), substituted “§ 26-74-201 et seq.” for “§§ 26-74-20126-74-223” and substituted “§ 26-75-201 et seq.” for “§§ 26-75-20126-75-223”; and added “and the Local Sales and Use Tax Economic Development Project Funding Act, § 26-82-101 et seq.” in (c) and in two places in (d).

Case Notes.

Amendments.

In 1988, by Act 25, the General Assembly amended this section to provide that a city, as an alternative to issuing capital improvement bonds, can construct pay-as-you-go capital improvements by levying a “bond penny” for up to twelve months (now 24 months) when that penny, over a twelve-month period (now 24 months), will be sufficient to construct the improvement. Hasha v. City of Fayetteville, 311 Ark. 460, 845 S.W.2d 500 (1993).

14-164-339. Simultaneous pledge of local sales and use tax.

    1. A municipality levying a local sales and use tax under § 26-73-113, § 26-75-201 et seq., or § 26-75-301 et seq. may pledge, simultaneously with the levy, all or a specified portion of the tax to retire bonds for capital improvements or economic development projects.
    2. The ballot form in a municipal election to levy a local sales and use tax pursuant to the provisions of § 26-75-208, § 26-75-308, or § 26-73-113 and to simultaneously pledge all or a specified portion of such tax to retire bonds as provided in this subchapter shall be headed with the question of approval or disapproval of such tax and shall be followed by the question or questions of the issuance of the bonds.
      1. The question or questions of the issuance of bonds shall also contain a statement describing the extent to which the tax, if approved, may be pledged to retire the bonds which are approved by the voters of the municipality.
      2. The local sales and use tax or taxes authorized in § 14-164-327 may also be pledged to bonds approved pursuant to this section, and in such case, the question or questions of the issuance of the bonds shall contain a statement to that effect.
    3. The election shall be conducted as provided in § 14-164-309, and the bonds shall be authorized, issued, and secured as provided in this subchapter.
    1. A county levying a local sales and use tax under § 26-73-113, § 26-74-201 et seq., § 26-74-301 et seq., or § 26-74-401 et seq. may pledge, simultaneously with the levy, all or a specified portion of the tax to retire bonds for capital improvements or economic development projects.
    2. The ballot form in a county election to levy a local sales and use tax pursuant to the provisions of § 26-74-208, § 26-74-308, § 26-74-403, or § 26-73-113 and to simultaneously pledge all or a specified portion of its share of such tax to retire bonds as provided in this subchapter shall be headed with the question of approval or disapproval of such tax and shall be followed by the question or questions of the issuance of the bonds.
      1. The question or questions of the issuance of bonds shall also contain a statement describing the extent to which the tax, if approved, may be pledged to retire the bonds, which are approved by the voters of the county.
      2. The local sales and use tax or taxes authorized in § 14-164-327 may also be pledged to bonds approved pursuant to this section, and in such case, the question or questions of the issuance of the bonds shall contain a statement to that effect.
    3. The election shall be conducted as provided in § 14-164-309, and the bonds shall be authorized, issued, and secured as provided in this subchapter.
  1. In any municipality or county in which a local sales and use tax is adopted pursuant to § 26-75-201 et seq., § 26-75-301 et seq., §§ 26-74-201 — 26-74-220, § 26-74-301 et seq., § 26-74-401 et seq., or § 26-73-113, respectively, and pledged to secure the payment of bonds as authorized by this subchapter, that portion of the tax pledged to secure the payment of bonds shall not be repealed, abolished, or reduced so long as any of such bonds are outstanding.
  2. In any municipality or county in which a local sales and use tax is approved and the issuance of bonds disapproved in an election held pursuant to subsection (a) or subsection (b) of this section, revenues derived from such local sales and use tax may be utilized by the municipality or county for any valid governmental purpose.
    1. Any moneys collected which, as indicated by a certified copy of an ordinance of the municipality or county previously filed with the Secretary of the Department of Finance and Administration and the Treasurer of State, are pledged, under the provisions of any act, to secure the retirement of bonds authorized by this subchapter, shall be transmitted by the secretary to the Treasurer of State.
    2. The Treasurer of State shall not deposit any such moneys into the State Treasury or into general revenues, but shall hold such moneys apart in trust and shall deposit such moneys as cash funds into the Local Sales and Use Tax Trust Fund established by this subchapter.
    3. The Treasurer of State shall transmit monthly to the treasurer of the municipality or county, as the case may be, or in the alternative, to a bank or other depository designated by the municipality or county, the moneys of the municipality or county held in the Local Sales and Use Tax Trust Fund established by this subchapter, subject to the charges payable and retainage authorized by §§ 26-74-201 — 26-74-219, 26-74-221, 26-74-315 — 26-74-317, 26-74-409, 26-74-413, 26-75-201 — 26-75-221, 26-75-223, 26-75-317, 26-75-318, and the Local Sales and Use Tax Economic Development Project Funding Act, § 26-82-101 et seq.

History. Acts 1991, No. 646, § 3; 2001, No. 1168, § 3; 2011, No. 828, § 5; 2017, No. 533, §§ 16, 17; 2019, No. 910, § 3391.

A.C.R.C. Notes. References to “this subchapter” in §§ 14-164-30114-164-337 may not apply to this section, which was enacted subsequently.

Amendments. The 2011 amendment added “and the Local Sales and Use Tax Economic Development Project Funding Act, § 26-82-101 et seq.” at the end of (e)(3).

The 2017 amendment substituted “capital improvements or economic development projects” for “the purposes set forth in § 14-164-303(2)” in (a)(1) and (b)(1); and made stylistic changes.

The 2019 amendment, in (e)(1), substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” and “secretary” for “director”.

14-164-340. Alternative to issuance of bonds — Criminal justice projects — Definition.

  1. In addition to the options provided for by § 14-164-338 for financing capital improvements of a public nature, if a legislative body determines that a sales and use tax of one percent (1%) or less authorized by § 14-164-327 would, if levied for no longer than thirty-six (36) months, produce sufficient revenue to finance capital improvements for criminal justice purposes without resorting to a bond issue, the legislative body may dispense with the issuance of bonds, levy the tax for no longer than the thirty-six-month period, and appropriate the resulting revenues, subject to Arkansas Constitution, Article 12, § 4, provided that:
    1. A majority of the qualified electors of the county or municipality voting on the question at a general or special election shall have approved the tax and the projects of capital improvements for criminal justice purposes; and
    2. The revenues from the tax are expended solely for the projects authorized by the electorate.
  2. Under this section, the term “capital improvements for criminal justice purposes” means, whether obtained by purchase, lease, construction, reconstruction, restoration, improvement, alteration, repair, or other means, any physical public facility, betterment, or improvement with the purpose of furthering or promoting law enforcement or the apprehension, prosecution, probation, rehabilitation, or detention of any criminals, accused defendants, suspects, or juvenile detainees, and any preliminary plans, studies, or surveys relative thereto; land or rights in land, including, without limitations, leases, air rights, easements, rights-of-way, or licenses; and any furnishings, machinery, vehicles, apparatus, or equipment for any such public facility or betterment or improvement, which shall include, but is not limited to, the following: any and all facilities for city or town halls, courthouses and other administrative, executive, or other public offices for law enforcement officials or agencies; court facilities; jails; police stations and sheriffs' offices; police precincts or sheriffs' stations or substations; law enforcement training facilities; probation or parole offices and facilities; alternative learning centers; county and municipal criminal detention and correctional facilities; and juvenile detention facilities.
  3. The portion of the tax authorized by § 14-164-327 which is not utilized under this section may be used as otherwise provided in this subchapter.
  4. This section does not preclude or affect the ability of a municipality or county to levy a sales and use tax beyond the thirty-six-month period, unless so restricted on the ballot, or for less than the thirty-six-month period, if stated on the ballot, under § 26-74-201 et seq., §§ 26-74-301 — 26-74-319, § 26-75-201 et seq., §§ 26-75-301 — 26-75-318, and the Local Sales and Use Tax Economic Development Project Funding Act, § 26-82-101 et seq., and use all or a portion of the proceeds to finance capital improvements for criminal justice purposes, with or without issuing bonds and with or without an election approving the use of the tax collections for capital improvements.
    1. This section does not limit the authority of municipalities and counties to levy taxes for thirty-six (36) months or less only under § 26-74-201 et seq., §§ 26-74-301 — 26-74-319, § 26-75-201 et seq., §§ 26-75-301 — 26-75-318, and the Local Sales and Use Tax Economic Development Project Funding Act, § 26-82-101 et seq., and use the proceeds to finance capital improvements, and the General Assembly determines that § 26-74-201 et seq., §§ 26-74-301 — 26-74-319, § 26-75-201 et seq., §§ 26-75-301 — 26-75-318, and the Local Sales and Use Tax Economic Development Project Funding Act, § 26-82-101 et seq., each provide for the levy of up to a one percent (1%) sales and use tax and the use thereof for any purpose for which the general funds of the municipality or county may be used unless restricted on the ballot to a specified purpose.
    2. This section is intended to supplement all other laws which are designed to finance capital improvements for county and municipal governments and, when applicable in accordance with the provisions of this section, may be used by a county or a municipality as an alternative to financing capital improvements for criminal justice purposes.
  5. The revenues derived from this tax may also be used to retire existing bonds issued for the acquisition, renovation, or construction of capital improvements for criminal justice purposes.
  6. The revenues derived from this tax may also be used to establish a trust fund whose income would provide operating funds for the same purposes enumerated above in subsection (b) of this section.
    1. The purpose of this section is to authorize an extension of the tax authorized by § 14-164-327 for an additional period of twelve (12) months.
    2. This section shall not be construed to authorize the imposition of any tax in addition to that authorized by § 14-164-327.

History. Acts 1994 (2nd Ex. Sess.), No. 64, § 1; 2011, No. 828, § 6.

A.C.R.C. Notes. References to “this subchapter” in §§ 14-164-30114-164-337 may not apply to this section, which was enacted subsequently.

Amendments. The 2011 amendment, throughout (d) and (e)(1), substituted “§ 26-74-201 et seq.” for §§ 26-74-20126-74-223” and substituted “§ 26-75-201 et seq.” for “§§ 26-75-20126-75-223”; and added “and the Local Sales and Use Tax Economic Development Project Funding Act, § 26-82-101 et seq.” in (d) and in two places in (e)(1).

14-164-341. Bonds for surface transportation projects.

  1. The governing body of a municipality or county may pledge by ordinance all or a specified portion of the municipality's or county's share of collections of the temporary one-half percent (½%) sales and use tax levied under Arkansas Constitution, Amendment 91, to retire bonds issued for a surface transportation project.
    1. An ordinance pledging revenues under subsection (a) of this section is not effective unless the issuance of the bonds is approved by a majority of the electors of the municipality or county voting on the question at an election that is held substantially in the manner provided under § 14-164-309.
    2. The ballot form in an election to issue bonds secured by the pledge of revenues under subsection (a) of this section shall contain a statement describing the extent to which the municipality's or county's share of collections of the temporary one-half percent (½%) sales and use tax levied under Arkansas Constitution, Amendment 91, may be pledged to the retirement of the bonds issued for the surface transportation project if the bonds are approved by the voters of the municipality or county.
  2. Bonds issued under this section shall not have a final maturity date later than July 1, 2023.
  3. A certified copy of the ordinance authorizing the issuance of bonds under this section shall be filed with the Secretary of the Department of Finance and Administration and the Treasurer of State as soon as practicable after the approval of the issuance of the bonds by the voters.
    1. If a municipality or county has filed an ordinance with the Treasurer of State under subsection (d) of this section and the municipality's or county's share of collections of the temporary one-half percent (½%) sales and use tax levied under Arkansas Constitution, Amendment 91, is to be distributed to the municipality or county from the Municipal Aid Fund or the County Aid Fund, the Treasurer of State shall separately identify the amount of funds to be distributed to the municipality or county under Arkansas Constitution, Amendment 91.
    2. If a municipality or county has filed an ordinance with the Treasurer of State under subsection (d) of this section, the municipality or county may elect to have the funds identified by the Treasurer of State under subdivision (e)(1) of this section distributed to the bank or other depository designated in the ordinance.
      1. If a municipality or county elects to have funds distributed to a bank or other depository under subdivision (e)(2) of this section, the amount identified by the Treasurer of State under subdivision (e)(1) of this section shall be distributed to the bank or other depository designated in the ordinance rather than being distributed to the municipality or county.
      2. The distribution under subdivision (e)(3)(A) of this section shall continue until the municipality or county files a signed statement with the Treasurer of State to the effect that the bonds to which the funds identified under subdivision (e)(1) of this section are pledged have been fully paid and are no longer outstanding.

History. Acts 2013, No. 1241, § 3; 2019, No. 910, § 3392.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (d).

14-164-342. Net casino gaming receipts tax bonds.

  1. The governing body of a municipality or county may pledge by ordinance all or a specified portion of the municipality's or county's share of collections of the net casino gaming receipts tax levied under The Arkansas Casino Gaming Amendment of 2018, Arkansas Constitution, Amendment 100, to retire bonds issued for capital improvements or economic development projects.
    1. An ordinance pledging revenues under subsection (a) of this section is not effective unless the issuance of the bonds is approved by a majority of the electors of the municipality or county voting on the question at an election that is held substantially in the manner provided under § 14-164-309.
    2. The ballot form in an election to issue bonds secured by the pledge of revenues under subsection (a) of this section shall contain a statement describing the extent to which the municipality's or county's share of collections of the net casino gaming receipts tax levied under The Arkansas Casino Gaming Amendment of 2018, Arkansas Constitution, Amendment 100, may be pledged to the retirement of the bonds, if the bonds are approved by the voters of the municipality or county.
  2. A certified copy of the ordinance authorizing the issuance of bonds under this section shall be filed with the Secretary of the Department of Finance and Administration and the Treasurer of State as soon as practicable after the approval of the adoption of the ordinance under this section.
    1. If a municipality or county has filed an ordinance with the Treasurer of State under subsection (c) of this section, the municipality or county may elect to have its share of collections of the net casino gaming receipts tax levied under The Arkansas Casino Gaming Amendment of 2018, Arkansas Constitution, Amendment 100, distributed to a bank or other depository designated in the ordinance adopted under this section.
      1. If a municipality or county elects to have funds distributed to a bank or other depository under subdivision (d)(1) of this section, the net casino gaming receipts tax levied under The Arkansas Casino Gaming Amendment of 2018, Arkansas Constitution, Amendment 100, shall be distributed to the bank or other depository designated in the ordinance rather than to the municipality or county.
      2. The distribution under subdivision (d)(2)(A) of this section shall continue until the municipality or county files a signed statement with the Treasurer of State to the effect that the bonds to which the net casino gaming receipts tax levied under The Arkansas Casino Gaming Amendment of 2018, Arkansas Constitution, Amendment 100, is pledged have been fully paid or are no longer outstanding.

History. Acts 2019, No. 703, § 2.

Subchapter 4 — Local Government Capital Improvement Revenue Bond Act

Publisher's Notes. Acts 1985, No. 976 confirmed and continued the authority of municipalities to levy the hotel and restaurant tax and to pledge the proceeds of that tax to tourism bonds by ordinance subject to referendum but without a prior vote of the people. It declared the proceeds of any hotel and restaurant tax pledged to tourism bonds issued under Acts 1971, No. 380, or bonds issued under the Local Government Capital Improvement Revenue Bond Act of 1985, § 14-164-401 et seq. for tourism projects, to be project revenues of the project financed. It further provided that the hotel and restaurant tax is not a “tax” as taxes are normally understood and intended for government support, but is a special levy paid and collected by those persons and entities peculiarly associated with and benefited by tourism. However, since the Local Government Bond Act of 1985, § 14-164-301 et seq. makes specific reference to hotel and restaurant taxes, and the Local Government Capital Improvement Revenue Bond Act of 1985, § 14-164-401 et seq. does not, it is uncertain which of these acts was intended to be referred to by Acts 1985, No. 976.

Acts 1987, No. 58, § 4, provided that the purpose of this act is to authorize municipalities and counties to finance all, or a portion of, capital improvements by issuing revenue bonds, a portion of the proceeds of which may be used to pay the costs of all, or a portion, of capital improvements and expenses of issuing the bonds and a major portion of the proceeds of which may be invested in consideration of contracts to make payments at least sufficient, alone or with other available revenues pledged, to pay the principal of, premium, if any, and interest on the bonds when due, and the General Assembly declared that the issuance of such bonds for such purposes is a public purpose for the issuance of revenue bonds under Ark. Const. Amend. 65.

Effective Dates. Acts 1987, No. 58, § 7: Feb. 18, 1987. Emergency clause provided: “It is hereby found and is hereby declared by the General Assembly of the State of Arkansas that for the benefit of the people of this State, the increase of their commerce, welfare and prosperity and the improvement and maintenance of their health and living conditions, it is essential and necessary that additional sources for the payment of revenue bonds be authorized to assist in the financing of capital improvements to which this act pertains. Therefore, an emergency is hereby declared to exist and this act, being necessary for the preservation of the public peace, health and safety, shall take effect and be in full force from and after its passage and approval.”

Acts 1987, No. 369, § 3: Mar. 23, 1987. Emergency clause provided: “It has been found and it is hereby declared that certain municipalities in this state cannot finance facilities for nonprofit organizations engaged primarily in public health, safety and disaster relief at affordable costs except by the use of bonds as authorized hereby and that there is an immediate need for facilities for such organizations, which serve important public functions. Therefore, an emergency is declared and this Act, being necessary for the public peace, health and safety, shall be in force upon its passage and approval.”

Acts 2005, No. 1551, § 8: Apr. 5, 2005. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the ability of local entities to issue bonds is an important component to the state economy; that laws concerning local capital improvement bonds are in need of immediate clarification in order to allow cities and counties to properly issue bonds for the benefit of the city, county, and state. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2005, No. 1980, § 5: Apr. 11, 2005. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that there is currently an energy crisis that threatens the economy of the State of Arkansas; that this poses an immediate and future peril to the health, safety, and welfare of its people; that the energy crisis is due to many factors, including, but not limited to, inefficiencies in the production of energy within the State of Arkansas, the decline in supplies of petroleum, natural gas, and other energy sources, increases in population, and the demand for natural resources; that the energy crisis will be perpetuated by a continued dependence on depletable energy resources that are subject to rapid increases in price and uncertain availability and by the wasteful and inefficient use of available energy supplies; that the energy crisis has adversely affected the growth and stability of agriculture, commerce, and industry within the State of Arkansas; that it is the responsibility of the State of Arkansas to encourage energy conservation and efficiency in order to alleviate the undesirable social and economic conditions created by the energy crisis; that the availability of financing for energy efficient facilities on favorable terms is necessary; and that this act is immediately necessary so facilities may be financed, projects accomplished, and the resulting public benefits realized. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

14-164-401. Title.

This subchapter shall be referred to and may be cited as the “Local Government Capital Improvement Revenue Bond Act of 1985.”

History. Acts 1985, No. 974, § 1; A.S.A. 1947, § 13-1261.

14-164-402. Definitions.

As used in this subchapter:

  1. “Bonds” means revenue bonds issued pursuant to this subchapter;
  2. “Capital improvements” means any of the following:
    1. City or town halls, courthouses, and administrative, executive, or other public offices;
    2. Court facilities;
    3. Jails;
    4. Police and sheriff stations, apparatus, and facilities;
    5. Firefighting facilities and apparatus;
    6. Public health facilities and apparatus;
    7. Hospitals, homes, and facilities;
    8. Facilities for nonprofit organizations engaged primarily in:
      1. Any of the following:
        1. Public health;
        2. Health systems support;
        3. Safety; or
        4. Disaster relief; and
      2. Related activities;
    9. Residential housing for low and moderate income, elderly, or individuals with disabilities and families;
    10. Parking facilities and garages;
    11. Educational and training facilities for public employees;
    12. Auditoriums;
    13. Stadiums and arenas;
    14. Convention, meeting, or entertainment facilities;
    15. Ambulance and other emergency medical service facilities;
    16. Civil defense or early warning facilities and apparatus;
    17. Air and water pollution control facilities;
    18. Drainage and flood control facilities;
    19. Storm sewers;
    20. Arts and crafts centers;
    21. Museums;
    22. Libraries;
    23. Public parks, playgrounds, or other public open space;
    24. Marinas;
    25. Swimming pools, tennis courts, golf courses, camping facilities, gymnasiums, and other recreational facilities;
    26. Tourist information and assistance centers;
  3. “Chief executive” means the mayor of a municipality or the county judge of a county;
  4. “Clerk” means the clerk or recorder of a municipality or county clerk of a county;
  5. “County” means any county in the State of Arkansas;
  6. “Efficiency savings” means the savings in operational cost realized by the issuer as a result of a performance-based efficiency project, which are capable of being verified by comparing the applicable project's annual operational cost after the implementation, construction, and installation of the performance-based efficiency project with:
    1. The applicable project's actual annual operational cost before the implementation, construction, and installation of the performance-based efficiency project; or
    2. In the case of a new performance-based efficiency project, the applicable project's projected annual operational cost without the implementation, construction, and installation of the performance-based efficiency project as determined by a professional engineer defined in § 17-30-101 who is not affiliated or associated with the qualified efficiency engineering company;
  7. “Issuer” means a municipality or a county;
  8. “Legislative body” means the quorum court of a county or the council, board of directors, board of commissioners, or similar elected governing body of a city or town;
  9. “Municipality” means any city or incorporated town in the State of Arkansas;
  10. “Operational cost” means any expenditure by an issuer for the operation of a project, including, but not limited to, utility costs, maintenance costs, payments required for third-party services, service contracts, including, but not limited to, commodities purchase contracts, labor costs, equipment costs, and material costs;
  11. “Ordinance” means an ordinance, resolution, or other appropriate legislative enactment of a legislative body;
  12. “Performance-based efficiency project” means:
    1. A new facility that is designed to reduce the consumption of energy or natural resources or results in operating cost savings as a result of changes that:
      1. Do not degrade the level of service or working conditions;
      2. Are measurable and verifiable under the International Performance Measurement and Verification Protocol, promulgated by the Arkansas Pollution Control and Ecology Commission in the rules required under § 19-11-1207; and
      3. Are measured and verified by an audit performed by an independent engineer or by a qualified efficiency engineering company, including the vendor providing the performance-based efficiency project; or
    2. An existing facility alteration that is designed to reduce the consumption of energy or natural resources or result in operating cost savings as a result of changes that conform with subdivisions (12)(A)(i) and (ii) of this section;
  13. “Project” means all, any combination, or any part of the capital improvements defined in subdivision (2) of this section;
  14. “Project revenues” means revenues derived from the capital improvements financed, in whole or in part, with the proceeds of bonds issued under this subchapter;
  15. “Qualified efficiency contract” means a contract for the implementation of one (1) or more performance-based efficiency projects and services provided by a qualified efficiency engineering company in which the energy and cost savings achieved by the installed performance-based efficiency project cover all performance-based efficiency project costs, including financing, over a specified contract term;
  16. “Qualified efficiency engineering company” means a person or business, including all subcontractors and employees of that person or business and third-party financing companies, that:
    1. Is properly licensed in the State of Arkansas;
    2. Has been reviewed and certified as a qualified efficiency engineering company under this subchapter;
    3. Is experienced in the design, implementation, measurement, verification, and installation of energy cost savings measures;
    4. Has at least five (5) years of experience in the analysis, design, implementation, installation, measurement, and verification of energy efficiency and facility improvements;
    5. Has the ability to arrange or provide the necessary financing to support a qualified efficiency contract; and
    6. Has the ability to perform under a contract that requires the person or business to guarantee the work performed by one (1) or more subcontractors;
  17. “Revenue bonds” means all bonds, notes, certificates or other instruments or evidences of indebtedness the repayment of which is secured by user fees, charges or other revenues other than assessments for local improvements and taxes:
    1. Derived from the project, or improvements financed in whole or in part by such bonds, notes, certificates or other instruments or evidences of indebtedness;
    2. From the operations of any government unit; or
    3. From any other special fund or source other than assessments for local improvements and taxes; and
  18. “Revenues” means project revenues or any other special fund or source other than taxes or assessments for local improvements including, without limitation, any acquired with bond proceeds and the revenues to be derived from them, and any other user fees, charges or revenues derived from the operations of any municipality or county and any agency, board, commission, or instrumentality.

(AA) Historical, cultural, natural, or folklore sites;

(BB) Fair and exhibition facilities;

(CC) Streets and street lighting, alleys, sidewalks, roads, bridges, and viaducts;

(DD) Airports, passenger or freight terminals, hangars, and related facilities;

(EE) Barge terminals, ports, harbors, ferries, wharves, docks, and similar marine services;

(FF) Slack water harbors, water resource facilities, waterfront development facilities, and navigational facilities;

(GG) Public transportation facilities;

(HH) Public water systems and related transmission and distribution facilities, storage facilities, wells, impounding reservoirs, treatment plants, lakes, dams, watercourses, and water rights;

(II) Sewage collection systems and treatment plants;

(JJ) Maintenance and storage buildings and facilities;

(KK) Incinerators;

(LL) Garbage and solid waste collection disposal, compacting, and recycling facilities of every kind;

(MM) Gas and electric generation, transmission, and distribution systems, including, without limiting the generality of the foregoing, hydroelectric generating facilities, dams, powerhouses, and related facilities;

(NN) Social and rehabilitative service facilities;

(OO) Animal control facilities and apparatus;

(PP) Communication facilities and apparatus; and

(QQ) Facilities and apparatus for voice, data, broadband, video, or wireless telecommunications services;

History. Acts 1985, No. 974, § 2; A.S.A. 1947, § 13-1262; Acts 1987, No. 58, § 1; 1987, No. 369, § 1; 1997, No. 208, § 12; 1997, No. 1130, § 1; 2005, No. 1551, § 7; 2005, No. 1980, § 1; 2011, No. 897, § 11; 2019, No. 383, §§ 18, 19; 2019, No. 703, § 3; 2019, No. 1090, §§ 1-3.

A.C.R.C. Notes. Acts 1997, No. 208, § 1, as reenacted by Acts 2017, No. 255, § 1, provided: “Legislative intent and purpose. The General Assembly hereby acknowledges that many of the laws relating to individuals with disabilities are antiquated, functionally outmoded, derogatory, and ambiguous or are inconsistent with more recently enacted provisions of the law. Consequently, it is the intent of the General Assembly and the purpose of this act to clarify the relevant chapters of Titles 1, 6, 9, 13, 14, 16, 17, 20, 22, 23, and 27 of the Arkansas Code of 1987 Annotated.”

The International Performance Measurement and Verification Protocol is a product of IPMV, Inc., a nonprofit organization.

Amendments. The 1997 amendment by No. 208 substituted “individuals with disabilities” for “handicapped persons” in the middle of (2).

The 1997 amendment by No. 1130 inserted “and any other user fees, charges or revenues … commission, or instrumentality thereof” in (12); and added (13).

The 2005 amendment by No. 1551 inserted the subdivision (A)-(NN) designations in (2) and made related changes; substituted “other health care” for “similar extended-care” in (2)(G); deleted “for public employees” from the end of (2)(K); added “and arenas” in (2)(M); substituted “or early warning facilities and apparatus” for “facilities” in (2)(P); and added (2)(OO) and (PP).

The 2005 amendment by No. 1980 inserted present (6), (10), (12), (15), and (16), and redesignated the remaining subsections accordingly; inserted “revenue” in (1); redesignated former (17)(i)-(iii) as present (17)(A)-(B); and made related changes.

The 2011 amendment substituted “a professional engineer defined in § 17-30-101” for “a licensed professional engineer” in (6)(B).

The 2019 amendment by No. 383 deleted the (2)(A)(i) through (2)(A)(iii) designations; and added the introductory language of (2)(H)(i).

The 2019 amendment by No. 703 added (2)(QQ).

The 2019 amendment by No. 1090 rewrote (12), (15), and (16).

Case Notes

Cited: Bd. of Trs. of the Ark. Pub. Emples. Ret. Sys. v. Garrison, 2019 Ark. App. 245, 576 S.W.3d 485 (2019).

14-164-403. Construction.

This subchapter shall be construed liberally to effectuate the legislative intent and the purposes of this subchapter as complete and independent authority for the performance of each and every act and thing herein authorized and all powers granted in this subchapter shall be broadly interpreted to effectuate the intent and purposes and not as a limitation of powers.

History. Acts 1985, No. 974, § 11; A.S.A. 1947, § 13-1270.

14-164-404. Subchapter supplemental.

It is the specific intent of this subchapter that the provisions hereof are supplemental to other constitutional or statutory provisions which may provide for the financing of capital improvements.

History. Acts 1985, No. 974, § 10; A.S.A. 1947, § 13-1269.

14-164-405. Bonds — Issuance generally.

  1. Municipalities and counties are authorized to issue bonds for capital improvements and performance-based efficiency projects within, near, or within and near the municipality or county. These bonds shall be issued pursuant to an ordinance adopted by the legislative body specifying the principal amount of bonds to be issued, the purpose or purposes for which the bonds are to be issued, and provisions with respect to the bonds.
  2. If determined to be in the interest of the municipality or county, a portion of the bonds may be used to finance a project or a performance-based efficiency project, and expenses in connection with the issuance of the bonds and a major portion of the proceeds may be invested in consideration of a contract for the full term of the bonds or a shorter period at a rate or rates at least sufficient to provide for, alone or with other revenues that may be pledged, debt service for the bonds.

History. Acts 1985, No. 974, § 3; A.S.A. 1947, § 13-1263; Acts 1987, No. 58, § 2; 2005, No. 1980, § 2; 2009, No. 545, § 1.

Amendments. The 2005 amendment inserted “and performance-based efficiency projects” in (a); and inserted “or a performance-based efficiency project” in (b).

The 2009 amendment inserted “within, near, or within and near the municipality or county” in (a).

Case Notes

Cited: Bd. of Trs. of the Ark. Pub. Emples. Ret. Sys. v. Garrison, 2019 Ark. App. 245, 576 S.W.3d 485 (2019).

14-164-406. Bonds — Terms and conditions.

  1. As the ordinance or trust indenture which is authorized in this subchapter may provide, the bonds may:
    1. Be in registered or other form;
    2. Be in such denominations;
    3. Be exchangeable for bonds of another denomination;
    4. Be made payable at such places within or without the state;
    5. Be issued in one (1) or more series;
    6. Bear such date or dates;
    7. Mature at such time or times;
    8. Be payable in such medium of payment;
    9. Be subject to such terms of redemption; and
    10. Contain such other terms, covenants, and conditions, including, without limitation, those pertaining to:
      1. The custody and application of the proceeds of the bonds;
      2. The collection and disposition of project revenues;
      3. The maintenance of various funds and reserves;
      4. The nature and extent of the pledge and security;
      5. The remedies on default;
      6. The rights, duties, and obligations of the legislative body of the issuer and the trustee, if any, for the owners of the bonds, and the rights of the owners of the bonds.
  2. All bonds issued under the provisions of this subchapter shall be and are declared to be negotiable instruments within the meaning of the negotiable instruments law of the state.

History. Acts 1985, No. 974, §§ 3, 7; A.S.A. 1947, §§ 13-1263, 13-1267.

14-164-407. Bonds — Trust indenture.

  1. The ordinance authorizing the bonds may provide for the execution by the chief executive officer of the issuer of a trust indenture which defines the rights of the owners of the bonds and provides for the appointment of a trustee for the owners of the bonds.
  2. The trust indenture may provide for the priority between and among successive issues and may contain any of the provisions set forth in § 14-164-406 and any other terms, covenants, and conditions that are deemed desirable.

History. Acts 1985, No. 974, § 3; A.S.A. 1947, § 13-1263.

14-164-408. Bonds — Contents.

It shall be plainly stated on the face of each bond that the bond has been issued under the provisions of this subchapter and that it does not constitute an indebtedness of the issuer within any constitutional or statutory limitation.

History. Acts 1985, No. 974, § 3; A.S.A. 1947, § 13-1263.

14-164-409. Bonds — Sale.

The bonds may be sold at public or private sale for such price, including, without limitation, sale at a discount, and in such manner as the legislative body of the issuer may determine.

History. Acts 1985, No. 974, § 3; A.S.A. 1947, § 13-1263.

14-164-410. Bonds — Execution.

The bonds shall be executed in the manner provided by the Registered Public Obligations Act of Arkansas, § 19-9-401 et seq., as that act may be amended.

History. Acts 1985, No. 974, § 3; A.S.A. 1947, § 13-1263.

14-164-411. Bonds — Payment — Security.

  1. The principal of and interest on the revenue bonds issued pursuant to this section and § 14-164-402 shall be secured by a pledge of, and shall be payable from, revenues, as defined in § 14-164-402.
  2. Notwithstanding any provision of Arkansas law including, but not limited, § 14-200-101, et seq., in any municipality or county in which revenues have been pledged to secure the payment of revenue bonds as authorized by this subchapter, the portion of the revenues pledged to retire the revenue bonds shall not, except as permitted by the ordinance, order or trust indenture pursuant to which such revenue bonds are issued and secured, be repealed, abolished, or reduced so long as such revenue bonds, and any bonds issued to refund such revenue bonds, are outstanding.

History. Acts 1985, No. 974, § 3; A.S.A. 1947, § 13-1263; Acts 1987, No. 58, § 2; 1997, No. 1130, § 2.

Amendments. The 1997 amendment added (b); and rewrote (a).

14-164-412. Bonds — Mortgage lien.

  1. The ordinance or trust indenture authorized in §§ 14-164-405 or 14-164-407 may, but need not, impose a foreclosureable mortgage lien upon the capital improvements financed or refinanced, in whole or in part, with the proceeds of bonds issued under this subchapter.
  2. The nature and extent of the mortgage lien may be controlled by the ordinance or trust indenture including, without limitation, provisions pertaining to:
    1. The release of all or part of the land, buildings, or facilities from the mortgage lien;
    2. The priority of the mortgage lien in the event of successive bond issues; and
    3. Authorizing any owner of bonds, or a trustee on behalf of all owners, either at law or in equity, to enforce the mortgage lien and, by proper suit, compel the performance of the duties of the officials of the issuer set forth in this subchapter or in the ordinance or trust indenture authorizing or securing the bonds.
  3. References in this section to mortgage lien shall include a security interest in any personal property constituting the capital improvements, or part thereof, financed or refinanced, in whole or in part, with the proceeds of bonds issued under this subchapter.

History. Acts 1985, No. 974, § 5; A.S.A. 1947, § 13-1265.

14-164-413. Bonds — Special obligations.

The bonds issued under this subchapter shall not be general obligations of the issuer, but shall be special obligations, and in no event shall the bonds constitute an indebtedness of the issuer within the meaning of any constitutional or statutory limitation.

History. Acts 1985, No. 974, § 3; A.S.A. 1947, § 13-1263.

14-164-414. Bonds — Liability of legislative body's officers, employees, or members.

No officer, employee, or member of the legislative body of the issuer shall be personally liable on any bonds issued under the provisions of this subchapter or for any damages sustained by any person in connection with any contracts entered into to carry out the purposes and intent of this subchapter unless the person has acted with a corrupt intent.

History. Acts 1985, No. 974, § 8; A.S.A. 1947, § 13-1268.

14-164-415. Bonds — Successive issues.

There may be successive bond issues for the purpose of financing the same capital improvements.

History. Acts 1985, No. 974, § 3; A.S.A. 1947, § 13-1263.

14-164-416. Bonds — Tax exemption.

Bonds issued under the provisions of this subchapter and the income thereon shall be exempt from all state, county, and municipal taxes, including, without limitation, all income, property, and inheritance taxes.

History. Acts 1985, No. 974, § 6; A.S.A. 1947, § 13-1266.

14-164-417. Alternative financing.

Nothing contained in this subchapter shall be deemed to be a restriction or limitation upon alternative means of financing previously available or hereafter made available to municipalities or counties for the purposes set forth in this subchapter.

History. Acts 1985, No. 974, § 10; A.S.A. 1947, § 13-1269.

14-164-418. Refunding bonds.

  1. Bonds may be issued under this subchapter to refund any outstanding bonds issued pursuant to this subchapter or to refund any outstanding bonds, whether revenue bonds or not, issued pursuant to any other law for the purpose of financing capital improvements or a performance-based efficiency project.
    1. The refunding bonds may be either sold for cash or delivered in exchange for the outstanding obligations.
    2. If sold for cash, the proceeds may be either applied to the payment of the obligations refunded or deposited in irrevocable trust for the retirement thereof either at maturity or on an authorized redemption date.
  2. Refunding bonds shall in all respects be authorized, issued, and secured in the manner provided in this subchapter.
  3. The ordinance under which the refunding bonds are issued may provide that any refunding bonds shall have the same priority of lien on revenues as originally pledged for payment of the obligation refunded thereby.

History. Acts 1985, No. 974, § 4; A.S.A. 1947, § 13-1264; Acts 1987, No. 58, § 3; 2005, No. 1980, § 3.

Amendments. The 2005 amendment, in (a), inserted “whether revenue bonds or not” and “or a performance-based efficiency project.”

14-164-419. Contract requirements.

  1. All services provided by a qualified efficiency engineer in completing a performance-based efficiency project pursuant to a qualified efficiency contract, including, but not limited to, the procurement of any goods and services in connection with the performance-based efficiency project, shall be considered professional services under § 19-11-801 et seq.
  2. An issuer's engagement of a qualified efficiency engineering company and execution of a qualified efficiency contract in favor of a qualified efficiency engineering company shall be subject to § 19-11-801 et seq., but shall be exempt from all competitive bidding statutes, including, but not limited to, § 14-43-601 et seq., § 14-47-101 et seq., § 14-48-101 et seq., § 14-54-301 et seq., § 14-54-401 et seq., § 14-58-301 et seq., § 14-141-101 et seq., the General Accounting and Budgetary Procedures Law, § 19-4-101 et seq., § 19-11-101 et seq., § 22-1-201 et seq., the Building Authority Division Act, § 22-2-101 et seq., § 22-3-202 et seq., § 22-4-101 et seq., § 22-5-101 et seq., § 22-6-101 et seq., § 22-7-101 et seq., § 22-8-101 et seq., and § 22-9-101 et seq.

History. Acts 2005, No. 1980, § 4.

Subchapter 5 — Economic and Industrial Development Revenue Bond Law

Effective Dates. Acts 1985, No. 1017, § 18: Apr. 17, 1985. Emergency clause provided: “It is hereby found and declared that serious economic distress now exists in Arkansas, in part due to the need for certainty in the issuance of industrial development revenue bonds and this economic distress has been manifest in the increasing hesitancy to invest capital in industry in Arkansas, an unemployment rate in the State of Arkansas which exceeds the unemployment rate for the United States, and in increasing number of business failures and there is an immediate need for the General Assembly to establish another program for industrial development and to take the actions set forth in this Act so that the industrial development program of the State and her counties and municipalities can proceed, all of which is necessary for the achievement of the public benefits flowing from the retention or expansion of existing employment and the obtaining of additional employment and payrolls. The immediate effectiveness of this Act is necessary. Therefore, an emergency is hereby declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in force and effect upon its passage and approval.”

14-164-501. Title.

This subchapter shall be referred to and may be cited as the “Economic and Industrial Development Revenue Bond Law of 1985.”

History. Acts 1985, No. 1017, § 17; A.S.A. 1947, § 13-1271.

14-164-502. Legislative findings and determinations.

It is found and declared by the General Assembly of the State of Arkansas that:

    1. This state's program for industrial and economic development and the financing thereof is inadequate; and
    2. As a result, there are inadequate opportunities for employment of its inhabitants in industry and industry is not able to adequately replace, retool, or modernize with new technology, existing facilities; and
  1. The securing and developing of industry upon terms and under conditions competitive with those available in other states is essential to the economic growth and development of this state; and
  2. The economic and other benefits to the state and its people resulting from economic development are essential to the public health, safety, and welfare of the people of Arkansas; and
  3. Preserving and maintaining economic activity and the securing and developing of industry are essential public purposes serving to benefit the people of Arkansas; and
  4. The issuance of bonds and other evidences of indebtedness under the provisions of this subchapter will promote the economic welfare of this state and its people and is for a public purpose.

History. Acts 1985, No. 1017, § 1; A.S.A. 1947, § 13-1272.

14-164-503. Purpose and supplemental intent.

  1. This subchapter is enacted by the General Assembly in the exercise of its inherent powers under Arkansas Constitution, Amendment 7, § 1 and not under any other express constitutional provision.
  2. This subchapter is intended to supplement all other law which is designed to secure and develop industry and, when applicable in accordance with the provisions of this subchapter, may be used by any municipality or county as an alternative notwithstanding any constitutional provision or any other act authorizing a municipality or county, or any commission or agency thereof, to issue bonds for the purpose of securing and developing industry.

History. Acts 1985, No. 1017, § 14; A.S.A. 1947, § 13-1285.

14-164-504. Definitions.

As used in this subchapter, unless the context otherwise requires:

  1. “County” means a county of this state, or where a county is divided into two (2) districts the term “county” shall mean the entire county or either district of the county, in order that either district of a county so divided may issue revenue bonds and do all other acts in the manner and for the purposes authorized in this subchapter;
  2. “Governing body” means the council, board of directors, or city commission of any municipality;
  3. “Municipality” means a city of the first or second class or an incorporated town;
  4. “Equip” means to install or place on or in any building or structure equipment of any and every kind, whether or not affixed, including, without limiting the generality of the foregoing, building service equipment, fixtures, heating equipment, air conditioning equipment, machinery, furniture, furnishings, and personal property of every kind;
  5. “Sell” means to sell for such price, in such manner, and upon such terms as the municipality or county shall determine, including, without limiting the generality of the foregoing, private or public sale, and if public pursuant to such advertisement as the municipality or county shall determine, sell for cash or credit payable in lump sum or in installments over such period as the municipality or county shall determine, and if on credit with or without interest and at such rate or rates as the municipality or county shall determine;
  6. “Lease” means to lease for such rentals, for such period or periods, and upon such terms and conditions as the municipality or county shall determine, including, without limiting the generality of the foregoing, the granting of such renewal or extension options for such rentals, for such period or periods, and upon such terms and conditions as the municipality or county shall determine and the granting of such purchase options for such prices and upon such terms and conditions as the municipality or county shall determine;
  7. “Facilities” or “industrial facilities” means land, interests in land, buildings, facilities, equipment, or related improvements necessary or useful for the securing, developing, preserving, or maintaining of economic activity within or near the municipality or county, including, but not limited to, manufacturing facilities; warehouse and storage facilities; distribution facilities; repair and maintenance facilities; communications facilities; facilities for computer and data processing equipment and related services; agricultural storage, processing, packaging, shipping, and other agricultural facilities; transportation facilities; corporate and management offices for industry; sewage collection systems and treatment plants; and industrial parks;
  8. “Construct” means to acquire or build, in whole or in part, in such manner and by such method, including contracting therefor, and if the latter, by negotiation or bidding upon such terms and pursuant to such advertising as the municipality or county shall determine to be in the public interest and necessary, under the circumstances existing at the time, to accomplish the purposes of and authorities set forth in this subchapter;
  9. “Surplus revenues” means revenues remaining after adequate provision shall have been made for expenses of operation, maintenance, and depreciation and all requirements of ordinances, orders, or indentures securing bonds, theretofore, or thereafter issued to finance the cost of acquiring, constructing, reconstructing, extending, or improving the lands, buildings, or facilities for developing and securing industry have been fully met and complied with;
  10. “Mortgage lien” means and includes security interest in any personal property embodied in the facilities acquired, constructed, reconstructed, extended, equipped, or improved, in whole or in part, with the proceeds of bonds issued under this subchapter.

History. Acts 1985, No. 1017, §§ 6, 8, 12; A.S.A. 1947, §§ 13-1273, 13-1278, 13-1280.

14-164-505. Construction — Subchapter controlling.

  1. This subchapter shall be liberally construed to accomplish its purposes.
    1. This subchapter shall constitute the sole authority for the accomplishment of the purposes of this subchapter, separate and independent of any other act or constitutional provision pertaining to such purposes.
    2. Furthermore, it shall not be necessary to comply with general provisions of other laws dealing with public facilities, their acquisition, construction, leasing, encumbering, or disposition.

History. Acts 1985, No. 1017, § 14; A.S.A. 1947, § 13-1285.

14-164-506. Authority to obtain and develop industry.

Any municipality and any county is authorized to own, acquire, construct, reconstruct, extend, equip, improve, operate, maintain, sell, lease, contract concerning, or otherwise deal in or dispose of industrial facilities of any and every nature whatever that can be used in securing or developing industry within or near the municipality or county.

History. Acts 1985, No. 1017, § 2; A.S.A. 1947, § 13-1274.

14-164-507. Bonds — Authorization to issue — Amount.

Municipalities and counties are authorized to use any available revenues for the accomplishment of the purposes set forth in § 14-164-506, and are authorized to issue revenue bonds and to use the proceeds thereof for the accomplishment of the purposes set forth in § 14-164-506, either alone or together with other available funds and revenues. The bonds may be issued in an amount sufficient to pay all costs of accomplishing the specified purposes; all costs of issuing the bonds; the amount necessary for a reserve, if desirable; the amount necessary to provide for debt service on the bonds until revenues for the payment thereof are available; and any other costs of whatever nature necessarily incidental to the accomplishment of the specified purposes. In addition, revenue bonds are authorized for the purpose of refunding bonds as provided in § 14-164-525.

History. Acts 1985, No. 1017, § 3; A.S.A. 1947, § 13-1275.

14-164-508. Bonds — Authorizing ordinance or order generally.

In the ordinance of the municipality or the order of the county court authorizing the issuance of revenue bonds, the municipality or the county may provide for the initial issuance of one (1) or more bonds aggregating the principal amount of the entire issue and may, in the ordinance or order, make such provisions for installment payments of the principal amount of such bonds as it may consider desirable and may provide for such bonds to be payable to bearer with interest coupons, or to be registrable as to principal only with interest coupons, or to be registrable as to principal and interest, and where interest accruing thereon is not represented by interest coupons, for the indorsement of payment of interest on such bonds.

History. Acts 1985, No. 1017, § 5; A.S.A. 1947, § 13-1277.

14-164-509. Bonds — Authorizing ordinance or order — Adoption.

      1. Revenue bonds authorized in this subchapter may be issued by a municipality upon the adoption of an ordinance therefor by the governing body of the municipality.
      2. Revenue bonds authorized in this subchapter may be issued by a county upon the entry of an order of the county court of the county.
    1. The ordinance or order shall state the purpose for which the revenue bonds are to be issued, and the total amount of the issue.
    1. No such ordinance or order shall be adopted or entered until after a public hearing is held before the governing body of the municipality or the county court of the county.
    2. The hearing may be adjourned from time to time.
    1. At least ten (10) days prior to the date of the hearing, notice thereof shall be filed with the Director of the Arkansas Economic Development Commission and the State Securities Commissioner and shall be published one (1) time in a newspaper of general circulation in the municipality or county.
    2. The notice provided for in this subsection shall be published and filed by the clerk or recorder of the municipality or by the county clerk of the county.
    3. It shall not be necessary that the action be taken by the governing body or county court directing publication and filing of the notice, and the clerk or recorder, or county clerk, as the case may be, shall publish and file notice when requested to do so by the mayor or any member of the governing body in the case of a municipality or by the county judge in the case of a county.
  1. After the hearing, the ordinance or order, as introduced or as modified or amended, may be adopted or entered.

History. Acts 1985, No. 1017, § 4; A.S.A. 1947, § 13-1276; Acts 1997, No. 540, § 17.

Amendments. The 1997 amendment substituted “Arkansas Economic Development Commission” for “Arkansas Industrial Development Commission” in (c)(1).

14-164-510. Bonds — Terms and conditions.

  1. As the ordinance may provide, the bonds issued under the authority of this subchapter may:
    1. Be in bearer or registered form, with or without coupons, and may be subject to exchange or modification in that regard;
    2. Be issued in one (1) or more series;
    3. Bear such date or dates;
    4. Mature at such time or times;
    5. Bear interest at such rate or rates;
    6. Be in such form;
    7. Be executed in such manner;
    8. Be payable in such medium of payment and at such place or places;
    9. Be subject to such terms of redemption; and
    10. Contain such terms, covenants, and conditions as the ordinance may provide, including, without limitation, those pertaining to:
      1. The custody and application of proceeds of the bonds;
      2. The collection and disposition of revenues;
      3. The maintenance of various funds and reserves;
      4. The nature and extent of the security;
      5. The rights, duties, and obligations of the municipality or county and the trustee for the holders or registered owners of the bonds; and
      6. The rights of the holders or registered owners of the bonds.
  2. The bonds shall have all the qualities of negotiable instruments under the negotiable instruments laws of this state.

History. Acts 1985, No. 1017, § 5; A.S.A. 1947, § 13-1277.

14-164-511. Bonds — Trust indenture.

  1. The ordinance or order may provide for the execution by the municipality or county of an indenture which defines the rights of the bondholders and provides for the appointment of a trustee for the bondholders.
  2. The indenture may control the priority between successive issues and may contain any other items, covenants, and conditions that are deemed desirable, including, without limitation, those pertaining to:
    1. The custody and application of the proceeds of the bonds;
    2. The collection and disposition of revenues;
    3. The maintenance of various funds and reserves;
    4. The nature and extent of the security;
    5. The rights, duties, and obligations of the municipality or county and the trustee for the holders or registered owners of the bonds; and
    6. The rights of the holders or registered owners of the bonds.
  3. It shall not be necessary for the municipality or county to publish any indenture, lease, or any other agreement if:
    1. The ordinance authorizing an indenture, the ordinance authorizing a lease, or the ordinance authorizing any other agreement:
      1. Is published as required by the law governing the publication of ordinances of a municipality; and
      2. Advises that a copy of the indenture, lease, or other agreement, as the case may be, is on file in the office of the clerk or recorder of the municipality for inspection by an interested person; and
    2. The copy of the indenture, lease, or other agreement, as the case may be, is filed with the clerk or recorder of the municipality or county clerk.

History. Acts 1985, No. 1017, § 5; A.S.A. 1947, § 13-1277.

14-164-512. Bonds — Contents.

It shall be plainly stated on the face of each bond that the bond has been issued under the provisions of this subchapter, and that it does not constitute an indebtedness of the municipality or county within any constitutional or statutory limitation.

History. Acts 1985, No. 1017, § 6; A.S.A. 1947, § 13-1278.

14-164-513. Bonds — Sale.

The bonds may be sold for such price, including, without limitation, sale at a discount, and in such manner as the municipality or county may determine by ordinance or order.

History. Acts 1985, No. 1017, § 5; A.S.A. 1947, § 13-1277.

14-164-514. Bonds, coupons — Execution.

    1. The bonds shall be executed by the mayor and the city clerk or recorder of the municipality, or by the county judge and the county clerk of the county, as the case may be.
    2. In case any of the officers whose signatures appear on the bonds or coupons shall cease to be such officers before the delivery of such bonds or coupons, such signatures shall nevertheless be valid and sufficient for all purposes.
  1. The bonds shall be executed in the manner provided by the Registered Public Obligations Act of Arkansas, § 19-9-401 et seq., as that act may be amended.
  2. The coupons attached to the bonds may be executed by the facsimile signature of the mayor or county judge.

History. Acts 1985, No. 1017, § 5; A.S.A. 1947, § 13-1277.

14-164-515. Bonds — Successive issues.

There may be successive bond issues for the purpose of financing the same industrial facilities, involving one (1) or more industries, and there may be successive bond issues for financing the cost of reconstructing, replacing, constructing additions to, extending, improving, and equipping industrial facilities already in existence, whether or not originally financed by bonds issued under this subchapter, with each successive issue to be authorized as provided by this subchapter.

History. Acts 1985, No. 1017, § 5; A.S.A. 1947, § 13-1277.

14-164-516. Bonds — Priority among issues.

Priority between and among issues and successive issues as to security of the pledge of revenues and mortgage liens on the land, buildings, and facilities involved may be controlled by the ordinance or order authorizing the issuance of bonds under this subchapter.

History. Acts 1985, No. 1017, § 5; A.S.A. 1947, § 13-1277.

14-164-517. Bonds — Conversion.

The municipality or the county may make provision in the ordinance or order for the manner and circumstances in which and under which bonds issued under § 14-164-508 may, in the future at the request of the holders or registered owners thereof, be converted into bonds of smaller denomination, which bonds of smaller denomination may in turn be either coupon bonds payable to bearer or bonds registrable as to principal only, or bonds registrable as to both principal and interest.

History. Acts 1985, No. 1017, § 5; A.S.A. 1947, § 13-1277.

14-164-518. Bonds — Payment.

The principal of and interest on the revenue bonds, and paying agent's fees, shall be payable in the first instance from gross revenues derived from the lands, buildings, or facilities acquired, constructed, reconstructed, extended, or improved, in whole or in part, with the proceeds of the bonds.

History. Acts 1985, No. 1017, § 6; A.S.A. 1947, § 13-1278.

14-164-519. Bonds — Surplus revenues.

The municipality or county is authorized to pledge to and use for the payment of the principal of and interest on the bonds, and paying agent's fees, surplus revenues derived from other lands, buildings, or facilities used and useful for securing and developing industry.

History. Acts 1985, No. 1017, § 6; A.S.A. 1947, § 13-1278.

14-164-520. Bonds — Mortgage lien.

  1. The ordinance, order, or indenture referred to in §§ 14-164-508, 14-164-509, and 14-164-511 may, but need not, impose a foreclosable mortgage lien upon the facilities acquired, constructed, reconstructed, extended, equipped, or improved, in whole or in part, with the proceeds of bonds issued under this subchapter.
  2. The nature and extent of the mortgage lien may be controlled by the ordinance, order, or indenture including, without limitation, provisions pertaining to the release of all or part of the land, buildings, or other facilities from the mortgage lien and the priority of the mortgage lien in the event of successive bond issues as authorized by § 14-164-515.
  3. The ordinance, order, or indenture authorizing or securing the bonds may authorize any holder or registered owner of bonds issued under the provisions of this subchapter, or a trustee on behalf of all holders and registered owners, either at law or in equity, to enforce the mortgage lien and, by proper suit, compel the performance of the duties of the officials of the issuing municipality or county set forth in this subchapter and set forth in the ordinance, order, or indenture authorizing or securing the bonds.

History. Acts 1985, No. 1017, § 8; A.S.A. 1947, § 13-1280.

14-164-521. Bonds — Default — Receiver.

  1. In the event of a default in the payment of the principal of or interest on any revenue bonds issued under this subchapter, any court having jurisdiction may appoint a receiver to take charge of the land, buildings, or facilities acquired, constructed, reconstructed, extended, equipped, or improved, in whole or in part, with the proceeds of revenue bonds issued under this subchapter, upon which land, buildings, or facilities, or any part thereof, there is a mortgage lien securing the revenue bonds with reference to which there is such a default in the payment of principal or interest.
  2. The receiver shall have the power to operate and maintain the land, buildings, or facilities and to charge and collect rates or rents sufficient to provide for the payment of the principal of and interest on the bonds, after providing for the payment of any cost of receivership and operating expenses of the land, buildings, or facilities, and to apply the income and revenues derived from the land, buildings, or facilities in conformity with this subchapter and the ordinance, order, or indenture authorizing or securing the bonds.
  3. When the default has been cured, the receivership shall be ended and the properties returned to the municipality or county.
  4. The relief afforded by this section shall be construed to be in addition and supplemental to the remedies that may be afforded the trustee for the bondholders and the bondholders in the ordinance, order, or indenture authorizing or securing the bonds, and shall be so granted and administered as to accord full recognition to priority rights of bondholders as to the pledge of revenues from, and mortgage lien on, the land, buildings, or facilities as specified in and fixed by the ordinances, orders, or indentures authorizing or securing successive bond issues.

History. Acts 1985, No. 1017, § 9; A.S.A. 1947, § 13-1281.

14-164-522. Bonds — Special obligations.

The bonds issued under the authority of this subchapter shall not be general obligations of the municipality or county, but shall be special obligations, and in no event shall the revenue bonds constitute an indebtedness of the municipality or county within the meaning of any constitutional or statutory limitation.

History. Acts 1985, No. 1017, § 6; A.S.A. 1947, § 13-1278.

14-164-523. Bonds — Tax exemption.

Bonds issued under the provisions of this subchapter shall be exempt from all state, county, and municipal taxes, including, without limitation, income and inheritance taxes.

History. Acts 1985, No. 1017, § 10; A.S.A. 1947, § 13-1282.

14-164-524. Interim financing.

  1. If the issuance of bonds is authorized in accordance with the provisions of this subchapter, a municipality or county is authorized to obtain interim financing pending the delivery of all or any part of the bonds from such sources and upon such terms as the municipality or the county shall determine.
  2. As evidence of any indebtedness so incurred, the municipality or the county may execute and deliver its promissory note or notes and pledge to the payment thereof any revenues authorized by this subchapter to be pledged to revenue bonds and may secure the notes as revenue bonds issued under this subchapter may be secured.
  3. The notes shall not be general obligations of the municipality or county but shall be special obligations, and in no event shall such notes constitute an indebtedness of the municipality or county within the meaning of any constitutional or statutory limitation.
  4. The municipality or county may use, as distinguished from pledge, any available revenues to pay or to apply to the payment of the principal of and interest on the notes and may use the proceeds of revenue bonds, either alone or with other available revenues, to pay the principal and interest on the notes.
  5. The notes may bear such date or dates, may mature at such time or times, not exceeding thirty-six (36) months from their respective dates, may bear interest at such rate or rates, may be in such form, may be executed in such manner, may be payable at such place or places, may contain such provisions for prepayment prior to maturity and may contain such other terms, or covenants, and conditions as the ordinance or order may provide, not inconsistent with the provisions of this subchapter pertaining to revenue bonds and pertaining to the security, rights, duties, and obligations of the municipality or county and the trustee for the holders or registered owners of the bonds and the rights of the holders or registered owners of the bonds.

History. Acts 1985, No. 1017, § 5; A.S.A. 1947, § 13-1277.

14-164-525. Refunding bonds.

  1. Revenue bonds may be issued under this subchapter for the purpose of refunding any obligations issued under this subchapter or similar acts.
  2. The refunding bonds may be combined with bonds issued under the provisions of § 14-164-507 into a single issue.
  3. When bonds are issued under this section for refunding purposes, such bonds may either be sold or delivered in exchange for the outstanding obligations.
  4. If sold, the proceeds may be either applied to the payment of the obligations refunded or deposited in escrow for the retirement thereof.
  5. The ordinance or order under which the refunding bonds are issued may provide that any of the refunding bonds shall have the same priority of lien on the revenues pledged for their payment as was enjoyed by the obligations refunded thereby.
  6. The refunding bonds shall be issued and secured in the manner provided for other bonds issued under this subchapter and shall have all the attributes of such bonds.

History. Acts 1985, No. 1017, § 7; A.S.A. 1947, § 13-1279.

14-164-526. Investment in bonds authorized.

Any municipality or county, or any board, commission, or other authority thereof, or the boards of trustees, respectively, of the firemen's relief and pension fund and the policemen's pension and relief fund of any such municipality or any county, or the board of trustees of any retirement system created by the General Assembly may, in its discretion, invest any of its funds in the revenue bonds issued under the provisions of this subchapter, and revenue bonds issued under this subchapter shall be eligible to secure the deposit of public funds.

History. Acts 1985, No. 1017, § 11; A.S.A. 1947, § 13-1283.

14-164-527. Bonds authorized under other laws.

The provisions of this subchapter shall not restrict the issuance, pursuant to the authority of other laws, of any bonds with regard to which a resolution, ordinance, order, or similar action authorizing or committing to the issuance of bonds has been adopted or taken by a municipality or county prior to or after April 17, 1985.

History. Acts 1985, No. 1017, § 15; A.S.A. 1947, § 13-1286.

14-164-528. Municipality not authorized to acquire utility.

Nothing in this subchapter shall be construed to authorize any municipality to issue or sell revenue bonds or use the proceeds thereof to purchase, condemn, or otherwise acquire a utility plant or distribution system owned or operated by a regulated public utility.

History. Acts 1985, No. 1017, § 13; A.S.A. 1947, § 13-1284.

Subchapter 6 — Compacts by Counties for Railroad Operations

14-164-601. Legislative intent.

  1. The General Assembly recognizes that:
    1. The continued industrial growth and development of some counties in the state is seriously threatened by the discontinuation of the operation of a railroad in these counties;
    2. These counties should be given the specific authority to issue general obligation bonds or revenue bonds to acquire the railroad and to repair and operate the railroad in order to avoid the loss of existing industry and to attract new industrial development in the area; and
    3. An adequate transportation system is essential to the industrial development of any area.
  2. The General Assembly therefore determines that:
    1. A railroad is an industrial facility, or a facility useful in securing and developing industry, as contemplated by Arkansas Constitution, Amendment 49 [repealed] and §§ 14-164-201 — 14-164-206 and 14-164-208 — 14-164-224;
    2. The acquisition of an existing railroad and the acquisition and operation or leasing out of it for operation is a proper industrial development project to be financed by the issuance of industrial development bonds under Arkansas Constitution, Amendment 49 and §§ 14-164-201 — 14-164-206 and 14-164-208 — 14-164-224; and
    3. This subchapter is designed to give contiguous counties specific authority to jointly issue bonds to be used to lease or otherwise acquire, repair, maintain, and operate, or lease out for operation, an existing railroad in these counties.

History. Acts 1983, No. 322, § 6; A.S.A. 1947, § 13-1624.

A.C.R.C. Notes. It is questionable whether Ark. Const. Amend. 49 is repealed in whole or whether only those provisions that conflict with Ark. Const. Amend. 62 are repealed by Ark. Const. Aend. 62.

14-164-602. Definition.

As used in this subchapter, unless the context otherwise requires, “facilities” includes railroads and railroad locomotives, railroad cars, and other railroad equipment and facilities.

History. Acts 1983, No. 322, § 4; A.S.A. 1947, § 13-1622.

14-164-603. Authority generally.

  1. Any two (2) or three (3) contiguous counties in the state are authorized to enter into a compact where the participating counties agree to issue bonds, jointly or individually, under the provisions of Arkansas Constitution, Amendment 49 [repealed] or under the provisions of §§ 14-164-201 — 14-164-206 and 14-164-208 — 14-164-224 and to use the proceeds of the bonds for the purpose of leasing or otherwise acquiring and repairing, maintaining, and operating, or leasing out for operation, an existing railroad within the participating counties.
    1. Any such compact shall be evidenced by an ordinance of the quorum court of each of the participating counties.
    2. The ordinance shall identify and contain the terms of the compact, including the obligations of the particular county under the terms of the compact.
  2. Any one (1) county in the State of Arkansas is authorized to provide rail service pursuant to this subchapter, and any such county ordinance shall be treated as a compact for purposes of this subchapter.

History. Acts 1983, No. 322, § 1; A.S.A. 1947, § 13-1619.

A.C.R.C. Notes. It is questionable whether Ark. Const. Amend. 49 is repealed in whole or whether only those provisions that conflict with Ark. Const. Amend. 62 are repealed by Ark. Const. Amend. 62.

14-164-604. Board of directors.

  1. A compact entered into pursuant to the authority granted in this subchapter may provide for the establishment of a compact board of directors, to be composed of such members as may be prescribed in the compact.
  2. The board shall have such authority with respect to the issuance of bonds and the payment of principal and interest on the bonds, together with any other expenses of issuing and selling the bonds, and, with respect to the supervision and administration of the lease or acquisition and the repair, maintenance, and operation or leasing out for operation of the railroad, as may be agreed upon by the participating counties.

History. Acts 1983, No. 322, § 2; A.S.A. 1947, § 13-1620.

14-164-605. Issuance of bonds.

All bonds issued pursuant to a compact entered into under the provisions of this subchapter, whether issued under the authority of Arkansas Constitution, Amendment 49 [repealed] or the authority granted in §§ 14-164-20114-164-206 and 14-164-20814-164-224, shall be subject to all the conditions, restrictions, limitations, and other provisions relating to bonds issued for other purposes under the provisions of Arkansas Constitution, Amendment 49, and §§ 14-164-20114-164-206 and 14-164-20814-164-224.

History. Acts 1983, No. 322, § 3; A.S.A. 1947, § 13-1621.

A.C.R.C. Notes. It is questionable whether Ark. Const. Amend. 49 is repealed in whole or whether only those provisions that conflict with Ark. Const. Amend. 62 are repealed by Ark. Const. Amend. 62.

14-164-606. Limitations on rail service.

  1. Any rail service provided pursuant to this subchapter shall be limited to short line intrastate rail service only, and any such rail service is expressly prohibited from connecting with the rail service provided by any other compact formed under this subchapter.
  2. The rail service provided for in this subchapter may connect only with an existing railroad line presently operating in the State of Arkansas.
  3. This subchapter shall not be construed to prevent the extension of rail service to future industrial sites located within the geographical boundaries of counties which have a compact pursuant to this subchapter.

History. Acts 1983, No. 322, § 5; A.S.A. 1947, § 13-1623.

Subchapter 7 — Exemptions from Ad Valorem Taxation

Effective Dates. Acts 1981, No. 497, § 6: Mar. 16, 1981. Emergency clause provided: “It is hereby found and declared that there is an immediate need for the General Assembly to make the findings and declarations, and to take the actions set forth in this Act so that the industrial development program of the State and her counties and municipalities can proceed, all of which is necessary for the achievement of the public benefits flowing from the retention or expansion of existing employment and the obtaining of additional employment and payrolls. The immediate effectiveness of this Act is necessary. Therefore, an emergency is hereby declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in force and effect upon its passage and approval.”

Acts 1991, No. 713, § 5: Mar. 22, 1991. Emergency clause provided: “It has been found and it is hereby declared that present law provides for the allocation of payments in lieu of ad valorem taxes among affected political subdivisions and does not authorize affected political subdivisions to allocate such payments on a contractual basis and that some political subdivisions anticipate a need for such contractual allocations with respect to prospective industrial projects. Therefore, an emergency is declared to exist and this act, being necessary for the preservation of the public peace, health and safety, shall be in force upon its passage and approval.”

Acts 2001, No. 1629, § 4: Apr. 16, 2001. Emergency clause provided: “It is hereby found and determined by the General Assembly that the adequate funding of public schools is imperative; that the public schools are currently in dire need of additional funding; that this act will cause more resources to be made available to the public schools; that the sooner this act goes into effect, the sooner public schools will receive additional resources. Therefore an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2003, No. 1289, § 3: Apr. 14, 2003. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the Arkansas Supreme Court has ruled that the current system of education in Arkansas is inadequate and inequitable; that the Arkansas Supreme Court has found portions of the current public school funding formula to be unconstitutional; that the Arkansas Supreme Court has instructed the General Assembly to devise a remedy and has provided a stay on the ruling until January 1, 2004; that public schools are currently in dire need of additional funding; that this act is immediately necessary to enable public schools to receive additional funding. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

14-164-701. Legislative intent.

  1. It is declared and confirmed that the securing and developing of industry is vital to the economic welfare of the state and its people. To this end, it is necessary that maximum flexibility be given to the Arkansas Development Finance Authority and to the counties and municipalities in the state in their efforts to retain and expand existing industrial facilities and locate new industrial facilities. This task involves the opportunity for the full utilization of the benefits of financing industrial facilities under Arkansas Constitution, Amendment 49 [repealed], and §§ 14-164-201 — 14-164-206, 14-164-208 — 14-164-224, § 14-267-101 et seq., §§ 15-5-101 — 15-5-105, 15-5-207, § 15-5-301 et seq., and the Arkansas Development Finance Authority Bond Guaranty Act of 1985, § 15-5-401 et seq., including the exemption from ad valorem taxation of all industrial facilities that were exempt under Arkansas Constitution, Article 16, § 5, as interpreted by the Supreme Court of Arkansas in Wayland v. Snapp, 232 Ark. 57, 334 S.W.2d 633 (1960).
  2. While concerns using industrial bond financing should be encouraged to make payments in lieu of ad valorem taxes, and that is declared to be the general policy of the General Assembly, the final determination of whether these payments are to be made and, if made, in what amounts should be negotiated and contracted by the counties or municipalities in the state and by the industrial concerns involved under § 14-164-704.

History. Acts 1981, No. 497, § 1; A.S.A. 1947, § 13-1616; Acts 2011, No. 813, § 1.

A.C.R.C. Notes. It is questionable whether Ark. Const. Amend. 49 is repealed in whole or whether only those provisions that conflict with Ark. Const. Amend. 62 are repealed by Ark. Const. Amend. 62.

Amendments. The 2011 amendment, in (a), inserted “the Arkansas Development Finance Authority and to,” substituted “14-267-101 et seq.” for “14-267-101 — 14-267-113,” and inserted “§§ 15-5-10115-5-105, § 15-5-207, § 15-5-301 et seq., and § 15-5-401 et seq.”; and added “under § 14-164-704” in (b).

Research References

ALR.

When is property owned by state or local governmental body put to public use so as to be eligible for property tax exemption. 114 A.L.R.5th 561.

Case Notes

Cited: Pulaski County v. Jacuzzi Bros. Div., 332 Ark. 91, 964 S.W.2d 788 (1998).

14-164-702. Applicability.

  1. Pursuant to the findings and declarations of the state in § 14-164-701, it is found and declared that not only are the industrial facilities owned by a municipality, county, or the Arkansas Development Finance Authority financed with bonds issued under §§ 14-164-201 — 14-164-206, 14-164-208 — 14-164-224, § 14-267-101 et seq., §§ 15-5-101 — 15-5-105, 15-5-207, § 15-5-301 et seq., and the Arkansas Development Finance Authority Bond Guaranty Act of 1985, § 15-5-401 et seq., to be exempt from ad valorem taxation, but the interest of a lessee or of a purchaser under a contract for sale of industrial facilities that are so exempt are also exempt from ad valorem taxation. To this end, the interest of a lessee or of a purchaser is intangible personal property for purposes of ad valorem taxation. This finding and declaration is made under the authority granted to the General Assembly by and in implementation of the provisions and purposes of Arkansas Constitution, Amendment 57.
  2. The findings and declarations made in § 14-164-701 and the policy declared in this section apply to all existing industrial facilities and to all future industrial facilities involved in Arkansas Constitution, Amendment 49 [repealed], §§ 14-164-201 — 14-164-206, 14-164-208 — 14-164-224, § 14-267-101 et seq., §§ 15-5-101 — 15-5-105, 15-5-207, § 15-5-301 et seq., and the Arkansas Development Finance Authority Bond Guaranty Act of 1985, § 15-5-401 et seq. financings, and to all existing and future interests in leases or purchase contracts pertaining to these industrial facilities.

History. Acts 1981, No. 497, § 2; A.S.A. 1947, § 13-1617; Acts 2011, No. 813, § 1.

A.C.R.C. Notes. It is questionable whether Ark. Const. Amend. 49 is repealed in whole or whether only those provisions that conflict with Ark. Const. Amend. 62 are repealed by Ark. Const. Amend. 62.

Amendments. The 2011 amendment substituted “owned by a municipality, county, or the Arkansas Development Finance Authority financed with bonds issued under” for “themselves, as such facilities are defined in” in (a); and, in (a) and (b), substituted “14-267-101 et seq.” for “14-267-101 — 14-267-113” and inserted “§§ 15-5-10115-5-105, § 15-5-207, § 15-5-301 et seq., and § 15-5-401 et seq.”

Cross References. Industrial development bonds exempt from taxes, § 14-164-222.

Pollution control facilities, tax exemption of bonds, § 14-267-112.

14-164-703. Payments in lieu of taxes.

  1. If the Arkansas Development Finance Authority or a county or municipality in the state and a lessee under a lease or a purchaser under a contract for sale enter into an agreement for payments in lieu of ad valorem taxes, each agreement shall provide, or under this subchapter shall be interpreted as providing, that all in-lieu-of-taxes payments shall be distributed to the local political subdivisions that would have received ad valorem tax payments on the industrial facilities if the interest involved had not been exempt from ad valorem taxes in the proportions that the millage levied by each affected local political subdivision bears to the millage levied by all affected political subdivisions, unless all such local political subdivisions, including without limitation the affected school district or districts, shall otherwise agree.
  2. This section does not affect the rights or obligations of any of the parties to an agreement under this subchapter that exists on the date of enactment of this subchapter providing for payments in lieu of ad valorem taxes.

History. Acts 1981, No. 497, § 3; A.S.A. 1947, § 13-1618; Acts 1991, No. 713, § 1; 2001, No. 1629, § 1; 2003, No. 1289, § 1; 2011, No. 813, § 1.

A.C.R.C. Notes. Acts 2001, No. 1629, § 3, provided:

“The Senate and House Interim Committees on Education, the Senate and House Interim Committees on Insurance and Commerce, and the Senate and House Interim Committees on Revenue and Taxation, shall conduct a study of the impact of in-lieu-of-tax payments on state funding of the public schools and shall study the process of negotiating in-lieu-of-tax payments and draft any necessary legislation to improve the process.”

Publisher's Notes. In reference to the term “the date of enactment of this subchapter,” Acts 1981, No. 497 was signed by the Governor and became effective on March 16, 1981.

Amendments. The 2003 amendment inserted “local” preceding “political” throughout (a).

The 2011 amendment, in (a), inserted “the Arkansas Development Finance Authority or” at the beginning and “without limitation” near the end.

14-164-704. Sale of property.

      1. When the Arkansas Development Finance Authority or a municipality or county in the state enters into a lease of property owned by the authority, a municipality, or a county or enters into a contract for sale of property by the authority, a municipality, or a county to a private for-profit entity under this subchapter or any other law or the Arkansas Constitution for the purpose of securing and developing industry, the lease or contract for sale shall, except as otherwise provided in this section, include an obligation that the lessee or purchaser make payments in lieu of property taxes in an amount as negotiated between the parties except the aggregate amount of the payments during the initial term of the lease or contract for sale shall be not less than thirty-five percent (35%) of the aggregate amount of ad valorem taxes that would be paid if the property were on the tax rolls, unless the Director of the Arkansas Economic Development Commission and the Chief Fiscal Officer of the State approve a lesser amount.
      2. If the authority is the owner of the property, there shall be a separate agreement for payment in lieu of taxes among the authority, the lessee or purchaser, the county in which the industrial facilities are located, and, if applicable, the municipality in which the industrial facilities are located.
      1. The aggregate amount of ad valorem taxes that would be paid if the property were on the tax rolls during the initial term of the lease or contract for sale may be determined based on:
        1. The millage and assessment rates in effect at the time the obligation to make payments in lieu of property taxes is entered into;
        2. The projected installed costs of the taxable real and personal property subject to or to be subject to the lease or contract for sale, which may be evidenced by an affidavit of an authorized officer of the private for-profit entity; and
        3. Depreciation guidelines for personal property published by the Assessment Coordination Division.
      2. The aggregate amount determined under this subdivision (a)(2) shall be adjusted based on the actual installed costs of the taxable real and personal property at the time the lease or contract for sale is entered into or the time of completion of the project subject to the lease or contract for sale, whichever is later.
    1. In cases in which the municipality or county is the lessor or seller, the obligation may be contained in a separate agreement at the option of the parties to the lease or contract for sale.
  1. Before a meeting of municipal officials or county officials or officials of the authority in which action may be taken regarding approval of in-lieu-of-tax payments, the authority, municipality, or county shall give at least ten (10) days' notice of the date, time, and place of the meeting to the:
    1. Superintendent of each school district in which all or any part of the property that is subject to the lease or contract of sale is located;
    2. Chief Fiscal Officer of the State; and
    3. County assessor, county tax collector, and county treasurer of the county in which the property is located.
  2. Subsections (a) and (b) of this section do not apply to:
    1. An agreement existing before July 1, 2001;
    2. An agreement entered into on or after July 1, 2001, under a memorandum of intent or agreement to issue bonds authorized by a municipality or county before July 1, 2001;
    3. An agreement entered into on or after July 1, 2001, related to a project covered by a financial incentive proposal from the Arkansas Economic Development Commission, or by resolution of the governing body of a municipality or a county designating the project by name for the purposes of this exemption, dated before July 1, 2001;
    4. A reissue or refinancing of bonds that are subject to an existing in-lieu-of-tax agreement; and
    5. A lease or contract for sale with a qualified manufacturer of steel as defined in § 26-52-901 or in Acts 2001, No. 541, entered into before June 30, 2009.

History. Acts 2003, No. 1289, § 2; 2011, No. 813, § 1; 2019, No. 289, § 1; 2019, No. 910, § 329.

Publisher's Notes. This section was derived from uncodified sections (b) through (d) of Acts 2001, No. 1629, as amended and codified by Acts 2003, No. 1289, § 2.

Amendments. The 2011 amendment, in present (a)(1)(A), substituted “the Arkansas Development Finance Authority or a municipality” for “any city,” “property owned by the authority, a municipality, or a county” for” city or county property,” “sale of property by the authority, a municipality, or a county” for “sale of city or county property,” and inserted “except as otherwise provided in this section”; added (a)(1)(B); deleted “Arkansas” preceding “Assessment Coordination Department” in (a)(2)(A)(iii); added “In cases in which the municipality or county is the lessor or seller” in (a)(3); and, in the introductory language of (b), substituted “municipal or county officials or officials of the authority” for “city or county officials” and “authority, municipality, or county” for “city or county.”

The 2019 amendment by No. 289, in the introductory language of (b), inserted the first occurrence of “officials” and substituted “may” for “might”; and added (b)(3).

The 2019 amendment by No. 910 substituted “Assessment Coordination Division” for “Assessment Coordination Department” in (a)(2)(A)(iii).

Subchapter 8 — Local Government Energy Efficiency Project Bond Act

14-164-801. Title.

This subchapter shall be known and may be cited as the “Local Government Energy Efficiency Project Bond Act”.

History Acts 2015, No. 1275, § 1.

14-164-802. Purpose — Legislative findings.

  1. The purpose of this subchapter is to provide financing for energy efficiency projects for municipalities and counties under Arkansas Constitution, Amendment 89.
  2. The General Assembly finds that:
    1. This subchapter is in furtherance of a public purpose; and
    2. The duties imposed upon and authority granted to municipalities and counties in this subchapter are in furtherance of the conservation of the environment, efficient government spending, and the protection of the public health, welfare, and safety.

History Acts 2015, No. 1275, § 1.

14-164-803. Definitions.

As used in this subchapter:

  1. “Bonds” means bonds, notes, certificates, financing leases, or other interest-bearing instruments or evidences of indebtedness that are issued under this subchapter;
  2. “Chief executive officer” means the chief executive officer of a municipality or the county judge of a county;
  3. “County” means a county in the State of Arkansas;
  4. “Energy efficiency project” means:
    1. A new facility that is designed to reduce the consumption of energy or natural resources or result in operating cost savings as a result of changes that:
      1. Do not degrade the level of service or working conditions;
      2. Are measurable and verifiable under the International Performance Measurement and Verification Protocol, promulgated by the Arkansas Pollution Control and Ecology Commission in the rules required under § 19-11-1207; and
      3. Are measured and verified by an audit performed by an independent engineer or by a qualified provider, including the vendor providing the energy efficiency project; or
    2. An existing facility alteration that is designed to reduce the consumption of energy or natural resources or result in operating cost savings as a result of changes that conform with subdivisions (4)(A)(i) and (ii) of this section;
  5. “Guaranteed energy cost savings contract” means a contract for the implementation of one (1) or more energy efficiency projects and services provided by a qualified provider in which the energy and cost savings achieved by the installed energy efficiency project cover all energy efficiency project costs, including financing, over a specified contract term;
  6. “Issuer” means a municipality or a county;
  7. “Legislative body” means the quorum court of a county or the council, board of directors, board of commissioners, or similar elected governing body of a city or town;
  8. “Municipality” means a city or incorporated town in the State of Arkansas;
  9. “Operating cost savings” means expenses eliminated and future replacement expenditures avoided as a result of new equipment installed or services performed;
  10. “Ordinance” means an ordinance, resolution, or other appropriate legislative enactment of a legislative body; and
  11. “Qualified provider” means the same as defined in § 19-11-1202.

History Acts 2015, No. 1275, § 1; 2017, No. 271, § 3; 2019, No. 315, § 1008.

Amendments. The 2017 amendment substituted “promulgated by the Arkansas Pollution Control and Ecology Commission in the regulations” for “as adopted by the Arkansas Energy Office in the rules” in (4)(A)(ii).

The 2019 amendment substituted “rules” for “regulations” in (4)(A)(ii).

14-164-804. Energy efficiency projects authorized.

    1. A municipality or county may enter into a guaranteed energy cost savings contract in order to reduce energy consumption or operating costs of government facilities under this subchapter.
    2. A municipality or county may enter into an installment payment contract or lease purchase agreement with a qualified provider for the purchase and installation of an energy efficiency project in accordance with this subchapter.
  1. An energy efficiency project shall comply with current local, state, and federal construction and environmental codes, rules, and regulations.

History Acts 2015, No. 1275, § 1; 2019, No. 315, § 1009.

Amendments. The 2019 amendment inserted “rules” in (b).

14-164-805. Method of solicitation.

A solicitation of a guaranteed energy cost savings contract by a county or municipality shall be consistent with applicable procurement laws.

History Acts 2015, No. 1275, § 1.

14-164-806. Evaluation of responses to solicitations.

  1. In a municipality's or county's evaluation of each qualified provider's response to a solicitation under § 14-164-805, the municipality or county shall include an analysis of:
    1. Whether the qualified provider meets the objectives of the solicitation, including without limitation a reduction in the municipality's or county's energy consumption or operating costs resulting from a guaranteed energy cost savings contract with the qualified provider;
    2. The qualifications and experience of the qualified provider;
    3. The technical approach to the energy efficiency project;
    4. The financial aspects of the energy efficiency project;
    5. The overall benefit to the municipality or county; and
    6. Any other relevant factors.
  2. After evaluating a response to a solicitation as required under subsection (a) of this section, a municipality or county may:
    1. Reject the response; or
    2. Award a contract to a qualified provider to conduct an energy audit to be used in developing the guaranteed energy cost savings contract.

History Acts 2015, No. 1275, § 1.

14-164-807. Guaranteed energy cost savings contract requirements.

  1. The following provisions are required in a guaranteed energy cost savings contract:
    1. A statement that the municipality or county shall maintain and operate the energy efficiency project as defined in the guaranteed energy cost savings contract; and
    2. A guarantee by the qualified provider that:
      1. The energy cost savings and operating cost savings to be realized over the term of the guaranteed energy cost savings contract meet or exceed the costs of the energy efficiency project; and
      2. If the annual energy or operating cost savings fail to meet or exceed the annual costs of the energy efficiency project as required by the guaranteed energy cost savings contract, the qualified provider shall reimburse the municipality or county for any shortfall of guaranteed energy cost savings over the term of the guaranteed energy cost savings contract.
  2. The maximum term for a guaranteed energy cost savings contract is twenty (20) years after the implementation of the energy efficiency project.
  3. Before entering into a guaranteed energy cost savings contract, the municipality or county shall require the qualified provider to file with the municipality or county a payment and performance bond or similar assurance.

History Acts 2015, No. 1275, § 1.

14-164-808. Bonds — Issuance generally.

    1. A municipality or county may issue bonds for an energy efficiency project within, near, or within and near the municipality or county.
    2. Bonds shall be issued pursuant to an ordinance adopted by the legislative body specifying:
      1. The principal amount of bonds to be issued;
      2. The purpose or purposes for which the bonds are to be issued; and
      3. Any other provisions deemed important with respect to the bonds.
  1. A legislative body shall not adopt an ordinance regarding the issuance of bonds unless the legislative body has determined that:
    1. All of the work on the energy efficiency project will be performed by a qualified provider; and
    2. The qualified provider has provided a guarantee of the operating cost savings to be realized from the energy efficiency project that:
      1. The energy cost savings and operating cost savings to be realized over the term of the guaranteed energy cost savings contract meet or exceed the costs of the energy efficiency project; and
      2. If the annual energy or operating cost savings fail to meet or exceed the annual costs of the energy efficiency project as required by the guaranteed energy cost savings contract, the qualified provider shall reimburse the issuer for any shortfall of guaranteed energy cost savings over the term of the guaranteed energy cost savings contract.
  2. The maximum term of the bonds may not exceed the shorter of:
    1. The useful life of the energy efficiency project; or
    2. Twenty (20) years.

History Acts 2015, No. 1275, § 1.

14-164-809. Bonds — Terms and conditions.

  1. As provided by an ordinance or trust indenture authorized under this subchapter, bonds may:
    1. Be in registered or other form;
    2. Be in such denominations as determined by the legislative body;
    3. Be exchangeable for bonds of another denomination;
    4. Be made payable at places within or without the state;
    5. Be issued in one (1) or more series;
    6. Bear the date or dates determined by the legislative body of the issuer;
    7. Mature at the time or times determined by the legislative body of the issuer;
    8. Be payable in such medium of payment determined by the legislative body of the issuer;
    9. Be subject to the terms of redemption determined by the legislative body of the issuer; and
    10. Contain other terms, covenants, and conditions determined by the legislative body of the issuer, including without limitation terms, covenants, and conditions pertaining to:
      1. The custody and application of the proceeds of the bonds;
      2. The maintenance of various funds and reserves;
      3. The nature and extent of the pledge and security;
      4. The remedies on default; and
      5. The rights, duties, and obligations of the legislative body of the issuer and the trustee, if any, for the owners of the bonds, and the rights of the owners of the bonds.
  2. All bonds are negotiable instruments within the meaning of the negotiable instruments law of the state.

History Acts 2015, No. 1275, § 1.

14-164-810. Bonds — Trust indenture.

  1. The ordinance authorizing bonds may provide for the execution by the chief executive officer of the issuer of a trust indenture that:
    1. Defines the rights of the owners of the bonds; and
    2. Provides for the appointment of a trustee for the owners of the bonds.
  2. A trust indenture executed under this section may:
    1. Provide for the priority between and among successive issues; and
    2. Contain one (1) or more of the provisions stated in § 14-164-809 and any other terms, covenants, and conditions that are deemed desirable.

History Acts 2015, No. 1275, § 1.

14-164-811. Bonds — Sale.

  1. Bonds may be sold at a public or private sale for the price and in the manner determined by the legislative body of the issuer.
  2. Bonds sold under this subchapter may be sold at a discount or a premium.

History Acts 2015, No. 1275, § 1.

14-164-812. Bonds — Execution.

Bonds shall be executed in the manner provided by the Registered Public Obligations Act of Arkansas, § 19-9-401 et seq.

History Acts 2015, No. 1275, § 1.

14-164-813. Bonds — Payment — Security.

  1. The principal of and interest on the bonds may be secured by a pledge of the operating cost savings derived from the energy efficiency project, and a municipality or county may pledge or assign a guaranteed energy cost savings contract to secure the bonds.
  2. The total annual principal and interest payments in each fiscal year on bonds shall be charged against and paid from general revenues, special revenues, revenues derived from taxes, or any other revenues available to the municipality or county if the special revenues, revenues derived from taxes, or other revenues have not been previously restricted to another purpose.
  3. Notwithstanding any law to the contrary, a municipality or county may use money budgeted for maintenance and operations to pay the principal of and interest on bonds issued for an energy efficiency project under this subchapter.
    1. Bonds are not revenue bonds for purposes of any statute.
    2. The legislative body is not required to hold a public hearing on the issuance of the bonds.

History Acts 2015, No. 1275, § 1.

14-164-814. Bonds — Energy efficiency project liens.

  1. An ordinance or trust indenture authorized under § 14-164-808 or § 14-164-810 may impose a financing lien on an energy efficiency project financed or refinanced, in whole or in part, with the proceeds of bonds.
  2. The nature and extent of a lien imposed under this section may be controlled by the ordinance or trust indenture, including without limitation provisions pertaining to:
    1. The release of all or part of the land, buildings, or facilities from the lien;
    2. The priority of the lien in the event of successive bond issues; and
    3. The authorization of any owner of bonds, or a trustee on behalf of all owners, to enforce the lien and, by proper suit, compel the performance of the duties of the officials of the issuer stated in this subchapter or in the ordinance or trust indenture authorizing or securing the bonds.
  3. As used in this section, “lien” includes a security interest in any personal property constituting an energy efficiency project and any part of an energy efficiency project financed or refinanced, in whole or in part, with the proceeds of bonds issued under this subchapter.

History Acts 2015, No. 1275, § 1.

14-164-815. Liability of legislative body's officers, employees, and members.

An officer, employee, or member of the legislative body of an issuer under this subchapter shall not be personally liable on bonds or for damages sustained by a person in connection with a guaranteed energy cost savings contract entered into to carry out the purposes and intent of this subchapter unless the person has acted with a corrupt intent.

History Acts 2015, No. 1275, § 1.

14-164-816. Tax exemption.

Bonds and the income on the bonds are exempt from all state, county, and municipal taxes, including without limitation income, property, and inheritance taxes.

History Acts 2015, No. 1275, § 1.

14-164-817. Refunding bonds.

  1. Bonds may be issued to refund any outstanding bonds or to refund any outstanding bonds issued under any other law for the purpose of financing energy efficiency projects.
    1. Refunding bonds may be sold for cash or delivered in exchange for the outstanding obligations under subsection (a) of this section.
    2. If refunding bonds are sold for cash under subdivision (b)(1) of this section, the proceeds may be applied to the payment of the obligations refunded or deposited into an irrevocable trust for the retirement of the refunding bonds either at maturity or on an authorized redemption date.
  2. Refunding bonds shall in all respects be authorized, issued, and secured in the manner provided in this subchapter.
  3. The ordinance under which refunding bonds are issued may provide that any refunding bonds shall have the same priority of lien on revenues as originally pledged for payment of the obligation refunded by the refunding bonds.

History Acts 2015, No. 1275, § 1.

14-164-818. Applicability.

This subchapter:

  1. Applies only to municipalities and counties; and
  2. Does not apply to the following governmental units:
    1. The state and any agency, board, commission, or instrumentality of the state;
    2. A school district; or
    3. A special assessment or taxing district established under the laws of the state.

History Acts 2015, No. 1275, § 1.

14-164-819. Subchapter supplemental to other laws.

This subchapter is:

  1. Supplemental to other laws, and municipalities and counties may use other applicable laws in the issuance of bonds and other obligations under this subchapter; and
  2. Sufficient authority for the issuance of bonds and the performance of all other acts and procedures authorized by this subchapter.

History Acts 2015, No. 1275, § 1.

14-164-820. Construction.

This subchapter shall be construed liberally to effectuate the legislative intent and the purposes of this subchapter as a complete and independent authority for the performance of the acts authorized under this subchapter, and the powers granted under this subchapter shall be broadly interpreted to effectuate the intent and purposes and shall not be interpreted as a limitation of powers.

History Acts 2015, No. 1275, § 1.

14-164-821. Rules.

A municipality or county may provide by ordinance that the municipality or county shall comply with the rules promulgated by the Arkansas Pollution Control and Ecology Commission under § 19-11-1207.

History Acts 2015, No. 1275, § 1; 2017, No. 271, § 4; 2019, No. 315, § 1010.

Amendments. The 2017 amendment substituted “Regulations” for “Rules” in the section heading; and substituted “regulations promulgated by the Arkansas Pollution Control and Ecology Commission” for “rules promulgated by the Arkansas Energy Office”.

The 2019 amendment substituted “Rules” for “Regulations” in the section heading and substituted “rules” for “regulations” in the text.

Chapter 165 Industrial Development Compacts

Subchapter 1 — General Provisions

[Reserved]

Subchapter 2 — Inter-Municipal, Inter-County, and Municipal-County Compacts

Preambles. Acts 1960 (Ex. Sess.), No. 2 contained a preamble which read:

“Whereas the people of the State of Arkansas expressed themselves in favor of a more effective program of industrial development by their passage of Amendment No. 49 [repealed] to the Constitution of the State of Arkansas; and

“Whereas joint efforts on the part of municipalities, counties or municipalities and counties would greatly facilitate the industrial development of the State of Arkansas; and

“Whereas, it is advisable to implement the provisions of Amendment No. 49 [repealed] to the Constitution in order to provide for such joint efforts and thereby more effectively accomplish the objects of said Amendment; Now Therefore….”

Effective Dates. Acts 1960 (Ex. Sess.), No. 2, § 6: approved Jan. 21, 1960. Emergency clause provided: “It has been found and it is hereby declared by the General Assembly that the State of Arkansas does not have an adequate program for the industrial development of the State and the financing thereof; that on account of such inadequate program the State of Arkansas has been unable to provide for its inhabitants maximum opportunities in industry; that on account thereof the State of Arkansas and municipalities and counties therein have lost certain industries that might otherwise have been obtained; that unless an adequate program for the industrial development of the State is immediately undertaken the State of Arkansas will suffer immediate and irreparable further loss in opportunities for industrial expansion and job opportunities for its inhabitants; and that only by giving immediate effect to this act can such conditions be alleviated. An emergency, therefore, is hereby declared to exist, and this act being necessary for the preservation of the public peace, health and safety shall take effect and be in full force from and after its passage.”

Research References

ALR.

Eminent domain: industrial park or similar development as public use justifying condemnation of private property. 62 A.L.R.4th 1183.

Case Notes

Constitutionality.

This subchapter is not in conflict with Ark. Const., Art. 7, § 28, Ark. Const., Art. 16, §§ 5 and 6 or former Ark. Const. Amend. 49 (repealed by Ark. Const. Amend. 62, § 11. Hackler v. Baker, 233 Ark. 690, 346 S.W.2d 677 (1961).

Compact.

The word “compact” as used in this subchapter refers to no single written agreement or contract, but generally to the undertaking to proceed jointly in an effort to secure industries. Hackler v. Baker, 233 Ark. 690, 346 S.W.2d 677 (1961).

14-165-201. Construction.

This chapter is intended to supplement all existing constitutional provisions and legislation designed to secure and develop industry and shall be liberally construed to accomplish its purposes.

History. Acts 1960 (Ex. Sess.), No. 2, § 5; A.S.A. 1947, § 14-804.

14-165-202. Authority generally.

  1. Two (2) or more counties, or two (2) or more municipalities, whether or not in the same county, or one (1) or more counties and one (1) or more municipalities are authorized and empowered to join together in a compact for the purpose of engaging in joint efforts to secure and develop industry of mutual benefit to the parties to the compact and to finance it by each party to the compact issuing bonds under the provisions of Arkansas Constitution, Amendment 49 [repealed].
    1. Counties entering into compacts to which one (1) or more other counties are parties must have a common border with at least one (1) other county that is a party to the compact.
    2. Municipalities entering into compacts must be sufficiently near to the other parties to the compact to enable all parties to the compact to benefit from the joint efforts undertaken.
  2. Any party to any compact authorized in this subchapter may issue revenue bonds under the provisions of the Municipalities and Counties Industrial Development Revenue Bond Law, §§ 14-164-201 — 14-164-206 and 14-164-208 — 14-164-224, in aid of any compact project.

History. Acts 1960 (Ex. Sess.), No. 2, § 1; A.S.A. 1947, § 14-801.

A.C.R.C. Notes. It is questionable whether Ark. Const. Amend. 49 is repealed in whole or whether only those provisions that conflict with Ark. Const. Amend. 62 are repealed by Ark. Const. Amned. 62.

Case Notes

Inter-County Compacts.

Two counties, each having the right to issue bonds, have the right to form a compact to accomplish the same purpose for their mutual benefit, such as engaging in joint efforts to secure and develop industry of mutual benefit. Hackler v. Baker, 233 Ark. 690, 346 S.W.2d 677 (1961).

The words “for … securing and developing industry … within the county holding the election” in former Ark. Const. Amend. 49, § 1 (repealed by Ark. Const. Amend. 62, § 11, have been construed so that the amendment was not violated in letter or in spirit where the money expended in one county to build a factory in another county would have furnished employment to the citizens of both counties. Hackler v. Baker, 233 Ark. 690, 346 S.W.2d 677 (1961).

Provisions Not Mandatory.

This section does not compel a city and county to form a compact, but merely authorizes them to do so if they desire. Wayland v. Snapp, 232 Ark. 57, 334 S.W.2d 633 (1960).

14-165-203. Establishment, authority, etc., of commission.

    1. Any compact entered into under the terms of this subchapter shall provide for the establishment of an inter-municipal, inter-county, or municipal-county commission which shall hold title as trustee for the use and benefit of the parties to the compact as their interests may appear to any property acquired or constructed with the proceeds of the bonds issued by the parties.
      1. The commission shall be made up of one (1) representative from each party to the compact, to be appointed by the mayor or county judge of the municipality or county which the appointee represents.
      2. In the case of a compact having an even number of parties, the appointed representatives of the parties to the compact shall select an additional person, who is agreeable to all parties to the compact, to serve on the commission.
      1. The members of the commission:
        1. Shall serve for terms of three (3) years' duration;
        2. Shall be eligible for reappointment; and
        3. May be removed only for cause by the mayor or county judge of the municipality or county which they represent.
      2. In the event of a vacancy other than by expiration of term, the remaining members of the commission shall fill the vacancy by appointing a member to serve the unexpired portion of the term.
      1. Commissions created under the terms of this subchapter shall have the power to take all steps and to make and enter into all contracts and agreements necessary or incidental to the securing and developing of industry that is mutually beneficial to the parties to the compact.
        1. However, any contract or agreement relating to the issuance of bonds shall be approved by the municipal governing body or county court of each municipality or county which is a party to the compact before it shall be effective.
        2. Any property acquired under the provisions of this subchapter shall not be sold unless and until the terms of the sale are approved by the municipal governing body or county court of each and every party to the compact.
    1. The commission may employ engineers, architects, inspectors, managers, attorneys, and such other employees as, in its judgment, may be necessary in the execution of its powers and duties and may fix their compensation.
    2. After the construction or acquisition of any lands, buildings, or facilities and subject to the limitations contained in this chapter, the commission shall have the authority to reconstruct, extend, equip, improve, operate, maintain, sell, lease, contract concerning, or otherwise deal in or dispose of the lands, buildings, or facilities.
  1. All expenses and liabilities incurred in carrying out the duties and powers of the commission may be paid from any available funds, including, without limitation, funds obtained from the issuance of bonds or from revenues derived from facilities constructed or acquired with the proceeds of the bonds.

History. Acts 1960 (Ex. Sess.), No. 2, § 2; A.S.A. 1947, § 14-802.

14-165-204. Issuance of bonds.

  1. Any compact entered into under the provisions of this subchapter may provide that each party to the compact will issue bonds under Arkansas Constitution, Amendment 49 [repealed], and that all funds obtained by the issuance of the bonds will be used for a joint industrial development project.
  2. Whenever the parties to the compact agree that each shall issue bonds under Arkansas Constitution, Amendment 49 [repealed], no bonds shall be issued by any party to the compact for use in the joint project unless the voters of each and every party to the compact approve the issuance of bonds.
  3. The parties to the compact shall determine by agreement the portion of the total cost of any project that each party to the compact is to bear.

History. Acts 1960 (Ex. Sess.), No. 2, § 3; A.S.A. 1947, § 14-803.

A.C.R.C. Notes. It is questionable whether Ark. Const. Amned. 49 is repealed in whole or whether only those provisions that conflict with Ark. Const. Amend. 62 are repealed by Ark. Const. Amend. 62.

Case Notes

In General.

With reference to the words “issue bonds,” the legislature had in mind the issuance of bonds that were legal and binding on the taxpayer and not the mere preparation and printing of bonds. Hackler v. Baker, 233 Ark. 690, 346 S.W.2d 677 (1961).

Jurisdiction.

The county courts have jurisdiction of the proceeds of the bonds, and the proceeds will be economically spent when two counties form a compact to accomplish the same purpose for their mutual benefit. Hackler v. Baker, 233 Ark. 690, 346 S.W.2d 677 (1961).

Chapter 166 Planning and Development Organizations

Subchapter 1 — General Provisions

[Reserved]

Subchapter 2 — Multi-County Planning and Development Organizations

14-166-201. Purpose.

    1. The purpose of this subchapter is to encourage multi-county planning and development organizations which have been formed, or which may be formed in the future, as voluntary nonprofit associations to promote economic development, to assist local governments and private organizations in obtaining federal grants and loans, to prepare comprehensive regional plans for economic development and improved government services, to enlist private support for these activities, and to coordinate private and public programs in the multi-county districts.
    2. Recognizing the beneficial services to be provided the people of this state through the activities of such multi-county planning and development organizations established for the aforementioned purposes, and in order to encourage such organizations in their efforts to provide these beneficial services, the General Assembly establishes a program of providing financial assistance to the associations to enable them to continue and expand their activities in furtherance of the purposes of this subchapter.
  1. Nothing in this subchapter is intended to be inconsistent with or contrary to a policy of relying on the private enterprise system.

History. Acts 1969, No. 118, § 1; A.S.A. 1947, § 9-324.

Case Notes

State Action.

Where a nonprofit corporation has been created by virtue of state law, the state government has provided significant financial support for the activities of the corporation, the state has delegated functions relating to the planning and delivery of public services to the corporation, the corporation has engaged in activities normally performed by governmental agencies, the corporation has worked in cooperation with various agencies or instrumentalities of state government, and the supervision of the affairs of the corporation has been vested in a board of directors, the majority of which are local elected officials, the conduct of the “private” nonprofit corporation has become so entwined with governmental policies and so impregnated with a governmental character as to subject the conduct of the corporation to the institutional limitations placed upon state action. Gilbreath v. East Ark. Planning & Dev. Dist., Inc., 471 F. Supp. 912 (E.D. Ark. 1979).

14-166-202. Designation of districts.

  1. The General Assembly recognizes as planning and development districts the boundaries of the following eight (8) economic development districts:
    1. Northwest Arkansas Economic Development District, Inc., consisting of Benton, Washington, Madison, Carroll, Boone, Newton, Marion, Searcy, and Baxter counties;
    2. North Central Arkansas Economic Development District, Inc., consisting of Fulton, Izard, Sharp, Stone, Independence, Jackson, Van Buren, Cleburne, White, and Woodruff counties;
    3. Northeast Arkansas Economic Development District, Inc., consisting of Randolph, Clay, Lawrence, Greene, Craighead, Mississippi, Poinsett, Cross, Crittenden, St. Francis, Lee, and Phillips counties;
    4. Southeast Arkansas Economic Development District, Inc., consisting of Grant, Jefferson, Arkansas, Cleveland, Lincoln, Desha, Bradley, Drew, Chicot, and Ashley counties;
    5. Southwest Economic Development District of Arkansas, Inc., consisting of Sevier, Howard, Little River, Hempstead, Nevada, Ouachita, Dallas, Calhoun, Miller, Lafayette, Columbia, and Union counties;
    6. Western Arkansas Economic Development District, Inc., consisting of Crawford, Franklin, Sebastian, Logan, Scott, and Polk counties;
    7. West Central Arkansas Economic Development District, Inc., consisting of Johnson, Pope, Conway, Yell, Perry, Montgomery, Garland, Pike, Clark, and Hot Spring counties; and
    8. Central Arkansas Economic Development District, Inc., consisting of Faulkner, Saline, Pulaski, Lonoke, Prairie, and Monroe counties.
    1. If a municipality is located in two (2) or more counties which are situated in different planning and development districts, then if the governing body of the municipality so determines by ordinance, the entire area of the municipality may be deemed attached to the planning and development district which has the county with the highest proportion of the population of the municipality.
    2. The population of the municipality shall be based upon the most recent federal decennial or special census data available for the municipality.
    1. Nothing in this subchapter is intended to change or conflict with the status of regional and metropolitan planning commissions or councils of governments established under § 14-17-301 et seq. and § 14-56-501 et seq.
    2. This subchapter does not change the designation of urban and metropolitan planning organizations presently recognized by the Department of Finance and Administration for programs of the United States Department of Housing and Urban Development or any other department of the United States Government.

History. Acts 1969, No. 118, § 2; A.S.A. 1947, § 9-325; Acts 2001, No. 754, § 1.

A.C.R.C. Notes. Acts 2015, No. 1070, § 79, provided:

“INTRASTATE METRO PLANNING GRANTS. As referenced in Section 9 of Act 637 of 1995, the authorized funding for Intrastate Metro Planning Grants that are evenly distributed among planning and development districts under Section 3 of this act shall include the West Central Arkansas Economic Development District.”

Acts 2016, No. 251, § 79, provided: “INTRASTATE METRO PLANNING GRANTS. As referenced in Section 9 of Act 637 of 1995, the authorized funding for Intrastate Metro Planning Grants that are evenly distributed among planning and development districts under Section 3 of this act shall include the West Central Arkansas Economic Development District.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Cross References. Disposal of railroad track material, § 15-11-211.

14-166-203. Recognition and qualification of organizations.

  1. The governing boards of directors of the eight (8) economic development districts are recognized as the representative organizations of the initial planning and development districts as recognized in § 14-166-202.
  2. In order to qualify for the benefits of the provisions of this subchapter, the representative organization of a planning and development district shall have a governing board of directors, a majority of whose members are elected officials of local governments and the remainder of whose members represent economic development organizations and organizations broadly representative of diverse community interests.
    1. The operations of representative organizations of planning and development districts shall be solely within the discretion and control of the local governing boards of directors of the respective districts, it not being the intention of the General Assembly that anything in this subchapter creates any power, authority, or control in any state agency over the management and operations of the organizations.
    2. Continued state financial support of organizations as provided in this subchapter shall terminate with respect to any organization that uses state funds for any purpose not within the intent and purposes of this subchapter until the organization shall make restitution for any misused funds and furnishes proof of compliance with respect to future operations.

History. Acts 1969, No. 118, § 3; A.S.A. 1947, § 9-326.

14-166-204. Allocation of payments.

    1. The Department of Finance and Administration is authorized to make payments from time to time to officially recognized organizations of planning and development districts from state funds appropriated for that purpose.
    2. Payments shall be scheduled as nearly as possible to begin on July 1 of each fiscal year and on the first day of each calendar quarter thereafter.
    1. Funds appropriated for payments to recognized organizations of planning and development districts shall be allocated, in equal shares, among the initial eight (8) recognized districts as established in § 14-166-202.
    2. If, in the future, any change occurs in the district boundaries of any of the initial eight (8) districts, as authorized in § 14-166-202, the number one (1) allocation of appropriated funds to the former districts which comprise counties reorganized in the new district shall be apportioned to the new district in accordance with equitable criteria established by the Department of Finance and Administration and published in advance prior to the establishment of the new district.

History. Acts 1969, No. 118, § 4; A.S.A. 1947, § 9-327.

14-166-205. Conditions of payments.

    1. Whenever the General Assembly shall have appropriated funds to be used for making payments as authorized in this subchapter, the Department of Finance and Administration shall notify the respective boards of directors of the planning and development districts of the amount allocated to the district as provided in § 14-166-204 and shall notify the district that application for the funds may be made upon forms provided by the department.
    2. Upon receipt of application for such allocated funds from a district, the department shall determine that the following conditions have been met before making payments:
      1. The organization applying for payment is officially recognized as a designated district in accordance with § 14-166-202 and § 14-166-203;
      2. The governing board of directors of the organization shall certify that a proposed budget has been established for the expenditures of state and local funds for purposes consistent with the purposes of this subchapter;
      3. The organization has obtained nonfederal matching funds committed from local governments or private sources at least equal to the amount of the payment of state funds, and the president or treasurer of the board of directors of the organization shall certify, from time to time, that such matching funds from local or private sources are on deposit to the organization's own account before quarterly payments of state funds may be made to the district;
      4. At the end of each fiscal year, an audited report of expenditures of the district shall be submitted to the department, and any state funds unexpended or unobligated by June 30 shall be returned by the district to the State Treasury. In addition, if the district shall have used any state funds for any purpose not within the purposes of this subchapter, the amount thereof shall be reimbursed to the State of Arkansas before any additional payments may be made to the district.
  1. Upon receipt of the application for funds from a district, the department shall review it, and if the department shall determine that the district is qualified to receive payments under this subchapter, state funds shall be paid to the district on a dollar-for-dollar matching basis of funds provided from local or private nonfederal sources. However, in no event may state matching funds exceed the amount of funds allocated to the district for the fiscal year from funds appropriated for it.
    1. It is the specific intention of the General Assembly that all or part of the state and local funds may be used to qualify for matching federal funds to be used for the purposes provided in this subchapter.
    2. In the event a district shall not qualify for the total amount of state funds allocated to the district during any fiscal year because of failure to provide the required matching funds from nonfederal local or private sources, the amount thereof for which the district does not qualify shall remain in the State Treasury and shall not be apportioned for payment to other districts, it being the intention of this section that each district shall receive no payment in excess of the pro rata share of state funds allocated to the district.

History. Acts 1969, No. 118, § 5; A.S.A. 1947, § 9-328.

Chapter 167 Energy Resources and Conservation

Cross References. Energy Conservation Endorsement Act, § 23-3-401 et seq.

Energy Reorganization and Policy Act, § 15-10-201 et seq.

Research References

Am. Jur. 83 Am. Jur. 2d, Zoning, § 359 et seq.

Subchapter 1 — General Provisions

[Reserved]

Subchapter 2 — Energy Conservation and Renewable Energy Resource Financing

Cross References. Local Government Bond Act of 1985, § 14-164-301 et seq.

Effective Dates. Acts 1981, No. 53, § 16: Feb. 12, 1981. Emergency clause provided: “It is hereby found and declared that energy facilities are essential to the continued health, welfare, safety, economic growth and development of the State of Arkansas and its people, and that the availability of permanent financing for energy facilities on favorable terms is necessary. This Act is immediately necessary in order that such facilities may be so financed and accomplished and the resulting public benefits realized. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety shall be in effect from and after its passage and approval.”

14-167-201. Title.

This subchapter shall be referred to, and may be cited as, the “Energy Conservation and Renewable Energy Resource Finance Act.”

History. Acts 1981, No. 53, § 1; A.S.A. 1947, § 13-2401.

14-167-202. Legislative findings and public policy.

  1. The General Assembly finds that:
    1. The State of Arkansas is confronted with a severe energy crisis;
    2. The demand for fuels has outstripped the available supplies;
    3. The cost to the consumer for energy usage continues to increase at an accelerated rate;
    4. A great and growing number of residents of this state can no longer afford basic energy needs;
    5. The energy crisis has adversely affected the growth and stability of agriculture, commerce, and industry within the state, producing widespread unemployment;
    6. The energy crisis will be perpetuated by a continued dependence on depletable energy resources which are subject to rapid increases in price and uncertain availability; and by the wasteful and inefficient use of available energy supplies;
    7. These conditions are inimical to the economic security of the state and the health, welfare, and prosperity of its citizens.
  2. It is declared to be the public policy and responsibility of this state to encourage energy conservation and to promote the development and use of renewable energy resources, in order to alleviate the undesirable social and economic conditions created by the energy crisis.
  3. The General Assembly finds that the public policy and responsibility of the state as set forth in this section cannot be fully attained without the use of public financing, and it is the purpose of this subchapter to make such financing available for energy facilities which will reduce energy consumption or make use of renewable energy resources in residential, commercial, industrial, and agricultural application.

History. Acts 1981, No. 53, § 2; A.S.A. 1947, § 13-2402.

14-167-203. Definitions.

As used in this subchapter, unless the context otherwise requires:

  1. “Facilities” or “energy facilities” means any real property, personal property, or mixed property of any and every kind which, in residential, commercial, industrial, or agricultural applications:
    1. Reduces the amount of energy required to perform desired tasks; or
    2. Utilizes renewable energy resources to supply energy needs;
  2. “Renewable energy resources” means any technology or source of energy which:
    1. Does not depend on the use of depletable fuels such as oil, natural gas, and coal or of nuclear fuels; and
    2. Makes use of nondepletable supplies of energy, including, without limitation, solar, wind, bioconversion, falling or flowing water, geothermal deposits, or municipal, commercial, industrial, agricultural, or individual waste products;
  3. “Acquire” means to obtain at any time, by gift, purchase, or other arrangement, any energy facilities, including, without limitation, those theretofore existing, those theretofore constructed and equipped, those theretofore partially constructed and equipped, and those being constructed and equipped at the time of acquisition, for such consideration and pursuant to such terms and conditions as the governing body of the municipality or the county shall determine;
  4. “Construct” means to acquire or build extensions, in whole or in part, in such manner and by such method, including contracting therefor, and if the latter, by negotiation or bidding upon such terms and pursuant to such advertising, as the municipality or county shall determine to be in the public interest and necessary under the circumstances existing at the time, to accomplish the purposes of and authorities set forth in this subchapter;
  5. “Equip” means to install or place in or on any building or structure equipment of any and every kind, whether or not affixed;
  6. “Governing body” means the council, board of directors, or other like body in which the legislative functions of a municipality are vested, or the quorum court of the county;
  7. “Lease” means to lease for such rentals, for such periods, and upon such terms and conditions as the municipality or county shall determine and the granting of such extension and purchase options for such prices and upon such terms and conditions as the municipality or county shall determine;
  8. “Municipality” means a city of the first or second class or an incorporated town;
  9. “Sell” means to sell for such price, in such manner, and upon such terms as the municipality shall determine, including, without limitation, public or private sale and, if public, pursuant to such advertisement as the municipality or county shall determine, sell for cash or credit payable in lump sum or in installments over such period as the municipality or county shall determine;
  10. “Loan” means to loan for such periods, at such rates of interest, as fixed by the ordinance authorizing their issuance, in such manner, and upon such terms and conditions as the municipality or county shall determine, including, without limitation, a secured or unsecured loan.

History. Acts 1981, No. 53, § 3; A.S.A. 1947, § 13-2403.

14-167-204. Construction.

This subchapter is to be liberally construed to accomplish the purposes of it and shall be the sole authority necessary to be complied with. To this end, it shall not be necessary to comply with general provisions of other laws dealing with energy facilities, their acquisition, construction, leasing, encumbering, or disposition.

History. Acts 1981, No. 53, § 14; A.S.A. 1947, § 13-2414.

14-167-205. Energy project authority.

  1. Any municipality and any county in this state is authorized to own, acquire, construct, reconstruct, extend, equip, improve, operate, maintain, sell, lease, contract concerning, or otherwise deal in, or dispose of, or make loans to finance the acquisition, construction, reconstruction, extension, equipment, or improvement of energy facilities.
  2. Any such undertaking will be referred to in this subchapter as an “energy project.”

History. Acts 1981, No. 53, § 4; A.S.A. 1947, § 13-2404.

14-167-206. Authority to fund.

  1. Municipalities and counties are authorized to use any available revenues for the accomplishment of energy projects, either alone or together with other available funds and revenues, and may issue bonds, as authorized in this subchapter, for the accomplishment of energy projects, either alone or together with other available funds and revenues.
  2. Bonds may be issued in such principal amount as shall be sufficient to pay the cost of accomplishing the energy project involved, the cost of issuing bonds, the amount necessary for a reserve, if deemed desirable, the amount necessary to provide for debt service on the bonds until revenues for the payment of them are available, and any other costs and expenditures of whatever nature incidental to the accomplishment of the energy project involved.

History. Acts 1981, No. 53, § 5; A.S.A. 1947, § 13-2405.

14-167-207. Bonds — Issuance generally.

The issuance of bonds shall be by ordinance of the municipality or county.

History. Acts 1981, No. 53, § 6; A.S.A. 1947, § 13-2406.

14-167-208. Bonds — Terms and conditions.

  1. As the ordinance authorizing their issuance may provide, the bonds may:
    1. Be in such form and denominations;
    2. Be exchangeable for bonds of another denomination;
    3. Be made payable at such places within or without the state;
    4. Be issued in one (1) or more series;
    5. Bear such date or dates;
    6. Mature at such time or times, not exceeding forty (40) years from their respective dates;
    7. Bear interest at such rate or rates;
    8. Be payable in such medium of payment;
    9. Be subject to such terms of redemption; and
    10. Contain such terms, covenants, and conditions, including, without limitation, those pertaining to:
      1. The custody and application of the proceeds of the bonds;
      2. The collection and disposition of revenues;
      3. The rights, duties, and obligations of the municipality or county and the trustee for the holders and registered owners of the bonds; and
      4. The rights of the holders and registered owners of the bonds.
  2. Subject to provisions of the ordinance or of the trust indenture, as prescribed in this section or § 14-167-209 pertaining to registration, the bonds shall have all the qualities of negotiable instruments under the laws of the State of Arkansas.

History. Acts 1981, No. 53, § 6; A.S.A. 1947, § 13-2406.

14-167-209. Bonds — Trust indenture, lease, etc.

  1. The ordinance authorizing the bonds may provide for the execution by the municipality or county of an indenture which defines the rights of the holders and registered owners of the bonds and provides for the appointment of a trustee, who may be a trustee within or without the state, for the holders and registered owners of the bonds.
  2. The indenture may control the priority between successive issues and may contain any other terms, covenants, and conditions that are deemed desirable, including without limitation, those pertaining to:
    1. The custody and application of the proceeds of the bonds;
    2. The maintaining of rates and charges;
    3. The collection and disposition of revenues;
    4. The maintenance of various funds and reserves;
    5. The nature and extent of the security and pledging of revenues;
    6. The rights, duties, and obligations of the municipality or county and the trustee; and
    7. The rights of the holders and registered owners of the bonds.
  3. It shall not be necessary for the municipality or county to publish any indenture, lease, or other agreement if:
    1. The ordinance authorizing an indenture, lease, or other agreement is published as required by law governing the publication of ordinances of a municipality or county;
    2. The ordinance advises that a copy of the indenture, lease, or other agreement, as the case may be, is on file in the office of the clerk or recorder of the municipality or the county clerk of the county for inspection by any interested person; and
    3. The copy of the indenture, lease, or other agreement, as the case may be, is actually filed with the clerk or recorder of the municipality or the county clerk of the county.

History. Acts 1981, No. 53, § 6; A.S.A. 1947, § 13-2406.

14-167-210. Bonds — Sale.

The bonds may be sold for such price, including, without limitation, sale at a discount, and in such manner as the municipality or county may determine by ordinance.

History. Acts 1981, No. 53, § 6; A.S.A. 1947, § 13-2406.

14-167-211. Bonds, coupons — Execution.

    1. The bonds shall be executed by the mayor and the city clerk or recorder of the municipality or the county judge and county clerk of the county, with either the facsimile or manual signature of the mayor or county judge, but with the manual signature of the clerk or recorder and of the county clerk.
    2. In case any of the officers whose signatures appear on the bonds or coupons shall cease to be such officers before the delivery of the bonds or coupons, their signatures shall nevertheless be valid and sufficient for all purposes.
  1. The coupons attached to the bonds may be executed by the facsimile signature of the mayor of the municipality or the county judge of the county.

History. Acts 1981, No. 53, § 6; A.S.A. 1947, § 13-2406.

14-167-212. Bonds — Successive issues.

There may be successive bond issues for the purpose of financing the same energy project, and there may be successive bond issues for financing the cost of reconstructing, replacing, constructing additions to, extending, improving, and equipping energy projects already in existence, whether or not originally financed by bonds issued under this subchapter with each successive issue to be authorized as provided by this subchapter.

History. Acts 1981, No. 53, § 6; A.S.A. 1947, § 13-2406.

14-167-213. Bonds — Priority among issues.

Priority between and among issues and successive issues as to security of the pledge of revenues and lien on the energy project involved may be controlled by the ordinance authorizing the issuance of bonds under this subchapter.

History. Acts 1981, No. 53, § 6; A.S.A. 1947, § 13-2406.

14-167-214. Bond obligation.

    1. The bonds issued under this subchapter shall not be general obligations of the municipality or county but shall be special obligations, and in no event shall the bonds constitute an indebtedness of the municipality or county within the meaning of any constitutional or statutory limitation.
    2. It shall be plainly stated on the face of each bond that it has been issued under the provisions of this subchapter and that it does not constitute an indebtedness of the municipality or county within any constitutional or statutory limitation.
  1. The principal of, and interest on, the bonds shall be secured by a pledge of, and shall be payable from, revenues derived from the energy project acquired, constructed, reconstructed, extended, or improved, in whole or in part, with the proceeds of the bonds.

History. Acts 1981, No. 53, § 7; A.S.A. 1947, § 13-2407.

14-167-215. Refunding bonds.

    1. Bonds may be issued for the purpose of refunding any obligations issued under this subchapter.
    2. Refunding bonds may be combined with bonds issued under the provisions of §§ 14-167-207 — 14-167-213 into a single issue.
    1. When bonds are issued under this section for refunding purposes, the bonds may either be sold or delivered in exchange for the outstanding obligations.
    2. If sold, the proceeds may be either applied to the payment of the obligations refunded or deposited in escrow for the retirement of them.
    1. All bonds issued under this section shall, in all respects, be authorized, issued, and secured in the manner provided for other bonds issued under this subchapter and shall have all the attributes of such bonds.
    2. The ordinance under which refunding bonds are issued may provide that any of the refunding bonds shall have the same priority of lien on the revenues pledged for their payment as was enjoyed by the obligations refunded by them.

History. Acts 1981, No. 53, § 8; A.S.A. 1947, § 13-2408.

14-167-216. Mortgage lien.

  1. The ordinance or indenture referred to in § 14-167-207 or § 14-167-209 may, but need not, impose a foreclosable mortgage lien upon the land, buildings, or other properties acquired, constructed, reconstructed, extended, equipped, or improved, in whole or in part, with the proceeds of bonds issued under this subchapter.
  2. The nature and extent of the mortgage lien may be controlled by the ordinance or indenture including, without limitation, provisions pertaining to:
    1. The release of all or part of the land, buildings, or other properties from the mortgage lien; and
    2. The priority of the mortgage lien in the event of successive bond issues as authorized by § 14-167-212.
  3. The ordinance or indenture authorizing or securing the bonds may authorize any holder or registered owner of bonds issued under the provisions of this subchapter, or a trustee on behalf of all holders and registered owners, either at law or in equity, to enforce the mortgage lien and, by proper suit, compel the performance of the duties of the officials of the issuing municipality or county set forth in this subchapter and set forth in the ordinance or indenture authorizing or securing the bonds.
  4. References in this subchapter to mortgage lien shall include and mean security interest in any personal property embodied in properties acquired, constructed, reconstructed, extended, equipped, or improved, in whole or in part, with the proceeds of bonds issued under this subchapter.

History. Acts 1981, No. 53, § 9; A.S.A. 1947, § 13-2409.

14-167-217. Receivership.

    1. The ordinance or indenture referred to in § 14-167-207 or § 14-167-209 may, but need not, provide that in the event of a default in the payment of the principal of, or interest on, any bonds issued under this subchapter, any court having jurisdiction may appoint a receiver to take charge of the land, buildings, or other properties acquired, constructed, reconstructed, extended, equipped, or improved, in whole or in part, with the proceeds of bonds.
    2. The receiver shall have the power to operate and maintain the land, buildings, or other properties and to charge and collect rates or rents sufficient to provide for the payment of the principal of and interest on the bonds, after providing for the payment of all costs of receivership and operating expenses of the land, buildings, or other properties, and to apply the income and revenues derived from the land, buildings, or other properties in conformity with this subchapter and the ordinance or indenture authorizing or securing the bonds.
    3. When the default has been cured, the receivership shall be ended and the properties returned to the municipality or county.
    1. The relief afforded by this section shall be construed to be in addition and supplemental to the remedies that may be afforded to the trustee for the holders and registered owners of the bonds in the ordinance or indenture authorizing or securing the bonds.
    2. The relief shall be so granted and administered as to accord full recognition to priority rights of holders and registered owners of the bonds as to the pledge of revenues from, and the mortgage lien on, land, buildings, or other properties as specified in, and fixed by, the ordinance or indenture authorizing or securing successive bond issues.

History. Acts 1981, No. 53, § 10; A.S.A. 1947, § 13-2410.

14-167-218. Bonds — Tax exemption.

Bonds issued under this subchapter and interest on them shall be exempt from all state, county, municipal, and school district taxes.

History. Acts 1981, No. 53, § 11; A.S.A. 1947, § 13-2411.

14-167-219. Public funds investment.

  1. Any municipality, or any board, commission, or other authority duly established by ordinance of any municipality, or the boards of trustees, respectively, of firemen's relief and pension funds and policemen's pension and relief funds of any municipality, or the board of trustees of any retirement system created by the General Assembly, may invest, in its discretion, any of its funds not immediately needed for its purposes in bonds issued under the provisions of this subchapter.
  2. Bonds issued under the provisions of this subchapter shall be eligible to secure the deposit of public funds.

History. Acts 1981, No. 53, § 12; A.S.A. 1947, § 13-2412.

14-167-220. Intergovernmental agreements.

Municipalities and counties are authorized to enter into and carry out appropriate agreements with any agency or political subdivision of the federal government or of the State of Arkansas pertaining to the accomplishment of the purposes authorized by this subchapter, including, without limitation, loan agreements for the borrowing of money and agreements pertaining to grants.

History. Acts 1981, No. 53, § 13; A.S.A. 1947, § 13-2413.

Chapter 168 Community Redevelopment Generally

Research References

Am. Jur. 40 Am. Jur. 2d, Housing, § 1 et seq.

Subchapter 1 — General Provisions

[Reserved]

Subchapter 2 — Community Redevelopment Financing

Effective Dates. Acts 1983, No. 421, § 10: Mar. 13, 1983. Emergency clause provided: “It is hereby found and determined by the General Assembly that this Act is immediately necessary to make technical corrections in the Community Redevelopment Financing Act. Therefore, an emergency is declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

14-168-201 — 14-168-220. [Repealed.]

Publisher's Notes. These sections, concerning the Arkansas Community Redevelopment Financing Act title, legislative findings and purpose, definition, construction, supplemental powers, general powers, district creation, project plans, overlapping districts, valuation of real property, division of ad valorem real property taxes, tax receipts, bonds, and redevelopment of bonds or notes, were repealed by Acts 2001, No. 1197, § 24. The sections were derived from the following sources:

14-168-201. Acts 1981, No. 716, § 1; A.S.A. 1947, § 13-2501.

14-168-202. Acts 1981, No. 716, § 2; A.S.A. 1947, § 13-2502.

14-168-203. Acts 1981, No. 716, § 4; 1983, No. 421, §§ 1-4; A.S.A. 1947, § 13-2504.

14-186-204. Acts 1981, No. 716, § 12; A.S.A. 1947, § 13-2512.

14-168-205. Acts 1981, No. 716, § 3; A.S.A. 1947, § 13-2503.

14-168-206. Acts 1981, No. 716, § 5; 1983, No. 421, §§ 5, 6; A.S.A. 1947, § 13-2505.

14-168-207. Acts 1981, No. 716, § 6; 1983, No. 421, § 7; A.S.A. 1947, § 13-2506.

14-168-208. Acts 1981, No. 716, § 6; 1983, No. 421, § 7; A.S.A. 1947, § 13-2506.

14-168-209. Acts 1981, No. 716, § 6; 1983, No. 421, § 7; A.S.A. 1947, § 13-2506.

14-168-210. Acts 1981, No. 716, § 10; A.S.A. 1947, § 13-2510.

14-168-211. Acts 1981, No. 716, § 8; 1983, No. 421, § 8; A.S.A. 1947, § 13-2508.

14-168-212. Acts 1981, No. 716, § 7; A.S.A. 1947, § 13-2507.

14-168-213. Acts 1981, No. 716, § 9; A.S.A. 1947, § 13-2509.

14-168-214. Acts 1981, No. 716, § 9; A.S.A. 1947, § 13-2509.

14-168-215. Acts 1981, No. 716, § 9; A.S.A. 1947, § 13-2509.

14-168-216. Acts 1981, No. 716, § 9; A.S.A. 1947, § 13-2509.

14-168-217. Acts 1981, No. 716, § 9; A.S.A. 1947, § 13-2509.

14-168-218. Acts 1981, No. 716, § 9; A.S.A. 1947, § 13-2509.

14-168-219. Acts 1981, No. 716, § 9; A.S.A. 1947, § 13-2509.

14-168-220. Acts 1981, No. 716, § 9; A.S.A. 1947, § 13-2509.

14-168-221. [Repealed.]

Publisher's Notes. This section, concerning impact reports, was repealed by Acts 2003, No. 1473, § 29. The section was derived from Acts 1981, No. 716, § 11; A.S.A. 1947, § 13-2511.

For present law, see § 14-168-322.

Subchapter 3 — Community Redevelopment — Creation and Procedures

A.C.R.C. Notes. Acts 2001, No. 1197, § 1, provided:

“Legislative findings and purpose.

“(a) The General Assembly finds that:

“(1) The citizens of the State of Arkansas approved Amendment No. 78 to the Arkansas Constitution at the general election held November 7, 2000;

“(2) The amendment calls for enabling legislation to be enacted by the General Assembly;

“(3) The amendment necessarily calls for certain definitions to be stated and procedures to be established for the creation of redevelopment districts, the approval of projects, the issuance of bonds to finance such projects, and the division of ad valorem taxes for the purposes of securing such bonds;

“(4) It agrees that in order to encourage the investment of private capital and to encourage private enterprise to make community improvements to alleviate deteriorating conditions and improve the health, safety, convenience, and welfare of the citizens of the state; and

“(5) This act is necessary to provide a means for cities and counties to finance redevelopment projects by using a tax-increment method of financing such improvements.

“(b) The General Assembly declares the purpose of this act to be as follows:

“(1) To create a viable procedure by which a local government may finance redevelopment projects that improve the community;

“(2) To create a more stable and adequate source of funds for local governments to construct improvements and finance rehabilitation of distressed and blighted areas; and

“(3) To benefit the people of this state, for the increase of their commerce, welfare, and prosperity, and for the improvement of their living conditions;

“(4) To provide new employment opportunities;

“(5) To prevent, arrest, and alleviate blight and decay in communities;

“(6) To increase the supply of housing available at low rentals; and

“(7) To improve the tax base and to improve the general economy of the State of Arkansas by providing additional and alternative means for local governments to finance public facilities and residential, commercial, and industrial development and revitalization, all to the public benefit and good, in the manner provided in this act.”

Effective Dates. Acts 2005, No. 2231, § 8: Apr. 13, 2005. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that clarification of existing community redevelopment law is necessary to carry out the intent of this subchapter. Therefore, an emergency is declared to exist and this bill being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2009, No. 1181, § 3: Apr. 7, 2009: Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that due to the instability in the financial markets and the need for alternative financing options by local governments to finance redevelopment projects that can act as an economic stimulus for a community, that there is a need to amend the law; and this act is immediately necessary because of the uncertainty of the economy. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

14-168-301. Definitions.

As used in this subchapter:

  1. “Applicable ad valorem rate” means the total ad valorem rate less the debt service ad valorem rate;
  2. “Base value” means the assessed value of all real property within a redevelopment district subject to ad valorem taxation, as of the most recent assessment preceding the effective date of the ordinance approving the project plan of the redevelopment district;
    1. “Blighted area” means an area in which the structures, buildings, or improvements, by reason of dilapidation, deterioration, age or obsolescence, inadequate provision for access, ventilation, light, air, sanitation, or open spaces, high density of population, and overcrowding or the existence of conditions which endanger life or property, are detrimental to the public health, safety, morals, or welfare.
    2. “Blighted area” includes any area which, by reason of the presence of a substantial number of substandard, slum, deteriorated or deteriorating structures, predominance of defective or inadequate street layout, faulty lot layout in relation to size, adequacy, accessibility, or usefulness, unsanitary or unsafe conditions, deterioration of site or other improvements, diversity of ownership, tax on special assessment delinquency exceeding the fair value of the land, defective or unusual conditions of title, or the existence of conditions which endanger life or property by fire and other causes, or any combination of such factors, substantially impairs or arrests the sound growth of a city, retards the provision of housing accommodations, or constitutes an economic or social liability and is a menace to the public health, safety, morals, or welfare in its present condition and use, or any area which is predominantly open and which because of lack of accessibility, obsolete platting, diversity of ownership, deterioration of structures or of site improvements, or otherwise, substantially impairs or arrests the sound growth of the community;
  3. “Capital improvements of a public nature” has the same meaning as in § 14-164-303(2);
  4. “Current value” means the assessed value of all real property within a redevelopment district subject to ad valorem taxation, as of the most recent assessment after the formation of the redevelopment district;
  5. “Debt service ad valorem rate” means that portion of the total ad valorem rate that, as of the effective date of the creation of the redevelopment district, is pledged to the payment of debt service on bonds issued by any taxing unit in which all or any part of the redevelopment district is located;
    1. “Incremental value” for any redevelopment district, means the difference between the base value and the current value.
    2. The incremental value will be positive if the current value exceeds the base value, and the incremental value will be negative if the current value is less than the base value;
  6. “Local governing body” means the city council, city board of directors, county quorum court, or any other legislative body governing a local government in the State of Arkansas;
  7. “Local government” means any city or county in the State of Arkansas;
    1. “Project costs” means expenditures made in preparation of the project plan and made, or estimated to be made, or monetary obligations incurred, or estimated to be incurred, by the local government, which are listed in the project plan as costs of public works or improvements benefiting a redevelopment project district, plus any costs incidental thereto.
    2. Project costs include, but are not limited to:
      1. Capital costs, including, but not limited to, the actual costs of the construction of public works or improvements, new buildings, structures, and fixtures, the demolition, alteration, remodeling, repair, or reconstruction of existing buildings, structures, and fixtures, environmental remediation, parking and landscaping, the acquisition of equipment, and site clearing, grading, and preparation;
      2. Financing costs, including, but not limited to, all interest paid to holders of evidences of indebtedness issued to pay for project costs, all costs of issuance, and any redemption premiums, credit enhancement, or other related costs;
      3. Real property assembly costs, meaning any deficit incurred resulting from the sale or lease as lessor by the local government of real or personal property within a redevelopment district for consideration which is less than its cost to the local government;
      4. Professional service costs, including, but not limited to, those costs incurred for architectural, planning, engineering, and legal advice and services;
      5. Imputed administrative costs, including, but not limited to, reasonable charges for the time spent by local government employees in connection with the implementation of a project plan;
      6. Relocation costs, including, but not limited to, those relocation payments made following condemnation and job training and retraining;
      7. Organizational costs, including, but not limited to, the costs of conducting environmental impact and other studies and the costs of informing the public with respect to the creation of redevelopment project areas and the implementation of project plans;
      8. The amount of any contributions made in connection with the implementation of the project plan;
      9. Payments made, in the discretion of the local governing body, which are found to be necessary or convenient to the creation of redevelopment areas or the implementation of project plans; and
      10. That portion of costs related to the construction of environmental protection devices, storm or sanitary sewer lines, water lines, amenities, federal or state highways, or city or county streets or the rebuilding or expansion of highways or streets, the construction, alteration, rebuilding, or expansion of which is necessitated by the project plan for a district, whether or not the construction, alteration, rebuilding, or expansion is within the area;
  8. “Project plan” means the plan which shall be adopted by a local governing body for a redevelopment project as described in § 14-168-306;
  9. “Real property” means all lands, including improvements and fixtures on them and property of any nature appurtenant to them or used in connection with them and every estate, interest, and right, legal or equitable, in them, including terms for years and liens by way of judgment, mortgage, or otherwise, and the indebtedness secured by the liens;
  10. “Redevelopment district” means a contiguous geographic area within a city or county in which a redevelopment project will be undertaken, as defined and created by ordinance of the local governing body;
    1. “Redevelopment project” means an undertaking for eliminating or preventing the development or spread of slums or deteriorated, deteriorating, or blighted areas, for discouraging the loss of commerce, industry, or employment, or for increasing employment, or any combination thereof.
    2. A redevelopment project may include one (1) or more of the following:
      1. The acquisition of land and improvements, if any, within the redevelopment district and clearance of the land so acquired;
      2. The development, redevelopment, revitalization, or conservation of the project area whenever necessary to provide land for needed public facilities, public housing, or industrial or commercial development or revitalization, to eliminate unhealthful, unsanitary, or unsafe conditions, to lessen density, mitigate or eliminate traffic congestion, reduce traffic hazards, eliminate obsolete or other uses detrimental to the public welfare, or otherwise remove or prevent the spread of blight or deterioration;
      3. The financial or other assistance in the relocation of persons and organizations displaced as a result of carrying out the redevelopment project and other improvements necessary for carrying out the project plan, together with such site improvements as are necessary for the preparation of any sites and making any land or improvements acquired in the project area available by sale or by lease for public housing or for development, redevelopment, or rehabilitation by private enterprise for commercial or industrial uses in accordance with the plan;
      4. The construction of capital improvements within a redevelopment district designed to alleviate deteriorating conditions or a blighted area or designed to increase or enhance the development of commerce, industry, or housing within the redevelopment district; or
      5. Any other projects the local governing body deems appropriate to carry out the purposes of this subchapter;
  11. “Special fund” means a separate fund for a redevelopment district established by the local government into which all tax increment revenues and other pledged revenues are deposited and from which all project costs are paid;
  12. “Tax increment” means the incremental value of a redevelopment district multiplied by the applicable ad valorem rate;
  13. “Taxing unit” means the State of Arkansas and any city, county, or school district; and
    1. “Total ad valorem rate” means the total millage rate of all state, county, city, school, or other property taxes levied on all taxable property within a redevelopment district in a year.
    2. The total ad valorem rate shall not include any:
      1. Increases in the total millage rate occurring after the effective date of the creation of the redevelopment district if the additional millage is pledged for repayment of a specific bond or note issue;
      2. Property taxes levied for libraries under Arkansas Constitution, Amendment 30, or Arkansas Constitution, Amendment 38;
      3. Property taxes levied for a fireman's relief and pension fund or policeman's relief and pension fund of any municipality or county; or
      4. Property taxes levied for any hospital owned and operated by a county.

History. Acts 2001, No. 1197, § 2; 2005, No. 1163, § 1; 2005, No. 2231, § 1.

A.C.R.C. Notes. Pursuant to § 1-2-207, this section is set out above as amended by Acts 2005, Nos. 1163 and 2231. Present subdivision (18) of this section was also amended by Acts 2005, No. 1275, § 1, to read as follows:

“‘Total ad valorem rate’ means the total millage rate of all county, city, school, or other local general property taxes levied on all taxable property within a redevelopment district in a year, other than property taxes levied for libraries under Arkansas Constitution, Amendment 30, or Arkansas Constitution, Amendment 38.”

Cross References. City and county government redevelopment, Ark. Const. Amend. 78.

Amendments. The 2005 amendment by No. 1163 deleted “or community college district” in former (16) and made a related change.

The 2005 amendment by No. 2231 substituted “subchapter” for “act subchapter, unless the context otherwise requires” in the introductory language; in (2), inserted “real” preceding “property” and substituted “effective date of the ordinance approving the project plan” for “formation”; added present (4) and redesignated the remaining subsections accordingly; substituted “as of the effective date of the creation of the redevelopment district, if” for “has been, at January 1, 2001” in present (6); substituted “benefiting” for “within” in present (10)(A); in (10)(B)(x), inserted “federal or state highways, city or county” and made a related change and inserted “highways or” following “expansion of”; inserted “the State of Arkansas and” in present (17); in present (18) added the subdivision (A) designation and added (B); and in present (18)(A) inserted “state” preceding “county”, deleted “local general” preceding “property taxes” and deleted “other than property taxes for libraries under Arkansas Constitution, Amendment 30, or Arkansas Constitution, Amendment 38.”

Case Notes

Total Ad Valorem Rate.

County tax collector erred in including 2.75 mills in the total ad valorem rate and applying a portion of them to the redevelopment district because the mills were passed to repay proposed school bonds; under subdivision (18)(B)(i) of this section, the “total ad valorem rate” excluded increases that were pledged for repayment of a specific bond issue. City of Fayetteville v. Fayetteville Sch. Dist. No. 1, 2013 Ark. 71, 427 S.W.3d 1 (2013).

14-168-302. Construction.

The General Assembly declares that this subchapter is necessary for the welfare of this state and its inhabitants, and it is the intent of the General Assembly that it is to be broadly construed to effect its purpose.

History. Acts 2001, No. 1197, § 3.

14-168-303. Powers supplemental.

The powers conferred by this subchapter are in addition and supplemental to the powers conferred upon local governments and improvement districts by the General Assembly relating to the issuance of bonds.

History. Acts 2001, No. 1197, § 4.

14-168-304. Powers generally.

In addition to any other powers conferred by law, a local government may exercise any powers necessary and convenient to carry out the purpose of this subchapter, including the power to:

  1. Create redevelopment districts and to define the boundaries of redevelopment districts;
  2. Cause project plans to be prepared, to approve the project plans, and to implement the provisions and effectuate the purposes of the project plans;
  3. Issue redevelopment bonds, notes, or other evidences of indebtedness, in one or more series, and to pledge tax increments and other redevelopment revenues for repayment of them;
  4. Deposit moneys into the special fund for any redevelopment project district;
  5. Enter into any contracts or agreements, including agreements with bondholders, determined by the local governing body to be necessary or convenient to implement the provisions and effectuate the purposes of project plans;
  6. Receive from the United States Government or the state loans and grants for or in aid of a redevelopment project and to receive contributions from any other source to defray project costs;
    1. Exercise the right of eminent domain to condemn property for the purposes of implementing the project plan.
    2. The rules and procedures set forth in §§ 18-15-301 — 18-15-307 shall govern all condemnation proceedings authorized in this subchapter;
  7. Make relocation payments to such persons, businesses, or organizations as may be displaced as a result of carrying out the redevelopment project;
  8. Clear and improve property acquired by it pursuant to the project plan and construct public facilities on it or contract for the construction, development, redevelopment, rehabilitation, remodeling, alteration, or repair of the property;
  9. Cause parks, playgrounds, or water, sewer, or drainage facilities, or any other public improvements, including, but not limited to, fire stations, community centers, and other public buildings which it is otherwise authorized to undertake to be laid out, constructed, or furnished in connection with the redevelopment project;
  10. Lay out and construct, alter, relocate, change the grade of, make specific repairs upon, or discontinue public ways and construct sidewalks in, or adjacent to, the redevelopment project;
  11. Cause private ways, sidewalks, ways for vehicular travel, playgrounds, or water, sewer, or drainage facilities and similar improvements to be constructed for the benefit of the redevelopment district or those dwelling or working in it;
  12. Construct any capital improvements of a public nature, as such term is defined in § 14-164-303(2), as now or hereafter amended;
  13. Construct capital improvements to be leased or sold to private entities in connection with the goals of the redevelopment project;
  14. Designate one (1) or more officials or employees of the local government to make decisions and handle the affairs of redevelopment districts created pursuant to this subchapter;
  15. Adopt ordinances or bylaws or repeal or modify such ordinances or bylaws or establish exceptions to existing ordinances and bylaws regulating the design, construction, and use of buildings within the redevelopment district;
  16. Sell, mortgage, lease, transfer, or dispose of any property, or interest therein, acquired by it pursuant to the project plan for development, redevelopment, or rehabilitation in accordance with the project plan;
  17. Invest project revenues as provided in this subchapter; and
  18. Do all things necessary or convenient to carry out the powers granted in this subchapter.

History. Acts 2001, No. 1197, § 5; 2005, No. 2231, § 2.

Amendments. The 2005 amendment, in (3), added “or other evidences of indebtedness, in one or more series” and made a related change; and substituted “for the benefit“ for “within the redevelopment project” for the “particular use” in (12).

14-168-305. Creation of district.

  1. The local governing body, upon its own initiative or upon request of affected property owners or upon request of the city or county planning commission, may designate the boundaries of a proposed redevelopment district.
    1. The local governing body shall hold a public hearing at which interested parties are afforded a reasonable opportunity to express their views on the proposed creation of a redevelopment district and its proposed boundaries.
      1. Notice of the hearing shall be published in a newspaper of general circulation in the city or county at least fifteen (15) days prior to the hearing.
      2. Prior to this publication, a copy of the notice shall be sent by first-class mail to the chief executive officers of all local governmental and taxing units having the power to levy taxes on property located within the proposed redevelopment district and to the superintendent of any school district which includes property located within the proposed redevelopment district.
  2. The local governing body shall adopt an ordinance which:
    1. Describes the boundaries of a redevelopment district sufficiently definitely to identify with ordinary and reasonable certainty the territory included, which boundaries may create a contiguous district;
    2. Creates the redevelopment district as of a date provided in it;
      1. Assigns a name to the redevelopment district for identification purposes.
      2. The name may include a geographic or other designation, shall identify the city or county authorizing the district, and shall be assigned a number beginning with the number one (1).
      3. Each subsequently created district shall be assigned the next consecutive number;
    3. Contains findings that the real property within the redevelopment district will be benefited by eliminating or preventing the development or spread of slums or blighted, deteriorated, or deteriorating areas, or discouraging the loss of commerce, industry, or employment, or increasing employment, or any combination thereof; and
    4. Contains findings whether the property located in the proposed redevelopment district is in a wholly unimproved condition or whether the property located in the proposed redevelopment district contains existing improvements.
  3. The local governing body shall not approve an ordinance creating a redevelopment district, unless the local governing body determines that the boundaries of the proposed redevelopment district are in a blighted area that includes the presence of at least one (1) of the following factors:
    1. Property located in the proposed redevelopment district is in an advanced state of dilapidation or neglect or is so structurally deficient that improvements or major repairs are necessary to make the property functional;
    2. Property located in the proposed redevelopment district has structures that have been vacant for more than three (3) years;
    3. Property located in the proposed redevelopment district has structures that are functionally obsolete and cause the structures to be ill-suited for their original use; or
    4. Vacant or unimproved parcels of property located in the redevelopment district are in an area that is predominantly developed and are substantially impairing or arresting the growth of the city or county due to obsolete platting, deterioration of structures, absence of structures, infrastructure, site improvements, or other factors hindering growth.
    1. No county shall establish a redevelopment district, any portion of which is within the boundaries of a city.
    2. However, one (1) or more local governments through interlocal agreement may join in the creation of a district, the boundaries of which lie in one (1) or more local governments.
    1. The ordinance shall establish a special fund as a separate fund into which all tax increment revenues, and any other revenues generated under the Arkansas Constitution or Arkansas law and designated by the local government for the benefit of the redevelopment district shall be deposited and from which all project costs shall be paid.
    2. The special fund may be assigned to and held by a trustee for the benefit of bondholders if tax increment financing is used.
    3. If the local governing body determines that the property located in the proposed redevelopment district is in a wholly unimproved condition, the ordinance shall state that the revenues deposited into the special fund shall be used only for project costs incurred in connection with capital improvements of a public nature.
    1. The boundaries of the redevelopment district may be modified from time to time by ordinance of the local government.
    2. However, in the event any bonds, notes, or other obligations are outstanding with respect to the redevelopment district, any change in the boundaries shall not reduce the amount of tax increment available to secure such tax increment financing.

History. Acts 2001, No. 1197, § 6; 2005, No. 2231, § 2.

Amendments. The 2005 amendment, in (b)(2)(B), substituted “units” for “entities” following “taxing” and “superintendent” for “school boards”; deleted “or noncontiguous” following “contiguous” in (c)(1); added (c)(5) and present (d) and redesignated remaining subsections accordingly; in present (f)(1), inserted “any” and “generated under the Arkansas Constitution or Arkansas law and”; and added (f)(3).

14-168-306. Project plan — Approval.

    1. Upon the creation of the redevelopment district, the local governing body shall cause the preparation of a project plan for each redevelopment district, and the project plan shall be adopted by ordinance of the local governing body.
    2. This process shall conform to the procedures set forth in this section.
  1. Each project plan shall include:
    1. A statement listing the kind, number, and location of all proposed public works or improvements benefiting the district;
      1. An economic analysis prepared by a third party independent of the local governing body that shall include the projected aggregate tax impact, if any, to taxing units as a result of the creation of a redevelopment district.
      2. The economic analysis shall include a comparison of the projected ad valorem tax revenue diverted from taxing units to the redevelopment district special fund against all projected sales, income, and ad valorem taxes received by taxing units or recaptured by taxing units from neighboring states as a result of the creation of the redevelopment district.
        1. The local governing body shall submit the economic analysis to the Arkansas Economic Development Commission for review.
        2. The commission shall review the economic analysis and provide written comments as to its economic feasibility to the local governing body no later than thirty (30) days after submission by the local governing body;
    2. A list of estimated project costs;
    3. A description of the methods of financing all estimated project costs, including the issuance of tax increment bonds;
    4. A certification by the county assessor of the base value as of the date of certification;
    5. A certification by the county clerk or county tax collector, if the county operates under the unit tax ledger system, of the total ad valorem rate, debt service ad valorem rate, and applicable ad valorem rate for the redevelopment district as of the date of certification;
    6. The type and amount of any other revenues that are expected to be deposited to the special fund of the redevelopment district;
    7. A map showing existing uses and conditions of real property in the district;
    8. A map of proposed improvements and uses in the district;
    9. Proposed changes of zoning ordinances;
    10. Appropriate cross-references to any master plan, map, building codes, and city ordinances affected by the project plan;
    11. A list of estimated nonproject costs;
    12. A statement of the proposed method for the relocation of any persons to be displaced; and
    13. An estimate of the timing, number, and types of jobs to be created by the redevelopment project.
  2. If the project plan is to include tax increment financing, the tax increment financing portion of the plan shall set forth:
    1. An estimate of the amount of indebtedness to be incurred pursuant to this subchapter;
    2. An estimate of the tax increment to be generated as a result of the project;
    3. The method for calculating the tax increment, which shall be in conformance with the provisions of this subchapter, together with any provision for adjustment of the method of calculation;
    4. Any other revenues, such as payment-in-lieu-of-taxes revenues, to be used to secure the tax increment financing; and
    5. Any other provisions as may be deemed necessary in order to carry out any tax increment financing to be used for the redevelopment project.
  3. If less than all of the tax increment is to be used to fund a redevelopment project or to pay project costs or retire tax increment financing, the project plan shall set forth the portion of the tax increment to be deposited into the special fund of the redevelopment district, and provide for the distribution of the remaining portion of the tax increment to the taxing units in which the district lies.
    1. The local governing body shall hold a public hearing at which interested parties are afforded a reasonable opportunity to express their views on the proposed project plan.
      1. Notice of the hearing shall be published in a newspaper of general circulation in the city or county at least fifteen (15) days prior to the hearing.
      2. Prior to this publication, a copy of the notice shall be sent by first-class mail to the chief executive officers of all local governmental and taxing entities having the power to levy taxes on property located within the proposed redevelopment district and to the superintendent of any school district which includes property located within the proposed redevelopment district.
    2. The hearing may be held in conjunction with the hearing set forth in § 14-168-305(b)(1).
    1. Approval by the local governing body of a project plan must be within one (1) year after the date of the county assessor's certification required by subdivision (b)(5) of this section.
    2. The approval shall be by ordinance which contains a finding that the plan is economically feasible.

History. Acts 2001, No. 1197, § 7; 2005, No. 2317, § 1; 2005, No. 2231, § 2.

Amendments. The 2005 amendment by No. 2317 deleted “tax” preceding “assessor” and “total ad valorem rate, debt service ad valorem rate, and applicable ad valorem rate for the redevelopment district” following “base value” in (5); and added (6) and redesignated remaining subsections accordingly.

The 2005 amendment by No. 2231 substituted “benefitting” for “within the district or, to the extent provided, outside” in (b)(1); rewrote (b)(2); deleted “detailed” following “A” in (b)(3); deleted “and the time when the costs or monetary obligations related thereto are to be incurred” at the end of (b)(4); inserted “as of the date of certification” in (b)(5); added (b)(13); substituted “An estimate of the” for “The” in (c)(1); substituted “superintendent” for “school board” in (e)(2)(B); and deleted former (e)(4).

14-168-307. Project plan — Amendment.

  1. The local governing body may adopt by ordinance an amendment to a project plan.
    1. Adoption of an amendment to a project plan shall be preceded by a public hearing held by the local governing body as provided in § 14-168-306(e)(1), at which interested parties shall be afforded a reasonable opportunity to express their views on the amendment.
      1. Notice of the hearing shall be published in a newspaper of general circulation in the city or county at least fifteen (15) days prior to the hearing.
      2. Prior to publication, a copy of the notice shall be sent by first-class mail to the chief executive officers of all local governments or entities having the power to levy taxes on property within the district and to the superintendent of any school district that includes property located within the proposed district.
    1. One (1) or more existing redevelopment districts may be combined pursuant to lawfully adopted amendments to the original plans for each district.
    2. Provided that the local governing body finds that the combination of the districts will not impair the security for any bonds previously issued pursuant to this subchapter.

History. Acts 2001, No. 1197, § 8; 2005, No. 2231, § 2.

Amendments. The 2005 amendment substituted “at least” for “once a week for two (2) consecutive weeks. The first such publication shall be” in (b)(2)(A); and substituted “superintendent” for “school board” in (b)(2)(B).

14-168-308. Termination of districts.

    1. A redevelopment district shall not be in existence for a period longer than twenty-five (25) years, unless under the original redevelopment plan or by amendment of the original redevelopment plan bonds have been issued and the bonds would not be fully paid until after the date that is twenty-five (25) years from the date of creation of the district.
    2. In any event, a redevelopment district shall not be in existence for a period longer than forty (40) years.
  1. The local governing body may set a shorter period for the existence of the district and may also provide that bonds shall not have a final maturity on a date later than the termination date of the district.
  2. Upon termination of the district, further ad valorem tax revenues shall not be distributed to the special fund of the district.
    1. The local governing body shall adopt upon the expiration of the time periods set forth in this section an ordinance terminating the redevelopment district.
    2. A district shall not be terminated so long as bonds with respect to the district remain outstanding.

History. Acts 2001, No. 1197, § 9; 2005, No. 2231, § 2; 2009, No. 1181, § 2.

A.C.R.C. Notes. Acts 2009, No. 1181, § 1, provided:

“Legislative intent.

“(a) On November 7, 2000, the citizens of Arkansas approved Amendment 78 of the Arkansas Constitution concerning redevelopment financing.

“(b) The General Assembly adopted enabling legislation to codify Amendment 78, Arkansas Constitution, with Act 1197 of 2001 authorizing the establishment of redevelopment districts.

“(c) Among the stated purposes of Act 1197 of 2001 was the creation of a viable procedure by which local governments could finance redevelopment projects to improve the community, to improve the tax base, and to improve the general economy of the State of Arkansas by providing additional and alternative means for local governments to finance public facilities and residential, commercial, and industrial development and revitalization.

“(d) Because of the instability in financial markets and overall economy, it is necessary to modify Act 1197 of 2001 to effectuate the will of the people and the purposes of the General Assembly.”

Amendments. The 2005 amendment deleted “unless, pursuant to amendment of the redevelopment plan, additional bonds have been issued and would not be fully paid until after the date which is twenty-five (25) years from the date of creation of the district” from the end of (a).

The 2009 amendment rewrote (a) and made minor stylistic changes.

14-168-309. Costs of formation.

  1. The local government may pay, but shall have no obligation to pay, the costs of preparing the project plan or forming the redevelopment district.
  2. If the local government elects not to incur those costs, they shall be made project costs of the district and reimbursed from bond proceeds or other financing, or may be paid by developers, property owners, or other persons interested in the success of the redevelopment project.

History. Acts 2001, No. 1197, § 10.

14-168-310. Overlapping districts.

The boundaries of any redevelopment districts shall not overlap with any other redevelopment district.

History. Acts 2001, No. 1197, § 11.

14-168-311. Valuation of real property.

    1. Upon and after the effective date of the creation of a redevelopment project district, the county assessor of the county in which the district is located shall transmit to the county clerk, upon the request of the local governing body, the base value, total ad valorem rate, debt service ad valorem rate, and applicable ad valorem rate for the redevelopment district and shall certify to it.
      1. The assessor shall undertake, upon request of the local governing body, an investigation, examination, and inspection of the taxable real property in the district and shall reaffirm or revalue the base value for assessment of the property in accordance with the findings of the investigation, examination, and inspection.
      2. The assessor shall determine, according to his or her best judgment from all sources available to him or her, the full aggregate value of the taxable property in the district, which aggregate valuation, upon certification thereof by the assessor to the clerk, constitutes the base value of the area.
        1. The assessor shall give notice annually to the designated finance officer of each taxing unit having the power to levy taxes on property within each district of the current value and the incremental value of the property in the redevelopment district.
        2. The assessor shall also determine the tax increment by applying the applicable ad valorem rate to the incremental value.
      1. The notice shall also explain that the entire amount of the tax increment allocable to property within the redevelopment district will be paid to the special fund of the redevelopment district.
    1. The assessor shall identify upon the assessment roll those parcels of property which are within each existing district specifying on it the name of each district.

History. Acts 2001, No. 1197, § 12.

14-168-312. Division of ad valorem real property tax revenue.

  1. For so long as the redevelopment district exists, the tax assessor shall divide the ad valorem tax revenue collected, with respect to taxable property in the district, as follows:
    1. The assessor shall determine for each tax year:
      1. The amount of total ad valorem tax revenue which should be generated by multiplying the total ad valorem rate times the current value;
      2. The amount of ad valorem tax revenue which should be generated by multiplying the applicable ad valorem rate times the base value;
      3. The amount of ad valorem tax revenue which should be generated by multiplying the debt service ad valorem rate times the current value; and
      4. The amount of ad valorem revenue which should be generated by multiplying the applicable ad valorem rate times the incremental value;
    2. The assessor shall determine from the calculations set forth in subdivision (a)(1) of this section the percentage share of total ad valorem revenue for each according to subdivisions (a)(1)(B)-(D) of this section, by dividing each of such amounts by the total ad valorem revenue figure determined by the calculation in subdivision (a)(1)(A) of this section; and
    3. On each date on which ad valorem tax revenue is to be distributed to taxing units, such revenue shall be distributed by:
      1. Applying the percentage share determined according to subdivision (a)(1)(B) of this section to the revenues received and distributing such share to the taxing entities entitled to such distribution pursuant to current law;
      2. Applying the percentage share determined according to subdivision (a)(1)(C) of this section to the revenues received and distributing such share to the taxing entities entitled to such distribution by reason of having bonds outstanding; and
      3. Applying the percentage share determined according to subdivision (a)(1)(D) of this section to the revenues received and distributing such share to the special fund of the redevelopment district.
  2. In each year for which there is a positive tax increment, the county treasurer shall remit to the special fund of the redevelopment district that portion of the ad valorem taxes that consists of the tax increment.
  3. Any additional moneys appropriated to the redevelopment district pursuant to an appropriation by the local governing body and any additional moneys dedicated to the fund from other sources shall be deposited to the redevelopment district fund by the treasurer of the local government.
  4. Any funds so deposited into the special fund of the redevelopment district may be used to pay project costs, principal and interest on bonds, and to pay for any other improvements of the redevelopment district deemed proper by the local governing body.
  5. Unless otherwise directed pursuant to any agreement with bondholders, moneys in the fund may be temporarily invested in the same manner as other municipal funds.
  6. If less than all of the tax increment is to be used for project costs or pledged to secure tax increment financing as provided in the plan for the redevelopment project, the assessor shall account for such fact in distributing the ad valorem tax revenues.

History. Acts 2001, No. 1197, § 13.

14-168-313. Payments in lieu of taxes and other revenues.

  1. The local governing body may elect to deposit into the special fund of the redevelopment district all or any portion of payments in lieu of taxes on property within the redevelopment district, including that portion of the payments in lieu of taxes that would have been distributed to other local political subdivisions under § 14-164-703.
  2. Other revenues to be derived from the redevelopment project may also be deposited into the special fund at the direction of the local governing body.

History. Acts 2001, No. 1197, § 14; 2005, No. 2231, § 3.

Amendments. The 2005 amendment, in (a), deleted “of the local government's share” following “portion” and inserted “including that portion of the payments in lieu of taxes that would have been distributed to other local political subdivisions under § 14-164-703.”

14-168-314. Bonds generally.

    1. Bonds may be issued for project costs which may include interest prior to and during the carrying out of a project and for a reasonable time thereafter, with such reserves as may be required by any agreement securing the bonds and all other expenses incidental to planning, carrying out, and financing the project.
    2. The proceeds of bonds may also be used to reimburse the costs of any interim financing entered on behalf of the redevelopment district.
  1. Bonds issued under this subchapter shall be payable solely from the tax increment or other revenues deposited to the credit of the special fund of the redevelopment district and shall not be deemed to be a pledge of the faith and credit of the local government.
  2. Every bond issued under this subchapter shall recite on its face that it is a special obligation bond payable solely from the tax increment and other revenues pledged for its repayment.

History. Acts 2001, No. 1197, § 15.

14-168-315. Redevelopment bonds or notes — Authority to issue.

For the purpose of paying project costs or of refunding bonds, notes, or other evidences of indebtedness issued under this subchapter for the purpose of paying project costs, the local governing body may issue bonds, notes, or other evidences of indebtedness, in one (1) or more series, with the bonds or notes payable out of positive tax increments and other revenues deposited to the special fund of the redevelopment district.

History. Acts 2001, No. 1197, § 16; 2005, No. 2231, § 4.

Amendments. The 2005 amendment substituted “bonds, notes, or other evidences of indebtedness issued under” for “notes issued under” and substituted “bonds, notes, or other evidences of indebtedness, in one (1) or more series, with the” for “redevelopment.”

14-168-316. Redevelopment bonds or notes — Authorizing resolution.

  1. Redevelopment bonds and notes shall be authorized by ordinance of the local governing body.
    1. The ordinance shall state the name of the redevelopment project district, the amount of bonds or notes authorized, and the interest rate to be borne by the bonds or notes.
    2. The ordinance may prescribe the terms, form, and content of the bonds or notes and such other matters as the local governing body deems useful, or it may include by reference the terms and conditions set forth in a trust indenture or other document securing the redevelopment bonds.

History. Acts 2001, No. 1197, § 17.

14-168-317. Redevelopment bonds or notes — Terms, conditions, etc.

    1. Redevelopment bonds or notes may not be issued in an amount exceeding the estimated aggregate project costs, including all costs of issuance of the bonds or notes.
    2. The redevelopment bonds and notes shall not be included in the computation of the constitutional debt limitation of a local government.
    1. The bonds or notes shall mature over a period not exceeding the date of termination of the redevelopment district, as determined pursuant to § 14-168-308.
    2. The bonds or notes may contain a provision authorizing their redemption, in whole or in part, at stipulated prices, at the option of the local government on any interest payment date and, if so, shall provide the method of selecting the bonds or notes to be redeemed.
    3. The principal and interest on the bonds and notes may be payable at any place set forth in the resolution, trust indenture, or other document governing the bonds.
    4. The bonds or notes shall be issued in registered form.
    5. The bonds or notes may be in any denominations.
    6. Each such bond or note is declared to be a negotiable instrument.
  1. The bonds or notes may be sold at public or private sale.
  2. Insofar as they are consistent with subdivision (a)(1) of this section and subsections (b) and (c) of this section, the provisions of §§ 14-169-220 and 14-169-221 relating to procedures for issuance, form, contents, execution, negotiation, and registration of municipal bonds and notes are incorporated by reference in subdivision (a)(1) of this section and subsections (b) and (c) of this section.
    1. The bonds may be refunded or refinanced and refunding bonds may be issued in any principal amount.
    2. Provided, that the last maturity of the refunding bonds shall not be later than the last maturity of the bonds being refunded.

History. Acts 2001, No. 1197, § 18; 2005, No. 2231, § 5.

Amendments. The 2005 amendment, in (b)(1), deleted “twenty five (25) years from their date of issuance or a period terminating with” following “exceeding” and substituted “as determined pursuant to § 14-168-308” for “whichever period terminates earlier.”

14-168-318. Redevelopment bonds or notes — Security — Marketability.

To increase the security and marketability of redevelopment bonds or notes, the local government may:

  1. Create a lien for the benefit of the bondholders upon any public improvements or public works financed by the bonds; or
  2. Make such covenants and do any and all such actions, not inconsistent with the Arkansas Constitution, which may be necessary or convenient or desirable in order to additionally secure the bonds or notes, or which tend to make the bonds or notes more marketable according to the best judgment of the local governing body.

History. Acts 2001, No. 1197, § 19.

14-168-319. Redevelopment bonds or notes — Special fund for repayment.

  1. Redevelopment bonds and notes are payable out of the special fund created for each redevelopment district under this subchapter.
    1. The local governing body shall irrevocably pledge all or part of the special fund to the payment of the bonds or notes.
    2. The special fund, or the designated part thereof, may thereafter be used only for the payment of the bonds or notes and their interest until they have been fully paid.
  2. A holder of the bonds or notes shall have a lien against the special fund for payment of the bonds or notes and interest on them and may bring suit, either at law or in equity, to enforce the lien.

History. Acts 2001, No. 1197, § 20.

14-168-320. Redevelopment bonds or notes — Tax exemption.

Bonds and notes issued under this subchapter, together with the interest and income therefrom, shall be exempt from all state, county, and municipal income taxes.

History. Acts 2001, No. 1197, § 21.

14-168-321. Excess funds.

  1. Moneys received in the special fund of the district in excess of amounts needed to pay project costs may be used only by the local governing body for the redemption of outstanding bonds, notes, or other evidences of indebtedness issued by the redevelopment district or for distribution to any taxing unit in such amounts as may be determined by the local governing body.
  2. Upon termination of the district, all amounts in the special fund of the district may be used by the local governing body for any lawful purpose.

History. Acts 2001, No. 1197, § 22; 2005, No. 2231, § 6.

Amendments. The 2005 amendment, in (a), inserted “only” and substituted “the redemption of … local governing body” for “other purposes of the district or for any other lawful purpose of the local governing body.”

Cross References. Assessment Coordination Department, § 25-28-101 et seq.

14-168-322. Impact reports.

  1. The local governing body annually shall report to the Assessment Coordination Division the current value and incremental value of a redevelopment district and the properties adjacent to the redevelopment district.
  2. The division, in cooperation with other state agencies and local governments, shall make a comprehensive impact report to the Governor and to the General Assembly at the beginning of each biennium as to the economic, social, and financial effect and impact of community redevelopment financing projects.

History. Acts 2001, No. 1197, § 23; 2005, No. 2231, § 7.

Amendments. The 2005 amendment inserted present (a); and redesignated the former section as present (b).

14-168-323. Value of assessed property in a redevelopment district.

  1. If state funding to a school district is calculated with regard to the value of assessed property located in the school district, the incremental value of real property within a redevelopment district shall not be included in the assessed value of the real property within the school district for purposes of computing school district funding if the real property is located within the redevelopment district and within the school district and the assessed value of the real property increases above the base value.
  2. Subsection (a) of this section shall apply for each school year during which the tax increment for real property within the redevelopment district is distributed pursuant to § 14-168-312.

History. Acts 2003 (2nd Ex. Sess.), No. 43, § 1.

14-168-324. Exemption — Library millage.

Property taxes levied for libraries under Arkansas Constitution, Amendment 30, or Arkansas Constitution, Amendment 38, are exempt from this subchapter and shall not be diverted from the use for which they were levied.

History. Acts 2005, No. 1275, § 2.

Chapter 169 Housing Authorities And Urban Renewal Agencies

Research References

ALR.

Liability of urban redevelopment authority or other state or municipal agency or entity for injuries occurring in vacant or abandoned property owned by governmental entity. 7 A.L.R.4th 1129.

Law regulating conversion of rental housing to condominiums. 21 A.L.R.4th 1083.

Validity, construction, and application of state relocation assistance laws. 49 A.L.R.4th 491.

Am. Jur. 27 Am. Jur. 2d Em. Dom., § 942 et seq.

40 Am. Jur. 2d, Housing, § 1 et seq.

Subchapter 1 — General Provisions

Effective Dates. Acts 1943, No. 280, § 17: approved Mar. 23, 1943. Emergency clause provided: “Inasmuch as there is no statutory provision for the creation and establishment of consolidated housing authorities by two or more municipalities nor other provisions contained in this act that are necessary to make housing authorities in this State more efficient and economical administrative units, it is necessary for the immediate preservation of the public peace, health and safety that this act become effective without delay. This act, therefore, shall take effect and be in full force from and after its passage.”

14-169-101. Definitions.

As used in this act, unless the context otherwise requires:

  1. “Municipality” means any city, town, or other municipality in the state;
  2. “Bonds” means any bonds, notes, interim certificates, debentures, obligations, or other evidences of indebtedness issued by a housing authority;
  3. “Governing body” means, in the case of a municipality, the council or other legislative body, and in the case of a county, the county court or other legislative body;
  4. “Clerk” means the clerk or the officer with similar duties;
  5. “Housing Authorities Act” means §§ 14-169-201 — 14-169-205, 14-169-207 — 14-169-225, 14-169-227, 14-169-229 — 14-169-240, and 14-169-804;
  6. “Supplemental Housing Authorities Act” means §§ 14-169-223, 14-169-228, 14-169-237, 14-169-238, 14-169-302 — 14-169-313, 14-169-501 — 14-169-503, and this act.

History. Acts 1943, No. 280, § 14; A.S.A. 1947, § 19-3051.

Meaning of “this act”. Acts 1943, No. 280, codified as §§ 14-169-10114-169-106, 14-169-224, 14-169-226, 14-169-304, 14-169-319, 14-169-401.

14-169-102. Powers supplemental.

  1. The powers conferred by this act shall be in addition and supplemental to the powers conferred by any other law.
  2. Nothing contained in this act shall affect the term of office of any commissioner of a housing authority heretofore appointed.
  3. The enactment of this act shall not be construed to render invalid any action or proceeding had or taken for the creation or establishment of a housing authority pursuant to laws in existence prior to the enactment of this act.

History. Acts 1943, No. 280, § 15; A.S.A. 1947, § 19-3052.

Meaning of “this act”. See note to § 14-169-101.

14-169-103. Appointment and meetings of commissioners.

Nothing contained in the Housing Authorities Act or the Supplemental Housing Authorities Act shall be construed to prevent meetings of the commissioners of a housing authority anywhere within the perimeter boundaries of the area of operation of the authority or within any additional area where the housing authority is authorized to undertake a housing project, or to prevent the appointment of any person as a commissioner of the authority who resides within such boundaries or additional area and who is otherwise eligible for appointment under these statutes.

History. Acts 1943, No. 280, § 10; A.S.A. 1947, § 19-3050.

14-169-104. Exercise of powers in areas not included in area of operation.

    1. In addition to its other powers, any housing authority created by or pursuant to the Housing Authorities Act or the Supplemental Housing Authorities Act may exercise any or all of its powers within the territorial boundaries of any municipality not included in the area of operation of the housing authority for the purpose of planning, undertaking, financing, constructing, and operating housing projects within the municipality, if a resolution shall have been adopted declaring that there is a need for the housing authority to exercise its powers within the municipality by:
      1. The governing body of the municipality in which the housing authority is to exercise its powers; and
      2. Any housing authority theretofore established by the municipality and authorized to exercise its powers in it.
    2. A municipality shall have the same powers to furnish financial and other assistance to the housing authority exercising its powers within the municipality under this section as though the municipality were within the area of operation of the authority.
      1. No governing body of a city or other municipality shall adopt a resolution under this section declaring that there is a need for a housing authority, other than a housing authority established by the municipality, to exercise its powers within the municipality, unless a public hearing has first been held by the governing body and unless the governing body shall have found, in substantially the following terms, that:
        1. Unsanitary or unsafe inhabited dwelling accommodations exist in the municipality or that there is a shortage of safe or sanitary dwelling accommodations in the municipality available to persons of low income at rentals they can afford; and
        2. These conditions can be best remedied through the exercise of the housing authority's powers within the territorial boundaries of the municipality.
      2. The findings shall not have the effect of establishing a housing authority for any municipality under § 14-169-207 nor of thereafter preventing the municipality from establishing a housing authority or joining in the creation of a consolidated housing authority or the increase of the area of operation of a consolidated housing authority.
      1. The clerk of the city or other municipality shall give notice of the time, place, and purpose of the public hearing at least ten (10) days prior to the date on which the hearing is to be held, in a newspaper published in the municipality. If there is no newspaper published in the municipality, then notice shall be published in a newspaper published in the state and having a general circulation in the municipality.
      2. Upon the date fixed for the public hearing, an opportunity to be heard shall be granted to all residents of the municipality and to all other interested persons.
  1. During the time that, pursuant to these findings, a housing authority has outstanding, or is under contract to issue, any evidences of indebtedness for a project within the city or other municipality, no other housing authority may undertake a project within the municipality without the consent of the housing authority which has the outstanding indebtedness or obligation.

History. Acts 1943, No. 280, § 9; A.S.A. 1947, § 19-3049.

14-169-105. Aid and cooperation by public bodies.

Any municipality, county, or other public body shall have the same rights and powers to aid and cooperate in the development or administration of any housing project of a housing authority established pursuant to the Supplemental Housing Authorities Act as such public body has, under any provisions of law, to aid or cooperate in the development or administration of housing projects of a housing authority established pursuant to the Housing Authorities Act.

History. Acts 1943, No. 280, § 12; A.S.A. 1947, § 19-3047.

14-169-106. Bonds as legal investments, etc.

The bonds and other obligations issued by any housing authority established pursuant to the Supplemental Housing Authorities Act shall be legal investments, security for public deposits, and negotiable to the same extent and for the same persons, institutions, associations, corporations, public and private bodies, and officers as bonds or other obligations issued by a housing authority established pursuant to the Housing Authorities Act.

History. Acts 1943, No. 280, § 13; A.S.A. 1947, § 19-3048.

14-169-107. Criminal background checks on applicants to public housing authorities — Definitions.

  1. Upon the request of a public housing authority, a municipal police department may perform a criminal background check on an adult applicant to the public housing authority. The municipal police department shall require the signature of the applicant on an acceptable form permitting the public housing authority to secure the required background check.
  2. The municipal police department shall not release the criminal background records of the applicant, but shall notify the public housing authority whether or not the applicant meets the occupancy policy requirements of the public housing authority.
  3. A municipal police department may perform the criminal background check at a cost of no more than fifteen dollars ($15.00) to the public housing authority.
  4. As used in this section:
    1. “Criminal background check” means retrievable data from the criminal information system of the Arkansas Crime Information Center;
    2. “Public housing authority” means a housing authority established under § 14-169-207, a regional housing authority established under § 14-169-304, or a consolidated housing authority established under § 14-169-401; and
    3. “Occupancy policy” means legal rules and regulations for a public housing authority which outline application and residency requirements.

History. Acts 1999, No. 1473, § 1.

Subchapter 2 — Housing Authorities in Cities and Counties

Effective Dates. Acts 1937, No. 298, § 31: approved Mar. 23, 1937. Emergency clause provided: “It is determined and declared that unemployment and the existence of unsafe, insanitary and congested dwelling accommodations have produced an alarming economic condition in the State and constitute an emergency and that it is necessary for the preservation of the public peace, health and safety that this act become effective without delay. This act, therefore, shall take effect and be in full force from and after its passage.”

Acts 1941, No. 352, § 13: approved Mar. 26, 1941. Emergency clause provided: “Inasmuch as there is no statutory provision for the creation and establishment of regional housing authorities to provide dwelling accommodations for persons of low income which are urgently needed by inhabitants of the State residing in unsafe and insanitary dwelling accommodations and there is no specific statutory provision authorizing county housing authorities and regional housing authorities to provide housing for farmers of low income, it is necessary for the immediate preservation of the public peace, health and safety that this act become effective without delay. This act, therefore, shall take effect and be in full force from and after its passage.”

Acts 1943, No. 77, § 5: approved Feb. 19, 1943. Emergency clause provided: “An emergency is hereby declared to exist and this act shall be in force and effect from and after its passage.”

Acts 1943, No. 280, § 17: approved Mar. 23, 1943. Emergency clause provided: “Inasmuch as there is no statutory provision for the creation and establishment of consolidated housing authorities by two or more municipalities nor other provisions contained in this act that are necessary to make housing authorities in this State more efficient and economical administrative units, it is necessary for the immediate preservation of the public peace, health and safety that this act become effective without delay. This act, therefore, shall take effect and be in full force from and after its passage.”

Acts 1961, No. 69, § 2: Feb. 9, 1961. Emergency clause provided: “Conditions of blight and deterioration in certain cities and towns of this State are such as to constitute hazards to the public peace, health and welfare. These conditions should be promptly corrected through the provisions of this Act. An emergency is therefore declared to exist and this Act shall become effective immediately upon its passage and approval.”

Acts 1970 (Ex. Sess.), No. 44, § 4: Mar. 13, 1970. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 1975, No. 225, § 26: became law without Governor's signature, Feb. 19, 1975. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 1977, No. 278, § 3: Feb. 28, 1977. Emergency clause provided: “It is hereby found and determined by the General Assembly that there is no established procedure for participation by the aggregate governing body of a municipality or county in the dismissal of housing commissioners; and that this has resulted in some arbitrary actions in the past. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1981, No. 425, § 54: Mar. 11, 1981. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 1988 (3rd Ex. Sess.), No. 3, § 3: Feb. 5, 1988. Emergency clause provided: “It has been found and it is hereby declared that Arkansas housing authorities are required to sell their revenue bonds at public sale (rather than negotiation), while other agencies of municipalities are not so required, that the issuance of revenue bonds by housing authorities is subject to the approval of the elected governing bodies of the respective municipalities and counties (following public notice), that the requirement of public sale is a cause of delay in the completion of necessary and urgent financings. Therefore, an emergency is hereby declared to exist and this Act, being necessary for the preservation of the public peace, health, and safety, shall be in full force and effect upon its passage and approval.”

Acts 1989, Nos. 504 and 630, § 4: approved Mar. 13, 1989 and Mar. 17, 1989, respectively. Emergency clause provided: “It is hereby found and determined by the General Assembly that confusion exists regarding whether the commissioners of a housing authority are to appoint their successors; that it has been the practice for 51 years that the commissioners appoint their successors and that was the intent of the General Assembly when it enacted the Housing Authorities Act; that in order to meet federal requirements the housing authorities must be autonomous bodies; that since housing authorities contract with local governments the local governments should not be appointing the members to the housing authorities; that this Act clarifies the law by specifically indicating that the commissioners of housing authorities designate their successors upon the expiration of their terms of office or when necessary to fill vacancies; and that this Act should be given effect immediately in order to clarify the law as soon as possible. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 2013, No. 1038, § 2: Jan. 1, 2014.

Research References

ALR.

Ordinance establishing rent control benefit or rent subsidy for elderly tenants. 5 A.L.R.4th 922.

Ark. L. Rev.

Comment, Municipal Bonds and Amendment 62: Clearing Up a Serbonian Bog, 39 Ark. L. Rev. 499.

Case Notes

Constitutionality.

—Delegation of Legislative Authority.

This subchapter is not unconstitutional for delegating legislative authority; the most it does is to delegate power to the agency or authority to determine facts conditioning the operation of the law. Hogue v. Housing Auth., 201 Ark. 263, 144 S.W.2d 49 (1940).

—Discrimination.

This subchapter is not discriminatory against private owners of dwelling accommodations and does not take their property for public purposes or uses without due process of law and without a just compensation therefor. Hogue v. Housing Auth., 201 Ark. 263, 144 S.W.2d 49 (1940).

Evidence that out of 76 parcels of land comprising proposed housing project white people owned 40 and negroes owned 36 and both white and negro families lived in the area and that housing authority proposed separate projects for negroes and whites was held not to show illegal discrimination against negroes on account of their race in violation of their constitutional rights. Denard v. Housing Auth., 203 Ark. 1050, 159 S.W.2d 764 (1942).

—Special Privileges.

This subchapter was held not unconstitutional for granting special privileges to certain citizens or class of citizens. Hogue v. Housing Auth., 201 Ark. 263, 144 S.W.2d 49 (1940).

Separability.

Invalid provisions of this subchapter may be stricken down without invalidating the whole subchapter. Hogue v. Housing Auth., 201 Ark. 263, 144 S.W.2d 49 (1940).

Cited: Housing Auth. v. Winston, 226 Ark. 1037, 295 S.W.2d 621 (1956); L.C. Eddy, Inc. v. City of Arkadelphia, 303 F.2d 473 (8th Cir. 1962); Housing Auth. v. Sparks, 234 Ark. 868, 355 S.W.2d 166 (1962); Arkansas La. Gas Co. v. City of Little Rock, 256 Ark. 112, 506 S.W.2d 555 (1974); Fulmer v. Holcomb, 261 Ark. 580, 550 S.W.2d 442 (1977); Confederated Hous. Assocs. v. Department of HUD, 538 F. Supp. 1158 (E.D. Ark. 1982); Clients' Council v. Pierce, 711 F.2d 1406 (8th Cir. 1983).

14-169-201. Title.

This subchapter may be referred to as the “Housing Authorities Act.”

History. Acts 1937, No. 298, § 1; Pope's Dig., § 10059; A.S.A. 1947, § 19-3001.

14-169-202. Legislative declarations.

It is declared that:

  1. There exist in the state insanitary or unsafe dwelling accommodations and that persons of low income are forced to reside in insanitary or unsafe accommodations; within the state there is a shortage of safe or sanitary dwelling accommodations available at rents which persons of low income can afford, and that those persons are forced to occupy overcrowded and congested dwelling accommodations; these conditions cause an increase in and spread of disease and crime and constitute a menace to the health, safety, morals, and welfare of the residents of the state and impair economic values; these conditions necessitate excessive and disproportionate expenditures of public funds for crime prevention and punishment, public health and safety, fire and accident protection, and other public services and facilities;
  2. Slum areas in the state cannot be cleared, nor can the shortage of safe and sanitary dwellings for persons of low income be relieved, through the operation of private enterprise, and that the construction of housing projects for persons of low income, as defined in § 14-169-203, would therefore not be competitive with private enterprise;
  3. The clearance, replanning, and reconstruction of the areas in which insanitary or unsafe housing conditions exist and the providing of safe and sanitary dwelling accommodations for persons of low income are exclusively public uses and purposes for which public money may be spent and private property acquired and are governmental functions of state concern;
  4. It is a proper public purpose for any state public body to aid, as provided in this subchapter, any housing authority operating within its boundaries or jurisdiction or any housing project located therein, as the state public body derives immediate benefits and advantages from such an authority or project;
  5. It is in the public interest that work on housing projects be commenced as soon as possible in order to relieve unemployment which constitutes an emergency; and
  6. The necessity in the public interest for the provisions enacted in this subchapter is declared as a matter of legislative determination.

History. Acts 1937, No. 298, § 2; Pope's Dig., § 10060; A.S.A. 1947, § 19-3002.

Case Notes

Constitutionality.

This subchapter was held not void for not limiting the location of its projects to slum areas. Hogue v. Housing Auth., 201 Ark. 263, 144 S.W.2d 49 (1940).

Purpose.

The primary purpose or intent of this subchapter is slum clearance by removing the evils existing therein and emanating therefrom which are a great detriment to the public welfare of citizens generally and in the attempted prevention of which private agencies cannot successfully cope. Hogue v. Housing Auth., 201 Ark. 263, 144 S.W.2d 49 (1940).

This subchapter creates a public agency for the performance of a public purpose, and insofar as it permits or requires the expenditure of public funds by the state or by municipalities, the expenditures are for public use in the promotion of proper governmental functions. Hogue v. Housing Auth., 201 Ark. 263, 144 S.W.2d 49 (1940).

Statewide Concern.

This section defines the concern of this subchapter as statewide rather than municipal, and thus is not governed by § 14-43-601 et seq.City of Ft. Smith v. Housing Auth., 256 Ark. 254, 506 S.W.2d 534 (1974).

Cited: Little Rock Sch. Dist. v. Pulaski County Special Sch. Dist. No. 1, 778 F.2d 404 (8th Cir. 1985).

14-169-203. Definitions.

As used in this subchapter, unless the context otherwise requires:

  1. “Authority” or “housing authority” means any of the public corporations created by § 14-169-207;
  2. “City” means any city of the first or second class or any incorporated town. “The city” means the particular city or town for which a particular housing authority is created;
  3. “County” means any county in the state. “The county” means the particular county for which a particular housing authority is created;
  4. “State public body” means any city, town, county, municipal corporation, commission, district, authority, other subdivision, or other public body of the state;
  5. “Governing body” means:
    1. In the case of a city, the city council or other legislative body thereof;
    2. In the case of a county, the county court or other legislative body thereof; and
    3. In the case of other state public bodies, the council, commissioners, board, or other body having charge of the fiscal affairs of the state public body;
  6. “Mayor” means the mayor of the city or the officer thereof charged with the duties customarily imposed on the mayor or executive head of the city;
  7. “Clerk” means the clerk of the city or the clerk of the county, as the case may be, or the officer of the city or the county, charged with the duties customarily imposed on the clerk;
  8. “Area of operation” means:
    1. In the case of a housing authority of a city having a population of less than ten thousand (10,000), the city and the area within five (5) miles of its territorial boundaries;
    2. In the case of a housing authority of a city having a population of ten thousand (10,000) or more, the city and the area within fifteen (15) miles of its territorial boundaries.
    3. In the case of a housing authority of a county, all of the county except that portion which lies within the territorial boundaries of any city as defined in this section;
  9. “Federal government” means the United States of America or any agency or instrumentality, corporate or otherwise, of the United States of America;
  10. “Slum” means any area where dwellings predominate which, by reason of dilapidation, overcrowding, faulty arrangement or design, lack of ventilation, light, or sanitary facilities, or any combination of these factors, are detrimental to safety, health, and morals;
    1. “Housing project” means any work or undertaking to:
      1. Demolish, clear, or remove buildings from any slum area. The work or undertaking may embrace the adaptation of the area to public purposes including parks or other recreational or community purposes;
      2. Provide decent, safe, and sanitary urban or rural dwellings, apartments, or other living accommodations for persons of low income. The work or undertaking may include buildings, land, equipment, facilities, and other real or personal property for necessary, convenient, or desirable appurtenances, streets, sewers, water service, parks, site preparation, gardening, administrative, community, health, recreational, educational, welfare, or other purposes; or
      3. Accomplish a combination of the foregoing.
    2. The term “housing project” also may be applied to:
      1. The planning of the buildings and improvements;
      2. The acquisition of property;
      3. The demolition of existing structures;
      4. The construction, reconstruction, alteration, and repair of the improvements; and
      5. All other work in connection therewith;
  11. “Persons of low income” means persons or families who lack the amount of income which is necessary, as determined by the authority undertaking the housing project, to enable them, without financial assistance, to live in decent, safe, and sanitary dwellings, without overcrowding;
  12. “Bonds” means any bonds, notes, interim certificates, debentures, or other obligations issued by an authority pursuant to this subchapter;
  13. “Real property” means all lands, including improvements and fixtures thereon, and property of any nature appurtenant thereto or used in connection therewith, and every estate, interest, and right, legal or equitable, therein, including terms for years and liens by way of judgment, mortgage, or otherwise, and the indebtedness secured by such liens;
  14. “Obligee of the authority” or “obligee” means any bondholder, trustee for any bondholder, or lessor demising to the authority property used in connection with a housing project, or any assignee of the lessor's interest or any part thereof, and the federal government when it is a party to any contract with the authority.

However, the area of operation of a housing authority of any city shall not include any area which lies within the territorial boundaries of some other city as defined in this section; and

History. Acts 1937, No. 298, § 3; Pope's Dig., § 10061; Acts 1961, No. 69, § 1; A.S.A. 1947, § 19-3003; Acts 1997, No. 981, § 1.

Amendments. The 1997 amendment substituted “within fifteen (15) miles” for “within ten (10) miles” in (8)(B).

Case Notes

Cited: Fagan Elec. Co. v. Housing Auth., 216 Ark. 932, 228 S.W.2d 39 (1950).

14-169-204. Provisions controlling.

Insofar as the provisions of this subchapter are inconsistent with the provisions of any other law, the provisions of this subchapter shall be controlling.

History. Acts 1937, No. 298, § 30; Pope's Dig., § 10088; A.S.A. 1947, § 19-3034.

14-169-205. Planning, etc., laws applicable.

  1. All housing projects of a housing authority shall be subject to the planning, zoning, sanitary, and building laws, ordinances, and regulations applicable to the locality in which the housing project is situated.
  2. In the planning and location of any housing project, an authority shall take into consideration the relationship of the project to any larger plan or long-range program for the development of the area in which the authority functions.

History. Acts 1937, No. 298, § 13; Pope's Dig., § 10071; A.S.A. 1947, § 19-3016.

Cross References. Building and zoning regulations, § 14-56-201.

Case Notes

Judicial Review.

The courts have the power to review the action of municipal authorities in the classification of property for zoning purposes and may set aside an unreasonable and arbitrary restriction imposed when the proposed use of the property will be beneficial and not harmful, to the surrounding property. City of Little Rock v. Joyner, 212 Ark. 508, 206 S.W.2d 446 (1947).

14-169-206. Validating provisions.

  1. The establishment and organization of housing authorities pursuant to the provisions of this subchapter, together with all proceedings, acts, and things heretofore undertaken, performed, or done with reference thereto, are validated, ratified, confirmed, approved, and declared legal in all respects, notwithstanding any defect or irregularity in them or any want of statutory authority.
  2. All contracts, agreements, obligations, and undertakings of housing authorities heretofore entered into relating to financing or aiding in the development, construction, maintenance, or operation of any housing projects or to obtaining aid for them from the United States, including without limiting the generality of the foregoing, loan and annual contributions contracts, leases with the United States, agreements with municipalities, counties, or other public bodies, including agreements which are pledged or authorized to be pledged for the protection of the holders of any notes or bonds issued by authorities or which are otherwise made a part of the contract with the holders of notes or bonds, relating to cooperation and contributions in aid of projects, payments, if any, in lieu of taxes, furnishing of services and facilities, and the elimination of unsafe and insanitary dwellings, and contracts for the construction of housing projects, together with all proceedings, acts, and things heretofore undertaken, performed, or done with reference to them, are validated, ratified, confirmed, approved, and declared legal in all respects, notwithstanding any defect or irregularity in them or any want of statutory authority.
  3. All proceedings, acts, and things heretofore undertaken, performed, or done in or for the authorization, issuance, sale, execution, and delivery of notes and bonds by housing authorities for the purpose of financing or aiding in the development or construction of housing projects, and all notes and bonds heretofore issued by authorities, are validated, ratified, confirmed, approved, and declared legal in all respects, notwithstanding any defect or irregularity in them or any want of statutory authority.

History. Acts 1941, No. 410, §§ 1-3; A.S.A. 1947, §§ 19-3035 — 19-3037.

14-169-207. Creation of authorities.

    1. In each city and in each county of the state there is created a public body corporate and politic to be known as the “housing authority” of the city or county.
      1. An authority shall not transact any business or exercise its powers under this subchapter until or unless the governing body of the city or the county, as the case may be, by proper resolution shall declare at any time that there is need for an authority to function in the city or county.
      2. The determination as to whether there is a need for an authority to function:
        1. May be made by the governing body on its own motion; or
        2. Shall be made by the governing body upon the filing of a petition signed by twenty-five (25) residents of the city or the county, as the case may be, asserting that there is need for an authority to function in the city or county and requesting that the governing body so declare.
    1. The governing body shall adopt a resolution declaring that there is need for a housing authority in the city or county, as the case may be, if it shall find that:
      1. Insanitary or unsafe inhabited dwelling accommodations exist in the city or county; or
      2. There is a shortage of safe or sanitary dwelling accommodations in the city or county available to persons of low income at rentals they can afford.
    2. In determining whether dwelling accommodations are unsafe or insanitary, the governing body may take into consideration:
      1. The degree of overcrowding;
      2. The percentage of land coverage;
      3. The light, air, space, and access available to the inhabitants of the dwelling accommodations;
      4. The size and arrangement of the rooms;
      5. The sanitary facilities; and
      6. The extent to which conditions exist in the buildings which endanger life or property by fire or other causes.
    1. In any suit, action, or proceeding involving the validity or enforcement of, or relating to, any contract of the authority, the authority shall be conclusively deemed to have become established and authorized to transact business and exercise its powers under this subchapter upon proof of the adoption of a resolution by the governing body declaring the need for the authority.
      1. A resolution shall be deemed sufficient if it declares that there is need for an authority and finds in substantially the foregoing terms, with no further detail being necessary, that either or both of the enumerated conditions exist in the city or county, as the case may be.
      2. A copy of the resolution, duly certified by the clerk, shall be admissible in evidence in any suit, action, or proceeding.
  1. A housing authority created under this section shall not transact any business in this state or exercise its powers under a fictitious name unless:
    1. It receives approval by its commissioners of the governing body of affairs of the state public body or, in the absence of commissioners, approval from the governing body of the city or county; and
      1. It files with the county clerk a notice for recording the fictitious name under which the applicant housing authority will transact business or exercise its powers and the name of the housing authority and location of its principal office.
      2. The notice to be provided to the county clerk shall contain:
        1. The fictitious name under which the business is being, or will be, conducted;
        2. The entity name of the applicant and the date of its housing authority resolution filed with the appropriate city or county in Arkansas;
        3. Whether the housing authority is a public body for a city or county;
        4. The county or city in which a copy of the housing authority resolution is filed; and
        5. The city and street address of the principal Arkansas office location of the applicant entity.
      3. The filing fee, if any, shall be the same as for any other fictitious name filed with the county clerk.

History. Acts 1937, No. 298, § 4; Pope's Dig., § 10062; A.S.A. 1947, § 19-3004; Acts 2011, No. 806, § 1; 2013, No. 1038, §§ 1, 2.

Amendments. The 2011 amendment added (d).

The 2013 amendment substituted “files with the county clerk a notice” for “files with the Secretary of State a form supplied or approved by the Secretary of State” in (d)(2)(A); and added (d)(2)(B).

Effective Dates. Acts 2013, No. 1038, § 2: Jan. 1, 2014.

Case Notes

Constitutionality.

This section is not unconstitutional as not serving public purposes. Kerr v. East Cent. Ark. Reg'l Housing Auth., 208 Ark. 625, 187 S.W.2d 189 (1945).

Agency.

Housing authorities created under this section are not agents of the local governing body. Arkansas La. Gas Co. v. City of Little Rock, 256 Ark. 112, 506 S.W.2d 555 (1974).

Dissolution.

The power to create a corporation is a legislative function and its dissolution is likewise primarily a legislative function; thus an initiative ordinance to dissolve a housing authority created under this section is authorized by Ark. Const. Amend. 7. Cochran v. Black, 240 Ark. 393, 400 S.W.2d 280 (1966).

Cited: Fagan Elec. Co. v. Housing Auth., 216 Ark. 932, 228 S.W.2d 39 (1950); Little Rock Sch. Dist. v. Pulaski County Special Sch. Dist. No. 1, 778 F.2d 404 (8th Cir. 1985).

14-169-208. Appointment, etc., of commissioners, employees.

    1. When the governing body of a city adopts a resolution as prescribed in § 14-169-207, it shall promptly notify the mayor of the adoption.
      1. Upon receiving the notice, the mayor shall appoint five (5) persons as commissioners of the housing authority created for the city.
      2. When the governing body of a county adopts a resolution as indicated, the governing body shall appoint five (5) persons as commissioners of the authority created for the county.
  1. No commissioner of an authority may be an officer or employee of the city or county for which the authority is created.
    1. The commissioners who are first appointed shall be designated to serve for terms of one (1), two (2), three (3), four (4), and five (5) years, respectively, from the date of their appointment.
      1. Thereafter, commissioners shall be appointed as prescribed for a term of office of five (5) years. However, all vacancies shall be filled for the unexpired term.
        1. When the term of office of a commissioner expires or other vacancy occurs in the commissioners of an authority, the commissioners shall appoint a successor to fill the vacancy, subject to confirmation by the municipal or county governing body.
        2. If the commissioners fail to appoint a successor within forty-five (45) calendar days from the date a commissioner's term expires or other vacancy occurs, the governing body shall appoint a successor.
        1. If the governing body fails to confirm or reject the commissioner's appointment within forty-five (45) calendar days after receiving written notice of the appointment, the appointment shall be deemed confirmed and the governing body shall have no power to act on the appointment thereafter.
        2. If the governing body rejects such appointment within forty-five (45) calendar days after receiving written notice of the appointment, the commissioners shall within thirty (30) calendar days after receiving written notice of such rejection appoint another person to fill the vacancy.
        3. If the commissioners fail to make the appointment within the thirty-day period, the governing body shall appoint a successor.
    2. A commissioner shall hold office until his successor has been appointed and has qualified.
    1. A certificate of the appointment or reappointment of any commissioner shall be filed with the clerk of the governing body.
    2. The certificate shall be conclusive evidence of the due and proper appointment of the commissioner.
  2. A commissioner may receive reasonable compensation for his services, not to exceed three hundred dollars ($300) per year. He shall be entitled to the necessary expenses, including traveling expenses, incurred in the discharge of his duties.
  3. The powers of each authority shall be vested in their commissioners in office from time to time.
    1. Three (3) commissioners shall constitute a quorum of the authority for the purpose of conducting its business and exercising its powers and for all other purposes.
    2. Action may be taken by the authority upon a vote of a majority of the commissioners present, except as provided in this subchapter and except as otherwise provided in the bylaws of the authority.
    1. The mayor, or in the case of an authority for a county, the governing body of the county, shall designate which of the commissioners appointed shall be the first chairman.
    2. When the office of the chairman of the authority thereafter becomes vacant, the authority shall select a chairman from among its commissioners.
    1. An authority shall select from among its commissioners a vice chairman. It may also employ a secretary, who shall be executive director, technical experts, and such other officers, agents, and employees, permanent and temporary, as it may require, and shall determine their qualifications, duties, and compensation.
    2. For such legal services as it may require, an authority may call upon the chief law officer of the city or the county or may employ its own counsel and legal staff.
    3. An authority may delegate to one (1) or more of its agents or employees such powers or duties as it may deem proper.

History. Acts 1937, No. 298, § 5; Pope's Dig., § 10063; Acts 1943, No. 77, §§ 1-3; 1981, No. 543, § 1; A.S.A. 1947, §§ 19-3005 — 19-3008; Acts 1989, No. 504, § 1; 1989, No. 630, § 1.

14-169-209. Commissioner or employee interest prohibited.

  1. No commissioner or employee of a housing authority shall acquire any interest, direct or indirect, in any housing project or in any property included or planned to be included in any project, nor shall he have any interest, direct or indirect, in any contract or proposed contract for materials or services to be furnished or used in connection with any housing project.
    1. If any commissioner or employee of an authority owns or controls an interest, direct or indirect, in any property included or planned to be included in any housing project, he immediately shall disclose it, in writing, to the authority. The disclosure shall be entered upon the minutes of the authority.
    2. Failure so to disclose an interest shall constitute misconduct in office.

History. Acts 1937, No. 298, § 6; Pope's Dig., § 10064; A.S.A. 1947, § 19-3009.

14-169-210. Removal of commissioners.

  1. A commissioner of a city or county housing authority may be removed from office for inefficiency or neglect of duty or misconduct in office only by the vote of the majority of the city council or county quorum court, as the case may be.
  2. Removal shall occur only after the commissioner has been given a copy of the charges, at least ten (10) days prior to the hearing on the charges, and the commissioner has had an opportunity to be heard in person or by counsel.
  3. In the event of the removal of any commissioner, a record of the proceedings, together with the charges and findings on them, shall be filed in the office of the clerk.

History. Acts 1937, No. 298, § 7; Pope's Dig., § 10065; Acts 1977, No. 278, § 1; A.S.A. 1947, § 19-3010.

Case Notes

Criteria.

A removal for inefficiency and neglect of duty must be for matters relating to and affecting the proper administration of the office and of a substantial nature affecting the rights of the public. Fulmer v. Holcomb, 261 Ark. 580, 550 S.W.2d 442 (1977).

Order of Removal.

Where there was a failure of proof on one of the specifications of an order for the removal of several housing authority commissioners, the order of removal had to be quashed, since such an order must be quashed if it does not specify the particular charges upon which the removal is based and there is any doubt about the sufficiency of the evidence to sustain any of the grounds charged. Fulmer v. Holcomb, 261 Ark. 580, 550 S.W.2d 442 (1977).

14-169-211. Powers of authority generally.

A housing authority shall constitute a public body corporate and politic, exercising exclusively public and essential governmental functions and having all the powers necessary or convenient to carry out and effectuate the purposes and provisions of this subchapter, including the following powers in addition to others granted in this subchapter:

  1. To sue and be sued;
  2. To have a seal and to alter the same at pleasure;
  3. To have perpetual succession;
  4. To make and execute contracts and other instruments necessary or convenient to the exercise of the powers of the authority; and
  5. To make and from time to time amend and repeal bylaws, rules, and regulations not inconsistent with this subchapter to carry into effect the powers and purposes of the authority;
  6. To invest any funds held in reserves or sinking funds, or any funds not required for immediate disbursement, in property or securities in which savings banks may legally invest funds subject to their control; and
  7. To purchase its bonds at a price not more than the principal amount thereof and accrued interest, all bonds so purchased to be cancelled;
  8. To exercise all or any part or combination of the powers granted in this section and §§ 14-169-212 — 14-169-218 and 14-169-225(b).

History. Acts 1937, No. 298, § 8; Pope's Dig., § 10066; Acts 1971, No. 294, § 2; A.S.A. 1947, § 19-3011.

Case Notes

Charitable Immunity.

Court of Appeals of Arkansas, Division Three, holds that nothing in the Housing Authorities Act, § 14-169-201 et seq., can be construed as extending the doctrine of charitable immunity to housing authorities, and it further notes that logic would be offended by a legal entity simultaneously having the power “to be sued” and yet be afforded the protection of charitable immunity. Villines v. Harrison Hous. Auth., 2018 Ark. App. 154, 540 S.W.3d 343 (2018).

Cited: Little Rock Sch. Dist. v. Pulaski County Special Sch. Dist. No. 1, 778 F.2d 404 (8th Cir. 1985).

14-169-212. Investigations, studies, etc.

A housing authority shall have the power, within its area of operation:

  1. To investigate into living, dwelling, and housing conditions and into the means and methods of improving these conditions;
  2. To determine where slum areas exist or where there is a shortage of decent, safe, and sanitary dwelling accommodations for persons of low income;
    1. To make studies and recommendations relating to the problem of clearing, replanning, and reconstructing of slum areas and the problem of providing dwelling accommodations for persons of low income; and
    2. To cooperate with the city, the county, and the state, or any political subdivision therof, in action taken in connection with these problems; and
  3. To engage in research, studies, and experimentation on the subject of housing.

History. Acts 1937, No. 298, § 8; Pope's Dig., § 10066; A.S.A. 1947, § 19-3011.

Case Notes

Cited: Little Rock Sch. Dist. v. Pulaski County Special Sch. Dist. No. 1, 778 F.2d 404 (8th Cir. 1985).

14-169-213. Examinations and investigations — Conduct, oaths, subpoenas, etc.

A housing authority shall have the power, acting through one (1) or more commissioners or other persons designated by the authority:

  1. To conduct examinations and investigations and to hear testimony and take proof under oath at public or private hearings on any matter material for its information;
  2. To administer oaths;
  3. To issue subpoenas requiring the attendance of witnesses or the production of books and papers; and
  4. To issue commissions for the examination of witnesses who are outside of this state or unable to attend before the authority or excused from attendance.

History. Acts 1937, No. 298, § 8; Pope's Dig., § 10066; A.S.A. 1947, § 19-3011.

Case Notes

Cited: Little Rock Sch. Dist. v. Pulaski County Special Sch. Dist. No. 1, 778 F.2d 404 (8th Cir. 1985).

14-169-214. Examinations and investigations — Findings and recommendations.

A housing authority shall have the power to make available to appropriate agencies, including those charged with the duty of abating or requiring the correction of nuisances or like conditions or of demolishing unsafe or insanitary structures within its area of operation, its findings and recommendations with regard to any building or property where conditions exist which are dangerous to the public health, morals, safety, or welfare.

History. Acts 1937, No. 298, § 8; Pope's Dig., § 10066; A.S.A. 1947, § 19-3011.

Case Notes

Cited: Little Rock Sch. Dist. v. Pulaski County Special Sch. Dist. No. 1, 778 F.2d 404 (8th Cir. 1985).

14-169-215. Powers of authority regarding property generally.

A housing authority shall have the power:

  1. To lease or rent any dwellings, houses, accommodations, lands, buildings, structures, or facilities embraced in any housing project and, subject to the limitations contained in this subchapter, to establish and revise the rents or charges for them;
  2. To own, hold, and improve real or personal property;
  3. To purchase, lease, obtain options upon, or acquire by gift, grant, bequest, devise, or otherwise any real or personal property or any interest in it;
  4. To acquire by the exercise of the power of eminent domain any real property;
  5. To sell, lease, exchange, transfer, assign, pledge, or dispose of any real or personal property or any interest in it; and
  6. To insure or provide for the insurance of any real or personal property or operations of the authority against any risks or hazards.

History. Acts 1937, No. 298, § 8; Pope's Dig., § 10066; A.S.A. 1947, § 19-3011.

Case Notes

Cited: Little Rock Sch. Dist. v. Pulaski County Special Sch. Dist. No. 1, 778 F.2d 404 (8th Cir. 1985).

14-169-216. Acquisition, operation, construction, etc., of housing projects.

  1. A housing authority shall have the power within its area of operation to prepare, carry out, acquire, lease, and operate housing projects, and to provide for the construction, reconstruction, improvement, alteration, or repair of any housing project or any part thereof.
  2. No provisions of law with respect to the acquisition, operation, or disposition of property by other public bodies shall be applicable to an authority unless the General Assembly shall specifically so state.

History. Acts 1937, No. 298, § 8; Pope's Dig., § 10066; A.S.A. 1947, § 19-3011.

Publisher's Notes. As to administration of national defense housing projects developed during World War II, see Acts 1941, No. 323; Acts 1943, No. 270.

Case Notes

Cited: Little Rock Sch. Dist. v. Pulaski County Special Sch. Dist. No. 1, 778 F.2d 404 (8th Cir. 1985).

14-169-217. Contracts for services, works, etc.

  1. A housing authority shall have the power to arrange or contract for the furnishing by any person or agency, public or private, of services, privileges, works or facilities for, or in connection with, a housing project or the occupants thereof.
  2. Notwithstanding anything to the contrary contained in this subchapter or in any other provision of law, a housing authority shall have the power to include, in any contract let in connection with a project, stipulations requiring that the contractor and any subcontractors comply with requirements as to minimum wages and maximum hours of labor and with any conditions which the federal government may have attached to its financial aid of the project.

History. Acts 1937, No. 298, § 8; Pope's Dig., § 10066; A.S.A. 1947, § 19-3011.

Case Notes

Bidding.

A housing authority is not governed by § 22-9-203 regarding bidding on contracts because it is not an agency of the state nor a local taxing unit. Fagan Elec. Co. v. Housing Auth., 216 Ark. 932, 228 S.W.2d 39 (1950).

Cited: Little Rock Sch. Dist. v. Pulaski County Special Sch. Dist. No. 1, 778 F.2d 404 (8th Cir. 1985).

14-169-218. Financing of project.

A housing authority shall have the power to:

  1. Purchase promissory notes, and the mortgages or trust deeds securing them, issued by any builder or developer engaged in constructing dwelling units to be sold or leased to the authority as part of any housing project;
  2. Make loans to any such builder or developer in order to aid in financing any housing project; and
  3. Issue its bonds for any such purpose.

History. Acts 1937, No. 298, § 8; Pope's Dig., § 10066; Acts 1971, No. 294, § 1; A.S.A. 1947, § 19-3011.

Case Notes

Cited: Little Rock Sch. Dist. v. Pulaski County Special Sch. Dist. No. 1, 778 F.2d 404 (8th Cir. 1985).

14-169-219. Power of eminent domain.

  1. A housing authority shall have the right to acquire by the exercise of the power of eminent domain any real property which it may deem necessary for its purposes under this subchapter after the adoption by it of a resolution declaring that the acquisition of the real property described in it is necessary for those purposes.
  2. An authority may exercise the power of eminent domain in the manner prescribed in §§ 18-15-1202 — 18-15-1207 for condemnation by railroad corporations in this state, or it may exercise the power of eminent domain in the manner provided by any other applicable statutory provisions for the exercise of the power of eminent domain.
  3. Property already devoted to a public use may be acquired in like manner. However, no real property belonging to the city, the county, the state, or any political subdivision thereof may be acquired without its consent.

History. Acts 1937, No. 298, § 12; Pope's Dig., § 10070; A.S.A. 1947, § 19-3015.

Publisher's Notes. Acts 1937, No. 298, § 12, is also codified as § 18-15-1504.

Cross References. Eminent domain by federal government for housing projects, § 18-15-1501 et seq.

Case Notes

Constitutionality.

This subchapter is not unconstitutional for empowering the authority to exercise eminent domain in acquiring property for public purposes with which to construct and operate housing project. Hogue v. Housing Auth., 201 Ark. 263, 144 S.W.2d 49 (1940).

Cited: L.C. Eddy, Inc. v. City of Arkadelphia, 303 F.2d 473 (8th Cir. 1962); Housing Auth. v. Rochelle, 249 Ark. 524, 459 S.W.2d 794 (1970).

14-169-220. Authority to issue bonds.

      1. A housing authority shall have power to issue bonds, from time to time, in its discretion, for any of its corporate purposes.
      2. An authority shall also have power to issue refunding bonds for the purpose of paying or retiring bonds previously issued by it.
      1. An authority may issue such types of bonds as it may determine, including bonds on which the principal and interest are payable:
        1. Exclusively from the income and revenues of the housing project financed from the proceeds of the bonds, or with such proceeds together with a grant from the federal government in aid of the project;
        2. Exclusively from the income and revenues of certain designated housing projects, whether or not they were financed in whole or in part with the proceeds of the bonds;
        3. From any funds received from the United States of America, or any agency thereof, pursuant to any act of Congress providing for grants or payments to housing authorities in connection with, or in anywise pertaining to, the achieving and maintaining of housing projects;
        4. From the funds set forth in subdivision (a)(2)(A)(iii) of this section together with any or all of the revenues set forth in subdivisions (a)(2)(A)(i) and (ii) of this section; or
        5. From its revenues generally.
      2. Bonds may be additionally secured by a pledge of any revenues or a mortgage of any housing project or other property of the authority.
    1. Neither the commissioners of an authority nor any person executing the bonds shall be liable personally on the bonds by reason of their issuance.
      1. The bonds and other obligations of an authority, which bonds and obligations shall so state on their face, shall not be a debt of the city, the county, or the state, or any political subdivision thereof. Neither the city, the county, the state, nor any political subdivision thereof shall be liable on them; nor, in any event, shall the bonds or obligations be payable out of any funds or properties other than those of the housing authority.
      2. The bonds shall not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction.

History. Acts 1937, No. 298, § 14; Pope's Dig., § 10072; Acts 1971, No. 294, § 3; A.S.A. 1947, § 19-3017.

Cross References. Community redevelopment financing, § 14-168-201 et seq.

Form of bonds, § 19-9-101.

Local Government Bond Act of 1985, § 14-164-301 et seq.

Research References

Ark. L. Rev.

Municipal Improvement Bonds in Arkansas, 8 Ark. L. Rev. 146.

Case Notes

Cited: L.C. Eddy, Inc. v. City of Arkadelphia, 303 F.2d 473 (8th Cir. 1962); Little Rock Sch. Dist. v. Pulaski County Special Sch. Dist. No. 1, 778 F.2d 404 (8th Cir. 1985).

14-169-221. Issuance of bonds.

    1. Bonds of a housing authority shall be authorized by its resolution upon a vote of at least three (3) commissioners.
    2. Bonds may be issued in one (1) or more series and shall bear such date or dates, mature at such time or times, bear interest at such rate or rates, be in such denomination or denominations, be in such form either coupon or registered, carry such conversion or registration privileges, have such rank or priority, be executed in such manner, be sold in such manner and on such terms, be payable in such medium of payment, at such place or places, and be subject to such terms of redemption, with or without premium, as the resolution, its trust indenture, or mortgage may provide.
  1. In case any of the commissioners or officers of the authority whose signatures appear on any bonds or coupons shall cease to be such commissioners or officers before the delivery of the bonds, their signatures shall, nevertheless, be valid and sufficient for all purposes, the same as if the commissioners or officers had remained in office until the delivery.
  2. Any provision of any law to the contrary notwithstanding, any bonds issued pursuant to this subchapter, subject to the provisions of this section with regard to registration, shall be fully negotiable.
  3. In any suit, action, or proceeding involving the validity or enforceability of any bond of an authority or the security therefor, any bond reciting, in substance, that it has been issued by the authority to aid in financing a housing project to provide dwelling accommodations for persons of low income shall be conclusively deemed to have been issued for a housing project of such character. The project shall be conclusively deemed to have been planned, located, and constructed in accordance with the purposes and provisions of this subchapter.

History. Acts 1937, No. 298, § 15; Pope's Dig., § 10073; Acts 1970 (Ex. Sess.), No. 44, § 1; 1971, No. 294, § 4; 1975, No. 225, § 15; 1981, No. 425, § 15; A.S.A. 1947, § 19-3018; Acts 1988 (3rd Ex. Sess.), No. 3, § 1.

14-169-222. Powers in issuing bonds or incurring obligations.

In connection with the issuance of bonds or the incurring of obligations under leases and in order to secure the payment of the bonds or obligations, a housing authority, in addition to its other powers, shall have power to:

  1. Pledge all or any part of its gross or net rents, fees, or revenues to which its right then exists or may thereafter come into existence;
  2. Mortgage all or any part of its real or personal property then owned or thereafter acquired;
    1. Covenant against pledging all or any part of its rents, fees, and revenues or against mortgaging all, or any part, of its real or personal property to which its right or title then exists or may thereafter come into existence, or against permitting or suffering any lien on such revenues or property;
    2. Covenant with respect to limitations on its right to sell, lease, or otherwise dispose of any housing project, or any part thereof; and
    3. Covenant as to what other or additional debts or obligations may be incurred by it;
    1. Covenant as to the bonds to be issued and as to the issuance of the bonds, in escrow or otherwise, and as to the use and disposition of the proceeds thereof;
    2. Provide for the replacement of lost, destroyed, or mutilated bonds;
    3. Covenant against extending the time for the payment of its bonds, or interest thereon; and
      1. Redeem the bonds;
      2. Covenant for their redemption; and
      3. Provide the terms and conditions of redemptions;
    1. Covenant, subject to the limitations contained in this subchapter, as to:
      1. The rents and fees to be charged in the operation of a housing project;
      2. The amount to be raised each year or other period of time by rents, fees, and other revenues; and
      3. The use and disposition to be made of them; and
      1. Create or authorize the creation of special funds for moneys held for construction or operating costs, debt service, reserves, or other purposes; and
      2. Covenant as to the use and disposition of the moneys held in these funds;
    1. Prescribe the procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated;
    2. The amount of bonds the holders of which must consent thereto; and
    3. The manner in which the consent may be given;
    1. Covenant as to the use of any, or all, of its real or personal property; and
    2. Covenant as to:
      1. The maintenance of its real and personal property;
      2. The replacement of its property;
      3. The insurance to be carried on its property; and
      4. The use and disposition of insurance moneys;
    1. Covenant as to the rights, liabilities, powers, and duties arising upon the breach by it of any covenant, condition, or obligation; and
    2. Covenant and prescribe as to:
      1. The events of default and terms and conditions upon which any, or all, of its bonds or obligations shall become, or may be declared due before maturity; and
      2. The terms and conditions upon which the declaration and its consequences may be waived;
    1. Vest in trustees or the holders of bonds, or any proportion of them, the right to enforce the payment of the bonds or any covenants securing or relating to the bonds;
    2. Vest in trustees the right, in the event of a default by the authority, to:
      1. Take possession and use, operate, and manage any housing project, or part thereof;
      2. Collect the rents and revenues arising from it; and
      3. Dispose of the moneys in accordance with the agreement of the authority with the trustees;
      1. Provide for the powers and duties of trustees; and
      2. Limit the liabilities of trustees; and
    3. Provide the terms and conditions upon which the trustees or the holders of bonds, or any proportion of them, may enforce any covenant or rights securing or relating to the bonds; and
    1. Exercise all, or any part or combination of, the powers granted in this section;
    2. Make covenants other than, and in addition to, the covenants expressly authorized in this section, of like or different character;
      1. Make such covenants and to do any and all such acts and things as may be necessary or convenient or desirable in order to secure its bonds; or
      2. In the absolute discretion of the authority, act to make the bonds more marketable, notwithstanding that such covenants, acts, or things may not be enumerated in this section.

History. Acts 1937, No. 298, § 16; Pope's Dig., § 10074; A.S.A. 1947, § 19-3019.

14-169-223. Bonds and obligations as legal investments.

    1. The state and all public officers, municipal corporations, political subdivisions, and public bodies; and all banks, bankers, trust companies, savings banks and institutions, building and loan associations, savings and loan associations, investment companies, and other persons carrying on a banking business; and all insurance companies, insurance associations, and other persons carrying on an insurance business; and all executors, administrators, guardians, trustees, and other fiduciaries may legally invest any sinking funds, moneys, or other funds belonging to them or within their control in any bonds or other obligations issued by a housing authority pursuant to this subchapter or issued by any public housing authority or agency in the United States, when the bonds or other obligations are secured by a pledge of annual contributions to be paid by the federal government, or any of its agencies.
    2. These bonds and other obligations shall be authorized security for all public deposits and shall be fully negotiable in this state.
  1. It is the purpose of this section to authorize any persons, firms, corporations, associations, political subdivisions, bodies, and officers, public or private, to use any funds owned or controlled by them, including, but not limited to, sinking, insurance, investment, retirement, compensation, pension, and trust funds, and funds held on deposit, for the purchase of any such bonds or other obligations and to declare that any such bonds or other obligations shall be authorized security for all public deposits and shall be fully negotiable in this state.
  2. Nothing contained in this section shall be construed as relieving any person, firm, or corporation from any duty of exercising reasonable care in selecting securities.

History. Acts 1937, No. 298, § 22; Pope's Dig., § 10080; Acts 1941, No. 352, § 2; A.S.A. 1947, § 19-3026.

14-169-224. Joining or cooperating by authorities.

  1. Any two (2) or more housing authorities created pursuant to this subchapter may join or cooperate with one another in the exercise, either jointly or otherwise, of any or all of their powers for the purpose of financing, including the issuance of bonds, notes, or other obligations and giving security therefor, planning, undertaking, owning, constructing, operating, or contracting with respect to housing projects located within the area of operation of any one (1) or more of the authorities.
  2. For such purpose, any authority may, by resolution, prescribe and authorize any other housing authority joining or cooperating with it to act on its behalf with respect to any or all of its powers.
  3. Any authorities joining or cooperating with one another may, by resolutions, appoint from among the commissioners of the authorities an executive committee with full power to act on behalf of the authorities with respect to any or all of their powers, as prescribed by resolutions of the authorities.

History. Acts 1937, No. 298, § 11; Pope's Dig., § 10069; Acts 1943, No. 280, § 1; A.S.A. 1947, § 19-3014.

14-169-225. Federal aid or cooperation.

    1. In addition to the powers conferred upon a housing authority by other provisions of this subchapter, the authority is empowered to:
      1. Borrow money or accept grants or other financial assistance from the federal government for, or in aid of, any housing project within its area of operation;
      2. Take over or lease or manage any housing project or undertaking constructed or owned by the federal government; and
      3. To these ends, comply with such conditions and enter into such mortgages, trust indentures, leases, or agreements as may be necessary, convenient, or desirable.
    2. It is the purpose and intent of this section to authorize every authority to do any and all things necessary or desirable to secure the financial aid or cooperation of the federal government in the undertaking, construction, maintenance, or operation of any housing project by an authority.
  1. A housing authority shall have the power to procure insurance or guarantees from the federal government of the payment of any debts, or parts thereof, whether or not incurred by the authority, secured by mortgages on any property included in any of its housing projects.

History. Acts 1937, No. 298, §§ 8, 20; Pope's Dig., §§ 10066, 10078; A.S.A. 1947, §§ 19-3011, 19-3023.

Case Notes

Cited: Little Rock Sch. Dist. v. Pulaski County Special Sch. Dist. No. 1, 778 F.2d 404 (8th Cir. 1985).

14-169-226. Agreement to sell project as security for federal obligations.

    1. In any contract or amendatory or superseding contract for a loan and annual contributions entered into between any housing authority and the federal government or any of its agencies, with respect to any housing project undertaken by the authority, the authority is authorized to make such covenants, including covenants with holders of obligations of the authority issued for purposes of the project involved. The authority may confer upon the federal government or any of its agencies such rights and remedies as the authority deems necessary to assure the fulfillment of the purposes for which the project was undertaken.
    2. In any such contract, the authority may, notwithstanding any other provisions of law, agree to sell and convey the project, including all lands appertaining to it, to which the contract relates to the federal government, or any agency thereof, upon the occurrence of such conditions, or upon such defaults on obligations for which any of the annual contributions provided in the contract are pledged, as may be prescribed in the contract, and at a price, which may include the assumption by the federal government, or any agency thereof, of the payment, when due, of the principal of, and interest on, outstanding obligations of the housing authority issued for purposes of the project involved, determined as prescribed and upon such other terms and conditions as are provided in the contract.
  1. Any authority is authorized to enter into such supplementary contracts and to execute such conveyances as may be necessary to carry out the provisions of this section.
  2. Notwithstanding any other provisions of law, any contracts, supplementary contracts, or any conveyances made or executed pursuant to the provisions of this section shall not be or constitute a mortgage within the meaning of, or for the purposes of, any of the laws of this state.

History. Acts 1943, No. 280, § 11; A.S.A. 1947, § 19-3024.

14-169-227. Aid and cooperation by state public bodies.

  1. For the purpose of aiding and cooperating in the planning, undertaking, construction, or operation of housing projects, including projects of the federal government, located within the area in which it is authorized to act, any state public body may, upon such terms, with or without consideration, as it may determine:
    1. Dedicate, sell, convey, or lease any of its property to a housing authority or the federal government;
    2. Cause parks, playgrounds, and recreational, community, educational, water, sewer, or drainage facilities, or any other works which it is otherwise empowered to undertake, to be furnished adjacent to, or in connection with, projects;
    3. Furnish, dedicate, close, pave, install, grade, regrade, plan, or replan streets, roads, roadways, alleys, sidewalks, or other works which it is otherwise empowered to undertake;
    4. Plan or replan, zone or rezone any part of the state public body and make exceptions from building regulations and ordinances. Any city or town also may change its map;
    5. Enter into agreements which may extend over any period, notwithstanding any provision or rule of law to the contrary, with an authority or the federal government respecting action to be taken by the state public body pursuant to any of the powers granted by this subchapter; and
    6. Do any and all things necessary or convenient to aid and cooperate in the planning, undertaking, construction, or operation of projects.
  2. With respect to any housing project which an authority has acquired or taken over from the federal government and which the authority by resolution has found and declared to have been constructed in a manner that will promote the public interest and afford necessary safety, sanitation, and other protection, no state public body shall require any changes to be made in the project or the manner of its construction or take any other action relating to the construction.
  3. In connection with any public improvements made by a state public body in exercising the powers granted in this section, the state public body may incur the entire expense of the improvements.
  4. Any law or statute to the contrary notwithstanding, any sale or conveyance to, or any lease or agreement with, an authority or the federal government may be made by a state public body pursuant to this section without appraisal, public notice, advertisement, or public bidding.

History. Acts 1937, No. 298, § 25; Pope's Dig., § 10083; A.S.A. 1947, § 19-3029.

14-169-228. Additional powers of public bodies to aid or cooperate.

For the purpose of aiding and cooperating in the planning, undertaking, construction, or operation of housing projects, including housing projects of the federal government, located within the area in which it is authorized to act, any state public body may, in addition to other powers conferred on them by this subchapter or any other law, upon such terms, with or without consideration, as it may determine:

  1. Grant easements, licenses, or any other rights or privileges to a housing authority;
  2. Cause services to be furnished to an authority of the character which the state public body is otherwise empowered to furnish;
  3. Enter into agreements with respect to the exercise by the state public body of its powers relating to the repair, demolition, or closing of unsafe, insanitary, or unfit dwellings; and
  4. Employ, notwithstanding the provisions of any other law, any funds belonging to, or within the control of, the state public body, including funds derived from the sale or furnishing of property or facilities to an authority, in the purchase of the bonds or other obligations of an authority, and exercise all the rights of any holder of any such bonds or other obligations.

History. Acts 1941, No. 352, § 3; A.S.A. 1947, § 19-3030.

14-169-229. Public appropriations and loans.

    1. When any housing authority which is created for any city or county becomes authorized to transact business and exercise its powers in it, the governing body of the city or county, as the case may be, shall immediately make an estimate of the amount of money necessary for the administrative expenses and overhead of the authority during the first year. The governing body shall appropriate that amount to the authority out of any moneys in the treasury of the city or county not appropriated to some other purpose.
    2. The moneys so appropriated shall be paid to the authority as a donation.
    1. Any city, town, or county located, in whole or in part, within the area of operation of a housing authority shall have the power from time to time to lend or donate money to the authority or agree to take such action.
    2. The authority, when it has money available, shall make reimbursements for all such loans made to it by way of loans.

History. Acts 1937, No. 298, § 26; Pope's Dig., § 10084; A.S.A. 1947, § 19-3031.

Case Notes

Constitutionality.

Provision for payment by city of estimated administrative expenses of the authority for its first year does not render this subchapter unconstitutional. Hogue v. Housing Auth., 201 Ark. 263, 144 S.W.2d 49 (1940).

In General.

This subchapter does not authorize an unconstitutional loan or use of municipal credit, nor a misuse of public funds by municipalities. Hogue v. Housing Auth., 201 Ark. 263, 144 S.W.2d 49 (1940).

Approval.

As this section provides for the appropriation of public funds a initiative ordinance to erase the possibility of city funds being appropriated is one of the acts which Ark. Const. Amend. 7 specifically reserves to the people to approve or disapprove. Cochran v. Black, 240 Ark. 393, 400 S.W.2d 280 (1966).

14-169-230. Authority to exercise powers.

    1. The exercise by a state public body of the powers granted in this subchapter may be authorized by resolution of the governing body of the state public body adopted by a majority of the members present at a meeting of the governing body.
    2. The resolution may be adopted at the meeting at which it is introduced.
  1. The resolution shall take effect immediately upon passage and need not thereafter be laid over, published, or posted.

History. Acts 1937, No. 298, § 27; Pope's Dig., § 10085; A.S.A. 1947, § 19-3032.

14-169-231. Contracts for services furnished by public body.

  1. In connection with any housing project located within the area in which it is authorized to act, any state public body may contract with a housing authority or the federal government with respect to the sums, if any, which the housing authority or federal government may agree to pay, during any year or period of years, to the state public body for the improvements, services, and facilities to be furnished by it for the benefit of the project. However, in no event shall the amount of the payments exceed the estimated cost to the state public body of the improvements, services, or facilities to be furnished.
  2. The absence of a contract for the payments shall in no way relieve any state public body from the duty to furnish, for the benefit of the project, customary improvements and such services and facilities as the state public body furnishes customarily without a service fee.

History. Acts 1937, No. 298, § 24; Pope's Dig., § 10082; A.S.A. 1947, § 19-3028.

14-169-232. Statutory remedies of obligee.

An obligee of a housing authority shall have the right, in addition to all other rights which may be conferred on the obligee, subject only to any contractual restrictions binding upon the obligee:

  1. By mandamus, suit, action, or proceeding, at law or in equity, to compel the authority and its commissioners, officers, agents, or employees to:
    1. Perform each and every term, provision, and covenant contained in any contract of the authority with or for the benefit of the obligee; and
    2. Require the carrying out of any or all covenants and agreements of the authority and the fulfillment of all duties imposed upon the authority by this subchapter; and
  2. By suit, action, or proceeding in equity, to enjoin any acts or things which may be unlawful or the violation of any of the rights of the obligee of the authority.

History. Acts 1937, No. 298, § 17; Pope's Dig., § 10075; A.S.A. 1947, § 19-3020.

14-169-233. Additional remedies conferrable on obligees.

A housing authority shall have power, by its resolution, trust indenture, mortgage, lease, or other contract, to confer upon any obligee holding or representing a specified amount in bonds or holding a lease the right, in addition to all rights that may otherwise be conferred, upon the happening of an event of default as defined in the resolution or instrument, by suit, action, or proceeding in any court of competent jurisdiction to:

  1. Cause possession of any housing project, or any part of it, to be surrendered to any such obligee;
    1. Obtain the appointment of a receiver of any housing project of the authority, or any part of it, and of the rents and profits from it.
    2. If a receiver is appointed, he may:
      1. Enter and take possession of the housing project or any part of it;
      2. Operate and maintain the project; and
      3. Collect and receive all fees, rents, revenues, or other charges thereafter arising from the project.
    3. The receiver shall keep the moneys in a separate account or accounts and apply them in accordance with the obligations of the authority, as the court shall direct; and
  2. Require the authority and its commissioners to account as if it and they were the trustees of an express trust.

History. Acts 1937, No. 298, § 18; Pope's Dig., § 10076; A.S.A. 1947, § 19-3021.

14-169-234. Exemption of property from execution.

  1. All real property of a housing authority shall be exempt from levy and sale by virtue of an execution, and no execution or other judicial process shall issue against it, nor shall any judgment against the authority be a charge or lien upon its real property.
  2. The provisions of this section shall not apply to or limit the right of obligees to foreclose or otherwise enforce any mortgage of any authority or the right of obligees to pursue any remedies for the enforcement of any pledge or lien given by an authority on its rents, fees, or revenues.

History. Acts 1937, No. 298, § 19; Pope's Dig., § 10077; A.S.A. 1947, § 19-3022.

Case Notes

Lien on Purchased Property.

A local housing authority's purchase of a project upon which a lien exists does not destroy that lien because the project is municipally owned; it would be unjust to permit a municipality, by purchasing private property which is subject to claims for mechanic's lien rights, to defeat those liens simply because the property has been acquired for municipal purposes. Rawick Mfg. Co. v. Talisman, Inc., 17 Ark. App. 202, 706 S.W.2d 194 (1986).

14-169-235. Tax exemption of certain property.

  1. The property of a housing authority used exclusively for public purposes and not for profit is declared to be public property, and this property and the authority shall be exempt from all taxes and special assessments from the state or any state public body.
  2. Any property of an authority used for commercial, business, or industrial purposes shall be assessed and ad valorem taxes paid on it in the manner provided by law for the assessment and payment of taxes on other property, and the authority shall furnish the assessor with a certified statement, in writing, of the value at which the property was originally acquired to assist the assessor in arriving at the assessable value of it as provided by law.
  3. An authority may agree to make payments in lieu of taxes to a state public body for the benefit of a public housing project. However, in no event shall such payments exceed the estimated cost to the state public body of the improvements, services, or facilities to be so furnished.

History. Acts 1937, No. 298, § 23; Pope's Dig., § 10081; Acts 1969, No. 258, § 1; 1973, No. 193, § 1; A.S.A. 1947, § 19-3027.

Research References

Ark. L. Rev.

Property Tax Exemptions in Arkansas, 4 Ark. L. Rev. 433.

14-169-236. Fixing of rental rates.

  1. It is declared to be the policy of this state that each housing authority shall manage and operate its housing projects in an efficient manner so as to enable it to fix the rentals for dwelling accommodations at the lowest possible rates consistent with its providing decent, safe, and sanitary dwelling accommodations and that no housing authority shall construct or operate any project for profit or as a source of revenue to the city or the county.
  2. To this end, an authority shall fix the rentals for dwellings in its projects at no higher rates than it shall find to be necessary in order to produce revenues which, together with all other available moneys, revenues, income, and receipts of the authority from whatever sources derived, will be sufficient to:
    1. Pay, as they become due, the principal and interest on the bonds of the authority;
    2. Meet the cost of, and to provide for, maintaining and operating the projects, including the cost of any insurance, and the administrative expenses of the authority; and
    3. Create, during not less than the six (6) years immediately succeeding its issuance of any bonds, a reserve sufficient to meet the largest principal and interest payments which will be due on the bonds in any one (1) year thereafter, and maintain the reserve.

History. Acts 1937, No. 298, § 9; Pope's Dig., § 10067; A.S.A. 1947, § 19-3012.

14-169-237. Rentals and tenant selection.

In the operation or management of housing projects, a housing authority shall at all times observe the following duties with respect to rentals and tenant selection:

  1. It may rent or lease the dwelling accommodations in them only to persons of low income;
  2. It may rent or lease the dwelling accommodations in them only at rentals within the financial reach of persons of low income;
  3. It may rent or lease to a tenant dwelling accommodations consisting of the number of rooms, but no greater number, which it deems necessary to provide safe and sanitary accommodations to the proposed occupants without overcrowding;
    1. It shall not accept any person as a tenant in any housing project if the persons who would occupy the dwelling accommodations have an annual income in excess of five (5) times the annual rental of the quarters to be furnished the persons. However, in the case of families with three (3) or more minor dependents, the ratio shall not exceed six (6) to one (1).
    2. In computing the rental for the purpose of selecting tenants, there shall be included in the rental the average annual cost to the occupants, as determined by the authority, of heat, water, electricity, gas, cooking range, and other necessary services or facilities, whether or not the charge for those services and facilities is in fact included in the rental.

History. Acts 1937, No. 298, § 10; Pope's Dig., § 10068; Acts 1941, No. 352, § 1; A.S.A. 1947, § 19-3013.

14-169-238. Right to possession, etc.

Nothing contained in § 14-169-236 or § 14-169-237 shall be construed as limiting the power of a housing authority to vest in an obligee the right, in the event of a default by the authority, to take possession of a housing project, or cause the appointment of a receiver of it, or acquire title to it, free from all the restrictions imposed by those statutes.

History. Acts 1937, No. 298, § 10; Pope's Dig., § 10068; Acts 1941, No. 352, § 1; A.S.A. 1947, § 19-3013.

14-169-239. Security for funds deposited.

  1. A housing authority, by resolution, may provide that all moneys deposited by it shall be secured by:
    1. Obligations of the United States or of the state, of a market value equal at all times to the amount of the deposits; or
    2. Any securities in which savings banks may legally invest funds within their control; or
    3. An undertaking, with such sureties as shall be approved by the authority, faithfully to keep and pay over upon the order of the authority any such deposits and agreed interest on them.
  2. All banks and trust companies are authorized to give any such security for the deposits.

History. Acts 1937, No. 298, § 21; Pope's Dig., § 10079; A.S.A. 1947, § 19-3025.

14-169-240. Reports and recommendations.

At least once a year, a housing authority shall file with the clerk a report of its activities for the preceding year and shall make recommendations with reference to such additional legislation or other action as it deems necessary in order to carry out the purposes of this subchapter.

History. Acts 1937, No. 298, § 28; Pope's Dig., § 10086; A.S.A. 1947, § 19-3033.

Case Notes

Cited: Fulmer v. Holcomb, 261 Ark. 580, 550 S.W.2d 442 (1977).

Subchapter 3 — Regional Housing Authorities

Effective Dates. Acts 1941, No. 352, § 13: approved Mar. 26, 1941. Emergency clause provided: “Inasmuch as there is no statutory provision for the creation and establishment of regional housing authorities to provide dwelling accommodations for persons of low income which are urgently needed by inhabitants of the State residing in unsafe and insanitary dwelling accommodations and there is no specific statutory provision authorizing county housing authorities and regional housing authorities to provide housing for farmers of low income, it is necessary for the immediate preservation of the public peace, health and safety that this act become effective without delay. This act, therefore, shall take effect and be in full force from and after its passage.”

Acts 1943, No. 280, § 17: approved Mar. 23, 1943. Emergency clause provided: “Inasmuch as there is no statutory provision for the creation and establishment of consolidated housing authorities by two or more municipalities nor other provisions contained in this act that are necessary to make housing authorities in this State more efficient and economical administrative units, it is necessary for the immediate preservation of the public peace, health and safety that this act become effective without delay. This act, therefore, shall take effect and be in full force from and after its passage.”

Acts 1949, No. 340, § 3: Mar. 21, 1949. Emergency clause provided: “Whereas, in certain regional housing authorities in this State there has been construction in only one county thereof, and

“Whereas, the further participation of such county in the area of operation of such regional housing authority is unduly burdensome and uneconomical, which condition would be immediately corrected under the terms of this Act,

“Now therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and safety, shall take effect and be in full force from and after its passage and approval.”

14-169-301. Provisions controlling.

Insofar as the provisions of this act are inconsistent with the provisions of any other law, the provisions of this act shall be controlling.

History. Acts 1941, No. 352, § 11; A.S.A. 1947, § 19-3045n.

Meaning of “this act”. Acts 1941, No. 352, codified as §§ 14-169-223, 14-169-228, 14-169-237, 14-169-238, 14-169-30114-169-313, 14-169-50114-169-503.

14-169-302. Functions, etc., of authority generally.

Except as otherwise provided in this act, a regional housing authority and its commissioners shall have within the area of operation of the regional housing authority the same functions, rights, powers, duties, privileges, immunities, and limitations provided for housing authorities created for cities of the first class or counties and the commissioners of those housing authorities in the same manner as though all the provisions of law applicable to housing authorities created for cities of the first class or counties were applicable to regional housing authorities.

History. Acts 1941, No. 352, § 6; A.S.A. 1947, § 19-3044.

Meaning of “this act”. See note to § 14-169-301.

14-169-303. Powers supplemental.

The powers conferred by this act shall be in addition and supplemental to the powers conferred by any other law.

History. Acts 1941, No. 352, § 10; A.S.A. 1947, § 19-3045.

Meaning of “this act”. See note to § 14-169-301.

14-169-304. Creation generally.

    1. If the governing body of each of two (2) or more contiguous counties, by resolution, declares that there is a need for one (1) housing authority to be created for all of the contiguous counties to exercise in those counties powers and other functions prescribed for a regional housing authority, then a public body corporate and politic to be known as a regional housing authority shall thereupon exist for all of the counties and exercise its powers and other functions in the counties.
    2. Thereupon each county housing authority created for each of these counties shall cease to exist except for the purpose of winding up its affairs and executing a deed to the regional housing authority as provided in this section.
  1. The governing body of each of two (2) or more contiguous counties shall, by resolution, declare that there is a need for one (1) regional housing authority to be created for all of the counties to exercise in those counties the powers and other functions prescribed for a regional housing authority only if the governing body finds that:
    1. Unsanitary or unsafe inhabited dwelling accommodations exist in the county or there is a shortage of safe or sanitary dwelling accommodations in the county available to persons of low income at rentals they can afford; and
    2. A regional housing authority would be a more efficient or economical administrative unit than the housing authority of the county.
  2. The governing body of a county shall not adopt a resolution as prescribed in this section if there is a county housing authority created for the county which has any bonds or notes outstanding unless:
    1. All holders of the bonds and notes consent, in writing, to the substitution of the regional housing authority in lieu of the county housing authority on all such bonds and notes; and
    2. The commissioners of the county housing authority adopt a resolution consenting to the transfer of all the rights, contracts, obligations, and property, real and personal, of the county housing authority to the regional housing authority as provided in this section.
  3. When the conditions of subsection (b) of this section are complied with and the regional housing authority is created and authorized to exercise its powers and other functions:
    1. All rights, contracts, agreements, obligations, and real and personal property of the county housing authority shall be in the name of, and vest in, the regional housing authority;
    2. All obligations of the county housing authority shall be the obligations of the regional housing authority; and
    3. All rights and remedies of any person against the county housing authority may be asserted, enforced, and prosecuted against the regional housing authority to the same extent as they might have been asserted, enforced, and prosecuted against the county housing authority.

History. Acts 1941, No. 352, § 4; 1943, No. 280, § 2; A.S.A. 1947, § 19-3038.

Case Notes

Conveyances Subject to Repurchase.

Where authority developed parcels of land conveyed to authority subject to right of repurchase by former landowner, the amount of repurchase would be not less than the average balance due on each parcel of land. East Cent. Ark. Regional Hous. Auth. v. Moore, 219 Ark. 932, 246 S.W.2d 115 (1951).

14-169-305. Creation — Deed from county to regional authority.

  1. When any real property of a county housing authority vests in a regional housing authority, as provided in this section, the county housing authority shall execute a deed of such property to the regional housing authority, which thereupon shall file the deed in the office provided for in the filing of deeds.
  2. However, nothing contained in this section shall affect the vesting of property in the regional housing authority as provided in § 14-169-304.

History. Acts 1941, No. 352, § 4; 1943, No. 280, § 2; A.S.A. 1947, § 19-3038.

14-169-306. Creation — Proof of validity.

  1. In any suit, action, or proceeding involving the validity or enforcement of, or relating to, any contract of the regional housing authority, the authority shall be conclusively deemed to have become created as a public body corporate and politic and to have become established and authorized to transact business and exercise its powers under this subchapter upon proof of the adoption of a resolution by the governing body of each of the counties creating the regional housing authority declaring the need for the regional housing authority.
  2. Each such resolution shall be deemed sufficient if it declares that there is need for the regional housing authority and finds in substantially the foregoing terms, no further detail being necessary, that the conditions enumerated in § 14-169-304(b)(1) and (2) exist.
  3. A copy of the resolution of the governing body of a county, duly certified by the clerk of the county, shall be admissible in evidence in any suit, action, or proceeding.

History. Acts 1941, No. 352, § 4; 1943, No. 280, § 2; A.S.A. 1947, § 19-3038.

14-169-307. Applicability of housing authorities law.

Except as otherwise provided in this subchapter, all the provisions of law applicable to housing authorities created for counties and the commissioners of these authorities shall be applicable to regional housing authorities and their commissioners, unless a different meaning clearly appears from the context.

History. Acts 1941, No. 352, § 4; 1943, No. 280, § 2; A.S.A. 1947, § 19-3038.

14-169-308. Commissioners generally.

  1. The governing body of each county included in a regional housing authority shall appoint one (1) person as a commissioner of the authority.
  2. Each commissioner to be first appointed by the governing body of a county may be appointed at or after the time of the adoption of the resolution declaring the need for a regional housing authority or declaring the need for the inclusion of the county in the area of operation of the regional housing authority.
    1. The commissioners of a regional housing authority shall be appointed for terms of five (5) years. However, all vacancies shall be filled for the unexpired terms.
    2. When the term of office of a commissioner expires or any other vacancy occurs in the commission, the vacancy shall be filled in the same manner as provided for commissioners of housing authorities under § 14-169-208.
    3. Each commissioner shall hold office until his successor has been appointed and has qualified, except as otherwise provided in this section.
    1. A certificate of the appointment of any commissioner shall be filed with the clerk of the county.
    2. The certificate shall be conclusive evidence of the due and proper appointment of the commissioner.
  3. If any county is excluded from the area of operation of a regional housing authority, the office of the commissioner of the regional housing authority appointed by the governing body of the county shall be abolished.

History. Acts 1941, No. 352, § 5; 1943, No. 280, § 3; A.S.A. 1947, § 19-3039; Acts 1993, No. 539, § 1.

Amendments. The 1993 amendment rewrote (c)(2).

14-169-309. Additional commissioners.

    1. When the area of operation of a regional housing authority is increased to include an additional county as provided in § 14-169-304, the governing body of each county shall thereupon appoint one (1) additional person as a commissioner of the regional housing authority.
    2. If the area of operation of a regional housing authority consists at any time of an even number of counties, the commissioners of the regional housing authority appointed by the governing bodies of the counties shall appoint one (1) additional commissioner, whose term of office shall be as provided in this section for a commissioner of a regional housing authority except that such term shall end at any earlier time that the area of operation of the regional housing authority shall be changed to consist of an odd number of counties.
    1. The term of office of such person begins during the terms of office of the commissioners appointing him.
    2. The commissioners of the authority appointed by the governing bodies of the counties shall likewise appoint each person to succeed the additional commissioners.
  1. A certificate of the appointment of any additional commissioner of the regional housing authority shall be filed with the other records of the regional housing authority and shall be conclusive evidence of the due and proper appointment of the additional commissioner.

History. Acts 1941, No. 352, § 5; 1943, No. 280, § 3; A.S.A. 1947, § 19-3039.

14-169-310. Commissioners — Removal.

  1. For inefficiency or neglect of duty or misconduct in office, a commissioner of a regional housing authority may be removed by the governing body appointing him or, in the case of the commissioner appointed by the commissioners of the regional housing authority, by such commissioners.
  2. A commissioner shall be removed only after he shall have been given a copy of the charges against him at least ten (10) days prior to the hearing on them and if the commissioner shall have had an opportunity to be heard in person or by counsel.
    1. In the event of the removal of a commissioner by the governing body appointing him, a record of the proceedings, together with the charges and findings on them, shall be filed in the office of the clerk of the county.
    2. In the case of the removal of the commissioner appointed by the commissioners of the regional housing authority, the record shall be filed with the other records of the regional housing authority.

History. Acts 1941, No. 352, § 5; 1943, No. 280, § 3; A.S.A. 1947, § 19-3039.

14-169-311. Commissioners — Quorum.

A majority of the commissioners of a regional housing authority shall constitute a quorum of the authority for the purpose of conducting its business and exercising its powers and for all other purposes.

History. Acts 1941, No. 352, § 5; 1943, No. 280, § 3; A.S.A. 1947, § 19-3039.

14-169-312. Commissioners — Power and authority.

The commissioners shall constitute the regional housing authority, and the powers of the authority shall be vested in the commissioners in office from time to time.

History. Acts 1941, No. 352, § 5; 1943, No. 280, § 3; A.S.A. 1947, § 19-3039.

14-169-313. Chairman, officers, and employees of authority.

The commissioners of a regional housing authority shall elect a chairman from among the commissioners and shall have power to select or employ such other officers and employees as the regional housing authority may require.

History. Acts 1941, No. 352, § 5; 1943, No. 280, § 3; A.S.A. 1947, § 19-3039.

14-169-314. Area of operation.

  1. Except as otherwise provided in this subchapter, the area of operation of a regional housing authority shall include all of the counties for which the authority is created and established except that portion of the counties which lies within the territorial boundaries of any city of the first class.
  2. The governing body of each of the counties in the regional housing authority, the commissioners of the regional housing authority, and the governing body of each additional county shall, by resolution, declare that there is a need for the inclusion of the county in the area of operation of the regional housing authority only if:
    1. The governing body of each additional county finds that unsanitary or unsafe inhabited dwelling accommodations exist in the county or there is a shortage of safe or sanitary dwelling accommodations in the county available to persons of low income at rentals they can afford; and
    2. The governing body of each of the counties then included in the area of operation of the regional housing authority, the commissioners of the regional housing authority, and the governing body of each additional county finds that the regional housing authority would be a more efficient or economical administrative unit if the area of operation of the regional housing authority is increased to include the additional county.

History. Acts 1943, No. 280, § 4; A.S.A. 1947, § 19-3040.

14-169-315. Increase of area.

  1. The area of operation of a regional housing authority may be increased from time to time to include one (1) or more additional contiguous counties not already within a regional housing authority if the governing body of each of the counties then included in the area of operation of the regional housing authority, the commissioners of the regional housing authority, and the governing body of each additional county each adopt a resolution declaring that there is a need for the inclusion of the additional county in the area of operation of the regional housing authority.
  2. Upon the adoption of these resolutions, the county housing authority created for each additional county shall cease to exist except for the purpose of winding up its affairs and executing a deed to the regional housing authority as provided in this section.
  3. The resolution shall not be adopted if there is a county housing authority created for any additional county which has any bonds or notes outstanding unless:
    1. All holders of the bonds and notes consent, in writing, to the substitution of the regional housing authority in lieu of the county housing authority as the obligor on them; and
    2. The commissioners of the county housing authority adopt a resolution consenting to the transfer of all the rights, contracts, obligations, and real and personal property of the county housing authority to the regional housing authority as provided in this section.
  4. When the conditions of subsection (c) of this section are complied with and the area of operation of the regional housing authority is increased to include the additional county, as provided in this section:
    1. All rights, contracts, agreements, obligations, and real and personal property of the county housing authority shall be in the name of and vest in the regional housing authority;
    2. All obligations of the county housing authority shall be the obligations of the regional housing authority; and
    3. All rights and remedies of any person against the county housing authority may be asserted, enforced, and prosecuted against the regional housing authority to the same extent as they might have been asserted, enforced, and prosecuted against the county housing authority.

History. Acts 1943, No. 280, § 4; A.S.A. 1947, § 19-3040.

14-169-316. Increase of area — Deed from county to regional authority.

When any real property of a county housing authority vests in a regional housing authority as provided in §§ 14-169-314 and 14-169-315, the county housing authority shall execute a deed of the property to the regional housing authority, which thereupon shall file the deed in the office provided for the filing of deeds. However, nothing contained in this section shall affect the vesting of property in the regional housing authority as provided in §§ 14-169-314 and 14-169-315.

History. Acts 1943, No. 280, § 4; A.S.A. 1947, § 19-3040.

14-169-317. Decreasing operational area — Detachment of counties.

    1. The area of operation of a regional housing authority shall be decreased from time to time to exclude one (1) or more counties from the area if the governing body of each of the counties in the area and the commissioners of the regional housing authority each adopt a resolution declaring that there is a need for excluding a county from the area. However, no action may be taken pursuant to this section if the regional housing authority has outstanding any bonds or notes unless all holders of the bonds and notes consent, in writing, to the action.
      1. If such action decreases the area of operation of the regional housing authority to only one (1) county, the authority shall thereupon constitute and become a housing authority for the county, in the same manner, and with the same rights, powers, and immunities, as though the authority were created by and authorized to transact business and exercise its powers pursuant to § 14-169-207.
      2. The commissioners of such authority shall be thereupon appointed as provided in § 14-169-208 for the appointment of commissioners of a housing authority created for a county.
  1. The governing body of each of the counties in the area of operation of the regional housing authority and the commissioners of the regional housing authority shall adopt a resolution declaring that there is a need for excluding a county from the area only if:
    1. Each governing body of the counties to remain in the area of operation of the regional housing authority and the commissioners of the regional housing authority find that, because of facts arising or determined subsequent to the time when the area first included the county to be excluded, the regional housing authority would be a more efficient or economical administrative unit if that county were excluded from the area; and
    2. The governing body of each county to be excluded and the commissioners of the regional housing authority each also find that, because of the changed facts, another housing authority for the county would be a more efficient or economical administrative unit to function in the county.
    1. In all regional housing authorities in this state in which there is construction in only one (1) county, the governing body of that county shall have the power, if it deems it to be in the best interest of the county, to enter an order detaching the county from the regional housing authority.
    2. Upon the entry of such order, the county shall thereupon cease to be a part of the regional housing authority.
    1. All rights, contracts, agreements, obligations, and property, real and personal, of a regional housing authority shall be in the name of and vested in the county housing authority of the county when one shall have been created there under the provisions of § 14-169-318;
    2. All obligations of the regional housing authority shall thereupon be the obligations of the county housing authority; and
    3. All rights and remedies of any person against the regional housing authority may thereupon be asserted, enforced, and prosecuted against the county housing authority to the same extent as they might have been asserted, enforced, and prosecuted against the regional housing authority.

History. Acts 1943, No. 280, § 5; 1949, No. 340, § 1; A.S.A. 1947, § 19-3041.

14-169-318. Housing authority for county excluded or detached.

  1. At any time after the exclusion or detachment of any county from the area of operation of a regional housing authority, as provided in this subchapter, the governing body of any such county may adopt a resolution or enter an order declaring that there is need for a housing authority in the county if the governing body shall find such need according to the provisions of § 14-169-207. Thereupon, a public body corporate and politic to be known as the housing authority of the county shall exist for that county, the five (5) commissioners of which shall be appointed by the governing body of that county and may transact business and exercise its powers in the same manner, and shall have the same rights, powers, and immunities, as though created by § 14-169-207.
  2. Nothing contained in this section shall be construed as preventing that county from thereafter being included within the area of operation of a regional housing authority as provided in this subchapter.

History. Acts 1943, No. 280, § 6; 1949, No. 340, § 2; A.S.A. 1947, § 19-3042.

14-169-319. Procedures to create authority or change area.

    1. The governing body of a county shall not adopt any resolution authorized by §§ 14-169-304, 14-169-315, or 14-169-317 unless a public hearing has first been held.
    2. The clerk of the county shall give notice of the time, place, and purpose of the public hearing at least ten (10) days prior to the day on which the hearing is to be held, in a newspaper published in the county, or if there is no newspaper published in the county, then in a newspaper published in the state and having a general circulation in the county.
    3. Upon the date fixed for the public hearing, an opportunity to be heard shall be granted to all residents of the county and to all other interested persons.
  1. In determining whether dwelling accommodations are unsafe or unsanitary, the governing body of a county shall take into consideration:
    1. The safety and sanitation of dwellings;
    2. The light and air space available to the inhabitants of the dwellings;
    3. The degree of overcrowding;
    4. The size and arrangement of the rooms; and
    5. The extent to which conditions exist in the dwellings which endanger life or property by fire or other causes.
  2. In connection with the issuance of bonds, a regional housing authority may covenant as to limitations on its right to adopt resolutions relating to the increase or decrease of its area of operation.

History. Acts 1943, No. 280, § 7; A.S.A. 1947, § 19-3043.

Subchapter 4 — Consolidated Housing Authorities

Effective Dates. Acts 1943, No. 280, § 17: approved Mar. 23, 1943. Emergency clause provided: “Inasmuch as there is no statutory provision for the creation and establishment of consolidated housing authorities by two or more municipalities nor other provisions contained in this act that are necessary to make housing authorities in this State more efficient and economical administrative units, it is necessary for the immediate preservation of the public peace, health and safety that this act become effective without delay. This act, therefore, shall take effect and be in full force from and after its passage.”

14-169-401. Creation and authority generally.

      1. If the governing body of each of two (2) or more municipalities declares, by resolution, that there is a need for one (1) housing authority for all of the municipalities to exercise in the municipalities the powers and other functions prescribed for a housing authority, a public body corporate and politic to be known as a consolidated housing authority, with such corporate name as it selects, shall thereupon exist for all of the municipalities and exercise its powers and other functions within its area of operation, as defined in this section, including the power to undertake projects in it. Thereupon, any housing authority created for any of the municipalities shall cease to exist except for the purpose of winding up its affairs and executing a deed of its real property to the consolidated housing authority.
      2. The creation of a consolidated housing authority and the finding of need for it shall be subject to the same provisions and limitations of §§ 14-169-101 — 14-169-106, 14-169-223, 14-169-224, 14-169-226, 14-169-228, 14-169-237, 14-169-238, 14-169-301 — 14-169-319, 14-169-401, and 14-169-501 — 14-169-503 applicable to the creation of a regional housing authority, and all of these provisions applicable to regional housing authorities and their commissioners shall be applicable to consolidated housing authorities and their commissioners.
      1. The area of operation of a consolidated housing authority shall include all of the territory within the boundaries of each municipality joining in the creation of the authority, together with the territory within five (5) miles of the boundaries of each municipality.
        1. An area of operation may be changed to include or exclude any municipality with its surrounding territory in the same manner and under the same provisions as provided in §§ 14-169-101 — 14-169-106, 14-169-223, 14-169-224, 14-169-226, 14-169-228, 14-169-237, 14-169-238, 14-169-301 — 14-169-319, 14-169-401, and 14-169-501 — 14-169-503 for changing the area of operation of a regional housing authority by including or excluding a contiguous county.
        2. For all such purposes:
          1. The term “county” shall be construed as meaning “municipality”;
          2. The term “governing body” in §§ 14-169-308 — 14-169-310 shall be construed as meaning “mayor or other executive head of the municipality”; and
          3. The terms “county housing authority” and “regional housing authority” shall be construed as meaning “housing authority of the city or town” and “consolidated housing authority,” respectively, unless a different meaning clearly appears from the context.
    1. The governing body of a municipality for which a housing authority has not been created may adopt the resolution as prescribed in this section if it first declares that there is a need for a housing authority to function in the municipality.
    2. The declaration shall be made in the same manner and subject to the same conditions as the declaration of the governing body of a city required by § 14-169-207 for the purpose of authorizing a housing authority created for a city to transact business and exercise its powers.
  1. Except as otherwise provided in this section, a consolidated housing authority and the commissioners of it shall have, within the area of operation of the consolidated housing authority, the same functions, rights, powers, duties, privileges, immunities, and limitations as those provided for housing authorities created for cities, counties, or groups of counties and the commissioners of such housing authorities, in the same manner as though all the provisions of law applicable to housing authorities created for cities, counties, or groups of counties were applicable to consolidated housing authorities.

History. Acts 1943, No. 280, § 8; A.S.A. 1947, § 19-3046.

Subchapter 5 — Rural Housing Projects

Effective Dates. Acts 1941, No. 352, § 13: approved Mar. 26, 1941. Emergency clause provided: “Inasmuch as there is no statutory provision for the creation and establishment of regional housing authorities to provide dwelling accommodations for persons of low income which are urgently needed by inhabitants of the State residing in unsafe and insanitary dwelling accommodations and there is no specific statutory provision authorizing county housing authorities and regional housing authorities to provide housing for farmers of low income, it is necessary for the immediate preservation of the public peace, health and safety that this act become effective without delay. This act, therefore, shall take effect and be in full force from and after its passage.”

14-169-501. Definition.

As used in this subchapter, unless the context otherwise requires, “farmers of low income” means persons or families who, at the time of their admission to occupancy in a dwelling of a housing authority:

  1. Live under unsafe or unsanitary housing conditions;
  2. Derive their principal income from operating or working upon a farm; and
  3. Had an aggregate average annual net income for the three (3) years preceding their admission that was less than the amount determined by the housing authority to be necessary, within its area of operation, to enable them, without financial assistance, to obtain decent, safe, and sanitary housing, without overcrowding.

History. Acts 1941, No. 352, § 9; A.S.A. 1947, § 19-3055.

14-169-502. Authority generally.

  1. County housing authorities and regional housing authorities are specifically empowered and authorized to borrow money, accept grants, and exercise their other powers to provide housing for farmers of low income.
  2. In connection with these projects, the housing authorities may enter into such leases or purchase agreements, accept such conveyances, and rent or sell dwellings forming part of the projects to or for farmers of low income, as such housing authorities deem necessary in order to assure the achievement of the objectives of this subchapter.
  3. The leases, agreements, or conveyances may include such covenants as the housing authority deems appropriate regarding the dwellings and the tracts of land described in any such instrument. These covenants shall be deemed to run with the land where the housing authority deems it necessary and where the parties to the instrument so stipulate.
  4. In providing housing for farmers of low income, county housing authorities and regional housing authorities shall not be subject to tenant selection limitations provided in § 14-169-237.
  5. Nothing contained in this section shall be construed as limiting any other powers of any housing authority.

History. Acts 1941, No. 352, § 7; A.S.A. 1947, § 19-3053.

14-169-503. Applications by farmers.

  1. The owner of any farm operated, or worked upon, by a farmer of low income in need of safe and sanitary housing may file an application with a county housing authority or a regional housing authority requesting that it provide for a safe and sanitary dwelling for occupancy by the farmer of low income.
  2. The applications shall be received and examined by housing authorities in connection with the formulation of projects or programs to provide housing for farmers of low income.

History. Acts 1941, No. 352, § 8; A.S.A. 1947, § 19-3054.

Subchapter 6 — Redevelopment Generally

Cross References. Community redevelopment financing, § 14-168-201 et seq.

Case Notes

Constitutionality.

This subchapter is not unconstitutional. Rowe v. Housing Auth., 220 Ark. 698, 249 S.W.2d 551 (1952).

14-169-601. Legislative declarations.

It is found and declared that:

  1. There exists in many communities within this state blighted areas, as defined in § 14-169-604, or areas in the process of becoming blighted;
    1. Such areas impair economic values and tax revenues;
    2. Such areas cause an increase in and spread of disease and crime and constitute a menace to the health, safety, morals, and welfare of the residents of the state; and
    3. These conditions necessitate excessive and disproportionate expenditures of public funds for crime prevention and punishment, public health and safety, and accident protection, and other public services and facilities;
  2. The clearance, replanning, and preparation for rebuilding of these areas and the prevention or the reduction of blight and its causes are public uses and purposes for which public money may be spent and private property acquired and are governmental functions of state concern;
    1. Redevelopment activities will stimulate residential construction which is closely correlated with general economic activity; and
    2. Such undertakings authorized by this subchapter will aid the production of better housing and more desirable neighborhood and community development at lower costs and will make possible a more stable and larger volume of residential construction, which will assist materially in achieving and maintaining full employment; and
    1. It is in the public interest that advance preparation for such projects and activities be made; and
    2. The necessity in the public interest for the provisions enacted in this subchapter is declared as a matter of legislative determination.

History. Acts 1945, No. 212, § 1; A.S.A. 1947, § 19-3056.

14-169-602. Provisions controlling.

Insofar as the provisions of this subchapter are inconsistent with the provisions of any other law, the provisions of this subchapter shall control.

History. Acts 1945, No. 212, § 10; A.S.A. 1947, § 19-3063n.

14-169-603. Powers supplemental.

The powers conferred by this subchapter shall be in addition and supplemental to the powers conferred by any other law.

History. Acts 1945, No. 212, §§ 8, 11; A.S.A. 1947, § 19-3063.

14-169-604. Authority generally — Definition.

An urban renewal agency under § 14-169-709 and any housing authority established under the Housing Authorities Act, §§ 14-169-20114-169-205, 14-169-20714-169-225, 14-169-227, 14-169-22914-169-240, and 14-169-804, may carry out any work or undertaking to be called a “redevelopment project”, to:

  1. Acquire blighted areas, which are defined as areas, including slum areas, with buildings or improvements which by reason of dilapidation, obsolescence, overcrowding, faulty arrangement or design, lack of ventilation, light and sanitary facilities, excessive land coverage, deleterious land use or obsolete layout, or any combination of these or other factors are detrimental to the safety, health, morals, or welfare of the community;
  2. Acquire other real property for the purpose of removing, preventing, or reducing blight, blighting factors, or the causes of blight;
  3. Acquire real property where the acquisition of the area by the authority is necessary to carry out a redevelopment plan;
  4. Clear any areas acquired and install, construct, or reconstruct streets, utilities, and site improvements essential to the preparation of sites for uses in accordance with the redevelopment plan;
  5. Sell land so acquired for uses in accordance with the redevelopment plan; or
  6. Accomplish a combination of these projects to carry out a redevelopment plan.

History. Acts 1945, No. 212, § 2; A.S.A. 1947, § 19-3057; Acts 2017, No. 732, § 1.

Publisher's Notes. Acts 1945, No. 212, § 11, provided, in part, that the enactment of the act would not be construed to render invalid any action or proceeding had or taken for the creation or establishment of a housing authority pursuant to laws in existence prior to the enactment of the act.

Amendments. The 2017 amendment substituted “An urban renewal agency under § 14-169-709 and any” for “Any”, substituted “under” for “pursuant to”, and deleted “and any amendments thereto” preceding “may carry”.

14-169-605. Rights, etc., of housing authority.

  1. In undertaking development projects, a housing authority shall have all the rights, powers, privileges, and immunities that a housing authority has under the Housing Authorities Act, §§ 14-169-201 — 14-169-205, 14-169-207 — 14-169-225, 14-169-227, 14-169-229 — 14-169-240, and 14-169-804 and any other provision of law relating to slum clearance and housing projects for persons of low income including, without limiting the generality of the foregoing, the power to make and execute contracts, to issue bonds and other obligations and give security therefor, to acquire real property by eminent domain or purchase, and to do any and all things necessary to carry out projects, in the same manner as though all the provisions of law applicable to slum clearance and housing projects were applicable to redevelopment projects undertaken under this subchapter.
  2. Nothing contained in §§ 14-169-236 — 14-169-238 shall be construed as limiting the power of an authority, in the event of a default by a purchaser or lessee of land in a redevelopment plan, to acquire property and operate it free from the restrictions contained in these statutes.

History. Acts 1945, No. 212, § 3; A.S.A. 1947, § 19-3058.

Case Notes

Condemnation Awards.

Where award as the reasonable market value of the property taken by city urban renewal agency is not contrary to the preponderance of its evidence, the award will stand. Urban Renewal Agency v. Shaw, 239 Ark. 994, 395 S.W.2d 741 (1965).

14-169-606. Local approval and assistance.

  1. An authority shall not initiate any redevelopment project under this subchapter until the governing body or agency designated by it or empowered by law so to act of each city or town, i.e., “municipalities,” in which any of the area to be covered by the project is situated, has approved a plan, to be called the “redevelopment plan,” which provides an outline for the development or redevelopment of the area and is sufficiently complete to indicate:
    1. Its relationship to definite local objectives as to appropriate land uses and improved traffic, public transportation, public utilities, recreational and community facilities, and other public improvements;
    2. Proposed land uses and building requirements in the area; and
    3. The method for the temporary relocation of persons living in such areas; and also the method for providing, unless already available, decent, safe, and sanitary dwellings substantially equal in number to the number of substandard dwellings to be cleared from the area, at rents within the financial reach of the income groups displaced from the substandard dwellings.
  2. Municipalities are authorized to approve redevelopment plans through their governing body or agency designated by it for that purpose.
  3. Any state public body, as defined in § 14-169-203, shall have the same rights and powers to cooperate with and assist housing authorities with respect to redevelopment projects that such state public body has pursuant to the Housing Authorities Act, §§ 14-169-201 — 14-169-205, 14-169-207 — 14-169-225, 14-169-227, 14-169-229 — 14-169-240, and 14-169-804, for the purpose of assisting the development or administration of slum clearance and housing projects in the same manner as though the provisions of the Housing Authorities Act were applicable to redevelopment projects undertaken under this subchapter.

History. Acts 1945, No. 212, § 4; A.S.A. 1947, § 19-3059.

Case Notes

Relocation Costs.

Relationship between city and housing authority was not a principal-agent stance, and therefore a housing authority, acting independently of the city, would be liable for relocation costs on urban renewal utility lines. Arkansas La. Gas Co. v. City of Little Rock, 256 Ark. 112, 506 S.W.2d 555 (1974).

14-169-607. Federal financial aid.

An authority may borrow money or accept contributions from the federal government to assist in its undertaking redevelopment projects. An authority may do any and all things necessary or desirable to secure such financial aid, including obligating itself in any contract with the federal government for annual contributions to convey to the federal government the project to which the contract relates upon the occurrence of a substantial default under it, in the same manner as it may do to secure such aid in connection with slum clearance and housing projects under the provisions of the Housing Authorities Act, §§ 14-169-20114-169-205, 14-169-20714-169-225, 14-169-227, 14-169-22914-169-240, and 14-169-804.

History. Acts 1945, No. 212, § 6; A.S.A. 1947, § 19-3061.

14-169-608. Bonds deemed legal investments.

Bonds or other obligations issued by a housing authority in connection with a redevelopment project pursuant to this subchapter shall be security for public deposits and legal investments to the same extent and for the same persons, institutions, associations, corporations, and other bodies and officers as bonds or other obligations issued pursuant to the Housing Authorities Act, §§ 14-169-20114-169-205, 14-169-20714-169-225, 14-169-227, 14-169-22914-169-240, and 14-169-804, in connection with the development of slum clearance or housing projects.

History. Acts 1945, No. 212, § 7; A.S.A. 1947, § 19-3062.

14-169-609. Use of land in project.

    1. The authority may make land in a redevelopment project available for use by private enterprise or public agencies in accordance with the redevelopment plan.
    2. The land may be made available at its use value, which represents the value, whether expressed in terms of rental or capital price, at which the authority determines the land should be made available in order that it may be developed or redeveloped for the purposes specified in the plan.
    1. To assure that land acquired in a redevelopment project is used in accordance with the redevelopment plan, an authority, upon the sale or lease of the land, shall obligate purchasers or lessees to:
      1. Use the land for the purpose designated in the redevelopment plan;
      2. Begin the building of their improvements within a period of time which the authority fixes as reasonable; and
      3. Comply with such other conditions as are necessary to carry out the purposes of this subchapter.
    2. Any such obligations by the purchaser shall be covenants and conditions running with the land where the authority so stipulates.

History. Acts 1945, No. 212, § 5; A.S.A. 1947, § 19-3060.

Subchapter 7 — Urban Renewal Generally

Cross References. Community redevelopment financing, § 14-168-201 et seq.

Effective Dates. Acts 1957, No. 189, § 4: approved Mar. 8, 1957. Emergency clause provided: “It has been found and it is hereby declared that the redevelopment authorities in the various municipalities of the State of Arkansas do not now have the powers necessary to enable them to adequately meet the demands on them brought about by the immediate need for the elimination of conditions of blight and deterioration through urban renewal, conservation and rehabilitation activities, and to avail themselves of federal aid in this connection. An emergency is therefore declared to exist, rendering this Act necessary for the immediate preservation of the public peace, health and safety, and it shall take effect and be in force from and after the date of its passage.”

Acts 1959, No. 119, § 2: Feb. 26, 1959. Emergency clause provided: “It has been found and it is hereby declared that the redevelopment authorities in the various municipalities of the State of Arkansas do not now have the powers necessary to enable them to adequately meet the demands on them brought about by the immediate need for the elimination of conditions of blight and deterioration through urban renewal, conservation and rehabilitation activities, and to avail themselves of federal aid in this connection. An emergency is therefore declared to exist, rendering this Act necessary for the immediate preservation of the public peace, health and safety, and it shall take effect and be in force from and after the date of its passage and approval.”

Acts 1961, No. 40, § 5: Feb. 6, 1961. Emergency clause provided: “It has been found and it is hereby declared that there is a great need in some municipalities of the State of Arkansas to authorize them to designate an urban renewal agency or a housing authority to exercise urban renewal powers as provided herein, in order to meet the demands for the elimination of conditions of slum, blight and deterioration through urban renewal, conservation and rehabilitation activities, and to avail themselves of Federal aid in this connection. An emergency is therefore declared to exist rendering this Act necessary for the immediate preservation of the public peace, health and safety, and it shall take effect and be in force from and after the date of its passage and approval.”

14-169-701. Legislative findings.

It is found and declared that:

  1. There exist in municipalities of this state slum, blighted, or deteriorated areas which constitute a serious and growing menace, injurious to the public health, safety, morals, and welfare of the residents of this state, and the findings and declarations heretofore made in § 14-169-601 with respect to slum and blighted areas are affirmed and restated;
  2. Certain slum, blighted, or deteriorated areas, or portions of them, may require acquisition and clearance, as provided in this subchapter, since the prevailing condition of decay may make impracticable the reclamation of the area by conservation or rehabilitation, but other areas or portions of them, through the means provided in this subchapter, may be susceptible of conservation or rehabilitation in such a manner that the conditions and evils hereinbefore enumerated may be eliminated, remedied, or prevented, and that such blighted areas can be conserved and rehabilitated through appropriate public action and the cooperation and voluntary action of the owners and tenants of property in such areas; and
  3. All powers conferred by this subchapter are for public uses and purposes for which public money may be expended and such other powers exercised, and the necessity in the public interest for the provisions of this subchapter is declared as a matter of legislative determination. A municipality, to the greatest extent it determines to be feasible in carrying out the provisions of this subchapter, shall afford maximum opportunity, consistent with the sound needs of the municipality as a whole, to the rehabilitation or redevelopment of areas by private enterprise.

History. Acts 1945, No. 212, § 12 as added by Acts 1957, No. 189, § 1; A.S.A. 1947, § 19-3063.1.

14-169-702. Definitions.

As used in §§ 14-169-70814-169-713, unless the context otherwise requires:

  1. “Governing body” means the legislative body of a municipality;
  2. “Housing authority” means any public corporation created under § 14-169-207;
  3. “Municipality” means a city of the first class, a city of the second class, or an incorporated town; and
  4. “Undertaken” means:
    1. Real property has been purchased for the urban renewal project;
    2. A contract for the purchase of real property for the urban renewal project has been executed; or
    3. A housing authority has received funds for the planning or execution of the urban renewal project.

History. Acts 1945, No. 212, § 21 as added by Acts 1961, No. 40, § 1; A.S.A. 1947, § 19-3063.10; Acts 2017, No. 732, § 2.

Publisher's Notes. Acts 1961, No. 40, § 3, provided that the powers and duties conferred by the act would be in addition and supplemental to the powers conferred by any other law.

Amendments. The 2017 amendment rewrote the section.

14-169-703. Urban renewal projects.

    1. An urban renewal agency under § 14-169-709 or a housing authority under § 14-169-601 et seq. is authorized to plan and undertake urban renewal projects.
    2. As used in this subchapter, an urban renewal project may include undertakings and activities for the elimination and for the prevention of the development or spread of slums or blighted, deteriorated, or deteriorating areas and may involve any work or undertaking for such purposes constituting a redevelopment project or any rehabilitation or conservation work, or any combination of such undertaking or work. Such undertaking and work may include:
      1. Carrying out plans for a program of voluntary repair and rehabilitation of buildings or other improvements;
      2. Acquisition of:
        1. A slum area or a deteriorated or deteriorating area;
        2. Land which is predominantly open and which, because of obsolete platting, diversity of ownership, deterioration of structures or of site improvements, or otherwise, substantially impairs or arrests the sound growth of the community;
        3. Open land necessary for sound community growth. The requirement of this subchapter that the area be a slum area or a blighted, deteriorated, or deteriorating area shall not be applicable in the case of an open land project; or
        4. Acquisition of any other real property in the urban renewal project area where necessary to eliminate unhealthful, insanitary, or unsafe conditions, lessen density, eliminate obsolete or other uses detrimental to the public welfare, or otherwise to remove or prevent the spread of blight or deterioration, or to provide land for needed public facilities, and demolition, removal, or rehabilitation of buildings and improvements;
      3. Installation, construction, or reconstruction of streets, utilities, parks, playgrounds, and other improvements necessary for carrying out the objectives of the urban renewal project; and
      4. The disposition, for uses in accordance with the objectives of the urban renewal project, of any property, or part of it, acquired in the area of such project. Disposition shall be in the manner prescribed in this subchapter for the disposition of property in a redevelopment project area.
  1. Notwithstanding any other provisions of this subchapter, where the local governing body certifies that an area is in need of redevelopment or rehabilitation as a result of tornado, flood, fire, hurricane, earthquake, storm, or other catastrophe respecting which the Governor has certified the need for disaster assistance under Public Law 81-875 [repealed] or other federal law, the local governing body may approve an urban renewal plan and an urban renewal project with respect to such area without regard to any provisions of this subchapter requiring that the urban renewal area is a slum area, or a blighted, deteriorated, or deteriorating area, or that the urban renewal area be predominantly residential in character or be developed or redeveloped for residential uses.

History. Acts 1945, No. 212, § 13 as added by Acts 1957, No. 189, § 1; 1959, No. 119, § 1; A.S.A. 1947, § 19-3063.2; Acts 2017, No. 732, § 3.

Amendments. The 2017 amendment substituted “An urban renewal agency under § 14-169-709 or a housing authority under § 14-169-601 et seq.” for “In addition to its authority under any section of § 14-169-601 et seq., a housing authority” in (a)(1).

U.S. Code. Public Law 81-875, referred to in this section, was repealed by Public Law 91-606. For present law, see 42 U.S.C. § 5121 et seq.

14-169-704. Urban renewal plan — Definition.

  1. Any urban renewal project undertaken pursuant to § 14-169-703 shall be undertaken in accordance with an urban renewal plan for the area of the project.
  2. As used in this subchapter, “urban renewal plan” means a plan as it exists from time to time for an urban renewal project. This plan shall:
    1. Conform to the general plan for the municipality as a whole; and
    2. Be sufficiently complete to indicate such land acquisition, demolition, and removal of structures, redevelopment, improvements, and rehabilitation as may be proposed to be carried out in the area of the urban renewal project, zoning, and planning changes, if any, land uses, maximum densities, building requirements, and the plan's relationship to definite local objectives respecting appropriate land uses, improved traffic, public transportation, public utilities, recreational and community facilities, and other public improvements.
  3. An urban renewal plan shall be prepared and approved pursuant to the same procedure as provided in § 14-169-601 et seq. with respect to a redevelopment plan.
  4. If real property acquired by a municipality is to be transferred under an urban renewal plan, or such parts of the contract or plan as the housing authority or urban renewal agency may determine, the transfer may be recorded in the land records of the county in such manner as to afford actual or constructive notice of it.

History. Acts 1945, No. 212, § 14 as added by Acts 1957, No. 189, § 1; A.S.A. 1947, § 19-3063.3; Acts 2017, No. 732, § 4.

Amendments. The 2017 amendment, in (d), substituted “If real property acquired by a municipality is to be transferred under an” for “Where real property acquired by a municipality is to be transferred in accordance with the”, and inserted “or urban renewal agency”.

14-169-705. Powers generally — Definitions.

  1. A housing authority or an urban renewal agency shall have all the powers necessary or convenient to undertake and carry out urban renewal plans and urban renewal projects, including the authority to acquire and dispose of property, to issue bonds and other obligations, to borrow and accept grants from the United States Government or other source, and to exercise the other powers which § 14-169-601 et seq. confers on an authority with respect to redevelopment projects.
    1. In connection with the planning and undertaking of any urban renewal plan or urban renewal project, the urban renewal agency, the housing authority, the municipality, and all public and private officers, agencies, and bodies shall have all the rights, powers, privileges, and immunities that each has with respect to a redevelopment plan or redevelopment project under § 14-169-601 et seq.
      1. For such purposes:
        1. The word “redevelopment” as used in this subchapter, except in this section and in the definition of “redevelopment project” in § 14-169-604, shall mean “urban renewal”;
        2. The word “slum” and the word “blighted” as used in this subchapter, except in this section and in the definitions in § 14-169-604, shall mean “blighted, deteriorated, or deteriorating”; and
        3. The finding prescribed in § 14-169-604 with respect to a blighted area shall not be required.
      2. Any disaster area referred to in § 14-169-703 shall constitute a “blighted area,” and this subsection shall not change the corporate name of the authority or the short title of Acts 1945, No. 212, or amend any section of it.
  2. In addition to the surveys and plans which an authority is otherwise authorized to make, an authority is specifically authorized to make:
    1. Plans for carrying out a program of voluntary repair and rehabilitation of buildings and improvements;
    2. Plans for the enforcement of laws, codes, and regulations relating to the use of land and the use and occupancy of buildings and improvements, and to the compulsory repair, rehabilitation, demolition, or removal of buildings and improvements;
    3. Plans for the relocation of persons, including families, business concerns, and others displaced by an urban renewal project;
    4. Preliminary plans outlining urban renewal activities for neighborhoods to embrace two (2) or more urban renewal areas; and
    5. Preliminary surveys to determine if the undertaking and carrying out of an urban renewal project are feasible.
    1. The authority is authorized to make relocation payments to, or with respect to, persons including families, business concerns, and others displaced by an urban renewal project, for moving expenses and losses of property for which reimbursement or compensation is not otherwise made, including the making of such payments financed by the United States Government.
    2. The authority is also authorized to develop, test, and report methods and techniques, and carry out demonstrations and other activities for the prevention and the elimination of slums and urban blight.

History. Acts 1945, No. 212, § 15 as added by Acts 1957, No. 189, § 1; A.S.A. 1947, § 19-3063.4; Acts 2017, No. 732, §§ 5, 6.

Amendments. The 2017 amendment inserted “or an urban renewal agency” in (a); and in (b)(1), substituted “the urban renewal agency, the housing authority” for “the authority”, substituted “that each has” for “which they have”, and substituted “under § 14-169-601 et seq.” for “in the same manner as though all of the provisions of § 14-169-601 et seq. applicable to a redevelopment plan or redevelopment project were applicable to an urban renewal plan or urban renewal project”.

14-169-706. Assistance by municipalities and other public bodies.

  1. Any municipality or other public body is authorized, without limiting any provision in § 14-169-705, to do any and all things necessary to aid and cooperate in the planning and undertaking of any urban renewal project in the area in which the municipality or public body is authorized to act, including the furnishing of such financial and other assistance as the municipality or public body is authorized by § 14-169-601 et seq. to furnish for, or in connection with, a redevelopment plan or redevelopment project.
  2. A housing authority is authorized to delegate to a municipality or other public body any of the powers or functions of the authority with respect to the planning or undertaking of an urban renewal project in the area in which the municipality or public body is authorized to act. The municipality or public body is authorized to carry out or perform such powers or functions for the authority.
  3. Any public body is authorized to enter into agreements which may extend over any period, notwithstanding any provision or rule of law to the contrary, with any other public bodies respecting action to be taken pursuant to any of the powers granted by this subchapter including the furnishing of funds or other assistance in connection with an urban renewal plan or urban renewal project.

History. Acts 1945, No. 212, § 16 as added by Acts 1957, No. 189, § 1; A.S.A. 1947, § 19-3063.5.

14-169-707. Workable program.

  1. The governing body of the municipality or such public officer or public body as it may designate is authorized to prepare a workable program. This program may include an official plan of action as it exists from time to time for effectively dealing with the problem of urban slums and blighted, deteriorated, or deteriorating areas within the community and for the establishment and preservation of a well-planned community with well-organized residential neighborhoods of decent homes and suitable living environment for adequate family life, for utilizing appropriate private and public resources to eliminate, and prevent the development or spread of, slums and urban blight and deterioration, to encourage needed urban rehabilitation, to provide for the redevelopment and renewal of blighted, deteriorated, or slum areas, or to undertake such of these activities or other feasible activities as may be suitably employed to achieve the objectives of such a program.
  2. The powers conferred by this section shall be in addition and supplemental to the powers conferred by any other law.

History. Acts 1945, No. 212, § 17 as added by Acts 1957, No. 189, § 1; 1957, No. 189, § 3; A.S.A. 1947, §§ 19-3063.6, 19-3063.6n.

14-169-708. Adoption of powers by municipality.

  1. Notwithstanding any other provisions in this subchapter, it is provided that in any municipality in this state where on January 10, 1961, a housing authority has not been established or a housing authority is established but the authority has not undertaken an urban renewal project, the municipality may, if the local governing body, by resolution, determines such action to be in the public interest, elect to have the same powers with respect to urban renewal and redevelopment that are conferred on a housing authority by §§ 14-169-601 — 14-169-609, 14-169-701, and 14-169-703 — 14-169-707, to be exercised by an urban renewal agency created by § 14-169-709 or by a housing authority if one is authorized for, or subsequently established in, the municipality.
  2. In the event the local governing body makes such determination, the urban renewal agency or the housing authority, as the case may be, shall be vested with all such urban renewal powers as are conferred by this subchapter.

History. Acts 1945, No. 212, § 18 as added by Acts 1961, No. 40, § 1; A.S.A. 1947, § 19-3063.7.

Publisher's Notes. As to the supplemental nature of Acts 1961, No. 40, see Publisher's Notes to § 14-169-702.

Case Notes

Constitutionality.

This section does not violate Ark. Const., Art. 2, §§ 13 and 22, nor U.S. Const. Amend. 14. Adams v. Sims, 238 Ark. 696, 385 S.W.2d 13 (1964).

14-169-709. Urban renewal agency created.

    1. There is created in each municipality in this state, where on January 10, 1961, a housing authority has not been established or a housing authority is established but the housing authority has not undertaken an urban renewal project, a public body politic and corporate to be known as the “urban renewal agency” of the municipality for the purpose of planning and undertaking urban renewal projects.
    2. A municipality in which the urban renewal agency has ceased operation and become dormant may by resolution of the governing body revive the urban renewal agency, and upon adoption of the resolution under subsection (b) of this section, the mayor shall appoint a board of commissioners under § 14-169-710.
  1. The agency shall not transact any business or exercise any powers under this subchapter unless and until the local governing body shall have adopted a resolution finding that:
    1. One (1) or more slum, blighted, deteriorated, or deteriorating areas exist in the municipality; and
    2. The rehabilitation, conservation, redevelopment, or a combination thereof, of such areas is necessary in the interest of the public health, safety, morals, or welfare of the residents of the municipality.

History. Acts 1945, No. 212, § 19 as added by Acts 1961, No. 40, § 1; A.S.A. 1947, § 19-3063.8; Acts 2017, No. 732, § 7.

Publisher's Notes. As to the supplemental nature of Acts 1961, No. 40, see Publisher's Notes to § 14-169-702.

Amendments. The 2017 amendment redesignated former (a) as (a)(1); and added (a)(2).

Case Notes

Cited: Adams v. Sims, 238 Ark. 696, 385 S.W.2d 13 (1964).

14-169-710. Commissioners generally.

    1. If an urban renewal agency is authorized to transact business and exercise powers under this subchapter, the mayor shall appoint a board of commissioners of the agency which shall consist of five (5) commissioners.
    2. No commissioner may be an officer or employee of the municipality for which the agency is created.
    1. The commissioners who are first appointed shall be designated to serve for terms of one (1), two (2), three (3), four (4), and five (5) years, respectively, from the date of their appointment. Thereafter, commissioners shall be appointed as provided in this section for terms of office of five (5) years, except that any vacancy shall be filled for the unexpired term.
    2. A commissioner shall hold office until his successor has been designated by the board and approved and confirmed by the municipal council or other municipal governing body.
    1. When appointed or reappointed, approved, and confirmed, a certificate of the appointment or reappointment of any commissioner shall be filed with the clerk of the municipal council or other governing body.
    2. The certificate shall be conclusive evidence of the due and proper appointment of the commissioner.
  1. When a vacancy occurs on the board, the commissioners of the agency shall designate a successor to fill the vacancy, subject to approval and confirmation by the municipal council or other municipal governing body.
  2. A commissioner shall receive no compensation for his services but shall be entitled to the necessary expenses, including traveling expenses, incurred in the discharge of his duties.
  3. The mayor shall designate a chairman and vice chairman from among the first commissioners appointed. Thereafter, these offices shall be filled by action of the board.
    1. A majority of the commissioners shall constitute a quorum for the purpose of conducting business, exercising the powers of the agency, and for all other purposes.
    2. Action may be taken by the agency upon a vote of a majority of the commissioners present unless in any case the bylaws shall require a larger number.
  4. The powers of an agency shall be exercised by its commissioners.

History. Acts 1945, No. 212, § 20 as added by Acts 1961, No. 40, § 1; A.S.A. 1947, § 19-3063.9.

Publisher's Notes. As to the supplemental nature of Acts 1961, No. 40, see Publisher's Notes to § 14-169-702.

Case Notes

Cited: Adams v. Sims, 238 Ark. 696, 385 S.W.2d 13 (1964).

14-169-711. Commissioners — Removal.

    1. For inefficiency or neglect of duty or misconduct in office, a commissioner may be removed by the vote of a three-fourths (¾) majority of the members of the governing body of the municipality.
    2. However, a commissioner shall be removed only after he shall have been given a copy of the charges at least ten (10) days prior to the hearing on them and had an opportunity to be heard in person or by counsel.
  1. In the event of the removal of any commissioner, a record of the proceedings, together with the charges and findings on it, shall be filed in the office of the clerk.

History. Acts 1945, No. 212, § 20 as added by Acts 1961, No. 40, § 1; A.S.A. 1947, § 19-3063.9.

Publisher's Notes. As to the supplemental nature of Acts 1961, No. 40, see Publisher's Notes to § 14-169-702.

Case Notes

Cited: Adams v. Sims, 238 Ark. 696, 385 S.W.2d 13 (1964).

14-169-712. Executive director, technical experts, agents, etc., of agency.

  1. An agency may employ an executive director, technical experts, and such other agents and employees, permanent and temporary, as it may require. It may determine their qualifications, duties, and compensation.
  2. For such legal service as it may require, an agency may employ or retain its own legal staff or its own counsel.

History. Acts 1945, No. 212, § 20 as added by Acts 1961, No. 40, § 1; A.S.A. 1947, § 19-3063.9.

Publisher's Notes. As to the supplemental nature of Acts 1961, No. 40, see Publisher's Notes to § 14-169-702.

Case Notes

Cited: Adams v. Sims, 238 Ark. 696, 385 S.W.2d 13 (1964).

14-169-713. Interest of commissioner or employee in project or property or contract in connection with project.

  1. No commissioner or employee of an agency shall acquire any interest, direct or indirect, in any urban renewal project nor in any property included or planned to be included in any project, nor shall he have any interest, direct or indirect, in any contract or proposed contract for materials or services to be furnished or used in connection with any urban renewal project.
    1. If any commissioner or employee of an agency owns or controls a direct or indirect interest in any property included or planned to be included in any urban renewal project, he immediately shall disclose it, in writing, to the agency. This disclosure shall be entered upon the minutes of the agency.
    2. Failure so to disclose such interest shall constitute misconduct in office.

History. Acts 1945, No. 212, § 20 as added by Acts 1961, No. 40, § 1; A.S.A. 1947, § 19-3063.9.

Publisher's Notes. As to the supplemental nature of Acts 1961, No. 40, see Publisher's Notes to § 14-169-702.

Case Notes

Cited: Adams v. Sims, 238 Ark. 696, 385 S.W.2d 13 (1964).

Subchapter 8 — Acquisition of Property for Urban Renewal

Preambles. Acts 1969, No. 223 contained a preamble which read:

“Whereas, certain School Districts in the State of Arkansas now own lands and buildings located within the boundaries of Urban Renewal Projects or Neighborhood Development Program areas which are surplus to the needs of such School Districts; and

“Whereas, it may be to the best interest of such School Districts to donate such lands or buildings to the governing body of such Urban Renewal or Neighborhood Development Programs as may exist from time to time….”

Effective Dates. Acts 1937, No. 298, § 31: approved Mar. 23, 1937. Emergency clause provided: “It is determined and declared that unemployment and the existence of unsafe, insanitary and congested dwelling accommodations have produced an alarming economic condition in the State and constitute an emergency and that it is necessary for the preservation of the public peace, health and safety that this act become effective without delay. This act, therefore, shall take effect and be in full force from and after its passage.”

Acts 1961, No. 40, § 5: Feb. 6, 1961. Emergency clause provided: “It has been found and it is hereby declared that there is a great need in some municipalities of the State of Arkansas to authorize them to designate an urban renewal agency or a housing authority to exercise urban renewal powers as provided herein, in order to meet the demands for the elimination of conditions of slum, blight and deterioration through urban renewal, conservation and rehabilitation activities, and to avail themselves of Federal aid in this connection. An emergency is therefore declared to exist rendering this Act necessary for the immediate preservation of the public peace, health and safety, and it shall take effect and be in force from and after the date of its passage and approval.”

Acts 1971, No. 542, § 3: Apr. 6, 1971. Emergency clause provided: “Whereas, urban renewal agencies in order to receive federal assistance must be able to acquire real property to carry out plan objectives and, whereas, the power of eminent domain of urban renewal agencies needs to be clarified and affirmed in order that urban renewal plan objectives not be jeopardized, an emergency is hereby declared to exist and this Act being necessary for the immediate protection of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

14-169-801. Authority generally.

  1. A housing authority or an urban renewal agency authorized to carry on urban renewal or redevelopment activities in connection with the undertaking and carrying out of an urban renewal project may acquire real property in the urban renewal area, demolish improvements on it, relocate families from it, contract for loans and grants covering the financing of it, and take all appropriate actions, including, but not limited to, the disposition of the property, regardless of the stage of development of the urban renewal plan, if the municipal governing body shall have approved it by resolution.
  2. The municipal governing body may agree to assume the responsibility to bear any loss that may arise as the result of such acquisition in the event the property so acquired is not used for urban renewal purposes because the urban renewal plan for the project is not approved, is amended to omit any of the acquired property, or is abandoned for any reason.

History. Acts 1961, No. 40, § 2; A.S.A. 1947, § 19-3063.11.

Publisher's Notes. Acts 1961, No. 40, § 3, provided that the powers and duties conferred by the act would be in addition and supplemental to the powers conferred by any other law.

Case Notes

Cited: Adams v. Sims, 238 Ark. 696, 385 S.W.2d 13 (1964).

14-169-802. Power of eminent domain.

      1. Any urban renewal agency in this state created pursuant to the provisions of §§ 14-169-601 — 14-169-609, 14-169-702, 14-169-708 — 14-169-713, and 14-169-801 shall have the power of eminent domain to carry out urban renewal plan objectives.
      2. The procedure to be followed by the urban renewal agency to acquire property by eminent domain shall be that the board of commissioners shall, by resolution, declare that:
        1. The acquisition of certain real property is necessary for urban renewal plan objectives which have been approved by the governing body of the municipal government after a public hearing;
        2. Negotiations for acquisition have been unsuccessful; and
        3. Suit is authorized to condemn the property.
    1. An urban renewal agency may exercise the power of eminent domain in the manner prescribed by law for condemnation by railroad corporations in this state as prescribed by §§ 18-15-1202 — 18-15-1207 and acts amendatory thereof or supplementary thereto; the urban renewal agency may exercise the power of eminent domain in the manner provided by any other applicable statutory provisions for the exercise of the power of eminent domain.
  1. It is the intent of this section to affirm the power of urban renewal agencies to exercise the power of eminent domain to acquire real property to carry out urban renewal plan objectives.

History. Acts 1971, No. 542, §§ 1, 2; A.S.A. 1947, §§ 19-3075, 19-3076.

Publisher's Notes. Acts 1971, No. 542, §§ 1 and 2, are also codified as § 18-15-1505.

14-169-803. Donations by school districts.

Any school district owning lands and buildings within the boundaries of any existing urban renewal project or neighborhood development program, or within the boundaries of any such project or program that may be constituted in the future, is authorized to donate and dedicate to the governing board of any such urban renewal program or neighborhood development project as may be created any surplus lands or buildings owned by it if the lands or buildings are found by the board of the school district to be surplus to its present needs or the lands and buildings are unsuitable for further use by the school district.

History. Acts 1969, No. 223, § 1; A.S.A. 1947, § 19-3063.12.

14-169-804. Tax exemption of certain property.

  1. The property of an urban renewal agency used exclusively for public purposes and not for profit is declared to be public property, and this property and the agency shall be exempt from all taxes and special assessments from the state or any public body thereof.
  2. Any property of an agency used for commercial, business, or industrial purposes shall be assessed and ad valorem taxes paid on it in the manner provided by law for the assessment and payment of taxes on other property. The agency shall furnish the assessor with a certified statement, in writing, of the value at which the property was originally acquired to assist the assessor in arriving at the assessable value of it as provided by law.
  3. An agency may agree to make payments in lieu of taxes to a state public body for the benefit of a renewal project. However, in no event shall such payments exceed the estimated cost to the state public body of the improvements, services, or facilities to be so furnished.

History. Acts 1937, No. 298, § 23; Pope's Dig., § 10081; Acts 1969, No. 258, § 1; 1973, No. 193, § 1; A.S.A. 1947, § 19-3027.

Research References

Ark. L. Rev.

Property Tax Exemptions in Arkansas, 4 Ark. L. Rev. 433.

Subchapter 9 — Participation in Federal Programs

Effective Dates. Acts 1975, No. 163, § 4: Feb. 12, 1975. Emergency clause provided: “It is hereby found and determined by the General Assembly that the United States Congress has adopted the Community Development Act of 1974 which provides that the governing bodies of municipalities shall be responsible for community development; and, whereas, cities are already working on their applications on this program and the State law must be clarified in order for Arkansas cities and towns to participate in this federal program. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate protection of the public peace, health and safety and this Act shall take effect and be in full force and effect upon its passage and approval.”

Acts 1975 (Extended Sess., 1976), No. 1180, § 4: Feb. 11, 1976. Emergency clause provided: “It is hereby found and determined by the General Assembly that the United States Congress has adopted the Community Development Act of 1974 which provides that the governing bodies of municipalities and counties shall be responsible for community development; and, whereas, cities are already working on their applications on this program and the State law must be clarified in order for Arkansas counties as well as cities and towns to participate in this federal program. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate protection of the public peace, health and safety and this Act shall take effect and be in full force and effect upon its passage and approval.”

Acts 1987, No. 993, § 4: Apr. 14, 1987. Emergency clause provided: “It is hereby found and determined by the General Assembly that because of the case Ricarte v. State, CR 86-31 [290 Ark. 100, 717 S.W.2d 488 (1986)], a question has arisen over the validity of Act 1180 of the Extended Session of 1976; that this Act is a reenactment of the former law; and that the immediate passage of this Act is necessary to clarify the state of the law on this issue. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

14-169-901. Legislative intent.

It is the intention of this subchapter to permit municipal and county government in the State of Arkansas to participate fully in the Community Development Act of 1974, specifically, but not limited to, community development activities eligible for assistance in section 105 of it, and to have their governing bodies exercise any and all powers conferred on housing authorities and urban renewal agencies, including, but not limited to:

  1. Eminent domain;
  2. Redevelopment activities;
  3. Housing;
  4. Public housing;
  5. Urban renewal; and
  6. Community development in its broadest sense.

History. Acts 1975, No. 163, § 2; 1975 (Extended Sess., 1976), No. 1180, § 2; A.S.A. 1947, § 19-3078; reen. Acts 1987, No. 993, § 2.

A.C.R.C. Notes. This section was reenacted by Acts 1987, No. 993, § 2. Acts 1987, No. 834 provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

U.S. Code. The Community Development Act of 1974, referred to in this section, is codified as 42 U.S.C. § 5301 et seq. Section 105 of that act is codified as 42 U.S.C. § 5305.

14-169-902. Authority generally.

Municipalities and counties, acting through their governing bodies, are granted all the powers and authority granted to housing authorities and to urban renewal agencies by §§ 14-169-20114-169-205, 14-169-20714-169-225, 14-169-227, 14-169-22914-169-240, 14-169-60114-169-609, 14-169-70114-169-713, 14-169-801, 14-169-802, and 14-169-804.

History. Acts 1975, No. 163, § 1; 1975 (Extended Sess., 1976), No. 1180, § 1; A.S.A. 1947, § 19-3077; reen. Acts 1987, No. 993, § 1.

A.C.R.C. Notes. This section was reenacted by Acts 1987, No. 993, § 1. Acts 1987, No. 834 provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

14-169-903. Powers supplemental.

  1. Powers granted to municipalities and counties in this subchapter are supplemental and in addition to all other powers of municipalities and counties.
  2. Nothing in this subchapter shall be construed as changing, limiting, or otherwise affecting the powers of any existing housing authority, urban renewal agency, or their commissions.

History. Acts 1975, No. 163, § 3; 1975 (Extended Sess., 1976), No. 1180, § 3; A.S.A. 1947, § 19-3079; reen. Acts 1987, No. 993, § 3.

A.C.R.C. Notes. This section was reenacted by Acts 1987, No. 993, § 3. Acts 1987, No. 834 provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

Subchapter 10 — Surplus Federal Housing Facilities

Preambles. Acts 1947, No. 250 contained a preamble which read:

“Whereas various federal agencies are liquidating certain properties constructed during the war emergency in this and other States; and

“Whereas there now exist in various communities in the State of Arkansas certain of these properties which should remain in this State to complement the industrial growth of said communities; to provide shelter and also for the general public health and welfare of the citizens of this State; and

“Whereas unless the counties and municipalities of Arkansas are authorized and empowered to acquire these properties, many of said properties will be sold and removed from the State to the detriment of the industrial growth of Arkansas….”

Effective Dates. Acts 1947, No. 250, § 13: approved Mar. 18, 1947. Emergency clause provided: “It is hereby found to be a fact that certain communities in this State are in jeopardy of losing housing, other facilities and properties heretofore constructed by agencies of the federal government and which are necessary for the present industrial progress and to provide employment for the citizens of Arkansas; the retention of these properties is also necessary to provide shelter and for the health and welfare of the citizens of this State and therefore an emergency is hereby declared to exist and this act shall become effective immediately upon its passage.”

Acts 1951, No. 132, § 3: Feb. 23, 1951. Emergency clause provided: “It is hereby found to be a fact that certain communities in this State are in jeopardy of losing housing, other facilities and properties heretofore constructed by agencies of the Federal Government and which are necessary for the present industrial progress and to provide employment for the citizens of Arkansas; the retention of these properties is also necessary to provide shelter and for the health and welfare of the cities of this State and, therefore, an emergency is hereby declared to exist and this act shall be effective immediately upon its passage and approval.”

Acts 1970, (Ex. Sess.), No. 55, § 4: Mar. 13, 1970. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 1975, No. 225, § 26: became law without Governor's signature, Feb. 19, 1975. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 1981, No. 425, § 54: Mar. 11, 1981. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Research References

Ark. L. Rev.

Comment, Municipal Bonds and Amendment 62: Clearing Up a Serbonian Bog, 39 Ark. L. Rev. 499.

14-169-1001. Construction of subchapter.

This subchapter shall, without reference to any other statute, be deemed full authority for the acquisition, operation, lease, or sale of any surplus federal property and for the issuance and sale of bonds as provided in this subchapter. This subchapter shall be construed as an additional and alternative method therefor and the financing thereof, and no petition, election, or other or further proceeding in respect to the acquisition of the property or the sale or lease of it after acquisition or the issuance or sale of bonds under this subchapter and no publication of any resolution, ordinance, notice, or proceeding relating to the acquisition of surplus federal property or the sale or lease of it by the county or municipality or the issuance or sale of bonds shall be required except as required by this subchapter, any provisions of other statutes of this state to the contrary notwithstanding.

History. Acts 1947, No. 250, § 10; A.S.A. 1947, § 19-3073.

14-169-1002. Continuing authority.

Nothing in this subchapter shall be construed to limit, in any manner, the continuing authority of the counties or municipalities to operate, lease, finance, or sell the properties so acquired.

History. Acts 1947, No. 250, § 8; 1951, No. 132, § 1; A.S.A. 1947, § 19-3071.

14-169-1003. Authority to acquire.

  1. Any county, city, or incorporated town in the State of Arkansas is empowered to execute with the United States, through any of its agencies, contracts for the acquisition of houses, housing facilities, housing projects, sewer and water plants and facilities which are necessary to the operation of the housing facilities, and other real, personal, or mixed properties which have been or may be declared surplus by the federal government.
  2. The contract may provide for outright purchase for cash or on terms or the lease of the properties from the federal government.

History. Acts 1947, No. 250, §§ 1, 2; A.S.A. 1947, §§ 19-3064, 19-3065.

14-169-1004. Property outside municipal limits.

Cities or incorporated towns may acquire properties under this subchapter located within or without the corporate limits.

History. Acts 1947, No. 250, § 9; A.S.A. 1947, § 19-3072.

14-169-1005. Funds for acquisition.

  1. Funds for the acquisition of surplus federal properties may be provided from general revenue sources, general mortgage loans, or revenue bonds which may be issued by the county, city, or town to provide funds.
    1. The revenue bonds may bear interest at such rate or rates as provided in the ordinance authorizing their issuance. Bonds so issued shall:
      1. Be negotiable;
      2. Declare that a statutory mortgage lien shall exist on the property so acquired; and
      3. Be executed by the county judge and county clerk or municipal mayor and municipal clerk or recorder.
    2. The funds derived from the bonds shall be used exclusively for purposes for which they are issued.

History. Acts 1947, No. 250, § 5; 1970 (Ex. Sess.), No. 55, § 1; 1975, No. 225, § 14; 1981, No. 425, § 14; A.S.A. 1947, § 19-3068.

14-169-1006. Issuance of bonds.

  1. Bonds provided for in this subchapter shall be issued in such amounts as may be necessary to provide sufficient funds to pay all costs of acquisition.
    1. Bonds issued under the provisions of this subchapter shall be payable solely from the revenues derived from the operation of the properties acquired. These bonds shall not, in any event, constitute an indebtedness of the county or municipality within the meaning of the constitutional provisions or limitations.
    2. It shall be plainly stated on the face of each bond that it has been issued under the provisions of this subchapter and that it does not constitute an indebtedness of the county or municipality within any constitutional or statutory limitation.

History. Acts 1947, No. 250, § 6; A.S.A. 1947, § 19-3069.

Cross References. Community redevelopment financing, § 14-168-201 et seq.

14-169-1007. Statutory mortgage lien.

    1. There is created a statutory mortgage lien upon the property acquired from the proceeds of bonds authorized to be issued under this subchapter which shall exist in favor of the holder of the bonds and each of them and to and in favor of the holder of the coupons attached to the bonds.
    2. The property acquired shall remain subject to this lien until payment in full of the principal and interest of the bonds.
    1. Any holder of bonds issued under provisions of this subchapter may, either at law or in equity, enforce the lien conferred by this section and may, by proper suit, compel the performance of duties of the officials of the issuing county or municipality set forth in this subchapter.
    2. If there is default in the payment of the principal of or interest upon any of the bonds, any court having jurisdiction may, in any proper action, appoint a receiver to administer the properties on behalf of the county or municipality with power to operate any properties or sell them and to apply the income or proceeds in conformity with this subchapter and the provisions of the mortgage or bond contract.

History. Acts 1947, No. 250, § 6; A.S.A. 1947, § 19-3069.

14-169-1008. Operation, lease, or disposition of facilities.

Counties, cities, or incorporated towns acquiring properties under this subchapter may operate them, lease them to private industry or operators, or dispose of them through sale.

History. Acts 1947, No. 250, § 3; A.S.A. 1947, § 19-3066.

14-169-1009. Proceeds from sale or lease.

  1. In the event any county or municipality acquires surplus federal properties and subsequently sells or leases them, the proceeds from the sale or leasing shall first be applied to the payment of the debt created by the acquisition of the property, if any, in accordance with the terms of the mortgage or bond indebtedness.
  2. After payment of this indebtedness, any surplus shall be placed in the county or municipal general revenue fund.

History. Acts 1947, No. 250, § 7; A.S.A. 1947, § 19-3070.

14-169-1010. Operation by local government.

Counties or municipalities acquiring property under this subchapter and electing to operate them shall do so on a basis permitting the maintenance and operation, including administrative overhead, insurance, payments in lieu of taxes, amortization of capital costs, debt service, replacement, repairs, and reasonable reserves, without subsidy from any other public funds.

History. Acts 1947, No. 250, § 4; A.S.A. 1947, § 19-3067.

14-169-1011. Limitations on use.

No property acquired under the provisions of this subchapter shall be used for slum clearance or to provide subsidized housing for persons of low income.

History. Acts 1947, No. 250, § 12; A.S.A. 1947, § 19-3074.

Subchapter 11 — Targeted Neighborhood Enhancement Plan Act

14-169-1101. Title.

This subchapter shall be known as the “Targeted Neighborhood Enhancement Plan Act.”

History. Acts 1997, No. 320, § 1.

14-169-1102. Construction.

This subchapter, being necessary for the public health, safety and welfare, shall be liberally construed to effectuate the purposes of it.

History. Acts 1997, No. 320, § 2.

14-169-1103. Declaration of areas as targeted neighborhoods.

Any municipality may, upon fulfillment of the following requirements, declare an area of the municipality as a targeted neighborhood. There is no limit on the number of targeted neighborhoods that a municipality may create. Once a targeted neighborhood area has been designated, and a plan has been implemented, the municipality may take advantage of all the provisions of this subchapter.

History. Acts 1997, No. 320, § 3.

14-169-1104. Legislative finding.

It is hereby found by the General Assembly of the State of Arkansas that certain areas within any municipality are either suffering from neglect, abandonment, or are about to become urban blight. This subchapter is necessary to recapture or rehabilitate these neighborhoods, create new homes, rehabilitate existing structures, and maintain residents for a period of several years. Overcoming neighborhood decay and blight fulfills a legitimate public purpose that is essential to the public health, safety and welfare. Therefore, cities are free to designate one (1) or more targeted neighborhoods and to implement a targeted neighborhood enhancement plan in accordance with this subchapter.

History. Acts 1997, No. 320, § 4.

14-169-1105. Requirements for an area to qualify as a targeted neighborhood.

Before a municipality may designate an area as a targeted neighborhood, it must first complete each of the following steps:

  1. The municipality must pass a resolution, containing a proposed map, noting its intent to designate a particular area as a targeted neighborhood. The area will be referred to as the (name of area) Targeted Neighborhood Enhancement Plan.
  2. Upon the passage of the resolution, the municipality shall compile a report on the targeted neighborhood which sets forth the following information:
    1. A brief history of the neighborhood including current demographic information of the residents,
    2. Information on the deterioration or demolition of housing stock,
    3. Information concerning incidents of crime,
    4. The location of existing government resources that could help rehabilitate the neighborhood such as police and fire substations, schools, playgrounds, or other government centers,
    5. A list of financial institutions that are willing to participate as lending institutions to persons that contract with the city to build, or rehabilitate, and reside in a residential structure within the targeted neighborhood pursuant to the provisions of this subchapter,
    6. A proposed plan to rehabilitate the various blocks of the neighborhood that sets forth, among other things, the resources the municipality is willing to dedicate to ensure the success of the effort. For example, the location of a community-oriented police effort to enable residents to feel more secure would be an example of a resource the municipality is willing to dedicate.
  3. Once this plan is completed, the municipality shall conduct two (2) public hearings at different locations to indicate the nature of the rehabilitation plan and the resources the municipality is willing to dedicate to the rehabilitation effort over the next five (5) years.
  4. After any amendments to the plan the municipality wishes to make as a result of the public hearings, the municipality shall adopt an ordinance that sets forth the plan and sets forth the resources the municipality is able to dedicate to the plan over the period of five (5) years.

History. Acts 1997, No. 320, § 5.

14-169-1106. Contract to participate in a targeted neighborhood enhancement plan.

  1. A municipality may contract with a person who agrees to participate in a targeted neighborhood enhancement plan. This contract may be for an amount not to exceed twenty percent (20%) of the cost of building or rehabilitating a residential structure within the designated area, exclusive of down payment, provided the person agrees to occupy the structure as the person's principal residence for a continuous period of five (5) years.
  2. A municipality may contract with any person or entity owning and developing property for resale within a targeted neighborhood to provide an amount not to exceed twenty percent (20%) of the cost of constructing or rehabilitating a residential structure under the following conditions:
    1. The person or entity shall demand that the purchaser of the property within the targeted area shall occupy the structure and make it the person's or entity's principal residence for a period of five (5) years; and
    2. Any contracted amount from the municipality will not be provided to the person or entity developing the property for resale until:
      1. The property is sold to a purchaser who then contracts with the municipality to occupy the structure within the targeted area in return for the provision of up to twenty percent (20%) of the cost of construction or rehabilitation, which amount at sale is assigned from the person or entity to the purchaser; and
      2. The new purchaser makes the residential structure the purchaser's principal residence for a period of five (5) years; and
    3. None of the amount provided by the municipality shall be used for down payment.

History. Acts 1997, No. 320, § 6.

14-169-1107. Foreclosure.

  1. If an individual under contract with the municipality fails to fulfill the commitment to live within the residential structure for the contract period, the municipality after proper notice may file a lien against the real property in the amount of the contract plus costs of foreclosure.
  2. The municipality shall be entitled to collect the amount of the contract, plus any costs of collection including attorney's fees, by either of the following methods:
      1. By filing an action to foreclose the lien plus costs at any time within one (1) year of the date that the municipality has notice that the resident owner moved out of the structure in breach of contract with the municipality.
      2. In such case, the date the municipality filed the lien shall determine its priority in relation to other liens against the property; or
        1. If the legislative body of the municipality determines that it is in the best interests of the municipality to do so, the amount of the lien provided for in this subsection may be collected by the county clerk in the same manner as property taxes, if the municipality has filed the contract in the real estate records of the county in which the property is located.
        2. In such case, the date of filing the contract determines the priority of the lien.
      1. In order to pursue this remedy, the municipality shall set forth the exact amount of the lien, with costs, in a resolution adopted at a hearing before the governing body of the municipality in accordance with the following procedure:
        1. The hearing shall be held not fewer than thirty (30) days after receipt of written notice by certified mail, with restricted delivery and return receipt requested, to the owner of the property if the name and whereabouts of the owner are known;
        2. If the name and whereabouts of the owner cannot be determined, or if restricted delivery of certified mail is not accomplished, then the hearing to determine the amount shall be held not fewer than fourteen (14) days after publication of notice of the hearing in a newspaper having a bona fide circulation in the county where the property is located for one (1) insertion per week for four (4) consecutive weeks; and
          1. The amount so determined at the hearing, plus a ten percent (10%) penalty for collection, shall be certified by the governing body of the municipality to the tax collector of the county where the municipality is located and placed by the collector on the tax books as delinquent taxes and collected accordingly.
          2. The amount, less three percent (3%) thereof, when so collected shall be paid to the municipality by the county tax collector.

History. Acts 1997, No. 320, § 7; 2001, No. 1801, § 1.

Amendments. The 2001 amendment substituted the present (a) for the former section, which read: “If an individual, under contract with the municipality, fails to fulfill the commitment to stay within the residential structure during the contract period, the municipality, after proper notice, may foreclose on the property” and added (b).

14-169-1108. Continuation after five years.

If the municipality wishes to continue the program in a particular targeted neighborhood at the conclusion of five (5) years, it may do so by completing the steps set forth in this subchapter, provided that no area may be maintained as a targeted neighborhood for more than an aggregate of fifteen (15) years.

History. Acts 1997, No. 320, § 8.

Chapter 170 Tourism Generally

Subchapter 1 — General Provisions

[Reserved]

Subchapter 2 — Tourism Revenue Bonds

Publisher's Notes. Acts 1985, No. 945 confirmed and continued the authority of municipalities and counties to issue tourism revenue bonds pursuant to Acts 1971, No. 380.

Acts 1985, No. 976 confirmed and continued the authority of municipalities to levy the hotel and restaurant tax and to pledge the proceeds of that tax to tourism bonds by ordinance subject to referendum but without a prior vote of the people. It declared the proceeds of any hotel and restaurant tax pledged to tourism bonds issued under Acts 1971, No. 380 or bonds issued under the Local Government Capital Improvement Revenue Bond Act of 1985, for tourism projects, to be project revenues of the project financed. It further provided that the hotel and restaurant tax is not a “tax” as taxes are normally understood and intended for government support, but is a special levy paid and collected by those persons and entities peculiarly associated with and benefited by tourism. However, since the Local Government Bond Act of 1985, § 14-164-301 et seq. makes specific reference to hotel and restaurant taxes, and the Local Government Capital Improvement Revenue Bond Act of 1985, § 14-164-401 et seq. does not, it is uncertain which of these acts was intended to be referred to by Acts 1985, No. 976.

Cross References. Local Government Bond Act of 1985, § 14-164-301 et seq.

Effective Dates. Acts 1971, No. 380, § 17: Mar. 24, 1971. Emergency clause provided: “It has been found and it is hereby declared by the General Assembly of the State of Arkansas that it is essential to the continued health, welfare, safety, economic growth and development of the State of Arkansas and its people that municipalities and counties of the State of Arkansas be authorized to secure and develop tourism; that this Act and the implementation of this Act are essential to the accomplishment of these public purposes and to the overall welfare of the State of Arkansas and its people. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 1975, No. 225, § 26: became law without Governor's signature, Feb. 19, 1975. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this state and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this act. Therefore, an emergency is declared to exist and this act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 1981, No. 425, § 54: Mar. 11, 1981. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Research References

Ark. L. Rev.

Comment, Municipal Bonds and Amendment 62: Clearing Up a Serbonian Bog, 39 Ark. L. Rev. 499.

U. Ark. Little Rock L.J.

Legislative Survey, Bonds, 8 U. Ark. Little Rock L.J. 551.

Note, Revenue Bonds—The Election Requirement:City of Hot Springs v. Creviston, 288 Ark. 286, 705 S.W.2d 415 (1986), 9 U. Ark. Little Rock L.J. 63.

Case Notes

Constitutionality.

Neither former Ark. Const. Amend. 49 [repealed by Const. Amend. 62, § 11] nor any other constitutional provision permitted the issuance of bonds by municipalities without an election; therefore, this subchapter was held to be invalid when it purported to allow bonds to be issued without an election and for interest in excess of six percent and maturity dates beyond 30 years. Purvis v. City of Little Rock, 282 Ark. 102, 667 S.W.2d 936 (1984); Purvis v. City of Little Rock, 282 Ark. 129-A, 669 S.W.2d 900 (1984).

Approval of Bonds.

This subchapter was based upon former Ark. Const. Amend. 49 (repealed by Ark. Const. Amend. 62, § 11); this amendment did not provide for bonds of any kind to be issued without approval of a majority of the qualified electors voting in an election held for that purpose. Purvis v. City of Little Rock, 282 Ark. 102, 667 S.W.2d 936 (1984).

When a city or county owns a revenue-producing facility of a genuinely public nature, such as a municipal waterworks, bonds may be issued without an election to obtain funds for the operation or expansion of that public facility, the bonds being payable only from revenues derived from the facility. Purvis v. City of Little Rock, 282 Ark. 129-A, 669 S.W.2d 900 (1984).

14-170-201. Legislative determination.

The tourist industry is legislatively determined to be an industry within the meaning of that term as used in Arkansas Constitution, Amendment 49 [repealed], in that recreation, relaxation, travel, entertainment, cultural development, and other tourism activities of every nature are essential to the health, welfare, safety, progress, and physical and economic well-being of the people. Therefore, this subchapter, and the authorities conferred by it are in implementation of Arkansas Constitution, Amendment 49 [repealed], and necessary for the full accomplishment of the public purposes contemplated by the people in adopting that amendment.

History. Acts 1971, No. 380, § 1; A.S.A. 1947, § 13-1801.

A.C.R.C. Notes. It is questionable whether Ark. Const. Amend. 49 is repealed in whole or whether only those provisions that conflict with Ark. Const. Amend. 62 are repealed by Ark. Const. Amend. 62.

Case Notes

Constitutionality.

Where a city proposed construction of a convention center-hotel complex and sought to finance its share of the cost through issuance of revenue bonds, an election to approve the bonds was not required by former Ark. Const. Amend. 49 (repealed by Ark. Const. Amend. 62, § 11), which required electoral approval of industrial development bonds, and this section, which made tourism an industry within the meaning of former Ark. Const. Amend. 49, since former Ark. Const. Amend. 49 was obviously an extension of Ark. Const., Art. 16, § 1, as amended by former Ark. Const. Amend. 13 (repealed by Ark. Const. Amend. 62, § 20). Where the bonds were to be paid out of revenues derived from the convention center, hotel, and related facilities, issuance of the bonds did not violate Ark. Const. Amend. 20, former Ark. Const. Amends. 13 and 49, or Ark. Const., Art. 16, § 1. Purvis v. Hubbell, 273 Ark. 330, 620 S.W.2d 282 (1981).

Public Purposes.

“Tourism bonds” issued by city pursuant to this subchapter in order to finance construction of a privately-owned motel on city property were not valid, where such bonds were not issued for a purely public purpose pursuant to former Ark. Const., Art. 16, § 1, as amended by former Ark. Const. Amend. 13 (repealed by Ark. Const. Amend. 62, § 11), nor was any public election held. Purvis v. City of Little Rock, 282 Ark. 102, 667 S.W.2d 936 (1984).

14-170-202. Definitions.

As used in this subchapter, unless the context otherwise requires:

  1. “Governing body” means the council, board of directors, or city commission of any municipality;
  2. “Municipality” means a city of the first class or a city of the second class or an incorporated town;
  3. “Equip” means to install or place in, or on, any building or structure equipment of any and every kind, whether or not affixed including, without limitation, building service equipment, fixtures, heating equipment, air conditioning equipment, machinery, furniture, furnishings, and personal property of every kind;
  4. “Sell” means to sell for such price, in such manner, and upon such terms as the municipality or county shall determine including, without limitation, public or private sale. If public, sale shall be made pursuant to such advertisement as the municipality or county shall determine, and shall be made for cash or credit, payable in lump sum or in installments over such period as the municipality or county shall determine, and, if on credit, with or without interest, and shall be made at such rates as the municipality or county shall determine;
  5. “Lease” means to lease for such rentals, for such periods, and upon such terms and conditions as the municipality or county shall determine and the granting of such purchase options for such prices and upon such terms and conditions as the municipality or county shall determine;
  6. “Construct” means to acquire or build, in whole or in part, in such manner and by such method, including contracting therefor, and if the latter, by negotiation or bidding upon such terms and pursuant to such advertising, as the municipality or county shall determine to be in the public interest and necessary, under the circumstances existing at the time, to accomplish the purposes of and authorities set forth in this subchapter;
  7. “Facilities” means any real property, personal property, or mixed property of any and every kind that can be used or that will be useful in securing and developing tourism including, without limitation, rights-of-way, roads, streets, pipes, pipelines, reservoirs, utilities, materials, equipment, fixtures, machinery, furniture, furnishings, instrumentalities, buildings, improvements, and other real, personal, or mixed property of every kind.

History. Acts 1971, No. 380, § 12; 1981, No. 425, § 21; A.S.A. 1947, § 13-1812.

14-170-203. Construction.

This subchapter shall be liberally construed to accomplish its purposes and shall be the sole act and authority necessary to be complied with.

History. Acts 1971, No. 380, § 16; A.S.A. 1947, § 13-1814.

14-170-204. Limitations on authority.

Nothing in this subchapter shall be construed to authorize any municipality or county to sell bonds or use the proceeds of them to purchase or condemn a utility plant or condemn a utility plant or distribution system owned or operated by a regulated public utility.

History. Acts 1971, No. 380, § 15; A.S.A. 1947, § 13-1813.

14-170-205. Authority generally.

Any municipality and any county in this state is authorized to own, acquire, construct, reconstruct, extend, equip, improve, operate, maintain, sell, lease, contract concerning, or otherwise deal in or dispose of any lands, buildings, improvement, or facilities of any and every nature whatever necessary or desirable for the securing and developing of recreation, relaxation, travel, entertainment, cultural development, and other tourism activities of every nature, which are collectively referred to as “tourism”, within or near the municipality or within the county including, without limitation, hotels, motels, inns, lodges, folklore facilities, cultural development facilities, convention facilities, restaurants in connection with other facilities for the securing and developing of tourism, parks, scenic roadways and walkways, transportation facilities, parking facilities, tourist information and assistance centers, recreation areas, and other facilities of any nature whatever that can be used to secure and develop tourism and to thereby stimulate and enhance the economic growth and well-being of the municipality or county and the people. Any such undertaking, or combination of these undertakings, may be referred to as a “tourism project.”

History. Acts 1971, No. 380, § 2; A.S.A. 1947, § 13-1802.

14-170-206. Funding authorized.

  1. Municipalities and counties are authorized to use any available revenues for the accomplishment of tourism projects, either alone or together with other available funds and revenues. They may issue bonds, as authorized in this subchapter, for the accomplishment of tourism projects, either alone or together with other available funds and revenues.
  2. Bonds may be issued in such principal amount as shall be sufficient to pay the cost of accomplishing the tourism project involved, the cost of issuing bonds, the amount necessary for a reserve, if deemed desirable, the amount necessary to provide for debt service on the bonds until revenues for the payment of them are available, and any other costs and expenditures of whatever nature incidental to the accomplishment of the tourism project involved.

History. Acts 1971, No. 380, § 3; A.S.A. 1947, § 13-1803.

14-170-207. Bonds generally.

    1. The issuance of bonds shall be by ordinance of the municipality or order of the county court.
    2. As the ordinance or order authorizing their issuance may provide, the bonds may:
      1. Be coupon bonds payable to bearer, but subject to registration as to principal or as to principal and interest;
      2. Be exchangeable for bonds of another denomination;
      3. Be in such form and denominations;
      4. Be made payable at such place or places within or without the state;
      5. Be issued in one (1) or more series;
      6. Bear such date or dates;
      7. Mature at such time or times, not exceeding forty (40) years from their respective dates;
      8. Bear interest at such rate or rates;
      9. Be payable in such medium of payment;
      10. Be subject to such terms of redemption; and
      11. Contain such terms, covenants, and conditions including, without limitation, those pertaining to:
        1. The custody and application of the proceeds of the bonds;
        2. The collection and disposition of revenues;
        3. The maintenance and investment of various funds and reserves;
        4. The nature and extent of the security and pledging of revenues;
        5. The rights, duties, and obligations of the municipality or county and the trustee for the holders and registered owners of the bonds; and
        6. The rights of the holders and registered owners of the bonds.
    3. There may be successive bond issues for the purpose of financing the same tourism project. There may also be successive bond issues for financing the cost of reconstructing, replacing, constructing additions to, extending, improving, and equipping tourism projects already in existence, whether or not originally financed by bonds issued under this subchapter, with each successive issue to be authorized as provided by this subchapter.
    4. Priority between and among issues and successive issues as to security of the pledge of revenues and lien on the tourism project facilities involved may be controlled by the ordinance or order authorizing the issuance of bonds under this subchapter.
    5. Subject to the provisions of this section pertaining to registration, the bonds shall have all the qualities of negotiable instruments under the laws of the State of Arkansas.
      1. The ordinance or order authorizing the bonds may provide for the execution by the municipality or county of an indenture which defines the right of the holders and registered owners of the bonds and provides for the appointment of a trustee for the holders and registered owners of the bonds.
      2. The indenture may control the priority between successive issues and may contain any other terms, covenants, and conditions that are deemed desirable, including, without limitation, those pertaining to:
        1. The custody and application of the proceeds of the bonds;
        2. The maintaining of rates and charges;
        3. The collection and disposition of revenues;
        4. The maintenance of various funds and reserves;
        5. The nature and extent of the security and pledging of revenues; and
        6. The rights, duties, and obligations of the municipality and the trustee and the rights of the holders and registered owners of the bonds.
    1. It shall not be necessary for the municipality to publish any indenture or any lease if the ordinance authorizing an indenture or lease is published as required by law governing the publication of ordinances of a municipality and the ordinance advises that a copy of the indenture or a copy of the lease, as the case may be, is on file in the office of the clerk or recorder of the municipality for inspection by any interested person, and the copy of the indenture or the copy of the lease, as the case may be, is actually filed with the clerk or recorder of the municipality.
  1. The bonds may be sold for such price, including, without limitation, sale at a discount, and in such manner as the municipality or county may determine by ordinance or county court order.
      1. The bonds shall be executed by the mayor and the city clerk or recorder of the municipality or the county judge and county clerk of the county, with either the facsimile or manual signature of the mayor or county judge, but with the manual signature of the clerk or recorder and of the county clerk.
      2. In case any of the officers whose signatures appear on the bonds or coupons shall cease to be such officers before the delivery of the bonds or coupons, their signatures shall, nevertheless, be valid and sufficient for all purposes.
    1. The coupons attached to the bonds may be executed by the facsimile signature of the mayor of the municipality or the county judge of the county.

History. Acts 1971, No. 380, § 4; 1975, No. 225, § 22; 1981, No. 425, § 21; A.S.A. 1947, § 13-1804.

Case Notes

Constitutionality.

Neither former Ark. Const. Amend. 49 (repealed by Ark. Const. Amend. 62, § 11) nor any other constitutional provision permitted the issuance of bonds by municipalities without an election; therefore, this section was held to be invalid when it purported to allow bonds to be issued without an election and for interest in excess of six percent and maturity dates beyond 30 years. Purvis v. City of Little Rock, 282 Ark. 102, 667 S.W.2d 936 (1984).

Convention Center-Hotel Complex.

Where a city proposed the construction of a convention center-hotel complex, to be financed by the issuance of revenue bonds, without an election, with payment of the bonds from five sources: (1) a two percent gross receipts tax imposed by § 26-75-602, (2) revenues received by the city from the convention centers, (3) revenues received from the convention parking facilities, (4) rent paid to the city by the developers, and (5) state turnback revenues based on the revenues derived from the convention facilities pursuant to § 14-171-201 et seq., the construction of this project by the city through the issuance of revenue bonds by the city was not violative of Ark. Const., Art. 16, § 1, as amended by former Ark. Const. Amend. 13 (repealed by Ark. Const. Amend. 62, § 11), since the promoters were building the hotel at their own expense, substantially contributing to the costs of the convention center, paying an annual rental, and the title to the hotel and convention center were being vested in the city. Purvis v. Hubbell, 273 Ark. 330, 620 S.W.2d 282 (1981).

Motels.

“Tourism bonds” issued by city pursuant to this section in order to finance construction of a privately owned motel on city property were not valid, where such bonds were not issued for a purely public purpose pursuant to Ark. Const., Art. 16, § 1, as amended by former Ark. Const. Amend. 13 (repealed by Ark. Const. Amend. 62, § 11), nor was any public election held. Purvis v. City of Little Rock, 282 Ark. 102, 667 S.W.2d 936 (1984).

14-170-208. Refunding bonds.

    1. Bonds may be issued under this subchapter for the purpose of refunding any obligations issued under this subchapter.
    2. Refunding bonds may be combined with bonds issued under the provisions of § 14-170-207 into a single issue.
    1. When bonds are issued under this section for refunding purposes, the bonds may either be sold or delivered in exchange for the outstanding obligations.
    2. If sold, the proceeds may be either applied to the payment of the obligations refunded or deposited in escrow for the retirement of them.
    1. All bonds issued under this section shall in all respects be authorized, issued, and secured in the manner provided for other bonds issued under this subchapter and shall have all the attributes of those bonds.
    2. The ordinance or order under which refunding bonds are issued may provide that any of the refunding bonds shall have the same priority of lien on the revenues pledged for their payment as was enjoyed by the obligations refunded by them.

History. Acts 1971, No. 380, § 6; A.S.A. 1947, § 13-1806.

14-170-209. Security for bonds — Special obligations.

    1. The bonds issued under this subchapter shall not be general obligations of the municipality or county but shall be special obligations. In no event shall the bonds constitute an indebtedness of the municipality or county within the meaning of any constitutional or statutory limitation.
    2. It shall be plainly stated on the face of each bond that it has been issued under the provisions of this subchapter and that it does not constitute an indebtedness of the municipality or county within any constitutional or statutory limitation.
  1. The principal of, and interest on, the bonds shall be secured by a pledge of, and shall be payable from, revenues derived from the tourism project acquired, constructed, reconstructed, extended, or improved, in whole or in part, with the proceeds of the bonds.

History. Acts 1971, No. 380, § 5; A.S.A. 1947, § 13-1805.

Case Notes

Constitutionality.

Where a city planned the construction of a hotel and convention center complex through the issuance of city revenue bonds, the setting of the interest rate at 10 percent and the term of the bonds at 40 years did not violate former Ark. Const. Amend. 49 (repealed by Ark. Const. Amend. 62, § 11), since this section specifically provides that tourism revenue bonds are special obligations of the city, rather than general obligations, so that they in no event constituted an indebtedness of the city; thus, the bonds did not arise under the amendment and the interest rate and term were constitutional. Purvis v. Hubbell, 273 Ark. 330, 620 S.W.2d 282 (1981).

14-170-210. Statutory mortgage lien.

    1. Subject to the provisions of this section, there shall exist a statutory mortgage lien upon the land, buildings, or facilities acquired, constructed, reconstructed, extended, equipped, or improved, in whole or in part, with the proceeds of bonds issued under this subchapter which shall exist in favor of the holders and registered owners of the bonds, and in favor of the holders of the coupons attached to the bonds.
    2. The land, buildings, or facilities shall remain subject to the statutory mortgage lien until payment in full of the principal of, and interest on, the bonds.
    1. Anything in this section to the contrary notwithstanding, the ordinance, order, or indenture referred to in § 14-170-207 may impose a foreclosable mortgage lien upon the land, buildings, or facilities acquired, constructed, reconstructed, extended, equipped, or improved, in whole or in part, with the proceeds of bonds issued under this subchapter.
    2. The nature and extent of the mortgage lien may be controlled by the ordinance, order, or indenture including, without limitation, provisions pertaining to the release of all, or part of, the land, buildings, or facilities from the mortgage lien and the priority of the mortgage lien in the event of successive bond issues as authorized by § 14-170-207.
  1. Subject to such terms, conditions, and restrictions as may be contained in the ordinance, order, or indenture authorizing or securing the bonds, any holder or registered owner of bonds issued under the provisions of this subchapter, or of any coupon attached to them, may, either at law or in equity, enforce the mortgage lien and may, by proper suit, compel the performance of the duties of the officials of the issuing municipality or county set forth in this subchapter and set forth in any ordinance, order, or indenture authorizing or securing the bonds.
  2. References in this subchapter to mortgage lien shall include, and mean, security interest in any personal property embodied in a tourism project acquired, constructed, reconstructed, extended, equipped, or improved, in whole or in part, with the proceeds of bonds issued under this subchapter.

History. Acts 1971, No. 380, § 7; A.S.A. 1947, § 13-1807.

14-170-211. Default in bond payment.

      1. In the event of a default in the payment of the principal of, or interest on, any bonds issued under this subchapter, any court having jurisdiction may appoint a receiver to take charge of the land, buildings, or facilities acquired, constructed, reconstructed, extended, equipped, or improved, in whole or in part, with the proceeds of bonds issued under this subchapter, upon which land, buildings, or facilities, or any part of them, there is a mortgage lien securing the bonds with reference to which there is such a default in the payment of principal or interest.
      2. The receiver shall have the power to operate and maintain the land, buildings, or facilities and to charge and collect rates or rents sufficient to provide for the payment of the principal of, and interest on, the bonds, after providing for the payment of all costs of receivership and operating expenses of the land, buildings, or facilities, and to apply the income and revenues derived from the land, buildings, or facilities in conformity with this subchapter and the ordinance, order, or indenture authorizing or securing the bonds.
    1. When the default has been cured, the receivership shall be ended and the properties returned to the municipality or county.
  1. The relief afforded by this section shall be construed to be in addition and supplemental to the remedies that may be afforded to the trustee for the holders and registered owners of the bonds in the ordinance or indenture authorizing or securing the bonds, and shall be so granted and administered as to accord full recognition to priority rights of holders and registered owners of the bonds as to the pledge of revenues from, and the mortgage lien on, lands, buildings, or facilities as specified in and fixed by the ordinance, order, or indenture authorizing or securing successive bond issues.

History. Acts 1971, No. 380, § 8; A.S.A. 1947, § 13-1808.

14-170-212. Bonds — Tax exemption.

  1. Bonds issued under this subchapter shall be exempt from all state, county, and municipal taxes.
  2. This exemption includes income and inheritance taxes.

History. Acts 1971, No. 380, § 9; A.S.A. 1947, § 13-1809.

Case Notes

Motels.

Although the attraction of tourists may in some situations have constituted an industry within former Ark. Const. Amend. 49 (repealed by Ark. Const. Amend. 62, § 11), the Supreme Court was unwilling to attempt to define “tourism” as an industry, beyond the holding that a motel did not qualify for a tax-exempt bond issue under former Ark. Const. Amend. 49 and this subchapter. Purvis v. City of Little Rock, 282 Ark. 129-A, 669 S.W.2d 900 (1984).

14-170-213. Public investment in bonds.

  1. Any municipality, or any board, commission, or other authority duly established by ordinance of any municipality, or the board of trustees, respectively, of the firemen's relief and pension fund and the policemen's pension and relief fund of any such municipality, or the board of trustees of any retirement system created by the General Assembly, may, in its discretion, invest any of its funds not immediately needed for its purposes in bonds issued under the provisions of this subchapter.
  2. Bonds issued under the provisions of this subchapter shall be eligible to secure the deposit of public funds.

History. Acts 1971, No. 380, § 10; A.S.A. 1947, § 13-1810.

14-170-214. Intergovernmental agreements.

Municipalities and counties are authorized to enter into and carry out appropriate agreements with any agency or political subdivision of the federal government or of the State of Arkansas pertaining to the accomplishment of the purposes authorized by this subchapter, including, without limitation, loan agreements for the borrowing of money and agreements pertaining to grants.

History. Acts 1971, No. 380, § 11; A.S.A. 1947, § 13-1811.

Chapter 171 Tourist Facilities

A.C.R.C. Notes. References to “this chapter” in subchapter 2 may not apply to subchapter 1 which was enacted subsequently.

Subchapter 1 — General Provisions

A.C.R.C. Notes. References to “this chapter” in subchapter 2 may not apply to this subchapter which was enacted subsequently.

14-171-101. Restrictions on funds.

Nothing in § 22-3-1009 shall prohibit the use of funds provided under the City-County Tourist Meeting and Entertainment Facilities Assistance Law, § 14-171-201 et seq., for eligible facilities as defined in § 14-171-203(7).

History. Acts 1995, No. 185, § 3; 1995, No. 269, § 3.

Subchapter 2 — City-County Tourist Meeting and Entertainment Facilities

Effective Dates. Acts 1977, No. 763, § 9: Mar. 24, 1977. Emergency clause provided: “It is hereby found and declared that the lack of adequate Tourist Meeting Facilities and Tourist Entertainment Facilities is hampering the development of the Tourist Industry in this State and that this Act is necessary to provide financing for adequate Tourist Meeting Facilities and Tourist Entertainment Facilities. Therefore, an emergency is declared to exist and this Act, being necessary for the immediate preservation of the public peace, health and safety, shall take effect and be in force from and after its passage and approval.”

Acts 1979, No. 212, § 8: Feb. 23, 1979. Emergency clause provided: “It is hereby found and declared that the lack of adequate Tourist Meeting Facilities and Tourist Entertainment Facilities is hampering the development of the tourist industry in this State and that this Act is immediately necessary to provide adequate financing for such facilities through the issuance of either General Obligation Bonds or Revenue Bonds. Therefore, an emergency is declared to exist and this Act, being necessary for the immediate preservation of the public peace, health and safety, shall take effect and be in force from and after its passage and approval.”

Acts 1979, No. 569, § 7: Mar. 26, 1979. Emergency clause provided: “It is hereby found and declared that the economic burden of Cities and Counties which have heretofore invested in Tourist Meeting Facilities and Tourist Entertainment Facilities is creating economic hardship to the affected Cities and Counties and that this Act is immediately necessary to provide assistance to such Cities and Counties, an emergency is declared to exist and this Act, being necessary for the immediate preservation of the public peace, health and safety, shall take effect and be in force from and after its passage and approval.”

Acts 1983, No. 356, § 3: Mar. 8, 1983. Emergency clause provided: “It is hereby found and determined by the Seventy-Fourth General Assembly that the immediate passage and approval of this Act is necessary to properly effectuate the purposes and intent of the City-County Tourist Meeting and Facilities Assistance Law. Therefore, an emergency is hereby declared to exist and this Act, being necessary for the public peace, health and safety, shall take effect and be in force from and after its passage and approval.”

Acts 1995, No. 1156, § 13: July 1, 1995. Emergency clause provided: “It is hereby found and determined by the Eightieth General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1995 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1995 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1995.”

Acts 1997, No. 753, § 13: July 1, 1997. Emergency clause provided: “It is hereby found and determined by the Eighty-First General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1997 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1997 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1997.”

Acts 2001, No. 1073, § 9: Mar. 26, 2001. Emergency clause provided: “It is hereby found and determined by the Eighty-third General Assembly that confusion exists regarding the entities which qualify for monies available under the City-County Tourist Meeting and Entertainment Facilities Assistance Law. That the provisions set forth will establish the methods for awarding monies in the future, establish the amount of monies the eligible entities will receive, and set forth the fund from which the monies will be appropriated. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2007, No. 491, § 2: Mar. 26, 2007. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that funds provided by the General Assembly for the operation of the Arkansas State Fair and Livestock Show Association are, due to unforeseen circumstances, insufficient for the Arkansas State Fair and Livestock Show Association to continue to provide essential governmental services; that the provisions of this act will provide the necessary moneys for the Arkansas State Fair and Livestock Show Association to continue such services; and that a delay in the effective date of this act could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2015, No. 684, § 5: July 1, 2015. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a one (1) year period; that the effectiveness of this Act on July 1, 2015 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the legislative session, the delay in the effective date of this Act beyond July 1, 2015 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2015.”

Acts 2019, No. 82, § 23: July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the General Improvement Fund should no longer be utilized; that the Development and Enhancement Fund is necessary to complete unfinished state projects; and that this act is necessary to address infrastructure needs and unanticipated needs of the State of Arkansas. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

Acts 2019, No. 1006, § 78: July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a one (1) year period; that the effectiveness of this Act on July 1, 2019 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the legislative session, the delay in the effective date of this Act beyond July 1, 2019 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2019”.

Research References

Ark. L. Rev.

Comment, Municipal Bonds and Amendment 62: Clearing Up a Serbonian Bog, 39 Ark. L. Rev. 499.

Case Notes

Constitutionality.

Where a city proposed the construction of a convention center-hotel complex, to be financed by the issuance of revenue bonds, without an election, pursuant to § 14-170-201 et seq., with payment of the bonds from five sources: (1) a two percent gross receipts tax imposed by § 26-75-602, (2) revenues received by the city from the convention centers, (3) revenues received from the convention parking facilities, (4) rent paid to the city by the developers, and (5) state turnback revenues based on the revenues derived from the convention facilities pursuant to this subchapter, the construction of this project by the city through the issuance of revenue bonds by the city was not violative of Ark. Const., Art. 16, § 1, as amended by former Ark. Const. Amend. 13 (repealed by Ark. Const. Amend. 62, § 11), since the promoters were building the hotel at their own expense, substantially contributing to the costs of the convention center, paying an annual rental, and the title to the hotel and convention center were being vested in the city. Purvis v. Hubbell, 273 Ark. 330, 620 S.W.2d 282 (1981).

14-171-201. Title.

This subchapter may be cited as the “City-County Tourist Meeting and Entertainment Facilities Assistance Law.”

History. Acts 1977, No. 763, § 1; A.S.A. 1947, § 19-5501.

Case Notes

Cited: Purvis v. Hubbell, 273 Ark. 330, 620 S.W.2d 282 (1981).

14-171-202. [Repealed.]

Publisher's Notes. This section, concerning legislative determinations, was repealed by Acts 2001, No. 1073, § 1. The section was derived from Acts 1977, No. 763, § 2; A.S.A. 1947, § 19-5502; Acts 1993, No. 164, §§ 1, 2; 1995, No. 1156, § 2; 1997, No. 753, § 3.

14-171-203. Definitions.

As used in this subchapter, unless the context otherwise requires, “eligible facility” means a facility:

  1. With a valid agreement entered into with the State Board of Finance pursuant to this subchapter as of June 30, 2000; or
  2. That has submitted an application to the State Board of Finance for assistance under the provisions of this subchapter as of January 1, 2001.

History. Acts 1977, No. 763, § 3; 1979, No. 212, § 2; A.S.A. 1947, § 19-5503; Acts 1991, No. 647, § 1; 1993, No. 164, § 3; 1995, No. 185, §§ 1, 2; 1995, No. 269, §§ 1, 2; 1995, No. 1156, § 3; 1997, No. 753, § 2; 2001, No. 1073, § 2.

A.C.R.C. Notes. It is questionable whether Ark. Const. Amends. 13, 17, and 49 are repealed in whole or whether only those provisions that conflict with Ark. Const. Amend. 62 are repealed by Ark. Const. Amend. 62.

The Income Tax Act of 1929, referred to in this section, is codified as §§ 26-51-101, 26-51-102, 26-51-10426-51-107, 26-51-20126-51-204, 26-51-303, 26-51-40126-51-406, 26-51-410, 26-51-411, 26-51-41526-51-417, 26-51-42326-51-431, 26-51-501, 26-51-80126-51-804, 26-51-80626-51-809, and 26-51-81126-51-814.

The Arkansas Gross Receipts Tax Act of 1941, referred to in this section, is codified as §§ 26-52-10126-52-107, 26-52-20126-52-208, 26-52-301, 26-52-303, 26-52-306, 26-52-307, 26-52-401, 26-52-402, 26-52-50126-52-503, 26-52-508, and 26-52-510.

Acts 1979, No. 212, § 1, provided:

“The General Assembly has found and hereby declares that the present provisions of Act No. 763 of the Acts of Arkansas of 1977 (‘Act No. 763’) are unduly restrictive in limiting state assistance to cities and counties issuing bonds to finance tourist entertainment facilities and tourist meeting facilities to assist in the payment of debt service on general obligation bonds of the issuer, that cities and counties can also finance tourist entertainment facilities and tourist meeting facilities with revenue bonds, and that in order to accomplish the public purpose and legislative intent of Act No. 763 it is necessary to amend Act No. 763 to authorize state assistance in the payment of debt service on such revenue bonds.”

Case Notes

Cited: Purvis v. Hubbell, 273 Ark. 330, 620 S.W.2d 282 (1981).

14-171-204 — 14-171-209. [Repealed.]

Publisher's Notes. These sections, concerning application for assistance generally, contents of application, review of application, hearings, determination of eligibility, and determination of additional state sales and income tax revenues from facility, were repealed by Acts 2001, No. 1073, § 3. The sections were derived from the following sources:

14-171-204. Acts 1977, No. 763, § 4; 1979, No. 212, § 3; 1979, No. 569, § 2; A.S.A. 1947, § 19-5504; Acts 1993, No. 164, § 4.

14-171-205. Acts 1977, No. 763, § 4; A.S.A. 1947, § 19-5504.

14-171-206. Acts 1977, No. 763, § 4; A.S.A. 1947, § 19-5504.

14-171-207. Acts 1977, No. 763, § 4; A.S.A. 1947, § 19-5504.

14-171-208. Acts 1977, No. 763, § 4; 1979, No. 212, § 4; 1979, No. 569, § 3; A.S.A. 1947, § 19-5504; Acts 1993, No. 164, §§ 5, 6.

14-171-209. Acts 1977, No. 763, § 4; A.S.A. 1947, § 19-5504.

14-171-210. State assistance.

The payments provided for in this subchapter shall be subject to the approval of and specific appropriation by the General Assembly and shall be for a term of not longer than two (2) years, but may be extended from time to time for additional terms of not to exceed two (2) years each, subject to the approval of and appropriation by the General Assembly.

History. Acts 1977, No. 763, § 4; 1979, No. 212, § 5; 1979, No. 569, § 4; A.S.A. 1947, § 19-5504; Acts 1989, No. 821, § 4; 1993, No. 164, § 7; 1995, No. 1156, § 4; 1997, No. 753, § 4; 2001, No. 1073, § 4.

Publisher's Notes. As to legislative intent of Acts 1979, No. 569, see “Publisher's Notes” to § 14-171-204.

Case Notes

Cited: Purvis v. Hubbell, 273 Ark. 330, 620 S.W.2d 282 (1981).

14-171-211. City-County Tourist Facilities Aid Fund — Creation.

There is created and established on the books of the Treasurer of State, Auditor of State, and Chief Fiscal Officer of the State a fund to be known as the City-County Tourist Facilities Aid Fund.

History. Acts 1977, No. 763, § 5; 1979, No. 212, § 6; 1979, No. 569, § 5; 1983, No. 356, § 1; A.S.A. 1947, § 19-5505.

14-171-212. City-County Tourist Facilities Aid Fund — Transfer of funds.

  1. The Treasurer of State, before making the percentage distributions of general revenues as provided by law, shall deduct from the General Revenue Fund Account of the State Apportionment Fund an amount of moneys necessary to meet the quarterly payments to cities and counties that are associated with the eligible facilities and shall credit them to the City-County Tourist Facilities Aid Fund.
  2. The Treasurer of State shall make no deductions or credits pursuant to this section in any biennium for which the General Assembly has not approved payments under this subchapter and appropriated funds for them.

History. Acts 1977, No. 763, § 5; 1979, No. 212, § 6; 1979, No. 569, § 5; 1983, No. 356, § 1; A.S.A. 1947, § 19-5505; Acts 1993, No. 164, § 8; 1995, No. 1156, § 5; 1997, No. 753, § 5; 2001, No. 1073, § 5.

Amendments. The 1993 amendment in (a), substituted “State Treasurer” for “Treasurer of State,” and inserted “or in the case … of each city and county.”

The 1995 amendment deleted “or, in the case of tourist meeting facilities and tourist entertainment facilities for which the bonds issued to finance the eligible facilities are fully retired or the investment of the city or county of its revenues in the eligible facilities has been repaid with accrued and accruing interest as provided in this subchapter, to the facilities operating board of eligible facilities of each city and county,” preceding “provided that” in (a).

The 1997 amendment made no change in (a).

The 2001 amendment rewrote (a).

14-171-213. [Repealed.]

Publisher's Notes. This section, concerning disbursements of the city-county tourist facilities aid fund, was repealed by Acts 2001, No. 1073, § 6. The section was derived from Acts 1977, No. 763, § 5; 1979, No. 212, § 6; 1979, No. 569, § 5; 1983, No. 356, § 1; A.S.A. 1947, § 19-5505; Acts 1993, No. 164, § 9; 1995, No. 1156, § 6; 1997, No. 753, § 6.

14-171-214. City-County Tourist Facilities Aid Fund — Accounting.

Moneys deposited in the City-County Tourist Facilities Aid Fund shall be accounted for so as to determine that the moneys in it being held are paid to each participating city and county.

History. Acts 1977, No. 763, § 5; 1979, No. 212, § 6; 1979, No. 569, § 5; 1983, No. 356, § 1; A.S.A. 1947, § 19-5505.

14-171-215. Payments to localities.

  1. Payments of state assistance to cities and counties under an agreement with the eligible facilities shall be made as follows:
    1. The Fort Smith Convention Center or its bond trustee shall receive:
      1. One million seven hundred ninety-five thousand eight hundred twenty-seven dollars ($1,795,827) in the fiscal year 2009; and
      2. One million seven hundred seventy-seven thousand four hundred forty-six dollars ($1,777,446) in the fiscal year 2010;
    2. The Texarkana Four States Fair, Inc., or its bond trustee shall receive:
      1. Two hundred thirty-five thousand eight hundred thirty-eight dollars ($235,838) in the fiscal year 2009; and
      2. Two hundred ten thousand six hundred thirty-eight dollars ($210,638) in the fiscal year 2010;
    3. The Hot Springs Advertising and Promotion Commission Convention Center or its bond trustee shall receive:
      1. Two million four hundred fifty-four thousand two hundred thirty dollars ($2,454,230) in the fiscal year 2009;
      2. Two million four hundred fifty-three thousand two hundred thirty dollars ($2,453,230) in the fiscal year 2010;
      3. Two million four hundred fifty-four thousand seven hundred seventy dollars ($2,454,770) in the fiscal year 2011; and
      4. Two million four hundred fifty-four thousand four hundred thirty dollars ($2,454,430) in the fiscal year 2012;
    4. The City of Little Rock Convention and Visitors Bureau or its bond trustee shall receive:
      1. One million nine hundred thirty-eight thousand twenty-two dollars ($1,938,022) in the fiscal year 2009;
      2. One million nine hundred thirty-seven thousand ninety dollars ($1,937,090) in the fiscal year 2010;
      3. One million nine hundred thirty-two thousand five dollars ($1,932,005) in the fiscal year 2011;
      4. One million nine hundred twenty-seven thousand eight hundred seventy-four dollars ($1,927,874) in the fiscal year 2012;
      5. One million nine hundred twenty-one thousand forty-six dollars ($1,921,046) in the fiscal year 2013;
      6. One million nine hundred eighteen thousand two hundred dollars ($1,918,200) in the fiscal year 2014;
      7. One million nine hundred eleven thousand eight hundred thirty-five dollars ($1,911,835) in the fiscal year 2015; and
      8. One hundred fifty-nine thousand two hundred seventy-three dollars ($159,273) in the fiscal year 2016; and
    5. The Arkansas State Fair and Livestock Show Association or its bond trustee shall receive the moneys listed in this subdivision (a)(5), less any general revenues appropriated to the State Fair:
      1. Seven hundred ten thousand three hundred twenty-eight dollars ($710,328) in the fiscal year 2009;
      2. Eight hundred eighty-seven thousand nine hundred eight dollars ($887,908) in the fiscal year 2010;
      3. Eight hundred eighty-seven thousand nine hundred eight dollars ($887,908) in the fiscal year 2011;
      4. Eight hundred eighty-seven thousand nine hundred eight dollars ($887,908) in the fiscal year 2012;
      5. Eight hundred eighty-seven thousand nine hundred eight dollars ($887,908) in the fiscal year 2013;
      6. Eight hundred eighty-seven thousand nine hundred eight dollars ($887,908) in the fiscal year 2014;
      7. Eight hundred eighty-seven thousand nine hundred eight dollars ($887,908) in the fiscal year 2015;
      8. Eight hundred eighty-seven thousand nine hundred eight dollars ($887,908) in the fiscal year 2016;
      9. Eight hundred eighty-seven thousand nine hundred eight dollars ($887,908) in the fiscal year 2017;
      10. Eight hundred eighty-seven thousand nine hundred eight dollars ($887,908) in the fiscal year 2018;
      11. Eight hundred eighty-seven thousand nine hundred eight dollars ($887,908) in the fiscal year 2019;
      12. Eight hundred eighty-seven thousand nine hundred eight dollars ($887,908) in the fiscal year 2020;
      13. Eight hundred eighty-seven thousand nine hundred eight dollars ($887,908) in the fiscal year 2021;
      14. Eight hundred eighty-seven thousand nine hundred eight dollars ($887,908) in the fiscal year 2022;
      15. Eight hundred eighty-seven thousand nine hundred eight dollars ($887,908) in the fiscal year 2023;
      16. Eight hundred eighty-seven thousand nine hundred eight dollars ($887,908) in the fiscal year 2024; and
      17. Eight hundred eighty-seven thousand nine hundred eight dollars ($887,908) in the fiscal year 2025.
    1. The payments provided in subsection (a) of this section are based on expense or debt service schedules in effect on January 1, 2001.
    2. The eligible facilities shall receive the dollar amounts of state assistance by fiscal year, as reflected in subsection (a) of this section, regardless of refinancing, payment, or prepayment of outstanding debt.
    3. The Treasurer of State shall make quarterly payments from the City-County Tourist Facilities Aid Fund to the eligible facilities in accordance with subsection (a) of this section.

History. Acts 1977, No. 763, § 6; 1979, No. 212, § 7; 1979, No. 569, § 6; A.S.A. 1947, § 19-5506; Acts 1993, No. 164, § 10; 1995, No. 1156, § 7; 1997, No. 753, § 7; 2001, No. 1073, § 7; 2003, No. 1757, § 1; 2007, No. 491, § 1; 2009, No. 163, § 3; 2009, No. 690, § 1; 2015, No. 684, § 2; 2019, No. 1006, § 75.

Amendments. The 2003 amendment rewrote (a)(7).

The 2009 amendment by No. 163 rewrote (a) to remove temporary language that has expired.

The 2009 amendment by No. 690 substituted “eight hundred eighty-seven thousand nine hundred eight dollars ($887,908)” for the following amounts in (a)(5)(B) through (a)(5)(H): “Six hundred twenty-one thousand five hundred thirty eight dollars ($621,538)” in (a)(5)(B); “Five hundred thirty-two thousand seven hundred forty-eight dollars ($532,748)” in (a)(5)(C); “Four hundred forty-three thousand nine hundred fifty-eight dollars ($443,958)” in (a)(5)(D); “Three hundred fifty-five thousand one hundred sixty-eight dollars ($355,168)” in (a)(5)(E); “Two hundred sixty-six thousand three hundred seventy-eight dollars ($266,378)” in (a)(5)(F); “One hundred seventy-seven thousand five hundred eighty-eight dollars ($177,588)” in (a)(5)(G); and “Eighty-eight thousand seven hundred ninety-eight dollars ($88,798)” in (a)(5)(H).

The 2015 amendment added (a)(5)(I) through (L).

The 2019 amendment added (a)(5)(M) through (a)(5)(Q).

14-171-216. Suspension of local tax.

Any city or county entering into an agreement pursuant to § 14-171-210 may provide for suspension, in whole or in part, of the collection of any tax voted for payment of its general obligation bonds issued in accordance with an agreement under § 14-171-210 in any year when moneys derived from state assistance under this subchapter or from other sources are available for payment of all, or a portion of, the debt service on the bonds.

History. Acts 1977, No. 763, § 7; A.S.A. 1947, § 19-5507.

14-171-217. Pledge of state revenues prohibited.

  1. Nothing in this subchapter shall be construed as authorizing the pledging of the faith and credit of the state or any of its revenues, either for the performance of the obligations of the state under the agreements authorized by §§ 14-171-204 — 14-171-210 or for the payment of bonds issued pursuant to such agreements.
  2. All payments to cities and counties under agreements entered into in accordance with this subchapter are made subject to specific appropriations for such purpose and nothing in this subchapter, or in any agreement entered into pursuant to this subchapter, shall be construed to require the General Assembly to make any appropriation pursuant to this subchapter, or such agreement, or to prohibit the General Assembly from amending or repealing this subchapter at any time.

History. Acts 1977, No. 763, § 8; A.S.A. 1947, § 19-5508.

14-171-218. Future applicants.

Any applications submitted after January 1, 2001, for state aid for the expansion of eligible facilities or for new facilities shall be submitted to the General Assembly and any appropriation for the expansion or new facility shall be made from the General Improvement Fund or its successor fund or fund accounts, including the Development and Enhancement Fund.

History. Acts 2001, No. 1073, § 8; 2019, No. 82, § 6.

A.C.R.C. Notes. Acts 2019, No. 82, § 1, provided: “Legislative intent.

It is the intent of the General Assembly that the creation of the Development and Enhancement Fund is necessary to provide a mechanism to disburse funds for:

“(1) Various construction and improvement projects;

“(2) Unforeseen needs;

“(3) Funding deficiencies; and

“(4) The completion of projects previously funded by the General Assembly”.

Amendments. The 2019 amendment added “including the Development and Enhancement Fund”.

Chapter 172 Historic Districts

Cross References. Historic preservation, § 13-7-101 et seq.

Subchapter 1 — General Provisions

[Reserved]

Subchapter 2 — Cities and Towns

Cross References. Building Code for historic buildings, § 13-7-110.

Effective Dates. Acts 1977, No. 480, § 14: Mar. 17, 1977. Emergency clause provided: “It is hereby found and determined by the General Assembly that it is desirable that the historical and cultural heritage of the State of Arkansas be preserved; that it is essential that an agency be created to coordinate and supervise authority in preserving the historical and cultural heritage of the State; that this Act is designed to accomplish this purpose and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

Research References

ALR.

Statute or ordinance protecting landmarks. 18 A.L.R.4th 990.

14-172-201. Title.

This subchapter shall be known and may be cited as the “Historic Districts Act.”

History. Acts 1963, No. 484, § 1; A.S.A. 1947, § 19-5001.

Case Notes

Cited: Second Baptist Church ex rel. Buffington Towers Ltd. Partnership v. Little Rock Historic Dist. Comm'n, 293 Ark. 155, 732 S.W.2d 483 (1987).

14-172-202. Purpose.

The purpose of this subchapter is to promote the educational, cultural, economic, and general welfare of the public through the preservation and protection of buildings, sites, places, and districts of historic interest through the maintenance of such as landmarks in the history of architecture of the municipality, of the state, and of the nation, and through the development of appropriate settings for such buildings, places, and districts.

History. Acts 1963, No. 484, § 2; A.S.A. 1947, § 19-5002.

Case Notes

Constitutionality.

This section authorizes the use of historic districts to promote the educational, cultural, and economic welfare of a community, which has been deemed a legitimate use of the police powers by numerous state and federal courts. Second Baptist Church ex rel. Buffington Towers Ltd. Partnership v. Little Rock Historic Dist. Comm'n, 293 Ark. 155, 732 S.W.2d 483 (1987).

14-172-203. Applicability.

None of the provisions of this subchapter shall be in operation until and unless:

  1. There shall have been filed, with the clerk of the city, town, or county in which an historic district is contemplated, a petition signed by a majority in numbers of the property owners within the proposed historic district agreeing that their property shall be included in the historic district; or
  2. The boundaries of the proposed historic district are identical to and encompass the area of a National Register of Historic Places Historic District as certified by the United States Department of the Interior.

History. Acts 1963, No. 484, § 10; 1965, No. 170, § 2; 1979, No. 371, § 1; A.S.A. 1947, § 19-5010; Acts 1993, No. 194, § 1.

Amendments. The 1993 amendment substituted “with the clerk of the city, town, or county” for “with the city clerk for the city or town” in (1).

14-172-204. Penalty.

  1. Any person who violates any of the provisions of this subchapter shall be guilty of a misdemeanor and, upon conviction, shall be fined not less than ten dollars ($10.00) nor more than five hundred dollars ($500).
  2. Each day that a violation continues to exist shall constitute a separate offense.

History. Acts 1963, No. 484, § 11; A.S.A. 1947, § 19-5011.

14-172-205. Enforcement.

The chancery court having jurisdiction over the property in question shall have jurisdiction in equity to enforce the provisions of this subchapter in the rulings issued under it and may restrain by injunction violations of it.

History. Acts 1963, No. 484, § 10; 1965, No. 170, § 2; 1979, No. 371, § 1; A.S.A. 1947, § 19-5010.

14-172-206. Historic district commissions.

    1. An historic district commission shall consist of no less than five (5) members nor more than nine (9) members.
      1. When the district is located within the boundaries of any city or incorporated town, the commission members shall:
        1. Be appointed by the mayor, subject to confirmation by the governing body of the city;
        2. Be electors of the municipality; and
        3. Hold no salaried or elective municipal office.
      2. When a district is located outside the boundaries of any city or incorporated town, the commission members shall:
        1. Be appointed by the county judge subject to confirmation by the quorum court;
        2. Be electors of the county; and
        3. Hold no salaried or elective county office.
      1. The appointments to membership on the commission shall be so arranged that the term of at least one (1) member will expire each year, and their successors shall be appointed in a like manner for terms of three (3) years.
      2. Vacancies shall be filled in like manner for the unexpired term.
  1. All members shall serve without compensation.
  2. The commission shall elect a chairman and vice chairman annually from its own number.
  3. The commission may adopt rules and regulations not inconsistent with the provisions of this subchapter and may, subject to appropriation, employ clerical and technical assistants or consultants and may accept money, gifts, or grants and use them for these purposes.

History. Acts 1963, No. 484, § 4; A.S.A. 1947, § 19-5004; Acts 1993, No. 194, § 2.

Amendments. The 1993 amendment rewrote (a)(1).

14-172-207. Establishment of historic districts.

By ordinance adopted by vote of the governing body thereof, any city, town, or county may establish historic districts and may make appropriations for the purpose of carrying out the provisions of this subchapter, subject to the following provisions:

      1. An historic district commission, established as provided in § 14-172-206, shall make an investigation and report on the historic significance of the buildings, structures, features, sites, or surroundings included in any such proposed historic district and shall transmit copies of its report to the Arkansas Historic Preservation Program, a division of the Division of Arkansas Heritage, to the planning commission of the municipality or county, if any, and in the absence of such commission, to the governing body of the municipality or county for its consideration and recommendation.
      2. Each such body or individual shall give its recommendation to the historic district commission within sixty (60) days from the date of receipt of the report.
      1. Recommendations shall be read in full at the public hearing to be held by the commission as specified in this section.
      2. Failure to make recommendations within sixty (60) days after the date of receipt shall be taken as approval of the report of the commission;
    1. The commission shall hold a public hearing on the establishment of a proposed historic district after giving notice of the hearing by publication in a newspaper of general circulation in the municipality or county once a week for three (3) consecutive weeks, the first such publication to be at least twenty (20) days prior to the public hearing.
    2. The notice shall include the time and place of the hearing, specify the purpose, and describe the boundaries of the proposed historic district;
    1. The commission shall submit a final report with its recommendations and a draft of a proposed ordinance to the governing body of the municipality or county within sixty (60) days after the public hearing.
    2. The report shall contain the following:
      1. A complete description of the area or areas to be included in the historic district. Any single historic district may embrace noncontiguous lands;
      2. A map showing the exact boundaries of the area to be included within the proposed district;
      3. A proposed ordinance designed to implement the provisions of this subchapter; and
      4. Such other matters as the commission may deem necessary and advisable;
  1. The governing body of the municipality or county, after reviewing the report of the commission, shall take one (1) of the following steps:
    1. Accept the report of the commission and enact an ordinance to carry out the provisions of this subchapter;
    2. Return the report to the commission, with such amendments and revisions thereto as it may deem advisable, for consideration by the commission and a further report to the governing body of the municipality or county within ninety (90) days of such return; or
    3. Reject the report of the commission, stating its reasons therefor, and discharge the commission; and
  2. The commission established under the provisions of this subchapter, by following the procedures set out in subdivisions (2) to (4), inclusive, of this section, may, from time to time, suggest proposed amendments to any ordinance adopted under this section or suggest additional ordinances to be adopted under this section.

History. Acts 1963, No. 484, § 3; 1965, No. 170, § 1; 1977, No. 480, § 11; A.S.A. 1947, § 19-5003; Acts 1993, No. 194, § 3; 2019, No. 910, § 5621.

Amendments. The 1993 amendment inserted “or county” following “town” in the introductory language; in (1)(A)(i), inserted “or county” twice and substituted “its” for “their” preceding “consideration”; inserted “or county” in (2)(A), (3)(A), the introductory language of (4), and in (4)(B); and made minor punctuation changes.

The 2019 amendment substituted “Division of Arkansas Heritage” for “Department of Arkansas Heritage” in (1)(A)(i).

Case Notes

Commission.

In order to avail itself of this subchapter, a municipality must take measures to form an historic district commission to act upon requests for certificates of appropriateness to build, destroy, or modify structures within an historic district. Second Baptist Church ex rel. Buffington Towers Ltd. Partnership v. Little Rock Historic Dist. Comm'n, 293 Ark. 155, 732 S.W.2d 483 (1987).

14-172-208. Certificate of appropriateness required — Definition.

    1. No building or structure, including stone walls, fences, light fixtures, steps, and paving or other appurtenant fixtures, shall be erected, altered, restored, moved, or demolished within an historic district until after an application for a certificate of appropriateness as to exterior architectural features has been submitted to and approved by the historic district commission. The municipality or county shall require a certificate of appropriateness to be issued by the commission prior to the issuance of a building permit or other permit granted for purposes of constructing or altering structures. A certificate of appropriateness shall be required whether or not a building permit is required.
    2. For purposes of this subchapter, “exterior architectural features” shall include the architectural style, general design, and general arrangement of the exterior of a structure, including the kind and texture of the building material and the type and style of all windows, doors, light fixtures, signs, and other appurtenant fixtures.
  1. The style, material, size, and location of outdoor advertising signs and bill posters within an historic district shall also be under the control of the commission.

History. Acts 1963, No. 484, § 5; A.S.A. 1947, § 19-5005; Acts 1993, No. 194, § 4.

Amendments. The 1993 amendment inserted “or county” in the second sentence of (a)(1).

Case Notes

Cited: Second Baptist Church ex rel. Buffington Towers Ltd. Partnership v. Little Rock Historic Dist. Comm'n, 293 Ark. 155, 732 S.W.2d 483 (1987).

14-172-209. Determination on application for certificate.

  1. Within a reasonable time, not to exceed thirty (30) days after the filing of an application for a certificate of appropriateness with the historic district commission, the commission shall determine the property to be materially affected by the application and immediately send by mail, postage prepaid, to the applicant and to the owners of all such properties to be materially affected notice of the hearing to be held by the commission on the application.
    1. The commission may hold such public hearings as are necessary in considering any applications for certificates of appropriateness.
    2. The commission shall act on an application for certificate of appropriateness within a reasonable period of time.
    3. The commission shall determine whether the proposed construction, reconstruction, alteration, restoration, moving, or demolition of buildings, structures, or appurtenant fixtures involved will be appropriate to the preservation of the historic district for the purposes of this subchapter, or whether, notwithstanding that it may be inappropriate, owing to conditions especially affecting the structure involved, but not affecting the historic district generally, failure to issue a certificate of appropriateness will involve a substantial hardship, financial or otherwise, to the applicant, and whether the certificate may be issued without substantial detriment to the public welfare and without substantial derogation from the intent and purpose of this subchapter.
    1. If the commission determines that the proposed construction, reconstruction, alteration, restoration, moving, or demolition is appropriate or is not appropriate, owing to conditions as aforesaid, but that failure to issue a certificate of appropriateness would involve substantial detriment or derogation as aforesaid, or if the commission fails to make a determination within a reasonable time prescribed by ordinance, the commission shall forthwith approve the application and shall issue to the applicant a certificate of appropriateness.
    2. If the commission determines that a certificate of appropriateness should not be issued, it shall place upon its records the reasons for the determination and may include recommendations respecting the proposed construction, reconstruction, alteration, restoration, moving, or demolition.
    3. The commission shall immediately notify the applicant of the determination.

History. Acts 1963, No. 484, § 7; A.S.A. 1947, § 19-5007.

Research References

Ark. L. Rev.

Watkins, Open Meetings Under the Arkansas Freedom of Information Act, 38 Ark. L. Rev. 268.

Case Notes

Prohibitions.

—In General.

An historic district commission may prohibit a particular use of property within a district in order to develop an appropriate setting for historical buildings if that use is obviously incongruous with the historic nature of the district. Second Baptist Church ex rel. Buffington Towers Ltd. Partnership v. Little Rock Historic Dist. Comm'n, 293 Ark. 155, 732 S.W.2d 483 (1987).

—Parking Lots.

Commission's decision that a parking lot at a particular location would be obviously incongruous with the historical aspects of the district held to be a valid exercise of a legitimate state interest and did not violate petitioners' right to equal protection. Second Baptist Church ex rel. Buffington Towers Ltd. Partnership v. Little Rock Historic Dist. Comm'n, 293 Ark. 155, 732 S.W.2d 483 (1987).

Property Interest.

Plaintiffs had no constitutionally protected property interest in the approval of their application for certificate of appropriateness. Roy v. City of Little Rock, 902 F. Supp. 871 (E.D. Ark. 1995).

Given that the commission's approval of an application for a certificate of appropriateness is discretionary, i.e., is not required upon the satisfaction of some rigid statutory framework, it followed that plaintiffs did not possess a legitimate claim of entitlement to certificate of appropriateness they sought; at most they had an expectation of receiving approval of their application. Roy v. City of Little Rock, 902 F. Supp. 871 (E.D. Ark. 1995).

14-172-210. Certain changes not prohibited.

Nothing in this subchapter shall be construed to prevent the ordinary maintenance or repair of any exterior architectural feature in the historic district which does not involve a change in design, material, color, or outer appearance thereof; nor to prevent the construction, reconstruction, alteration, restoration, or demolition of any such feature which the building inspector, or similar agent, shall certify is required for the public safety because of an unsafe or dangerous condition; nor to prevent the construction, reconstruction, alteration, restoration, or demolition of any such feature under a permit issued by a building inspector, or similar agent, prior to the effective date of the establishment of the historic district.

History. Acts 1963, No. 484, § 8; A.S.A. 1947, § 19-5008.

14-172-211. Interior architectural features.

In its deliberations under this subchapter, the historic district commission shall not consider interior arrangement or use and shall take no action under this subchapter except for the purpose of preventing the construction, reconstruction, alteration, restoration, moving, or demolition of buildings, structures, or appurtenant fixtures in the historic district obviously incongruous with the historic aspects of the district.

History. Acts 1963, No. 484, § 6; A.S.A. 1947, § 19-5006.

Case Notes

Cited: Second Baptist Church ex rel. Buffington Towers Ltd. Partnership v. Little Rock Historic Dist. Comm'n, 293 Ark. 155, 732 S.W.2d 483 (1987).

14-172-212. Appeal from decision.

    1. Any applicant aggrieved by the determination of the historic district commission, within thirty (30) days after the making of the decision, may appeal to the chancery court of the county wherein the property is located.
    2. The court shall hear all pertinent evidence and shall annul the determination of the commission if it finds the reasons given for the determination to be unsupported by the evidence or to be insufficient in law and may make such other decree as justice and equity may require.
  1. The remedy provided by this section shall be exclusive; but the applicant shall have all rights of appeal as in other equity cases.

History. Acts 1963, No. 484, § 9; A.S.A. 1947, § 19-5009.

Case Notes

Affirmation.

Chancellor's finding that the commission's action was not arbitrary, capricious, and unreasonable was not clearly against the preponderance of the evidence and must be affirmed. Second Baptist Church ex rel. Buffington Towers Ltd. Partnership v. Little Rock Historic Dist. Comm'n, 293 Ark. 155, 732 S.W.2d 483 (1987).

Cited: Roy v. City of Little Rock, 902 F. Supp. 871 (E.D. Ark. 1995).

Chapter 173 Economic Development Grants

Effective Dates. Acts 1989, No. 405, § 8: Mar. 8, 1989. Emergency clause provided: “It is hereby found and determined by the Seventy-Seventh General Assembly of the State of Arkansas that economic development efforts are best accomplished with the maximum investment of monies at all levels of government and not just by state government; that it is uncertain whether or not local governments in Arkansas are authorized by law to expend local revenues for economic development purposes; and therefore the state needs to provide a legal mechanism to permit and to encourage local governments to become involved in economic development efforts. Therefore, in order to best address the legal uncertainty and at the same time encourage local governments to involve themselves in economic development efforts to provide jobs for their citizens, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health, and safety, shall be in full force and effect from and after its passage and approval.”

14-173-101. Title.

This chapter shall be known and cited as the “City and County Economic Development Grant Authorization Act”.

History. Acts 1989, No. 405, § 1.

14-173-102. Definitions.

As used in this chapter, unless the context otherwise requires:

  1. “City” means any city of the first class, any city of the second class, or any incorporated town established by the laws of the State of Arkansas;
  2. “County” means any county in the State of Arkansas;
  3. “Economic development grant program” means a governmental program to award grants to nonprofit corporations to encourage the location, relocation, creation, or development of a business, industry, manufacturing facility, transportation facility, or other economic unit which creates jobs, employs people, or generates economic activity;
  4. “Grant” means an award or transfer of public funds to a nonprofit corporation under a set of prescribed criteria to accomplish the public purpose of economic development in the city or in the county or in their surrounding areas; and
  5. “Grantee” means the nonprofit corporation to whom the grant is awarded based on the prescribed criteria for awarding the funds under the establishing ordinance.

History. Acts 1989, No. 405, § 2.

14-173-103. Authority to establish programs.

  1. The governing body of any city or the quorum court of any county in Arkansas shall be authorized under this subchapter to establish by ordinance a program for the awarding of grants to any nonprofit corporation, organization, or association to aid or assist or otherwise promote economic development in the city or the county or in their surrounding areas.
  2. The grants shall be paid from funds appropriated by the governing body of the city or the quorum court for the economic development grant program authorized by this subchapter.

History. Acts 1989, No. 405, § 3.

14-173-104. Grant ordinance.

The city or county economic development grant ordinance shall:

  1. Provide for the mayor or county judge or a designee to administer the grant program authorized under this subchapter;
  2. Require the mayor or county judge to take the necessary action to ensure that the funds are used for the purposes for which the grant is to be awarded and that they are expended in accordance with all state laws and local ordinances and other local procedures and regulations of the awarding government;
  3. Specify the procedure for receiving applications for grants, who is eligible to apply for grants, the economic development goals and objectives of the city or county economic development grant program, and the procedures for awarding the grants; and
  4. Require the grantee to file a report with the governing body of the city or the quorum court of the county within thirty (30) days after the end of the calender year in which the grant is awarded, explaining the exact amount of expenditures of the grant funds, the purpose for which the grant fund was awarded and expended, and the economic development goals and objectives that were accomplished as a result of the expenditure of the grant funds.

History. Acts 1989, No. 405, § 4.

14-173-105. Application and award.

  1. The mayor or county judge or a designee shall promulgate the forms to be used in applying for the city or county economic development grant.
  2. All applications shall be submitted as required by the establishing ordinance.
  3. After receipt of the application, the mayor or county judge or a designee shall review the economic development grant applications and shall select the applications by rank order which will best fulfill the economic goals and objectives of the economic development grant program as described by the enabling ordinance. The mayor or county judge or a designee shall then award the economic development grants to the grant applicants based on their rank order on the list of grant applications.
  4. The grants may be awarded until all funds appropriated by the governing body of the city or the county quorum court for grants have been expended.

History. Acts 1989, No. 405, § 5.

Chapter 174 Economic Development Tax

Effective Dates. Acts 1993, Nos. 1012 and 1069, § 12: Apr. 12, 1993. Emergency clause provided: “It is hereby found and determined by the General Assembly that unemployment and economic underdevelopment has reached intolerable levels in certain portions of this state and the state as a whole has been unable to compete with other state's incentive programs for economic development; and that the incentives afforded by this Act are critical to the development and expansion of job opportunities in the state. Therefore, an emergency is hereby declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall be in full force and effect from and after its passage and approval.”

Acts 2009, No. 1480, § 117: Apr. 10, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act makes various revisions to Arkansas election laws that are designed to improve the administration of elections and special elections and that these revisions should be implemented as soon as possible so that the citizens of this state may benefit from improved election procedures. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2017, No. 686, § 6: Mar. 27, 2017. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the state has been disadvantaged by its inability to effectively compete for economic development projects and economic development services; that attracting and developing economic development projects and economic development services would significantly benefit the economic development of the state by providing increased payrolls, job opportunities, and tax income; that the citizens of the state recognized the missed opportunities caused by this competitive disadvantage by overwhelmingly approving Arkansas Constitution, Amendment 97; and that this act is immediately necessary to effectuate the will of the citizens of Arkansas and to position the state to act expeditiously in securing economic development projects and economic development services. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

14-174-101. Purpose.

The purpose of this subchapter is to provide cities and counties with the authority to levy taxes to raise revenue for funding economic development projects to stimulate the local economy and to support private sector job creation opportunities. No funds generated by any tax levied pursuant to this subchapter shall be used as general operating revenue, but shall be expended for the purposes prescribed by §§ 14-174-10514-174-107 or § 14-174-109.

History. Acts 1993, No. 1012, § 1; 1993, No. 1069, § 1; 2005, No. 1372, § 1.

Amendments. The 2005 amendment added “or § 14-174-109” at the end.

14-174-102. Definitions.

As used in this subchapter, unless the context otherwise requires:

  1. “County” means each of the counties of this state;
  2. “Municipality” and “city” mean any city or incorporated town in this state; and
  3. [Repealed.]
  4. “Local government” means city or county.

History. Acts 1993, No. 1012, § 2; 1993, No. 1069, § 2; 2019, No. 910, § 3393.

Amendments. The 2019 amendment repealed (3).

14-174-103. Levy of new taxes permitted.

    1. In addition to all other authority of local governments to levy taxes provided by law, any county, acting through its quorum court, or any municipality, acting through its governing body, may levy any tax.
      1. However, no ordinance levying any tax authorized by this subchapter shall be valid until adopted at a special election in accordance with § 7-11-201 et seq. by qualified electors of the city or in the county where the tax is to be imposed, as the case may be.
      2. An election will also be required to increase, decrease, or repeal a tax levied pursuant to this subchapter.
  1. Nothing in this subchapter shall be construed to diminish the existing powers of county governments or city governments.
  2. Nothing in this subchapter shall terminate, repeal, or otherwise affect any other tax levied by a local government.
  3. The local government levying the tax shall collect and administer the tax.

History. Acts 1993, No. 1012, § 3; 1993, No. 1069, § 3; 2005, No. 2145, § 48; 2007, No. 1049, § 69; 2009, No. 1480, § 88.

Amendments. The 2005 amendment redesignated former (a) as present (a)(1), and added (a)(2).

The 2009 amendment substituted “§ 7-11-201 et seq.” for “§ 7-5-103(b)” in (a)(2)(A).

14-174-104. Levy of sales and use taxes currently authorized.

  1. The local government may levy a sales or use tax pursuant to any other currently existing statutory authority to levy the tax and provide that the proceeds generated by the tax are to be used for any purpose authorized by this subchapter.
  2. The Department of Finance and Administration will administer and collect any sales or use tax levied under this section if the Department of Finance and Administration would have administered and collected the tax had the tax been levied solely pursuant to the primary statutory authority to levy the tax. The primary statutory authority to levy the tax is the statute upon which the local government relied for levying the tax, not this subchapter.

History. Acts 1993, No. 1012, § 4; 1993, No. 1069, § 4.

14-174-105. Disposition of funds — Definitions.

  1. As used in this section:
    1. “Economic development project” means the land, buildings, furnishings, equipment, facilities, infrastructure, and improvements that are required or suitable for the development, retention, or expansion of:
      1. Manufacturing, production, and industrial facilities;
      2. Research, technology, and development facilities;
      3. Recycling facilities;
      4. Distribution centers;
      5. Call centers;
      6. Warehouse facilities;
      7. Job training facilities;
      8. Regional or national corporate headquarters facilities; and
      9. Sports complexes designed to host local, state, regional, and national competitions, including without limitation baseball, softball, and other sports tournaments;
    2. “Economic development service” means:
      1. Planning, marketing, and strategic advice and counsel regarding job recruitment, job development, job retention, and job expansion;
      2. Supervision and operation of industrial parks or other such properties; and
      3. Negotiation of contracts for the sale or lease of industrial parks or other such properties; and
    3. “Infrastructure” means:
      1. Land acquisition;
      2. Site preparation;
      3. Road and highway improvements;
      4. Rail spur, railroad, and railport construction;
      5. Water service;
      6. Wastewater treatment;
      7. Employee training, which may include equipment for such purpose; and
      8. Environmental mitigation or reclamation.
  2. The taxes levied under this subchapter may be utilized:
    1. For construction, reconstruction, demolition, site development, contracts, and related costs associated with the creation, expansion, and rehabilitation of water or sewer systems, streets and roads, bridges, drainage, and other vital public facilities;
    2. To establish and operate local economic development programs;
    3. To obtain or appropriate money for a corporation, association, institution, or individual to:
      1. Finance an economic development project; or
      2. Provide economic development services; and
    4. As a pledge to secure the issuance of bonds under the Local Government Bond Act of 1985, § 14-164-301 et seq., by a municipality, a county, or a corporation organized under the Public Corporations for Economic Development Act, § 14-175-101 et seq.

History. Acts 1993, No. 1012, § 5; 1993, No. 1069, § 5; 2017, No. 686, § 2; 2019, No. 1072, § 4.

A.C.R.C. Notes. Acts 2017, No. 686, § 1, provided: “Legislative findings and intent.

“(a) The General Assembly finds that economic development would be enhanced if tax funds authorized under § 14-174-103 were permitted to be used for the full extent of the economic development purposes authorized under Arkansas Constitution, Amendment 62, and Arkansas Constitution, Amendment 97.

“(b) The General Assembly intends for this act to permit economic development tax funds to be used for the purposes authorized under Arkansas Constitution, Amendment 62, and Arkansas Constitution, Amendment 97.”

Amendments. The 2017 amendment rewrote the section.

The 2019 amendment added (a)(1)(I).

14-174-106. Public facilities.

To secure, develop, preserve, and maintain the local economy, local governments are authorized to own, acquire, construct, reconstruct, extend, equip, improve, operate, maintain, sell, lease, contract concerning, or otherwise deal in or dispose of any facility. For the purposes of this section, “facility” means land, interests in land, buildings, furnishings, machinery, equipment, or related improvements necessary or useful for the securing, developing, preserving, or maintaining of economic activity within or near the municipality or county.

History. Acts 1993, No. 1012, § 6; 1993, No. 1069, § 6.

14-174-107. Services.

To secure professional economic and industrial development management expertise, local governments are authorized to contract for such services with a community-based not-for-profit economic development corporation. For the purposes of this section, “management” means economic and industrial development planning, marketing, advertising, public relations, supervision and operation of industrial parks or other such properties, negotiation of contracts for the sale or lease of such properties, and such other operating expenses as the governing body may deem necessary, convenient, or appropriate. A “community-based not-for-profit economic development corporation” means an organization formed for the same or similar purposes as those contained in this subchapter, which may be a chamber of commerce, industrial development corporation, or similar corporation.

History. Acts 1993, No. 1012, § 7; 1993, No. 1069, § 7.

14-174-108. Joint agreements.

Any two (2) or more local governments within a single county, or any two (2) or more adjacent counties, may enter into agreements to jointly perform any power granted under this subchapter.

History. Acts 1993, No. 1012, § 8; 1993, No. 1069, § 8.

14-174-109. Public corporation for economic development.

  1. The sales and use taxes levied or authorized under this subchapter may be used for the sole use and benefit of a corporation organized under the Public Corporations for Economic Development Act, § 14-175-101 et seq.
    1. On receipt from the Secretary of the Department of Finance and Administration of the net proceeds of the sales and use tax levied or authorized under this subchapter, the local government shall deliver all of the proceeds to the corporation to use in carrying out its functions.
    2. However, if the sales and use taxes levied under this subchapter are pledged to secure the issuance of bonds by a corporation under § 14-174-105(b)(4), upon approval by resolution of the corporation, the local government shall hold the proceeds separate and apart in trust, as directed by the corporation.
  2. At an election called and held under § 14-174-103, the local government may also allow the voters to vote on a ballot proposition that limits the length of time that a sales and use tax may be imposed.

History. Acts 2005, No. 1372, § 2; 2017, No. 686, § 3; 2019, No. 910, § 3394.

A.C.R.C. Notes. Acts 2017, No. 686, § 1, provided: “Legislative findings and intent.

“(a) The General Assembly finds that economic development would be enhanced if tax funds authorized under § 14-174-103 were permitted to be used for the full extent of the economic development purposes authorized under Arkansas Constitution, Amendment 62, and Arkansas Constitution, Amendment 97.

“(b) The General Assembly intends for this act to permit economic development tax funds to be used for the purposes authorized under Arkansas Constitution, Amendment 62, and Arkansas Constitution, Amendment 97.”

Amendments. The 2017 amendment added (b)(2).

The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (b)(1).

Chapter 175 Public Corporations for Economic Development Act

Effective Dates. Acts 2017, No. 686, § 6: Mar. 27, 2017. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the state has been disadvantaged by its inability to effectively compete for economic development projects and economic development services; that attracting and developing economic development projects and economic development services would significantly benefit the economic development of the state by providing increased payrolls, job opportunities, and tax income; that the citizens of the state recognized the missed opportunities caused by this competitive disadvantage by overwhelmingly approving Arkansas Constitution, Amendment 97; and that this act is immediately necessary to effectuate the will of the citizens of Arkansas and to position the state to act expeditiously in securing economic development projects and economic development services. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

14-175-101. Title.

This chapter shall be known and may be cited as the “Public Corporations for Economic Development Act”.

History. Acts 2005, No. 1372, § 3.

A.C.R.C. Notes. Arkansas Nonprofit Corporation Act of 1993, see also § 4-33-101 et seq.

14-175-102. Intent.

It is the intent of the General Assembly by the enactment of this chapter to authorize in each municipality and county in this state the incorporation of a public corporation as a political subdivision of the state for the purpose of securing and developing industry and fostering economic development and to invest the corporation with all powers that may be necessary to enable it to accomplish those purposes.

History. Acts 2005, No. 1372, § 3.

14-175-103. Definitions.

As used in this chapter:

  1. “Board” means the board of directors of a corporation;
  2. “Corporation” means a corporation organized under this chapter;
    1. “Costs” means expenditures made or estimated to be made and monetary obligations incurred or estimated to be incurred by a corporation.
    2. “Costs” includes, but is not limited to:
      1. Real property assembly costs, including, but not limited to, those costs incurred for and in connection with the acquisition of interests in real property and improvements and any deficit incurred as a result of the sale or lease as lessor by the corporation of real or personal property or a project for consideration which is less than its cost to the corporation;
      2. Capital costs, including, but not limited to:
        1. The actual costs of the construction of new buildings, structures, and fixtures;
        2. The demolition, alteration, expansion, remodeling, repair, or reconstruction of existing buildings, structures, and fixtures and the environmental remediation of real property;
        3. Parking;
        4. Landscaping;
        5. The acquisition of equipment; and
        6. Site clearing, grading, and preparation;
      3. Financing costs, including, but not limited to:
        1. All interest paid to holders of evidences of indebtedness issued to pay for project costs;
        2. All costs of issuance; and
        3. Any redemption premiums, credit enhancement, or other related costs;
      4. Research and development costs;
      5. Professional service costs, including, but not limited to, those costs incurred for architectural, planning, engineering, accounting, and legal advice and services;
      6. Relocation costs;
      7. Organizational and administrative costs incurred by the corporation, including, but not limited to, the costs of:
        1. Conducting feasibility studies, environmental impact studies, and other studies; and
        2. Informing the public with respect to a project;
      8. The amount of any contributions made in connection with a project; and
      9. Costs related to the construction of environmental protection devices, storm or sanitary sewer lines, water lines, or amenities or streets or the rebuilding or expansion of streets in connection with a project;
  3. “County” means any county in this state;
  4. “Enterprise” means any for-profit or nonprofit corporation, partnership, sole proprietorship, firm, franchise, association, organization, or trust, or any other form of legal entity;
  5. “Governing body” means the council, board of directors, or other like body in which the legislative functions of a municipality are vested or the quorum court of the county as it has been constituted and acting as the legislative body of the county under Arkansas Constitution, Amendment 55, or if not so constituted and acting, the county court of the county;
  6. “Municipality” means any incorporated city or town in this state;
  7. “Primary job” means a job that is available or expected to become available at an enterprise:
    1. For which a majority of the products or services of that enterprise are ultimately used in regional, statewide, national, or international markets infusing new dollars into the local economy; and
    2. That derives less than ten percent (10%) of its total Arkansas revenue from sales to the general public;
    1. “Project” means an undertaking related to the creation or retention of primary jobs.
    2. A project may include one (1) or more of the following:
      1. The acquisition and disposition of land, buildings, equipment, facilities, related infrastructure, and improvements necessary to:
        1. Attract, promote, or develop new or expanded enterprises that will create or retain primary jobs in the future; or
        2. Provide job training and postsecondary education required or suitable for the creation or retention of primary jobs;
      2. The construction or expansion of buildings, facilities, related infrastructure, and improvements necessary to attract, promote, or develop new or expanded enterprises that will create or retain primary jobs in the future or to provide job training and postsecondary education required or suitable for the creation or retention of primary jobs;
      3. Job training required or suitable for the creation or retention of primary jobs;
      4. Postsecondary education required or suitable to educate students in fields of study needed by enterprises providing primary jobs; and
      5. Expenditures found by the corporation to be required or suitable for infrastructure necessary to attract, promote, or develop new or expanded enterprises, limited to:
        1. Streets and roads;
        2. Parking;
        3. Rail spurs;
        4. Water and electric utilities;
        5. Gas utilities;
        6. Drainage and related improvements;
        7. Telecommunications;
        8. Data communications; and
        9. Internet improvements; and
  8. “State” means the State of Arkansas.

History. Acts 2005, No. 1372, § 3.

14-175-104. Construction.

  1. This chapter shall be liberally construed in conformity with its intent.
    1. All acts and activities of the public corporation performed under the authority of this chapter are legislatively determined and declared to be essential governmental functions.
    2. The General Assembly determines and declares that this chapter is the sole authority necessary for the performance of the acts authorized by this chapter.

History. Acts 2005, No. 1372, § 3.

14-175-105. Authority generally.

There is conferred upon corporations incorporated as public corporations under this chapter the authority to take such action and to do or cause to be done such things as shall be necessary or desirable to accomplish and implement the purposes and intent of this chapter according to the import of this chapter.

History. Acts 2005, No. 1372, § 3.

14-175-106. Authority and procedure to incorporate.

  1. Whenever any number of natural persons, but not fewer than three (3), files with the governing body an application in writing for authority to incorporate a public corporation under this chapter, if it is made to appear to the governing body that each of the persons is a duly qualified elector of the municipality or county creating the corporation and if the governing body adopts a resolution that declares that it will be wise, expedient, and necessary that a public corporation be formed and that the persons filing the application may proceed to form a corporation, then the persons shall become the incorporators of and shall proceed to incorporate the corporation in the manner provided in this chapter.
  2. No corporation shall be formed under this chapter unless:
    1. The application provided for in this section is made; and
    2. The resolution provided for in this section is adopted.
  3. No county or municipality may authorize more than one (1) corporation under this chapter.

History. Acts 2005, No. 1372, § 3.

14-175-107. Articles of incorporation.

  1. The articles of incorporation of the corporation shall state:
    1. The names of the persons forming the corporation, together with the residence of each person forming the corporation, and a statement that each person is a qualified elector of the municipality or county;
    2. The name of the corporation, which shall be:
      1. “The Economic Development Corporation of [City], Arkansas”;
      2. “The Economic Development Corporation of [Town], Arkansas”;
      3. “The Economic Development Corporation of [County], Arkansas”; or
      4. Some other name of similar import; and
    3. Any other matters relating to the corporation required by the Arkansas Nonprofit Corporation Act of 1993, § 4-33-101 et seq., or that the incorporators may choose to insert, and which are not inconsistent with this chapter or with the laws of this state.
    1. The form and content of the articles of incorporation shall be submitted to the governing body for its approval.
    2. The governing body shall evidence approval by a resolution entered upon the minutes of the governing body.

History. Acts 2005, No. 1372, § 3.

14-175-108. Execution and recording of articles.

  1. The articles of incorporation shall be signed and acknowledged by the incorporators and shall have attached to them a certified copy of the resolution required by § 14-175-107.
    1. The articles of incorporation, together with a certified copy of the resolution required by § 14-175-107, shall be filed in the location or locations required by the Arkansas Nonprofit Corporation Act of 1993, § 4-33-101 et seq.
    2. When the articles of incorporation and attached resolution have been so filed, the corporation referred to in the articles shall come into existence and shall constitute a body corporate and politic and a political subdivision of the state under the name set forth in the articles of incorporation, whereupon the corporation shall be vested with the rights and powers granted in this chapter.

History. Acts 2005, No. 1372, § 3.

14-175-109. Board of directors.

  1. The corporation shall have a board of directors composed of five (5) to fifteen (15) members, as specified in the corporation's articles of incorporation.
  2. All powers of the corporation shall be exercised by the board or pursuant to its authorization.
      1. The directors shall be residents of the municipality or county creating the corporation and shall be appointed by the mayor of the creating municipality or the county judge of the creating county, subject to confirmation by the governing body of the municipality or county.
      2. The directors shall serve terms not exceeding five (5) years as determined by the governing body of the municipality or county and set in such manner as will result in the expiration of terms on a staggered basis.
    1. Upon the expiration of a director's term, a successor director shall be appointed for a five-year term by the mayor of the creating municipality or the county judge of the creating county, subject to confirmation by the governing body of the municipality or county.
    2. Each director shall serve until his or her successor is elected and qualified.
    3. A director shall be eligible to succeed himself or herself.
    4. In the event of a vacancy in the membership of the board, however caused, a director shall be appointed by the mayor of the creating municipality or the county judge of the creating county, subject to confirmation by the governing body of the municipality or county.
  3. Each director shall qualify by taking and filing with the clerk of the municipality or county creating the corporation the oath of office in which the member shall swear to support the United States Constitution and the Arkansas Constitution and to discharge faithfully his or her duties in the manner provided by law.
  4. A director shall receive no compensation for his or her services but shall be entitled to reimbursement for reasonable and necessary expenses incurred in the performance of his or her duties.
  5. After reasonable notice of and an opportunity to be heard concerning the alleged grounds for removal, the mayor of the municipality or the county judge of the county which created the board may remove any director for misfeasance, malfeasance, or willful neglect of duty.
    1. A majority of the members of the board shall constitute a quorum for the transaction of business.
    2. No vacancy in the membership of the board shall impair the right of a quorum to exercise all the powers and duties of the corporation.

History. Acts 2005, No. 1372, § 3; 2009, No. 1271, § 1.

Amendments. The 2009 amendment in (a) inserted “to fifteen (15)” and “as specified in the corporation's articles of incorporation,” and made a related change.

14-175-110. Officers.

    1. The officers of the corporation shall consist of:
      1. A chair;
      2. A vice chair;
      3. A secretary;
      4. A treasurer; and
      5. Such other officers as the board shall deem necessary to accomplish the purposes for which the corporation was organized.
    2. The offices of secretary and treasurer may be held, but need not be held, by the same person.
    1. The chair and vice chair of the corporation shall be elected by the board from its membership.
    2. The secretary, the treasurer, and any other officers of the corporation who may be, but need not be, members of the board shall also be elected by the board.

History. Acts 2005, No. 1372, § 3.

14-175-111. Powers generally.

  1. The corporation shall have and exercise all of the rights, powers, privileges, authority, and functions given by the general laws of this state to nonprofit corporations incorporated under the Arkansas Nonprofit Corporation Act of 1993, § 4-33-101 et seq.
  2. In addition to the rights, powers, privileges, authority, and functions authorized under subsection (a) of this section, the corporation shall have the following powers with respect to projects, together with all powers incidental to those powers or necessary for the performance of those powers set forth in this subsection:
    1. To receive sales and use taxes levied under § 14-174-101 et seq., from the local government or governments under whose authority the corporation was created;
    2. To acquire, whether by construction, devise, purchase, gift, lease, or otherwise or any one (1) or more of those methods and to construct, improve, maintain, equip, and furnish one (1) or more projects located within the state and within or near the corporate limits of the local government or governments under whose authority the corporation was created;
    3. To lease to a user all or any part of any project for the rentals and upon such terms and conditions as the corporation's board may deem advisable and not in conflict with the provisions of this chapter;
    4. To sell by installment payments or otherwise and convey all or any part of any project to a user for a purchase price and upon such terms and conditions as the corporation's board may deem advisable and not in conflict with the provisions of this chapter;
    5. To donate, exchange, convey, sell, or lease land, improvements, or any other interest in real property or furnishings, fixtures, or equipment or personal property to an institution of higher education for a legal purpose of the institution upon such terms and conditions as the board may deem advisable and that are not in conflict with the provisions of this chapter;
    6. To make loans to a user for the purpose of providing temporary or permanent financing or refinancing of all or part of the cost of any project, including the refunding of any outstanding obligations, mortgages, or advances issued, made, or given by any person for the cost of a project, and charge and collect interest on the loans for the loan payments and upon such terms and conditions as its board may deem advisable and not in conflict with the provisions of this chapter;
    7. To contract with private enterprises to carry out industrial development programs or objectives or to carry out or assist with the development or operation of an economic development project or economic development services, as defined under § 14-174-105, or objectives consistent with the purposes and duties of the corporation, upon the terms and conditions the board of the corporation deems advisable and not in conflict with this chapter;
    8. To appoint, employ, and compensate such employees, agents, architects, planners, engineers, accountants, attorneys, and other persons as the activities of the corporation may require;
      1. To invest any of the corporation's funds that the board may determine are not presently needed for its corporate purposes in obligations that are direct or guaranteed obligations of the United States, other securities in which public funds may be invested under the laws of this state, or securities of or other interests in open-end investment companies or investment trusts registered under the Investment Company Act of 1940, 15 U.S.C. § 80a-1 et seq.
      2. However, the portfolio of any investment company or investment trust is limited solely to securities in which public funds may be invested under the laws of this state;
    9. Contract with enterprises to impose such terms and conditions on the receipt of benefits provided by a corporation as the corporation's board may deem advisable and not in conflict with the provisions of this chapter; and
      1. To exercise all powers necessary or appropriate to effect the purposes for which the corporation is organized.
      2. However, the powers are subject to the control of the local government or governments under whose authority the corporation was created.

History. Acts 2005, No. 1372, § 3; 2009, No. 1271, § 2; 2011, No. 282, § 1; 2017, No. 686, § 4.

A.C.R.C. Notes. Acts 2017, No. 686, § 1, provided: “Legislative findings and intent.

“(a) The General Assembly finds that economic development would be enhanced if tax funds authorized under § 14-174-103 were permitted to be used for the full extent of the economic development purposes authorized under Arkansas Constitution, Amendment 62, and Arkansas Constitution, Amendment 97.

“(b) The General Assembly intends for this act to permit economic development tax funds to be used for the purposes authorized under Arkansas Constitution, Amendment 62, and Arkansas Constitution, Amendment 97.”

Amendments. The 2009 amendment deleted former (b)(2) and redesignated (b).

The 2011 amendment added (b)(11).

The 2017 amendment, in (b)(7), inserted “carry out or”, substituted “project or economic development services, as defined under § 14-174-105” for “program”, substituted “of the corporation deems” for “may deem”, deleted “the provisions of” preceding “this chapter, and made stylistic changes.

14-175-112. Economic development taxes.

  1. All tax proceeds received by a corporation under § 14-174-101 et seq. shall be used for any one (1) or more of the following purposes:
    1. To pay administrative costs incurred by the corporation;
    2. To pay costs incurred in connection with a project;
    3. To pay costs incurred for promotional purposes; or
    4. To pay expenses incurred by the corporation under § 14-175-113 relating to job training.
  2. Tax proceeds received by a corporation under § 14-174-101 et seq. shall not be used for a project for the direct benefit of a specific individual or individuals or nongovernmental enterprise or enterprises unless the primary purpose of the project is to finance an economic development project or provide an economic development service within or near the local government that levies the tax, as provided under § 14-174-105.

History. Acts 2005, No. 1372, § 3; 2017, No. 686, § 5.

A.C.R.C. Notes. Acts 2017, No. 686, § 1, provided: “Legislative findings and intent.

“(a) The General Assembly finds that economic development would be enhanced if tax funds authorized under § 14-174-103 were permitted to be used for the full extent of the economic development purposes authorized under Arkansas Constitution, Amendment 62, and Arkansas Constitution, Amendment 97.

“(b) The General Assembly intends for this act to permit economic development tax funds to be used for the purposes authorized under Arkansas Constitution, Amendment 62, and Arkansas Constitution, Amendment 97.”

Amendments. The 2017 amendment, in (b), substituted “Tax” for “No tax”, substituted “shall not” for “may”, substituted “an economic development project or provide an economic development service” for “facilities for the securing and developing of industry”, and added “as provided under § 14-174-105”.

14-175-113. Average weekly wage — Job training expenditures.

A corporation may spend tax revenue received under this chapter for job training offered through an enterprise only if the enterprise has committed in writing to:

  1. Create new jobs that pay wages that are at least equal to the prevailing wage for the applicable occupation in the local labor market area; or
  2. Retain jobs that pay wages that are at least equal to the prevailing wage for the applicable occupation in the local labor market area.

History. Acts 2005, No. 1372, § 3; 2009, No. 1271, § 3.

Amendments. The 2009 amendment substituted “Retain jobs that” for “Increase its payroll to” in (2).

14-175-114. Limitation on liability.

The corporation, the corporation's board of directors, officers, employees and agents, the local government approving the organization of a corporation, members of the governing body of the local government, and employees of the local government are not liable for damages arising from the performance of a governmental function of the corporation or local government.

History. Acts 2005, No. 1372, § 3.

14-175-115. Annual reports.

  1. Each corporation shall make a written report to the governing body that created the corporation concerning its activities for the preceding calendar year.
  2. Each report shall include audited financial statements covering the corporation's operations during the preceding calendar year.

History. Acts 2005, No. 1372, § 3.

14-175-116. Application of Arkansas Nonprofit Corporation Act of 1993.

  1. Each corporation is subject to the provisions of the Arkansas Nonprofit Corporation Act of 1993, § 4-33-101 et seq., to the extent that those provisions are not in conflict with the provisions of this chapter.
  2. If a provision of the Arkansas Nonprofit Corporation Act of 1993, § 4-33-101 et seq., is in conflict with any provision of this chapter, the provisions of this chapter shall control.

History. Acts 2005, No. 1372, § 3.

Chapter 176 Local Job Creation, Job Expansion, and Economic Development Act of 2017

14-176-101. Title.

This chapter shall be known and may be cited as the “Local Job Creation, Job Expansion, and Economic Development Act of 2017”.

History. Acts 2017, No. 685, § 1.

14-176-102. Definitions.

As used in this chapter:

  1. “Chief executive” means the:
    1. Mayor, city administrator, or city manager of a municipality; or
    2. County judge of a county;
    1. “County” means a county in the State of Arkansas.
    2. “County” does not mean a public corporation for economic development;
  2. “Economic development project” means the land, buildings, furnishings, equipment, facilities, infrastructure, and improvements that are required or suitable for the development, retention, or expansion of:
    1. Manufacturing, production, and industrial facilities;
    2. Research, technology, and development facilities;
    3. Recycling facilities;
    4. Distribution centers;
    5. Call centers;
    6. Warehouse facilities;
    7. Job training facilities;
    8. Regional or national corporate headquarters facilities;
    9. Sports complexes designed to host local, state, regional, and national competitions, including without limitation baseball, softball, and other sports tournaments; and
    10. Facilities for the retail sale of goods;
  3. “Economic development service” means:
    1. Planning, marketing, and strategic advice and counsel regarding job recruitment, job development, job retention, and job expansion;
    2. Supervision and operation of industrial parks or other such properties; and
    3. Negotiation of contracts for the sale or lease of industrial parks or other such properties;
  4. “Economic impact and cost-benefit analysis” means an economic analysis created with an economic modeling software program or industry-recognized software program that measures the anticipated local or regional economic benefits of an economic development project against the costs of the incentive proposal of the economic development project and prepared by a nationally or regionally recognized independent economic forecasting firm or an Arkansas-based four-year institution of higher education with an active economic research or analysis department;
  5. “Financial forecast” means a written report prepared by an independent certified public accountant of the general revenue and expenses and any other sources of funds to be appropriated by the governing body;
  6. “General revenue” means:
    1. Unobligated current-year budgeted moneys in the general fund of the municipality or county; and
    2. Other unobligated general tax moneys of the municipality or county;
  7. “Governing body” means the:
    1. Quorum court of a county; or
    2. City council or board of directors of a municipality;
  8. “Infrastructure” means:
    1. Land acquisition;
    2. Site preparation;
    3. Road and highway improvements;
    4. Rail spur, railroad, and railport construction;
    5. Water service;
    6. Wastewater treatment;
    7. Employee training, which may include equipment for employee training; and
    8. Environmental mitigation or reclamation;
    1. “Municipality” means a city of the first class, a city of the second class, or an incorporated town.
    2. “Municipality” does not mean a public corporation for economic development;
  9. “Public corporation for economic development” means a corporation created and authorized under § 14-174-101 et seq. and the Public Corporations for Economic Development Act, § 14-175-101 et seq.; and
  10. “Reserves” means:
    1. The unassigned fund balance in the general fund of a municipality or a county at the beginning of the fiscal year; and
    2. The beginning fund balance in a capital improvement fund that is available for appropriation to capital improvement projects at the discretion of the governing body of the municipality or county by ordinance or resolution.

History. Acts 2017, No. 685, § 1; 2019, No. 798, § 1; 2019, No. 1072, § 5.

Amendments. The 2019 amendment by No. 798 added (3)(I) [now (3)(J)].

The 2019 amendment by No. 1072 added (3)(I).

14-176-103. Authorization for obtaining and appropriating money.

  1. A municipality or county may obtain or appropriate money for a corporation, association, institution, political subdivision of the state, the United States Government, or an individual to:
    1. Finance economic development projects; or
    2. Provide economic development services.
  2. Funds appropriated by a municipality or county under the authority of this section shall be deemed to further the public purpose of economic development.

History. Acts 2017, No. 685, § 1.

14-176-104. Economic development projects — Controls, restrictions, prohibitions, and recapture.

    1. Before entering into a contract for an economic development project, the governing body shall review and approve an economic impact and cost-benefit analysis of the economic development project.
    2. The economic impact and cost-benefit analysis under subdivision (a)(1) of this section may be paid for by the governing body.
    3. The requirement for an economic impact and cost-benefit analysis under subdivision (a)(1) of this section does not apply to an economic development project in which the total appropriation does not exceed one hundred thousand dollars ($100,000).
  1. Economic development project contracts shall:
    1. Be approved by the governing body in ordinance or resolution form after following applicable bidding, procurement, and professional services procedures in accordance with state law or local ordinance;
    2. Be memorialized in writing;
    3. Not exceed one (1) year in length unless there is a public finding by the governing body that multiple years are necessary for the success of the economic development project and that multiple years are both lawful and a matter of public benefit;
    4. Not be renewed automatically without a vote of the governing body;
    5. State a proper public purpose, such as the creation of new jobs, job retention, or the expansion of the tax base by construction or improvements to real property;
    6. Articulate specific criteria to measure the progress toward, or achievement of, the proper public purpose; and
    7. Contain a recapture provision, including without limitation:
      1. A specific time frame in which the recipient of the funding shall provide a written financial accounting to the chief executive and governing body of the use of the moneys with documentation generally acceptable to Arkansas Legislative Audit's requirements and a report detailing the recipient's progress toward, or achievement of, the specific criteria in the economic development project contract;
      2. A specific time frame in which the governing body may formally demand by resolution the refunding of the moneys by the recipient upon the governing body's decision that the reporting in subdivision (b)(7)(A) of this section was insufficient and without merit or that the agreed-upon progress or criteria has not been made or achieved in a timely manner as provided for in the economic development project contract; and
      3. If the moneys are not returned when demand is made by the municipality or county, the governing body may authorize a cause of action to recapture the moneys in the circuit court of the county with proper jurisdiction and venue.
    1. The following are exempt from the Freedom of Information Act of 1967, § 25-19-101 et seq., as related to economic development projects:
      1. Files and materials that if disclosed would give advantage to the competitors or bidders; and
      2. Records maintained by the municipality or county related to an economic development project's:
        1. Planning;
        2. Site location;
        3. Expansion;
        4. Operations; or
        5. Product development and marketing.
      1. However, quarterly reports shall be provided to the governing body by parties to the economic development project contract and shall be available to the public.
      2. The reports shall include a statement of the specific items contained in the economic development project contract and articulation of compliance as to each of those items.

History. Acts 2017, No. 685, § 1.

14-176-105. Economic development services — Controls, restrictions, and prohibitions.

  1. Economic development service contracts shall:
    1. Be approved by the governing body in ordinance or resolution form after following applicable bidding, procurement, and professional services procedures in accordance with state law or local ordinance;
    2. Be recorded in writing;
    3. Not exceed one (1) year in length unless there is a public finding by the governing body that multiple years are necessary for the success of the economic development service and that multiple years are both lawful and a matter of public benefit;
    4. Not be renewed automatically without a vote of the governing body;
    5. State a proper public purpose, such as the creation of new jobs, job retention, or the expansion of the tax base by construction or improvements to real property; and
    6. Articulate specific criteria to measure the progress toward, or achievement of, the proper public purpose.
    1. The following are exempt from the Freedom of Information Act of 1967, § 25-19-101 et seq., as related to economic development services:
      1. Files and materials that if disclosed would give advantage to the competitors or bidders; and
      2. Records maintained by an economic development service provider for a municipality or county related to any economic development project.
      1. However, quarterly reports shall be provided to the governing body by parties to the economic development service contract and shall be available to the public.
      2. The reports shall include a statement of the specific items contained in the economic development service contract and articulation of compliance as to each of those items.

History. Acts 2017, No. 685, § 1.

14-176-106. Tax exemption.

Contracts, agreements, and actions taken under this chapter do not affect the tax-exempt status of the state or any municipality or county engaged in work under this chapter.

History. Acts 2017, No. 685, § 1.

14-176-107. Immunity and liability.

  1. Section 21-9-301 et seq. applies to this chapter.
  2. A municipality or county is not liable for any action related to the providing of, or contractual agreement to enter into, an economic development project or economic development service, except as provided by law.

History. Acts 2017, No. 685, § 1.

14-176-108. Limitation on budget — Due diligence.

  1. Except as provided in this section, appropriations for economic development projects by a governing body under this chapter shall not exceed in a fiscal year five percent (5%) of the total of the municipality's or county's unobligated general revenue and reserves of the previous fiscal year, without regard to the number of economic development projects.
    1. If a governing body chooses to participate in an economic development project that exceeds the five percent (5%) level under subsection (a) of this section in a fiscal year, the governing body shall secure a financial forecast and then determine whether the municipality or county will participate in the economic development project or projects.
    2. A financial forecast under subdivision (b)(1) of this section shall be undertaken each time the five percent (5%) level under subsection (a) of this section is exceeded.
  2. The use of the whole or partial amount of revenue specifically dedicated by law, ordinance, or resolution and public vote for economic development for the purposes in this chapter are excluded from the restrictions and limitations of this section.

History. Acts 2017, No. 685, § 1.

14-176-109. Singular contract methodology.

A municipality or county may engage the services of a singular entity to administer economic development projects and economic development services under this chapter.

History. Acts 2017, No. 685, § 1.

14-176-110. Bonds.

This chapter does not prohibit or restrict the use of funding economic development projects through the proceeds of:

  1. Revenue bonds issued in accordance with Arkansas Constitution, Amendment 65; or
  2. Capital improvement or economic development bonds issued in accordance with Arkansas Constitution, Amendment 62.

History. Acts 2017, No. 685, § 1.

14-176-111. Federal and state grants.

The use of federal and state grants is excluded from the restrictions and limitations of this chapter.

History. Acts 2017, No. 685, § 1.

14-176-112. Interlocal agreements.

The use of interlocal agreements under the Interlocal Cooperation Act, § 25-20-101 et seq., is excluded from the restrictions and limitations of this chapter.

History. Acts 2017, No. 685, § 1.

14-176-113. Current economic development projects.

Economic development projects that are under way on January 1, 2017, are exempt from the restrictions and limitations of this chapter.

History. Acts 2017, No. 685, § 1.

Chapters 177-182 [Reserved.]

[Reserved]

Subtitle 11. Economic Development Improvement Districts, Facilities, And Authorities

Chapter 183 General Provisions

[Reserved]

Chapter 184 Central Business Improvement Districts

Research References

ALR.

Eminent domain: industrial park or similar development as public use justifying condemnation of private property. 62 A.L.R.4th 1183.

Case Notes

In General.

Improvement districts are agents of the state and derive their limited powers and duties of a public and governmental nature by legislative delegation through the taxing power of the state, and constitute a separate and distinct species of taxing districts as contradistinguished from counties, municipal corporations and school districts. Quapaw Cent. Bus. Imp. Dist. v. Bond-Kinman, Inc., 315 Ark. 703, 870 S.W.2d 390 (1994).

Subchapter 1 — General Provisions

Effective Dates. Acts 1973, No. 162, § 27: Feb. 20, 1973. Emergency clause provided: “It has been found and is declared by the General Assembly of the State of Arkansas that the deterioration of the central business districts of some cities and towns of the State is a threat to the property tax and revenue sources of such municipalities, and that elimination of urban blight and decay and the modernization and the general improvement of such central business districts are urgent. Therefore, an emergency is declared to exist, and this Act, being necessary for the preservation of the public peace, health and safety, shall take effect and be in force from the date of its approval.”

Acts 1975, No. 402, § 7: Mar. 14, 1975. Emergency clause provided: “It has been found and is declared by the General Assembly of the State of Arkansas that the deterioration of the central business districts of some cities of the State is a threat to the property tax and revenue sources of such municipalities, that the elimination of urban blight and decay and the modernization and general improvements of such business districts are urgent, and that amendments to the Central Business District Improvement Act are necessary to enable said Act to be of immediate benefit. Therefore, an emergency is hereby declared to exist, and this Act, being necessary for the preservation of the public peace, health and safety, shall take effect and be in force from the date of its approval.”

Acts 1975, No. 1009, § 2: Apr. 22, 1975. Emergency clause provided: “It has been found and is declared by the General Assembly of the State of Arkansas that the deterioration of the central business districts of some municipalities of the State is a threat to the property tax and revenue sources of such municipalities, and that the elimination of urban blight and decay and the modernization and the general improvement of such central business districts are urgent. The General Assembly further finds that existing legislation is not broad enough to cover a sufficient number of municipalities and that passage of this bill is necessary to accomplish such broader coverage. Therefore, an emergency is declared to exist, and this Act, being necessary for the preservation of the public peace, health and safety, shall take effect and be in force from the date of its approval.”

Acts 1997, No. 933, § 5: Mar. 31, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that the present laws relating to central business improvement districts are unduly restrictive with respect to the manner in which general obligation assessment bonds of the districts are required to be sold; that central business improvement districts are now severely hampered in their ability to issue bonds to acquire and improve property in the boundaries of the district and to refund outstanding general obligation assessment bonds of the district; that this act will facilitate the issuance of such bonds and will thereby enable the districts to be more effective in eliminating urban blight and decay; and that this act should be given effect immediately to help solve the aforementioned problems. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

14-184-101. Title.

This subchapter may be referred to and cited as the “Central Business Improvement District Act.”

History. Acts 1973, No. 162, § 1; A.S.A. 1947, § 20-1601.

14-184-102. Purpose.

This subchapter shall be construed as cumulative of existing laws relating to the creation, operation, and existence of municipal improvement districts and shall not repeal any existing law unless the law is in direct conflict with this subchapter. It is the intent of this subchapter to provide additional authority to municipalities for creation of improvement districts and to authorize and enumerate additional powers for these districts.

History. Acts 1973, No. 162, § 24; A.S.A. 1947, § 20-1623.

14-184-103. Legislative determinations.

  1. It is determined and declared by the General Assembly that:
    1. The deterioration of the central business districts of urban centers of the state by reason of obsolescence, overcrowding, faulty arrangement or design, deleterious land use, or a combination of these or other factors is a threat to the property tax and other revenue sources of municipalities;
    2. Increases in population and automobile usage have created conditions of traffic congestion in central business districts, and such conditions constitute a hazard to the safety of pedestrians and impede the use of public rights-of-way;
    3. The elimination of urban blight and decay and the modernization and general improvement of central business districts by governmental action are considered necessary to promote the public health, safety, and welfare of the communities; and
    4. The restoration of central business districts is the appropriate subject for remedial legislation.
  2. It is further determined and declared by the General Assembly that:
    1. Municipalities should be encouraged to create self-financing improvement districts and designated district management corporations to execute self-help programs to enhance local business climates; and
    2. Municipalities should be given the broadest possible discretion in establishing self-help programs consistent with local needs, goals, and objectives.

History. Acts 1973, No. 162, § 2; A.S.A. 1947, § 20-1601n; Acts 2007, No. 517, § 1.

14-184-104. Definitions.

As used in this subchapter, unless the context otherwise requires:

  1. “Acquire” means obtain property rights by gift, purchase, devise, bequest, eminent domain, lease, sublease, assignment of lease, or any combination or variant of these means;
  2. “Assessed value” means value as assessed for ad valorem property tax purposes;
  3. “Board” means the board of commissioners appointed;
  4. “District” means the central business improvement district created by ordinance of the municipality;
  5. “Governing body” means the city council, board of directors, commission, or other municipal body exercising general legislative power in the municipality;
  6. “Municipality” means any city having the population required by § 14-184-107;
  7. “Owner” means record owner in fee simple;
  8. “Plan or plan of improvement” means the general design plan, including any amendments to it that may be made from time to time of the proposed improvements in the district.

History. Acts 1973, No. 162, § 3; 1975, No. 402, § 1; A.S.A. 1947, § 20-1602.

14-184-105. Construction.

  1. This subchapter shall be construed liberally.
  2. The enumeration of any object, purpose, power, manner, method, and thing shall not be deemed to exclude like or similar objects, purposes, powers, manners, methods, and things.

History. Acts 1973, No. 162, § 25; A.S.A. 1947, § 20-1624.

14-184-106. Other laws applicable.

Except as otherwise provided in this subchapter, the provisions of Acts 1881, No. 84; Acts 1899, No. 183; and all other laws of the State of Arkansas pertaining to municipal improvement districts, in general, as they may be amended from time to time, shall be applicable to a central business improvement district and shall govern the procedures for the operation of a district's affairs including, without limitation:

  1. Giving of any notice;
  2. Appointment of assessors;
  3. Making and filing of assessments of benefits or reassessments of benefits;
  4. Annexation of additional territory to a district;
  5. Collection of assessments;
  6. Enforcement of delinquent assessments; and
  7. All other matters relating to the internal operation of a district.

History. Acts 1973, No. 162, § 5; A.S.A. 1947, § 20-1604.

Publisher's Notes. Acts 1881, No. 84, referred to in this section, is codified as §§ 14-88-101, 14-88-202, 14-88-204, 14-88-302, 14-88-303, 14-88-30514-88-308, 14-88-311, 14-88-403, 14-88-502, 14-89-201, 14-89-1001, 14-89-1002, 14-90-101, 14-90-201, 14-90-302, 14-90-403, 14-90-701, 14-90-80114-90-805, 14-90-902, 14-90-903, 14-90-916, 14-90-100114-90-1003, 14-90-1005, 14-90-1006, 14-90-110114-90-1106, 14-90-1108, 14-90-120114-90-1204, 14-90-1302, 14-90-1303, 14-91-101, 14-90-10414-91-107, 14-91-201, and 14-235-30114-235-305.

Acts 1899, No. 183 referred to in this section is codified as §§ 14-90-20114-90-203, 14-90-401, 14-90-402, 14-90-501, 14-90-502, 14-90-601, 14-90-603, and 14-90-80114-90-805.

14-184-107. Authority to create districts.

The governing body of any first-class or second-class municipality of the state is authorized to create, by ordinance, one (1) or more central business improvement districts in the manner and for the purposes provided in this subchapter.

History. Acts 1973, No. 162, § 4; 1975, No. 402, § 2; 1975, No. 1009, § 1; 1977, No. 530, § 1; 1981, No. 3, § 1; A.S.A. 1947, § 20-1603.

14-184-108. Petition for organization — Notice and hearing.

      1. When persons claiming to be owners of two thirds (2/3) in assessed value, as shown by the last county assessment, of real property in the area proposed to comprise a central business improvement district, file with the city clerk a petition for the organization of a district for the purposes provided in this subchapter, it shall be the duty of the clerk to give notice that the petition will be heard at a meeting of the governing body named in the notice, which will be held more than fifteen (15) days after the filing of the petition.
      2. Notice shall be published once a week for two (2) weeks, the last insertion to be not less than seven (7) days before the date fixed for the hearing.
      1. The mayor, if he sees fit, may call a special meeting of the governing body for the purpose of hearing the petition.
      2. This called meeting shall be held not less than fifteen (15) days after the date of the call, and notice of the hearing shall be published for the time and in the manner stated in this subsection.
    1. The notice may be in the following form:
    1. This petition may limit the cost of the improvement either to a fixed sum or to a percentage of the assessed value of the real property in the district.
    2. The petition may also set forth the names of the persons whom the petitioners request be named as members of the board of commissioners of the district.

“All owners of real property within the following described territory (here describe the territory to be included in the District) in the City of , are hereby notified that a petition has been filed with the City Clerk of the City of purporting to be signed by a two-thirds (2/3) in assessed value of the owners of real property within the territory, which petition prays that a Central Business Improvement District be formed embracing territory for the purpose of (here describe purpose and nature of improvements in general terms), and that the cost thereof be assessed and charged upon the real property above described. All owners of real property within the territory are advised that said petition will be heard at the meeting of the City Council to be held at the hour of , m . on the day of , 19 , and that at the meeting the Council will determine whether those signing the petition constitute two-thirds (2/3) in value of the owners of real property; and at the meeting all owners of real property within the territory who desire will be heard upon the question. City Clerk”

Click to view form.

History. Acts 1973, No. 162, § 6; A.S.A. 1947, § 20-1605.

Cross References. Notice on formation of improvement districts, § 14-86-301 et seq.

Case Notes

Signature by Owner.

This section requires that the owner's name be signed to the petition. The owner's name can be signed by an agent, but only when the agent signs as an agent and the name of the owner is disclosed. Hood v. Central Business Improv. Dist., 301 Ark. 35, 781 S.W.2d 35 (1989).

Where the name of the owner is not signed to the petition in any manner, the assessed value of his land cannot be counted as part of the petition. Hood v. Central Business Improv. Dist., 301 Ark. 35, 781 S.W.2d 35 (1989).

14-184-109. Rules governing petitions.

  1. After the filing of a petition for the creation of a central business improvement district, no petitioner shall be permitted to withdraw his name from it.
  2. No petition with the requisite signatures shall be declared void on account of formal or insubstantial defects.
  3. The governing body, at any time, may permit the petition to be amended to conform to the facts by correcting any errors in the description of the territory or in any other particular.
  4. Similar petitions for the organization of the same district may be filed and together shall be regarded as one petition with the original.
  5. All petitions filed prior to the hearing on the first petition filed shall be considered by the governing body in the same manner as if filed with the first petition placed on file.

History. Acts 1973, No. 162, § 7; A.S.A. 1947, § 20-1606.

14-184-110. Organizational expenses.

A central business improvement district organized under this subchapter is authorized to pay reasonable compensation to those persons who have done necessary or desirable preliminary work in the organization of it, including the fees of abstractors and title companies, engineers, architects, and attorneys.

History. Acts 1973, No. 162, § 10; A.S.A. 1947, § 20-1609.

14-184-111. Board of commissioners.

      1. In the ordinance creating a central business improvement district, the governing body shall appoint a minimum of five (5) persons who shall be owners of real property in the district or officers or stockholders of a corporation owning real property within the district as commissioners who shall compose a board of commissioners for the district.
      2. In cities operating under a commission form of government, the mayor and city commissioners, by virtue of their offices, may be commissioners of each district and may compose the board of each district.
      1. At the initial meeting of commissioners, the governing body of the municipality shall divide randomly the commissioners into three (3) groups roughly equal in number.
        1. The first group of commissioners shall serve a term of two (2) years.
        2. The second group of commissioners shall serve a term of four (4) years.
        3. The third group of commissioners shall serve a term of six (6) years.
      2. Following the initial group of commissioners, all commissioners shall serve a term of six (6) years.
    1. The board of commissioners shall elect a chair and a secretary.
        1. All vacancies that may occur after the board shall have been organized shall be filled by the governing body.
        2. The vacating member shall serve, if possible, until a successor is appointed by the governing body of the municipality.
      1. If all places on the board shall become vacant or those appointed shall refuse or neglect to act or shall cease to have the qualifications required for their original appointment, new members shall be appointed by the governing body as in the first instance.
        1. The governing body shall have the power to remove the board or any member of it by a two-thirds (2/3) vote of the whole number of the members of the governing body.
        2. Removal shall be for cause only and after a hearing upon sworn charges preferred in writing by a property owner in the district. Ten (10) days' notice of the hearing on the charges shall be given.
      1. The governing body shall have the power to remove the board or any member of it by a vote of the majority of the whole number of the members elected to the governing body upon the written petition of the owners of a majority in assessed value of the property located within the district after a hearing upon ten (10) days' notice to each member of the board affected.
  1. The members of the board shall receive no compensation for their services but may be reimbursed for their actual expenses incurred in the performance of their duties.

History. Acts 1973, No. 162, §§ 8, 11; A.S.A. 1947, §§ 20-1607, 20-1610; Acts 2007, No. 517, § 2.

14-184-112. Plans and estimated cost of improvement.

    1. As soon as is practicable after the qualification of its members, the board of commissioners for a central business improvement district shall form plans for the improvement as described in the petition and shall obtain estimates of the cost of it.
    2. Prior to the filing of any assessment of benefits to accomplish the plan of improvement, a copy of the plans and the estimated cost for the accomplishment of the plans shall be filed in the office of the city clerk.
  1. The plan may provide for the construction of improvements, and other implementation of the plan, in such sequence and in such parts as the board shall determine from time to time to be most advantageous to the district.
    1. The plan of improvement may be amended at any time by the board in order to include or delete such features as the board shall determine to be in the best interests of the district.
      1. A copy of the plan, as amended, shall be filed in the office of the city clerk, and, if the original assessment of benefits shall not have yet been filed, no further notice shall be necessary.
        1. If the assessment of benefits for the district shall have been filed and a levy of it enacted by ordinance, the board shall examine the amended plan and determine whether or not a reassessment of benefits shall be desirable.
        2. If the board shall determine that a reassessment is desirable, the board shall direct that a reassessment be prepared and filed as in the case of any other reassessment. However, if the amended plan shall provide for the construction of additional improvements the costs of which are to be financed primarily from the issuance of bonds to be retired from the revenues from the additional improvements or from other sources, it shall not be necessary to reassess benefits.

History. Acts 1973, No. 162, § 12; 1975, No. 402, § 4; A.S.A. 1947, § 20-1611.

14-184-113. Expenditures for services.

    1. In the preparation of the plan of improvement, a central business improvement district is authorized to employ architects and engineers to prepare plans, specifications, and estimates of cost for the construction of the improvements and to supervise and inspect the construction.
    2. In addition, the district is authorized to engage and pay attorneys, accountants, and consultants and to obtain and pay for such other professional and technical services as it shall determine to be necessary or desirable in assisting it to effectively carry out the functions, powers, and duties conferred and imposed upon it to accomplish and maintain the proposed improvement.
    3. The district is further authorized to employ, on a full-time basis, such persons as shall be necessary to maintain, operate, supervise, repair, administer, or otherwise render assistance in the effecting of the plan and its continued benefit.
  1. All expenditures under this section shall be taken as a cost of the improvement.

History. Acts 1973, No. 162, § 13; A.S.A. 1947, § 20-1612.

14-184-114. Abandonment of improvement.

    1. If for any cause the improvement shall not be made, the cost shall be a charge upon the real property in the central business improvement district and shall be raised and paid by an assessment upon the real property in the district as assessed for state and county purposes.
    2. The assessment shall be levied by the governing body on the application of any person interested and shall be paid to the district to be distributed among the creditors of the district.
  1. When any improvement is abandoned, it is made the duty of the board of commissioners to report to the governing body the total amount of the debts which it has incurred, to the end that the governing body may make adequate provision for their payment.

History. Acts 1973, No. 162, § 13; A.S.A. 1947, § 20-1612.

14-184-115. Powers of improvement district generally.

A central business improvement district has all powers necessary or desirable to undertake and carry out all parts of the planned improvement, including without limitation:

  1. Existence as a body corporate, having the power to sue and to be sued and to contract in its name;
  2. To own, acquire, improve, operate, maintain, sell, lease as lessor or lessee, and contract concerning, or otherwise deal in or dispose of, any and all real and personal property necessary or desirable for the accomplishment of the plan;
  3. To do all of the following:
    1. Acquire, construct, install, operate, maintain, and contract regarding:
      1. Pedestrian or shopping malls;
      2. Plazas;
      3. Sidewalks or moving sidewalks;
      4. Parks;
      5. Parking lots;
      6. Parking garages;
      7. Offices;
      8. Urban residential facilities, including without limitation apartments, condominiums, hotels, motels, convention halls, rooms, and related facilities, and buildings and structures to contain any of these facilities;
      9. Bus stop shelters;
      10. Decorative lighting;
      11. Benches or other seating furniture;
      12. Sculptures;
      13. Telephone booths;
      14. Traffic signs;
      15. Fire hydrants;
      16. Kiosks;
      17. Trash receptacles;
      18. Marquees, awnings, or canopies;
      19. Walls and barriers;
      20. Paintings or murals;
      21. Alleys;
      22. Shelters;
      23. Display cases;
      24. Fountains;
      25. Childcare facilities;
      26. Restrooms;
      27. Information booths;
      28. Aquariums or aviaries;
      29. Tunnels and ramps; and
      30. Pedestrian and vehicular overpasses and underpasses;
    2. Acquire airspace for and construct pedestrian walkways through buildings; and
    3. Construct every other useful, necessary, or desired facility or improvement that may secure and develop industry and be conducive to improved economic activity within the district;
  4. To landscape and plant trees, bushes and shrubbery, grass, flowers, and each and every other kind of decorative planting;
  5. To install and operate or to lease public music and news facilities;
  6. To acquire and operate buses, minibuses, mobile benches, and other modes of transportation;
  7. To construct and operate childcare facilities;
  8. To acquire air rights for and to construct, operate, and maintain pedestrian overpasses, vehicular overpasses, public restaurants or other facilities within the air rights, to establish, operate, and maintain other restaurants or public eating facilities within the district, and to lease space within the district for sidewalk cafe tables and chairs;
  9. To construct lakes, dams, and waterways of whatever size;
  10. To employ and provide special police facilities and personnel for the protection and enjoyment of the property owners and the general public using the facilities of the district;
  11. To employ such persons as are necessary to procure such equipment as may be required to maintain the streets, alleys, malls, bridges, ramps, tunnels, lawns, trees, and decorative planting of each and every nature, and every structure or object of any nature whatsoever constructed or operated by the district;
  12. To grant permits for newsstands, sidewalk cafes, and every other useful and desired private usage of public or private property;
  13. To prohibit or restrict vehicular traffic on the streets within the district as the governing body may deem necessary and to provide the means for access by emergency vehicles to or in these areas;
  14. To acquire, construct, reconstruct, extend, maintain, operate, repair, or lease to others for public use parking lots or parking garages, both above and below ground, or other facilities for the parking of vehicles, including the power to install these facilities in public and private areas, whether these areas are owned in fee simple, by easement, or by leasehold, with the approval and authority of the governing body, and, where desirable, to exchange property in kind by negotiations with private owners in the acquisition of property and property rights for the public purposes contemplated by this subchapter;
  15. By agreement or by the exercise of the power of eminent domain:
    1. To remove any existing structures or signs of any description in the district not conforming to the plan of improvement; and
    2. To require utilities servicing the district to lay such pipe, extend such wires, provide such facilities, or conform, modify, or remove existing facilities to effectuate the plan of improvement for the district;
  16. To provide services for the improvement and operation of the district, including without limitation:
    1. Promotion and marketing;
    2. Advertising;
    3. Health and sanitation;
    4. Public safety;
    5. Security;
    6. Traffic and parking improvements;
    7. Recreation;
    8. Cultural enhancement;
    9. Consultation regarding planning, management, and development activities;
    10. Maintenance of improvements;
    11. Activities in support of business or residential recruitment, retention, or management development;
    12. Aesthetic improvements, including the decoration, restoration, or renovation of any public place or building facade and exterior in public view that confers a public benefit;
    13. Furnishing music in any public place;
    14. Special event and festival management;
    15. Professional management, planning, and promotion of the district;
    16. Stabilization, maintenance, rehabilitation, and adaptive reuse of historic buildings; and
    17. Design assistance; and
  17. To do everything necessary or desirable to effectuate the plan of improvement for the district.

History. Acts 1973, No. 162, § 14; 1975, No. 402, § 5; A.S.A. 1947, § 20-1613; Acts 2007, No. 517, § 3; 2019, No. 383, §§ 20-22.

Amendments. The 2019 amendment, in the introductory language, substituted “has” for “shall have”, deleted “any or” following “out”, and substituted “without limitation” for “but not limited to, the following”; added the introductory language of (3); rewrote (3)(A); added (3)(A)(i) through (3)(A)(xxx); deleted “To” from the beginning of (3)(B); substituted “Construct” for “To construct each and” in (3)(C); redesignated (15)(A) as the introductory language of (15) and (15)(A); in the introductory language of (15), deleted “To remove, by” from the beginning and inserted “exercise of the”; added “To remove” in (15)(A); and deleted “whether by agreement or by the exercise of eminent domain, any or all” following “require” in (15)(B).

14-184-116. Power of eminent domain.

  1. The right and power of eminent domain is conferred upon a central business improvement district to enter upon, take, and condemn private property for the construction of improvements described in the plan of improvement.
  2. The right and power of eminent domain conferred by this section shall be exercised by the district in accordance with the procedures in §§ 18-15-301 — 18-15-307.
  3. The right and power conferred by this section shall include, without limitation, the right and power to enter upon lands and proceed with the work of construction prior to the assessment and the payment of damages and compensation upon the posting of a deposit by the district in accordance with the procedure described in §§ 18-15-301 — 18-15-303.

History. Acts 1973, No. 162, § 15; A.S.A. 1947, § 20-1614.

14-184-117. Powers of municipal governing bodies.

The governing body of any municipality shall have all powers necessary or desirable to undertake and carry out, or to assist a central business improvement district to undertake and carry out, all improvements described in the ordinance setting up the district including, but not limited to, the following:

    1. To close existing streets or alleys, or to open new streets and alleys, or to widen or narrow existing streets and alleys, in whole or in part.
    2. These closings shall be subject to franchise, permit, or other occupancy right of utilities for existing facilities, except as provided in subdivision (8) of this section;
    1. To condemn and take easements necessarily incident to the plan of improvement adopted for the district.
    2. Except as otherwise provided in this subchapter, the rules and procedures set forth in §§ 18-15-301 — 18-15-307 shall govern all condemnation proceedings;
    1. To permit the district, on public property or rights-of-way, to install and operate, or to lease, public parking facilities, public music facilities, news facilities, and sidewalk cafe tables and chairs;
    2. To construct lakes, dams, and waterways of whatever size;
    3. To landscape and plant trees, bushes, shrubbery, flowers, and each and every other kind of decorative planting;
    4. To acquire air rights for the construction of pedestrian overpasses, vehicular overpasses, and public restaurants or facilities to be located in these spaces; and
    5. To permit the purchase and operation of buses, minibuses, mobile benches, and other modes of transportation;
  1. To provide special police facilities and the personnel for the protection and enjoyment of the property owners and the general public using the facilities of the district;
  2. To maintain, as provided in this subchapter, all government-owned streets, alleys, malls, bridges, ramps, tunnels, lawns, and decorative plantings of each and every nature, and every structure or object of any nature whatsoever constructed and operated by the municipality;
  3. To prohibit or restrict vehicular traffic on the streets within the district as may be deemed necessary and to provide the means for access by emergency vehicles to or in these areas;
  4. To remove any existing structures or signs of any description in the district not conforming to the plan of improvements; and
  5. Upon payment of reasonable compensation for it by the district, to require any or all utilities servicing the district to lay such pipe, extend such wires, provide such facilities, or conform, modify, or remove existing facilities to effectuate the plan of improvement for the district.

History. Acts 1973, No. 162, § 9; 1975, No. 402, § 3; A.S.A. 1947, § 20-1608.

14-184-118. Supplemental annual assessments.

    1. In order to effectuate the plan of improvement and to maintain the improvements constructed under it, it may be desirable to provide additional funds for operation, maintenance, repairs, and replacements, and to levy a supplemental annual assessment upon the property owners within a central business improvement district in order to provide funds for these purposes.
    2. Supplemental annual assessment for operation, maintenance, repairs, and replacements shall be in addition to that levied and collected upon the assessment of benefits which has been, or may be, pledged and mortgaged to retire bonded indebtedness of the district as authorized in this subchapter.
    1. The petition requesting the creation of the district and the ordinances creating the district and levying the tax on the assessment of benefits to provide for the retirement of bonded indebtedness may also provide for a continuing supplemental annual levy of an assessment which shall be designated for the purposes of operation, maintenance, repairs, and replacements of the improvements.
      1. If the petition requesting the creation of the district does not contain a provision requesting the levy of a supplemental annual assessment for operation, maintenance, repairs, and replacements, a majority in value of the owners of real property within the district at any time may petition the governing body for the adoption of an ordinance levying such supplemental assessment.
      2. If the petition is later filed, it shall be the duty of the governing body to adopt the requested ordinance upon inquiry only as to the sufficiency of the petition.
    1. The levy and collection of the supplemental annual assessment for operation, maintenance, repairs, and replacements shall not operate to reduce the total of the assessed benefits which may be, or may have been, mortgaged and pledged to secure bonded indebtedness of the district.
    2. Upon request of the board of commissioners, the annual supplemental assessment may be adjusted no more frequently than annually by the governing body.
      1. Collection of the supplemental assessment for operation, maintenance, repairs, and replacements shall be in the same manner as for the collection of assessment of benefits pledged to retire indebtedness of the district.
      2. The failure to pay the supplemental assessments shall be enforced by proceedings in the same manner as other delinquent assessments.

History. Acts 1973, No. 162, § 17; A.S.A. 1947, § 20-1616.

14-184-119. Revenue-producing facilities.

    1. Nothing in this subchapter shall be deemed to limit or prohibit the operation of any facility which is a part of the plan of improvement as a revenue-producing facility.
    2. Without limiting the generality of this provision, a central business improvement district may construct, operate, and maintain public restaurants, parking garages, and automobile serving facilities, places of amusement and entertainment, including facilities for the sale of food and refreshments and other similar public facilities, under circumstances which may provide revenues exceeding the cost of the operations of them.
  1. The revenues may be:
    1. Used to defray the costs of general operation and maintenance of the district;
    2. Used to retire indebtedness of the district; or
    3. Set aside and pledged in separate funds to secure other indebtedness of the district.
  2. The board of commissioners may authorize the lease of any of the facilities, or a portion of them constructed under the plan, including the parking garages, to other persons for such rental, upon such terms, and for such time as the board shall deem desirable.

History. Acts 1973, No. 162, § 16; A.S.A. 1947, § 20-1615.

14-184-120. Authority to borrow, issue bonds, etc. — Security — Amount.

  1. For the purpose of providing funds to pay preliminary expenses, to construct improvements according to the plan, or to pay for an improvement already completed, a central business improvement district may borrow money in an amount not exceeding the estimated costs of it, including interest on the money borrowed to a date six (6) months subsequent to the estimated date of completion of the work and a reserve not to exceed one (1) year's principal and interest requirements and, to that extent, may issue negotiable bonds or certificates of indebtedness bearing a rate of interest not to exceed the maximum rate allowed by law.
  2. In order to secure the bonds, the district may pledge and mortgage all uncollected assessment of benefits for the payment of the bonds.
  3. In addition to bonds for which uncollected assessments may be mortgaged and pledged, or in conjunction with them, the district is authorized to issue revenue bonds from time to time in sufficient principal amounts and to use the proceeds of them, together with any other available funds, for the purposes set forth in this subchapter.

History. Acts 1973, No. 162, § 18; 1975, No. 402, § 6; 1981, No. 474, § 3; A.S.A. 1947, § 20-1617.

Case Notes

In General.

The levy of assessments is restricted to the payment of the bonds under this section and § 14-184-127, and, in accordance with the statutory pledge, security and lien provisions, the language of the bond itself restricts the assessment of benefits and taxes pledged to the payment of the bonds. Statutory authorization allowing for the levy and collection of assessed funds, and statutorily mandated language found on the bond control the disposition of any funds collected under this chapter. Quapaw Cent. Bus. Imp. Dist. v. Bond-Kinman, Inc., 315 Ark. 703, 870 S.W.2d 390 (1994).

14-184-121. Bonds — Authorizing resolution.

  1. The bonds of the district, whether payable from assessments, from revenues, or from both shall be authorized by a resolution of the board of commissioners.
  2. The authorizing resolution may contain any of the terms, covenants, and conditions that are deemed desirable by the board including, without limitation, those pertaining to:
    1. The maintenance of various funds and reserves;
    2. The nature and extent of the security;
    3. The issuance of additional bonds and the nature of the lien and pledge, parity or priority, in that event;
    4. The custody and application of the proceeds of the bonds;
    5. The collection and disposition of revenues;
    6. The investing and reinvesting, in securities specified by the board, of any moneys during periods not needed for authorized purposes; and
    7. The rights, duties, and obligations of the district, the board, and of the holders and of the registered owners of the bonds.

History. Acts 1973, No. 162, § 18; 1975, No. 402, § 6; 1981, No. 474, § 3; A.S.A. 1947, § 20-1617.

14-184-122. Bonds — Terms and conditions.

  1. As the board of commissioners shall determine, the bonds may:
    1. Be coupon bonds, payable to bearer, or may be registrable as to principal only or as to principal and interest, and may be made exchangeable for bonds of another denomination;
    2. Be in such form and denomination;
    3. Have such date or dates;
    4. Be stated to mature at such times;
    5. Bear interest payable at such times and at such rate or rates. However, no bond may bear interest at a rate exceeding the maximum rate allowed by law;
    6. Be payable at such places within or without the State of Arkansas;
    7. Be made subject to such terms of redemption in advance of maturity at such prices; and
    8. Contain such terms and conditions.
  2. The bonds shall have all the qualities of negotiable instruments under the laws of the State of Arkansas, subject to provisions as to registration, as set forth in this section.

History. Acts 1973, No. 162, § 18; 1975, No. 402, § 6; 1981, No. 474, § 3; A.S.A. 1947, § 20-1617.

14-184-123. Bonds — Trust indenture.

  1. The authorizing resolution may provide for the execution by the district with a bank or trust company, within or without the State of Arkansas, of a trust indenture.
  2. The trust indenture may contain any terms, covenants, and conditions that are deemed desirable by the board including, without limitation, those pertaining to:
    1. The maintenance of various funds and reserves;
    2. The nature and extent of the security;
    3. The issuance of additional bonds and the nature of the lien and pledge, parity or priority, in that event;
    4. The custody and application of the proceeds of the bonds;
    5. The collection and disposition of assessments and of revenues;
    6. The investing and reinvesting, in securities specified by the board, of any moneys during periods not needed for authorized purposes; and
    7. The rights, duties, and obligations of the board and the holders and registered owners of the bonds.

History. Acts 1973, No. 162, § 18; 1975, No. 402, § 6; 1981, No. 474, § 3; A.S.A. 1947, § 20-1617.

14-184-124. Bonds — Sale.

  1. The bonds may be sold for such price, including without limitation sale at a discount, and at such rate of interest and in such manner as the board may determine by resolution.
  2. [Repealed].
  3. [Repealed].
  4. [Repealed].
  5. Any bank, savings and loan association, or other financial institution regulated by an agency of the state in which it is incorporated, or the federal government may bid upon and purchase these bonds, notwithstanding the fact that a director, officer, employee, or shareholder of that financial institution is a member of the board of the district, and the provisions of §§ 14-88-309, 14-88-310, and 14-88-402 shall not apply to any such transaction.

History. Acts 1973, No. 162, § 18; 1975, No. 402, § 6; 1981, No. 474, § 3; A.S.A. 1947, § 20-1617; Acts 1997, No. 933, § 1.

A.C.R.C. Notes. The introductory language of Acts 1997, No. 933, § 1 provided: “Arkansas Code Section 14-184-124(a) is amended to read as follows”; however Acts 1997, No. 933, § 1 set out subsections (b)-(d) as deleted, and did not set out (e), set out (e) as deleted, nor redesignate (e) as (b). Pursuant to § 1-2-303, the Arkansas Code Revision Commission set out subsection (e), but is unable to correct the designation.

Amendments. The 1997 amendment rewrote (a); and deleted (b)-(d).

14-184-125. Bonds — Execution and seal.

      1. The bonds shall be executed by the manual or facsimile signature of the chairman of the board and by the manual signature of the secretary of the board.
      2. The coupons attached to the bonds shall be executed by the facsimile signature of the chairman.
    1. In case any of the officers whose signatures appear on the bonds or coupons shall cease to be such officers before the delivery of the bonds or coupons, their signatures shall, nevertheless, be valid and sufficient for all purposes.
  1. The district shall adopt and use a seal in the execution and issuance of the bonds, and each bond shall be sealed with the seal of the district.

History. Acts 1973, No. 162, § 18; 1975, No. 402, § 6; 1981, No. 474, § 3; A.S.A. 1947, § 20-1617.

14-184-126. Refunding bonds.

    1. Bonds may be issued for the purpose of refunding any bonds issued under this subchapter.
      1. Refunding bonds may be either sold or delivered in exchange for the bonds being refunded.
      2. If sold, the proceeds may be either applied to the payment of the bonds being refunded or deposited in trust and there maintained in cash or investments for the retirement of the bonds being refunded, as shall be specified by the central business improvement district in the resolution or trust indenture securing the bonds.
    1. The resolution or trust indenture securing the refunding bonds may provide that the refunding bonds shall have the same priority on assessments or revenues pledged for their payment as was enjoyed by the bonds refunded.
    2. Revenue refunding bonds shall be sold and secured in accordance with the provisions of this subchapter pertaining to the sale and security of the bonds initially issued.
  1. Refunding bonds secured primarily by the mortgage and pledge of assessed benefits may also be issued in accordance with the laws governing refunding bonds of municipal improvement districts generally.

History. Acts 1973, No. 162, § 20; A.S.A. 1947, § 20-1619.

14-184-127. Obligation on bonds.

    1. It shall be plainly stated on the face of each bond that it has been issued under the provisions of this subchapter, that the bonds shall be obligations only of the central business improvement district, and that in no event shall they constitute any indebtedness for which the faith and credit of the municipality or any of its revenues are pledged.
    2. No member of the board of commissioners shall be personally liable on the bonds or for any damages sustained by anyone in connection with any contracts entered into in carrying out the purposes and intent of this subchapter unless he shall have acted with corrupt intent.
    1. The principal of, interest on, and paying agent's fees in connection with the bonds shall be secured by a lien on and pledge of, and shall be payable from, the assessments levied against the real property within the district or the revenues derived from the operation of revenue-producing facilities of the district including, without limitation, lease rentals as provided for in this subchapter, constructed or acquired under the provisions of this subchapter.
    2. In this regard, the district is authorized to issue bonds for the purposes of constructing and equipping one (1) or more separate and distinct facilities as it may determine and, in the event more than one (1) facility is involved, to operate and pledge revenues from all such facilities as though a single project were involved.
    1. In the case of a separate facility financed by a separate bond issue, the district may pledge and use for debt service and reserves maintained in connection with the single project revenues derived from another project, either on a parity or subordinate lien basis as may be determined by the district, subject to the provisions of any resolutions or trust indentures which authorized and secured bonds previously issued.
    2. The right to issue subsequent issues of bonds can, if the district so determines, be reserved in any authorizing resolution or trust indenture on either a parity or subordinate lien basis and upon such terms and conditions as the district may determine and specify in the particular authorizing resolution or trust indenture.

History. Acts 1973, No. 162, § 19; A.S.A. 1947, § 20-1618.

Case Notes

In General.

The levy of assessments is restricted to the payment of the bonds under § 14-184-120 and this section, and, in accordance with the statutory pledge, security and lien provisions, the language of the bond itself restricts the assessment of benefits and taxes pledged to the payment of the bonds. Statutory authorization allowing for the levy and collection of assessed funds, and statutorily mandated language found on the bond control the disposition of any funds collected under this chapter. Quapaw Cent. Bus. Imp. Dist. v. Bond-Kinman, Inc., 315 Ark. 703, 870 S.W.2d 390 (1994).

14-184-128. Bonds — Tax exemption.

  1. Bonds issued under the provisions of this subchapter and the interest on them shall be exempt from all state, county, and municipal taxes.
  2. This exemption shall include income, inheritance, and estate taxes.

History. Acts 1973, No. 162, § 21; A.S.A. 1947, § 20-1620.

A.C.R.C. Notes. Language excluding property taxes from the exemption provided by this section was deleted pursuant to Ark. Const. Amend. 57, § 1 and § 26-3-302. Arkansas Const. Amend. 57, § 1 provides that the General Assembly may classify intangible personal property for assessment at lower percentages of value than other property and may exempt one or more classes of intangible personal property from taxation, or may provide for the taxation of intangible personal property on a basis other than ad valorem. Section 26-3-302 exempts all intangible personal property in this state from all ad valorem tax levies of counties, cities, and school districts in the state as of January 1, 1976.

14-184-129. Public investment in bonds.

  1. Any municipality; any board, commission, or other authority duly established by ordinance of any municipality; the boards of trustees, respectively, of the firemen's relief and pension fund and the policemen's pension and relief fund of any municipality; or the board of trustees of any retirement system created by the General Assembly of the State of Arkansas may, in its discretion, invest any of its funds not immediately needed for its purposes in bonds issued under the provisions of this subchapter.
  2. Bonds issued under the provisions of this subchapter shall be eligible to secure the deposit of public funds.

History. Acts 1973, No. 162, § 22; A.S.A. 1947, § 20-1621.

14-184-130. Dissolution of district.

  1. A central business improvement district created under this subchapter shall continue in existence in perpetuity unless dissolved by ordinance of the governing body to be enacted solely in the manner provided in this section:
    1. A majority of the board of commissioners and a majority in value of the owners of real property in the district may petition the governing body for the dissolution of the district; or
    2. The owners of real property in the district comprising two-thirds (2/3) in value of the real property may petition the governing body for the dissolution of the district;
    3. Upon the filing with the clerk or recorder of the municipality in which the district is located of a petition in accordance with subdivision (1) or (2) of this subsection, it shall then be the duty of the governing body to adopt an appropriate ordinance dissolving the district and providing for the distribution of its assets.
    1. If practicable, all funds of the district remaining after the payment of any outstanding indebtedness shall be distributed pro rata to the owners of real property within the district in proportion to the assessment of benefits as it appears according to the most recent reassessment of them; otherwise, funds which cannot be practicably refunded shall be paid to the municipality in which the district is located for its general account.
    2. Title to all personal property owned by the district and title to all real property, improvements, easements, and other rights constructed or acquired by the district shall, unless otherwise provided in any conveyance, easement, or grant of right, pass to the municipality in which the district is located.
  2. No district shall be dissolved at any time during which there shall be outstanding bonded indebtedness of the district unless funds sufficient to retire the indebtedness including all interest, redemption premium, if any, trustee's and paying agent's fees, and cost of publication of notices of redemption have been deposited in trust according to the terms of the resolution or trust indenture authorizing the bonded indebtedness.

History. Acts 1973, No. 162, § 23; A.S.A. 1947, § 20-1622.

Subchapter 2 — Financing of Improvements

Effective Dates. Acts 1975, No. 403, § 13: Mar. 14, 1975. Emergency clause provided: “It has been found and is declared by the General Assembly of the State of Arkansas that the deterioration of the central business districts of some cities of the State is a threat to the property tax and revenue sources of such municipalities, that the elimination of urban blight and decay and the modernization and the general improvement of such central business districts are urgent, and that funds to permit property owners to modernize and improve central business district properties may be impossible to obtain without the immediate benefits of this Act. Therefore, an emergency is declared to exist, and this Act being necessary for the preservation of the public peace, health, and safety shall take effect and be in force from the date of its approval.”

Acts 1981, No. 425, § 54: Mar. 11, 1981. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 1981, No. 474, § 9: Mar. 13, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that the present laws relating to Suburban Improvement Districts and Central Business Improvement Districts are unduly restrictive with respect to the maximum interest rates that such districts are allowed to pay and receive and that this Act is designed to permit such districts to pay and receive the maximum lawful rates of interest; that Central Business Improvement Districts are now severely hampered by their inability to issue revenue bonds to acquire property in the boundaries of the District and that this Act will authorize the issuance of such bonds and will thereby enable such districts to be more effective in eliminating urban blight and decay; that this Act should be given effect immediately to help solve the aforementioned problems. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

14-184-201. Legislative determinations.

It is determined and declared by the General Assembly that:

  1. The deterioration of the central business districts of urban centers of the state is a threat to the property tax and other revenue sources of such municipalities;
  2. Funds for the improvement and modernization of property and for the acquisition of property for the purpose of improvement and modernization of the property in such areas are in many instances unavailable from established lending institutions at reasonable rates of interest;
  3. The public interest requires a convenient and reasonable source of permanent financing to enable the acquisition of property for the purpose of modernization and improvement and to enable property owners to make the needed improvements in conjunction with plans of improvement undertaken, or to be undertaken, by central business improvement districts created under the authority of §§ 14-184-101 — 14-184-130; and
  4. Such improvements will:
    1. Operate to eliminate and prevent urban blight and decay;
    2. Provide for the modernization of properties within the central business districts thus improving the local tax structure, reducing crime and disease, and other hazards to persons and property; and
    3. Be of general public benefit.

History. Acts 1975, No. 403, § 1; 1981, No. 474, § 6; 1985, No. 912, § 1; A.S.A. 1947, § 20-1625.

14-184-202. Definition.

As used in this subchapter, unless the context otherwise requires, “property” means real property and tangible and intangible personal property.

History. Acts 1975, No. 403, § 1; 1985, No. 912, § 1; A.S.A. 1947, § 20-1625.

14-184-203. Construction.

  1. This subchapter shall be construed liberally.
  2. The enumeration of any object, purpose, power, manner, method, and thing shall not be deemed to exclude like or similar objects, purposes, powers, manners, methods, and things.

History. Acts 1975, No. 403, § 11; A.S.A. 1947, § 20-1634.

14-184-204. Provisions supplemental.

This subchapter shall be construed as cumulative of existing laws relating to the creation, operation, and existence of municipal improvement districts and shall not repeal any existing law unless the law is in direct conflict with this subchapter. It is the intent of this subchapter to authorize and enumerate additional powers for these districts.

History. Acts 1975, No. 403, § 10; A.S.A. 1947, § 20-1634n.

14-184-205. Revenue bonds authorized.

Central business improvement districts created under the authority of § 14-184-101 et seq. are authorized to issue revenue bonds for the purpose of providing funds for the acquisition, construction, reconstruction, repair, replacement, renovation, or any other restoration or improvement of real and personal property located within the boundaries of the district which, in the opinion of the board of commissioners, will further the elimination of urban blight and decay and provide for the modernization and general improvement of the properties within the district.

History. Acts 1975, No. 403, § 2; 1981, No. 474, § 7; A.S.A. 1947, § 20-1626.

14-184-206. Loans to property owners.

  1. Direct loans may be made by a central business improvement district to property owners, including lessees of the property owners, within the district on such terms and conditions, and with such security for repayment, as the commissioners shall deem necessary and desirable.
  2. Loans may be evidenced by promissory notes, debentures, or other evidence of indebtedness, and may be secured by mortgages, security interests in personal property, guarantees, or such other security as the commissioners shall require in their sole discretion.

History. Acts 1975, No. 403, § 3; 1985, No. 1034, § 1; A.S.A. 1947, § 20-1627.

14-184-207. Providing of funds.

  1. For the purpose of providing funds to make loans including any reserve for contingencies deemed desirable, a central business improvement district may issue negotiable bonds or certificates of indebtedness bearing a rate of interest not to exceed the maximum rate allowed by law.
  2. In order to secure the bonds, the district may pledge, assign, or otherwise encumber any notes, debentures, evidences of indebtedness, mortgages, security interests, or other instrument of security or guaranty which may have been obtained to evidence a loan from the district to property owners within the district to accomplish the purposes of this subchapter.
  3. Assessments of benefits against the property owners in the district may not be pledged to secure the payment of the bonds authorized by this subchapter.

History. Acts 1975, No. 403, § 4; 1981, No. 425, § 51; 1981, No. 474, § 4; A.S.A. 1947, § 20-1628.

14-184-208. Bonds — Authorizing resolution.

  1. The bonds of a central business improvement district shall be authorized by a resolution of the board of commissioners.
  2. The authorizing resolution may contain any of the terms, covenants, and conditions that are deemed desirable by the board, including, without limitation, those pertaining to:
    1. The maintenance of various funds and reserves;
    2. The nature and extent of the security;
    3. The issuance of additional bonds and the nature of the lien and pledge, parity or priority, in that event;
    4. The custody and application of the proceeds of the bonds;
    5. The collection and disposition of revenues;
    6. The investing and reinvesting, in securities specified by the board, of any moneys during periods not needed for authorized purposes; and
    7. The rights, duties, and obligations of the district, the board, and of the holders and of the registered owners of the bonds.

History. Acts 1975, No. 403, § 5; 1981, No. 474, § 5; A.S.A. 1947, § 20-1629.

14-184-209. Bonds — Terms and conditions.

  1. As the board shall determine, the bonds may:
    1. Be coupon bonds, payable to bearer, or may be registrable as to principal only or as to principal and interest and may be exchangeable for bonds of another denomination;
    2. Be in such form and denomination;
    3. Have such date or dates;
    4. Be stated to mature at such times;
    5. Bear interest payable at such times and at such rate or rates, provided that no bond may bear interest at a rate exceeding the maximum rate allowed by law;
    6. Be payable at such places within or without the State of Arkansas;
    7. Be subject to such terms of redemption in advance of maturity at such prices; and
    8. Contain such terms and conditions.
  2. The bonds shall have all of the qualities of negotiable instruments under the laws of the State of Arkansas, subject to provisions as to registration, as set forth in this section.

History. Acts 1975, No. 403, § 5; 1981, No. 474, § 5; A.S.A. 1947, § 20-1629.

14-184-210. Bonds — Trust indenture.

  1. The authorizing resolution may provide for the execution by the district with a bank or trust company, within or without the State of Arkansas, of a trust indenture.
  2. The trust indenture may contain any terms, covenants, and conditions that are deemed desirable by the board including, without limitation, those pertaining to:
    1. The maintenance of various funds and reserves;
    2. The nature and extent of the security;
    3. The issuance of additional bonds and the nature of the lien and pledge, parity or priority, in that event;
    4. The custody and application of the proceeds of the bonds;
    5. The collection and disposition of assessments and revenues;
    6. The investing and reinvesting, in securities specified by the board, of any moneys during periods not needed for authorized purposes; and
    7. The rights, duties, and obligations of the board and the holders and registered owners of the bonds.

History. Acts 1975, No. 403, § 5; 1981, No. 474, § 5; A.S.A. 1947, § 20-1629.

14-184-211. Bonds — Sale.

  1. The bonds may be sold for such price including, without limitation sale at a discount, and at such rate of interest and in such manner as the board may determine by resolution.
  2. The bonds or certificates of indebtedness may be sold to any bank, savings and loan association, or other financial institution regulated by an agency of the state in which it is incorporated, or the federal government, notwithstanding the fact that a director, officer, employee, or shareholder of the financial institution is a member of the board of the district. The provisions of §§ 14-88-309, 14-88-310, 14-88-402 shall not apply to any such transaction.

History. Acts 1975, No. 403, § 5; 1981, No. 474, § 5; A.S.A. 1947, § 20-1629.

14-184-212. Bonds, coupons — Execution — Seal.

      1. The bonds shall be executed by the manual or facsimile signature of the chairman of the board and by the manual signature of the secretary of the board.
      2. The coupons attached to the bonds shall be executed by the facsimile signature of the chairman.
    1. In case any of the officers whose signatures appear on the bonds or coupons shall cease to be such officers before the delivery of the bonds or coupons, their signatures shall, nevertheless, be valid and sufficient for all purposes.
  1. The district shall adopt and use a seal in the execution and issuance of the bonds. Each bond shall be sealed with the seal of the district.

History. Acts 1975, No. 403, § 5; 1981, No. 474, § 5; A.S.A. 1947, § 20-1629.

14-184-213. Bonds — Conversion.

  1. The bonds may be sold with the privilege of conversion into an issue bearing other rate or rates of interest, upon the terms that the board receive no less and pay no more than it would receive and pay if the bonds were not converted.
  2. The conversion shall be subject to the approval of the board.

History. Acts 1975, No. 403, § 5; 1981, No. 474, § 5; A.S.A. 1947, § 20-1629.

14-184-214. Refunding bonds.

    1. Bonds may be issued for the purpose of refunding any bonds issued under this subchapter.
      1. Refunding bonds may be either sold or delivered in exchange for the bonds being refunded.
      2. If sold, the proceeds may be either applied to the payment of the bonds being refunded or deposited in trust and there maintained in cash or investments for the retirement of the bonds being refunded, as shall be specified by the central business improvement district in the resolution or trust indenture securing the bonds.
    1. The resolution or trust indenture securing the refunding bonds may provide that the refunding bonds shall have the same priority on revenues pledged for their payment as was enjoyed by the bonds refunded.
    2. Revenue refunding bonds shall be sold and secured in accordance with the provisions of this subchapter pertaining to the sale and security of the bonds initially issued.

History. Acts 1975, No. 403, § 7; A.S.A. 1947, § 20-1631.

14-184-215. Obligation on bonds.

    1. It shall be plainly stated on the face of each bond that it has been issued under the provisions of this subchapter, that the bonds shall be obligations only of the central business improvement district, and that in no event shall they constitute any indebtedness for which the faith and credit of the municipality or any of its revenues are pledged.
    2. No member of the board of commissioners shall be personally liable on the bonds or for any damages sustained by anyone in connection with any contracts entered into in carrying out the purposes and intent of this subchapter unless he shall have acted with corrupt intent.
  1. The principal of, interest on, and paying agent's fees in connection with the bonds shall be secured by a lien on and pledge of the instruments evidencing loans specified in § 14-184-206.

History. Acts 1975, No. 403, § 6; A.S.A. 1947, § 20-1630.

14-184-216. Bonds — Tax exemption.

  1. Bonds issued under the provisions of this subchapter and the interest on them shall be exempt from all state, county, and municipal taxes.
  2. This exemption shall include income, inheritance, and estate taxes.

History. Acts 1975, No. 403, § 8; A.S.A. 1947, § 20-1632.

A.C.R.C. Notes. Language excluding property taxes from the exemption provided by this section was deleted pursuant to Ark. Const. Amend. 57, § 1 and § 26-3-302. Arkansas Const. Amend. 57, § 1 provides that the General Assembly may classify intangible personal property for assessment at lower percentages of value than other property and may exempt one or more classes of intangible personal property from taxation, or may provide for the taxation of intangible personal property on a basis other than ad valorem. Section 26-3-302 exempts all intangible personal property in this state from all ad valorem tax levies of counties, cities, and school districts in the state as of January 1, 1976.

14-184-217. Public investment in bonds.

  1. Any municipality; any board, commission, or other authority duly established by ordinance of any municipality; the boards of trustees, respectively, of the firemen's relief and pension fund and the policemen's pension and relief fund of any municipality; the board of trustees of any retirement system created by the General Assembly of the State of Arkansas may, in its discretion, invest any of its funds not immediately needed for its purposes in bonds issued under the provisions of this subchapter.
  2. Bonds issued under the provisions of this subchapter shall be eligible to secure the deposit of public funds.

History. Acts 1975, No. 403, § 9; A.S.A. 1947, § 20-1633.

Chapter 185 Metropolitan Port Authorities

Cross References. Disposal of railroad track material, § 15-11-211.

Effective Dates. Acts 1970 (Ex. Sess.), No. 59, § 4: Mar. 13, 1970. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health, and safety shall be in full force and effect from and after its passage and approval.”

Acts 1975 (Extended Sess., 1976), No. 1232, § 6: Feb. 16, 1976. Emergency clause provided: “It has been found and it is hereby declared by the General Assembly that the present laws pertaining to metropolitan port authorities inhibit the financing of improvements immediately necessary to the continued growth and development of the State, that this condition can be remedied only by this Act and that this condition can be remedied without affecting the nature of the obligations authorized to be issued by port authorities. Therefore, an emergency is declared, and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect upon its approval.”

Acts 1981, No. 425, § 54: Mar. 11, 1981. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 1983, No. 623, § 7: Mar. 22, 1983. Emergency clause provided: “It has been found and it is hereby declared by the General Assembly of the State of Arkansas that the proper, economical and efficient operation of the ports, harbors, river-rail terminals, barge terminals and parks for industrial and commercial operations in this State now or hereafter in existence, is essential to the economic and overall benefit and welfare of the State and its inhabitants and the provisions hereof clarifying and expanding the purposes and powers of metropolitan port authorities are necessary for the prompt and full realization of such necessary and intended benefits. Therefore, an emergency is hereby declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall take effect and be in full force from and after its passage and approval.”

Acts 1987, No. 46, § 4: Feb. 16, 1987. Emergency clause provided: “It has been found and it is hereby declared that at least one port authority project pending in this state can be financed only upon the terms expressly permitted by this act, and that such project is essential to the continued development of the economy of a substantial part of the state. Therefore, an emergency is declared to exist and this act, being necessary for the preservation of the public peace and safety, shall be in force upon its passage and approval.”

Acts 1987, No. 1017, § 6: Apr. 14, 1987. Emergency clause provided: “It is hereby found and determined by the General Assembly that because of the case Ricarte v. State, CR 86-31, a question has arisen over the validity of Act 1232 of the Extended Session of 1976; that this Act is a reenactment of the former law; and that the immediate passage of this Act is necessary to clarify the state of the law on this issue. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

Research References

Ark. L. Rev.

Lex Aquae Arkansas, 27 Ark. L. Rev. 429.

C.J.S. 63 C.J.S., Mun. Corp., § 1055.

64 C.J.S., Mun. Corp., § 1812 et seq.

14-185-101. Title.

This chapter shall be referred to and may be cited as the “Metropolitan Port Authority Act of 1961.”

History. Acts 1961, No. 439, § 1; A.S.A. 1947, § 21-1501.

14-185-102. Definitions.

As used in this chapter, unless the context otherwise requires:

  1. “County” means a county of this state or, where a county is divided into two (2) districts, the term “county” means the entire county or either district of the county;
  2. “County court” means the quorum court after the quorum court is constituted and acting as the county court under Arkansas Constitution, Amendment 55 or, until such quorum court is so constituted and acting, the county judge sitting as the county court;
  3. “Construct” means to acquire or build, in whole or in part, in such manner and by such method, including contracting therefor, and if the latter, by negotiation or bidding upon such terms and pursuant to such advertising as the port authority shall determine to be in the public interest and necessary, under the circumstances existing at the time, to accomplish the purposes of and authorities set forth in this chapter;
  4. “Governing body” means the council, board of directors, or city commission of any municipality;
  5. “Municipality” means a city of the first or second class or an incorporated town;
  6. “Equip” means to install or place on or in any building or structure equipment of any and every kind, whether or not affixed, including, without limiting the generality of the foregoing, building service equipment, fixtures, heating equipment, air conditioning equipment, machinery, furniture, furnishings, and personal property of every kind;
  7. “Sell” means to sell for such price, in such manner, and upon such terms as the port authority shall determine including, without limiting the generality of the foregoing, private or public sale, and, if public, pursuant to such advertisement as the port authority shall determine, sale for cash or credit payable in lump sum or in installments, over such period as the port authority shall determine, and, if on credit, with or without interest and at such rate or rates as the port authority shall determine;
  8. “Lease” means to lease for such rentals, for such period or periods and upon such terms and conditions as the port authority shall determine including, without limiting the generality of the foregoing, the granting of such renewal or extension options for such rentals, for such period or periods, and upon such terms and conditions as the port authority shall determine and the granting of such purchase options for such prices and upon such terms and conditions as the port authority shall determine;
  9. “Facilities”, “properties”, or “property” means any real property, personal property, or mixed property of any and every kind that can be used or that will be useful in carrying out any of the purposes of this chapter;
  10. “Acquire” means to obtain at any time, by gift, purchase, or other arrangement, any project or any portion of a project, whether theretofore constructed and equipped, theretofore partially constructed and equipped, or being constructed and equipped at the time of acquisition, for such consideration and pursuant to such terms and conditions as the port authorities shall determine;
  11. “Person” means any natural person, partnership, corporation, association, organization, business trust, and public or private person or entity;
  12. “Port authority” or “port authorities” means a port authority or port authorities established pursuant to the provisions of this chapter;
  13. “Mortgage lien” includes and means security interest in any personal property embodied in the facilities acquired, constructed, reconstructed, extended, equipped, or improved, in whole or in part, with the proceeds of bonds issued under this chapter.

History. Acts 1961, No. 439, § 9; 1961, No. 439, § 18 as added by Acts 1975 (Extended Sess., 1976), No. 1232, § 3; 1970 (Ex. Sess.), No. 59, § 1; 1975 (Extended Sess., 1976), No. 1232, § 1; 1981, No. 425, § 34; 1983, No. 623, § 3; A.S.A. 1947, §§ 21-1509, 21-1517; reen. Acts 1987, No. 1017, §§ 1, 3.

A.C.R.C. Notes. Part of this section was reenacted by Acts 1987, No. 1017, §§ 1, 3. Acts 1987, No. 834 provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

Publisher's Notes. Acts 1983, No. 623, § 5, provided:

“This act, being necessary for the welfare of the state and its inhabitants, shall be liberally construed to effect the proposes hereof.”

14-185-103. Construction.

  1. This chapter is intended and shall be construed to supplement all constitutional provisions and acts of the General Assembly designed to accomplish, in whole or in part, the purposes of this chapter.
  2. When applicable, this chapter may be used as an alternative notwithstanding any constitutional provision or other legislation authorizing counties, municipalities, or port authorities, and other agencies or commissions, to accomplish, in whole or in part, the purposes specified in this chapter.
  3. This chapter shall be liberally construed to accomplish its purposes.

History. Acts 1961, No. 439, § 15; A.S.A. 1947, § 21-1515.

14-185-104. Power to establish.

  1. Two (2) or more counties or two (2) or more municipalities, whether or not in the same county, or one (1) or more counties and one (1) or more municipalities, whether or not in the same county, within or near which there is a navigable river or waterway are authorized and empowered to organize and establish a metropolitan port authority, in the manner and for the accomplishment of the purposes specified in this chapter.
    1. Each authority established under this chapter shall consist of and be governed by a board of directors.
    2. The members of the board shall be selected and shall serve as set forth in this chapter.

History. Acts 1961, No. 439, § 2; A.S.A. 1947, § 21-1502.

14-185-105. Organization of authority.

  1. The governing body of each municipality and the county court of each county desiring to organize a port authority under this chapter shall declare its intention to do so by ordinance of the governing body of the municipality and by order of the county court of the county.
    1. The ordinance shall authorize and direct the mayor of the municipality, and the order shall authorize and direct the county judge of the county to prepare, or cause to be prepared, and to sign and file with the circuit clerk of any county which is to be a party to the organization of an authority under this chapter a petition requesting the circuit court of the county where the petition is filed to establish an authority under this chapter.
    2. The petition shall at least contain the following information:
      1. The identity of the municipalities and counties desiring to organize the port authority;
      2. The population of each petitioning municipality and each petitioning county, which population of a petitioning county wherever referred to in this chapter shall mean the population of the county exclusive of the population of each petitioning municipality in the county, according to the last federal census;
      3. The official name desired by the petitioners for the authority to be established;
      4. The total number of the members of the board of directors of the authority desired by the petitioning municipalities or counties, subject to the conditions pertaining thereto specified in this chapter;
      5. The number of the members of the board of the authority that shall represent each petitioning municipality or county, determined in accordance with the conditions specified in this chapter; and
      6. A request that the circuit court enter an order designating the total number of the members of the board, designating the number that shall represent each petitioning municipality or county and establishing an authority under the provisions of this chapter as a public agency of the petitioning municipalities or counties, but with the powers set forth in this chapter, which need not be enumerated in the order.
    1. The circuit court shall enter an order establishing and naming the authority and designating the board in accordance with the petition.
    2. The circuit court shall enter the order as a record of the court, and it shall be placed in the permanent records of the circuit clerk of the court.
  2. After the entry of the order of the circuit court establishing the authority and after the appointments of the members of it by the governing bodies of the petitioning municipalities and the county courts of the petitioning counties, the authority shall be in existence. It shall thereafter exist as a separate entity and body corporate as set forth in this chapter.

History. Acts 1961, No. 439, § 3; A.S.A. 1947, § 21-1503.

14-185-106. Members of the board of authority.

  1. Immediately after the filing of the order of the circuit court, the governing body of each petitioning municipality and the county court of each petitioning county shall appoint the persons to be the members of the board of the authority established by the order of the circuit court in accordance with the provisions of the order as to the number of members to be selected by the respective petitioning municipalities and counties.
  2. The total number of the members of the board of the authority established by the order must be an odd number, each petitioning municipality and each petitioning county must have at least one (1) representative as a member of the board, and the number of members that represent each petitioning municipality and each petitioning county shall be apportioned in the ratio that each petitioner's population bears to the total population of all petitioners.
    1. The term of each member of the board shall be for three (3) years from the date of his or her appointment by the governing body of the municipality or the county court of the county, and he or she shall serve for such term and thereafter until his or her successor shall be duly appointed and qualified.
    2. At the expiration of the term of each member of the board, the governing body of the municipality or the county court of the county which is represented on the board by the member shall appoint a successor member or may reappoint the same member to another term.
    1. Except as provided in subdivision (d)(2) of this section, a vacancy shall be filled by the governing body of the municipality or the county court of the county represented on the board by the vacating member.
      1. If a vacancy on the board is not filled by the municipality or county within ninety (90) days after the vacancy occurs, a majority of the remaining members of the board shall promptly fill the vacancy by appointing a qualified person to serve for either the unexpired portion of the term of the vacated member or for a new term if the vacating member is unable to serve until a new member is otherwise appointed and qualified.
      2. For the purposes of this section, the expiration of a member's term does not create a vacancy unless the member whose term has expired is unable to serve until his or her successor is appointed and qualified.
  3. Before entering upon his or her duties, each member of the board of the authority shall take and subscribe and file in the office of the circuit clerk of the county where the order establishing the authority was filed an oath to support the United States Constitution and the Arkansas Constitution and faithfully to perform the duties of the office upon which he or she is about to enter.
  4. To be eligible for membership on the board, a person, at the time of his or her appointment and qualification by filing the required oath, must be a qualified elector of the municipality or of the county, as the case may be, that he or she represents on the board.
      1. The board of each authority shall select one (1) of its members as chair, one (1) of its members as secretary, and one (1) of its members as treasurer.
      2. The offices of secretary and treasurer may be combined and held by one (1) member.
    1. The term and duties of the officers shall be fixed by resolution of the board of each authority.

History. Acts 1961, No. 439, § 3; A.S.A. 1947, § 21-1503; Acts 2017, No. 494, § 1.

Amendments. The 2017 amendment rewrote (d).

14-185-107. Permanent records of authority.

A certified copy of each ordinance and a certified copy of each county court order appointing persons to membership on the board shall be filed with the secretary of the board of the authority and shall be and remain part of the permanent records of the authority.

History. Acts 1961, No. 439, § 3; A.S.A. 1947, § 21-1503.

14-185-108. General purposes of authority.

  1. Port authorities are authorized to accomplish the following general purposes:
    1. To establish, acquire, develop, improve, or maintain harbors, ports, river-rail terminals, barge terminals, parks for industrial and commercial operations, and related improvements and facilities in or near any city or incorporated town in the State of Arkansas as it may deem feasible for the expeditious and efficient handling of commerce by water, air, roadway, highway, or other from and to any other part of the State of Arkansas or any other states and foreign countries. The authority shall accept such proposal as is commercially reasonable and in the authority's best interest;
    2. To acquire, purchase, install, lease, own, hold, use, control, construct, equip, maintain, develop, and improve lands and facilities, of whatever nature necessary or desirable, in connection with establishing, developing, improving, and maintaining the ports, harbors, river-rail terminals, barge terminals, and parks for industrial and commercial operations including, without limitation, buildings, warehouses, utilities, and the improvement of portions of waterways, highways or roadways, and other facilities not within the exclusive jurisdiction of the federal government;
    3. To foster and stimulate the shipment of freight and commerce, whether by water, air, roadway, highway, or other, and industrial and commercial development at and through the ports, harbors, river-rail terminals, barge terminals, and parks for industrial and commercial operations and industries and businesses located on them, whether originating within or without the State of Arkansas, including the investigation, handling, and dealing with matters pertaining to all transportation rates and rate structures affecting them;
    4. To cooperate with the federal government, the State of Arkansas, and any agency, department, corporation, or instrumentality of either in the development, improvement, maintenance, and use of the harbors, ports, river-rail terminals, barge terminals, parks for industrial and commercial operations and industries and businesses located in them in connection with the furtherance of the operation and needs of the federal government, the State of Arkansas, and any such industry or business;
    5. To accept and use funds from any sources and to use them in such a manner as is within the purposes of the authorities;
    6. To cooperate with the State of Arkansas and all agencies, departments, and instrumentalities of it and with other port authorities, counties, municipalities, and political subdivisions in the maintenance, development, improvement, and use of the harbors, ports, river-rail terminals, barge terminals, and parks for industrial and commercial operations;
    7. To cooperate with any other state and all its agencies, departments, and instrumentalities and port authorities, counties, municipalities, political subdivisions, and all their instrumentalities and agencies in other states in the maintenance, development, improvement, and use of harbors, ports, river-rail terminals, barge terminals, and parks for industrial and commercial operations;
    8. To act as agent for the federal government or any agency, department, corporation, or instrumentality of it and for the State of Arkansas and any agency, department, instrumentality, or political subdivision of it in any matter pertaining to the accomplishment of the purposes of the authorities;
    9. To acquire, construct, equip, maintain, develop, and improve facilities at the ports, harbors, river-rail terminals, barge terminals, and parks for industrial and commercial operations to secure and develop industry, business, and commerce;
    10. To sell, lease, contract concerning, or permit the use of all or any part of the facilities so acquired, constructed, and equipped to any person for industrial or commercial activities; and
    11. In general, to do and perform any act or function which may tend to or be useful toward the development and improvement of harbors, ports, river-rail terminals, barge terminals, and parks for industrial and commercial operations and to further the movement of waterborne and other forms of commerce, foreign and domestic, through the harbors, ports, river-rail terminals, barge terminals, and parks for industrial and commercial operations.
  2. The enumeration of these purposes shall not limit or circumscribe the broad objectives and purposes of this chapter and the broad objectives of developing to the utmost the ports, harbors, river-rail terminals, barge terminals, and industrial and commercial development possibilities of the State of Arkansas, and its political subdivisions.

History. Acts 1961, No. 439, § 4; 1983, No. 623, § 1; A.S.A. 1947, § 21-1504.

Cross References. Multicounty Airport and Riverport Financing Act, § 26-81-101 et seq.

14-185-109. Powers of authority generally.

In order to enable authorities to carry out the purposes of this chapter, the authorities shall:

  1. Have the powers of a body corporate including the power to sue and be sued, to make contracts, and to adopt and use a seal;
  2. Have the power to rent, acquire, improve, develop, operate, maintain, lease, buy, own, mortgage, otherwise encumber, sell, dispose of, and otherwise deal with such real, personal, or mixed property as the authorities may deem proper, necessary, or desirable to carry out the purposes and provisions of this chapter, all or any of them;
  3. Have the power to acquire, purchase, install, lease, rent, own, hold, use, control, develop, sell, improve, construct, maintain, equip and operate, and otherwise deal with and dispose of any buildings, wharves, docks, piers, quays, elevators, tipples, bulk loading and unloading facilities, water terminals, air terminals, rail terminals, roadways and approaches, compresses, refrigeration storage plants, landing places, basins, belt line roads, highways, bridges, causeways, shipyards, shipping facilities, transportation facilities, boats, barges, machinery, equipment, dredging of approaches, warehouses, and other structures, and any and all facilities and work in connection with them, of every nature whatever incidental to and useful or convenient for the accomplishment of the purposes of this chapter and needful for the convenient use of them in aid of commerce, whether by water, air, roadway, highway, or other, and industrial and commercial operations;
  4. Have the power consistent with this chapter to acquire, own, construct, reconstruct, extend, equip, improve, operate, maintain, sell, lease, lease with or without options to purchase, lease with or without options to extend or renew, contract concerning, or otherwise deal in, with, or dispose of any lands, buildings, improvements, machinery, equipment, or facilities of any and every nature for the securing and developing of industry and commerce and parks for industrial and commercial operations;
  5. Have the power to appoint and employ and dismiss at pleasure, such agents and employees as may be selected by the authorities and to fix and pay their compensation;
  6. Have the power to establish an office for the transaction of business at such place as, in the opinion of the authorities, shall be advisable or necessary in carrying out the purposes of this chapter;
  7. Have the power to create and operate such agencies, departments, and instrumentalities as the authorities may deem necessary, desirable, or useful for the accomplishment and furtherance of any of the purposes of this chapter;
  8. Have the power to pay and expend funds for all necessary costs and expenses involved in and incident to the formation and organization of the authorities and the carrying out of the powers and purposes of this chapter;
  9. Have the power to adopt, alter, or repeal from time to time its own bylaws, rules, and regulations consistent with this chapter governing the manner in which the business of the authorities may be transacted and in which the purposes and powers may be transacted and in which the purposes and powers of the authorities may be accomplished and carried out;
  10. Have the power to fix and change, from time to time, rates and charges for the use of the facilities and services of the authorities;
  11. Have the power to promulgate and to alter or repeal, from time to time, rules and regulations consistent with this chapter and to enforce the same governing and pertaining to the use of the facilities and services of the authorities;
  12. Have the power to sell, contract concerning, or lease any of its docks, wharves, piers, quays, elevators, compresses, refrigeration storage plants, warehouses, industrial or commercial plants and facilities, and other improvements and facilities of whatever nature and to permit the use of any such facilities by any person engaging in any industrial or commercial activity;
  13. Have the power to acquire, construct, equip, and operate any and all facilities in or about the ports, harbors, river-rail terminals, barge terminals, and parks for industrial and commercial operations for the purpose of securing and developing industrial and commercial operations.
  14. Have the power to do any and all other acts and things of whatever nature consistent with this chapter necessary or incidental to the carrying out of the powers specified in this section and the accomplishment of the purposes of this chapter, whether or not specifically enumerated; and
  15. Be authorized to carry out the powers of the authorities and to accomplish the purposes of this chapter.

History. Acts 1961, No. 439, § 5; 1983, No. 623, § 2; A.S.A. 1947, § 21-1505.

14-185-110. Warehouse facilities — Proposals for lease or operation.

With regard to warehouse facilities used for commercial warehousing purposes mentioned § 14-185-108(a)(1)-(4), (6), (7), and (9)-(11), § 14-185-108(b), and § 14-185-109(2), (3), (12), and (13), the authority, prior to entering into a new lease of existing warehouse facilities or into a lease of new warehouse facilities, in whole or in part, or prior to operating warehouse facilities for these purposes, in whole or in part, shall first publicly solicit proposals for the leasing or operation of the warehouse facilities for these purposes on such terms as shall be customary and usual in the commercial warehousing industry. The authority shall accept such proposal as is commercially reasonable and in the authority's best interest.

History. Acts 1961, No. 439, §§ 4, 5; 1983, No. 623, §§ 1, 2; A.S.A. 1947, §§ 21-1504, 21-1505.

14-185-111. Acquisition of rights-of-way and property.

  1. For the acquiring of rights-of-way and property necessary or desirable for the carrying out of their powers and for the accomplishment of the purposes of this chapter, port authorities shall have the right and power to acquire property by gift, by purchase, by negotiation, or by condemnation.
  2. If an authority determines to exercise the right of eminent domain, it may be exercised in the manner provided for taking private property for railroads as provided by §§ 18-15-1202 — 18-15-1207, in the manner provided by §§ 18-15-301 — 18-15-307, or in the manner provided by any other statutes enacted for the exercise of the power of eminent domain by the State of Arkansas, or by any of its officers, departments, agencies, or political subdivisions.
  3. Authorities may exchange any property acquired under this chapter for other property necessary or desirable in the carrying out of the powers of the authorities.

History. Acts 1961, No. 439, § 6; A.S.A. 1947, § 21-1506.

14-185-112. Condemnation of utility system prohibited.

Nothing in this chapter shall be construed to authorize any port authority to acquire by condemnation, or to issue bonds and use the proceeds of them to acquire by condemnation, a utility plant or utility distribution system, or any part of them, owned or operated by a regulated public utility for the purpose of operation by the acquiring authority.

History. Acts 1961, No. 439, § 17; A.S.A. 1947, § 21-1516.

14-185-113. Operation of terminal railroads.

    1. Port authorities shall have the power and are authorized to acquire, own, lease, locate, install, construct, equip, hold, maintain, control, and operate at harbors, ports, and river-rail and barge terminals or lines of terminal railroads with necessary sidings, turnouts, spur branches, switches, yard tracks, bridges, trestles, and causeways.
    2. In connection with these lines and appurtenant thereto, authorities shall have the further right to lease, install, construct, acquire, own, maintain, control, and use any and every kind or character of motive power and conveyances or appliances necessary or proper to carry passengers, goods, wares, and merchandise over, along, or upon the tracks of the terminal railroads or other conveyances.
    1. Authorities shall have the right and power to make agreements as to scale of wages, seniority, working conditions, and related matters with locomotive engineers, firemen, switchmen, foremen, hostlers, and other employees engaged in the operation of the terminal railroads and the service and equipment pertinent to them.
    2. Authorities shall have the right and power with their terminal railroads to connect with or cross any other railroad upon payment of just compensation and to receive, deliver to, and transport the freight, passengers, and cars of common carrier railroads as though they were ordinary common carriers.

History. Acts 1961, No. 439, § 8; A.S.A. 1947, § 21-1508.

14-185-114. Dealings with federal government.

    1. Port authorities are authorized to assign, transfer, lease, convey, grant, or donate to the federal government, or to the appropriate agency of it, any or all of their property, for use by the federal government, or the appropriate agency of it, for any purpose included within the purposes of this chapter.
    2. No such assignment, transfer, lease, conveyance, grant, or donation shall be made which would constitute an impairment of the covenants and obligations of any authority in connection with bonds or other certificates of indebtedness issued and outstanding by the authority or which would constitute an event of default under any indenture or similar instrument securing any indebtedness of any authority.
    3. Any assignment, transfer, lease, conveyance, grant, or donation, subject to the limitations specified, shall be upon such terms as the authority involved may deem advisable.
  1. In the event the federal government or the appropriate agency or department of it should decide to undertake the acquisition, construction, equipment, maintenance, or operation of any of the properties and facilities of any port authority and should decide to acquire the lands and properties necessarily needed in connection with it by condemnation or otherwise, authorities are further authorized to transfer and pay over to the federal government or to the appropriate agency of it such of the moneys belonging to the authorities as may be reasonably required by the federal government or the appropriate agency of it to meet and pay the amount of judgments in condemnation proceedings as may be rendered from time to time against the federal government or the appropriate agency of it or as may be reasonably necessary to permit and allow the federal government or the appropriate agency of it to acquire and become possessed of such lands and properties as are reasonably required for the acquisition, construction, and use of the properties and facilities referred to in this section.

History. Acts 1961, No. 439, § 7; A.S.A. 1947, § 21-1507.

14-185-115. Assistance by municipalities and counties.

    1. It is determined that the ports, harbors, river-rail and barge terminals, and the facilities authorized to be acquired, constructed, reconstructed, extended, equipped, or improved by port authorities under this chapter are necessary for and useful in the securing and developing of industry in the State of Arkansas.
    2. Therefore, port authorities are authorized and empowered to contract and agree with the municipalities and the counties represented on their boards of directors concerning the making available by the municipalities and counties to the authorities of the proceeds of bonds issued by the municipalities and counties under the provisions of Arkansas Constitution, Amendment 49 [repealed] for the purpose of financially assisting the authorities to carry out the powers conferred upon them by this chapter and to accomplish the purposes of this chapter upon such terms as may be agreed upon by the municipalities and counties and the authorities consistent with the provisions of Arkansas Constitution, Amendment 49 [repealed].
    1. In addition, municipalities and counties are expressly authorized to use and make available to the authorities, by way of donation, loan, or otherwise, any available revenues of the municipalities and counties for the purpose of financially assisting the authorities to carry out the powers conferred upon them by this chapter and to accomplish the purposes of this chapter.
    2. Any such available revenues so made available may be used by the authorities either alone or together with any other available funds and revenues for the accomplishment of the authorized purposes.

History. Acts 1961, No. 439, § 14; A.S.A. 1947, § 21-1514.

A.C.R.C. Notes. It is questionable whether Ark. Const. Amend. 49 is repealed in whole or whether only those provisions that conflict with Ark. Const. Amend. 62 are repealed by Ark. Const. Amend. 62.

14-185-116. Authority to borrow funds, issue bonds.

  1. Port authorities are authorized and empowered to enter into the necessary contracts for the borrowing of funds, pursuant to the provisions of this chapter, which they may determine will be required to carry out the powers of port authorities and to carry out the purposes of this chapter. In this regard, port authorities are authorized to issue bonds and to use the proceeds of them for the carrying out of the powers of port authorities and the accomplishment of the purposes of this chapter, either alone or together with other available funds and revenues.
  2. Any port authority is also authorized to issue revenue bonds under the provisions of this chapter for the purpose of applying a major portion of the proceeds of the revenue bonds, alone or with other revenues that may be pledged, to the acquisition of an investment contract or contracts at a rate or rates of interest at least sufficient to provide for principal, premium, if any, and interest on the revenue bonds, as due, in consideration of the receipt of a portion of the proceeds for application by the port authority to one (1) or more of the purposes authorized by this chapter.

History. Acts 1961, No. 439, § 9; 1975 (Extended Sess., 1976), No. 1232, § 1; A.S.A. 1947, § 21-1509; Acts 1987, No. 46, § 1; reen. Acts 1987, No. 1017, § 1.

A.C.R.C. Notes. Part of this section was reenacted by Acts 1987, No. 1017, § 1. Acts 1987, No. 834 provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

14-185-117. Bonds — Authority to issue.

This chapter shall be the sole authority required for the issuance of bonds under it and for the exercise of the powers of authorities established under this chapter. It shall not be necessary for the municipalities and counties represented on the boards of directors of authorities to take any action authorizing or approving the issuance of bonds or the exercise of any other powers by the authorities.

History. Acts 1961, No. 439, § 10; 1975 (Extended Sess., 1976), No. 1232, § 2; A.S.A. 1947, § 21-1510; reen. Acts 1987, No. 1017, § 2.

A.C.R.C. Notes. This section was reenacted by Acts 1987, No. 1017, § 2. Acts 1987, No. 834 provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

14-185-118. Bonds — Covenants and agreements — Enforcement.

All covenants and agreements entered into and made by an authority shall be binding in all respects on the authority and the members of it and their successors from time to time in accordance with the terms of such covenants and agreements. All of those provisions shall be enforceable by mandamus or other appropriate proceedings at law or in equity.

History. Acts 1961, No. 439, § 10; 1975 (Extended Sess., 1976), No. 1232, § 2; A.S.A. 1947, § 21-1510; reen. Acts 1987, No. 1017, § 2.

A.C.R.C. Notes. This section was reenacted by Acts 1987, No. 1017, § 2. Acts 1987, No. 834 provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

14-185-119. Bonds — Purposes.

Bonds may be issued from time to time for the acquisition, construction, and equipment of facilities and the reconstructing, extending, improving, equipping, or reequipping of facilities.

History. Acts 1961, No. 439, § 9; 1975 (Extended Sess., 1976), No. 1232, § 1; A.S.A. 1947, § 21-1509; reen. Acts 1987, No. 1017, § 1.

A.C.R.C. Notes. This section was reenacted by Acts 1987, No. 1017, § 1. Acts 1987, No. 834 provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

14-185-120. Bonds — Principal amount.

Each bond issue shall be in the principal amount sufficient, together with other available funds, for the acquisition, construction, and equipment of facilities or the reconstruction, extension, improvement, equipment, or reequipment of facilities, all costs of issuing bonds, the amount necessary for a reserve, if deemed desirable by the authority issuing the bonds, the amount necessary to provide for debt service on the bonds until revenues for the payment of them are available, and any cost of whatever nature necessarily incidental to them.

History. Acts 1961, No. 439, § 9; 1975 (Extended Sess., 1976), No. 1232, § 1; A.S.A. 1947, § 21-1509; reen. Acts 1987, No. 1017, § 1.

A.C.R.C. Notes. This section was reenacted by Acts 1987, No. 1017, § 1. Acts 1987, No. 834 provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

14-185-121. Bonds — Resolution or trust indenture generally.

The authority issuing the bonds, by the resolution or indenture, among other things, may control the subsequent issuance of additional bonds and the priority, between and among issues, of the pledge of revenues and of the mortgage lien, provide for the use of surplus pledged revenues, and provide for the creation of special trust funds to be maintained in such banks as the authority issuing the bonds may select. The moneys in these special trust funds shall be secured and disbursed as determined by the authority. The special trust funds may, without limitation, include a bond fund, a depreciation fund, an operation and maintenance fund, and such reserve funds as the authority issuing the bonds may determine to be in the best interests of the authority in accomplishing the purposes of this chapter.

History. Acts 1961, No. 439, § 10; 1975 (Extended Sess., 1976), No. 1232, § 2; A.S.A. 1947, § 21-1510; reen. Acts 1987, No. 1017, § 2.

A.C.R.C. Notes. This section was reenacted by Acts 1987, No. 1017, § 2. Acts 1987, No. 834 provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

14-185-122. Bonds — Authorizing resolution.

  1. Each issue of bonds shall be authorized by resolution of the authority issuing the bonds.
  2. Priority, between and among successive issues, of the pledge of revenues and mortgage lien may be controlled by the resolutions authorizing the issuance of bonds under this chapter.

History. Acts 1961, No. 439, § 9; 1970 (Ex. Sess.), No. 59, § 1; 1975 (Extended Sess., 1976), No. 1232, § 1; 1981, No. 425, § 34; A.S.A. 1947, § 21-1509; reen. Acts 1987, No. 1017, § 1.

A.C.R.C. Notes. This section was reenacted by Acts 1987, No. 1017, § 1. Acts 1987, No. 834 provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

14-185-123. Bonds — Terms and conditions.

  1. As the authorizing resolution may provide, the bonds may:
    1. Be coupon bonds payable to bearer;
    2. Be registered as to principal or as to principal and interest, or be coupon bonds subject to registration as to principal or as to principal and interest;
    3. Be in one (1) or more series;
    4. Bear such date or dates;
    5. Mature at such time or times, not exceeding thirty-five (35) years from their respective dates;
    6. Bear interest at such rate or rates;
    7. Be in such form;
    8. Be executed in such manner;
    9. Be payable in such medium of payment at such place or places;
    10. Be subject to such terms of redemption; and
    11. Contain such terms, covenants, and conditions including, without limitation, those pertaining to:
      1. The custody and application of the proceeds of the bonds;
      2. The collection and disposition of revenues;
      3. The maintenance and investment of various funds and reserves;
      4. The nature and extent of the security;
      5. The rights, duties, and obligations of the authority issuing the bonds and of the trustee for the holders or registered owners of the bonds; and
      6. The rights of the holders or registered owners of the bonds.
  2. Bonds issued under this chapter shall have all of the qualities of negotiable instruments under the negotiable instruments laws of the State of Arkansas, subject to the provisions of this section pertaining to registration.

History. Acts 1961, No. 439, § 9; 1970 (Ex. Sess.), No. 59, § 1; 1975 (Extended Sess., 1976), No. 1232, § 1; 1981, No. 425, § 34; A.S.A. 1947, § 21-1509; reen. Acts 1987, No. 1017, § 1.

A.C.R.C. Notes. This section was reenacted by Acts 1987, No. 1017, § 1. Acts 1987, No. 834 provided that 1987 legislative reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

14-185-124. Bonds — Trust indenture.

  1. Each resolution of an authority authorizing the issuance of bonds may provide for the execution of an indenture defining the rights of the holders and registered owners of the bonds and providing for the appointment of a trustee for the holders and registered owners of the bonds.
  2. The indenture may control the priority, between and among successive issues, of the pledge of revenues and mortgage lien and may control any other terms, covenants, and conditions that are deemed desirable, including without limitation, those pertaining to:
    1. The custody and application of the proceeds of the bonds;
    2. The collection and disposition of revenues;
    3. The maintenance of various funds and reserves;
    4. The nature and extent of the security;
    5. The rights, duties, and obligations of the authority and the trustee for the holders and registered owners of the bonds; and
    6. The rights of the holders and registered owners of the bonds.

History. Acts 1961, No. 439, § 9; 1975 (Extended Sess., 1976), No. 1232, § 1; A.S.A. 1947, § 21-1509; reen. Acts 1987, No. 1017, § 1.

A.C.R.C. Notes. This section was reenacted by Acts 1987, No. 1017, § 1. Acts 1987, No. 834 provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

14-185-125. Bonds — Contents.

It shall be plainly stated on the face of each bond issued under this chapter that it has been issued under the provisions of this chapter.

History. Acts 1961, No. 439, § 10; 1975 (Extended Sess., 1976), No. 1232, § 2; A.S.A. 1947, § 21-1510; reen. Acts 1987, No. 1017, § 2.

A.C.R.C. Notes. This section was reenacted by Acts 1987, No. 1017, § 2. Acts 1987, No. 834 provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

14-185-126. Bonds — Sale.

Bonds issued under this chapter may be sold for such price including, without limitation, sale at a discount and in such manner as the authority issuing the bonds may determine by resolution.

History. Acts 1961, No. 439, § 9; 1970 (Ex. Sess.), No. 59, § 1; 1975 (Extended Sess., 1976), No. 1232, § 1; 1981, No. 425, § 34; A.S.A. 1947, § 21-1509; reen. Acts 1987, No. 1017, § 1.

A.C.R.C. Notes. This section was reenacted by Acts 1987, No. 1017, § 1. Acts 1987, No. 834 provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

14-185-127. Bonds, coupons — Execution.

    1. Bonds issued under this chapter may be executed by the facsimile signature of the chairman of the authority issuing the bonds and by the manual signature of the secretary of the authority issuing the bonds and sealed with the seal of the authority issuing the bonds.
    2. The coupons attached to the bonds may be executed by the facsimile signature of the chairman of the authority issuing the bonds.
  1. In case any of the officers whose signatures appear on the bonds or coupons shall cease to be such officers before the delivery of the bonds or coupons, their signatures shall, nevertheless, be valid and sufficient for all purposes.

History. Acts 1961, No. 439, § 9; 1975 (Extended Sess., 1976), No. 1232, § 1; A.S.A. 1947, § 21-1509; reen. Acts 1987, No. 1017, § 1.

A.C.R.C. Notes. This section was reenacted by Acts 1987, No. 1017, § 1. Acts 1987, No. 834 provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

14-185-128. Bonds — Conversion.

Bonds issued under this chapter may be sold with the privilege of conversion to an issue bearing a lower rate or rates of interest upon such terms that the authority issuing the bonds receive no less and pay no more than it would receive and pay if the bonds were not converted. The conversion shall be subject to the approval of the authority issuing the bonds.

History. Acts 1961, No. 439, § 9; 1970 (Ex. Sess.), No. 59, § 1; 1975 (Extended Sess., 1976), No. 1232, § 1; 1981, No. 425, § 34; A.S.A. 1947, § 21-1509; reen. Acts 1987, No. 1017, § 1.

A.C.R.C. Notes. This section was reenacted by Acts 1987, No. 1017, § 1. Acts 1987, No. 834 provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

14-185-129. Bonds — Issues.

There may be separate issues involving different facilities and there may be successive issues involving the same facilities.

History. Acts 1961, No. 439, § 9; 1975 (Extended Sess., 1976), No. 1232, § 1; A.S.A. 1947, § 21-1509; reen. Acts 1987, No. 1017, § 1.

A.C.R.C. Notes. This section was reenacted by Acts 1987, No. 1017, § 1. Acts 1987, No. 834 provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

14-185-130. Bonds — General or special obligations.

Bonds issued under this chapter shall be general or special obligations only of the port authority issuing the bonds. In no event shall they constitute an indebtedness for which the faith and credit of the State of Arkansas or the faith and credit of any municipality or county, or other political subdivision of the State of Arkansas or any of their revenues are pledged.

History. Acts 1961, No. 439, § 10; 1975 (Extended Sess., 1976), No. 1232, § 2; A.S.A. 1947, § 21-1510; Acts 1987, No. 46, § 2; reen. Acts 1987, No. 1017, § 2.

A.C.R.C. Notes. This section was reenacted by Acts 1987, No. 1017, § 2. Acts 1987, No. 834 provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

14-185-131. Bonds — Liability.

No member of any port authority shall be personally liable on the bonds or for any damages sustained by anyone in connection with the contracts with the holders and registered owners of the bonds or the construction, reconstruction, extension, improvement, or equipping of buildings or facilities unless the member shall have acted with a corrupt intent.

History. Acts 1961, No. 439, § 10; 1975 (Extended Sess., 1976), No. 1232, § 2; A.S.A. 1947, § 21-1510; Acts 1987, No. 46, § 2; reen. Acts 1987, No. 1017, § 2.

A.C.R.C. Notes. This section was reenacted by Acts 1987, No. 1017, § 2. Acts 1987, No. 834 provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

14-185-132. Bonds — Pledge of revenues.

  1. The principal of, premium, if any, or interest on, and trustee's and paying agent's fees in connection with each issue of bonds issued by the port authority under this chapter shall be secured by a pledge of, and shall be payable from, the revenues derived from the lands, buildings, or facilities acquired, constructed, reconstructed, extended, improved, or equipped, in whole or in part, with the proceeds of the bonds of the particular issue.
  2. In addition, the port authority issuing the bonds is authorized to pledge to, and use for the payment of the principal of, premium, if any, or interest on, and trustee's and paying agent's fees in connection with a particular issue of bonds, revenues derived from other lands, buildings, or facilities owned or held by the port authority, and an investment contract or contracts entered into by the port authority for the purpose of paying and securing the bonds, and any revenues to be derived from the contract or contracts.

History. Acts 1961, No. 439, § 10; 1975 (Extended Sess., 1976), No. 1232, § 2; A.S.A. 1947, § 21-1510; Acts 1987, No. 46, § 2; reen. Acts 1987, No. 1017, § 2.

A.C.R.C. Notes. This section was reenacted by Acts 1987, No. 1017, § 2. Acts 1987, No. 834 provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

14-185-133. Refunding bonds.

    1. Bonds may be issued under this chapter for the purpose of refunding any bonds theretofore issued under this chapter.
      1. Refunding bonds may be issued alone or combined with bonds issued under this chapter into a single issue for the purpose of refunding outstanding bonds, acquiring lands, and constructing and equipping buildings or facilities or reconstructing, extending, improving, or reequipping existing buildings or facilities.
        1. When refunding bonds are issued, the bonds may be either sold or delivered in exchange for the outstanding bonds being refunded.
        2. If sold, the proceeds may either be applied to the payment of the bonds being refunded, or the proceeds may be deposited in escrow for the retirement of them.
    1. All refunding bonds shall, in all respects, be authorized, issued, and secured in the manner provided for other bonds issued under this chapter and shall have all the attributes of such bonds.
    2. The resolution or indenture authorizing or securing refunding bonds may provide that the bonds shall have the same priority of lien on the revenues pledged for their payment and on the property mortgaged as security for their payment as was enjoyed by the bonds refunded by them.

History. Acts 1961, No. 439, § 11; A.S.A. 1947, § 21-1511.

14-185-134. Bonds — Tax exemption.

  1. Bonds issued under the provisions of this chapter shall be exempt from all state, county, and municipal taxes.
  2. This exemption shall include income, inheritance, and estate taxes.

History. Acts 1961, No. 439, § 12; A.S.A. 1947, § 21-1512.

A.C.R.C. Notes. Language excluding property taxes from the exemption provided by this section was deleted pursuant to Ark. Const. Amend. 57, § 1 and § 26-3-302. Arkansas Const. Amend. 57, § 1 provides that the General Assembly may classify intangible personal property for assessment at lower percentages of value than other property and may exempt one or more classes of intangible personal property from taxation, or may provide for the taxation of intangible personal property on a basis other than ad valorem. Section 26-3-302 exempts all intangible personal property in this state from all ad valorem tax levies of counties, cities, and school districts in the state as of January 1, 1976.

14-185-135. Bonds as legal investment.

Bonds issued under this chapter shall be eligible to secure deposits of all public funds and shall be legal for the investment of bank, insurance company, and retirement funds.

History. Acts 1961, No. 439, § 13; A.S.A. 1947, § 21-1513.

14-185-136. Bonds — Mortgage lien.

  1. The resolution or indenture referred to in §§ 14-185-122 and 14-185-124 may, but need not, impose a foreclosable mortgage lien upon the facilities acquired, constructed, reconstructed, extended, equipped, or improved, in whole or in part, with the proceeds of bonds issued under this chapter.
  2. The nature and extent of the mortgage lien may be controlled by the resolution or indenture including, without limitation, provisions pertaining to:
    1. The release of all or part of the land, building, or facilities from the mortgage lien; and
    2. The priority of the mortgage lien in the event of successive bond issues as authorized by this chapter.
  3. The resolution or indenture authorizing or securing the bonds may authorize any holder or registered owner of bonds issued under the provisions of this chapter or a trustee on behalf of all holders and registered owners, either at law or in equity, to enforce the mortgage lien and, by proper suit, to compel the performance of the duties of the officials of the authority set forth in this chapter and set forth in the resolution or indenture authorizing or securing the bonds.

History. Acts 1961, No. 439, § 9; 1975 (Extended Sess., 1976), No. 1232, § 1; A.S.A. 1947, § 21-1509; reen. Acts 1987, No. 1017, § 1.

A.C.R.C. Notes. This section was reenacted by Acts 1987, No. 1017, § 1. Acts 1987, No. 834 provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

14-185-137. Bonds — Default — Receiver.

  1. In the event of a default in the payment of the principal of or interest on any bonds issued under this chapter, any court having jurisdiction may appoint a receiver to take charge of the land, buildings, or facilities upon which there is a mortgage lien securing the bonds.
  2. The receiver shall have the power to operate and maintain the land, buildings, or facilities and to charge and collect rates or rents with reference to them. These rents shall be sufficient to provide for the payment of the principal of and interest on bonds, after providing for the payment of any costs of receivership and operating expenses of the land, buildings, or facilities and to apply the income and revenues derived from them in conformity with this chapter and the resolution or indenture authorizing or securing the bonds.
  3. When the default has been cured, the receivership shall be ended and the properties returned to the authority issuing the bonds.
  4. The relief afforded by this section shall be construed to be in addition and supplemental to the remedies that may be afforded the trustee for the bondholders and the bondholders in the resolution or indenture authorizing or securing the bonds and shall be so granted and administered as to accord full recognition to priority rights of bondholders as to the pledge of revenues from, the mortgage lien on, the land, buildings, or facilities as specified in and fixed by the resolution or indenture authorizing or securing successive bond issues.

History. Acts 1961, No. 439, § 9; 1975 (Extended Sess., 1976), No. 1232, § 1; A.S.A. 1947, § 21-1509; reen. Acts 1987, No. 1017, § 1.

A.C.R.C. Notes. This section was reenacted by Acts 1987, No. 1017, § 1. Acts 1987, No. 834 provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

Chapter 186 Harbors And Port Facilities Generally

Research References

C.J.S. 63 C.J.S., Mun. Corp., § 1055.

64 C.J.S., Mun. Corp., § 1812 et seq.

Subchapter 1 — General Provisions

Cross References. General authority to establish wharves and landing places, § 14-54-601.

Local government reserve funds, § 14-73-101 et seq.

Municipal wharf improvement districts, § 14-187-101 et seq.

Effective Dates. Acts 1875, No. 1, § 95: effective on passage.

14-186-101. Powers of city council generally.

    1. A city council shall have power to:
      1. Establish, construct, and regulate landing places, levees, wharves, docks, piers, and basins;
      2. Fix the rates of landing, wharfage, and dockage; and
      3. Use, for the purposes indicated, any public landing or any property belonging to or under the control of the city.
    2. For these purposes, the council shall have the use and control of the shore or bank of any lake or river, not the property of individuals, to the extent and in the manner that the state can grant such use or control.
    1. The council shall have the power to:
      1. Appoint, or to provide that the qualified voters shall elect, harbormasters, wharfmasters, port wardens, and other officers usual or proper for the regulation of the navigation, trade, or commerce of the city;
      2. Define their duties and powers; and
      3. Fix their fees and compensation.
    2. Copies of the examination and surveys and of the proceedings of any port warden in the usual discharge of the duties of this office, certified under his hand, shall be prima facie evidence of the facts stated in them.

History. Acts 1875, No. 1, § 8, p. 1; C. & M. Dig., §§ 7609-7612; Pope's Dig., §§ 9704-9706, 9722; A.S.A. 1947, § 19-2701.

Subchapter 2 — Municipal Port Authorities

Effective Dates. Acts 1947, No. 167, § 15: approved Mar. 5, 1947. Emergency clause provided: “This act being necessary for the public health, peace and safety, an emergency is hereby declared to exist and the same shall be in full force and effect from and after its passage.”

Acts 1983, No. 622, § 7: Mar. 22, 1983. Emergency clause provided: “It has been found and it is hereby declared by the General Assembly of the State of Arkansas that the proper, economical and efficient acquisition, construction, equipment and operation of the Ports, Harbors, River-rail Terminals, Barge Terminals and Parks for industrial and commercial operations in this State now or hereafter in existence, is essential to the economic and overall benefit and welfare of the State and its inhabitants and the provisions hereof clarifying and expanding the purposes and powers of Authorities are necessary for the prompt and full realization of such necessary and intended benefits. Therefore, an emergency is hereby declared to exist and this Act, being necessary for the immediate preservation of the public peace, health and safety, shall take effect and be in full force from and after its passage and approval.”

Acts 1991, No. 735, § 5: Mar. 25, 1991. Emergency clause provided: “It is hereby found and determined by the Seventy-Eighth General Assembly that the present law provides that the mayor of the city or incorporated town creating a port authority shall be a member of the governing board and shall be chairman; that the law should provide that the mayor may be a member of the board; and that this act would provide an option for the mayor to serve on the board and serve as chairman or to not serve on the board and appoint another member to be chairman. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1997, No. 1045, § 5: Apr. 2, 1997. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that there is an immediate need to facilitate the disbursement of funds by municipal port authorities. Therefore an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2011, No. 833, § 2: Mar. 30, 2011. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the need for greater citizen input into the operations of a municipal port authority is essential to the public health, safety, and welfare; that this expansion of the authority would allow cities to have great citizen input; and that this act is immediately necessary because all cities should be able to expand this authority as soon as possible. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

14-186-201. Definitions.

As used in this subchapter, unless the context otherwise requires:

  1. “Governing body” means the council, board of directors, or other like body in which the legislative functions of a city or incorporated town are vested;
  2. “Facilities” means real property, personal property, or mixed property of any and every kind including, without limitation, rights-of-way, utilities, materials, equipment, fixtures, machinery, furniture, furnishings, buildings, and other improvements of every kind;
  3. “Acquire” means to obtain, at any time, by gift, purchase, or other arrangement, any project, or any portion of a project, whether theretofore constructed and equipped, theretofore partially constructed and equipped, or being constructed and equipped at the time of acquisition, for such consideration and pursuant to such terms and conditions as the municipal port authority shall determine;
  4. “Construct” means to acquire or build, in whole or in part, in such manner and by such method, including contracting therefor, and if the latter, by negotiation or bidding upon such terms and pursuant to such advertising, as determined by the municipal port authority, under the circumstances existing at the time, will most effectively serve the purposes of this subchapter;
  5. “Equip” means to install or place in, or on, any building or structure equipment of any and every kind, whether or not affixed, including, without limitation, building service equipment, fixtures, heating equipment, air conditioning equipment, machinery, furniture, furnishings, and personal property of every kind;
    1. “Lease” means to lease for such rentals, for such periods, and upon such terms and conditions as the municipal port authority shall determine. It also shall mean the granting of such extension and purchase options for such prices and upon such terms and conditions as the authority shall determine.
    2. With regard to warehouse facilities used for commercial warehousing purposes, the municipal port authority, prior to entering into a new lease of existing warehouse facilities or into a lease of new warehouse facilities, in whole or in part, or prior to operating warehouse facilities for these purposes, in whole or in part, shall first publicly solicit proposals for the leasing or operation of the warehouse facilities for these purposes on such terms as shall be customary and usual in the commercial warehousing industry, and the authority shall accept such proposal as is commercially reasonable and in the authority's best interest;
  6. “Sell” means to sell for such price, in such manner, and upon such terms as the municipal port authority shall determine including, without limitation, public or private sale and, if public, pursuant to such advertisement as the authority shall determine, and to sell for cash or on credit, payable in lump sum or in such installments as the authority shall determine, and if on credit, with or without interest and at such rate or rates as the authority may determine;
  7. “Person” means any natural person, partnership, corporation, association, organization, business trust, and public or private person or entity;
  8. “Port authority” or “authority” means a municipal port authority established pursuant to the provisions of this subchapter.

History. Acts 1947, No. 167, § 16, as added by Acts 1983, No. 622, § 3; A.S.A. 1947, § 19-2731.1.

Publisher's Notes. Acts 1983, No. 622, § 5, provided:

“This act, being necessary for the welfare of the state and its inhabitants, shall be liberally construed to effect the purposes hereof.”

14-186-202. Construction.

  1. It is intended that the provisions of this subchapter shall be liberally construed to accomplish the purposes provided for, or intended to be provided for, in this subchapter.
  2. Where strict construction would result in the defeat of the accomplishment of any of the actions authorized in this subchapter and a liberal construction would permit or assist in the accomplishment of them, the liberal construction shall be chosen.

History. Acts 1947, No. 167, § 12; A.S.A. 1947, § 19-2731.

14-186-203. Creation of authority — Members.

    1. The municipal port authority shall be created by ordinance of the governing body of the city or town and shall be an instrumentality of the city or town creating the authority.
      1. Any city or incorporated town in the State of Arkansas shall have the right, by ordinance, to create and set up a port authority.
        1. The authority shall consist of and be governed by a board of not less than five (5) members and not more than seven (7) members, one (1) of whom may be the mayor of the city or incorporated town creating the authority.
        2. If the mayor is a member of the port authority, the mayor shall be chair.
        3. If the mayor is not a member of the port authority, the chair shall be elected by the members of the authority.
    1. The members shall be appointed by the mayor of the city or town creating the authority and shall be qualified electors residing in the city or town or within the county in which the city or town is located.
        1. The members of the board shall be appointed for a period of one (1) year, two (2) years, three (3) years, four (4) years, and five (5) years, respectively.
        2. If the authority consists of more than five (5) members, the new members shall initially be appointed for staggered terms so that in no year will more than two (2) members be appointed to a full five-year term.
        1. Upon the termination of office of each member, his or her successor shall be appointed for a term of five (5) years and shall serve until his or her successor has been appointed and qualified.
        2. In the event of a vacancy, however caused, the successor shall be appointed by the mayor for the unexpired term.
      1. The board shall elect one (1) of their number as vice chair and shall elect a secretary and a treasurer who need not necessarily be members of the board.
      2. The authority shall require a surety bond of the treasurer appointee in such amount as the authority may fix, and the premiums on it shall be paid by the authority as a necessary expense of the authority.
    2. The board shall meet upon the call of its chair. A majority of all of its members shall constitute a quorum for the transaction of business.
    3. The members of the authority shall receive such compensation for their services as shall be determined and prescribed by the ordinance setting up and creating the authority.

History. Acts 1947, No. 167, §§ 1, 2, 9; 1979, No. 910, § 1; 1983, No. 622, § 1; A.S.A. 1947, §§ 19-2720, 19-2721, 19-2728; Acts 1991, No. 735, § 1; 2011, No. 833, § 1.

Publisher's Notes. Acts 1983, No. 622, § 5, provided:

“This act, being necessary for the welfare of the state and its inhabitants, shall be liberally construed to effect the purposes hereof.”

Amendments. The 2011 amendment substituted “not less than five (5) members and not more than seven (7) members” for “five (5) members” in (a)(2)(B); deleted “so that the term of one (1) member shall expire each year after the creation of the municipal port authority” at the end of present (b)(2)(A)(i); inserted (b)(2)(A)(ii); inserted “or her” in (b)(2)(B)(i); and made minor stylistic changes.

Cross References. Self-insured fidelity bond programs, § 21-2-701 et seq.

14-186-204. Authority — Purposes.

  1. The authority may be created to accomplish the following general purposes:
    1. To establish, acquire, develop, improve, or maintain harbors, ports, river-rail terminals, barge terminals, parks for industrial and commercial operations, and related improvements and facilities in or near any city or town in the State of Arkansas as it may deem feasible for the expeditious and efficient handling of commerce, by water, roadway, highway, air, or other, from and to any other part of the State of Arkansas or any other states and foreign countries;
    2. To acquire, purchase, construct, install, equip, lease, maintain, own, hold, develop, use, control, and improve lands and facilities of whatever nature necessary or desirable in connection with the establishing, developing, improving, and maintaining the ports, harbors, river-rail terminals, barge terminals, and parks for industrial and commercial operations, including, without limitation, buildings, warehouses, utilities, and the improvement of portions of waterways, highways or roadways, and other facilities not within the exclusive jurisdiction of the federal government;
    3. To foster and stimulate the shipment of freight and commerce, by water, roadway, highway, air, or other, and industrial and commercial development at and through the ports, harbors, river-rail terminals, barge terminals, parks for industrial and commercial operations and industries, and businesses located on them, whether originating within or without the State of Arkansas, including the investigation, handling, and dealing with matters pertaining to all transportation rates and rate structures affecting them.
    4. To cooperate with the federal government, the State of Arkansas, and any agency, department, corporation, or instrumentality of either of them in the development, improvement, maintenance, and use of the harbors, ports, river-rail terminals, barge terminals, parks for industrial and commercial operations and industries, and businesses located in them in connection with the furtherance of the operation and needs of the United States, the State of Arkansas, the city or town, and any such industry or business;
    5. To accept funds from any sources and to use them in such manner, within the purposes of the authority, as shall be stipulated by the source from which received, and
    6. To act as agent or instrumentality of the city or incorporated town in any matter coming within the general purposes of the authority;
    7. To act as agent for the federal government or any agency, department, corporation, or instrumentality of it, and for the State of Arkansas and any agency, department, instrumentality, or political subdivision of it, in any matter coming within the purposes or powers of the authority;
    8. To acquire, construct, equip, maintain, develop, and improve facilities at the ports, harbors, river-rail terminals, barge terminals, and parks for industrial and commercial operations to secure and develop industry, business, and commerce.
    9. To sell, lease, contract concerning, or permit the use of all, or any part, of the facilities so acquired, constructed, and equipped to any person for industrial or commercial activities;
    10. In general, to do and perform any act or function which may tend to or be useful toward the development and improvement of harbors, ports, river-rail terminals, barge terminals, and parks for industrial and commercial operations and to further the movement of waterborne and other forms of commerce, foreign and domestic, through the harbors, ports, river-rail terminals, barge terminals, and parks for industrial and commercial operations.
  2. The enumeration of these purposes shall not limit or circumscribe the broad objectives of developing to the utmost the port and industrial and commercial development possibilities of the State of Arkansas.

History. Acts 1947, No. 167, § 2; 1983, No. 622, § 1; A.S.A. 1947, § 19-2721.

Publisher's Notes. Acts 1983, No. 622, § 5, provided:

“This act, being necessary for the welfare of the state and its inhabitants, shall be liberally construed to effect the purposes hereof.”

14-186-205. Authority — Activities in which city or town may engage.

Through the municipal port authority created under § 14-186-203, any city or incorporated town may engage in promoting, developing, acquiring, constructing, equipping, maintaining, and operating harbors, ports, river-rail terminals, barge terminals, parks for industrial and commercial operations and improvements, and facilities incident to them, within or without the corporate limits of the city or town, including the acquisition, construction, maintenance, and operation of such harbors, ports, river-rail terminals, barge terminals, parks for industrial and commercial operations, improvements, and facilities including, without limitation, highways, railroads, bridges, utilities, and other facilities necessary or essential for the proper operation of them, subject to the purposes and restrictions set forth in § 14-186-204.

History. Acts 1947, No. 167, § 2; 1983, No. 622, § 1; A.S.A. 1947, § 19-2721.

Publisher's Notes. Acts 1983, No. 622, § 5, provided:

“This act, being necessary for the welfare of the state and its inhabitants, shall be liberally construed to effect the purposes hereof.”

14-186-206. Jurisdiction.

The jurisdiction of a municipal port authority in any harbors, ports, or river-rail and barge terminals within the state shall extend over the waters and shores of the harbors or ports.

History. Acts 1947, No. 167, § 8; A.S.A. 1947, § 19-2727.

Case Notes

Federal Authority.

If the power of the state and that of the federal government come in conflict, the power of the federal government will control; however, § 10 of the federal River and Harbor Act of 1899 (33 U.S.C. § 403) was not intended to override the authority of the state to put its veto upon the placing of obstructing structures in navigable waters within a state, and both state and federal approval are necessary in such case. Eagle Int'l, Inc. v. City of Crossett Port Auth., 27 Ark. App. 36, 766 S.W.2d 28 (1989).

14-186-207. Powers generally.

In order to enable any city or incorporated town to carry out the purposes of this subchapter, a municipal port authority shall:

  1. Have the powers of a body corporate, including the power to sue and be sued, to make contracts, and to adopt and use a common seal;
  2. Be authorized and empowered to rent, improve, develop, operate, maintain, lease, buy, own, acquire, mortgage, otherwise encumber, sell, and dispose of, and otherwise deal with such real, personal, or mixed property as the authority may deem proper, necessary, or desirable to carry out the purposes and provisions of this subchapter, all or any of them.
  3. Be authorized and empowered to acquire, construct, maintain, equip, and operate any wharves, docks, piers, quays, elevators, compresses, refrigeration storage plants, warehouses, and other structures and any and all facilities needed for the convenient use of them in aid of commerce, whether by roadway, highway, water, air, or other, and industrial and commercial operations involving water, waterways, rail, highways, roadways, pipelines, air, or other transportation sources, including, without limitation, the dredging of approaches, the construction of utilities, belt line roads and highways and bridges and causeways, and other improvements and facilities necessary or useful, and shipyards, shipping facilities, terminal railroad and transportation facilities useful and convenient;
  4. Appoint, employ, and dismiss at pleasure such employees as may be selected by the authority board, and to fix and pay their compensation;
  5. Establish an office for the transaction of its business at such place as, in the opinion of the authority, shall be advisable or necessary in carrying out the purposes of this subchapter and the ordinances of any city or town in connection with it;
  6. Be authorized and empowered to create and operate such agencies and departments as the board may deem necessary or useful for the furtherance of any of the purposes of this subchapter;
  7. Be authorized and empowered to pay all necessary costs and expenses involved in and incident to the formation and organization of the authority, and incident to the administration and operation of it, and to pay all other costs and expenses reasonably necessary or expedient in carrying out and accomplishing the purposes of this subchapter;
  8. Be authorized and empowered to act as agent for the federal government, the State of Arkansas, or any agency, department, corporation, or instrumentality of either of them in any matter coming within the purposes or powers of the authority;
  9. Have the power to adopt, alter, or repeal its own bylaws, rules, and regulations consistent with this subchapter governing the manner in which its business may be transacted and in which the power granted to it may be enjoyed, and may provide for the appointment of such committees, and the function of them, as the authority may deem necessary or expedient in facilitation of its business;
  10. Be authorized and empowered to sell, lease, or contract concerning any of its docks, wharves, piers, quays, elevators, compresses, refrigeration storage plants, warehouses, industrial or commercial plants and facilities, and other improvements and facilities of whatever nature and to permit the use of any of these facilities by any person engaging in any industrial or commercial activity.
  11. Be authorized and empowered to acquire, construct, equip, and operate any and all facilities in or about the ports, harbors, river-rail terminals, barge terminals, and parks for the purpose of securing and developing industrial and commercial operations;
  12. Be authorized and empowered to do any and all other acts and things authorized in this subchapter or required to be done, whether or not included in the general powers mentioned in this section; and
  13. Be authorized and empowered to do any and all things necessary to accomplish the purposes of this subchapter.

History. Acts 1947, No. 167, § 3; 1983, No. 622, § 2; A.S.A. 1947, § 19-2722.

Publisher's Notes. Acts 1983, No. 622, § 5, provided:

“This act, being necessary for the welfare of the state and its inhabitants, shall be liberally construed to effect the purposes hereof.”

14-186-208. Warehouse facilities — Proposals for lease or operation.

With regard to warehouse facilities used for commercial warehousing purposes mentioned in § subdivisions (1)-(4) and (8)-(10) of § 14-186-204(a) and § 14-186-204(b), and subdivisions (2), (3), and (10)-(13) of § 14-186-207, the authority, prior to entering into a new lease of existing warehouse facilities or into a lease of new warehouse facilities, in whole or in part, or prior to operating warehouse facilities for these purposes, in whole or in part, shall first publicly solicit proposals for the leasing or operation of the warehouse facilities for these purposes on such terms as shall be customary and usual in the commercial warehousing industry, and the authority shall accept such proposal as is commercially reasonable and in the authority's best interest.

History. Acts 1947, No. 167, §§ 2, 3; 1983, No. 622, §§ 1, 2; A.S.A. 1947, §§ 19-2721, 19-2722.

Publisher's Notes. Acts 1983, No. 622, § 5, provided:

“This act, being necessary for the welfare of the state and its inhabitants, shall be liberally construed to effect the purposes hereof.”

14-186-209. Operation of terminal railroads.

  1. A municipal port authority shall have the power and authority to acquire, own, lease, locate, install, construct, equip, hold, maintain, control, and operate at harbors, ports, and river-rail and barge terminals a line of terminal railroads with necessary sidings, turn outs, spurs, branches, switches, yard tracks, bridges, trestles, and causeways; and in connection therewith and appurtenant thereto, shall have the further right to lease, install, construct, acquire, own, maintain, control, and use any and every kind or character of motive power and conveyances or appliances necessary or proper to carry passengers, goods, wares, and merchandise over, along, or upon the tracks of the railroads or other conveyances.
    1. The authority shall have the right and authority to make agreements as to scale of wages, seniority, and working conditions with locomotive engineers, locomotive firemen, switchmen, switch engine foremen, and hostlers engaged in the operation of the terminal railroads provided for in this section, and the service and equipment pertinent to them.
    2. Should the authority exercise the power given in this section, then, in such event, it shall be the duty of the authority to make such agreements with the employees specified, in accordance with the act of Congress known as the Railway Labor Act, as amended, to the end that the same agreements as to seniority and working conditions will obtain as to the employees and that the standard rate of pay be provided, as are in force relative to like employees of interstate railroads operating in the same territory with terminal railroads authorized by this section.
  2. The authority shall have the right and power with its terminal railroads to connect with or cross any other railroad upon payment of just compensation and to receive, deliver to, and transport the freight, passengers, and cars of common carrier railroads as though it were an ordinary common carrier.

History. Acts 1947, No. 167, § 7; A.S.A. 1947, § 19-2726.

U.S. Code. The Railway Labor Act, referred to in this section, is codified as 45 U.S.C. §§ 151 et seq.

14-186-210. Acquisition of rights-of-way and property.

  1. For the acquiring of rights-of-way and property necessary for the construction of terminal railroads and structures, including railroad crossings, airports, seaplane bases, naval bases, wharves, piers, ships, docks, quays, elevators, compresses, refrigeration storage plants, warehouses, and other riparian and littoral terminals and structures and approaches to them and transportation facilities needful for the convenient use of them, and belt line roads and highways and causeways and bridges and other bridges and causeways, a municipal port authority shall have the right and power to acquire them by purchase, by negotiation, or by condemnation.
    1. Should a municipal port authority elect to exercise the right of eminent domain, condemnation proceedings shall be maintained by and in the name of the authority, and it may proceed as provided by the general laws of the State of Arkansas for the procedure by any county, municipality, or authority organized under the laws of this state, or by the Arkansas Department of Transportation, or by railroad corporations, or in any other manner provided by law, as the authority may, in its discretion, elect.
    2. The power of eminent domain shall not apply to property of persons, state agencies, or corporations already devoted to public use.

History. Acts 1947, No. 167, § 4; A.S.A. 1947, § 19-2723; Acts 2017, No. 707, § 26.

Amendments. The 2017 amendment, in (b)(1), substituted “a municipal port authority” for “it”, substituted “as provided” for “in the manner provided”, and substituted “Arkansas Department of Transportation” for “State Highway and Transportation Department”.

Case Notes

Exceptions.

The power of eminent domain granted to municipalities under this section does not allow the acquisition of private property for industrial sites or parks. City of Little Rock v. Raines, 241 Ark. 1071, 411 S.W.2d 486 (1967).

14-186-211. Exemptions for property.

The property of a municipal port authority shall not be subject to any taxes or assessments on it.

History. Acts 1947, No. 167, § 3; 1983, No. 622, § 2; A.S.A. 1947, § 19-2722.

Publisher's Notes. Acts 1983, No. 622, § 5, provided:

“This act, being necessary for the welfare of the state and its inhabitants, shall be liberally construed to effect the purposes hereof.”

14-186-212. Exchange of property, etc.

  1. A municipal port authority may exchange any property acquired under the authority of this subchapter for other property usable in carrying out the power conferred by this subchapter.
  2. The authority may also remove from lands needed for its purposes, and reconstruct on other locations, buildings, terminals, railroads, or other structures, upon the payment of just compensation if, in its judgment, it is necessary or expedient so to do in order to carry out any of its plans for port, harbor, or river-rail or barge terminal development, under the authorization of this subchapter.

History. Acts 1947, No. 167, § 5; A.S.A. 1947, § 19-2724.

14-186-213. Transfer of property or money to federal government.

  1. A municipal port authority is authorized to assign, transfer, lease, convey, grant, or donate to the federal government, or to the appropriate agency or department of it, any, or all, of the property of the authority for any use by the federal government for any purpose included within the general purposes of this subchapter, as provided in this subchapter, such assignments, transfer, lease, conveyance, grant, or donation to be made upon such terms as the authority board may deem advisable.
  2. In the event the federal government should decide to undertake the acquisition, construction, equipment, maintenance, or operation of the airports, seaplane bases, naval bases, wharves, piers, ships, refrigerator storage plants, warehouses, elevators, compresses, docks, shipyards, shipping and transportation facilities referred to in this section including terminal railroads, roads, highways, causeways, or bridges, and should itself decide to acquire the lands and properties necessarily needed in connection with them, by condemnation or otherwise, the authority is further authorized to transfer and pay over to the federal government, or to the appropriate agency or department of it, such of the moneys belonging to the authority as may be found, needed, or reasonably required by the federal government to meet and pay the amount of judgments or condemnation, including costs, if any are taxed on them, as may be rendered from time to time against the federal government or its appropriate agency, or as may be reasonably necessary to permit and allow the federal government, or its appropriate agency, to acquire and become possessed of such lands and properties as are reasonably required for the construction and use of the facilities referred to in this section.

History. Acts 1947, No. 167, § 6; A.S.A. 1947, § 19-2725.

14-186-214. Deposit and payment of funds.

  1. All municipal port authority funds shall be deposited in banks to be designated by the authority.
  2. No funds of the authority shall be disbursed except for a purpose authorized by this subchapter and only when the account or expenditure for which it is to be given in payment has been approved by the authority.

History. Acts 1947, No. 167, § 10; A.S.A. 1947, § 19-2729; Acts 1997, No. 1045, § 1.

Amendments. The 1997 amendment rewrote (b).

14-186-215. Periodic financial statement.

  1. At least once in each year, a municipal port authority shall publish a report. It shall be published one (1) time in some newspaper published in the city or incorporated town where the authority is located. If no paper exists in the city or town creating such authority, the report may be published in any newspaper published in the county where the authority is located. It shall show a complete financial statement of all moneys received and disbursed by the authority during the preceding year.
  2. The statement shall show:
    1. The several sources from which funds were received;
    2. The balance on hand at the time of publishing the statement; and
    3. The complete financial condition of the authority.

History. Acts 1947, No. 167, § 11; A.S.A. 1947, § 19-2730.

Subchapter 3 — Municipal Port Authority Facilities

Cross References. Form of bonds, § 19-9-101.

Local Government Bond Act of 1985, § 14-164-301 et seq.

Effective Dates. Acts 1937, No. 231, § 20: approved Mar. 10, 1937. Emergency clause provided: “Whereas, there are various communities in this state which are seriously in need of improvements of the kind authorized by this Act, the absence of which improvements results in such communities being deprived of water for transportation; and

“Whereas, the passage of this Act will create a means of immediately financing such works through emergency Government lending agencies, which are not available under existing laws; and

“Whereas, the immediate construction of such Barge Terminals, together with Tenders and Barges, Wharves, Docks, Landing Places, Piers and Basins (which can be accomplished under this Act with the aid of existing Government lending agencies) will not only relieve conditions jeopardizing water commerce, but will give employment to numerous citizens, thereby minimizing in some degree the prevailing conditions of unemployment attending the existing financial depression.

“Therefore, it appearing that the towns and cities along navigable streams are without proper facilities for the handling of freight and cargoes by water and that the same is necessary to effectuate adequate commerce, an emergency is hereby declared to exist and this Act shall be in full force from and after its passage.”

Acts 1947, No. 189, § 6: approved Mar. 6, 1947. Emergency clause provided: “This act being necessary for the public health, peace and safety, an emergency is hereby declared to exist and the same shall be in full force and effect from and after its passage.”

Acts 1967, No. 69, § 6: approved Feb. 9, 1967. Emergency clause provided: “This Act being necessary for the public health, peace and safety, an emergency is hereby declared to exist and the same shall be in full force and effect from and after its passage.”

Acts 1970 (Ex. Sess.), No. 54, § 5: Mar. 13, 1970. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health, and safety shall be in effect from and after its passage and approval.”

Acts 1973, No. 87, § 10: Feb. 9, 1973. Emergency clause provided: “It has been found and it is hereby declared by the General Assembly of the State of Arkansas that port and harbor development is essential to the continued economic development of this State; that port and harbor development is inhibited by the lack of adequate authority for assisting the development of industrial and commercial facilities and for earnings and applying to the payment of revenue bonds lease rentals derived from leases of port, harbor or other facilities; that these problems can be alleviated only by the immediate effect of this Act. Therefore, an emergency is declared to exist and, this Act being necessary for the preservation of the public peace, health and safety shall be in effect from its passage and approval.”

Acts 1981, No. 425, § 54: Mar. 11, 1981. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Research References

Ark. L. Rev.

Municipal Improvement Bonds in Arkansas, 8 Ark. L. Rev. 146.

Comment, Municipal Bonds and Amendment 62: Clearing Up a Serbonian Bog, 39 Ark. L. Rev. 499.

Case Notes

Constitutionality.

This subchapter was held not unconstitutional, since it does not create indebtedness to be paid from assessments or taxation on the real property. Robinson v. Town of DeValls Bluff, 197 Ark. 391, 122 S.W.2d 552 (1938).

This subchapter was held not void as limiting the operations to the corporate limits of the town. Robinson v. Town of DeValls Bluff, 197 Ark. 391, 122 S.W.2d 552 (1938).

14-186-301. Legislative intent.

  1. This subchapter, without reference to any other statute, shall be deemed full authority for the construction, acquisition, improvement, equipment, maintenance, operation, and repair of barge terminals together with tenders and barges, wharves, docks, landing places, piers, and basins provided for in this subchapter and for the issuance and sale of the bonds authorized by this subchapter. It shall be construed as an additional and alternative method for them and for the financing of them.
  2. No petition or election or other or further proceeding in respect to the construction or acquisition of barge terminals, together with tenders and barges, wharves, docks, landing places, piers, and basins, or to the issuance or sale of bonds under this subchapter and no publication of any resolution, ordinance, notice, or proceeding relating to such construction or acquisition or to the issuance or sale of such bonds shall be required except such as are prescribed by this subchapter, any provisions of other statutes of the state to the contrary notwithstanding.

History. Acts 1937, No. 231, § 13; Pope's Dig., § 9717; A.S.A. 1947, § 19-2719.

14-186-302. Definitions.

As used in this subchapter, unless the context otherwise requires:

  1. “Municipality” means a city of the first class, a city of the second class, or an incorporated town;
  2. “Governing body” means the council, board of directors, or city commission of any municipality;
  3. “Equip” means to install or place on, or in, any building or structure equipment of any and every kind, whether or not affixed, including, without limiting the generality of the foregoing, building service equipment, fixtures, heating equipment, air conditioning equipment, machinery, furniture, furnishings, and personal property of every kind;
  4. “Sell” means to sell for such price, in such manner and upon such terms as the municipality shall determine, including, without limiting the generality of the foregoing, private or public sale and, if public, pursuant to such advertisement as the municipality shall determine, sale for cash or credit payable in lump sum or in installments over such period as the municipality shall determine and, if on credit, with or without interest, and at such rate or rates as the municipality shall determine;
  5. “Lease” means to lease for such rentals, for such periods, and upon such terms and conditions as the municipality shall determine, including, without limiting the generality of the foregoing, the granting of renewal or extension options for the rentals, for such periods, and upon such terms and conditions, as the municipality shall determine and the granting of purchase options for such prices and upon such terms and conditions as the municipality shall determine;
  6. “Construct” means to acquire or build, in whole or in part, in such manner and by such method, including contracting therefor, and if the latter, by negotiation or bids upon such terms and pursuant to such advertising, as the municipality shall determine to be in the public interest and necessary under the circumstances existing at the time to accomplish the purposes of and authorities set forth in this subchapter;
  7. “Port authority facilities” means any real property, personal property, or mixed property of any and every kind that can be used or that will be useful to accomplish the purposes of and authorities set forth in this subchapter, including, without limiting the generality of the foregoing, wharves, docks, piers, quays, barges, shipyards, elevators, compresses, storage plants, rights-of-way, roads, streets, railroads, pipes, pipelines, reservoirs, utilities, materials, equipment, fixtures, machinery, furnishings, furniture, instrumentalities, and other real, personal, or mixed property of every kind.

History. Acts 1937, No. 231, § 2; Pope's Dig., § 9708; Acts 1947, No. 189, § 2; 1973, No. 87, § 6; 1981, No. 425, § 36; A.S.A. 1947, § 19-2703.

14-186-303. Powers of municipality generally.

Any municipality owning a port, harbor, or related facilities is authorized and empowered to acquire, construct, equip, operate, sell, lease, contract concerning, and otherwise deal in and with lands, buildings, structures, and other improvements and facilities, of whatever nature and wherever located, connected with, or incidental to or related to the operation or management of the port, harbor, or related facilities, or such facilities that may be necessary or useful in the securing and developing of industry, which may be collectively referred to in this subchapter as “port authority facilities.”

History. Acts 1937, No. 231, § 1; Pope's Dig., § 9707; Acts 1947, No. 189, § 1; 1973, No. 87, § 1; A.S.A. 1947, § 19-2702.

Case Notes

Cited: Dowling v. Erickson, 278 Ark. 142, 644 S.W.2d 264 (1983).

14-186-304. Power of eminent domain.

To acquire property, wherever located, in furtherance of the purposes of this subchapter, any municipality shall have the power of eminent domain as is provided in §§ 18-15-30118-15-303 and any statutes supplemental thereto.

History. Acts 1937, No. 231, § 9; 1973, No. 87, § 4; A.S.A. 1947, § 19-2710.

Case Notes

Exceptions.

In the delegation of power of eminent domain under this section for the purpose of acquiring private land for specified purposes, industrial sites or parks are not even remotely suggested, and the doctrine of ejusdem generis would require their exclusion. City of Little Rock v. Raines, 241 Ark. 1071, 411 S.W.2d 486 (1967).

14-186-305. Funding of facilities.

  1. Municipalities are authorized to use any available revenues for the accomplishment of the purposes and the implementation of the powers authorized by this subchapter, including the proceeds of revenue bonds issued from time to time pursuant to the provisions of this subchapter, either alone or together with other available funds and revenues.
  2. The amount of each issue of bonds issued may be sufficient to pay:
    1. The costs of accomplishing the purposes for which it is being issued;
    2. The cost of issuing the bonds;
    3. The amount necessary for a reserve if it is determined to be desirable in favorably marketing the bonds;
    4. The amount, if any, necessary to provide for debt service on the bonds until revenues for the payment of them are available; and
    5. Any other costs and expenditures of whatever nature incidental to the accomplishment of the specified purposes.

History. Acts 1937, No. 231, § 3; Pope's Dig., § 9709; Acts 1947, No. 189, § 3; 1967, No. 69, § 1; 1970 (Ex. Sess.), No. 54, § 1; 1973, No. 87, § 2; A.S.A. 1947, § 19-2704.

Case Notes

Cited: Corning v. Watson, 252 Ark. 1277, 482 S.W.2d 797 (1972).

14-186-306. Issuance of revenue bonds generally.

    1. The issuance of revenue bonds shall be by ordinance of the municipality.
    2. As the ordinance authorizing their issuance may provide, the bonds of each issue may:
      1. Be coupon bonds payable to bearer or may be made registrable as to principal only or as to both principal and interest;
      2. Be in such form and denominations;
      3. Be made payable at such places within or without the state;
      4. Be issued in one (1) or more series;
      5. Bear such date or dates;
      6. Mature at such time or times, not exceeding forty (40) years from their respective dates;
      7. Bear interest at such rate or rates;
      8. Be payable in such medium of payment;
      9. Be subject to such terms of redemption; and
      10. Contain such terms, covenants, and conditions, including without limitation those pertaining to:
        1. The custody and application of the proceeds of the bonds;
        2. The collection and disposition of revenues;
        3. The maintenance and investment of various funds and reserves;
        4. The imposition and maintenance of rates and charges for the use of port authority facilities;
        5. The nature and extent of the security;
        6. The rights, duties, and obligations of the municipality and the trustee for the holders and registered owners of the bonds; and
        7. The rights of the holders and registered owners of the bonds.
  1. There may be successive bond issues for the purpose of financing the same project. There may also be successive bond issues for financing the cost of reconstructing, replacing, constructing additions to, extending, improving, and equipping projects already in existence, whether or not originally financed by bonds issued under this subchapter, with each successive issue to be authorized as provided by this subchapter.
  2. Priority between and among issues and successive issues as to security, the pledge of revenues and lien on and security interest in the land, buildings, and facilities involved, may be controlled by the ordinances authorizing the issuance of bonds under this subchapter.
  3. Subject to the provisions of this section pertaining to registration, the bonds shall have all the qualities of negotiable instruments under the laws of the State of Arkansas.

History. Acts 1937, No. 231, § 3; Pope's Dig., § 9709; Acts 1947, No. 189, § 3; 1967, No. 69, § 1; 1970 (Ex. Sess.), No. 54, § 1; 1973, No. 87, § 2; 1981, No. 425, § 36; A.S.A. 1947, § 19-2704.

Case Notes

Constitutionality.

This subchapter was held not void because of the word “time” as used in this section, against contention that “time” being used in the singular meant all the bonds to be issued would have to be made due and payable at the same time. Robinson v. Town of DeValls Bluff, 197 Ark. 391, 122 S.W.2d 552 (1938).

Cited: Corning v. Watson, 252 Ark. 1277, 482 S.W.2d 797 (1972).

14-186-307. Sale and execution of bonds.

  1. Revenue bonds may be sold for such price including sale at a discount and in such manner as the municipality may determine by ordinance.
      1. The bonds shall be executed by the manual or facsimile signature of the mayor and the manual signature of the clerk or recorder of the municipality.
      2. The coupons attached to the bonds may be executed by the facsimile signature of the mayor of the municipality.
    1. In case any of the officers whose signatures appear on the bonds or coupons shall cease to be such officers before the delivery of the bonds or coupons, their signatures shall, nevertheless, be valid and sufficient for all purposes.

History. Acts 1937, No. 231, § 3; Pope's Dig., § 9709; Acts 1947, No. 189, § 3; 1967, No. 69, § 1; 1970 (Ex. Sess.), No. 54, § 1; 1973, No. 87, § 2; 1981, No. 425, § 36; A.S.A. 1947, § 19-2704.

Case Notes

Cited: Corning v. Watson, 252 Ark. 1277, 482 S.W.2d 797 (1972).

14-186-308. Payment of bonds.

    1. Revenue bonds issued under this subchapter shall not be general obligations of the municipality but shall be special obligations. In no event shall the revenue bonds constitute an indebtedness of the municipality within the meaning of any constitutional or statutory limitation.
    2. It shall be plainly stated on the face of each bond that it has been issued under the provisions of this subchapter and that it does not constitute an indebtedness of the municipality within any constitutional or statutory limitation.
  1. The principal of, and interest on, the bonds shall be secured by a pledge of, and be payable from, all, or any part, of the revenues derived from the use of port authority facilities including without limitation:
    1. Revenues derived from rates and charges imposed and maintained for the use of port authority facilities; and
    2. Lease rentals under leases or payments under security agreements or other instruments entered into under this subchapter.

History. Acts 1937, No. 231, § 3; Pope's Dig., § 9709; Acts 1947, No. 189, § 3; 1967, No. 69, § 1; 1970 (Ex. Sess.), No. 54, § 1; 1973, No. 87, § 2; A.S.A. 1947, § 19-2704.

Case Notes

Cited: Corning v. Watson, 252 Ark. 1277, 482 S.W.2d 797 (1972).

14-186-309. Refunding bonds.

    1. Revenue bonds may be issued under this subchapter for the purpose of refunding any obligations issued under this subchapter.
    2. Refunding bonds may be combined with bonds issued under this subchapter into a single issue.
    1. When bonds are issued under this section for refunding purposes, the bonds may either be sold or delivered in exchange for the outstanding obligations.
    2. If sold, the proceeds may be either applied to the payment of the obligations refunded or deposited in escrow for the retirement of them.
    1. All refunding bonds issued under this subchapter shall, in all respects, be authorized, issued, and secured in the manner provided for other bonds issued under this subchapter and shall have all the attributes of these bonds.
    2. The ordinance under which the refunding bonds are issued may provide that any of the refunding bonds shall have the same priority of lien on the revenues pledged for their payment as was enjoyed by the obligations refunded by them.

History. Acts 1937, No. 231, § 3; Pope's Dig., § 9709; Acts 1947, No. 189, § 3; 1967, No. 69, § 1; 1970 (Ex. Sess.), No. 54, § 1; 1973, No. 87, § 2; A.S.A. 1947, § 19-2704.

Case Notes

Cited: Corning v. Watson, 252 Ark. 1277, 482 S.W.2d 797 (1972).

14-186-310. Indentures and other agreements.

    1. The ordinance authorizing revenue bonds may provide for the execution by the municipality of an indenture which defines the rights of the holders and registered owners of the bonds and provides for the appointment of a trustee for the holders and registered owners of the bonds.
    2. The indenture may control the priority between successive issues and may contain any other terms, covenants, and conditions that are deemed desirable, including without limitation, those pertaining to:
      1. The custody and application of the proceeds of the bonds;
      2. The collection and disposition of revenues;
      3. The maintenance of various funds and reserves;
      4. The imposition and maintenance of rates and charges for the use of port authority facilities;
      5. The nature and extent of the security; and
      6. The rights, duties, and obligations of the municipality and the trustee and the rights of the holders and registered owners of the bonds.
  1. It shall not be necessary for the municipality to publish any indenture, lease, or other security agreement or instrument if:
    1. The ordinance authorizing the indenture, lease, or other security agreement or instrument is published as required by law governing the publication of ordinances of a municipality and the ordinance advises that a copy of the indenture, lease, or other security agreement or instrument, as the case may be, is on file in the office of the clerk or recorder of the municipality for inspection by any interested person; and
    2. The copy of the indenture, lease, or other security agreement or instrument, as the case may be, is actually filed with the clerk or recorder of the municipality.

History. Acts 1937, No. 231, § 3; Pope's Dig., § 9709; Acts 1947, No. 189, § 3; 1967, No. 69, § 1; 1970 (Ex. Sess.), No. 54, § 1; 1973, No. 87, § 2; A.S.A. 1947, § 19-2704.

Case Notes

Cited: Corning v. Watson, 252 Ark. 1277, 482 S.W.2d 797 (1972).

14-186-311. Mortgage lien or security interest.

      1. The ordinance or indenture securing revenue bonds may impose a foreclosable mortgage lien, security interest, or both, on the port authority facilities, or any portion thereof.
      2. The extent of the mortgage lien on or security interest may be controlled by the ordinance or indenture, including, without limitation, provisions pertaining to:
        1. The release of all, or part, of the facilities subject to the mortgage lien or security interest; and
        2. The priority of the mortgage lien or security interest in the event of successive issues of bonds.
    1. Subject to the terms, conditions, and restrictions contained in the ordinance or indenture, any holder of any of the bonds or of any coupon attached to them, or a trustee on behalf of the holders, may, either at law or in equity, enforce the mortgage lien or security interest and, by proper suit, may compel the performance of the duties of the officials of the municipality set forth in this subchapter and set forth in the ordinance or indenture.
      1. In the event of a default in the payment of the principal of or interest on any bonds issued under this subchapter, any court having jurisdiction may appoint a receiver to take charge of any port authority facilities upon or in which there is a mortgage lien or security interest securing the bonds in default.
        1. The receiver shall have the power to operate and maintain the facilities in receivership and to charge and collect rates and rents sufficient to provide for the payment of any costs of receivership and operating expenses of the facilities in receivership and to apply the revenues derived from the facilities in receivership in conformity with this subchapter and the ordinance or indenture securing the bonds in default.
        2. When the default has been cured, the receivership shall be ended and the facilities returned to the municipality.
    1. The relief provided for in this subsection shall be construed to be in addition as supplemental to the remedies that may be provided for in the ordinance or indenture securing the bonds and shall be so granted and administered as to accord full recognition to priority rights of bondholders as to the pledge of revenues from and mortgage lien on and security interest in port authority facilities as specified in, and fixed by, the ordinance or indenture securing successive issues of bonds.

History. Acts 1937, No. 231, § 7; Pope's Dig., § 9713; Acts 1973, No. 87, § 3; A.S.A. 1947, § 19-2708.

14-186-312. Bonds — Tax exemption.

  1. Bonds issued under the provisions of this subchapter shall be exempt from all state, county, and municipal taxes.
  2. This exemption includes income, estate, and inheritance taxes.

History. Acts 1937, No. 231, § 17; Pope's Dig., § 9721; Acts 1973, No. 87, § 5; A.S.A. 1947, § 19-2716.

A.C.R.C. Notes. Language excluding property taxes from the exemption provided by this section was deleted pursuant to Ark. Const. Amend. 57, § 1 and § 26-3-302. Arkansas Const. Amend. 57, § 1 provides that the General Assembly may classify intangible personal property for assessment at lower percentages of value than other property and may exempt one or more classes of intangible personal property from taxation, or may provide for the taxation of intangible personal property on a basis other than ad valorem. Section 26-3-302 exempts all intangible personal property in this state from all ad valorem tax levies of counties, cities, and school districts in the state as of January 1, 1976.

Subchapter 4 — Joint Operation of Ports by Municipalities and Counties

Cross References. Form of bonds, § 19-9-101.

Effective Dates. Acts 1967, No. 69, § 6: approved Feb. 9, 1967. Emergency clause provided: “This Act being necessary for the public health, peace and safety, an emergency is hereby declared to exist and the same shall be in full force and effect from and after its passage.”

Acts 1970 (Ex. Sess.), No. 54, § 5: Mar. 13, 1970. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health, and safety shall be in effect from and after its passage and approval.”

Acts 1981, No. 425, § 54: Mar. 11, 1981. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health, and safety, shall be in effect from and after its passage and approval.”

14-186-401. Legislative intent.

  1. Without reference to any other statute, this subchapter shall be deemed full authority for the construction, acquisition, improvement, equipment, maintenance, operation, and repair of any port provided for in this subchapter and for the issuance and sale of the bonds as authorized by this subchapter, and shall be construed as an additional or alternative method for them and for the financing of them.
  2. No petition or election or other or further proceedings in respect to the construction or acquisition of the port nor to the issuance or sale of bonds under this subchapter, no publication of any resolution, ordinance, order, notice, or proceeding relating to such construction or acquisition nor to the issuance or sale of such bonds shall be required except such as are prescribed by this subchapter, any provision of other statutes of this state to the contrary notwithstanding.

History. Acts 1959, No. 310, § 13; A.S.A. 1947, § 19-2744.

14-186-402. Definitions.

As used in this subchapter:

  1. “Legislative body” means the council of municipalities having the mayor-council form of government and the commission, or other governing body, of municipalities having a commission or other form of government;
  2. “Mayor” means the mayor of municipalities having the mayor-council form of government and the presiding officer of municipalities having a commission or other form of government;
  3. “Municipality” means a city of the first class, a city of the second class, or an incorporated town in the State of Arkansas; and
  4. “Port” means ports, harbors, and river-rail barge terminals, together with wharves, docks, piers, quays, elevators, compresses, refrigeration storage plants, warehouses, landing places and basins, and other structures, and all facilities needful for the convenient use of them, including:
    1. The dredging of approaches to them and the construction of belt line roads and highways and bridges and causeways on them;
    2. Other bridges and causeways necessary or useful in connection with them; and
    3. Shipyards, shipping facilities, and transportation facilities incident to them and useful or convenient for the use of them, including terminal railroads, in their entirety, or any integral part of them.

History. Acts 1959, No. 310, § 1; A.S.A. 1947, § 19-2732; Acts 2017, No. 878, § 15.

Amendments. The 2017 amendment deleted “unless the context otherwise requires” from the introductory language; redesignated the definitions in alphabetical order; in (1) and (2), substituted “mayor-council” for “mayor-aldermanic”; and made stylistic changes.

14-186-403. Construction.

This subchapter, being necessary for the public health, safety, and welfare, shall be liberally construed to effectuate the purposes of it.

History. Acts 1959, No. 310, § 17; A.S.A. 1947, § 19-2748.

14-186-404. Powers generally.

Any two (2) or more municipalities, any two (2) or more counties, or any one (1) municipality or more together with any one (1) county or more in the State of Arkansas, or in an adjoining state where a navigable river forms the boundary between the states and the county or municipality in the other state lies approximately opposite the county or municipality within the State of Arkansas may join to construct, purchase, establish, equip, and operate a port within or without the corporate limits of any such municipality and within or without the boundaries of any such county, as they are defined and laid out, or as they may in the future be enlarged, as provided in this subchapter.

History. Acts 1959, No. 310, § 2; A.S.A. 1947, § 19-2733.

14-186-405. Provisions in authorizing ordinance or order.

  1. The ordinances or orders authorizing the issuance of the revenue bonds may contain provisions for the acceleration of the maturities of the unmatured bonds in the event of default in the payment of any principal or interest maturing under the bond issue, or part failure to meet any sinking fund requirements, or in any other stipulated event, and these provisions will be binding.
  2. The priorities as between successive issues of revenue bonds may also be controlled by the provisions of the ordinances or orders.
  3. The ordinances or orders may also, if deemed desirable, provide for:
    1. The issuance, contemporaneously with the execution of the bonds, of an indenture defining the rights of the bondholders inter sese;
    2. Appointing a trustee for the bondholders, which trustee may be a domestic or foreign corporation;
    3. Vesting in the trustee, to such extent as is deemed advisable, all rights of action under the bonds, providing for the priority of lien as between successive bond issues;
    4. The acceleration of bond maturities;
    5. Any covenants on the part of the municipalities or counties relating to:
      1. The construction or acquisition of the port;
      2. The application or safeguard of the proceeds of the bonds; or
      3. Other covenants intended for the protection of the bondholders; and
    6. Any other provisions, whether similar or dissimilar to the foregoing, which are consistent with the terms of this subchapter and which may be deemed desirable.

History. Acts 1959, No. 310, § 11; A.S.A. 1947, § 19-2742.

14-186-406. Lease of port.

The municipalities or counties desiring to avail themselves of the benefit of this subchapter and to join in the issuance of bonds as provided in this subchapter shall have the power to lease the port to an operating person, company, or corporation in such manner and upon such terms as may be deemed to be in the best interest of the municipalities or counties.

History. Acts 1959, No. 310, § 12; A.S.A. 1947, § 19-2743.

14-186-407. Right of eminent domain.

For the purpose of acquiring a new port under the provisions of this subchapter or for the purpose of acquiring any property necessary for it, municipalities and counties shall have the right of eminent domain as is provided in §§ 18-15-30118-15-303 and any acts amendatory and supplementary to it.

History. Acts 1959, No. 310, § 14; A.S.A. 1947, § 19-2745.

14-186-408. Obligations incurred by municipalities or counties.

  1. No obligation shall, nor may, be incurred by municipalities or counties in the construction or acquisition of any port contemplated in this subchapter, or in the condemnation of property in connection with it, except such as shall be payable solely from the funds to be acquired from the sale of revenue bonds of the character authorized by this subchapter.
  2. In view of this section, the court, in condemnation proceedings instituted under this subchapter by municipalities or counties, may make such requirements of security as will serve to protect the landowner.

History. Acts 1959, No. 310, § 15; A.S.A. 1947, § 19-2746.

14-186-409. Issuance of revenue bonds generally.

    1. Whenever it shall be determined by the legislative body of any municipality or by the county court of any county to join with another municipality or other municipalities or another county or other counties, to construct, purchase, establish, equip, and operate a port under the provisions of this subchapter, it shall cause an estimate to be made of the costs of it and shall provide, by ordinance of the legislative body or by order of the county court, as the situation may require, for the issuance of revenue bonds, as provided in this subchapter.
      1. The ordinance or order shall set forth a brief description of the contemplated improvement or improvements, the estimated costs of them, the amount, rate of interest, time and place of payment, and other details in connection with the issuance of the bonds.
      2. The bonds shall bear interest at such rate or rates, payable semiannually, and shall be payable at such times not exceeding forty (40) years from their date and at such places as shall be prescribed in the respective ordinance or order.
  1. The bonds shall be executed by each municipality joining in the undertaking by its mayor and clerk or recorder, and by each county joining in the undertaking by its county judge and county clerk.
    1. Each ordinance and order shall also declare that a statutory mortgage lien shall exist upon the property so to be acquired or constructed, fix the minimum rate or rates on all freight or cargo that passes over or through the port, to be collected prior to the payment of all of the bonds, and shall pledge the revenue derived from the port for the purpose of paying the bonds, and the interest on them.
      1. The pledge shall definitely fix and determine the amount of revenues which shall be necessary to set apart and apply to the payment of principal of, and interest on, the bonds, and the proportion of the balance of the revenues and income which are to be set aside as a proper and adequate depreciation account, and the remainder shall be set aside for the reasonable and proper operation of the port.
      2. The rates to be charged for the services from the port shall be sufficient to provide for:
        1. The payment of interest upon all bonds and to create a sinking fund to pay the principal of them as and when they become due;
        2. For the operation and maintenance of the port; and
        3. An adequate depreciation fund.

History. Acts 1959, No. 310, § 3; 1967, No. 69, § 3; 1970 (Ex. Sess.), No. 54, § 2; 1981, No. 425, § 38; A.S.A. 1947, § 19-2734.

14-186-410. Notice and hearing on issuance.

  1. After the passage of any ordinance pursuant to § 14-186-409, it shall be published one (1) time in a newspaper published in the municipality. If there is no newspaper so published, then the ordinance shall be published in a newspaper which has a bona fide general circulation within the municipality, with a notice to all persons concerned stating that:
    1. The ordinance has been passed;
    2. The municipality contemplated the issuance of the bonds described in the ordinance; and
    3. Any person interested may appear before the legislative body, upon a certain date, which shall be not less than ten (10) days subsequent to the publication of the ordinance and notice, and present protests.
  2. After the granting of any order, it shall be published one (1) time in a newspaper published in the county, with a notice to all persons concerned stating that:
    1. The order has been granted;
    2. The county contemplated the issuance of the bonds described in the order; and
    3. Any person interested may appear before the county court, upon a certain date, which shall be not less than ten (10) days subsequent to the publication of the order and notice, and present protests.
  3. At the hearing, all objections and suggestions shall be heard and the legislative body or county court shall take such action as it shall deem proper in the premises.

History. Acts 1959, No. 310, § 4; A.S.A. 1947, § 19-2735.

14-186-411. Execution and sale of bonds.

  1. Bonds provided for in this subchapter shall be issued in such amounts as may be necessary to provide sufficient funds to pay all costs of construction or acquisition, including engineering, legal, and other expenses, together with interest to a date not exceeding five (5) years.
    1. Bonds issued under the provisions of this subchapter are declared to be negotiable instruments. They shall be executed as provided in this subchapter and be sealed with the seal of each municipality or county joining in the undertaking.
    2. In the event that any of the officers whose signatures appear on the bonds or coupons shall cease to be such officers before the delivery of the bonds, their signatures shall, nevertheless, be valid and sufficient for all purposes the same as if they had remained in office until the delivery.
      1. Bonds authorized under the provisions of this subchapter may be sold at not less than ninety cents (90¢)on the dollar and the proceeds from them shall be used exclusively for the purposes for which the bonds are issued.
      2. The bonds may be sold at one (1) time or in parcels as funds are needed and may be sold at private sale or public sale on such notice and in such manner as may be determined in the respective ordinances or order.
      1. A fiscal agent may be employed in the issuance and sale of the bonds, and he shall be entitled to such reasonable compensation as may be agreed upon.
      2. No fiscal agent may purchase, directly or indirectly, any of the bonds while he serves in the capacity of fiscal agent.

History. Acts 1959, No. 310, § 5; 1967, No. 69, § 4; A.S.A. 1947, § 19-2736.

14-186-412. Payment of bonds.

  1. Bonds issued under the provisions of this subchapter shall be payable solely from the revenues derived from the port for the construction or acquisition of which the bonds were issued, and the bonds shall not in any event constitute an indebtedness of any such municipality or any such county within the meaning of the constitutional provisions or limitations.
  2. It shall be plainly stated on the face of each bond that it has been issued under the provisions of this subchapter and that it does not constitute an indebtedness of the municipality or county within any constitutional or statutory limitation.

History. Acts 1959, No. 310, § 6; A.S.A. 1947, § 19-2737.

14-186-413. Statutory mortgage lien.

    1. There shall be a statutory mortgage lien upon the port constructed or acquired from the proceeds of bonds authorized to be issued under the provisions of this subchapter. This lien shall exist in favor of the holders of the bonds and each of them and to and in favor of the holders of the coupons attached to the bonds.
    2. The port shall remain subject to this statutory mortgage lien until the payment in full of the principal of, and interest on, the bonds.
    1. Subject to such restrictions as may be contained in the indenture authorized in this subchapter, any holder of bonds issued under the provisions of this subchapter, or of any coupons representing interest accrued on them, may, either at law or in equity, enforce the statutory mortgage lien conferred by this section, and may, by proper suit, compel the performance of the duties of the officials of the respective municipality or county set forth in this subchapter.
    2. If there is default in the payment of the principal or interest upon any of the bonds, any court having jurisdiction, in any proper action, may appoint a receiver to administer the port. This receiver shall have power to charge and collect rates sufficient to provide for the payment of the bonds and the interest on them and for the payment of the operating expenses, and power to apply the income and revenues in conformity with this subchapter and the respective ordinance or order providing for the issuance of the bonds.

History. Acts 1959, No. 310, § 7; A.S.A. 1947, § 19-2738.

14-186-414. Service rates and surplus.

  1. Rates fixed precedent to the issuance of bonds shall not be reduced until all of the bonds shall have been fully paid and, whenever necessary, may be increased in amounts sufficient to provide for the payment of the bonds, both principal and interest, and to provide proper funds for the depreciation account and operation and maintenance charges.
    1. If any surplus shall be accumulated in the operating and maintenance fund which shall be in excess of the costs of maintaining and operating the port during the remainder of the fiscal year then current, and the costs of maintaining and operating the port during the fiscal year ensuing, then any excess may be transferred to either the depreciation account, or to the bond and interest redemption account as may be provided.
    2. If any surplus shall be accumulated in the depreciation account over and above that which may be found necessary for the proper replacements which may be needed during the present fiscal year and the ensuing fiscal year, then the excess may be transferred to the bond and interest redemption account.
    3. If any surplus shall exist in the bond and interest redemption account, it shall be applied, insofar as possible, in the purchase or retirement of outstanding revenue bonds payable from the account, and for that purpose the bonds not yet due may be purchased in the open market at not more than the fair market value of them.

History. Acts 1959, No. 310, § 8; A.S.A. 1947, § 19-2739.

14-186-415. Depository for funds.

    1. The municipalities or counties joined together to issue revenue bonds under the provisions of this subchapter shall designate a bank, which shall be a member of the Federal Deposit Insurance Corporation, to serve as a common depository to receive and hold on deposit and for disbursement of all revenues derived from the port.
      1. The depository shall install and maintain a proper system of accounts, showing the amount of revenues received and the application of them.
        1. The accounts shall be subject to audit at least once a year by a competent auditor.
        2. The report of the auditor shall be open to inspection at all times to any municipality or county joining in the issuance of the bonds, any taxpayer in these localities, or any holder of bonds issued under the provisions of this subchapter, or anyone acting for and on behalf of the municipality, county, taxpayer, or bondholder.
    1. All the funds received as income from the port constructed or acquired, in whole or in part, under the provisions of this subchapter and all funds received from the sale of revenue bonds issued to construct or acquire the port shall be kept separate and apart from the other funds of the municipalities or counties.
    2. The depository shall maintain separate accounts in which shall be placed the interest and sinking fund moneys and other accounts in which shall be placed depreciation funds.

History. Acts 1959, No. 310, § 9; A.S.A. 1947, § 19-2740.

14-186-416. Allocation of bond proceeds.

    1. Any specified portion of the proceeds of an issue of bonds authorized under the provisions of this subchapter may be allocated to any particular project authorized under this subchapter, or to any construction, as distinguished from the purchase of a port constructed, or vice versa.
      1. After an allocation, the designated portion of the proceeds of the bond issue shall be kept separate and apart from the remaining proceeds and shall be held in trust for the performance of the purposes specified and none other.
      2. The diversion of these funds to any other purpose may be enjoined on the suit of the trustee under the indenture, if any, accompanying the bonds, or on the suit of any of the bondholders, or on the suit of any person whose property is to be served by the port.
  1. In making an allocation, the engineer's original estimate of costs shall control.
      1. In the event of the allocation of proceeds, the bonds themselves may be similarly or correspondingly segregated and allocated to the respective purposes of the issue.
      2. Bonds segregated and allocated to one (1) purpose shall, from the standpoint of legality and in all other respects, be deemed to have been issued to finance such purpose and that alone.
      1. Notwithstanding such allocation and segregation, all bonds of the entire issue will, unless the initial ordinance or order or indenture accompanying the bonds shall provide to the contrary, be secured ratably and equally by the aggregate revenues of the port financed by the bond issue.
      2. Unless the ordinance, order, or indenture shall so specifically provide, the allocation of bond proceeds or segregation of bonds mentioned in this section will never have the effect of allocating the revenues from any particular portion of the authorized port exclusively to any particular bond or bonds.

History. Acts 1959, No. 310, § 10; A.S.A. 1947, § 19-2741.

14-186-417. Bonds — Tax exemption.

Bonds issued under the provisions of this subchapter shall be exempt from all state, county, and municipal taxes, including income and inheritance taxes.

History. Acts 1959, No. 310, § 16; A.S.A. 1947, § 19-2747.

Chapter 187 Municipal Wharf Improvement Districts

Publisher's Notes. As to applicability of certain laws to municipal improvement districts existing prior to July 1, 1952, see §§ 14-90-102 and 14-90-103.

Cross References. Notice on formation of improvement districts, § 14-86-301 et seq.

Tort liability immunity, § 21-9-301 et seq.

Effective Dates. Acts 1927, No. 61, § 7: approved Mar. 1, 1927. Emergency clause provided: “Agriculture and industry of the State will be aided and assisted by the purposes herein contained, and therefore an emergency is hereby declared to exist, and this Act being necessary for the preservation of the public peace, health, and safety, it shall take effect and be in force from and after its passage.”

Acts 1933, No. 100, § 6: approved Mar. 16, 1933. Emergency clause provided: “It is hereby ascertained and declared that by reason of the inability of many of the owners of real property within improvement districts owning and operating wharves, river and rail terminals, to pay the taxes and assessments that have been levied thereon, and for the further reason that in many instances it may become necessary to make a sale of said properties, an emergency hereby exists, and this act shall take effect and be in force from and after its passage.”

Research References

C.J.S. 63 C.J.S., Mun. Corp., § 1055.

64 C.J.S., Mun. Corp., § 1812 et seq.

Case Notes

Constitutionality.

This subchapter is valid. Lambert v. Wharf Improv. Dist. No. 1, 174 Ark. 478, 295 S.W. 730 (1927).

14-187-101. Duty to operate, etc., improvements.

  1. Boards of improvement in municipal improvement districts organized in this state for the purpose of constructing wharves for the transfer and interchange of river and rail freights are charged with the duty to operate, manage, and control the improvements.
    1. The boards shall also have the power to lease the improvements, in whole or in part, or otherwise contract for the operation of the improvement, upon such terms as may be deemed by them advisable and have power to lease from others such equipment as in the judgment of the board may be deemed advisable.
    2. The board shall collect moneys due the district for tolls, wharfage, storage, elevation, rentals, and all moneys other than moneys received from collection of the assessment of benefits and shall keep an accurate and separate account of them.
  2. The board shall have control of the disbursement of the moneys and may pay costs of operations, maintenance, repairs, replacements, renewals, improvements, depreciation, or bonded or other indebtedness in such manner as the board may deem to be in the best interests of the owners of real property in the district.

History. Acts 1927, No. 61, § 1; Pope's Dig., § 7445; A.S.A. 1947, § 20-601.

14-187-102. Construction of new improvements.

  1. In addition to the power vested by law in boards of improvement, boards described in § 14-187-101 shall have power to construct and to borrow money with which to construct new and additional improvements necessary, convenient, or required for transfer or interchange of any and all commodities.
  2. The board may issue the notes, bonds, or other evidences of indebtedness of the district to evidence this indebtedness. These obligations shall be negotiable although payable only from a certain fund, and may pledge net revenues arising from the operation of the new and additional improvements, assign any leases or contracts of or concerning the new and additional improvements, and mortgage the new and additional improvements to secure the repayment of the borrowed money and interest on it.

History. Acts 1927, No. 61, § 2; Pope's Dig., § 7446; A.S.A. 1947, § 20-602.

14-187-103. Power over property.

Boards of improvement of the class described in § 14-187-101 shall have power to:

  1. Acquire, by lease or purchase, real estate needed or convenient in the public service rendered by the improvement district;
  2. Grant rights-of-way over any and all properties owned by the district; and
  3. Grant landing rights to persons engaged in water transportation.

History. Acts 1927, No. 61, § 3; Pope's Dig., § 7447; A.S.A. 1947, § 20-603.

14-187-104. No assessment or tax.

No indebtedness, obligation, or liability, or the interest thereon, created or incurred under the provisions of this chapter shall at any time be secured or paid by or from any special assessment upon or taxation against the real property of any improvement district.

History. Acts 1927, No. 61, § 4; Pope's Dig., § 7448; A.S.A. 1947, § 20-604.

14-187-105. Contracts ratified.

All contracts made by any board of improvement of the class described in § 14-187-101, not in conflict with the terms of this chapter, are confirmed, approved, and ratified.

History. Acts 1927, No. 61, § 5; Pope's Dig., § 7449; A.S.A. 1947, § 20-605.

14-187-106. Procedure for sale of improvements.

  1. The board of improvement of any municipal wharf improvement district of this state owning wharves, river and rail terminals, warehouses, and tracks for the transfer and interchange of river and rail freights, including the lands, equipments, and all appliances incident to its operation, together with the right and franchise to operate them, may sell the properties and terminal facilities when the board shall determine, by resolution adopted by a majority vote of the board, that it would be to the best interest of the district that the sale be consummated.
  2. Before any such sale shall be consummated, there shall be filed, within one (1) year after the adoption of the resolution, with the city council of the city within which the district is situated, a petition signed by a majority in value, as shown by the last county assessment, of the owners of real property within the district, proposing to make the sale, asking that the sale be made, and stating the minimum price at which the sale shall be made. This shall in no event be a sum less than the amount necessary to pay all of the outstanding indebtedness against the district.
  3. Upon the filing of the petition or petitions, the council shall give notice by publication one (1) time a week for two (2) weeks in some newspaper published in the county in which the district is situated. This publication shall advise the owners of real property within the district that on a day therein named the council of the city will hear the petition and determine whether those signing it constitute a majority in value of the owners of real property.
  4. At the meeting named in the notice, the owners of real property within the district shall be heard before the council, which shall determine whether the signers of the petition constitute a majority in value, and the finding of the council shall be conclusive.
  5. It shall be the duty of the council to ratify and confirm the proposed sale unless within thirty (30) days thereafter suit is brought to review its action in the chancery court of the county in which the district is situated.
  6. In determining whether those signing the petition constitute a majority in value of the owners of real property within the district, the council and the court shall be guided by the records of deeds in the office of the recorder of the county and shall not consider any unrecorded instrument.

History. Acts 1933, No. 100, § 1; Pope's Dig., § 7440; A.S.A. 1947, § 20-606.

14-187-107. Payment and securing indebtedness.

  1. Where the sale price is for an amount greater than the outstanding indebtedness of a municipal wharf improvement district, the excess shall be paid in cash.
      1. In the event the purchaser desires to purchase the property and pay off the bonded indebtedness of the district as the bonded indebtedness matures, as a part of the purchase price, then the purchaser shall be required to assume the payment of the indebtedness, together with the accrued interest on it. To secure the payment of the indebtedness, together with the accrued interest on the bonded indebtedness, the purchaser shall be required to give a bond in favor of the city and the district in an amount equal to the unpaid purchase price including the indebtedness of the district.
      2. The bond shall also be for the maintenance of the terminal and terminal facilities and shall remain in full force and effect until the unpaid purchase price, including the indebtedness of the district, has been paid in full. However, the city council and the board of improvement of the district shall have the right to reduce the amount of the bond from time to time in proportion to the amount of the indebtedness as discharged and retired by the purchaser of the improvements.
    1. The bond shall be further conditioned that the purchaser will maintain insurance upon the properties so purchased and sold for an amount to be agreed upon by the board and respective purchaser, with the loss payable clause for the benefit of the district making the sale, as its interests may appear.
    2. The bond provided for in this section shall be approved by the council and the board of the district and shall be made and executed by a corporate surety company authorized to do business in the State of Arkansas. However, the council and the board of the district shall, by their joint action, waive the execution of the bond required in this section when, in their judgment and discretion, the bond is not necessary or required for the protection of the city, the district, and the landowners.

History. Acts 1933, No. 100, § 2; Pope's Dig., § 7441; A.S.A. 1947, § 20-607.

14-187-108. Deed of conveyance.

      1. The transfer of property under this chapter shall be evidenced by a deed of conveyance in the usual form and with the usual covenants of warranty. A lien against the property sold shall be retained in the deed for all of the unpaid purchase price. The lien shall include the indebtedness of the district required to be assumed by the purchaser, with the right in the board of improvement of the district upon default in the payment of any part or portion of the principal or interest, as it matures, to declare all of the purchase price due and payable and to proceed to foreclose the lien on the property.
      2. In the same action or by separate action, the board of improvement and the city shall proceed against the surety on the bond provided for in § 14-187-107 to recover any and all damages that the district may have sustained on account or by reason of the breach of the sale.
    1. The deed of conveyance shall be executed on behalf of the city by the mayor and clerk and on behalf of the improvement district by the chairman and secretary of the board of improvement.
    1. The sale of all property of an improvement district shall not work a forfeiture of the corporate entity of the district until all of the purchase price including the indebtedness of the district so assumed by the purchaser shall have been paid in full.
    2. Upon the payment of all the indebtedness by the purchaser, the lien retained in the deed of conveyance shall be satisfied by a deed of release or by marginal entry upon the deed records where it is recorded, by the mayor and clerk for and in behalf of the city and by the chairman and secretary of the board of improvement for and on behalf of the district.

History. Acts 1933, No. 100, § 3; Pope's Dig., § 7442; A.S.A. 1947, § 20-608.

14-187-109. Payment exceeding debts.

If the properties authorized to be sold under this chapter should sell for more than the secured and unsecured indebtedness of the municipal wharf improvement district, then the excess shall be apportioned and paid by the board of improvement back to the then-owners of record of the real property of the district in the same proportion that each parcel of the property has contributed in taxes for the acquisition, construction, and operation of the improvement.

History. Acts 1933, No. 100, § 4; Pope's Dig., § 7443; A.S.A. 1947, § 20-609.

Case Notes

Deficiency on Sale.

District selling its property for less than amount of its bonded indebtedness has power to collect delinquent tax assessments against property within the district that were due and unpaid prior to the date of the sale. Papa v. Kitchens, 204 Ark. 616, 164 S.W.2d 439 (1942).

Chapter 188 Rural Development Authorities

Publisher's Notes. Acts 1963, No. 172, § 24, provided:

“Insofar as the provisions of this act are inconsistent with the provisions of any other law, the provisions of any other law, the provisions of this act shall be controlling.”

Effective Dates. Acts 1963, No. 172, § 26: Mar. 6, 1963. Emergency clause provided: “It has been found and is declared by the General Assembly of Arkansas that certain rural areas in Arkansas suffer from chronic unemployment and underemployment, and a general lack of economic development and that there is urgent need for the institution of economic development for these areas. Therefore, an emergency is declared to exist and this act being necessary for the preservation of the public peace, health and safety, shall take effect and be in force from the date of its approval.”

Acts 1981, No. 425, § 54: Mar. 11, 1981. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 2019, No. 830, § 6: Apr. 9, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that rural development authorities exist throughout the state to help address conditions of chronic unemployment, underemployment, and economic underdevelopment; that the Rural Development Authority Act was enacted decades ago and did not take into account population growth and the need for healthcare facilities in rural areas; and that this act is immediately necessary to update the Rural Development Authority Act to more effectively serve residents of rural areas. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto”.

14-188-101. Title.

This chapter may be referred to as the “Rural Development Authority Act.”

History. Acts 1963, No. 172, § 1; A.S.A. 1947, § 20-1401.

Cross References. Rural Water Associations, § 19-11-604.

14-188-102. Legislative declarations.

It is declared that:

  1. Many rural areas of Arkansas suffer from chronic unemployment and underemployment, lack of economic development, and patterns of land use which contribute to soil erosion, undue depletion of soil fertility resulting in inadequate income to support the farm family, and inadequate control of surface waters for flood prevention or drainage and for the maximum conservation and multiple utilization of water resources;
  2. Adequate healthcare facilities are essential to the economic development of rural areas of the state;
  3. Economic development of rural areas of Arkansas is a public use and purpose for which public money may be spent and private property acquired and is a governmental function of state concern;
  4. It is a proper public purpose for any state public body to aid, as provided in this chapter, any rural development authority operating within its boundaries or jurisdiction, or any rural development project located in it, as the state public body derives immediate benefits and advantages from such an authority or project;
  5. It is in the public interest that such rural development projects be commenced as soon as possible in order to alleviate these conditions of chronic unemployment, underemployment, and economic underdevelopment of rural areas which constitute an emergency; and
  6. The necessity in the public interest for the provisions enacted in this chapter is declared as a matter of legislative determination.

History. Acts 1963, No. 172, § 2; A.S.A. 1947, § 20-1402; Acts 2019, No. 830, § 1.

Amendments. The 2019 amendment inserted (2) and redesignated the remaining subdivisions accordingly.

14-188-103. Definitions.

As used in this chapter, unless the context otherwise requires:

  1. “Area of operation” means all areas within the county, except those areas lying within the corporate limits of cities and towns which have a population of more than nine thousand (9,000) or such part of the area as may be designated as an area of operation under this chapter;
  2. “Bonds” means any bonds, notes, interim certificates, debentures, or other evidences of indebtedness issued by a rural development authority pursuant to this chapter;
  3. “County” means any county in this state;
  4. “Federal government” means the United States of America, or any agency or instrumentality, corporate or otherwise, of the United States of America;
  5. “Governing body” means the county court of any county and, in the case of other state public bodies, the council, commission, board, city council, or other body having charge of the management of the affairs of the state public body;
  6. “Healthcare facilities” means facilities for furnishing physical or mental healthcare services, including without limitation:
    1. Hospitals, emergency medical care facilities, and related facilities; and
    2. Real property, personal property, or mixed property of any kind, including:
      1. Rights-of-way;
      2. Utilities;
      3. Materials;
      4. Equipment;
      5. Fixtures;
      6. Machinery;
      7. Furniture;
      8. Furnishings;
      9. Buildings; and
      10. Other related improvements;
  7. “Rural development authority”, “development authority”, or “authority” means any of the public corporations created pursuant to the provisions of this chapter;
  8. “Rural development project”, “development project”, or “project” means without limitation any work or undertaking:
    1. To develop recreational facilities;
    2. To acquire the types of land enumerated for any of the following purposes:
      1. Submarginal or low-yielding land to convert it to conservation, grazing, forestry, fish and wildlife propagation, or recreation or desirable long-range economic uses;
      2. Land suitable for cultivation that, because of diverse ownership or location, may be made available by the owners of it and consolidated with other similar tracts in the establishment of adequate farming units or consolidated with land devoted to uses other than crop production;
      3. Land suitable for cultivation which becomes available in large blocks upon the death or retirement of the operator or which, because of technological changes or economic conditions, may be made available by the owners of it for diverse ownership and operations as adequate farming units;
      4. Land necessary or desirable for soil and water conservation, flood prevention, watershed protection, drainage, water storage and use, anti-pollution or sanitation uses and other public services or facilities, or necessary rights-of-way and access roads;
    3. For installation, construction, and improvements to utility facilities, roads, parks, conservation practices and measures, flood control and drainage structures and facilities, dams, wells, and reservoirs, pipelines, waterworks, and other devices for the development, storage, and utilization of water for agricultural, domestic, industrial, and community purposes, the development or improvement of sanitation measures, including sewage and sewage disposal facilities and anti-pollution measures, and the construction, operation, maintenance, and repair of any housing project, or part of it; or
    4. For the acquisition, construction, operation, maintenance, and improvement of healthcare facilities; and
  9. “State public body” means any city, town, county, municipal corporation, commission, district, authority, or other political subdivision of this state.

History. Acts 1963, No. 172, § 3; 1967, No. 75, §§ 1, 2; A.S.A. 1947, § 20-1403; Acts 2019, No. 830, §§ 2-4.

Amendments. The 2019 amendment substituted “nine thousand (9,000)” for “five thousand five hundred (5,500)” in (5) [now (1)]; added (7)(D) [now (8)(D)]; added the definition for “Healthcare facilities”; and made stylistic changes.

Case Notes

Eminent Domain.

A corporation formed under provisions of this chapter and organized for the purpose of supplying water to municipalities has the power of eminent domain. Columbia County Rural Dev. Auth. v. Hudgens, 283 Ark. 415, 678 S.W.2d 324 (1984).

The legislative intent in enacting the 1967 amendment, which deleted the power of eminent domain when it was based solely upon the type of corporation which sought to exercise the power, while leaving intact § 18-15-601, which authorizes the power of eminent domain to any corporation organized for the specific purpose of supplying water to municipalities, was to stop the delegation of the power of eminent domain based upon the type of entity formed and base it instead upon the purpose served. Columbia County Rural Dev. Auth. v. Hudgens, 283 Ark. 415, 678 S.W.2d 324 (1984).

14-188-104. Creation of authorities.

    1. In each county of the state there is created a public body corporate and politic to be known as the rural development authority.
    2. The authority shall not transact any business or exercise its powers under this chapter until or unless the county court, by proper resolution, shall declare, at any time, its need for a development authority to function in the county.
      1. The determination as to whether there is a need for an authority to function may be made by:
        1. The county court on its own motion; or
        2. The county court upon the filing of a petition signed by twenty-five (25) residents of the county asserting that there is need for an authority to function in the county and requesting that the court so declare.
        1. In either event, the court shall hold a public hearing on the matter as set forth in this section.
        2. Prior to any hearing held to determine if there is need for an authority to function in the county, the clerk shall cause notice of the hearing to be published for at least two (2) successive weeks in a newspaper of general circulation in the county, setting forth the time and place of the hearing.
        3. Not more than two (2) weeks after the last publication of the notice, the court shall hold a public hearing on it and adopt a resolution which shall state if there is a need for a development authority in the county and define the area of operation, which may be enlarged or reduced by a majority of the commissioners, appointed pursuant to this chapter, at any subsequent meeting.
        4. The court may adopt a resolution declaring that there is a need for development authority in the county if it shall find that:
          1. Chronic unemployment or chronic underemployment exists in the area; or
          2. The economic development of the area is inadequate when compared with the economic development of other parts of rural America.
    1. The determination as to whether there is need for a development authority to function shall be made upon the petition of a majority in number of the owners of title to real property and the owners of a majority in value of the real property in any proposed development area, as shown by the last assessment, which petition shall define the boundaries of the proposed area of development and request the creation of a rural development authority for the area.
  1. In any suit, action, or proceeding involving the validity or enforcement of, or relating to, any resolution, regulation, or contract of the authority, the authority shall be conclusively deemed to have become established and authorized to transact business and exercise its powers under this chapter upon proof of its compliance with this section.

History. Acts 1963, No. 172, §§ 4, 5; A.S.A. 1947, §§ 20-1404, 20-1405.

14-188-105. Appointment of commissioners, etc.

    1. When the county court adopts a resolution as prescribed in § 14-188-104, the court shall appoint five (5) persons as commissioners of the rural development authority created for the county.
      1. The commissioners who are first appointed shall be designated to serve for terms of one (1), two (2), three (3), four (4), and five (5) years, respectively, from the date of their appointment. Thereafter, commissioners shall be appointed as indicated for a term of office of five (5) years, except that all vacancies shall be filled for the unexpired terms.
        1. A certificate of the appointment or reappointment of any commissioner shall be filed with the county clerk.
        2. The certificate shall be conclusive evidence of the due and proper appointment of the commissioner.
    2. The county court of the county shall designate one (1) of the commissioners who shall be the first chairman.
    1. Immediately after appointment, the authority shall hold its first meeting, presided over by the first chairman, and elect a vice chairman from among its commissioners.
      1. The authority shall employ a secretary who shall be executive director, technical experts, and such other officers, agents, and employees as it may require and shall determine their qualifications, duties, and compensation.
      2. For such legal services as it may require, an authority may call upon the chief law officer of the county, or it may employ its own counsel.
    2. An authority may delegate to one (1) or more of its agents or employees such powers or duties as it may deem proper.
    1. The powers of each authority shall be vested in its commissioners in office from time to time.
      1. Three (3) commissioners shall constitute a quorum of the authority for the purposes of conducting its business and exercising its powers and for all other purposes.
      2. Action may be taken by the authority upon a vote of a majority of the commissioners present, except as provided in this chapter and except as otherwise provided in the rules and regulations of the authority.
    2. Minutes of all authority meetings are to be kept by the secretary and shall be made available to the county court of the county at any time.
    3. A commissioner shall receive no compensation for his services, but he shall be entitled to necessary expenses including travel expenses incurred in the discharge of his duties.

History. Acts 1963, No. 172, §§ 6-8; A.S.A. 1947, §§ 20-1406 — 20-1408.

14-188-106. Rules and regulations.

  1. At the first meeting, a rural development authority shall adopt rules and regulations which are to be filed with the county clerk.
  2. Amendments to the rules and regulations may be made at any time and shall be filed with the clerk.

History. Acts 1963, No. 172, § 8; A.S.A. 1947, § 20-1408.

14-188-107. Interest of commissioners or employees prohibited.

    1. No commissioner or employee of a rural development authority shall directly or indirectly acquire any interest in any development project or in any property included, or planned to be included, in any project.
    2. Nor shall a commissioner or employee have any direct or indirect interest in any contract or proposed contract for materials or services to be furnished for use in connection with any project.
    1. If any commissioner or employee of an authority owns or controls a direct or indirect interest in property included, or planned to be included, in any project, he immediately shall disclose it in writing to the authority. This disclosure shall be entered upon the minutes of the authority.
    2. Failure to disclose his interest shall constitute misconduct in office.

History. Acts 1963, No. 172, § 9; A.S.A. 1947, § 20-1409.

14-188-108. Removal of commissioner.

    1. For insufficiency or neglect of duty or misconduct in office, a commissioner of a rural development authority may be removed by the county court.
    2. A commissioner shall be removed only after he shall have been given a copy of the charges at least ten (10) days prior to the hearing on them and had an opportunity to be heard in person or by counsel.
  1. In the event of the removal of any commissioner, a record of the proceedings, together with the charges and findings on them, shall be filed in the office of the clerk.

History. Acts 1963, No. 172, § 10; A.S.A. 1947, § 20-1410.

14-188-109. Powers of authority generally.

A rural development authority shall constitute a public body corporate and politic, exercising public and essential government functions and having all the powers necessary or convenient to carry out and effectuate the purposes and provisions of this chapter, including, but not limited to, the following powers in addition to others granted in this chapter:

    1. To sue and be sued;
    2. To have a seal and alter it at pleasure;
    3. To have perpetual succession;
    4. To make and execute contracts and other instruments necessary or convenient to the exercise of the powers of the authority; and
    5. To amend and repeal rules and regulations, from time to time, not inconsistent with this chapter to carry into effect the powers and purposes of the authority;
    1. To borrow money and otherwise contract indebtedness;
    2. To issue its bonds or other evidence of indebtedness; and
    3. To secure the payment of it by mortgage or pledge of any or all of its property, assets, rights, privileges, licenses, rights-of-way, easements, revenues, or income;
  1. Within its area of operation:
    1. To prepare, acquire, lease, and operate development projects; and
    2. To engage in all related activities which have as their objective the long-range economic development of the county;
    1. To arrange or contract for the furnishing by any person or agency, public or private, of services, privileges, works, or facilities for, or in connection with, a development project; and
    2. Notwithstanding anything to the contrary contained in this chapter or in any other provision of law, to include in any contract let in connection with a project, stipulations requiring that the contractor and any subcontractors comply with any conditions which the federal government may have attached to its financial aid of the project;
    1. To own, hold, and improve real or personal property;
    2. To purchase, lease, obtain options upon, acquire by gift, grant, bequest, devise, or otherwise, any real or personal property, or any interest in it;
    3. To sell, lease, exchange, transfer, assign, pledge, or dispose of any real or personal property or any interest in it;
    4. To insure or provide for the insurance of any real or personal property, or operations of the authority, against any risk or hazards;
    5. To procure insurance or guarantees from the federal government of the payment of any debts, or parts of them, secured by mortgages on any property included in any of its projects;
    1. To invest any funds held in reserves or sinking funds, or any funds not required for immediate disbursement, in property or securities in which savings banks may legally invest funds subject to their control;
    2. To purchase its bonds at a price not more than their principal amount, with accrued interest;
  2. Within its area of operation, to investigate into unemployment, underemployment, and economic underdevelopment, and into the means of improving these conditions; and
  3. To exercise all, or any part or combination of, the powers granted in this section.

History. Acts 1963, No. 172, § 11; 1967, No. 75, § 3; A.S.A. 1947, § 20-1411.

Case Notes

Eminent Domain.

A corporation formed under provisions of this chapter and organized for the purpose of supplying water to municipalities has the power of eminent domain. Columbia County Rural Dev. Auth. v. Hudgens, 283 Ark. 415, 678 S.W.2d 324 (1984).

The legislative intent in enacting the 1967 amendment, No. 75, which deleted the power of eminent domain when it was based solely upon the type of corporation which sought to exercise the power, while leaving intact § 18-15-601, which authorizes the power of eminent domain to any corporation organized for the specific purpose of supplying water to municipalities, was to stop the delegation of the power of eminent domain based upon the type of entity formed and base it instead upon the purpose served. Columbia County Rural Dev. Auth. v. Hudgens, 283 Ark. 415, 678 S.W.2d 324 (1984).

14-188-110. Issuance of bonds and other evidence of indebtedness.

      1. A rural development authority shall have power to issue bonds or other evidence of indebtedness from time to time, in its discretion, for any of its corporate purposes.
      2. Any authority shall also have power to issue refunding bonds for the purpose of paying or retiring bonds previously issued by it.
      1. An authority may issue these types of bonds as it may deem necessary, including bonds on which the principal and interest are payable:
        1. Exclusively from the income and revenues of the development project financed with the proceeds of the bonds, or with these proceeds together with a grant from the federal government in aid of the project;
        2. Exclusively from the income and revenues of certain designated development projects, whether or not they were financed, in whole or in part, with the proceeds of the bonds; or
        3. From its revenues generally.
      2. Any of the bonds may be additionally secured by a pledge of any revenues or a mortgage of any development project or other property of the authority.
    1. Neither the commissioners of an authority nor any person executing the bonds shall be liable personally on the bonds by reason of the issuance of them.
      1. The bonds and other evidence of indebtedness of an authority shall not be a debt of the city, county, the state, or any political subdivision thereof, and neither the city, the county, nor the state, nor any political subdivision thereof, shall be liable on them nor in any event shall such bonds or evidence of the indebtedness be payable out of any funds or properties other than those of the authority.
      2. The bonds shall not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction.

History. Acts 1963, No. 172, § 13; A.S.A. 1947, § 20-1413.

14-188-111. Powers in connection with issuance of bonds, etc.

In connection with the issuance of bonds or with the incurrence of other indebtedness, and in order to secure the payment of bonds or other evidence of indebtedness, a rural development authority, in addition to its other powers, shall have power:

  1. To pledge all or any part of its gross or net rents, fees, or revenues to which its right then exists or may thereafter come into existence;
  2. To mortgage all, or any part, of its real or personal property, then owned or thereafter acquired;
    1. To covenant against pledging all, or any part, of its rents, fees, and revenues or against mortgaging all, or any part, of its real or personal property, to which its right or title then exists or may thereafter come into existence or to covenant against permitting or suffering any lien on such revenues or property;
    2. To covenant with respect to limitations on its right to sell, lease, or otherwise dispose of any development project, or any part of it; and
    3. To covenant as to what other, or additional, debts or obligations may be incurred by it;
    1. To covenant as to the bonds to be issued as to the issuance of the bonds, in escrow or otherwise, and as to the use and disposition of the proceeds of them;
    2. To provide for the replacement of lost, destroyed, or mutilated bonds;
    3. To covenant against extending the time for the payment of its bonds, or interest on them;
    4. To redeem the bonds;
    5. To covenant for their redemption; and
    6. To provide the terms and conditions of them;
    1. To covenant as to the rents and fees to be charged in the operation of a development project or projects, the amount to be raised each year or other period of time by rents, fees, and other revenues, and as to the use and disposition to be made of them;
    2. To create or to authorize the creation of special funds for moneys held for construction or operating costs, debt service, reserves, or other purposes; and
    3. To covenant as to the use and disposition of the moneys held in these funds;
  3. To prescribe the procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds the holders of which must consent thereto, and the manner in which the consent may be given;
    1. To covenant as to the use of any or all of its real or personal property; and
    2. To covenant as to the maintenance of its real and personal property, the replacement of it, the insurance to be carried on it, and to the use and disposition of insurance moneys;
    1. To covenant as to the rights, liabilities, powers, and duties arising upon the breach by it of any covenant, condition, or obligation; and
    2. To covenant and prescribe as to the events of default and terms and conditions upon which any or all of its bonds or obligations shall become or may be declared due before maturity, and as to the terms and conditions upon which this declaration and its consequences may be waived;
    1. To vest in trustees, or the holders of bonds or any proportion of them, the right to enforce the payment of the bonds or any covenants securing or relating to the bonds;
    2. To vest in trustees the right, in the event of a default by the authority, to take possession and use, operate, and manage any development project, or part of it, and to collect the rents and revenues arising from it, and to dispose of the moneys in accordance with the agreement of the authority with the trustee;
    3. To provide for the powers and duties of trustees and to limit the liabilities of them; and
    4. To provide the terms and conditions upon which the trustees, or the holders of bonds or any proportion of them, may enforce any covenant or rights securing or relating to the bonds; and
    1. To exercise all, or any part or combination, of the powers granted in this section;
    2. To make covenants other than, and in addition to, the covenants expressly authorized in this section, of like or different character; and
    3. To make such covenants and to do any and all such acts and things as may be necessary, convenient, or desirable in order to secure its bonds, or, in the absolute discretion of the authority, as will tend to make the bonds more marketable, notwithstanding that the covenants, acts, or things may not be enumerated in this section.

History. Acts 1963, No. 172, § 15; A.S.A. 1947, § 20-1415.

14-188-112. Form and sale of bonds, etc.

    1. Bonds or other evidence of indebtedness of a rural development authority shall be authorized by a resolution upon a vote of at least three (3) commissioners.
    2. As the resolution, its trust indenture, or mortgage may provide, the bonds:
      1. May be issued in one (1) or more series; and
      2. Shall:
        1. Bear such date or dates;
        2. Mature at such time or times;
        3. Bear interest at such rate or rates;
        4. Be in such denomination or denominations;
        5. Be in such form, either coupon or registered;
        6. Carry such conversion or registration privileges;
        7. Have such rank or priority;
        8. Be executed in such manner;
        9. Be payable in such medium of payment, at such place or places; and
        10. Be subject to such terms of redemption, with or without premium.
      1. The bonds may be sold under such terms or conditions as the authority may require.
      2. Any provision of any law to the contrary notwithstanding, any bonds issued pursuant to this chapter shall be fully negotiable.
  1. In case any of the commissioners or officers of the authority whose signatures appear on any bonds shall cease to be commissioners or officers before the delivery of the bonds, their signatures shall, nevertheless, be valid and sufficient for all purposes, the same as if the commissioners or officers had remained in office until the delivery.
  2. In any suit, action, or proceedings involving the validity or enforceability of any bond of an authority, or the security for it, any such bond reciting in substance that it has been issued by the authority to aid in financing a rural development project shall be conclusively deemed to have been issued for a development project of such character and the project shall be conclusively deemed to have been planned, located, and constructed in accordance with the purposes and provisions of this chapter.

History. Acts 1963, No. 172, § 14; 1981, No. 425, § 23; A.S.A. 1947, § 20-1414.

14-188-113. Validation of indebtedness.

All outstanding loans and their evidences of indebtedness obtained and processed under the provisions of this chapter are validated, ratified, and confirmed. These evidences of debt are, respectively, found and declared to be valid and subsisting obligations of the makers in accordance with the terms of them.

History. Acts 1967, No. 75, § 4; A.S.A. 1947, § 20-1424.

14-188-114. Remedies of obligees.

An obligee of a rural development authority shall have the right, in addition to all other rights which may be conferred upon the obligee, subject only to any contractual restrictions binding upon the obligee, by:

  1. Mandamus, suit, action, or proceeding, at law or in equity, to compel the authority, and the commissioners, officers, agents, or employees of it, to perform each and every term, provision, and covenant contained in any contract of the authority with or for the benefit of the obligee, and to require the carrying out of any or all such covenants and agreements of the authority and the fulfillment of all duties imposed upon the authority by this chapter; or
  2. Suit, action, or proceeding in equity, to enjoin any acts or things which may be unlawful, or the violation of any of the rights of the obligee of the authority.

History. Acts 1963, No. 172, § 16; A.S.A. 1947, § 20-1416.

14-188-115. Additional remedies conferrable on obligees.

A rural development authority shall have power, by its resolution, trust indenture, mortgage, lease, or other contract, to confer upon any obligee holding or representing a specified amount in bonds or other evidence of indebtedness the right, in addition to all rights that may otherwise be conferred, upon the happening of an event of default as defined in the resolution or instrument, by suit, action, or proceeding in any court of competent jurisdiction, to:

  1. Cause possession of any development project, or any part of it, to be surrendered to any obligee;
  2. Obtain the appointment of a receiver of any development project of the authority, or any part of it, and of the rents and profits from it. If a receiver is appointed, he may enter and take possession of the project, or any part of it, and operate and maintain it, collect and receive all fees, rents, revenues, or other charges thereafter arising from it, and shall keep the moneys in a separate account and apply them in accordance with the obligations of the authority, as the court shall direct; and
  3. Require the authority and the commissioners of it to account as if it and they were the trustees of an express trust.

History. Acts 1963, No. 172, § 17; A.S.A. 1947, § 20-1417.

14-188-116. Exemption from lien and execution sale.

  1. All real property of a rural development authority shall be exempt from levy and sale by virtue of an execution. No execution or other judicial process shall issue against it, nor shall any judgment against an authority be a charge or lien upon its real property.
  2. The provisions of this section shall not apply to or limit the right of obligees to foreclose or otherwise enforce any mortgage of any authority or the right of obligees to pursue any remedies for the enforcement of any pledge or lien given by an authority on its rents, fees, or revenues.

History. Acts 1963, No. 172, § 18; A.S.A. 1947, § 20-1418.

14-188-117. Exemption from taxes or assessments.

    1. The property of a rural development authority is declared to be public property used for essential and exclusively public and governmental purposes and not for profit.
    2. The property and income from notes and bonds issued by an authority shall be exempt from all taxes, including state income taxes, and special assessments of the state or any state public body.
    1. In lieu of taxes or special assessments, an authority may agree to make payments to a state public body for improvements, services, and facilities furnished by the state public body for the benefit of a development project.
    2. In no event shall these payments exceed the estimated cost to the state public body of the improvements, services, or facilities to be furnished.

History. Acts 1963, No. 172, § 22; A.S.A. 1947, § 20-1422.

14-188-118. Security for deposits.

  1. A rural development authority shall provide by resolution that all moneys deposited by it shall be secured by:
    1. Obligations of the United States or of the state of a market value equal at all times to the amount of the deposits;
    2. Any securities in which savings banks may legally invest funds within their control;
    3. An undertaking with such sureties as shall be approved by the authority faithfully to keep and pay over upon the order of the authority any such deposits and agreed interest on them; or
    4. Other obligations allowed by law.
  2. All banks and trust companies are authorized to give any such security for such deposits.

History. Acts 1963, No. 172, § 21; A.S.A. 1947, § 20-1421; Acts 2019, No. 830, § 5.

Amendments. The 2019 amendment substituted “shall” for “may” in the introductory language of (a); and added (a)(4).

14-188-119. Cooperation by authorities.

Any two (2) or more rural development authorities, created by or pursuant to the provisions of this chapter, may join or cooperate with one another in the exercise, either jointly or otherwise, of any or all their powers for the purpose of financing, including the issuance of bonds, notes, or other evidence of indebtedness and giving security for them, planning, undertaking, constructing, operating, or contracting with respect to development projects located within the area of operation of any one (1) or more of the authorities.

History. Acts 1963, No. 172, § 12; A.S.A. 1947, § 20-1412.

14-188-120. Aid and cooperation by state public bodies.

For the purpose of aiding and cooperating in the planning, undertaking, construction, or operation of rural development projects, including development projects of the federal government, located within the area in which it is authorized to act, any state public body may, upon such terms, with or without consideration, as it may determine, may:

  1. Dedicate, sell, convey, or lease any of its property to a rural development authority;
  2. Cause parks, playgrounds, recreational, community, educational, water, sewer, or drainage facilities, or any other works, which it is otherwise empowered to undertake, to be furnished adjacent to or in connection with development projects;
  3. Furnish, dedicate, close, pave, install, grade, regrade, plan, or replan streets, roads, roadways, alleys, sidewalks, or other places which it is otherwise empowered to undertake;
  4. Enter into agreements, which may extend over any period, notwithstanding any provision or rule of law to the contrary, with a development authority or the federal government respecting action to be taken by the state public body pursuant to any of the powers granted by this chapter; and
  5. Do any and all things necessary or convenient to aid and cooperate in the planning, undertaking, construction, or operation of such projects.

History. Acts 1963, No. 172, § 23; A.S.A. 1947, § 20-1423.

14-188-121. Federal aid and assistance.

  1. In addition to the powers conferred upon a rural development authority by other provisions of this chapter, an authority is empowered to borrow money or accept grants or other financial assistance from the federal government for, or in aid of, any development project within its area of operation. To these ends, an authority may comply with such conditions and enter into such mortgages, trust indentures, leases, or agreements as may be necessary, convenient, or desirable.
  2. It is the purpose and intent of this section to authorize every authority to do any and all things necessary or desirable to secure the financial aid or cooperation of the federal government in the undertaking, construction, maintenance, or operation of any development project and in any other activity or undertaking of the authority.

History. Acts 1963, No. 172, § 19; A.S.A. 1947, § 20-1419.

14-188-122. Agreements with federal government.

  1. In any contract or amendatory or superseding contract for a loan entered into between any rural development authority and the federal government, or any of its agencies, with respect to any development project undertaken by the authority, any authority is authorized to make such covenants, including covenants with holders of obligations of the authority issued for purposes of the project involved, and to confer upon the federal government, or any of its agencies, such rights and remedies as the authority deems necessary to assure the fulfillment of the purposes for which the project was undertaken.
  2. In any such contract, notwithstanding any other provisions of law, the authority may agree to sell and convey the project, including all lands appertaining to it to which the contract relates, to the federal government, or any agency of it, upon the occurrence of such conditions as may be prescribed in the contract, and at a price, which may include the assumption by the federal government, or any agency of it, of the payment, when due, of the principal of, and interest on, outstanding obligations of the authority issued for purposes of the project involved, determined as prescribed in it and upon such other terms and conditions as are provided in it.
  3. Any authority is authorized to enter into such supplementary contracts and to execute such conveyances as may be necessary to carry out the provisions of this section.

History. Acts 1963, No. 172, § 20; A.S.A. 1947, § 20-1420.

Chapters 189-198 [Reserved.]

[Reserved]

Subtitle 12. Public Utilities Generally

Chapter 199 General Provisions

Research References

Am. Jur. 56 Am. Jur. 2d, Mun. Corp., § 560 et seq.

C.J.S. 62 C.J.S., Mun. Corp., § 292.

63 C.J.S., Mun. Corp., §§ 1050-1052.

Subchapter 1 — General Provisions

Cross References. Local Government Bond Act of 1985, § 14-164-301 et seq.

Effective Dates. Acts 1949, No. 72, § 4: approved Feb. 10, 1949. Emergency clause provided: “Whereas, many municipal corporations are finding it an impossibility to employ competent personnel to operate water and light plants on account of there being no provision for social security, group insurance or other benefits, and

“Whereas, such operation is necessary to the public peace, health and safety of the inhabitants of the State of Arkansas, an emergency is hereby declared to exist and this Act shall be in full force and effect from and after its passage.”

Acts 1959, No. 126, § 3: Feb. 27, 1959. Emergency clause provided: “It has been found and is declared by the General Assembly that many public school districts are severely burdened financially by the loss of taxes resulting from the tax exempt status of municipally owned utilities located in such districts; that in many instances the municipalities involved are willing and able to compensate such districts for this loss; that there is urgent need to permit the municipalities involved to make such compensation; and that enactment of this measure will to a great extent lessen the financial burden for such districts. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health and safety, shall take effect and be in force from the date of its approval.”

Acts 1967, No. 305, § 4: approved Mar. 10, 1967. Emergency clause provided: “It is hereby found and declared by the General Assembly that the authority of municipalities to pledge surplus utility revenues to and use for the payment of bonds of municipalities for the purposes set forth in this Act (which purposes may not themselves produce sufficient revenues) will greatly enhance the marketability of the municipalities' bonds and will generally result in a better price and that only by giving immediate effect to this Act can these essential public benefits be realized. The financing made possible and benefited hereby is essential to programs of immediately needed public works that will benefit the municipalities and their citizens and residents. It is, therefor, declared that an emergency exists and this Act, being immediately necessary for the preservation of the public peace, health, safety and welfare shall take effect and be in force from and after its passage.”

Acts 1967, No. 318, § 2: Mar. 13, 1967. Emergency clause provided: “It is hereby found and declared by the General Assembly that there is an urgent need to permit the use of surplus electric revenues by cities and towns in this State to assist in the financing of an adequate public school system and this Act is necessary to authorize such use. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and safety shall take effect and be in force from and after its passage and approval.”

Acts 1977, No. 740, § 7: Mar. 24, 1977. Emergency clause provided: “It is hereby found and declared by the General Assembly of the State of Arkansas that this nation's energy crisis and the financial plight of larger Arkansas cities dependent on utility revenues for operations requires that procedures be available to such cities to allow the most efficient operation of utility system possible. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate protection of the public peace, health and safety shall take effect immediately on its passage and approval.”

Acts 1979, No. 37, § 4: approved Feb. 2, 1979. Emergency clause provided: “It is hereby found and declared by the General Assembly that the existing authority of municipalities to pledge surplus utility revenues to and use for the payment of bonds of municipalities for the purposes set forth in Act No. 305 of 1967 (which purposes may not themselves produce sufficient revenues) are unduly restrictive and that the amendments herein contained will greatly enhance the ability of municipalities to finance needed public works and that only by giving immediate effect to this Act can these essential public benefits be realized. The financing made possible and benefited hereby is essential to programs of immediately needed public works that will benefit the municipalities and their citizens and residents. It is, therefore, declared that an emergency exists and this Act, being immediately necessary for the preservation of the public peace, health, safety and welfare shall take effect and be in force from and after its passage.”

Acts 1979, No. 519, § 5: Mar. 21, 1979. Emergency clause provided: “It has been found by the General Assembly of the State of Arkansas and it is hereby declared that present Arkansas statutes permitting the pledging of surplus utility revenues for the financing of needed municipal improvements are inadequate in that city halls and municipal administration buildings are not included among the specified improvements, that some municipalities have an immediate and urgent need for the construction and the financing of city halls and municipal administration buildings and that in some instances surplus utility revenues afford the only means available for such financing. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect upon its passage and approval.”

Acts 1989, No. 108, § 4: Feb. 20, 1989. Emergency clause provided: “It has been found and it is hereby declared that certain municipalities in this State have a need to develop or to assist in the development of public ports and harbors, to the benefit of such municipalities and their inhabitants, and that the only effective method whereby such assistance can be provided is by the pledging of surplus utility revenues to revenue bonds issued by such municipalities. Therefore, an emergency is declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 2007, No. 1609, § 2: Apr. 10, 2007. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that as a result of changes in wholesale electric markets municipal electric utilities are being forced to substantially increase rates; that the increases in the electric rates being charged by municipal electric utilities are in many instances creating hardships for customers; and that this act is necessary because it will allow municipalities to use municipal electric utility revenues to provide relief from rate increases to customers who need relief in order to avoid irreparable harm to those customers. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

14-199-101. Surplus revenues — Definitions.

  1. As used in this section, unless the context otherwise requires:
    1. “Surplus revenues” means revenues remaining after adequate provision shall have been made for expenses of operation, maintenance, and depreciation of the utilities and all requirements pertaining to the payment of principal, interest, and fees in connection with bonds and establishing and maintaining reserves of ordinances or indentures securing bonds issued to finance the cost of constructing, reconstructing, extending, improving, or equipping the utilities have been fully met and complied with; and
    2. “Utilities” means the utility or utilities involved in the pledging and use of surplus utility revenues pursuant to this section for the payment of the principal of, interest on, and paying agent's fees in connection with any bonds issued by the municipality.
  2. Any municipality in this state is authorized to pledge and use surplus revenues derived from one (1) or more of the water, sewer, gas, or electric utilities already owned at the time of any such pledge or use by the municipality for any of the following purposes only:
    1. Off-street parking facilities;
    2. Sanitation facilities;
    3. Hospital buildings and facilities;
    4. Public park buildings, improvements, and facilities;
    5. Auditoriums;
    6. Convention centers;
    7. Streets and roadways;
    8. Airport improvements and facilities;
    9. City halls and municipal administration buildings;
    10. Public ports, harbors, and industrial or other facilities related thereto, whether owned by the municipality or another public body;
    11. Fire and emergency equipment;
    12. Assistance for low-income customers under subsection (d) of this section; or
    13. Any combination of the above purposes.
  3. The authority conferred by this section pertains to the pledging and use of surplus utility revenues to bonds issued by municipalities for the purposes set forth in subsection (b) of this section only, which purposes are not related to the operation of utilities. Nothing in this section shall be construed as modifying or diminishing the authority, the existence of which is confirmed and ratified, of the direct pledging and cross pledging of all or any part of the revenues of each utility to utility revenue bonds issued for constructing, reconstructing, extending, improving, or equipping that and other utilities already owned by the municipality at the time of any such pledge, cross pledge, or use, as is presently done in the case of many municipalities in the state.
      1. The governing authority of a municipal electric utility may use surplus revenues from the operation of the municipal electric utility to provide assistance to low-income customers of the utility.
      2. Not more than four percent (4%) of surplus revenues may be used by the governing authority of a municipal electric utility to provide assistance to low-income customers of the utility.
    1. Assistance to low-income customers of the municipal electric utility may include without limitation:
      1. Home energy efficiency improvements;
      2. Bill payment assistance; or
      3. Other assistance approved by the governing authority of a municipal electric utility.
    2. If the governing authority of a municipal electric utility uses surplus revenues to provide assistance to low-income customers of the utility, the governing authority of a municipal electric utility shall establish guidelines for the application of assistance, including without limitation, qualifications for assistance and the manner in which assistance is sought.

History. Acts 1967, No. 305, §§ 1, 2; 1979, No. 37, § 1; 1979, No. 519, § 1; A.S.A. 1947, §§ 19-3931, 19-3932; Acts 1989, No. 108, § 1; 1993, No. 195, § 1; 2007, No. 1609, § 1.

Amendments. The 1993 amendment inserted (b)(11) and redesignated former (b)(11) as (b)(12).

Cross References. Use of surplus revenues for hospitals, § 14-265-107.

14-199-102. Compensation of school district in lieu of taxes.

    1. Upon approval of the governing body of a municipality, a utility owned by the municipality may compensate annually a public school district in which the utility is wholly or partly located in an amount not to exceed the amount the utility would pay in taxes if it were subject to taxation.
    2. The amount shall be based on a percentage not in excess of twenty percent (20%) of the value of all properties of the utility located in the public school district computed at the millage rate currently in effect in that district. The valuation may be determined by a certified public accountant who is personally familiar with the assets of the utility.
    3. The purpose of this subsection is to permit, but not to require, municipally owned utilities to compensate public school districts for loss of taxes resulting from the utilities' tax-exempt status.
    1. The council of any city of the first class, city of the second class, or incorporated town in this state owning an electric utility system and deriving revenues from it may agree to and make payments in lieu of taxes to any school district, all or a portion of which is within the city limits of the municipality, when some or all of the property of the electric utility system of the municipality is within the boundaries of the school district.
    2. The amount of the payment in lieu of taxes to be made to the school district shall be such amount as the council of the municipality shall determine, not to exceed the amount that would be due the school district in taxes if the property of the electric utility system of the municipality located within the boundaries of the school district was privately owned and subject to taxation by the school district.
    3. Payments in lieu of taxes shall be made only from surplus electric revenues.
    4. “Surplus electric revenues,” as used in this subsection, means electric revenues remaining after adequate provision shall have been made for expenses of operation, maintenance, and depreciation and all requirements of ordinances, orders, and indentures securing bonds theretofore issued or securing bonds thereafter issued to finance the cost of acquiring, constructing, reconstructing, extending, or improving the electric utility system have been fully met and complied with.

History. Acts 1959, No. 126, §§ 1, 2; 1967, No. 318, § 1; A.S.A. 1947, §§ 19-3929, 19-3930, 19-3933.

14-199-103. Vacation of public utility easements.

  1. Cities of first and second class and incorporated towns are given power and authority to vacate public utility easements or segments thereof, within such cities and towns under the conditions and in the manner provided for the vacation of streets and alleys by §§ 14-301-301 — 14-301-306.
  2. A petition requesting the vacation of a public utility easement, signed by the property owners through whose property the easement extends shall be filed with the municipal legislative body and dealt with in the manner provided for by law.
  3. Upon the adoption of an ordinance vacating a public utility easement, or a segment thereof, the ownership of the lot, block, or parcel of real property through which the easement extends shall cease to be burdened with the easement.
  4. Nothing in this section shall be construed as empowering first-class and second-class cities and incorporated towns to vacate utility easements still in use or to vacate utility easements owned by utilities without just compensation therefor.
  5. This section shall be cumulative to §§ 14-301-301 — 14-301-306.

History. Acts 1979, No. 728, §§ 1-5; A.S.A. 1947, §§ 19-3939 — 19-3943.

14-199-104. Insurance and retirement plans.

  1. In any city of the first class owning and operating municipal light and power systems, the boards of commissioners or other controlling or managing bodies in control of such systems are authorized to provide plans of social security, group insurance, hospitalization insurance, old age pension and retirement pay benefits, or any of these benefits, for any or all employees of municipal light and power systems under such plan or plans as the boards of commissioners deem most desirable.
  2. The plans for any or all benefits may include payments from both the boards of commissioners and the employees, or either of them, and may be underwritten by some solvent insurance company or by a fund set up and maintained by the boards of commissioners from the funds of the light and power systems, except such funds as are set aside for specific purposes, the employees, or both or either of them.
  3. The plans, when perfected, shall supersede all other plans provided by law.

History. Acts 1949, No. 72, §§ 1, 2; A.S.A. 1947, §§ 19-3927, 19-3928.

14-199-105. Release of information to court-appointed process server.

  1. Upon verbal request of a court-appointed process server, a public utility under this subtitle shall release the last known address of a current or former customer to the process server to effect service of process of legal documents on the customer or former customer.
  2. The public utility may request that the process server produce written documentation of his or her court appointment at the time the verbal request is made under this section.

History. Acts 2015, No. 878, § 1.

Subchapter 2 — Profits of Electric or Water System

14-199-201. Applicability to commission form of government.

No part of this subchapter shall apply to a municipal plant operated solely by city commissioners without a majority vote of the commissioners.

History. Acts 1937, No. 267, § 5; A.S.A. 1947, § 19-3905.

14-199-202. Authorized use.

Any municipality owning an electric power plant or a water system, where the plant or system has no bonded indebtedness, is authorized to use the profit derived from the operation of the plant or system toward the payment of the outstanding bonded indebtedness of all sewer or street improvement districts within the limits of the municipality, as provided in this subchapter.

History. Acts 1937, No. 267, § 1; Pope's Dig., § 10042; A.S.A. 1947, § 19-3901.

Cross References. Use of profits in municipal improvement districts, § 14-89-901 et seq.

14-199-203. Ordinance requirement.

The profits from the operation of any electric power plant or water system within any municipality shall not be used toward the retirement of the bonded indebtedness of any sewer or street improvement district within such city until the use of the profit for that purpose has first been authorized by an ordinance regularly adopted by the council of the municipality.

History. Acts 1937, No. 267, § 2; Pope's Dig., § 10043; A.S.A. 1947, § 19-3902.

14-199-204. Apportionment ratio.

At the end of each fiscal year of the operation of the municipally owned electric plant or water system, the profit from the operation of the plant or system shall be determined. If the council or city commission of the municipality shall determine that the profit or a part thereof shall be used toward the retirement of the bonded indebtedness of all the sewer or street improvement districts within the limits of such municipality, then the council, by ordinance as provided in § 14-199-203, shall allocate the amount to the various improvement districts within the limits of the municipality according to the following ratio: The total amount of bond and interest maturities of all sewer or street improvement districts within such municipality coming due during the particular fiscal year for which the profit of the plant and system was determined, shall be determined, and the ratio which the total bond and interest maturities of any sewer or street improvement district for such fiscal year bears to the total bond and interest maturities of all the sewer or street improvement districts for the fiscal year shall be the percentage used to allocate to each sewer or street improvement district, its proportion of the profit to be used for the retirement of the bonded indebtedness of any such district.

History. Acts 1937, No. 267, § 3; Pope's Dig., § 10044; A.S.A. 1947, § 19-3903.

14-199-205. Payment of allocated funds.

The amounts allocated to the various sewer or street improvement districts within the limits of a municipality shall be paid to the districts when the commissioners of the district shall request that the amount be paid in order that the amount may be used to pay the bond and interest maturities of the districts which are about to come due.

History. Acts 1937, No. 267, § 4; Pope's Dig., § 10045; A.S.A. 1947, § 19-3904.

Subchapter 3 — Lease or Sale

Effective Dates. Acts 1923, No. 322, § 6: approved Mar. 6, 1923. Emergency clause provided: “All laws or parts of laws in conflict herewith be and the same are hereby repealed, and this act being necessary for the immediate preservation of the public peace, health and safety shall take effect and be in force from and after its passage.”

Acts 1927, No. 349, § 2: approved Mar. 28, 1927. Emergency clause provided: “This act being necessary to the public welfare an emergency is hereby declared to exist and this act to take effect from and after its passage.”

Case Notes

Conflicts of Interest.

It is against public policy for the officers of a municipal corporation to lease or sell waterworks or light plants to themselves. Rogers v. Sangster, 180 Ark. 907, 23 S.W.2d 613 (1930).

14-199-301. Lease or contract.

  1. The council of any municipal corporation operating a system of waterworks or sewer or gas or electric plants belonging to and owned by any town or city may lease, or may contract for the operation of, the system of waterworks or sewer or gas or electric plants for such period of time and upon such terms and conditions as the council may deem for the best interest of the town or city.
  2. The lessees, or parties with which the town or city has contracted, shall be required to maintain, keep in repair, and return the plant to the town or city in as good condition as when received, ordinary wear and tear excepted, but the maintenance contemplated shall permit more modern or suitable machinery or equipment, equally as efficient to perform the service required, to be installed in place of machinery or equipment then in use.
  3. No lease shall be made, and no contract for the operation of any such system shall be entered into, except with persons, firms, or corporations, both for profit and nonprofit, holding a franchise to operate a system of waterworks or sewer or gas or electric plants in the city or town in which the plant or system to be leased or operated is situated.
  4. No plant shall be taken over for operation under the provisions of this subchapter unless and until the lessee, or the party with which the town or city contracts, has filed with the town or city an approved bond, in such sum as the council may require, for the faithful fulfillment of the terms of the lease or contract.

History. Acts 1923, No. 322, § 1; Pope's Dig., § 7390; A.S.A. 1947, § 19-3906; Acts 1995, No. 764, § 1.

Amendments. The 1995 amendment inserted “or sewer” twice and “or may contract for the operation of” once in (a); inserted “or parties … contracted” in (b); rewrote (c); in (d), inserted “or the party … contracts” and added “or contract”; and made stylistic changes.

Case Notes

Improvement Districts.

A city has no authority under this section to lease a waterworks and electric light plant owned by improvement districts although operated by the city. Rogers v. Sangster, 180 Ark. 907, 23 S.W.2d 613 (1930).

Cited: Ogan v. Jackson, 175 Ark. 820, 300 S.W. 446 (1927); Gantt v. Arkansas Power & Light Co., 194 Ark. 925, 109 S.W.2d 1251 (1937).

14-199-302. Sale.

  1. The council of any municipal corporation owning a system of waterworks or gas or electric plants may sell the system or either of them, together with the right to operate them when they shall determine by resolution adopted by a majority vote of the council that it would be for the best interest of the town or city that the sale be consummated.
    1. Before any sale shall be consummated, a petition shall be filed with the council within one (1) year after the adoption of the resolution, signed by a majority in value as shown by the last county assessment of the owners of real property within the town or city proposing to make the sale, asking that the sale be made and stating the minimum price at which the sale shall be made, which shall in no event be a sum less than the amount necessary to pay all the outstanding secured indebtedness against the plant or system.
    2. Upon the filing of this petition, the council of the city or town shall give notice by publication once a week for two (2) weeks in a newspaper published in the county in which the city or town may lie, advising the owners of real property within the city or town that on a day therein named the council of the city or town will hear the petition and determine whether those signing it constitute a majority in value of the owners of real property.
    3. At the meeting named in the notice, the owners of real property within the city or town shall be heard before the council, which shall determine whether the signers of the petition constitute a majority in value. The finding of the council shall be conclusive unless within thirty (30) days thereafter suit is brought to review its action in the chancery court of the county in which the city or town lies.
    4. In determining whether those signing the petition constitute a majority in value of the owners of the real property within the city or town, the council and the chancery court shall be guided by the records of deeds in the office of the recorder of the county and shall not consider any unrecorded instrument.

History. Acts 1923, No. 322, § 2; Pope's Dig., § 7391; A.S.A. 1947, § 19-3907.

14-199-303. Payment — Bond.

  1. Where the sale price is an amount greater than the outstanding secured indebtedness of the district, at least the excess over the amount of the secured indebtedness shall be paid in cash.
    1. All deferred payments, if any, shall be secured by a bond for one and one-half (1½) times the total amount of the deferred payments. This bond shall be for the maintenance of the plant or system during the time of any outstanding secured indebtedness and for the prompt payment of any interest or principal on any secured indebtedness as and when the interest or principal shall fall due.
    2. The bond shall be further conditioned that the purchaser will maintain insurance upon the plant for an amount to be agreed upon, with a “loss payable” clause for the benefit of the town or city making the sale as its interest may appear.
    3. The bond shall be approved by the town or city council.
    4. The bond provided for in this section and § 14-199-301 shall be made by a corporate surety company authorized to do business in the State of Arkansas.

History. Acts 1923, No. 322, § 3; Pope's Dig., § 7392; A.S.A. 1947, § 19-3908.

14-199-304. Deed of conveyance — Satisfaction of lien.

  1. The transfer of property under this subchapter shall be evidenced by a deed of conveyance in the usual form and with the usual covenants or warranty; but a lien against the property sold shall be retained in the deed for all of the unpaid sale price with the right, upon default of payment of any interest or indebtedness when any interest or indebtedness falls due, to declare all of the unpaid sale price due and payable and to proceed to a foreclosure. The deed of conveyance shall be executed on behalf of a town or city by the mayor and the recorder or clerk.
  2. A receipt duly executed by the treasurer of a town or city shall release the purchaser from further liability for the payment of the amount recited in the receipt.
  3. Upon the payment of all indebtedness for which a lien may be retained in the deed of conveyance, the mayor and recorder or clerk of a town or city are authorized and directed to satisfy the lien by a deed or release, or by marginal entry upon the deed records where the lien may be recorded.

History. Acts 1923, No. 322, § 4; Pope's Dig., § 7393; A.S.A. 1947, § 19-3909.

14-199-305. Use of down payment.

The proceeds of any initial cash payment from the sale of any system of waterworks or gas or electric plants of any town or city shall be applied first to the payment of all unsecured debts owing by the town or city on account of the plant or system. Any remainder shall be turned over to the treasurer of the town or city.

History. Acts 1923, No. 322, § 5; 1927, No. 349, § 1; Pope's Dig., §§ 7394, 10046; A.S.A. 1947, § 19-3910.

Case Notes

In General.

Prior to the 1927 amendment, profits from the sale of waterworks would go to property owners of the district. Ogan v. Jackson, 175 Ark. 820, 300 S.W. 446 (1927).

14-199-306. First opportunity to purchase — Notice.

  1. Any privately owned utility whose main facilities and service area is wholly located within no more than two (2) counties and which serves primarily rural residential customers shall not be transferred or sold to another privately owned legal entity without first the county, or a political subdivision of the county established by the utility's customers solely for the purpose of acquiring the utility, being given the first opportunity to purchase the utility together with the right to meet any other bona fide offers.
  2. Prior to any offering, the utility shall attach a notice to each customer's bill that the utility will be offered for sale on a specified future date not less than ninety (90) days after the date of the first notice.

History. Acts 1987, No. 347, § 1.

Subchapter 4 — Joint Management

Cross References. Consolidated water and light improvement districts, § 14-218-101 et seq.

Effective Dates. Acts 1947, No. 106, § 5: Feb. 20, 1947. Emergency clause provided: “Whereas, cities of the first class, owning and operating both a Municipal Light Plant and Municipal Water Plant, being operated and controlled by separate Boards and Commissions, duplicate expenses necessarily arise, and great confusion necessarily results from the same, and the General Assembly finds it to the best interest of the people of the State of Arkansas to immediately consolidate said enterprises, boards, and commissions, an emergency is hereby declared and this act shall be in full force and effect from and after its passage and approval.”

14-199-401. Joint management authorized.

All cities of the first class whose population exceeds seven thousand (7,000) according to the official federal census now owning both a light plant and a water plant which are operated by separate boards or commissions, the light plants having been constructed pursuant to Arkansas Constitution, Amendment 13 [repealed], and the water plants having been constructed by an improvement district embracing the city as a whole, are authorized and empowered to adopt a municipal ordinance providing for the consolidation of the boards or commissions, and for the joint management of the water and light plants by the consolidated boards or commissions.

History. Acts 1947, No. 106, § 1; A.S.A. 1947, § 19-3911.

A.C.R.C. Notes. It is questionable whether Ark. Const. Amend. 13 is repealed in whole or whether only those provisions that conflict with Ark. Const. Amend. 62 are repealed by Ark. Const. Amend. 62.

14-199-402. Ordinance abolishing old boards — Light and water commission created.

  1. Cities of the first class, in order to comply with the provisions of this subchapter, are authorized and empowered to adopt and approve an ordinance providing that:
    1. Each board or commission referred to in § 14-199-401 shall be immediately abolished;
    2. A new board, known as the “light and water commission,” shall be created and established to be composed of not more than nine (9) members, with at least one (1) member from each ward, whose qualifications and tenures of office are set forth in subsection (b).
    1. The city council shall, immediately after the passage of the ordinance, select four (4) members; two (2) members from the light board or commission and two (2) members from the water board or commission abolished by this ordinance to serve as commissioners of the light and water commission.
      1. Members appointed shall serve until the third city general election following their appointment and thereafter shall be elected for two (2) year terms by the qualified voters of the municipality.
      2. The remaining members of the commission shall be appointed to serve until the second general election after the passage of this ordinance and thereafter shall be elected each two (2) years by the qualified voters of the municipality at the city general election.
  2. The commission shall have authority to designate its chairman and prescribe rules and regulations for the operation of the commission.

History. Acts 1947, No. 106, § 2; A.S.A. 1947, § 19-3912.

14-199-403. Compensation of commissioners.

The city council of any city adopting an ordinance in conformity with this subchapter is authorized to allow a per diem expense for each member at each meeting of the light and water commission herein provided. The per diem expense shall not exceed ten dollars ($10.00), and neither shall it exceed twenty dollars ($20.00) in any calendar month.

History. Acts 1947, No. 106, § 3; A.S.A. 1947, § 19-3913.

14-199-404. Report and audit of operation.

The city council of any city adopting the ordinance provided for in this subchapter shall require the consolidated governing body designated as the light and water commission to make a complete and competent audit by an auditor approved by the city council each biennium, from and after the effective date of the ordinance. The city council shall require the light and water commission to file with the city council a complete report and audit of the operation of both the light plant and water plant. This audit shall be publicized in a legal newspaper having a general circulation in the county wherein the city is located.

History. Acts 1947, No. 106, § 4; A.S.A. 1947, § 19-3914.

Subchapter 5 — Electric Distribution System Management

14-199-501. Authority to create commission.

All cities of the first class in excess of population of fifty thousand (50,000), according to the last official federal census and having the mayor-council form of government on the date of passage of this subchapter, now owning an electric distribution system are authorized and empowered to adopt a municipal ordinance providing for the creation of a commission for the management of the electric distribution system.

History. Acts 1977, No. 740, § 1; A.S.A. 1947, § 19-3934.

Publisher's Notes. Concerning “the date of passage of this subchapter,” Acts 1977, No. 740 was signed by the Governor and took effect on March 24, 1977.

Case Notes

Cited: City of N. Little Rock v. Gorman, 264 Ark. 150, 568 S.W.2d 481 (1978).

14-199-502. General powers of commission.

  1. The commission created pursuant to this subchapter shall have full power to operate and control the utilities system entrusted to its direction by the city ordinance creating the commission.
  2. Subject to such restrictions as may be prescribed in the ordinance creating the commission pertaining to the expenditure of surplus utility revenues, establishment of rates for service, and appointment of commission members, the commission shall have plenary powers with reference to the selection, supervision, and payment of compensation for all employees required in connection with the operation of the electrical distribution system, with reference to management, improvement, extension, and maintenance of the electrical distribution system, with reference to the purchase of such materials and supplies, or machinery as are necessary and proper, and with reference to necessary indebtedness to finance the extension, betterment, or improvement of the electrical distribution system.

History. Acts 1977, No. 740, § 2; A.S.A. 1947, § 19-3935.

14-199-503. Fiscal powers of commission.

    1. Subject to restrictions set forth in the ordinance creating the commission, it shall have power to borrow money and issue negotiable evidences of debt in the form of serial bonds or short-term notes. It may execute such negotiable notes or bonds to obtain the funds needed to carry out its functions.
    2. The commission may also pledge its revenues including the income from operations, and it may mortgage its property to secure the payment of money borrowed.
  1. The rate of interest to be paid and the time of maturity of all obligations shall be such as, in the judgment of the commission, will be most advantageous to the commission and its patrons. However, no obligation shall be made to run for more than twenty (20) years and no obligation running longer than one (1) year shall bear interest at more than the maximum rate allowable for income from the obligations to qualify for tax-exempt status under the laws of the United States of America and the State of Arkansas.

History. Acts 1977, No. 740, § 3; A.S.A. 1947, § 19-3936.

14-199-504. Quarterly report.

The commission shall report to the city council on each calendar quarter of the year on the state of the operations of the commission and its financial affairs.

History. Acts 1977, No. 740, § 4; A.S.A. 1947, § 19-3937.

14-199-505. Outstanding bond indebtedness — Cross-pledging.

  1. If any city of the first class subject to this subchapter shall have outstanding, on the date of enactment of this subchapter, any revenue bonds issued under the authority of § 14-199-101, or the general laws of the state wherein electric utility revenues or surplus electric utility revenues are pledged, then, in that event, the ordinance authorizing the creation of the commission envisioned within this subchapter shall specifically provide all of the terms and provisions of ordinances and laws authorizing such bonded indebtedness shall be fully complied with. The ordinance creating the commission provided for in this subchapter shall make specific provisions limiting the authority of the commission so as not to cause a default under any existing bond issue. If the city council deems it appropriate, the authorizing ordinance shall provide for separate accountings and audits as is required by such bond issues.
  2. Nothing contained in this section shall either prohibit or authorize the cross-pledging of sewer, electric, and water revenues as may be now allowed by law or § 14-199-101.

History. Acts 1977, No. 740, § 5; A.S.A. 1947, § 19-3938.

Publisher's Notes. Concerning “the date of enactment of this subchapter,” Acts 1977, No. 740 was signed by the Governor and took effect on March 24, 1977.

Subchapter 6 — Television Signal Distribution Systems

14-199-601. Authority of municipalities generally — Immunity.

  1. Any first-class city, second-class, and incorporated town may own, construct, acquire, purchase, maintain, and operate a television signal distribution system for the purpose of receiving, transmitting, and distributing television impulses and television energy, including audio signals and transient visual images, to the inhabitants of the city or town and to the inhabitants of an area not to exceed two (2) miles outside the boundaries of the city or town.
  2. In no case shall a city or town be held liable for damages for failure to furnish or provide the service.

History. Acts 1987, No. 328, § 1.

Case Notes

Delegation of Authority.

A franchise agreement entered into by a city and its light and water commission did not involve unlawful delegation of legislative powers. Paragould Cablevision, Inc. v. City of Paragould, 305 Ark. 476, 809 S.W.2d 688 (1991).

Immunity.

The city and the light and water commission, which had been authorized to enter the cable television business, had state action immunity with respect to their actions in development of the business. Paragould Cablevision, Inc. v. Paragould, 930 F.2d 1310 (8th Cir. Ark. 1991).

Monopolies.

The clear delegation of control to cities over their television systems as expressed in this subchapter makes the finding of immunity against Sherman Act claims for the city and its cable franchise relatively straightforward. Paragould Cablevision, Inc. v. City of Paragould, 739 F. Supp. 1314 (E.D. Ark. 1990), aff'd, 930 F.2d 1310 (8th Cir. Ark. 1991).

State Policy.

A sufficient state policy to displace competition existed where the challenged anticompetitive restraint was a necessary and reasonable consequence of the city's statutorily authorized entry into the cable television business. Paragould Cablevision, Inc. v. Paragould, 930 F.2d 1310 (8th Cir. Ark. 1991).

14-199-602. Appliances, fixtures, and equipment authorized.

The city or town may erect, construct, operate, repair, and maintain in, upon, along, over, across, through, and under its streets, alleys, highways, and public grounds, poles, cross-arms, cables, wires, guy-wires, stubs, anchors, towers, antennas, pipes, connections, and other appliances, fixtures, and equipment necessary, expedient, or useful in connection with a television signal distribution system.

History. Acts 1987, No. 328, § 1.

Case Notes

Monopolies.

The clear delegation of control to cities over their television systems as expressed in this subchapter makes the finding of immunity against Sherman Act claims for the city and its cable franchise relatively straightforward. Paragould Cablevision, Inc. v. City of Paragould, 739 F. Supp. 1314 (E.D. Ark. 1990), aff'd, 930 F.2d 1310 (8th Cir. Ark. 1991).

Subchapter 7 — Municipal Utility Systems

14-199-701. Authority to lease or contract with nonprofit corporation.

  1. Any city of the first class, city of the second class, and incorporated town owning a waterworks system, sewer system, gas system, electric system, television signal distribution system, other municipal utility system, or any combination thereof, may lease such system or systems to any nonprofit corporation organized under the laws of the State of Arkansas, or may contract with any such nonprofit corporation, for the purpose of the management and operation of such system or systems for such period of time and upon such terms and conditions as may be deemed to be in the best interests of the city or town.
  2. The nonprofit corporation shall manage and operate the utility system or systems solely on behalf of the city or town and shall be deemed an instrumentality thereof for such purpose.
  3. No such lease or contract shall contain an option to purchase or otherwise transfer ownership to such utility system or systems, nor shall any such lease or contract have a term which is more than eighty percent (80%) of the reasonably expected economic life of the utility system or systems.
  4. The directors of the nonprofit corporation shall be nominated by its members, and the members and directors shall be approved by the council, board of directors, or other like body in which the legislative functions of a municipality are vested and shall be residents of the city or town.
  5. The provisions of subsections (b) and (d) of this section shall not apply to nonprofit corporations formed under the provisions of § 23-18-301 et seq., and nothing in this subchapter shall act to prevent or prohibit a city or town from entering into a lease or contract with such a nonprofit corporation for the purposes set out in subsection (a) of this section.

History. Acts 1995, No. 764, § 2.

14-199-702. Subchapter supplemental.

It is the specific intent of this subchapter that the provisions of this subchapter are supplemental to other constitutional or statutory provisions which may provide for the leasing of or contracting for the management and operation of municipal utility systems.

History. Acts 1995, No. 764, § 2.

Chapter 200 Municipal Authority over Utilities

Effective Dates. Acts 1919 (1st Ex. Sess.), No. 264, § 3: approved Mar. 13, 1919. Emergency clause provided: “This Act, being necessary for the immediate preservation of the public peace, health and safety, shall take effect and be in force from and after its passage.”

Acts 1921, No. 124, § 27: approved Feb. 15, 1921. Emergency declared.

Acts 1935, No. 324, § 71: approved Apr. 2, 1935. Emergency clause provided: “It is found that the statutes of this state for the regulation of public utilities are insufficient, inadequate, and do not afford to the public, or the public utilities, of the state, speedy and adequate relief from excessive or insufficient rates, and that many of the rates of public utilities operating in this state are not what they should be, thereby entailing a grave injustice on the public or the utilities; and that this act is necessary for the preservation of the public peace, health, and safety; an emergency is therefore declared and this act shall take effect and be in force from and after its passage.”

Acts 1983, No. 796, § 5: Mar. 24, 1983. Emergency clause provided: “It has been found by the General Assembly that there is a lack of clarity and in some instances a lack of agreement regarding the ability of Arkansas municipalities and improvement districts to finance electric system facilities without the approval of the Arkansas Public Service Commission and that this lack of clarity places a substantial burden on the financing of such facilities and may result in costly delays. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in force upon its passage and approval.”

Acts 1985, No. 357, § 5: Mar. 15, 1985. Emergency clause provided: “It is hereby found and determined by the General Assembly that an adequate, reliable and economical supply of electric power and energy for those rural areas contiguous to Arkansas municipalities is essential to the continued health, welfare, economic growth and development of the people of Arkansas and that this Act is immediately necessary to assure the availability of such power and to thereby assure the protection and preservation of the health, safety and welfare of the people. Therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1989, No. 423, § 2: Jan. 1, 1990.

Identical Acts 1994 (1st Ex. Sess.), Nos. 6 and 7, § 10: Mar. 4, 1994. Emergency clause provided: “It is hereby found and determined by the Seventy-Ninth General Assembly that the decision of the Arkansas Court of Appeals in AT&T Communications of the Southwest, Inc. v. City of Little Rock has created uncertainty and confusion concerning the ability of municipalities to assess franchise fees as a term or condition for the use of public rights-of-way; that the immediate implementation of this Act is necessary to eliminate this uncertainty and confusion and to reconfirm the authority of municipalities to levy franchise fees. Therefore, an emergency is hereby declared to exist and this Act, being immediately necessary for the preservation of the public peace, health, and safety, shall be in full force and effect from and after its passage and approval.”

Acts 2009, No. 1480, § 117: Apr. 10, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act makes various revisions to Arkansas election laws that are designed to improve the administration of elections and special elections and that these revisions should be implemented as soon as possible so that the citizens of this state may benefit from improved election procedures. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Research References

Am. Jur. 56 Am. Jur. 2d, Mun. Corp., § 560 et seq.

Ark. L. Rev.

The Growth of Utility Regulation in Arkansas: A Functional Survey, 21 Ark. L. Rev. 539.

C.J.S. 62 C.J.S., Mun. Corp., § 292.

63 C.J.S., Mun. Corp., §§ 1050-1052.

Case Notes

Construction.

Under the first four sections of this chapter, a municipality may by ordinance assess and determine a rate/fee for service rendered by any public utility occupying streets (rights-of-way) within the municipality, and such an ordinance is deemed prima facie reasonable; in common parlance, such franchise fees are, in form, rental payments for a public utility's use of the municipality's right-of-way. City of Little Rock v. AT&T Communications, 318 Ark. 616, 888 S.W.2d 290 (1994).

Sewer Rates.

Acts 1935, No. 324, § 14-235-201 et seq., and this chapter gave municipalities different cumulative procedures for acquiring a sewage system. However, only § 14-235-201 et seq. gives a city the specific authority to set sewer rates, and only § 14-235-201 et seq. provides a procedure for changing those rates. City of Ft. Smith v. O.K. Foods, Inc., 293 Ark. 379, 738 S.W.2d 96 (1987).

Telephone Service.

City ordinance that required telephone company to pay certain fees for the privilege of using the city's public streets, and also levied a $.004 per minute charge on all long distance telephone calls that were billed to a city service address, was a franchise and fee ordinance and authorized by law. City of Little Rock v. AT&T Communications, 318 Ark. 616, 888 S.W.2d 290 (1994).

14-200-101. Jurisdiction over utilities — Appeal — Definition.

  1. As used in this section, “public utility” means any electric, gas, sewer, water, or telephone company or utility, and any company or utility providing similar services, except a company excluded from the definition of “public utility” under § 23-1-101(9)(B)(ii), a consolidated utility district under the General Consolidated Public Utility System Improvement District Law, § 14-217-101 et seq., and a water or light commission under § 14-201-101 et seq.
    1. Acting by ordinance or resolution of its council, board of directors, or commission, every city and town shall have jurisdiction to:
        1. Except as provided in § 23-4-201, determine the terms and conditions upon which the public utility may be permitted to occupy the streets, highways, or other public places within the municipality, including without limitation:
          1. The rates, quality, and character of each kind of product or service to be furnished or rendered by a public utility; and
          2. A reasonable franchise fee.
        2. The ordinance or resolution shall be deemed prima facie reasonable.
        3. A franchise fee for a public utility, including a telephone company providing services other than basic local exchange service, shall not exceed the higher of the amount in effect on January 1, 1997, or four and twenty-five-hundredths percent (4.25%) of revenue collected by the public utility from its customers in the city or town for rates and fees charged by the public utility, unless agreed to by the affected utility or approved by the voters of the municipality;
      1. Require a telephone company providing basic local exchange service to pay a reasonable franchise fee not to exceed the higher of the amount of the telephone company's franchise fee on January 1, 1997, or a fee equal to four and one-quarter percent (4.25%) of the revenues received by the telephone company from providing basic local exchange services, unless:
        1. A higher rate or franchise fee is approved by the voters of the municipality; or
        2. The telephone company agrees to pay a higher percentage on services offered in addition to basic local exchange services;
      2. Require of any public utility such additions and extensions to its physical plant within the municipality as shall be reasonable and necessary in the interest of the public and to designate the location and nature of all such additions and extensions, the time within which they must be completed, and all conditions under which they must be constructed; and
      3. Provide a penalty for noncompliance with the provisions of any ordinance or resolution adopted pursuant to the provisions of this chapter.
    2. Nothing in this section shall limit the authority of the public utility to collect from its customers residing in each municipality an amount that equals the franchise fee assessed by the municipality on the public utility.
    3. If franchise fees assessed for basic local exchange services are based on revenues, the revenues shall consist of revenues from basic local service, excluding, among other things, extension, terminal equipment, toll, access, yellow pages, and other miscellaneous equipment revenues.
      1. No cause of action that challenges the right of a municipality to assess a franchise fee against a public utility for permission to occupy the streets, highways, or other public places within the municipality shall result in the award of money damages.
      2. However, consistent with the provisions of Arkansas Constitution, Article 16, § 13, any cause of action for illegal exaction found to be meritorious may result in the granting of injunctive relief.
    1. Any public utility affected by any such ordinance or resolution or any other party authorized to complain to the Arkansas Public Service Commission under § 23-3-119 may appeal the action of the council or commission by filing within twenty (20) days of receipt of notice of the ordinance or resolution by the utility's registered agent for service of process of the final action a written complaint with the commission setting out how the ordinance or resolution is unjust, unreasonable, or unlawful, whereupon the commission shall proceed with an investigation, hearing, or determination of the matters complained of, with the same procedure that it would dispose of any other complaint made to it, and with like effect.
    2. Such appeal shall not suspend the enforcement of any provisions of the ordinance or resolution unless the commission, after a hearing and upon notice and for good cause shown, orders the suspension conditioned upon the filing of a bond with the commission as provided for in § 23-4-408.
    3. Nothing in this section shall be construed to in any way limit or restrict the jurisdiction or the powers of the commission as in other sections granted.
    4. In the event the municipal boundaries of a city or town are altered or amended by annexation or otherwise, the city or town shall notify the utility's registered agent for service of process of the alteration or amendment, and the utility shall not be liable for any additional franchise fees for the right to furnish utility service or occupy the streets, highways, or public places in newly added or annexed areas unless the notice shall have been given.
  2. In all matters of which by this act the commission and cities and towns are each given original jurisdiction, such jurisdiction shall be concurrent. Cities and towns shall take no action with respect to any matter under investigation by the commission until the matter has finally been disposed of by the commission. The commission shall take no action with respect to any matter which is the subject of an ordinance or resolution pending before the council or commission of any city or town until the matter has finally been disposed of.
  3. Nothing in this act shall deprive or be construed as depriving any municipality of the benefits or rights accrued or accruing to it under any franchise or contract to which it may be a party, and neither the commission nor any court exercising jurisdiction under this act shall deprive the municipality of any such benefit or right.
    1. No city or town may impose additional franchise fees upon any provider of regulated broadband services under the Broadband Over Power Lines Enabling Act, § 23-18-801 et seq.
    2. A city or town may impose franchise fees upon any provider of nonregulated broadband services under the Broadband Over Power Lines Enabling Act, § 23-18-801 et seq., at the same rates that the city or town charges other providers of broadband network services.

History. Acts 1935, No. 324, § 15; Pope's Dig., § 2078; A.S.A. 1947, § 73-208; Acts 1993, No. 403, § 7; 1994 (1st Ex. Sess.), No. 6, §§ 3, 6; 1994 (1st Ex. Sess.), No. 7, §§ 3, 6; 1997, No. 182, § 1; 1999, No. 576, § 1; 2007, No. 477, § 1; 2007, No. 739, § 2; 2009, No. 163, § 4; 2019, No. 241, §§ 1, 2.

A.C.R.C. Notes. A comma following “1997” could not be inserted in subdivision (a)(1)(A) pursuant to § 1-2-303.

Publisher's Notes. Identical Acts 1994 (1st Ex. Sess.) Nos. 6 and 7, § 1, provided:

“LEGISLATIVE FINDINGS.

(a) In the State of Arkansas, municipalities are granted jurisdiction and authority over the use and control of the public rights-of-way within the corporate limits of the municipality, to the extent that such jurisdiction does not conflict with state or federal statutes or regulations.

“(b) This historic authority has included the right to assess franchise fees for the privilege of the use of such rights-of-way and of providing utility service to the public.

“(c) On numerous occasions, the courts of the State of Arkansas have referred to this right to assess franchise fees against public utilities. For example, in Hot Springs Electric Light Co. v. Hot Springs, 70 Ark. 300 (1902), the Arkansas Supreme Court expressly stated that cities may assess a franchise fee as a condition for the use of public rights-of-way.”

Identical Acts 1994 (1st Ex. Sess.) Nos. 6 and 7, § 2, provided:

“STATEMENT OF POLICY. It is, and historically has been, the policy of the State of Arkansas to permit municipalities, as one means of raising revenues, to assess municipal franchise fees against public utilities for the privilege of providing utility services to the public and of using public rights-of-way, including streets, highways, or other public places of any kind whatsoever within municipal boundaries and such franchise fees have not been considered to be within the scope of A.C.A. § 26-73-103 so as to require a vote of the electorate.

“It is also the policy of the State that nothing in this Act shall amend or adversely impact the terms and provisions of an existing franchise agreement between a municipality and a public utility entered into pursuant to A.C.A. § 14-54-704, A.C.A.§ 14-200-101, or any other enabling legislation relating to franchise fees in effect at the time of the agreement.”

Amendments. The 1993 amendment, in (a)(1), added “Except as provided in § 23-4-201” at the beginning, and inserted “and rates for,” after “each kind of.”

The 1994 (1st Ex. Sess.) amendment by identical acts Nos. 6 and 7 redesignated former (a)(1)-(a)(3) as (a)(1)(A)-(a)(1)(C), respectively; inserted “board of directors” in the introductory language of (a); in (a)(1)(A), inserted “including a reasonable franchise fee” and added the proviso; and added (a)(1)(D), (a)(1)(E), and present (a)(2).

The 1997 amendment rewrote (a)(1)(A).

The 2009 amendment substituted “4.25%” for “4¼%” in (b)(1)(A)(iii) and (b)(1)(B).

The 2019 amendment, in (a), inserted “or utility” twice, and inserted “water” following “sewer”; and in (b)(1)(A)(iii), inserted “public”, substituted “twenty-five hundredths percent” for “one-quarter percent”, and inserted “of revenue collected by the public utility from its customers in the city or town for rates and fees charged by the public utility”.

Meaning of “this act”. Acts 1935, No. 324, codified as §§ 14-200-101, 14-200-10314-200-108, 14-200-111, 23-1-101, 23-1-102, 23-1-104, 23-1-112, 23-2-301, 23-2-30323-2-308, 23-2-310, 23-2-312, 23-2-31423-2-316, 23-2-402, 23-2-405, 23-2-408, 23-2-41023-2-412, 23-2-41423-2-418, 23-2-421, 23-2-426, 23-2-428, 23-2-429, 23-3-11223-3-115, 23-3-118, 23-3-119, 23-3-20123-3-206, 23-4-102, 23-4-103, 23-4-10523-4-109, 23-4-40223-4-405, 23-4-62023-4-634, and 23-18-101.

Cross References. Rate-making authority, § 23-4-201.

Research References

U. Ark. Little Rock L.J.

Halbert, Municipal Law—Utility Franchise Fees—True Nature of Levy Immaterial When City Possesses Statutory Authority. City of Little Rock v. AT&T Communications, Inc., 318 Ark. 616, 888 S.W.2d 290 (1994), 18 U. Ark. Little Rock L.J. 259.

Case Notes

In General.

The Railroad (now Public Service) Commission had no authority to grant a certificate of convenience and necessity to a company distributing electricity in a city under franchise from it. De Queen Light & Power Co. v. Curtis, 157 Ark. 238, 248 S.W. 5 (1923) (decision under prior law).

Order of Department of Public Utilities (now Public Service Commission) setting aside rule made by city ordinance regulating character of service to be furnished by telephone companies to users of its service and restoring company's rule pertaining to such service was not judicial but legislative and within the power of the department (now commission) to make it. City of Fort Smith v. Dep't of Pub. Utils., 195 Ark. 513, 113 S.W.2d 100 (1938).

Applicability.

Subdivision (a)(1) of this section empowers Arkansas municipalities to assess utility franchises operating within the municipalities, and telephone companies are not excluded. City of Little Rock v. AT&T Communications, 318 Ark. 616, 888 S.W.2d 290 (1994).

Appeals.

Whether a proceeding to review an order of a city commission was treated as an appeal or an independent proceeding to declare the statute void, the hearing before the circuit court was de novo, and the same facts were considered and like principles were applicable in either case in determining the rights of a street railway company to discontinue service on a portion of its line. Fort Smith Light & Traction Co. v. Bourland, 160 Ark. 1, 254 S.W. 481 (1923), aff'd, 267 U.S. 330, 45 S. Ct. 249 (1925) (decision under prior law).

A city ordinance requiring public utilities operating within the city to maintain business offices there and containing an emergency clause became final so as to permit a utility to appeal to the commission under subsection (b) immediately, and the utility was not required by subsection (c) to wait until the 30 days for filing a referendum petition under Ark. Const., Art. 7 had expired. City of DeWitt v. Public Serv. Comm'n, 248 Ark. 285, 451 S.W.2d 188 (1970).

Ordinance.

—Not Upheld.

An ordinance of the City of Little Rock that required a utility to pay a certain fee for the privilege of using the public streets was not valid: (1) because the city lacked the authority to enact the ordinance, since this section does not provide such authority and since § 23-17-101 bars such action by the city; and (2) because the levy of the ordinance is an unauthorized tax that has not been approved by the vote of the people as required by § 26-73-103. AT & T Communications v. City of Little Rock, 44 Ark. App. 30, 866 S.W.2d 414 (1993), rev'd, 318 Ark. 616, 888 S.W.2d 290 (1994).

—Presumption of Validity.

Under subdivision (a)(1) of this section, a city ordinance using time-unit methodology in establishing a franchise fee was by law presumptively reasonable. City of Little Rock v. AT&T Communications, 318 Ark. 616, 888 S.W.2d 290 (1994).

—Upheld.

City ordinance that required telephone company to pay certain fees for the privilege of using the city's public streets, and also levied a $.004 per minute charge on all long distance telephone calls that are billed to a city service address, was a franchise and fee ordinance and authorized by law. City of Little Rock v. AT&T Communications, 318 Ark. 616, 888 S.W.2d 290 (1994).

Police Power.

This section gives a city the right to impose valid police power regulations; however, it remains for the appellate court to determine whether the levy imposed by the city is a lawful exercise of that police power. AT & T Communications v. City of Little Rock, 44 Ark. App. 30, 866 S.W.2d 414 (1993), rev'd, 318 Ark. 616, 888 S.W.2d 290 (1994).

Rate-Making.

Since courts of equity lack concurrent jurisdiction with the Public Service Commission in setting utility rates, rates approved by the commission may be put into effect immediately without posting a bond, and notwithstanding any provision of a municipal franchise such a utility may have been granted. General Tel. Co. v. Lowe, 263 Ark. 727, 569 S.W.2d 71 (1978).

While this section grants municipalities the right to establish terms and conditions upon which public utilities may be permitted to operate within the borders of municipalities, § 23-4-201 clearly divests the cities and towns from having any jurisdiction to fix or determine rates and grants exclusive jurisdiction to the Public Service Commission in rate-making matters. City of Ft. Smith v. Arkansas Pub. Serv. Comm'n, 278 Ark. 521, 648 S.W.2d 40 (1983).

Terms and Conditions.

Cities of second class may require water company to furnish meters at its expense. Wilson Water & Elec. Co. v. City of Arkadelphia, 95 Ark. 605, 129 S.W. 1091 (1910) (decision under prior law).

Every city or town has the authority to determine the terms and conditions under which a public utility can occupy the streets and public places within the municipality. Arkansas-Missouri Power Corp. v. City of Rector, 164 F.2d 938 (8th Cir. 1947); Southwestern Bell Tel. Co. v. City of Fayetteville, 271 Ark. 630, 609 S.W.2d 914 (1980).

14-200-102. Violation of municipal franchise — Penalty — Damages.

  1. Whenever a person, company, or corporation which has secured a franchise from any municipality in this state to furnish power, water, gas, or electricity to the municipality and to consumers thereof fails or refuses to keep, erect, or use due diligence to maintain reasonably adequate facilities or instrumentalities to enable it to carry out its contractual obligations with the municipality and the consumers therein, and negligently or willfully fails or refuses to furnish an adequate supply of the utility it has contracted and agreed to furnish and provide, then, and in every such case, the person, company, or corporation so failing or refusing shall be subject to a penalty of not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000) for each day such negligent or willful failure or refusal continues to exist. Each day shall constitute a separate offense.
  2. This penalty shall be recovered by the city attorney of any municipality in a suit instituted by him, or by the prosecuting attorney filing information in behalf of the state, for the use and benefit of the municipality affected, in a court of competent jurisdiction, from any utility because of the negligent or willful failure or refusal of the person, company, or corporation to furnish an adequate supply of the utility as provided by its contract.
  3. Any person or consumer of the utility having a contract with any such utility for service, upon the failure or refusal of the utility, shall have the right to institute a suit in his own behalf in a court of competent jurisdiction. He shall recover compensatory damages for any failure or refusal in whatsoever amount the proof may show he has been damaged.
  4. This section shall not apply to cities or towns with a population of less than three thousand (3,000) that have granted franchises for electric current for lighting and other purposes that is furnished by a manufacturing establishment not solely engaged in the manufacture of electric current for lighting and other purposes.

History. Acts 1919, No. 264, § 1; C. & M. Dig., § 7549; Pope's Dig., § 9623; A.S.A. 1947, § 73-213.

14-200-103. Duration of permits granted by municipalities.

  1. All permits, licenses, or franchises granted by any municipality to any public utility authorizing it to occupy the streets, highways, alleys, and other public ways in the municipality, for the purpose of constructing and maintaining any facilities for the supplying of any public service or commodity, shall be unlimited as to time.
  2. The utility or its successors and assigns shall hold the permit, license, or franchise in accordance with the terms, conditions, and limitations of this act and any future regulatory acts.
  3. The permit, license, or franchise shall continue in force until such time as a municipality having authority to do so shall purchase the property operating under such permit, license, or franchise in accordance with the provisions of this act, or until terminated according to the law for misuser or nonuser.

History. Acts 1935, No. 324, § 44; Pope's Dig., § 2107; A.S.A. 1947, § 73-243.

Meaning of “this act”. See note to § 14-200-101.

14-200-104. Continuation of existing franchises and permits.

Any permit, license, or franchise heretofore granted to a public utility by the state or a municipality to occupy the streets, highways, alleys, or other public ways of any municipality for the purpose of carrying on any of the public services defined in this act, is amended in such manner that the permit, license, or franchise shall continue in force until such time as the municipality having authority to do so shall purchase the property operated under the permit or franchise in accordance with the terms and provisions of this act or until terminated according to law for misuser or nonuser.

History. Acts 1935, No. 324, § 40; Pope's Dig., § 2103; A.S.A. 1947, § 73-239.

Publisher's Notes. Acts 1901, No. 212, § 1, legalized all franchises theretofore issued to any person or corporation by the municipal authorities of any city or incorporated town authorizing the construction of electric light systems so that they would have the same force and effect as if the statutes then in force authorizing granting franchises for lighting purposes mentioned electricity.

Acts 1921, No. 124, § 15, set out the procedure by which all persons, firms, companies, or corporations which had surrendered contracts, franchises, or leases and were then operating under indeterminate permits granted by the Arkansas Corporation Commission (now the Arkansas Public Service Commission) could within ninety (90) days of the passage of the act, have their franchise, contract, or lease reinstated by the municipal council or city commission having jurisdiction under the same conditions that existed at the time the indeterminate permit was granted by the Arkansas Corporation Commission (now the Arkansas Public Service Commission). Failure to make application to so reinstate the franchise, contract, or lease would be deemed to be a waiver by the person, firm, etc. operating any public service utility to insist upon the fulfillment of the franchise, contract, or lease in a court of law or equity. Additionally, all persons, firms, etc. electing not to reinstate their franchise, contract, or lease under the terms of the section and all such persons, firms, etc. holding or entitled to operate under any other indeterminate permit issued theretofore by the Arkansas Corporation Commission (now the Arkansas Public Service Commission) would be permitted to operate under the terms and conditions specified in that permit, but would be subject to regulation in the same manner, to the same extent, and with like force and effect as other and similar facilities.

Meaning of “this act”. See note to § 14-200-101.

Cross References. Franchise invalid when made pending annexation to municipality, § 14-40-1213.

Case Notes

Failure to Reinstate Franchise.

Where gas company subjected itself to control of corporation commission and was granted an indeterminate permit releasing it from its franchise and, after enactment of Acts 1921, No. 124, failed to apply for reinstatement of its franchise, it lost its power to enforce the rates in such franchise. Arkansas Natural Gas Co. v. Norton Co., 165 Ark. 172, 263 S.W. 775 (1924) (decision under prior law).

14-200-105. Acceptance of permit as consent to future sale.

  1. Any public utility accepting or operating under any permit, license, or franchise shall by acceptance of any permit, license, or franchise be deemed to have consented to a future purchase of its property actually used and useful for the convenience of the public by the municipality in which it is situated, upon notice of not less than ninety (90) days from the municipality of its intention to make the purchase for the just compensation and the damages, including severance damages, if any, and under the terms and conditions of purchase and sale determined by the Arkansas Public Service Commission in the manner provided in §§ 14-200-106 — 14-200-108.
  2. The public utility shall thereby be deemed to have waived the right of the necessity of such taking to be established by the verdict of a jury and to have waived all other remedies and rights relative to condemnation except such rights and remedies as are provided in § 14-200-108.

History. Acts 1935, No. 324, § 46; Pope's Dig., § 2109; A.S.A. 1947, § 73-244.

Publisher's Notes. Acts 1987, No. 110, § 10, provided that the provisions of that act repeal those parts of this section to the extent they are applicable to gas or electric utilities, but have no effect on the provisions of this section which enable a municipality to acquire a water or sewer utility. Acts 1987, No. 110 is codified as chapter 206 of title 14.

14-200-106. Municipal power to acquire, construct, or operate public utility plant.

Any municipality shall have the power, subject to the provisions of this act, to acquire by purchase or otherwise or construct and operate a public utility plant and equipment, or any part thereof, for the production, transmission, delivery, or furnishing of any public service.

History. Acts 1935, No. 324, § 47; Pope's Dig., § 2110; A.S.A. 1947, § 73-245.

Publisher's Notes. As to effect of Acts 1987, No. 110, see Publisher's Notes, § 14-200-105.

Meaning of “this act”. See note to § 14-200-101.

Case Notes

Sewer Rates.

City did not have alternative authority to change its sewer rates under this chapter and ignore the pre-enactment notice and public hearing requirements of § 14-235-223. City of Ft. Smith v. O.K. Foods, Inc., 293 Ark. 379, 738 S.W.2d 96 (1987).

Cited: Cosgrove v. City of W. Memphis, 327 Ark. 324, 938 S.W.2d 827 (1997).

14-200-107. Election to authorize purchase by municipality.

Any municipality may determine to acquire the property of a public utility as authorized under the provisions of this act by the vote of the municipal council or city commission, taken after a public hearing, of which at least thirty (30) days' notice has been given, and ratified and confirmed by a majority of the electors voting thereon at any general or special municipal election held in accordance with § 7-11-201 et seq.

History. Acts 1935, No. 324, § 48; Pope's Dig., § 2111; A.S.A. 1947, § 73-246; Acts 2005, No. 2145, § 49; 2007, No. 1049, § 70; 2009, No. 1480, § 89.

Publisher's Notes. As to effect of Acts 1987, No. 110, see Publisher's Notes, § 14-200-105.

Amendments. The 2005 amendment added the subsection (a) designation; and added (b).

The 2009 amendment substituted “§ 7-11-201 et seq.” for “§ 7-5-103(b).”

Meaning of “this act”. See note to § 14-200-101.

14-200-108. Compensation and damages for purchase.

  1. Whenever the Arkansas Public Service Commission has been notified by either party that a municipality has, pursuant to law, decided to purchase a plant property or facilities of a public utility and that the parties to the purchase and sale have been unable to agree on just compensation to be paid and to be received, or any other terms and conditions of the sale, the commission shall thereupon proceed to set a time and place for a public hearing after thirty (30) days' notice to the utility and municipality upon the matters of the just compensation to be paid for the taking of the property of the public utility actually used and useful for the convenience of the public, and damages, if any, caused by the severance of the property purchased or to be purchased by the municipality, and of all other terms and conditions of the purchase and sale.
    1. Within a reasonable time after the time fixed for the hearings and notice, the commission shall by order fix, determine, and certify to the municipal council, to the public utility, and to any bondholders, mortgagees, and lienors of the utility appearing upon the hearing, the just compensation, and damages, if any, to be paid for the taking and severance of the property of the public utility used and useful for the convenience of the public, and all other terms and all conditions of sale and purchase which it shall ascertain to be reasonable, which terms and conditions shall constitute a compensation and damages, and terms and conditions, to be paid.
    2. Upon the filing of the order by the commission with the clerk of the municipality, the municipality shall thereupon be obligated to make the payments and otherwise comply with the terms and conditions of the order in order to consummate the purchase.
  2. Upon the consummation of the purchase, the public utility shall execute an instrument conveying the property purchased and so paid for.

History. Acts 1935, No. 324, § 49; A.S.A. 1947, § 73-247.

Publisher's Notes. As to effect of Acts 1987, No. 110, see Publisher's Notes, § 14-200-105.

Case Notes

Cited: Helena v. Ark. Utils. Co., 208 Ark. 442, 186 S.W.2d 783 (1945); Benton County Water Co. v. Cummings, 242 Ark. 67, 411 S.W.2d 890 (1967).

14-200-109. Municipal power to finance electric facilities system.

  1. Any municipality, board, commission, or other authority duly established by any municipality owning and operating any system for the generation, transmission, or distribution of electric power or energy may issue revenue bonds and pledge the revenues derived from the system, whether the revenues are derived from within or beyond the corporate limits of the municipality, as may be permitted or authorized by applicable law, without obtaining the approval of the Arkansas Public Service Commission.
  2. Nothing in this section should be construed to authorize any municipality, board, commission, or authority to issue or sell bonds or use the proceeds thereof to purchase, condemn, or otherwise acquire a utility plant or distribution system or portion thereof owned or operated by a public utility without the consent of the public utility.

History. Acts 1983, No. 796, §§ 1, 2; A.S.A. 1947, § 73-115.1.

Cross References. Municipal electric system financing, § 14-203-101 et seq.

14-200-110. Municipal access to utility records.

The municipal councils or city commissions shall have authority, by order, to require:

  1. From the utility certified copies of all reports, rates, classifications, rules, or other practices in force on the part of the utility at any time;
  2. From the utility for the purpose of examination or investigation all books, records, and other information as to any matter pertaining to its business or organization; and
  3. The utility to furnish from time to time, for consideration, verified itemized and detailed inventory and valuation of any or all of its property as to which the municipal council or city commission should properly have knowledge, in order to enable it to perform its duties under this chapter.

History. Acts 1921, No. 124, § 18; Pope's Dig., § 2017; A.S.A. 1947, § 73-209.

14-200-111. Rural service.

  1. Municipalities owning or operating facilities for supplying a public service or commodity to its citizens may extend its electric service into rural territory contiguous to the municipality upon order of the Arkansas Public Service Commission.
    1. Rates and rules for the rural electric service shall be established from time to time by the city council, board of directors, or local water and light commission governing such municipally owned electric utility and without the approval of the Arkansas Public Service Commission.
    2. However, at no time shall the rates for rural territory so served exceed the rates charged to ratepayers receiving service within the municipality, provided, however, that, where the municipality serves less than three thousand (3,000) customers outside its corporate limits, rates may be ten percent (10%) higher than rates inside its corporate limits if, but only if, such rates for service with the ten percent (10%) surcharge are equal to, or less than, rates for service of electric public utilities adjacent to the municipality's service territory.

History. Acts 1935, No. 324, § 45; Pope's Dig., § 2108; 1985, No. 357, § 2; A.S.A. 1947, § 73-264; Acts 1989, No. 423, § 1.

Publisher's Notes. Acts 1985, No. 357, § 1, provided that the act was intended to remove from regulation by the Arkansas Public Service Commission municipal electric utility systems serving contiguous areas outside the city limits of municipalities.

Case Notes

Constitutionality.

This section did not violate former Ark. Const. Amend. 13 [repealed], which permitted cities of the first and second class to issue bonds for the purpose of purchasing and extending light plants and distributing systems therefor. Ark. Utils. Co. v. City of Paragould, 200 Ark. 1051, 143 S.W.2d 11 (1940).

In General.

The right of a municipality to construct an electric distribution system outside the municipality is dependent upon statute, and, except for this section, a municipality would have no right to construct and operate such a system outside the city limits. Ark. Utils. Co. v. City of Paragould, 200 Ark. 1051, 143 S.W.2d 11 (1940).

Order of Commission.

City cannot, without the approval of the Department of Public Utilities (now Public Service Commission), construct, operate, and maintain an electric distribution system outside the city limits and furnish current for lights and power to customers in a community outside the city already served by a private utility operating under a permit from the department (now commission). Ark. Utils. Co. v. City of Paragould, 200 Ark. 1051, 143 S.W.2d 11 (1940) (decision prior to 1985 amendment).

14-200-112. Exemption from regulation by state commissions.

Municipalities owning or operating any public utilities are exempt from any supervision or regulation by the Arkansas Transportation Commission and the Arkansas Public Service Commission.

History. Acts 1921, No. 124, § 14; Pope's Dig., § 2013; A.S.A. 1947, § 73-265.

Chapter 201 Municipal Boards And Commissions

Cross References. Financing of electric facilities by municipalities and improvement districts, §§ 14-200-109, 14-216-101.

Municipal electric system financing, § 14-203-101 et seq.

Research References

Am. Jur. 64 Am. Jur. 2d, Pub. Util., § 230.

Subchapter 1 — Cities of the First Class Generally

Effective Dates. Acts 1981, No. 425, § 54: Mar. 11, 1981. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 1983, No. 442, § 10: Mar. 13, 1983. Emergency clause provided: “It has been found and it is hereby declared by the General Assembly of the State of Arkansas that it is essential that the authority of a commission created under Act No. 115 of 1957 with regard to the issuance of bonds and notes be clarified and more particularly provided for, and that the availability of the authorities and powers granted by this Act is immediately necessary for the protection and preservation of the health, safety and welfare of the people. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and its passage and approval.”

Acts 1985, No. 889, § 7: Apr. 15, 1985. Emergency clause provided: “It has been found and it is hereby declared by the General Assembly of the State of Arkansas that it is essential that the authority of a city to create a commission, and the powers of such commission, under Act No. 115 of 1957, as amended, be expanded and clarified, and that the availability of the authorities and powers granted by this Act is immediately necessary for the protection and preservation of the health, safety and welfare of the people. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 2009, No. 1480, § 117: Apr. 10, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act makes various revisions to Arkansas election laws that are designed to improve the administration of elections and special elections and that these revisions should be implemented as soon as possible so that the citizens of this state may benefit from improved election procedures. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

14-201-101. Scope of subchapter.

  1. Any water or waterworks commission in this state now operating under §§ 14-234-301 — 14-234-309 shall be excluded from all the provisions of this subchapter.
  2. Any city of the first class operating a municipally owned electric light plant and system and electing the commissioners thereof by popular vote prior to January 1, 1956, under the provisions of subchapter 2 of this chapter shall not be governed by this subchapter but shall continue to operate their municipally owned light plants under that subchapter and other applicable legislation and any ordinance passed pursuant to that subchapter.
  3. Any cities of the first class heretofore operating a municipally owned water system, sewer system, or any other municipally controlled improvement district, which have been consolidated under and controlled by a specially created board of directors under any special act of the General Assembly, and particularly Acts 1923, No. 487, shall be exempt from the operation of this subsection and shall continue to operate under the acts providing for their creation.

History. Acts 1957, No. 115, § 2; A.S.A. 1947, § 19-4062.

Publisher's Notes. Acts 1923, No. 487 referred to in this section was a special act and is not codified.

Case Notes

Cited: Cosgrove v. City of W. Memphis, 327 Ark. 324, 938 S.W.2d 827 (1997).

14-201-102. Construction of subchapter.

    1. Nothing in this subchapter shall be construed to reduce or take away any of the powers or authority of the city council or other governing body, at the request of the commission, to authorize the issuance of bonds or other evidences of indebtedness under other applicable legislation.
    2. Nothing in this subchapter shall be construed to affect bonds previously so issued or other obligations previously so incurred which are ratified and confirmed.
  1. Nothing in this subchapter shall be construed to authorize any municipality or commission to issue revenue bonds or other evidences of debt or to pledge electric property, for the purpose of acquiring or paying the cost of acquisition by purchase, condemnation, or otherwise of any electric light and power plants, system, or other facilities, or any part thereof, owned or operated by another utility without the consent of such utility.

History. Acts 1957, No. 115, §§ 1, 22; 1983, No. 442, §§ 1, 7; A.S.A. 1947, §§ 19-4061, 19-4082.

14-201-103. Applicability of subchapter.

The provisions of this subchapter shall not apply to any commission, agency, or board created otherwise than pursuant to this subchapter by any city of the first class for the purpose of operating and managing the city's waterworks or electric system.

History. Acts 1957, No. 115, § 1; 1983, No. 442, § 1; 1985, No. 889, § 1; A.S.A. 1947, § 19-4061.

14-201-104. Powers of city council.

    1. Any city of the first class owning and operating either a waterworks and distribution system or electrical light plant and system, or both, may by appropriate action by its city council or other governing body create a commission pursuant to this subchapter for the purpose of operating and managing the waterworks and distribution system or electrical light plant and system or both.
    2. The ordinance, resolution, or other action creating a commission shall specifically state that the commission is created pursuant to this subchapter.
  1. The city council or other governing body may enact whatever measures may be found necessary to carry out the purposes of this subchapter.

History. Acts 1957, No. 115, §§ 1, 22; 1983, No. 442, §§ 1, 7; 1985, No. 889, § 1; A.S.A. 1947, §§ 19-4061, 19-4082.

Case Notes

Cited: Cosgrove v. City of W. Memphis, 327 Ark. 324, 938 S.W.2d 827 (1997).

14-201-105. Creation of commission — Members.

    1. Any city of the first class in which it is desired to establish such a utility commission, by a majority vote of the city council, shall enact an ordinance creating a commission to be composed of five (5) citizens who are qualified electors of the county and not less than thirty-five (35) years of age.
    2. The ordinance, resolution, or other action creating a commission shall specifically state that the commission is created pursuant to this subchapter.
  1. The commissioners shall be appointed by the mayor and confirmed by a two-thirds vote of the city council.
  2. A member of the commission shall not be an officer, director, or employee of a private utility company.
    1. There shall be five (5) positions on the commission.
    2. The person appointed to:
      1. Position number one (1) shall serve for a term of one (1) year;
      2. Position number two (2) shall serve for a term of two (2) years;
      3. Position number three (3) shall serve for a term of three (3) years;
      4. Position number four (4) shall serve for a term of four (4) years; and
      5. Position number five (5) shall serve for a term of five (5) years.
    3. Successor members shall be appointed for a term of five (5) years.
  3. All vacancies occurring in the membership of the commission due to death, resignation, or other causes shall be filled by the mayor appointing a person to fill the unexpired term of the membership so vacated, subject to the approval of two-thirds (2/3) of the city council.
  4. Successors to members of the commission whose terms have expired or who fill the unexpired portion of a term shall be appointed by the mayor, subject to the approval of two-thirds (2/3) of the city council.

History. Acts 1957, No. 115, §§ 1, 2, 5; 1961, No. 108, § 1; 1985, No. 889, § 1; A.S.A. 1947, §§ 19-4061, 19-4062, 19-4065; Acts 1989, No. 275, § 1; 2003, No. 1464, § 1; 2015, No. 897, § 1.

Amendments. The 2003 amendment added the present subdivision designations in (c); in (c)(1), deleted “or other appointive” following “elective” and deleted the second sentence, which read, “No member shall be a candidate for any elective office while a member of the commission”; and inserted “director” in (c)(2).

The 2015 amendment rewrote (c) and (d).

14-201-106. Compensation of commissioners.

The commissioners shall receive ten dollars ($10.00) per day while attending meetings of the commission. In addition, they shall be reimbursed for expenses incurred for necessary travel, meals, and lodging while attending to the business of the commission away from the city and for other necessary expenses incurred in the performance of the business of the commission.

History. Acts 1957, No. 115, § 6; A.S.A. 1947, § 19-4066.

14-201-107. Oath of commissioners.

Before entering upon their duties as commissioners, each member of the commission shall take the oath prescribed by Arkansas Constitution, Article 19, § 20.

History. Acts 1957, No. 115, § 7; A.S.A. 1947, § 19-4067.

14-201-108. Removal from office of commissioner.

A member of the commission may be removed from office by the mayor and a two-thirds (2/3) vote of the city council for malfeasance, misfeasance, nonfeasance, or other misconduct.

History. Acts 1957, No. 115, § 8; A.S.A. 1947, § 19-4068.

14-201-109. Abolition of commission.

    1. A utility commission established under this subchapter by the city council or other governing body may be abolished by a majority vote of the city council or other governing body.
    2. No abolishment of any such commission, whether pursuant to the provisions of this subchapter or otherwise, shall affect the rights, properties, or obligations held or incurred by the commission.
    1. If twenty-five percent (25%) of the electors of the city petition the city council to do so, a special election shall be ordered in accordance with § 7-11-201 et seq. not later than fourteen (14) days from the date on which the petition was filed to be held at least ninety (90) days after the order on the question whether the utility commission shall be abolished or continued.
    2. A majority vote of the electorate shall determine the question.

History. Acts 1957, No. 115, §§ 3, 4; 1985, No. 889, § 2; A.S.A. 1947, §§ 19-4063, 19-4064; Acts 2005, No. 2145, § 50; 2007, No. 1049, § 71; 2009, No. 1480, § 90; 2015, No. 897, § 2.

Amendments. The 2005 amendment inserted the subdivision (1) and (3) designations in (b); in present (b)(1), substituted “sixty (60)” for “thirty (30)” and deleted the former last sentence which read: “If the petition permits, the question may be submitted at a general election”; and added (b)(2).

The 2009 amendment substituted “§ 7-11-201 et seq.” for “§ 7-5-103(b)” in (b)(1).

The 2015 amendment rewrote (a)(1).

14-201-110. General powers of commission.

    1. The commission shall have full power to manage, operate, improve, extend, maintain, and contract concerning the municipal waterworks and distribution system or electric light plant and system, or both, and has full power to employ or remove any and all assistants and employees and to fix, regulate, and pay their salaries.
    2. Without limiting the generality of the foregoing, the commission is empowered to acquire, construct, and equip any and all facilities, consisting of real property, personal property, or mixed property of any and every kind, which in the judgment of the commission are necessary or useful as a part of or in connection with the municipal waterworks and distribution system or electric light plant and system, or both including, without limitation, facilities for the generation of electric power and related transmission facilities, which may be located within or without the corporate boundaries of the city. In furtherance of its authority to construct facilities for the distribution or transmission of electric energy and to provide its customers reliable utility service, the commission is granted the right of eminent domain outside the corporate limits of the municipality creating the commission, but subject to the provisions of § 14-201-102(b) and only within the contiguous service territory as heretofore or hereafter granted to the municipality by the Arkansas Public Service Commission and in accordance with the procedures of §§ 18-15-301 — 18-15-308 and as those sections may be amended.
    1. The commission is empowered to establish rates for water, or electricity, or both, and it may change the rates when the facts so warrant.
    2. The commission is empowered to execute long-term contracts for utility service, subject to the power to change the rates applicable to them as set out in this section.

History. Acts 1957, No. 115, §§ 9, 10; 1985, No. 889, § 3; A.S.A. 1947, §§ 19-4069, 19-4070; Acts 1989, No. 495, § 1.

Cross References. Rate-making authority, § 23-4-201.

14-201-111. Authority to borrow, issue bonds or notes — Pledge of revenues.

  1. The commission may borrow money and issue negotiable evidences of debt therefor either in the form of bonds or short-term notes, and it may execute such negotiable notes or bonds to obtain the funds needed to carry out its functions.
  2. The commission may also pledge its revenues including the income from operations, and it may mortgage waterworks or electric system property to secure the payment of money borrowed.

History. Acts 1957, No. 115 § 11; 1981, No. 425, § 48; 1983, No. 442, § 2; 1985, No. 889, § 4; A.S.A. 1947, § 19-4071.

14-201-112. Bonds or notes — Issuance generally.

The issuance of bonds or notes shall be by a resolution of the commission.

History. Acts 1957, No. 115, § 11; 1981, No. 425, § 48; 1983, No. 442, § 2; A.S.A. 1947, § 19-4071.

14-201-113. Bonds or notes — Terms and conditions.

  1. The bonds or notes may:
    1. Be coupon bonds payable to bearer, subject to registration as to principal or as to principal and interest, or fully registered bonds without coupons;
    2. Contain exchange privileges;
    3. Be issued in one (1) or more series;
    4. Bear such date or dates;
    5. Mature at such time or times;
    6. Bear interest at such rate or rates;
    7. Be in such form;
    8. Be executed in such manner;
    9. Be payable in such medium of payment, at such place or places;
    10. Be subject to such terms of redemption in advance of maturity at such prices; and
    11. Contain such terms, covenants, and conditions as the resolution may provide, including, without limitation, those pertaining to:
      1. The custody and application of the proceeds of the bonds or notes;
      2. The collection and disposition of revenues;
      3. The maintenance of various funds and reserves;
      4. The investing and reinvesting of any moneys during periods not needed for authorized purposes;
      5. The nature and extent of the security;
      6. The rights, duties, and obligations of the commission and the trustee for the holders or registered owners of the bonds or notes; and
      7. The rights of the holders or registered owners of the bonds or notes.
  2. The bonds and notes shall have all the qualities of negotiable instruments under the laws of the State of Arkansas, subject to the provisions for registration set forth herein.

History. Acts 1957, No. 115, § 11; 1981, No. 425, § 48; 1983, No. 442, § 2; A.S.A. 1947, § 19-4071.

14-201-114. Bonds or notes — Trust indenture.

  1. The authorizing resolution may provide for the execution of a trust indenture by the commission with a bank or trust company within or without the State of Arkansas.
  2. The trust indenture may control the priority between successive issues and may contain any other terms, covenants, and conditions that are deemed desirable by the commission, including, without limitation, those pertaining to:
    1. The custody and application of the proceeds of the bonds or notes;
    2. The collection and disposition of revenues;
    3. The maintenance of various funds and reserves;
    4. The investing and reinvesting of any moneys during periods not needed for authorized purposes;
    5. The nature and extent of the security;
    6. The rights, duties, and obligations of the commission and the trustee for the holders or registered owners of the bonds; and
    7. The rights of the holders or registered owners of the bonds or notes.

History. Acts 1957, No. 115; § 11; 1981, No. 425, § 48; 1983, No. 442, § 2; A.S.A. 1947, § 19-4071.

14-201-115. Bonds or notes — Contents.

It shall be plainly stated on the face of each bond or note that it has been issued under the provisions of this subchapter and that it does not constitute an indebtedness of the city within any constitutional or statutory limitation.

History. Acts 1957, No. 115, § 11; 1981, No. 425, § 48; 1983, No. 442, § 2; 1985, No. 889, § 4; A.S.A. 1947, § 19-4071.

14-201-116. Bonds or notes — Sale.

The bonds or notes may be sold at public or private sale, for such price, including, without limitation, sale at a discount, and in such manner as the commission may determine by resolution.

History. Acts 1957, No. 115, § 11; 1981, No. 425, § 48; 1983, No. 442, § 2; A.S.A. 1947, § 19-4071.

14-201-117. Bonds or notes — Nature of indebtedness.

  1. The bonds and notes shall not be general obligations of the city, but shall be special obligations payable from and secured by a pledge of revenues derived from the city's waterworks or electric system and otherwise secured as provided in this subchapter.
  2. In no event shall the bonds and notes constitute an indebtedness of the city within the meaning of any constitutional or statutory limitation.

History. Acts 1957, No. 115, § 11; 1981, No. 425, § 48; 1983, No. 442, § 2; 1985, No. 889, § 4; A.S.A. 1947, § 19-4071.

14-201-118. Bonds or notes — Priority among issues.

Priority between successive issues may be controlled by the resolution.

History. Acts 1957, No. 115, § 11; 1981, No. 425, § 48; 1983, No. 442, § 2; A.S.A. 1947, § 19-4071.

14-201-119. Refunding bonds or notes.

  1. Bonds or notes may be issued for the purpose of refunding any bonds or notes issued under this subchapter, or for the purpose of refunding any bonds or notes issued by the city creating the commission secured, in whole or in part, by waterworks or electric system revenues.
  2. Refunding bonds or notes may be combined with bonds or notes issued under the provisions of §§ 14-201-112 and 14-201-113 into a single issue.
    1. When refunding bonds or notes are issued, the bonds or notes may either be sold or delivered in exchange for the bonds or notes being refunded.
    2. If sold, the proceeds may be either applied to the payment of the bonds or notes being refunded or deposited in escrow for the retirement thereof.
  3. All refunding bonds and notes shall in all respects be issued and secured in the manner provided for other bonds and notes issued under this subchapter and shall have all the attributes of the bonds and notes.
  4. The resolution under which the refunding bonds or notes are issued may provide that any of the refunding bonds or notes shall have the same priority of lien on and security interest in waterworks or electric system revenues and the waterworks or electric system as was enjoyed by the bonds or notes refunded thereby.

History. Acts 1957, No. 115, § 11; 1981, No. 425, § 48; 1983, No. 442, § 2; 1985, No. 889, § 4; A.S.A. 1947, § 19-4071.

14-201-120. Default in payment of notes or bonds — Receiver.

  1. If the commission defaults in the payment of any note or bond issued by it in either principal or interest, the holder of the note or bond or the trustee or mortgagee in any pledge, mortgage, or deed of trust given to secure it may bring suit for the enforcement thereof in the chancery court. Upon the filing of the suit, the holder is entitled to the immediate appointment of a receiver with power to take charge of all property of the commission and to operate it and collect the revenues arising therefrom.
  2. The appointment of a receiver shall be made as a matter of right, upon proof only of the default and of the plaintiff's right to bring suit as provided in this section.
  3. The receiver may be authorized to charge for service the rates in force at the time of his appointment; but, if the rates have been reduced to the prejudice of persons holding the obligations of the commission, the court may authorize the receiver to charge rates in accordance with the schedule in force when the obligation sued on was contracted, if the restoration of the higher rate is necessary to protect the rights of creditors.

History. Acts 1957, No. 115, § 12; A.S.A. 1947, § 19-4072.

14-201-121. Use of fees and charges — Pledges — Surplus.

  1. For so long as any bond or notes are outstanding and unpaid, the rates, fees, and charges for water and electricity charged and collected by the commission shall be fixed so as to provide revenues sufficient to pay all costs of and charges and expenses in connection with the proper operation and maintenance of the waterworks and electric light systems, respectively, and all necessary repairs, replacements, or renewals thereof; to pay when due the principal of, premium, if any, and interest on all bonds payable from such revenues; to create and maintain revenues as may be required by any resolution or trust indenture authorizing or securing bonds or notes; and to pay any and all amounts which the commission may be obligated to pay from such revenues by law or contract.
  2. Any pledge made by the commission pursuant to this subchapter shall be valid and binding from the date the pledge is made. The revenues so pledged and then held or thereafter received by the commission or any fiduciary on its behalf shall immediately be subject to the lien of the pledge without any physical delivery thereof or further act, and the lien of the pledge shall be valid and binding against all parties having claims of any kind in tort, contract, or otherwise against the commission without regard to whether such parties have notice thereof. The resolution, trust indenture, or other instrument by which a pledge is created need not be filed or recorded in any manner.
  3. Any surplus remaining after the expenditures authorized by this subchapter may be made available for other purposes of the city by resolution of the city council.

History. Acts 1957, No. 115, § 13; 1983, No. 442, § 3; A.S.A. 1947, § 19-4073.

14-201-122. Meetings and records.

All meetings of the commission shall be open to the public, and all rules, regulations, and records of the commission are public records.

History. Acts 1957, No. 115, § 17; A.S.A. 1947, § 19-4077.

14-201-123. Quarterly report to city council.

The commission shall report to the city council on each calendar quarter of the year on the state of the operations of the commission and its financial affairs.

History. Acts 1957, No. 115, § 18; A.S.A. 1947, § 19-4078.

14-201-124. Annual audit.

At the end of each fiscal year, the commission shall cause an audit to be made of the financial affairs of the commission by a certified public accountant. Five (5) copies of the report shall be retained in the office of the commission, and there shall be made available a copy to the mayor and to each member of the city council.

History. Acts 1957, No. 115, § 19; A.S.A. 1947, § 19-4079.

14-201-125. Rules and regulations for operation — Injunctions.

  1. The commission shall adopt such rules and regulations as it deems necessary and proper for the operation and management of the waterworks and distribution system or electric light plant and system, or both, and it is empowered to change the rules and regulations at any time the commission desires to do so.
  2. The commission may obtain prohibitive and mandatory injunctions against any person for refusal to comply with the regulations of the commission.

History. Acts 1957, No. 115, § 20; A.S.A. 1947, § 19-4080.

14-201-126. Enforcement of rights under resolution or trust indenture.

Any holder or registered owner of bonds or notes, or coupons appertaining to bonds, except to the extent the rights herein given may be restricted by the resolution or trust indenture authorizing or securing such bonds or notes or coupons, may, either at law or in equity, by suit, action, mandamus, or other proceeding, protect and enforce any and all rights under the laws of the State of Arkansas or granted hereunder, or, to the extent permitted by law, under such resolution or trust indenture authorizing or securing such bonds or notes or under any agreement or other contract executed by the commission pursuant to this subchapter, and may enforce and compel the performance of all duties required by this subchapter or by such resolution or trust indenture to be performed by the commission or by any officer thereof, including the fixing, charging, and collecting of rates, fees, and charges.

History. Acts 1957, No. 115, § 14; 1983, No. 442, § 4; A.S.A. 1947, § 19-4074.

14-201-127. Bonds — Tax exemption.

Bonds and notes issued under the provisions of this subchapter, and the interest thereon, shall be exempt from all state, county, and municipal taxes, including property, income, inheritance, and estate taxes.

History. Acts 1957, No. 115, § 15; 1983, No. 442, § 5; A.S.A. 1947, § 19-4075.

14-201-128. Investment of public funds in bonds or notes.

Any municipality or any board, commission, or other authority duly established by ordinance of any municipality, or the board of trustees, respectively, of the firemen's relief and pension fund and the policemen's pension and relief fund of any municipality, or the board of trustees of any retirement system created by the General Assembly may, in its discretion, invest any of its funds in bonds or notes issued under the provisions of this subchapter. Bonds and notes issued under the provisions of this subchapter shall be eligible to secure the deposit of public funds.

History. Acts 1957, No. 115, § 16; 1983, No. 442, § 6; A.S.A. 1947, § 19-4076.

14-201-129. Social security, pension, and retirement for employees.

The commission is authorized to provide a plan of social security, old age pension, or retirement pay for a part or all of the employees under its jurisdiction in accordance with § 14-234-310.

History. Acts 1957, No. 115, § 21; A.S.A. 1947, § 19-4081.

Subchapter 2 — Cities of the First Class — Pre-1957 Provisions

14-201-201. Construction.

    1. This subchapter shall not be construed to repeal or amend any valid local or special act heretofore passed pertaining to the operation, control, or management of any light or water plant or sewer system nor to the creation or election of any board of directors or like board elected or appointed pursuant to any special act or acts, nor to plants or systems organized as improvement districts.
    2. Any acts providing for election of members of any boards or commissions shall remain in full force and effect.
  1. Nothing in this subchapter shall be construed to prohibit the city council of any city subject to the terms of this subchapter from repealing or amending any act which it may have passed pursuant to the authority conferred by this subchapter.

History. Acts 1953, No. 562, §§ 2, 12; A.S.A. 1947, §§ 19-4052, 19-4060.

14-201-202. Existing boards continued.

    1. If, in any municipal corporation subject to the provisions of this subchapter, there shall be in existence a board or commission created by or acting under any existing ordinance passed by the city council of the city and approved by its mayor, and if the members of the board shall have been elected by popular vote pursuant to any existing law, ordinance, or practice, and, if the board shall be actually operating and controlling the municipally owned plant or plants upon the passage of this act, the members of the board so elected shall constitute the membership of the board as created under § 14-201-204.
    2. Their terms shall expire in accordance with the dates of their election to the board by popular vote at any prior city election.
  1. If, prior to the passage of this act, any board of five (5) members shall be in existence as last hereinabove provided under this section and shall have elected its president and secretary or other officers, then the president, secretary, and other officers shall remain in office for the term to which they have been elected and thereafter shall be elected by the board annually.

History. Acts 1953, No. 562, § 4; A.S.A. 1947, § 19-4054.

Publisher's Notes. Concerning the term “the passage of this act,” Acts 1953, No. 562 was signed by the Governor on March 31, 1953, and took effect on June 11, 1953.

14-201-203. Commission to operate utilities authorized.

  1. A city of the first class may, by ordinance, create a commission or commissions to operate, control, and supervise such of its municipally owned water, sewer, or light plants as may be prescribed by ordinance which are not now being operated by a commission created by or pursuant to valid special or local acts of the General Assembly.
  2. If either a municipally owned water or sewer or light plant belonging to a city of the first class is being operated at the time of the passage of this act by a commission or commissions created by or pursuant to valid special or local acts of the General Assembly, then the power of the city to create a commission shall be limited to such plants as are not now being operated by a commission created by or pursuant to valid special or local acts of the General Assembly.
  3. Nothing contained in this section shall be construed to supersede management of any such municipally owned water, sewer, or light plant under or pursuant to any valid local or special act referred to in § 14-201-201.

History. Acts 1953, No. 562, § 1; A.S.A. 1947, § 19-4051.

Publisher's Notes. Concerning the term “time of the passage of this act,” Acts 1953, No. 562 was signed by the Governor on March 31, 1953, and took effect on June 11, 1953.

As to validation of board of public utilities having five members in city of the first class with a population not over 8,000, see Acts 1959, No. 185.

14-201-204. Creation of board or commission — Members — Vacancies.

  1. Any city of the first class subject to the provisions of this subchapter owning, operating, or controlling a municipal light and power plant, or sewer plant, or water plant is authorized by a proper ordinance passed by the city council of the city and approved by its mayor to create a board consisting of five (5) members for the purpose of directing, managing, controlling, and operating the plant within the city or in any area in which the city may be lawfully authorized to operate outside the city limits thereof, except as provided in § 14-201-202.
    1. In the ordinance creating the board or commission of five (5) members, the city council shall designate the members thereof to hold office for the first term and shall fix the term of office for one (1) member of the board at one (1) year; one (1) member at two (2) years; one (1) member at three (3) years; one (1) member at four (4) years; and one (1) member at five (5) years and, in each instance, until their respective successors have been chosen and qualified.
    2. Thereafter, as the terms of office of the members of the board expire, the successor to each member shall be chosen for a period of five (5) years.
  2. Unless otherwise provided in the ordinance creating the board or commission, each member shall be elected by popular vote in the same manner as the mayor of the city shall be chosen. The election shall be held at the regular city election. The candidates for election shall be voted for by the same qualified voters and in the same way and manner as designated by law for voting for the office of mayor of the city.
  3. Vacancies occurring shall be filled by appointment by the city council, and the person appointed to fill a vacancy under this section or under § 14-201-202 shall serve until the next regular city election at which a successor may be elected and until a successor shall have been elected and qualified unless the ordinance creating the commission shall have provided for a different method for filling vacancies on the commission.

History. Acts 1953, No. 562, § 3; A.S.A. 1947, § 19-4053.

14-201-205. Meetings of board — Organization.

  1. When the city council of a city, subject to the provisions of this subchapter, shall have passed the initiatory ordinance as provided in this subchapter, the board therein provided shall meet immediately.
  2. A quorum of the board is authorized, upon reasonable notice to the other members of the board of the time, place, and purpose of any meeting, to transact any and all legal business which may come before either the first meeting of the board or any subsequent meeting thereof.
  3. At its first meeting, the board shall designate one (1) of its members as chairman, whose duty it shall be to preside over all meetings had and held by the board.
    1. The board shall designate a certain time for a regular meeting each month or may adjourn from time to time and reassemble pursuant to adjournment.
    2. The president of the board or any three (3) members thereof may call a meeting of the board at such time as may be necessary in the judgment of the person calling the meeting upon reasonable notice of the time, place, and purpose of the meeting.
    3. No notice shall be required of any regular monthly meeting previously designated by the board.
  4. A record of the proceedings of each regular, adjourned, or called meeting shall be kept by some person who may either be a member of the board selected and chosen as secretary thereof by the board, or by such person as the board may designate as secretary, who need not be a member of the board.
  5. Officers elected by the board shall hold office for a term of one (1) year or until their successors shall be elected and qualified. However, any secretary of the board who shall not be a member thereof may be removed by the board at any time.

History. Acts 1953, No. 562, § 5; A.S.A. 1947, § 19-4055.

14-201-206. Powers of board and city council.

  1. The board created pursuant to this subchapter shall have full power to operate and control the plant entrusted to its direction by the city ordinance creating the board as provided in § 14-201-203.
  2. Subject to such restrictions as may be prescribed in the ordinance creating the board, the board shall have full power to buy and pay for out of the earnings or revenues of the plants for the welfare and benefit of the citizens and inhabitants of the municipal corporation, and the board may purchase and pay for out of the revenues derived from the operation of the power plants, all necessary equipment needed in the operation of the plants and for such lands as may be necessary and the board may also sell any real or personal property, not necessary to be used in the operation of the plant, but shall not sell or rent the right to own, use, and operate the necessary equipment of the plant.
  3. Except as its powers may be limited by city ordinance, the board shall have the same rights and powers with reference to the nature, extent, and performance of its duties and with reference to the employment of the employees and other necessary assistants as is now provided by law with reference to the boards of commissioners of municipal improvement districts.
  4. Nothing in this subchapter shall be construed to limit or impair the rights of the city council to approve any rates or charges for electric, water, or sewer service.

History. Acts 1953, No. 562, §§ 6-8; A.S.A. 1947, §§ 19-4056 — 19-4058.

Publisher's Notes. Subsection (d) of this section may be affected by § 23-4-201 which vests exclusive authority to determine electric and sewer utility rates in the Arkansas Public Service Commission.

Case Notes

Rate Schedules.

Where the right to approve and confirm the rate schedule and any changes therein by the commission was reserved by the municipal council pro tem to the administrative functions of the commission under authority granted by the legislature and such reservation being simply restrictions placed on the administrative rights and duties of the commission as from time to time performed by it, the approval and confirmation of the cost adjustment for electricity by the city council were legally expressed by resolution and did not require form of municipal ordinance. Kruzich v. West Memphis Util. Comm'n, 257 Ark. 187, 515 S.W.2d 71 (1974).

14-201-207. Employees of board — Salary of board members.

  1. Subject to such restrictions or limitations as may be imposed by municipal ordinances, the board created pursuant to this subchapter shall have plenary powers with reference to the selection, supervision, and payment of compensation for all employees required in connection with the operation of the municipal plants under its jurisdiction.
    1. Any ordinance passed by the city council may make additional provisions for the control and operation of light, water, or sewer plants and may provide a limitation as to salaries or wages to be paid by the board including salaries to be paid to members of the board for their services as members of the board.
    2. Unless otherwise limited or authorized by city ordinances, the salaries to be paid to members of the board shall be ten dollars ($10.00) per month or five dollars ($5.00) for each meeting attended by each board member, whichever is less.

History. Acts 1953, No. 562, § 7; A.S.A. 1947, § 19-4057.

14-201-208. Reports of board.

The board shall make due report to the city council with reference to the conditions and affairs of the municipal plants under its control at whatever time and in whatever manner the city council may designate.

History. Acts 1953, No. 562, § 9; A.S.A. 1947, § 19-4059.

Subchapter 3 — Cities of the Second Class and Towns

Publisher's Notes. Acts 1939, No. 95, § 32, provided that §§ 14-89-60114-89-603, insofar as they would apply to water and electric light plants, the control and operation of which may be placed in any board that may be created under the terms of this subchapter, are repealed.

Cross References. Operation of water and electric light plants in cities of the first class, § 14-91-401.

Effective Dates. Acts 1939, No. 95, § 36: approved Feb. 16, 1939. Emergency clause provided: “It being necessary for the immediate preservation of the public peace, health and safety, an emergency is hereby declared and this act shall take effect and be in force from and after its passage.”

Acts 1975, No. 928, § 1: effective simultaneously with the Arkansas Criminal Code on Jan. 1, 1976.

Research References

C.J.S. 87 C.J.S., Towns, §§ 53-59.

Case Notes

Board Not Mandatory.

A city has express statutory power under § 14-91-402 to own and operate light and water plants and may delegate this authority to an agency without creating a board of public utilities as provided in this subchapter. Adams v. Bryant, 236 Ark. 859, 370 S.W.2d 432 (1963).

14-201-301. Construction.

This subchapter shall not be construed to repeal or amend any local and special act passed before February 16, 1939, pertaining to the operation, control, or management of any light or water plant or sewer system in this state or to the creation or election of any board of directors or like board for the management, control, and operation of any light or water plant or sewer system being controlled or operated under the terms of such local or special act.

History. Acts 1939, No. 95, § 35; A.S.A. 1947, § 19-4033.

14-201-302. Creation of board.

  1. In each of the cities of the second class and incorporated towns of this state where electric light plants or water plants or sewerage systems or electric light plants and water plants and sewerage systems are owned by any improvement district or districts, or such districts having been paid out and now under control of the city or town council wherein the districts are located, having been constructed or acquired by the district or districts in whole or in part with funds derived from taxes or assessments of benefits against the real property in the improvement district or districts, there may be created a board to be known as “the board of public utilities.”
  2. The board shall have the sole and exclusive control of the maintenance, enlargement, and operations of the plants, subject to the provisions and conditions of this subchapter.
  3. This subchapter shall not apply to districts that have outstanding bonds unpaid.

History. Acts 1939, No. 95, § 1; A.S.A. 1947, § 19-4001.

Case Notes

Provisions Not Mandatory.

This section does not make compulsory the operation of utilities by the board of public utilities referred to therein but simply provides that such a board may be created. Adams v. Bryant, 236 Ark. 859, 370 S.W.2d 432 (1963).

Cited: Cosgrove v. City of W. Memphis, 327 Ark. 324, 938 S.W.2d 827 (1997).

14-201-303. Petition for election to adopt subchapter.

  1. When fifty (50) or more owners of real property in any improvement district or districts in any city of the second class or incorporated town in this state shall desire that the provisions of this subchapter be made applicable to the electric lights plants, water plants, and sewerage systems or to the electric light plant, water plant or sewerage system in the city or town, they shall file with the county board of election commissioners in the county in which the city or town lies, a petition signed by them praying that board of election commissioners call an election in the improvement district or districts to determine whether the provisions of this subchapter shall be made applicable to the light plant, water plant, or sewage system or the light plants, water plants, and sewage systems of the district or districts.
  2. The signers of the petition shall all be residents of the area embraced in one (1) or more of the improvement districts to be affected, but it shall not be necessary that they own real property in the district in which they reside, it being sufficient if they own real property in at least one (1) of the districts to be affected.

History. Acts 1939, No. 95, § 5; A.S.A. 1947, § 19-4005.

14-201-304. Notice of election.

Within five (5) days after the filing of the petition, the county board of election commissioners shall call an election to be held in the city or town at a time not less than thirty (30) days nor more than sixty (60) days from the date of the filing of the petition. The board shall give due notice thereof by publication in some newspaper published in the city or town, weekly for two (2) weeks, stating in the notice the time and place where the election will be held and the purpose thereof; and the election may be held at any place in the city or town designated by the board whether the place be within or without the boundaries of the improvement district or districts. If no newspaper is published in the city or town, notice of the election shall be given by printed notices posted at ten (10) public places therein for more than twenty (20) days prior to the election.

History. Acts 1939, No. 95, § 6; A.S.A. 1947, § 19-4006.

14-201-305. Form of ballots — Manner of voting.

  1. The county board of election commissioners shall provide ballots to be used at the election upon which shall be printed the following words:
  2. There shall also be printed upon the ballots the necessary words and figures to show the date of the election and the city or town wherein the election is to be held, and no other words or figures shall be printed thereon.
  3. Persons desiring to vote for the creation of a board of public utilities shall strike out the words “Against the Creation of a Board of Public Utilities” and those desiring to vote against the creation of a board of public utilities shall strike out the words “For the Creation of a Board of Public Utilities.”

“FOR THE CREATION OF A BOARD OF PUBLIC UTILITIES.”

“AGAINST THE CREATION OF A BOARD OF PUBLIC UTILITIES.”

History. Acts 1939, No. 95, § 7; A.S.A. 1947, § 19-4007.

14-201-306. Conduct of election — Board created upon majority vote.

  1. The polls at the election shall be opened at 8:00 a.m. on the day set by the county board of election commissioners for the holding of the election and shall be closed at 6:00 p.m. on that date. Immediately thereafter and on the same day the judges and clerks shall count the ballots cast at the election and announce the result thereof and shall immediately thereafter file with the secretary of the board of election commissioners of the county and with the city clerk or recorder of the city or town a certificate showing the result of the election.
  2. If at the election a majority of the votes cast shall be for the creation of a board of public utilities, the board shall be deemed to have been created and the provisions of this subchapter shall extend to and control the operation and maintenance of all the electric light plants, water plants and sewerage systems or the electric light plant, water plant and sewerage system belonging to any improvement district or districts in the city or town.

History. Acts 1939, No. 95, § 8; A.S.A. 1947, § 19-4008.

14-201-307. Calling election to elect board members — Notice of election.

  1. Immediately after the creation of the board of public utilities pursuant to § 14-201-306, the county board of election commissioners shall call an election to be held in the city or town at a time not less than thirty (30) days nor more than sixty (60) days distant for the purpose of electing five (5) members to compose the board of public utilities.
  2. Notice of the election shall be given in the same manner as provided in § 14-201-304 for notice of the election to create the board of public utilities.

History. Acts 1939, No. 95, §§ 8, 9; A.S.A. 1947, §§ 19-4008, 19-4009.

14-201-308. Qualifications of voters.

  1. Only owners of real estate in one (1) or more of the improvement districts to be affected thereby and who reside in one (1) of the districts whose light plant, water plant, or sewerage system is to be controlled and operated by the board shall be allowed to vote at any of the elections provided for by this subchapter. Each of such owners of real property shall be entitled to cast one (1) vote for each one dollar ($1.00) of state and county taxes he shall have paid upon such real estate owned by him in the district or districts during the tax paying period next preceding the year of such elections. No vote shall be cast for property which lies within the district but which was not assessed with benefits for the improvements therein.
  2. The judges holding the election shall have access to the assessments of benefits, tax books, other records of the district, and the state and county tax books for the purpose of determining who shall be entitled to vote and the number of votes to be cast by any voter. In the event of a dispute as to the ownership of any tract or parcel of land in any of the districts, the ownership shall be deemed to be in the person having the possession thereof at the time of the election and paying the state and county taxes thereon during the taxpaying period next preceding the year of the election.

History. Acts 1939, No. 95, §§ 12, 13; A.S.A. 1947, §§ 19-4012, 19-4013.

14-201-309. Supplies for elections — Cost.

The board of election commissioners shall provide all necessary ballots, poll books, and tally sheets for the holding of elections herein provided for and the expense thereof, and all costs of the election shall be paid by the city or town council of the city or town where such election is held from the funds of the light and water plants and sewage systems under its control.

History. Acts 1939, No. 95, § 11; A.S.A. 1947, § 19-4011.

14-201-310. Ballots in duplicate — Conduct of election.

In the conduct of the election, all ballots shall be in duplicate; duplicate ballot boxes shall be provided for use at the election and, generally, unless in conflict with this subchapter, the laws of the State of Arkansas pertaining to the conduct of general elections and to the preservation of poll books, tally sheets, and ballots shall apply to all elections held hereunder.

History. Acts 1939, No. 95, § 19; A.S.A. 1947, § 19-4019.

14-201-311. Election officials.

  1. Not less than ten (10) days before the date fixed by the board of election commissioners for the holding of any of the elections herein provided for, the board shall appoint three (3) persons of lawful age who reside and own real estate in one (1) of the districts, whose light plant, water plant, or sewerage system is to be controlled and operated by the board of public utilities herein provided for, as judges to hold the election and two (2) persons possessing like qualifications as clerks of the election and shall designate the place in the city or town where the election shall be held.
  2. Should any judge or clerk appointed to hold any of the elections provided for herein fail to appear at the time for opening of the polls, a majority of the persons entitled to vote at the election then present at the polls may select some other person possessing the qualifications herein prescribed to serve as judge or clerk in his stead.

History. Acts 1939, No. 95, §§ 15, 16; A.S.A. 1947, §§ 19-4015, 19-4016.

14-201-312. Members of board — Qualifications.

  1. Boards of public utilities, when created in the manner set out in this subchapter, shall be composed of five (5) members each of whom, at the time of his election shall not be less than twenty-five (25) years old and a resident and owner of real estate in one (1) or more of the improvement districts owning the light or water plants or sewerage systems coming under the control of the board of public utilities as provided.
  2. No officeholder, either state, county, or municipal, whether elected or appointed, or his deputy, shall be eligible to membership on any board of public utilities created under this subchapter.

History. Acts 1939, No. 95, §§ 2, 14; A.S.A. 1947, §§ 19-4002, 19-4014.

14-201-313. Nominations to board membership.

Nominations of candidates for membership on the board of public utilities shall be made by filing of a petition signed by not less than ten (10) owners of real property in one (1) or more of the improvement districts whose plants or systems will be placed under the control of the board with the county board of election commissioners. All nominations shall close on and no nominating petitions shall be filed after the tenth day preceding the election.

History. Acts 1939, No. 95, § 10; A.S.A. 1947, § 19-4010.

14-201-314. Interest of board members in contracts unlawful — Penalty.

  1. It shall be unlawful for any member of the board of public utilities to be directly or indirectly interested in any contract with the board.
  2. Any member engaging in conduct constituting an offense under this section commits a Class D felony. Further, his office shall thereby become vacant, and he shall forever be ineligible as a member of any board of public utilities created under this subchapter.

History. Acts 1939, No. 95, § 33; 1975, No. 928, § 6; A.S.A. 1947, § 19-4032.

Publisher's Notes. Acts 1975, No. 928, § 2, provided that, notwithstanding that all or part of a statute defining a criminal offense is amended or repealed by this act, the provisions so amended or repealed shall remain in force for the purpose of authorizing the prosecution, conviction, and punishment of a person committing an offense under the provisions prior to the effective date of this act.

14-201-315. Terms of initial members.

The candidate receiving the highest number of votes at the election shall serve as a member of the board for five (5) years; the candidate receiving the next highest number of votes shall serve as a member of the board for four (4) years; the candidate receiving the next highest number of votes shall serve as a member of the board for three (3) years; the candidate receiving the next highest number of votes shall serve as a member of the board for two (2) years; and the candidate receiving the next highest number of votes shall serve as a member of the board for one (1) year.

History. Acts 1939, No. 95, § 17; A.S.A. 1947, § 19-4017.

14-201-316. Election of succeeding members — Term — Conduct of election — Notice.

  1. In all cities and towns where a board of public utilities shall be created under the provisions of this subchapter, there shall be held, on a day to be designated by the county board of election commissioners not less than thirty (30) days nor more than sixty (60) days before the expiration of the term of office of any member of the board of public utilities, an election for the purpose of electing a member of the board to succeed the outgoing member.
  2. The members of the board so elected at such elections shall serve as members thereof for a period of five (5) years or until their successors are elected and qualified in the manner herein provided.
    1. Elections shall be held under the authority of the county board of election commissioners as herein provided for in the election of members of the board in the first instance, and the county board of election commissioners shall provide the ballots, ballot boxes, tally sheets, and poll books for the election, the expense of which shall be paid by the board of public utilities out of any funds in its hands.
    2. The judges and clerks for the election shall be owners of real property in one (1) or more of the improvement districts to be affected by the election. The election shall be conducted and the returns thereof made as provided in this subchapter for the first election of members of the board.
  3. Notice of the election shall be given in the same manner and for the same length of time as provided in § 14-201-304 for notice of the election to create the board of public utilities.

History. Acts 1939, No. 95, § 23; A.S.A. 1947, § 19-4023.

14-201-317. Commencement of term — Oath of office.

The term of office of the members of the board shall begin on the first Tuesday following their election, at which time they shall meet and take the oath prescribed by Arkansas Constitution, Article 19, § 20, and shall file a copy of the oath with the city clerk or recorder.

History. Acts 1939, No. 95, § 18; A.S.A. 1947, § 19-4018.

14-201-318. Vacancies.

If any member of the board shall cease to be a resident or owner of real estate in any of the improvement districts upon which his qualification as to ownership of property and residence shall be based or, if he shall resign from the board, his office shall be deemed vacant and any vacancy upon the board for that reason specified shall be filled by a majority vote of the remaining members thereof.

History. Acts 1939, No. 95, § 3; A.S.A. 1947, § 19-4003.

14-201-319. Compensation of members.

  1. The sole compensation of each member of the board shall be the sum of five dollars ($5.00) per month.
  2. The board, by a vote of a majority of its members, may fix a reasonable sum for the secretary of the board to compensate him for the clerical duties required of him.

History. Acts 1939, No. 95, § 26; A.S.A. 1947, § 19-4026.

14-201-320. Officers of board — Meetings — Minutes.

  1. At the first meeting of the board, one (1) of its members shall be elected as chairman and one (1) member shall be elected as secretary and treasurer.
  2. The board shall fix the time for its regular meetings to be held not less than once every month. Special meetings may be called by the chairman at any time upon two (2) days' notice to all members.
  3. The chairman shall preside at all meetings, and the secretary shall keep a minute book in which shall be inscribed a record of the minutes of all meetings of the board. The book shall be at all times subject to the inspection of any taxpayer.

History. Acts 1939, No. 95, § 20; A.S.A. 1947, § 19-4020.

14-201-321. Subsequent election to create board.

In event of a failure of the owners of real estate as provided in this subchapter to create a board of public utilities under the provisions of this subchapter at any election called for that purpose, the failure shall not be held to exhaust their powers to create the board at another election which may be called as provided in this subchapter. No election shall be called to be held within less than two (2) years after holding of the first or subsequent elections.

History. Acts 1939, No. 95, § 21; A.S.A. 1947, § 19-4021.

14-201-322. General powers of board.

The board of public utilities:

  1. May do and perform all things necessary to enforce the collection of the rates to be charged for the service rendered by any and all plants or sewerage systems under its jurisdiction; and
  2. Shall do any and all things necessary to the successful operation and maintenance of the electric light plants, water plants, or sewerage systems.

History. Acts 1939, No. 95, § 25; A.S.A. 1947, § 19-4025.

Cross References. Rate-making authority, § 23-4-201.

Case Notes

Bonds.

The board of public utilities has the sole and exclusive control of the maintenance and operations of systems for electricity, water, and sewer, but does not have authority to issue bonds for raising money to finance them. Portis v. Board of Pub. Utils., 213 Ark. 201, 209 S.W.2d 864 (1948).

14-201-323. Agents and employees.

The board, in the operation of the plant or plants or sewerage systems, from time to time may employ agents, servants, and employees as it may deem necessary in the operation of the plant and may likewise discharge such agents, servants, or employees and such others as may have been employed in the operation of the plants or sewerage systems at the time of the creation of the board. No person related by blood or marriage to any member of the board shall ever be employed by it for any purpose.

History. Acts 1939, No. 95, § 24; A.S.A. 1947, § 19-4024.

Cross References. Employees under Civil Service Commission, § 14-50-101 et seq.

14-201-324. Deposit of moneys — Bond — Checks.

  1. All moneys derived from the operation of utilities under this subchapter shall be deposited in some solvent bank whose deposits are insured by the Federal Deposit Insurance Corporation to the credit of the board. In the event any sums in excess of the amount of the insurance shall be deposited therein, the board shall require of the bank ample security for same, either in the form of United States Bonds of an amount equal to the excess or by a bond in like amount executed by some surety company authorized to do business in the State of Arkansas.
  2. The secretary and treasurer of the board shall give bond in some surety company authorized to do business in the State of Arkansas in an amount double the amount of any funds in his hands, and the bond shall be subject to the approval of all the members of the board. Before accepting the bonds herein mentioned, the chairman of the board shall investigate as to the solvency of the surety company issuing the bonds and its qualifications to do business in the State of Arkansas and shall file and incorporate in the minutes of the board the result of his findings with a resume of the evidence upon which such findings are based.
  3. All checks drawn upon the funds of the board shall be countersigned by the chairman. The checks shall be of the voucher form and shall state the purpose and consideration for which they are given.

History. Acts 1939, No. 95, § 22; A.S.A. 1947, § 19-4022.

Cross References. Self-insured fidelity bond programs, § 21-2-701 et seq.

14-201-325. Disposition of profits.

Any profits derived by any of the boards of public utilities created under this subchapter, after there has been set aside from the earnings a sum sufficient to pay all outstanding indebtedness of the plants or sewerage systems under the control of the board and a sum sufficient to provide for expenses, extensions, and enlargements found necessary, or which may be reasonably anticipated, shall be used by the board to retire any outstanding bonds or interest thereon issued by any of the boards of improvement of the district constructing the plants under its control. In case there are no such outstanding bonds or interest or when all of such outstanding bonds and interest thereon have been paid, such profits shall be paid to the treasurer of the city or town wherein the board is created. These funds are to be used by the city or town council to defray any expense or pay any debt of the city or town.

History. Acts 1939, No. 95, § 28; A.S.A. 1947, § 19-4028; Acts 2017, No. 879, § 37.

Amendments. The 2017 amendment substituted “city or town council” for “board of aldermen of the city or town” in the last sentence.

14-201-326. Enlargements of plants and systems.

  1. The board of public utilities may, in their discretion and from time to time, make an enlargement or enlargements of the plants and systems and extensions of the lines thereof as may be necessary to serve the residents of the city or town with electric lights, electric power, water, or sewerage, whether the area to be so serviced shall be included in the improvement district or not.
  2. No additional tax shall be levied upon the property within the improvement district, but the funds for that purpose may be contributed in whole or in part by outside agencies, or by the persons to be benefited, or, in the discretion of the board, the funds may be taken from the net revenue coming into its hands.

History. Acts 1939, No. 95, § 4; A.S.A. 1947, § 19-4004.

Case Notes

Bonds.

The board of public utilities may enlarge the plants and systems to extend lines of service from contributions from outside agencies, from contributions of persons benefited, or by using revenue coming into their hands, but they are not authorized to issue bonds for the purpose of raising funds to pay for these enlargements. Portis v. Board of Pub. Utils., 213 Ark. 201, 209 S.W.2d 864 (1948).

14-201-327. Sale or mortgage of plants and machinery.

No board of public utilities created under the terms of this subchapter shall ever have the right to sell, mortgage, or create any lien whatsoever upon any of the plants under its jurisdiction, except that the board, from time to time, may sell and dispose of any machinery or equipment not necessary to the maintenance or operation of the plants, and, in the purchase of any equipment for the plants, the seller may retain title to or a vendor's lien upon the property purchased from him by the board.

History. Acts 1939, No. 95, § 29; A.S.A. 1947, § 19-4029.

14-201-328. Accounting books — Annual audit.

  1. The board shall keep or cause to be kept separate books of account of each light plant, water plant, or sewerage system under its control and operation and for that purpose may employ such clerical help, bookkeepers, and accountants as may be necessary.
  2. The books of accounts shall be audited annually by a certified public accountant, licensed and engaged in the practice of accountancy in the State of Arkansas, who shall make a detailed report of his audit and file one (1) copy with the secretary of the board and one (1) copy with the city clerk or recorder of the city or town wherein the board shall be. The expenses of such audits shall be paid by the boards of public utilities from the funds derived by them from the operation of the plants or sewerage systems.

History. Acts 1939, No. 95, § 27; A.S.A. 1947, § 19-4027.

14-201-329. Suits for misappropriation or misuse of money.

Any taxpayer in any city or town in this state where this subchapter shall be adopted shall have the right to institute a suit against the board of public utilities or any member thereof for any sums of money or any property that may be misappropriated or misused by the board or any member thereof.

History. Acts 1939, No. 95, § 30; A.S.A. 1947, § 19-4030.

14-201-330. Power to sue and be sued — Hiring of attorneys.

  1. The board of public utilities may collect and receipt for and sue in its own name to recover any money, property, or right belonging to any of the utilities coming under its jurisdiction and may be sued.
  2. When any actions shall be brought by or against the board or when, in its opinion, legal advice or services are necessary, it may employ and compensate from the funds in its hands any attorneys it may deem advisable to employ.

History. Acts 1939, No. 95, § 31; A.S.A. 1947, § 19-4031.

Chapter 202 Joint Municipal Electric Power Generation

Cross References. Financing of electric facilities by municipalities and improvement districts, §§ 14-200-109, 14-216-101.

Local Government Bond Act of 1985, § 14-164-301 et seq.

Municipal electric system financing, § 14-203-101 et seq.

Effective Dates. Acts 1979, No. 5, § 20: Jan. 23, 1979. Emergency clause provided: “It is hereby found and declared that adequate, reliable and economical supplies of electric power and energy are essential to the continued health, welfare, economic growth and development of the people of the State of Arkansas who can be served by Projects completed under the provisions of this Act and that the availability of the authorities and powers granted by this Act is immediately necessary for the protection and preservation of the health, safety and welfare of the people. Therefore, an emergency is declared to exist and this act being necessary for the preservation of the public peace, health and safety shall be in force and effect from and after its passage and approval.”

Acts 1981, No. 425, § 54: Mar. 11, 1981. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 1993, Nos. 543 and 611, § 5: Mar. 16, 1993 and Mar. 22, 1993, respectively. Emergency clause provided: “It is hereby found and determined by the General Assembly that the existing law prescribing the requirements for the execution of joint municipal electric power generation revenue bonds by municipalities is unduly restrictive; that a provision broadening such law to allow for execution wholly by means of facsimile signatures is desirable in order to provide needed flexibility to municipalities; that there is an emergency need for such a provision and that an enactment of the measure will remedy this situation. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 2001, No. 988, § 5: Mar. 21, 2001. Emergency clause provided: “It is found and determined by the General Assembly that the public relies upon reasonably priced supplies of electricity and that the ability of municipalities to invest in and construct electric utility generating facilities and ensure the lowest practicable electric rates for their residents is unreasonably reduced by restriction of project partners to regulated utilities. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Research References

Ark. L. Rev.

Comment, Municipal Bonds and Amendment 62: Clearing Up a Serbonian Bog, 39 Ark. L. Rev. 499.

C.J.S. 20 C.J.S., Electr., § 8.

14-202-101. Title.

This chapter may be referred to and cited as the “Joint Municipal Electric Power Generation Act.”

History. Acts 1979, No. 5, § 1; A.S.A. 1947, § 19-5601.

14-202-102. Definitions.

As used in this chapter:

  1. “Bonds” means bonds and any series of bonds authorized by and issued pursuant to the provisions of this chapter;
  2. “Clerk” means city clerk, city recorder, town recorder, or other similar office hereafter created or established;
  3. “Costs” or “project costs” means, but shall not be limited to:
    1. All costs of acquisition, construction, reconstruction, improvement, enlargement, betterment, or extension of any project, including the costs of studies, plans, specifications, surveys, and estimates of costs and revenues relating thereto;
    2. All costs of land, land rights, rights-of-way and easements, water rights, fees, permits, approvals, licenses, certificates, and franchises, and the preparation of applications for and securing the same;
    3. Administrative, organizational, legal, engineering, and inspection expenses;
    4. Financing fees, expenses, and costs;
    5. Working capital;
    6. Initial and reload fuel costs;
    7. All machinery and equipment, including construction equipment;
    8. All costs related to upgrades on a transmission system owned by a person or an entity that are required for the delivery of power and energy from the project to the municipality;
    9. Interest on the bonds during the period of construction and for such reasonable period thereafter as may be determined by the issuing municipality;
    10. Establishment of reserves; and
    11. All other expenditures of the issuing municipality incidental, necessary, or convenient to the acquisition, construction, reconstruction, improvement, enlargement, betterment, or extension of any project and the placing of the project in operation;
  4. “Electric system” means any system for the generation, transmission, or distribution of electric power or energy;
  5. “Energy service provider” means a qualifying facility, a power broker, a power marketer, any entity other than an electric utility or a municipal electric utility, or an aggregator other than a municipality or county or group of municipalities or counties that sells or otherwise provides electricity to or for itself or a retail electric customer, regardless of whether the entity sells other electric services and regardless of whether the entity takes title to the electricity;
  6. “Governing body” means the council, board of directors, commission, or other governing body of a municipality;
  7. “Interest” or “interest in a project” means any ownership interest in a project, including, without limitation, an undivided interest as a tenant in common, an undivided leasehold interest, or an interest consisting of rights to receive an agreed-upon portion of the power and energy output of a project;
  8. “Major utility facility” means any electric generating plant and related necessary and appurtenant land rights, substation, fuel, fuel handling, processing and storage equipment, water supply facilities, and similar necessary equipment and property, whether real, personal, or mixed;
  9. “Municipality” means any city of the first class or city of the second class incorporated under the laws of this state, or any commission or agency thereof, including any municipally owned or controlled corporation or any improvement district, consolidated public or municipal utility system improvement district, or nonprofit corporation lessee of such entity which owns or operates an electric system, and any authority created under the Arkansas Municipal Electric Utility Interlocal Cooperation Act of 2003, § 25-20-401 et seq.;
  10. “Person” means any natural person, firm, corporation, electric cooperative corporation, energy service provider, nonprofit corporation, association, or improvement district;
  11. “Power requirements of the municipality” means the maximum hourly electric consumption by the municipality's retail customers;
  12. “Project” means any major utility facility owned, in whole or in part, by one (1) or more public utilities, persons, or municipalities, whether the major utility facility is located entirely or partly within, or wholly without, the state;
  13. “Public utility” means any person or entity engaged in the generation and sale of electric power and energy which was subject to regulation by the Arkansas Public Service Commission as to such generation and sale prior to the enactment of § 23-19-101 et seq. [repealed]; and
  14. “State” means the State of Arkansas.

History. Acts 1979, No. 5, § 2; A.S.A. 1947, § 19-5602; Acts 2001, No. 988, § 1; 2003, No. 366, § 3; 2007, No. 236, § 1; 2009, No. 163, § 5.

Amendments. The 2003 amendment added “and any authority created under the Arkansas Municipal Electric Utility Interlocal Cooperation Act of 2003, § 25-20-401 et seq.” at the end of (9).

The 2009 amendment rewrote (5).

14-202-103. Authorization to construct and operate project.

    1. A municipality is authorized and empowered to acquire, construct, reconstruct, enlarge, equip, operate, and maintain an interest in a project, jointly with one (1) or more municipalities, persons, or public utilities, and is authorized and empowered to enter into agreements for the joint or cooperative ownership, financing, construction, or operation and maintenance of any project, and to enter into agreements for the exchange of, and to exchange with, other municipalities, persons, or public utilities an interest in one (1) or more portions of a project for an interest in one (1) or more other portions of the project.
    2. In particular, but without limiting the generality of subdivision (a)(1) of this section, any municipality may participate in the financing of any project owned or to be owned by the other party or parties to the agreement, in exchange for the ownership of a portion thereof, for the use of the project or for an agreed-upon portion of the power and energy output thereof.
    3. Any agreement may provide for the creation of a joint board or committee for administration of the undertaking covered by the agreement or for the delegation of authority to administer an undertaking to one (1) or more parties to the agreement and may contain such other terms and conditions as the parties consider appropriate.
  1. Prior to exercising any such authority or power, the governing body of the municipality shall determine the needs of the municipality for power and energy for the present and a reasonable period in the future as shall be determined by the governing body of the municipality. In determining the desirability of a proposed project, there shall be taken into account the following:
    1. The economies, efficiencies, and revenues estimated to be achieved in acquiring, constructing, and operating the proposed project;
    2. The municipality's estimated requirements for power and energy from the project and for reserve capacity and to meet obligations under pooling and reserve sharing agreements reasonably related to its needs for power and energy to which it is or is anticipated to become a party;
    3. The cost of existing or alternative power supply sources; and
    4. The marketability of electric power in excess of the power requirements of the municipality.
  2. Any municipality is authorized to make, or cause to be made, and pay for engineering and other studies as it may deem necessary or desirable.
  3. A municipality shall not undertake the acquisition, construction, enlarging, or equipping of an interest in the project which will result in the municipality's owning electric power capacity that shall exceed two hundred fifty percent (250%) of the power requirements of the municipality.

History. Acts 1979, No. 5, § 3; A.S.A. 1947, § 19-5603; Acts 2001, No. 988, § 2; 2003, No. 366, §§ 5, 6.

Amendments. The 2003 amendment deleted the (d)(1) subdivision designation and deleted (d)(2); and deleted (e).

14-202-104. Contracts to acquire interest in project.

  1. The acquisition of an interest in a project may include the purchase or lease by mutual voluntary agreement with another person or municipality of an existing project or an interest therein or the participation in the planning, engineering, and legal aspects of preparing for the construction of and securing necessary state, local, or federal permits for the construction of a proposed project or a project on which construction begun but not been completed.
  2. Any contract entered into by a municipality with respect to an interest in, and operation of, a project shall be authorized by ordinance of the governing body of the municipality and shall contain such terms, conditions, and provisions as the governing body of the municipality shall determine to be necessary or desirable. Any contract may include, but shall not be limited to, the following:
    1. The purpose or purposes of the contract;
    2. The duration of the contract;
    3. The manner of appointing or employing the personnel necessary in connection with the project;
    4. The method of financing the project, including the apportionment of costs and revenues;
    5. Provisions specifying the ownership interests of the parties in real property, or portions thereof, used or useful in connection with the project and the procedures for the disposition of such property when the contract expires, is terminated, or when the project, for any reason, is abandoned, decommissioned, or dismantled;
    6. Provisions relating to alienation and partition of a municipality's undivided interest in a project;
    7. Provisions permitting or requiring the exchange by the municipality with other municipalities, persons, or public utilities of an interest in one (1) or more portions of a project for an interest in one (1) or more other portions of the project and specifying the procedure therefor;
    8. Appropriate provisions pertaining to the details of accomplishing the acquisition, including provisions that authorize a person, including one (1) of the parties to the contract, a public utility, or a third party, to construct the project as agent for all the parties;
    9. Provisions for the operation and maintenance of a project, including provisions that authorize a person, including one (1) of the parties to the contract, a public utility, or a third party, to operate and maintain the project as agent for all the parties;
    10. Provisions that if one (1) or more of the parties shall default in the performance or discharge of its or their obligations with respect to the project, one (1) or more of the other parties shall assume, pro rata, or otherwise, the obligations of such defaulting party or parties and succeed to such rights and interests of the defaulting parties in the project as may be agreed upon in the contract;
    11. Methods of amending the contract;
    12. Methods for terminating the contract; and
    13. Any other necessary or proper matter.
  3. It shall not be necessary for the municipality to publish any such contract if the ordinance authorizing the contract is published as required by law governing the publication of ordinances of a municipality, the ordinance advises that a copy of the contract is on file in the office of the clerk of the municipality for inspection by any interested person, and the copy of the contract is filed with the clerk of the municipality.

History. Acts 1979, No. 5, § 4; A.S.A. 1947, § 19-5604; Acts 2001, No. 988, § 3; 2007, No. 236, § 2.

Amendments. The 2001 amendment, in (a), substituted “may include” for “shall include,” and inserted “or municipality.”

14-202-105. Sale of excess capacity.

Capacity or output derived by a municipality from a project not then required by the municipality may be sold or exchanged by the municipality, for such consideration, for such period, and upon such other terms and conditions as may be determined by the parties to any other municipality, improvement district, federal or state political subdivision or agency, or other person, which other municipality, improvement district, federal or state political subdivision or agency, or other person owns an electric system or electric system facilities whether operated by it, or by a person under a franchise, lease, or other agreement.

History. Acts 1979, No. 5, § 5; A.S.A. 1947, § 19-5605; Acts 2007, No. 236, § 3.

14-202-106. Acquisition of licenses and permits.

  1. Municipalities proceeding under this chapter are authorized to apply to the appropriate agencies of the state, the United States or any state thereof, and to any other proper agency for such licenses, permits, certificates, or approvals as may be necessary, and to obtain, hold and use such licenses, permits, certificates, and approvals.
  2. Nothing in this chapter shall be construed to require a municipality to obtain any license, certificate, permit, or approval from the Arkansas Public Service Commission not otherwise required by other laws of the State of Arkansas.

History. Acts 1979, No. 5, § 6; A.S.A. 1947, § 19-5606.

14-202-107. Contracts to exchange and transmit electric power.

Municipalities are authorized to enter into contracts for the exchange, interchange, wheeling, pooling, and transmission of electric power and energy produced by a project with any other municipality, improvement district, federal or state political subdivision or agency, or other person which owns an electric system, or electric system facilities, whether operated by it or by a person under a franchise, lease, or other agreement.

History. Acts 1979, No. 5, § 7; A.S.A. 1947, § 19-5607.

14-202-108. Bonds — Issuance generally.

  1. Municipalities are authorized to use any available funds and revenues to pay and provide for costs and expenses of accomplishing the purposes authorized by this chapter and, for the purpose of paying project costs or the portion thereof pertaining to its interest in the project, a municipality may issue revenue bonds as provided in this chapter.
  2. The issuance of bonds shall be by an ordinance of the governing body of the municipality.

History. Acts 1979, No. 5, § 8; 1981, No. 425, § 45; A.S.A. 1947, § 19-5608.

14-202-109. Bonds — Terms and conditions.

  1. As the ordinance may provide, the bonds may:
    1. Be coupon bonds payable to bearer, subject to registration as to principal or as to principal and interest, or fully registered bonds without coupons;
    2. Contain exchange privileges;
    3. Be issued in one (1) or more series;
    4. Bear such date or dates;
    5. Mature at such time or times;
    6. Bear interest at such rate or rates;
    7. Be in such form;
    8. Be executed in such manner;
    9. Be payable in such medium of payment, at such place or places;
    10. Be subject to such terms of redemption in advance of maturity at such prices; and
    11. Contain such terms, covenants, and conditions including without limitation, those pertaining to:
      1. The custody and application of the proceeds of the bonds;
      2. The collection and disposition of revenues;
      3. The maintenance of various funds and reserves;
      4. The investing and reinvesting of any moneys during periods not needed for authorized purposes;
      5. The nature and extent of the security;
      6. The rights, duties, and obligations of the municipality and the trustee for the holders or registered owners of the bonds; and
      7. The rights of the holders or registered owners of the bonds.
  2. The bonds shall have all the qualities of negotiable instruments under the laws of this state, subject to the provisions for registration set forth herein.

History. Acts 1979, No. 5, § 8; 1981, No. 425, § 45; A.S.A. 1947, § 19-5608.

14-202-110. Bonds — Trust indenture.

  1. The ordinance may provide for the execution of a trust indenture by the municipality with a bank or trust company within or without the state.
  2. The trust indenture may control the priority between successive issues and may contain any other terms, covenants, and conditions that are deemed desirable by the governing body including, without limitation, those pertaining to the custody and application of the proceeds of the bonds, the collection and disposition of revenues, the maintenance of various funds and reserves, the investing and reinvesting of any moneys during periods not needed for authorized purposes, the nature and extent of the security, the rights, duties, and obligations of the municipality and the trustee for the holders or registered owners of the bonds, and the rights of the holders or registered owners of the bonds.
  3. It shall not be necessary for the municipality to publish any trust indenture, or any security agreement or other instrument, if the ordinance authorizing the trust indenture or security agreement or other instrument is published as required by the law governing the publication of ordinances of a municipality, and the ordinance advises that a copy of the trust indenture or security agreement or other instrument, as the case may be, is on file in the office of the clerk of the municipality for inspection by any interested person, and the copy of the trust indenture or security agreement or other instrument, as the case may be, is filed with the clerk of the municipality.

History. Acts 1979, No. 5, § 8; 1981, No. 425, § 45; A.S.A. 1947, § 19-5608.

14-202-111. Bonds — Sale.

The bonds may be sold at public or private sale for whatever price including, without limitation, sale at a discount, and in whatever manner as the municipality may determine by ordinance.

History. Acts 1979, No. 5, § 8; 1981, No. 425, § 45; A.S.A. 1947, § 19-5608.

14-202-112. Bonds, coupons — Execution and seal.

      1. Bonds issued hereunder shall be executed by the manual or facsimile signatures of the mayor and clerk of the municipality.
      2. Any coupons attached to the bonds may be executed by the facsimile signature of the mayor of the municipality.
    1. In case any of the officers whose signatures appear on the bonds or coupons shall cease to be officers before the delivery of the bonds or coupons, their signatures shall, nevertheless, be valid and sufficient for all purposes.
  1. The seal of the municipality shall be placed or printed on each bond in such manner as the governing body of the municipality shall determine.

History. Acts 1979, No. 5, § 8; 1981, No. 425, § 45; A.S.A. 1947, § 19-5608; Acts 1993, No. 543, § 1; 1993, No. 611, § 1; 2007, No. 236, § 4.

Amendments. The 1993 amendment by identical acts Nos. 543 and 611 deleted “provided that one of the signatures must be manual” at the end of (a)(1)(A).

14-202-113. Bonds — Priority among issues.

Priority between and among successive issues may be controlled by the ordinance.

History. Acts 1979, No. 5, § 8; 1981, No. 425, § 45; A.S.A. 1947, § 19-5608.

14-202-114. Bonds — Mortgage lien.

  1. The ordinance or trust indenture authorizing or securing any bonds issued hereunder may impose a foreclosable mortgage lien upon the interest of the municipality in the project financed in whole or in part with the proceeds of the bonds or upon all or any part of the electric system of the municipality.
  2. The nature and extent of the mortgage lien may be controlled by the ordinance or trust indenture, including, without limitation, provisions pertaining to the release of all or part of the project properties or the electric system, as the case may be, from the mortgage lien and the priority of the mortgage lien in the event of the issuance of additional bonds.
  3. Subject to whatever terms, conditions, and restrictions may be contained in the ordinance or trust indenture, any holder or registered owner of bonds issued under this chapter, or of any coupon attached thereto, may, either at law or in equity, enforce the mortgage lien and may, by proper suit, compel the performance of the duties of the officials of the municipality set forth in the ordinance or trust indenture authorizing or securing the bonds.

History. Acts 1979, No. 5, § 8; 1981, No. 425, § 45; A.S.A. 1947, § 19-5608.

14-202-115. Bonds — Default — Receiver.

  1. In the event of a default in the payment of the principal of, premium, if any, or interest on any bonds issued under this chapter, any court having jurisdiction may appoint a receiver to take charge of all or any part of the electric system of the municipality.
  2. The receiver shall have the power to operate and maintain the electric system and to charge and collect rates, fees, and charges sufficient to provide for the payment of the principal of, premium, if any, and interest on the bonds, after providing for the payment of any costs of receivership and operating expenses of the electric system, and to apply the revenues derived from the electric system in conformity with this chapter and the ordinance or trust indenture authorizing or securing the bonds.
  3. When the default has been cured, the receivership shall be ended and the electric system returned to the municipality.
  4. The authority of a receiver hereunder to take charge of, operate, or maintain any part of the electric system represented by an undivided interest in a project, shall be subject to the provisions of any and all contracts with others relative to the ownership, operation, and maintenance of the project and the receiver shall assume only the rights and obligations of the municipality therein.
  5. The relief afforded by this section shall be construed to be in addition and supplemental to the remedies that may be afforded the trustee for the bondholders and the bondholders in the ordinance or trust indenture authorizing or securing the bonds and shall be granted and administered so as to accord full recognition to priority rights of bondholders as the pledge of revenues from, and the mortgage lien on, the electric system as specified in and fixed by the ordinances or trust indentures authorizing or securing successive bond issues.

History. Acts 1979, No. 5, § 8; 1981, No. 425, § 45; A.S.A. 1947, § 19-5608.

14-202-116. Bonds — Nature of indebtedness.

  1. The bonds and coupons issued under this chapter shall not be general obligations of the municipality, but shall be special obligations payable from and secured by a pledge of revenues derived from the municipality's electric system and otherwise secured as provided in this chapter.
  2. In no event shall the bonds and coupons constitute an indebtedness of the municipality within the meaning of any constitutional or statutory limitation.
  3. It shall be plainly stated on the face of each bond that it has been issued under the provisions of this chapter and that it does not constitute an indebtedness of the municipality within any constitutional or statutory limitation.

History. Acts 1979, No. 5, § 9; A.S.A. 1947, § 19-5609.

14-202-117. Refunding bonds.

  1. Bonds may be issued for the purpose of refunding any bonds issued under this chapter. Refunding bonds may be combined with bonds issued under the provisions of §§ 14-202-108 — 14-202-115 into a single issue.
  2. When refunding bonds are issued, they may either be sold or delivered in exchange for the bonds being refunded. If sold, the proceeds may be either applied to the payment of the bonds being refunded or deposited in escrow for the retirement thereof.
  3. All refunding bonds shall in all respects be issued and secured in the manner provided for other bonds issued under this chapter and shall have all the attributes of those bonds.
  4. The ordinance under which the refunding bonds are issued may provide that any of the refunding bonds shall have the same priority of lien on and security interest in electric system revenues and the electric system as was enjoyed by the bonds refunded thereby.

History. Acts 1979, No. 5, § 10; A.S.A. 1947, § 19-5610.

14-202-118. Rates, fees, and charges — Disposition — Pledges.

    1. A municipality is authorized to fix, charge, and collect rates, fees, and charges for electric power and energy from its electric system.
    2. For so long as any bonds are outstanding and unpaid, the rates, fees, and charges shall be fixed so as to provide revenues sufficient to pay all costs of and charges and expenses in connection with the proper operation and maintenance of its electric system, including its interest in any project, and all necessary repairs, replacements, or renewals thereof, to pay when due the principal of, premium, if any, and interest on all bonds, including bonds subsequently issued for additional projects or other additions, improvements, and betterments to its electric system, payable from the revenues, to create and maintain reserves as may be required by any ordinance or trust indenture authorizing or securing bonds, and to pay any and all amounts which the municipality may be obligated to pay from electric system revenues by law or contract.
  1. Any pledge made by a municipality pursuant to this chapter shall be valid and binding from the date the pledge is made. The revenues so pledged and then held or thereafter received by the municipality or any fiduciary on its behalf shall immediately be subject to the lien of the pledge without any physical delivery thereof or further act. The lien of the pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the municipality without regard to whether the parties have notice thereof. The ordinance, trust indenture, or other instrument by which a pledge is created need not be filed or recorded in any manner.

History. Acts 1979, No. 5, § 11; A.S.A. 1947, § 19-5611.

14-202-119. Enforcement of rights under ordinance or trust indenture.

Any holder or registered owner of bonds or coupons appertaining thereto, except to the extent the rights given under this chapter may be restricted by the ordinance or trust indenture authorizing or securing the bonds and coupons, may, either at law or in equity, by suit, action, mandamus, or other proceeding, protect and enforce any and all rights under the laws of this state or granted as provided in this chapter, or, to the extent permitted by law, under such ordinance or trust indenture authorizing or securing the bonds or under any agreement or other contract executed by the municipality pursuant to this chapter. The holder or owner may enforce and compel the performance of all duties required by this chapter or by the ordinance or trust indenture to be performed by any municipality or by any officer thereof, including the fixing, charging, and collecting of rates, fees, and charges.

History. Acts 1979, No. 5, § 12; A.S.A. 1947, § 19-5612.

14-202-120. Bonds and projects — Tax exemption.

  1. Bonds issued under the provisions of this chapter, and the interest thereon, shall be exempt from all state, county, and municipal taxes, including property, income, inheritance, and estate taxes.
  2. Any interest in a project of a municipality shall be exempt from all state, county, and municipal taxes, including property, income, inheritance, and estate taxes.

History. Acts 1979, No. 5, §§ 13, 14; A.S.A. 1947, §§ 19-5613, 19-5614.

14-202-121. Investment of public funds in bonds.

Any municipality, or any board, commission, or other authority duly established by ordinance of any municipality, or the boards of trustees, respectively, of the firemen's relief and pension fund and the policemen's pension and relief fund of any municipality, or the board of trustees of any retirement system created by the General Assembly may, in its discretion, invest any of its funds in bonds issued under the provisions of this chapter, and bonds issued under the provisions of this chapter shall be eligible to secure the deposit of public funds.

History. Acts 1979, No. 5, § 15; A.S.A. 1947, § 19-5615.

14-202-122. Contracts for grants-in-aid and loans.

The governing body of any municipality is authorized to make application and to enter into contracts for and to accept grants-in-aid and loans from the United States and the State of Arkansas, and their agencies, for planning, acquiring, constructing, expanding, maintaining, and operating any project or electric system or participating in any research or development program, or performing any function which the municipality may be authorized by law to provide or perform.

History. Acts 1979, No. 5, § 16; A.S.A. 1947, § 19-5616.

14-202-123. Exemption of projects from other laws.

Participation by a municipality in the acquisition, construction, reconstruction, enlargement, equipment, or operation and maintenance of projects under the provisions of this chapter need not comply with the requirements of any other law applicable to the acquisition, construction, reconstruction, enlargement, equipment, or operation and maintenance of public works or facilities, including, without limitation, laws pertaining to public bidding, paying prevailing wages, transfer or exchange of title to real or personal property, or any other aspect of the acquiring, constructing, reconstructing, enlarging, equipping, or operation or maintenance of public works or public projects, or transfer or exchange of title to real or personal property, none of which laws shall be applicable to projects under this chapter.

History. Acts 1979, No. 5, § 17; A.S.A. 1947, § 19-5617.

Chapter 203 Municipal Electric System Financing

Cross References. Financing of electric facilities by municipalities and improvement districts, §§ 14-200-109, 14-216-101.

Joint municipal electric power generation, § 14-202-101 et seq.

Local Government Bond Act of 1985, § 14-164-301 et seq.

Municipalities and counties hydroelectric power development, § 14-204-101 et seq.

Operation of municipal electric light plant and system, § 14-201-101 et seq.

Effective Dates. Acts 1983, No. 441, § 13: Mar. 13, 1983. Emergency clause provided: “It is hereby found and declared that adequate, reliable and economical supplies of electric power and energy are essential to the continued health, welfare, economic growth and development of the people of the State of Arkansas who can be served by Electric Systems financed under the provisions of this Act and that the availability of the authorities and powers granted by this Act is immediately necessary for the protection and preservation of the health, safety and welfare of the people. Therefore, an emergency is declared to exist and this Act being necessary for the preservation of the public peace, health and safety shall be in force and effect from and after its passage and approval.”

Acts 1987, No. 479, § 4: Mar. 31, 1987. Emergency clause provided: “It is hereby found and determined by the General Assembly that adequate, reliable and economical supplies of electric power and energy are essential to the continued health, welfare, safety, economic growth and development of the State of Arkansas and its people and that the availability of the authorities and powers granted by this act is immediately necessary for the accomplishment and realization of such public benefits. Therefore, an emergency is hereby declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1987, No. 735, § 3: Apr. 7, 1987. Emergency clause provided: “It is hereby found and declared that adequate, reliable and economic supplies of electric power and energy are essential to the continued health, welfare, economic growth and development of the people of the State of Arkansas who can be served by Electric Systems financed under the provisions of this Act and that the authority of municipalities to fix electric rates so as to provide sufficient revenue to secure payments under a contract for the purchase of electric power and energy is immediately necessary for the protection and preservation of the health, safety and welfare of the people. Therefore, an emergency is declared to exist and this Act being necessary for the preservation of the public peace, health, and safety, shall be in force and effect from and after its passage and approval.”

Research References

C.J.S. 87 C.J.S., Towns, § 161.

14-203-101. Title.

This chapter may be referred to and cited as the “Municipal Electric System Financing Act.”

History. Acts 1983, No. 441, § 1; A.S.A. 1947, § 19-6001.

14-203-102. Definitions.

As used in this chapter, unless the context otherwise requires:

  1. “Bonds” means bonds and any series of bonds authorized by and issued pursuant to the provisions of this chapter;
  2. “Clerk” means city clerk, city recorder, town recorder, or other similar office hereafter created or established;
  3. “Costs” means, but shall not be limited to:
    1. All costs of acquisition, construction, reconstruction, improvement, enlargement, betterment, or extension of any electric system, including the costs of studies, plans, specifications, surveys, and estimates of costs and revenues relating thereto;
    2. All costs of land, land rights, rights-of-way and easements, water rights, fees, permits, approvals, licenses, certificates, franchises, and the preparation of applications for and securing them;
    3. Administrative, organizational, legal, engineering, and inspection expenses;
    4. Financing fees, expenses, and costs;
    5. Working capital;
    6. Initial and reload fuel costs;
    7. Contracts for the purchase of electric power and energy from others;
    8. All machinery and equipment including construction equipment;
    9. Interest on the bonds during the period of construction and for such reasonable period thereafter as may be determined by the issuing municipality;
    10. Establishment of reserves; and
    11. All other expenditures of the issuing municipality incidental, necessary, or convenient to the acquisition, construction, reconstruction, improvement, enlargement, betterment, or extension of any electric system;
  4. “Electric system” means any system for the generation, transmission, or distribution of electric power or energy;
  5. “Governing body” means the council, board of directors, commission, or other governing body of a municipality;
  6. “Municipality” means any city of the first class which owns an electric system whether operated by it or by a person under a franchise, lease, or other agreement or arrangement between the municipality and such person;
  7. “Person” means any natural person, firm, corporation, electric cooperative corporation, nonprofit corporation, association, or improvement district; and
  8. “State” means the State of Arkansas.

History. Acts 1983, No. 441, § 2; A.S.A. 1947, § 19-6002.

14-203-103. Scope of chapter.

  1. Nothing in this chapter shall be construed as modifying or diminishing the present authority of municipalities respecting the ownership and operation of their electric systems including, without limitation, the authority contained in §§ 14-202-101 — 14-202-123 and §§ 14-204-101 — 14-204-112.
  2. Nothing in this chapter shall be construed to authorize any municipality to issue or sell bonds under the provisions of this chapter or to use the proceeds thereof to purchase, condemn, or otherwise acquire a utility plant or distribution system or portion thereof owned or operated by a regulated public utility without the consent of such public utility.

History. Acts 1983, No. 441, §§ 10, 11; A.S.A. 1947, §§ 19-6010, 19-6011.

14-203-104. Authorization to finance electric system.

Municipalities are authorized to use any available funds and reserves to pay and provide for costs and expenses of owning and operating an electric system and, for the purpose of paying electric system costs, a municipality may issue revenue bonds as provided in this chapter.

History. Acts 1983, No. 441, § 3; A.S.A. 1947, § 19-6003.

14-203-105. Bonds — Issuance generally.

The issuance of bonds shall be by an ordinance of the governing body of the municipality.

History. Acts 1983, No. 441, § 3; A.S.A. 1947, § 19-6003.

14-203-106. Bonds — Terms and conditions.

  1. As the ordinance may provide, the bonds may:
    1. Be coupon bonds payable to bearer, subject to registration as to principal or as to principal and interest, or fully registered bonds without coupons;
    2. Contain exchange privileges, and be issued in one (1) or more series;
    3. Bear such date or dates;
    4. Mature at such time or times;
    5. Bear interest at such rate or rates;
    6. Be in such form;
    7. Be executed in such manner;
    8. Be payable in such medium of payment, at such place or places;
    9. Be subject to such terms of redemption in advance of maturity at whatever prices; and
    10. Contain such terms, covenants, and conditions; including without limitation, those pertaining to:
      1. The custody and application of the proceeds of the bonds;
      2. The collection and disposition of revenues;
      3. The maintenance of various funds and reserves;
      4. The investing and reinvesting of any moneys during periods not needed for authorized purposes;
      5. The nature and extent of the security;
      6. The rights, duties, and obligations of the municipality and the trustee for the holders or registered owners of the bonds; and
      7. the rights of the holders or registered owners of the bonds.
  2. The bonds shall have all the qualities of negotiable instruments under the laws of this state, subject to the provisions for registration set forth herein.

History. Acts 1983, No. 441, § 3; A.S.A. 1947, § 19-6003.

14-203-107. Bonds — Trust indenture.

  1. The ordinance may provide for the execution of a trust indenture by the municipality with a bank or trust company within or without the state.
  2. The trust indenture may control the priority between successive issues and may contain any other terms, covenants, and conditions that are deemed desirable by the governing body including, without limitation, those pertaining to the custody and application of the proceeds of the bonds, the collection and disposition of revenues, the maintenance of various funds and reserves, the investing and reinvesting of any moneys during periods not needed for authorized purposes, the nature and extent of the security, the rights, duties, and obligations of the municipality and the trustee for the holders or registered owners of the bonds, and the rights of the holders or registered owners of the bonds.
  3. It shall not be necessary for the municipality to publish any trust indenture, or any security agreement or other instrument, if the ordinance authorizing the trust indenture or security agreement or other instrument is published as required by the law governing the publication of ordinances of a municipality. The ordinance advises that a copy of the trust indenture or security agreement or other instrument, as the case may be, is on file in the office of the clerk of the municipality for inspection by an interested person, and the copy of the trust indenture or security agreement or other instrument, as the case may be, is filed with the clerk of the municipality.

History. Acts 1983, No. 441, § 3; A.S.A. 1947, § 19-6003.

14-203-108. Bonds — Sale.

The bonds may be sold at public or private sale, for whatever price, including, without limitation, sale at a discount, and in whatever manner that the municipality may determine by ordinance.

History. Acts 1983, No. 441, § 3; A.S.A. 1947, § 19-6003.

14-203-109. Bonds, coupons — Execution — Seal.

      1. Bonds issued under this chapter shall be executed by the manual or facsimile signatures of the mayor and clerk of the municipality.
      2. The coupons attached to the bonds may be executed by the facsimile signature of the mayor of the municipality.
    1. In case any of the officers whose signatures appear on the bonds or coupons shall cease to be officers before the delivery of the bonds or coupons, their signatures shall, nevertheless, be valid and sufficient for all purposes.
  1. The seal of the municipality shall be placed or printed on each bond in such manner as the governing body of the municipality shall determine.

History. Acts 1983, No. 441, § 3; A.S.A. 1947, § 19-6003.

14-203-110. Bonds — Priority among issues.

Priority between successive issues may be controlled by the ordinance.

History. Acts 1983, No. 441, § 3; A.S.A. 1947, § 19-6003.

14-203-111. Bonds — Nature of indebtedness — Surplus revenues.

  1. The bonds and coupons issued under this chapter shall not be general obligations of the municipality, but shall be special obligations payable from and secured by a pledge of revenues derived from the municipality's electric system and otherwise secured as provided in this chapter. In no event shall the bonds and coupons constitute an indebtedness of the municipality within the meaning of any constitutional or statutory limitation.
  2. It shall be plainly stated on the face of each bond that the bond has been issued under the provisions of this chapter and that it does not constitute an indebtedness of the municipality within any constitutional or statutory limitation.
    1. In addition, the municipality is authorized to pledge to and use for the payment of the principal of and interest on the bonds, together with other expenses in connection with the bonds, surplus revenues derived from water, sewer, and gas utilities owned by the municipality.
    2. “Surplus revenues”, as used in this subsection, is defined to mean revenues remaining after adequate provision shall have been made for expenses of operation, maintenance, and depreciation and all requirements of ordinances, orders, and indentures securing bonds theretofore or thereafter issued to finance the cost of acquiring, constructing, reconstructing, extending, or improving the utilities have been fully met and complied with.

History. Acts 1983, No. 441, § 4; A.S.A. 1947, § 19-6004; Acts 1987, No. 479, § 1.

14-203-112. Refunding bonds.

    1. Bonds may be issued for the purpose of refunding any bonds issued under this chapter. Any bonds issued under other applicable legislation payable from and secured by, in whole or in part, a pledge of revenues derived from the municipality's electric system.
    2. The refunding bonds may be combined with bonds issued under the provisions of §§ 14-203-104, 14-203-110, 14-203-113, and 14-203-114 into a single issue.
  1. When refunding bonds are issued, such bonds may either be sold or delivered in exchange for the bonds being refunded. If sold, the proceeds may be either applied to the payment of the bonds being refunded or deposited in escrow for the retirement thereof.
  2. All refunding bonds shall in all respects be issued and secured in the manner provided for other bonds issued under this chapter and shall have all the attributes of such bonds.
  3. The ordinance or trust indenture under which such refunding bonds are issued may provide that any of the refunding bonds shall have the same priority of lien on and security interest in electric system revenues and the electric system as was enjoyed by the bonds refunded thereby.

History. Acts 1983, No. 441, § 5; A.S.A. 1947, § 19-6005; Acts 1987, No. 479, § 2.

14-203-113. Bonds — Mortgage lien.

  1. The ordinance or trust indenture authorizing or securing any bonds issued under this chapter may impose a foreclosable mortgage lien upon all or any part of the electric system of the municipality.
  2. The nature and extent of the mortgage lien may be controlled by the ordinance or trust indenture including, without limitation, provisions pertaining to the release of all or part of the electric system from the mortgage lien and the priority of the mortgage lien in the event of the issuance of additional bonds.
  3. Subject to such terms, conditions, and restrictions as may be contained in the ordinance or trust indenture, any holder or registered owner of bonds issued under this chapter, or of any coupon attached thereto, may, either at law or in equity, enforce the mortgage lien and may, by proper suit, compel the performance of the duties of the officials of the municipality set forth in the ordinance or trust indenture authorizing or securing the bonds.

History. Acts 1983, No. 441, § 3; A.S.A. 1947, § 19-6003.

14-203-114. Bonds — Default — Receiver.

  1. In the event of a default in the payment of the principal of, premium, if any, or interest on any bonds issued under this chapter, any court having jurisdiction may appoint a receiver to take charge of all or any part of the electric system of the municipality.
  2. The receiver shall have the power to operate and maintain the electric system and to charge and collect rates, fees, and charges sufficient to provide for the payment of the principal of, premium, if any, and interest on the bonds, after providing for the payment of any costs of receivership and operating expenses of the electric system, and to apply the revenues derived from the electric system in conformity with this chapter and the ordinance or trust indenture authorizing or securing the bonds.
  3. When the default has been cured, the receivership shall be ended and the electric system shall be returned to the municipality.
  4. The relief afforded by this section shall be construed to be in addition and supplemental to the remedies that may be afforded the trustee for the bondholders and the bondholders in the ordinance or trust indenture authorizing or securing the bonds and shall be so granted and administered as to accord full recognition to priority rights of bondholders as the pledge of revenues from, and the mortgage lien on, the electric system as specified in and fixed by the ordinances or trust indentures authorizing or securing successive bond issues.

History. Acts 1983, No. 441, § 3; A.S.A. 1947, § 19-6003.

14-203-115. Rates, fees, and charges — Disposition — Pledges.

  1. For so long as any bonds are outstanding and unpaid, the rates, fees, and charges for electric power and energy charged and collected by a municipality shall be so fixed as to provide revenues sufficient to pay all costs of and charges and expenses in connection with the proper operation and maintenance of its electric system, and all necessary repairs, replacements, or renewals thereof, to pay when due the principal of, premium, if any, and interest on all bonds, including bonds subsequently issued for additions, improvements, and betterments to its electric system, payable from such revenues, to create and maintain reserves as may be required by any ordinance or trust indenture authorizing or securing bonds, and to pay any and all amounts which the municipality may be obligated to pay from electric system revenues by law or contract.
  2. For so long as any contract for the purchase of electric power and energy is in effect, the rates, fees, and charges for electric power and energy charged and collected by a municipality may be fixed to provide sufficient revenues to secure payments of amounts due under the contract and to comply with the terms of the contract. Any contract shall be approved by ordinance of the governing body of the purchasing municipality, and the ordinance shall be published one (1) time in a newspaper of general circulation in the municipality. Any contest of the ordinance shall be barred at the end of thirty (30) days after the ordinance is published.
  3. Any pledge made by a municipality pursuant to this chapter shall be valid and binding from the date the pledge is made. The revenues so pledged and then held or thereafter received by the municipality or any fiduciary on its behalf shall immediately be subject to the lien of the pledge without any physical delivery thereof or further act, and the lien of the pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the municipality without regard to whether the parties have notice thereof.
  4. The ordinance, trust indenture, or other instrument by which a pledge is created need not be filed or recorded in any manner.

History. Acts 1983, No. 441, § 6; A.S.A. 1947, § 19-6006; Acts 1987, No. 735, § 1.

14-203-116. Rights of holder or owner of bonds.

Any holder or registered owner of bonds or coupons appertaining thereto, except to the extent the rights given in this chapter may be restricted by the ordinance or trust indenture authorizing or securing such bonds and coupons, may, either at law or in equity, by suit, action, mandamus, or other proceeding, protect and enforce any and all rights under the laws of the state or granted hereunder, or, to the extent permitted by law, under such ordinance or trust indenture authorizing or securing such bonds or under any agreement or other contract executed by the municipality pursuant to this chapter, and may enforce and compel the performance of all duties required by this chapter or by such ordinance or trust indenture to be performed by any municipality or by any officer thereof, including the fixing, charging, and collecting of rates, fees, and charges.

History. Acts 1983, No. 441, § 7; A.S.A. 1947, § 19-6007.

14-203-117. Bonds — Tax exemption.

Bonds issued under the provisions of this chapter, and the interest thereon, shall be exempt from all state, county, and municipal taxes, including property, income, inheritance, and estate taxes.

History. Acts 1983, No. 441, § 8; A.S.A. 1947, § 19-6008.

14-203-118. Investment of public funds in bonds.

Any municipality, or any board, commission, or other authority duly established by ordinance of any municipality, or the boards of trustees, respectively, of the firemen's relief and pension fund and the policemen's pension and relief fund of any municipality, or the board of trustees of any retirement system created by the General Assembly may, in its discretion, invest any of its funds in bonds issued under the provisions of this chapter. Bonds issued under the provisions of this chapter shall be eligible to secure the deposit of public funds.

History. Acts 1983, No. 441, § 9; A.S.A. 1947, § 19-6009.

Chapter 204 Municipal And County Hydroelectric Power Development

Cross References. Financing of electric facilities by municipalities and improvement districts, §§ 14-200-109, 14-216-101.

Local Government Bond Act of 1985, § 14-164-301 et seq.

Municipal electric system financing, § 14-203-101 et seq.

Effective Dates. Acts 1981 (Ex. Sess.), No. 17, § 15: Nov. 25, 1981. Emergency clause provided: “It has been found and it is hereby declared that a number of Arkansas municipalities and counties are located near prospective sites for hydroelectric power projects, that such projects appear to be a potential source of badly needed electrical energy and that action must be taken immediately in some instances if the potentiality of these sites is to be fully realized. Therefore, an emergency is declared and this Act, being necessary for the preservation of the public peace, health and safety, shall be in force upon its passage and approval.”

Research References

Ark. L. Rev.

Comment, Municipal Bonds and Amendment 62: Clearing Up a Serbonian Bog, 39 Ark. L. Rev. 499.

14-204-101. Title.

This chapter may be referred to and may be cited as the “Municipalities and Counties Hydroelectric Power Development Revenue Bond Law.”

History. Acts 1981 (Ex. Sess.), No. 17, § 1; A.S.A. 1947, § 19-5801.

14-204-102. Definitions.

As used in this chapter, unless the context otherwise requires:

  1. “Construct” means to acquire or build, in whole or in part, in such manner and by such method, including contracting therefor, and, if the latter, by negotiation or bidding upon such terms and pursuant to such advertising as the municipality or county shall determine to be in the public interest and necessary under the circumstances existing at the time, to accomplish the purposes of and authorities set forth in this chapter;
  2. “County” means any county of this state, regardless of whether such county owns any facilities for the transmission or distribution of electrical energy;
  3. “Equip” means to install or place on or in any building or structure equipment of any and every kind, whether or not affixed including, without limiting the generality of the foregoing, building service equipment, machinery, furniture, furnishings, and personal property of every kind;
  4. “Facilities” means any real property, personal property, or mixed property of any and every kind that can be used or that will be useful as a part of or in connection with a hydroelectric power project, including, without limiting the generality of the foregoing, rights-of-way, roads, streets, pipes, pipelines, reservoirs, utilities, materials, equipment, fixtures, machinery, furniture, furnishings, instrumentalities, and other real, personal, or mixed property of every kind;
  5. “Governing body” means the council, board of directors, or city commission of any municipality;
  6. “Hydroelectric power project” or “project” means any facilities intended to be employed in the generation of electrical energy by the use of water as the source of generating power, whether standing, running, or falling, and facilities incidental or related thereto;
  7. “Lease” means to lease for such rentals, for such periods and upon such terms and conditions as the municipality or county shall determine including, without limiting the generality of the foregoing, the granting of such renewal or extension options for such rentals, for such periods and upon such terms and conditions as the municipality or county shall determine and the granting of such purchase options for such prices and upon such terms and conditions as the municipality or county shall determine;
  8. “Loan” or “make loans” means to loan upon such terms and conditions as the municipality or county shall determine;
  9. “Mortgage lien” includes and means security interest in any personal property embodied in the facilities acquired, constructed, reconstructed, extended, equipped, or improved, in whole or in part, with the proceeds of bonds issued under this chapter;
  10. “Municipality” means a city of the first or second class or an incorporated town, regardless of whether such municipality owns any facilities for the transmission or distribution of electrical energy;
  11. “Sell” means to sell for such price, in such manner and upon such terms as the municipality or county shall determine including, without limiting the generality of the foregoing, private or public sale, and, if public, pursuant to such advertisement as the municipality or county shall determine, sale for cash or credit payable in lump sum or in installments over such period as the municipality or county shall determine and, if on credit, with or without interest and at such rate or rates as the municipality or county shall determine; and
  12. “State” means the State of Arkansas.

History. Acts 1981 (Ex. Sess.), No. 17, §§ 7, 11; A.S.A. 1947, §§ 19-5807, 19-5811.

14-204-103. Construction.

  1. This chapter shall be liberally construed to accomplish the purposes hereof and shall be the sole act and authority necessary to be complied with.
  2. This chapter and the authority conferred by it shall be supplemental to all other authority set forth in any other act.

History. Acts 1981 (Ex. Sess.), No. 17, § 12; A.S.A. 1947, § 19-5812.

14-204-104. Authorization to own and operate hydroelectric power project — Contracts to supply energy.

  1. Any municipality and any county is authorized to own, acquire, construct, reconstruct, extend, equip, improve, operate, maintain, sell, lease, contract concerning, or otherwise deal in or dispose of, or make loans to finance the acquisition, construction, reconstruction, extension, equipment, improvement of, facilities to constitute all or any part of a hydroelectric power project, as defined in § 14-204-102.
  2. Without limiting the generality of the foregoing, any municipality or county is authorized to contract with any regulated public utility for the supplying of electrical energy produced by any such project, upon terms acceptable to such municipality or county.

History. Acts 1981 (Ex. Sess.), No. 17, § 2; A.S.A. 1947, § 19-5802.

14-204-105. Authorization to issue bonds.

  1. Municipalities and counties are authorized to use any available revenues for the accomplishment of the purposes set forth in § 14-204-104 and are authorized to issue revenue bonds and to use the proceeds thereof for the accomplishment of the purposes set forth in § 14-204-104, either alone or together with other available funds and revenues.
  2. The amount of bonds issued shall be sufficient to pay all costs of accomplishing such purposes, all costs of issuing the bonds, the amount necessary for a reserve, if desirable, the amount necessary to provide for debt service on the bonds until revenues for the payment thereof are available, and any other costs of whatever nature incidental to the accomplishment of such purposes.

History. Acts 1981 (Ex. Sess.), No. 17, § 3; A.S.A. 1947, § 19-5803.

14-204-106. Revenue bonds generally.

    1. Revenue bonds authorized in this chapter may be issued by a municipality upon the adoption of an ordinance therefor by the governing body of the municipality. Revenue bonds authorized by this chapter may be issued by a county upon order of the county court of the county.
    2. The ordinance or order shall state the purpose for which the revenue bonds are to be issued and the total amount of the issue.
    3. The bonds may be in such form, may be issued in one (1) or more series, may bear such date or dates, may mature at such time or times, not exceeding thirty (30) years from their respective dates, may bear interest at such rate or rates, may be executed in such manner, may be payable in such medium of payment, at such place or places, within or without this state, may be subject to such terms of redemption, and may contain such terms, covenants, and conditions as the ordinance or order may provide including, without limitation, those pertaining to the custody and application of proceeds of the bonds, the collection and disposition of revenues, the maintenance of various funds and reserves, the investment of moneys held thereunder, the nature and extent of the security, the rights, duties, and obligations of the municipality or county and the trustee for the holders or registered owners of the bonds, and the rights of the holders or registered owners of the bonds.
    4. There may be successive bond issues for the purpose of financing the same project, and there may be successive bond issues for financing the cost of reconstructing, replacing, constructing additions to, extending, improving, and equipping projects already in existence, whether or not originally financed by bonds issued under this chapter, with each successive issue to be authorized as provided by this chapter.
    5. Priority between and among issues and successive issues as to security of the pledge of revenues and mortgage liens on the land, buildings, and facilities involved may be controlled by the ordinance or order authorizing the issuance of bonds hereunder.
  1. The bonds shall have all the qualities of negotiable instruments under the negotiable instruments laws of this state but may be issued in registered form or may be subject to registration as to principal or as to principal and interest.
    1. The ordinance or order may provide for the execution by the municipality or county of an indenture which defines the rights of the bondholders and provides for the appointment of a trustee, within or without this state, for the bondholders.
    2. The indenture may control the priority between successive issues and may contain any other items, covenants, and conditions that are deemed desirable, including, without limitation, those pertaining to the custody and application of the proceeds of the bonds, the collection and disposition of revenues, the maintenance of various funds and reserves, the investment of moneys held thereunder, the nature and extent of the security, the rights, duties, and obligations of the municipality or county and the trustee for the holders or registered owners of the bonds, and the rights of the holders or registered owners of the bonds.
    3. It shall not be necessary for the municipality to publish any indenture, lease, or any other agreement if the ordinance authorizing an indenture, the ordinance authorizing a lease, or the ordinance authorizing any other agreement is published as required by the law governing the publication of ordinances of a municipality, and the ordinance advises that a copy of the indenture, lease, or other agreement, as the case may be, is on file in the office of the clerk or recorder of the municipality for inspection by any interested person, and the copy of the indenture, lease, or other agreement, as the case may be, is filed with the clerk or recorder of the municipality.
  2. The bonds may be sold for such price including, without limitation, sale at a discount, and in such manner as the municipality or county may determine by ordinance or order.
  3. The bonds shall be executed by the mayor and the city clerk or recorder of the municipality; or by the county judge and county clerk of the county; one (1) signature may be facsimile but one (1) must be manual. The coupons attached to the bonds may be executed by the facsimile signature of the mayor or county judge. In case any of the officers whose signatures appear on the bonds or coupons shall cease to be officers before the delivery of the bonds or coupons, the signatures shall nevertheless be valid and sufficient for all purposes.

History. Acts 1981 (Ex. Sess.), No. 17, § 4; A.S.A. 1947, § 19-5804.

14-204-107. Nature of bond indebtedness — Payment from revenue of project — Use of excess revenue.

    1. Revenue bonds shall not be general obligations of the municipality or county but shall be special obligations, and in no event shall the revenue bonds constitute an indebtedness of the municipality or county within the meaning of any constitutional or statutory limitation.
    2. It shall be plainly stated on the face of each bond that the bond has been issued under the provisions of this chapter and that it does not constitute an indebtedness of the municipality or county within any constitutional or statutory limitation.
  1. The principal of and interest on the revenue bonds, with trustee's and paying agent's fees and similar servicing charges, shall be payable from revenues derived from the hydroelectric project or projects acquired, constructed, reconstructed, extended, or improved, in whole or in part, with the proceeds of the bonds.
  2. Revenues derived from the operation of hydroelectric power projects in excess of the revenues necessary to provide for the operation, maintenance, depreciation, and debt service requirements in connection with such hydroelectric power projects, as determined by the municipality or county, may be used for any lawful municipal or county purpose and may be pledged by the municipality or county issuing revenue bonds under this chapter to the payment of principal and interest on indebtedness incurred by the municipality or county, or by a nonprofit corporation with the approval of the municipality or county, for financing the acquisition, construction, reconstruction, extension, equipment, or improvement of waterworks facilities, of sanitation and solid waste facilities, of facilities for the securing or developing of tourism, or of community recreational facilities.

History. Acts 1981 (Ex. Sess.), No. 17, § 5; A.S.A. 1947, § 19-5805.

14-204-108. Refunding bonds.

  1. Revenue bonds may be issued under this chapter for the purpose of refunding any obligations issued under this chapter. Such refunding bonds may be combined with bonds issued under the provisions of § 14-204-105 into a single issue.
  2. When bonds are issued under this section for refunding purposes, such bonds may either be sold or delivered in exchange for the outstanding obligations. If sold, the proceeds may be either applied to the payment of the obligations refunded or deposited in escrow for the retirement thereof.
  3. The ordinance or order under which such refunding bonds are issued may provide that any of the refunding bonds shall have the same priority of lien on the revenues pledged for their payment as was enjoyed by the obligations refunded thereby.
  4. Such refunding bonds shall be issued and secured in the manner provided for other bonds issued under this chapter and shall have all the attributes of such bonds.

History. Acts 1981 (Ex. Sess.), No. 17, § 6; A.S.A. 1947, § 19-5806.

14-204-109. Mortgage lien — Default — Receiver.

  1. The ordinance, order, or indenture referred to § 14-204-106 may, but need not, impose a foreclosable mortgage lien upon the facilities acquired, constructed, reconstructed, extended, equipped, or improved, in whole or in part, with the proceeds of bonds issued under this chapter, and the nature and extent of such mortgage lien may be controlled by the ordinance, order, or indenture including, without limitation, provisions pertaining to the release of all or part of the facilities from the mortgage lien and the priority of the mortgage lien in the event of successive bond issues as authorized by § 14-204-106.
  2. The ordinance, order, or indenture authorizing or securing the bonds may authorize any holder or registered owner of bonds issued under this chapter, or a trustee on behalf of all holders and registered owners, either at law or in equity, to enforce the mortgage lien and, by proper suit, to compel the performance of the duties of the officials of the issuing municipality or county set forth in this chapter and set forth in the ordinance, order, or indenture authorizing or securing the bonds.
  3. Subject to the provisions of the ordinance, order, or indenture referred to in § 14-204-106, in the event of a default in the payment of the principal of or interest on any revenue bonds issued under this chapter any court having jurisdiction may appoint a receiver to take charge of the facilities acquired, constructed, reconstructed, extended, equipped, or improved, in whole or in part, with the proceeds of such bonds. The receiver shall have the power to operate and maintain the facilities and to charge and collect rates and rents sufficient to provide for the payment of the principal of and interest on the bonds, after providing for the payment of any cost of receivership and operating expenses of the facilities, and to apply the income and revenues derived from the facilities in conformity with this chapter and the ordinance or indenture authorizing or securing the bonds. When the default has been cured, the receivership shall be ended and the properties returned to the municipality or county.
  4. The relief afforded by this section shall be construed to be in addition and supplemental to the remedies that may be afforded the trustee for the bondholders and the bondholders in the ordinance, order, or indenture authorizing or securing the bonds and shall be so granted and administered as to accord full recognition to priority rights of bondholders as to the pledge of revenues from, and mortgage lien on, the facilities, as specified in and fixed by the ordinances, orders, or indentures authorizing or securing successive bond issues.

History. Acts 1981 (Ex. Sess.), No. 17, § 7; A.S.A. 1947, § 19-5807.

14-204-110. Application for licenses, permits, certificates, and approvals.

  1. Municipalities and counties proceeding under this chapter are authorized to apply to the appropriate agencies of the state, the United States or any state thereof, and to any other proper agency for such licenses, permits, certificates, or approvals as may be necessary, and to obtain, hold, and use such licenses, permits, certificates, and approvals.
  2. Nothing in this chapter shall be construed to require a municipality or county to obtain any license, certificate, permit, or approval from the Arkansas Public Service Commission not otherwise required by other laws of this state.

History. Acts 1981 (Ex. Sess.), No. 17, § 8; A.S.A. 1947, § 19-5808.

14-204-111. Bonds — Tax exemption.

Bonds issued under the provisions of this chapter shall be exempt from all state, county, and municipal taxes. This exemption includes income, property, and inheritance taxes.

History. Acts 1981 (1st Ex. Sess.), No. 17, § 9; A.S.A. 1947, § 19-5809.

14-204-112. Investment of public funds in bonds.

Any public funds may be invested in revenue bonds issued under the provisions of this chapter. Revenue bonds issued under this chapter shall be eligible to secure the deposit of public funds.

History. Acts 1981 (Ex. Sess.), No. 17, § 10; A.S.A. 1947, § 19-5810.

Chapter 205 Natural Gas Distribution Systems

Preambles. Acts 1951, No. 71 contained a preamble which read:

“Whereas, Section 3 of Act No. 71 of the Acts of the General Assembly of the State of Arkansas for the year 1949 provides for a publication once a week for four consecutive weeks of an ordinance authorizing the issuance of revenue bonds under the terms of the act, and this is an unnecessary requirement and a burdensome expense upon any municipality undertaking to exercise the powers granted by said Act No. 71;

“Now, therefore….”

Effective Dates. Acts 1949, No. 71, § 13: approved Feb. 10, 1949. Emergency clause provided: “It is hereby ascertained and declared that many communities in this state are without facilities necessary for the transmission and distribution of natural gas, thereby resulting in the use of other fuels which are greatly inferior in quality and far more dangerous from the standpoint of the public peace, health and safety of the inhabitants thereof. Now therefore, this act being necessary for the immediate preservation of the public peace, health and safety, an emergency is hereby declared and this act shall take effect and be in full force from and after its passage.”

Acts 1949, No. 120, § 3: approved Feb. 19, 1949. Emergency clause provided: “It is hereby ascertained and declared that many communities in this state are without facilities necessary for the transmission and distribution of natural gas, thereby resulting in the use of other fuels which are greatly inferior in quality and far more dangerous from the standpoint of the public peace, health and safety of the inhabitants thereof. Now therefore, this act being necessary for the immediate preservation of the public peace, health and safety, an emergency is hereby declared and this Act shall take effect and be in full force from and after its passage.”

Acts 1951, No. 71, § 2: approved Feb. 9, 1951. Emergency clause provided: “It is hereby ascertained and declared that many communities in this state are without facilities necessary for the transmission and distribution of natural gas, thereby resulting in the use of other fuels which are greatly inferior in quality and far more dangerous from the standpoint of the public peace, health and safety of the inhabitants thereof. Now therefore, this act being necessary for the immediate preservation of the public peace, health and safety, an emergency is hereby declared and this act shall take effect and be in full force from and after its passage.”

Acts 1970 (Ex. Sess.), No. 50, § 4: Mar. 13, 1970. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act being necessary for preservation of the public peace, health, and safety, shall be in effect from and after its passage and approval.”

Acts 1975, No. 225, § 26: became law without Governor's signature, Feb. 19, 1975. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this state and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this act. Therefore, an emergency is declared to exist and this act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 1981, No. 425, § 54: Mar. 11, 1981. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Research References

Ark. L. Rev.

Comment, Municipal Bonds and Amendment 62: Clearing Up a Serbonian Bog, 39 Ark. L. Rev. 499.

Case Notes

Constitutionality.

Former Ark. Const. Amend. 13 (repealed) relating to the incurring of indebtedness by cities had no applicability to this chapter, which provides for revenue bonds. Austin v. Manning, 217 Ark. 538, 231 S.W.2d 101 (1950).

14-205-101. Construction.

Nothing in this chapter shall be construed as applying to municipalities now served by any existing gas transmission line or for any distribution system either publicly or privately owned.

History. Acts 1949, No. 71, § 12; A.S.A. 1947, § 19-4812.

14-205-102. Election on bond issue.

  1. Any municipality, by and with the consent of a majority of the qualified electors of the municipality voting on the question at an election held for the purpose, may issue revenue bonds for the purpose of constructing and operating transmission lines or distribution systems for natural gas.
  2. The notice, calling, publication, and conduct of the election shall be governed by the provisions of Arkansas Constitution, Amendment 13 [repealed].

History. Acts 1949, No. 71, § 1; A.S.A. 1947, § 19-4801.

A.C.R.C. Notes. It is questionable whether Ark. Const. Amend. 13 is repealed in whole or whether only those provisions that conflict with Ark. Const. Amend. 62 are repealed by Ark. Const. Amend. 62.

Research References

Ark. L. Rev.

Municipal Improvement Bonds in Arkansas, 8 Ark. L. Rev. 146.

Case Notes

Constitutionality.

The reference in this section to “Amendment 13” is permissible and effective and not in violation of Ark. Const., Art. 5, § 23. Austin v. Manning, 217 Ark. 538, 231 S.W.2d 101 (1950).

14-205-103. Provisions of ordinance.

  1. The ordinance providing for the issuance of the revenue bonds shall set forth a brief description of the contemplated undertaking and must include:
    1. The estimated cost thereof;
    2. The amount of the issue;
    3. The rate of interest;
    4. The time and place of payment; and
    5. Other details in connection with the issuance of the bonds.
  2. The ordinance shall declare that a statutory mortgage lien shall exist upon the property to be constructed, fix the minimum rate to be collected for gas prior to the payment of the bonds, and it shall pledge the revenues derived from the system for the purpose of paying the principal and interest on the bonds.
  3. The pledge shall fix the amount of revenue to be set apart and applied to the payment of the principal and interest on the bonds and the proportion of the balance of such revenues and income to be set aside as an adequate depreciation account and the remainder to be set aside for reasonable and proper operation.

History. Acts 1949, No. 71, § 2; A.S.A. 1947, § 19-4802.

14-205-104. Publication of ordinance and notice.

When the ordinance is adopted by the municipality's legislative body, it shall be published one (1) time in a newspaper published in the municipality, or, if there is no newspaper so published, then in a newspaper which has a bona fide general circulation within the municipality with a notice to all persons concerned stating that the ordinance has been adopted, that the municipality contemplated the issuance of the bonds described in the ordinance, and that any person interested may appear before the legislative body, upon a certain date which shall not be less than ten (10) days subsequent to the publication of the ordinance and notice, and present protests.

History. Acts 1949, No. 71, § 3; 1951, No. 71, § 1; A.S.A. 1947, § 19-4803.

14-205-105. Hearing.

At the hearing all objections and suggestions shall be heard and the governing body of the municipality may take such action as it deems proper.

History. Acts 1949, No. 71, § 4; A.S.A. 1947, § 19-4804.

14-205-106. Bonds as negotiable instruments — Execution.

  1. Bonds issued under the provisions of this chapter shall be negotiable instruments.
    1. The bonds shall be executed by the presiding officer and clerk or recorder of the municipality and sealed with the corporate seal of the municipality.
    2. When an officer whose signature appears on the bonds or coupons ceases to be an officer before delivery of the bonds, his signature shall nevertheless be valid.

History. Acts 1949, No. 71, §§ 6, 7; A.S.A. 1947, §§ 19-4806, 19-4807.

Cross References. Form of bonds, § 19-9-101.

14-205-107. Amounts of bonds.

The bonds shall be issued in whatever amounts may be necessary to provide sufficient funds to pay all costs of construction, including engineering, legal, and other expenses, together with interest on the bonds themselves to date six (6) months subsequent to the estimated date of completion of the construction.

History. Acts 1949, No. 71, § 5; A.S.A. 1947, § 19-4805.

14-205-108. Sale of bonds — Use of proceeds.

The bonds shall be sold at not less than ninety cents (90¢) on the dollar. The proceeds derived therefrom shall be used exclusively for the purposes for which the bonds are issued. They may be sold at one (1) time or in parcels as funds are needed.

History. Acts 1949, No. 71, § 8; A.S.A. 1947, § 19-4808.

14-205-109. Interest on bonds.

The bonds shall bear interest at such rate or rates payable semiannually and shall be payable at such times and places not exceeding thirty-five (35) years from their date as prescribed in the ordinance providing for their issuance.

History. Acts 1949, No. 71, § 9; 1970 (Ex. Sess.), No. 50, § 1; 1975, No. 225, § 13; 1981, No. 425, § 13; A.S.A. 1947, § 19-4809.

14-205-110. Bonds — Nature of indebtedness.

  1. Bonds issued under this chapter shall be payable solely from revenues derived from the gas system.
  2. The bonds shall not, in any event, constitute an indebtedness of the municipality within the meaning of the constitutional provisions.
  3. It shall be plainly stated on the face of each bond that it has been issued under the provisions of this chapter.

History. Acts 1949, No. 71, § 10; A.S.A. 1947, § 19-4810.

14-205-111. Statutory lien upon system.

  1. A statutory mortgage lien shall be imposed upon the gas system constructed from the proceeds of bonds authorized by this chapter. The lien shall exist in favor of the holders of the bonds and the holders of coupons attached to the bonds.
  2. The gas system shall remain subject to the statutory mortgage lien until payment in full of the principal and interest of the bonds.

History. Acts 1949, No. 71, § 11; A.S.A. 1947, § 19-4811.

14-205-112. Eminent domain.

  1. The right and power of eminent domain is conferred upon municipal corporations to enter upon, take, and condemn private property, either within or without the corporate limits of any such municipality, for the construction and operation of transmission lines or distribution systems for natural gas.
  2. The right and power of eminent domain, as conferred in this section, shall be exercised in the same manner as is provided in §§ 18-15-301 — 18-15-307 and any act amendatory or supplemental thereto.

History. Acts 1949, No. 120, §§ 1, 2; A.S.A. 1947, §§ 19-4813, 19-4814.

Chapter 206 Acquisition Of Utilities By Municipalities

Cross References. Valuation method for acquisition by municipally owned electric utilities, § 14-207-101 et seq.

Effective Dates. Acts 1987, No. 110, § 11: Mar. 3, 1987. Emergency clause provided: “It is hereby found and determined by the General Assembly that the acquisition or purchase by a municipality of the property of any gas or electric public utility may result in adverse consequences for the customers of such gas or electric public utility and that therefore, in order to avoid such adverse consequences for any customers, such acquisitions or purchases should be first approved by the Public Service Commission which is charged with the regulation of such gas or electric utilities and that such approval should not be granted in the absence of a clear showing that the gas or electric public utility and its customers will not be adversely affected. The existing statutory provisions do not adequately protect customers of regulated gas or electric public utilities and, therefore, an emergency is hereby declared to exist and this Act, being immediately necessary for the preservation of the public peace, health, and welfare, shall be in full force and effect from and after its passage and approval.”

Acts 2009, No. 1480, § 117: Apr. 10, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act makes various revisions to Arkansas election laws that are designed to improve the administration of elections and special elections and that these revisions should be implemented as soon as possible so that the citizens of this state may benefit from improved election procedures. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

14-206-101. Applicability.

  1. The provisions of this chapter shall not be applicable to the acquisition of any gas or electric public utility plant or equipment by a municipality which, on March 3, 1987, owns, whether operated by it or another entity under a franchise, lease, or other agreement or arrangement between the municipality and the entity, a system for the production, transmission, delivery, distribution, or furnishing of gas or electric utility service of the type which the municipality seeks to acquire, whether or not the municipality has granted, or in the future grants, to the public utility a franchise as defined elsewhere in this chapter.
  2. The valuation provisions of § 14-206-109(b)(2)(A)-(E) shall have no application to any proceedings involving acquisition by a municipality described in this section of any gas or electric public utility plant or equipment.

History. Acts 1987, No. 110, § 9.

14-206-102. Power to acquire, construct, and operate — Notice.

  1. When authorized by order of the Arkansas Public Service Commission, and not otherwise, a municipality shall have the power, subject to the provisions of this chapter, to acquire by purchase, to construct, and to operate a gas or electric public utility plant and equipment, or any part thereof, for the production, transmission, delivery, or furnishing of any public service.
    1. Any gas or electric public utility accepting or operating under any permit, license, or franchise heretofore or hereafter granted by any municipality, by acceptance of any such permit, license, or franchise, shall be deemed to have consented to a future purchase by the municipality of its distribution property located within the boundaries of the municipality which is actually used and useful for the convenience of the public:
      1. Upon the municipality's compliance with the requirements and conditions set forth in this chapter; and
      2. Upon receipt by the gas or electric public utility of the payment by payment by the municipality of the purchase price as determined in accordance with the provisions of this chapter.
    2. However, the purchase price for the gas or electric public utility property shall be no less than the just compensation and damages to which the gas or electric public utility would otherwise be entitled under the constitution of this state or that of the United States.
    1. By accepting or operating under any such permit, license, or franchise, the gas or electric public utility shall thereby be deemed to have waived the right of the necessity of the taking, to be established by the verdict of a jury, and to have waived all other procedural remedies and rights relative to condemnation, except such rights and remedies as are provided in this chapter.
    2. However, the municipality shall give the gas or electric public utility not less than ninety (90) days' written notice of its intention to make the purchase prior to taking any action to acquire those properties under this chapter.

History. Acts 1987, No. 110, § 1.

14-206-103. Confirmation by electors.

  1. Any municipality may determine to seek approval from the commission to acquire the property of a gas or electric public utility as authorized under the provisions of this chapter by the vote of the municipal council, city commission, or governing body taken after a public hearing, of which at least thirty (30) days' notice has been given by publication in newspapers having a general circulation within the municipality. This vote shall have been ratified and confirmed by a majority of the electors voting thereon at any special election held in accordance with § 7-11-201 et seq.
    1. In the event the vote of the municipal council, city commission, or governing body is ratified and confirmed by a majority of the electors voting thereon, the clerk of the municipality shall notify the commission of the results of the election within ninety (90) days thereafter.
    2. Within one (1) year after the election, the municipality may file with the commission an application for approval of a certificate for the acquisition or purchase of the property of a gas or electric public utility as provided in this chapter.

History. Acts 1987, No. 110, § 2; 2005, No. 2145, § 51; 2007, No. 1049, § 72; 2009, No. 1480, § 91.

Amendments. The 2005 amendment redesignated former (a) as present (a)(1); and added (a)(2).

The 2009 amendment substituted “§ 7-11-201 et seq.” for “§ 7-5-103(b)” in the last sentence of (a).

14-206-104. Application — Economic impact statement — Review.

  1. In its application for a certificate, the municipality shall file with the commission a verified application in such form as the commission shall by rule prescribe. It shall contain the following information:
    1. A description of the gas or electric utility property proposed to be acquired;
    2. The estimated costs of those properties and the proposed method of financing the acquisition of those properties;
    3. An analysis of the projected economic or financial impact on the municipality, the gas or electric public utility from which those properties will be acquired and its customers, and the local community where the property is located as a result of the acquisition and the operation of those properties by the municipality;
    4. The estimated effects on energy costs to the customers of the gas or electric public utility and the customers to be served by the municipality as a result of the acquisition and operation of those properties by the municipality;
    5. A statement of how the municipality will comply with all applicable laws and regulations to assure that the public health, safety, economy, and convenience will not be adversely affected;
    6. A demonstration that the municipality is technically and financially qualified to engage in the proposed activities in accordance with all applicable laws and regulations; and
    7. Such other information as the municipality may consider relevant or as the commission may by regulation or order require.
  2. In addition, the commission shall by rule or regulation require the filing of an exhibit containing an economic impact statement with the application. The statement shall fully develop the factors listed in subsection (a) of this section, treating in reasonable detail such consideration, if applicable, of the proposed acquisition's direct and indirect effect on:
    1. The municipality;
    2. The customers to be served by the municipality;
    3. The gas or electric public utility from which the properties will be acquired;
    4. The remaining customers of the gas or electric public utility; and
    5. The local economy.
  3. Promptly after filing, the staff of the commission shall invite comments from the gas or electric public utility which owns the property and all state agencies entitled to service under § 14-206-105 as to the adequacy of the municipality's statements. The invitation to comment shall advise the gas or electric public utility and the state agencies that comments must be received within sixty (60) days of the date of mailing or delivery thereof, unless the commission, upon request of the gas or electric public utility or an agency, approves a longer period for consideration.
  4. Upon review of those comments, if any, if the staff shall determine that the municipality failed to include or adequately develop an aspect of the acquisition of the property, it shall then issue a deficiency letter pointing out in detail all such specific deficiencies in the application. The deficiency letter shall be prepared and served upon the municipality no later than thirty (30) days after the last comments were filed. The municipality shall promptly respond to any deficiency letter.

History. Acts 1987, No. 110, § 3.

14-206-105. Proof of service and notice — Filing fee.

    1. Each application shall be accompanied by proof of service of a copy of the application on the gas or electric public utility which owns the property and on the director or other administrative head of the following state agencies or departments:
      1. The Division of Environmental Quality;
      2. The Arkansas Economic Development Commission;
      3. The Department of Finance and Administration;
      4. The Arkansas Energy Office of the Division of Environmental Quality;
      5. The Attorney General;
      6. Any school district or other political subdivision of this state that is the recipient of real and personal property taxes in which any of the gas or electric utility properties to be acquired by the municipality may be located; and
      7. Any other state agency or department or political subdivision of this state designated by Arkansas Public Service Commission rule or order.
    2. The copy of the application shall be accompanied by a notice specifying the date on or about which the application is to be filed and a notice that interventions or limited appearances must be filed with the commission within thirty (30) days after the date of filing, unless good cause is shown.
    1. Each application shall also be accompanied by proof that public notice thereof was given to persons residing in the municipality by the publication of a summary of the application, and a statement of the date on which it is to be filed, and a statement that interventions or limited appearances must be filed with the commission within thirty (30) days after the filing date set forth in the notice, unless good cause is shown, in a newspaper or newspapers having substantial circulation in the municipality.
    2. For purposes of this subsection, any economic impact statement submitted as an exhibit to the application need not be summarized. However, the published notice shall include a statement that the impact statements are on file at the office of the commission and available for public inspection.
    3. The municipality shall also cause copies of the economic impact statement to be available for public inspection. The published notice shall contain a statement of the location and the times the impact statements will be available for public inspection.
    4. In addition, the commission may, after filing, require the applicant to serve notice of the application or copies of it, or both, upon such other persons, and file proof thereof, as the commission may deem appropriate.
  1. Where any personal service or notice is required in this section and § 14-206-104, service may be made by any officer authorized by law to serve process by personal delivery or by certified mail.
  2. An initial filing fee of five hundred dollars ($500) shall accompany each application.

History. Acts 1987, No. 110, § 3; 1997, No. 540, § 63; 1999, No. 1164, § 125; 2019, No. 315, § 1011; 2019, No. 910, §§ 3035, 3036.

A.C.R.C. Notes. Acts 1997, No. 1219, § 2, provided:

“‘Arkansas Department of Pollution Control & Ecology’ renamed to ‘Arkansas Department of Environmental Quality’.

(a) Effective March 31, 1999, the ‘Arkansas Department of Pollution Control & Ecology’ or ‘Department,’ as it is referred to or empowered throughout the Arkansas Code Annotated, is hereby renamed. In its place, the ‘Arkansas Department of Environmental Quality’ is hereby established, succeeding to the general powers and responsibilities previously assigned to the Arkansas Department of Pollution Control & Ecology. The Director of the Arkansas Department of Pollution Control & Ecology is directed to identify and revise all inter-agency agreements, financial instruments, funds, and other necessary legal documents in order to effect this change by March 31, 1999.

“(b) Nothing in this Act shall be construed as impairing the powers and authorities of the Arkansas Department of Pollution Control and Ecology prior to the effective date of the name change.”

Amendments. The 1997 amendment substituted “Department of Economic Development” for “Department of Industrial Development” in (a)(1)(B).

The 1999 amendment substituted “Arkansas Department of Environmental Quality” for “Department of Pollution Control and Ecology” in (a)(1)(A).

The 2019 amendment by No. 315 substituted “rule” for “regulation” in (a)(1)(G).

The 2019 amendment by No. 910 substituted “Division of Environmental Quality” for “Arkansas Department of Environmental Quality” in (a)(1)(A) and (a)(1)(D).

14-206-106. Public hearing.

Upon receipt of an application complying with §§ 14-206-104 and 14-206-105, the commission shall fix a date for the commencement of a public hearing on the application. The testimony presented at the hearing may be presented in writing or orally. The commission may make rules designed to exclude repetitive, redundant, or irrelevant testimony.

History. Acts 1987, No. 110, § 4.

14-206-107. Parties to proceeding — Limited appearance.

  1. The parties to the proceeding shall include the municipality and the gas or electric public utility which owns the property. In addition, each county and government agency or department or other person entitled to receive service of a copy of the application under § 14-206-105(a) shall be a party if it has filed with the commission a notice of intervention as a party within thirty (30) days after the service. A party to the proceeding shall also include any person whose petition for intervention is approved by the commission.
    1. Any person may make a limited appearance in the proceeding by filing a verified statement of position within thirty (30) days after the date given in the public notice as the date of filing the application. No person making a limited appearance shall be a party or shall have the right to receive further notice or to cross-examine witnesses on any issue outside the scope of its statement of position.
    2. A person making a limited appearance is subject to being called for cross-examination only on the subject matter of the statement of position by the applicant or other party. If a person fails to appear for cross-examination, if called, the statement of position may be stricken from the record at the discretion of the commission.

History. Acts 1987, No. 110, § 5.

14-206-108. Decision upon application — Burden of proof.

  1. The commission shall render a decision upon the record either granting or denying the application as filed or granting it upon such terms, conditions, or modifications of the financing, acquisition, operation, or maintenance of the property as the commission may deem appropriate. The commission may not grant a certificate for the financing, acquisition, operation, and maintenance of any property, either as proposed or as modified by the commission, unless it shall find and determine:
    1. The nature of the probable economic impact of the acquisition on the customers of the gas or electric public utility that owns the property and on the customers to be served by the municipality;
    2. That the method of financing the acquisition, either as proposed or as modified by the commission, represents an acceptable economic impact, considering economic conditions and the need for and cost to the municipality of additional gas or electric public utility services;
    3. That the acquisition of the properties, the gas or electric public utility functions to be performed, the operating procedures, the properties and equipment, and the use of the properties collectively provide reasonable assurance that the municipality will comply with all applicable laws, rules, and regulations and that the public health, safety, economy, and convenience will not be adversely affected;
    4. That the municipality is technically and financially qualified to acquire and operate the proposed properties in accordance with all applicable laws, rules, and regulations;
    5. That the issuance of the certificate will not be detrimental to the public health, safety, economy, and convenience; and
    6. That the acquisition will serve the public interest, convenience, and necessity.
  2. Any municipality which files an application for approval of the acquisition or purchase of any gas or electric utility property shall have the burden of proof with respect to every element of the application. The commission shall not approve any application for approval of the purchase or acquisition by any municipality of any property of a gas or electric public utility unless it shall be shown at the hearing upon the application for approval of the acquisition, by the clear preponderance of the evidence, that neither the gas or electric public utility nor the customers of the gas or electric public utility will be adversely affected by the proposed acquisition or purchase.

History. Acts 1987, No. 110, § 6; 2019, No. 315, § 1012.

Amendments. The 2019 amendment inserted “rules” following “laws” in (a)(3) and (a)(4).

14-206-109. Denial — Purchase price, terms, and conditions of sale.

  1. In the event that the commission determines, on the basis of the evidence, that either the gas or electric public utility or its customers will be adversely affected by the proposed acquisition or purchases, it shall deny the application for approval.
    1. In the event the commission determines, on the basis of the evidence, that the requested approval should be granted, it shall fix the purchase price to be paid by the municipality to the gas or electric public utility for any properties to be purchased from the gas or electric utility as well as all other terms and conditions of the purchase and sale.
    2. The amount to be paid shall include, but shall not be limited to, the total of the following elements:
      1. The present-day reproduction cost, new, of the facilities being acquired, adjusted for remaining life expectancy;
      2. An amount equal to the cost of constructing any necessary facilities to reintegrate the system of the gas or electric utility outside the area to be acquired after detaching the portion to be sold;
      3. An amount sufficient to reimburse the gas or electric utility for reasonable expenses it incurs preparing the aforementioned reproduction cost, new, adjusted for remaining life expectancy, including the appraisal, and all other expenses including, but not limited to, employee salaries, overheads, consultants' fees and attorneys' fees incurred in connection with the acquisition of the facilities;
        1. An amount equal to any severance damages which will be incurred by the gas or electric utility. Severance damages shall be measured by the present value of the estimated revenue requirements associated with any investment in plant, gas supply, expenses incurred, or other costs which would have been allocated to or paid by the gas or electric public utility's customers in that portion of the gas or electric public utility's service area to be acquired or served by the municipality and which could be shifted to or allocated to other customers of the gas or electric public utility as a result of the acquisition of the properties by the municipality.
        2. The estimated present value of any such revenue requirements shall include, but shall not be limited to, the estimated revenue requirements associated with:
          1. The investment in, or other costs incurred with respect to, existing substations, compressor stations, and other distribution, transmission, or generating facilities;
          2. Expenses incurred under purchased power contracts or gas supply contracts except to the extent the expenses arise from a plant which is not then in commercial operation;
          3. Real property owned or leased by the gas or electric public utility; or
          4. Other costs which would have been allocated to the customers in that portion of the gas or electric utility's service area to be acquired or served by the municipality;
        3. The estimated revenue requirements shall be estimated for such reasonable period of time in the future as may be justified by the applicable facts and circumstances, but in no event shall that period of time be less than a period of ten (10) years after the date the purchase is projected to be consummated;
      4. An amount sufficient to reimburse the gas or electric utility for any federal or state income tax effect, if any, requiring payment of either federal or state income tax because of the involuntary transfer, which taxes are related to recapture of tax benefits from:
        1. Investment tax credit or investment tax credit carry-forwards or other accelerated income tax benefits;
        2. Other income tax benefits, which have been flowed through to ratepayers through the setting of rates by a regulatory commission, that reflect either the amortization of investment tax credits or other accelerated income tax benefits; and
        3. An amount sufficient to reimburse the gas or electric utility for any federal or state income tax effects that result from the use of a net of tax allowance for funds used during construction rate by the gas or electric utility in either the accounting for construction costs on its books or the calculation of the depreciated replacement cost.

History. Acts 1987, No. 110, § 6; 1987, No. 378, § 1.

14-206-110. Confirmation of sale — Modification.

  1. The commission shall by order fix, determine, and certify to the municipal governing body, to the gas or electric public utility, and to any bondholders, mortgagees, and lienors of the gas or electric utility appearing at the hearing, the purchase price to be paid for the taking and severance of the property of the gas or electric public utility and all other terms and all conditions of sale and purchase that it shall ascertain to be reasonable, which terms and conditions shall constitute the compensation and damages to be paid, and the other terms and conditions of the sale and purchase.
  2. Upon the filing of the order by the commission with the clerk of the municipality, the municipality shall thereupon be obligated to make the required payment and otherwise comply with the terms and conditions of the order to consummate the purchase.
  3. Upon the consummation of the purchase, the gas or electric public utility shall execute an instrument conveying the property purchased and paid for by the municipality, and the municipality may take over the control and operation of the property.
  4. Unless the purchase price is paid and the purchase consummated within one hundred eighty (180) days after the filing of the commission's order with the clerk of the municipality, the commission's order shall be considered null and void.
  5. If the commission determines that all or part of the proposed acquisition should be modified, it may condition its approval of the acquisition upon the modification.

History. Acts 1987, No. 110, § 6.

14-206-111. Order — Findings of fact.

In rendering a decision on the application for approval of the acquisition, the commission shall issue and serve upon all parties an order, which shall include, or be accompanied by, findings of fact stating its reasons for the action taken.

History. Acts 1987, No. 110, § 7.

14-206-112. Rehearing — Judicial review.

Any party aggrieved by any decision issued on an application for approval of the acquisition may apply for a rehearing as provided in § 23-2-401, and §§ 23-2-42123-2-424. A party aggrieved by the final decision of the commission on rehearing may obtain judicial review of the decision in accordance with the provisions of § 23-2-401, and §§ 23-2-42123-2-424.

History. Acts 1987, No. 110, § 8.

Chapter 207 Valuation of Properties and Facilities Upon Annexation

A.C.R.C. Notes. Acts 1991, No. 745, § 7, in part, provided:

“This Act shall be applicable to all acquisitions of electric public utility properties coming within municipalities owning or operating electric utility systems on or after the effective date of this Act. Acquisitions of electric public utility properties located within municipalities owning or operating electric utility systems prior to the effective date of this Act shall be governed by Act 639 of 1989 (including provisions specifically repealed by this Section) or other law, if any, applicable prior to the effective date of this Act.”

Cross References. Acquisition of utilities by municipalities, § 14-206-101 et seq.

Effective Dates. Acts 1989, No. 639, § 10: Mar. 17, 1989. Emergency clause provided: “It is hereby found and determined by the General Assembly that the acquisition or purchase by a municipality of the property of any electric public utility may result in adverse impacts upon the customers of such electric public utility. The existing statutory provisions do not adequately insure a fair and uniform valuation method to protect customers of regulated electric public utilities and the taxpayers of municipalities owning electric utililties. Therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1991, No. 745, § 8: Mar. 26, 1991. Emergency clause provided: “It is hereby found and determined by the Seventy-Eighth General Assembly of the State of Arkansas that the acquisition of the properties, facilities and customers of an electric public utility by a municipality which owns or operates an electric utility system may result in an adverse impact on the electric public utility, that Act 639 of 1989 was enacted to alleviate this situation but that certain sections of Act 639 of 1989, codified as Arkansas Code, Title 14, Chapter 207, need to be amended to strengthen and clarify the procedures. Therefore, in order to strengthen and clarify the intent of Arkansas Code, Title 14, Chapter 207, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health, and safety, shall be in full force and effect from and after its passage and approval.”

Acts 2001, No. 988, § 5: Mar. 21, 2001. Emergency clause provided: “It is found and determined by the General Assembly that the public relies upon reasonably priced supplies of electricity and that the ability of municipalities to invest in and construct electric utility generating facilities and ensure the lowest practicable electric rates for their residents is unreasonably reduced by restriction of project partners to regulated utilities. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

14-207-101. Definitions.

As used herein the following terms shall have the following definitions:

  1. “Municipality” shall mean both Arkansas municipal corporations and consolidated municipal utility improvement districts;
  2. “Electric public utility” and “electric public utility system” shall include persons, corporations, and other entities providing electric power to the public at wholesale or retail, but shall not include electric cooperative corporations providing electric power predominantly for resale;
  3. “Franchise” or “franchise agreement” shall mean an agreement between a municipality which owns or operates an electric utility system and an electric public utility, including, but not limited to franchise agreements within the meaning of Acts 1935, No. 324, as amended, whereby the electric public utility continues to serve customers in its allocated service area and pays to the municipality which owns or operates an electric utility system franchise fees in accordance with applicable law and the rules of the Arkansas Public Service Commission.

History. Acts 1989, No. 639, § 1; 1991, No. 745, § 1; 2019, No. 315, § 1013.

Publisher's Notes. Acts 1935, No. 324, referred to in this section, is codified as §§ 14-200-101, 14-200-10314-200-108, 14-200-111, 23-1-10123-1-112, 23-2-301, 23-2-30323-2-308, 23-2-310, 23-2-312, 23-2-31423-2-316, 23-2-402, 23-2-404[repealed], 23-2-405, 23-2-408, 23-2-41023-2-412, 23-2-41423-2-421, 23-2-426, 23-2-428, 23-2-429, 23-3-10123-3-107, 23-3-11223-3-115, 23-3-118, 23-3-119, 23-3-20123-3-206, 23-4-102, 23-4-103, 23-4-10523-4-109, 23-4-205, 23-4-40223-4-405, 23-4-40723-4-418, 23-4-62023-4-634, 23-18-101.

Amendments. The 2019 amendment deleted “and regulations” following “rules” in (3).

14-207-102. Confirmation of ownership rights.

The right of Arkansas municipal corporations and consolidated municipal utility improvement districts currently owning and operating electric utility systems is hereby ratified and confirmed.

History. Acts 1989, No. 639, § 2.

14-207-103. Right to acquire properties, facilities, and customers.

    1. Unless otherwise agreed between a municipality which owns or operates an electric utility system and an electric public utility, the inclusion by annexation, whether voluntary or involuntary according to applicable law, of any part of the assigned service area of an electric public utility within the boundaries of any Arkansas municipality shall not in any respect impair or affect the rights of the electric public utility to continue and extend electric service throughout any part of its assigned service area unless a municipality which owns or operates an electric utility system elects, within three (3) years after the certification of annexation, to purchase from the electric public utility all customers, distribution properties, and facilities reasonably utilized or reasonably necessary to serve customers of the electric public utility within the annexed areas in accordance with the provisions of this subchapter.
    2. If the municipality which owns or operates an electric utility system and the electric public utility agree to a franchise agreement for a specific term of years, unless otherwise agreed, the municipality's obligation to elect to acquire public utility properties within a period of three (3) years as required by this subsection shall not commence until the termination of the franchise agreement.
    3. A municipality which owns or operates an electric utility system and an electric public utility may agree to franchise agreements defined in § 14-207-101(3), whether or not the service territory of the electric public utility is brought into the municipality's corporate limits before or after March 26, 1991.
    4. Unless otherwise agreed between a municipality which owns or operates an electric utility system and an electric public utility, a municipality may not undertake or commence any construction or operation of any equipment or facilities for the supplying of electric service, or extension thereof, to the annexed areas without having made a timely election and complying with the provisions of this subchapter. Any violation shall vest the affected electric public utility with a right to injunctive relief.
    1. The municipality shall give a six-months' written notice to the electric public utility of its election to acquire from the electric public utility all customers, distribution properties, and facilities reasonably utilized or reasonably necessary to serve customers of the electric public utility within the annexed areas.
    2. Within the six-month period after the notification, the municipality and the electric public utility shall meet and negotiate in good faith the terms of the acquisition, including, as an alternative, granting the electric public utility a franchise or franchise agreement to serve the annexed area.
    3. In the event that the electric public utility system does not provide wholesale power service to the municipality acquiring its properties, facilities, and customers, the municipality and the electric public utility shall also negotiate, consistent with the laws, rules, and regulations of appropriate authorities and existing power supply agreements, for power contracts which would provide for the purchase of power by the municipality from the electric public utility for an amount of power equivalent to the loss of any sales to customers of the electric public utility acquired by the municipality under this subchapter.

History. Acts 1991, No. 745, § 2.

Publisher's Notes. Former § 14-207-103, concerning right to acquire properties and facilities, was repealed by Acts 1991, No. 745, § 7. The former section was derived from Acts 1989, No. 639, § 3.

Case Notes

Applicability.

When a city acquires a public utility's properties or facilities, it owes compensation to the utility under § 14-207-106. Further, in the event the utility provides no electricity to the city acquiring its properties or facilities, then the city must compensate the utility as described under subsection (b) of § 14-207-106 (see now § 14-207-104). When the city, however, does not acquire the utility's properties or facilities, this chapter does not apply. Instead, the utility merely becomes an alternative supplier, and the city and the utility can both provide electrical service to the area and compete for customers. Carroll Elec. Coop. Corp. v. City of Bentonville, 306 Ark. 572, 815 S.W.2d 944 (1991) (decision under prior law).

Construction With Other Laws.

A municipal utility could take facilities, customers, and property in an area annexed by a city, notwithstanding that § 23-18-302(8) stood for the general proposition that an electric cooperative could not be ousted from its assigned area, as this section specifically allowed a municipal utility to condemn the facilities, distribution properties, and customers of an electric cooperative. Craighead Elec. Coop. Corp. v. City Water & Light Plant, 278 F.3d 859 (8th Cir. 2002).

14-207-104. Procedures and valuation formula.

  1. In the event that an agreement pursuant to § 14-207-103(a) or (b) cannot be reached within such six-month period, the municipality shall pay to the electric public utility an amount equal to the following:
    1. The present-day reproduction cost, new, of the properties and facilities being acquired, less depreciation computed on a straight-line basis; plus
    2. The book value, net of depreciation, of all properties and facilities not being acquired or portions thereof, which were constructed or purchased in good faith by the electric public utility in order to serve customers in the annexed area, less the book value, net of depreciation, of the properties and facilities, to the extent that at the time that title to the properties or facilities being taken pursuant to this act is transferred, the properties and facilities not being acquired:
      1. Are required for serving customers of the electric public utility not in the annexed area; and
      2. May be reasonably expected to serve customers not in the annexed area within eight (8) years following the acquisition; plus
    3. An amount equal to the cost of constructing any necessary facilities to reintegrate the system of the electric public utility outside the annexed area after detaching the portion to be sold; plus
    4. In the event that the electric public utility system does not provide wholesale power service to the municipality acquiring its properties, facilities, and customers under this subchapter, then, in addition to the amounts required by subdivisions (a)(1) and (3) of this section, the municipality shall pay the electric public utility either:
      1. Three hundred fifty-five percent (355%) of gross revenues less gross receipts taxes received by the electric public utility for the twelve-month period preceding notification from customers in the annexed area; or
      2. The amount required by subdivision (a)(4)(A) of this section payable over five (5) years with interest at the then-prevailing AAA insured tax-exempt municipal bond interest rate.
  2. In the event that the electric public utility system ceases to provide wholesale power service to the municipality prior to five (5) years after the acquisition of the properties, facilities, and customers of the electric power utility under this subchapter, then the municipality will pay, pro rata for the remainder of such five-year period, in accordance with subdivision (a)(4)(A) of this section.

History. Acts 1991, No. 745, § 3; 2001, No. 988, § 4.

Publisher's Notes. Former § 14-207-104, concerning procedures and valuation formula, was repealed by Acts 1991, No. 745, § 7. The former section was derived from Acts 1989, No. 639, § 4.

Amendments. The 2001 amendment added (a)(2) and redesignated the remaining subsections accordingly, and made related changes.

14-207-105. Valuation data.

The public utility shall provide to the municipality all data and information required to establish valuations under this subchapter, provided, however, that the municipality shall, at the time of the transfer under § 14-207-104, reimburse the public utility for reasonable costs of appraisal, engineering, and incidental expenses associated with establishing valuation.

History. Acts 1989, No. 639, § 5.

14-207-106. Exercise of power of eminent domain.

  1. At the conclusion of the six-month notification period, in the event that agreement is not reached pursuant to § 14-207-103(a) or (b), or the municipality and the electric public utility disagree on the valuations described in § 14-207-104, but no later than three (3) years from certification of annexation or three (3) years from termination of any franchise agreement authorized by this subchapter, the municipality may, after paying, or, if applicable, commencing payment of, any amounts not in dispute and depositing into the registry of the court the amount in dispute, or such lesser amounts as the court, after hearing, determines to be just, exercise the right and power of eminent domain under the procedures of § 18-15-301 et seq., and may take possession of the properties and facilities and commence service to the customers as of the date it makes the deposit; provided, however, that any compensation or damages for the properties, facilities, and customers taken shall be determined in accordance with § 14-207-104.
  2. The date of taking for the purposes of this subchapter shall be either the date the deposit authorized by this section is made or, in the event no deposit is made, the date of the court award.

History. Acts 1991, No. 745, § 4.

Publisher's Notes. Former § 14-207-106, concerning exercise of power of eminent domain, was repealed by Acts 1991, No. 745, § 7. The former section was derived from Acts 1989, No. 639, § 6.

Case Notes

Applicability.

When a city acquires a public utility's properties or facilities, it owes compensation to the utility under this section. Further, in the event the utility provides no electricity to the city acquiring its properties or facilities, then the city must compensate the utility as described in this section. When the city, however, does not acquire the utility's properties or facilities, this chapter does not apply. Instead, the utility merely becomes an alternative supplier, and the city and the utility can both provide electrical service to the area and compete for customers. Carroll Elec. Coop. Corp. v. City of Bentonville, 306 Ark. 572, 815 S.W.2d 944 (1991) (decision under prior law).

Cited: Craighead Elec. Coop. Corp. v. City Water & Light Plant, 278 F.3d 859 (8th Cir. 2002).

Chapter 208 Valuation of Rural Water Service Properties and Facilities Upon Annexation

14-208-101. Definitions.

As used in this chapter:

  1. “Municipality” means both Arkansas municipal corporations and consolidated municipal water improvement districts; and
  2. “Rural water service” means any entity under Arkansas law that is not owned by a municipality and is a water association, water improvement district, or water authority.

History. Acts 2009, No. 779, § 1.

14-208-102. Right to acquire rural water service properties, facilities, and customers — Definition.

      1. Unless otherwise agreed between a municipality that owns or operates a water service and a rural water service, the inclusion by annexation of any part of the assigned service area of a rural water service within the boundaries of any Arkansas municipality shall not in any respect impair or affect the rights of the rural water service to continue operations and extend water service throughout any part of its assigned service area unless a municipality that owns or operates a water service elects to purchase from the rural water service all customers, distribution properties, and facilities located within the municipality reasonably utilized or reasonably necessary to serve customers of the rural water service within the annexed areas under this chapter, excluding water sources, treatment plants, and storage serving customers outside the annexed areas.
      2. As used in this subdivision (a)(1), “continue operations” means to continue setting meters, reading meters, and supplying water.
      3. Under this section, a municipality has the exclusive right with regard to water service provided by the rural water service to:
        1. Conduct inspections of the water system within the municipality;
        2. Issue and regulate permits for the water system within the municipality; and
        3. Regulate water service to property within the corporate limits of the municipality, even if the water service is part of the assigned service area of the rural water service. (2)(A) Unless otherwise agreed between a municipality that owns or operates a water service and a rural water service, a municipality may not undertake or begin construction, operation, or extension of any equipment or facilities for the supplying of water service to the annexed areas without complying with this chapter.
    1. The municipality shall give written notice to the rural water service prior to the municipality's acquiring from the rural water service all customers, distribution properties, and facilities reasonably utilized or reasonably necessary to serve customers of the rural water service within the annexed areas.
    2. The municipality and the rural water service shall meet and negotiate in good faith the terms of the acquisition, including, as an alternative, granting the rural water service an agreement to serve the annexed area or portions of the annexed area.
      1. Before an acquisition under this chapter by the municipality occurs, the municipality shall receive approval from the Arkansas Natural Resources Commission that the action complies with the Arkansas Water Plan under § 15-22-503.
      2. The commission shall:
        1. Approve the application under the Arkansas Water Plan if it determines the requirements of § 15-22-223(b)(2)(B) are satisfied, including costs derived from negotiation or appraisal;
        2. Issue a letter to the municipality that the proposed action is exempt from review under the Arkansas Water Plan; or
        3. Deny the application under the Arkansas Water Plan if it determines the requirements of § 15-22-223(b)(2)(B) are not satisfied.
  1. An agreement reached under this chapter shall comply with § 15-22-223.
  2. This chapter shall not limit applicable federal law, including without limitation 7 U.S.C. § 1926(b) [repealed].
  3. If a municipality that owns or operates a water service has an area within its corporate limits that is served by another municipality's water service, the municipality may elect to purchase from the other municipality's water service all customers, distribution properties, and facilities located within the municipality using the procedures under this chapter.

(B) The affected rural water service is entitled to injunctive relief for any violation of this chapter.

History. Acts 2009, No. 779, § 1; 2011, No. 778, § 3; 2011, No. 1053, § 1; 2017, No. 895, § 1.

Amendments. The 2011 amendment by No. 778 inserted “occurs” in (b)(3)(A).

The 2011 amendment by No. 1053 added (e).

The 2017 amendment redesignated former (a)(1) as (a)(1)(A); and added (a)(1)(B) and (a)(1)(C).

Case Notes

Construction.

Circuit court did not err in finding that federal law prevented the City of Gravette from acquiring another city's water facilities within the annexed area, even though the City of Gravette pleaded that it intended to pay the federal indebtedness associated with the facilities. The plain language of this section directs that federal law supersedes state law; the federal law, 7 U.S.C. § 1926(b), protects a water association from a forcible acquisition; and it is within the resisting water association's discretion whether to raise the federal defense. City of Gravette v. Centerton Waterworks & Sewer Comm'n, 2019 Ark. App. 540, 589 S.W.3d 456 (2019).

14-208-103. Procedures and valuation formula.

      1. If an agreement under § 14-208-102 cannot be reached, the municipality and the rural water service shall each select one (1) qualified appraiser, and the two (2) appraisers selected shall then select a third appraiser for the purpose of conducting appraisals to determine the value of customers, distribution properties, and facilities of the rural water service annexed by the municipality.
      2. The value of customers, distribution properties, and facilities of the rural water service annexed by the municipality shall be determined by using the factors set out in § 15-22-223(b)(2)(B).
    1. The agreement or decision of at least two (2) of the three (3) appraisers is the value.
    2. If either the municipality or the rural water service is dissatisfied with the decision of the appraisers, either may institute an action in circuit court to challenge the reasonableness of the value determined by the appraisers.
  1. The compensation required by this section shall be paid:
    1. To the rural water service at a time not later than one hundred twenty (120) days following the date upon which the value is certified;
    2. At a later date as mutually agreed upon by the parties; or
    3. As determined by the circuit court.

History. Acts 2009, No. 779, § 1.

14-208-104. Valuation data.

  1. The rural water service shall provide to the municipality all data and information required to establish valuations under this chapter.
  2. Upon execution of an agreement reached under this chapter, the municipality shall reimburse the rural water service for reasonable costs of appraisal and incidental expenses associated with establishing valuation.

History. Acts 2009, No. 779, § 1.

Chapters 209-215 [Reserved.]

[Reserved]

Subtitle 13. Public Utility Improvement Districts

Chapter 216 General Provisions

Effective Dates. Acts 1983, No. 796, § 5: Mar. 24, 1983. Emergency clause provided: “It has been found by the General Assembly that there is a lack of clarity and in some instances a lack of agreement regarding the ability of Arkansas municipalities and improvement districts to finance electric system facilities without the approval of the Arkansas Public Service Commission and that this lack of clarity places a substantial burden on the financing of such facilities and may result in costly delays. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in force upon its passage and approval.”

Research References

Am. Jur. 56 Am. Jur. 2d, Mun. Corp. & Coun., § 560 et seq.

C.J.S. 20 C.J.S., Electr., § 8.

14-216-101. Power of improvement districts to finance electric facilities system.

  1. Any improvement district owning and operating any system for the generation, transmission, or distribution of electric power or energy may issue revenue bonds and pledge the revenues derived from the system, whether the revenues are derived from within or beyond the corporate limits of the district, as may be permitted or authorized by applicable law without obtaining the approval of the Arkansas Public Service Commission.
  2. Nothing in this section should be construed to authorize any improvement district to issue or sell bonds or use the proceeds thereof to purchase, condemn, or otherwise acquire a utility plant or distribution system or portion thereof owned or operated by a public utility without the consent of the public utility.

History. Acts 1983, No. 796, §§ 1, 2; A.S.A. 1947, § 73-115.1.

Chapter 217 General Consolidated Public Utility System Improvement Districts

Publisher's Notes. As to applicability of certain laws to municipal improvement districts existing prior to July 1, 1952, see §§ 14-90-102 and 14-90-103.

Effective Dates. Acts 1975, No. 490, § 16: Mar. 19, 1975. Emergency clause provided: “It has been found and it is hereby declared by the General Assembly that the present uncertainty and confusion in the laws of the State pertaining to consolidated utility districts and their powers and functions is the cause of delays and inefficiencies in the construction and operation of consolidated utility systems and that it is essential to the continued development of the State and the health and welfare of its inhabitants that this condition be corrected immediately. An emergency therefore is hereby declared to exist, and this Act being necessary for the preservation of the public peace, health, and safety shall be in full force upon its approval.”

Acts 1977, No. 518, § 4: Mar. 18, 1977. Emergency clause provided: “It has been found and it is hereby declared by the General Assembly of the State of Arkansas that because of certain decisions of the United States Supreme Court, there has been uncertainty and confusion with respect to the constitutionality of the manner of electing members of boards of commissioners of those consolidated utility districts wherein such members have heretofore been required to be elected by the owners of real property within the district, and that it is essential to the continued development of this State and the health and welfare of its inhabitants that such condition be corrected immediately so that the construction and operation of the consolidated utility systems affected can proceed on an orderly basis. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1979, No. 527, § 4: Mar. 22, 1979. Emergency clause provided: “It has been found and it is hereby declared by the General Assembly of the State of Arkansas that the authority for consolidated municipal utility improvement districts to engage in joint or cooperative undertakings has been limited to undertakings with public utility corporations, that the continued construction and operation of the consolidated utility systems require from time to time undertakings with municipalities and other persons, and that it is essential to the continued development of this State and the health and welfare of its inhabitants that such condition be corrected immediately so that the construction and operation of the consolidated utility systems affected can proceed on an orderly basis. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1981, No. 425, § 54: Mar. 11, 1981. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 2007, No. 45, § 2: Jan. 31, 2007. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that consolidated utility districts are empowered to participate in the development, ownership, and operation of electric generation facilities, that current Arkansas law is unclear regarding the authority of districts to participate in projects located outside the state of Arkansas, and that the authority should be confirmed and clarified to allow districts to immediately proceed with out-of-state projects. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

14-217-101. Title.

This chapter shall be known as the “General Consolidated Public Utility System Improvement District Law.”

History. Acts 1975, No. 490, § 1; A.S.A. 1947, § 20-1901.

14-217-102. Purpose of chapter.

  1. It has been found and determined by the General Assembly that:
    1. There exists a great deal of uncertainty and confusion in the laws of this state pertaining to municipal improvement districts created for the construction and operation of consolidated utility systems as defined in § 14-217-103;
    2. Some of these districts were created by special acts which can no longer be amended;
    3. The uncertainty and confusion contained in existing laws retards the creation of new districts and the growth and development of existing districts;
    4. This uncertainty and confusion can be corrected only by the enactment of a general law defining and clarifying the functions and powers of such districts.
  2. It is the purpose of this chapter, therefore, to provide a uniform and workable definition of the powers and functions of such districts.

History. Acts 1975, No. 490, § 2; A.S.A. 1947, § 20-1902.

14-217-103. Definitions.

As used in this chapter:

  1. “Assessment secured bonds” means bonds described in and issued under the authority of § 14-217-109(b);
  2. “Board of commissioners” or “board” means the board of commissioners, board of directors, board of improvement, or other governing board of a district;
  3. “Bonds” means bonds issued under the authority of this chapter, whether assessment secured bonds or revenue bonds;
  4. “City clerk” means city clerk, city recorder, town recorder, or other similar office hereafter created or established;
  5. “Commissioner” means any member of a board of commissioners;
  6. “Consolidated utility district” or “district” means any municipal improvement district created before March 19, 1975, pursuant to special act or general act, or created after March 19, 1975, pursuant to this chapter, for the purpose of constructing or operating and maintaining a consolidated utility system;
  7. “Consolidated utility system”, “consolidated system”, or “system” means any system of public utilities together with any facilities related to or necessary or appropriate to the construction, operation, or maintenance consisting of:
    1. A combined water system and sewer system; or
    2. An electric system consolidated or combined with a water system or with a sewer system;
  8. “Construct” or “construction” means to acquire, construct, reconstruct, extend, improve, install, or equip any system or portion thereof;
  9. “Electric system” means any system for the production, generation, transmission, or delivery of electricity;
  10. “Governing body” means the council, board of directors, commission, or other governing body of a municipality;
  11. “Major utility facility” or “major facility” means any electric generating plant or bulk water supply facility and related necessary appurtenant land and land rights, substation, fuel, fuel handling and storage equipment, and similar necessary equipment;
  12. “Municipality” means any city of the first class, city of the second class, or incorporated town;
  13. “Person” means any natural person, firm, corporation, association, public agency located within or outside the State of Arkansas, or other legally recognized entity;
  14. “Public utility corporation” means any public utility as defined in § 23-1-101;
  15. “Revenue bonds” means bonds described in and under the authority of § 14-217-109(c);
  16. “Sewer system” means any system for the collection, transmission, treatment, or disposal of liquid or solid industrial or domestic waste; and
  17. “Water system” means any system for the acquisition, treatment, storage, transmission, or delivery of water.

History. Acts 1975, No. 490, § 3; A.S.A. 1947, § 20-1903; Acts 2007, No. 45, § 1; 2009, No. 163, § 6; 2019, No. 383, § 23.

Amendments. The 2009 amendment substituted “§ 14-217-109(b)” for “§ 14-217-109(c)” in (14), and substituted “§ 14-217-109(c)” for “§ 14-217-109(b)” in (15).

The 2019 amendment, in the introductory language, substituted “As” for “Whenever” and deleted “unless the context otherwise requires” from the end; and redesignated the definitions in alphabetical order.

Cross References. Notice on formation of improvement districts, § 14-86-301 et seq.

14-217-104. Application and construction of chapter.

  1. This chapter shall apply to any consolidated utility district already created and to any consolidated utility district which may be created pursuant to this chapter.
  2. This chapter shall constitute the complete and sole necessary authority to carry out the purposes of this chapter.
  3. This chapter is intended as supplemental to all other laws which authorize any of the purposes described in this chapter. This chapter may be relied upon and used as an alternative to any other laws by a consolidated utility district, without the necessity of compliance with the requirements of the other laws, in the accomplishment of any of the purposes described in this chapter.
  4. Nothing in this chapter shall be construed to reduce or take away any of the powers conferred prior to March 19, 1975 upon any district by special act or judicial decree.
  5. Except as provided in this subsection, the form of government or administration of any district as established by or pursuant to the authority of any special act or judicial decree before March 19, 1975, including the composition of and the method of selection of the members of any board of commissioners, shall continue in full force and effect as so established and all of which are ratified and confirmed. However, any member of any board of commissioners of any such district who has prior to March 19, 1975 been elected by the owners of real property within the district shall after March 19, 1975, commencing with the next regular election for the member prescribed by general or special law applicable to the district, be elected by all persons who are qualified electors of the municipality served by the district in which they reside, each resident to have one (1) vote. In any district in which commissioners are elected, the ownership of real property in the district shall not be a qualification to hold the office of commissioner. Nothing in this chapter shall be construed to affect or impair any action taken before March 19, 1975 by any board of commissioners of any such district or any bonds or other obligations issued prior to March 19, 1975 by any district, all of which are validated, ratified, and confirmed.
  6. Nothing in this chapter shall be construed to confer upon any district any power which by the Arkansas Constitution may be conferred only with the approval of a required portion of the owners of real property in the district unless approval has been or is acquired.
  7. Nothing in this chapter shall be construed to authorize any district or any municipality to issue or sell bonds or use the proceeds thereof to purchase, condemn, or otherwise acquire a utility system or part thereof owned or operated by a public utility corporation without the consent of the public utility corporation.

History. Acts 1975, No. 490, §§ 4, 14; 1977, No. 518, § 1; A.S.A. 1947, §§ 20-1904, 20-1914.

14-217-105. Creation of consolidated utility districts — Petition — Notice of hearing.

  1. Upon the petition of at least two-thirds (2/3) majority in assessed value, as shown by the last county assessment and the deed records in the office of the circuit clerk and ex officio recorder, of the owners of real property in any territory all or the larger portion of which lies within the corporate limits of any municipality, the governing body of the municipality shall, by ordinance, lay off into a consolidated utility district the territory described in the petition and shall appoint as commissioners of the district the three (3) persons who are nominated in the petition for the office of commissioner, provided that they are owners of real property in the district. If the petition does not contain the names of persons nominated as commissioners, the governing body shall appoint as commissioners three (3) owners of real property in the district.
  2. All such districts shall be numbered or given names as determined by the governing body. If the governing body does not act promptly to comply with the terms of this section, or of any other section of this chapter necessary to the creation or operation of the district, it may be compelled to do so by mandamus.
  3. The petition shall set forth the purposes of the district, and any district created under this chapter shall have all powers necessary or appropriate to the accomplishment of those purposes as provided in this chapter.
  4. The petition shall be filed with the city clerk. Upon the filing of the petition it shall be the duty of the city clerk to give notice that the petition will be heard at a meeting of the governing body of the municipality at the time set forth in the notice. The notice shall be published once a week for not less than two (2) weeks in a newspaper of general circulation in the municipality. The notice may be in the following form:

“All owners of real property within the following described territory (description of territory to be included in the district) are hereby notified that a petition has been filed with the city clerk of the city of (name of municipality) purporting to be signed by at least a two-thirds (2/3) majority in assessed value of the owners of real property within the territory, which petition prays that a consolidated utility district be formed embracing the territory, for the purpose of (description of consolidated system in general terms) and that the cost thereof be assessed against the real property situated in the territory. All owners of real property within the territory are advised that the petition will be heard at a meeting of the (governing body) to be held at m., on , 19 , and that at that meeting the (governing body) will determine whether those having signed the petition constitute at least a two-thirds (2/3) majority in assessed value of the owners of real property within the territory. At the meeting, all owners of real property within the territory who so desire will be heard upon the question.”

History. Acts 1975, No. 490, § 5; A.S.A. 1947, § 20-1905.

Cross References. Notice of formation of improvement districts, § 14-86-301 et seq.

14-217-106. General powers and purposes of districts.

In addition to any purposes and powers authorized elsewhere in this chapter, consolidated utility districts created prior to March 19, 1975, whether pursuant to special act or general law or created after March 19, 1975, subject, in the case of any district created after March 19, 1975, to the terms of the petition for creation of such district, may carry out and shall have the following purposes and powers:

  1. To construct consolidated utility systems;
  2. To operate and maintain consolidated utility systems;
  3. To sell or lease any consolidated system owned by it to or from any public utility corporation, municipality, or other person;
  4. To enter into contracts including, without limitation, contracts with any public utility corporation, municipality, or other person, concerning the normal operation and maintenance of any system owned by the district;
  5. To enter into agreements with public utility corporations, municipalities, or other persons for the joint or cooperative ownership, financing, construction, or operation and maintenance of any major facility of a utility system. In particular, but without limiting the generality of the foregoing, any district may participate in the financing of any major utility facility owned or to be owned by the other party to the agreement in exchange for the ownership of a portion or the use of the major facility or for an agreed upon portion of the electricity or water thereof. Any such agreement:
    1. May provide for the creation of a joint board or committee for administration of the undertaking covered by the agreement or for the delegation of authority to administer such an undertaking to one or more parties to the agreement;
    2. May contain provisions specifying the ownership interests of the parties in a major utility facility, including provisions permitting or requiring the exchange by a district with one (1) or more other parties to the agreement of an interest in one (1) or more portions of the major facility for an interest in one (1) or more other portions thereof, and specifying the procedure therefor; and
    3. May contain such other terms and conditions as the parties consider appropriate;
  6. To retain agents and employees and fix their compensation;
  7. To sell and issue revenue bonds and assessment-secured bonds in order to accomplish any of the purposes of this chapter;
  8. To establish rates and charges for services of any system owned by it;
  9. To establish accounts in one (1) or more banks and to make deposits therein and withdrawals therefrom, with or without requiring bond of the depository as determined by the district;
  10. To apply for and receive any moneys or properties from public utility corporations, municipalities, and other persons and to enter into contracts and agreements in connection therewith;
  11. To invest and reinvest any of its moneys in securities as determined by the district;
  12. In the case of districts created pursuant to laws heretofore enacted, to carry out such purposes and exercise such powers as may be authorized by such laws;
  13. To take such action as may be necessary or appropriate to carry out the purposes or to exercise the powers authorized by this chapter.

History. Acts 1975, No. 490, § 6; 1979, No. 527, § 1; A.S.A. 1947, § 20-1906.

14-217-107. Rights and powers of districts pertaining to assessments, repairs, and sale of property.

  1. Any district, whether created before or after March 19, 1975, shall be governed by and shall have the rights and powers conferred by the provisions of §§ 14-92-201, 14-92-203 — 14-92-208, 14-92-210 — 14-92-232, 14-92-235 — 14-92-239 in particular §§ 14-92-201, 14-92-207, 14-92-208, 14-92-216, 14-92-221, 14-92-223 — 14-92-232, 14-92-235 — 14-92-239, as they pertain to appointment of an assessor, assessment of benefits, filing of assessments of benefits, giving of notices, reassessment of benefits, levy of assessments and taxes, payment and collection of assessments and taxes, enforcement of delinquent assessments, accrual of interest on assessments, preservation and repair of systems, and sale of property.
  2. No assessment of benefits shall be levied except with the approval of two-thirds (2/3) in assessed value, as shown by the last county assessment and the deed records in the office of the circuit clerk and ex officio recorder, of the owners of real property in the district. This approval may, however, be reflected by the petition referred to in § 14-217-105(a). Subject to such approval, nothing in this chapter shall be construed to limit the number of assessments that may be levied by a district.
  3. Any assessment of benefits imposed pursuant to this chapter, and any taxes collected thereon, may be pledged to secure the payment of assessment-secured bonds issued under this chapter or used to accomplish any of the purposes authorized by this chapter, including without limitation the operation and maintenance of any consolidated utility system.

History. Acts 1975, No. 490, § 8; A.S.A. 1947, § 20-1908.

14-217-108. Location of consolidated system.

  1. Subject to the provisions of subsection (b) of this section, any consolidated system or major facility constructed or financed under the authority of this chapter, whether constructed or financed by a district alone or in a joint or cooperative undertaking pursuant to § 14-217-106(5), may, subject to § 14-200-111, be constructed, wholly or partly, at such locations as, in the judgment of the board of commissioners, best serves the owners of real property within the district and the users of the consolidated system, whether within or without the boundaries of the district and whether within or without the municipality or the county within which the district is located.
  2. Anything contained in this chapter to the contrary notwithstanding, nothing contained herein, including, without limitation, subdivisions (3)-(5) of § 14-217-106 and subsection (a) of this section, shall be construed to authorize any district to acquire or construct any property or facility outside the boundaries of the municipality in which it is located for the operation of an electric system or any portion thereof or to enter into any lease, contract, or agreement concerning any such property or facility except for the production, generation, or bulk transmission of electricity for the use of the district.
  3. No restriction or limitation contained in this section shall be construed to reduce or take away or to restrict any district in the exercise of any power conferred upon the district by any other act or law or any judicial decree heretofore entered.

History. Acts 1975, No. 490, § 7; A.S.A. 1947, § 20-1907.

14-217-109. Payment of costs — Authority to use funds and revenues and to issue bonds.

  1. Consolidated utility districts are authorized to use any available funds and revenues to pay and provide for costs of accomplishing any of the purposes authorized by this chapter and are authorized to sell and issue bonds and to use the proceeds thereof to pay and provide for costs of accomplishing construction under this chapter, either alone or with other available funds and revenues. The amount of bonds issued shall be sufficient to pay all costs of accomplishing the construction, all costs of issuing the bonds, amounts necessary for reserves, if desirable, the amount necessary to provide for debt service on the bonds until funds for the payment thereof are available, and any other costs of whatever nature necessary or appropriate to the accomplishment of the construction.
    1. Bonds issued by the district may be assessment-secured bonds. The district may pledge for the security and payment of assessment-secured bonds all or any specified portion of the uncollected assessments of benefits levied by the district. As additional security, the district may pledge for the security and payment of assessment-secured bonds all or any specified portion of the revenues including, without limitation, lease rentals, derived or to be derived by the district from any systems owned or operated by the district.
    2. In the resolution or trust indenture authorizing or securing assessment-secured bonds, the district may provide for suspension of collection of assessments or taxes and the use of other funds or revenues for payment of such bonds, upon terms and conditions set forth in the resolution or trust indenture.
    1. Bonds issued by the district may be revenue bonds. The district may pledge for the security and payment of revenue bonds all or any specified portion of the revenues including, without limitation, lease rentals derived or to be derived by the district from any systems owned or operated by the district.
    2. In this regard, but without limiting the generality of the foregoing, the district is authorized to issue revenue bonds for the purpose of financing construction of one (1) or more separate and distinct systems and to pledge to the revenue bonds, either by direct cross pledge or by pledge of surplus revenues, all or any specified portion of the revenues derived or to be derived from other systems owned or operated by the district.
  2. Subject to covenants and agreements entered into under the authority of this chapter or other laws, any district may use any of its revenues for any lawful purpose.

History. Acts 1975, No. 490, § 9; A.S.A. 1947, § 20-1909.

14-217-110. Bonds generally.

  1. Bonds of the district shall be authorized by resolution of the board of commissioners.
  2. The bonds may be coupon bonds, payable to bearer, or may be registrable as to principal only or as to principal and interest, and may be made exchangeable for bonds of another denomination, may be in such form and denominations, may have such date or dates, may be stated to mature at such time or times, may bear interest payable at such times and at such rate or rates, may be made subject to such terms of redemption in advance of maturity at such prices, and may contain such terms and conditions, all as the board shall determine.
  3. The bonds shall have all the qualities of negotiable instruments under the laws of the State of Arkansas, subject to provisions as to registration as set forth above.
  4. The authorizing resolution may contain any of the terms, covenants, and conditions that are deemed desirable by the board, including, without limitation, those pertaining to the maintenance and investment of various funds and reserves, the nature and extent of the security, the issuance of additional bonds and the priority of pledges in that event, the custody and application of the proceeds of the bonds, the collection and disposition of assessments and of revenues, the investing and reinvesting in securities specified by the board) of any moneys during periods not needed for authorized purposes, and the rights, duties, and obligations of the district, the board, and of the holders and the registered owners of the bonds.
  5. The authorizing resolution may provide for the execution of a trust indenture by the district with a bank or trust company within or without the State of Arkansas. The trust indenture may contain any terms, covenants, and conditions that are deemed desirable by the board including, without limitation, those pertaining to the maintenance and investment of various funds and reserves, the nature and extent of the security, the issuance of additional bonds and the priority of pledges in that event, the custody and application of the proceeds of the bonds, the collection and disposition of assessments and of revenues, the investing and reinvesting in securities specified by the board of any moneys during periods not needed for authorized purposes, and the rights, duties, and obligations of the board, the trustee, and the holders and registered owners of the bonds.
  6. The bonds shall be executed by the manual or facsimile signature of the chairman of the board and by the manual signature of the secretary of the board. The coupons attached to the bonds may be executed by the facsimile signature of the chairman of the board. In case any of the officers whose signatures appear on the bonds or coupons shall cease to be officers before the delivery of the bonds or coupons, their signatures shall, nevertheless, be valid and sufficient for all purposes. The district shall adopt and use a seal in the execution and issuance of the bonds, and each bond shall be sealed with the seal of the district.
  7. The bonds may be sold for such price, including, without limitation, sale at a discount and may be sold in such manner as the district may determine.
  8. It shall be plainly stated on the face of each bond that it has been issued under the provisions of this chapter, that the bonds are obligations only of the district, and that in no event do they constitute any indebtedness for which the faith and credit of any municipality is pledged.
  9. No member of the board of commissioners shall be personally liable on the bonds or for any damages sustained by anyone in connection with any contracts entered into in carrying out the purposes and intent of this chapter, unless he shall have acted with corrupt intent.

History. Acts 1975, No. 490, § 10; 1981, No. 425, § 43; A.S.A. 1947, § 20-1910.

14-217-111. Bonds — Mortgage lien.

  1. The resolution or trust indenture authorizing or securing any bonds issued hereunder may impose a foreclosable mortgage lien upon the system constructed in whole or in part with the proceeds thereof.
  2. The nature and extent of the mortgage lien may be controlled by the resolution or trust indenture including, without limitation, provisions pertaining to the release of all or part of the system from the mortgage lien and the priority of the mortgage lien in the event of the issuance of additional bonds.
  3. Subject to such terms, conditions, and restrictions as may be contained in the resolution or trust indenture, any holder of bonds issued under this chapter or of any coupon attached thereto may, either at law or in equity, enforce the mortgage lien and may, by proper suit, compel the performance of the duties of the officials of the district set forth in the resolution or trust indenture authorizing or securing the bonds.

History. Acts 1975, No. 490, § 9; A.S.A. 1947, § 20-1909.

14-217-112. Bonds — Default — Receiver.

  1. In the event of a default in the payment of the principal of or interest on any revenue bonds issued under this chapter, any court having jurisdiction may appoint a receiver to take charge of the system constructed, in whole or in part, with the proceeds thereof.
  2. The receiver shall have the power to operate and maintain the system and to charge and collect rates and rents sufficient to provide for the payment of the principal of and interest on the revenue bonds, after providing for the payment of any costs of receivership and operating expenses of the system, and to apply the revenues derived from the system in conformity with this chapter and the resolution or trust indenture authorizing or securing the revenue bonds.
  3. When the default has been cured, the receivership shall be ended and the system returned to the district.
  4. The relief afforded by this section, shall be construed to be in addition and supplemental to the remedies that may be afforded the trustee for the bondholders and the bondholders in the resolution or trust indenture authorizing or securing the bonds. This relief shall be so granted and administered as to accord full recognition to priority rights of bondholders as to the pledge of revenues from, and the mortgage lien on, the system as specified in and fixed by the resolutions or trust indentures authorizing or securing successive bond issues.

History. Acts 1975, No. 490, § 9; A.S.A. 1947, § 20-1909.

14-217-113. Refunding bonds.

Bonds may be issued for the purpose of refunding any bonds issued under this chapter. Refunding bonds may be either sold or delivered in exchange for the bonds being refunded. If sold, the proceeds may be either applied to payment of the bonds being refunded or deposited in trust and applied as provided by § 19-9-301.

History. Acts 1975, No. 490, § 11; A.S.A. 1947, § 20-1911.

14-217-114. Bonds — Tax exemption.

Bonds issued under the provisions of this chapter, and the interest thereon, shall be exempt from all state, county, and municipal taxes. This exemption shall include income, inheritance, and estate taxes.

History. Acts 1975, No. 490, § 12; A.S.A. 1947, § 20-1912.

A.C.R.C. Notes. Language excluding property taxes from the exemption provided by this section was deleted pursuant to Ark. Const. Amend. 57, § 1 and § 26-3-302. Arkansas Const. Amend. 57, § 1 provides that the General Assembly may classify intangible personal property for assessment at lower percentages of value than other property and may exempt one or more classes of intangible personal property from taxation, or may provide for the taxation of intangible personal property on a basis other than ad valorem. Section 26-3-302 exempts all intangible personal property in this state from all ad valorem tax levies of counties, cities, and school districts in the state as of January 1, 1976.

14-217-115. Investment of public funds in bonds.

Any municipality or any board, commission, or other authority established by ordinance of any municipality, or the boards of trustees, respectively, of the firemen's relief and pension fund and the policemen's pension and relief fund of any municipality, or the board of trustees of any retirement system created by the General Assembly of the State of Arkansas, may, in its discretion, invest any of its funds not immediately needed for its purposes in bonds issued under the provisions of this chapter. Bonds issued under the provisions of this chapter shall be eligible to secure the deposit of public funds.

History. Acts 1975, No. 490, § 13; A.S.A. 1947, § 20-1913.

Chapter 218 Consolidated Water And Light Improvement Districts

Publisher's Notes. As to applicability of certain laws to municipal improvement districts existing prior to July 1, 1952, see §§ 14-90-102 and 14-90-103.

Cross References. Commission for operation of light and water plants, § 14-199-401 et seq.

Hearing and establishment of municipal improvement districts, § 14-88-207.

Local government reserve funds, § 14-73-101 et seq.

Proceedings to correct errors or irregularities in formation of district, § 14-86-401 et seq.

Tort liability immunity, § 21-9-301 et seq.

Effective Dates. Acts 1927, No. 350, § 41: approved Mar. 28, 1927. Emergency clause provided: “This act, being necessary for the immediate preservation of public peace, health, and safety, by reason of the inadequacy of existing water and light plants in many cities and the great economies which can be affected in consolidating same, and in improving same after consolidation, an emergency is hereby declared to exist and this act shall take effect and be in force from and after its passage.”

Acts 1981, No. 425, § 54: Mar. 11, 1981. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

14-218-101. Scope of chapter — Applicability of general laws.

  1. None of the provisions of this chapter shall apply to any consolidated improvement district or districts consolidated by a special act of the General Assembly.
  2. Except as otherwise provided in this chapter, the district, the board of improvement, the members thereof, the assessors, and every agent and employee of the district shall be governed by the general laws relating to improvement districts in cities and towns and shall take the oaths, make the bonds, file the reports, perform the duties, have the powers, and be subject to the limitations therein prescribed.

History. Acts 1927, No. 350, §§ 30, 39; Pope's Dig., §§ 7429, 7438; A.S.A. 1947, §§ 20-531, 20-539.

14-218-102. Purpose of districts.

Improvement districts may be established in cities of the first and second class in the manner provided in this chapter for the purpose of acquiring, taking over, consolidating, enlarging, improving, extending, repairing, and maintaining an existing waterworks plant and system and an electric light plant and system theretofore acquired or constructed by separate improvement districts in those cities.

History. Acts 1927, No. 350, § 1; Pope's Dig., § 7400; A.S.A. 1947, § 20-501.

14-218-103. Petition for establishment of district.

Whenever any ten (10) owners of real property in any city shall petition the city council to lay off and establish an improvement district embracing all of the real property in the city, the city council may, by ordinance, lay off the entire city into one (1) improvement district to be known as “Consolidated Water and Light Improvement District of the City of ”, if it finds that the acquiring and taking over of an existing waterworks plant and system theretofore acquired or constructed by an improvement district named in the petition, and the taking over and acquiring of an existing electric light plant and system theretofore acquired or constructed by an improvement district named in the petition, and the consolidation of the plants and systems, and the enlarging, extending, and repairing the existing plants and systems constitute a single improvement of a local nature beneficial to all of the real property in the city.

History. Acts 1927, No. 350, § 2; Pope's Dig., § 7401; A.S.A. 1947, § 20-502.

14-218-104. Publication of ordinance establishing district.

Within twenty (20) days after the passage of the ordinance, the clerk of the city shall publish the ordinance of the council laying off and establishing the district. The ordinance shall be published in a newspaper published in the city or town, for one (1) insertion.

History. Acts 1927, No. 350, § 3; Pope's Dig., § 7402; A.S.A. 1947, § 20-503.

14-218-105. Hearing on petition — Notice — Review.

  1. Before passing the ordinance, the city council shall cause the city clerk to give notice by publication one (1) time a week for two (2) weeks in a newspaper published in the county in which the city may lie, advising the property owners within the proposed district that on a day therein named, the council will hear the petition and determine whether those signing the petition are actually owners of real property in such city.
  2. At the meeting named in the notice, the owners of real property within such city shall be heard before the council, which shall determine whether ten (10) persons who actually own real property within the limits of the city actually signed the petition.
  3. The finding of the council shall be conclusive unless within thirty (30) days thereafter suit is brought to review its action in the chancery court of the county where the city lies.

History. Acts 1927, No. 350, § 4; Pope's Dig., § 7403; A.S.A. 1947, § 20-504.

Cross References. Notice on formation of improvement districts, § 14-86-301 et seq.

14-218-106. Petition to take over light and water plant.

  1. If, within ninety (90) days after the publication of the ordinance creating and establishing the district, persons claiming to be a majority in value of the owners of real property within the district shall present to the city council a petition that the plants and systems be acquired and consolidated, that the improvements be made, that thereafter the plants and systems be maintained, and that the cost thereof be assessed and charged upon the real property situated within the district, the city clerk shall give notice by publication one (1) time a week for two (2) weeks in a newspaper published in the county in which the city lies. This publication shall advise the property owners within the district that on a day therein named the council will hear the petition and determine whether those signing the petition constitute a majority in value of the owners of real property.
  2. At the meeting named in the notice, the owners of real property within the district shall be heard before the council, which shall determine whether the signers of the petition constitute a majority in value. The findings of the council shall be conclusive unless within thirty (30) days thereafter suit is brought to review its action in the chancery court of the county where the city lies.
  3. In ascertaining whether the petition purporting to be signed by a majority in value of the owners of real property in the district is actually so signed, council and courts shall take and be governed by the valuation placed upon the property as shown by the last county assessment on file in the county clerk's office.
  4. The petition provided for in this section may be in the following form:

“We, the undersigned, being a majority in value of the owners of real property in consolidated Water and Light District of the city of , hereby petition your honorable body that said consolidated district proceed to acquire the existing water plant and systems heretofore constructed or acquired by Water Improvement District No of said city, and also to acquire the existing Light Plant and System heretofore constructed or acquired by Light Improvement District No of said City, and that said consolidated district proceed from time to time to enlarge, improve, extend, repair and maintain said consolidated plants and systems, and that the cost thereof be assessed and charged upon the real property within said consolidated district. We expressly consent that whenever the limits of the city of are extended that any part of the new territory embraced in said new limits may be annexed to this consolidated district upon the petition of a majority in value of the owners of real property in the territory proposed to be annexed to this district.”

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History. Acts 1927, No. 350, §§ 5, 33; Pope's Dig., §§ 7404, 7432; A.S.A. 1947, §§ 20-505, 20-506.

14-218-107. Appointment of board of improvement — Oath.

  1. If the city council shall determine after notice and hearing, as provided in § 14-218-106, that the signers of the petition constitute a majority in value of the owners of real property in the district, then the city council shall at once appoint three (3) persons owners of real property therein, who shall compose a board of improvement for the district.
  2. Before entering upon his duties, each member of the board shall take the oath of office required by Arkansas Constitution, Article 19, § 20, and take an oath that he will not either directly or indirectly be interested in any contract made by the board. The oath shall be filed in the office of the city clerk.

History. Acts 1927, No. 350, §§ 6, 7; Pope's Dig., §§ 7405, 7406; A.S.A. 1947, §§ 20-507, 20-508.

14-218-108. Plans for improvements.

    1. After their qualification, the board shall form plans for the improvements within the consolidated district.
    2. These plans shall include the existing water plant and system and the existing light plant and system owned and constructed by the separate water and light districts. The plans shall also include such additions, extensions, enlargements, improvements, repairs, and replacements thereof and thereto which the board may determine upon.
    3. As soon as the plans shall have been determined upon, the board shall file a copy of the plans and an estimate of the cost thereof with the city council. The copy of plans so filed shall show the character and extent of the plans and systems acquired or constructed by the separate light and water districts, as well as all new proposed improvements to be made for the purpose of consolidating the operation of the plants and all other new proposed improvements and extensions to the existing plants and systems. This copy shall also show the location of all water mains including such extensions and new mains as are proposed and shall show the location of all electric light and power lines including such extensions and new lines as are proposed.
    4. The estimate of the cost shall include all sums required to pay for the existing system as well as the cost of new improvements and extensions.
  1. At any time after the filing of the original plans provided for in this section, the board of improvement of such a consolidated district may, upon the request of the city council of the city in which such district is located, form additional plans for new improvements, extensions, repairs, or replacements to the consolidated water and electric light plant and system. A copy of the plans and of the estimated cost thereof shall be filed with the city council.

History. Acts 1927, No. 350, §§ 8, 23; Pope's Dig., §§ 7407, 7422; A.S.A. 1947, §§ 20-509, 20-524.

14-218-109. Appointment of assessors — Oath — Compensation.

  1. As soon as the board of improvement shall have filed the plans and the estimated cost of the improvement, the city council shall appoint three (3) electors of the city who shall constitute a board of assessment of the benefits to be received by each lot or block, or other subdivision of land within the district, by reason of the proposed local improvement.
  2. Each assessor shall, before entering upon the discharge of his duties, take oath that he will and truly assess, to the best of his knowledge and ability, the value of all the benefits to be received by each landowner by reason of the proposed improvements as affecting each of the lots, blocks, or parcels of land, or railway tracks and rights-of-way within the district.
  3. The members of the board of assessment shall each receive five dollars ($5.00) a day during the time that they shall be actually engaged in performing the duties prescribed in this chapter, to be paid out of the funds collected by taxation for such local improvement.

History. Acts 1927, No. 350, §§ 9, 10, 14; Pope's Dig., §§ 7408, 7409, 7413; A.S.A. 1947, §§ 20-510, 20-511, 20-515.

14-218-110. Assessments and corrections.

  1. The assessors shall at once proceed to inscribe in a book to be used for that purpose the description of each of the lots, blocks, or parcels of land, and railroad tracks and rights-of-way and shall assess the value of the benefit to accrue to each of the lots, blocks, or parcels of land, and railroad tracks and rights-of-way by reason of such improvement, which assessment of benefits they shall enter upon the book opposite the description thereof.
  2. They shall then subscribe the assessment and deposit it in the office of the city clerk, where it shall be kept and preserved as a public record.
  3. The assessment may be annually readjusted as provided in this chapter.
    1. The assessors, or their successors, or a majority of them, may file with the city clerk their certificate correcting erroneous descriptions of the lots, blocks, and rights-of-way, or describing the lots, blocks and rights-of-way where the description was in the original assessment defective or wholly or partly omitted.
    2. Upon the filing of the certificate, the city clerk shall extend or set out in the book the corrected or supplied descriptions, and the descriptions shall relate back to the filing of the assessment in the first instance and shall have the same force and effect as if correctly assessed and described and filed at that time.

History. Acts 1927, No. 350, § 10; Pope's Dig., § 7409; A.S.A. 1947, § 20-511.

Cross References. Assessments not to be reduced after issuance of bonds, § 14-86-602.

Partition of assessments among several owners of single tract, § 14-86-601.

14-218-111. Notice of filing of assessments.

Immediately on filing of the assessment, the city clerk shall insert the following notice in a newspaper published in the county in which the city lies:

“The assessment of consolidated water and light district of was filed in my office on the day of , 19 , and the assessment is now subject to inspection. Clerk of the City of

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History. Acts 1927, No. 350, § 11; Pope's Dig., § 7410; A.S.A. 1947, § 20-512.

14-218-112. Appeal from assessment.

  1. At any time within ten (10) days from the giving of the notice, anyone whose real estate is embraced in the assessment may file with the city clerk, in writing, his notice of appeal from the action of the board in making the assessment of his property.
  2. The appeal shall be heard and disposed of at the next regular meeting of the city council, and, on such appeal, the matter shall be heard de novo on such evidence as may be adduced on either side.
  3. The city council shall enter on its minutes the result of its finding on the appeal and shall then cause a copy of its finding to be certified to the board of assessors.
  4. The board shall make its assessment conform thereto if any change has been made therein by the city council.

History. Acts 1927, No. 350, §§ 12, 13; Pope's Dig., §§ 7411, 7412; A.S.A. 1947, §§ 20-513, 20-514.

14-218-113. Payment of assessments.

  1. It shall be provided by ordinance that the local assessment of benefits shall be paid in successive annual installments so that no annual installment shall in any one (1) year exceed twelve and one-half percent (12½%) of the assessed benefits accruing to the real property.
  2. The ordinance shall fix the day in each year when the local assessments of the year shall be paid.

History. Acts 1927, No. 350, § 15; Pope's Dig., § 7414; A.S.A. 1947, § 20-516.

14-218-114. Form of assessment ordinance — Lien on real property.

  1. The ordinance may be in the following form:
    1. The local assessment shall be a charge and lien against all the real property in the district from the date of the ordinance.
    2. The lien shall be entitled to preference over all judgments, executions, encumbrances, or liens whensoever created and shall continue until such local assessment, with any penalty and costs that may accrue thereon, shall be paid.
    3. As between grantor and grantee, all payments not due at the date of the transfer of the real property shall be payable by the grantee.

“Whereas the majority in value of the property holders owning property adjoining the locality to be affected and situated in Consolidated Water & Light District of , organized pursuant to Act No. of the Acts of 1927, have petitioned the council of the city of to acquire and construct the improvements as in said act provided, and that the cost thereof shall be assessed upon the real property of said district according to the benefits received; and “Whereas, said benefits received by each and every block, lot, and parcel of real property situated in said district equals or exceeds the local assessment thereon; and “Whereas, the estimated cost of said improvement is dollars; “Therefore it is now ordained by the City Council of the City of that said several blocks, lots, and parcels of real property in said district be assessed according to the assessment list for said improvement district as the same now remains in the office of the city clerk, and that per cent on each of said blocks, lots, and parcels shall be paid annually on or before the day of until the whole of said local assessment shall be paid.”

Click to view form.

History. Acts 1927, No. 350, § 16; Pope's Dig., § 7415; A.S.A. 1947, § 20-517.

14-218-115. Publication of assessment ordinance — Statute of limitations for challenging assessments.

  1. Within thirty (30) days after the passage of the ordinance mentioned in § 14-218-114, the city clerk shall publish a copy of it in a newspaper published in the town or city.
  2. All persons who shall fail to begin legal proceedings within thirty (30) days after such publication, for the purpose of correcting or invalidating such assessment, shall be forever barred and precluded.

History. Acts 1927, No. 350, § 17; Pope's Dig., § 7416; A.S.A. 1947, § 20-518.

Case Notes

Estoppel.

Where owners of property within the district paid assessments as they accrued for a period of 10 years, bonds were sold, and improvements made, attack on the formation of the district and the assessment against their property in suit against them for collection of delinquent assessments was purely collateral, and owners were estopped to question the validity of the assessments. Beloate v. Street Imp. Dist., 203 Ark. 899, 159 S.W.2d 451 (1942).

14-218-116. Copy of assessment delivered to collector — Warrant for collection.

  1. Within forty (40) days after the passage of the ordinance, unless the time is extended by the city council, the city clerk shall deliver to the city collector a copy of the assessment of benefits, containing a description of the blocks, lots, and parcels of land in the district and the amount assessed on each, duly extended against each lot, block, or parcel of land. The clerk shall deliver it with his warrant attached thereto to the city collector.
  2. The warrant may be in the following form:
  3. Similar writs shall be issued annually until the local assessment shall be fully paid.

“State of Arkansas, ss City of To the Collector of said City of You are hereby commanded to collect from the owners of real property described in the annexed copy of Ordinance No. the assessments of the same and as extended thereon for the current year and to pay same to the treasurer of the Consolidated Water and Light District of said City within sixty days from this date. Witness my hand and seal of office on this day of , 19 ”

Click to view form.

History. Acts 1927, No. 350, § 18; Pope's Dig., § 7417; A.S.A. 1947, § 20-519.

14-218-117. Collector's notice — Publication.

The collector shall immediately, upon the receipt of the tax list, cause to be published in a newspaper published in the city a notice, which may be in the following form:

“The tax books for the collection of the special assessment upon the real property in Consolidated Water & Light District of has been placed in my hands. All owners of real property lying in the district are required to pay their assessment to me within thirty (30) days from this date. If such payment is not made, action will be commenced at the end of that time for the collection of said assessment and for legal penalties and costs. Given under my hand this day of , 19 . Collector.”

Click to view form.

History. Acts 1927, No. 350, § 19; Pope's Dig., § 7418; A.S.A. 1947, § 20-520.

14-218-118. School property subject to assessment.

The property of the public school districts within the limits of a district shall be subject to assessment for the local improvements made by a consolidated district beneficial thereto. The president or secretary of the district may sign the petition for making of the improvements, when authorized by the board of directors.

History. Acts 1927, No. 350, § 31; Pope's Dig., § 7430; A.S.A. 1947, § 20-532.

14-218-119. Vesting of title in consolidated district — Liability of separate districts.

  1. As soon as the ordinance levying the assessment is passed, the title to the water system and plant, the title to the electric light system and plant theretofore acquired or constructed by separate water and light districts in the city, and the title to all other property of every kind and wherever situate owned by the separate districts shall vest in the consolidated district.
  2. The consolidated district shall be and become liable for all legal debts contracted by either of the separate districts and shall be obligated to pay them as they fall due.
    1. All valid mortgages, pledges, or liens made or given by the separate districts shall continue and remain in full force and effect until the debts which they secure have been paid and discharged.
    2. The separate districts shall remain severally liable, so far as their creditors are concerned, for all debts contracted by them until the debts shall have been discharged.
  3. As to the creditors of the separate districts, nothing in this chapter shall affect any uncollected assessments of the separate districts or the lien thereof until the respective debts of the districts have been paid in full.
  4. After the passage of the ordinance levying the assessments for the consolidated district, the assessments theretofore levied by the separate districts shall cease to be a lien as between grantor and grantee of real property located in the separate district.

History. Acts 1927, No. 350, § 20; Pope's Dig., § 7419; A.S.A. 1947, § 20-521.

14-218-120. Conveyance of property to consolidated district.

  1. Upon the passage of the ordinance levying the assessment of the consolidated district, it shall be the duty of the board of improvement of the separate water district and the duty of the board of improvement of the separate light district in the city to execute and deliver proper conveyances of all property owned by them respectively to the consolidated district.
  2. These conveyances shall recite on their face that they are made subject to any valid incumbrance on the property conveyed and that the consideration for the conveyance is the obligation and agreement of the consolidated district to pay all valid debts of the conveying districts.
  3. These instruments shall be acknowledged and recorded.

History. Acts 1927, No. 350, § 21; Pope's Dig., § 7420; A.S.A. 1947, § 20-522.

14-218-121. Retirement of bonds of separate districts before maturity.

  1. The board of improvement of the consolidated district is authorized to pay any notes or bonds given by either of the separate districts before the notes or bonds become due including accrued interest on the notes or bonds up until the date of payment.
  2. In order to facilitate the retirement of the notes or bonds, the board at its option, may pay, in addition to the face value and accrued interest on any bond or note, a premium of not exceeding one-half of one percent (½ of 1%) for each full year that the payment of the note or bond is anticipated.

History. Acts 1927, No. 350, § 22; Pope's Dig., § 7421; A.S.A. 1947, § 20-523.

14-218-122. Annual revision of assessments.

  1. The board of assessors of a consolidated district shall annually revise and readjust the assessment of property made by them for the district.
  2. The annual readjustment shall be made, and the list showing it filed with the city clerk at least ninety (90) days before the date fixed by the city council of the city for the collection of the annual installments of the assessments of the district.
    1. In making the annual revision and readjustment, the board of assessors shall have no power to increase the assessment or make any new assessment against any tract of land except to cover the increased value by reason of improvements actually placed on the land since the making of the first assessment or the last annual readjustment thereof, or to cover the increased or new benefits derived by any property by reason of new improvements, extensions, repairs, or replacements to the consolidated system made, or to be made, in accordance with additional plans filed as provided in § 14-218-108(b).
    2. The aggregate amount of the assessed benefits of all property in such districts, as shown by the assessment originally made, shall not be diminished by any readjustment or revision.
  3. The failure of the assessors of the districts to revise and readjust annually the assessment of the districts shall not invalidate or affect in any way the original assessment.
  4. At the time of making the annual readjustment and revision, the board of assessors may correct and amend the description of any property improperly described in the original assessment, or any previous revision thereof.

History. Acts 1927, No. 350, § 24; Pope's Dig., § 7423; A.S.A. 1947, § 20-525.

Cross References. Assessments not to be reduced after issuance of bonds, § 14-86-602.

14-218-123. Revised assessment list filed with city clerk — Notice.

  1. Immediately after making the annual readjustment and revision, the board of assessors shall file with the city clerk a list of the tracts, lots, and parcels of land upon which the assessment has been charged by them. This list shall show the name of the owner of each tract, lot, and parcel of land and the value of the benefits to accrue to each of the tracts as fixed by them at the annual readjustment.
  2. The clerk shall insert in a newspaper published in the county in which the city is located the following notice:

“The list showing the annual readjustment of the assessment of the Consolidated Water & Light District , was filed in my office on the day of , 19 . Clerk.”

Click to view form.

History. Acts 1927, No. 350, § 25; Pope's Dig., § 7424; A.S.A. 1947, § 20-526.

14-218-124. Appeal from reassessment.

  1. Any owner of real estate located in the district, at any time within five (5) days from the giving of the notice, may appeal from the action of the board of assessors in readjusting or refusing to readjust the assessment against his property by filing with the clerk, in writing, his notice of appeal from the action of the board of assessors.
  2. The appeal shall be heard and disposed of at the next meeting of the city council.
  3. The city council shall enter upon its minutes the result of its findings on the appeal and shall have a copy of its findings certified to the board of assessors who shall make their assessment conform thereto if any change has been made therein by the council.
  4. Any person who shall fail to begin legal proceedings for the purpose of correcting or invalidating the readjustment or any new assessment against his property within thirty (30) days from the publication of the notice provided for in § 14-218-123 shall be forever barred and precluded.

History. Acts 1927, No. 350, § 26; Pope's Dig., § 7425; A.S.A. 1947, § 20-527.

14-218-125. Computation of tax upon reassessment.

The annual tax or installment shall be computed and extended upon the assessment as readjusted and revised as hereinbefore provided by the clerk without further ordinance or levy by the council.

History. Acts 1927, No. 350, § 27; Pope's Dig., § 7426; A.S.A. 1947, § 20-528.

14-218-126. Delinquency.

  1. If any assessment made under this chapter shall not be paid within the time mentioned in the notice published by the collector, the collector shall add thereto a penalty of twenty percent (20%) and shall at once return a list of the property on which the assessments have not been paid to the board of improvement as delinquent.
    1. The board shall thereupon proceed to collect the delinquent assessments by filing a complaint in equity in the court having jurisdiction of suits for the enforcement of liens upon real property.
    2. The pleadings, service, right and time of redemption, time and manner of taking appeal, and all procedure, both in the lower court and on appeal, shall be governed by the general statutes providing for such suits by improvement districts in cities and towns.

History. Acts 1927, No. 350, §§ 28, 29; Pope's Dig., §§ 7427, 7428; A.S.A. 1947, §§ 20-529, 20-530.

Cross References. Remission of delinquent penalties in excess of 10 percent, § 14-86-1002.

Right of redemption, § 14-86-1501 et seq.

Suits for collection of delinquent taxes, § 14-90-1001 et seq.

Case Notes

Complaint.

A complaint in equity is required to be filed by the board of improvement in the court having jurisdiction of suits for the enforcement of liens upon real property for the condemnation and sale of delinquent property for the nonpayment of the assessment, and the owner of the property assessed shall be made a defendant, if known, and if unknown, that fact shall be stated in the complaint and the suit shall proceed as a proceeding in rem against the party assessed. Hudgins v. Schultice, 118 Ark. 139, 175 S.W. 526 (1915).

14-218-127. Operation of plants by city — Use of income.

  1. The city in which the consolidated district is located, through its proper officers, shall have full power and authority to operate the consolidated plant and system acquired and improved by the consolidated district instead of the board of improvement of the consolidated district.
  2. The city may supply water, light, and power to private consumers and make and collect proper charges for such service; the gross income derived therefrom shall be first devoted by the city to the payment of operating expenses.
  3. The income derived from the operation after paying operating expenses shall be annually paid by the city to the board of improvement.
  4. So much of the amount so received by the board of improvement as may be necessary for the purpose shall be used by the board of improvement for the maintenance and improvement of the consolidated system. Any balance not so expended may be used by the board of improvement in paying indebtedness theretofore incurred by the consolidated district.
  5. None of the provisions of this section shall apply to any consolidated improvement district or districts consolidated by a special act of the General Assembly.

History. Acts 1927, No. 350, § 30; Pope's Dig., § 7429; A.S.A. 1947, § 20-531.

14-218-128. Use of funds for improvements outside city.

It shall be lawful for money raised by assessment in the district to be expended in the purchase of lands or erection of houses, reservoirs, or other improvements outside of the limits of the city in which the district is located, which may be necessary for the proper construction and operation of the waterworks and electric light plant.

History. Acts 1927, No. 350, § 32; Pope's Dig., § 7431; A.S.A. 1947, § 20-533.

14-218-129. Powers of board concerning improvements.

  1. The board of improvement shall have control of the construction of improvements of the district.
  2. The board may:
    1. Advertise for proposals for doing any work by contracts and may accept or reject any proposals;
    2. Appoint all necessary agents and engineers for carrying on the work and making plans herein provided and may fix their pay;
    3. Buy all necessary material and implements;
    4. Sell any such material or implements as may be on hand and which may not be necessary for the completion of the improvement under way or which may have been completed; and
    5. In general, make all contracts in the prosecution of the work as may best subserve the public interest.

History. Acts 1927, No. 350, §§ 34, 35; Pope's Dig., §§ 7433, 7434; A.S.A. 1947, §§ 20-534, 20-535.

14-218-130. Contractors' bonds.

All contractors shall be required to give bond for the faithful performance of such contracts as may be awarded them, with good and sufficient securities, in an amount equal to the amount of the contract work. The board shall not remit or excuse the penalty or forfeiture of the bond or the breaches thereof.

History. Acts 1927, No. 350, § 35; Pope's Dig., § 7434; A.S.A. 1947, § 20-535.

Cross References. Public contractors' bonds, § 22-9-401 et seq.

14-218-131. Bonds — Issuance.

  1. In order to hasten the work provided for in the original or any additional or supplementary plans and to pay the indebtedness owed by any separate district whose plant or system is acquired by such consolidated district, the board may borrow money at a rate or rates of interest as provided by the resolution authorizing issuance of bonds.
  2. In order to carry out any of the above purposes, the board may sell bonds which may be secured by a mortgage of uncollected assessments or a part of same and by a mortgage on the consolidated plant and system. The sale of all bonds shall be at public auction after notice of such sale has been published one (1) time a week for two (2) weeks in some newspaper published and having a bona fide circulation in the county in which the district is located.
  3. Mortgages given by the board shall have priority in the order of their recording.
  4. The total outstanding indebtedness of the district, excluding interest, shall never exceed fifty percent (50%) of the assessed value of the real estate in the district, as shown by the last county assessment.

History. Acts 1927, No. 350, § 36; Pope's Dig., § 7435; Acts 1981, No. 425, § 30; A.S.A. 1947, § 20-536.

Cross References. Financing of electric facilities by improvement districts, § 14-216-101.

14-218-132. Additional assessments.

  1. If the assessment first levied shall be insufficient to complete the improvement and pay the debts of the district, additional assessments may be levied and collected from time to time.
    1. The total assessment against any piece of property shall never exceed the benefits received by it.
    2. The total assessments collected from all the property in the district under the provisions of this chapter shall not exceed fifty (50) percent of the assessed value of all property in the district for state and county purposes, according to the assessment list on file at the time of the publication of the ordinance creating the district.

History. Acts 1927, No. 350, § 37; Pope's Dig., § 7436; A.S.A. 1947, § 20-537.

14-218-133. Eminent domain.

  1. The right of eminent domain is conferred upon any consolidated district for the purpose of securing any lands or rights-of-way needed in making an improvement.
  2. Suits brought by the board for condemnation of lands or rights-of-way shall be deemed cases of public interest and shall be advanced both by the circuit courts and Supreme Court.
  3. Upon the filing of a condemnation suit in the circuit court, the court or judge in vacation may designate an amount of money to be deposited by the district subject to the order of the court and for the purpose of making compensation when the amount thereof shall have been assessed at the trial of the cause, and the court or judge in vacation shall designate the place of the deposit.
  4. Whenever the deposits shall have been made in compliance with order of the court or judge, it shall be lawful for the district to enter upon the land and proceed with their work prior to the assessment and payment of damages for the use and right to be determined in the suit.

History. Acts 1927, No. 350, § 38; Pope's Dig., § 7437; A.S.A. 1947, § 20-538.

Chapter 219 Lease Or Sale Of Utility Plants

Effective Dates. Acts 1923, No. 322, § 6: approved Mar. 6, 1923. Emergency clause provided: “All laws or parts of laws in conflict herewith be and the same are hereby repealed, and this act being necessary for the immediate preservation of the public peace, health and safety shall take effect and be in force from and after its passage.”

Acts 1927, No. 349, § 2: approved Mar. 28, 1927. Emergency clause provided: “This act being necessary to the public welfare, an emergency is hereby declared to exist and this act to take effect from and after its passage.”

Case Notes

Conflicts of Interest.

It is against public policy for the officers of a municipal corporation to lease or sell waterworks or light plants to themselves. Rogers v. Sangster, 180 Ark. 907, 23 S.W.2d 613 (1930).

14-219-101. Lease.

  1. The board of commissioners of any improvement district, operating a system of waterworks, gas plants, or electric plants belonging to and owned by any improvement district, may lease the system of waterworks, gas plants, or electric plants for such period of time and upon such terms and conditions as the board of commissioners may deem for the best interest of the district.
  2. The lessees shall be required to maintain, keep in repair, and return the plant to the district in as good condition as when received, ordinary wear and tear excepted, but the maintenance contemplated shall permit more modern or suitable machinery or equipment, equally as efficient to perform the service required, to be installed in place of machinery or equipment then in use.
  3. No lease shall be made except to persons, firms, or corporations holding a franchise to operate a system of waterworks, gas plants, or electric plants in the city or town in which the plant or system to be leased is situated.
  4. No plant shall be taken over for operation under the provisions hereof unless and until the lessee files with the district an approved bond, in such sum as the board of commissioners may require, for the faithful fulfillment of the terms of the lease.

History. Acts 1923, No. 322, § 1; Pope's Dig., § 7390; A.S.A. 1947, § 19-3906.

Case Notes

Municipalities.

A city has no authority under this section to lease a waterworks and electric light plant owned by improvement districts although operated by the city. Rogers v. Sangster, 180 Ark. 907, 23 S.W.2d 613 (1930).

Cited: Ogan v. Jackson, 175 Ark. 820, 300 S.W. 446 (1927); Gantt v. Arkansas Power & Light Co., 194 Ark. 925, 109 S.W.2d 1251 (1937).

14-219-102. Sale.

  1. The board of commissioners of any improvement district owning a system of waterworks, gas plants, or electric plants may sell the system or any of them, together with the right to operate them, when they shall determine by resolution adopted by a majority vote of the board that it would be for the best interest of the district that the sale be consummated.
    1. Before any sale shall be consummated, there shall be filed within one (1) year after the adoption of the resolution, with the board of commissioners of the improvement district, a petition, signed by a majority in value as shown by the last county assessment of the owners of real property within the improvement district proposing to make the sale, asking that such sale be made and stating the minimum price at which such sale shall be made. In no event shall the minimum price be a sum less than the amount necessary to pay all the outstanding secured indebtedness against the plant or system.
    2. Upon the filing of this petition, the board of commissioners shall give notice, by publication one (1) time a week for two (2) weeks in a newspaper published in the county in which the improvement district may lie, advising the owners of real property within the improvement district that on a day therein named the board of commissioners of the improvement district will hear the petition and determine whether those signing the petition constitute a majority in value of such owners of real property.
    3. At the meeting named in the notice, the owners of real property within the improvement district shall be heard before the board of commissioners, which shall determine whether the signers of the petition constitute a majority in value. The finding of the board of commissioners shall be conclusive, unless within thirty (30) days thereafter suit is brought to review its action in the chancery court of the county in which the improvement district lies.
    4. In determining whether those signing the petition constitute a majority in value of the owners of the real property within the improvement district, the board of commissioners and the chancery court shall be guided by the records of deeds in the office of the recorder of the county and shall not consider any unrecorded instrument.

History. Acts 1923, No. 322, § 2; Pope's Dig., § 7391; A.S.A. 1947, § 19-3907.

14-219-103. Payment — Bond.

  1. Where the sale price is an amount greater than the outstanding secured indebtedness of the district, at least the excess over the amount of the secured indebtedness shall be paid in cash.
    1. All deferred payments, if any, shall be secured by a bond for one and one-half (1½) times the total amount of the deferred payments, which bond shall be for the maintenance of the plant or system during the time of any outstanding secured indebtedness and for the prompt payment of any interest or principal on any secured indebtedness as and when it shall fall due.
    2. The bond shall be further conditioned that the purchaser will maintain insurance upon the plant for an amount to be agreed upon, with a “loss payable” clause for the benefit of the district making the sale as its interest may appear.
    3. The bond herein provided for shall be approved by the board of commissioners.
    4. The bond provided for in this section and § 14-219-101 shall be made by a corporate surety company authorized to do business in the State of Arkansas.

History. Acts 1923, No. 322, § 3; Pope's Dig., § 7392; A.S.A. 1947, § 19-3908.

14-219-104. Deed of conveyance — Sale of all property — Satisfaction of lien.

  1. The transfer of property under this chapter shall be evidenced by a deed of conveyance in the usual form and with the usual covenants or warranty. However, a lien against the property sold shall be retained in the deed for all of the unpaid sale price with the right, upon default of payment of any interest or indebtedness when it falls due, to declare all of the unpaid sale price due and payable and to proceed to a foreclosure. The deed of conveyance shall be executed on behalf of any improvement district by the chairman and secretary of the board of commissioners.
  2. A receipt duly executed by a majority of the board of commissioners of an improvement district shall release the purchaser from further liability for the payment of the amount recited in the receipt.
  3. The sale of all the property of an improvement district shall not work a forfeiture of the corporate entity of the district until all of the secured indebtedness of the district shall have been paid.
  4. Upon the payment of all indebtedness for which a lien may be retained in the deed of conveyance, the chairman and secretary of the board of commissioners of an improvement district are authorized and directed to satisfy the lien by a deed or release, or by marginal entry upon the deed records where it may be recorded.

History. Acts 1923, No. 322, § 4; Pope's Dig., § 7393; A.S.A. 1947, § 19-3909.

14-219-105. Use of initial payment.

The proceeds of any initial cash payment from the sale of any plant or system of any improvement district shall be applied first to the payment of all unsecured debts outstanding against the district on account of the plant or system. The remainder shall be, by the commissioners, placed in the treasury of the city or town wherein such plant or system is located to become a part of the general fund of the city or town.

History. Acts 1923, No. 322, § 5; 1927, No. 349, § 1; Pope's Dig., §§ 7394, 10046; A.S.A. 1947, § 19-3910.

Case Notes

In General.

Prior to the 1927 amendment, profits from the sale of waterworks would go to property owners of the district. Ogan v. Jackson, 175 Ark. 820, 300 S.W. 446 (1927).

Chapters 220-228 [Reserved.]

[Reserved]

Subtitle 14. Solid Waste Disposal, Waterworks, And Sewers Generally

Chapter 229 General Provisions

A.C.R.C. Notes. Acts 1987, No. 82, §§ 1, 2, provided that any city or county is prohibited from disposing solid waste in a county having a population between 26,900 and 27,400 according to the 1980 decennial federal census without prior approval of the quorum court of the receiving county.

Effective Dates. Acts 1983, No. 708, § 3: Mar. 23, 1983. Emergency clause provided: “It is hereby found and determined by the General Assembly that due to the types of soil in various areas of this State, individual sewage disposal systems adaptable to the soil of a certain area will not work satisfactorily in the soil of another area; that the future growth and expansion of the State is dependent upon the development of the necessary technology to provide a variety of individual sewage disposal systems adaptable to meet the different soil conditions that exist throughout the State; that the establishment of an Advisory Committee on Individual Sewage Disposal Systems is necessary to establish technical advice and assistance to the Division of Sanitarian Services of the Department of Health, and additional funds must be provided to enable the Division to offer leadership and technical assistance to encourage individual property owners to install sewage disposal systems that the Division has approved as being adaptable to the areas in which they are to be located; and that the immediate passage of this Act is necessary to accomplish such purpose. Therefore, an emergency is hereby declared to exist and this Act, being necessary for the preservation of the public peace, health, and safety, shall be in full force and effect from and after its approval.”

Acts 1997, No. 250, § 258: Feb. 24, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 1211 of 1995 established the procedure for all state boards and commissions to follow regarding reimbursement of expenses and stipends for board members; that this act amends various sections of the Arkansas Code which are in conflict with the Act 1211 of 1995; and that until this cleanup act becomes effective conflicting laws will exist. Therefore an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governer [sic], it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

Research References

ALR.

Validity of local regulation of hazardous waste. 67 A.L.R.4th 822.

Am. Jur. 15A Am. Jur. 2d, Commerce, § 89.

16 Am. Jur. 2d, Con. Law, § 292.

Am. Jur. 2d, Mun. Corp., § 569 et seq.

61A Am. Jur. 2d, Poll. Con., §§ 47, 244 et seq.

14-229-101. Individual Sewage Disposal Systems Advisory Committee — Creation — Members.

  1. There is established an advisory committee to be known as the “Individual Sewage Disposal Systems Advisory Committee”, for the purpose of making recommendations, advising, and providing assistance to the Program Administrator of the Environmental Program Section of the Division of Environmental Health Protection of the Department of Health concerning the utilization and application of alternate and experimental individual sewage disposal systems.
  2. The advisory committee shall consist of fourteen (14) members, to be appointed as follows:
    1. A member of the Arkansas Home Builders Association, to be appointed by the President of the Arkansas Home Builders Association;
    2. A member of the Arkansas Real Estate Commission, to be appointed by a majority vote of the commission;
    3. A member of the Arkansas Realtors Association, to be appointed by the President of the Arkansas Realtors Association;
      1. One (1) member who shall be a currently serving or former member of the board of a suburban improvement district or an officer or member of an association of property owners created by and pursuant to state law and organized for the purpose of maintaining common facilities, including sewage disposal facilities, in unincorporated subdivisions in this state, to be named by the Governor.
      2. However, in making the appointment, the Governor shall name a person who has been a developer or a member or officer of the board of a development company that has developed large unincorporated subdivisions in two (2) or more counties in this state;
    4. One (1) member who is a registered septic tank installer, to be appointed by the Governor;
    5. One (1) member who is a certified designated representative, to be appointed by the Governor;
    6. Two (2) members who are interested in individual sewage disposal systems research from the University of Arkansas, to be named by the President of the University of Arkansas;
    7. Three (3) members involved with the individual sewage disposal systems program of the Department of Health, to be appointed by the Secretary of the Department of Health;
    8. The Director of the Division of Environmental Quality or a designee;
    9. The State Conservationist of the United States Natural Resources Conservation Service or a designee; and
    10. The State Geologist with the Arkansas Geological Survey or a designee.
    1. The eight (8) members of the advisory committee appointed to serve thereon in the manner set forth in subdivisions (b)(1)-(7) of this section shall be appointed for terms of four (4) years.
    2. A vacancy in the term of any member due to death, resignation, or other cause shall be filled in the manner provided in this section for the original appointment for the unexpired portion of the term.
  3. Members of the advisory committee shall serve without pay but may receive expense reimbursement in accordance with § 25-16-901 et seq.
      1. The advisory committee shall elect from its membership a chair, a vice chair, and a secretary-treasurer, who shall each serve a term of one (1) year.
      2. Officers shall be eligible for election to succeed themselves.
    1. The advisory committee shall establish its own rules of procedure.
    2. The advisory committee shall meet upon call by the chair, at the request of any five (5) members of the committee stated in writing, at the request of the Director of the Division of Environmental Health Protection of the Department of Health, or upon call by the Secretary of the Department of Health.

History. Acts 1983, No. 708, § 1; A.S.A. 1947, § 19-5415; Acts 1991, No. 185, § 1; 1993, No. 129, § 1; 1993, No. 145, § 1; 1997, No. 250, § 89; 1999, No. 1164, § 126; 2007, No. 189, §§ 1, 2; 2019, No. 910, §§ 4856, 4857.

A.C.R.C. Notes. As originally amended by Acts 1993, No. 129, § 1, subdivision (c)(1) also provided that the six (6) members of the advisory committee “shall, at the first meeting of the committee, determine their respective terms by lot in such manner that the terms of three (3) members shall be for a term of two (2) years and the terms of the other three (3) members shall be for a term of four (4) years. Their successors shall be appointed for terms of four (4) years.”

Acts 1997, No. 1219, § 2, provided: “‘Arkansas Department of Pollution Control & Ecology’ renamed to ‘Arkansas Department of Environmental Quality’.

“(a) Effective March 31, 1999, the ‘Arkansas Department of Pollution Control & Ecology’ or ‘Department,’ as it is referred to or empowered throughout the Arkansas Code Annotated, is hereby renamed. In its place, the ‘Arkansas Department of Environmental Quality’ is hereby established, succeeding to the general powers and responsibilities previously assigned to the Arkansas Department of Pollution Control & Ecology. The Director of the Arkansas Department of Pollution Control & Ecology is directed to identify and revise all inter-agency agreements, financial instruments, funds, and other necessary legal documents in order to effect this change by March 31, 1999.

“(b) Nothing in this Act shall be construed as impairing the powers and authorities of the Arkansas Department of Pollution Control and Ecology prior to the effective date of the name change.”

Amendments. The 1993 amendment substituted “Program Administrator of the Environmental Program Section of the Division of Environmental Protection” for “Division of Sanitarian Services” in (a); substituted “the Environmental Program Section, Division of Environmental Health Protection” for “General Sanitation, Division of Sanitarian Services” in (b)(7); substituted “Environmental Health Protection” for “Division of Sanitarian Services” in (b)(8); substituted “State Conservationist of the United States Department of Agriculture Soil Conservation Service” for “Director of the Arkansas Soil and Water Conservation Commission” in (b)(10); substituted “A vacancy” for “Vacancies” at the beginning of (c)(2); made a minor punctuation change in (d); and substituted “Environmental Health Protection” for “Sanitarian Services” in (e)(3).

The 1997 amendment rewrote (d).

The 1999 amendment, in (b)(9), substituted “Environmental Quality” for “Pollution Control and Ecology.”

The 2019 amendment substituted “Secretary of the Department of Health” for “Director of the Department of Health” in (b)(8) and (e)(3); and substituted “Division of Environmental Quality” for “Arkansas Department of Environmental Quality” in (b)(9).

14-229-102. Individual Sewage Disposal Systems Advisory Committee — Powers and duties.

The Individual Sewage Disposal Systems Advisory Committee shall have the following powers and duties:

  1. To advise with and make recommendations to the Secretary of the Department of Health and the Director of the Division of Environmental Health Protection of the Department of Health, concerning the utilization and application of alternate and experimental individual sewage disposal systems;
  2. To advise with and assist the Division of Environmental Health Protection of the Department of Health in efforts to promote the experimentation, development, and improvement of individual sewage disposal systems;
  3. To advise with and assist the division in the development and implementation of:
    1. Training and educational programs for employees of the division to acquaint the employees with technological advances in the development of experimental and alternate systems for individual sewage disposal systems;
    2. Opportunities for employees of the division to participate in seminars and other training programs designed for their technological advancement, including the promulgation of guidelines and regulations for reimbursement of expenses for employees who engage in the training opportunities;
    3. The acquisition of laboratory testing equipment necessary for the conducting of experiments and testing of experimental and alternate individual sewage disposal systems;
    4. The acquisition of necessary field supplies and equipment to enable the division to engage in necessary field activities to assist property owners in the installation, operation, and repair of experimental and alternate individual sewage disposal systems, and to enable the Department of Health to offer technical advice, when requested by property owners, with respect to the operation or repair of the equipment;
    5. To provide, if funds are available, technical assistance, materials, and equipment required for the modification or repair of experimental and alternate individual sewage disposal systems, which have been installed by property owners under permits issued by the department, of equipment approved by the department as being adequate to meet state individual sewage disposal systems standards; and
    6. To cooperate with and offer assistance to other public agencies, private developers, and home owners in the development, installation, operation, repair, modification, and improvement of experimental and alternate individual sewage disposal systems for the purpose of developing the necessary technological advancements required to meet the standards prescribed by the division for the installation and operation of individual sewage disposal systems deemed adequate to function, in accordance with the standards in the particular area in which the systems are to be installed;
    1. If a firm, person, or corporation violates any provision of the Arkansas Sewage Disposal Systems Act, § 14-236-101 et seq., or the rules or orders promulgated or issued by the State Board of Health or violates any condition of a license, permit, certificate, or any other type of registration, the committee may assess a civil penalty and suspend or revoke the license, permit certificate, or other type of registration of the firm, person, or corporation.
    2. A civil penalty assessed under subdivision (4)(A) of this section shall not exceed one thousand dollars ($1,000) for each violation.
    3. Each day of a continuing violation may be deemed a separate violation for purposes of penalty assessments.
    4. All fines collected under this section shall be deposited into the State Treasury and credited to the Public Health Fund to be used to defray the costs of administering the individual sewage disposal systems program.
    5. Subject to rules that may be implemented by the Chief Fiscal Officer of the State, the disbursing officer for the department may transfer all unexpended funds relative to fines collected under this section, as certified by the Chief Fiscal Officer of the State, to be carried forward and made available for expenditures for the same purpose for any following fiscal year;
    1. An applicant or interested party seeking review of a final agency decision regarding a permit under the Arkansas Sewage Disposal Systems Act, § 14-236-101 et seq., or the rules adopted by the State Board of Health under the Arkansas Sewage Disposal Systems Act, § 14-236-101 et seq., shall file a written appeal for a hearing before the committee within thirty (30) days after the receipt of the agency decision.
    2. An appeal to the committee shall be conducted in accordance with the Arkansas Administrative Procedure Act, § 25-15-201 et seq.; and
    1. After a hearing held under subdivision (4) or subdivision (5) of this section, a person who considers himself or herself injured in his or her person, business, or property by a final committee action is entitled to a review of the action by the State Board of Health.
    2. A person shall institute a proceeding for review under subdivision (6)(A) of this section by filing a petition with the department within thirty (30) days after service upon the person of the committee's final decision.

History. Acts 1983, No. 708, § 2; A.S.A. 1947, § 19-5416; Acts 2007, No. 189, § 3; 2011, No. 822, § 1; 2019, No. 910, § 4858.

Amendments. The 2011 amendment added (5) and (6).

The 2019 amendment substituted “Secretary of the Department of Health” for “Director of the Department of Health” in (1).

14-229-103. Termination of water service — Definition.

  1. A municipality owning or operating a public sewer system or sewer improvement district that provides sewer service to its citizens may request a water association, a water improvement district, or a water authority that provides the water service to terminate the water service to a resident who is delinquent at least thirty (30) days in making payment to the municipality for sewer service or solid waste service.
  2. The water association, water improvement district, or water authority shall send notice to a person who is delinquent in making payments for sewer service or solid waste service of the date the water service will be terminated and shall terminate the water service upon that date unless the balance due the municipality for sewer service or solid waste service is paid.
  3. The water association, water improvement district, or water authority shall terminate the water service upon certification by the municipality that the person:
    1. Is more than thirty (30) days delinquent in making payments for sewer service or solid waste service; and
    2. Has been sent notice of the termination of the water service as required under subsection (b) of this section.
  4. As used in this section, “water authority” means the public body politic and governmental entity organized under the Water Authority Act, § 4-35-101 et seq.

History. Acts 1995, No. 717, § 1; 2009, No. 195, § 1.

Amendments. The 2009 amendment inserted “or water authority” or similar language in (a), (b), and (c); inserted “or solid waste service” in (a), (b), and (c)(1); redesignated (c) and substituted “as required under subsection (b) of this section” for “by the municipality” in (c)(2); added (d); and made related and stylistic changes.

14-229-104. Rural water and wastewater entities — Electronic funds transfers.

All rural water and rural wastewater entities, however organized, may disburse funds for payment of debts by electronic funds transfer if:

  1. The person responsible for the disbursement maintains a ledger including without limitation the following information:
    1. The name and address of the entity receiving payment;
    2. The routing number of the bank in which the funds are held;
    3. The account number and the accounts clearinghouse trace number pertaining to the transfer; and
    4. The date and amount transferred; and
  2. Written consent for payment by electronic funds transfer is given by the entity to whom the transfer is made.

History. Acts 2009, No. 642, § 2.

Chapter 230 Water, Sewer, And Solid Waste Management Financing

A.C.R.C. Notes. Acts 2005, No. 1243, § 2, provided:

“Arkansas Soil and Water Conservation Commission renamed ‘Arkansas Natural Resources Commission’.

“(a)(1) “The ‘Arkansas Soil and Water Conservation Commission’ as it is referred to or empowered throughout the Arkansas Code, is renamed.

“(2) In its place, the ‘Arkansas Natural Resources Commission’ is established, succeeding to the general powers and responsibilities previously assigned to the Arkansas Soil and Water Conservation Commission.

“(3) The Executive Director of the Arkansas Soil and Water Conservation Commission is directed to identify and revise all interagency agreements, financial instruments, funds, and other necessary legal documents in order to effect this change.

“(b) Nothing in this act shall be construed as impairing the powers and authorities of the Arkansas Soil and Water Conservation Commission before the effective date of the name change.”

Cross References. Purchase or construction of waterworks system, § 14-234-204.

Effective Dates. Acts 1975, No. 274, § 11: July 1, 1975.

Acts 1975 (Extended Sess., 1976), No. 1074, § 2: Jan. 30, 1976. Emergency clause provided: “It is hereby found and determined by the Seventieth General Assembly, meeting in Extended Session, that the immediate passage of this Act is necessary to prevent irreparable harm to the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after its passage and approval.”

Acts 1987, No. 866, § 3: Apr. 13, 1987. Emergency clause provided: “It is hereby found and determined by the General Assembly that because of the case Ricarte v. State, CR 86-31, a question has arisen over the validity of Act 1074 of the Extended Session of 1976; that this Act is a reenactment of the former law; and that the immediate passage of this Act is necessary to clarify the state of the law on this issue. Therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1997, No. 960, § 11: Mar. 31, 1997. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that there is an immediate need for financial assistance for water, sewer, and solid waste management systems that cannot be met under current laws; and that this act will enable the people of Arkansas to proceed with numerous projects which are delayed for a lack of money. Therefore an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

14-230-101. Title.

This chapter shall be known as “The Water, Sewer, and Solid Waste Management Systems Finance Act of 1975.”

History. Acts 1975, No. 274, § 1; A.S.A. 1947, § 13-2201.

14-230-102. Definitions.

As used in this chapter, unless the context otherwise requires:

  1. “Eligible applicant” means a city, a town, a county, a regional water district, a special improvement district, a public facilities board, a rural development authority, a rural waterworks facilities board including boards and commissions thereof, other public entity, or a nonprofit corporation which provides water, sewer, or solid waste services to one (1) or more cities, towns, or counties;
  2. “Commission” means the Arkansas Soil and Water Conservation Commission.

History. Acts 1975, No. 274, § 2; A.S.A. 1947, § 13-2202; Acts 1989, No. 220, § 1; 1997, No. 960, § 1.

Amendments. The 1997 amendment inserted “a rural development authority, a rural waterworks facilities board” in (1); deleted former (2) and (4); and redesignated former (3) as present (2).

14-230-103. General duties of commission.

The Arkansas Soil and Water Conservation Commission shall:

  1. Administer the loan and grant programs authorized under this chapter;
  2. Take necessary action to ensure that the funds are used for the purposes established in this chapter and in accordance with state and federal laws.

History. Acts 1975, No. 274, §§ 5, 6; A.S.A. 1947, §§ 13-2205, 13-2206; Acts 1989, No. 220, § 2.

14-230-104. [Repealed.]

Publisher's Notes. This section, concerning the Local Services Advisory Council, was repealed by Acts 1989, No. 220, § 9. The section was derived from Acts 1975, No. 274, § 9; A.S.A. 1947, § 13-2209.

14-230-105. State loan and grant program authorized.

  1. The commission is authorized to make loans and grants to provide funds for water, sewer, or solid waste management financial assistance.
  2. The commission may provide financial assistance up to the total project cost for water, sewer, or solid waste management systems projects.

History. Acts 1975, No. 274, § 3; A.S.A. 1947, § 13-2203; Acts 1989, No. 220, § 3; 1997, No. 960, § 2.

Amendments. The 1997 amendment rewrote (b).

14-230-106. Eligible applicants.

  1. An eligible applicant is eligible to apply for loans and grants specified in this chapter. Combinations of eligible applicants may apply jointly for loans or grants authorized under this chapter in accordance with § 25-20-101 et seq.
    1. Award of a loan or grant may be made contingent upon the receipt of the federal, state or other financial assistance for which an eligible applicant has applied.
    2. Award of a loan or grant may be made contingent upon the eligible applicant providing additional local funds for water, sewer, or solid waste management systems.
  2. Award of a loan or grant may be made contingent upon (1) the funds provided being the last to be used, (2) the eligible applicant establishing and a maintaining depreciation, debt service or other reserves, any reasonable condition established by the Commission.

History. Acts 1975, No. 274, § 4; A.S.A. 1947, § 13-2204; Acts 1989, No. 220, § 4; 1997, No. 960, §§ 3, 4.

Amendments. The 1997 amendment rewrote (b) and (c).

14-230-107. Applications for grants.

  1. The commission shall promulgate such rules and forms as are needed for the efficient administration of the chapter.
  2. Applications shall be submitted to the commission.
    1. The commission shall consider the merits of the application and, in accordance with the criteria for selection and the available funds, make a final determination concerning the disposition of the application.
    2. The director of the commission shall, within ten (10) days, notify the applicant of the final action of the commission in accepting, modifying, or rejecting the application.

History. Acts 1975, No. 274, § 5; A.S.A. 1947, § 13-2205; Acts 1989, No. 220, § 5; 1997, No. 960, § 5; 2019, No. 315, § 1014.

Amendments. The 1997 amendment rewrote (b) and (c); and deleted former (d) and (e).

The 2019 amendment deleted “regulations” following “rules” in (a).

14-230-108. Criteria for selection of loan and grant recipients.

In selecting the recipients for loans and grants authorized in this chapter, the following factors shall be taken into consideration by the commission:

  1. The financial ability of the eligible applicant to provide the funds for the project;
  2. The burden placed on low income, elderly, or unemployed persons if an eligible applicant constructs a water, sewer, or solid waste management system and pays for the project through user fees, or taxes, or both;
  3. Evaluations and priorities as enunciated in the Arkansas State Water Plan;
  4. State and regional priorities and requirements as recommended by appropriate state and regional agencies;
  5. The amount of fair user charges or other revenues which the project may reasonably be expected to generate; and
  6. The funds necessary to amortize the initial cost and provide for the successful operation and maintenance of the project, including depreciation.

History. Acts 1975, No. 274, § 7; A.S.A. 1947, § 13-2207; Acts 1989, No. 220, § 6; 1997, No. 960, § 6.

Amendments. The 1997 amendment rewrote the section.

14-230-109. Revolving fund.

  1. A special fund, entitled the “Water, Sewer and Solid Waste Systems Revolving Fund”, is created to provide a depository for funds which may be appropriated or otherwise secured.
  2. The revolving fund shall be used to provide low interest loans or grants to an eligible applicant for the purposes established in this chapter. Funds from the repayment of loans made under this chapter shall return to the revolving fund and shall be reused in a manner which is consistent with the purposes of this chapter.
  3. The commission is authorized to use the funds made available under this chapter for grants to or for suspended repayment of loans to eligible applicants.
  4. Special terms for repayment of loans, including a negotiated schedule of repayment that reasonably minimizes the user charges and tax burden upon customers of an eligible applicant, may be negotiated by the commission and concluded by contractual agreement. Repayment of loans not exceeding a fifty-year period is authorized.
    1. The commission is authorized to require partial or complete repayment of grants plus the payment of interest accumulated on the sum granted if the operation of a water, sewer, or solid waste management system constructed with the assistance of such grants produces an income which exceeds the sum necessary to repay the federal, state, or other loans for construction of the system and the expenses of operating the system.
    2. The terms and conditions of possible repayment of grants shall be specified and agreed to in writing prior to the disbursement of the grant.

History. Acts 1975, No. 274, § 8; 1975 (Extended Sess., 1976), No. 1074, § 1; A.S.A. 1947, § 13-2208; reen. Acts 1987, No. 866, § 1; Acts 1989, No. 220, § 7; 1997, No. 960, § 7.

A.C.R.C. Notes. This section was reenacted by Acts 1987, No. 866, § 1. Acts 1987, No. 834 provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

Acts 2013, No. 218, § 21, provided: “TRANSFER PROVISION.

At the end of each fiscal year, the Chief Fiscal Officer of the State shall authorize the transfer of obligated water, sewer, and solid waste funds, as provided in the appropriation act for the Natural Resources Commission in the appropriation entitled "Water, Sewer and Solid Waste - State", from the Miscellaneous Agencies Fund Account, to the Water, Sewer and Solid Waste Revolving Fund.

“The provisions of this section shall be in effect only from July 1, 2013 through June 30, 2014.”

Acts 2014, No. 268, § 22, provided:

“TRANSFER PROVISION. At the end of each fiscal year, the Chief Fiscal Officer of the State shall authorize the transfer of obligated water, sewer, and solid waste funds, as provided in the appropriation act for the Natural Resources Commission in the appropriation entitled ‘Water, Sewer and Solid Waste - State’, from the Miscellaneous Agencies Fund Account, to the Water, Sewer and Solid Waste Revolving Fund.

“The provisions of this section shall be in effect only from July 1, 2014 through June 30, 2015.”

Acts 2015, No. 270, § 20, provided:

“TRANSFER PROVISION. At the end of each fiscal year, the Chief Fiscal Officer of the State shall authorize the transfer of obligated water, sewer, and solid waste funds, as provided in the appropriation act for the Natural Resources Commission in the appropriation entitled ‘Water, Sewer and Solid Waste — State’, from the Miscellaneous Agencies Fund Account, to the Water, Sewer and Solid Waste Revolving Fund.

“The provisions of this section shall be in effect only from July 1, 2015 through June 30, 2016.”

Acts 2016, No. 256, § 20, provided: “TRANSFER PROVISION. At the end of each fiscal year, the Chief Fiscal Officer of the State shall authorize the transfer of obligated water, sewer, and solid waste funds, as provided in the appropriation act for the Natural Resources Commission in the appropriation entitled ‘Water, Sewer and Solid Waste — State’, from the Miscellaneous Agencies Fund Account, to the Water, Sewer and Solid Waste Revolving Fund.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Amendments. The 1997 amendment rewrote this section.

Chapter 231 Refunding Bonds For Sewers And Waterworks

14-231-101 — 14-231-116. [Repealed.]

Publisher's Notes. This chapter was repealed by Acts 1997, No. 214, § 1. The chapter was derived from the following sources:

14-231-101. Acts 1937, No. 297, § 1; Pope's Dig., § 11351; A.S.A. 1947, § 19-4301.

14-231-102. Acts 1937, No. 297, § 2; Pope's Dig., § 11352; A.S.A. 1947, § 19-4302.

14-231-103. Acts 1937, No. 297, § 16; Pope's Dig; § 11366; A.S.A. 1947, § 19-4316.

14-231-104. Acts 1937, No. 297, § 3; Pope's Dig., § 11353; Acts 1943, No. 291, § 1; A.S.A. 1947, § 19-4303.

14-231-105. Acts 1937, No. 297, § 4; Pope's Dig., § 11354; A.S.A. 1947, § 19-4304.

14-231-106. Acts 1937, No. 297, § 13; Pope's Dig., § 11363; A.S.A. 1947, § 19-4313.

14-231-107. Acts 1937, No. 297, § 5; Pope's Dig., § 11355; A.S.A. 1947, § 19-4305.

14-231-108. Acts 1937, No. 297, § 6; Pope's Dig., § 11356; A.S.A. 1947, § 19-4306.

14-231-109. Acts 1937, No. 297, § 7; Pope's Dig., § 11357; Acts 1941, No. 96, § 1; A.S.A. 1947, § 19-4307.

14-231-110. Acts 1937, No. 297, § 8; Pope's Dig., § 11358; A.S.A. 1947, § 19-4308.

14-231-111. Acts 1937, No. 297, § 9; Pope's Dig., § 11359; A.S.A. 1947, § 19-4309.

14-231-112. Acts 1937, No. 297, § 10; Pope's Dig., § 11360; Acts 1943, No. 291, § 2; A.S.A. 1947, § 19-4310.

14-231-113. Acts 1937, No. 297, § 11; Pope's Dig., § 11361; A.S.A. 1947, § 19-4311.

14-231-114. Acts 1937, No. 297, § 12; Pope's Dig., § 11362; A.S.A. 1947, § 19-4312.

14-231-115. Acts 1937, No. 297, § 14; Pope's Dig., § 11364; A.S.A. 1947, § 19-4314.

14-231-116. Acts 1937, No. 297, § 15; Pope's Dig., § 11365; A.S.A. 1947, § 19-4315.

Chapter 232 Refuse Disposal Generally

Effective Dates. Acts 1971, No. 238, § 17: Mar. 9, 1971. Emergency clause provided: “It has been found and it is hereby declared by the General Assembly of the State of Arkansas that it is essential to the health, hygiene and safety of the inhabitants of the State of Arkansas that the authority of counties and municipalities to collect, dispose of, deal in and regulate concerning refuse be clarified and augmented; that this Act and the implementation of this Act are essential to the accomplishment of this purpose and to the welfare of the State of Arkansas and her people. Therefore, an emergency is declared to exist, and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 1975, No. 186, § 3: Feb. 18, 1975. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that public interest demands that fees be charged for the use of county dumping facilities. Therefore, an emergency is hereby declared to exist and this Act, being necessary for the immediate preservation of the public peace, health, safety and welfare, shall be in full force and effect from and after its passage and approval.”

Acts 1975, No. 225, § 26: became law without Governor's signature, Feb. 19, 1975. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this state and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this act. Therefore, an emergency is declared to exist and this act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 1981, No. 425, § 54: Mar. 11, 1981. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 1983, No. 612, § 4: Mar. 27, 1983. Emergency clause provided: “It is hereby found and declared that the ambiguity existing in present law is resulting in the failure of some counties to adequately provide for solid waste management systems with the result that solid wastes are being improperly disposed of so as to pose a threat to the public health and environment. Therefore, an emergency is declared to exist and this Act being necessary for the preservation of the public peace, health and safety, shall be in force and effect from and after its passage and approval.”

Acts 1987, No. 801, § 4: Apr. 8, 1987. Emergency clause provided: “It is hereby found and determined by the General Assembly that due to the potential health hazards and offensive nature of solid waste disposal facilities, counties and cities within such counties should not be permitted to establish such facilities in another county without the consent of the appropriate officials of the other county and that this Act is designed to require such consent and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Research References

ALR.

Tort liability for pollution from underground storage tank. 5 A.L.R.5th 1.

Breach of warranty in sale, installation, repair, design, or inspection of septic or sewage disposal systems. 50 A.L.R.5th 417.

14-232-101. Definitions.

As used in this chapter, unless the context requires otherwise:

  1. “Governing body” means the council, board of directors, or city commissioner of any municipality or the county judge and quorum court of any county;
  2. “Municipality” means a city of the first class or a city of the second class or an incorporated town;
  3. “Refuse” means refuse, garbage, trash, rubbish, debris of any nature, including, without limitation, food waste, rejected animal or vegetable matter, whether or not intended for or resulting from the preparation of food, paper, clothing, grass, leaves, ashes, tin cans, bottles, and solid waste of any nature whatever;
  4. “Equip” means to install or place in or on any building or structure equipment of any and every kind, whether or not affixed, including, without limitation, building service equipment, fixtures, heating equipment, air conditioning equipment, machinery, furniture, furnishings, and personal property of every kind;
  5. “Sell” means to sell for such price, in whatever manner, and upon whatever terms the county or municipality shall determine, including, without limitation, public or private sale, and if public, pursuant to such advertisement as the county or municipality shall determine, to sell for cash or credit, payable in lump sum or in installments over such period as the county or municipality shall determine and, if on credit, with or without interest;
  6. “Lease” means to lease for such rentals, for such periods, and upon such terms and conditions as the county or municipality shall determine, and to grant such purchase options for such prices and upon such terms and conditions as the county or municipality shall determine;
  7. “Facilities” means any real property, personal property, or mixed property of any and every kind that can be used or that will be useful in controlling, collecting, removing, handling, reducing, disposing of, treating, and otherwise dealing in and concerning refuse, including, without limitation, rights-of-way, roads, streets, pipes, pipelines, reservoirs, utilities, materials, motor vehicles, equipment, fixtures, machinery, furniture, furnishings, instrumentalities, and other real, personal, or mixed property of every kind;
  8. “Person” means any individual, corporation, or other organization of whatever nature, whether or not a property owner and whether residing within or without the corporate limits of the municipality or county involved.

History. Acts 1971, No. 238, § 13; 1981, No. 425, § 22; 1983, No. 612, § 2; 1985, No. 977, § 1; A.S.A. 1947, § 82-2725.

14-232-102. Construction.

This chapter shall be liberally construed to accomplish its purposes.

History. Acts 1971, No. 238, § 16; A.S.A. 1947, § 82-2726.

14-232-103. General powers of counties and municipalities.

  1. Any county or municipality in this state is authorized to own, acquire, construct, reconstruct, extend, equip, improve, operate, maintain, sell, lease, contract concerning, or otherwise deal in facilities of any nature necessary or desirable for the control, collection, removal, reduction, disposal, treatment, or other handling of refuse. Each undertaking by a county or municipality under this chapter may sometimes be referred to as a “project.”
  2. Counties and municipalities are authorized to prescribe, by order or ordinance, reasonable rules and regulations necessary or appropriate to the control, collection, removal, reduction, disposal, treatment, and handling of refuse.

History. Acts 1971, No. 238, §§ 1, 7; A.S.A. 1947, §§ 82-2713, 82-2719.

Case Notes

Collection of Solid Waste.

The collection of solid waste is a “public purpose,” since the providing of such a service by a county is implied in Ark. Const. Amend. 55 and is specifically provided for in this section. Eaton v. McCuen, 273 Ark. 154, 617 S.W.2d 341 (1981).

Granting of Franchises.

This chapter does not expressly grant municipalities the power to grant exclusive solid waste disposal franchises; however, the legislative intent to displace competition can be inferred from the statutory scheme because it is a necessary and reasonable consequence of engaging in the authorized activity. Regulation of solid waste management is one of the traditional public health functions of local government, and the legislative scheme contemplates displacing competition with regulation in the area of solid waste management and disposal. L & H Sanitation, Inc. v. Lake City Sanitation, Inc., 769 F.2d 517 (8th Cir. 1985).

Cited: Laidlaw Waste Sys. v. City of Ft. Smith, 742 F. Supp. 540 (W.D. Ark. 1990); Ark. County v. Burris, 308 Ark. 490, 825 S.W.2d 590 (1992).

14-232-104. Revenue bonds — Power to issue — Amount.

  1. Counties and municipalities are authorized to use any available revenues for the accomplishment of the purposes set forth in § 14-232-103(a), including the proceeds of revenue bonds issued under the authority of this chapter, either alone or together with other available funds and revenues.
  2. The amount of revenue bonds issued shall be sufficient to pay:
    1. The cost of accomplishing the specified purposes;
    2. The cost of issuing bonds;
    3. The amount necessary for a reserve, if desirable;
    4. The amount necessary to provide for debt service on bonds until revenues for the payment thereof are available; and
    5. Any other costs and expenditures of whatever nature incidental to the accomplishment of the specified purposes.

History. Acts 1971, No. 238, § 2; A.S.A. 1947, § 82-2714.

Case Notes

Constitutionality.

Bonds authorized pursuant to this chapter were not general obligations of the county but rather were revenue bonds payable solely from the revenues derived from the district's service charges; therefore, Ark. Const. Amend. 10 and former Ark. Const. Amend. 13 (repealed) were not applicable to the value of the bonds issued and the bonds did not create an indebtedness exceeding the limitations of Ark. Const. Amend. 10 and former Ark. Const. Amend 13 (repealed). Eaton v. McCuen, 273 Ark. 154, 617 S.W.2d 341 (1981).

14-232-105. Revenue bonds — Terms — Indenture — Execution.

  1. The issuance of revenue bonds shall be by order of the county court or by ordinance of the municipality.
  2. The bonds may be coupon bonds payable to bearer but subject to registration as to principal and interest, may be made exchangeable for bonds of another denomination, may be in such form and denominations, may be made payable at such places within or without the state, may be issued in one (1) or more series, may bear such date or dates, may mature at such time or times, not exceeding forty (40) years from their respective dates, may bear interest at such rate or rates, may be payable in such medium of payment, may be subject to such terms of redemption, and may contain such terms, covenants, and conditions as the order or ordinance authorizing their issuance may provide, including, without limitation, those pertaining to the custody and application of the proceeds of the bonds, the maintaining of rates and charges, the collection and disposition of revenues, the maintenance and investment of various funds and reserves, the nature and extent of the security, the rights, duties, and obligations of the county or municipality and the trustee for the holders and registered owners of the bonds, and the rights of the holders and registered owners of the bonds.
  3. There may be successive bond issues for the purpose of financing the same project and there may be successive bond issues for financing the cost of reconstructing, replacing, constructing additions to, extending, improving, and equipping projects already in existence, whether or not originally financed by bonds issued under this chapter, with each successive issue to be authorized as provided by this chapter.
  4. Priority between and among issues and successive issues as to security of the pledge of revenues may be controlled by the order or ordinance authorizing the issuance of bonds hereunder.
  5. Subject to the provisions hereof pertaining to registration, the bonds shall have all the qualities of negotiable instruments under the laws of the State of Arkansas.
    1. The order or ordinance authorizing the bonds may provide for the execution by the county or municipality of an indenture which defines the rights of the holders and registered owners of the bonds and provides for the appointment of a trustee for the holders and registered owners of the bonds.
    2. The indenture may control the priority between successive issues and may contain any other terms, covenants, and conditions that are deemed desirable including, without limitation, those pertaining to the custody and application of the proceeds of the bonds, the maintaining of rates and charges, the collection and disposition of revenues, the maintenance of various funds and reserves, the nature and extent of the security, the rights, duties, and obligations of the county or municipality and the trustee, and the rights of the holders and registered owners of the bonds.
  6. The bonds may be sold for such price, including, without limitation, sale at a discount, and in such manner as the county or municipality may determine by order or ordinance.
  7. The bonds shall be executed by the county judge and county clerk of the county or by the mayor and the city clerk or recorder of the municipality, with either the manual or facsimile signature of the county judge or mayor but with the manual signature of the clerk or recorder. In case any of the officers whose signatures appear on the bonds or coupons shall cease to be officers before the delivery of the bonds or coupons, the signatures shall nevertheless be valid and sufficient for all purposes. The coupons attached to the bonds may be executed by the facsimile signature of the county judge of the county or the mayor of the municipality.

History. Acts 1971, No. 238, § 3; 1975, No. 225, § 23; 1981, No. 425, § 22; A.S.A. 1947, § 82-2715.

14-232-106. Refunding bonds.

  1. Revenue bonds may be issued under this chapter for the purpose of refunding any obligations issued under this chapter. The refunding bonds may be combined with bonds issued under the provisions of § 14-232-105 into a single issue.
  2. When bonds are issued under this section for refunding purposes, they may either be sold or delivered in exchange for the outstanding obligations. If sold, the proceeds may be either applied to the payment of the obligations refunded or deposited in escrow for the retirement thereof.
  3. All bonds issued under this section shall in all respects be authorized, issued, and secured in the manner provided for other bonds issued under this chapter and shall have all the attributes of those bonds.
  4. The order or ordinance under which the refunding bonds are issued may provide that any of the refunding bonds shall have the same priority of lien on the revenues pledged for their payment as was enjoyed by the obligations refunded thereby.

History. Acts 1971, No. 238, § 5; A.S.A. 1947, § 82-2717.

14-232-107. Bonds — Nature of indebtedness — Security.

  1. The revenue bonds issued under this chapter shall not be general obligations of the county or municipality but shall be special obligations.
  2. In no event shall the revenue bonds constitute an indebtedness of the county or municipality within the meaning of any constitutional or statutory limitation.
  3. It shall be plainly stated on the face of each bond that it has been issued under the provisions of this chapter and that it does not constitute an indebtedness of the county or municipality within any constitutional or statutory limitation.
  4. The principal of and interest on the revenue bonds and the paying agent's fees shall be secured by a pledge of and payable from revenues derived from the rates or charges imposed and collected under the authority of this chapter.

History. Acts 1971, No. 238, § 4; A.S.A. 1947, § 82-2716.

14-232-108. Receivership.

  1. In the event of a default in the payment of the principal of or interest on any revenue bonds issued under this chapter, any court having jurisdiction may appoint a receiver to take charge of any project acquired, constructed, reconstructed, extended, equipped, or improved, in whole or in part, with the proceeds of revenue bonds issued under this chapter.
  2. The receiver shall have the power to operate and maintain the project and to charge and collect rates and charges sufficient to provide for the payment of the principal of and interest on the bonds, after providing for the payment of all costs of receivership and operating expenses of the project, and to apply the income and revenues derived from the project in conformity with this chapter and the ordinance or indenture authorizing or securing the bonds.
  3. When the default has been cured, the receivership shall be ended and the properties returned to the county or municipality.
  4. The relief afforded by this section shall be construed to be in addition and supplemental to the remedies that may be afforded to the trustee for the holders and registered owners of the bonds and the holders and registered owners of the bonds in the order, ordinance, or indenture authorizing or securing the bonds. It shall be so granted and administered as to accord full recognition to priority rights of holders and registered owners of the bonds as to the pledge of revenues from the project as specified in and fixed by the order, ordinance, or indenture authorizing or securing successive bond issues.

History. Acts 1971, No. 238, § 6; A.S.A. 1947, § 82-2718.

14-232-109. Investment of public funds in bonds.

Any municipality; any board, commission, or other authority established by ordinance of any municipality, or the boards of trustees, respectively, of the firemen's relief and pension fund and the policemen's pension and relief fund of any municipality; or the board of trustees of any retirement system created by the General Assembly of the State of Arkansas may, in its discretion, invest any of its funds not immediately needed for its purposes in revenue bonds issued under the authority of this chapter. Revenue bonds issued under the authority of this chapter shall be eligible to secure the deposit of public funds.

History. Acts 1971, No. 238, § 10; A.S.A. 1947, § 82-2722.

14-232-110. Rates and charges.

  1. Counties and municipalities are authorized to impose and collect rates and charges for the services provided by projects of the type authorized by this chapter whether or not acquired, constructed, reconstructed, extended, or improved under the authority of this chapter.
  2. Counties and municipalities are authorized to impose upon and collect from all persons who can be served by a project reasonable rates and charges for the services of the project, without regard to whether the person desires to utilize the services.
  3. All or any part of the revenues derived from the rates and charges imposed and collected under the authority of this chapter may be used for accomplishing and carrying out the authorities conferred by this chapter, including the pledging and use of those revenues for the payment of the principal of and interest on bonds issued under the authority of this chapter.

History. Acts 1971, No. 238, § 7; A.S.A. 1947, § 82-2719.

Case Notes

Waste Fees.

The Arkansas County Quorum Court was not authorized by law to collect a waste fee by imposing it as a surcharge on the personal property taxes the residents of the county must pay. Ark. County v. Burris, 308 Ark. 490, 825 S.W.2d 590 (1992).

Cited: Laidlaw Waste Sys. v. City of Ft. Smith, 742 F. Supp. 540 (W.D. Ark. 1990).

14-232-111. Lease agreements.

Counties and municipalities are authorized to enter into leases, as lessor, leasing any project or any facilities thereof. The lease rentals shall be treated as project revenues for all purposes of this chapter.

History. Acts 1971, No. 238, § 8; A.S.A. 1947, § 82-2720.

14-232-112. Compacts in joint effort.

  1. Any county or any municipality is authorized and empowered to enter into a compact with any county or counties, any municipality or municipalities, the United States of America, or the State of Arkansas, or any agency or political subdivision thereof, for the purpose of a cooperative effort to carry out any or all of the purposes authorized by this chapter.
  2. The compact may provide for joint ownership or joint operation of any facilities and may contain other terms and conditions as the parties deem necessary or desirable for the accomplishment of any of the purposes authorized by this chapter.

History. Acts 1971, No. 238, § 11; A.S.A. 1947, § 82-2723.

Case Notes

Levy.

City which assumed the debt of authority formed to construct and operate a waste disposal incineration plant, and levied a charge against the residences to pay the authority's debt was without authority to levy a fee that was to pay the long-term debt of the authority. Barnhart v. City of Fayetteville, 321 Ark. 197, 900 S.W.2d 539 (1995).

14-232-113. Eminent domain.

  1. In the event that necessary lands needed for the accomplishment of the purposes authorized by this chapter cannot be acquired by negotiation, any county or municipality is authorized to acquire the needed lands by condemnation proceedings under the power of eminent domain.
  2. Such proceedings may be exercised in the manner now provided for taking private property for rights-of-way for railroads as set forth by §§ 18-15-1202 — 18-15-1207, or in the manner provided by §§ 18-15-301 — 18-15-307, or pursuant to any other applicable statutory provisions enacted for the exercise of the power of eminent domain by the various counties or municipalities in the State of Arkansas.

History. Acts 1971, No. 238, § 12; A.S.A. 1947, § 82-2724.

14-232-114. Bonds — Tax exemption.

Bonds issued under the authority of this chapter shall be exempt from all state, county, and municipal taxes. This exemption includes income taxes.

History. Acts 1971, No. 238, § 9; A.S.A. 1947, § 82-2721.

A.C.R.C. Notes. Language excluding property taxes from the exemption provided by this section was deleted pursuant to Ark. Const. Amend. 57, § 1, and § 26-3-302. The Arkansas Const. Amend. 57, § 1, provides that the General Assembly may classify intangible personal property for assessment at lower percentages of value than other property and may exempt one or more classes of intangible personal property from taxation, or may provide for the taxation of intangible personal property on a basis other than ad valorem. Section 26-3-302 exempts all intangible personal property in this state from all ad valorem tax levies of counties, cities, and school districts in the state as of January 1, 1976.

14-232-115. County dumping grounds.

    1. The several counties of this state shall designate appropriate areas throughout each county as public dumping grounds for the residents of such counties for the disposal of trash, garbage, and other forms of waste materials.
    2. Each county shall take necessary measures to assure that the trash, garbage, or other forms of waste materials dumped at the designated site will not be blown or otherwise deposited upon adjoining lands. The county shall at reasonable intervals dispose of the trash, garbage, or other forms of waste materials by open burying or other approved means.
    3. The several counties of this state shall be allowed to charge an appropriate fee as set by the county quorum court.
  1. The several counties of this state are authorized to do all things necessary to provide countywide dumping grounds, including the power to acquire real or personal property of every kind, or any interest therein within the county by grant, purchase, gift, or lease, and to hold, manage, occupy, dispose of, convey, and encumber the same and create a leasehold interest in the same for the benefit of the county and to equip, operate, and maintain the services authorized by this section.
  2. Nothing in this section shall be construed to require the several counties of this state to provide dumping grounds for any municipality located within those counties.

History. Acts 1971, No. 317, §§ 1, 2; 1975, No. 186, § 1; A.S.A. 1947, §§ 82-2727, 82-2728.

14-232-116. Sites or facilities in another county.

  1. No county or municipality in a county shall acquire land for or establish a solid waste disposal site or facility in another county without the prior approval of the county judge and the quorum court of the county wherein the land is proposed to be acquired or wherein the site or facility is proposed to be located.
  2. Any official of a county or a municipality which violates the provisions of this section shall be subject to a fine of not less than one thousand dollars ($1,000) nor more than five thousand dollars ($5,000), and the conviction shall be grounds for removal from office.

History. Acts 1987, No. 801, §§ 1, 2.

Chapter 233 Joint County And Municipal Solid Waste Disposal

Effective Dates. Acts 1979, No. 699, § 22: Apr. 2, 1979. Emergency clause provided: “It is hereby found and declared that adequate, reliable and economical methods and facilities for the disposal, treatment or other handling of solid waste are essential to the continued health, welfare, economic growth and development of the people of the State of Arkansas who can be served by projects completed under the provisions of this act and that the availability of the authorities and powers granted by this act is immediately necessary for the protection and preservation of the health, safety and welfare of the people. Therefore, an emergency is declared to exist and this act, being necessary for the preservation of the public peace, health and safety, shall be in force and effect from and after its passage and approval.”

Acts 1985, No. 678, § 8: Mar. 27, 1985. Emergency clause provided: “It is hereby found and determined by the General Assembly that a number of sanitation authorities have significant potential for efficient development of solid waste energy generation facilities, that such projects appear to be a potential source of badly needed energy and that action must be taken immediately in some instances if the potentiality of these projects is to be fully realized. Therefore, an emergency is hereby declared to exist, and this Act being immediately necessary for the preservation of the public peace, health, and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1991, No. 1007, § 7: Apr. 8, 1991. Emergency clause provided: “It is hereby found and determined by the Seventy-Eighth General Assembly of the State of Arkansas that city and county governments and solid waste authorities are not permitted to collect delinquent solid waste management system fees and service charges under the county property tax collection system which county subordinate service districts are currently authorized to use; that the use of the county property tax collection system will improve fee collection and increase revenues for county solid waste management; and that, at this time, there is an increasingly critical need to collect all necessary revenues to support the operation of city and county solid waste management systems and solid waste authorities. Therefore, in order to promote the effective collection of delinquent solid waste fees or service charges at this critical time, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

Acts 2001, No. 611, § 2: Mar. 7, 2001. Emergency clause provided: “It is found and determined by the General Assembly that county industrial development corporations should recommend an additional director of joint solid waste disposal authorities in order to give the authorities greater awareness of the impact solid waste issues have upon economic development of the area; that this act so provides; and that until this act becomes effective the flexibility and effectiveness of the authorities will be hampered. Therefore an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2007, No. 599, § 9: Mar. 28, 2007. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that that there is an urgent need to provide additional safe and sanitary solid waste and wastewater collection, treatment, and disposal facilities; that the best method of financing such facilities is by the issuance of revenue bonds; and that this act is immediately necessary to facilitate the prompt and efficient provision of safe and sanitary solid waste and wastewater collection, treatment, and disposal facilities. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Case Notes

In General.

The Joint County and Municipal Solid Waste Disposal Act does not provide for notice, public hearings, special referendum, or collection of late service fees by billing as personal property taxes. Freeman v. Curry, 299 Ark. 263, 772 S.W.2d 586 (1989).

14-233-101. Title.

This chapter may be referred to and cited as the “Joint County and Municipal Solid Waste Disposal Act.”

History. Acts 1979, No. 699, § 1; A.S.A. 1947, § 82-2731.

Case Notes

Cited: Freeman v. Curry, 299 Ark. 263, 772 S.W.2d 586 (1989); Ark. County v. Burris, 308 Ark. 490, 825 S.W.2d 590 (1992).

14-233-102. Definitions.

As used in this chapter:

  1. “Board of directors” or “board” means the board of directors of a sanitation authority created under this chapter;
  2. “Bonds” means bonds and any series of bonds authorized by and issued pursuant to the provisions of this chapter;
  3. “Clerk” means the county clerk of a county and the city clerk, city recorder, town recorder of a municipality, or other similar office of a county or municipality hereafter created or established;
  4. “Costs” or “project costs” means, but is not limited to:
    1. All costs of acquisition, construction, reconstruction, improvement, enlargement, betterment, or extension of any project, including the cost of studies, plans, specifications, surveys, and estimates of costs and revenues relating to them;
    2. All costs of land, land rights, rights-of-way and easements, water rights, fees, permits, approvals, licenses, certificates, and franchises, and the preparation of applications for and securing them;
    3. Administrative, organizational, legal, engineering, and inspection expenses;
    4. Financing fees, expenses, and costs;
    5. Working capital;
    6. All machinery and equipment, including construction equipment;
    7. Interest on the bonds during the period of construction and for such a reasonable period thereafter as may be determined by the issuing sanitation authority;
    8. Establishment of reserves; and
    9. All other expenditures of the issuing sanitation authority incidental, necessary, or convenient to the acquisition, construction, reconstruction, improvement, enlargement, betterment, or extension of any project and the placing of it in operation;
  5. “County” means any county in this state;
  6. “District” means an entity established pursuant to § 14-114-101 et seq., the Interstate Watershed Cooperation Act, § 14-115-101 et seq., The Regional Water Distribution District Act, § 14-116-101 et seq., the Arkansas Irrigation, Drainage, and Watershed Improvement District Act of 1949, § 14-117-101 et seq., § 14-118-101 et seq., The Water Improvement District Accounting Law of 1973, § 14-119-101 et seq., § 14-120-101 et seq., § 14-121-101 et seq., § 14-122-101 et seq., § 14-123-201 et seq., § 14-124-101 et seq., the Conservation Districts Law, § 14-125-101 et seq., the Central Business Improvement District Act, § 14-184-101 et seq., the Metropolitan Port Authority Act of 1961, § 14-185-101 et seq., § 14-186-101 et seq., § 14-187-101 et seq., the Rural Development Authority Act, § 14-188-101 et seq., § 14-249-101 et seq., the Wastewater Treatment Districts Act, § 14-250-101 et seq., and § 14-251-101 et seq.;
  7. “Governing body” means the quorum court of a county and the council, board of directors, commission, or other governing body of a municipality or district;
  8. “Member” means a municipality, county, or district that participates jointly through a sanitation authority with other municipalities or counties in projects under this chapter;
  9. “Municipality” means a city of the first class, city of the second class, or an incorporated town;
  10. “Person” means any natural person, firm, corporation, nonprofit corporation, association, or improvement district;
    1. “Project” means any real property, personal property, or mixed property of any kind that can be used or will be useful in:
      1. Controlling, collecting, storing, removing, handling, reducing, disposing of, treating, and otherwise dealing in and concerning solid waste, including without limitation, property that can be used or that will be useful in extracting, converting to steam, including the acquisition, handling, storage, and utilization of coal, lignite, or other fuel of any kind, or water that can be used or will be useful in converting solid waste to steam, and distributing the steam to users thereof, or otherwise separating and preparing solid waste for reuse, or that can be used or will be useful in generating electric energy by the use of solid waste as a source of generating power and distributing the electric energy to purchasers or users thereof in accordance with the general laws of the state; or
      2. Collecting, pumping, disposing of, treating, or otherwise dealing in wastewater, sludge, or treated effluent.
    2. For purposes of this chapter, not more than twenty-five percent (25%) of the fuel used to produce steam or generate electricity from any project shall consist of materials other than solid waste;
  11. “Sanitation authority” or “authority” means a public body and body corporate and politic organized in accordance with the provisions of this chapter;
  12. “Solid waste” means any:
    1. Garbage, refuse, or sludge from a waste treatment plant, water supply treatment plant, or air pollution control facility; and
    2. Other discarded material, including solid, liquid, semisolid, or contained gaseous material resulting from industrial, commercial, mining, and agricultural operations and from community activities; and
  13. “State” means the State of Arkansas.

History. Acts 1979, No. 699, § 2; 1985, No. 678, § 1; A.S.A. 1947, § 82-2732; Acts 2005, No. 689, § 1; 2007, No. 599, § 1.

Amendments. The 2005 amendment inserted present (6) and redesignated the remaining subdivisions accordingly; inserted “or district” in present (7) and (8); and made related changes.

14-233-103. Construction.

  1. This chapter shall be deemed to provide an additional and alternative method for the doing of the things authorized by this chapter and shall be regarded as supplemental and additional to powers conferred by other laws.
  2. Except as expressly provided in this chapter, the acquisition, construction, reconstruction, enlargement, equipment, or operation and maintenance of projects under the provisions of this chapter need not comply with the requirements of any other law applicable to the acquisition, construction, reconstruction, enlargement, equipment, and operation and maintenance of public works or facilities including, without limitation, laws pertaining to public bidding, paying prevailing wages, transfer or exchange of title to real or personal property, or any other aspect of the acquiring, constructing, reconstructing, enlarging, equipping, or operation or maintenance of public works or public projects, or transfer or exchange of title to real or personal property, none of which laws shall be applicable to projects under this chapter.
  3. This chapter, being necessary for the welfare of the state and its inhabitants, shall be liberally construed to effect the purposes hereof.

History. Acts 1979, No. 699, §§ 18, 19; A.S.A. 1947, §§ 82-2748.

14-233-104. Creation of authority — General powers and restrictions.

    1. Any two (2) or more municipalities or suburban improvement districts, any two (2) or more counties, or any one (1) or more municipalities or suburban improvement districts together with any one (1) or more counties are authorized to create and become members of a sanitation authority as prescribed in this chapter.
    2. Any city of the first class, city of the second class, or incorporated town may create a sanitation authority under this chapter, and the sanitation authority shall have the same powers as other sanitation authorities vested under this chapter.
    3. Any district may become a member of a sanitation authority if approved for membership unanimously by the other members.
    1. Each authority may be empowered to own, acquire, construct, reconstruct, extend, equip, improve, operate, maintain, sell, lease, contract concerning, or otherwise deal in or dispose of a project.
    2. Unless limited by the members of the authority in the manner provided in this chapter, any project may be located at any place that in the judgment of the board of directors of the authority best serves the needs of the member governments, whether within or without the boundaries of the member governments.
  1. All projects accomplished by sanitation authorities pursuant to the provisions of this chapter shall be subject to all applicable federal and state requirements for the disposal, treatment, or other handling of solid waste.

History. Acts 1979, No. 699, § 3; A.S.A. 1947, § 82-2733; Acts 1991, No. 962, § 1; 2005, No. 689, § 2; 2005, No. 927, § 2.

Amendments. The 2005 amendment by No. 689 added (a)(3).

The 2005 amendment by No. 927 inserted “or suburban improvement districts” twice in (a)(1); and, in (b)(2), substituted “governments” for “municipalities and counties” twice.

14-233-105. Contents of ordinance — Filing of application — Certificate of incorporation — Amendments.

    1. The governing body of each municipality and county desiring to create and become a member of a sanitation authority may determine by ordinance that it is in the best interest of the municipality or county in accomplishing the purposes of this chapter to create and become a member of an authority.
    2. The governing body of each district desiring to become a member of a sanitation authority may determine by resolution that it is in the best interest of the district to become a member of an authority.
  1. The ordinance or resolution shall:
    1. Set forth the names of the municipalities, counties, or districts which are proposed to be members of the authority;
    2. Specify the powers to be granted to the authority and any limitations on the exercise of the powers granted, including limitations on the authority's area of operations, the use of projects by the authority, and the authority's power to issue bonds;
    3. Specify the number of directors of the authority and the voting rights of each director;
    4. Approve an application to be filed with the Secretary of State, setting forth:
      1. The names of all proposed members;
      2. Copies of all ordinances or resolutions certified by the respective clerks or secretaries;
      3. The powers granted to the authority and any limitations on the exercise of the powers granted;
      4. The number of directors of the authority and the voting rights of each director;
      5. The desire that an authority be created as a public body and a body corporate and politic under this chapter; and
      6. The name which is proposed for the authority.
    1. The application shall be:
      1. Signed by the mayor of each municipality, county judge of each county, and presiding officer of each district;
      2. Attested by the respective clerks and secretaries; and
      3. Subscribed and sworn to before an officer or officers authorized by the laws of this state to administer and certify oaths.
      1. The Secretary of State shall examine the application.
      2. If he or she finds that the name proposed for the authority is not identical with that of any other corporation of this state or of any agency or instrumentality of this state or not so nearly similar as to lead to confusion and uncertainty, he or she shall receive and file it and shall record it in an appropriate book of record in his or her office.
    2. When the application has been made, filed, and recorded as provided in this chapter, the authority shall constitute a public body and a body corporate and politic under the name proposed in the application.
    1. The Secretary of State shall make and issue a certificate of incorporation pursuant to this chapter under the seal of the state and shall record the certificate with the application.
    2. The certificate shall set forth the names of the members.
    1. In any suit, action, or proceeding involving the validity or enforcement of, or relating to, any contract of the authority, the authority, in the absence of establishing fraud in the premises, shall be conclusively deemed to have been established in accordance with the provisions of this chapter upon proof of the issuance of the certificate by the Secretary of State.
    2. A copy of the certificate, certified by the Secretary of State, shall be admissible in evidence in the suit, action, or proceeding and shall be conclusive proof of the filing and contents of the certificate.
    1. Any application filed with the Secretary of State pursuant to the provisions of this chapter may be amended from time to time with the unanimous consent of the members of the authority as evidenced by ordinance or resolution of their governing bodies.
    2. The amendment shall be signed and filed with the Secretary of State in the manner provided in this section, whereupon the Secretary of State shall make and issue an amendment to the certificate of incorporation.
    1. The county quorum court may appoint one (1) additional director to the authority upon the recommendation of the county industrial development corporation.
    2. That additional director shall be a full voting director.

History. Acts 1979, No. 699, § 4; A.S.A. 1947, § 82-2734; Acts 2001, No. 611, § 1; 2005, No. 689, § 3.

Amendments. The 2001 amendment redesignated (c)(2) as present (c)(2); added subdivision designations in (d) and (e); and added (g).

The 2005 amendment redesignated former (a) as present (a)(1); added (a)(2); inserted “or resolution” in (b), (b)(4)(B) and (f)(1); in (b)(1), substituted “districts” for “both” and deleted “initial” preceding “members”; substituted “members” for “member municipalities” in (b)(4)(A); inserted “or secretaries” in (b)(4)(B); added “and” at the end of (b)(4)(E); inserted “and presiding officer of each district” in (c)(1)(A); inserted “and secretaries in (c)(1)(B); in (c)(2)(B), inserted “or she” twice and “or her”; and substituted “members” for “member municipalities and counties” in (d)(2).

14-233-106. New members — Withdrawal of old members.

    1. After the creation of a sanitation authority, any other municipality, county, or district may become a member upon application to the authority, after adoption of an ordinance or resolution by its governing body making the determination prescribed in § 14-233-105 and authorizing the municipality, county, or district to participate, and with the unanimous consent of the members of the authority evidenced by ordinance or resolution of their governing bodies.
    2. Copies of the ordinances or resolutions, certified by the respective clerks or secretaries of the member municipalities, counties, and districts, together with an amendment to the application signed by the county judge, mayor, or presiding officer of each member and prospective member in the manner provided in § 14-233-105, shall be filed with the Secretary of State, whereupon the Secretary of State shall make and issue an amendment to the certificate of incorporation setting forth the then-current names of the member municipalities, counties, and districts.
    1. Any municipality, county, or district may withdraw from a sanitation authority at any time without the consent of the other members of the authority. All contractual rights acquired and obligations incurred while the municipality, county, or district was a member shall remain in full force and effect.
    2. The withdrawal shall become effective upon the adoption of an ordinance by the withdrawing municipality or county or, in the case of a district, the adoption of a resolution, and the filing of the ordinance or resolution with the Secretary of State together with an amendment signed by the mayor of the withdrawing municipality, the county judge of the withdrawing county, or the presiding officer of a district in the manner provided in § 14-233-105, whereupon the Secretary of State shall make and issue an amendment to the certificate of incorporation setting forth the then-current names of the member municipalities, counties, and districts.

History. Acts 1979, No. 699, § 4; A.S.A. 1947, § 82-2734; Acts 2005, No. 689, § 4.

Amendments. The 2005 amendment substituted “municipality, county, or district” for “municipality or county” twice in (a)(2) and (b)(1); inserted “or resolution” twice in (a)(1) and once in (b)(2); substituted “municipalities, counties, and districts” for “municipalities and counties” twice in (a)(2) and once in (b)(2); in (a)(2), inserted “or secretaries” and substituted “county judge, mayor, or presiding officer of each member and prospective member” for “mayor of each member and prospective member municipality and the county judge of each member and prospective member county”; deleted “municipalities and counties which are” preceding “members of the authority” in (b)(1); and, in (b)(2), inserted “or in the case of a district, the adoption of a resolution” and “or the presiding officer of a district” and made a related change.

14-233-107. Specific powers of authority.

Each sanitation authority shall have all of the rights and powers necessary or convenient to carry out and effectuate the purposes and provisions of this chapter, including, but without limiting the generality of the foregoing, the rights and powers:

  1. To have perpetual succession as a body politic and corporate, and to adopt bylaws for the regulation of the affairs and the conduct of its business, and to prescribe rules, regulations, and policies in connection with the performance of its functions and duties;
  2. To adopt an official seal and alter it at pleasure;
  3. To maintain an office at such places as it may determine;
  4. To sue and be sued in its own name and to plead and be impleaded;
  5. To make and execute contracts and other instruments necessary or convenient in the exercise of the powers and functions of the authority under this chapter, including contracts with persons, firms, corporations, and others;
  6. To apply to the appropriate agencies of the state, the United States, or any state thereof, and to any other proper agency for such permits, licenses, certificates, or approvals as may be necessary, and to construct, maintain, and operate projects in accordance with, and to obtain, hold and use licenses, permits, certificates, or approvals in the same manner as any other person or operating unit of any other person;
  7. To employ such engineers, architects, attorneys, real estate counselors, appraisers, financial advisors, and other consultants and employees as may be required in the judgment of the authority and to fix and pay their compensation from funds available to the authority therefor;
  8. To purchase all kinds of insurance including, but not limited to, insurance against tort liability, business interruption, and risks of damage to property;
  9. To fix, charge, and collect rents, fees, and charges for the use of any project or portion thereof or for steam produced therefrom;
  10. To accomplish projects as authorized by this chapter and the ordinances creating the authority;
  11. To distribute steam produced by a project to any person, municipality, or county;
  12. To do any and all other acts and things necessary, convenient, or desirable to carry out the purposes and to exercise the powers granted to the authority by this chapter;
  13. To contract for the sale of electric energy produced by any such project, or to consume electric energy produced by any project;
  14. To own and operate as a project any public work authorized by law and undertaken by the authority for public use or benefit, including, but not limited to, wastewater treatment facilities, collection mains, interceptors, force mains, pump stations, and other appurtenances for collection, pumping, treatment, and disposal of wastewater, sludge, or treated effluent; and
    1. To have and exercise the power of eminent domain for the purpose of acquiring rights-of-way, easements, other properties necessary in the construction or operation of its projects, property, or business under subdivision (14) of this section and exercised through the procedures under §§ 14-235-201 — 14-235-205 and 14-235-210.
    2. However, if an authority is created by two (2) or more municipalities, the authority shall disclose its intent to exercise the power of eminent domain by conducting an informational hearing before the quorum court of the county in which the power of eminent domain is exercised.

History. Acts 1979, No. 699, § 6; 1985, No. 678, § 4; A.S.A. 1947, § 82-2736; Acts 2003, No. 342, § 1.

Amendments. The 2003 amendment added (14) and (15).

14-233-108. Board of directors — Executive committee.

  1. Each sanitation authority shall consist of a board of directors appointed by the governing bodies of the members of the authority.
    1. The number and voting rights of directors shall be determined as set forth in § 14-233-105 and shall not thereafter be changed except by unanimous consent of the members of the authority as evidenced by ordinances or resolutions of their governing bodies.
    2. Copies of all such ordinances or resolutions, certified by the respective clerks of the member municipalities and counties or secretaries of the member districts shall be filed with the Secretary of State.
  2. Before entering upon his or her duties, each appointed director shall take and subscribe to an oath of office in which he or she shall swear to support the United States Constitution and the Arkansas Constitution and to discharge faithfully his or her duties in the manner provided by law.
    1. Except as may otherwise be provided in the application organizing the sanitation authority, the board of directors of the sanitation authority shall annually elect one (1) of the directors as chair, another as vice chair, and other persons, who may be but need not be directors, as treasurer, secretary, and if desired, assistant secretary. The office of treasurer may be held by the secretary or assistant secretary.
    2. The board of directors may also appoint such additional officers as it deems necessary.
    3. In the event the board of directors is organized so that no members of the board are actively involved in the actual handling and accounting for sanitation authority funds, the board of directors shall be authorized to waive any requirement for the purchase of a surety bond for the members of the board of directors.
    1. The secretary or assistant secretary of the authority shall keep a record of the proceedings of the authority. The secretary shall be the custodian of all records, books, documents, and papers filed with the authority, the minute book or journal of the authority, and its official seal.
    2. Either the secretary or the assistant secretary of the authority may cause copies to be made of all minutes and other records and documents of the authority and may give certificates under the official seal of the authority to the effect that the copies are true copies. All persons dealing with the authority may rely upon such certificates.
    1. A majority of the directors of a sanitation authority then in office shall constitute a quorum. A vacancy in the board of directors of the authority shall not impair the right of a quorum to exercise all the rights and perform all the duties of the authority.
    2. Any action taken by the authority under the provisions of this chapter may be authorized by resolution at any regular or special meeting. Each resolution shall take effect immediately and need not be published or posted. A majority of the votes which all directors are entitled to cast shall be necessary and sufficient to take any action or to pass any resolution.
  3. No director of a sanitation authority shall receive any compensation for the performance of his or her duties under this chapter, but each director shall be paid:
    1. A per diem allowance of one hundred fifty dollars ($150) for attending each meeting of the board unless the board of directors sets a different per diem allowance by board resolution; and
    2. His or her necessary expenses incurred while engaged in the performance of such duties.
  4. The board of directors of a sanitation authority may create an executive committee of the board and may provide for the composition of the executive committee so as to afford, in its judgment, fair representation of the member municipalities and counties. The executive committee shall have and exercise the powers and authority of the board of directors during intervals between the board's meetings as may be prescribed by its rules, motions, or resolutions. The terms of office of the members of the executive committee and the method of filling vacancies shall be fixed by the rules of the board of directors of the authority.

History. Acts 1979, No. 699, § 5; 1985, No. 678, § 2; A.S.A. 1947, § 82-2735; Acts 1993, No. 170, § 1; 1999, No. 472, § 1; 2005, No. 689, § 5; 2007, No. 595, § 1.

Amendments. The 1993 amendment added “be” following “who may” in (d)(1); added (d)(3); inserted “a per diem allowance of twenty-five dollars ($25.00) for attending each meeting of the board and” in (g); and made a minor punctuation change.

The 1999 amendment substituted “not more than one hundred dollars ($100)” for “twenty-five dollars ($25.00)” in (g).

The 2005 amendment deleted “respective municipalities and counties which are” following “bodies of the” in (a); and, in (b), deleted “municipalities and counties which are” following “consent of the” and inserted “or resolutions” twice and “or secretaries of the member districts.”

14-233-109. Bonds — Issuance, public hearing, execution, and sale.

  1. Sanitation authorities are authorized to use any available funds and revenues for the accomplishment of projects and may issue bonds, as authorized by this chapter, for the purpose of paying, financing, and refinancing project costs and accomplishing projects, either alone or together with other available funds and revenues.
      1. Prior to a sanitation authority's proposed issuance of bonds, the sanitation authority shall publish one (1) time in a newspaper of general circulation in each county that is a member of the sanitation authority and in each county in which a member of the sanitation authority is located:
        1. Notice of the proposed issuance of bonds;
        2. The maximum principal amount of bonds contemplated to be sold;
        3. A general description of the project contemplated to be financed or refinanced with bond proceeds; and
        4. The date, time, and location of a public hearing at which members of the public may obtain further information regarding the bonds and the development of the project.
        1. The location of the public hearing described in subdivision (b)(1)(A)(iv) of this section shall be in the county in which the project is located.
        2. If the project is located in more than one (1) county, the location of the public hearing shall be in the county that has the greatest amount of territory of the counties in which the project is located.
      2. Notice under subdivision (b)(1)(A) of this section shall be published at least ten (10) days prior to the date of the hearing described in subdivision (b)(1)(A)(iv) of this section.
    1. A sanitation authority chair or his or her designee shall be responsible for conducting the hearing and shall request all public comments that might pertain to the proposed issuance of bonds by the sanitation authority.
      1. Upon compliance with the provisions of this section, no other notice, hearing, or approval by any other entity or governmental unit shall be required as a condition to the issuance by a sanitation authority of its contemplated bonds.
      2. The provisions of the Revenue Bond Act of 1987, § 19-9-601 et seq., do not apply to this section.
    2. The requirements of this subsection shall not apply to the issuance of bonds to refund bonds of the sanitation authority for which a public hearing was held.
    1. The issuance of bonds shall be by resolution of the board of the sanitation authority.
    2. The bonds may be coupon bonds payable to bearer, subject to registration as to principal or as to principal and interest, or fully registered bonds without coupons, may contain exchange privileges, may be issued in one (1) or more series, may bear such date or dates, may mature at such time or times, not exceeding forty (40) years from their respective dates, may bear interest at such rate or rates, may be in such form, may be executed in such manner, may be payable in such medium of payment, at such place or places, may be subject to such terms of redemption in advance of maturity at such prices, and may contain such terms, covenants, and conditions as the resolution may provide, including without limitation those pertaining to the custody and application of the proceeds of the bonds, the collection and disposition of revenues, the maintenance of various funds and reserves, the investing and reinvesting of any moneys during periods not needed for authorized purposes, the nature and extent of the security, the rights, duties, and obligations of the authority and the trustee for the holders or registered owners of the bonds, and the rights of the holders or registered owners of the bonds.
  2. There may be successive bond issues for the purpose of financing the same project, and there may be successive bond issues for financing the cost of reconstructing, replacing, constructing additions to, extending, improving, and equipping projects already in existence, whether or not originally financed by bonds issued under this chapter, with each successive issue to be authorized as provided by this chapter. Priority between and among issues and successive issues as to security of the pledge of revenues and lien on the sanitation authority's properties involved may be controlled by the resolution authorizing the issuance of the bonds.
  3. Subject to the provisions of this chapter pertaining to registration, the bonds shall have all the qualities of negotiable instruments under the laws of the State of Arkansas.
  4. The bonds may be sold at public or private sale for such price, including without limitation sale at a discount and in such manner the authority may determine by resolution.
  5. Bonds issued under this chapter shall be executed by the manual or facsimile signatures of the chair and secretary of the board, but one (1) of such signatures must be manual. The coupons attached to the bonds may be executed by the facsimile signature of the chair of the board. In case any of the officers whose signatures appear on the bonds or coupons shall cease to be officers before the delivery of the bonds or coupons, their signatures shall nevertheless be valid and sufficient for all purposes. The seal of the sanitation authority shall be placed or printed on each bond in such manner as the board shall determine.

History. Acts 1979, No. 699, § 7; 1985, No. 678, § 3; A.S.A. 1947, § 82-2737; Acts 2007, No. 599, § 2.

14-233-110. Bonds — Trust indenture.

  1. The resolution authorizing the bonds may provide for the execution by the authority with a bank or trust company within or without this state of a trust indenture that defines the rights of the holders and registered owners of the bonds.
  2. The resolution or indenture may control the priority between and among successive issues and may contain any other terms, covenants, and conditions that are deemed desirable, including without limitation those pertaining to the custody and application of proceeds of the bonds, the maintaining of rates and charges, the collection and disposition of revenues, the maintenance of various funds and reserves, the nature and extent of the security and pledging of revenues, the rights, duties, and obligations of the agency and the trustee for the holders or registered owners of the bonds, and the rights of the holders and registered owners of the bonds.
  3. The resolution or trust indenture authorizing or securing any bonds issued under this chapter may or may not impose a foreclosable mortgage lien upon or security interest in the project financed in whole or in part with the proceeds of the bonds or other properties of the authority, and the nature and extent of the mortgage lien or security interest may be controlled by the resolution or trust indenture, including without limitation provisions pertaining to the release of all or part of the authority's properties from the mortgage lien or security interest and the priority of the mortgage lien or security interest in the event of the issuance of additional bonds.
  4. Subject to the terms, conditions, and restrictions that may be contained in the resolution or trust indenture, any holder or registered owner of bonds issued under this chapter or of any coupon attached thereto may either at law or in equity enforce the mortgage lien or security interest and may by proper suit compel the performance of the duties of the members and employees of the sanitation authority as set forth in the resolution or trust indenture authorizing or securing the bonds.

History. Acts 1979, No. 699, § 7; A.S.A. 1947, § 82-2737; Acts 2007, No. 599, § 3.

14-233-111. Bonds — Default.

    1. In the event of a default in the payment of the principal of, premium on, if any, or interest on any bonds issued under this chapter, any court having jurisdiction may appoint a receiver to take charge of all or any part of the project in which there is a mortgage lien or security interest securing the bonds in default.
    2. The receiver shall have the power and authority to operate and maintain the project, to charge and collect rates, payments, rents, and charges sufficient to provide for the payment of the principal of, premium on, if any, and interest on the bonds, after providing for the payment of any costs of receivership and operating expenses of the project, and to apply the revenues derived from the project in conformity with this chapter and the resolution or trust indenture authorizing or securing the bonds.
    3. When the default has been cured, the receivership shall be ended and the project returned to the sanitation authority.
  1. The relief afforded by this section shall be construed to be in addition and supplemental to the remedies that may be afforded the trustee for the bondholders and the bondholders in the resolution or trust indenture authorizing or securing the bonds and shall be so granted and administered as to accord full recognition to priority rights of bondholders as to the pledge of revenues from, and the mortgage lien on and security interest in, the project as specified in and fixed by the resolutions or trust indentures authorizing or securing successive bond issues.

History. Acts 1979, No. 699, § 7; A.S.A. 1947, § 82-2737.

14-233-112. Bonds — Liability — Payment and security.

  1. It shall be plainly stated on the face of each bond that it has been issued under the provisions of this chapter, that the bonds are obligations only of the sanitation authority, and that in no event shall they constitute an indebtedness for which the faith and credit of the member municipalities, counties, or districts or any of their revenues are pledged.
  2. No member of the board of directors shall be personally liable on the bonds or for any damages sustained by anyone in connection with any contracts entered into in carrying out the purpose and intent of this chapter unless he or she shall have acted with corrupt intent.
  3. The principal of and interest on the bonds shall be payable from and may be secured by a pledge of revenues received by the sanitation authority or obligations of the owners of projects.

History. Acts 1979, No. 699, § 8; A.S.A. 1947, § 82-2738; Acts 2005, No. 689, § 6; 2007, No. 599, § 4.

Amendments. The 2005 amendment inserted “or districts” and made a related change in (a).

14-233-113. Refunding bonds — Issuance.

  1. Bonds may be issued for the purpose of refunding any bonds issued under this chapter or any other interest-bearing indebtedness of the sanitation authority. Refunding bonds may be combined with bonds issued under the provisions of § 14-233-109 into a single issue.
  2. When refunding bonds are issued, they may either be sold or delivered in exchange for the bonds being refunded. If sold, the proceeds may either be applied to the payment of the bonds or indebtedness being refunded or deposited in escrow for the retirement thereof.
  3. The resolution under which refunding bonds are issued may provide that any of the refunding bonds shall have the same priority of lien on and security interest in sanitation authority revenues and the sanitation authority's properties as was enjoyed by the bonds refunded by them.

History. Acts 1979, No. 699, § 9; A.S.A. 1947, § 82-2739; Acts 2007, No. 599, § 5.

14-233-114. Contracts with municipalities or counties — Rates, fees, and charges — Pledges.

  1. Any municipality or county that is a member of a sanitation authority may contract with the authority to utilize any project upon any terms and conditions as are deemed necessary, convenient, or desirable by the municipality or county and the authority including without limitation agreements on the part of the municipality or county for any period of time:
    1. To deliver all solid waste collected by or on behalf of the municipality or county to a particular project for disposal, treatment, or other handling;
    2. To prohibit by ordinance or other legal means the disposal, treatment, or other handling of solid waste within the corporate boundaries of the municipality or county by persons other than the sanitation authority or any person designated by the sanitation authority; and
    3. To deliver all or a certain amount of wastewater, sludge, or treated effluent from its sewer system to the project.
  2. Any municipality or county that is a member of a sanitation authority may:
    1. Require by ordinance or other legal means that solid waste generated or collected within the corporate boundaries of the municipality or county be delivered to a particular project for disposal, treatment, or other handling;
    2. Prohibit by ordinance or other legal means the collection, disposal, treatment, or other handling of solid waste within the corporate boundaries of the municipality or county by persons other than the municipality or county, the sanitation authority, or any persons designated by the municipality or county or the sanitation authority;
    3. Provide by ordinance or other legal means that no person other than as may be designated by the municipality or county or the sanitation authority shall engage in the collection or utilization of solid waste within the corporate boundaries of the municipality or county that would be competitive with the purposes or activities of the sanitation authority as provided in this chapter; and
    4. Covenant in connection with the issuance of bonds, notes, or other evidence of indebtedness to adopt any ordinance described in subdivisions (b)(1)-(3) of this section and that any ordinance so adopted shall remain in full force and effect and shall be enforced so long as any bonds, notes, or other evidences of indebtedness remain outstanding.
  3. A sanitation authority is authorized to fix, charge, and collect rates, fees, and charges for disposal, treatment, or other handling of solid waste, wastewater, sludge, or treated effluent at a project. If duly authorized by the municipal or county members of a sanitation authority, the sanitation authority may implement the collection procedures through the personal property tax system provided for by § 8-6-211 or § 8-6-212. For as long as any bonds are outstanding and unpaid, the rates, fees, and charges shall be so fixed by the authority as to provide revenues sufficient:
    1. To pay all costs of and charges and expenses in connection with the proper operation and maintenance of its projects and all necessary repairs, replacements, or renewals thereof;
    2. To pay when due the principal of, premium, if any, and interest on all bonds, including bonds subsequently issued for additional projects, payable from the revenues;
    3. To create and maintain reserves as may be required by any resolution or trust indenture authorizing or securing bonds; and
    4. To pay any and all amounts that the sanitation authority may be obligated to pay from project revenues by law or contract.
  4. Any pledge made by a sanitation authority pursuant to this chapter shall be valid and binding from the date the pledge is made. The revenues pledged and then held or thereafter received by the sanitation authority or any fiduciary on its behalf shall immediately be subject to the lien of the pledge without any physical delivery thereof or further act. The lien of the pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the sanitation authority without regard to whether such parties have notice thereof.
  5. The resolution, trust indenture, or other instrument by which a pledge is created need not be filed or recorded in any manner.

History. Acts 1979, No. 699, § 10; 1985, No. 678, § 5; A.S.A. 1947, § 82-2740; Acts 1991, No. 1007, § 3; 2007, No. 599, § 6.

Research References

U. Ark. Little Rock L.J.

Survey—Environmental Law, 14 U. Ark. Little Rock L.J. 779.

14-233-115. Rights of bondholders.

Any holder or registered owner of bonds or coupons pertaining to the bonds, except to the extent the rights given in this chapter may be restricted by the resolution or trust indenture authorizing or securing the bonds and coupons may, either at law or in equity, by suit, action, mandamus, or other proceeding protect and enforce any and all rights under the laws of the state or granted under this chapter or, to the extent permitted by law, under the resolution or trust indenture authorizing or securing the bonds or under any agreement or other contract executed by a municipality, county, or sanitation authority pursuant to this chapter, and may enforce and compel the performance of all duties required by this chapter or by the resolution or trust indenture to be performed by any municipality, county, or sanitation authority, or by any officer of the foregoing, including the fixing, charging, and collecting of rates, fees, and charges.

History. Acts 1979, No. 699, § 11; A.S.A. 1947, § 82-2741.

14-233-116. Bonds — Tax exemption.

Bonds issued under the provisions of this chapter, and the interest thereon, shall be exempt from all state, county, and municipal taxes, including property, income, inheritance, and estate taxes.

History. Acts 1979, No. 699, § 12; A.S.A. 1947, § 82-2742.

14-233-117. Tax exempt status of property and income of authority.

Each sanitation authority created pursuant to this chapter will be performing public functions and will operate in a governmental capacity as a public instrumentality of the municipalities or counties which are members of the authority. Accordingly, all properties at any time owned by the authority and the income therefrom shall be exempt from all taxation in the State of Arkansas and the authority shall retain all immunities of the municipalities and counties which are members of the authority.

History. Acts 1979, No. 699, § 13; A.S.A. 1947, § 82-2743; Acts 1991, No. 960, § 1.

14-233-118. Investment of public funds in bonds.

Any municipality, any board, commission, or other authority established by ordinance of any municipality, or the boards of trustees, respectively, of the firemen's relief and pension fund and the policemen's pension and relief fund of any municipality, or the board of trustees of any retirement system created by the General Assembly of the State of Arkansas, may in its discretion, invest any of its funds not immediately needed for its purposes in bonds issued under the provisions of this chapter. Bonds issued under the provisions of this chapter shall be eligible to secure the deposit of public funds.

History. Acts 1979, No. 699, § 14; A.S.A. 1947, § 82-2744.

14-233-119. Transfer of facilities to authority by county or municipality.

    1. Any municipality or county may acquire facilities for a project or any portion thereof, including a project site, by gift, purchase, lease, or condemnation, and may transfer the facilities to a sanitation authority by sale, lease, or gift.
    2. The transfer may be authorized by ordinance of the governing body without regard to the requirements, restrictions, limitations, or other provisions contained in any other law.
  1. Any municipality may also contribute funds from its sewer system, grant funds, or proceeds of revenue bonds issued by it to pay, in whole or in part, the cost of a project which will be utilized by the municipality.

History. Acts 1979, No. 699, § 15; A.S.A. 1947, § 82-2745; Acts 2007, No. 599, § 7.

14-233-120. Annual report.

Within the first ninety (90) days of each calendar year, each sanitation authority shall make a written report to the governing body of each municipality and county which are members of the authority concerning its activities for the preceding calendar year. Each report shall set forth a complete operating and financial statement covering its operation during the year.

History. Acts 1979, No. 699, § 17; A.S.A. 1947, § 82-2747.

14-233-121. Dissolution of authority.

  1. Whenever the member municipalities and counties shall by ordinance determine that the purposes for which the sanitation authority was formed have been substantially fulfilled and that all bonds issued and all other obligations incurred by the authority have been fully paid or satisfied, the member municipalities and counties may by ordinance declare the authority to be dissolved.
  2. On the effective date of the dissolution, the title to all funds and other property owned by the authority at the time of the dissolution shall vest in all or any number of the member municipalities and counties in the manner provided in the ordinances declaring the dissolution.
  3. Copies of all the ordinances, certified by the respective clerks of the member municipalities and counties, shall be filed with the Secretary of State.

History. Acts 1979, No. 699, § 16; A.S.A. 1947, § 82-2746.

14-233-122. Purchasing procedures.

The board of each sanitation authority shall adopt county purchasing procedures, as provided in § 14-22-101 et seq., as the approved purchasing procedures for the sanitation authority.

History. Acts 1995, No. 163, § 2; 2007, No. 599, § 8.

Chapter 234 Waterworks and Water Supply

Research References

Ark. L. Rev.

Looney, Modification of Arkansas Water Law: Issues and Alternatives, 38 Ark. L. Rev. 221.

C.J.S. 87 C.J.S., Towns., § 36.

94 C.J.S., Water, §§ 241, 319(7).

U. Ark. Little Rock L.J.

Comment, Arkansas at the Water Crossroads: Regulations or Solutions?, 7 U. Ark. Little Rock L.J. 401.

Subchapter 1 — General Provisions

Cross References. Wastewater treatment districts, § 14-250-101 et seq.

Preambles. Acts 1959, No. 288 contained a preamble which read:

“WHEREAS, near many municipalities of the State of Arkansas are areas that, while they are highly developed, are not a part of any municipality and are without water or sewer services, although they are able to pay for the cost of such services through service charges, but under the present statutes the cities cannot extend their service lines beyond their corporate limits to these areas although the cities can deliver surplus water at their corporate limits or can arrange for sewage collection and disposal up to their corporate limits, but the areas have no way to secure the money to pay for these connections except by the organization of suburban improvement districts, with the consequent overhead costs; and

“WHEREAS, the lack of water and sewer services constitutes a serious threat to the health and comfort not only of the residents in said areas but of the inhabitants of the nearby city;

“Now, therefore….”

Acts 1965, No. 50 contained a preamble which read:

“WHEREAS, Many municipalities of this State have constructed or acquired waterworks systems pursuant to the authority contained in Act 131 of the Acts of the General Assembly for the year 1933, as amended; and

“Whereas, said laws authorize water revenues to be used for other municipal purposes only if a surplus exists; and

“Whereas, said laws specify that no surplus exists unless, among other things, the waterworks system has on hand funds in excess of the operating authority's estimated operation and maintenance requirements for the remainder of the fiscal year then current and for the fiscal year next ensuing; and

“Whereas, municipalities of this State, at an expense to the general funds, furnish their waterworks systems with police, fire and health protection and with administrative and other services which a privately owned utility would pay for through taxes; and

“Whereas, there is no statute authorizing such municipal waterworks systems to pay for said services except from surplus revenues; and

“Whereas, due to the definition of surplus revenues as set forth in the aforesaid amended Act, it is unlikely that many waterworks systems will accumulate such surpluses;

“Now, Therefore….”

Effective Dates. Acts 1949, No. 49, § 9: approved Feb. 7, 1949. Emergency clause provided: “It is found and determined as a fact that pure water for drinking purposes and domestic use, as well as water for fire protection, is an imperative need in cities of the first class and other municipalities, that the passage of this Act will facilitate the construction of improvements to waterworks systems owned by cities of the first class and the financing thereof, and will do away with uncertainty in the existing laws as to waterworks systems originally constructed and paid for by improvement districts in cities of the first class, and will facilitate the furnishing of water by cities of the first class in their governmental capacity to other municipalities, and to improvement districts in other municipalities.

“Therefore, it is hereby declared that an emergency exists and that this Act is necessary for the immediate preservation of the public peace, health and safety, and that this Act shall take effect and be in force from and after its passage.”

Acts 1955, No. 321, § 11: Mar. 21, 1955. Emergency clause provided: “It is found to be a fact that the proper operation, maintenance and improvement of many municipal waterworks systems are being hampered and delayed because of inadequate financing provisions under the existing law and because of inadequate ratemaking authority, and the water supply of said municipalities is being seriously threatened and curtailed thereby, and an emergency is thereby created and is hereby declared, and this Act, being necessary for the immediate preservation of the public welfare, peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1959, No. 184, § 2: Mar. 6, 1959. Emergency clause provided: “It is hereby found and determined by the General Assembly that there are a number of cities in this State who, for the protection of the health and safety of their inhabitants, must enlarge their water system; that many cities may obtain an adequate and safe water supply only by purchasing water from an adjacent city or town; and, that the laws of this State are not clear as to the authority of cities to make the necessary expansions and agreements to accomplish such purposes, and that only by the immediate passage of this Act may such situation be corrected. Therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1959, No. 288, § 7: Mar. 26, 1959. Emergency clause provided: “In order to secure efficiency and economy in the operation of water and sewer services and to promote the health and comfort of residents adjacent to a municipality, there is a need for the authorization granted by this Act, and therefore an emergency is declared and this Act, being necessary for the preservation of the public peace, health and safety shall take effect and be in force upon its passage and approval.”

Acts 1965, No. 476, § 3: Mar. 20, 1965. Emergency clause provided: “It has been found and determined by the General Assembly of the State of Arkansas that the United States Government is now constructing a number of flood control projects in the State of Arkansas, necessitating the alteration or relocation of certain municipally owned waterworks systems located in these projects and that municipalities do not presently have the authority to grant such rights to the Federal Government and therefore an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and safety shall take effect and be in full force from and after its passage and approval.”

Acts 1969, No. 90, § 3: Feb. 21, 1969. Emergency clause provided: “It is hereby found that a 4% rate of interest now allowed by law is hampering municipalities in financing of improvements to their municipal water systems, an emergency is declared to exist and this act is necessary for the immediate preservation of the public peace, health and safety and shall be in full force and effect from and after its passage and approval.”

Acts 1979, No. 529, § 5: Mar. 22, 1979. Emergency clause provided: “It has been found and it is hereby declared that the interest rate limitation presently in effect for certain revenue promissory notes secured by pledges of municipal water system revenues (being six percent (6%) per annum) is not adequate to permit the interim financing by that method of needed municipal water system improvements and that certain of these improvements are urgently and immediately needed. Therefore, an emergency is declared to exist and this Act being necessary for the preservation of the public peace, health and safety shall be in effect upon its passage and approval.”

Acts 1981, No. 425, § 54: Mar. 11, 1981. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety shall be in effect from and after its passage and approval.”

Acts 1989, No. 254, § 5: Feb. 24, 1989. Emergency clause provided: “It is hereby found and determined by the General Assembly that present law is unclear regarding whether municipalities may borrow funds to refinance existing obligations pertaining to their waterworks and sewage systems; that this Act clarifies the law to specifically grant municipalities that authority; that until this Act becomes effective municipalities are going to be adversely affected; and that this Act should therefore be given effect immediately. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

14-234-101. Definitions.

As used in this act unless the context requires otherwise:

  1. “Operating authority” means either the city council, legislative body, or board of commissioners, whichever, in a given instance, shall be charged with the responsibility of operating the municipal waterworks system;
  2. “Nonresident consumer” means any consumer who purchases water within the municipal boundaries, which water is then transported to a point outside the municipal boundaries for use or resale; the term also applies to any consumer receiving service outside the municipality;
  3. “Operation and maintenance,” as used in this act and in all other acts relating to municipally owned waterworks systems includes, among other items of operation and maintenance, taxes, improvements, extensions, and additions to the waterworks system.

History. Acts 1955, No. 321, § 2; A.S.A. 1947, § 19-4202.1.

Meaning of “this act”. Acts 1955, No. 321, is codified as §§ 14-234-101, 14-234-102, 14-234-104, 14-234-110, 14-234-212, 14-234-214, and 14-234-310.

Case Notes

Construction.

The Supreme Court of Arkansas and not the federal district court had the final word as to the meaning of this section. Davis v. City of Little Rock, 136 F. Supp. 725 (E.D. Ark. 1955).

Cited: City of Little Rock v. Chartwell Valley Ltd. Partnership, 299 Ark. 542, 772 S.W.2d 616 (1989).

14-234-102. Construction.

This act, being necessary for the public health, safety, and welfare, shall be liberally construed to effectuate its purposes.

History. Acts 1955, No. 321, § 10; A.S.A. 1947, § 19-4259.

Meaning of “this act”. See note to § 14-234-101.

Case Notes

Cited: Davis v. City of Blytheville, 2015 Ark. 482, 478 S.W.3d 214 (2015).

14-234-103. Improvements — Financing with bonds.

  1. Whenever any municipality shall own or operate a waterworks system and shall desire to construct improvements and betterments thereto, it may issue revenue bonds under the provisions of this section to pay for them. The procedure for issuance of bonds shall be as provided in this section.
  2. The legislative body of the municipality shall provide for the issuance of revenue bonds by ordinance. The ordinance shall set forth a brief and general description of the contemplated improvements and betterments, the amount, rate of interest, time and place of payment, and other details in connection with the issuance of the bonds.
  3. The bonds shall bear interest at such rate or rates, payable semiannually, and shall be payable at such times and place not exceeding forty (40) years from their date as shall be prescribed in the ordinance providing for their issuance.
  4. The ordinance shall also declare that a statutory mortgage lien shall exist upon the waterworks system to secure the payment of the bonds and interest.
    1. The ordinance shall fix the minimum rate or rates for water to be collected prior to the payment of all of the bonds, with exceptions as may be provided in the ordinance, and shall pledge the revenues derived from the waterworks system for the purpose of paying the bonds and interest thereon.
    2. The pledge shall definitely fix and determine the amount of revenue which shall be necessary to be set apart and applied to the payment of principal and interest on the bonds and the proportion of the balance of the revenues or income which are to be set aside as a proper and adequate depreciation account.
    3. The rates to be charged for the services of the waterworks shall be sufficient to provide for the payment of all interest upon all bonds, to create a sinking fund to pay the principal thereof as and when payment becomes due, to provide for the operation and maintenance of the system, and to provide an adequate depreciation account.
  5. The ordinance:
    1. Shall provide, find, and declare, in addition to the other requirements set out in this section, the value of the then-existing system and the value of the property proposed to be constructed, and that the revenues derived from the entire system when the contemplated betterments and improvements are completed shall be derived according to those values and that so much of the revenue as is in proportion to the value of the betterments and improvements as against the value of the previously existing plant as so determined shall be set aside and used solely and only for the purpose of paying the revenue bonds issued for the betterments, together with costs of the operation and the depreciation thereof, and the revenue shall be deemed to be income derived exclusively from the betterments and improvements; or
    2. Shall provide that there shall be set aside and used, solely and only for the payment or retirement of revenue bonds issued for the betterment or improvement, all or any part of the revenues derived from the operation of the waterworks system not presently required to be set aside for other purposes by an ordinance of the municipality authorizing the issuance of revenue bonds then outstanding.
    1. The proceeds derived from the sale of the bonds shall be used solely for the purpose of making betterments and improvements to the waterworks system owned or operated by the municipality.
    2. The terms “betterments” and “improvements” include mains, pipelines, hydrants, meters, valves, standpipes, storage tanks, storage basins, pumping tanks, intakes, wells, clear water wells, impounding reservoirs, pumps, purification plants and units thereof, filtration plants and units thereof, as well as all other improvements and betterments.
    1. Bonds issued under the provisions of this section shall be payable solely from revenues derived from such waterworks system.
    2. The bonds shall not in any event constitute an indebtedness of the municipality within the meaning of the constitutional provisions or limitations.
    3. It shall be plainly stated on the face of each bond that it is issued under the provisions of this section and that it does not constitute an indebtedness of the municipality within the constitutional limitation.

History. Acts 1949, No. 49, § 6; 1981, No. 425, § 46; A.S.A. 1947, § 19-4269.3.

Publisher's Notes. Acts 1949, No. 49, § 7½, provided this act would be cumulative and would offer an alternative remedy as provided in the act and would not repeal or amend any act or law of the State of Arkansas except as specifically provided.

14-234-104. Improvements — Financing with promissory notes.

  1. Any municipality owning or operating a waterworks system, however constructed or acquired, and desiring to construct improvements and betterments thereto, may borrow money to be used for those purposes, to refinance or retire existing indebtedness related to the waterworks system, or to provide funds for preliminary expenses prior to the issuance of revenue bonds, the loan to be evidenced by revenue promissory notes as set out in this section. The money so borrowed shall be deposited in a revenue note fund and shall be used solely for the purposes authorized in this section.
  2. The note or notes evidencing the loan shall be authorized by the legislative body of the municipality and shall be due in no more than five (5) years from date and shall bear interest at a rate or rates as shall be provided in the ordinance authorizing their issuance, interest payable semiannually.
    1. The note or notes shall be payable solely from the revenues derived from the waterworks system and shall not in any event constitute an indebtedness of the municipality within the meaning of the constitutional provisions or limitations.
    2. It shall be plainly stated on the face of each note that it has been issued under the provisions of this act and that it does not constitute an indebtedness of the municipality within any constitutional or statutory limitations.
  3. The note or notes shall be subordinate to any outstanding revenue bonds theretofore issued by the municipality.
  4. It shall be no objection to the subsequent issue of any revenue bonds that a portion of the proceeds received from the sale of the revenue bonds is to be used to retire the indebtedness permitted by this section. If the proceeds of the bonds are so used, then the improvements constructed or purchased with the proceeds of the loan authorized by this section shall be considered to be a portion of the improvements constructed or purchased with the revenue bonds subsequently issued and shall be subject to the lien of the bonds.
  5. All interest paid on the revenue bonds shall be exempt from State of Arkansas income tax.

History. Acts 1955, No. 321, § 5; 1969, No. 90, § 1; 1979, No. 529, § 1; 1981, No. 425, § 42; A.S.A. 1947, § 19-4218.1; Acts 1989, No. 254, § 1.

Publisher's Notes. Acts 1979, No. 529, § 2, provided:

“Nothing set forth in this act shall be construed to affect bonds previously issued or other obligations previously incurred under Act No. 321 of 1955, as amended, which obligations are ratified and confirmed.”

Meaning of “this act”. See note to § 14-234-101.

14-234-105. Alteration despite zoning regulations.

Any municipality maintaining facilities in an area zoned subsequent to the construction of the facilities may add to, alter, expand, or change the facilities upon the land now used for those purposes, or upon lands immediately adjacent thereto, without regard to the zoning regulation for the area if the operating authority of the waterworks system deems the action necessary for the proper operation of its system.

History. Acts 1955, No. 321, § 8; A.S.A. 1947, § 19-4258.

14-234-106. Relocation of waterworks or sewer system by federal government.

  1. All cities and incorporated towns in the State of Arkansas are authorized to grant the United States of America the right to alter or relocate any portion of a municipally owned waterworks or sewer system in connection with the construction, development, operation, or maintenance of any flood control or other public project being constructed, operated, developed, or maintained by the United States of America, upon such terms and conditions and for such consideration as the cities or towns may determine to be just and proper.
  2. The cities or towns of each county of the State of Arkansas shall have power to execute any and all contracts, deeds, easements, subordination agreements, and other instruments of conveyance as may be required in or convenient to the exercise of the powers granted in this section, whether those powers are held in a governmental or proprietary capacity.

History. Acts 1965, No. 476, §§ 1, 2; A.S.A. 1947, §§ 19-4271, 19-4272.

14-234-107. Cities of the first class — Operation by city in governmental capacity.

Every city of the first class shall operate its waterworks system, however acquired, in its governmental capacity.

History. Acts 1949, No. 49, § 4; A.S.A. 1947, § 19-4269.1.

Publisher's Notes. As to the cumulative nature of Acts 1949, No. 49, see “Publisher's Notes” to § 14-234-103.

14-234-108. Cities of the first class — Sale or purchase of water to other municipalities.

    1. A city of the first class owning or operating a waterworks system may sell, in its governmental capacity, water at contractual rates to another municipality of this state or to an improvement district created under the laws of this state.
    2. A municipality of this state or an improvement district created under the laws of this state may purchase, in its governmental capacity, water at contractual rates from a city of the first class of this state and may expend the necessary funds to connect its distribution system with the supply or other mains of the selling municipality.
    1. The contract between two (2) municipalities of this state for the sale and purchase of water or between a municipality of this state and an improvement district created under the laws of this state for the sale and purchase of water shall be in writing, shall be authorized by ordinances adopted by the respective governing bodies of the contracting municipalities or by ordinance adopted by the governing body of the contracting municipality and by resolution adopted by the board of commissioners of the contracting improvement district, and shall be signed by the mayor of each contracting municipality and by the chair of the board of each contracting improvement district.
    2. Unless the Arkansas Natural Resources Commission is involved in the financing and determines that a different form or length of contract would be best in meeting the long-term water supply needs of the contracting parties, the contract may be for a term not to exceed twenty (20) years and may fix by its terms the rate or rates to be paid for the water for the entire term of the contract or may fix the rate or rates for the first year, two (2) years, or five (5) years, with appropriate provisions for arriving at the rate or rates for each succeeding one-year, two-year, or five-year period.
    3. The contract may also contain other appropriate provisions which will protect the respective interests of the contracting parties.

History. Acts 1949, No. 49, § 5; A.S.A. 1947, § 19-4269.2; Acts 1999, No. 1294, § 1.

Publisher's Notes. As to the cumulative nature of Acts 1949, No. 49, see “Publisher's Notes” to § 14-234-103.

Amendments. The 1999 amendment made stylistic changes and, in (b)(2), added “Unless the Arkansas… contracting parties” and substituted “not to exceed twenty (20) years and may fix by its terms” for “of not exceeding twenty (20) years and may by its terms fix.”

Case Notes

Contract Modification.

Only a city, and not the entity that operates the utility of the city, has the authority to enter into or modify contracts, and the conduct of the entity in supplying water in excess of the amounts specified in a contract did not have the effect of modifying the contract. City of Lamar v. City of Clarksville, 314 Ark. 413, 863 S.W.2d 805 (1993).

Contract Term.

A forty-year water supply agreement was contrary to subdivision (b)(2) of this section, and thus was void as a matter of law. City of Lamar v. City of Clarksville, 314 Ark. 413, 863 S.W.2d 805 (1993).

14-234-109. Cities of the first class — Sale of water to certain persons.

  1. Any city of the first class owning or operating a water system may, in its governmental capacity, sell surplus water at contractual rates to any person engaged in the business of selling and distributing water to consumers within a zone which is adjacent to and commercially a part of the city, or within any municipality which is within a zone adjacent to and commercially a part of the city, provided that the person has been authorized to engage in such business by the legal authority with jurisdiction to regulate it.
  2. Delivery of the water to the person shall be made at a point not beyond the corporate limits of the city.

History. Acts 1949, No. 49, § 7; 1951, No. 268, § 1; A.S.A. 1947, § 19-4269.4.

Publisher's Notes. As to the cumulative nature of Acts 1949, No. 49, see “Publisher's Notes” to § 14-234-103.

14-234-110. Waterworks operated in governmental capacity — Services to nonresident consumers.

  1. A municipality owning a waterworks system shall operate its entire system in a governmental and not proprietary capacity.
    1. The municipality shall have the option of extending its services to any consumer outside the municipal boundaries, but it shall not be obligated to do so.
    2. No municipality shall be obligated to supply any fixed amount of water or water pressure to nonresident consumers, nor shall a municipality be obligated to increase the number or size of, or change the location of, any mains or pipes outside its boundaries.
    3. Water may be supplied to nonresident consumers at such rates as the legislative body of the municipality may deem just and reasonable, and the rates need not be the same as the rates charged residents of the municipality.

History. Acts 1955, No. 321, § 7; A.S.A. 1947, § 19-4257.

Cross References. Rate-making authority, § 23-4-201.

Case Notes

Constitutionality.

Where it appeared that certain questions as to the constitutionality raised in action in federal district court against city commissioners seeking to enjoin enforcement of ordinance which established different rate as to resident and nonresident consumers of municipal waterworks might not have to be decided, since case might be decided on purely state grounds, such case would, for reasons of comity, be dismissed with right to pursue remedy in state courts. Davis v. City of Little Rock, 136 F. Supp. 725 (E.D. Ark. 1955).

Construction.

The Supreme Court of Arkansas and not the federal district court had the final word as to the meaning of this section. Davis v. City of Little Rock, 136 F. Supp. 725 (E.D. Ark. 1955).

Authority to Extend Services.

The General Assembly fully intended to empower municipalities with authority to extend water and sewer services beyond their boundaries, but no one, including water commissions or sewer committees, can obligate a municipality to extend those services. City of Little Rock v. Chartwell Valley Ltd. Partnership, 299 Ark. 542, 772 S.W.2d 616 (1989).

Rates.

The provisions of this section permitting the fixing of different rates as to nonresident consumers from the rates of resident consumers are permissive only. Davis v. City of Little Rock, 136 F. Supp. 725 (E.D. Ark. 1955).

Provision permitting municipality to charge nonresident consumers a higher rate than resident consumers is valid. Delony v. Rucker, 227 Ark. 869, 302 S.W.2d 287 (1957).

Where there was a contractual standard that any “increase or decrease in rates shall be based on a demonstrable increase or decrease in the costs of performance hereunder,” the trial judge properly used the language of the contract as the standard for the rate increase, and not the “reasonableness” standard of subdivision (b)(1) of this section. City of Lamar v. City of Clarksville, 314 Ark. 413, 863 S.W.2d 805 (1993).

Cited: Mount Olive Water Ass'n v. City of Fayetteville, 313 Ark. 606, 856 S.W.2d 864 (1993).

14-234-111. Service to adjacent areas — Municipalities generally.

  1. Any municipality in the State of Arkansas owning and operating a municipal waterworks system or a municipal sewer system or both may extend its service lines beyond its corporate limits for the purpose of giving water service, sewer service, or both, to adjacent areas where the demand for service is sufficient to produce revenues that will retire the cost of the service lines.
    1. A municipality owning and operating a municipal water or sewer system, or both, without applying for a certificate of convenience and necessity, extend its water lines and sewer lines or both to serve the adjacent or nearby areas.
    2. In order to secure the funds with which to make the service line extension or extensions, the municipality may issue negotiable coupon bonds or interest-bearing certificates of indebtedness to be paid out of the net revenues derived from the operation of the services so extended and, for the payment of the bonds, may pledge not only the net revenues from the areas but also any unpledged revenues derived by the municipality from the operation of either its water or sewer system, or both, that may be available from year to year in order to prevent a default in the payment of the revenue bonds issued for the extension beyond the corporate limits.
  2. The bonds or certificates of indebtedness authorized under this section shall be issued and sold under the provisions governing the issuance and sale of municipal water revenue bonds, as set out in subchapter 2 of chapter 234 of this title.
  3. Any municipality extending a service to an adjacent or nearby area shall have the power to fix the schedule of rates for services so extended.
  4. For the purpose of carrying out the provisions of this section, a municipality shall have the right of eminent domain as is provided in §§ 18-15-301—18-15-307.
  5. Nothing in this section shall be construed to require a municipality to extend either water or sewer service to adjacent or nearby areas.

History. Acts 1959, No. 288, §§ 1-6; A.S.A. 1947, §§ 19-4263 — 19-4268.

Case Notes

Authority to Extend Services.

The General Assembly fully intended to empower municipalities with authority to extend water and sewer services beyond their boundaries, but no one, including water commissions or sewer committees, can obligate a municipality to extend those services. City of Little Rock v. Chartwell Valley Ltd. Partnership, 299 Ark. 542, 772 S.W.2d 616 (1989).

Cited: City of Marion v. Baioni, 312 Ark. 423, 850 S.W.2d 1 (1993).

14-234-112. Service to adjacent areas — Cities of the second class.

Cities of the second class now owning a waterworks system are authorized and empowered to purchase, construct, own, and maintain water supply lines to the city limits of any adjacent city or town where the latter city or town agrees to purchase water under contract from the supplying city.

History. Acts 1959, No. 184, § 1; A.S.A. 1947, § 19-4269.

14-234-113. Service to other municipalities.

Municipal corporations, upon approval by resolution of their governing bodies, may make and enter into contracts whereby one (1) municipal corporation shall construct and maintain a water system for, and supply water to, another municipal corporation.

History. Acts 1963, No. 146, § 1; A.S.A. 1947, § 19-4270.

14-234-114. Payments from water revenues in lieu of taxes.

  1. The operating authority of any municipal waterworks system which was constructed or acquired pursuant to the authority contained in subchapter 2 of chapter 234 of this title shall have discretion to make payments from water revenues to the general fund of the municipality, in lieu of taxes, in return for police, fire, and health protection and in return for administrative and other services furnished the waterworks system by the municipality.
  2. The payments, if made, shall be an operation and maintenance expense of the waterworks system.
  3. In any calendar year, the payments authorized by this section shall not exceed the total of the following:
    1. A sum equal to five percent (5%) of gross income from water sales during the preceding calendar year; plus
    2. A sum equal to the amounts the municipality would have received from the waterworks system as property taxes for the preceding calendar year if the waterworks system's property had been privately owned and subject to tax by the municipality. For the purpose of this computation, the waterworks property shall be deemed to have an assessed value equal to twenty percent (20%) of book value as reflected by the waterworks system's usual accounting procedures.
  4. The payments shall be discretionary with the operating authority of the waterworks system and shall not be mandatory.
  5. Nothing contained in this section shall be construed as authorizing payments in violation of any trust indenture executed by municipalities to secure waterworks revenue bondholders. It shall be permissible for such indentures to limit or prohibit the payments authorized in this section.
  6. The payments authorized in this section shall not be made unless the municipality maintains water rates sufficient to provide the operating authority's estimated cost of operating and maintaining the waterworks system and sufficient to pay all other items specified in § 14-234-214.

History. Acts 1965, No. 50, §§ 1-4; A.S.A. 1947, §§ 19-4273 — 19-4276.

Case Notes

Privilege Tax Levied on Waterworks.

Privilege tax levied by city on waterworks commission was an unauthorized tax, and, therefore an illegal exaction, where: (1) the assessment was not a charge for services rendered to the waterworks, since those services are paid for in lieu of taxes pursuant to this section and are discretionary with the operating authority, while, conversely, the tax was mandatory and in a set amount, and the ordinances provided that “the taxes hereby levied shall be paid in addition to any sums paid by the Little Rock Municipal Waterworks under the provisions of Act 50 of 1965”; (2) under § 14-234-214, all other payments by a waterworks to a municipality which come from water rates must come from surplus accumulated in the operation fund only after taking into account the cost of operations and maintenance, allowing for replacement costs and depreciation, providing for interest redemption and the purchasing of all outstanding bonds, whereas the tax in question, originally at 25 cents per meter, was levied on the waterworks and passed on to the customer and then paid by the customer and passed directly back to the city without regard to the cost of operations, maintenance, depreciation, and debt so that it was not a part of the water rate; and (3) the assessment was designated a privilege tax by the ordinances. City of Little Rock v. Cash, 277 Ark. 494, 644 S.W.2d 229 (1982), cert. denied, Cash v. Little Rock, 462 U.S. 1111, 103 S. Ct. 2464, 77 L. Ed. 2d 1341 (1983), overruled in part, T&T Chem. v. Priest, 351 Ark. 537, 95 S.W.3d 750 (2003).

Cited: City of Lamar v. City of Clarksville, 314 Ark. 413, 863 S.W.2d 805 (1993).

14-234-115. Water impoundments in other counties — Payment in lieu of taxes.

  1. Cities of the first class owning a water impoundment in excess of one thousand two hundred fifty (1,250) acres in a county other than the county in which the city is located shall pay to the school districts wherein their water impoundments are located, in lieu of property tax on the water impoundments, an annual amount equal to the property taxes the cities would pay to such school districts were their water impoundments not exempt from property taxation.
  2. It is declared to be the intent of the General Assembly to afford school districts located in counties where there is no corresponding benefit from the water impoundment a means of recovering lost revenues due to the impoundment.

History. Acts 1981, No. 985, §§ 1, 2; A.S.A. 1947, §§ 19-4277, 19-4277.1.

Publisher's Notes. Acts 1981, No. 985 became law without the Governor's signature and was noted by the Governor on March 31, 1981.

Cross References. Property exempt from taxation, § 26-26-1001 et seq.

14-234-116. Waterworks and sewer commission.

  1. Any city of the first or second class operating its municipal waterworks through a waterworks commission, by passage of a municipal ordinance, may authorize the waterworks commission to function as a waterworks and sewer commission.
  2. Waterworks and sewer commissions created pursuant to the authority granted in this section shall retain all powers now granted to waterworks commissions and, in addition, shall have all the powers granted to sewer committees by §§ 14-235-206 and 14-235-207 and all the powers granted to sanitary boards by § 14-235-209.
  3. It is the express purpose of this section to permit cities of the first and second class to operate their waterworks and sewer systems through a single commission.

History. Acts 1957, No. 129, §§ 1-3; A.S.A. 1947, §§ 19-4260 — 19-4262.

14-234-117. Return of dedicated property.

  1. Any water improvement district or any municipality that has paid for the construction of water pipelines and other portions of the infrastructure of a water system used by the district or municipality and has dedicated the property to the use of another municipality shall be entitled to the return of the property located within its boundaries by a vote of a majority of the board of directors of the water improvement district or the governing body of the municipality.
  2. The property shall be returned without charge except for cost reimbursement for repairs that have been made to the water pipelines and other portions of the infrastructure of the water system.
  3. The provisions of this section shall apply only to municipalities and improvement districts within counties having a population of two hundred thousand (200,000) or more according to the most recent decennial census.

History. Acts 1989, No. 900, §§ 1, 2.

Cross References. Water and soil improvement districts, § 14-114-101 et seq.

14-234-118. No abrogation of existing contracts — Exception.

  1. As used in this section:
    1. The term “utility service” shall mean utility service of municipally owned water utilities and shall not mean utility service of municipally owned electric utilities, municipally owned natural gas utility systems, or consolidated municipal utility improvement districts;
    2. The term “abrogate” means to cancel, invalidate, nullify, annul, void, revoke, rescind, deny, repudiate, or otherwise terminate or refuse to honor.
  2. The provisions of this section shall not apply to contracts between a municipality within this state and an entity or entities located outside the boundaries of this state.
    1. The governing body of a municipality shall have no authority, by ordinance or otherwise, to abrogate an existing contract to furnish water utility service to residents in an area outside the boundaries of the municipality unless provided for by mutual agreement of all parties involved. Provided, nothing herein shall be construed to prohibit or restrict the authority of the governing body of a municipality to revise a revision of the rates to be charged water utility users in an area outside the boundaries of the municipality if circumstances arise which justify a revision in such rates or charges.
    2. Provided further, nothing herein shall be construed to prohibit or restrict the authority of a municipality to enforce payment of utility bills by disconnecting utility service and terminating contracts to furnish utility service.
  3. Nothing contained in this section shall require a municipally owned water utility to extend new service under existing water supply contracts outside its corporate limits or continue service under existing water supply contracts outside its corporate limits, if, in the opinion of the municipally owned water utility, such extension or continuance of service would be an engineering or financial impracticality, affect the reliability or quality of service to customers served under such extension or continuance, or affect the reliability or quality of service to other customers of the municipally owned water utility.

History. Acts 1989, No. 930, §§ 1-4.

Publisher's Notes. Acts 1989, No. 930, § 5, provided that this act shall be effective January 1, 1990, and shall not apply to actions taken by municipalities with regard to territories or water customers within areas for which annexation procedures, whether voluntary or involuntary, commenced prior to the effective date of this act.

14-234-119. Annual audits and procedures.

    1. A county, municipality, improvement district, or not-for-profit association or entity receiving fees from customers for providing sewage services shall obtain an annual financial audit of the system if the system has at least seven hundred fifty (750) service connections during a fiscal year.
    2. A county, municipality, improvement district, or not-for-profit association or entity receiving fees from customers for providing water services shall obtain an annual financial audit of the system if the system has at least one thousand (1,000) service connections during a fiscal year.
      1. A county, municipality, improvement district, or not-for-profit association or entity receiving fees from customers for providing sewage services and having at least one hundred (100) but less than seven hundred fifty (750) service connections during a fiscal year shall obtain an annual audit or an annual agreed-upon procedures and compilation report.
      2. A county, municipality, improvement district, or not-for-profit association or entity receiving fees from customers for providing water services and having at least one hundred (100) but less than one thousand (1,000) service connections during a fiscal year shall obtain an annual audit or an annual agreed-upon procedures and compilation report.
    1. The agreed-upon procedures and compilation report engagement shall be conducted in accordance with standards established by the American Institute of Certified Public Accountants and subject to minimum procedures prescribed by the Legislative Joint Auditing Committee.
  1. The audits or agreed-upon procedures and compilation reports shall be completed within one (1) year following each system's fiscal year end.
  2. Each entity shall choose and employ accountants who are licensed and in good standing with the Arkansas State Board of Public Accountancy.

History. Acts 1997, No. 272, § 1; 1999, No. 218, § 1; 2011, No. 605, § 1; 2011, No. 615, § 1; 2015, No. 400, § 1.

Publisher's Notes. Acts 1999, No. 218, § 5, provided:

“The provisions of this Act are applicable for fiscal periods beginning January 1, 1999 or thereafter.”

Amendments. The 1999 amendment rewrote this section.

The 2011 amendment by No. 605 deleted “water or” preceding “sewage services” in (a)(1) and (b)(1)(A); and added (a)(2) and (b)(1)(B).

The 2011 amendment by No. 615, in (b)(1), deleted “report of” preceding “agreed-upon,” and inserted “and compilation report” at the end; and rewrote (b)(2).

The 2015 amendment substituted “seven hundred fifty (750)” for “five hundred (500)” in (a)(1); substituted “one thousand (1,000)” for “seven hundred fifty (750)” in (a)(2); substituted “seven hundred fifty (750)” for “five hundred (500)” in (b)(1)(A); substituted “one thousand (1,000)” for “seven hundred fifty (750)” in (b)(1)(B); and substituted “report engagement” for “engagements” in (b)(2).

14-234-120. Filing of report.

Within thirty (30) days of completion of the audit report or the agreed-upon procedures and compilation report, the accountant performing the audit or agreed-upon procedures and compilation shall submit the report to the Legislative Auditor. The report shall be submitted in an electronic media format approved by the Legislative Auditor.

History. Acts 1997, No. 272, § 2; 1999, No. 218, § 2; 2011, No. 615, § 2.

Publisher's Notes. Acts 1999, No. 218, § 5, provided:

“The provisions of this Act are applicable for fiscal periods beginning January 1, 1999 or thereafter.”

Amendments. The 1999 amendment rewrote this section.

The 2011 amendment rewrote the section.

14-234-121. Review of audit report or report of agreed-upon procedures by board.

Each audit report or report of agreed-upon procedures shall be reviewed by the appropriate board at the next regularly scheduled open meeting after receiving the audit report or the report of agreed-upon procedures from the accountant.

History. Acts 1997, No. 272, § 3; 1999, No. 218, § 3.

Publisher's Notes. Acts 1999, No. 218, § 5, provided:

“The provisions of this Act are applicable for fiscal periods beginning January 1, 1999 or thereafter.”

Amendments. The 1999 amendment substituted “of agreed-upon procedures” for “with accompanying management letter” and inserted “or the report of agreed-upon procedures”.

14-234-122. Penalty provision.

Any entity not complying with §§ 14-234-11914-234-121 may be subject to fines up to one thousand dollars ($1,000) by the Department of Health, the Division of Environmental Quality, or the Arkansas Natural Resources Commission and any permits or licenses obtained from these agencies are subject to cancellation or nonrenewal.

History. Acts 1997, No. 272, § 4; 1999, No. 218, § 4; 2019, No. 910, § 3037.

Publisher's Notes. Acts 1999, No. 218, § 5, provided:

“The provisions of this Act are applicable for fiscal periods beginning January 1, 1999 or thereafter.”

Amendments. The 1999 amendment rewrote this section.

The 2019 amendment substituted “Division of Environmental Quality” for “Arkansas Department of Environmental Quality”.

Subchapter 2 — Purchase and Construction

Publisher's Notes. Section 23-1-102 provides, in part, that nothing in Acts 1935, No. 324 shall be construed as repealing this subchapter or any part thereof.

Effective Dates. Acts 1933, No. 131, § 20: approved Mar. 21, 1933. Emergency clause provided: “Whereas, there are various communities in this State which are seriously in need of improvements of the kind authorized by this act, the absence of which improvements results in such communities being deprived of pure water for drinking purposes and domestic use, as well as water for fire protection, which condition menaces the public health and safety; and

“Whereas, the passage of this act will create a means of immediately financing such works through emergency Government lending agencies which is not available under existing laws; and

“Whereas, the immediate construction of such works (which can be accomplished under this act with the aid of existing Government lending agencies) will not only relieve conditions jeopardizing the public health and safety, but will give employment to numerous citizens, thereby minimizing in some degree the prevailing conditions of unemployment attending the existing financial depression; and

“Whereas, there are now in use works (owned by others than municipalities) of the character authorized by this act which require immediate repairs, improvements and/or extension that can not be affected or accomplished because of the inability to finance same under existing laws, though the necessity for such repairs, improvements and extensions menaces the public health and safety; and this act provides a method whereby such works could be acquired by municipalities, and the necessary repairs, improvements and/or extension promptly made;

“Therefore, it is hereby declared that an emergency exists, and that this act is necessary for the immediate preservation of the public peace, health and safety, and that this act will take effect, and be in force, from and after its passage.”

Acts 1935, No. 3, § 3: approved Jan. 23, 1935. Emergency clause provided: “Whereas, there are various communities in this State, which are seriously in need of improvements of the kind authorized by this act, the absence of which improvements results in such communities being deprived of pure water for drinking purposes, and for domestic and industrial use, and fire protection, which condition menaces the public health and safety; and, whereas, the passage of this act will create a means of immediately financing such works through government emergency lending agencies, which is not available under existing laws.

“Therefore, it is hereby declared that an emergency exists, and that this act is necessary for the immediate preservation of the public peace, health and safety, and that this act shall take effect and be in force from and after its passage.”

Acts 1935, No. 96, § 3: approved Mar. 2, 1935. Emergency clause provided: “Whereas, there are various communities in this State which are seriously in need of improvements of the kind authorized by this Act, the absence of which improvements results in such communities being deprived of pure water for drinking purposes and domestic use, as well as water for fire protection, which condition menaces the public health and safety; and

“Whereas, the passage of this act will create a means of immediately financing such works through emergency government lending agencies which is not available under existing laws; and,

“Therefore, it is hereby declared that an emergency exists, and that this act is necessary for the immediate preservation of the public peace, health and safety, and that this act will take effect and be in force from and after its passage.”

Acts 1935, No. 107, § 3: approved Mar. 15, 1935. Emergency clause provided: “Whereas, there are various communities in this State which are seriously in need of improvements of the kind authorized by this act, the absence of which improvements results in such communities being deprived of pure water for drinking purposes, and for domestic and industrial use, and fire protection, which condition menaces the public health and safety; and, whereas, the passage of this act will create a means of immediately financing such works through government emergency lending agencies, which is not available under existing laws,

“Therefore, it is hereby declared that an emergency exists, and that this act is necessary for the immediate preservation of the public peace, health and safety, and that this act shall take effect and be in force from and after its passage.”

Acts 1939, No. 135, § 4: approved Feb. 24, 1939. Emergency clause provided: “Whereas, there are various communities in this State which are seriously in need of improvements of the kind authorized by the act to which this act is an amendment, the absence of which improvements result in such communities being deprived of pure water for drinking purposes, and for domestic and industrial use and fire protection, which condition menaces the public health and safety; and whereas the passage of this act will create a more feasible means than is available under existing laws to finance such works immediately through government emergency lending agencies.

“Therefore, it is hereby declared that an emergency exists, and that this act is necessary for the immediate preservation of the public peace, health and safety, and that this Act shall take effect and be in force from and after its passage.”

Acts 1943, No. 178, § 6: approved Mar. 6, 1943. Emergency clause provided: “It is ascertained and declared that because of the sudden growth of some of the cities and towns in the State, due to the present war, the waterworks systems owned by them, or those which they contemplate purchasing, do not provide a sufficient supply of pure water for the use of the inhabitants, and are greatly in need of additions and improvements thereto; that passage of this act will facilitate the construction of said additions and improvements and that a delay providing the improvements will endanger the health and lives of the inhabitants. It is, therefore, declared that an emergency exists, that this act is necessary for the preservation of the public peace, health, and safety, and that this act shall take effect and be in force from and after its passage.”

Acts 1955, No. 321, § 11: Mar. 21, 1955. Emergency clause provided: “It is found to be a fact that the proper operation, maintenance and improvement of many municipal waterworks systems are being hampered and delayed because of inadequate financing provisions under the existing law and because of inadequate rate-making authority, and the water supply of said municipalities is being seriously threatened and curtailed thereby, and an emergency is thereby created and is hereby declared, and this Act, being necessary for the immediate preservation of the public welfare, peace, health and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1957, No. 54, § 2: Feb. 18, 1957. Emergency clause provided: “It is hereby found and determined by the General Assembly that a number of cities located in counties of this State bordering other states have found it necessary, or may hereafter find it necessary, to acquire land or water supplies in such adjoining states in order to have a safe and satisfactory water supply for the inhabitants of said cities; and that the laws of this State do not now authorize cities to hold title to land so acquired or that it may be necessary to acquire in such adjoining states for municipal water purposes, and that the immediate passage of this Act is necessary to correct said situation and enable cities to acquire title or hold title heretofore acquired to such lands for municipal water purposes. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1970 (Ex. Sess.), No. 37, § 4: Mar. 13, 1970. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health, and safety, shall be in effect from and after its passage and approval.”

Acts 1975, No. 225, § 26: became law without Governor's signature, Feb. 19, 1975. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this state and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this act. Therefore, an emergency is declared to exist and this act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 1981, No. 425, § 54: Mar. 11, 1981. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 1987, No. 87, § 5: Feb. 25, 1987. Emergency clause provided: “It is found and it is hereby declared by the General Assembly of the State of Arkansas that availability of financing of extraordinary expenses or liabilities of municipalities arising from their ownership and operation of municipal waterworks systems is essential to the continued operation of adequate water facilities by municipalities in this State, without which the life, health and safety of the inhabitants of this State are endangered. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety shall be in effect upon its passage and approval.”

Research References

Ark. L. Rev.

Municipal Improvement Bonds in Arkansas, 8 Ark. L. Rev. 146.

Comment, Municipal Bonds and Amendment 62: Clearing Up a Serbonian Bog, 39 Ark. L. Rev. 499.

Case Notes

Constitutionality.

This subchapter is constitutional except as to § 14-234-218, exempting bonds from taxation. Snodgrass v. City of Pocahontas, 189 Ark. 819, 75 S.W.2d 223 (1934).

14-234-201. Definitions.

As used in this subchapter, unless the context otherwise requires:

  1. “Municipality” means any city of the first or second class or incorporated town in the State of Arkansas;
  2. “Waterworks system” means and includes a waterworks system in its entirety, or any integral part thereof, including mains, hydrants, meters, valves, standpipes, storage tanks, pumping tanks, intakes, wells, impounding reservoirs, or purification plants.

History. Acts 1933, No. 131, § 2; 1935, No. 96, § 1; Pope's Dig., § 10001; Acts 1939, No. 135, § 1; 1957, No. 54, § 1; A.S.A. 1947, § 19-4202.

Case Notes

Cited: City of Little Rock v. Chartwell Valley Ltd. Partnership, 299 Ark. 542, 772 S.W.2d 616 (1989); Lois Marie Combs Revocable Trust v. City of Russellville, 2011 Ark. 186 (2011).

14-234-202. Construction.

  1. This subchapter shall be construed as cumulative authority for the purchase or construction of a waterworks system or for the construction of betterments and improvements thereto and shall not be construed to repeal any existing laws with respect thereof.
    1. This subchapter shall, without reference to any other statute, be deemed full authority for the construction, acquisition, improvement, equipment, maintenance, operation, and repair of the works provided for in this subchapter and for the issuance and sale of the bonds by this subchapter authorized, and shall be construed as an additional and alternative method therefor and for the financing thereof.
    2. No petition or election, or other or further proceeding, in respect to the construction or acquisition of the works or to the issuance or sale of bonds under this subchapter and no publication of any resolution, ordinance, notice, or proceeding relating to the construction or acquisition or to the issuance or sale of the bonds shall be required except as prescribed by this subchapter, any provisions of other statutes of the state to the contrary notwithstanding.
    3. All functions, powers, and duties of the Department of Health shall remain unaffected by this subchapter.
  2. This subchapter being necessary for the public health, safety, and welfare, it shall be liberally construed to effectuate its purposes.

History. Acts 1933, No. 131, §§ 2, 13, 14; 1935, No. 96, § 1; Pope's Dig., §§ 10001, 10012, 10013; Acts 1939, No. 135, § 1; 1957, No. 54, § 1; A.S.A. 1947, §§ 19-4202, 19-4213, 19-4214.

14-234-203. Authority of municipalities.

  1. Municipalities are authorized to purchase or construct a waterworks system or any integral part thereof and to purchase and hold title to, lease, or rent in connection therewith any land, lake, watercourse, or water supply either inside or outside the limits of the municipality or inside or outside the limits of the county in which the municipality is located.
    1. In any municipality located in a county, the border line of which adjoins any other state, the municipality may take title to or lease or rent any land, lake, watercourse, or water supply outside this state.
    2. The ownership or lease of any land, lake, watercourse, or water supply located outside this state which has been acquired by any municipality previous to the passage of this subchapter is declared to be a valid exercise of the power of the municipality and shall remain in effect the same as if the acquisition by purchase or lease thereof had been made after the passage of this subchapter.
  2. Municipalities are authorized to construct a waterworks system or any integral part thereof either inside or outside the limits of the county in which the municipality is located.
  3. A municipality constructing a waterworks system or integral part thereof may sell the water to private consumers located inside and outside of the municipality. It may sell a part of the water to an improvement district, or it may sell the water or a part of it to a private corporation engaged in the business of selling water to private consumers in the municipality.
  4. Nothing in this section shall authorize any city or improvement district to sell its existing plant to a private corporation.

History. Acts 1933, No. 131, § 2; 1935, No. 96, § 1; Pope's Dig., § 10001; Acts 1939, No. 135, § 1; 1957, No. 54, § 1; A.S.A. 1947, § 19-4202.

Publisher's Notes. With reference to the term “the passage of this subchapter,” Acts 1933, No. 131 was signed by the Governor on March 21, 1933, and became effective on that date.

Case Notes

Furnishing of Water.

Under their delegated powers, municipal corporations are under obligation to protect the comfort and well-being of their citizens by furnishing pure water. Bourland v. City of Ft. Smith, 190 Ark. 289, 78 S.W.2d 383 (1935).

Limits of Systems.

Municipal corporations have the authority to extend water mains beyond the corporate limits to obtain an adequate water supply, or may obtain an outlet for sewage beyond the corporate limits. Mathers v. Moss, 202 Ark. 554, 151 S.W.2d 660 (1941).

Obtaining Water Supplies.

A city is authorized to purchase a water supply for distribution to its inhabitants from another city or any other source. McGehee v. Williams, 191 Ark. 643, 87 S.W.2d 46 (1935).

Ultra Vires Undertakings.

Proposed undertaking by municipality to buy a water system and go into the business of operating and selling water service to three other municipalities was ultra vires. Yancey v. City of Searcy, 213 Ark. 673, 212 S.W.2d 546 (1948)Questioned byTompos v. City of Fayetteville, 280 Ark. 435, 658 S.W.2d 404 (1983) (decision under prior law).

14-234-204. Authority of cities and towns — Use of revenues.

  1. Any city or incorporated town in the State of Arkansas may purchase or construct a waterworks system, or construct betterments and improvements to its waterworks system, or to a system owned by a waterworks district and operated by the city or town, as provided in this subchapter.
  2. Any city operating a waterworks system owned, constructed, or acquired by a waterworks district is authorized to use the revenue derived from operating the waterworks system in paying revenue bonds and the interest on the bonds issued under and pursuant to the terms of this subchapter, and, for that purpose may create a sinking fund, and other items prescribed by this subchapter, operating expenses, and maintenance and improvement of the existing system owned by the district. The balance of the revenue remaining shall be paid by the city to the district to be used in retiring obligations of the district.

History. Acts 1933, No. 131, § 1; 1935, No. 3, § 1; Pope's Dig., § 10000; A.S.A. 1947, § 19-4201.

Cross References. General authority to acquire or construct waterworks, § 14-54-702.

Local government reserve funds, § 14-73-101 et seq.

Water, sewer, and solid waste management systems financing, § 14-230-101 et seq.

Case Notes

Construction, etc., of Systems.

A city is authorized to enter into a contract with a waterworks district to construct a reservoir for impounding water to be taken from a new source and to issue bonds to be paid by withholding sufficient revenue to pay the bonds. Bourland v. City of Ft. Smith, 190 Ark. 289, 78 S.W.2d 383 (1935).

Ordinance providing for issuance of revenue bonds under authority of this section to obtain funds for extension of city's waterworks system and also of sewage system was not valid. Mathers v. Moss, 202 Ark. 554, 151 S.W.2d 660 (1941).

This section contemplates that the revenue bonds authorized to construct waterworks shall be paid from the revenues derived from that system, and nothing in this section authorizes any part of the revenue derived from the system to be devoted and appropriated to pay the cost of construction or operation of sewer system. Mathers v. Moss, 202 Ark. 554, 151 S.W.2d 660 (1941).

Profits.

A municipality may use profits above operating expense and maintenance costs of waterworks system for purposes not related to the system. Mathers v. Moss, 202 Ark. 554, 151 S.W.2d 660 (1941).

Cited: City of Little Rock v. Cash, 277 Ark. 494, 644 S.W.2d 229 (1982).

14-234-205. Ordinance for issuance of bonds — Contents.

  1. Whenever the legislative body of any municipality shall determine to purchase or construct a waterworks system under the provisions of this subchapter, it shall cause an estimate to be made of the cost thereof, and shall, by ordinance, provide for the issuance of revenue bonds under the provisions of this subchapter.
    1. The ordinance shall set forth a brief description of the contemplated improvement, the estimated cost thereof, the amount and rate of interest, the time and place of payment, and other details in connection with the issuance of the bonds.
    2. The bonds shall bear interest as the ordinance authorizing their issuance may provide, payable semiannually, and shall be payable at any times and places not exceeding forty (40) years from their date as shall be prescribed in the ordinance providing for their issuance.
    3. The ordinance shall also declare that a statutory mortgage lien shall exist upon the property so to be acquired or constructed, fix the minimum rate or rates for water to be collected prior to the payment of all of the bonds, and pledge the revenues derived from the waterworks system for the purpose of paying the bonds and interest thereon.
    4. The pledge shall definitely fix and determine the amount of revenue which shall be necessary to be set apart and applied to the payment of the principal of and interest on the bonds and the proportion of the balance of the revenues and income which are to be set aside as a proper and adequate depreciation account, and the remainder shall be set aside for the reasonable and proper operation thereof.
  2. The rates to be charged for the services from the waterworks shall be sufficient to provide for the payment of interest upon all bonds and to create a sinking fund to pay the principal as and when they become due, to provide for the operation and maintenance of the system, and to provide an adequate depreciation fund.

History. Acts 1933, No. 131, § 3; 1935, No. 96, § 2; Pope's Dig., § 10002; Acts 1970 (Ex. Sess.), No. 37, § 1; 1975, No. 225, § 12; 1981, No. 425, § 12; A.S.A. 1947, § 19-4203.

Cross References. Local Government Bond Act of 1985, § 14-164-301 et seq.

Case Notes

Authority.

When the board of public utilities determines to enlarge the water or sewer system, and they advise the town council, the town council has the sole and exclusive authority to issue bonds for the payment of the proposed improvements. Portis v. Board of Pub. Utils., 213 Ark. 201, 209 S.W.2d 864 (1948).

14-234-206. [Repealed.]

Publisher's Notes. This section, concerning the publication or posting of ordinances, was repealed by Acts 1993, No. 295, § 1. The section was derived from Acts 1933, No. 131, § 4; Pope's Dig., § 10003; A.S.A. 1947, § 19-4204.

14-234-207. Bonds — Amount — Negotiability — Execution — Sale.

  1. Bonds shall be issued in such amounts as may be necessary to provide sufficient funds to pay all costs of construction or acquisition, including engineering, legal, and other expenses, together with interest to a date six (6) months subsequent to the estimated date of completion.
  2. Bonds issued under the provisions of this subchapter are declared to be negotiable instruments.
  3. They shall be executed by the presiding officer and clerk or recorder of the municipality and be sealed with the corporate seal of the municipality. In case any of the officers whose signatures appear on the bonds or coupons shall cease to be officers before delivery of the bonds, the signature shall nevertheless be valid and sufficient for all purposes the same as if the officers had remained in office until delivery.
  4. The bonds may be sold at not less than ninety cents (90¢)on the dollar. The proceeds derived therefrom shall be used exclusively for the purposes for which the bonds are issued. Bonds may be sold at one time or in parcels as funds are needed.

History. Acts 1933, No. 131, § 5; Pope's Dig., § 10004; A.S.A. 1947, § 19-4205.

Case Notes

Cited: Ringgold v. Bailey, 193 Ark. 1, 97 S.W.2d 80 (1936).

14-234-208. Lien in favor of bondholders — Enforcement — Appointment of receiver upon default.

    1. There shall be created a statutory mortgage lien upon the waterworks system acquired or constructed from the proceeds of bonds authorized to be issued.
    2. The lien shall exist in favor of the holder of the bonds, and each of them, and to and in favor of the holder of the coupons attached to the bonds.
    3. The waterworks system shall remain subject to the statutory mortgage lien until payment in full of the principal and interest of the bonds.
  1. Subject to whatever restrictions may be contained in the indenture authorized in this subchapter, any holder of bonds issued under the provisions of this subchapter or of any coupons representing interest accrued thereon may, either at law or in equity, enforce the statutory mortgage lien and may, by proper suit, compel the performance of the duties of the officials of the issuing municipality set forth in this subchapter.
  2. If there be default in the payment of the principal of or interest upon any of the bonds, any court having jurisdiction in any proper action may appoint a receiver to administer the waterworks system on behalf of the municipality with power to charge and collect rates sufficient to provide for the payment of the bonds and interest thereon, and for the payment of the operating expenses and to apply the income and revenues in conformity with this subchapter and the ordinance providing for the issuance of the bonds.

History. Acts 1933, No. 131, § 7; Pope's Dig., § 10006; A.S.A. 1947, § 19-4207.

14-234-209. Accounts — Audit — Treasurer as custodian of fund — Fund separated from city funds.

  1. Any municipality issuing revenue bonds under the provisions of this subchapter shall install and maintain a proper system of accounts showing the amount of revenue received and the application of the revenue.
  2. The municipality shall at least once a year cause the accounts to be properly audited by a competent auditor. The report of the audit shall be open for inspection at all proper times to any taxpayer, water user, or any holder of bonds issued under the provisions of this subchapter, or anyone acting for and on behalf of such taxpayer, water user, or bondholder.
  3. The treasurer of the municipality shall be custodian of the funds derived from income received from waterworks systems acquired or constructed either in whole or in part under the provisions of this subchapter and shall give proper bond for the faithful discharge of his duties as custodian. The bond shall be fixed and approved by the legislative body of the municipality.
    1. All of the funds received as income from a waterworks system acquired or constructed in whole or in part under the provisions of this subchapter and all funds received from the sale of revenue bonds issued to acquire or construct a waterworks system shall be kept separate and apart from the other funds of the city.
    2. The treasurer shall maintain separate accounts in which shall be placed the interest and sinking fund moneys and another account in which shall be placed the depreciation funds, all to provide for refunding outstanding certificates payable out of water revenue.

History. Acts 1933, No. 131, § 11; Pope's Dig., § 10010; A.S.A. 1947, § 19-4211.

14-234-210. Allocation of specific portion of issue of bonds to particular project.

  1. Any specified portion of the proceeds of an issue of bonds authorized under this subchapter may be allocated by the municipal council to any particular project or to new construction as distinguished from the purchase of works already constructed.
    1. After allocation, the designated portion of the proceeds of the bond issue shall be kept separate and apart from the remaining proceeds and shall be held by the municipality in trust for the performance of the purposes specified, and none other.
    2. The diversion of funds to any other purpose may be enjoined on the suit of the trustee under the indenture, if any, accompanying the bonds, on the suit of any of the bondholders, or on the suit of any person whose property, under the ordinance of the council, is to be served by the proposed works.
  2. In making the allocation, the municipal council will be controlled by the engineer's estimate of cost referred to in the initial ordinance.
    1. In the event of allocation of proceeds, the bonds themselves may be similarly and correspondingly segregated and allocated to the respective purposes of the issue.
    2. Bonds segregated and allocated to one (1) purpose, from the standpoint of legality and in all other respects, shall be deemed to have been issued to finance that purpose, and that alone.
    3. Notwithstanding the allocation and segregation, and unless the initial ordinance or the indenture accompanying the bonds shall provide to the contrary, all bonds of the entire issue will be secured ratably and equally by the revenues of the entire and aggregate works financed by the bond issue.
    4. Unless the ordinance or indenture shall so specifically provide, the allocation of bond proceeds or segregation of bonds will never have the effect of allocating the revenues from any particular portion of the authorized works exclusively to any particular bond or bonds.

History. Acts 1933, No. 131, § 16; Pope's Dig., § 10015; A.S.A. 1947, § 19-4215.

14-234-211. Acceleration of maturities — Priorities between bond issues — Execution of indenture.

  1. The ordinance authorizing the issuance of the revenue bonds may contain provisions for the acceleration of the maturities of all unmatured bonds in the event of default in the payment of any principal or interest maturing under the bond issue, or upon failure to meet any sinking fund requirements, or in any other event stipulated in the ordinance. Such provisions will be binding.
  2. The priorities as between successive issues of revenue bonds may also be controlled by the provisions of the ordinance.
  3. The ordinance may also, if deemed desirable, provide for the execution, contemporaneously with the execution of bonds, by the municipality of an indenture:
    1. Defining the rights of the bondholders inter sese;
    2. Appointing a trustee for the bondholders, which trustee may be a domestic or foreign corporation;
    3. Vesting in the trustee, to such extent as is deemed advisable, all rights of action under the bonds;
    4. Providing for the priority of lien as between successive bond issues;
    5. Providing for the acceleration of bond maturities;
    6. Containing any covenants on the part of the municipality relating to the construction or acquisition of the works, the application or safeguarding of the proceeds of the bonds, or other covenants intended for the protection of the bondholders; and
    7. Containing any other provisions, whether similar or dissimilar to the foregoing, which are consistent with the terms of this subchapter and which may be deemed desirable.

History. Acts 1933, No. 131, § 17; Pope's Dig., § 10016; A.S.A. 1947, § 19-4216.

Case Notes

Additional Bonds.

Where 1956 open end indenture authorized the issuance of additional bonds on a parity with the 1956 series, provision that “before such additional bonds may be issued there must be revenues amounting to a gross of 200% and a net of 130% of the revenues needed to make the payments on the outstanding indebtedness” was proper for the protection of both the city and the purchasers of the bonds. Du Val v. City of Little Rock, 227 Ark. 612, 300 S.W.2d 19 (1957).

14-234-212. Issuance of bonds to construct improvements.

    1. If any municipality shall own or operate a waterworks system, whether or not purchased or constructed under the provisions of this subchapter, and shall desire to construct improvements, extensions, or betterments thereto, it may issue revenue bonds under the provisions of this subchapter to provide funds for those purposes. However, if the municipality deems that it has sufficient funds to construct the proposed improvements without borrowing, then it shall not be necessary to issue revenue bonds to pay for the proposed improvements.
    2. A municipality may also issue revenue bonds under the provisions of this subchapter to provide funds to pay extraordinary expenses or liabilities arising from the ownership and operation of its waterworks system including, without limitation, liabilities to customers of the waterworks system for charges collected for services of the system.
    1. The procedure for the issuance of bonds and the fixing of rates shall be the same as in this subchapter provided for the issuance of bonds for the acquisition or construction of a waterworks system in a municipality which has not theretofore owned and operated a waterworks system.
    2. In the ordinance declaring the intention to issue bonds and providing details in connection therewith, the legislative body shall either:
      1. Provide, find, and declare, in addition to the other requirements set out in this subchapter, the value of the then-existing system and, in the case of financing betterments and improvements, the value of the property proposed to be constructed and that the revenues derived from the entire system when the contemplated betterments and improvements are completed shall be divided according to such values and that so much of the revenue as is in proportion to the value of the betterments and improvements as against the value of the previously existing plant as so determined shall be set aside and used solely and only for the purpose of paying the revenue bonds issued for the betterments and improvements, together with the cost of operation, maintenance, and depreciation thereof, and the revenues shall be deemed to be income derived exclusively from the betterments and improvements; or
      2. Provide that there shall be set aside and used solely and only for the purpose of paying revenue bonds issued:
        1. For the betterments and improvements, together with the cost of depreciation, maintenance, and operation thereof; or
        2. For extraordinary expenses or liabilities all or any part of the surplus in the bond and interest redemption account referred to in § 14-234-214.
    3. For the purpose of allocating revenues, the book value of the existing system may be deemed to be the value of the existing system.

History. Acts 1933, No. 131, § 10; 1935, No. 107, § 1; Pope's Dig., § 10009; Acts 1939, No. 135, § 2; 1943, No. 178, § 2; 1955, No. 321, § 4; A.S.A. 1947, § 19-4210; Acts 1987, No. 87, § 1.

Publisher's Notes. As to validation of prior bond issues, see Acts 1943, No. 178, § 3.

Acts 1987, No. 87, § 2, provided that it is the purpose of this act to enable municipalities to issue revenue bonds to finance extraordinary expenses or liabilities arising from the ownership and operation of municipal waterworks systems, and these purposes were declared by the General Assembly to be public purposes for which revenue bonds may be issued under Ark. Const. Amend. 65.

Case Notes

In General.

Where city, which owned its water supply system, was growing rapidly and there was an urgent need for expanding and improving water supply, the city council could authorize the issuance of revenue bonds to raise money for the purpose. Du Val v. City of Little Rock, 227 Ark. 612, 300 S.W.2d 19 (1957).

Combining of Bonds.

Refunding bonds and construction bonds may be combined in one issue. Du Val v. City of Little Rock, 227 Ark. 612, 300 S.W.2d 19 (1957).

Redemption.

Where indenture permitted a redemption of bonds issued thereunder at specific periods upon payment of premium for such redemption and provided for a premium if city desired to redeem before maturity, the bonds being sold without privilege of conversion, the redemption premium allowed, coupled with the interest rate which the bonds would bear, did not exceed the rate of interest allowed by law. Du Val v. City of Little Rock, 227 Ark. 612, 300 S.W.2d 19 (1957).

Valuation of Waterworks.

Where city council had declared valuation of present waterworks system existing at the time of making new 1956 indenture, fact that all of the bonds that might be issued under the indenture in the future are not issued is of no consequence. Holders of 1936 bonds were amply protected with the valuation fixed. Purchasers of bonds under the 1956 indenture took with full knowlege of all of the provisions of that instrument. The 1936 bondholders were not entitled to more valuation than that existing at the time of the first bond issue subsequent to the 1936 issue. Additional value must be handled so as to produce revenues to retire subsequent issues. Du Val v. City of Little Rock, 227 Ark. 612, 300 S.W.2d 19 (1957).

14-234-213. Exchange of unpaid water revenue certificates for refunding bonds.

  1. Whenever all of the holders of unpaid water revenue certificates of a particular issue, which were issued to pay the cost of constructing a waterworks system and which are payable from the revenues thereof, shall offer in writing to exchange the certificates for refunding revenue bonds to be issued under the provisions of this subchapter, the legislative body shall receive the certificates, and if they are found to be properly executed, may adopt an ordinance incorporating therein the offer, setting forth the determined value of the entire waterworks system as it then exists, the value of so much of the system as was paid for by the issue of certificates, the unpaid portion of which is proposed to be refunded, and the details in connection with the issuance of the bonds in the same manner as is provided for in the issuance of revenue bonds. The municipality may fix the minimum rate or rates to be charged for water and pledge the revenues, if and when the refunding revenue bonds are issued, to pay the bonds.
  2. The revenues shall be applied as provided in this subchapter for revenue bonds and particularly §§ 14-234-212 and 14-234-214.
  3. The amount of refunding revenue bonds shall not exceed and may be less than the par amount of certificates to be surrendered and shall not exceed and may be less than the determined value of so much of the systems as was paid for by the issue of certificates, less the amount of certificates paid.
    1. The ordinance shall be published together with notice of hearing thereon in the same manner as is provided in this subchapter in case of the issuance of revenue bonds, and hearing shall be had thereon as is provided in this subchapter in case of the issuance of revenue bonds.
    2. After the hearing, the refunding revenue bonds may be issued, or a less amount thereof may be issued with the consent of the certificate holders, or the ordinance may be repealed, all as the legislative body shall determine.
  4. If the refunding revenue bonds are issued, the certificates shall be surrendered and cancelled simultaneously therewith.
  5. Refunding revenue bonds issued under the provisions of this subchapter shall be payable only out of the revenues derived from the system as provided in the ordinance and according to the terms of this subchapter.
  6. Holders of refunding revenue bonds issued under the provisions of this subchapter shall have similar rights as holders of revenue bonds issued under this subchapter, including the power to apply for a receiver to operate the system, and the municipality shall be under the same obligations to the bondholders as is provided to holders of revenue bonds issued under the provisions of this subchapter.

History. Acts 1933, No. 131, § 12; Pope's Dig., § 10011; A.S.A. 1947, § 19-4212.

14-234-214. Rates — Disposition of surplus funds.

  1. Rates for resident and nonresident consumers of a municipal waterworks system shall be fixed by the legislative body of the municipality.
  2. The rates to be charged by the municipality must be adequate to:
    1. Pay the principal of and interest on all revenue bonds and revenue promissory notes as they severally mature;
    2. Make such payments into a revenue bond sinking fund as may be required by ordinance or trust indenture;
    3. Provide an adequate depreciation fund and to provide the operating authority's estimated cost of operating and maintaining the waterworks system.
  3. Rates fixed prior to the issuance of revenue bonds or notes may be reduced if authorized by the trust indenture or ordinance pertaining to the issuance. The rates shall not be reduced below the standards prescribed in this subchapter.
  4. If a municipality subject to the provisions of this subchapter proposes to make additions to its system, which additions are to be financed by the issuance of revenue bonds or revenue promissory notes, within eighteen (18) months of the effective date of the rate, then the legislative body of the municipality shall fix a rate to be effective immediately, which will be sufficient, in addition to the above requirements, to amortize the revenue bonds or revenue promissory notes with interest as they severally mature.
    1. If any surplus is accumulated in the operation and maintenance fund of the waterworks system which shall be in excess of the operating authority's estimated cost of maintaining and operating the plant during the remainder of the fiscal year then-current and the cost of maintaining and operating the plant during the fiscal year next ensuing, the excess may be by the operating authority transferred to either the depreciation account or to the bond and interest redemption account, as the operating authority may designate.
    2. If any surplus is accumulated in the depreciation account over and above that which the operating authority shall find may be necessary for probable replacements needed during the then fiscal year, and the next ensuing fiscal year, the excess may be transferred to the bond and interest redemption account.
    3. If a surplus shall exist in the bond and interest redemption account, it may be applied by the operating authority, in its discretion, subject to any limitations in the ordinance authorizing the issuance of the bonds, or in the trust indenture:
      1. To the payment of bonds that may later be issued for additional betterments and improvements;
      2. To the purchase or retirement, insofar as possible, of outstanding unmatured bonds payable from the bond and interest redemption account, at no more than the fair market value thereof;
      3. To the payment of any outstanding unmatured bonds payable from the bond and interest redemption account that may be subject to call for redemption before maturity; or
      4. To any other municipal purpose.

History. Acts 1933, No. 131, § 8; Pope's Dig., § 10007; Acts 1943, No. 178, § 1; 1955, No. 321, § 3; A.S.A. 1947, § 19-4208.

Case Notes

Bond Obligations.

Cities entering into contract with the water district were impliedly authorized to enter into an arrangement which did not provide for the reduction of rates during the life of the bonds, thus maintaining their rates at a sufficient level to meet their contract obligation. Hink v. Board of Dirs., 235 Ark. 107, 357 S.W.2d 271 (1962).

Debt Service Coverage.

The trial court did not err as a matter of law in holding that debt service coverage was a valid expense in the cost of performance of a contract, since this section provides that rates for resident and nonresident customers of a municipal waterworks system must be adequate to pay the principal and interest on all revenue bonds. City of Lamar v. City of Clarksville, 314 Ark. 413, 863 S.W.2d 805 (1993).

Privilege Tax Levied on Waterworks.

Privilege tax levied by city on waterworks commission was an unauthorized tax, and therefore an illegal exaction, where: (1) the assessment was not a charge for services rendered to the waterworks, since those services are paid for in lieu of taxes pursuant to § 14-234-114 and are discretionary with the operating authority, while, conversely, the tax was mandatory and in a set amount, and the ordinances provided that “the taxes hereby levied shall be paid in addition to any sums paid by the Little Rock Municipal Waterworks under the provisions of Act 50 of 1965”; (2) under this section, all other payments by a waterworks to a municipality which come from water rates must come from surplus accumulated in the operation fund only after taking into account the cost of operations and maintenance, allowing for replacement costs and depreciation, providing for interest redemption and the purchasing of all outstanding bonds, whereas the tax in question, originally at 25 cents per meter, was levied on the waterworks and passed on to the customer and then paid by the customer and passed directly back to the city without regard to the cost of operations, maintenance, depreciation, and debt so that it was not a part of the water rate; and (3) the assessment was designated a privilege tax by the ordinances. City of Little Rock v. Cash, 277 Ark. 494, 644 S.W.2d 229 (1982), cert. denied, Cash v. Little Rock, 462 U.S. 1111, 103 S. Ct. 2464, 77 L. Ed. 2d 1341 (1983), overruled in part, T&T Chem. v. Priest, 351 Ark. 537, 95 S.W.3d 750 (2003).

Transfer of Funds.

Genuine issue of material fact existed regarding 1996 transfer of funds from from the city's water and sewer operating fund, and from its sanitation fund, to the city's general fund, as dispute existed about whether funds making the transfer had a surplus enabling them to make such a transfer, and thus, summary judgment grant to the city on the residents' two unlawful transfer claims regarding 1996 tansfers had to be reversed. Maddox v. City of Fort Smith, 346 Ark. 209, 56 S.W.3d 375 (2001).

Circuit court properly ruled that § 14-234-214(e) (1998) was inapplicable to the citizens' complaint challenging the lawfulness of transfers of funds from the water-and-sewer operating fund and the sanitation fund to the general fund where the term “surplus funds” referred to the disposition of rate-derived surplus funds, and the revenue transferred in this case was not rate-derived surplus, but was the city's portion of county sales tax revenue that was authorized by a county ordinance to be used for any municipal purpose. Maddox v. City of Fort Smith, 369 Ark. 143, 251 S.W.3d 281 (2007).

14-234-215. Eminent domain.

  1. For the purpose of acquiring any lands or property for the operation of the municipal waterworks system authorized by law, a municipality shall have the right of eminent domain as provided in §§ 18-15-301 — 18-15-303.
  2. The municipality shall have the right by its agents or employees to peacefully enter upon any lands, structures, or rights-of-way to make surveys, tests, and measurements thereon, but is liable for any damage that may result by reason of its acts.
    1. When a municipality by inadvertence has taken private property without the eminent domain procedure authorized by law or without the consent of the property owner, the municipality may file an application in the circuit court of the county in which the property is situated setting out the facts and praying that a jury be assembled to assess the amount the municipality should pay for the property so taken.
    2. Service of process or publication of notice shall be as provided in §§ 18-15-301 — 18-15-303.

History. Acts 1933, No. 131, § 9; Pope's Dig., § 10008; Acts 1955, No. 321, § 1; A.S.A. 1947, § 19-4209.

Cross References. Eminent domain by municipal corporations for waterworks systems, § 18-15-401 et seq.

Case Notes

Constitutionality.

This section is not violative of Ark. Const., Art. 5, § 23. Jernigan v. Harris, 187 Ark. 705, 62 S.W.2d 5 (1933).

Cited: Benton County Water Co. v. Cummings, 242 Ark. 67, 411 S.W.2d 890 (1967); Lois Marie Combs Revocable Trust v. City of Russellville, 2011 Ark. 186 (2011).

14-234-216. Obligations incurred solely through sale of revenue bonds — Security in condemnation proceedings.

No obligation may be incurred by the municipality in the construction or acquisition of the works contemplated by this subchapter or in the condemnation of property in connection therewith, except as shall be payable solely from the funds to be acquired from the sale of revenue bonds of the character authorized by this subchapter. In view of this provision, the court, in condemnation proceedings instituted under this subchapter by the municipality, may make such requirements of security as will serve to protect the landowner.

History. Acts 1933, No. 131, § 19; Pope's Dig., § 10017; A.S.A. 1947, § 19-4218.

14-234-217. Bonds — Nature of indebtedness.

  1. Bonds issued under the provisions of this subchapter shall be payable solely from the revenues derived from the waterworks system.
  2. The bonds shall not in any event constitute an indebtedness of the municipality within the meaning of the constitutional provisions or limitations.
  3. It shall be plainly stated on the face of each bond that it has been issued under the provisions of this subchapter and that it does not constitute an indebtedness of the municipality within any constitutional or statutory limitation.

History. Acts 1933, No. 131, § 6; Pope's Dig., § 10005; A.S.A. 1947, § 19-4206.

14-234-218. Bonds — Tax exemption.

The revenue bonds shall be exempt from all taxation, state, county, and municipal. This exemption includes income taxation and inheritance taxation.

History. Acts 1933, No. 131, § 18; A.S.A. 1947, § 19-4217.

Case Notes

Constitutionality.

As to constitutionality, Jernigan v. Harris, 187 Ark. 705, 62 S.W.2d 5 (1933); Snodgrass v. City of Pocahontas, 189 Ark. 819, 75 S.W.2d 223 (1934).

Subchapter 3 — Waterworks Commissions

Cross References. Exemptions from civil service commission systems, §§ 14-49-301, 14-50-302.

Effective Dates. Acts 1941, No. 288, § 4: Mar. 26, 1941. Emergency clause provided: “It is hereby ascertained and declared that there is much suffering in the State which can be relieved through Community Chest and other charitable organizations. These organizations are badly in need of funds, and, this act being necessary for the preservation of the public peace, health and safety, an emergency is declared to exist, and this act shall become effective from and after its passage and approval.”

Acts 1943, No. 45, § 2: Feb. 10, 1943. Emergency clause provided: “This act being necessary for the welfare, peace and health, an emergency is hereby declared to exist and this act shall take effect and be in force from and after its passage and approval.”

Acts 1945, No. 132, § 4: effective on passage.

Acts 1953, No. 413, § 2: Mar. 28, 1953. Emergency clause provided: “Whereas, the restriction imposed on members of municipal waterworks commissions constitutes a bar against citizens who are in a position to render a valuable service to the state and nation; and

“Whereas, no useful purpose is served by prohibiting such persons from serving on honorary boards and commissions,

“Now therefore, an emergency is hereby deemed to exist, and this act being necessary for the public peace, health and safety shall take effect and be in full force and effect from and after its passage and approval.”

Acts 1981, No. 840, § 3: Mar. 28, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that present law restricts waterworks commissions of first class cities to three (3) members; that first class cities having a population less than 100,000 persons should have the ability to increase their waterworks commissions to no more than five (5) members; and that this Act is immediately necessary to grant such authority. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1993, No. 1040, § 7: Apr. 12, 1993. Emergency clause provided: “It is hereby found and determined by the Seventy-Ninth General Assembly that confusion exists concerning the extent to which operation and maintenance funds of a water works commission may be utilized for chamber of commerce industrial development activities and community deterioration prevention activities because there is no express statutory language on the subject; that there now exists immediate opportunities for industrial development presented by the presidency of former Governor Clinton; that this act helps clarify the confusion and opens the door for opportunity. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

14-234-301. Construction and applicability.

  1. Nothing in this subchapter shall be construed as repealing any special act providing for a board of commissioners to administer and operate municipal waterworks, nor shall this subchapter apply to cities which have a commission form of government.
  2. This subchapter shall not alter, amend, or affect any indenture or obligation issued by any city prior to the passage of this subchapter.

History. Acts 1937, No. 215, § 9; Pope's Dig., § 10026; A.S.A. 1947, § 19-4228.

Publisher's Notes. Regarding “the passage of this subchapter,” Acts 1937, No. 215 was signed by the Governor on March 8, 1937, and took effect on June 10, 1937.

Case Notes

Cited: City of Little Rock v. Chartwell Valley Ltd. Partnership, 299 Ark. 542, 772 S.W.2d 616 (1989).

14-234-302. Creation of commission.

Any city of the first or second class owning and operating a waterworks and distributing system, by appropriate action of its city council, may create a commission for the purpose of operating and managing the waterworks and distributing system.

History. Acts 1937, No. 215, § 1; Pope's Dig., § 10018; Acts 1943, No. 45, § 1; A.S.A. 1947, § 19-4219.

Case Notes

Cited: City of Little Rock v. Cash, 277 Ark. 494, 644 S.W.2d 229 (1982).

14-234-303. Ordinance — Qualifications of commissioners.

  1. Any city of the first class or city of the second class may enact an ordinance by a majority vote of the elected and qualified members of its city council creating a waterworks commission to be composed of no less than three (3) nor more than seven (7) citizens who are qualified electors of the municipality or who are qualified electors of the area served by the municipality.
  2. Any waterworks commission of a city of the first class or city of the second class having less than seven (7) members may have its membership increased at any time to no more than seven (7) members by ordinance of the city council passed by the majority vote of the elected and qualified members of the city council.

History. Acts 1937, No. 215, § 2; Pope's Dig., § 10019; Acts 1953, No. 413, § 1; 1957, No. 166, § 1; 1975, No. 359, § 1; 1981, No. 840, § 1; A.S.A. 1947, §§ 19-4220, 19-4220.1; Acts 1995, No. 789, § 1; 1999, No. 95, § 1; 2011, No. 525, § 1; 2013, No. 752, § 1.

Publisher's Notes. Acts 1975, No. 359, § 1, provided, in part, that in the case of any such city which has heretofore created a three-member waterworks commission as authorized in this subchapter, the members of the commission in office on July 9, 1975, should continue to serve the terms for which they were appointed, and their successors should be appointed in the manner and for the terms prescribed in this subchapter. The two members first selected to fill the two additional positions on the commission provided for in the act should be appointed by the mayor and confirmed by a two-thirds vote of the city council for terms of such duration as to assure that thereafter the terms of the five commissioners will expire in five successive years, with no two terms expiring during any one calendar year. All successor appointments to the commission in any such city should be made in the manner and for the terms prescribed in this subchapter.

Amendments. The 1995 amendment deleted (a)(3); redesignated former (a)(2) and (a)(4) as (a)(1)(B) and (a)(2), respectively; substituted “no fewer than” for “no less than” in (a)(1)(A); in (a)(1)(B), deleted “having a population less than one hundred thousand (100,000) persons and” following “first class”, and inserted “duly”; and substituted “cities of the first class” for “first-class cities” in present (a)(2).

The 1999 amendment, in (a)(1)(A), inserted “shall enact an ordinance”, deleted “shall enact an ordinance” preceding “creating” and added “or who are qualified electors of the area served by the municipality” at the end.

The 2011 amendment deleted “duly” following “vote of the” in (a)(1)(A) and (B); substituted “less” for “fewer” for in (a)(1)(A) and (a)(1)(B); and added “or who are qualified electors of the area served by the municipality” at the end of (b).

The 2013 amendment in (a), deleted “desiring to avail itself of the benefits of this subchapter shall” following “Any city of the first class,” added “or city of the second class” and substituted “seven (7) citizens” for “five (5) citizens”; in (b), added “or city of the second class” and substituted “seven (7) members” for “five (5) members” twice; deleted former (a)(2) and (b) and redesignated accordingly.

14-234-304. Appointment of commissioners — Term — Salaries — Oath.

    1. The commissioners shall be appointed by the mayor and confirmed by a two-thirds vote of the elected and qualified members of the city council and shall hold office for a term of eight (8) years.
      1. However, commissioners first appointed and confirmed shall serve for terms of four (4), six (6), and eight (8) years for a three-member commission, for terms of two (2), four (4), six (6), seven (7), and eight (8) years for a five-member commission, and for terms of two (2), three (3), four (4), five (5), six (6), seven (7), and eight (8) years for a seven-member commission, each to be designated by the mayor and city council.
      2. Thereafter, and upon the expiration of the commissioners' respective terms, their successors shall be appointed by the remaining commissioners subject to the approval of two-thirds (2/3) of the elected and qualified members of the city council for a term of eight (8) years.
    1. If the membership of any waterworks commission of a city of the first class or city of the second class is increased under this subchapter, the members selected to fill the additional positions following the increase in membership of the waterworks commission shall be appointed as vacancies are filled under subsection (d) of this section for terms of such duration to assure that thereafter the terms of the remaining commissioners will expire in successive years with no two (2) terms expiring during any one (1) calendar year.
    2. All successor appointments to the waterworks commission shall be made in the manner and for the terms prescribed in this subchapter.
  1. The city council may fix and prescribe the salaries to be paid to the commissioners.
  2. In the event of a vacancy on the commission, the vacancy shall be filled by the remaining commissioners appointing a member, subject to the approval of two-thirds (2/3) of the elected and qualified members of the city council.
  3. The commissioners shall file the oath of public officials required by law in the State of Arkansas.

History. Acts 1937, No. 215, § 3; Pope's Dig., § 10020; A.S.A. 1947, § 19-4221; Acts 1995, No. 789, § 2; 2013, No. 752, § 2.

Amendments. The 1995 amendment rewrote (a)(2); inserted present (b), redesignating the remaining subsections accordingly; and made stylistic changes.

The 2013 amendment added “and for terms of two (2), three (3), four (4), five (5), six (6), seven (7), and eight (8) years for a seven-member commission” in (a)(2)(A); and added “or city of the second class” in (b)(1).

14-234-305. Removal of commissioners.

Any commissioner appointed by the provisions of this subchapter may be removed for cause upon a two-thirds (2/3) vote of the duly elected and qualified members of the city council.

History. Acts 1937, No. 215, § 4; Pope's Dig., § 10021; A.S.A. 1947, § 19-4222.

Case Notes

Abolishment of Commission.

Whatever a municipal government may do by a majority vote, it may undo by majority vote, absent constitutional or statutory restrictions; accordingly, city council has authority to abolish city water and sewer commission by majority vote. City of Ward v. Ward Water & Sewer Sys., 280 Ark. 177, 655 S.W.2d 454 (1983).

If the city council, by a majority vote, attempted to abolish the commission simply as a pretext for the removal of one set of commissioners to be replaced by another, such a move would clearly be proscribed by this section. City of Ward v. Ward Water & Sewer Sys., 280 Ark. 177, 655 S.W.2d 454 (1983).

Cause for Removal.

Cause for removal means any act of commission or omission that, considered in its relation to the duty involved, would stamp the person in question as unfit to occupy the position — one whose conduct has become inimical to the public welfare. Williams v. Dent, 207 Ark. 440, 181 S.W.2d 29 (1944).

Whether member of waterworks commission had moved from the city so as to be subject to dismissal was a matter for city council's determination. Williams v. Dent, 207 Ark. 440, 181 S.W.2d 29 (1944).

Judicial Review.

On certiorari to review resolution of removal, the trial court has authority to determine only one question: Did the council have power, at the time it acted, and in the light of all testimony before it, to adopt the resolution of dismissal? Williams v. Dent, 207 Ark. 440, 181 S.W.2d 29 (1944).

Notice and Hearing.

Member of waterworks commission subject to removal for cause has right to statement of the cause, notice, and opportunity to defend, and these are in the nature of conditions precedent to the city council's exercise of power, and impairment thereof is not mitigated by the fact that in circuit court on certiorari proceeding evidence sufficient to sustain removal is heard. Williams v. Dent, 207 Ark. 440, 181 S.W.2d 29 (1944).

Where it appeared that waterworks commissioner charged with irregularities had a right to assume that matter had been dropped or that he would be notified before further action would be taken, city council had no power to adopt resolution of dismissal. Williams v. Dent, 207 Ark. 440, 181 S.W.2d 29 (1944).

Sufficiency of Evidence.

In proceeding for removal, the city council, in the first instance, determines the sufficiency of the evidence, while the circuit court examines the record to determine if such evidence was sufficient as a matter of law. Williams v. Dent, 207 Ark. 440, 181 S.W.2d 29 (1944).

14-234-306. Authority of commissioners to operate and manage waterworks system.

  1. The commissioners appointed under this subchapter shall have full and complete authority to manage, operate, improve, extend, and maintain the municipal waterworks and distribution system, and shall have full and complete charge of the plant, including the right to employ or remove any and all assistants and employees of whatsoever nature, kind, or character and to fix, regulate, and pay their salaries.
  2. It is the intention of this subchapter to vest in the commissioners unlimited authority to operate, manage, maintain, improve, and extend the municipally owned waterworks and distribution system and to have full and complete charge thereof.
  3. The commissioners shall not have authority or power to sell, mortgage, or encumber the waterworks and distribution system, unless it is done in accordance with the provisions of subchapter 2 of this chapter or when authorized by the mandate of an election called for that purpose.

History. Acts 1937, No. 215, § 5; Pope's Dig., § 10022; A.S.A. 1947, § 19-4223.

Case Notes

Abolishment of Commission.

City council has authority to abolish city water and sewer commission by majority vote. City of Ward v. Ward Water & Sewer Sys., 280 Ark. 177, 655 S.W.2d 454 (1983).

Eminent Domain.

This section does not confer on city water commissioners the power of eminent domain. City of Little Rock v. Sawyer, 228 Ark. 516, 309 S.W.2d 30 (1958).

Nonprofit Corporations.

Although a nonprofit corporation is not, strictly in name, a utility commission, it can perform the same duties as a commission in managing and operating a municipal waterworks. Conway Corp. v. Construction Engineers, Inc., 300 Ark. 225, 782 S.W.2d 36 (1989), cert. denied, 494 U.S. 1080, 110 S. Ct. 1809, 108 L. Ed. 2d 939 (1990).

Cited: Allen v. State, 327 Ark. 350, 939 S.W.2d 270 (1997).

14-234-307. Further powers of commissioners — Donations to charitable organizations — Use of waterworks commission funds.

    1. The commissioners shall, in addition to the powers enumerated in § 14-234-306, have such other and further powers as are now by law given to the city council of any city.
    2. The commissioners shall be governed by all existing statutes pertaining to the duties of city councils.
    1. The commissioners shall be authorized to make donations of money from the revenue of municipal waterworks systems to local community chests or other citywide nonsectarian, incorporated, charitable organizations.
    2. Any commissioner or commissioners making donations to local community chests or other organizations under the provisions of this section and § 14-42-108 shall not be liable for the penalty provided in § 14-42-108; nor shall they be personally liable by civil action because of any donation made to a local community chest or other organization under the provisions of this section. It is the purpose of this section to authorize such donations and to relieve the commissioners from any criminal or civil liability as a result of their official act in making the donation.
    1. The General Assembly finds that payments to a chamber of commerce for industrial development activities or prevention of community deterioration are authorized payments within the board of commissioners' authority to manage and operate a waterworks and distribution system pursuant to this subchapter.
    2. A board of waterworks commissioners created pursuant to this subchapter may expend operation and maintenance funds of the waterworks for industrial development or community deterioration prevention activities conducted by a chamber of commerce or similar not-for-profit organization, if such activities in the judgment of the board of commissioners are likely to increase revenues of the waterworks or decrease expenditures resulting from system deterioration.
    3. It is not intended that this subsection should in anywise alter any authority that a board of waterworks commissioners has as of April 12, 1993.

History. Acts 1937, No. 215, § 6; Pope's Dig., § 10023; Acts 1941, No. 288, §§ 2, 3; A.S.A. 1947, §§ 19-4224, 19-4225; Acts 1993, No. 1040, §§ 1-3.

Amendments. The 1993 amendment added (c).

Case Notes

Contribution Not Allowed.

This section was held ineffective to authorize the city or the commissioner to make a binding subscription to a local community chest (now United Way) payable out of the waterworks revenues where this fund was pledged prior to the enactment of the amendatory act for payment of revenue bonds under trust indenture, since payment of the subscription would be a diversion of the security and an impairment of the obligation, legislature was without power to authorize the impairment of the contract, and the fact that revenue was amply sufficient to pay all obligations was immaterial. City of Little Rock v. Community Chest, 204 Ark. 562, 163 S.W.2d 522 (1942).

14-234-308. Vesting of control in commissioners.

  1. Upon the appointment of the commissioners as provided in this subchapter, the mayor and city council shall execute such instruments and enact measures as may be necessary to vest complete charge of the municipally owned waterworks and distributing system in the commissioners appointed under this subchapter.
  2. Upon their failure to do so, mandamus may be maintained against them, or any one of them, in any court of competent jurisdiction by any taxpayer of the city wherein is located the waterworks and distributing system in question.

History. Acts 1937, No. 215, § 8; Pope's Dig., § 10025; A.S.A. 1947, § 19-4227.

Case Notes

Abolishment of Commission.

City council has authority to abolish city water and sewer commission by majority vote. City of Ward v. Ward Water & Sewer Sys., 280 Ark. 177, 655 S.W.2d 454 (1983).

14-234-309. Rules and regulations — Reports and audits.

  1. The commissioners shall adopt such rules and regulations as they may deem necessary and expedient for the proper operation and management of the municipal waterworks and distributing system and shall have authority to alter, change, or amend the rules and regulations at their discretion.
  2. They shall submit monthly reports and annual audits of operations to the mayor and city council and furnish other and further reports, data, and information as may be requested by the mayor or city council.

History. Acts 1937, No. 215, § 7; Pope's Dig., § 10024; A.S.A. 1947, § 19-4226.

14-234-310. Social security and retirement for employees of waterworks system in cities of the first class.

  1. In any city of the first class owning and operating waterworks and distribution systems by or through a board of waterworks commissioners created in compliance with this subchapter, the board of waterworks commissioners of the city may provide a plan for social security, old age pensions, and retirement pay for part or all of the employees of the waterworks system under such plan as the board of waterworks commissioners may provide.
  2. The plan may include payments from both the board of commissioners and the employees, or either of them and may be underwritten by a solvent insurance company or by a fund set up and maintained by the board of commissioners from the funds of the waterworks system, the employees, or both, or either of them.
  3. The board may also authorize its employees to participate in the Federal Old Age and Survivor's Insurance Program with the city's cost of contribution to constitute an operating expense of the waterworks system.

History. Acts 1945, No. 132, §§ 1, 2; 1955, No. 321, § 6; A.S.A. 1947, §§ 19-4229, 19-4230.

Subchapter 4 — Recreational Activities

Effective Dates. Acts 1959, No. 204, § 13: approved Mar. 25, 1959. Emergency clause provided: “It is found to be a fact that the water supplies of many municipalities are being endangered by improper protection of the lakes, reservoirs and streams from which their water supply is taken; that recreational activity upon the lands and waters held for waterworks purposes will be of great benefit to the public health and welfare if adequate controls are provided; and an emergency is hereby created and is declared and this Act, being necessary for the immediate preservation of the public peace, health, safety and welfare, shall be in force from and after its passage.”

14-234-401. Definition.

As used in this subchapter, unless the context otherwise requires, “operating authority” means either the legislative body or the board of commissioners, whichever is charged in a given instance with the responsibility of operating the municipal waterworks system.

History. Acts 1959, No. 204, § 2; A.S.A. 1947, § 19-4231.

14-234-402. Penalty.

The violation of this subchapter or of any rule or regulation adopted by the operating authority shall constitute a misdemeanor, and upon conviction the offender shall be fined not less than fifty dollars ($50.00) nor more than two hundred dollars ($200) for each offense.

History. Acts 1959, No. 204, § 8; A.S.A. 1947, § 19-4238.

Cross References. Authority to punish for pollution or injury to system, § 14-54-702.

14-234-403. Injunctions.

  1. Anything to the contrary in this subchapter notwithstanding, the State Board of Health may obtain an injunction restraining the operating authority from permitting a recreational activity if the rules and regulations adopted by the operating authority, or if the provisions of any lease granted by the operating authority do not adequately protect the water supply from pollution, or if the rules and regulations or the terms of any lease are not properly enforced by the operating authority.
  2. Any operating authority may obtain prohibitive and mandatory injunctions against any person, firm, or corporation polluting its water supply or refusing to obey lawful regulations or rules adopted by the operating authority or the State Board of Health for the protection of any municipal water supply.

History. Acts 1959, No. 204, § 11; A.S.A. 1947, § 19-4238.2; Acts 2019, No. 315, § 1015.

Amendments. The 2019 amendment inserted “or rules” following “regulations” in (b).

14-234-404. Summons and prosecution for offense.

  1. Wardens may issue a special summons returnable to the municipal court of the municipality owning the waterworks system. The summons shall specify the date of the offense and the law or the number of the rule or regulation violated.
  2. The original of the summons shall be retained by the warden. A copy shall be delivered to the offender and two (2) copies delivered to the clerk of the municipal court within ten (10) days after issuance of the summons.
  3. The clerk of the court shall insert the date of hearing on one (1) copy of the summons and the copy shall be served on the offender by regular mail or may be served in person by the warden or by any other person authorized by law to serve processes.
  4. It shall be the duty of the prosecuting attorney of the county where the municipality is located to prosecute offenders.

History. Acts 1959, No. 204, § 7; A.S.A. 1947, § 19-4237.

14-234-405. Recreational activities on lands and waters authorized — Exceptions.

  1. The operating authority of any municipally owned waterworks system which maintains adequate controls against pollution shall have the authority to permit recreational activities upon the lands and waters owned by the municipality for waterworks purposes, to construct recreational facilities, to collect fees and rentals for permitting recreational activities, and to prescribe rules and regulations prohibiting, permitting, and governing recreational activities.
    1. The rules and regulations shall have the force and effect of any other laws of this state and shall be effective wherever the lands and waters are located.
    2. A copy of all rules and regulations, or amendments thereto, adopted by the operating authority shall be furnished to the State Board of Health within thirty (30) days after adoption.
    3. If the operating authority elects to permit hunting or fishing upon its premises, the laws of this state and the rules and regulations of the Arkansas State Game and Fish Commission governing hunting and fishing shall remain in full force and effect and may not be abrogated by the rules and regulations of the operating authority.
  2. Regardless of any rule or regulation adopted by the operating authority, it shall be unlawful for any person to wade, bathe, or swim in any lake or reservoir with a surface area of less than seven hundred (700) acres used by a municipality for its water supply, or to wade, bathe, or swim in that part of any nonnavigable stream located upon land belonging to the municipality which lies above the water intake or impounding dam owned by the municipality. However, the prohibition set forth in this subsection shall not apply to reservoirs whose water is diverted into a natural stream and flows by gravity down the stream three (3) or more miles before reaching the water intake of the municipality unless all of the land of the stream belongs to the municipality.
  3. It shall be unlawful for any unauthorized person to camp upon land not owned by him which is located above any impounding dam for the municipal water supply and within the drainage area of the reservoir, lake, or nonnavigable stream from which the water supply is taken. However, where any land adjoining the drainage area, reservoir, lake, or nonnavigable stream from which the water supply is taken is within the confines of any national forest reserve or national park, persons may camp upon the lands enclosed in the national forest reserve or national park upon such terms and conditions as are or may be permitted by the rules and regulations governing the national forest reserves or national parks.

History. Acts 1959, No. 204, §§ 3-5; A.S.A. 1947, §§ 19-4232 — 19-4234.

Case Notes

Cited: Magruder v. Ark. Game & Fish Comm'n, 293 Ark. 39, 732 S.W.2d 849 (1987).

14-234-406. Lease of property for recreational purposes.

  1. The operating authority may lease portions of its property for recreational purposes upon such terms as it deems advisable and may permit the lessee to construct upon the leased premises such recreational and merchandising facilities as the operating authority thinks proper.
  2. Public notice of intention to lease the premises shall be published at least one (1) time and at least two (2) weeks before the bid date, in a newspaper of general circulation in the county where the municipality is situated.
  3. The operating authority may reject all bids or may accept the bid which it believes most advantageous, bearing in mind the experience and financial resources of the bidder.

History. Acts 1959, No. 204, § 6; A.S.A. 1947, § 19-4235.

14-234-407. Designation of warden.

  1. Any employee of the operating authority may be designated as a warden.
  2. Wardens shall have the authority to arrest or apprehend any person whom they believe to have violated this subchapter, or the boating laws of this state, or the rules and regulations of the operating authority which are authorized in this subchapter, or the rules and regulations of the State Board of Health pertaining to protection of municipal water supplies, and may take the offender when apprehended before any court having jurisdiction of the offense. Wardens shall have no authority to make arrests for violation of the game and fish laws, rules, and regulations of this state.

History. Acts 1959, No. 204, § 7; A.S.A. 1947, § 19-4237.

14-234-408. Nonliability for torts of employees.

No municipality or operating authority permitting any activities authorized by this subchapter shall be liable for the torts of its servants, agents, or employees committed while acting within the scope of their employment in carrying out the duties assigned to them in connection with the aforesaid recreational activities.

History. Acts 1959, No. 204, § 10; A.S.A. 1947, § 19-4238.1.

14-234-409. Disposition of fees, rentals, and income.

All fees, rentals, or other income of any type derived by the operating authority as a result of the acts authorized in this subchapter may be treated as recreational income rather than as water revenues and may be used to defray the cost of providing or maintaining recreational facilities and providing for protection of the water supply against pollution because of recreational activities.

History. Acts 1959, No. 204, § 9; A.S.A. 1947, § 19-4236.

Subchapter 5 — Joint Systems

Effective Dates. Acts 1955, No. 414, § 20: Mar. 29, 1955. Emergency clause provided: “The General Assembly finds and therefore declares that in the State of Arkansas there are numerous municipalities without waterworks systems to serve their respective inhabitants; that the said municipalities are unable individually to finance the cost of constructing waterworks systems adequate to serve the needs of their respective inhabitants; that on account of the lack of such adequate waterworks systems the health of the inhabitants is jeopardized and the loss of property is threatened from lack of fire protection; and that only by this Act can provision be made for the municipalities to provide for themselves adequate waterworks systems. Therefore, it is found that this Act is necessary for the preservation of the peace, health and safety of the inhabitants of the said municipalities, and an emergency is hereby declared to exist, and the provisions of this Act shall take effect and be in full force and effect from and after its passage and approval.”

Acts 1981, No. 425, § 54: Mar. 11, 1981. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 1989, No. 607, § 6: Mar. 15, 1989. Emergency declared.

14-234-501. Definitions.

As used in this subchapter:

  1. “Mayor” means the mayor of municipalities having the mayor-council form of government and the presiding officer of municipalities having a commission or other form of government;
  2. “Municipality” means a city of the first class, a city of the second class, or an incorporated town in the State of Arkansas;
  3. “Net revenues” means the revenues of the waterworks system remaining after the payment of the reasonable costs of operation, repair, maintenance, and depreciation; and
  4. “Waterworks system” means and includes the waterworks system in its entirety or any integral part thereof, including mains, hydrants, meters, valves, standpipes, storage tanks, pumping plants, intakes, wells, impounding reservoirs, or purification plants.

History. Acts 1955, No. 414, § 1; A.S.A. 1947, § 19-4239; Acts 2017, No. 878, § 16.

Amendments. The 2017 amendment deleted “unless the context requires otherwise” from the introductory language, redesignated the definitions in alphabetical order; in (1), substituted “mayor-council” for “mayor-aldermanic”; and made stylistic changes.

14-234-502. Construction.

  1. This subchapter shall be construed as cumulative authority for the purchase or construction of a waterworks system and shall not be construed to limit or repeal any existing law with reference thereto.
    1. This subchapter shall, without reference to any other statute, be deemed full authority for the acquisition, construction, improvement, equipment, maintenance, operation, and repair of the waterworks systems provided for in this subchapter and for the issuance and sale of the bonds authorized under the provisions of this subchapter.
    2. This subchapter shall be construed as an additional and alternative method therefor and for the financing thereof.
    3. No petition or election or other or further proceedings in respect to the acquisition or construction of the waterworks systems, or to the issuance or sale of bonds under this subchapter, and no publication of any resolution, ordinance, notice, or proceedings relating to such acquisition or construction, or the issuance or sale of bonds, shall be required except such as are prescribed by this subchapter, any provision or other statutes of the state to the contrary notwithstanding.
  2. All functions, powers, and duties of the State Board of Health shall remain unaffected by this subchapter.
  3. This subchapter, being necessary for the public health, safety, and welfare, shall be liberally construed to effectuate its purposes.

History. Acts 1955, No. 414, §§ 3, 17, 18; A.S.A. 1947, §§ 19-4241, 19-4255, 19-4256.

14-234-503. Authority for joint undertaking.

  1. Any two (2) or more municipalities in the State of Arkansas may join in the purchase or construction of a waterworks system for each of the municipalities, execute the joint obligation of the several municipalities, and secure the payment thereof by a joint pledge of the net revenues derived from the operation of the several waterworks systems until the obligations, principal and interest, shall be fully paid, as provided in this subchapter.
    1. Any city of the first class having a city manager form of government and divided by a state line shall have the authority to join in the purchase, construction, and operation of a waterworks system with the adjoining city in another state for each of the municipalities, and to execute an agreement for the joint obligation of the municipalities and secure the payment thereof by a joint pledge of the net revenues derived from the operation of the waterworks systems.
    2. The municipalities shall employ a joint manager for the operation of the waterworks system who shall be hired by the city managers of the municipalities and who shall serve under the direct supervision of the city managers jointly.

History. Acts 1955, No. 414, § 2; A.S.A. 1947, § 19-4240; Acts 1989, No. 607, § 1.

Case Notes

Pledge of Net Revenues.

A deed of trust, when construed as a whole, provides for the operation and maintenance of the district's property, so that there is no pledge of gross revenues in violation of the statutory provision for pledge only of net revenues. Hink v. Board of Dirs., 235 Ark. 107, 357 S.W.2d 271 (1962).

14-234-504. Cost estimate — Contents of ordinances — Bonds.

  1. Whenever the respective legislative bodies of two (2) or more municipalities shall determine to purchase or construct a waterworks system for the respective municipalities under the provisions of this subchapter, they shall cause an estimate to be made of the costs thereof and shall, by ordinances, provide for the issuance of revenue bonds under the provisions of this subchapter.
  2. The ordinances shall set forth a brief description of the contemplated respective improvements, the estimated costs thereof, the amount, rate of interest, time and place of payment, and other details in connection with the issuance of the bonds.
    1. The bonds shall bear interest at such rate or rates, payable semiannually, and shall be payable at such times and places not exceeding thirty-five (35) years from their date, as shall be prescribed in the respective ordinances providing for their issuance.
    2. The bonds shall be executed by all of the municipalities joining in the undertaking by their respective mayors and clerks or recorders and be the joint and several obligations of the several municipalities.
  3. The ordinances of the respective municipalities shall also declare that a statutory mortgage lien shall exist upon the respective properties so to be acquired or constructed, fix the minimum rate or rates for water to be collected within the respective municipalities prior to the payment of all of the bonds, and pledge the net revenues of the respective municipalities derived from the waterworks systems in the respective municipalities for the purpose of paying the principal of and interest on the bonds.
  4. The rates to be charged within each municipality for the services from the waterworks system within each municipality shall be sufficient to produce total net revenues from all of the municipalities joining in the undertaking to provide for the payment of interest upon all of the bonds issued to provide funds for the costs of acquisition or construction of all of the waterworks systems and to create a sinking fund to pay the principal of the bonds as and when it becomes due.
  5. The respective ordinances shall also provide for the operation and maintenance of the respective waterworks systems and to provide adequate depreciation funds.

History. Acts 1955, No. 414, § 4; 1981, No. 425, § 47; A.S.A. 1947, § 19-4242.

14-234-505. Ordinances — Additional provisions.

  1. The several ordinances authorized in the issuance of the revenue bonds may contain provisions for the acceleration of the maturities of all unmatured bonds in the event of default in the payment of any principal or interest maturing under the bond issue, upon failure to meet any sinking fund requirements, or in any other event stipulated in the ordinances. These provisions will be binding.
  2. The priorities as between successive issuance of revenue bonds may also be controlled by the provisions of the ordinances.
  3. The ordinances may also, if deemed desirable, provide for the execution of an indenture, contemporaneously with the execution of the bonds, by the several municipalities:
    1. Defining the rights of the bondholders inter sese;
    2. Appointing a trustee for the bondholders, which trustee may be a foreign or domestic corporation, vesting in that trustee, to the extent deemed advisable, all rights of action under the bonds;
    3. Providing for the priority of lien as between successive bond issues;
    4. Providing for the acceleration of bond maturities, and containing any covenants on the part of the municipalities relating to the acquisition or construction of the waterworks systems, or the application or safeguarding of the proceeds of the bonds, or other covenants intended for the protection of the bondholders; and
    5. Containing any other provisions, whether similar or dissimilar to the foregoing, which are consistent with the terms of this subchapter and which may be deemed desirable.

History. Acts 1955, No. 414, § 13; A.S.A. 1947, § 19-4251.

14-234-506. Ordinances — Publication — Hearing.

  1. After the passage of the ordinance, it shall be published one (1) time in a newspaper published in the municipality, or if there is no newspaper so published, then in a newspaper which has a bona fide general circulation within the municipality, with a notice to all persons concerned stating that the ordinance has been passed and that the municipality contemplates the issuance of the bonds described in the ordinance and that any person interested may appear before the legislative body, upon a certain date which shall be not less than ten (10) days subsequent to the publication of the ordinance and notice, and present protests.
  2. At the hearings all objections and suggestions shall be heard and the legislative body shall take such action as it shall deem proper in the premises.

History. Acts 1955, No. 414, § 5; A.S.A. 1947, § 19-4243.

14-234-507. Location of system — Sale of water — Ownership of distribution system.

  1. Municipalities are authorized to construct waterworks systems or any integral part thereof either inside or outside the limits of the municipalities and inside and outside the limits of the county in which the municipalities are located.
    1. A municipality purchasing or constructing a waterworks system or integral part thereof may sell the water to private consumers located inside and outside of the municipality.
    2. It may sell a part of the water to an improvement district, or it may sell the water or a part thereof to a private corporation engaged in the business of selling water to private consumers in the municipality.
  2. Nothing in this section shall authorize any city or improvement district to sell its existing plant to a private corporation.
  3. Each municipality shall own its own distribution system, and the several municipalities together may own jointly, on whatever terms they may agree upon, whatever of the waterworks systems that serves the several municipalities jointly.

History. Acts 1955, No. 414, § 3; A.S.A. 1947, § 19-4241.

Case Notes

Effect on Subsequent Legislation.

The Regional Water Distribution District Act, § 14-116-101 et seq., authorizing the creation of water distribution districts, is a later statute than this section and is clearly not affected by its provisions as to the joinder of two or more municipalities in the acquiring of a water supply. Hink v. Board of Dirs., 235 Ark. 107, 357 S.W.2d 271 (1962).

14-234-508. Bond issue — Sufficiency — Negotiability — Sale — Fiscal agent.

  1. Bonds provided for in this subchapter shall be issued in whatever amounts may be necessary to provide sufficient funds to pay the total costs of acquisition or construction of the several waterworks systems to be provided for the several municipalities joining in the undertaking. The total costs shall include engineering, legal, and other expenses, together with interest to a date six (6) months subsequent to the estimated date of completion of all of the waterworks systems.
  2. Bonds issued under the provisions of this subchapter are declared to be negotiable instruments.
  3. Bonds shall be executed as provided in this subchapter and be sealed with the corporate seals of the municipalities. In the event any of the officers whose signatures appear on the bonds or coupons shall cease to be officers before delivery of the bonds, the signatures shall nevertheless be valid and sufficient for all purposes the same as if they had remained in office until delivery.
  4. Bonds authorized under the provisions of this subchapter may be sold at not less than ninety cents (90¢) on the dollar and the proceeds derived therefrom shall be used exclusively for the purposes for which the bonds are issued. The bonds may be sold at one time or in parcels as funds are needed and may be sold at private sale or at public sale upon whatever notice and in whatever manner the municipalities may determine in their respective ordinances.
  5. In the issuance and sale of the bonds, the municipalities may employ a fiscal agent and shall pay for its services reasonable compensation, except that no fiscal agent may purchase, directly or indirectly, any bonds of the municipalities while it serves them in the capacity of fiscal agent.

History. Acts 1955, No. 414, § 6; A.S.A. 1947, § 19-4244.

14-234-509. Bonds — Nature of indebtedness.

  1. Bonds issued under the provisions of this subchapter shall be payable solely from the total revenues derived from the waterworks systems of all of the municipalities joining in the undertaking.
  2. The bonds shall not in any event constitute an indebtedness of the municipalities within the meaning of the constitutional provisions or limitations.
  3. It shall be plainly stated on the face of each bond that it has been issued under the provisions of this subchapter, that it does not constitute an indebtedness of the municipalities within any constitutional or statutory limitation, and that it is the joint and several obligation of all the municipalities executing the bond, payable solely from the total net revenues of the waterworks systems of the municipalities.

History. Acts 1955, No. 414, § 7; A.S.A. 1947, § 19-4245.

14-234-510. Obligation payable from revenue bonds only — Security in condemnation proceedings.

  1. No obligation shall, or may, be incurred by the several municipalities in the acquisition or construction of the waterworks systems contemplated under the provisions of this subchapter or in the condemnation of property in connection therewith, except those as shall be payable solely from the funds to be acquired from the sale of revenue bonds of the character authorized by this subchapter.
  2. In view of this provision, the court, in condemnation proceedings instituted under this subchapter by the several municipalities, may make requirements of security as will serve to protect the landowners.

History. Acts 1955, No. 414, § 15; A.S.A. 1947, § 19-4253.

14-234-511. Allocation of bond proceeds.

  1. Any specified portion of the proceeds of an issue of bonds authorized under the provisions of this subchapter may be allocated by the respective legislative bodies to any particular project, or to new construction, as distinguished from the purchase of waterworks already constructed.
    1. After the allocation, the designated portion of the proceeds of the bond issue shall be kept separate and apart from the remaining proceeds and shall be held by the respective municipalities in trust for the performance of the purposes specified and none other.
    2. The diversion of funds to any other purpose may be enjoined on the suit of the trustee under the indenture, if any, accompanying the bonds, or on the suit of any of the bondholders, or on the suit of any person whose property, under the respective ordinances, is to be served by the proposed waterworks system.
  2. In making the allocation, the legislative bodies will be controlled by the engineer's estimate of costs referred to in the initial ordinances.
    1. In the event of the allocation of proceeds, the bonds themselves may be similarly or correspondingly segregated and allocated to the respective purposes of the issue.
    2. Bonds segregated and allocated to one (1) purpose shall, from the standpoint of legality and in all other respects, be deemed to have been issued to finance that purpose and that alone.
    3. Notwithstanding the allocation and segregation, all bonds of the entire issue will, unless the initial ordinances or the indenture accompanying the bonds shall provide to the contrary, be secured ratably and equally by the revenues of the entire and aggregate waterworks systems financed by the bond issue.
    4. Unless the ordinances or indenture shall so specifically provide, the allocation of bond proceeds or segregation of bonds will never have the effect of allocating the revenues from any particular portion of the authorized works exclusively to any particular bond or bonds.

History. Acts 1955, No. 414, § 12; A.S.A. 1947, § 19-4250.

14-234-512. Bonds — Tax exemption.

Bonds issued under the provisions of this subchapter shall be exempt from all state, county, and municipal taxes, including income and inheritance taxes.

History. Acts 1955, No. 414, § 14; A.S.A. 1947, § 19-4252.

14-234-513. Fixed rate reduction prohibited — Exception — Surpluses.

  1. Rates for water fixed precedent to the issuance of the bonds shall not be reduced until all of the bonds shall have been fully paid and shall, whenever necessary, be increased in an amount sufficient to provide for the payment of the bonds, both principal and interest, and to provide proper funds for the depreciation account and operation and maintenance charges. However, the rates may be reduced subject to any conditions which may be set out in the ordinances authorizing the issuance of the bonds or in the trust indenture authorized under the provisions of this subchapter.
    1. If any surplus shall be accumulated in the operating and maintenance fund of any one (1) of the several municipalities which shall be in excess of the costs of maintaining and operating the waterworks system of that municipality during the remainder of the current fiscal year and the costs of maintaining and operating the waterworks system of that municipality during the next fiscal year, then any excess may be transferred to either the depreciation account of the waterworks system of that municipality, or to the bond and interest redemption account, as the several legislative bodies may designate in their respective ordinances.
    2. If any surplus shall be accumulated in the depreciation account of any waterworks system of any one (1) of the several municipalities over and above that which may be necessary for the proper replacements which may be needed during the fiscal year and the next fiscal year, that excess may be transferred to the bond and interest redemption account.
    3. If a surplus shall exist in the bond and interest redemption account, the same may be applied by the legislative bodies in their discretion subject to any limitations in the ordinances authorizing the issuance of the bonds or in the trust indenture:
      1. To the payment of any outstanding unmatured bonds payable from the bond and interest redemption account that may be subject to call for redemption before maturity; or
      2. To any other municipal purpose.

History. Acts 1955, No. 414, § 9; A.S.A. 1947, § 19-4247.

14-234-514. Deposit of funds.

  1. Municipalities joining together to issue revenue bonds under the provisions of this subchapter shall designate a bank, which shall be a member of the Federal Deposit Insurance Corporation, to act as a common depository for all of the municipalities to receive and hold on deposit and for disbursement all of the revenues derived from the waterworks systems of the several municipalities.
  2. The depository shall install and maintain a proper system of accounts, showing the amount of revenues received from each municipality and the application thereof.
  3. The accounts shall be subject to audit at least once a year by a competent auditor and the report of the auditor shall be open to inspection at all times to any of the several municipalities, any taxpayer, any water user, or any holder of bonds issued under the provisions of this subchapter, or anyone acting for and on behalf of the municipalities, taxpayer, water user, or bondholder.
  4. All of the funds received as income from the waterworks systems acquired or constructed in whole or in part under the provisions of this subchapter and all funds received from the sale of revenue bonds issued to acquire or construct the waterworks system shall be kept separate and apart from the other funds of the municipalities.
  5. No one (1) account shall be maintained for all of the municipalities in which shall be placed the interest and sinking fund moneys; separate accounts shall be maintained for each municipality in which shall be placed the depreciation funds and funds to provide for the operation and maintenance of the respective waterworks systems.

History. Acts 1955, No. 414, § 11; A.S.A. 1947, § 19-4249.

14-234-515. Statutory mortgage lien — Default.

    1. There shall be created a statutory mortgage lien upon the several waterworks systems acquired or constructed from the proceeds of bonds authorized to be issued.
    2. The lien shall exist in favor of the holder of the bonds, and each of them, and to and in favor of the holder of the coupons attached to the bonds.
    3. The waterworks systems shall remain subject to statutory mortgage lien until payment in full of the principal of and interest on the bonds.
  1. Subject to whatever restrictions may be contained in the indenture authorized in this subchapter, any holder of bonds issued under the provisions of this subchapter or any coupons representing interest accrued thereon, may, either at law or in equity, enforce the statutory mortgage lien hereby conferred and may, by proper suit, compel the performance of the duties of the officials of the issuing municipalities set forth in this subchapter.
  2. If there is default in the payment of the principal of or interest upon any of the bonds, any court having jurisdiction in any proper action may appoint a receiver to administer the waterworks systems on behalf of the municipalities with power to charge and collect rates sufficient to provide for the payment of the principal of and interest on the bonds and for the payment of the operating expenses and to apply the income and revenues in conformity with this subchapter and the ordinances providing for the issuance of the bonds.

History. Acts 1955, No. 414, § 8; A.S.A. 1947, § 19-4246.

14-234-516. Eminent domain.

For the purpose of acquiring any waterworks system under the provisions of this subchapter, or for the purpose of acquiring any properties necessary therefor, each of the municipalities joining together under the provisions of this subchapter shall have the right of eminent domain, as is provided in §§ 18-15-301—18-15-303.

History. Acts 1955, No. 414, § 10; A.S.A. 1947, § 19-4248.

14-234-517. Management of system.

  1. Municipalities desiring to avail themselves of the benefits of this subchapter and join together in the issuance of bonds as provided under the provisions of this subchapter, by proper ordinances, passed by all of the respective municipalities, may employ, under terms and for a compensation satisfactory to the respective municipalities, the same person, or persons, or corporation to manage and operate on behalf of all of the municipalities all of the several waterworks systems.
  2. The person or persons or corporation so employed jointly by the several municipalities may be vested with full and complete authority to manage, operate, employ, extend, and maintain the several waterworks systems and shall have full and complete charge of the waterworks systems including the right to employ or remove any and all assistants and employees of whatsoever nature, kind, or character and to fix, regulate, and pay their salaries, it being the intention of this section to vest in the person or persons or corporation unlimited authority to operate, manage, maintain, improve, and extend the waterworks systems and to have full and complete charge thereof.
  3. The person, or persons, or corporation shall not have authority or power to sell, mortgage, or encumber the waterworks systems, or any of them.

History. Acts 1955, No. 414, § 16; A.S.A. 1947, § 19-4254.

Subchapter 6 — Collection of Delinquent Water Bills

Cross References. Arkansas Public Service Commission, § 23-2-101 et seq.

14-234-601. Definitions.

As used in this subchapter:

  1. “Water association” means any entity organized under the laws of the State of Arkansas, whether for profit or not for profit, that provides, distributes, transmits, treats, pumps, or stores raw or potable water for the benefit of members of the general public or commercial, industrial, and other users; and
  2. “Water system” means any entity that provides, distributes, transmits, treats, pumps, or stores raw or potable water, wastewater, or sewage for the benefit of members of the general public and commercial, industrial, and other users, including without limitation, the following entities that perform such activities:
    1. Municipalities;
    2. Counties;
    3. Public facilities boards;
    4. Public water authorities;
    5. Central Arkansas Water;
    6. Regional water distribution districts; and
    7. Water associations.

History. Acts 2003, No. 769, § 1; 2007, No. 360, § 1.

14-234-602. Liability.

Any person who is delinquent on the payment for water, wastewater service, or sewer service provided by a water system may be held liable, at the discretion of a court of competent jurisdiction, for attorney's fees and costs incurred in the collection of the delinquency.

History. Acts 2003, No. 769, § 2; 2007, No. 360, § 2.

Case Notes

Late Fees.

This section and subsection (h) of § 14-235-223 do not limit the administrative power of a municipality to levy a fine or penalty against a person who has not paid his bill for water or sewer services as the exclusive remedy. Rather, these statutes give municipalities the additional authority to file suit in court and seek attorney's fees in litigation concerning the collection of those delinquent accounts. Davis v. City of Blytheville, 2015 Ark. 482, 478 S.W.3d 214 (2015).

14-234-603. Refusal of water service for delinquency.

If a person who is delinquent on the payment of an undisputed bill for water service, wastewater service, or sewer service provided by a water system within this state moves into another area of this state and that person applies for or receives water from another water system, if the person's former water system establishes that there is no dispute that the delinquent amount is properly due and owed by that particular individual in that amount, the new water system shall refuse to provide water service to the delinquent person until the person provides proof of curing the delinquency.

History. Acts 2003, No. 769, § 3; 2007, No. 360, § 3.

14-234-604. Applicability.

No provision of this subchapter shall apply to a water system that is regulated by the Arkansas Public Service Commission as a public utility as provided in § 23-1-101(9).

History. Acts 2003, No. 769, § 4.

14-234-605. Termination of water service for delinquency.

A public water system that is not otherwise regulated by a municipality or municipal improvement district may terminate water service to a water user when the water user:

  1. Is more than twenty-five (25) days past the earliest due date shown on the face of the bill in making a payment for water, wastewater, or sewer service to the public water system or other public entity; and
  2. Has been sent notice via the United States Postal Service to an address provided by the water user that service will be terminated in no less than fifteen (15) days from date of mailing if the balance due on the service and any applicable late fees are not paid.

History. Acts 2011, No. 284, § 1.

Subchapter 7 — The Sewer Utility Collection Act

A.C.R.C. Notes. Acts 2013, No. 1210, § 1, provided:

“Findings and legislative intent.

“(a) The General Assembly finds that:

“(1) Arkansas is a rural state, and many citizens have sewer utility service provided by relatively small sewer utilities that do not control customers' water service but are required to meet stringent state and federal water quality standards and collect service fees from customers to properly operate the sewer utility;

“(2) Many sewer utilities are owned by private entities, neighborhood associations, or improvement districts that do not have the resources to incur collection costs when payment for sewer utility services are not made;

“(3) A sewer utility that does not control its customers' water service is prevented from discontinuing sewer utility service to a customer due to nonpayment despite the need to continue sewer utility service to avoid unsanitary conditions and potential health risks; and

“(4) A sewer utility that does not control its customers' water service needs a mechanism to collect unpaid sewer utility service fees from its customers.

“(b) It is the intent of this act to assist a sewer utility that does not control its customers' water service by providing a mechanism to collect unpaid sewer utility service fees from its customers and requiring cooperation from the provider of its customers' water service.”

14-234-701. Title.

This subchapter shall be known and may be cited as the “Sewer Utility Collection Act”.

History. Acts 2013, No. 1210, § 2.

14-234-702. Definitions.

As used in this subchapter:

  1. “Corresponding water utility” means an individual or entity that owns or operates in this state equipment or facilities for diverting, developing, pumping, impounding, distributing, or furnishing water to or for the public for compensation; and
  2. “Sewer utility” means an individual or entity that maintains a sewage collection system or a sewage treatment plant, intercepting sewers, outfall sewers, force mains, pumping stations, ejector stations, and other appurtenances necessary or useful for the collection or treatment, purification, and disposal of liquid and solid waste, sewage, or wastewater.

History. Acts 2013, No. 1210, § 2; 2015, No. 336, § 1.

Amendments. The 2015 amendment redesignated (1)(A) as (1) and deleted (1)(B).

14-234-703. Cooperation between sewer and water utilities — Termination of water service.

    1. A sewer utility may request notification from a corresponding water utility of any change to customer information, including without limitation a change:
      1. To a billing address; and
      2. In service, including a new or additional connection or a disconnection.
    2. A corresponding water utility shall provide the customer information requested to the sewer utility within fifteen (15) days of the change in customer information.
    1. A corresponding water utility shall terminate water service to a customer of the sewer utility who is also a customer of the corresponding water utility upon receiving a signed statement from a representative of the sewer utility that states:
      1. That the customer has not paid for sewer utility service for more than fifteen (15) days past the due date shown on the face of the sewer utility bill; and
      2. That the sewer utility has sent notice to the customer by the sewer utility's preferred delivery method of notification from the choices of notification that the United States Postal Service can provide.
    2. The signed statement required under this subsection shall be accompanied by a copy of the following:
      1. Documentation showing that the customer has not paid for sewer utility service for more than fifteen (15) days past the earliest due date shown on the face of the sewer utility bill;
      2. The notice required under subdivision (b)(1)(B) of this section; and
      3. Documentation showing that the sewer utility mailed the termination notice required under subdivision (b)(1)(B) of this section.
    3. The signed statement required under this subsection may be sent to a water utility electronically.
  1. Upon receipt of payment for the outstanding balance for sewer utility service, the sewer utility shall promptly notify the corresponding water utility to reconnect the customer's water service.
    1. If water service is terminated under subsection (b) of this section, a corresponding water utility may charge the customer a fee to reestablish water service.
    2. A corresponding water utility shall not:
      1. Charge a sewer utility a fee for:
        1. Terminating water service under subsection (b) of this section; or
        2. Reestablishing water service under subdivision (d)(1) of this section; or
      2. Have any liability for complying in good faith with a requirement of this section.

History. Acts 2013, No. 1210, § 2; 2015, No. 336, § 2; 2017, No. 1120, § 1.

A.C.R.C. Notes. Former subdivision (b)(2)(D) was removed as obsolete language as a result of the repeal of former subdivision (b)(1)(C).

Amendments. The 2015 amendment rewrote and redesignated the introductory language of (b) as the introductory language of (b)(1); rewrote and redesignated (b)(1) and (b)(2) as (b)(1)(A) and (b)(1)(B); added (b)(1)(C); and added (b)(2) and (b)(3).

The 2017 amendment deleted “the following” at the end of the introductory language of (b)(1); in (b)(1)(A), substituted “That the” for “The” and deleted “earliest” preceding “due date”; rewrote (b)(1)(B); and deleted (b)(1)(C).

14-234-704. Cooperative billing arrangements.

  1. A corresponding water utility may enter into a written agreement with a sewer utility or other entity, including without limitation an entity responsible for trash collection, for the regular billing and collection of the bills of the sewer utility or other entity by the corresponding water utility on behalf of the sewer utility or other entity for a fee to be paid by the sewer utility or other entity.
  2. When a corresponding water utility is responsible for the regular billing and collection of bills for a sewer utility or other entity based on a written agreement under subsection (a) of this section:
    1. The requirements of § 14-234-703 do not apply; and
    2. The corresponding water utility may terminate water service to a customer for the customer's failure to pay any portion of the collective bill sent by the corresponding water utility on behalf of itself and any sewer utility or other entity under this section.

History. Acts 2015, No. 336, § 3.

Chapter 235 Municipal Sewage Systems

Research References

C.J.S. 63 C.J.S., Mun. Corp., § 1235.

64 C.J.S., Mun. Corp., §§ 1802-1807.

Subchapter 1 — General Provisions

14-235-101. [Repealed.]

Publisher's Notes. This section, concerning a municipality's disposal of waste in another county, was repealed by Acts 1995, No. 555, § 1. The section was derived from Acts 1981, No. 476, §§ 1, 2; 1983, No. 140, § 1; A.S.A. 1947, §§ 19-4116.1, 19-4116.2.

Subchapter 2 — Operation of Systems by Municipalities

A.C.R.C. Notes. References to “this subchapter” in §§ 14-235-20114-235-224 may not apply to § 14-235-225 which was enacted subsequently.

Cross References. Exemptions from civil service systems, §§ 14-49-301, 14-50-302.

Extension of lines beyond corporate limits, § 14-234-111.

General authority over sewers and drains, § 14-54-601.

Local Government Bond Act of 1985, § 14-164-301 et seq.

Local government reserve funds, § 14-73-101 et seq.

Effective Dates. Acts 1933, No. 132, § 24: approved Mar. 21, 1933. Emergency clause provided: “Whereas, there are communities in this State which are seriously in need of improvements of the kind authorized in this act, the absence of which improvements creates a condition which menaces the public health and safety; and whereas the passage of this act will create a means of immediately financing the construction of such works through emergency government lending agencies, which is not available under existing laws; and whereas the immediate construction of such works (which can be accomplished with the aid of existing government lending agencies) will not only relieve conditions jeopardizing the public health and safety, but will give employment to numerous citizens, thereby minimizing, in some degree, the prevailing conditions of unemployment attending the existing financial depression; and

“Whereas, there are now in use works (owned by other than municipalities) of the character authorized by this act which require immediate repairs, improvements and/or extensions that can not be effected or accomplished because of the inability to finance same under existing laws, though the necessity for such repairs, improvements and extensions menace the public health and safety; and this act provides a method whereby such works could be acquired by municipalities and the necessary repairs, improvements and/or extensions promptly made;

“Therefore, it is hereby declared that an emergency exists, and that this act is necessary for the immediate preservation of the public peace, health and safety, and that this act therefore will take effect, and be in force, from and after its passage.”

Acts 1961, No. 156, § 2: Mar. 3, 1961. Emergency clause provided: “It has been found and is declared by the General Assembly of Arkansas that there exists great confusion in the application of the provisions of this Act to those cities and towns operating under the commission form of government, and that enactment of this bill will provide for more efficient administration of the affairs of those cities and towns operating under such commission form of government. Therefore, an emergency is declared to exist, and this Act being necessary for the preservation of the public peace, health and safety, shall take effect and be in force from the date of its approval.”

Acts 1970 (Ex. Sess.), No. 46, § 4: Mar. 13, 1970. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvments is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 1975, No. 225, § 26: became law without Governor's signature, Feb. 19, 1975. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this state and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this act. Therefore, an emergency is declared to exist and this act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 1975, No. 401, § 3: Mar. 14, 1975. Emergency clause provided: “It is hereby found and determined by the General Assembly that the lack of statutory authority for municipalities owning sewage improvement districts to borrow money, except by bond issues, is hampering municipalities in the financing of improvements to their municipal sewage systems; that there is urgent need for immediate authority for such municipalities to borrow money on promissory notes, to provide for preliminary expense prior to the issuance of revenue bonds or to provide interim financing pending receipt of federal or state grant money; that this Act is designed to give municipalities such authority and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1979, No. 528, § 5: Mar. 26, 1979. Emergency clause provided: “It has been found and it is hereby declared that the interest rate limitation presently in effect for certain revenue promissory notes secured by pledges of municipal sewer system revenues (being six percent (6%) per annum) is not adequate to permit the interim financing by that method of needed municipal sewer system improvements and that certain of these improvements are urgently and immediately needed. Therefore, an emergency is declared to exist and this Act being necessary for the preservation of the public peace, health and safety, shall be in effect upon its passage and approval.”

Acts 1979, No. 575, § 2: Mar. 26, 1979. Emergency clause provided: “It is hereby found and determined by the General Assembly that the present law relating to contracts or agreements for construction, extension, repair, and improvement of municipal sewer systems is unduly restrictive in requiring competitive bidding on small contracts, and that such restrictions are causing severe hardship and resulting in unnecessary added expense to municipalities; that there is some confusion in the present law regarding such contracts since Section 1 of Act 159 of 1949, as amended, which purports to apply to all construction contracts entered into by the State or any political subdivision thereof must be awarded upon competitive bids only if the contract exceeds $10,000; and that this Act should be given effect immediately to eliminate such confusion and to relieve the hardship mentioned above. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1981, No. 425, § 54: Mar. 11, 1981. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 1985, No. 290, § 3: Mar. 8, 1985. Emergency clause provided: “It is hereby found and determined by the General Assembly that it is inequitable to require a landowner to be liable for the sewerage system charges incurred by the landowner's tenants and lessees; that this bill eliminates such liability and should be given immediate effect in order to eliminate the inequity resulting from the present law. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1987, No. 86, § 5: Feb. 25, 1987. Emergency clause provided: “It is found and it is hereby declared by the General Assembly of the State of Arkansas that availability of financing of extraordinary expenses or liabilities of cities and towns arising from the ownership and operation of municipal sewer systems is essential to the continued operation of safe and sanitary sewer facilities by cities and towns in this state, without which the life, health and safety of the inhabitants of this state are endangered. Therefore, an emergency is declared to exist and this act, being necessary for the preservation of the public peace, health and safety shall be in effect upon its passage and approval.”

Acts 1989, No. 254, § 5: Feb. 24, 1989. Emergency clause provided: “It is hereby found and determined by the General Assembly that present law is unclear regarding whether municipalities may borrow funds to refinance existing obligations pertaining to their waterworks and sewage systems; that this Act clarifies the law to specifically grant municipalities that authority; that until this Act becomes effective municipalities are going to be adversely affected; and that this Act should therefore be given effect immediately. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1989, No. 607, § 6: Mar. 15, 1989. Emergency declared.

Research References

Ark. L. Rev.

Municipal Improvement Bonds in Arkansas, 8 Ark. L. Rev. 146.

Comment, Municipal Bonds and Amendment 62: Clearing Up a Serbonian Bog, 39 Ark. L. Rev. 499.

Case Notes

Appeals.

Supreme Court had jurisdiction of appeal from determination by circuit court that section of city ordinance requiring property owners to connect with sewer system was invalid even though this subchapter, authorizing installation of sewer system, does not provide for an appeal, since Supreme Court has jurisdiction of appeals from all circuit court proceedings in the state. Mountain Home v. Ray, 223 Ark. 553, 267 S.W.2d 503 (1954).

Effect on Prior Law.

The Municipal Improvement District Law, § 14-88-201 et seq., was not affected by this subchapter. Ray v. City of Mt. Home, 228 Ark. 885, 311 S.W.2d 163 (1958).

Sewer Rates.

Acts 1935, No. 324, § 14-200-101 and this subchapter et seq., gave municipalities different cumulative procedures for acquiring a sewage system. However, only this subchapter gives a city the specific authority to set sewer rates, and only this subchapter provides a procedure for changing those rates. City of Ft. Smith v. O.K. Foods, Inc., 293 Ark. 379, 738 S.W.2d 96 (1987).

14-235-201. Definition.

As used in this subchapter, unless the context otherwise requires, the term “works” shall be construed to mean and include:

  1. The structures and property as provided in § 14-235-203;
  2. Storm water management;
  3. The creation and operation of a storm water utility;
  4. The creation and operation of a storm water department; and
  5. Other like organizational structures related to the disposal or treatment of storm water by municipalities.

History. Acts 1933, No. 132, § 1; Pope's Dig., § 9977; A.S.A. 1947, § 19-4101; Acts 2001, No. 986, § 1.

Amendments. The 2001 amendment added (2) through (5) and made related changes.

Case Notes

Sewerage System.

Stormwater utility fee was not an illegal extraction because § 14-235-223(a)(1) did not state that the fee had to be paid by any beneficiary, whether intended or unintended, of the sewerage system, and the code did not define “sewerage system” to distinguish between the wastewater sewer system and the stormwater sewer system. Morningstar v. Bush, 2011 Ark. 350, 383 S.W.3d 840 (2011).

Cited: Cowling v. Foreman, 238 Ark. 677, 384 S.W.2d 251 (1964).

14-235-202. Construction.

This subchapter, being necessary for the public health, safety, and welfare, shall be liberally construed to effectuate the purposes of it.

History. Acts 1933, No. 132, § 22; Pope's Dig., § 9998; A.S.A. 1947, § 19-4122.

Case Notes

Late Fees.

When subdivision (a)(1) of § 14-235-223 is construed liberally, as this section instructs, cities have the implied authority to establish a late fee as a “rate or charge” under § 14-235-223. Davis v. City of Blytheville, 2015 Ark. 482, 478 S.W.3d 214 (2015).

14-235-203. Authority generally.

  1. The authority given in this subchapter shall be in addition to, and not in derogation of, any power existing in any municipality under any statutory or charter provisions which it may adopt.
  2. For all purposes of this subchapter, all municipalities shall have jurisdiction for ten (10) miles outside their corporate limits.
    1. Every municipality in the State of Arkansas is authorized and empowered to own, acquire, construct, equip, operate, and maintain, within or without the corporate limits of the city or town, a sewage collection system or a sewage treatment plant, intercepting sewers, outfall sewers, force mains, pumping stations, ejector stations, and all other appurtenances necessary or useful and convenient for the collection and treatment, purification, and disposal in a sanitary manner of the liquid and solid waste, sewage, night soil, and industrial waste of the municipality. However, before a municipality may construct, operate, or maintain a sewage collection system or sewage treatment plant outside the corporate limits, it must be demonstrated in accordance with subsection (d) of this section that such construction, operation, or maintenance within the corporate limits is not feasible. If it is determined that it is not feasible to construct, operate, or maintain the sewage collection system or sewage treatment plant within the corporate limits, the feasibility of constructing, operating, or maintaining the sewage collection system or sewage treatment plant within the municipality's seven-year growth area must be determined in accordance with subsection (d) of this section.
      1. A municipality shall not seek placement of a sewage collection system or sewage treatment plant within its seven-year growth area if it is feasible to locate the sewage collection system or sewage treatment plant within the corporate limits of the municipality.
      2. A municipality shall not seek placement of a sewage collection system or sewage treatment plant outside its seven-year growth area if it is feasible to locate the sewage collection system or sewage treatment plant within the seven-year growth area of the municipality.
  3. The determination of feasibility shall include the municipality's best efforts to locate the sewage collection system or sewage treatment plant within the corporate limits of the municipality. The question of feasibility in regard to placing a sewage collection system or sewage treatment plant outside the corporate limits of the municipality shall address all criteria required by applicable state and federal laws and regulations, applicable financing requirements, physical possibility, cost of construction or maintenance, and any material adverse effect on real property outside the corporate limits of the municipality. The determination of material adverse effect on real property outside the corporate limits of the municipality shall be made by a state-certified appraiser and shall be in conformance with the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation. The determination of feasibility shall be made by a certified engineer appointed by the municipality's governing body.
  4. All feasibility determinations shall be made in good faith without a predisposition to any proposed or feasible locations. Any engineer or engineering firm hired to determine feasibility as provided in this section shall consider not only locations proposed by the municipality, but any location within the corporate limits that may be suitable.

History. Acts 1933, No. 132, §§ 1, 20; Pope's Dig., §§ 9977, 9996; A.S.A. 1947, §§ 19-4101, 19-4120; Acts 1997, No. 1336, § 1.

Publisher's Notes. Acts 1997, No. 1336 became law without the Governor's signature.

Amendments. The 1997 amendment added the last two sentences in present (c)(1); added (c)(2); and added (d) and (e).

Case Notes

In General.

The effective date of Acts 1997, No. 1336, was August 1, 1997, and the act is not to be applied retroactively; thus, the act does not apply to a facility on which construction was commenced prior to August 1, 1997. City of Dover v. Barton, 337 Ark. 186, 987 S.W.2d 705 (1999).

Illegal Exaction.

Stormwater utility fee was not an illegal exaction because § 14-235-223(a)(1) did not state that the fee had to be paid by any beneficiary, whether intended or unintended, of the sewerage system, and the code did not define “sewerage system” to distinguish between the wastewater sewer system and the stormwater sewer system. Morningstar v. Bush, 2011 Ark. 350, 383 S.W.3d 840 (2011).

Outside Corporate Limits.

A sewer improvement district may acquire an outlet for the sewage, and it may do so although the outlet extends beyond the corporate limits of the municipality within which the sewer district was organized, but compensation for the outlet and the damages incident thereto should be assessed on the theory of a permanent taking under the right of eminent domain. Sewer Improv. Dist. No. 1 v. Jones, 199 Ark. 534, 134 S.W.2d 551 (1939).

Cited: Cowling v. Foreman, 238 Ark. 677, 384 S.W.2d 251 (1964); Davis v. City of Blytheville, 2015 Ark. 482, 478 S.W.3d 214 (2015).

14-235-204. Extent of authority.

  1. Except as provided in § 14-235-203, this subchapter shall, without reference to any other statute, be deemed full authority for the construction, acquisition, improvement, equipment, maintenance, operation, and repair of the works provided for in this subchapter and for the issuance and sale of the bonds authorized by this subchapter and shall be construed as an additional and alternative method for them and for the financing of them.
  2. No petition or election or other or further proceeding in respect to the construction or acquisition of the works or to the issuance or sale of bonds under this subchapter, and no publication or any resolution, ordinance, notice, or proceeding relating to such construction or acquisition or to the issuance or sale of such bonds shall be required except such as are prescribed by this subchapter, any provisions of other statutes of the state to the contrary notwithstanding. However, all functions, powers, and duties of the State Board of Health shall remain unaffected by this subchapter.

History. Acts 1933, No. 132, § 21; Pope's Dig., § 9997; A.S.A. 1947, § 19-4121; Acts 1997, No. 1336, § 2.

Publisher's Notes. Acts 1997, No. 1336 became law without the Governor's signature.

Amendments. The 1997 amendment added “Except as provided in § 14-235-203” to the beginning of (a).

Case Notes

Petitions.

Petition is not a condition precedent to action on part of the city council in enacting ordinance providing for issuance of revenue bonds for construction of sewage disposal plant and resolution approving bid, such action being distinctly legislative, and not the exercise of a mere ministerial function. Carpenter v. City of Paragould, 198 Ark. 454, 128 S.W.2d 980 (1939).

Referendum.

Citizens have constitutional right to have ordinance providing for issuance of revenue bonds for cost of sewage disposal plant for city and resolution accepting bid for the improvement referred to the people of the city for a vote. Carpenter v. City of Paragould, 198 Ark. 454, 128 S.W.2d 980 (1939).

The action of a city council in enacting sewer ordinances is legislative and therefore subject to a referendum and the vote of all the electorate of a city under Ark. Const. Amend. 7. Lawrence v. Jones, 228 Ark. 1136, 313 S.W.2d 228 (1958).

14-235-205. Authority to own, etc., systems.

  1. A municipality shall have authority to:
    1. Acquire, by gift, grant, purchase, condemnation, or otherwise, all necessary lands, rights-of-way, and property within or without the corporate limits of the city or town; and
    2. Issue revenue bonds to pay the cost of these works and property.
  2. No obligation shall be incurred by the municipality in the construction or acquisition except such as is payable solely from the funds provided under the authority of this subchapter.

History. Acts 1933, No. 132, § 1; Pope's Dig., § 9977; A.S.A. 1947, § 19-4101.

Case Notes

General Revenues.

A city should not use its general revenues for the repair of sewers, when to do so would defeat its ability to pay the administrative expenses of the city government. Manhattan Rubber Mfg. Div. of Raybestos, Inc. v. Bird, 208 Ark. 167, 185 S.W.2d 268 (1945).

Outside Corporate Limits.

A sewer improvement district may acquire an outlet for the sewage, and it may do so although the outlet extends beyond the corporate limits of the municipality within which the sewer district was organized, but compensation for the outlet and the damages incident thereto should be assessed on the theory of a permanent taking under the right of eminent domain. Sewer Improv. Dist. No. 1 v. Jones, 199 Ark. 534, 134 S.W.2d 551 (1939).

Cited: Cowling v. Foreman, 238 Ark. 677, 384 S.W.2d 251 (1964).

14-235-206. Appointment of sewer committee.

      1. The construction, acquisition, improvement, equipment, custody, operation, and maintenance of any works for the collection, treatment, or disposal of sewage and the collection of revenue from it for the service rendered by it, shall be effected and supervised by a committee to be designated for that purpose by the municipal council.
      2. The committee will function under the control of the council to such extent as may be provided in the ordinance or resolution appointing the committee.
    1. The council may remove any member of the committee, with or without cause, and may appoint any substitute members in case of death, removal, or resignation.
      1. The committee will be called the “sewer committee.”
      2. Provided, however, any city may by ordinance change the name of its sewer committee to “wastewater treatment committee”, and, in such instance, the wastewater treatment committee shall have all powers, duties, and functions prescribed by this chapter for wastewater treatment committees.
  1. The council may appoint one (1) sewer committee to handle all municipal sewer projects, or it may entrust each project to a separate committee.

History. Acts 1933, No. 132, § 2; Pope's Dig., § 9978; Acts 1961, No. 156, § 1; A.S.A. 1947, § 19-4102; Acts 1995, No. 555, § 1; 1995, No. 849, § 1.

Amendments. The 1995 amendment by No. 555 repealed former subsection (c).

The 1995 amendment by No. 849 added (a)(3)(B); and added the quotation marks in (a)(3)(A).

Case Notes

Cited: United States v. Little Rock Sewer Comm., 460 F. Supp. 6 (E.D. Ark. 1978); City of Little Rock v. Chartwell Valley Ltd. Partnership, 299 Ark. 542, 772 S.W.2d 616 (1989).

14-235-207. Powers and duties of sewer committee.

      1. The sewer committee shall have power to take all steps and proceedings and to make and enter into all contracts or agreements necessary or incidental to the performance of its duties and the execution of its powers under this subchapter.
      2. Any contract relating to the financing of the acquisition or construction of any works or any trust indenture as provided in § 14-235-219 shall be approved by the municipal council before it shall be effective.
    1. The committee may employ engineers, architects, inspectors, superintendents, managers, collectors, attorneys, and such other employees as, in its judgment, may be necessary in the execution of its powers and duties and may fix their compensation, all of whom shall do such work as the committee shall direct.
    2. All compensation and all expenses and liabilities incurred in carrying out the provisions of this subchapter shall be paid solely from funds provided under the authority of this subchapter, and the committee shall not exercise or carry out any authority or power given it in this subchapter so as to bind the committee or the municipality beyond the extent to which money has been or may be provided under the authority of this subchapter.
      1. No contract or agreement with any contractor for labor or material exceeding the sum of twenty thousand dollars ($20,000) shall be made without advertising for bids.
      2. The bids shall be publicly opened and the award made to the best bidder, with power in the committee to reject any or all bids.
  1. After the construction, installation, and completion of the works or the acquisition of them, the committee shall:
    1. Operate, manage, and control them and may order and complete any extensions, betterments, and improvements of and to the works that it may deem expedient if funds for them are available, or are made available, as provided in this subchapter;
    2. Establish rules and regulations for the use and operation of the works and of other sewers and drains connected with them so far as they may affect the operation of the works; and
    3. Do all things necessary or expedient for the successful operation of the works.
  2. All public ways or public works damaged or destroyed by the committee in carrying out its authority under this subchapter shall be restored or repaired by the committee and placed in their original condition, as nearly as practicable, if requested to do so by proper authority, out of funds provided by this subchapter.

History. Acts 1933, No. 132, § 3; Pope's Dig., § 9979; Acts 1979, No. 575, § 1; A.S.A. 1947, § 19-4103; Acts 2005, No. 1435, § 1.

Amendments. The 2005 amendment substituted “twenty thousand dollars ($20,000)” for “ten thousand dollars ($10,000)” in (a)(4)(A).

Case Notes

Employees.

In the critical area of hiring supervisory personnel, the sewer committee is charged with duties and powers analogous to the powers exercised by a corporate board of directors in hiring key executive employees. United States v. Little Rock Sewer Comm., 460 F. Supp. 6 (E.D. Ark. 1978).

14-235-208. Appointment, members, etc., of sanitary board.

    1. The municipal council may, in its discretion, provide by ordinance that the custody, administration, operation, and maintenance of sewage system works shall be under the supervision and control of a sanitary board created as provided in this section.
        1. A sanitary board shall be composed of the mayor of the municipality and two (2) persons appointed by the council.
        2. No officer or employee other than the mayor of the municipality, whether holding a paid or unpaid office, shall be eligible to appointment on the board until at least one (1) year after the expiration of the term of his public office.
        1. The appointees shall originally be appointed for terms of two (2) and three (3) years, respectively, and, upon the expiration of each term and each succeeding term, an appointment of a successor shall be made in like manner for a term of three (3) years.
        2. Vacancies shall be filled for an unexpired term in the same manner as the original appointment.
    2. Each member shall give such bond, if any, as may be required by ordinance.
      1. The mayor shall act as chairman of the board, which shall select a vice chairman from its members and shall designate a secretary and treasurer, who need not be members of the sanitary board.
      2. The secretary and the treasurer may be one (1) and the same.
    1. The vice chairman, secretary, and treasurer shall hold office as such at the will of the board.
      1. The members of the board shall receive such compensation for their services, either as a salary or as payments for meetings attended, as the council may determine, not in excess of twenty-five dollars ($25.00) per month for each member, and shall be entitled to payment for their reasonable expenses incurred in the performance of their duties.
      2. The council shall, in its discretion, fix the reasonable compensation of the secretary and treasurer and shall fix the amount of bond to be given by the treasurer.
    1. All compensation, together with the expenses referred to in this section, shall be paid solely from funds provided under the authority of this subchapter.

History. Acts 1933, No. 132, § 15; Pope's Dig., § 9991; A.S.A. 1947, § 19-4115.

14-235-209. Powers and duties of sanitary board.

  1. The board shall have power to establish bylaws, rules, and regulations for its own government.
  2. The board, in respect to all matters of custody, operation, administration, and maintenance of the works, shall have all the powers and perform all the duties provided in § 14-235-207 for the sewer committee in respect of these matters.

History. Acts 1933, No. 132, § 15; Pope's Dig., § 9991; A.S.A. 1947, § 19-4115.

14-235-210. Power of eminent domain.

    1. Under this subchapter, every municipality shall have power to condemn any works to be acquired and any land, rights, easements, franchises, and other property, real or personal, deemed necessary or convenient for the construction of any works, or for extensions, improvements, or additions to them. In this connection, they may have and exercise all the rights, powers, and privileges of eminent domain granted to municipalities under the laws relating to them.
    2. Title to property condemned shall be taken in the name of the municipality.
    3. Proceedings for such appropriation of property shall be under and pursuant to the provisions of §§ 18-15-301 — 18-15-303 and any acts supplemental to it. However, a municipality shall be under no obligation to accept and pay for any property condemned or purchased except from the funds provided pursuant to this subchapter.
      1. In any proceedings to condemn, such orders may be made as may be just to the municipality and to the owners of the property to be condemned.
      2. An undertaking or other security may be required securing the owners against any loss or damage to be sustained by reason of the failure of the municipality to accept and pay for the property. However, the undertaking or security shall impose no liability upon the municipality except such as may be paid from the funds provided under the authority of this subchapter.
  1. In event of the acquisition by purchase, the sewer committee may obtain and exercise an option from the owner of the property for the purchase of it, or may enter into a contract for the purchase of it, and the purchase may be made upon such terms and conditions, and in such manner, as the committee may deem proper.
  2. In event of the acquisition of any works already constructed by purchase or condemnation, the committee, at or before the time of the adoption of the ordinance described in § 14-235-213, shall cause to be determined what repairs, replacements, additions, and betterments will be necessary in order that the works may be effective for their purpose. An estimate of the cost of these improvements shall be included in the estimate of cost required by § 14-235-213, and improvement shall be made upon the acquisition of the works and as a part of the cost of them.

History. Acts 1933, No. 132, § 5; Pope's Dig., § 9981; A.S.A. 1947, § 19-4105.

Case Notes

Burden of Proof.

In eminent domain proceeding for acquisition of land for sewer, landowner had burden of proving that taking was not for a public purpose. City of El Dorado v. Kidwell, 236 Ark. 905, 370 S.W.2d 602 (1963).

Damages.

All damages incident to the construction of a sewer system and the digging of outlet ditches as a part thereof are recoverable by the person damaged, but action, being based upon the exercise of the right of eminent domain, must be brought within three years after the exercise of the right of eminent domain, while the limitation does not apply to a suit to abate a nuisance if the sewer plant has become one. Sewer Improv. Dist. No. 1 v. Jones, 199 Ark. 534, 134 S.W.2d 551 (1939).

Owner of property through which sewer district caused ditches to be dug and into which polluted water flowed from septic tank was held entitled to compensation for damages resulting therefrom to the extent that the effluvium and the water from it diminished the value of his land. Sewer Improv. Dist. No. 1 v. Jones, 199 Ark. 534, 134 S.W.2d 551 (1939).

14-235-211. Acquisition of encumbered property.

No property shall be acquired under this subchapter upon which any lien or other encumbrance exists unless at the time the property is acquired a sufficient sum of money be deposited in trust to pay and redeem the lien or encumbrance in full.

History. Acts 1933, No. 132, § 17; Pope's Dig., § 9993; A.S.A. 1947, § 19-4117.

14-235-212. Contracting with other political subdivisions.

      1. Any municipality operating a sewage collection system or sewage disposal works as defined in this subchapter or which, as provided in this subchapter, has ordered the construction or acquisition of such works, in this section called the “owner”, is authorized to contract with one (1) or more other cities, towns, or political subdivisions within the state, in this section called the “lessee”.
      2. The lessees are authorized to enter into contracts with the owners, for the service of such works to the lessees and their inhabitants, but only to the extent of the capacity of the works without impairing the usefulness of them to the owners, upon such terms and conditions as may be fixed by the sewer committee or sanitary board and approved by ordinance of the respective contracting parties.
    1. No such contract shall be made for a period of more than thirty (30) years, in violation of an ordinance authorizing bonds under this subchapter, or in violation of the trust indenture.
    1. The lessee shall, by ordinance, have power to establish, change, and adjust, so far as will not impair the rights of bondholders, rates and charges for the service rendered by the works against the owners of the premises served, in the manner provided in § 14-235-223 for establishing, changing, and adjusting rates and charges for the service rendered in the municipality where the works are owned and operated, and the rates or charges shall be collectible and shall be a lien as provided in § 14-235-223 for rates and charges made by the owner.
    2. The necessary intercepting sewers and appurtenant works for connecting the works of the owner with the sewerage system of the lessee shall be constructed by the owner or the lessee upon such terms and conditions as may be set forth in the contract, and the cost, or that part of the cost of them which is to be borne by the owner, may be paid as a part of the cost of the works from the proceeds of bonds issued under this subchapter unless otherwise provided by the ordinance or trust indenture prior to the issuance of the bonds.
    3. The income received by the owner under any such contract, if so provided in the ordinance or trust indenture, shall be deemed to be a part of the revenues of the works as defined in this subchapter and shall be applied as provided in this subchapter for the application of such revenues.

History. Acts 1933, No. 132, § 16; Pope's Dig., § 9992; A.S.A. 1947, § 19-4116; Acts 2013, No. 992, § 1.

Amendments. The 2013 amendment, in (a)(2), substituted “thirty (30) years” for “fifteen (15) years” and deleted “of the provisions” following “violation” twice.

14-235-213. Enactment of ordinance before construction or acquisition.

Before any municipality shall construct or acquire any works under this subchapter, the municipal council shall enact ordinances which shall:

  1. Set forth:
    1. A brief and general description of the works proposed to be constructed or purchased; and
    2. If the works are to be constructed, a reference to the preliminary report or plans and specifications which shall theretofore have been prepared and filed with the clerk or recorder by an engineer chosen by such council;
  2. Set forth:
    1. The cost of the works estimated by the engineer chosen as prescribed; or
    2. The purchase price if the works are to be purchased;
  3. Order the construction or acquisition of the works, in which connection the ordinance will recite that the terms of the construction or acquisition, so far as they are not set out in the ordinance, will thereafter be fixed by the council or sewer committee;
  4. State the names of the members of the sewer committee to have charge of the works and the construction or acquisition of them;
  5. Direct that revenue bonds of the municipality shall be issued pursuant to this subchapter in such an amount as may be found necessary to pay the cost of the works; and
  6. Contain such other provisions as may be necessary in the premises.

History. Acts 1933, No. 132, § 4; Pope's Dig., § 9980; A.S.A. 1947, § 19-4104.

Case Notes

Connections to System.

An ordinance requiring property owners to connect with a sewer system is valid if there is a declaration by city board of health or some constituted health authority that existing facilities are inadequate and require the construction and operation of sewerage system. Mountain Home v. Ray, 223 Ark. 553, 267 S.W.2d 503 (1954).

Construction Contracts.

City commissioners had power to contract for construction of sewage disposal plant by lowest responsible bidder in conformity with this subchapter; their powers, in the premises, are largely discretionary, and unless abused, injunctive relief will not be granted. Johnson v. Russell, 198 Ark. 49, 127 S.W.2d 260 (1939).

Invalid Ordinances.

Ordinance providing for issuance of revenue bonds under authority of statute authorizing issuance of such bonds for construction of waterworks to obtain funds for extension of city's waterworks system and also of sewage system was held not valid. Mathers v. Moss, 202 Ark. 554, 151 S.W.2d 660 (1941).

Petitions.

Petition is not a condition precedent to action on part of the city council in enacting ordinance providing for issuance of revenue bonds for construction of sewage disposal plant and resolution approving bid, such action being distinctly legislative, and not the exercise of a mere ministerial function. Carpenter v. City of Paragould, 198 Ark. 454, 128 S.W.2d 980 (1939).

Referendum.

Citizens have constitutional right to have ordinance providing for issuance of revenue bonds for cost of sewage disposal plant for city and resolution accepting bid for the improvement referred to the people of the city for a vote. Carpenter v. City of Paragould, 198 Ark. 454, 128 S.W.2d 980 (1939).

The action of a city council in enacting sewer ordinances is legislative and therefore subject to a referendum and the vote of all the electorate of a city under Ark. Const. Amend. 7. Lawrence v. Jones, 228 Ark. 1136, 313 S.W.2d 228 (1958).

14-235-214. Cost of works.

The cost of works under this subchapter shall be deemed to include:

  1. The cost of acquisition or construction of them;
  2. The cost of all property, rights, easements, and franchises deemed necessary or convenient for them and for the improvements determined upon as provided in § 14-235-210;
  3. Interest upon bonds prior to and during construction or acquisition and for six (6) months after completion of construction or of acquisition of the improvements mentioned;
  4. Engineering and legal expenses;
  5. Expense for estimates of cost and of revenues;
  6. Expense for plans, specifications, and surveys;
  7. Other expenses necessary or incident to determining the feasibility or practicability of the enterprise;
  8. Administrative expense; and
  9. Such other expenses as may be necessary or incident to the financing authorized in this subchapter and the construction or acquisition of the works and the placing of the works in operation and the performance of the things required in this subchapter or permitted in connection with any of it.

History. Acts 1933, No. 132, § 6; Pope's Dig., § 9982; A.S.A. 1947, § 19-4106.

14-235-215. Issuance of revenue bonds and notes generally.

    1. Nothing contained in this subchapter shall be so construed as to authorize or permit any municipality to make any contract or to incur any obligation of any kind or nature except such as shall be payable solely from the funds provided under the authority of this subchapter.
        1. Funds for the payment of the entire cost of the works and for the payment of any extraordinary expenses or liabilities arising from the ownership and operation of the works including, without limitation, liabilities to customers of the works relating to rates charged by the municipality for use of the works shall be provided by funds derived from the operation of the works, by funds of the municipality appropriated for that purpose, and by the issuance of municipal revenue bonds, the principal and interest of which shall be payable solely from the special fund provided in § 14-235-221 for payment.
        2. The bonds shall not, in any respect, be a corporate indebtedness of the municipality within the meaning of any statutory or constitutional limitations on them.
      1. All the details of the bonds shall be determined by ordinance of the municipality.
      1. Any municipality owning or operating a sewage system, however constructed or acquired, and desiring to construct improvements and betterments to it, may borrow money to be used for these purposes, to refinance or retire existing indebtedness related to the sewage system, or to provide funds for preliminary expense prior to the issuance of revenue bonds or to provide interim financing pending receipt of federal or state grant-in-aid of loan disbursements.
      2. Such a loan shall be evidenced by revenue promissory notes as set out in this section.
    1. The money so borrowed shall be deposited in a revenue note fund and shall be used solely for the purposes authorized in this section.
    2. The notes evidencing the loan shall be authorized by the legislative body of the municipality and shall be due in not exceeding five (5) years from date and shall bear interest at such rate or rates as provided in the ordinance authorizing their issuance, interest being payable semiannually.
      1. The note or notes shall be payable solely from the revenues derived from the sewage system and shall not, in any event, constitute an indebtedness of the municipality within the meaning of the constitutional provisions or limitations.
      2. It shall be plainly stated on the face of each note that the same has been issued under the provisions of this subchapter and that it does not constitute an indebtedness of the municipality within any constitutional or statutory limitations.
    3. The notes shall be subordinate to any outstanding revenue bonds theretofore issued by the municipality.
      1. It shall be no objection to the subsequent issue of any revenue bonds that a portion of the proceeds received from the sale of the revenue bonds is to be used to retire the indebtedness permitted by this section.
      2. If the proceeds of the bonds are so used, then the improvements constructed or purchased with the proceeds of the loan authorized by this section shall be considered to be a portion of improvements constructed or purchased with the revenue bonds subsequently issued.
    4. All interest paid on the revenue bonds shall be exempt from State of Arkansas income tax.

History. Acts 1933, No. 132, § 7; Pope's Dig., § 9983; Acts 1975, No. 401, § 1; 1979, No. 528, § 1; 1981, No. 425, § 17; A.S.A. 1947, § 19-4107; Acts 1987, No. 86, § 1; 1989, No. 254, § 2.

Publisher's Notes. Acts 1979, No. 528, § 4, provided:

“Nothing set forth in this act shall be construed to affect bonds previously issued or other obligations previously incurred under Act No. 132 of 1933, as amended, which obligations are ratified and confirmed.”

Acts 1987, No. 86, § 2, provided that it is the purpose of this act to enable cities and towns to issue revenue bonds to finance extraordinary expenses or liabilities arising from the ownership and operation of a municipal sewer system, and these purposes were declared by the General Assembly to be public purposes for which revenue bonds may be issued under Ark. Const. Amend. 65.

Case Notes

Constitutionality.

Issuance of revenue bonds for improvement of sewer system was not invalid on the ground that requirements set forth in former Ark. Const. Amend. 13 (repealed) were not followed, since bonds were issued pursuant to authority of this section and not under the procedure outlined in former Ark. Const. Amend. 13 (repealed), which applied only to issuance of municipal bonds secured by property tax, and not to bonds secured by revenue derived from operation of sewage system. Boswell v. City of Russellville, 223 Ark. 284, 265 S.W.2d 533 (1954).

Power to Issue.

Incorporated towns or cities have the exclusive power to issue bonds to raise funds to enlarge their water or sewer system. Portis v. Board of Pub. Utils., 213 Ark. 201, 209 S.W.2d 864 (1948).

14-235-216. Terms, execution, and sale of bonds.

    1. Revenue bonds issued under this subchapter shall bear interest at such rate or rates, payable annually or at shorter intervals, and shall mature at such time or times as may be determined by ordinance.
    2. The bonds may be made redeemable before maturity, at the option of the municipality, to be exercised by the sewer committee, at not more than the par value thereof and a premium of five percent (5%), under such terms and conditions as may be fixed by the ordinance authorizing the issuance of the bonds.
    3. The principal and interest of the bonds may be made payable in any lawful medium.
    4. The ordinance shall determine the form of the bonds, including the interest coupons to be attached to them, and shall fix the denomination or denominations of the bonds and the place or places of payment of the principal and interest of them, which may be at any bank or trust company within or without the state.
    5. The bonds shall contain a statement on their face that the municipality shall not be obligated to pay them or the interest on them except from the special fund provided from the net revenues of the works.
    6. All such bonds shall be, shall have, and are declared to have all the qualities and incidents of negotiable instruments under the negotiable instruments laws of the state.
      1. The bonds shall be exempt from all taxation, state, county, and municipal.
      2. This exemption shall include income taxation and inheritance taxation, as well as all forms of property taxation.
    7. Provisions may be made for the registration of any of the bonds in the name of the owner as to principal alone.
  1. Bonds shall be executed in the same manner as other bonds issued by municipalities are executed.
    1. The bonds shall be sold by the sewer committee in such manner as may be determined to be for the best interests of the municipality and subject to the approval of the municipal council or the committee.
    2. Any surplus of bond proceeds over and above the cost of the works shall be paid into the sinking fund provided for in § 14-235-221.
    3. If the proceeds of the bonds, by error or calculation or otherwise, shall be less than the cost of the works, additional bonds may in like manner, be issued to provide the amount of the deficit and, unless otherwise provided in the ordinance authorizing the issuance of the bonds first issued or in the trust indenture executed in connection with them, shall be deemed to be the same issue as the antecedent bonds, secured by a lien of equal rank and in all other respects upon a parity with them.
    4. Prior to the preparation of the definitive bonds, temporary bonds may, under like restrictions, be issued with or without coupons, exchangeable for definitive bonds upon the issuance of the latter.

History. Acts 1933, No. 132, § 8; Pope's Dig., § 9984; Acts 1970 (Ex. Sess.), No. 46, § 1; 1975, No. 225, § 17; 1981, No. 425, § 17; A.S.A. 1947, § 19-4108.

Case Notes

Purpose of Issue.

In proceeding by city to collect delinquent sewer assessments, the defendants could not defend on ground that voters were misled by false advertising as to manner in which proceeds of bond issue were to be spent, since it was not a jurisdictional matter. Boswell v. City of Russellville, 223 Ark. 284, 265 S.W.2d 533 (1954).

14-235-217. Additional bonds authorized.

  1. The municipal council or sewer committee may provide by the ordinance authorizing the issuance of the bonds, or in the trust indenture executed in connection with it, that additional bonds may thereafter be authorized and issued, at one time or from time to time, under such limitations and restrictions as may be set forth in the ordinance or trust indenture, for the purpose of extending, improving, or bettering the works authorized under this subchapter when deemed necessary in the public interest.
  2. Unless otherwise provided in the ordinance or in the trust indenture executed pursuant to it, the additional bonds will be secured and be payable from the revenues of the works equally with all other bonds issued pursuant to the ordinance, without preference or distinction between any one (1) bond and any other bond by reason of priority of issuance or otherwise. However, any provisions of the ordinance or trust indenture subordinating the lien of subsequent issues, or otherwise regulating the priorities as between successive issues, will be controlling.

History. Acts 1933, No. 132, § 9; Pope's Dig., § 9985; A.S.A. 1947, § 19-4109.

Case Notes

Connection with Other Districts.

This section authorizes a city to issue bonds for additional sewer mains and plants to connect with and dispose of sewage from mains built and owned by an improvement district and not owned by the city itself. Freeman v. Jones, 189 Ark. 815, 75 S.W.2d 226 (1934).

14-235-218. Issuance of additional bonds.

Nothing contained in this subchapter shall prevent the issuance of additional bonds, from time to time, if the bonds shall be authorized by law. However, all such additional bonds shall be subordinate to bonds issued pursuant to §§ 14-235-21514-235-217 in respect to the application of revenues to such additional bonds unless the additional bonds consist of revenue bonds issued under this subchapter, the issuance of which was expressly authorized in the ordinance or indenture governing prior bonds of similar character. In this event, the additional bonds and such prior bonds will have a parity of lien unless the governing ordinance or indenture shall provide to the contrary.

History. Acts 1933, No. 132, § 18; Pope's Dig., § 9994; A.S.A. 1947, § 19-4118.

14-235-219. Securing of bonds by trust indenture.

    1. In the discretion of the municipal council or sewer committee, bonds issued under this subchapter may be secured by a trust indenture by and between the municipality and a corporate trustee, which may be any domestic or nonresident trust company or bank having the powers of a trust company.
    2. The trust indenture may convey or mortgage the works or any part of it.
  1. The ordinance authorizing the revenue bonds and fixing the details of it may provide that the trust indenture may contain such provisions for protecting and enforcing the rights and remedies of the bondholders as may be reasonable and proper, not in violation of law, including covenants setting forth the duties of the municipality and the committee in relation to the construction or acquisition of the works and the improvement, operation, repair, maintenance, and insurance of them, and the custody, safeguarding, and application of all moneys, and may provide that the works shall be contracted for, constructed, and paid for under the supervision and approval of consulting engineers employed or designated by the committee and satisfactory to the original bond purchasers, successors, assigns, or nominees. The bond purchasers, etc. may be given the right to require that the security given by contractors and by any depository of the proceeds of bonds or revenues of the works or other moneys pertaining to them be satisfactory to the purchasers, successors, assigns, or nominees.
  2. The indenture may set forth the rights and remedies of the bondholders or the trustee, restricting the individual right of action of bondholders as is customary in trust indentures securing bonds and debentures of corporations.
  3. Except as otherwise provided in this subchapter, the council or committee may provide by ordinance, or in the trust indenture, for the payment of the proceeds of the sale of the bonds and the revenues of the works to such officer, board, or depository as it may determine for the custody of them and for the method of disbursement of them, with such safeguards and restrictions as it may determine.

History. Acts 1933, No. 132, § 11; Pope's Dig., § 9987; A.S.A. 1947, § 19-4111.

14-235-220. Enforcement of rights by bondholders or trustee.

    1. Any holder of any bonds issued under this subchapter, or any of the coupons attached to them, and the trustee, if any, except to the extent the rights given in this subchapter may be restricted by the ordinance authorizing issuance of the bonds or by the trust indenture, may either, at law or in equity, by suit, action, mandamus, or other proceeding, protect and enforce any and all rights granted under this subchapter or under the ordinance or trust indenture.
    2. A bondholder or trustee may enforce and compel performance of all duties required by this subchapter or by the ordinance or trust indenture to be performed by the municipality issuing the bonds or by the sewer committee or any officer, including the making and collecting of reasonable and sufficient charges and rates for service rendered by the works.
  1. If there is any failure to pay the principal or interest of any of the bonds on the date named for payment, any court having jurisdiction of the action may appoint a receiver to administer the works on behalf of the municipality and the bondholders or trustee, except as so restricted, with power to charge and collect, or, by mandatory injunction or otherwise, to cause to be charged and collected, rates sufficient to provide for the payment of the expenses of operation, repair, and maintenance and also to pay any bonds and interest outstanding and to apply the revenue in conformity with this subchapter and the ordinance or trust indenture.

History. Acts 1933, No. 132, § 19; Pope's Dig., § 9995; A.S.A. 1947, § 19-4119.

14-235-221. Sinking fund to pay bonds and interest.

    1. At or before the issuance of any bonds under this subchapter, the municipal council shall, by ordinance, create a sinking fund for the payment of the bonds and the interest on them and the payment of the charges of banks or trust companies for making payment of the bonds or interest and shall set aside and pledge a sufficient amount of the net revenues of the works, meaning the revenues of the works remaining after the payment of the reasonable expense of operation, repair, and maintenance.
      1. This amount shall be paid by the sewer committee into the sinking fund at intervals to be determined by ordinance prior to issuance of the bonds, for:
        1. The interest upon the bonds as interest shall fall due;
        2. The necessary fiscal agency charges for paying bonds and interest;
        3. The payment of the bonds as they fall due, or, if all bonds mature at one time, the proper maintenance of a sinking fund sufficient for the payment of them at such time; and
        4. A margin for safety and for the payment of premiums upon bonds retired by call or purchase as provided in this subchapter, which margin, together with any unused surplus of such margin carried forward from the preceding year, shall equal ten percent (10%) of all other amounts so required to be paid into the sinking fund.
      2. Required payments shall constitute a first charge upon all the net revenues of the works.
    1. Prior to the issuance of the bonds, the committee, by ordinance, may be given the right to use or direct the trustee to use the sinking fund, or any part of it, in the purchase of any of the outstanding bonds payable from it at the market price of them but not exceeding the price, if any, at which they shall, in the same year, be payable or redeemable, and all bonds redeemed or purchased shall be cancelled and shall not again be issued.
    2. After the payments into the sinking fund as required in this section, the committee, at any time, in its discretion, may transfer all, or any part, of the balance of the net revenues after reserving an amount deemed by the committee sufficient for operation, repair, and maintenance for an ensuing period of not less than twelve (12) months and for depreciation, into the sinking fund or into a fund for extensions, betterments, and additions to the works.

History. Acts 1933, No. 132, § 12; Pope's Dig., § 9988; A.S.A. 1947, § 19-4112.

14-235-222. Allocation of funds from bonds and revenues.

      1. Any specified portion of the proceeds of an issue of bonds authorized under this subchapter may be allocated by the municipal council to any particular project, or to new construction, as distinguished from the purchase of works already constructed, or vice versa.
        1. After such allocation, the designated portion of the proceeds of the bond issue shall be kept separate and apart from the remaining proceeds and shall be held by the municipality in trust for the performance of the purposes specified, and none other.
        2. The diversion of the funds to any other purpose may be enjoined on the suit of the trustee under the indenture securing the bonds, or on the suit of any of the bondholders, or on the suit of any person whose property, under the ordinance of the council, is to be served by the proposed works.
    1. In making the allocation, the council will be controlled by the engineer's estimate of cost referred to in the initial ordinance.
      1. In the event of such allocation or proceeds, the bonds themselves may be similarly and correspondingly segregated and allocated to the respective purposes of the issue.
      2. Bonds segregated and allocated to one purpose, from the standpoint of legality and in all other respects, shall be deemed to have been issued to finance such purpose, and that alone.
      1. Notwithstanding such allocation and segregation, all bonds of the entire issue, unless the initial ordinance and the indenture securing the bonds shall provide to the contrary, will be secured ratably and equally by the revenues of the entire and aggregate works financed by the bond issue.
      2. Unless the ordinance and indenture shall so specifically provide, the allocation of bond proceeds or segregation of bonds mentioned will never have the effect of allocating the revenues from any particular portion of the authorized works exclusively to any particular bonds.

History. Acts 1933, No. 132, § 10; Pope's Dig., § 9986; A.S.A. 1947, § 19-4110.

Case Notes

Assignments.

Subcontractor has a right against a bank to have money deposited in it as a sewer construction fund impounded where a contractor has assigned to the subcontractor money allegedly due from such fund. Robinson v. City of Pine Bluff, 224 Ark. 791, 276 S.W.2d 419 (1955).

Refunds.

No refunds were required where there had not been a proper audit and accounting of the affairs of the sewer district, it would cost more than the amount of money on hand to have an accounting for refund purposes, the city already spent far more than such sum turned over to it in maintaining the system, the city having been operating and maintaining this system out of general revenues with no expenses to the district, and the desire for audit of the accounts was made after the retirement of the bonds issued for the maintenance of the sewer. Lawrence v. Jones, 228 Ark. 1136, 313 S.W.2d 228 (1958).

Scope.

This section contemplates that revenue bonds authorized to construct sewers will be paid from the revenues derived from that service and nothing in this subchapter authorizes any part of the revenues derived from the system to be devoted and appropriated to pay the cost of construction or operation of waterworks system. Mathers v. Moss, 202 Ark. 554, 151 S.W.2d 660 (1941).

14-235-223. Rates and charges for services — Lien.

    1. The council of the municipality shall have power, and it shall be its duty, by ordinance to establish and maintain just and equitable rates or charges for the use of and the service rendered by the works, to be paid by each user of the sewerage system of the municipality.
    2. The council may change and readjust the rates or charges from time to time to such extent as will not render insecure the rights of the holders of revenue bonds or violate any sinking fund agreement, or other lawful agreement, with such bondholders.
  1. The rates or charges shall be sufficient in each year for the payment of the proper and reasonable expense of operation, repair, replacements, and maintenance of the works and for the payment of the sums required in this subchapter to be paid into the sinking fund.
  2. Revenues collected pursuant to this section shall be deemed the revenues of the works.
      1. No rates or charges shall be established until after a public hearing, at which all the users of the works and owners of property served or to be served by them and others interested shall have opportunity to be heard concerning the proposed rates or charges.
      2. After introduction of the ordinance fixing the rates or charges, and before the ordinance is finally enacted, notice of the hearing, setting forth the proposed schedule of the rates or charges, shall be given by one (1) publication in a newspaper published in the municipality if there is such a newspaper, but otherwise in a newspaper having general circulation in the municipality, at least ten (10) days before the date fixed in the notice for the hearing, which may be adjourned from time to time.
    1. After the hearing the ordinance establishing rates or charges, either as originally introduced or as modified and amended, shall be passed and put into effect.
  3. A copy of the schedule of the rates and charges established shall be kept on file in the office of the sewer committee having charge of the operation of the works, and also in the office of the municipal clerk or recorder, and shall be open to inspection by all parties interested.
    1. The rates or charges so established for any class of users or property served shall be extended to cover any additional premises thereafter served which fall within the same class, without the necessity of any hearing or notice.
      1. Any change or readjustment of the rates or charges may be made in the same manner as the rates or charges were originally established as provided in this section.
      2. If the change or readjustment is made substantially pro rata as to all classes of service, no hearing or notice shall be required.
  4. The aggregate of the rates or charges shall always be sufficient for the expense of operation, repair, and maintenance and for the sinking fund payments.
  5. If any service rate or charge established shall not be paid within thirty (30) days after it is due, the amount of it, together with a penalty of ten percent (10%) and a reasonable attorney's fee, may be recovered by the sewer committee in a chancery suit, filed in the chancery court of the county where the works, or the greater part of them, shall be located, in the name of the municipality or in the name of the trustee under the indenture securing the revenue bonds, or in the name of the bondholders, to such extent as their right to sue in their own name may be permitted under the trust indenture.

History. Acts 1933, No. 132, § 13; Pope's Dig., § 9989; Acts 1985, No. 290, § 1; A.S.A. 1947, § 19-4113.

Cross References. Rate-making authority, § 23-4-201.

Case Notes

In General.

This section is not objectionable as requiring the owner to discharge another's obligation. Jernigan v. Harris, 187 Ark. 705, 62 S.W.2d 5 (1933).

Illegal Extraction.

Stormwater utility fee was not an illegal extraction because subdivision (a)(1) of this section did not state that the fee had to be paid by any beneficiary, whether intended or unintended, of the sewerage system, and the code did not define “sewerage system” to distinguish between the wastewater sewer system and the stormwater sewer system. Morningstar v. Bush, 2011 Ark. 350, 383 S.W.3d 840 (2011).

Late Fees.

When subdivision (a)(1) of this section is construed liberally, as § 14-235-202 instructs, cities have the implied authority to establish a late fee as a “rate or charge” under this section. Davis v. City of Blytheville, 2015 Ark. 482, 478 S.W.3d 214 (2015).

Summary judgment was properly granted to a city because a water department's charging of late fees on overdue accounts pursuant to ordinances was not an ultra vires act; there was implied authority to establish a late fee as a rate or charge. Davis v. City of Blytheville, 2015 Ark. 482, 478 S.W.3d 214 (2015).

Subsection (h) of this section and § 14-234-602 do not limit the administrative power of a municipality to levy a fine or penalty against a person who has not paid his bill for water or sewer services as the exclusive remedy. Rather, these statutes give municipalities the additional authority to file suit in court and seek attorney's fees in litigation concerning the collection of those delinquent accounts. Davis v. City of Blytheville, 2015 Ark. 482, 478 S.W.3d 214 (2015).

Late fees charged by city water department on overdue accounts were not usurious, unreasonable, or an unconscionable penalty, and the statutory limits on penalties for violations of ordinances, set out in § 14-55-504, were not exceeded. Davis v. City of Blytheville, 2015 Ark. 482, 478 S.W.3d 214 (2015).

Notice.

Notice published 10 days before enactment of ordinance establishing rates for use of proposed sewage disposal plant is sufficient to advise property owners how they would be affected by the proposed rates. Carpenter v. City of Paragould, 198 Ark. 454, 128 S.W.2d 980 (1939).

Penalty.

Provisions if any service rate or charge should not be paid within 30 days after due a penalty and reasonable attorney's fee may be recovered by the sewer committee is penal in its nature and must be strictly construed; therefore the trial court will be granted a reasonable discretion in denying or allowing such penalty depending on the circumstances. Lamar Bath House Co. v. City of Hot Springs, 229 Ark. 214, 315 S.W.2d 884 (1958), appeal dismissed, 359 U.S. 534, 79 S. Ct. 1137 (1959).

Publication.

There is no constitutional provision or amendment which would allow a city to ignore this section and § 14-55-206 when establishing or changing its sewer rates. Invalidity of municipal ordinance for failure to comply with this section and § 14-55-206 was not cured by subsequent publication of ordinance. City of Ft. Smith v. O.K. Foods, Inc., 293 Ark. 379, 738 S.W.2d 96 (1987).

Rate-Making.

Ordinance establishing rates for the use of proposed sewage disposal plant was held properly enacted though introduced at a special meeting of the council not called for that purpose. Carpenter v. City of Paragould, 198 Ark. 454, 128 S.W.2d 980 (1939).

Rate-making being a legislative act, unless the city council has acted arbitrarily and unreasonably in fixing its rates, there is a prima facie presumption in favor of their correctness, and the burden is on complainant to show otherwise. Lawrence v. Jones, 228 Ark. 1136, 313 S.W.2d 228 (1958).

City did not have alternative authority to change its sewer rates under § 14-200-101 et seq. and ignore the pre-enactment notice and public hearing requirements of this section. City of Ft. Smith v. O.K. Foods, Inc., 293 Ark. 379, 738 S.W.2d 96 (1987).

Referendum.

The action of a city council in enacting sewer ordinances is legislative and therefore subject to a referendum and the vote of all the electorate as a city under Ark. Const. Amend. 7. Lawrence v. Jones, 228 Ark. 1136, 313 S.W.2d 228 (1958).

Refunds.

Customers were entitled to refund of all the increased sewer charges paid pursuant to a municipal ordinance which was invalid because the city failed to comply with the requirements of this section and § 14-55-206. City of Ft. Smith v. O.K. Foods, Inc., 293 Ark. 379, 738 S.W.2d 96 (1987).

14-235-224. Service payments by municipalities.

  1. A municipality shall be subject to the same charges and rates established as provided in § 14-235-223, or to charges and rates established in harmony with them, for service rendered the municipality and shall pay the rates or charges when due from corporate funds.
  2. The payments shall be deemed to be a part of the revenues of the works as defined in this subchapter and shall be applied as provided in this subchapter for the application of such revenues.

History. Acts 1933, No. 132, § 14; Pope's Dig., § 9990; A.S.A. 1947, § 19-4114.

14-235-225. Authority for joint undertaking.

  1. Any city of the first class having a city manager form of government and divided by a state line shall have the authority to join in the purchase, construction, and operation of a sewage system with the adjoining city in another state for each of the municipalities, and to execute an agreement for the joint obligation of the municipalities and secure the payment thereof by a joint pledge of the net revenues derived from the operation of the sewage systems.
  2. The municipalities shall employ a joint manager for the operation of the sewage system who shall be hired by the city managers of the municipalities and who shall serve under the direct supervision of the city managers jointly.

History. Acts 1989, No. 607, § 2.

A.C.R.C. Notes. References to “this subchapter” in §§ 14-235-20114-235-224 may not apply to this section which was enacted subsequently.

14-235-226. Public improvements — Award procedure — Definitions.

  1. As used in this section:
    1. “Design-build” means a project delivery method in which the municipal sewage system acquires both design and construction services in the same contract from a single legal entity, referred to as the “design-builder”, through a two-step procurement process in which the:
      1. First step is based on qualifications; and
      2. Second step is based on best value to the municipal sewage system as defined by:
        1. Lowest capital cost;
        2. Lowest life-cycle cost; or
        3. A combination of lowest capital cost and lowest life-cycle cost;
    2. “Design-builder” means an individual, partnership, joint venture, corporation, or other legal entity licensed in this state that furnishes the necessary design services and construction itself or through subcontracts; and
      1. “General contractor construction management” means a project delivery method acquired through a qualifications-based selection process in which the municipal sewage system acquires from a construction entity a series of preconstruction phase services, including without limitation design review, scheduling, cost control, value engineering, constructability and biddability evaluation, and preparation and coordination of bid packages.
        1. After the completion of the preconstruction phase services, the construction entity serves as the general contractor.
        2. The general contractor under subdivision (a)(3)(B)(i) of this section shall hold all trade contracts and purchase orders and shall bond and guarantee the project after providing a maximum guaranteed price, unless the general contractor and municipal sewage system are unable to mutually agree on a maximum guaranteed price for the project construction, which shall require the project construction to be competitively bid as provided by law.
    1. In addition to other applicable law on a municipal sewage system's procurement authority, a municipal sewage system created and operating under this subchapter that employs or contracts with a licensed professional engineer to assist in project-scope development and to oversee construction observation for the benefit of the owner may use design-build construction for projects that exceed two million dollars ($2,000,000).
    2. In addition to other applicable law on a municipal sewage system's procurement authority, a municipal sewage system created and operating under this subchapter may use general contractor construction management as a project delivery method for projects of any amount for building, altering, repairing, improving, maintaining, or demolishing any structure associated with the municipal sewage system.
    3. The design-builder shall contract directly with subcontractors and shall be responsible for the bonding of the project.
    4. A project using design-build construction or general contractor construction management shall comply with state and federal law.

History. Acts 2017, No. 627, § 1.

Subchapter 3 — Sewer Connections by Property Owners

Effective Dates. Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

14-235-301. Penalties.

    1. It is declared a misdemeanor for any person to:
      1. Injure, damage, or destroy any public sewer; or
      2. Fail or refuse to connect with or tap the sewers of a municipality within the time prescribed by an ordinance of the municipality.
      1. Any person so offending shall be punished on conviction by fine or imprisonment, or both, at the discretion of the court, in any sum not more than five hundred dollars ($500) and for a period not longer than six (6) months.
        1. An offender shall also be liable for all damages which shall be found by the jury.
        2. The sum so found, judgment shall be rendered in favor of the municipality, and execution shall issue on it as on other judgments at law.
    1. A city council shall have power by ordinance to compel all sewers built by private parties to be kept clean and in repair, by fine and punishment of the party in possession as owner or lessee of the property where the sewer is situated.
    2. The fine shall not exceed fifty dollars ($50.00) for any one (1) neglect, nor shall the imprisonment be more than ninety (90) days.

History. Acts 1881, No. 84, § 18, p. 161; 1907, No. 346, § 1, p. 834; C. & M. Dig., §§ 7542, 7543; Pope's Dig., §§ 9617, 9618; A.S.A. 1947, §§ 19-4129, 19-4130; Acts 2005, No. 279, § 1.

Amendments. The 2005 amendment rewrote (a)(1); and deleted “or under the direction of the municipal board of health” following “private parties” in (b)(1).

Meaning of “this act”. Acts 1881, No. 84, codified as §§ 14-88-101, 14-88-202, 14-88-204, 14-88-302, 14-88-30514-88-308, 14-88-311, 14-88-403, 14-88-502, 14-89-201, 14-89-1001, 14-89-1002, 14-90-101, 14-90-201, 14-90-302, 14-90-403, 14-90-701, 14-90-80114-90-805, 14-90-902, 14-90-903, 14-90-916, 14-90-100114-90-1003, 14-90-1005, 14-90-1006, 14-90-110114-90-1106, 14-90-1108, 14-90-120114-90-1204, 14-90-1302, 14-90-1303, 14-91-101, 14-91-10414-91-107, 14-91-201, and 14-235-30114-235-305.

14-235-302. Ordering property owners to connect.

  1. After the completion of any sewer or branch sewer authorized to be built under the provisions of this act, it shall be lawful for any municipality to which this act is applicable, whenever in its opinion the public health will be promoted by it, to order any one (1) or more property owners near or adjacent to any sewer to construct upon their property sewers leading from some point or place on their premises to the sewer of the municipality for the purpose of:
    1. Draining off surface or other water; and
    2. Conducting any excrement that may be at or about the premises and filth of every nature, character, and description into the sewers belonging to the municipality.
  2. In the order issued to construct the sewers for the purpose presented, the time within which they are to be completed, the nature and character of the material to be used in the construction of them, and the place of tapping the sewers of the municipality shall be designated, as well as the manner of doing it.

History. Acts 1881, No. 84, § 18, p. 161; C. & M. Dig., § 7537; Pope's Dig., § 9612; A.S.A. 1947, § 19-4125; Acts 2005, No. 279, § 2.

Amendments. The 2005 amendment deleted “the board of health of” following “it shall be lawful for” in (a).

Meaning of “this act”. See note to § 14-235-301.

Cross References. Authority to require drainage of land, § 14-54-602.

Case Notes

Order of Board.

The board of health may direct property owners to make connections with adjacent sewers, with a provision that, upon their failure to make such connection, it shall be the duty of the board of health to have it made and to charge the property therewith, and to enforce payment of the cost against the property by suit in chancery court. Jernigan v. Harris, 187 Ark. 705, 62 S.W.2d 5 (1933).

Cited: Short v. Smithy, 224 Ark. 363, 273 S.W.2d 393 (1954).

14-235-303. Refusal of owner to connect.

    1. If the owner of property shall fail, neglect, or refuse to connect the sewer as ordered in § 14-235-302 within the time prescribed in the order, unless further time is granted for the completion of the sewer, it shall be the duty of the municipality to cause the sewer to be constructed, by contract or otherwise, in as economic and substantial a manner as may be practicable.
    2. For that purpose, the municipality is authorized to enter upon, by its agents, contractors, and employees, any property on which they may order a sewer to be constructed, doing as little damage as possible.
    1. When the construction has been completed and the cost ascertained, it shall become a charge and a lien upon the property.
      1. The municipality is authorized and empowered to institute suit in any court having jurisdiction to enforce liens against real property, in the manner designated in § 14-90-1002 for the commencement of suits by the board of improvement, for the purpose of making the property chargeable for the lien provided in this section and the amount of the construction of the sewer, together with a twenty percent (20%) penalty for noncompliance with the order of the municipality.
        1. When a decree has been obtained, the property shall be ordered sold in the manner provided in § 14-90-1101 et seq. and § 14-90-1201 et seq. for the sale of property.
        2. All appeals to the Supreme Court or the Court of Appeals from decrees rendered against property under this section shall be prosecuted within the time and under the restrictions and limitations set forth in this act, and no injunction shall be issued by any court restraining the building of any sewer ordered by the municipality.
    1. All notices and summons required in this section shall be served in the manner provided in § 14-90-1003 against resident as well as nonresident owners of property.
      1. The court shall be open, as stated in § 14-90-1001.
      2. The same preference shall be given to suits commenced under this section.
      3. The same summary mode of proceeding shall be adopted in pleading and in all matters relating to the enforcement of the lien.

History. Acts 1881, No. 84, § 18, p. 161; C. & M. Dig., §§ 7538, 7539; Pope's Dig., §§ 9613, 9614; A.S.A. 1947, § 19-4126; Acts 2005, No. 279, § 3.

Amendments. The 2005 amendment substituted “municipality” for “municipal board of health” in (a)(1); substituted “municipality” for “board” in (a)(2), twice in (b)(2)(A), and (b)(2)(B)(ii); and inserted “or the Arkansas Court of Appeals” in (b)(2)(B)(ii).

Meaning of “this act”. See note to § 14-235-301.

Case Notes

Record of Proceedings.

It is necessary that the proceedings of the board of health be entered of record in order to bind the property owner. Dinning v. Moore, 90 Ark. 5, 117 S.W. 777 (1909).

14-235-304. Restrictions on connections.

This act does not authorize a municipal board of health to order or compel the building of a sewer by one (1) property owner:

  1. Over the property of another; or
    1. For a distance greater than three hundred feet (300') from the point where the sewer exits a building on the property owner's property through or into any street or alley to a place where a connection can be made with a sewer.
    2. A municipal board of health may order or compel the building of a sewer by a property owner under subdivision (2)(A) of this section only if the existing sewer on the property owner's property is the subject of an enforcement action by the Division of Environmental Quality or a prosecuting attorney.

History. Acts 1881, No. 84, § 18, p. 161; C. & M. Dig., § 7540; Pope's Dig., § 9615; A.S.A. 1947, § 19-4127; Acts 2013, No. 1470, § 1; 2019, No. 910, § 3038.

Amendments. The 2013 amendment substituted “This act does not” for “Nothing in this act shall be so construed as to” in the introductory paragraph; added subdivision designations in (2); rewrote (2)(A); and added (2)(B).

The 2019 amendment substituted “Division of Environmental Quality” for “Arkansas Department of Environmental Quality” in (2)(B).

Meaning of “this act”. See note to § 14-235-301.

Case Notes

Constitutionality.

This section is a valid enactment within the police power of the state. Bennett v. City of Hope, 204 Ark. 147, 161 S.W.2d 186 (1942).

Distance to Connection.

Ordinance attempting to require a property owner to connect with a sewer line though more than 300 feet from sewer connection was held invalid. Bennett v. City of Hope, 204 Ark. 147, 161 S.W.2d 186 (1942).

City could not prevent construction of building which the owner proposed to equip with approved toilet facilities where no sewer was provided within 300 feet therefrom, unless proposed construction was per se dangerous to public health and safety. Bennett v. City of Hope, 204 Ark. 147, 161 S.W.2d 186 (1942).

14-235-305. Tapping of sewers.

  1. The city council shall regulate, by ordinance, the terms, time, and manner, and the compensation which shall be paid by the private parties not building sewers under orders of the municipal board of health under this act, upon compliance with which the parties may tap the sewers of the municipality.
  2. No person shall be allowed to tap any sewer without paying in proportion to the value of his property to be benefited by it, as compared with the value of the property taxed in the district and the actual cost of the sewer.

History. Acts 1881, No. 84, § 18, p. 161; 1889, No. 18, § 4, p. 17; C. & M. Dig., § 7541; Pope's Dig., § 9616; A.S.A. 1947, § 19-4128.

Meaning of “this act”. See note to § 14-235-301.

Case Notes

Compliance Required.

A system of sewers constructed by private enterprise cannot connect with the sewer of a sewer improvement district until the former has complied with the terms of this section. Peay v. Kinsworthy, 126 Ark. 323, 190 S.W. 565 (1916).

Connection Charges.

The costs of connection apportioned on the basis of the total cost of the whole outfall system of the sewer district is equitable. Sloss v. Turner, 175 Ark. 994, 1 S.W.2d 993 (1928).

Implied Indemnity.

Allegations in third party complaint were sufficient to state a cause of action under law for implied indemnity despite exclusivity provisions of the Workers' Compensation Act as the facts pled were sufficient to bring the parties within the provisions of this section which created a special relationship between municipal employer of man killed when sewer-line trench collapsed, and third party independent contractor who dug the sewer-line trench by operation of law. By virtue of this section and the employer's policies, the construction necessary to connect homeowner's sewer to the city's main was under employer's supervision and control, and implicit in the terms of the special relationship was a duty by the employer to supervise and conduct the construction in such a way as to insure the safety of its employees and others working on the construction, including the implied promise that the employer would indemnify third party for any damages he is made to pay as a result of the employer's negligence. Smith v. Paragould Light & Water Comm'n, 303 Ark. 109, 793 S.W.2d 341 (1990).

Chapter 236 Arkansas Sewage Disposal Systems Act

Cross References. Local government reserve funds, § 14-73-101 et seq.

Wastewater treatment districts, § 14-250-101 et seq.

Effective Dates. Acts 1977, No. 402, § 17: July 1, 1977. Emergency clause provided: “It has been found and is declared by the General Assembly of the State of Arkansas that a large number of the citizens of this State are not serviced by community sewage disposal systems and are therefore required to install individual septic tank systems by necessity and that many such septic tank systems are not adequate and that legislation such as this is urgently needed to aid and assist the citizens of this State in obtaining and identifying proper septic tank systems. Therefore, an emergency is declared to exist, and this Act being necessary for the preservation of the public peace, health and safety, shall take effect and be in force on July 1, 1977.”

Acts 1981, No. 484, § 3: Mar. 13, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 402 of 1977 which prescribes certain minimum design, construction and installation standards for individual sewage disposal systems specifically exempted certain of such systems which were in existence on the effective date of this Act or which were installed in a subdivision wherein lots had been sold for use with individual sewage disposal systems prior to the effective date of this Act, or individual sewage disposal systems to be installed on a residential lot for which the Department of Health or its authorized agent has issued a construction permit on or before the effective date of this Act; that the Act neglected to exempt certain individual sewage disposal systems installed prior to the Act or specifically installed on a residential lot in a subdivision for which a master plan had been approved by the Department of Pollution Control and Ecology; that this Act is designed to include installations on lots in subdivisions which have been approved by the Department of Pollution Control and Ecology and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1983, No. 708, § 3: Mar. 23, 1983. Emergency clause provided: “It is hereby found and determined by the General Assembly that due to the types of soil in various areas of this State, individual sewage disposal systems adaptable to the soil of a certain area will not work satisfactorily in the soil of another area; that the future growth and expansion of the State is dependent upon the development of the necessary technology to provide a variety of individual sewage disposal systems adaptable to meet the different soil conditions that exist throughout the State; that the establishment of an Advisory Committee on Individual Sewage Disposal Systems is necessary to establish technical advice and assistance to the Division of Sanitarian Services of the Department of Health, and additional funds must be provided to enable the Division to offer leadership and technical assistance to encourage individual property owners to install sewage disposal systems that the Division has approved as being adaptable to the areas in which they are to be located; and that the immediate passage of this Act is necessary to accomplish such purpose. Therefore, an emergency is hereby declared to exist and this Act, being necessary for the preservation of the public peace, health, and safety, shall be in full force and effect from and after its approval.”

Acts 1987, No. 435, § 6: Mar. 26, 1987. Emergency clause provided: “It is hereby found and determined by the General Assembly that due to current revenue short falls the services offered by the Department of Health to the citizens of this state are threatened; that an equitable method of maintaining these services is to provide for additional fees to be paid by those citizens who request the assistance of the State Department of Health; that this act is designed to provide for the collection of additional fees and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after its passage and approval.”

Acts 1997, No. 179, § 38: Feb. 17, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 10 of the First Extraordinary Session of 1995 abolished the Joint Interim Committee on Public Health, Welfare, and Labor and in its place established the House Interim Committee and Senate Interim Committee on Public Health, Welfare, and Labor; that various sections of the Arkansas Code refer to the Joint Interim Committee on Public Health, Welfare, and Labor and should be corrected to refer to the House and Senate Interim Committees on Public Health, Welfare, and Labor; that this act so provides; and that this act should go into effect immediately in order to make the laws compatible as soon as possible. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

14-236-101. Title.

This chapter shall be known and may be cited as the “Arkansas Sewage Disposal Systems Act.”

History. Acts 1977, No. 402, § 1; A.S.A. 1947, § 19-5401.

14-236-102. Findings, policy, and intent.

  1. The General Assembly finds and determines that:
    1. Safe and adequate sewage disposal promotes the health and welfare of the citizens of this state by minimizing the exposure of the citizens, farm animals, domestic animals, fish, and wildlife of this state to human excreta and domestic wastes and thus minimizing the disease transmission potential of human excreta and domestic wastes, by minimizing the contamination of drinking water supplies and the hazards to recreational areas of this state, and by minimizing the pollution of other ground and surface waters of this state;
    2. Individual sewage disposal systems, when properly designed and constructed in suitable soils, provide renovation of waste water and inject the renovated waste water back into the hydrologic cycle;
    3. Community sewage systems are preferable for densely developed portions of cities, towns, subdivisions, mobile home parks, and other built up areas because the concentration of individual sewage disposal systems could increase the degree of contamination of local ground and surface waters and could increase the exposure of the citizens of this state to human excreta and other domestic wastes while community sewerage systems permit the location of sewage treatment and disposal facilities in areas remote from the population;
    4. In densely developed subdivisions located outside incorporated areas, property owners associations have been formed for the purpose of constructing and maintaining community sewage systems and that authorization from the state granting jurisdiction over nonincorporated community sewage systems is desirable to insure that the property owners associations shall qualify for state and federal assistance;
    5. In some areas of this state, the soil is not suitable for normal underground sewage disposal, and that the improper and unapproved construction or installation of individual septic systems has created conditions throughout the state that are dangerous to the public health of the citizens of Arkansas and has contributed to the devaluation of properties.
  2. Therefore, it is the public policy of this state and the purpose of this chapter to:
    1. Eliminate and prevent health hazards by regulating the location, design, construction, installation, operation, and maintenance of individual sewage disposal systems and the proper planning thereof, and to authorize the charging and collection of fees for the issuance of permits for the construction, installation, alteration, repair, extension, and operation of individual sewage disposal systems, and for the tests, designs, and inspections of the systems, and to prescribe penalties for violations;
    2. Require registration of all installers of individual sewage disposal systems by the Division of Sanitarian Services of the Department of Health, with the individual homeowner retaining all rights to install and repair his system in accordance with the provisions of this chapter;
    3. Encourage the use of community sewage systems when economically feasible wherever density of development or the lack of acceptable soils makes the renovation of waste water and the return of the renovated waste water to the hydrologic cycle by individual sewage disposal systems impractical;
    4. Encourage research and development by institutions, agencies of government, or persons to develop modifications to, or alternates for, septic tank systems which will be improvements to the systems, or which will make the systems applicable to soils not suitable for normal underground sewage disposal; and
    5. Permit the rules and regulations adopted pursuant to this chapter to be amended periodically to include therein such proposed modifications and alternates as are approved by the State Board of Health.
  3. Furthermore, it is the intent of this chapter to aid and assist the citizens of this state in obtaining safe and adequate individual sewage disposal systems.

History. Acts 1977, No. 402, § 2; A.S.A. 1947, § 19-5402.

14-236-103. Definitions.

As used in this chapter, unless the context otherwise requires:

  1. “Community sewage system” means any system, whether publicly or privately owned, serving two (2) or more individual lots, for the collection and disposal of sewage or industrial wastes of a liquid nature, including various devices for the treatment of the sewage or industrial wastes;
  2. “Department” means the Division of Environmental Health Protection of the Department of Health;
  3. “Homeowner” means a person who owns and occupies a building as his or her home;
  4. “Industrial wastes” means liquid wastes resulting from the processes employed in industrial and commercial establishments;
  5. “Individual sewage disposal system” means a single system of treatment tanks, disposal facilities, or both, used for the treatment of domestic sewage, exclusive of industrial wastes, serving only a single dwelling, office building, or industrial plant or institution;
  6. “Installer” means any person, firm, corporation, association, municipality, or governmental agency who for compensation constructs, installs, alters, or repairs individual sewage disposal systems for others;
  7. “Municipality” means a city, town, county, district, or other public body created by or pursuant to state law, or any combination thereof acting cooperatively or jointly;
  8. “Person” means any institution, public or private corporation, individual, partnership, or other entity;
  9. “Potable water” means water free from impurities in an amount sufficient to cause disease or harmful physiological effects, with the bacteriological and chemical quality conforming to applicable standards of the State Board of Health;
  10. “Property owners association” means an association created by and pursuant to state law and organized for the purpose of maintaining common facilities, including sewage disposal facilities in unincorporated subdivisions;
  11. “Domestic sewage” means all wastes discharging from sanitary conveniences and plumbing fixtures of a domestic nature, exclusive of industrial and commercial wastes;
  12. “Subdivision” means land divided or proposed to be divided for predominantly residential purposes into such parcels as required by local ordinances or, in the absence of local ordinances, the term “subdivision” means any land which is divided or proposed to be divided by a common owner or owners for predominantly residential purposes into three (3) or more lots or parcels, any of which contain less than three (3) acres, or into platted or unplatted units any of which contain less than three (3) acres, as a part of a uniform plan of development;
  13. “Authorized agent” means the sanitarian assigned to the county or local area by the Division of Environmental Health Protection of the Department of Health;
  14. “Designated representative” means a person designated by the authorized agent to make percolation tests, system designs, and inspections subject to the authorized agent's final approval. Designated representatives shall be registered professional engineers, registered land surveyors, licensed master plumbers, registered sanitarians, or other similarly qualified individuals holding current certificates from the State of Arkansas, and shall demonstrate to the satisfaction of the authorized agent prior to their designation as a designated representative their competency to make percolation tests, designs, and final inspections for individual sewage disposal systems in accordance with the rules and regulations promulgated pursuant to this chapter;
  15. “Alternate and experimental system” means a nonstandard individual sewage disposal system or treatment system which is classified as experimental in order to evaluate its potential effectiveness;
  16. “Septic tank manufacturer” means a person, firm, corporation, or association who manufactures septic tanks, package treatment plants, or other components for individual sewage disposal or treatment systems; and
  17. “Certified maintenance person” means an individual registered by the Department of Health to conduct assessments under this chapter.

History. Acts 1977, No. 402, § 3; A.S.A. 1947, § 19-5403; Acts 1987, No. 435, § 1; 2007, No. 939, § 1.

14-236-104. Certain individual systems excepted from chapter.

    1. No individual sewage disposal system in existence on July 1, 1977, nor any individual sewage disposal system installed after July 1, 1977, in a subdivision, wherein individual lots have been developed or sold for use with individual sewage disposal systems, for which a plat has been filed of record prior to July 1, 1977, shall be required to conform to more stringent specifications and requirements as to design, construction, density of improvements, lot size, and installation than those standards contained in any applicable, duly adopted, and published regulation in effect at the time of the platting of record of the subdivision.
    2. No individual sewage disposal system to be installed on a residential lot for which the Division of Environmental Health Protection of the Department of Health or its authorized agent has issued a construction permit on or before July 1, 1977, shall be required to conform to the design, construction, and installation provisions of this chapter, or any rules and regulations adopted pursuant thereto.
    3. In a subdivision for which a master plan has been approved by the Department of Health, the Arkansas Department of Environmental Quality, or the Division of Environmental Quality prior to July 1, 1977, or for which the Department of Health, the Arkansas Department of Environmental Quality, or the Division of Environmental Quality has otherwise previously issued its written approval for the installation of individual sewage disposal systems and where individual lots have been developed or sold in reliance upon the prior written approval, individual sewage disposal systems shall not be required to conform to more stringent specifications as to design, construction, and installation than those standards in effect at the time of or referred to in the prior written approval.
  1. However, any individual sewage disposal system which is determined by the Division of Environmental Health Protection of the Department of Health to be a health hazard or which constitutes a nuisance due to odor or unsightly appearance must conform with the provisions of this chapter and applicable rules and regulations within a reasonable time after notification that the determination has been made.
  2. The requirements of this chapter shall not apply to any individual sewage disposal system or alternate and experimental system which is situated on a tract of land ten (10) acres or larger, in which the field line or sewage disposal line is no closer than two hundred feet (200') to the property line.

History. Acts 1977, No. 402, §§ 7, 9; 1981, No. 484, § 1; A.S.A. 1947, §§ 19-5407, 19-5409; Acts 1987, No. 435, § 2; 1999, No. 1164, § 127; 2019, No. 910, § 3039.

Amendments. The 1999 amendment substituted “Arkansas Department of Environmental Quality” for “Department of Pollution Control and Ecology” in two places in (a)(3).

The 2019 amendment inserted “or the Division of Environmental Quality” twice in (a)(3).

14-236-105. Interpretation with other laws.

The provisions of any law or regulation of any municipality establishing standards affording greater protection to the public health or safety shall prevail within the jurisdiction of the municipality over the provisions of this chapter and rules adopted hereunder.

History. Acts 1977, No. 402, § 13; A.S.A. 1947, § 19-5413; Acts 2019, No. 315, § 1016.

Amendments. The 2019 amendment substituted “rules” for “regulations”.

14-236-106. Penalties.

    1. A person who shall willingly and knowingly violate the provisions of this chapter shall be liable to the party aggrieved or damaged by that violation for the cost of suit, including a reasonable attorney's fee, actual damages, and additional punitive damages equal to twenty-five percent (25%) of the damages proven by the aggrieved party, to be taxed by the court where the suit is heard on an original action, by appeal, or otherwise, and recovered by a suit at law in any court of competent jurisdiction. However, the party aggrieved or damaged thereby must give twenty (20) days' written notice of any violation of this chapter to the violator.
    2. Approval by the Division of Environmental Health Protection of the Department of Health or its authorized agent of a requested variation from the rules adopted pursuant to this chapter shall not be construed as a violation of this chapter.
  1. The Division of Environmental Health Protection of the Department of Health or its authorized agent is authorized to require the property owner to take the necessary action to correct the malfunctioning individual sewage disposal system within thirty (30) working days of being notified. Failure to take corrective action shall constitute a violation of this chapter.
    1. Any person, firm, corporation, or association who violates any of the provisions of this chapter or any rules promulgated under the authority of this chapter shall, upon conviction, be deemed guilty of a misdemeanor and shall be punished by a fine of not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000).
      1. Every firm, person, or corporation who violates any of the provisions of this chapter or rules or orders issued or promulgated by the State Board of Health or who violates any condition of a license, permit, certificate, or any other type of registration issued by the board may be assessed a civil penalty by the board.
        1. The penalty shall not exceed one thousand dollars ($1,000) for each violation.
        2. Each day of a continuing violation may be deemed a separate violation for purposes of penalty assessments.
    2. All fines collected under subdivision (c)(1) of this section shall be deposited into the State Treasury and credited to the Public Health Fund to be used to defray costs of administering this chapter.
    3. Subject to such rules as may be implemented by the Chief Fiscal Officer of the State, the disbursing officer for the Department of Health is authorized to transfer all unexpended funds relative to fines collected under this section, as certified by the Chief Fiscal Officer of the State, to be carried forward and made available for expenditures for the same purpose for any following fiscal year.

History. Acts 1977, No. 402, § 10; A.S.A. 1947, § 19-5410; Acts 1987, No. 435, § 3; 1991, No. 873, § 1; 1993, No. 182, § 1; 1995, No. 786, § 1; 2019, No. 315, §§ 1017-1020.

Amendments. The 1993 amendment substituted “Environmental Health Protection” for “Sanitarian Services” in (a)(2); rewrote (b); and, in (c), deleted “with the exception of the homeowner” following “association” and substituted “one thousand dollars ($1,000)” for “five hundred dollars ($500) or by imprisonment not exceeding one (1) month, or both.”

The 1995 amendment added (c)(2)-(4).

The 2019 amendment deleted “and regulations” following “rules” in (a)(2), (c)(1), (c)(2)(A), and (c)(4).

Case Notes

Cited: McPeek v. White River Lodge Enters., 325 Ark. 68, 924 S.W.2d 456 (1996).

14-236-107. Division of Environmental Health Protection — Powers and duties.

  1. The Division of Environmental Health Protection of the Department of Health or its authorized agents shall have general supervision and authority over the location, design, construction, installation, and operation of individual sewage disposal systems, and shall be responsible for the administration of this chapter and of the rules adopted pursuant to this chapter.
  2. In order to assure the effective and efficient administration of the provisions and purposes of this chapter, the Division of Environmental Health Protection of the Department of Health is authorized to:
    1. After review by the House Committee on Public Health, Welfare, and Labor and the Senate Committee on Public Health, Welfare, and Labor or appropriate subcommittees thereof adopt, and from time to time amend, rules governing the review and approval of subdivisions proposing to utilize individual sewage disposal systems as the means of sewage disposal for part or all of the lots in the subdivision and the location, design, construction, installation, and operation of individual sewage disposal systems proposed for or located in subdivisions or in platted or unplatted lots or tracts of land pursuant to the procedures provided in the Arkansas Administrative Procedure Act, § 25-15-201 et seq., in order that the wastes from the systems will not pollute any potable water supply, or source of water used for public or domestic supply purposes, or for recreational purposes, or other waters of this state, and will not give rise to a public health hazard by being accessible to insects, rodents, or other possible carriers which may come into contact with food or potable water, or by being accessible to human beings, and will not constitute a nuisance due to odor or unsightly appearance;
    2. Include a provision in all rules adopted or amended under this chapter to encourage studies and alternate submissions by engineers, sanitarians, institutions, agencies, and other persons of economically feasible alternate systems for underground and above ground individual sewage disposal systems for use in soils not suitable for normal underground sewage disposal;
    3. Include in rules adopted pursuant to this chapter, definitions and detailed descriptions of good management practices and procedures which, when utilized in the construction of septic systems, will:
      1. Justify variation in field size or in other standard requirements;
      2. Promote the use of good management practices or procedures in the construction of septic systems by adopting under the rules promulgated under this chapter standard permissible reductions in field size which may be applied when the management practices or procedures are utilized in the construction of a septic system; and
      3. Require the utilization of one (1) or more specific management practices or procedures as a condition of approval of standard septic systems where, in the opinion of the authorized agent, unusual site conditions or problems require the additional management practices or procedures to ensure the proper operation of an otherwise standard septic system;
    4. Enforce the provisions of this chapter and any rules adopted pursuant thereto;
    5. Delegate, at its discretion, to any municipality or, in the case of an unincorporated subdivision, the property owners association, any of its authority under this chapter in the administration of the rules adopted pursuant to this chapter; and
    6. Issue permits, and other documents, including the establishment and collection of permit fees and of procedures and forms for the submission, review, approval, and rejection of application for permits required under this chapter.

History. Acts 1977, No. 402, § 5; A.S.A. 1947, § 19-5405; Acts 1997, No. 179, § 9; 2019, No. 315, §§ 1021, 1022.

Amendments. The 1997 amendment, in (b)(1), substituted “House and Senate Interim Committees” for “Joint Interim Committee,” and inserted “or appropriate subcommittees thereof.”

The 2019 amendment deleted “and regulations” following “rules” in (a) and throughout (b).

14-236-108. Division of Sanitarian Services — Nonliability.

The Division of Sanitarian Services of the Department of Health and its authorized agents, when performing their duties as prescribed by established policies and procedures, are exempt from any liability for damages or claims resulting from its approval or disapproval of the installation or operation of any individual sewage disposal system.

History. Acts 1977, No. 402, § 14; A.S.A. 1947, § 19-5414; Acts 1987, No. 435, § 4.

14-236-109. Property owners' associations — Powers and duties.

Property owners' associations that construct and maintain or have constructed and maintained sewage disposal facilities in accordance with the standards and rules established by the Division of Environmental Health Protection of the Department of Health or the Division of Environmental Quality of the Department of Energy and Environment shall have jurisdiction over the disposal of sewage within and for the subdivided area over which their authority extends and shall have general supervision and authority over the location, design, construction, installation, and operation of individual and community sewage disposal systems to the extent that the general supervision and authority is consistent with this chapter and the rules promulgated thereunder.

History. Acts 1977, No. 402, § 6; A.S.A. 1947, § 19-5406; Acts 1999, No. 1164, § 128; 2019, No. 315, § 1023; 2019, No. 910, § 3040.

A.C.R.C. Notes. Acts 1997, No. 1219, § 2, provided:

“‘Arkansas Department of Pollution Control & Ecology’ renamed to ‘Arkansas Department of Environmental Quality’.

  1. Effective March 31, 1999, the ‘Arkansas Department of Pollution Control & Ecology’ or ‘Department,’ as it is referred to or empowered throughout the Arkansas Code Annotated, is hereby renamed. In its place, the ‘Arkansas Department of Environmental Quality’ is hereby established, succeeding to the general powers and responsibilities previously assigned to the Arkansas Department of Pollution Control & Ecology. The Director of the Arkansas Department of Pollution Control & Ecology is directed to identify and revise all inter-agency agreements, financial instruments, funds, and other necessary legal documents in order to effect this change by March 31, 1999.

“(b) Nothing in this Act shall be construed as impairing the powers and authorities of the Arkansas Department of Pollution Control and Ecology prior to the effective date of the name change.”

Amendments. The 1999 amendment substituted “Arkansas Department of Environmental Quality” for “Department of Pollution Control and Ecology” and made a minor punctuation change.

The 2019 amendment by No. 315 substituted “rules” for “regulations” preceding “established” and deleted “and regulations” preceding “promulgated”.

The 2019 amendment by No. 910 substituted “Division of Environmental Quality” for “Arkansas Department of Environmental Quality”.

14-236-110. Construction, alteration, repair prohibited.

No person shall construct, alter, repair, or extend or cause to be constructed, altered, repaired, or extended any individual sewage disposal system contrary to the provisions of this chapter and other applicable rules.

History. Acts 1977, No. 402, § 4; A.S.A. 1947, § 19-5404; Acts 2019, No. 315, § 1024.

Amendments. The 2019 amendment deleted “and regulations” following “rules”.

14-236-111. Review of proposals and inspections.

    1. The Division of Environmental Health Protection of the Department of Health or its authorized agent is authorized and directed to review proposals for individual sewage disposal systems and to make inspections of individual sewage disposal systems as may be necessary to determine substantial compliance with this chapter and rules adopted hereunder. The systems shall not be used unless a permit for operation has been approved by the division or its authorized agent.
    2. In the event that an authorized agent has not been designated for a county or municipality or locality, applications for individual sewage disposal systems shall be made to the division.
    3. The division or its authorized agent shall either approve or disapprove the individual sewage disposal system design, and, if disapproved, the system shall not be installed until all deficiencies are corrected and the design approved by the division or its authorized agent.
  1. It shall be the duty of the installer to notify the division, its authorized agent, or his or her designated representative when the installation is to occur and it shall be the duty of the owner or occupant of the property to give the division, its authorized agent, or his or her designated representative free access to the property at reasonable times for the purpose of making such inspections as are necessary.
  2. Within five (5) working days, the installer shall certify to the division that the system has been installed pursuant to the approved permit.
  3. Any person aggrieved by the disapproval of an individual sewage disposal system shall be afforded review as provided in the Arkansas Administrative Procedure Act, § 25-15-201 et seq.

History. Acts 1977, No. 402, § 8; A.S.A. 1947, § 19-5408; Acts 2007, No. 939, § 5; 2019, No. 315, § 1025.

Amendments. The 2019 amendment substituted “rules” for “regulations” in the first sentence of (a)(1).

14-236-112. Permit and registration required — Exception.

  1. It shall be unlawful for any person, firm, corporation, association, municipality, or governmental agency to construct, alter, repair, extend, or operate an individual sewage disposal system or alternate and experimental system installed after July 1, 1977, unless a valid permit has been issued by the Division of Sanitarian Services of the Department of Health or its authorized agent for the specific construction, alteration, repair, extension, or operation proposed, except that emergency repairs may be undertaken without prior issuance of a permit, provided a permit is subsequently obtained within ten (10) working days after the repairs are made.
  2. It shall be unlawful for any person, firm, corporation, or association to begin construction, alteration, repair, or extension of any individual sewage disposal system or alternate and experimental system, owned by any other person, firm, corporation, association, municipality, or governmental agency until the owner first obtains a valid permit issued by the Division of Sanitarian Services of the Department of Health or its authorized agent.
  3. It shall be unlawful for a septic tank manufacturer to operate a business in the State of Arkansas or to do business in the State of Arkansas unless he holds a valid registration issued by the Department of Health.

History. Acts 1977, No. 402, § 9; A.S.A. 1947, § 19-5409; Acts 1987, No. 435, § 2.

14-236-113. Applications for permits, etc. — Refusal.

  1. All applications for permits, licenses, or review certificates shall be made on a form which includes such information as may be required by the Division of Environmental Health Protection of the Department of Health or its authorized agent to establish compliance with the provisions of this chapter, and any rules adopted hereunder.
  2. Except as provided in § 14-236-104(a) and (b), a permit for the construction, alteration, repair, extension, or operation of an individual sewage disposal system or alternate and experimental system shall be refused where community sewerage systems are reasonably available or economically feasible, or in instances where the issuance of such permit is in conflict with other applicable laws, rules, and regulations, or where the issuance of the permit is in conflict with the public policy declared by this chapter.

History. Acts 1977, No. 402, § 9; A.S.A. 1947, § 19-5409; Acts 1987, No. 435, § 2; 2019, No. 315, § 1026.

Amendments. The 2019 amendment substituted “rules” for “regulations” in (a); and inserted “rules” in (b).

14-236-114. Notification by installer required.

It shall be unlawful for any installer to begin construction, alteration, repair, or extension of any individual sewage disposal system or alternate and experimental system, owned by any other person, firm, corporation, association, municipality, or governmental agency, until the installer first notifies the authorized agent of the date he plans to begin work on the system.

History. Acts 1977, No. 402, § 9; A.S.A. 1947, § 19-5409; Acts 1987, No. 435, § 2.

14-236-115. Registration of installers.

  1. Each installer who operates within the State of Arkansas, regardless of the location of his home office, must become registered by the Division of Environmental Health Protection of the Department of Health.
  2. The registration will be issued by the Division of Environmental Health Protection of the Department of Health or its authorized agent upon application on proper forms and compliance with the provisions of this chapter and rules adopted pursuant to this chapter.
  3. The registration shall be renewable on January 1 of each year.
  4. The installer's registration may be revoked without advance notice whenever any provision of this chapter is violated. The installer may appeal the revocation as provided for in the Arkansas Administrative Procedure Act, § 25-15-201 et seq.
  5. Each installer must furnish proof of current registration upon request by an authorized representative of the Division of Environmental Health Protection of the Department of Health.
  6. Failure of an installer to register with the Division of Environmental Health Protection of the Department of Health as an installer in the State of Arkansas shall subject the installer to the penalties of § 14-236-106(c).

History. Acts 1977, No. 402, § 11; 1983, No. 708, § 5; A.S.A. 1947, § 19-5411; Acts 2019, No. 315, § 1027.

Amendments. The 2019 amendment substituted “rules” for “regulations” in (b).

14-236-116. Permits and registration fees — Annual training course — Transferability — Renewal.

    1. A fee shall be levied for the review of individual sewage disposal permit applications as follows:
      1. For structures one thousand five hundred square feet (1,500 sq. ft.) or less, the fee to review a permit application is thirty dollars ($30.00);
      2. For structures more than one thousand five hundred square feet (1,500 sq. ft.) and less than two thousand square feet (2,000 sq. ft.), the fee to review a permit application is forty-five dollars ($45.00);
      3. For structures more than two thousand square feet (2,000 sq. ft.) and less than three thousand square feet (3,000 sq. ft.), the fee to review a permit application is ninety dollars ($90.00);
      4. For structures more than three thousand square feet (3,000 sq. ft.) and less than four thousand square feet (4,000 sq. ft.), the fee to review a permit application is one hundred twenty dollars ($120);
      5. For structures four thousand square feet (4,000 sq. ft.) and greater, the fee to review a permit application is one hundred fifty dollars ($150); and
      6. For the alteration, repair, or extension of any individual sewage disposal system, the fee to review a permit application is thirty dollars ($30.00).
      1. In calculating the square footage of a residential structure for purposes of determining the applicable fee under this section, the square footage of all auxiliary areas of the residential structure shall not be considered.
      2. Auxiliary areas include garages, carports, porches, and other similar areas as determined by the Division of Environmental Health Protection of the Department of Health.
  1. An installer shall receive at least one (1) annual training course from an online, private, or governmental source approved by the Department of Health and pay a fee of one hundred dollars ($100) annually to maintain certification.
  2. A fee of one hundred dollars ($100) shall be levied annually for the registration of septic tank manufacturers.
  3. A designated representative must attend at least one (1) annual training course provided by the Department of Health and pay a one hundred dollar ($100) fee annually to maintain certification.
  4. A certified maintenance person must attend at least one (1) annual training course approved by the Department of Health and pay a fifty-dollar fee annually to maintain certification.
  5. The fee for the issuance of a review certificate under the provisions of this chapter to the person developing a subdivision shall be a minimum of one hundred dollars ($100) for one (1) lot and twenty-five dollars ($25.00) for each following lot, with a maximum of one thousand five hundred dollars ($1,500).
  6. Permit and regulation fees collected under this chapter shall be deposited into the State Treasury as follows:
    1. Five dollars ($5.00) of each permit fee collected for permits issued under subsection (a) of this section shall be credited to a special fund to be known as the “Individual Sewage Disposal Systems Improvement Fund” that is established on the books of the Treasurer of State, with such moneys to be used by the Division of Environmental Health Protection of the Department of Health, and in the manner recommended by the Individual Sewage Disposal Systems Advisory Committee, for the implementation of the utilization and application of alternate and experimental individual sewage disposal systems, as set forth in this chapter;
    2. The remainder of the fees collected for permits issued under the provisions of subsection (a) of this section and all of the net fees collected under the provisions of subsections (b)-(f) of this section shall be credited to the Public Health Fund, and the moneys shall be used only for the operation of the Onsite Wastewater Program of the Division of Environmental Health Protection of the Department of Health; and
    3. Subject to such rules as may be implemented by the Chief Fiscal Officer of the State, the disbursing officer for the Department of Health is hereby authorized to transfer all unexpended funds relative to the funds outlined in subdivision (g)(2) of this section that pertain to fees collected, as certified by the Chief Fiscal Officer of the State, to be carried forward and made available for expenditures for the same purpose for any following fiscal year.
    1. Permits issued under subsections (b)-(d) of this section shall be nontransferable and shall be renewed annually.
    2. A late fee equal to one-half (½) of the renewal fee for any type of registration or certification shall be charged to renew a permit sixty (60) days after the annual expiration date.

History. Acts 1977, No. 402, § 9; 1983, No. 708, §§ 3, 4; A.S.A. 1947, § 19-5409; Acts 1987, No. 435, § 2; 1991, No. 873, § 2; 2005, No. 1864, § 1; 2005, No. 1928, §§ 1, 2; 2007, No. 939, § 2; 2019, No. 315, § 1028.

Amendments. The 2005 amendment by No. 1864 rewrote (b).

The 2005 amendment by No. 1928 redesignated former (c) as present (a)(1); in (a)(1), deleted “of thirty dollars ($30.00)” following “A fee,” deleted the second sentence, and added “as follows” to the end; added (a)(1)(A) through (F) and (a)(2); and, in (e), substituted “one hundred dollars ($100)” for “thirty dollars ($30.00),” “twenty-five dollars (25.00)” for “five dollars ($5.00),” and “one thousand five hundred dollars ($1,500)” for “five hundred dollars ($500).”

The 2019 amendment deleted “and regulations” following “rules” in (g)(3).

14-236-117. Duty to prosecute.

It shall be the duty of each prosecuting attorney to whom an authorized agent of the State Board of Health reports any violation of this chapter to cause appropriate proceedings to be instituted in the proper courts without delay and to cause the individual who commits the violation to be prosecuted in the manner required by law.

History. Acts 1977, No. 402, § 12; A.S.A. 1947, § 19-5412.

Cross References. Prosecuting attorneys, § 16-21-101 et seq.

14-236-118. Fees for tests, designs, and inspections.

Designated representatives may charge reasonable fees for percolation tests, system designs, and final inspections where the fees are based on generally accepted wage rates for work of the type and on generally accepted charges for equipment and mileage.

History. Acts 1987, No. 435, § 2.

14-236-119. Registration of a certified maintenance person.

  1. Each certified maintenance person who operates within the State of Arkansas shall be registered by the Division of Environmental Health Protection of the Department of Health.
  2. The registration shall be issued by the division or its authorized agent upon compliance with this chapter and rules adopted under this chapter.
  3. The registration shall be renewed on January 1 of each year.
    1. If a violation of this chapter occurs, a certified maintenance person's registration may be revoked without notice by the division.
    2. The certified maintenance person may appeal the revocation of the registration under the Arkansas Administrative Procedure Act, § 25-15-201 et seq.
  4. Upon request by an authorized representative of the division, a certified maintenance person shall provide proof of registration.
  5. A certified maintenance person is subject to the penalties under § 14-236-106 for a violation of this chapter.

History. Acts 2007, No. 939, § 4; 2019, No. 315, § 1029.

Publisher's Notes. Former § 14-236-119, concerning bond, was repealed by Acts 2007, No. 939, § 3. The section was derived from Acts 2003, No. 1170, § 1; 2005, No. 1864, § 2.

Amendments. The 2019 amendment deleted “and regulations” following “rules” in (b).

Chapter 237 Arkansas Municipal Water And Sewer Department Accounting Law

Cross References. Local Governmental Compliance Act, § 10-4-301 et seq.

Effective Dates. Acts 1977, No. 309, § 2: Feb. 28, 1977. Emergency clause provided: “It is hereby determined that there is a great deal of confusion and uncertainty as to the requirements for publication of financial information by the municipal water and sewer departments of Arkansas; that it is essential that the citizens and qualified voters in the towns and cities have a periodic report of the financial condition of their municipal water and sewer departments. Therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation of the public health, welfare and safety shall take effect immediately upon its passage and approval.”

14-237-101. Title.

This chapter shall be known and cited as the “Arkansas Municipal Water and Sewer Department Accounting Law”.

History. Acts 1973, No. 148, § 1; A.S.A. 1947, § 19-5201; Acts 2011, No. 620, § 1.

Amendments. The 2011 amendment deleted “of 1973” at the end of the section.

14-237-102. Applicability.

This chapter shall apply to all municipal water and sewer departments operating in this state under authority granted by state law for the establishment of municipal water and sewer departments.

History. Acts 1973, No. 148, § 2; A.S.A. 1947, § 19-5202.

14-237-103. Exemption of accounting systems exceeding minimum.

  1. In the event any department feels its system of bookkeeping equals or exceeds the basic system prescribed by this chapter, the department may request a review by the Legislative Joint Auditing Committee.
  2. Upon the committee's concurrence with the department's position, the committee may issue a certificate to the department stating that the department's accounting system is of a degree of sophistication which meets the basic requirements of this chapter and exempting the department from the requirements of the particulars of the system prescribed by this chapter.

History. Acts 1973, No. 148, § 11; A.S.A. 1947, § 19-5211.

14-237-104. Bank accounts.

All municipal water and sewer departments of this state shall maintain all funds in depositories approved for that purpose by law. The accounts shall be maintained in the name of the municipal water and sewer department.

History. Acts 1973, No. 148, § 3; A.S.A. 1947, § 19-5203; Acts 2011, No. 620, § 2.

Amendments. The 2011 amendment inserted “municipal” and deleted “of municipalities and incorporated towns” following “departments.”

14-237-105. Prenumbered receipts or mechanical receipting devices.

    1. All funds received are to be formally receipted at the time of collection or the earliest opportunity by the use of prenumbered receipts or mechanical receipting devices.
    2. However, the use of prenumbered receipts shall not be required for receipting revenues derived from the sale of water to individual consumers where the income is determined by periodic readings of meters and the individual consumer is billed for the water by means of a water bill, part of which must be returned by the consumer with his or her remittance. In those cases, the water and sewer department shall prepare a detailed monthly statement showing the amount billed to each consumer and posting the amount collected from each consumer on a monthly basis. A summary of the monthly statements shall be submitted to the governing body for its review.
  1. In the use of prenumbered receipts, the following minimum standards shall be met:
    1. If manual receipts are used, receipts are to be prenumbered by the printer and a printer's certificate obtained and retained for audit purposes. The certificate shall state the date printing was done, the numerical sequence of receipts printed, and the name of the printer;
    2. The prenumbered receipts shall contain the following information for each item receipted:
      1. Date;
      2. Amount of receipt;
      3. Name of person or company from whom money was received;
      4. Purpose of payment;
      5. Fund to which receipt is to be credited; and
      6. Identification of employee receiving the money; and
    3. If manual receipts are used, the original receipt should be given to the party making payment. One (1) duplicate copy of the receipt shall be maintained in numerical order in the receipt book and made available to the auditors during the course of annual audit. Additional copies of the receipt are optional with the water and sewer department and may be used for any purpose it deems fit.
  2. If an electronic receipting system is used, the system shall be in compliance with the Information Systems Best Practices Checklist provided by the Legislative Joint Auditing Committee.

History. Acts 1973, No. 148, § 4; A.S.A. 1947, § 19-5204; Acts 2011, No. 620, § 3.

Amendments. The 2011 amendment, in (a)(1), substituted “funds received” for “items of income,” inserted “at the time of collection or the earliest opportunity,” and deleted “such as cash registers or validating equipment” at the end; in (a)(2), inserted “or her” and substituted “governing body” for “commission”; added “If manual receipts are used” at the beginning of (b)(1) and (b)(3); substituted “Identification” for “Signature” in (b)(2)(F); and rewrote (c).

14-237-106. Prenumbered checks — Electronic funds transfers.

  1. All disbursements of water and sewer department funds, except those described in this section and as noted in § 14-237-107, are to be made by prenumbered checks drawn upon the bank account of that department.
  2. An electronic funds transfer may be used for payment of debts provided that:
    1. The person responsible for the disbursement maintains a ledger including without limitation the following information:
      1. The name and address of the entity receiving payment;
      2. The routing number of the bank in which the funds are held;
      3. The account number and the accounts clearinghouse trace number pertaining to the transfer; and
      4. The date and amount transferred; and
    2. Written consent for payment by electronic funds transfer is given by the entity to whom the transfer is made.
  3. The checks shall be of the form normally provided by commercial banking institutions and shall contain, as a minimum, the following information:
    1. Date of issue;
    2. Check number;
    3. Payee;
    4. Amount; and
    5. Signature of two (2) authorized disbursing officers of the department.
  4. Disbursements of department funds used for payment of salaries and wages of department officials and employees may be made by electronic funds transfer provided that the department employee or official responsible for disbursements maintains a ledger containing at least the:
    1. Name, address, and Social Security number of the employee receiving payment of salary or wages;
    2. Routing number of the bank in which the funds are held;
    3. Account number and the accounts clearinghouse trace number pertaining to the transfer; and
    4. Date and amount transferred and proof that the employee has been notified of direct deposit of his or her salary or wages by electronic funds transfer.
  5. Disbursements of department funds, other than for payments under subsections (b) and (d) of this section, may be made by electronic funds transfer provided that:
    1. The department's governing body may establish an electronic funds payment system directly into payees' accounts in financial institutions in payment of any account allowed against the department;
    2. For the purposes of this subsection, departments opting for an electronic funds payment system shall establish written policies and procedures to ensure that the electronic funds payment system provides for internal accounting controls and documentation for audit and accounting purposes;
    3. Each electronic funds payment system established under this subsection shall comply with the information systems best practices approved by the Legislative Joint Auditing Committee before implementation by the department; and
    4. A single electronic funds payment may contain payments to multiple payees, appropriations, characters, or funds.
  6. A disbursement of department funds shall have adequate supporting documentation for the disbursement.

History. Acts 1973, No. 148, § 5; A.S.A. 1947, § 19-5205; Acts 2009, No. 642, § 1; 2011, No. 620, § 4; 2019, No. 138, § 3; 2019, No. 383, § 24.

A.C.R.C. Notes. Pursuant to Acts 2019, No. 383, § 26, the amendment of subsection (e) by Acts 2019, No. 138, § 3, supersedes the amendment of subsection (e) by Acts 2019, No. 383, § 24. Acts 2019, No. 383, § 24, amended subsection (e) to read as follows:

“(e)(1) Disbursements of department funds, other than for payments under subsections (b) and (d) of this section, may be made by electronic funds transfer.

“(2) The department's governing body may establish an electronic funds payment system directly into payees' accounts in financial institutions in payment of any account allowed against the department.

“(3) A department opting for an electronic funds payment system shall establish an electronic payment method that provides for internal accounting controls and documentation for audit and accounting purposes.

“(4) Each electronic payment method established under subdivision (e)(3) of this section shall be approved by the Legislative Joint Auditing Committee before implementation by the department.

“(5) A single electronic funds payment may contain payments to multiple payees, appropriations, characters, or funds.”

Acts 2019, No. 383, § 26, provided: “Construction and legislative intent.

“It is the intent of the General Assembly that:

“(1) The enactment and adoption of this act shall not expressly or impliedly repeal an act passed during the regular session of the Ninety-Second General Assembly;

“(2) To the extent that a conflict exists between an act of the regular session of the Ninety-Second General Assembly and this act:

“(A) The act of the regular session of the Ninety-Second General Assembly shall be treated as a subsequent act passed by the General Assembly for the purposes of:

“(i) Giving the act of the regular session of the Ninety-Second General Assembly its full force and effect; and

“(ii) Amending or repealing the appropriate parts of the Arkansas Code of 1987; and

“(B) Section 1-2-107 shall not apply; and

“(3) This act shall make only technical, not substantive, changes to the Arkansas Code of 1987”.

Amendments. The 2009 amendment rewrote (a).

The 2011 amendment inserted “except those described in this section and as noted in § 14-237-107” in (a); deleted former (a)(1) and redesignated former (a)(2) as (b); inserted “may be” in the introductory paragraph of (b); redesignated former (b) as present (c) and deleted former (c); deleted “both in numerical and written form” following “Amount” in (c)(4); in (c)(5), inserted “two (2)” and substituted “officers” for “officer”; and added (d) through (f).

The 2019 amendment by No. 138, in (e)(2), substituted “For the purposes of” for “As used in” and substituted “written policies and procedures to ensure that the electronic funds payment system” for “an electronic payment method that”; in (e)(3), substituted “funds payment system” for “payment method” and “under this subsection shall comply with the information systems best practices” for “under subdivision (e)(2) of this section shall be”; and made stylistic changes.

The 2019 amendment by No. 383 redesignated the introductory language of (e) as (e)(1) and the remaining subdivisions accordingly; in (e)(1), deleted “provided that” following “transfer”; substituted “A department” for “As used in this subsection, departments” in (e)(3); and substituted “subdivision (e)(3)” for “subdivision (e)(2)” in (e)(4).

14-237-107. Petty cash funds.

  1. Municipal water and sewer departments are permitted to establish petty cash funds, so long as the funds are maintained as set forth in this section. The establishment of a petty cash fund must be approved by the department's governing body.
    1. In establishing a petty cash fund, a check is to be drawn upon the bank account of the water and sewer department payable to “Petty Cash.” That amount may be maintained in the water and sewer department offices for the handling of small expenditures for items such as postage, light bulbs, delivery fees, etc.
    2. A paid-out slip is to be prepared for each item of expenditure from that fund and signed by the person receiving the moneys. These paid-out slips shall be maintained with the petty cash.
    3. When the fund becomes depleted, the department may then draw another check payable to “Petty Cash” in an amount which equals the total paid-out slips issued, and at that time the paid-out slips shall be removed from the petty cash fund and utilized as invoice support for the check replenishing petty cash.

History. Acts 1973, No. 148, § 6; A.S.A. 1947, § 19-5206; Acts 2011, No. 620, § 5.

Amendments. The 2011 amendment substituted “department’s governing body” for “commission” in (a).

14-237-108. Fixed asset records.

    1. Each water and sewer department's governing body shall adopt a policy defining fixed assets.
    2. At a minimum, the policy shall set forth the dollar amount and useful life necessary to qualify as a fixed asset.
    1. Each department shall establish by major category and maintain, as a minimum, a listing of all fixed assets owned by the department.
    2. The listing shall be totaled by category with a total for all categories.
    3. The categories of fixed assets shall include the major types, such as:
      1. Land;
      2. Buildings;
      3. Motor vehicles;
      4. Equipment; and
      5. Other.
  1. For each fixed asset, the listing shall contain, as a minimum:
    1. Property item number if used by the department;
    2. Brief description;
    3. Serial number, if available;
    4. Date of acquisition; and
    5. Cost of property.

History. Acts 1973, No. 148, § 7; A.S.A. 1947, § 19-5207; Acts 2011, No. 620, § 6.

Amendments. The 2011 amendment rewrote the section.

14-237-109. Cash receipts journal.

  1. Water and sewer departments shall establish a cash receipts journal or an electronic receipts listing, which shall indicate the:
    1. Receipt number;
    2. Date of the receipt;
    3. Payor;
    4. Amount of the receipt; and
    5. Classification or general ledger account.
  2. Classifications of the receipts shall include the major sources of revenue.
    1. All items of receipts shall be posted to and properly classified in the cash receipts journal or electronic receipts listing.
      1. The journal shall be properly balanced and totaled monthly and on a year-to-date basis.
      2. The journal shall be reconciled monthly to total bank deposits as shown on the department's bank statements.
      1. The electronic receipts listing shall be posted to the general ledger at least monthly.
      2. The general ledger shall be reconciled monthly to total bank deposits as shown on the department's bank statements.

History. Acts 1973, No. 148, § 8; A.S.A. 1947, § 19-5208; Acts 2011, No. 620, § 7.

Amendments. The 2011 amendment rewrote the section.

14-237-110. Cash disbursements journal.

  1. Water and sewer departments shall establish a cash disbursements journal or electronic check register which shall indicate the date, payee, check number or transaction number, amount of each check written or transaction, and classification or general ledger account.
  2. The classifications of expenditures shall include the major type of expenditures by department, such as:
    1. Personal services;
    2. Supplies;
    3. Other services and charges;
    4. Capital outlay;
    5. Debt service; and
    6. Transfers out.
    1. The cash disbursements journal shall be properly balanced and totaled monthly and on a year-to-date basis.
    2. The cash disbursements journal shall be reconciled monthly to total bank disbursements as indicated on the monthly bank statements.
    1. The electronic check register shall be posted to the general ledger at least monthly.
    2. The general ledger shall be reconciled monthly to total bank disbursements as indicated on the monthly bank statements.

History. Acts 1973, No. 148, § 9; A.S.A. 1947, § 19-5209; Acts 2011, No. 620, § 8.

Amendments. The 2011 amendment rewrote the section.

14-237-111. Reconciliation of bank accounts.

    1. All water and sewer departments shall reconcile on a monthly basis their cash receipts and disbursements journals to the amount on deposit in banks.
    2. This reconciliation shall be approved by an official or employee, other than the person preparing the reconciliation, as designated by the governing body of the department.
    3. The reconciliations should take the following form:
  1. This reconciled balance shall agree with either the cash balance as shown on the department's check stubs running bank balance or the department's general ledger cash balance, whichever system the department employs.

“Water and Sewer Department of Date Amount Per Bank Statement Dated $ .00 Add: Deposits in transit (Receipts recorded in Cash Receipts Journal not shown on this bank statement). DATE RECEIPTS NO. AMOUNT $ .00 .00 .00 .00 Deduct: Outstanding Checks (Checks issued and dated prior to date of bank statement per Cash Disbursements Journal not having yet cleared the bank). CHECK NO. PAYEE AMOUNT $ .00 .00 .00 .00 RECONCILED BALANCE $ .00”

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History. Acts 1973, No. 148, § 10; A.S.A. 1947, § 19-5210; Acts 2011, No. 620, § 9.

Amendments. The 2011 amendment subdivided part of (a); and added (a)(2).

14-237-112. Maintenance and destruction of accounting records.

  1. Accounting records can basically be divided into three (3) groups:
      1. Support Documents. Support documents consist primarily of the following items:
        1. Canceled checks;
        2. Invoices;
        3. Bank statements;
        4. Receipts;
        5. Deposit slips;
        6. Bank reconciliations;
        7. Check book register or listing;
        8. Receipts listing;
        9. Monthly financial reports;
        10. Payroll records;
        11. Budget documents; and
        12. Bids, quotes, and related documentation.
      2. These records shall be maintained for a period of at least four (4) years and shall not be disposed of before any required audit for the period in question;
      1. Semipermanent Records. Semipermanent records consist of:
        1. Fixed-asset records and equipment detail records;
        2. Investment and certificate of deposit records;
        3. Journals, ledgers, or subsidiary ledgers; and
        4. Annual financial reports.
        1. These records shall be maintained by the water and sewer department for a period of not less than seven (7) years and shall not be disposed of before any required audit for the period in question.
        2. For investment and certificate of deposit records, the seven (7) years of required maintenance will begin on the date of maturity;
      1. Permanent Records. Permanent records consist of:
        1. Minutes;
        2. Employee retirement documents; and
        3. Annual financial audits.
      2. These records shall be maintained permanently.
  2. When documents are destroyed, the department shall document the destruction by the following procedure:
    1. An affidavit is to be prepared stating which documents are being destroyed and to which period of time they apply, indicating the method of destruction. This affidavit is to be signed by the department's employee performing the destruction and one (1) member of the governing body;
    2. In addition, the approval of the governing body for destruction of the documents shall be obtained and an appropriate note of the approval indicated in the governing body's minutes along with the destruction affidavit. Governing body approval shall be obtained before the destruction.

History. Acts 1973, No. 148, § 12; 1979, No. 616, § 1; A.S.A. 1947, § 19-5212; Acts 2011, No. 620, § 10.

Amendments. The 2011 amendment substituted “three (3)” for “two (2)” in the introductory paragraph of (a); inserted (a)(1)(A)(iv) through (xii); in (a)(1)(B), substituted “four (4)” for “three (3)” and “before any required audit” for “prior to being audited”; rewrote (a)(2); inserted (a)(3); substituted “member of the governing body” for “commission member” in (b)(1); and, in (b)(2), substituted “governing body” for “commission,” “governing body's” for “commission's,” and “Governing body” for “Commission.”.

14-237-113. Annual publication of financial statements.

    1. The governing body of each municipal water or sewer department shall cause to be published annually a financial statement of the department, including receipts and expenditures for the period and a statement of the indebtedness and financial condition of the department. The financial statement shall be published one (1) time in a newspaper published in the municipality.
    2. The financial statement shall be at least as detailed as the minimum record of accounts as provided in this chapter.
    3. The financial statement shall be published by April 1 of the following year.
  1. In municipalities where no newspaper is published, the financial statement shall be posted in two (2) public places in the municipality.

History. Acts 1973, No. 148, § 15 as added by 1977, No. 309, § 1; A.S.A. 1947, §§ 19-5213, 19-5214; Acts 2011, No. 620, § 11.

Amendments. The 2011 amendment rewrote (a)(1), (a)(3), and (b).

Chapter 238 Rural Waterworks Facilities Boards

Effective Dates. Acts 1999, No. 942, § 7: Mar. 29, 1999. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly that many water associations and other nonprofit corporations providing water and sewer services could serve their customers better by transferring their operations to a rural waterworks facilities board, and that current law does not provide users with adequate opportunity to participate in making recommendations to the board and in the selection of board members. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

14-238-101. Short title.

This chapter may be referred to and cited as the “Rural Waterworks Facilities Boards Act”.

History. Acts 1995, No. 617, § 1.

14-238-102. Legislative intent.

It is determined by the General Assembly that adequate rural waterworks and rural water distribution systems are essential to the health, safety, and economic welfare of the people of this state. In order to meet these public needs, it is essential that public financing be provided for the facilities, and it is the purpose of this subchapter to provide an alternative method of financing for those facilities.

History. Acts 1995, No. 617, § 2.

14-238-103. Definitions.

As used in this subchapter, unless the context otherwise requires:

  1. “Acquire” means to obtain by gift, purchase, or other arrangement any project or any portion of a project, whether theretofore constructed and equipped, theretofore partially constructed and equipped, or being constructed and equipped at the time of acquisition, for such consideration and pursuant to such terms and conditions as the board shall determine;
  2. “Construct” means to acquire or build, in whole or in part, in such manner and by such method, including contracting therefor, and, if the latter, by negotiation or bidding upon such terms and pursuant to such advertising as determined by the board, as will most effectively serve the purposes of this subchapter;
  3. “Equip” means to install or place in or on any building or structure equipment of any and every kind, whether or not affixed, including, without limitation, building service equipment, fixtures, heating equipment, air conditioning equipment, machinery, furniture, furnishings, and personal property of every kind;
  4. “Facilities” means real property, personal property, or mixed property of any and every kind, including, without limitation, rights-of-way, utilities, materials, equipment, fixtures, machinery, furniture, furnishings, buildings, and other improvements of every kind;
  5. “Lease” means to lease as lessor or lessee for such rentals, for such periods, and upon such terms and conditions as the board shall agree, including, without limitation, such extension and purchase options for such prices and upon such terms and conditions as the board shall agree;
  6. “Lend” means to extend credit, make a loan to, acquire the obligations of, and generally, without limitation, engage in the financing of any facilities which the board has the authority to construct, acquire, or equip pursuant to this subchapter, upon such terms and with such security as the board deems suitable;
  7. “Ordinance” means an ordinance of a quorum court;
  8. “Rural waterworks facilities board” or “board” means any board organized under this chapter;
  9. “Sell” means to sell for such price, in such manner, and upon such terms as the board shall determine, including, without limitation, public or private sale, and if public, pursuant to such advertisement as the board shall determine, for cash or on credit, payable in a lump sum or in such installments as the board shall determine, and if on credit, with or without interest and at such rate as the board may determine;
  10. “Wastewater facilities” means facilities for the collection, treatment, and disposal of wastewater, but shall not include solid or hazardous waste; and
  11. “Waterworks facilities” means facilities for the furnishing of water for domestic, commercial, agricultural, and industrial purposes, including, without limitation, mains, hydrants, meters, valves, standpipes, storage tanks, pumping tanks, intakes, wells, impounding reservoirs, purification plants, and lakes and watercourses.

History. Acts 1995, No. 617, § 3.

14-238-104. Provisions supplemental.

This chapter shall be liberally construed to effect the purposes of it.

History. Acts 1995, No. 617, § 4.

14-238-105. Construction of chapter.

This chapter shall be deemed to provide an additional and alternative method for the doing of the things authorized hereby and shall be regarded as supplemental and additional to powers conferred by other laws.

History. Acts 1995, No. 617, § 5.

14-238-106. Creation of boards.

  1. Any county is authorized to create one (1) or more rural waterworks facilities boards and to empower each board to own, acquire, construct, reconstruct, extend, equip, improve, operate, maintain, sell, lease, contract concerning, or otherwise deal in or dispose of, waterworks facilities and wastewater facilities or any interest in such facilities, including, without limitation, leasehold interests in and mortgages on such facilities.
  2. Boards created under this subchapter are not administrative boards under the County Government Code, § 14-14-101 et seq.
  3. Any public facility board created under the Public Facilities Boards Act, § 14-137-101 et seq., or its predecessor, for the purpose of operating a waterworks facility and/or a wastewater facility, and which is in existence on July 28, 1995, may petition the quorum court which created the board to grant the board all the powers conveyed by this chapter, and if the quorum court adopts an ordinance to that effect, the powers and authority granted under this chapter shall be applicable to that public facilities board, and it shall thereafter be governed exclusively by the provisions of this chapter and none other.

History. Acts 1995, No. 617, §§ 6, 23.

14-238-107. Board names — Powers.

  1. Each board shall be created by ordinance of the quorum court. The ordinance shall give the board a name which:
    1. Shall include the name of the creating county;
    2. Shall be descriptive of the powers granted to the board;
    3. Shall be distinctive from the name given to any other board created by the county;
    4. Shall specify the powers granted to the board; and
    5. May place specific limitations on the exercise of the powers granted, including limitations on:
      1. The board's area of operations;
      2. The use of waterworks facilities and wastewater facilities; and
      3. The board's authority to issue bonds.
  2. Unless limited by the creating ordinance, each board created shall be authorized to accomplish waterworks facilities and wastewater facilities projects within, or partly within and partly without, the county.

History. Acts 1995, No. 617, § 7.

14-238-108. Members — Compensation.

  1. Each board shall consist of five (5) members unless there is an expansion of the board to provide services outside the county which created it.
    1. The initial members shall be appointed by the county judge of the creating county for terms of one (1), two (2), three (3), four (4), and five (5) years, respectively.
    2. When a rural waterworks facilities board is created to assume the operations of an existing nonprofit corporation that provides water or sewer service, the county judge shall appoint the initial members from a list of nominees provided by the nonprofit corporation's board of directors.
    3. Successor members shall be elected by a majority of the board or by alternative member selection as set forth in § 14-238-124 for terms of five (5) years.
    4. Each member shall serve until his or her successor is elected and qualified.
    5. A member shall be eligible to succeed himself or herself.
  2. Each member shall qualify by taking and filing with the clerk of the county creating the board his or her oath of office in which he or she shall swear to support the United States Constitution and the Arkansas Constitution and to discharge faithfully his or her duties in the manner provided by law.
  3. In the event of a vacancy in the membership of the board, however caused, a majority of the board shall elect a successor member to serve the unexpired term.
  4. The members of the board shall receive no compensation for their services but shall be entitled to reimbursement for reasonable and necessary expenses incurred in the performance of their duties.
  5. Any member of the board may be removed for misfeasance, malfeasance, or willful neglect of duty by the county judge of the county which created the board, after reasonable notice of and an opportunity to be heard concerning the alleged grounds for removal.
      1. If the jurisdiction of a board, pursuant to interlocal agreements, expands to provide services outside the boundaries of the county from which it obtains power, then not more than two (2) additional members per county may be added pursuant to the terms of any relevant interlocal agreement.
      2. These members shall initially be appointed by the county judge of the noncreating county and shall serve for a term agreed upon in the interlocal agreement, provided that the term shall not exceed five (5) years.
      1. The other provisions of this section shall apply to these additional members.
      2. Provided, no additional member shall be eligible to serve as chair of the board.

History. Acts 1995, No. 617, § 8; 1999, No. 942, § 1.

Amendments. The 1999 amendment inserted present (b)(2) and redesignated the remaining subdivisions accordingly; and in present (b)(3), inserted “or by alternative member selection as set forth in § 14-238-124” and deleted “each” following “years.”

Cross References. Compensation of State boards, § 25-16-901 et seq.

14-238-109. Officers.

      1. The members of each board shall meet and organize by electing one (1) of their number as chairman, one (1) as vice chairman, one (1) as secretary, and one (1) as treasurer.
      2. Such officers shall be elected annually thereafter in like manner.
    1. The duties of secretary and treasurer may be performed by the same member.
  1. The board may also appoint an executive director who shall serve at the pleasure of the board and receive such compensation as shall be fixed by the board.

History. Acts 1995, No. 617, § 9.

14-238-110. Meetings — Quorum — Actions — Records.

    1. Each board shall meet upon the call of its chair or a majority of its members and at such times as may be specified in its bylaws for regular meetings.
    2. At least annually, the board shall hold a users meeting at which time it shall accept comments and recommendations from its users. The meeting may be held in conjunction with a regular board meeting. Notice of the users meeting shall be sent by first-class mail to each user and may be sent with the user's bill.
    3. A majority of its members shall constitute a quorum for the transaction of business.
    4. No vacancy in the membership of the board shall impair the right of a quorum to exercise all the rights and perform all the duties of the board.
    1. The affirmative vote of a majority of the members present at a meeting of the board shall be necessary for any action taken by the board.
    2. Any action taken by the board shall be by resolution, and such resolution shall take effect immediately unless a later effective date is specified in the resolution.
    1. The secretary of the board shall keep a record of the proceedings of the board and shall be custodian of all books, documents, and papers filed with the board and of the minute book or journal of the board and of its official seal.
    2. The secretary may cause copies to be made of all minutes and other records and documents of the board. He or she may give certificates under the official seal of the board to the effect that the copies are true copies, and all persons dealing with the board may rely upon the certificates.
    3. Records and documents of the boards shall be preserved and maintained at such locations and in such manner as prescribed by ordinance of the county which created the boards.

History. Acts 1995, No. 617, § 10; 1999, No. 942, § 2.

Amendments. The 1999 amendment inserted present (a)(2); and redesignated (a)(2) and (3) as (a)(3) and (4), respectively.

14-238-111. Powers — Duties.

  1. Each board is authorized and empowered:
    1. To have perpetual succession as a body politic and corporate and to adopt bylaws for the regulation of its affairs and the conduct of its business;
    2. To adopt an official seal and alter it at pleasure;
    3. To maintain an office at such place in the county creating the board as it may designate;
    4. To sue and be sued in its own name;
    5. To accomplish waterworks facilities and wastewater facilities projects as authorized by this subchapter and the ordinance creating the board;
    6. To lend money, directly or indirectly, for the financing of the construction, acquisition, and equipment of all or a portion of a waterworks facility and/or wastewater facility project;
    7. To invest money, including a major portion of the proceeds of any issue of bonds for the term of the bonds or a shorter period, in consideration of a contract to make payment or payments to provide for the payment of the principal, premium, if any, and interest on the bonds when due;
    8. To fix, charge, and collect rents, fees, and charges for the use of any waterworks facilities;
    9. To employ and pay compensation to such employees and agents, including attorneys, consulting engineers, architects, surveyors, accountants, financial experts, and such other employees and agents as may be necessary in its judgment, and to fix their compensation;
    10. To do any and all other acts and things in this chapter authorized or required to be done, whether or not included in the powers mentioned in this section; and
    11. To do any and all other things necessary or convenient to accomplish the purposes of this subchapter.
  2. Any board established under this chapter may, in its discretion, invest any of its funds not immediately needed for its purposes in bonds issued under the provisions of this chapter.

History. Acts 1995, No. 617, §§ 11, 17.

14-238-112. Acquisition of property.

  1. Any county may acquire facilities for a waterworks facility and/or wastewater facility project, or any portion thereof, including a project site, by gift, purchase, lease, or condemnation, and may transfer any such facilities to a board created by the county by sale, lease, or gift.
  2. Transfer may be authorized by ordinance of the quorum court without regard to the requirements, restrictions, limitations, or other provisions contained in any other law.
  3. Boards may exercise the power of eminent domain in accordance with the procedures prescribed by § 18-15-201 et seq.

History. Acts 1995, No. 617, § 12.

14-238-113. Funds.

  1. Boards are authorized to use any available funds and revenues for the accomplishment of all or a portion of waterworks facilities and/or wastewater facilities projects and may issue bonds, as authorized by this subchapter, for the accomplishment of all or a portion of waterworks facilities and/or wastewater facilities projects, either alone or together with other available funds and revenues.
  2. Bonds may be issued in principal amounts as shall be sufficient to pay the costs of issuing bonds, the amount necessary for a reserve, if deemed desirable, the amount necessary to provide for debt service until revenues for the payment thereof are available, the amount necessary to acquire a contract providing for payments to the board at a rate or rates at least sufficient to provide for, alone or with any other revenues that may be pledged, debt service on the bonds, if deemed desirable, and to pay any other costs and expenditures of whatever nature incidental to the accomplishment of all or a portion of the waterworks facilities or wastewater facilities project involved and the placing of it into operation.

History. Acts 1995, No. 617, § 14.

14-238-114. Issuance of bonds — Procedure.

    1. The issuance of bonds shall be by resolution of the board.
    2. As the resolution authorizing their issuance may provide, the bonds may:
      1. Be in such form and denominations;
      2. Be exchangeable for bonds of another denomination;
      3. Be issued in one (1) or more series;
      4. Bear such date or dates, and mature at such time or times, not exceeding forty (40) years from the respective dates;
      5. Bear interest at such rate or rates;
      6. Be coupon bonds payable to bearer but subject to registration as to principal or as to principal and interest;
      7. Be made payable at such places within or without the state;
      8. Be payable in such medium of payment;
      9. Be subject to such terms of redemption; and
      10. Contain such terms, covenants, and conditions, including, without limitation, those pertaining to:
        1. The custody and application of the proceeds of the bonds;
        2. The collection and disposition of revenues;
        3. The maintenance of various funds and reserves;
        4. The nature and extent of the security and pledging of revenues;
        5. The rights, duties, and obligations of the board and the trustee for the holders and registered owners of the bonds; and
        6. The rights of the holders and registered owners of the bonds.
      1. There may be successive bond issues for the purpose of financing the same waterworks facilities and/or wastewater facilities project, and there may be successive bond issues for financing the cost of reconstructing, replacing, constructing additions to, extending, improving, and equipping waterworks facilities and/or wastewater facilities projects already in existence, whether or not originally financed by bonds issued under this subchapter, with each successive issue to be authorized as provided by this subchapter.
      2. Priority between and among issues and successive issues as to security of the pledge of revenues and lien on the waterworks facilities and/or wastewater facilities project involved may be controlled by the resolution authorizing the issuance of the bonds.
    3. Subject to the provisions of this section pertaining to registration, the bonds shall have all the qualities of negotiable instruments under the laws of the State of Arkansas.
    4. Without limiting the generality of the foregoing, the resolution may provide for the investment of a major portion of the proceeds of the bonds in consideration of a contract to make payment or payments at least sufficient, alone or with other revenues pledged, to provide for principal, premium, if any, and interest on the bonds, as due.
    1. The resolution authorizing the bonds may provide for the execution by the board of an indenture which defines the rights of the holders and registered owners of the bonds and provides for the appointment of a trustee for the holders and registered owners of the bonds.
    2. The indenture may control the priority between and among successive issues and may contain any other terms, covenants, and conditions that are deemed desirable, including, without limitation, those pertaining to:
      1. The custody and application of proceeds of the bonds;
      2. The collection and disposition of revenues;
      3. The maintaining of rates and charges;
      4. The maintenance of various funds and reserves;
      5. The nature and extent of the security and pledging of revenues;
      6. The rights, duties, and obligations of the board and the trustee; and
      7. The rights of the holders and registered owners of the bonds.
  1. The bonds may be sold at public or private sale for such price, including, without limitation, sale at a discount, and in such manner as the board may determine by resolution.
    1. The bonds shall be executed by the manual or facsimile signature of the chairman and by the manual or facsimile signature of the secretary of the board.
    2. The coupons attached to the bonds may be executed by the facsimile signature of the chairman of the board.
    3. In case any of the officers whose signatures appear on the bonds or coupons shall cease to be such officers before the delivery of the bonds or coupons, their signatures shall nevertheless be valid and sufficient for all purposes.

History. Acts 1995, No. 617, § 15.

14-238-115. Bonds for refunding obligations.

  1. Bonds may be issued for the purpose of refunding any obligations issued under this chapter. Such refunding bonds may be combined with bonds issued under the provisions of § 14-238-114 into a single issue.
  2. When bonds are issued under this section for refunding purposes, the bonds may either be sold or delivered in exchange for the outstanding obligations. If sold, the proceeds may be either applied to the payment of the obligations refunded or deposited in escrow for the retirement thereof, either at maturity or upon any authorized redemption date.
    1. All bonds issued under this section shall in all respects be authorized, issued, and secured in the manner provided for other bonds issued under this chapter and shall have all the attributes of such bonds.
    2. The resolution under which the refunding bonds are issued may provide that any of the refunding bonds shall have the same priority of lien on the revenues pledged for their payment as was enjoyed by the obligations refunded thereby.

History. Acts 1995, No. 617, § 16.

14-238-116. Payment of bonds.

  1. The principal of and interest on the bonds shall be payable from:
    1. Revenues derived from the waterworks facilities and/or wastewater facilities projects acquired, constructed, reconstructed, equipped, extended, or improved, in whole or in part, with the proceeds of the bonds;
    2. Obligations of:
      1. The owners of waterworks facilities and/or wastewater facilities projects; or
      2. Any person with whom the proceeds of the bonds, or a portion thereof, are invested by contract or otherwise;
    3. Any other funds or sources of funds of the board specifically pledged and which are set aside as a special fund or source, other than taxes or assessments for local improvements, for the purpose of paying the principal of and interest on the bonds; or
    4. Any combination of subdivisions (a)(1)-(3) of this section.
  2. The board is authorized to pledge those revenues, obligations, and other special funds or sources to pay the principal of and interest on the bonds.

History. Acts 1995, No. 617, § 19.

14-238-117. Bonds may impose mortgage lien.

  1. The resolution or indenture referred to in § 14-238-114 may, or may not, impose a foreclosable mortgage lien upon or security interest in all or any portion of the lands, buildings, or facilities acquired, constructed, reconstructed, extended, equipped, or improved, in whole or in part, with the proceeds of bonds issued under this chapter, and the nature and extent of the mortgage lien or security interest may be controlled by the resolution or indenture, including, without limitation, provisions pertaining to the release of all or part of the lands, buildings, or facilities from the mortgage lien or security interest and the priority of the mortgage lien or security interest in the event of successive bond issues as authorized by § 14-238-114.
  2. Subject to such terms, conditions, and restrictions as may be contained in the resolution or indenture authorizing or securing the bonds, any holder or registered owner of bonds issued under the provisions of this chapter, or a trustee, on behalf of all holders and registered owners, may, either at law or in equity, enforce the mortgage lien or security interest and may, by proper suit, compel the performance of the duties of the members and employees of the issuing board as set forth in this chapter, the ordinance creating the board, and the resolution or indenture authorizing or securing the bonds.

History. Acts 1995, No. 617, § 20.

14-238-118. Receiver.

    1. In the event of a default in the payment of the principal of or interest on any bonds issued under the provisions of this chapter, any court having jurisdiction may appoint a receiver to take charge of the waterworks facilities and/or wastewater facilities projects upon or in which there is a mortgage lien or security interest securing the bonds in default.
    2. The receiver shall have the power and authority to:
      1. Operate and maintain the waterworks facilities project in receivership;
      2. Charge and collect payments, fees, rents, and charges sufficient to provide for the payment of any costs of receivership and operating expenses of the project in receivership; and
      3. Apply the revenues derived from the project in receivership in conformity with this chapter and the resolution or trust indenture securing the bonds in default.
    3. When the default has been cured, the receivership shall be ended and the project returned to the board.
  1. The relief provided for in this section shall be construed to be in addition and supplemental to the other remedies provided for in this chapter and the remedies that may be provided for in the resolution or trust indenture authorizing or securing the bonds, and shall be so granted and administered as to accord full recognition to priority rights of bondholders as to the pledge of revenues from and mortgage lien on or security interest in projects as specified in and fixed by the resolution or trust indenture authorizing or securing successive issues of bonds.

History. Acts 1995, No. 617, § 21.

14-238-119. Bonds as obligation of issuing board.

  1. It shall be plainly stated on the face of each bond that it has been issued under the provisions of this chapter, that the bonds are obligations only of the board, and that in no event shall they constitute an indebtedness for which the faith and credit of the creating county or any of its revenues are pledged.
  2. No member of the board shall be personally liable on the bonds or for any damages sustained by anyone in connection with any contracts entered into in carrying out the purpose and intent of this chapter unless he shall have acted with a corrupt intent.

History. Acts 1995, No. 617, § 19.

14-238-120. Bonds tax exempt.

Bonds issued under this chapter and the income therefrom shall be exempt from all state, county, and municipal taxes. This exemption includes income and estate taxes.

History. Acts 1995, No. 617, § 18.

14-238-121. Property exempt.

  1. It is declared that each board created pursuant to this subchapter will be performing public functions and will be a public instrumentality of the county creating the board. Accordingly, all properties at any time owned by the board and the income therefrom shall be exempt from all taxation in the State of Arkansas.
  2. Bonds issued under the provisions of this chapter shall be eligible to secure the deposit of public funds.

History. Acts 1995, No. 617, §§ 13, 17.

14-238-122. Report by boards.

  1. Within the first ninety (90) days of each calendar year, each board shall make a written report to the quorum court of the county which created the board concerning its activities for the preceding calendar year.
  2. Each report shall set forth a complete operating and financial statement covering its operation during the year.

History. Acts 1995, No. 617, § 22.

14-238-123. Audits.

  1. Each board shall annually contract with a certified public accountant to perform an audit of the board's revenues which are not pledged to outstanding bonded indebtedness.
  2. The board shall furnish a copy of the audit report to the quorum court of the county which created the board, and the board shall make the audit report available to the public for inspection under the Freedom of Information Act, § 25-19-101 et seq.

History. Acts 1995, No. 617, § 14.

14-238-124. Alternative membership selection.

  1. If so prescribed, successor members shall be elected by a majority of members from a list of nominated candidates.
  2. A candidate may be nominated by petition of twenty-five (25) users or ten percent (10%) of the number of total users as of January 1 preceding the election, whichever is less. A petition shall be filed thirty (30) days prior to the expiration of the term of the member whose seat the candidate seeks.
  3. Each water or sewer service connection, or both, shall be considered a “user” for purposes of this chapter.
  4. Use of this alternative member selection may be prescribed by the ordinance creating the board or the board may irrevocably select this method of member selection by properly adopted resolution. The resolution shall be filed with the county clerk of the creating county.

History. Acts 1999, No. 942, § 3.

Chapters 239-247 [Reserved.]

[Reserved]

Subtitle 15. Solid Waste Disposal, Waterworks, And Sewer Improvement Districts

Chapter 248 General Provisions

[Reserved]

Chapter 249 Suburban Sewer Districts

Cross References. Tort liability immunity, § 21-9-301 et seq.

Preambles. Acts 1941, No. 51 contained a preamble which read:

“Whereas, there are sewer districts in built-up areas outside the corporate limits of cities or towns of the first or second class and there are now no regulations governing the tapping of the sewer lines for making connections, and

“Whereas, in a great majority of instances, the connections are made by individuals and plumbers, which are a great injury to the sewer system and the future operation thereof. Frequently these connections are made by breaking a hole in the sewer main and butting the connection pipe up against the hole and failing to properly cement around it so as to prevent water, dirt, and gravel from getting in the sewers, and the water that comes in at such holes during the rainy seasons of the year, overloads the sewer to such an extent it cannot give good service and the dirt and gravel which goes into the mains of these sewers collects in the low places of the sewers and finally stops up same. Frequently this stoppage is at points where the sewer mains are at great depths in the ground, thereby causing great expense to the sewer district to remove the dirt and gravel.

“In other instances, the connections are made by knocking a hole in the sewer main and allowing the connection pipe to protrude an inch or two into the sewer main, and this protruding pipe in the sewer main almost invariably, in time, stops up the sewer and causes a great deal of trouble, and expense to the sewer district for remedying the trouble.

“Consequently, it is to the interest of the property holders of the sewer district and to the successful operation of the sewer district that the commissioners of such sewer district have authority to regulate all sewer connections by permitting no sewer connections to be made without a permit, and have an inspector to see that all connections are property made;

“Now, therefore….”

Effective Dates. Acts 1941, No. 51, § 7: approved Feb. 13, 1941. Emergency clause provided: “As all sewer improvement districts, which will be affected by this act, are organized for the purpose of making improvements for the health and safety of the people residing in such districts, it is ascertained and hereby declared that unless such districts are authorized to prevent damage to the sewer lines built by the districts by improper connections, the sewer lines will not be able to properly function as was intended and the public health and safety will suffer. It is, therefore, hereby declared that an emergency exists and that for the preservation of the public peace, health, and safety, this act shall take effect immediately upon its passage.”

14-249-101. Applicability.

Sections 14-249-103 — 14-249-106 are primarily intended to regulate connections to sewer systems operating where there are now no regulations or rules as to sewer connections, and they shall not apply to connections made to sewer lines located in cities or towns of the first or second class.

History. Acts 1941, No. 51, § 6; A.S.A. 1947, § 20-807; Acts 2019, No. 315, § 1030.

Amendments. The 2019 amendment inserted “or rules”.

14-249-102. Formation authorized.

The property owners adjacent to any city of the first or second class are authorized to form a sanitary sewer district in the same manner and under the same provisions as drainage districts are now formed.

History. Acts 1939, No. 405, § 1; A.S.A. 1947, § 20-801.

Cross References. Organization of drainage districts, § 14-2-101 et seq.

14-249-103. Procedure for tapping service.

  1. The commissioners of any suburban sewer district, which has built sanitary sewer lines outside the corporate limits of towns and cities of the first and second class, are given the right to establish rules and regulations for tapping the sewer mains built by the district, and the commissioners may require that all parties desiring to tap the sewer main shall obtain a permit before making any excavation to make the tap or sewer connection, and the commissioners shall have the right to charge for the connection permit whatever sum they deem equitable not in excess of six dollars ($6.00) for each connection or tap.
  2. The commissioners shall provide a form of permit for all connections, which shall be issued in triplicate, one (1) going to the party who secured the permit, one (1) to be filed with the secretary of the commission, and one (1) to be retained by the inspector or party issuing the permit.
  3. Any party who makes an excavation for a connection or a connection to the lines of a sanitary sewer district coming under the provisions of §§ 14-249-101 and 14-249-103 — 14-249-106 and who fails to obtain a permit shall be required to pay to the district double the regular connection charge and shall be required to remove the earth so that the inspector can see the connection made. Furthermore, the person shall be subject to prosecution and to a fine of not less than ten dollars ($10.00) for the first offense and one hundred dollars ($100) for the second offense.

History. Acts 1941, No. 51, §§ 1, 4; A.S.A. 1947, §§ 20-802, 20-805.

Cross References. Sewer connections to land outside district, § 14-91-901 et seq.

14-249-104. Employment of inspector.

  1. The board of commissioners of any sewer district may employ an inspector and fix the inspector's compensation, which shall be a portion of each connection fee collected.
  2. The inspector shall make an inspection after the party making the connection has excavated down to the sewer main but before the sewer main is tapped, and then the inspector shall make a second inspection after the tap or connection is made to the sewer main but before the section of the sewer main, which is tapped, is backfilled with earth, so that the inspector can see that the connection is properly made and well cemented in place.
  3. Where two (2) or more sewer districts embrace an area that is adjacent to or overlapped by the various sewer districts, the boards of the several sewer districts may jointly employ an inspector who shall look after connections on the lines of the different sewer systems by which he is employed, in which case, the permit issued shall show not only the location of the connection to be made, for which the permit was issued, but on the lines of what sewer district the connection is to be made.

History. Acts 1941, No. 51, §§ 2, 3; A.S.A. 1947, §§ 20-803, 20-804.

14-249-105. Settlement and report of inspector.

  1. The inspector shall make a settlement, quarterly, with the board of commissioners or with each board of commissioners if he is in the employ of more than one (1) sewer district. Annually the inspector shall make a report to each district, showing each connection made and the fee collected therefor.
  2. This report shall be in triplicate, one (1) copy to be retained by the inspector, one (1) copy to be filed with the secretary of the district, and one (1) copy to be filed with the clerk of the county court.

History. Acts 1941, No. 51, § 4; A.S.A. 1947, § 20-805.

14-249-106. Disposition of fees.

All funds received by the district from connection fees over and above the amount paid the inspector shall be kept in a bank in a separate maintenance account of the sewer district and shall be used in maintaining the sewer system.

History. Acts 1941, No. 51, § 5; A.S.A. 1947, § 20-806.

Chapter 250 Wastewater Treatment Districts

Effective Dates. Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

14-250-101. Title.

This chapter may be referred to and cited as the “Wastewater Treatment Districts Act.”

History. Acts 1983, No. 608, § 1; A.S.A. 1947, § 20-2301.

14-250-102. Definitions.

As used in this chapter, unless the context otherwise requires:

  1. “Acquire” means and includes construct or acquire by purchase, lease, devise, gift, or other mode of acquisition;
  2. “Board” or “board of directors” means the board of a wastewater district organized under the authority of this chapter;
  3. [Repealed.]
  4. “District” or “wastewater district” means a nonprofit regional wastewater treatment district organized under the authority of this chapter;
  5. “Obligation” includes bonds, notes, debentures, interim certificates or receipts, and all other evidences of indebtedness issued by a regional wastewater district formed under this chapter; and
  6. “Person” includes any natural person, firm, association, corporation, business trust, partnership, federal agency, state agency, state or political subdivision thereof, municipality, or any body politic.

History. Acts 1983, No. 608, § 2; A.S.A. 1947, § 20-2302; Acts 1999, No. 1164, § 129; 2019, No. 910, § 3041.

Amendments. The 1999 amendment substituted “Arkansas Department of Environmental Quality” for “Pollution Control and Ecology Department of the State of Arkansas.”

The 2019 amendment repealed (3).

14-250-103. Provisions controlling.

  1. This chapter is complete in itself and shall be controlling.
  2. The provision of any other law of this state, except as provided in this chapter, shall not apply to a wastewater district organized under this chapter.

History. Acts 1983, No. 608, § 15; A.S.A. 1947, § 20-2314.

14-250-104. Exemption from jurisdiction of Arkansas Public Service Commission.

Districts organized under this chapter shall be exempt in any and all respects from the jurisdiction and control of the Public Service Commission of this state.

History. Acts 1983, No. 608, § 10; A.S.A. 1947, § 20-2310.

14-250-105. Construction.

  1. This chapter shall be construed liberally.
  2. The enumerating of any object, purpose, power, manner, method, or thing shall not be deemed to exclude like or similar objects, purposes, powers, manners, methods, or things.

History. Acts 1983, No. 608, § 13; A.S.A. 1947, § 20-2313.

14-250-106. Petition to establish.

  1. When resolutions proposing creation of a regional wastewater collection and treatment district are passed by the councils or other governing bodies of two (2) or more municipalities, a petition to establish a regional wastewater collection and treatment district may be submitted to the circuit court of a county which contains a significant portion of the proposed district.
  2. The petition shall contain a duly executed resolution from each entity authorizing each entity to be included in the district, provided that, in any unincorporated area, fifty-one percent (51%) of property owners by number shall approve by petition before being included in the district. The petition shall also contain:
    1. An accurate description and a map of the area to be served initially;
    2. A brief statement showing the need for formation of the district and describing the benefits to be received by residents or property owners in the area;
    3. The proposed name of the district;
    4. The proposed location of the principal office of the district; and
    5. A bold heading stating that a signature on the petition is a vote to create the district.

History. Acts 1983, No. 608, § 3; A.S.A. 1947, § 20-2303; Acts 2019, No. 1025, § 10.

Amendments. The 2019 amendment added (b)(5); and made a stylistic change.

14-250-107. Review of petition.

    1. Upon the filing of the petition in the office of the circuit court for the county, or any one of the counties, where the district is to be located, in whole or in part, the clerk shall prepare a certified copy of the petition and transmit the copy to the department within five (5) days from the date of the filing of the petition.(2) Upon receipt of the certified copy, the department shall institute an investigation of the proposed district, its territory, and purposes and, within thirty (30) days after receipt of the copy, shall transmit a written report of its findings on the petition to the clerk of the circuit court.
  1. Between thirty (30) and sixty (60) days after the report of the department has been filed in the office of the circuit clerk, the petition shall be presented to the judge of the circuit court of the county, either in term or vacation, and the court shall thereupon enter its order setting a hearing upon the petition and directing the clerk of the court to give notice of the hearing by publication for two (2) consecutive weeks on the website of the county or of the Secretary of State, if available, and in a newspaper or newspapers having a general circulation in each of the entities comprising the proposed district. The notice shall contain:
    1. A brief and concise statement describing the purpose of the hearing;
    2. A description of the territory to be embraced within the district;
    3. A brief and concise statement of the action of the department; and
    4. A warning to all persons residing or owning property within the boundaries of the proposed district to appear upon the date and at the time and place of the hearing to show cause, if there is any, why the petition should not be granted.

(3) The report shall include any pertinent information related to the advisability or inadvisability of establishment of the proposed district.

History. Acts 1983, No. 608, § 4; A.S.A. 1947, § 20-2304; Acts 2019, No. 1025, § 11.

Amendments. The 2019 amendment, in the first sentence of (b), substituted “Between thirty (30) and sixty (60) days” for “Within thirty (30) days” and inserted “on the website of the county or of the Secretary of State, if available, and”; and added “and” at the end of (b)(3).

14-250-108. Hearing on petition — Appeal.

  1. Upon the date and at the time and place named in the notice, the circuit court shall meet, and shall hear all persons who wish to appear and advocate or resist the establishment of the district and, if the court, after being satisfied as to the sufficiency of the petition and the proceedings thereon, finds and deems it is in the best interests of the persons residing or owning property within the boundaries of the proposed district that the district be established under the terms of this chapter, then the court shall enter its order establishing a district embracing the territory described in the petition, subject to all the terms and provisions in this chapter, and designating a name for the wastewater district. The order establishing the wastewater district shall have all the force and effect of a judgment.
  2. Any person aggrieved by the entry of the order by the court may appeal, as in other cases of appeal to the Supreme Court, from the order within thirty (30) days after the order has been made, but, if no appeal is taken within that time, the order authorizing and creating the district shall be deemed conclusive and any person residing in the district may, in like manner and time appeal from any order refusing to establish the district.

History. Acts 1983, No. 608, § 5; A.S.A. 1947, § 20-2305.

14-250-109. Board of directors — Appointment.

  1. All powers granted a district created under this chapter shall be executed by a board of directors. The board shall equal a total of nine (9) directors, which members shall be ascertained by the circuit court according to the population of each entity which is enumerated in the formation order creating the district.
  2. When the circuit court has established any such district, it shall, within a reasonable time thereafter, appoint one (1) director from each of the entities to act as director of said district, and the remaining number of directors as previously ascertained by the court shall be appointed by the city council of the entity within which they are domiciled.
  3. Each of the directors, and all directors appointed thereafter, shall take the oath of office required by Arkansas Constitution, Article 19, § 20, and shall also swear that he will not, directly or indirectly, be interested in any contract made by the board.
    1. Any commissioner failing to take the oath within thirty (30) days after his appointment or election shall be removed from office, and his place shall be filled as are other vacancies.
    2. All oaths of directors shall be executed in writing and filed in the office of the circuit clerk in the county where the petition was originally filed.
  4. Each director shall serve a term as set forth in the district's bylaws, but not to exceed four (4) years. Initial appointments shall be of varying lengths so that no more than one (1) director for each entity shall be replaced at any one time.
  5. Three (3) directors shall be appointed by the governing body of each participating entity which they are to represent.
  6. The petition shall be filed with the county board of election commissioners at least sixty (60) days prior to the general election.
  7. Any director who resigns or vacates his office for any reason other than expiration of his term shall be replaced by the entity he represented.

History. Acts 1983, No. 608, § 6; A.S.A. 1947, § 20-2306; Acts 1993, No. 157, § 1.

Amendments. The 1993 amendment substituted “The board shall equal a total of nine (9) directors, which members shall be ascertained by the circuit court according to the population of” for “which shall be composed of three (3) representatives from” in (a); and, in (b), substituted “any such” for “a,” substituted “one (1) director” for “the three (3) directors,” substituted “director” for “directors,” and substituted “the remaining number of directors as previously ascertained by the court” for “upon the expiration of the terms of the respective appointed directors, subsequent directors.”

14-250-110. Board of directors — Proceedings.

  1. Immediately upon the appointment of the board of directors, the directors shall meet and organize and shall elect a president, vice president, and secretary-treasurer from their membership and shall adopt bylaws which shall govern their proceedings.
    1. Regular meetings of the board of directors shall be held quarterly in the office of the district on a day to be selected by the board.
    2. Notice of the meetings shall be mailed to each director at least five (5) days prior to the date thereof. Special meetings may be held at any time, upon waiver of notice of the meetings by all directors, or may be called by the president or by any two (2) directors at any time, provided that notice in writing, signed by the persons calling any special meeting, shall be mailed to each director at least five (5) days prior to the time fixed for the special meeting.
  2. A majority of the directors shall constitute a quorum for the transaction of business, and, in the absence of any of the elected officers of the district, a quorum at any meeting may select a director to act as the officer pro tempore.
  3. Each meeting of the board, whether regular or special, shall be open to the public, and the board shall at no time go into executive session. All regular board meetings shall be advertised by at least one (1) insertion in a newspaper serving the district. The insertion shall be at least two (2) days prior to the meeting.
  4. The directors provided for in this chapter may receive as compensation the sum of twenty dollars ($20.00) each day for attending meetings of the board, provided that not more than forty dollars ($40.00) shall be paid to any director for meetings held in any one (1) calendar month, together with the director's reasonable and necessary expenses.
  5. The board shall have the right, power, and authority to employ such attorneys, agents, and personnel as it may deem necessary, and to fix their respective compensation.

History. Acts 1983, No. 608, § 6; A.S.A. 1947, § 20-2306.

Research References

Ark. L. Rev.

Watkins, Open Meetings Under the Arkansas Freedom of Information Act, 38 Ark. L. Rev. 268.

14-250-111. Powers.

Each wastewater district shall have power:

  1. To sue and be sued, and complain and defend, in its corporate name;
  2. To adopt a seal, which may be altered at pleasure, and to use it, or a facsimile thereof, as required by law;
  3. To construct, erect, lease as lessee, purchase, and in any manner acquire, hold, own, maintain, operate, sell, dispose of, lease as lessor, exchange, and mortgage plants, buildings, works, machinery, supplies, equipment, facilities, property rights, and transportation and collection lines useful, necessary, or convenient to the purpose of the district as set forth in this chapter;
  4. To acquire, own, hold, use, exercise, and, to the extent permitted by law, sell, mortgage, pledge, hypothecate, and in any manner dispose of franchises, rights, privileges, licenses, rights-of-way, and easements necessary, useful, or appropriate;
  5. To purchase, receive, lease as lessee, or in any other manner acquire, own, hold, maintain, sell, exchange, and use any and all real and personal property, or any interest therein;
  6. To borrow money and otherwise contract indebtedness, to issue its obligations therefor, and to secure the payment thereof by mortgage, pledge, or deed of trust of all or any of its property, assets, franchises, rights, privileges, licenses, rights-of-way, easements, revenues, or income. Any and all securities and evidences of indebtedness issued by a wastewater district formed pursuant to this chapter and the income, interest, and capital gains thereon shall be subject to the income tax and inheritance tax laws of this state, and persons owning or holding securities and evidences of indebtedness or their heirs, devisees, successors, or assigns shall not be required to pay to the State of Arkansas inheritance tax upon the securities or evidences of indebtedness and shall not be required to pay to the State of Arkansas income tax upon the profits and capital gains upon the securities and evidences of indebtedness;
  7. To sell and convey, mortgage, pledge, lease as lessor, and otherwise dispose of all or any part of its property, assets, franchises, rights, privileges, licenses, rights-of-way, and easements;
  8. In connection with the acquisition, construction, improvement, operation, or maintenance of its transportation and collection lines, systems, equipment, facilities, or apparatus, to acquire any highway or any right-of-way, easement, or other similar property rights, or any tax-forfeited land owned or held by the State of Arkansas or any political subdivision thereof;
  9. To have and exercise the right of eminent domain for the purpose of acquiring rights-of-way and other properties necessary in the construction or operation of its property and business in the manner now provided by the condemnation laws of this state for acquiring private property for public use;
  10. To accept gifts or grants of money, services, franchises, rights, privileges, licenses, rights-of-way, easements, or other real or personal property;
  11. To make any and all contracts necessary or convenient for the exercise of the powers granted in this chapter;
  12. To fix, regulate, and collect rates, fees, rents, or other charges for wastewater collection and disposal and any other facilities, supplies, equipment, or services furnished by the wastewater district. The rates shall be just, reasonable, and nondiscriminatory;
  13. To conduct its affairs within and without this state;
  14. To elect, appoint, or employ officers, agents, and employees of the district and to define their duties and fix their compensation;
  15. To do and perform all acts and things and to have and exercise any and all powers necessary, convenient, or appropriate to effectuate the purpose for which the district is organized.

History. Acts 1983, No. 608, § 7; A.S.A. 1947, § 20-2307.

14-250-112. Expansion of service area.

Service may be extended to any person upon majority vote of the board if the extension will not cause injury to any person already served and if the costs for the service are calculated and billed in an equitable manner.

History. Acts 1983, No. 608, § 12; A.S.A. 1947, § 20-2312.

14-250-113. Nonprofit operation.

  1. Wastewater districts formed pursuant to this chapter shall be operated without profit, but the rates, fees, rent, or other charges for wastewater disposal and other facilities, supplies, equipment, or services furnished by the wastewater district shall be sufficient at all times:
    1. To pay all operating and maintenance expenses necessary or desirable for the prudent conduct of its affairs and the principal of and interest on the obligations issued or assumed by the district in the performance of the purposes for which it was organized;
    2. For the creation of adequate reserves.
  2. The revenues of the wastewater district shall be devoted first to the payment of operating and maintenance expenses and the principal and interest on outstanding obligations and, thereafter, to such reserves for improvements, new construction, depreciation, and contingencies as the board may prescribe from time to time.
  3. Revenues not required for the purposes set forth in subsection (b) of this section shall be returned from time to time to the customers of the wastewater district on a pro rata basis, according to the amount of business done with each customer during the period for which the return is made, either in cash, in abatement of current charges for wastewater disposal, or otherwise as the board determines. The return may be made by way of a general rate reduction to customers if the board so elects.

History. Acts 1983, No. 608, § 11; A.S.A. 1947, § 20-2311.

14-250-114. Tax and assessment exemption.

Districts formed pursuant to this chapter shall be exempt from all excise taxes of whatsoever kind or nature and, further, shall be exempt from payment of assessments in any general or special taxing district levied upon the property of the water district, whether real, personal, or mixed.

History. Acts 1983, No. 608, § 9; A.S.A. 1947, § 20-2309.

14-250-115. Service or rate grievance — Right to petition.

  1. Any person aggrieved by the service furnished or rates charged by a district shall have, as a matter of right, the right to petition the grievance from the decision or action of the district to the circuit court of the county in which the district was formed.
  2. Upon the petition being filed, the circuit court shall hear the petition de novo and is empowered to make such orders as may be necessary and proper in equity.

History. Acts 1983, No. 608, § 8; A.S.A. 1947, § 20-2308.

Chapter 251 Water Improvement Districts

Effective Dates. Acts 1959, No. 204, § 13: approved Mar. 25, 1959. Emergency clause provided: “It is found to be a fact that the water supplies of many municipalities are being endangered by improper protection of the lakes, reservoirs and streams from which their water supply is taken; that recreational activity upon the lands and waters held for waterworks purposes will be of great benefit to the public health and welfare if adequate controls are provided; and an emergency is hereby created and is declared and this Act, being necessary for the immediate preservation of the public peace, health, safety and welfare, shall be in force from and after its passage.”

Research References

Am. Jur. 78 Am. Jur. 2d, Waters, § 119.

14-251-101. Definition.

The term “operating authority”, as used in this chapter unless the context otherwise requires, is defined to mean either the legislative body or the board of commissioners, whichever is charged in a given instance with the responsibility of operating the municipal waterworks system.

History. Acts 1959, No. 204, § 2; A.S.A. 1947, § 19-4231.

14-251-102. Applicability.

The provisions of this chapter, with the exception of §§ 14-251-104 and 14-251-108, shall apply to all water improvement districts.

History. Acts 1959, No. 204, § 2; A.S.A. 1947, § 19-4231.

14-251-103. Penalty.

The violation of this chapter or of any rule or regulation adopted by the operating authority shall constitute a misdemeanor, and upon conviction the offender shall be fined not less than fifty dollars ($50.00) nor more than two hundred dollars ($200) for each offense.

History. Acts 1959, No. 204, § 8; A.S.A. 1947, § 19-4238.

14-251-104. Summons and prosecution for offense.

  1. Wardens may issue a special summons returnable to the municipal court of the municipality owning the waterworks system. The summons shall specify the date of the offense and the law or the number of the rule or regulation violated.
  2. The original of the summons shall be retained by the warden. A copy shall be delivered to the offender and two (2) copies delivered to the clerk of the municipal court within ten (10) days after issuance of the summons.
  3. The clerk of the court shall insert the date of hearing on one (1) copy of the summons and the copy shall be served on the offender by regular mail or may be served in person by the warden or by any other person authorized by law to serve process.
  4. It shall be the duty of the prosecuting attorney of the county where the municipality is located to prosecute offenders.

History. Acts 1959, No. 204, § 7; A.S.A. 1947, § 19-4237.

14-251-105. Injunction.

  1. Anything to the contrary in this chapter notwithstanding, the State Board of Health may obtain an injunction restraining the operating authority from permitting a recreational activity if the rules and regulations adopted by the operating authority or if the provisions of any lease granted by the operating authority, do not adequately protect the water supply from pollution, or if the rules and regulations or the terms of any lease are not properly enforced by the operating authority.
  2. Any operating authority may obtain prohibitive and mandatory injunctions against any person, firm, or corporation polluting its water supply or refusing to obey lawful rules and regulations adopted by the operating authority or the State Board of Health for the protection of any municipal water supply.

History. Acts 1959, No. 204, § 11; A.S.A. 1947, § 19-4238.2; Acts 2019, No. 315, § 1031.

Amendments. The 2019 amendment inserted “rules and” in (b).

14-251-106. Recreational activities on lands and waters authorized — Exceptions.

  1. The operating authority of any municipally owned waterworks system which maintains adequate controls against pollution shall have the authority to permit recreational activities upon the lands and waters owned by the municipality for waterworks purposes, to construct recreational facilities, to collect fees and rentals for permitting recreational activities, and to prescribe rules and regulations prohibiting, permitting, and governing recreational activities.
    1. The rules and regulations shall have the force and effect of any other laws of this state and shall be effective wherever the lands and waters are located.
    2. A copy of all rules and regulations, or amendments thereto, adopted by the operating authority shall be furnished to the State Board of Health within thirty (30) days after adoption.
    3. If the operating authority elects to permit hunting or fishing upon its premises, the laws of this state and the rules and regulations of the Arkansas State Game and Fish Commission governing hunting and fishing shall remain in full force and effect and may not be abrogated by the rules and regulations of the operating authority.
  2. Regardless of any rule or regulation adopted by the operating authority, it shall be unlawful for any person to wade, bathe, or swim in any lake or reservoir of less than seven hundred (700) acre surface used by a municipality for its water supply, or to wade, bathe, or swim in that part of any nonnavigable stream located upon land belonging to the municipality which lies above the water intake or impounding dam owned by the municipality. However, the prohibition set forth in this subsection shall not apply to reservoirs whose water is diverted into a natural stream and flows by gravity down the stream three (3) or more miles before reaching the water intake of the municipality unless all of the land of the stream belongs to the municipality.
  3. It shall be unlawful for any unauthorized person to camp upon land not owned by him which is located above any impounding dam for the municipal water supply and within the drainage area of the reservoir, lake, or nonnavigable stream from which the water supply is taken. However, where any land adjoining the drainage area, reservoir, lake, or nonnavigable stream from which the water supply is taken is within the confines of any national forest reserve or national park, persons may camp upon the lands enclosed in the national forest reserve or national park upon such terms and conditions which are or may be permitted by the rules and regulations governing the national forest reserves or national parks.

History. Acts 1959, No. 204, §§ 3-5; A.S.A. 1947, §§ 19-4232 — 19-4234.

Case Notes

Cited: Magruder v. Ark. Game & Fish Comm'n, 293 Ark. 39, 732 S.W.2d 849 (1987).

14-251-107. Lease of property for recreational purposes.

  1. The operating authority may lease portions of its property for recreational purposes upon such terms as it deems advisable and may permit the lessee to construct upon the leased premises such recreational and merchandising facilities as the operating authority thinks proper.
  2. Public notice of intention to lease the premises shall be published at least one (1) time and at least two (2) weeks before the bid date in a newspaper of general circulation in the county where the municipality is situated.
  3. The operating authority may reject all bids or may accept the bid which it believes most advantageous, bearing in mind the experience and financial resources of the bidder.

History. Acts 1959, No. 204, § 6; A.S.A. 1947, § 19-4235.

14-251-108. Designation of warden.

  1. Any employee of the operating authority may be designated as a warden.
  2. Wardens shall have the authority to arrest or apprehend any person whom they believe to have violated this chapter, or the boating laws of this state, or the rules and regulations of the operating authority which are authorized in this chapter, or the rules of the State Board of Health pertaining to protection of municipal water supplies and may take the offender when apprehended before any court having jurisdiction of the offense. Wardens shall have no authority to make arrests for violation of the game and fish laws, rules, and regulations of this state.

History. Acts 1959, No. 204, § 7; A.S.A. 1947, § 19-4237; Acts 2019, No. 315, § 1032.

Amendments. The 2019 amendment deleted “and regulations” preceding “of the State Board of Health” in (b).

14-251-109. Nonliability of employees.

No municipality or operating authority permitting any activities authorized by this chapter shall be liable for the torts of its servants, agents, or employees, committed while acting within the scope of their employment in carrying out the duties assigned to them in connection with the aforesaid recreational activities.

History. Acts 1959, No. 204, § 10; A.S.A. 1947, § 19-4238.1.

14-251-110. Disposition of fees, rentals, etc.

All fees, rentals, or other income of any type derived by the operating authority as a result of the acts authorized in this chapter, may be treated as recreational rather than as water revenues and may be used to defray the cost of providing or maintaining recreational facilities and providing for protection of the water supply against pollution because of recreational activities.

History. Acts 1959, No. 204, § 9; A.S.A. 1947, § 19-4236.

Chapters 252-260 [Reserved.]

[Reserved]

Subtitle 16. Public Health And Welfare Generally

Chapter 261 General Provisions

[Reserved]

Chapter 262 Local Health Authorities

Preambles. Acts 1925, No. 360 contained a preamble which read:

“Whereas, It is generally recognized that the best results are secured from intensive county health work co-ordinated with the State health program, and

“Whereas, Educations, health authorities and many others recognize that much greater returns will be received from the expenditures of educational funds and that less economic waste will result if the children are free from malaria, hookworm disease, malnutrition and serious correctable defects, Therefore.”

Acts 1979, No. 601 contained a preamble which read:

“Whereas, the health of the youth in the State should be given primary consideration by all public health agencies; and

“Whereas, the congregation and close relationship of young people in the public schools increases the risk of the rapid spread of contagious diseases; and

“Whereas, the public school officials and public health agencies should cooperate closely to protect the health of the students in the public schools and to avoid the spread of disease among students;

“Now therefore….”

Effective Dates. Acts 1875, No. 1, § 95: effective on passage.

Acts 1913, No. 96, § 33: approved Feb. 25, 1913. Emergency declared.

Acts 1949, No. 79, § 1: approved Feb. 11, 1949. Emergency clause provided: “Whereas, it has been found that an acute shortage of Medical Doctors is vitally affecting the public health of the State; and

“Whereas, it has been found that time spent in the armed services should be counted as time spent within the State; and

“Whereas, this Act being necessary for the preservation of the public peace, health and safety, an emergency is declared to exist and this Act shall be in full force and effect from and after its passage.”

Acts 1949, No. 186, § 15: approved Feb. 28, 1949. Emergency clause provided: “Whereas, the control, supervision, and quarantine of contagious communicable diseases and the maintenance and supervision expedient for the preservation of public safety, peace and health that this act become immediately effective and shall be in full force and effect from and after its passage.”

Acts 1975 (Extended Sess., 1976), No. 1065, § 2: Jan. 29, 1976. Emergency clause provided: “It is hereby found and determined by the General Assembly that clarification of the employment status of certain employees of city and county health offices is necessary for the continued efficient provision of health services to the people of Arkansas. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1987, No. 146, § 4: Mar. 10, 1987. Emergency clause provided: “It is hereby found and determined by the General Assembly that due to current revenue short falls the services offered by the Department of Health to the citizens of this State are threatened; that an equitable method of maintaining these services is to provide for a fee to be paid by those citizens who request the assistance of the State Department of Health; that this Act is designed to provide for the collection of such fees and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1987, No. 864, § 3: Apr. 13, 1987. Emergency clause provided: “It is hereby found and determined by the General Assembly that because of the case Ricarte v. State, CR 86-31, a question has arisen over the validity of Act 1065 of the Extended Session of 1976; that this Act is a reenactment of the former law; and that the immediate passage of this Act is necessary to clarify the state of the law on this issue. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1997, No. 179, § 38: Feb. 17, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 10 of the First Extraordinary Session of 1995 abolished the Joint Interim Committee on Public Health, Welfare, and Labor and in its place established the House Interim Committee and Senate Interim Committee on Public Health, Welfare, and Labor; that various sections of the Arkansas Code refer to the Joint Interim Committee on Public Health, Welfare, and Labor and should be corrected to refer to the House and Senate Interim Committees on Public Health, Welfare, and Labor; that this act so provides; and that this act should go into effect immediately in order to make the laws compatible as soon as possible. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

Research References

Am. Jur. 39 Am. Jur. 2d, Health, § 9 et seq.

Ark. L. Rev.

Legal Control of Business in Arkansas, 5 Ark. L. Rev. 137.

C.J.S. 62 C.J.S., Mun. Corp., § 651 et seq.

14-262-101. Penalties.

  1. Every firm, person, or corporation violating any of the provisions of this chapter, or any of the orders, rules, or regulations made and promulgated in pursuance hereof, shall be deemed guilty of a misdemeanor and upon conviction thereof shall be punished by a fine of not less than one hundred dollars ($100) nor more than five hundred dollars ($500) or by imprisonment not exceeding one (1) month, or both. Each day of violation shall constitute a separate offense.
    1. Every firm, person, or corporation who violates any of the rules or regulations issued or promulgated by the board, or who violates any condition of a license, permit, certificate or any other type of registration issued by the State Board of Health may be assessed a civil penalty by the board. The penalty shall not exceed one thousand dollars ($1,000) for each violation. Each day of a continuing violation may be deemed a separate violation for purposes of penalty assessments. However, no civil penalty may be assessed until the person charged with the violation has been given the opportunity for a hearing on the violation.
    2. All fines collected under this subsection shall be deposited into the State Treasury and credited to the Public Health Fund to be used to defray the costs of administering this section.
    3. Subject to such rules as may be implemented by the Chief Fiscal Officer of the State, the disbursing officer for the Department of Health is authorized to transfer all unexpended funds relative to fines collected under this subsection, as certified by the Chief Fiscal Officer of the State, to be carried forward and made available for expenditures for the same purpose for any following fiscal year.
    4. All rules promulgated pursuant to this subsection shall be reviewed by the House Committee on Public Health, Welfare, and Labor and the Senate Committee on Public Health, Welfare, and Labor or appropriate subcommittees thereof.

History. Acts 1913, No. 96, § 28; C. & M. Dig., § 5146; Pope's Dig., § 6417; A.S.A. 1947, § 82-121; Acts 1987, No. 146, § 2; 1991, No. 990, §§ 2, 5; 1997, No. 179, § 10; 2019, No. 315, § 1033.

Publisher's Notes. Acts 1913, No. 96, § 28, is also codified as § 20-7-101.

Amendments. The 1997 amendment substituted “House and Senate Interim Committees” for “Joint Interim Committee” in (b)(4).

The 2019 amendment deleted “and regulations” following “rules” in (b)(3) and (b)(4).

14-262-102. City board of health.

  1. A city of the first class or city of the second class may establish a city board of health to be constituted as follows:
    1. The mayor of the city may appoint no fewer than five (5) persons, two (2) of whom shall be physicians who shall be graduates of reputable medical colleges and of good professional standing, who shall constitute a city board of health, and who shall have and exercise the powers conferred upon those boards by law and by the ordinances of the city; and
    2. The mayor of the city shall be an ex officio member of the board.
    1. The city council shall have the power to establish a board of health.
    2. The board shall have jurisdiction for one (1) mile beyond the city limits, and for quarantine purposes, in cases of epidemic, five (5) miles.
  2. The city council shall have power to invest the board with such powers and impose upon it such duties as shall be necessary to:
    1. Secure the city and its inhabitants from the evils of contagious, malignant, and infectious diseases;
    2. Provide for its proper organization and the election or appointment of the necessary officers; and
    3. Make such bylaws, rules, and regulations for its government and support as shall be required for enforcing the prompt and efficient performance of its duties and the lawful exercise of its powers.

History. Acts 1875, No. 1, § 6, p. 1; 1913, No. 96, § 14; C. & M. Dig., §§ 5154, 7593; Pope's Dig., §§ 6433, 9679; A.S.A. 1947, §§ 82-203, 82-204; Acts 2003, No. 282, § 1.

Amendments. The 2003 amendment rewrote the introductory paragraph of (a); and substituted “may appoint no fewer than” for “at the first meeting of the city council after assuming the duties of his office shall appoint not less than” in (a)(1).

Case Notes

Contracts.

A contract of the board of health with a member thereof for medical services is void as against public policy, and such member can only recover on a quantum meruit for services rendered, and not on the contract. Spearman v. Texarkana, 58 Ark. 348, 24 S.W. 883 (1894).

Nuisances.

Cities may confer power on board of health to abate nuisance. Gaines v. Waters, 64 Ark. 609, 44 S.W. 353 (1898); Waters v. Townsend, 65 Ark. 613, 47 S.W. 1054 (1898).

In a case involving a rock quarry that was located entirely outside, but within one mile of, the corporate limits of a city in which a district court issued a preliminary injunction enjoining Fayetteville, Ark. Ordinance No. 5280 prior to its enforcement date, city argued that the company that operated the quarry was unlikely to succeed on the merits of its claim that the city authority to license and regulate its quarry, because the ordinance was enacted pursuant to § 14-54-103(1). Contrary to the city's argument, since the quarry was located outside the corporate city limits but within one mile of those limits, the city could not regulate the quarry without a judicial determination that its activities constituted a nuisance, and no such judicial determination had been made; the quarry was not a nuisance per se. Rogers Group, Inc. v. City of Fayetteville, 629 F.3d 784 (8th Cir. 2010).

Quarantine.

This section has no reference to the place a person may be confined for quarantine purposes, but only to the extent of the jurisdiction beyond the city limits for the better protection of the inhabitants of the city. City of Little Rock v. Smith, 204 Ark. 692, 163 S.W.2d 705 (1942).

City ordinance providing that whenever a person who upon examination is found to be infected with a venereal disease in a communicable stage fails to take treatment adequate for the protection of the public health, city health officer may commit such person to a hospital or other place within the state for treatment was not unconstitutional on ground the regulations were unreasonable. City of Little Rock v. Smith, 204 Ark. 692, 163 S.W.2d 705 (1942).

14-262-103. City health officer.

  1. The office of city health officer may be created by the governing body of a city of the first class, city of the second class, or an incorporated town.
  2. The office of city health officer shall be filled by a competent physician who is legally qualified to practice medicine within this state, a graduate of a reputable medical college, and of reputable professional standing.
      1. It is the duty of the mayor of each incorporated city and town within this state to elect a qualified person to the office of city health officer if the governing body of the city or town creates the office.
      2. The appointment shall be approved by a majority of the votes of the city or town council.
    1. After appointment, the city health officer shall:
      1. Take and subscribe to the constitutional oath of office;
      2. File a copy of the appointment with the State Board of Health; and
      3. Not be deemed to be legally qualified until the copies have been so filed.
    1. Each city health officer shall perform such duties as may be required by the ordinances of his or her city or town.
    2. The officer shall discharge and perform such duties as may be prescribed for him or her under the directions, rules, regulations, and requirements of the board.
    3. The officer shall be required to aid and assist the board in all matters of quarantine, vital and mortuary statistics, inspection, disease prevention and suppression, and sanitation within his or her jurisdiction.
    4. The officer shall at all times report to the board, in such manner and form as shall be prescribed by the board, the presence of all contagious, infectious, and dangerous epidemic diseases within his or her jurisdiction and shall make such other and further reports in the manner and form and at the times as the board shall direct, touching all matters as may be proper for the board to direct.
    5. The officer shall aid the board at all times in the enforcement of proper rules, regulations, and requirements in the enforcement of all sanitary laws, quarantine regulations, and vital statistics collections and shall perform any other duties the board shall direct.
  3. The compensation of city health officers shall be fixed by the mayor and council of the respective towns and cities within this state.

History. Acts 1913, No. 96, §§ 15-20; C. & M. Dig., §§ 5155-5160; Pope's Dig., §§ 6434-6439; A.S.A. 1947, §§ 82-205 — 82-210; Acts 2003, No. 282, § 2.

Publisher's Notes. Acts 1913, No. 96, § 15, also provided for the abolishment of the office of city physician in incorporated cities and towns and of boards of health in incorporated towns, and further provided that city physicians then in office would serve as city health officers until the expiration of their terms.

Amendments. The 2003 amendment substituted “may be created by the governing body of a city of the first class, city of the second class, or an incorporated town” for “is created” in (a); rewrote (c); deleted former (d) and redesignated the remaining subsections accordingly; and rewrote present (d).

Research References

U. Ark. Little Rock L.J.

Survey of Arkansas Law, Public Law, 1 U. Ark. Little Rock L.J. 230.

Case Notes

Regulations of State Board.

Regulation of State Board of Health that any health authority may commit any commercial prostitute or other person found afflicted with infectious disease, who refuses or fails to take treatment adequate for the protection of the public health, to a hospital or other place in the state for treatment, authorized city health officer to commit a person convicted of prostitution and found infected with a venereal disease to a place outside the city but within the state for treatment. City of Little Rock v. Smith, 204 Ark. 692, 163 S.W.2d 705 (1942).

14-262-104. County health officer.

  1. The office of county health officer is created in each county within the state.
  2. The State Board of Health, upon recommendation of the county judge, shall appoint for each county in this state a health officer who shall serve a term of four (4) years and may be reappointed for additional terms.
    1. The county health officer shall be a graduate of an accredited and reputable medical or osteopathic university, shall be licensed to practice medicine in Arkansas, and shall have had at least three (3) years' experience in the practice of medicine in this state.
    2. Time spent in the practice of medicine while in the services of the United States Armed Forces shall be accepted as equivalent to time spent in the practice of medicine in Arkansas.
      1. The county health officer shall serve as a key public health representative in the local community.
      2. The duties of the county health officer shall include without limitation:
        1. Promoting the use of local health unit services;
        2. Advocating for public health policy initiatives with local and state policy makers;
        3. Providing assistance to local public health education and promotion of initiatives; and
        4. Establishing a regular communication process with the local health unit administrator.
    1. The county health officer also shall aid and assist the board and collaborate with the State Health Officer and the Department of Health in county emergency preparedness response and planning including without limitation:
      1. Implementing orders of the State Health Officer if isolation, quarantine, or emergency legal measures are required;
      2. Participating in the development, review, or both development and review of local emergency plans; and
      3. Serving as a local spokesperson to media, general public, and medical community in the event of a public health emergency.
    2. The county health officer also shall support the board, the State Health Officer, and the department with any infectious or communicable disease outbreaks by, without limitation:
      1. Assisting in containment and management of an infectious disease outbreak under the direction of state public health officials;
      2. Providing prescriptive support for medication as appropriate; and
      3. Serving as local spokesperson to media, the community at large, and the medical community in the event of infectious disease outbreak based on information provided by the department.
  3. The county health officer shall make reports to the board and the department as requested.
  4. The county health officer also shall perform other duties as prescribed under rules of the board.
  5. The county health officer may receive an annual salary to be fixed by the county court, which may be payable monthly out of the county treasury.
  6. Upon the failure of the county health officer to perform the duties of his or her office, as required by this section, he or she may be removed by the board.
  7. When performing official duties, a county health officer is immune from civil suit and liability in the same manner officers and employees of the State of Arkansas are immune under § 19-10-305 and Arkansas Constitution, Article 5, § 20.

History. Acts 1913, No. 96, § 13; C. & M. Dig., § 5153; Pope's Dig., § 6432; Acts 1949, No. 79, § 1; A.S.A. 1947, § 82-201; Acts 2009, No. 696, § 1.

Publisher's Notes. Acts 1913, No. 96, § 13, also provided for the abolishment of the office of county physician and of county boards of health, and further provided that county physicians then in office would serve as county health officers until the expiration of their terms.

Amendments. The 2009 amendment, in (b), substituted “upon recommendation” for “with the approval” and substituted “four (4) years and may be reappointed for additional terms” for “two (2) years”; subdivided (c) and substituted “an accredited and reputable medical or osteopathic university, shall be licensed to practice medicine in Arkansas” for “a reputable medical college” in (c)(1); rewrote (d); inserted (e), (f), and (i), and redesignated the remaining subsections accordingly; and made related and minor stylistic changes.

Case Notes

Nature of Position.

The position of county health officer is not an office and does not come within the constitutional provision concerning officers holding over after the expiration of their respective terms until the election and qualification of their successors. Middleton v. Miller County, 134 Ark. 514, 204 S.W. 421 (1918).

14-262-105. Expenses and claims.

  1. All expenses legally incurred for the work of protecting the public health outside of cities and towns shall be paid by the county in which the expense is incurred, and claims shall be allowed by the county court when proved as other claims against a county are required by law to be proved; however, every claim must be approved by the county health officer before allowance.
  2. The expense legally incurred for the protection of public health inside corporate limits of cities and towns shall be paid out of the treasury of the cities and towns in which the work is done.
  3. All of the expenditures made by representatives of the State Board of Health and chargeable, under the provisions of this act, to any county, city, or town shall be made only with the advice and consent of the county judge of the county, or of the city board of health in any city of the first or second class, or of the mayor and town council in any incorporated town.
  4. From the judgment of the county court upon a claim, the claimant or any taxpayer of the county may appeal to the circuit court and thence to the Supreme Court.

History. Acts 1913, No. 96, § 22; C. & M. Dig., § 5137; Pope's Dig., § 6408; A.S.A. 1947, § 82-211.

Meaning of “this act”. Acts 1913, No. 96, codified as §§ 14-262-10114-262-105, 20-7-10120-7-106, 20-7-109, 20-7-110, 20-7-114, 20-7-118, 20-7-121, 20-7-122, and 20-7-125.

14-262-106. County or district health departments — Establishment.

  1. Any county may, by proper order of the county court, establish and maintain a county health department.
  2. Any two (2) or more counties may, with approval of the State Board of Health and, by order of the county court of the respective counties, establish and maintain a district health department.
  3. As used in this act, unless the context otherwise requires, “department” means a county or district health department which shall consist of a public health officer and all other personnel employed or retained under the provisions of this act.
    1. Whenever a petition requesting the establishment and maintenance of a county health department is signed by fifteen percent (15%) or more of the qualified electors of a county and is presented to the county court of that county, the county court shall, by an order, instruct the county clerk to certify to the county board of election commissioners the proposition of the establishment and maintenance of such a health department, and the county board of election commissioners shall make provision for submitting the proposition to the electors of the county at the next general election.
    2. If a majority of all the votes cast upon the proposition is in favor of it, the county court shall immediately proceed to establish a health department.
    1. Whenever a petition requesting the establishment and maintenance of a multiple-county health department is signed by fifteen percent (15%) or more of the qualified electors in each of at least two (2) adjacent counties, is presented to the respective county courts, and is approved by the State Board of Health, each county court shall, by an order, instruct its respective county clerk to certify to its county board of election commissioners the proposition of the establishment and maintenance of such a health department, and the county board of election commissioners shall make provision for submitting the proposition to the electors of the county at the next general election.
    2. If a majority of all the votes cast upon the proposition in each county is in favor of it, the several county courts shall immediately proceed to organize a multiple-county health department and shall agree on the conditions governing the organization and operation of the department and the apportionment of the cost thereof.
  4. In the event three (3) or more counties have joined in petitioning for the establishment and maintenance of a multiple-county health department and not all of the counties shall vote in favor of the proposition, but two (2) or more do vote in favor of the proposition, then, with the approval of the State Board of Health, they shall proceed to organize a multiple-county health department; however, no county shall be forced to participate in the establishment and maintenance of a multiple-county health department that votes “NO” regarding the creation of the health unit.
  5. No county, whether in a multiple unit or otherwise, voting “NO” regarding the establishment and maintenance of a county health department shall be forced to create a health unit.

History. Acts 1949, No. 186, §§ 1, 2; A.S.A. 1947, §§ 82-214, 82-215.

Meaning of “this act”. Acts 1949, No. 186, codified as §§ 14-262-10614-262-117.

14-262-107. County or district health departments — Jurisdiction.

  1. The jurisdiction of any county or district health department shall extend over all unincorporated areas and over all municipal corporations within the territorial limits of the county or the counties comprising the district, but not over the territory of any municipal corporation which at the time of the establishment of the county or district health department had a population in excess of twenty-five thousand (25,000) according to the most recent federal census and which maintains its own health department and employs a supervising health officer; however, any such municipal corporation not otherwise within the jurisdiction of a department, by the passage of an ordinance by three-fourths (¾) of the elected members of its city council, board of trustees, or other governing body, and by agreement with the county or district board of health approved by the State Board of Health, may merge its department with the county or district health department.
  2. All local boards of health existing within the county or district, except those of any municipal corporation which at the time of the establishment of the county or district health department had a population in excess of twenty-five thousand (25,000) according to the most recent federal census and which maintains its own health department, employs a supervising health officer, and does not elect to merge its health activities with the county or district health department shall be dissolved upon the organization of a county or district health department under the provisions of this act, or upon the acceptance of a county into a district health department.
  3. All cities of the first class under twenty-five thousand (25,000) in population incorporated in any county or district health department may contribute an equitable share of the annual financial cost of the health department.

History. Acts 1949, No. 186, § 4; A.S.A. 1947, § 82-217.

Meaning of “this act”. See note to § 14-262-106.

14-262-108. County or district health departments — Personnel.

  1. The administrative and executive head of each county and district health department shall be a public health officer, which office is created by this section.
    1. The public health officer shall be appointed by the county or district board of health to serve for a term of four (4) years and shall possess such qualifications as may be prescribed by the State Board of Health.
    2. He shall be employed on a full-time basis and shall receive such compensation and expense allowance as may be recommended by the county or district board and with the approval of the State Board of Health.
    1. All other personnel required by a department shall be appointed by the public health officer from the civil service list, where one exists, and shall possess qualifications approved by the State Board of Health.
    2. All personnel shall perform the duties as shall be prescribed by the public health officer.

History. Acts 1949, No. 186, § 6; A.S.A. 1947, § 82-219.

14-262-109. County or district health departments — Powers and duties.

  1. Each county and district health department shall have and exercise, in addition to all other powers and duties imposed upon it by law, the following powers and duties:
    1. To administer and enforce the laws pertaining to public health and vital statistics and the orders, rules, and standards promulgated by the State Board of Health;
    2. To investigate and control the cause of epidemic and communicable disease affecting the public health;
    3. To establish, maintain, and enforce isolation and quarantine, and, in pursuance thereof and for this purpose only, to exercise such physical control over property and over the persons of the people within the jurisdiction of the department as the department may find necessary for the protection of the public health;
    4. To make any necessary sanitary and health investigations and inspections on its own initiative or in cooperation with the Department of Health as to any matters affecting public health, within the jurisdiction and control of the department;
    5. To cooperate with the Department of Health and the State Board of Health in all matters pertaining to public health;
    6. To initiate and carry out health programs, not inconsistent with law, that may be deemed necessary or desirable for the protection of the public health and the control of disease.
  2. A representative of the county health department may visit any or all schools in a school district when requested to do so by the superintendent of schools or other appropriate official of the district for the purpose of checking for and assisting with medical problems of students at the school.

History. Acts 1949, No. 186, § 7; 1979, No. 601, § 1; A.S.A. 1947, §§ 82-220, 82-220.1; Acts 2019, No. 315, § 1034.

Amendments. The 2019 amendment deleted “regulations” following “rules” in (a)(1).

14-262-110. County or district health departments — Dissolution.

  1. Any county or district health department may be dissolved by a referendum initiated by petition or submitted by vote as prescribed in § 14-262-106.
  2. The proposition shall be stated “FOR the discontinuance of the county (or district) health department” and “AGAINST the discontinuance of the county (or district) health department.”

History. Acts 1949, No. 186, § 9; A.S.A. 1947, § 82-222.

14-262-111. County or district health departments — Joining or withdrawing.

    1. Any county adjacent to a district maintaining a district health department may, with the approval of the State Board of Health, become a part of the district by either of the following two (2) methods:
      1. By agreement between the county courts of the counties comprising the district;
      2. By a petition signed by one hundred (100) or more of the qualified electors of the county presented to the county court of the county. The court shall thereupon, by an order, direct the clerk of the county to certify to the county board of election commissioners the proposition to be submitted to the electors of the county at the next general election, and, in the event that a majority vote in favor of the proposition, the county shall thereupon be added to the district.
    2. Upon being accepted into a district, a county shall thereupon become subject to all of the provisions of this act as though it were originally a part of the district.
  1. Any municipal corporation which has voluntarily merged its health department with a county or district health department, under the authority of § 14-262-107, may withdraw from the county or district health department by resolution of its city council, board of trustees, or other governing body; however, no municipal corporation may withdraw from a department within the two-year period following the municipal corporation's becoming a part of the department, and then only after ninety (90) days' written notice given to the department.
  2. Any county which has become a part of a district health department may withdraw from the district health department pursuant to the following procedure: Upon a petition of one hundred (100) or more qualified electors, the county court shall, by an order, direct the county clerk to certify to the county board of election commissioners the question of withdrawal, which shall be submitted to the electors of the county at the next general election; in the event the vote is favorable to the withdrawal, the county court shall thereupon formally withdraw the county from the district health department, but only after ninety (90) days' written notice is given to the district health department, and the withdrawal may not be less than two (2) years after the entry of the county into the district health department.

History. Acts 1949, No. 186, § 10; A.S.A. 1947, § 82-223.

Meaning of “this act”. See note to § 14-262-106.

14-262-112. Public health officers — Powers and duties.

In addition to the other powers and duties conferred and imposed upon a public health officer in this act, the officer, in person or through the other officers and employees of the department, shall have and exercise the following powers and duties:

  1. To administer and enforce the public health laws of the State of Arkansas; the orders, rules, and standards of the State Board of Health; and the orders, rules, and regulations of the county or district board of health;
  2. To exercise all powers and duties conferred and imposed upon county or district health departments not expressly delegated to county or district boards of health by the provisions of this act;
  3. To act as the local registrar of vital statistics for the area over which his or her county or district health department has jurisdiction, as follows:
    1. In county health departments, he or she shall collect fees for this service that shall be credited to the department fund and used in the administration of the department;
    2. In district health departments, the health officer shall appoint a deputy registrar in each county who shall be a full-time employee of the department, and the fees collected for this service shall be credited to the department and used in the administration of the department.
  4. To be custodian of all property and records of the department;
  5. To submit to the State Board of Health an annual report of the administration of his or her department and such information as may be required, to maintain such records as may be prescribed by the State Board of Health, and to provide such reports as may be requested, including the provision of an annual report.

History. Acts 1949, No. 186, § 8; A.S.A. 1947, § 82-221; Acts 2019, No. 315, § 1035.

Amendments. The 2019 amendment deleted “regulations” following the first occurrence of “rules” in (1).

Meaning of “this act”. See note to § 14-262-106.

14-262-113. County or district boards of health — Appointment.

  1. Within thirty (30) days after the entry of an order by the county court to establish and maintain a county or district health department, the county court or courts, as the case may be, shall proceed to organize the department by the appointment of a county or district board of health.
    1. Every county board of health shall consist of five (5) members, at least one (1) of whom shall have a degree of Doctor of Medicine from a medical school approved by the Council on Medical Education and Hospitals, or its successor, of the American Medical Association, to be appointed by the county judge for five-year terms, except that the members first appointed shall be so designated so that one shall serve for one (1) year, one for two (2) years, one for three (3) years, one for four (4) years, and one for five (5) years, from January 1 of the year appointed. Thereafter, full term appointments shall be for five (5) years.
    2. All members shall be residents of the county.
    3. Appointments shall be made to the board so that no business or professional group shall constitute a majority of the board.
    4. Any vacancy on the board shall be filled by the county judge in the same manner as full-term appointments by the appointment of a qualified person for the unexpired term.
    1. Every district board of health shall consist of two (2) members for each county who shall reside in the county from which they are appointed, one (1) of whom shall have a degree of Doctor of Medicine from a medical school approved by the Council on Medical Education and Hospitals, or its successor, of the American Medical Association, to be appointed by the county judge of the county in which they reside, together with one (1) additional member to be chosen from the district by the members so appointed; however, the additional member shall not be a member of the medical profession.
    2. The members of the board of health first appointed shall be designated by the county judge so that one member from each county shall serve for three (3) years and one member for five (5) years; thereafter, all full-term appointments shall be for five (5) years. The additional member to be chosen by the members so appointed shall serve five (5) years.
    3. Appointments shall be made to the board so that no business or professional group shall constitute a majority of the board.
    4. Any vacancy on the board shall be filled by the county judge in the same manner as full-term appointments by the appointment of a qualified person for the unexpired term.

History. Acts 1949, No. 186, § 2; A.S.A. 1947, § 82-215.

14-262-114. County or district boards of health — Meetings — Compensation.

    1. Each board shall, at its organizational meeting, elect from its members a president and such other officers as it shall determine.
    2. The public health officer of the county or district health department, as provided in this act, may serve as secretary, in the discretion of the board, but he shall not be a member of the board.
    3. All officers shall hold office at the pleasure of the board.
    1. Regular meetings of the board shall be held not less than once every year, at such time as it may be fixed by resolution of the board.
    2. Special meetings of the board may be called by the president, by the county or district public health officer, or by a majority of the members of the board, at any time with three (3) days' notice by mail or, in case of emergency, with twenty-four (24) hours' notice by telephone or telegraph.
    3. The board may adopt, and at any time may amend, bylaws in relation to its meetings and the transaction of its business.
    4. A majority shall constitute a quorum of the board.
    5. Members shall serve without compensation, but shall be reimbursed by the county in which the member resides for the actual and legal expenses incurred in attending any called regular or special meeting of the board.

History. Acts 1949, No. 186, § 3; A.S.A. 1947, § 82-216.

Meaning of “this act”. See note to § 14-262-106.

14-262-115. County or district boards of health — Powers and duties.

  1. In addition to all other powers and duties conferred and imposed upon county and district boards of health by the provisions of this act, the boards shall have and exercise the following specific powers and duties:
    1. To provide, equip, and maintain suitable offices and all necessary facilities for the proper administration and operation of the county or district health department;
    2. To determine general policies to be followed by the public health officer in administering and enforcing the public health laws, rules, and regulations of the board and the orders, rules, and standards promulgated by the State Board of Health;
    3. To act in an advisory capacity to the public health officer on all matters pertaining to public health;
    4. To issue from time to time such orders and to adopt such rules and regulations, not inconsistent with the public health laws of this state nor with the orders and rules of the State Board of Health, as the board may deem necessary for the proper exercise of the powers and duties vested in or imposed upon a county or district health department or board of health by this act.
  2. All statutes, rules, and regulations in force on February 28, 1949, which relate to matters concerning public health in municipalities coming under the jurisdiction of the county or district boards, as set forth in § 14-262-107, shall remain in full force and shall be enforceable by the boards unless and until they are amended or repealed by proper authority or unless they are repugnant to the provisions of this act.

History. Acts 1949, No. 186, § 5; A.S.A. 1947, § 82-218; Acts 2019, No. 315, §§ 1036, 1037.

Amendments. The 2019 amendment deleted “regulations” following the second occurrence of “rules” in (a)(2); and substituted “orders and rules” for “orders, rules, and regulations” in (a)(4).

Meaning of “this act”. See note to § 14-262-106.

14-262-116. City health department in cities with a population of 25,000 or more — City board of health — City health officer.

  1. Within thirty (30) days after the entry of an order by the city council of a city of twenty-five thousand (25,000) or more, according to the most recent federal census, to establish and maintain a city health department, the city council shall proceed to organize a health department by the appointment of a city board of health.
    1. Every city board of health shall consist of five (5) members, two (2) of whom shall have a degree of Doctor of Medicine from a medical school approved by the Council on Medical Education and Hospitals, or its successor, of the American Medical Association, to be appointed by the mayor for a five-year term, except that the members first appointed shall be so designated that one shall serve for one (1) year, one for two (2) years, one for three (3) years, one for four (4) years, and one for five (5) years, from January 1 of the year appointed; thereafter, full-term appointments shall be for five (5) years.
    2. All members shall be residents of the city.
    3. Appointments shall be made to the board so that no business or professional group shall constitute a majority of the board.
    4. Any vacancy on the board shall be filled by the mayor in the same manner as full-term appointments by the appointment of a qualified person for the unexpired term.
    5. At its organizational meeting, the board shall elect from its members a president and such other officers as it shall determine.
    6. The city health officer of the city health department, as provided in this act, in the discretion of the board, may serve as secretary, but he or she shall not be a member of the board.
    7. All officers shall hold office at the pleasure of the board.
    8. Regular meetings of the board shall be held not less than one (1) time every year, at such time as may be fixed by resolution of the board. Special meetings of the board may be called by the president, by the city health officer, or by a majority of the members of the board, at any time with three (3) days' notice by mail, or, in case of emergency, with twenty-four (24) hours' notice by telephone or telegraph.
    9. The board may adopt, and at any time amend, bylaws in relation to its meetings and the transaction of its business.
    10. A majority shall constitute a quorum of the board.
    11. Members shall serve without compensation.
    12. The powers and duties of the city board of health are to be the same as set forth in § 14-262-115.
    1. In a city of twenty-five thousand (25,000) or more establishing a city health department, the office of city health officer shall be created and filled by a doctor who has a degree of Doctor of Medicine from a medical school approved by the Council on Medical Education and Hospitals, or its successor, of the American Medical Association, and who shall possess such qualifications as may be prescribed by the State Board of Health.
    2. The city health officer of each incorporated city of twenty-five thousand (25,000) or more which establishes a city health department shall be appointed by the mayor and approved by the city council to serve on a full-time basis for four (4) years.
    3. The city health officer, after appointment, shall take and subscribe to the constitutional oath of office, shall file a copy of his or her appointment with the State Board of Health, and shall not be deemed qualified to serve until the copy has been filed.
    4. Each city health officer shall perform the following:
      1. Such duties as may be required by the city board of health and the city council;
      2. Such duties as may be required of him or her by general law and the city board of health, mayor, council, or ordinances with regard to the general health and sanitation of towns and cities; and
      3. Such duties as shall be legally required of him or her by general law and the city board of health, mayor, councils, or ordinances of the city or town, or by the directions, rules, and requirements of the State Board of Health.
    5. The powers and duties of the city health officer shall be the same as those set forth in § 14-262-112.

History. Acts 1949, No. 186, § 11; A.S.A. 1947, § 82-224; Acts 2019, No. 315, § 1038.

Amendments. The 2019 amendment deleted “regulations” following “rules” in (c)(4)(C) and made stylistic changes.

Meaning of “this act”. See note to § 14-262-106.

14-262-117. Legal action and adviser.

The prosecuting attorney of the judicial circuits, his deputy, or the city attorney, the case as may be, shall, without fee or reward, advise and give legal assistance to the public health officer and the county, district, or city board of health and shall bring any civil or criminal action upon the request of the health officer, the county, district, or city board of health, or the State Board of Health on all questions relating to the enforcement of the provisions of this act.

History. Acts 1949, No. 186, § 12; A.S.A. 1947, § 82-225.

Meaning of “this act”. See note to § 14-262-106.

14-262-118. Employment status.

Those employees of city and county health offices who are occupying state-authorized positions and are being paid by the Department of Health from either state or federal funds shall be deemed to be state employees under the full direction and supervision of the Department of Health.

History. Acts 1975 (Extended Sess., 1976), No. 1065, § 1; A.S.A. 1947, § 82-226; reen. Acts 1987, No. 864, § 1.

A.C.R.C. Notes. This section was reenacted by Acts 1987, No. 864, § 1. Acts 1987, No. 834 provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

14-262-119. County Organization of State Aid Fund.

    1. In addition to any and all other appropriations made for the State Board of Health, there may be made an appropriation which shall be known as the “County Organization of State Aid Fund”, which shall be expended exclusively for this purpose.
    2. The fund shall be available to any county whenever the county shall make an appropriation of an adequate sum of money, to be approved by the Secretary of the Department of Health, necessary to do effective work.
    3. All counties which shall be found organized for this work on July 1 of each year shall receive priority in the allocation of funds.
    1. Before any county shall receive state aid under the provisions of this section, a cooperative budget shall be prepared by the county judge, the Secretary of the Department of Health, and any other agency which may be contributing and shall be signed by each.
    2. The Secretary of the Department of Health shall draw vouchers against the fund, as provided in the cooperative budget, in the usual manner.

History. Acts 1925, No. 360, §§ 1, 2; Pope's Dig., §§ 6444, 6445; A.S.A. 1947, §§ 82-212, 82-213; Acts 2019, No. 910, § 4859.

Amendments. The 2019 amendment substituted “Secretary of the Department of Health” for “Director of the Department of Health” throughout the section.

Chapter 263 Board Of Governors For County Hospitals

Effective Dates. Acts 1977, (Ex. Sess.), No. 13, § 8: Aug. 15, 1977. Emergency clause provided: “It is hereby found and determined by the General Assembly that it is essential to the well being of the residents of the various counties that the county hospitals in the respective counties be under the management, control and operation of a separate Board of Governors selected and functioning in substantially the same manner as was provided for in Act 481 of 1949 and acts amendatory and supplemental thereto; that this Act is designed to substantially reenact the laws relating to County Hospital Boards of Governors which were repealed by Act 742 and to amend Section 107 of Act 742 to exempt County Hospital Boards of Governors from the reorganization provided for therein, and to thereby insure the continued effective and efficient operation of the various county hospitals under the supervision and direction of the respective County Boards of Governors in substantially the same manner as was provided for in the laws repealed by Act 742 and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

14-263-101. Legislative intent.

  1. It is found and determined by the General Assembly that § 14-14-101 et seq. specifically repealed the existing laws relating to county hospital boards of governors and provided that county hospital boards of governors, along with various other county boards and commissions, would cease to exist on July 1, 1978, or sooner if so provided by ordinance of the quorum court, and that the functions and duties of those boards would thereafter be assigned to various county departments.
  2. The General Assembly declares that it would be highly detrimental to the various county hospitals in this state to abolish the boards of governors of those hospitals and to transfer the responsibility for the management and operation of those hospitals to a county department.
  3. It is the purpose and intent of the General Assembly to substantially reenact the laws relating to county hospital boards of governors which were repealed by § 117 of Acts 1977, No. 742, to amend § 14-14-712 so as to exclude county hospital boards of governors from the provisions of § 14-14-712, relating to the reorganization of county boards and commissions, and to assure that the various county hospital boards of governors in the state will continue to function and have the authority and responsibility for the management, control, and operation of the respective county hospitals in substantially the same manner and to the same extent as was provided in Acts 1949, No. 481 [repealed] and the various acts amendatory and supplemental thereto, as if those acts had not been repealed and as if county hospital boards of governors had never been included in the provisions of § 14-14-712; however, in keeping with the intent of Arkansas Constitution, Amendment 55, the quorum courts of the respective counties shall have the authority as set forth in this chapter and § 14-14-712 regarding the appointment and functions of county hospital boards of governors.

History. Acts 1977 (Ex. Sess.), No. 13, § 7; A.S.A. 1947, § 17-1506.

14-263-102. Continuation of existing boards of governors.

  1. The various county hospital boards of governors in existence on August 15, 1977, shall continue in existence and shall function under the provisions of this chapter.
  2. The members of all those boards serving on August 15, 1977, shall continue to serve for the respective terms for which they were appointed, and their successors shall be selected in the manner and for the terms provided in this chapter.

History. Acts 1977 (Ex. Sess.), No. 13, § 5; A.S.A. 1947, § 17-1505.

14-263-103. Creation.

  1. There is created in each county in this state owning a county hospital a board of governors which shall be charged with the responsibility of the management, control, and operation of the county hospital as provided in this chapter.
    1. If there is more than one (1) county hospital in any one (1) county, the hospitals may be operated under the management and control of a single board of governors, or the quorum court of the county, if it so elects, may establish, by an appropriate ordinance, a board of governors of each county hospital.
    2. The ordinance of the quorum court providing for a separate board of governors for each such hospital shall designate the county hospital over which each board shall have jurisdiction.
    3. When the quorum court establishes a separate board of governors for each county hospital in the county, each board of governors shall be constituted, shall be appointed, and shall have the duties, powers, and responsibilities with reference to the county hospital over which it has jurisdiction as specified in this chapter.
  2. The existence of a board of governors is no longer required once the county rather than the board of governors has leased the hospital facilities in accordance with § 14-263-106.

History. Acts 1977 (1st Ex. Sess.), No. 13, § 1; A.S.A. 1947, § 17-1501; Acts 2007, No. 561, § 1.

Case Notes

Cited: Baxter County Newspapers, Inc. v. Medical Staff of Baxter Gen. Hosp., 273 Ark. 511, 622 S.W.2d 495 (1981).

14-263-104. Members.

  1. The board of governors shall consist of seven (7) members, who shall be qualified electors of the county in which the hospital is located and who shall be appointed by the county judge and approved by the quorum court.
    1. The regular term of office of each member so appointed by the county judge and approved by the quorum court shall begin as of July 1 next following the expiration of the term of his predecessor and shall end on June 30 of the seventh year thereafter; however, the terms of the original members shall be designated and arranged by the county judge so that the term of one (1) member shall expire on June 30 next following the date of his appointment, and the terms of the other members shall expire, respectively, on June 30 of the first, second, third, fourth, fifth, and sixth years thereafter.
    2. Interim appointments shall be for the unexpired term.
    3. Each board member shall hold office after the expiration of his term of office until his successor has been appointed and qualified.
    4. All appointments made to fill vacancies caused by expiration of terms or by death shall be for a period of seven (7) years.
    5. The duty to appoint the initial members of the board and to fill vacancies in case of death, resignation, expiration of terms, or for any other reason shall be that of the county judge with approval of the quorum court.
    1. In any county in which there are two (2) county-owned hospitals under the management, control, and direction of a single board of governors, the membership of the board of governors for those hospitals may be increased to eight (8) members, by ordinance of the quorum court.
    2. When a county hospital board of governors is increased to eight (8) members as authorized in this subsection, the additional member of the board shall be appointed in the same manner, shall possess the same qualifications, shall have the same authority and responsibility, and shall be subject to removal for cause as other members of the board.
    3. When the membership of a board is increased to eight (8) members, the person first appointed to fill the additional position shall be appointed for a term of eight (8) years, and thereafter all successor appointments to the board shall be for terms of eight (8) years in such manner that the term of one (1) member of the board shall expire each year.
  2. In the event of misconduct or refusal to act, any member of the board may be removed for cause.
  3. The board of governors shall be an honorary board, and its members shall receive no compensation for their services, nor shall they be liable individually for any civil damages arising out of the operation of the hospital.

History. Acts 1977 (Ex. Sess.), No. 13, § 2; A.S.A. 1947, § 17-1502.

Case Notes

Removal.

Since the sole authority to appoint and remove members of the county hospital board is placed in the county judge, hearings for determination of whether board members should be removed are exclusively within his jurisdiction. Wheatley v. Warren, 232 Ark. 123, 334 S.W.2d 880 (1960) (decision under prior law).

Where judge's letter of dismissal of the county hospital board set out no specific reasons for removing the board, the reviewing court was unable to determine the particular acts relied upon by the judge to sustain his action. Wheatley v. Warren, 232 Ark. 123, 334 S.W.2d 880 (1960) (decision under prior law).

14-263-105. Powers and duties.

  1. Within ten (10) days after the appointment of the members of a board created by this chapter, the board shall assemble and elect from its membership a chairman and shall organize for the purpose of performing its duties.
  2. Each board, being charged with the duty of managing, controlling, and supervising the operation of the county hospital, is vested by the terms of this chapter with discretion as to what policies and methods of operation shall be in the best interest of the hospital.
  3. Each board is empowered with the authority to make regulations, employ personnel, and prescribe any and all requirements and other matters pertaining to the operation of the hospital by the board.
  4. Each board shall employ, in addition to other personnel, some competent person to act as administrative officer. The board may require such bond as it shall deem necessary of its manager or other personnel for the performance of their duties, which personnel shall be paid salaries as determined by the board.
  5. The right of the administrative officer or board to make quarterly reports and settlements to the county treasurer is expressly conferred by this chapter.
    1. Each board shall submit monthly reports beginning on the twentieth day of the month following the previous month of operation of the hospital and on the twentieth day of each month thereafter, to the county judge and quorum court.
    2. The reports shall include an accounting of receipts and disbursements and such other reports, data, and information as may be required by the county judge or quorum court, or the reports shall be prepared and submitted in accordance with generally accepted hospital accounting procedures.
  6. Each board is empowered to accept promissory notes from patients for sums due the hospital and to discount the notes to banks, in a commercially reasonable manner, with recourse; but recourse shall be limited to hospital funds and shall not constitute a general claim against the county.

History. Acts 1977 (Ex. Sess.), No. 13, § 3; A.S.A. 1947, § 17-1503.

14-263-106. Contracting or leasing of hospital facilities.

    1. Should the board of governors determine that it would be in the best interests of the citizens of the county that the hospital be operated or leased to an individual, a firm, or a corporation, the board of governors may contract or lease the equipment and hospital facilities to the individual, firm, or corporation for a period of time and for consideration and conditions the board of governors may deem wise, subject to approval of the contract or lease by the county judge and the quorum court of the county in which the hospital is located.
    2. With the recommendation of the board of governors, the county may be the lessor of the hospital rather than the board.
    3. Once a lease has been entered into by the county rather than the board of governors, there shall be no requirement for a future recommendation by the board of governors for a subsequent lease by the board of governors before entering into the lease, and the county may enter into contracts concerning the hospital without the recommendation of the board of governors.
  1. If the county rather than the board of governors leases the hospital facilities in accordance with subsection (a) of this section, the duties of managing, controlling, and supervising the operation of the county hospital, as described in § 14-263-105, shall be imposed upon the lessee, which shall eliminate the requirement that a board of governors submit monthly reports or be in place for the duration of the term of the lease and any extensions thereof, unless the quorum court and county judge determine the board should continue in its existence or should be reinstated.
  2. Once the board of governors has made its initial determination that it is in the best interests of the citizens of the county to lease the hospital, the county, if it is the lessor, will thereafter be responsible for all matters pertaining to the lease, the facilities, and the lessee, including without limitation:
    1. Renewal or extension of the lease; or
    2. Any conflicts that may arise pertaining to the lease or the lessee.
    1. This section applies to all hospital leases adopted before July 31, 2007, adopted or entered under the authority of this section.
    2. All such leases adopted or entered into before July 31, 2007, shall be considered for all purposes as if adopted or entered into under this section.
    3. A lease adopted before July 31, 2007, shall not be held to be invalid by reason of § 14-263-103 and this section.

History. Acts 1977 (1st Ex. Sess.), No. 13, § 4; A.S.A. 1947, § 17-1504; Acts 2007, No. 561, § 2.

U.S. Code. Public Law 79-725, referred to in this section, is codified as 42 U.S.C. § 201 et seq.

Case Notes

Leases.

Provision giving the lessee of county property an option to purchase was void, as was a provision giving him right to any money received in any eminent domain proceeding, such provisions failing to comply with statute governing disposition of county property; however, with the two provisions stricken, the lease was valid. State ex rel. Peevy v. Cate, 236 Ark. 836, 371 S.W.2d 541 (1963) (decision under prior law).

No state law prohibits the voters of a county from using their right of initiative to call for a referendum whereby the people of the county could express their approval or disapproval of the quorum court's action in leasing a county owned hospital. Proctor v. Hammons, 277 Ark. 247, 640 S.W.2d 800 (1982).

Provisions Not Mandatory.

This section does not require that any county hospital be leased or contracted to any individual or firm; the section is permissive and not mandatory. Proctor v. Hammons, 277 Ark. 247, 640 S.W.2d 800 (1982).

Cited: Bell v. Crawford County, 287 Ark. 251, 697 S.W.2d 910 (1985).

Chapter 264 Commissions For Municipal Hospitals

Cross References. Local government reserve funds, § 14-73-101 et seq.

Tax for maintaining, Ark. Const. Amend. 32.

Effective Dates. Acts 1947, No. 322, § 14: approved Mar. 28, 1947. Emergency clause provided: “Whereas, in certain municipalities hospitals are now being constructed or operated; and whereas, it is to the best interests of the public that said hospitals be operated and controlled in the most economical and feasible manner possible; and whereas, it is to the best interests of the citizens of said municipalities that the operations of said hospitals be in the most economical and businesslike manner possible; and whereas, the most economical and proper method of operations may be obtained if this act were put into immediate force and effect; therefore, it is hereby declared that an emergency exists and that this act is necessary for the immediate preservation of the public peace, health and safety and this act, therefore, will take effect and be in force and effect from and after its passage.”

14-264-101. Construction, applicability, and effect.

  1. Nothing in this chapter shall be construed as repealing any special act previously passed providing for a board of commissioners to administer or operate municipal hospitals, and this chapter shall apply solely to cities of the first class owning or operating hospitals, including hospitals in the process of construction.
  2. The provisions of this chapter shall be cumulative and shall not be deemed to repeal or supersede any other plan of operation of any municipal hospital as authorized by law since it is the intention of this chapter to provide an additional method of operation of any municipal hospital subject to the terms of this chapter.

History. Acts 1947, No. 322, § 12; A.S.A. 1947, § 19-4712.

14-264-102. Creation.

  1. Any city of the first class, or any city of the second class in counties with a population of not less than seventeen thousand (17,000) nor more than thirty-eight thousand five hundred (38,500), according to the last federal census, which own or operate a municipal hospital, including a municipal hospital in the process of construction, may create a commission, by appropriate action of its city council, for the purpose of operating and managing the hospital.
  2. Any city, as defined in this section, desiring to avail itself of the benefits of this chapter, may enact an ordinance, by a majority vote of the duly elected and qualified members of the city council, creating a hospital commission to be composed of not less than three (3) nor more than seven (7) citizens who are qualified electors of the municipality or of the county in which the municipality is located.
  3. The city may repeal the ordinance creating the commission by an affirmative vote of three-fourths (¾) of the elected and qualified members of the city council.

History. Acts 1947, No. 322, §§ 1, 2; 1953, No. 315, § 1; 1977, No. 184, § 1; A.S.A. 1947, §§ 19-4701, 19-4702; Acts 1991, No. 518, § 1.

14-264-103. Commissioners — Appointment — Removal.

  1. The commissioners shall be appointed by the mayor and confirmed by a majority vote of the elected and qualified members of the city council and shall hold office for a term of five (5) years; however, those commissioners first appointed and confirmed after the passage of this chapter shall serve for terms of one (1), two (2), three (3), four (4), and five (5) years each, to be designated by the mayor and city council. Thereafter, upon the expiration of their respective terms, commissioners appointed by the mayor and approved by a majority vote of the city council shall each be appointed for a term of five (5) years.
  2. In the event of a vacancy occurring on the commission, it shall be filled by appointment by the mayor, subject to the approval of a majority vote of the duly elected and qualified members of the city council.
  3. Each commissioner shall file the oath required of public officials by law in the State of Arkansas.
  4. Upon the appointment of the commissioners as provided in this section, the mayor and city council shall execute such instruments and enact such measures as may be necessary to vest complete charge of the municipally owned or operated hospital in the commissioners.
  5. The city council may require bond of the commissioners, in its discretion, for the faithful performance of their duties.
  6. Any commissioner appointed by the provisions of this chapter may be removed for cause upon a two-thirds (2/3) vote of the elected and qualified members of the city council.

History. Acts 1947, No. 322, §§ 3, 4, 11; A.S.A. 1947, §§ 19-4703, 19-4704, 19-4711.

Publisher's Notes. In reference to the term “passage of this chapter,” Acts 1947, No. 322 was signed by the Governor and took effect March 28, 1947.

14-264-104. Commissioners — Powers and duties — Liability.

  1. The commissioners appointed pursuant to this chapter shall have full and complete authority to manage, operate, maintain, and keep in a good state of repair the municipal hospital. They shall have full and complete charge of the building, with the power to handle it as the commissioners shall see fit and deem to be in the best interests of the city.
  2. The commissioners shall have the right to employ or remove managers and all other employees of whatsoever nature, kind, or character and to fix, regulate, and pay their salaries, wages, or other compensation since it is the intention of this chapter to vest in the commissioners the authority to operate, manage, maintain, and control the municipal hospital and to have full and complete charge of it, including the same discretionary powers afforded to the boards of trustees of benevolent or nonprofit corporations in this state; however, the commissioners shall not have the authority or power to sell, mortgage, or encumber the municipal hospital unless otherwise authorized by the statutes of Arkansas.
  3. The commissioners, however, by and with the consent of the city council, shall have the authority and power to lease the hospital to a nonprofit or benevolent organization upon such terms that no profit or dividend shall ever be paid to any person, firm, or corporation; however, nothing contained in this chapter shall be construed to prevent the use, either by the commission or any lessee, of profits arising from the operation of the hospital for the repair, improvement, or additions to the hospitals or the equipment thereof, or for charitable purposes in connection with the operations of the hospital.
  4. The commissioners shall have the exclusive right and power to make purchases of all supplies, apparatus, and other property and things requisite and necessary for the management and operation of the hospital; the management and operation of the hospital shall include the construction thereof and repairs and additions thereto.
  5. The commissioners shall be afforded the same protection from personal liability for their acts as commissioners as is afforded to school directors in connection with their duties in behalf of the school districts which they represent.

History. Acts 1947, No. 322, §§ 5, 6, 9; A.S.A. 1947, §§ 19-4705, 19-4706, 19-4709.

14-264-105. Commissioners — Rules and regulations — Reports.

    1. The commissioners shall have the authority to adopt such rules and regulations as they may deem necessary and expedient for the proper operation and management of the hospital and shall have the authority to alter, change, or amend the rules and regulations at their discretion.
    2. The commissioners shall have the right to adopt and enforce standards for the operation and management of the hospital including the right to apply for and accept membership in accredited hospital societies and organizations and to comply with, and enforce compliance with, the rules and regulations thereof. However, nothing contained in this subsection shall be construed to authorize the adoption of standards less than the minimum standards required by the laws of the State of Arkansas for the operation or management of hospitals coming under the provisions of this chapter.
    1. The commissioners shall submit reports, beginning three (3) months after they take their oath of office and thereafter at such periods as the city council may direct, reporting in full on the construction and operations, including an accounting of receipts and disbursements, to the mayor and city council. They shall furnish such other and further reports, data, and information as may be requested by the mayor or city council.
    2. The reports to the mayor and city council with respect to receipts and disbursements shall be certified by the commissioners as correct.
    3. The commissioners shall further submit an annual audit of the operations of the hospital to the mayor and city council. The fiscal year shall be determined by the mayor and city council.

History. Acts 1947, No. 322, §§ 7, 8; A.S.A. 1947, §§ 19-4707, 19-4708.

14-264-106. Appropriation of city funds for hospital purposes.

  1. Upon each annual report's being made to the mayor and city council by the commissioners, the city council may lend or appropriate funds from the general revenue fund of the city, or from such other funds as the city may have available, to make up any deficits or to provide such funds as may be necessary to carry on the operations of the hospital.
  2. The city council, at any time other than when the annual report is filed, may lend or appropriate such funds as it deems necessary from the general revenue fund or from such other funds as the city may have available for the purpose of maintaining and operating the hospital.

History. Acts 1947, No. 322, § 10; A.S.A. 1947, § 19-4710.

14-264-107. Hospital fund.

  1. The commissioners appointed pursuant to this chapter shall have the authority to utilize all revenues derived from the hospital in the operations of the hospital including repairs and additions thereto or the construction thereof.
  2. All funds derived from the use of the hospital shall be segregated into a hospital fund, which fund shall be used exclusively in the operations of the hospital by the commissioners.
  3. Moneys in the hospital fund shall not be mingled with other funds of the city and shall be handled exclusively by the commissioners.
  4. The commissioners shall receive no salary for their services, but they shall be reimbursed from the hospital fund for actual expenses incurred in the performance of their duties.

History. Acts 1947, No. 322, § 9; A.S.A. 1947, § 19-4709.

Chapter 265 Health Care Facilities

Cross References. Use of surplus revenues of utilities, § 14-199-101.

Effective Dates. Acts 1970 (Ex. Sess.), No. 31, § 5: Mar. 13, 1970. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 1975, No. 223, § 6: became law without Governor's signature, Feb. 18, 1975. Emergency clause provided: “It has been found and it is hereby declared that the present interest rate limitation set forth in Act No. 175 of 1961, as amended, restricts severely the construction and operation of hospitals, nursing homes, rest homes and related facilities by municipalities and counties of the State of Arkansas and that the operation of such facilities is hampered by uncertainties as to the methods whereby property pertaining to the construction, expansion and operation of such facilities may be acquired. The construction, expansion and efficient operation of these medical facilities being essential to the health and welfare of the inhabitants of the State, an emergency is declared to exist, and this Act, being immediately necessary to the preservation of the public peace, health and safety, shall be in force immediately upon its approval.”

Acts 1977, No. 445, § 6: became law without Governor's signature, Mar. 16, 1977. Emergency clause provided: “It is hereby found and declared by the General Assembly of the State of Arkansas that in order to insure candor, objectivity and the presentation of all pertinent information sought by committees reviewing the quality of medical and hospital care and thus contribute to the effective functioning of committees striving to determine and improve such care, an absolute privilege of confidentiality should be afforded to data elicited during the course of such inquiries and that the privilege of confidentiality should be provided for as soon as possible. Therefore, an emergency is hereby declared to exist, and this Act, being necessary for the immediate preservation of the public peace, health and safety, shall be in effect from the date of its passage and approval.”

Acts 1977, No. 945, § 4: Apr. 1, 1977. Emergency clause provided: “It has been found and it is hereby declared by the General Assembly of the State of Arkansas that agencies of the federal government are in some instances authorized and able to assist in the financing of medical facilities by the acquisition of hospital revenue bonds issued by municipalities and counties on terms permitting a longer payout period than that presently authorized and that it is essential to the continued development of necessary medical facilities in many municipalities and counties that assistance by agencies of the federal government be utilized to the full extent available. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health, and safety, shall be in effect upon its approval.”

Acts 1981, No. 425, § 54: Mar. 11, 1981. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Research References

Ark. L. Rev.

Comment, Municipal Bonds and Amendment 62: Clearing Up a Serbonian Bog, 39 Ark. L. Rev. 499.

14-265-101. Definitions.

As used in this chapter, unless the context otherwise requires:

  1. “County” means a county of this state, or, where a county is divided into two (2) districts, “county” means the entire county or either district of the county;
  2. “Governing body” means the council, board of directors, or city commission of any municipality;
  3. “Municipality” means a city of the first or second class or an incorporated town;
  4. “Equip” means to install or place on or in any building or structure equipment of any and every kind, whether or not affixed, including, without limiting the generality of the foregoing, building service equipment, fixtures, heating equipment, air conditioning equipment, machinery, furniture, furnishings, and personal property of every kind;
  5. “Sell” means to sell for such price, in such manner, and upon such terms as the municipality or county shall determine including, without limiting the generality of the foregoing, private or public sale, and, if public, pursuant to such advertisement as the municipality or county shall determine. “Sell” also means to sell for cash or credit payable in a lump sum or in installments over such period as the municipality or county shall determine and, if on credit, with or without interest and at such rate or rates as the municipality or county shall determine;
  6. “Lease” means to lease for such rentals, for such period or periods, and upon such terms and conditions as the municipality or county shall determine including, without limiting the generality of the foregoing, the granting of purchase options for such prices and upon such terms and conditions as the municipality or county shall determine;
  7. “Facilities” means any real property, personal property, or mixed property of any and every kind that can be used or that will be used for or in the operation of the hospital, nursing home, rest home, or related facilities including, without limiting the generality of the foregoing, rights-of-way, roads, streets, pipes, pipelines, reservoirs, utilities, materials, equipment, fixtures, machinery, furniture, furnishings, instrumentalities, commodities, supplies, and other real, personal, or mixed property of every kind;
  8. “Construct” means to acquire or build, in whole or in part, in such manner and by such method, including contracting therefor, and, if the latter, by negotiation or bidding upon terms and pursuant to advertising, as the municipality or county shall determine to be in the public interest and, under the circumstances existing at the time, to accomplish the purposes of and authorities set forth in this chapter.

History. Acts 1961, No. 175, § 10; 1973, No. 86, § 3; 1975, No. 223, § 3; 1981, No. 425, § 40; A.S.A. 1947, § 19-4722.

14-265-102. Applicability and construction.

  1. This chapter is intended to supplement all constitutional provisions and other acts and, when applicable in accordance with the provisions of this chapter, may be used by any municipality or county as an alternative, notwithstanding any constitutional provisions or any other act authorizing a municipality or county or any commission or agency thereof to issue bonds for any of the purposes provided in this chapter.
  2. This chapter shall be liberally construed to accomplish its purposes and shall be the sole authority required for the accomplishment of its purposes. To that end, it shall not be necessary to comply with general provisions of other laws dealing with public facilities, their acquisition, construction, leasing, encumbering, or disposition.

History. Acts 1961, No. 175, § 12, as added by Acts 1973, No. 86, § 4; A.S.A. 1947, § 19-4723.

14-265-103. Authority to acquire, own, manage, and sell health facilities.

Any municipality and any county is authorized to acquire, own, construct, reconstruct, extend, equip, improve, maintain, operate, sell, lease, contract concerning, or otherwise deal in or dispose of any land, buildings, improvements, or facilities of any and every nature whatever that can be used for hospitals, nursing homes, rest homes, or related facilities within or near the municipality or county.

History. Acts 1961, No. 175, § 1; 1973, No. 86, § 1; A.S.A. 1947, § 19-4713.

14-265-104. Bonds — Authority to issue.

  1. Municipalities and counties are authorized to use any available revenues for the accomplishment of the purposes set forth in § 14-265-103 and are authorized to issue revenue bonds and to use the proceeds thereof for the accomplishment of the purposes set forth in § 14-265-103 either alone or together with other available funds and revenues.
  2. The amount of bonds issued shall be sufficient to pay all costs and sums required and necessarily incidental to the accomplishment of the specified purposes and to the sale on the best possible basis and issuance of the bonds, including, without limitation, all costs and expenses of issuing the bonds, a reasonable reserve, and an amount covering interest to a date not in excess of six (6) months subsequent to the date of acquisition or the estimated date of completion, whichever is later.

History. Acts 1961, No. 175, § 2; A.S.A. 1947, § 19-4714.

14-265-105. Bonds — Issuance, sale, and execution.

    1. The issuance of revenue bonds shall be by an ordinance of the municipality or an order of the county court, as the case may be.
    2. The bonds shall be coupon bonds payable to bearer but subject to registration as to principal or as to principal and interest.
    3. The bonds may be:
      1. Bonds registered as to principal or as to principal and interest;
      2. Exchangeable for bonds of another denomination; and
      3. Issued in one (1) or more series.
    4. The bonds may bear such date or dates, may mature at such time or times, not exceeding forty (40) years from their respective dates, may bear interest at such rate or rates, may be in such form, may be executed in such manner, may be payable in such medium of payment and at such place or places, may be subject to such terms of redemption, and may contain such terms, covenants, and conditions as the ordinance or order may provide including, without limitation, those pertaining to the custody and application of the proceeds of the bonds, the collection and disposition of revenues, the maintenance and investment of various funds and reserves, the nature and extent of the security, the rights, duties, and obligations of the municipality or county and the trustee for the holders or registered owners of the bonds, and the rights of the holders or registered owners of the bonds.
    5. Priority between and among successive issues may be controlled by the ordinance or order.
    6. The bonds shall have all the qualities of negotiable instruments under the laws of this state, subject to the provisions for registration set forth in this section.
    1. The ordinance or order may provide for the execution by the municipality or county of an indenture which defines the rights of the bondholders and provides for the appointment of a trustee for the bondholders.
    2. The indenture may control the priority between successive issues and may contain any other terms, covenants, and conditions that are deemed desirable including, without limitation, those pertaining to the custody and application of the proceeds of the bonds, the collection and disposition of revenues, the maintenance of various funds and reserves, the nature and extent of the security, the rights, duties, and obligations of the municipality or county and the trustee for the holders or registered owners of the bonds, and the rights of the holders or registered owners of the bonds.
    3. It shall not be necessary for the municipality to publish any indenture or any lease or other security agreement or instrument if the ordinance authorizing the indenture or lease or other security agreement or instrument is published as required by the law governing the publication of ordinances of a municipality and the ordinance advises that a copy of the indenture or lease or other security agreement or instrument, as the case may be, is on file in the office of the clerk or recorder of the municipality for inspection by any interested person and a copy of the indenture or lease or other security agreement or instrument, as the case may be, is filed with the clerk or recorder of the municipality.
    1. The bonds may be sold at public or private sale, for such price, including, without limitation, sale at a discount, and in such manner as the municipality or county may determine by ordinance or order.
    2. The bonds may be sold with the privilege of conversion into an issue bearing another rate or rates of interest, upon such terms and conditions as the municipality or county shall specify but, in any event, such that the municipality or county receives no less and pays no more than it would receive and pay if the bonds were not converted; the conversion shall be subject to the approval of the governing body of the municipality or the county court.
    1. The bonds shall be executed by the mayor and the clerk or recorder of the municipality, or by the county judge and county clerk of the county, as the case may be, and, in case any of the officers whose signatures appear on the bonds or coupons shall cease to be those officers before the delivery of the bonds or coupons, the signatures shall nevertheless be valid and sufficient for all purposes.
    2. The coupons attached to the bonds may be executed by the facsimile signature of the mayor or county judge.

History. Acts 1961, No. 175, § 3; 1970 (Ex. Sess.), No. 31, §§ 1, 2; 1973, No. 86, § 2; 1975, No. 223, §§ 1, 2; 1977, No. 945, § 1; 1981, No. 425, § 40; A.S.A. 1947, § 19-4715.

Cross References. Form of bonds, § 19-9-101.

14-265-106. Bonds — Issuance for refunding obligations.

  1. Revenue bonds may be issued under this chapter for the purpose of refunding any obligations issued under this chapter.
    1. When bonds are issued under this section for refunding purposes, the bonds may either be sold or delivered in exchange for the outstanding obligations.
    2. If sold, the proceeds may be either applied to the payment of the obligations refunded or deposited in escrow for the retirement thereof.
  2. All bonds issued under this section shall in all respects be authorized, issued, and secured in the manner provided for other bonds issued under this chapter and shall have all the attributes of those bonds.
  3. The ordinance or order under which refunding bonds are issued may provide that any of the refunding bonds shall have the same priority of lien on the revenues pledged for their payment as was enjoyed by the obligations refunded.

History. Acts 1961, No. 175, § 5; A.S.A. 1947, § 19-4717.

14-265-107. Bonds — Indebtedness as special obligation — Payment of principal and interest.

    1. The revenue bonds shall not be general obligations of the municipality or county, but they shall be special obligations. In no event shall the revenue bonds constitute an indebtedness of the municipality or county within the meaning of any constitutional or statutory limitation.
    2. It shall be plainly stated on the face of each bond that it has been issued under the provisions of this chapter and that it does not constitute an indebtedness of the municipality or county within any constitutional or statutory limitation.
    1. The principal of, and interest on, the revenue bonds and paying agent's fees shall be payable in the first instance from gross revenues derived from the lands, buildings, and facilities acquired, constructed, reconstructed, extended, and improved, in whole or in part, with the proceeds of the bonds, and, for that purpose, the municipality or county may pledge all or any part of the gross revenues.
    2. In addition, the municipality or county is authorized to pledge to, and use for, the payment of the principal of and interest on the bonds, and for paying agent's fees, surplus revenues derived from water, sewer, gas, and electric utilities owned by the municipality or county.
    3. As used in this subsection, “surplus revenues” means revenues remaining after adequate provision shall have been made for expenses of operation, maintenance, and depreciation and after all requirements of ordinances, orders, and indentures securing bonds theretofore or thereafter issued to finance the cost of acquiring, constructing, reconstructing, extending, and improving the utilities, have been fully met and complied with.
  1. The municipality or county is also authorized to use, for the payment of the principal of and interest on the bonds and for paying agent's fees, moneys in the general fund of the municipality or county.

History. Acts 1961, No. 175, § 4; A.S.A. 1947, § 19-4716.

14-265-108. Bonds — Statutory mortgage lien — Enforcement by holder of bonds.

  1. Subject to the subsequent provisions of this section, there shall exist a statutory mortgage lien upon the land, buildings, and facilities acquired or constructed, in whole or in part, with the proceeds of the revenue bonds, which shall exist in favor of the holders of the bonds and in favor of the holders of the coupons attached to the bonds.
  2. The land, buildings, and facilities shall remain subject to the statutory mortgage lien until payment in full of the principal of and interest on the revenue bonds.
  3. The nature and extent of the mortgage lien on the land, buildings, and facilities may be controlled by the indenture referred to in § 14-265-105(b), including, without limitation, provisions pertaining to the release of all or part of the land, buildings, and facilities from the lien and the priority of the lien in the event of additional bond issues under this chapter for the purpose of reconstructing, replacing, extending, or improving the same land, buildings, and facilities.
  4. Subject to the restrictions as may be contained in the ordinance, order, or indenture authorizing and securing the bonds, any holder of bonds issued under the provisions of this chapter or of any coupons representing interest accrued thereon may enforce, either at law or in equity, the statutory mortgage lien conferred by this section and may compel, by proper suit, the performance of the duties of the officials of the issuing municipality or county as set forth in this chapter and in any ordinance, order, or indenture authorizing and securing the revenue bonds.

History. Acts 1961, No. 175, § 6; A.S.A. 1947, § 19-4718.

14-265-109. Bonds — Default in payment.

  1. In the event of a default in the payment of the principal of, or interest on, any revenue bonds issued under this chapter, any court having jurisdiction may appoint a receiver to take charge of the land, buildings, or facilities acquired, constructed, reconstructed, extended, equipped, or improved, in whole or in part, with the proceeds of revenue bonds issued under this chapter, upon which land, buildings, or facilities, or any part thereof, there is a mortgage lien securing the revenue bonds with reference to which there is a default in the payment of principal or interest.
  2. The receiver shall have the power to operate and maintain the land, buildings, or facilities, to charge and collect rates or rents sufficient to provide for the payment of the principal of and interest on the bonds, after providing for the payment of any cost of receivership and operating expenses of the land, buildings, or facilities, and to apply the income and revenues derived from the land, buildings, or facilities in conformity with this chapter and the ordinance, order, or indenture authorizing or securing the bonds.
  3. When the default has been cured, the receivership shall be ended and the properties returned to the municipality or county.
  4. The relief afforded by this section shall be construed to be in addition and supplemental to the remedies that may be afforded the trustee for the bondholders and the bondholders in the ordinance, order, or indenture authorizing or securing the bonds and shall be so granted and administered as to accord full recognition to priority rights of bondholders as to the pledge or revenues from, and mortgage lien on, the land, buildings, or facilities as specified in, and fixed by, the ordinances, orders, or indentures authorizing or securing successive bond issues.

History. Acts 1961, No. 175, § 7; A.S.A. 1947, § 19-4719.

14-265-110. Bonds — Tax exemption.

Bonds issued under the provisions of this chapter shall be exempt from all state, county, and municipal taxes including income and estate taxes.

History. Acts 1961, No. 175, § 8; A.S.A. 1947, § 19-4720.

A.C.R.C. Notes. Language excluding property taxes from the exemption provided by this section was deleted pursuant to Ark. Const. Amend. 57, § 1, and § 26-3-302. Arkansas Const. Amend. 57, § 1, provides that the General Assembly may classify intangible personal property for assessment at lower percentages of value than other property and may exempt one or more classes of intangible personal property from taxation, or may provide for the taxation of intangible personal property on a basis other than ad valorem. Section 26-3-302 exempts all intangible personal property in this state from all ad valorem tax levies of counties, cities, and school districts in the state as of January 1, 1976.

14-265-111. Bonds — Investment of public funds.

  1. Any municipality; any board, commission, or other authority duly established by ordinance of any municipality; the boards of trustees, respectively, of the firemen's relief and pension fund and the policemen's pension and relief fund of any municipality, or any county; or the board of trustees of any retirement system created by the General Assembly, in its discretion, may invest any of its funds not immediately needed for its purposes in the revenue bonds issued under the provisions of this chapter.
  2. Revenue bonds issued under this chapter shall be eligible to secure the deposit of public funds.

History. Acts 1961, No. 175, § 9; A.S.A. 1947, § 19-4721.

14-265-112. [Transferred.]

Publisher's Notes. Acts 1977, No. 445, § 2, formerly codified as this section, is now codified as § 20-9-308.

Chapter 266 Ambulance Licensing Act

Effective Dates. Acts 1981 (1st Ex. Sess.), No. 23, § 11: Dec. 1, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that the provision of emergency medical services to persons residing in First Class cities can best be regulated on the local level by the governing bodies of First Class cities, and that this Act is immediately necessary to grant such authority to First Class cities. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1989, No. 196, § 6: Feb. 24, 1989. Emergency clause provided: “It is hereby found and determined by the General Assembly that the present Municipal Ambulance Licensing Law applies only to first class cities with a population in excess of 35,000 persons; that all first class cities should be covered by the Municipal Ambulance Licensing Law; that this Act removes the inequity by amending the Municipal Ambulance Licensing Law to be applicable to all first class cities of this State; that until this Act becomes effective many first class cities will be unable to take advantage of the Municipal Ambulance Licensing Law; and therefore this Act should be given immediate effect. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

14-266-101. Title.

This chapter shall be known as the “Ambulance Licensing Act”.

History. Acts 1981 (1st Ex. Sess.), No. 23, § 1; A.S.A. 1947, § 19-5901; Acts 2017, No. 1122, § 1.

Publisher's Notes. Sections 7, 9, 8(a), and 8(b) of Acts 1981 (Ex. Sess.), No. 23, are codified as §§ 14-43-601, 14-54-704, 14-137-103 and 14-137-106, respectively.

Acts 1985, No. 1001, § 8, provided that nothing in the act repealed Acts 1981 (Ex. Sess.), No. 23, by implication or otherwise.

Amendments. The 2017 amendment substituted “‘Ambulance Licensing Act’” for “‘Municipal Ambulance Licensing Act’”.

14-266-102. Legislative determination.

    1. It is legislatively determined that it may be desirable for cities of the first class, cities of the second class, and counties within this state to be authorized to own, operate, permit, control, manage, franchise, license, and regulate emergency medical services, emergency medical technicians, emergency and nonemergency ambulances, ambulance companies, their relative properties, facilities, equipment, personnel, and all aspects attendant to providing emergency medical services and ambulance operations as the cities and counties may deem proper to provide for the health, safety, and welfare of their citizens.
    2. In addition, it is legislatively determined that, in order to accomplish the purposes enumerated in this chapter, it may also be necessary for the cities and counties, in addition to all other powers granted in this chapter, to enact and establish standards, rules, and regulations that are equal to, or greater than, the minimum standards and rules established by the state, pursuant to §§ 20-13-201 — 20-13-209 and 20-13-211, concerning emergency medical services, emergency medical technicians, ambulances, ambulance companies, their relative properties, facilities, equipment, personnel, and all aspects attendant to providing emergency medical services and ambulance operations within the boundaries of their respective cities or in respect to the unincorporated areas of the county.
    3. Further, it is the legislative intent that the standards, rules, and regulations shall not be less than those established by the state.
    1. It is further legislatively determined that emergency medical services and ambulance operations, when subjected to competitive practices of multiple companies simultaneously serving the same city or with respect to the unincorporated areas of the county, operate under precarious financial conditions and that this type of competition is harmful to the health, safety, and welfare of residents of the state.
    2. However, it is also legislatively determined that periodic competition among companies for the right to provide ambulance services offers a safe and effective means of encouraging fair and equitable private-sector participation.
    3. Therefore, in order to ensure the availability of state-of-the-art advanced life-support systems and ambulance systems, the General Assembly specifically delegates and grants to cities of the first class, cities of the second class, and counties the power to contract exclusively or otherwise, using competitive procurement methods, for the provision of emergency medical services and ambulance services for the city and within the unincorporated areas of the county to provide continuing supervision of those services.
    1. The General Assembly has determined that this chapter grants cities of the first class, cities of the second class, and counties broad authority regarding emergency medical services and nonemergency medical services.
    2. The General Assembly has further determined that cities of the first class, cities of the second class, and counties should be allowed to enter into agreements with other cities within the county where they are located or with the county wherein they are located regarding emergency medical services and nonemergency medical services.
    3. Therefore, cities of the first class and cities of the second class may enter into interlocal agreements with other cities located within the county wherein the city of the first class or city of the second class is located, or with the county wherein the city of the first class or city of the second class is located, and thereby exercise as a cooperative governmental unit all power granted to the city of the first class, city of the second class, or county by this chapter.

History. Acts 1981 (1st Ex. Sess.), No. 23, § 2; A.S.A. 1947, § 19-5902; Acts 1987, No. 407, § 3; 1989, No. 196, § 1; 2017, No. 1122, § 2; 2019, No. 315, § 1039.

Amendments. The 2017 amendment inserted “and counties” throughout (a) and (b); added “or in respect to the unincorporated areas of the county” at the end of (a)(2) and inserted similar language in (b)(1) and (b)(3); redesignated (c) as (c)(1) through (c)(3); inserted “and counties” in (c)(1) and (2); inserted “or county” in (c)(3); and made stylistic changes.

The 2019 amendment substituted “standards and rules established” for “standards, rules, and regulations established” in (a)(2).

14-266-103. Definitions.

As used in this chapter:

  1. “Emergency medical services” means the transportation and emergency medical services personnel care provided to the critically ill or injured before arrival at a medical facility by licensed emergency medical services personnel and within a medical facility subject to the individual approval of the medical staff and governing board of that facility; and
    1. “Nonemergency ambulance services” means the transport in a motor vehicle to or from medical facilities, including without limitation hospitals, nursing homes, physicians' offices, and other healthcare facilities of persons who are infirm or injured and who are transported in a reclining position.
    2. “Nonemergency ambulance services” does not include transportation provided by licensed hospitals that own and operate the ambulance for their own admitted patients.

History. Acts 1981 (1st Ex. Sess.), No. 23, § 3; A.S.A. 1947, § 19-5903; Acts 2009, No. 689, § 3; 2011, No. 778, § 4; 2013, No. 1218, § 1.

Amendments. The 2009 amendment deleted “unless the context otherwise requires” at the end of the introductory language; in (1), substituted “emergency medical services personnel” for “emergency medical technician” and “licensed emergency medical services personnel” for “a certified emergency medical technician (EMT)”; subdivided (2); and made related and minor stylistic changes.

The 2011 amendment deleted “However” at the beginning of (2)(B).

The 2013 amendment rewrote (2)(B).

14-266-104. Applicability and construction.

  1. This chapter does not apply to nonprofit or hospital-based ambulance services operated on November 1, 1981, by a nonprofit organization or an Arkansas hospital licensed by the Department of Health.
  2. This chapter does not expand the authority of emergency medical technicians or other ambulance personnel beyond the authority existing under applicable law.
  3. This chapter does not give cities or counties the power to regulate regional or state emergency medical service communication facilities.

History. Acts 1981 (1st Ex. Sess.), No. 23, § 3; A.S.A. 1947, § 19-5903; Acts 2017, No. 1122, § 3.

Amendments. The 2017 amendment substituted “This chapter does not” for “Nothing in this chapter shall” in (a); in (b), substituted “This chapter does not expand” for “Nothing in this chapter shall be construed as expanding” and deleted “Arkansas” following “applicable”; and, in (c), substituted “This chapter does not give cities or counties” for “Nothing in the chapter shall be construed to give cities” and deleted “in any way” following “regulate”.

14-266-105. Grant of authority.

  1. Cities of the first class, cities of the second class, and counties may:
      1. Enact and establish standards, rules, and regulations that are equal to or greater than those established by the state concerning emergency medical services and emergency medical services personnel, emergency and nonemergency ambulances, and ambulance companies, as defined under §§ 20-13-201 — 20-13-209 and 20-13-211.
      2. However, the standards, rules, and regulations shall not be less than those established by this state;
    1. Establish, own, operate, regulate, control, manage, permit, franchise, license, and contract with, exclusively or otherwise, emergency medical services, ambulances, ambulance companies, and their relative properties, facilities, equipment, personnel, and any aspects attendant to emergency medical services and ambulance operations, whether municipally owned or otherwise, including without limitation:
      1. Rates;
      2. Fees;
      3. Charges; and
      4. Other assessments the cities and counties consider proper to provide for the health, safety, and welfare of their citizens;
    2. Establish an emergency medical healthcare facilities board, hereinafter called “emergency medical services board” or “EMS board”, under the Public Facilities Boards Act, § 14-137-101 et seq., and exercise all the powers conferred in this chapter and the power conferred under the Public Facilities Boards Act, § 14-137-101 et seq., either alone or in conjunction with the EMS board;
    3. Provide emergency medical services to its residents and to the residents of the county, surrounding counties, and municipalities within those counties, but only if the governing bodies of the counties and municipalities request and authorize the service under § 14-14-101, §§ 14-14-103 — 14-14-110, or the Interlocal Cooperation Act, § 25-20-101 et seq.; and
    4. Regulate:
        1. All intracity patient transports, all intercity patient transports, and all intracounty patient transports originating from within the regulating city.
        2. However, this chapter does not restrict or allow:
          1. Local regulation of ambulances owned and operated by a licensed hospital for its own admitted patients, except as provided in subdivisions (a)(5)(B) and (a)(5)(D) of this section; or
          2. County regulation of transportation provided by a medical facility;
        1. Patient transports, by the patient's choice of either the emergency medical service provided by the regulating city, regulating county, or the emergency medical service that is owned and operated by the licensed hospital for its own admitted patients, to the regulating city or regulating county originating from a medical facility outside the regulating city or cooperative governmental unit.
        2. If the medical facility does not operate an emergency medical service and the patient has chosen to be transported by the medical facility, then the patient shall be transported by the emergency medical service provided by the city or county in which the medical facility is located;
      1. Patient transports originating from within the regulating city or county by emergency medical service providers with an existing special purpose license issued by the Department of Health on July 31, 2009; and
      2. Patient transports authorized by the regulating city's or county's franchised emergency medical service provider if the provider has entered into a mutual aid agreement with a third-party ambulance service, including without limitation a hospital-owned ambulance service to provide patient transports, and if the franchised emergency medical service provider cannot provide patient transports in a timely manner under the franchise agreement.
    1. A city or county regulating ambulance companies that contracts with private ambulance companies under this chapter shall permit those companies to offer ambulance services outside its boundaries.
    2. A city or county regulating ambulance services, when the municipality or county owns or operates those ambulance services, shall provide ambulance services to those surrounding areas whose governing bodies request and authorize those ambulance services but only if mutually agreeable contracts can be reached to provide those ambulance services.
    3. All direct and indirect costs of extending those ambulance services shall be borne entirely by patient-user fees or subsidies provided by the patient, municipality, or county to whom those ambulance services are rendered.
    4. The city or county extending ambulance services beyond its boundaries is not required to subsidize or otherwise extend financial support to render those ambulance services.
  2. The city or county has the same authority to regulate nonemergency ambulance services.

History. Acts 1981 (1st Ex. Sess.), No. 23, § 3; A.S.A. 1947, § 19-5903; Acts 1989, No. 196, § 2; 2009, No. 689, § 4; 2009, No. 1448, § 1; 2013, No. 1218, § 2; 2017, No. 1122, § 4.

Amendments. The 2009 amendment by No. 689 subdivided (a)(1) and substituted “emergency medical services personnel” for “emergency medical technicians” in (a)(1)(A); subdivided (a)(2) and (a)(5); and made related and minor stylistic and punctuation changes.

The 2009 amendment by No. 1448 substituted “the Public Facilities Boards Act, § 14-137-101 et seq.” for “§§ 14-137-10114-137-123” in two places in (a)(3); in (a)(5), inserted (a)(5)(B) through (D), rewrote and redesignated the existing text of (a)(5) accordingly; and made related and minor stylistic changes.

The 2013 amendment substituted “ambulances owned and ... admitted patients” for “not for hire on a fee for service basis transportation or intercity patient transports to medical facilities within the regulating city originating from anywhere outside the regulating city” in (a)(5)(A); substituted “that is owned and operated ... own admitted patients” for “provided by the medical facility” in (a)(5)(B)(i); and rewrote (a)(5)(D).

The 2017 amendment inserted “and counties” in the introductory language of (a) and in (a)(2)(D); substituted “may” for “are authorized” in the introductory language of (a); deleted “as defined in this chapter” preceding “and emergency” in (a)(1)(A); added the introductory language of (a)(5); redesignated (a)(5)(A) as (a)(5)(A)(i) and (ii); added (a)(5)(A)(ii) (b) ; inserted “regulating county” twice in (a)(5)(B)(i); inserted “or county” in (a)(5)(B)(ii), (a)(5)(C), (b)(1), (b)(2), and (c); inserted “or county's” in (a)(5)(D); rewrote (b)(4); and made stylistic changes.

Case Notes

Cited: City of Clinton v. Southern Paramedic Servs., 2012 Ark. 88, 387 S.W.3d 137 (2012).

14-266-106. Authority of EMS board.

    1. In addition to the powers granted under the Public Facilities Boards Act, § 14-137-101 et seq., the EMS board, unless limited by the governing body of the city or county, has unlimited authority, by negotiation or by bidding, to own, acquire, lease, construct, contract, operate, manage, improve, extend, maintain, control, permit, license, supervise, and regulate emergency medical services, ambulances, ambulance companies, their related properties, facilities, equipment, personnel, and all aspects attendant to providing emergency medical services and ambulance operations in the city or county.
    2. The authority under subdivision (a)(1) of this section includes without limitation the right to employ, regulate, license, and remove personnel, assistants, and employees and to regulate and fix their compensation.
  1. The EMS board may also appoint an executive director who shall not be a member of the EMS board and who shall serve at the pleasure of the EMS board and receive such compensation as shall be fixed by the EMS board.
  2. The members of the EMS board shall receive no compensation but shall be entitled to reimbursement of expenses incurred in the performance of their duties.

History. Acts 1981 (1st Ex. Sess.), No. 23, § 5; A.S.A. 1947, § 19-5905; Acts 2017, No. 1122, § 5.

Amendments. The 2017 amendment redesignated (a) as (a)(1) and (a)(2); in (a)(1), inserted “or county” twice; in (a)(2), substituted “The authority under subdivision (a)(1) of this section includes without limitation” for “This may include, but not be limited to” and deleted “of whatsoever nature, kind, or character” following “employees”; and made stylistic changes.

14-266-107. Franchise.

  1. Cities of the first class, cities of the second class, and counties, whether or not they establish an EMS board as provided in this chapter, have all the powers that an EMS board is granted in this chapter and may exercise those powers alone or in conjunction with an EMS board.
  2. The cities and counties may franchise, exclusively or otherwise, emergency medical services, ambulances, ambulance companies, their related properties, facilities, equipment, personnel, and all aspects attendant to providing emergency medical services and ambulance operations within the cities or counties, whether or not owned and operated by the cities or counties.
  3. If an exclusive franchise is issued, the process employed in the issuance shall provide periodic opportunity for competitive solicitation of ambulance franchise applications.

History. Acts 1981 (1st Ex. Sess.), No. 23, § 6; A.S.A. 1947, § 19-5906; Acts 1989, No. 196, § 3; 2017, No. 1122, § 6.

Amendments. The 2017 amendment inserted “and counties” in (a); in (b), substituted “The cities and counties may” for “The cities shall also have the right and power to”, inserted “or counties”, and substituted “cities or counties” for “city” at the end; and made stylistic changes.

14-266-108. Financing of services and facilities.

  1. The emergency medical services and emergency medical health care facilities anticipated by this chapter may be financed by service charges and bonds or by subsidy by some governmental agency.
    1. The bonds, which shall be issued under §§ 14-137-101 — 14-137-123, may be financed by service charges and rates levied by ordinance.
    2. The service charges and rates shall be assessed and collected on a per unit of service basis as determined by the EMS Board.

History. Acts 1981 (Ex. Sess.), No. 23, § 4; A.S.A. 1947, § 19-5904.

14-266-109. Rules, standards, and regulations.

  1. All rules, standards, and regulations concerning clinical medical standards, including, but not limited to, equipment standards, personnel standards, and training standards shall be submitted to the State Board of Health with advice from the Governor's Advisory Council for EMS through the Department of Health for review and approval before becoming effective.
    1. Approval shall not be required if the clinical medical standards are developed and approved by an organization of physicians licensed under the Arkansas Medical Practices Act, and authorized by local ordinance adopted pursuant to this chapter to establish clinical medical standards which are not in conflict with the Arkansas Medical Practices Act, and are not less than those established by this state.
    2. In this instance, the clinical medical standards so developed and approved shall be submitted to the State Board of Health with advice from the Governor's Advisory Council for EMS through the Department of Health for review and comment only.

History. Acts 1981 (Ex. Sess.), No. 23, § 3; A.S.A. 1947, § 19-5903.

Publisher's Notes. The Arkansas medical Practices Act is codified as §§ 17-95-20117-95-206, 17-95-301 et seq., and 17-95-401 et seq.

14-266-110. Effect of termination of permit by state.

The revocation, suspension, or expiration of any permit, license, or certification issued by the Department of Health to an ambulance company or ambulance personnel shall cause an automatic revocation of the holder's permit, license, certification, or franchise granted under this chapter.

History. Acts 1981 (Ex. Sess.), No. 23, § 3; A.S.A. 1947, § 19-5903.

Chapter 267 Pollution Control Facilities

Publisher's Notes. Acts 1985, No. 945 confirmed and continued the authority of municipalities and counties to issue pollution control revenue bonds pursuant to Acts 1973, No. 247.

Cross References. Local Government Bond Act of 1985, § 14-164-301 et seq.

Effective Dates. Acts 1973, No. 247, § 15: Mar. 7, 1973. Emergency clause provided: “It is hereby found and declared that pollution control facilities are essential to the continued health, welfare, safety, economic growth and development of the State of Arkansas and its people and that the availability of permanent financing for pollution control facilities on favorable terms is necessary. This Act is immediately necessary in order that such facilities may be so financed and accomplished and the resulting public benefits realized. Therefore, an emergency is declared to exist and this Act being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 1975, No. 153, § 6: Feb. 12, 1975. Emergency clause provided: “It is hereby found and declared that it is essential and necessary that additional means be provided to assist in the financing of pollution control facilities and that a greater degree of flexibility be provided with respect to the security for such financing by municipalities and counties. This Act is immediately necessary in order to facilitate the financing and accomplishment of pollution control facilities and the realization of the public benefits resulting therefrom. Therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1981, No. 5, § 6: Jan. 28, 1981. Emergency clause provided: “It is found and declared that the financing of the public improvements to which this Act pertains is not feasible under existing limitations as to maximum interest rates and minimum sale prices, and that these public improvements are essential to the continued development of this State and the continued improvement of the economic conditions of her people. These public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 1981, No. 504, § 5: Mar. 16, 1981. Emergency clause provided: “It is found and declared that the financing of the pollution control facilities to which this Act pertains is not feasible under existing limitations as to maximum interest rates and that procedures for issuing revenue bonds must be clarified immediately in order to permit the continued financing of such facilities. This Act is immediately necessary in order to facilitate the financing and accomplishment of pollution control facilities and the realization of the public benefit resulting therefrom. Therefore, an emergency is hereby declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1985, No. 453, § 3: Mar. 20, 1985. Emergency clause provided: “It is hereby found and determined by the General Assembly that pollution control facilities are essential to the continued health, welfare, safety, economic growth and development of the State of Arkansas and its people and that the availability of permanent financing for pollution control facilities on favorable terms is necessary; and that this Act is immediately necessary in order that such facilities may be so financed and accomplished and the resulting public benefits realized. Therefore, an emergency is hereby declared to exist, and this Act being immediately necessary for the preservation of the public peace, health, and safety, shall be in full force and effect from and after its passage and approval.”

Research References

ALR.

When statute of limitations begins to run as to cause of action for nuisance based on air pollution. 19 A.L.R.4th 456.

Validity, construction, and effect of requirement under state statute or local ordinance giving local or locally qualified contractors a percentage preference in determining lowest bid. 89 A.L.R.4th 587.

U. Ark. Little Rock L.J.

Legislative Survey, Bonds, 8 U. Ark. Little Rock L.J. 551.

14-267-101. Legislative determination.

  1. Pollution control facilities are legislatively determined to be essential to the securing and developing of industry and essential to the health, safety, and physical and economic welfare of the people of this state.
  2. The availability of permanent financing for pollution control facilities on favorable terms is necessary in the case of new and existing projects so that the people may obtain the benefits of additional jobs and payrolls, in the case of new projects, and may retain and, where applicable, expand jobs and payrolls which might otherwise be lost, in the case of existing projects. This chapter is in implementation of Arkansas Constitution, Amendment 49 [repealed], and is necessary for the full accomplishment and realization of the public purposes contemplated by the people in adopting Arkansas Constitution, Amendment 49 [repealed].

History. Acts 1973, No. 247, § 1; A.S.A. 1947, § 13-1901.

A.C.R.C. Notes. It is questionable whether Ark. Const. Amend. 49 is repealed in whole or whether only those provisions that conflict with Ark. Const. Amend. 62 are repealed by Ark. Const. Amend. 62.

14-267-102. Definitions.

As used in this chapter, unless the context otherwise requires:

  1. “Acquire” means to obtain by gift, purchase, or other arrangement any pollution control facilities, including, without limitation, those theretofore existing, those theretofore constructed and equipped, those theretofore partially constructed and equipped, and those being constructed and equipped at the time of acquisition, for such consideration and pursuant to such terms and conditions as the governing body of the municipality or the county court shall determine;
  2. “Construct” means to acquire or build extensions, in whole or in part, in such manner and by such method including contracting therefor and, if the latter, by negotiation or bidding upon such terms and pursuant to such advertising as the municipality or county shall determine to be in the public interest and necessary under the circumstances existing at the time to accomplish the purposes of, and authorities set forth in, this chapter;
  3. “Equip” means to install or place in or on any building or structure equipment, of any and every kind, whether or not affixed, including, without limitation, building service equipment, fixtures, heating equipment, air conditioning equipment, machinery, furniture, furnishings, and personal property of every kind;
  4. “Facilities” or “pollution control facilities” means any real property, personal property, or mixed property of any and every kind that can be used or that will be useful in pollution control of sewerage, solid waste, air, water, or any other type whatever, or any combination thereof, including, without limitation, rights-of-way, roads, streets, pipes, pipelines, reservoirs, utilities, materials, equipment, fixtures, machinery, furniture, furnishings, instrumentalities, buildings, improvements, and other real, personal, or mixed property of every kind;
  5. “Governing body” means the council, board of directors, or city commission of any municipality;
  6. “Lease” means to lease for such rentals, for such period or periods, and upon such terms and conditions as the municipality or county shall determine and the granting of such extension and purchase options for such prices and upon such terms and conditions as the municipality or county shall determine;
  7. “Municipality” means a city of the first or second class or an incorporated town;
  8. “Sell” means to sell for such price, in such manner, and upon such terms as the municipality or county shall determine including, without limitation, public or private sale and, if public, pursuant to such advertisement as the municipality or county shall determine. “Sell” also means to sell for cash or credit, payable in a lump sum or in installments over such period as the municipality or county shall determine and, if on credit, with or without interest and at such rate or rates as the municipality or county shall determine;
  9. “Loan” means to loan for such period or periods, at such rate or rates of interest, in such manner, and upon such terms and conditions as the municipality or county shall determine including, without limitation, a secured or unsecured loan.

History. Acts 1973, No. 247, § 12; 1975, No. 153, § 3; 1981, No. 504, § 2; A.S.A. 1947, § 13-1912.

14-267-103. Construction.

  1. This chapter is to be liberally construed to accomplish the purposes hereof and shall be the sole act and authority necessary to be complied with. To that end, this chapter and the authority conferred by it shall be supplemental to all other authority set forth in any other act authorizing or dealing with industrial or pollution control facilities and their financing.
  2. The pollution control facilities authorized by this chapter may pertain to any aspect of the securing and developing of industry including those directly involved and those indirectly involved therewith, such as, without limiting the generality of the foregoing, utility facilities and services, whether rendered by political subdivisions or private persons, corporations, or organizations.
  3. Nothing in this chapter shall be construed to authorize any municipality or county to sell bonds and use the proceeds of that sale to condemn a utility plant or distribution system owned or operated by a regulated public utility.

History. Acts 1973, No. 247, § 13; A.S.A. 1947, § 13-1913.

14-267-104. Authority.

Any municipality and any county in this state is authorized to own, acquire, contruct, reconstruct, extend, equip, improve, operate, maintain, sell, lease, contract concerning, or otherwise deal in or dispose of, or make loans to finance the acquisition, construction, reconstruction, extension, equipment, or improvement of pollution control facilities for the disposal or control of sewerage, solid waste, water pollution, air pollution, or any combination thereof; any such undertaking, or combination of such undertakings, shall be sometimes referred to in this chapter as a “pollution control project.”

History. Acts 1973, No. 247, § 2; 1975, No. 153, § 1; A.S.A. 1947, § 13-1902.

14-267-105. Agreements with federal or state agencies.

Municipalities and counties are authorized to enter into and carry out appropriate agreements with any agency or political subdivision of the United States of America or of the State of Arkansas pertaining to the accomplishment of the purposes authorized by this chapter including, without limitation, loan agreements for the borrowing of money and agreements pertaining to grants.

History. Acts 1973, No. 247, § 11; A.S.A. 1947, § 13-1911.

14-267-106. Bonds — Authority to issue.

  1. Municipalities and counties are authorized to use any available revenues for the accomplishment of pollution control projects, either alone or together with other available funds and revenues. They may issue bonds, as authorized in this chapter, for the accomplishment of pollution control projects, either alone or together with other available funds and revenues.
  2. Bonds may be issued in such principal amount as shall be sufficient to pay the cost of accomplishing the pollution control project involved, the cost of issuing bonds, the amount necessary for a reserve, if deemed desirable, the amount necessary to provide for debt service on the bonds until revenues for the payment thereof are available, and any other costs and expenditures of whatever nature incidental to the accomplishment of the pollution control project involved.

History. Acts 1973, No. 247, § 3; A.S.A. 1947, § 13-1903.

14-267-107. Bonds — Issuance, sale, and execution.

    1. The issuance of bonds shall be by ordinance of the municipality or by order of the county court.
    2. The bonds may be coupon bonds payable to bearer, but subject to registration as to principal only or as to principal and interest; may be exchangeable for bonds of another denomination; may be in such form and denominations; may be made payable at such places within or without the state; may be issued in one (1) or more series; may bear such date or dates; may mature at such time or times, not exceeding forty (40) years from their respective dates; may bear interest at such rate or rates; may be payable in such medium of payment; may be subject to such terms of redemption; and may contain such terms, covenants, and conditions as the ordinance or order authorizing their issuance may provide including, without limitation, those pertaining to the custody and application of the proceeds of the bonds, the collection and disposition of revenues, the maintenance of various funds and reserves, the nature and extent of the security and pledging of revenues, the rights, duties, and obligations of the municipality or county and the trustee for the holders and registered owners of the bonds, and the rights of the holders and registered owners of the bonds.
    3. There may be successive bond issues for the purpose of financing the same pollution control project, and there may be successive bond issues for financing the cost of reconstructing, replacing, constructing additions to, extending, improving, and equipping pollution control projects already in existence, whether or not originally financed by bonds issued under this chapter, with each successive issue to be authorized as provided by this chapter.
    4. Priority between and among issues and successive issues as to security of the pledge of revenues and lien on the pollution control project facilities involved may be controlled by the ordinance or order authorizing the issuance of bonds under this chapter.
    5. Subject to the provisions of this subsection pertaining to registration, the bonds shall have all the qualities of negotiable instruments under the laws of the State of Arkansas.
    1. The ordinance or order authorizing the bonds may provide for the execution by the municipality or county of an indenture which defines the rights of the holders and registered owners of the bonds and which provides for the appointment of a trustee for the holders and registered owners of the bonds.
    2. The indenture may control the priority between successive issues and may contain any other terms, covenants, and conditions that are deemed desirable including, without limitation, those pertaining to the custody and application of the proceeds of the bonds, the maintaining of rates and charges, the collection and disposition of revenues, the maintenance of various funds and reserves, the nature and extent of the security and pledging of revenues, the rights, duties, and obligations of the municipality and the trustee, and the rights of the holders and registered owners of the bonds.
    3. It shall not be necessary for the municipality to publish any indenture, lease, or other agreement if the ordinance authorizing an indenture, lease, or other agreement is published as required by the law governing the publication of ordinances of a municipality; if the ordinance advises that a copy of the indenture, lease, or other agreement, as the case may be, is on file in the office of the clerk or recorder of the municipality for inspection by any interested person; and if the copy of the indenture, lease, or other agreement, as the case may be, is actually filed with the clerk or recorder of the municipality.
  1. The bonds may be sold for such price, including, without limitation, sale at a discount, and in such manner as the municipality or county may determine by ordinance or county court order.
    1. The bonds shall be executed by the mayor and the city clerk or recorder of the municipality or the county judge and county clerk of the county, as the case may be, and in case any of the officers whose signatures appear on the bonds or coupons shall cease to be officers before the delivery of the bonds or coupons, the signatures shall, nevertheless, be valid and sufficient for all purposes.
    2. One (1) signature may be facsimile, but one (1) must be manual.
    3. The coupons attached to the bonds may be executed by the facsimile signature of the mayor of the municipality or the county judge of the county.

History. Acts 1973, No. 247, § 4; 1981, No. 5, §§ 1-3; 1981, No. 504, § 1; A.S.A. 1947, § 13-1904.

14-267-108. Bonds — Issuance for refunding of obligations.

  1. Bonds may be issued for the purpose of refunding any obligations issued under this chapter.
  2. The refunding bonds may be combined with bonds issued under the provisions of § 14-267-107 into a single issue.
    1. When bonds are issued under this section for refunding purposes, the bonds may either be sold or delivered in exchange for the outstanding obligations.
    2. If sold, the proceeds may be either applied to the payment of the obligations refunded or deposited in escrow for the retirement thereof.
  3. All bonds issued under this section shall, in all respects, be authorized, issued, and secured in the manner provided for other bonds issued under this chapter and shall have all the attributes of those bonds.
  4. The ordinance or order under which chapter refunding bonds are issued may provide that any of the refunding bonds shall have the same priority of lien on the revenues pledged for their payment as was enjoyed by the obligations refunded thereby.

History. Acts 1973, No. 247, § 6; A.S.A. 1947, § 13-1906.

14-267-109. Bonds — Indebtedness as special obligation — Payment of principal and interest.

  1. The bonds issued under this chapter shall not be general obligations of the municipality or county but shall be special obligations. In no event shall the bonds constitute an indebtedness of the municipality or county within the meaning of any constitutional or statutory limitation.
  2. It shall be plainly stated on the face of each bond that the same has been issued under the provisions of this chapter, and that it does not constitute an indebtedness of the municipality or county within any constitutional or statutory limitation.
  3. The principal of and interest on the bonds shall be secured by a pledge of, and shall be payable from, revenues derived from the pollution control project acquired, constructed, reconstructed, extended, or improved, in whole or in part, with the proceeds of the bonds.
  4. In addition, the municipality or county is authorized to pledge to and use for the payment of the principal of and interest on the bonds, together with other expenses in connection therewith, surplus revenues derived from water, sewer, gas, and electric utilities owned by the municipality or county.
  5. Surplus revenues, as used in this section, are defined to mean revenues remaining after adequate provision shall have been made for expenses of operation, maintenance, and depreciation and all requirements of ordinances, orders, or indentures securing bonds, theretofore and thereafter issued to finance the cost of acquiring, constructing, reconstructing, extending, or improving the utilities, have been fully met and complied with.

History. Acts 1973, No. 247, § 5; 1985, No. 453, § 1; A.S.A. 1947, § 13-1905.

14-267-110. Bonds — Mortgage lien.

  1. The ordinance, order, or indenture referred to in § 14-267-107 may, but need not, impose a foreclosable mortgage lien upon the land, buildings, and facilities acquired, constructed, reconstructed, extended, equipped, or improved, in whole or in part, with the proceeds of bonds issued under this chapter. The nature and extent of the mortgage lien may be controlled by the ordinance, order, or indenture, including, without limitation, provisions pertaining to the release of all or part of the land, buildings, and facilities from the mortgage lien and the priority of the mortgage lien in the event of successive bond issues, as authorized by § 14-267-107.
  2. The ordinance, order, or indenture authorizing or securing the bonds may authorize any holder or registered owner of bonds issued under the provisions of this chapter, or a trustee on behalf of all holders and registered owners, either at law or in equity, to enforce the mortgage lien and, by proper suit, compel the performance of the duties of the officials of the issuing municipality or county as set forth in this chapter and in the ordinance, order, or indenture authorizing or securing the bonds.
  3. References in this chapter to “mortgage lien” shall include a security interest in any personal property embodied in a pollution control project acquired, constructed, reconstructed, extended, equipped, or improved, in whole or in part, with the proceeds of bonds issued under this chapter.

History. Acts 1973, No. 247, § 7; 1975, No. 153, § 2; A.S.A. 1947, § 13-1907.

14-267-111. Bonds — Default in payment.

  1. In the event of a default in the payment of the principal of or interest on any bonds issued under this chapter, any court having jurisdiction may appoint a receiver to take charge of the land, buildings, or facilities acquired, constructed, reconstructed, extended, equipped, or improved, in whole or in part, with the proceeds of bonds issued under this chapter, upon which land, buildings, or facilities, or any part thereof, there is a mortgage lien securing the bonds with reference to which there is a default in the payment of principal or interest.
  2. The receiver shall have the power to operate and maintain the land, buildings, or facilities, to charge and collect rates or rents sufficient to provide for the payment of the principal of and interest on the bonds after providing for the payment of all costs of receivership and operating expenses of the land, buildings, or facilities and to apply the income and revenues derived from the land, buildings, or facilities in conformity with this chapter and the ordinance, order, or indenture authorizing or securing the bonds.
  3. When the default has been cured, the receivership shall be ended and the properties returned to the municipality or county.
  4. The relief afforded by this section shall be construed to be in addition and supplemental to the remedies that may be afforded to the trustee for the holders and registered owners of the bonds and the holders and registered owners of the bonds in the ordinance or indenture authorizing or securing the bonds and shall be so granted and administered as to accord full recognition to priority rights of holders and registered owners of the bonds as to the pledge of revenues from, and the mortgage lien on, the land, buildings, or facilities as specified in, and fixed by, the ordinance, order, or indenture authorizing or securing successive bond issues.

History. Acts 1973, No. 247, § 8; A.S.A. 1947, § 13-1908.

14-267-112. Bonds — Tax exemption.

Bonds issued under this chapter shall be exempt from all state, county, and municipal taxes, including income and inheritance taxes.

History. Acts 1973, No. 247, § 9; A.S.A. 1947, § 13-1909.

A.C.R.C. Notes. Language excluding property taxes from the exemption provided by this section was deleted pursuant to Ark. Const. Amend. 57, § 1 and § 26-3-302. Arkansas Const. Amend. 57, § 1 provides that the General Assembly may classify intangible personal property for assessment at lower percentages of value than other property and may exempt one or more classes of intangible personal property from taxation, or may provide for the taxation of intangible personal property on a basis other than ad valorem. Section 26-3-302 exempts all intangible personal property in this state from all ad valorem tax levies of counties, cities, and school districts in the state as of January 1, 1976.

14-267-113. Bonds — Investment of public funds.

  1. Any municipality; any board, commission, or other authority duly established by ordinance of any municipality; the boards of trustees, respectively, of the firemen's relief and pension fund and the policemen's pension and relief fund of any municipality; or the board of trustees of any retirement system created by the General Assembly, may, in its discretion, invest any of its funds not immediately needed for its purposes in bonds issued under the provisions of this chapter.
  2. Bonds issued under the provisions of this chapter shall be eligible to secure the deposit of public funds.

History. Acts 1973, No. 247, § 10; A.S.A. 1947, § 13-1910.

Chapter 268 Flood Loss Prevention

Research References

ALR.

Local use zoning of wetlands or flood plain as taking without compensation. 19 A.L.R.4th 756.

Liability for diversion of surface water by raising surface level of land. 88 A.L.R.4th 891.

Case Notes

Cited: Hurst v. Holland, 347 Ark. 235, 61 S.W.3d 180 (2001).

14-268-101. Legislative determination.

It is found and declared:

  1. That there are communities and areas in this state which have suffered from, and are threatened by, floods and the incidents and hazards of flooding;
  2. That flooding in the areas causes destruction of life and property, contributes to the spread of disaster-related diseases, and constitutes a hindrance to the economic development of this state and to the health, safety, and welfare of the residents of this state;
  3. That flood hazards in these flood-prone areas impair their economy and tax revenues;
  4. That insurance with federal reinsurance or other federal assistance will not be available to property owners in these communities unless adequate land use and control measures, consistent with federal criteria, are adopted by the communities prior to June 30, 1970;
  5. That it is the policy of this state to encourage and support all appropriate actions to prevent and lessen these flood hazards and losses;
  6. That it is necessary to adopt state and local measures which, to the maximum extent feasible, will:
    1. Discourage the development of land by improvements which are exposed to flood damage;
    2. Guide the development of proposed construction away from locations which are threatened by flood hazards;
    3. Assist in reducing damage caused by floods; and
    4. Otherwise improve long-range land management in, and use of, flood-prone areas; and
  7. That the enactment of these measures by cities, towns, counties, or the state constitutes a public purpose necessary to the protection and promotion of the economic development of this state and to the health, safety, and welfare of the residents of this state.

History. Acts 1969, No. 629, § 1; A.S.A. 1947, § 21-1901.

14-268-102. Definitions.

As used in this chapter:

  1. “Commission” means the Arkansas Natural Resources Commission;
  2. “Floodplain administrator” means the person designated by a city, town, or county to administer and implement this chapter and other federal and state laws and local ordinances and regulations relating to the management of flood-prone areas; and
  3. “Flood-prone areas” means areas that are subject to or are exposed to flooding and flood damage.

History. Acts 1969, No. 629, § 2; A.S.A. 1947, § 21-1902; Acts 2003, No. 745, § 1.

Amendments. The 2003 amendment made the section heading plural; redesignated the former single sentence as the present introductory language and (3); deleted “unless the context otherwise requires” following “this chapter” from the introductory language; and added (1) and (2).

14-268-103. Penalty.

  1. Any person or corporation who violates any measure adopted under this chapter which prohibits the development of land by improvements that are exposed to flood damage or that are threatened by flood hazards may be fined not more than five hundred dollars ($500) for each offense.
  2. Each day during which a violation exists is a separate offense.

History. Acts 1969, No. 629, § 4; A.S.A. 1947, § 21-1904; Acts 2003, No. 745, § 2.

Amendments. The 2003 amendment added the present subsection designations; and in present (a), inserted “which prohibits the development of land by improvements that are exposed to flood damage or that are threatened by flood hazards,” and substituted “five hundred dollars ($500)” for “one hundred dollars ($100).”

14-268-104. Authority to adopt measures.

  1. In addition to all other powers, and notwithstanding any provision of any other law, each city, town, or county in this state is authorized to enact, adopt, and enforce ordinances, building or zoning codes, or other appropriate measures regulating, restricting, or controlling the management and use of land, structures, and other developments in flood-prone areas.
  2. The measures, in addition to all other matters, may:
    1. Restrict the development and use of land which is exposed to flood damage;
    2. To the extent possible, guide the development of proposed construction away from locations threatened by flood hazards;
    3. Prescribe assistance in reducing flood damage;
    4. Require flood-proofing of structures which are permitted to remain in, or are to be constructed in, flood-prone areas;
    5. Prescribe regulation of the types, purposes, and uses of structures, buildings, developments, or fills permitted to be erected or improved in flood-prone areas;
    6. Require drainage and such other action as is feasible to minimize flooding; and
    7. Assure the adequacy of sewerage and water systems that may be affected by flooding.

History. Acts 1969, No. 629, § 2; A.S.A. 1947, § 21-1902.

Case Notes

Construction.

Trial court erred in granting a city summary judgment in homeowners' action alleging that the city violated state and federal regulations governing floodplain management in constructing a park near their homes because there was an issue of material fact regarding whether the city fully complied with standard engineering practice as required by City of Bryant, Ark., Ordinance 95-31, and without such a finding, it could not be determined whether the park project was a nuisance pursuant to § 14-268-105; the homeowners presented facts that the city did not provide any type of hydrologic and hydraulic analyses prior to initiating the new construction of the park as required by Ordinance 95-31, and there was conflicting evidence as to whether the city was required to submit a conditional letter of map revision. Hall v. City of Bryant, 2010 Ark. App. 787, 379 S.W.3d 727 (2010).

Municipal Levee.

Where the city's proposed levee would not block a natural watercourse, the increased water elevation on the plaintiffs' properties caused by the proposed levee would be de minimis, and where the city had sufficient funds to compensate the plaintiffs for any damage to their property and to maintain the levee, construction of the levee was not enjoined. Scroggin v. City of Grubbs, 318 Ark. 648, 887 S.W.2d 283 (1994).

14-268-105. Public nuisance — Injunction or abatement.

Every structure, building, fill, or development placed or maintained within any flood-prone area in violation of measures enacted under the authority of this chapter is a public nuisance. The creation of any of these may be enjoined and the maintenance thereof may be abated by action or suit of any city, town, or county, the state, or any citizen of this state.

History. Acts 1969, No. 629, § 4; A.S.A. 1947, § 21-1904.

Case Notes

Construction.

City's construction of a sewage treatment at a site regulated by the ordinances of the neighboring town constituted a public nuisance as a matter of law, as defined in this section, and the city's power of eminent domain argument was waived. City of Dover v. City of Russellville, 363 Ark. 458, 215 S.W.3d 623 (2005).

Trial court erred in granting a city summary judgment in homeowners' action alleging that the city violated state and federal regulations governing floodplain management in constructing a park near their homes because there was an issue of material fact regarding whether the city fully complied with standard engineering practice as required by City of Bryant, Ark., Ordinance 95-31, and without such a finding, it could not be determined whether the park project was a nuisance pursuant to this section; the homeowners presented facts that the city did not provide any type of hydrologic and hydraulic analyses prior to initiating the new construction of the park as required by Ordinance 95-31, and there was conflicting evidence as to whether the city was required to submit a conditional letter of map revision. Hall v. City of Bryant, 2010 Ark. App. 787, 379 S.W.3d 727 (2010).

Remedies.

Aggrieved party was not required to exhaust his administrative remedies prior to seeking injunctive relief; a party was permitted to enjoin a public nuisance, without directing that any other steps be taken prior to requesting such relief. Hurst v. Holland, 347 Ark. 235, 61 S.W.3d 180 (2001).

Based on the plain language of this section, homeowners' lack of proof of damages was not dispositive to their claim for injunctive relief based on nuisance against a city; the statute does not require that the citizen present proof of damages or irreparable harm in order to obtain injunctive relief. Hall v. City of Bryant, 2010 Ark. App. 787, 379 S.W.3d 727 (2010).

While this section does not specifically require a showing of harm before an injunction will issue, the fact that harm is shown does not automatically mandate the issuance of an injunction because the plain language of this section gives the circuit court wide discretion as to whether the public nuisance will be enjoined. From the testimony, the circuit court could have determined that the flooding of appellants' homes was not the result of the county's construction of the road in violation of this section, and the circuit court did not abuse its discretion in denying appellants' request for an injunction. Bettger v. Lonoke County, 2015 Ark. App. 366, 465 S.W.3d 438 (2015).

14-268-106. Floodplain administrator.

  1. Each county, city, or town ordinance adopted under this chapter shall designate a person to serve as the floodplain administrator to administer and implement the ordinance and any local codes and regulations relating to the management of flood-prone areas.
  2. Beginning July 1, 2004, each floodplain administrator shall become accredited by the Arkansas Natural Resources Commission under the commission's authority regarding flood control under §§ 15-24-102 and 15-24-109.

History. Acts 2003, No. 745, § 3.

Chapter 269 Parks And Recreational Facilities

Cross References. Public recreation and playgrounds, § 14-54-1301 et seq.

Research References

ALR.

Liability of local government entity for injury resulting from use of outdoor playground equipment at municipally-owned park or recreation area. 73 A.L.R.4th 496.

Products liability, general recreational equipment. 77 ALR4th 1121.

Am. Jur. 59 Am. Jur. 2d, Parks, §§ 15 et seq., 24.

C.J.S. 62 C.J.S., Mun. Corp., §§ 645-650.

63 C.J.S., Mun. Corp., § 1057.

64 C.J.S., Mun. Corp., §§ 1818-1823.

Subchapter 1 — Acquisition, Construction, and Maintenance of Recreational Facilities

Cross References. Local Government Bond Act of 1985, § 14-164-301 et seq.

Effective Dates. Acts 1965, No. 486, § 17: approved Mar. 20, 1965. Emergency clause provided: “It is hereby found and declared that municipalities in this State do not have adequate programs for the developing and providing of public parks and facilities and that on account of such inadequate programs the municipalities have been unable to provide its inhabitants with necessary park and other facilities and have not realized the benefits which will flow from the stimulated economic growth resulting from such adequate programs and that unless such programs are made available, municipalities and the inhabitants thereof will continue to be penalized. The above set forth conditions can be alleviated by the authority set forth in this Act. An emergency, therefore, is declared to exist and this Act being necessary for the preservation of the public peace, health and safety, shall take effect and be in force from and after its passage.”

Acts 1970 (Ex. Sess.), No. 57, § 5: Mar. 13, 1970. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic condition of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 1975, No. 225, § 26: became law without Governor's signature, Feb. 19, 1975. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this state and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this act. Therefore, an emergency is declared to exist and this act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 1981, No. 425, § 54: Mar. 11, 1981. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Research References

Ark. L. Rev.

Comment, Municipal Bonds and Amendment 62: Clearing Up a Serbonian Bog, 39 Ark. L. Rev. 499.

14-269-101. Definitions.

As used in this subchapter, unless the context otherwise requires:

  1. “Governing body” means the council, board of directors, or city commission of any municipality;
  2. “Municipality” means a city of the first or second class or an incorporated town;
  3. “Equip” means to install or place in or on any building or structure, equipment of any and every kind, whether or not affixed, including, without limitation, building service equipment, fixtures, heating equipment, air conditioning equipment, machinery, furniture, furnishings, and personal property of every kind.
  4. “Sell” means to sell for such price, in such manner, and upon such terms as the municipality shall determine including, without limitation, public or private sale and, if public pursuant to such advertisement as the municipality shall determine. “Sell” also means to sell for cash or credit, payable in a lump sum or in installments over such period as the municipality shall determine, and if on credit, with or without interest and at such rate or rates as the municipality shall determine;
  5. “Lease” means to lease for such rentals, for such period or periods and upon such terms and conditions as the municipality shall determine including, without limitation, the granting of such renewal or extension options for such rentals, for such period or periods and upon such terms and conditions as the municipality shall determine and the granting of such purchase options for such prices and upon such terms and conditions as the municipality shall determine;
  6. “Facilities” means any real, personal, or mixed property of any and every kind that can be used, or that will be useful, in developing and providing public parks and facilities under this subchapter, including, without limitation, rights-of-way, roads, streets, pipes, pipelines, reservoirs, utilities, materials, equipment, fixtures, machinery, furniture, furnishings, instrumentalities, and other real, personal, or mixed property of every kind.

History. Acts 1965, No. 486, § 12; 1981, No. 425, § 6; A.S.A. 1947, § 19-3642.

14-269-102. Construction.

  1. This subchapter shall be liberally construed to accomplish its purposes.
  2. Nothing in this subchapter shall be construed to authorize any municipality to issue or sell revenue bonds, or use the proceeds of the bonds, to purchase or condemn a utility plant or distribution system owned or operated by a regulated public utility.

History. Acts 1965, No. 486, §§ 14, 15; A.S.A. 1947, §§ 19-3644, 19-3645.

14-269-103. General authority — Agreements with federal agencies — Condemnation proceedings.

  1. Any municipality in this state is authorized to own, acquire, construct, reconstruct, extend, equip, improve, operate, maintain, sell, lease, contract concerning, or otherwise deal in or dispose of any land, buildings, improvements, or facilities of any and every nature whatever necessary or desirable for the developing and providing of public parks and facilities within or near the municipality including, without limitation, recreation areas, stadiums, auditoriums, arts and crafts centers, folklore centers, interpretative centers, camping areas, and other facilities so as to provide for the recreation and cultural needs of its inhabitants and to stimulate and encourage the economic growth of the municipality and its inhabitants; each such undertaking by a municipality shall sometimes be referred to in this subchapter as a “project”.
    1. Any municipality in this state shall have the authority to lease to any individual, firm, or corporation municipal property comprising parks, playgrounds, golf courses, swimming pools, or other property which has been dedicated to a public use for recreational or park purposes, on such terms and conditions as may be desirable or necessary.
    2. Any municipality is also authorized to lease municipally owned lands and facilities to a community college board to be used for educational purposes.
    3. Any lease under this subsection shall be for a period not to exceed ninety-nine (99) years.
    4. Those persons or entities holding leases on municipal park and recreational facilities on July 6, 1977, shall have the first option to renew their leases.
  2. Municipalities are authorized to enter into and carry out appropriate agreements with any agency of the government of the United States of America, hereinafter referred to as “government,” pertaining to the accomplishment of the purposes authorized by this subchapter including, without limitation, loan agreements with the government for the borrowing of money and agreements pertaining to grants from the government.
    1. In the event that necessary lands needed for the accomplishment of the purposes authorized by this subchapter cannot be acquired by negotiation, any municipality is authorized to acquire the needed lands by condemnation proceedings under the power of eminent domain.
    2. The proceedings may be exercised in the manner provided for taking private property for rights-of-way for railroads as set forth in §§ 18-15-1202 — 18-15-1207, or in the manner provided by §§ 18-15-301 — 18-15-307, or pursuant to any other applicable statutory provisions for the exercise of the power of eminent domain by the various municipalities in the State of Arkansas.

History. Acts 1965, No. 486, §§ 1, 10, 11; 1977, No. 795, § 1; A.S.A. 1947, §§ 19-3631, 19-3640, 19-3641, 19-3646.

Publisher's Notes. Acts 1977, No. 795, § 1, is also codified as § 22-4-501(b).

Acts 1977, No. 795, § 3, provided that this act supersedes § 22-4-501 to the extent of any conflict.

Cross References. Disposition of property dedicated for public parks, § 22-4-501.

Lease of property for recreational purposes, §§ 14-234-406, 14-251-107.

Case Notes

Appeal.

In an eminent domain case in which an order of immediate possession was granted, because the issue of just compensation remained to be determined, the order granting immediate possession was not a final, appealable order. The construction of a bicycle trail would not render it impossible to restore his property to its previous condition. Thomas v. City of Fayetteville, 2012 Ark. 120 (2012).

Condemnation Proceedings.

City was authorized to enter into a lease agreement with an individual, firm, or corporation to operate a property dedicated to public use and on which the lessee was planning to put a presidential library, park, and complex, as such uses were “necessary or desirable” under this section. Pfeifer v. City of Little Rock, 346 Ark. 449, 57 S.W.3d 714 (2001).

City was authorized to institute condemnation proceedings to obtain land for public use pursuant to subsection (d)(1) as negotiation with the property owner to acquire the necessary land on which would be built a presidential library, park, and complex was not successful. Pfeifer v. City of Little Rock, 346 Ark. 449, 57 S.W.3d 714 (2001).

Scope.

Cities are authorized by this section to acquire land necessary or desirable for the developing and providing of public parks and facilities, but no authorization can be found in this section for the disposition of public parks and playgrounds. James Co. v. Sheppard, 249 Ark. 81, 458 S.W.2d 752 (1970).

14-269-104. Commission.

  1. Any municipality, at its option, may establish a commission to acquire, construct, reconstruct, extend, equip, improve, and operate any project under this subchapter.
  2. The commission shall have full and complete authority with respect to the project and its operation and with respect to the collection and disposition of revenues derived from the operation of the project.
  3. The commission shall consist of either three (3), six (6), or nine (9) members, as the governing body of the municipality appointing the commission shall determine.
    1. Of the initial members of the commission, one-third (1/3) shall serve for a term of one (1) year, one-third (1/3) shall serve for a term of two (2) years, and one-third (1/3) shall serve for a term of three (3) years.
    2. The term of each replacement member shall be for three (3) years.
  4. Members of the commission may be removed only for cause.
  5. The original members of the commission shall be named by the governing body of the municipality by resolution. Thereafter, each successor member, including a member appointed to fill the unexpired term of an existing member, shall be filled by appointment on the basis of a person selected by the remaining members of the commission and reported to the governing body of the municipality, which governing body must approve the appointment of the person so selected by the remaining members of the commission.
  6. Each member of the commission shall take and file with the clerk or recorder of the municipality an oath of office.
  7. In order to be eligible for membership on the commission, a person need only be a qualified elector at the time of original appointment and need not reside within the municipality.
  8. The members of the commission shall receive no compensation for their services, but they shall employ such agents, servants, and employees and shall compensate them upon such terms as shall be necessary in order to effectively carry out the purposes of this subchapter. In this regard, the commission shall have full and complete authority to do any and every act and to take any and every action necessary to carry out the purposes of this subchapter including, without limitation, the authority to contract and the authority to prescribe rates and charges and to enter into necessary rental and lease agreements; however, only the municipality shall have the authority to issue revenue bonds or, in any way, to pledge, obligate, or create a lien upon the project or any of the revenues derived therefrom.

History. Acts 1965, No. 486, § 13; A.S.A. 1947, § 19-3643.

14-269-105. Bonds — Authority to issue.

  1. Municipalities are authorized to use any available revenues for the accomplishment of the purposes set forth in § 14-269-103, and are authorized to issue revenue bonds and to use the proceeds thereof for the accomplishment of the purposes set forth in § 14-269-103, either alone or together with other available funds and revenues.
  2. The amount of bonds issued shall be sufficient to pay the cost of accomplishing the specified purposes, the cost of issuing the bonds, the amount necessary for a reserve, if desirable, the amount necessary to provide for debt service on the bonds until revenues for the payment thereof are available, and any other costs and expenditures of whatever nature incidental to the accomplishment of the specified purposes.

History. Acts 1965, No. 486, § 2; A.S.A. 1947, § 19-3632.

Cross References. Form of bonds, § 19-9-101.

14-269-106. Bonds — Issuance, sale, and execution.

    1. The issuance of revenue bonds shall be by ordinance of the municipality.
    2. The bonds may be coupon bonds payable to bearer or may be made registrable as to principal only with interest coupons, or may be made registrable as to both principal and interest without interest coupons.
    3. The bonds may be exchanged for bonds of another denomination, which bonds of another denomination may, in turn, be either coupon bonds payable to bearer, coupon bonds registrable as to principal only, or bonds registrable as to both principal and interest without interest coupons.
    4. The bonds may be in such form and denominations; may be made payable at such places within or without the state; may be issued in one (1) or more series; may bear such date or dates; may mature at such time or times, not exceeding forty (40) years from their respective dates; may bear interest at such rate or rates; may be payable in such medium of payment; may be subject to such terms of redemption; and may contain such terms, covenants, and conditions as the ordinance authorizing their issuance may provide including, without limitation, those pertaining to the custody and application of the proceeds of the bonds, the collection and disposition of revenues, the maintenance and investment of various funds and reserves, the nature and extent of the security, the rights, duties, and obligations of the municipality and the trustee for the holders and registered owners of the bonds, and the rights of the holders and registered owners of the bonds.
    5. There may be successive bond issues for the purpose of financing the same project, including land, buildings, or facilities, and there may be successive bond issues for financing the cost of reconstructing, replacing, constructing additions to, extending, improving, and equipping projects, land, buildings, or facilities, already in existence, whether or not originally financed by bonds issued under this subchapter, with each successive issue to be authorized as provided by this subchapter.
    6. Priority between and among issues and successive issues as to security of the pledge of revenues and mortgage liens on the land, buildings, and facilities involved may be controlled by the ordinance authorizing the issuance of bonds under this subchapter.
    7. The bonds shall have all the qualities of negotiable instruments under the laws of the State of Arkansas.
    1. The ordinance may provide for the execution by the municipality of an indenture which defines the rights of the bondholders and provides for the appointment of a trustee for the bondholders.
    2. The indenture may control the priority between successive issues and may contain any other terms, covenants, and conditions that are deemed desirable including, without limitation, those pertaining to the custody and application of the proceeds of the bonds, the collection and disposition of revenues, the maintenance of various funds and reserves, the nature and extent of the security, the rights, duties, and obligations of the municipality and the trustee, and the rights of the holders and registered owners of the bonds.
    3. It shall not be necessary for the municipality to publish any indenture or any lease if the ordinance authorizing an indenture or the ordinance authorizing a lease is published as required by the law governing the publication of ordinances of a municipality, the ordinance advises that a copy of the indenture or a copy of the lease, as the case may be, is on file in the office of the clerk or recorder of a municipality for inspection by any interested person, and the copy of the indenture or the copy of the lease, as the case may be, is actually filed with the clerk or recorder of the municipality.
    1. The bonds may be sold for such price, including, without limitation, sale at a discount, and in such manner as the municipality may determine by ordinance.
    2. The bonds may be sold with the privilege of conversion into an issue bearing another rate or rates of interest, upon such terms that the municipality receives no less and pays no more than it would receive and pay if the bonds were not converted, and the conversion shall be subject to the approval of the governing body of the municipality.
    1. The bonds shall be executed by the mayor and the city clerk or recorder of the municipality, and, in case any of the officers whose signatures appear on the bonds or coupons shall cease to be officers before the delivery of the bonds or coupons, the signatures shall, nevertheless, be valid and sufficient for all purposes.
    2. The coupons attached to the bonds may be executed by the facsimile signature of the mayor of the municipality.

History. Acts 1965, No. 486, § 3; 1970 (Ex. Sess.), No. 57, §§ 1, 2; 1975, No. 225, § 6; 1981, No. 425, § 6; A.S.A. 1947, § 19-3633.

14-269-107. Bonds — Issuance for refunding of obligations.

  1. Revenue bonds may be issued under this subchapter for the purpose of refunding any obligations issued under this subchapter.
  2. The refunding bonds may be combined with bonds issued under the provisions of § 14-269-106 into a single issue.
    1. When bonds are issued under this section for refunding purposes, the bonds may either be sold or delivered in exchange for the outstanding obligations.
    2. If sold, the proceeds may be either applied to the payment of the obligations refunded or deposited in escrow for the retirement thereof.
  3. All bonds issued under this section shall, in all respects, be authorized, issued, and secured in the manner provided for other bonds issued under this subchapter and shall have all the attributes of those bonds.
  4. The ordinance under which the refunding bonds are issued may provide that any of the refunding bonds shall have the same priority of lien on the revenues pledged for their payment as was enjoyed by the obligations refunded thereby.

History. Acts 1965, No. 486, § 5; A.S.A. 1947, § 19-3635.

14-269-108. Bonds — Indebtedness as special obligation — Payment of principal and interest.

  1. The revenue bonds issued under this subchapter shall not be general obligations of the municipality but shall be special obligations. In no event shall the revenue bonds constitute an indebtedness of the municipality within the meaning of any constitutional or statutory limitation.
  2. It shall be plainly stated on the face of each bond that it has been issued under the provisions of this subchapter and that it does not constitute an indebtedness of the municipality within any constitutional or statutory limitation.
  3. The principal of and interest on the revenue bonds and paying agent's fees shall be payable from gross revenues derived from the lands, buildings, or facilities acquired, constructed, reconstructed, extended, or improved, in whole or in part, with the proceeds of the bonds.

History. Acts 1965, No. 486, § 4; A.S.A. 1947, § 19-3634.

14-269-109. Bonds — Mortgage lien.

  1. Subject to the subsequent provisions of this section, there shall exist a statutory mortgage lien upon the land, buildings, and facilities acquired, constructed, reconstructed, extended, equipped, or improved, in whole or in part, with the proceeds of revenue bonds issued under this subchapter, which shall exist in favor of the holders of the bonds and in favor of the holders of the coupons attached to the bonds, and the land, buildings, and facilities shall remain subject to the statutory mortgage lien until payment in full of the principal of, and interest on, the revenue bonds.
  2. Anything in this subchapter to the contrary notwithstanding, the ordinance or indenture referred to in § 14-269-106 may impose a forecloseable mortgage lien upon the land, buildings, and facilities acquired, constructed, reconstructed, extended, equipped, or improved, in whole or in part, with the proceeds of revenue bonds issued under this subchapter, and the nature and extent of the mortgage lien may be controlled by the ordinance or indenture including, without limitation, provisions pertaining to the release of all or part of the land, buildings, and facilities from the mortgage lien and the priority of the mortgage lien in the event of successive bond issues as authorized by § 14-269-106.
  3. Subject to such terms, conditions, and restrictions as may be contained in the ordinance or indenture authorizing or securing the bonds, any holder of bonds issued under the provisions of this subchapter, or of any coupons attached thereto, may, either at law or in equity, enforce the mortgage lien and may, by proper suit, compel the performance of the duties of the officials of the issuing municipality as set forth in this subchapter, and in any ordinance or indenture authorizing or securing the bonds.

History. Acts 1965, No. 486, § 6; A.S.A. 1947, § 19-3636.

14-269-110. Bonds — Default in payment.

  1. In the event of a default in the payment of the principal of, or interest on, any revenue bonds issued under this subchapter, any court having jurisdiction may appoint a receiver to take charge of the land, buildings, or facilities acquired, constructed, reconstructed, extended, equipped, or improved, in whole or in part, with the proceeds of revenue bonds issued under this subchapter, upon which land, buildings, or facilities, or any part thereof, there is a mortgage lien securing the revenue bonds with reference to which there is a default in the payment of principal or interest.
  2. The receiver shall have the power to operate and maintain the land, buildings, or facilities; to charge and collect rates or rents sufficient to provide for the payment of the principal of and interest on the bonds after providing for the payment of all costs of receivership and operating expenses of the land, buildings, or facilities; and to apply the income and revenues derived from the land, buildings, or facilities in conformity with this subchapter and the ordinance or indenture authorizing or securing the bonds.
  3. When the default has been cured, the receivership shall be ended and the properties returned to the municipality.
  4. The relief afforded by this section shall be construed to be in addition and supplemental to the remedies that may be afforded the trustee for the bondholders and the bondholders in the ordinance or indenture authorizing or securing the bonds and shall be so granted and administered as to accord full recognition to priority rights of bondholders as to the pledge of revenues from, and the mortgage lien on, the land, buildings, or facilities as specified in, and fixed by, the ordinance or indenture authorizing or securing successive bond issues.

History. Acts 1965, No. 486, § 7; A.S.A. 1947, § 19-3637.

14-269-111. Bonds — Tax exemption.

Bonds issued under this subchapter shall be exempt from all state, county, and municipal taxes, including income and inheritance taxes.

History. Acts 1965, No. 486, § 8; A.S.A. 1947, § 19-3638.

A.C.R.C. Notes. Language excluding property taxes from the exemption provided by this section was deleted pursuant to Ark. Const. Amend. 57, § 1 and § 26-3-302. Arkansas Const. Amend. 57, § 1 provides that the General Assembly may classify intangible personal property for assessment at lower percentages of value than other property and may exempt one or more classes of intangible personal property from taxation, or may provide for the taxation of intangible personal property on a basis other than ad valorem. Section 26-3-302 exempts all intangible personal property in this state from all ad valorem tax levies of counties, cities, and school districts in the state as of January 1, 1976.

14-269-112. Bonds — Investment of public funds.

  1. Any municipality; any board, commission, or other authority duly established by ordinance of any municipality; the boards of trustees, respectively, of the firemen's relief and pension fund and the policemen's pension and relief fund of any municipality; or the board of trustees of any retirement system created by the General Assembly, may, in its discretion, invest any of its funds not immediately needed for its purposes in revenue bonds issued under the provisions of this subchapter.
  2. Revenue bonds issued under the provisions of this subchapter shall be eligible to secure the deposit of public funds.

History. Acts 1965, No. 486, § 9; A.S.A. 1947, § 19-3639.

Subchapter 2 — Operation and Management of Parks

Effective Dates. Acts 1947, No. 348, § 15: approved Mar. 28, 1947. Emergency clause provided: “Whereas, in certain municipalities there is a need for a recreational park, and whereas, it is to the best interests that said park be operated and controlled in the most economical and feasible manner possible, and whereas, it is to the best interest of citizens of said municipalities that operation of said park be in the most economical and businesslike manner possible, and whereas, the most economical and proper method of operation may be obtained through the passage of this act, an emergency is hereby declared to exist, and this act being necessary for the immediate protection of the public peace, health and safety, this act, therefore, will take effect and be in force from and after its passage.”

Acts 1951, No. 240, § 3: Mar. 6, 1951. Emergency clause provided: “Whereas, in certain municipalities there is need for a recreational park or parks, and it is to the best interests that said parks be operated and controlled in the most economical and feasible manner possible; and whereas, it might be to the best interests of the citizens of said municipalities that there be more than one park and more than one commission in certain cases; and whereas, it is necessary that this condition should be attained as quickly as possible, and this Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is hereby declared to exist, and this Act shall take effect and be in full force from and after its passage and approval.”

14-269-201. Authority for creation of commission in cities of the first and second class.

Any city of the first or second class that may desire to set up a recreational park or parks for the municipality may, by appropriate action of the city council, create a commission or commissions, if desired, for the purpose of operating and managing the park within the municipality.

History. Acts 1947, No. 348, § 1; 1951, No. 240, § 1; A.S.A. 1947, § 19-3606.

14-269-202. Commission — Creation — Members.

  1. Any city of the first or second class desiring to avail itself of the benefits of this subchapter, by a majority vote of the elected and qualified members of the city council, may enact an ordinance creating a recreation commission to be composed of five (5) citizens who are qualified electors of the municipality and, by affirmative vote of three-fourths (¾) of the elected and qualified members of the city council, may repeal the ordinance creating the commission.
  2. The commissioners shall be appointed by the mayor and confirmed by a majority vote of the duly elected and qualified members of the city council and shall hold office for a term of five (5) years; however, the first commissioners to be appointed and confirmed shall serve for terms of one (1), two (2), three (3), four (4), and five (5) years, respectively, to be designated by the mayor and city council. Thereafter, upon the expiration of their respective terms, commissioners appointed by the mayor and approved by a majority vote of the city council shall each be appointed for a term of five (5) years.
  3. In the event of a vacancy occurring on the commission, it shall be filled by appointment by the mayor, subject to the approval of a majority vote of the duly elected and qualified members of the city council.
  4. Each commissioner shall file the oath required by law in the State of Arkansas of public officials.
    1. Any city of the first or second class which has previously created or which may create a city recreation commission, as authorized in this subchapter, is authorized, by ordinance of the governing body of the city, to increase the membership of the commission from five (5) members to seven (7) members. The ordinance enlarging the commission may provide that the two (2) additional members of the commission are not required to be qualified electors of the municipality.
    2. When any city enacts an ordinance increasing the membership of the city recreation commission from five (5) members to seven (7) members, as authorized in this subsection, one (1) of the additional members first appointed shall serve for a term of four (4) years and one (1) shall serve for a term of five (5) years, and their successors shall be appointed for terms of five (5) years.
  5. Upon the appointment of the commissioners as provided in this section, the mayor and city council shall execute such instruments and enact such measures as may be necessary to vest complete charge of the municipally owned recreational park in the commissioners.
  6. Any commissioner appointed by the provisions of this section may be removed for cause upon a two-thirds (2/3) vote of the duly elected and qualified members of the city council.

History. Acts 1947, No. 348, §§ 2-4, 12; 1983, No. 681, §§ 1, 2; A.S.A. 1947, §§ 19-3606.1, 19-3607 — 19-3609, 19-3617.

14-269-203. Commissioners — Powers and duties.

  1. The commissioners appointed pursuant to this subchapter shall have full and complete authority to build, manage, operate, maintain, and keep in a good state of repair any municipal buildings deemed necessary to carry on a recreation park for the municipality including the building of swimming pools, field houses, stadiums, zoos, or other buildings necessary to carry on the recreational park.
  2. The commissioners shall have full and complete charge of the buildings and grounds, including the right to control and permit, or refuse to permit, such public gatherings or other meetings or affairs, as the commissioners shall see fit and deem to be in the best interests of the city.
  3. The commissioners shall have the right to employ or remove managers, janitors, and other employees of whatsoever nature, kind, or character and to fix, regulate, and pay their salaries since it is the intention of this subchapter to vest in the commissioners the authority to build, operate, manage, maintain, and control the municipal recreational park and to have full and complete charge thereof.
  4. The commissioners shall not have the authority or power to sell, mortgage, or encumber the property unless otherwise authorized by the statutes of Arkansas.
  5. The commissioners shall have the exclusive right and power to make purchases of all supplies, apparatus, and other property and things requisite and necessary for the management and operation of the recreational park, including the construction thereof and repairs and additions thereto.
  6. The commissioners shall have the authority to enter into contracts with persons, firms, corporations, or organizations for the use of recreational park buildings or parts thereof.

History. Acts 1947, No. 348, §§ 5-7; A.S.A. 1947, §§ 19-3610 — 19-3612.

Case Notes

Swimming Pools.

Evidence was sufficient to establish that swimming pool operated by city was operated in governmental capacity and not in a proprietary capacity for profit, and city was not liable for drowning of child in such pool. Handley v. City of Hope, 137 F. Supp. 442 (W.D. Ark. 1956), appeal dismissed, Handley v. Hope, 239 F.2d 647 (8th Cir. Ark. 1956).

Where municipal swimming pool was being operated in city's governmental capacity, plaintiff could not avoid governmental immunity in action against city based on drowning of child in pool by alleging an action in contract where the action was clearly in tort. Handley v. City of Hope, 137 F. Supp. 442 (W.D. Ark. 1956), appeal dismissed, Handley v. Hope, 239 F.2d 647 (8th Cir. Ark. 1956).

Where evidence showed that city owned property on which swimming pool was constructed and leased the pool to a boys' club and club operated the pool and received all revenues therefrom, a minor who was injured while diving where depth of pool was allegedly unmarked could not sue the city in tort, since city in owning pool was acting in governmental capacity and was immune from tort liability to user of pool, there being no liability insurance involved. Cabbiness v. City of N. Little Rock, 228 Ark. 356, 307 S.W.2d 529 (1957).

14-269-204. Commissioners — Rules and regulations.

The commissioners shall adopt such rules and regulations as they may deem necessary and expedient for the proper operation and management of the municipal recreational park, and they shall have the authority to alter, change, or amend the rules and regulations at their discretion.

History. Acts 1947, No. 348, § 8; A.S.A. 1947, § 19-3613.

14-269-205. Commissioners — Park fund.

  1. The commissioners appointed pursuant to this subchapter shall have the authority to utilize all revenues derived from the operation of the recreational park in the operation of the recreational park.
    1. All funds derived from the use of the recreational park shall be segregated into a park fund, which fund shall be used exclusively in the operation of the recreational park by the commissioners.
    2. Moneys in the fund shall not be mingled with other funds of the city and shall be handled exclusively by the commissioners.
    1. The commissioners shall each furnish to the city a five thousand dollar ($5,000) surety bond that will serve to insure the city against any misappropriation or mishandling of funds.
    2. The surety on the bonds shall be a reputable surety corporation.
    3. The premium on the bonds shall be paid from moneys in the park fund.
    1. The commissioners shall receive no salary for their services but shall be reimbursed from the park fund for actual expenses incurred in the performance of their duties.
    2. The park fund may also be expended by the commissioners, as they deem best, for the purpose of obtaining attractions to meet on the park.

History. Acts 1947, No. 348, § 10; A.S.A. 1947, § 19-3615.

14-269-206. Commissioners — Reports — Appropriations.

    1. The commissioners shall submit quarterly reports, beginning three (3) months after they take their oath of office and each three (3) months thereafter, reporting in full on the operations, including an accounting of receipts and disbursements, to the mayor and city council, and furnish such other and further reports, data, and information as may be requested by the mayor or city council.
    2. The quarterly report to the mayor and city council, with respect to receipts and disbursements, shall be certified by the commissioners as correct.
    3. The commissioners shall further submit an annual audit of the operations of the recreational park to the mayor and city council.
    1. Upon each quarterly report being made to the mayor and city council by the commissioners, the city council may appropriate funds from the general revenue fund of the city, or from such other funds as the city may have available, to make up any deficits or to provide such funds as may be necessary to carry on the operations of the recreational park.
    2. The city council, at any time other than when the quarterly report is filed, may appropriate such funds as it deems necessary from the general revenue fund, or from such other funds as the city may have available, for the purpose of maintaining and operating the recreational park.

History. Acts 1947, No. 348, §§ 9, 11; A.S.A. 1947, §§ 19-3614, 19-3616.

Subchapter 3 — Operation and Management of Parks and Recreation Programs

Effective Dates. Acts 1949, No. 471, § 16: approved Mar. 29, 1949. Emergency clause provided: “Whereas, in certain municipalities there is a need for a parks and recreation program, and, whereas, it is to the best interests that said program be operated and controlled in the most economical and feasible manner possible, and whereas, it is to the best interests of citizens of said municipalities that operation of said program be in the most businesslike and economical manner possible, and whereas, the most economical and proper method of operation may be obtained through the passage of this Act, an emergency is hereby declared to exist, and this Act being necessary for the immediate protection of the public peace, health, and safety, this Act, therefore, will take effect and be in force from and after its passage.”

Acts 1979, No. 102, § 4: Feb. 11, 1979. Emergency clause provided: “It is hereby found and determined by the General Assembly that the development of an adequate parks and recreation program is an essential function of a number of cities of the first or second class in this State, and that the immediate passage of this Act is necessary to enable the city councils to expand the membership of their parks and recreation commissions, if deemed necessary, to promote efficiency in the operation of said commissions. Therefore, an emergency is hereby declared to exist and this Act, being necessary for the immediate preservation of the public peace, health, and safety, shall be in full force and effect from and after its passage and approval.”

14-269-301. Authority for creation of commission in cities of the first and second class.

Any city of the first or second class that may desire to set up a parks and recreation program for the municipality, by appropriate action of the city council, may create a commission for the purpose of operating and managing the program within the municipality.

History. Acts 1949, No. 471, § 1; A.S.A. 1947, § 19-3618.

14-269-302. Commission — Creation — Members.

      1. A city of the first class or city of the second class desiring to avail itself of the benefits of this subchapter, by a majority vote of the elected and qualified members of the city council, may enact an ordinance creating a parks and recreation commission to be composed of no fewer than five (5) nor more than fifteen (15) citizens who are qualified electors of the municipality or the county in which the municipality is situated and, by affirmative vote of three-fourths (¾) of the elected and qualified members of the city council, may repeal the ordinance creating the commission.
      2. Upon a finding and ordinance that there are no qualified electors living within the city limits, a city of the first class or city of the second class may allow qualified electors of the county in which the municipality is situated to serve as members of the commission.
    1. The city council of any city of the first class or city of the second class may increase the membership of its parks and recreation commission to no more than fifteen (15) members under subsection (e) of this section if the city council determines that an enlarged commission could better serve the city's parks and recreation program.
      1. The commissioners:
        1. Shall be appointed by the mayor;
        2. Shall be confirmed by a majority vote of the duly elected and qualified members of the city council; and
        3. Shall hold office for a term of five (5) years.
        1. However, the first commissioners to be appointed and confirmed shall serve for terms of one (1) year, two (2) years, three (3) years, four (4) years, and five (5) years, respectively, to be designated by the mayor and city council.
        2. Thereafter, upon the expiration of their respective terms, commissioners appointed by the mayor and approved by a majority vote of the city council shall each be appointed for a term of five (5) years.
    1. The commissioners may be reappointed.
    1. In the event of a vacancy occurring on the commission, it shall be filled by appointment by the mayor, subject to the approval of a majority vote of the duly elected and qualified members of the city council.
    2. A vacancy shall be filled for the remainder of the term.
  1. Each commissioner shall file the oath required of public officials in the State of Arkansas.
    1. In the event the city council of any city votes to increase the membership of its parks and recreation commission under subdivision (a)(2) of this section, then the additional members of the commission shall be appointed in the manner provided in subsection (b) of this section and shall serve terms as provided in subdivision (e)(4) of this section.
    2. Their successors shall be appointed for five-year terms.
    3. The members shall qualify in the same manner as provided in subsection (a) of this section for other commission members, and vacancies in either of the additional member positions shall be filled in the manner provided in subsection (c) of this section.
    4. Upon increasing the number of members of the commission, the existing and additional commissioners shall serve initial terms as follows:
      1. For commissions of six (6) members, the initial terms shall be:
        1. One (1) member with a term of one (1) year;
        2. One (1) member with a term of two (2) years;
        3. One (1) member with a term of three (3) years;
        4. One (1) member with a term of four (4) years; and
        5. Two (2) members with terms of five (5) years;
      2. For commissions of seven (7) members, the initial terms shall be:
        1. One (1) member with a term of one (1) year;
        2. One (1) member with a term of two (2) years;
        3. One member with a term of three (3) years;
        4. Two (2) members with terms of four (4) years; and
        5. Two (2) members with terms of five (5) years;
      3. For commissions of eight (8) members, the initial terms shall be:
        1. One (1) member with a term of one (1) year;
        2. One (1) member with a term of two (2) years;
        3. Two (2) members with terms of three (3) years;
        4. Two (2) members with terms of four (4) years; and
        5. Two (2) members with terms of five (5) years;
      4. For commissions of nine (9) members, the initial terms shall be:
        1. One (1) member with a term of (1) year;
        2. Two (2) members with terms of two (2) years;
        3. Two (2) members with terms of three (3) years;
        4. Two (2) members with terms of four (4) years; and
        5. Two (2) members with terms of five (5) years;
      5. For commissions of ten (10) members, the initial terms shall be:
        1. Two (2) members with terms of one (1) year;
        2. Two (2) members with terms of two (2) years;
        3. Two (2) members with terms of three (3) years;
        4. Two (2) members with terms of four (4) years; and
        5. Two (2) members with terms of five (5) years;
      6. For commissions of eleven (11) members, the initial terms shall be:
        1. Two (2) members with terms of one (1) year;
        2. Two (2) members with terms of two (2) years;
        3. Two (2) members with terms of (3) years;
        4. Two (2) members with terms of (4) years; and
        5. Three (3) members with terms of five (5) years;
      7. For commissions of twelve (12) members, the initial terms shall be:
        1. Two (2) members with terms of one (1) year;
        2. Two (2) members with terms of two (2) years;
        3. Two (2) members with terms of three (3) years;
        4. Three (3) members with terms of four (4) years; and
        5. Three (3) members with terms of five (5) years;
      8. For commissions of thirteen (13) members, the initial terms shall be:
        1. Two (2) members with terms of one (1) year;
        2. Two (2) members with terms of two (2) years;
        3. Three (3) members with terms of three (3) years;
        4. Three (3) members with terms of four (4) years; and
        5. Three (3) members with terms of five (5) years;
      9. For commissions of fourteen (14) members, the initial terms shall be:
        1. Two (2) members with terms of (1) year;
        2. Three (3) members with terms of two (2) years;
        3. Three (3) members with terms of three (3) years;
        4. Three (3) members with terms of four (4) years; and
        5. Three (3) members with terms of five (5) years; and
      10. For commissions of fifteen (15) members, the initial terms shall be:
        1. Three (3) members with terms of one (1) year;
        2. Three (3) members with terms of two (2) years;
        3. Three (3) members with terms of three (3) years;
        4. Three (3) members with terms of four (4) years; and
        5. Three (3) members with terms of five (5) years.
  2. Upon the appointment of the commissioners as provided in this section, the mayor and city council shall execute such instruments and enact such measures as may be necessary to vest complete charge of the municipally owned parks and recreation facilities in the commissioners.
  3. Any commissioner appointed by the provisions of this section may be removed for cause upon a two-thirds vote of the elected and qualified members of the city council.

History. Acts 1949, No. 471, §§ 2-4, 13; 1979, No. 102, §§ 1, 2; A.S.A. 1947, §§ 19-3619 — 19-3621, 19-3630; Acts 2003, No. 294, § 1; 2015, No. 261, § 1.

Publisher's Notes. Acts 1979, No. 102, § 3, provided:

“It is the intent of this act to establish procedures whereby the city council of cities of the first or second class may add two (2) additional members to their parks and recreation commissions. Nothing in this act shall be deemed to affect the present membership of a city's parks and recreation commission, or of the terms of office of existing commission members.”

Amendments. The 2003 amendment substituted “first class or city of the second class” for “first or second class” in (a)(1) and (a)(2); substituted “no fewer than five (5) nor more than fifteen (15)” for “five” in (a)(1); substituted “to no more than fifteen (15) members under subsection (e) of this section” for “by two (2) additional members” in (a)(2); made stylistic changes in present (b)(1); added (b)(2) and (c)(2); made a stylistic change in (d); rewrote (e)(1); and added (e)(4).

The 2015 amendment, redesignated (a)(1) as (a)(1)(A); in (a)(1)(A), substituted “A” for “Any” and inserted “or the county in which the municipality is situated”; and added (a)(1)(B).

14-269-303. Commissioners — Powers and duties — Selection of employees.

  1. The commissioners appointed pursuant to this subchapter shall have full and complete authority to build, manage, operate, maintain, and keep in a good state of repair any municipal buildings deemed necessary to carry on a parks and recreation program for the municipality including the building of swimming pools, field houses, stadia, zoos, or other buildings necessary to carry on a parks and recreation program.
  2. The commissioners shall have full and complete charge of the buildings and grounds including the right to control and permit, or refuse to permit, such public gatherings or other meetings or affairs as the commissioners shall see fit and deem to be in the best interests of the city.
    1. The commissioners shall have the exclusive right and power to make purchases of all supplies, apparatus, and other property and things requisite and necessary for the management and operation of the parks and recreation program including the construction of facilities and repairs and additions thereto.
    2. The commissioners shall not have authority or power to sell, mortgage, or encumber the property unless otherwise authorized by the statutes of Arkansas.
  3. The commissioners shall have the authority to enter into contracts with persons, firms, corporations, or organizations for the use of buildings, or parts thereof, of the parks and recreation program.
  4. The employees necessary in the operation of the parks and recreation program, as well as their salaries and classifications, shall be selected and determined as prescribed by law through competitive examination and certification by the civil service commission.

History. Acts 1949, No. 471, §§ 5-8; A.S.A. 1947, §§ 19-3622 — 19-3625.

Case Notes

Swimming Pools.

Evidence was sufficient to establish that swimming pool operated by city was operated in governmental capacity and not in a proprietary capacity for profit, and city was not liable for drowning of child in such pool. Handley v. City of Hope, 137 F. Supp. 442 (W.D. Ark. 1956), appeal dismissed, Handley v. Hope, 239 F.2d 647 (8th Cir. Ark. 1956).

Where municipal swimming pool was being operated in city's governmental capacity, plaintiff could not avoid governmental immunity in action against city based on drowning of child in pool by alleging an action in contract where the action was clearly in tort. Handley v. City of Hope, 137 F. Supp. 442 (W.D. Ark. 1956), appeal dismissed, Handley v. Hope, 239 F.2d 647 (8th Cir. Ark. 1956).

Where evidence showed that city owned property on which swimming pool was constructed and leased the pool to a boys' club and club operated the pool and received all revenues therefrom, a minor who was injured while diving where depth of pool was allegedly unmarked could not sue the city in tort, since city in owning pool was acting in governmental capacity and was immune from tort liability to user of pool, there being no liability insurance involved. Cabbiness v. City of N. Little Rock, 228 Ark. 356, 307 S.W.2d 529 (1957).

14-269-304. Commissioners — Rules and regulations.

The commissioners shall adopt such rules and regulations as they may deem necessary and expedient for the proper operation and management of the municipal parks and recreation program, and they shall have the authority to alter, change, or amend the rules and regulations at their discretion.

History. Acts 1949, No. 471, § 9; A.S.A. 1947, § 19-3626.

14-269-305. Commissioners — Park fund.

  1. The commissioners appointed pursuant to this subchapter shall have the authority to utilize all revenues derived from the operation of the parks and recreation program in the operation of the parks and recreation program.
    1. All funds derived from the use of the parks and recreation program shall be segregated into a park fund, which fund shall be used exclusively in the operation of the parks and recreation program by the commissioners.
    2. Moneys in the fund shall not be mingled with other funds of the city and shall be handled exclusively by the commissioners.
    1. The commissioners shall furnish the city a five thousand dollar ($5,000) surety bond that will serve to insure the city against any misappropriation or mishandling of funds.
    2. The surety on the bond shall be a reputable surety corporation.
    3. The premium on the bond shall be paid from moneys from the park fund.
    1. The commissioners shall receive no salary for their services but shall be reimbursed from the park fund for actual expenses incurred in the performance of their duties.
    2. The park fund may also be expended by the commissioners, as they deem best, for the purpose of obtaining attractions to be staged as a part of the parks and recreation program.

History. Acts 1949, No. 471, § 11; A.S.A. 1947, § 19-3628.

14-269-306. Commissioners — Reports — Appropriations.

    1. The commissioners shall submit quarterly reports, beginning three (3) months after they take their oath of office and each three (3) months thereafter, reporting in full on the operations including an accounting of receipts and disbursements, to the mayor and city council and shall furnish such other and further reports, data, and information as may be requested by the mayor and city council.
    2. The quarterly report to the mayor and city council, with respect to receipts and disbursements, shall be certified by the commissioners as correct.
    3. The commissioners shall further submit an annual audit of the operations of the parks and recreation program to the mayor and city council.
    1. Upon each quarterly report being made to the mayor and city council by the commissioners, the city council may appropriate funds from the general revenue fund of the city or from such other funds as the city may have available to make up any deficits or to provide such funds as may be necessary to carry on the operations of the parks and recreation program.
    2. At any time other than when the quarterly report is filed, the city council may appropriate such funds as it deems necessary from the general revenue fund or from such other funds as the city may have available for the purpose of maintaining and operating the parks and recreation program.

History. Acts 1949, No. 471, §§ 10, 12; A.S.A. 1947, §§ 19-3627, 19-3629.

Case Notes

Cited: Cherokee Village Homeowners Protective Asso. v. Cherokee Village Road & Street Improv. Dist., 248 Ark. 1055, 455 S.W.2d 93 (1970).

Chapter 270 Rural Community Projects

Effective Dates. Acts 1979, No. 370, § 4: July 1, 1979. Emergency clause provided: “It is hereby found and determined by the Seventy-Second General Assembly meeting in Regular Session that the need for community projects in unincorporated rural communities and small incorporated towns is great and that this Act is necessary, effective July 1, 1979, to meet the needs of these communities. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect on July 1, 1979.”

Acts 1983, No. 603, § 4: Mar. 21, 1983. Emergency clause provided: “It is hereby found and determined by the Seventy-Fourth General Assembly that the provisions of Act 736 of 1977, as amended, may have been abused and that the Legislative Joint Audit Committee staff is encountering difficulties in completing audits of such grant awards, therefore it is necessary that this act be enacted as soon as possible in order to obviate abuses of grant funds from appropriations made available from and after July 1, 1983. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Subchapter 1 — General Provisions

14-270-101. Purpose.

  1. The General Assembly recognizes that there are numerous unincorporated rural communities and small incorporated rural cities and towns in this state which do not have adequate fire protection or social, recreational, cultural, or other facilities available for the benefit of their citizens or comparable to the facilities available in larger cities of this state. Many of these rural communities and rural small cities and towns lack the resources to develop and implement programs to enhance their viability.
  2. The General Assembly further recognizes the need to establish a program whereby, through the participation of local citizens and by the use of state incentive funds, unincorporated rural communities and small incorporated rural cities and towns in this state will be provided opportunities for the construction, development, and improvement of fire protection and construction projects benefiting the citizens. The program will provide matching grants to rural communities to alleviate this problem and encourage rural communities to develop programs designed to meet their uniquely rural needs.

History. Acts 1977, No. 736, § 1; 1979, No. 370, § 1; A.S.A. 1947, § 17-1420; Acts 1991, No. 1009, § 1.

14-270-102. Definitions.

As used in this chapter, unless the context otherwise requires:

  1. “Community, city, or town projects” means, but shall not be limited to, parks, playgrounds, community meeting halls, community cultural facilities, picnic grounds, community recreation facilities, firefighting equipment and facilities, and similar projects to be available to the members of the unincorporated community or citizens of the small city or town in the rural areas of the state for their use, benefit, and enjoyment;
  2. “Rural area” or “rural community” means all the territory of the State of Arkansas that is not within the outer boundary of any city or town having a population of twenty thousand (20,000) or more according to the latest federal decennial census or within such a city's or town's neighboring urbanized areas;
  3. “Small city or town” means a city or a town incorporated under the laws of the State of Arkansas with a population of less than three thousand (3,000) persons according to the latest federal decennial census;
  4. “State” shall mean the State of Arkansas;
  5. “Unincorporated community” means an unincorporated community in a rural area of the state;
  6. “Urbanized area” means the areas of dense settlement and suburbanization contiguous to the central city of a metropolitan area;
  7. “Property in kind” means real or personal property.

History. Acts 1977, No. 736, § 1; 1979, No. 370, § 1; A.S.A. 1947, § 17-1420; Acts 1991, No. 1009, § 2; 1995, No. 649, § 1.

Amendments. The 1995 amendment added (7).

14-270-103. Grant of state funds.

  1. From funds provided by the General Assembly therefor, the Chief Fiscal Officer of the State, with the advice of the Arkansas Rural Development Commission, is authorized to make grants to unincorporated communities and small cities or towns in this state, whenever:
    1. Representatives of unincorporated communities or small cities or towns in this state develop a written plan for a community, city, or town project and submit the plan, in the case of an unincorporated community, to the quorum court of the county or, in the case of a small city or town, to the governing body of the city or town, for its approval and adoption;
      1. The members of the community or small city or town presenting the request to the quorum court or the governing body shall have submitted proof that, through donations of either money or property in kind, the citizens of the community, city, or town, have pledged or will make available one-fourth (¼) of the cost of the project and that no tax funds are included in the citizens' support.
      2. The members of the community, or citizens of the city or town, may also provide the county's or city's or town's one-fourth (¼) share in lieu of the county's or city's or town's defraying one-fourth (¼) of the cost of the project; provided, if a small incorporated town has sufficient revenues in its general fund to cover one-half (½) of the project costs, the town shall have the option to utilize said funds as an alternative to the other method set forth in this section;
    2. The quorum court of the county or governing body of the city or town approves and, if the citizens of the community, city, or town do not provide the county's or the city's or town's share, appropriates the funds or provides property in kind to defray one-fourth (¼) of the cost of the project; and
    3. The facts enumerated in subdivisions (a)(1)-(3) of this section are certified to the Chief Fiscal Officer of the State by the county judge of the county or the mayor of the city or town, setting forth the name of the person or persons who will administer the funds if the state grant is approved, outlining the details of the project, and certifying that the project has been determined by the quorum court of the county or governing body of the city or town to be an approved community, city, or town project eligible to receive funds under the provisions of this chapter.
  2. Upon receipt of the certification of the quorum court or governing body of the city or town and upon determination that all matters required by subsection (a) of this section have been complied with, the Chief Fiscal Officer of the State may approve a state grant to be used in connection with the community, city, or town project in an amount of one-half (½) of the estimated project cost; however, in no event shall the total cost of any one (1) project under the provisions of this chapter exceed thirty thousand dollars ($30,000), and the state's share thereof shall not exceed one-half (½), or fifteen thousand dollars ($15,000), of the amount.
    1. Project funds from all sources shall be expended through a fund established on the books of the county, city, or recorder treasurer.
    2. All project expenditures, with the invoices attached, shall be approved by the county judge or mayor and shall remain on file in the office of the county judge or mayor for three (3) years or until audited, whichever is later.
    1. All projects must be completed within twelve (12) months after the date of the grant award.
    2. A final report, on a form provided by the Chief Fiscal Officer of the State, of all funds expended, along with the state's one-half (½) of all unexpended funds, shall be submitted by the county judge or mayor to the Chief Fiscal Officer of the State no more than sixty (60) days following the project's completion or within the one-year period, whichever comes first.

History. Acts 1977, No. 736, § 2; 1979, No. 370, § 2; 1983, No. 603, § 1; 1983, No. 788, § 1; A.S.A. 1947, § 17-1421; Acts 1991, No. 1009, § 3; 1993, No. 946, § 1; 1995, No. 512, § 1; 1995, No. 649, § 2.

Publisher's Notes. Acts 1983, No. 603, § 2, provided:

“The provisions of this act shall be applicable to grant requests for unincorporated rural communities and small incorporated towns approved by the chief fiscal officer of the state payable from appropriations provided by the General Assembly that are available from and after July 1, 1983.”

Amendments. The 1993 amendment added “with the advice of the Arkansas Development Commission” in (a); made minor changes in (a)(2); and substituted “(a)(1)-(3) of this section” for “(1) through (3) of this subsection” in (a)(4).

The 1995 amendment by No. 512 divided former (a)(2) into (a)(2)(A) and (B); and added the proviso in present (a)(2)(B).

The 1995 amendment by No. 649 rewrote (a)(2); and, in (a)(3), substituted “provide” for “pay” and inserted “or provides property in kind.”

14-270-104. Funding upon exhaustion of state funds.

  1. In the event sufficient state funds have not been appropriated to provide the state's matching share of all eligible approved community, city, or town projects certified to the Chief Fiscal Officer of the State by the respective county judges or mayors of this state, the Chief Fiscal Officer of the State, with the advice of the Arkansas Rural Development Commission, shall approve payments for projects in the order in which each project application is filed with his office until all funds available during each fiscal year have been exhausted, shall defer until the next fiscal year the various projects for which adequate funds are not available during the preceding fiscal year, and shall give those projects priority in the order in which filed with the Office of Rural Advocacy of the Arkansas Rural Development Commission for funding from moneys appropriated by the General Assembly for that fiscal year.
    1. However, in the event project applications for the state's matching share of community, city, or town projects in any county are not submitted for the use of the funds available for community, city, or town projects in that county during any fiscal biennium, and application therefor has not been filed with the Office of Rural Advocacy within thirty (30) days prior to the end of the fiscal biennium, the Arkansas Rural Development Commission shall make the funds remaining for projects in that county available for approved community, city, or town projects in other counties which have applied for more project matching funds than were available.
    2. The Arkansas Rural Development Commission shall give priority in the allocation of the unused project funds to approved projects in other counties in the order in which applications were received for the projects.

History. Acts 1977, No. 736, § 2A; 1979, No. 370, § 3; A.S.A. 1947, § 17-1422; Acts 1991, No. 1009, § 4; 1993, No. 946, § 2.

Amendments. The 1993 amendment, in (a), added “with the advice of the Arkansas Rural Development Commission” and substituted “Office of Rural Advocacy of the Arkansas Rural Development Commission” for the third occurrence of “Chief Fiscal Officer of the State”; in (b)(1), substituted “Office of Rural Advocacy” for “Chief Fiscal Officer of the State” preceding “within thirty (30) days” and substituted “Arkansas Rural Development Commission” for “Chief Fiscal Officer of the State” following “fiscal biennium, the”; and, substituted “Arkansas Rural Development Commission” for “Chief Fiscal Officer of the State” in (b)(2).

14-270-105. Audit of funds.

All state and county funds made available for community, city, or town projects under the provisions of this chapter shall be audited by the Division of Legislative Audit in connection with the annual audit of each county or city or town to assure that the funds have been used for the purposes for which they were made available under the provisions of this chapter.

History. Acts 1977, No. 736, § 3; A.S.A. 1947, § 17-1423; Acts 1991, No. 1009, § 5.

Subchapter 2 — Outdoor Recreational Facilities

Effective Dates. Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

14-270-201. Legislative intent.

The General Assembly recognizes outdoor recreation as an important element to the quality of life in Arkansas. Outdoor recreation is interlocked to the emotional and economic well being of the state's citizens. Therefore, it is the desire of the General Assembly to establish a new outdoor grants program that shall assist small communities and rural areas of Arkansas with outdoor recreational facilities.

History. Acts 1991, No. 271, § 1; 1991, No. 306, § 1.

14-270-202. Elements of grants program.

There is hereby established the FUN Parks Grants Program to be administered by the Department of Parks, Heritage, and Tourism. The purpose of the FUN Parks Grants Program is to provide basic outdoor recreation facilities including baseball and softball fields, basketball courts, picnic tables and pavilions, and playground equipment to residents of small Arkansas communities. The goal of this program is to build two hundred (200) new outdoor parks statewide in communities of two thousand five hundred (2,500) or less as established by the 1990 census. Up to fifty (50) new FUN parks may be constructed each year in each of the next four (4) years at a cost not to exceed ten thousand dollars ($10,000) for each FUN park.

History. Acts 1991, No. 271, § 2; 1991, No. 306, § 2; 2019, No. 910, § 5622.

Amendments. The 2019 amendment substituted “Department of Parks, Heritage, and Tourism” for “Arkansas Department of Parks and Tourism” in the first sentence; and substituted “FUN Parks Grants Program” for “FUN Parks Program” in the second sentence.

14-270-203. Authorization.

The Department of Parks, Heritage, and Tourism is herein authorized to promulgate procedures, rules, or guidelines necessary for the administration of the FUN Parks Grants Program.

History. Acts 1991, No. 271, § 3; 1991, No. 306, § 3; 2019, No. 315, § 1040; 2019, No. 910, § 5623.

Amendments. The 2019 amendment by No. 315 substituted “rules, or guidelines” for “rules, guidelines, or regulations”.

The 2019 amendment by No. 910 substituted “Department of Parks, Heritage, and Tourism” for “Arkansas Department of Parks and Tourism”.

Chapter 271 Underground Facilities Damage Prevention

Publisher's Notes. Acts 1987, No. 600, § 15, provided, in part, that no provision of this chapter shall be construed to amend or repeal § 27-67-218 or § 27-67-304.

Acts 1989, No. 370, § 6, provided, in part, that no provision of this act shall be construed to amend or repeal § 27-67-218 or § 27-67-304.

Acts 1991, No. 762, § 1, provided:

“It is the purpose and intent of this Act to amend The Arkansas Underground Facilities Damage Prevention Act, Arkansas Code Annotated 14-271-101 et seq., to comply with regulations promulgated by the United States Department of Transportation governing federal grants-in-aid for state pipeline safety programs. The Department of Transportation adopted regulations mandating that a state's one (1) call notification system meet certain criteria, with respect to underground pipeline facilities, as a condition to a state's eligibility for the aforementioned federal grants-in-aid program. (55 Fed. Reg. 38,688 (1990) (to be codified at 49 C.F.R. Part 198). Accordingly, the legislature hereby finds and determines that this Act is necessary and is in the public interest, to ensure that the State of Arkansas will qualify for federal grants-in-aid relating to state pipeline safety programs.”

Effective Dates. Acts 2007, No. 41, § 6[7]: Jan. 1, 2008.

14-271-101. Title.

This chapter may be cited as the “Arkansas Underground Facilities Damage Prevention Act”.

History. Acts 1987, No. 600, § 1.

14-271-102. Definitions.

As used in this chapter, unless the context otherwise requires:

  1. “Approximate location of underground facilities” means a strip of land at least three feet (3') wide but not wider than the width of the facility plus one and one-half feet (1½') on either side of the facility;
  2. “Damage” includes the substantial weakening of structural or lateral support of underground facilities, the penetration or destruction of any protective coating, housing, or other protective device of underground facilities, the partial or complete severance of an underground facility, and the rendering of any underground facility inaccessible;
  3. “Demolish” or “demolition” means any operation by which a structure or mass of material is wrecked, razed, rendered, moved, or removed by means of any powered tools, powered equipment, exclusive of transportation equipment, or discharge explosives;
  4. “Excavate” or “excavation” means to dig, compress, or remove earth, rock, or other materials in or on the ground by use of mechanized equipment, tools manipulated only by human or animal power, or blasting, including without limitation augering, boring, backfilling, drilling, grading, pile-driving, plowing in, pulling in, trenching, tunneling, and plowing;
  5. “Mechanized equipment” means equipment operated by means of mechanical power, including trenchers, bulldozers, power shovels, augers, backhoes, scrapers, drills, cable and pipe plows, and other equipment used for plowing in or pulling in cable or pipe;
  6. “Member operator” means any operator that is a member of the Arkansas One Call Center;
  7. “One Call Center” means a center operated by an organization which has as one of its purposes to receive notification of planned excavation and demolition in a specified area from excavators and to disseminate such notification of planned excavation or demolition to operators who are members of the center;
  8. “Operator” means any person that owns or operates an underground facility;
  9. “Person” means any individual, any corporation, partnership, association, improvement district, property owners' association, property developer, public agency, or any other entity organized under the laws of any state or any subdivision or instrumentality of a state, and any employee, agent, or legal representative thereof;
  10. “Preengineered project” means a public project wherein the public agency responsible for the project, as part of its engineering and contract procedures, holds a formal meeting prior to the commencement of any construction work on the project in which all persons determined by the public agency to have underground facilities located within the construction area of the project are invited to attend and given an opportunity to verify or inform the public agency of the location of their underground facilities, if any, within the construction area and wherein the location of all known underground facilities are located or noted on the engineering drawing and specifications for the project;
  11. “Public agency” means the state or any board, commission, or agency of the state and any city, town, county, subdivision thereof, or other governmental entity;
  12. “Right-of-way” means any area along which an underground facility is located;
    1. “Underground facility” means any line, system, and appurtenance or facility that is:
      1. Located beneath the ground surface or beneath structures, streets, roads, alleys, sidewalks, or other public rights-of-way; and
      2. Used for producing, storing, conveying, transmitting, or distributing communications, data, electricity, gas, heat, water, steam, chemicals, television or radio transmissions or signals, or sewage.
    2. “Underground facility” does not include:
      1. Privately owned service lines:
        1. Used solely for the purpose of transporting communications, data, electricity, gas, heat, water, steam, chemicals, television or radio transmissions or signals, or sewage for the operation of a residence or business; and
        2. Wholly located on or beneath private property; or
      2. Residential or agricultural underground irrigation systems;
  13. “Underground pipeline facilities” means any underground pipeline facility used to transport natural gas or hazardous liquids. However, this definition does not apply to persons, including operator's master meters, whose primary activity does not include the production, transportation, or marketing of gas or hazardous liquids or to master-metered systems whose underground facilities do not cross property other than their own or are not located under public rights-of-way; and
  14. “Working day” means every day, except Saturday, Sunday, and national and legal state holidays.

History. Acts 1987, No. 600, § 2; 1989, No. 370, §§ 1, 5; 1991, No. 762, §§ 2, 3; 1995, No. 727, §§ 1, 6; 2007, No. 41, §§ 1-3; 2013, No. 1344, § 1.

Amendments. The 1995 amendment inserted present (1), redesignating (1)-(4) as (2)-(5); inserted present (6) and (7); renumbered former (6)-(9) as (8)-(11); and inserted present (12), renumbering former (10)-(12) as (13)-(15); inserted “all master meter … rights-of-way” in present (7); inserted “or” following “any state” in present (8); added “or to master-metered … rights-of-way; and” in present (13); and made stylistic changes.

The 2013 amendment, in (4), inserted “tools manipulated only by human or animal power” and substituted “without limitation” for “but not necessarily limited to.”

14-271-103. Applicability.

  1. The Arkansas Public Service Commission shall, after public comment and hearing as provided below, promulgate rules providing for an Arkansas One Call Center to be established and maintained by all operators subject to the jurisdiction of the commission.
  2. The rules shall at a minimum be consistent with the requirements of any federal law relating to One Call Centers, and otherwise shall provide standards and guidelines for the organization and administration by operators of the Arkansas One Call Center consistent with the terms, purposes, and requirements of this chapter, provided, however, that nothing herein, nor in the rules to be promulgated by the commission, shall be construed to restrict, diminish, or otherwise affect the ratemaking authority and responsibility of the commission with respect to One Call System expenditures by utilities or with respect to any other matter.

History. Acts 1987, No. 600, § 13; 1989, No. 370, § 2; 2019, No. 315, § 1041.

A.C.R.C. Notes. Acts 1989, No. 370, § 2, provided, in part, that: “Within sixty days of the enactment of this act, a proposed form or forms of organization, and policies and procedures of the Arkansas One Call Center shall be submitted by the operators to the Arkansas Public Service Commission for review in such detail as the commission may require. The commission shall promptly cause such proposal to be published for public comment and shall hold a public hearing thereon. The commission shall promulgate final regulations, as required by subsection (a) of this section, within 180 days of the enactment of this act.”

Amendments. The 2019 amendment substituted “rules” for “regulations” in (a); and substituted “The rules” for “The regulations” at the beginning of (b).

14-271-104. Penalties — Civil remedies.

    1. Except as provided in subdivision (a)(2) of this section, any person who violates any provisions of this chapter shall be subject to a civil penalty not to exceed two thousand five hundred dollars ($2,500) for each violation.
    2. Operators of underground pipeline facilities and excavators shall, upon violation of any applicable requirements of 49 C.F.R. Part 198, Subpart C, or 49 U.S.C. § 60114(b), concerning marking facilities; 49 U.S.C. § 60114(d), concerning applicability to excavators; or 49 U.S.C. § 60118(a), concerning general waivers, as in effect on February 2013, unless excepted under § 14-271-109, and damage to an interstate or intrastate natural gas pipeline facility or an interstate or intrastate hazardous liquid pipeline facility, be subject to civil penalties in an amount not to exceed two (2) times the amount of property damage to the interstate or intrastate natural gas pipeline facility or an interstate or intrastate hazardous liquid pipeline facility up to a maximum of two hundred thousand dollars ($200,000) for each violation for each day that the violation persists, except that the maximum civil penalty shall not exceed two million dollars ($2,000,000) for any related series of violations.
    1. Actions to recover the penalties provided for in this section shall be brought by the Attorney General, the county prosecutor, or the city attorney, at the request of any person, in the circuit court in the county in which the cause, or some part thereof, arose or in which the defendant has its principal place of business or resides.
    2. All penalties recovered in any such action shall be paid into the general fund of the state, county, or municipality that prosecutes the action.
  1. The Attorney General, the county prosecutor, or the city attorney shall, at the request of any person, bring an action in a court of competent jurisdiction to enjoin any violation of 49 C.F.R. Part 198, Subpart C, committed by operators of underground pipeline facilities and excavators.
  2. Nothing in this chapter shall be construed to modify or repeal existing laws pertaining to the tort liability of local governments and their employees.
  3. This chapter does not affect any civil remedies for personal injury or property damage, including underground facilities, except as otherwise specifically provided for in this chapter.
  4. This section shall not apply to:
    1. The State Highway Commission;
    2. The Arkansas Department of Transportation;
    3. An officer or employee of the commission or Arkansas Department of Transportation;
    4. A county judge; or
    5. A county road department.

History. Acts 1987, No. 600, § 12; 1991, No. 762, § 4; 1995, No. 727, § 2; 2013, No. 1344, §§ 2, 3; 2017, No. 260, § 12; 2017, No. 707, § 27.

A.C.R.C. Notes. Pursuant to Acts 2017, No. 260, § 13, the amendment of this section by Acts 2017, No. 260, § 12, is superseded by the amendment of this section by Acts 2017, No. 707, § 27.

Acts 2017, No. 260, § 13, provided: “CONSTRUCTION AND LEGISLATIVE INTENT. It is the intent of the General Assembly that:

“(1) The enactment and adoption of this act shall not expressly or impliedly repeal an act passed during the regular session of the Ninety-First General Assembly;

“(2) To the extent that a conflict exists between an act of the regular session of the Ninety-First General Assembly and this act:

“(A) The act of the regular session of the Ninety-First General Assembly shall be treated as a subsequent act passed by the General Assembly for the purpose of:

“(i) Giving the act of the regular session of the Ninety-First General Assembly its full force and effect; and

“(ii) Amending or repealing the appropriate parts of the Arkansas Code of 1987; and

“(B) Section 1-2-107 shall not apply; and

“(3) This act shall make only technical, not substantive, changes to the Arkansas Code of 1987.”

Amendments. The 1995 amendment substituted “two thousand five hundred dollars ($2,500)” for “one thousand dollars ($1,000)” in (a)(1); substituted “twenty-five thousand dollars ($25,000)” for “ten thousand dollars ($10,000)” in (a)(2); inserted “the county prosecutor, or the city attorney” in (b)(1) and (c); inserted a comma following “any person” in (b)(1); added “county, or municipality that prosecutes the action” in (b)(2); and added (f).

The 2013 amendment rewrote (a)(2); and substituted “or employees” for “agents, employees, or contractors” in (f).

The 2017 amendment by No. 260 rewrote (f).

The 2017 amendment by No. 707 rewrote (f).

14-271-105. [Repealed.]

A permit issued pursuant to law authorizing excavation or demolition operation shall not be deemed to relieve a person from the responsibility for complying with the provisions of this chapter.

History. Acts 1987, No. 600, § 5.

14-271-107. Membership in One Call Center.

  1. All operators of underground facilities shall become members of the One Call Center; however, the commission may provide, by rule or by orders, for such exemptions or waivers concerning some or all of the requirements of membership as may appear reasonable and proper, as long as the exemption or waiver is not prohibited by statute or federal law.
  2. Additionally, other persons who own or control underground facilities or similar facilities may, upon application, become members of the One Call Center.
  3. Membership shall be evidenced by participation in, and payment for, the services furnished by the One Call Center.

History. Acts 1987, No. 600, § 8; 1989, No. 370, § 3; 1991, No. 762, § 6.

14-271-108. Notice to One Call Center — Changes — Files.

    1. Each member operator having underground facilities, including those facilities that have been abandoned in place by the member operator but not yet physically removed and that can be identified, shall file a notice with the One Call Center that the member operator has underground facilities.
    2. The notice shall include a list of the geographic areas where facilities are located, providing as much specific information as reasonably possible, the name of the member operator, and the name, title, address, and telephone number of its representative designated to respond to notices of intent to excavate.
  1. Changes to any of the information contained in the notice filed in accordance with subsection (a) of this section shall be filed with the One Call Center within thirty (30) days of the change.
  2. The One Call Center shall file the notice submitted by member operators and shall maintain an index of the notices.
  3. Member operators shall maintain records and drawings of all changes and additions to their underground facilities.

History. Acts 1987, No. 600, § 6; 1995, No. 727, § 4.

Amendments. The 1995 amendment rewrote this section.

14-271-109. Notice to One Call Center — Exceptions.

  1. Compliance with notice requirements of § 14-271-112 is not required for:
    1. The moving of earth that is not on a right-of-way or within an easement of an operator by tools manipulated only by human or animal power;
    2. The moving of earth by an operator that is on a right-of-way or within an easement of the operator by tools only manipulated by human power and exclusively for the purposes of system maintenance and leak detection;
    3. Any agricultural purposes, including any form of cultivation for agricultural purposes, digging for postholes on private property, construction and maintenance of farm ponds, land clearing, or other normal agricultural purposes that are not on a right-of-way of an operator;
    4. The opening of a grave in a cemetery that is not on a right-of-way of an operator; or
    5. Routine road work and general maintenance as performed in the right-of-way by state or county maintenance departments, but excluding any work or maintenance involving any demolition or excavation.
    1. Compliance with notice requirements of § 14-271-112 is not required of persons responsible for repair or restoration of service, or to ameliorate an imminent danger to life, health, property, or public safety.
    2. However, those persons shall give, as soon as practicable, oral notice of the emergency excavation or demolition to the One Call Center and request emergency assistance from the One Call Center in locating and providing immediate protection to its underground facilities.
    3. An imminent danger to life, health, property, or public safety exists whenever there is a substantial likelihood that loss of life, health, or property will result before the procedures under § 14-271-112 can be fully complied with.

History. Acts 1987, No. 600, §§ 3, 10; 1989, No. 370, § 4; 1991, No. 762, § 7; 1995, No. 727, § 5; 2007, No. 41, § 4; 2013, No. 1344, § 4.

Amendments. The 1995 amendment deleted former (a)(5) and (6), redesignating former (a)(7) as (a)(5); added “but excluding any work or maintenance involving change of grade or clearing or widening drainage ditches” to present (a)(5); deleted “for emergency excavation or demolition” following “persons responsible” in (b)(1); substituted “health, property, or public safety” for “health, or property” in (b)(1) and (3); and substituted “§ 14-271-112” for “§§ 14-271-107 and 14-271-112” in (b)(3).

The 2013 amendment inserted “that is not on a right-of-way or within an easement of an operator” in (a)(1); added (a)(2); deleted former (a)(3) and redesignated the remaining subdivisions accordingly; in present (a)(3), inserted “agricultural purposes, including any” and “construction and maintenance of”; added “that is not on a right-of-way of an operator” in (a)(4); and substituted “any demolition or excavation” for “change of grade or clearing or widening drainage ditches” in (a)(5).

14-271-110. Notifying operators of underground facilities — Identification of location.

    1. Within four (4) working hours after receiving notification of intent to excavate or demolish, the One Call Center shall in turn notify all member operators of underground facilities in the affected area of the proposed activity.
      1. Unless otherwise agreed to between the excavators and the operator, within two (2) working days after notification from the One Call Center, the operator shall identify the approximate location of the facilities by field-marking on the surface by paint, dye, stakes, or any other clearly visible marking which designates the horizontal course of the facilities.
      2. If the operator has no facilities in the area, the operator shall so inform the person proposing the activity, either by contacting that person or by leaving such information at the site.
    2. When an underground facility is being located, the operator shall furnish the excavator information which identifies the approximate center line, approximate or estimated depth, when known, and dimensions of the underground facility.
      1. When excavating within the approximate location of an underground facility, the excavator shall uncover the facility using a method approved by the operator.
      2. No power-driven tools or equipment shall be used without the express approval of the operator.
  1. Subject to the provisions of § 14-271-112(b) governing the duration of a locate request, when projects are delayed or are lengthy in time and location, the operator and the excavator shall establish and maintain coordination regarding location, marking, and identification of the facilities until all excavation or demolition is completed.

History. Acts 1987, No. 600, § 9; 1995, No. 727, § 6; 2007, No. 41, § 5.

Amendments. The 1995 amendment inserted “member” in (a)(1); added (a)(2)(B); inserted “the” preceding “operator” in present (a)(2)(A); rewrote (a)(3) and (4); in (b), added “Subject to … a locate request” and inserted “the” preceding “excavator”; substituted “this chapter” for “this section” in (c); and transferred former (c) to § 14-271-102(1).

14-271-111. Color code for marking facility and excavation or demolition locations.

    1. If the approximate location of an underground facility is marked with temporary markers, stakes, or other physical means, the operator shall follow the color coding prescribed as follows:
    2. In addition to the foregoing, all underground facilities installed after January 1, 1996, shall be permanently marked with tracing wires of appropriate durability or in other manner which will enable the operator to trace the specific course of the underground facility.
  1. Unless otherwise agreed by all affected operators, persons engaged in excavation or demolition shall mark the proposed area of work with stakes, flags, posts, or painted or chalked lines that are white in color and are clearly visible.
  2. Any person who moves, removes, alters, conceals, or defaces any markings required under this chapter before the demolition or excavation work is commenced shall be subject to the penalties contained in § 14-271-104.

FACILITY AND TYPE OF PRODUCT SPECIFIC GROUP IDENTIFYING COLOR Electric power distribution and transmission Safety red Municipal electric systems Safety red Gas distribution and transmission High visibility safety yellow Oil distribution and transmission High visibility safety yellow Dangerous materials' product lines High visibility safety yellow Telephone and telegraph systems Safety alert orange Cable television Safety alert orange Police and fire communications Safety alert orange Water systems Safety precaution blue Sewer systems Safety green.

Click to view table.

History. Acts 1987, No. 600, § 9; 1995, No. 727, § 7.

Amendments. The 1995 amendment added (a)(2), (b) and (c); and substituted “Dangerous materials' product line” for “Dangerous materials, product line” in present (a)(1).

14-271-112. Notice of intent to excavate or demolish.

  1. Except as provided in § 14-271-109, no person may engage in excavation or demolition activities without having first notified the One Call Center in accordance with the provisions listed in this section.
    1. Each person responsible for any excavation or demolition operation shall serve written or telephonic notice of intent to excavate or demolish at least two (2), but not more than ten (10), full working days before commencing this activity.
    2. The notice of intent shall be delivered to the One Call Center.
      1. The notice given by this section shall be effective for a period of twenty (20) working days from the date that the notice was given.
      2. If the work to be performed is not completed within this period, or if the location markings have been removed or are no longer visible, the person engaging in the demolition or excavation activity shall reinitiate the notice procedure set forth in this section.
  2. The written or telephonic notice of intent required by subsection (b) of this section shall contain the name of the person notifying the One Call Center, the name, address, and telephone number of the person responsible for the excavation or demolition, the starting date, anticipated duration and type of excavation or demolition operation to be conducted, the specific location of the proposed excavation or demolition, and whether or not explosives are anticipated to be used.
  3. The One Call Center shall, as soon as practicable after receiving such notice, provide persons giving notice of an intention to engage in an excavation activity the names of any member operators of underground facilities to whom the notice will be transmitted.
    1. An adequate record of notifications to the One Call Center shall be maintained by the One Call Center.
    2. A copy of the record shall be furnished to the persons giving notice of intent to excavate or demolish if requested.
    3. The records shall be maintained by the One Call Center for at least three (3) years.
  4. Nothing in this section shall be construed to obligate the One Call Center to transmit a notice of intent to excavate for any operator that is not a member of the One Call Center.

History. Acts 1987, No. 600, § 7; 1991, No. 762, § 8; 1995, No. 727, § 8.

Amendments. The 1995 amendment rewrote (a) and (b); deleted “the operator or” preceding “the One Call Center” in (c); substituted “member” for “participating” in (d); added the subdivision designations in (e); substituted “notifications to the One Call Center” for “the notification” in (e)(1); and added (f).

Case Notes

Damages.

Trial court properly rejected evidence offered by a phone company regarding what it would have cost to rent replacement lines while lines damaged by a contractor, who dug in an area without providing notice to the phone company as required by this section were repaired; evidence was irrelevant because loss of use damages were recoverable in an action for damage to personal property only in cases involving motor vehicles. Southwestern Bell Tel. Co. v. Harris Co., 353 Ark. 487, 109 S.W.3d 637 (2003).

14-271-113. Notice of damage required — Exception.

    1. Except as provided by subsection (b) of this section, a person responsible for an excavation or demolition that results in damage to an underground facility shall:
      1. Immediately upon discovery of the damage, notify the One Call Center of the location and nature of the damage and current work status of the excavation or demolition; and
      2. Allow the operator reasonable time to accomplish necessary repairs before completing the excavation or demolition in the immediate area of the underground facility.
    2. An operator shall respond and examine the damage within two (2) business days of notification and shall complete repairs to the damaged facilities within a reasonable amount of time.
  1. Each person responsible for any excavation or demolition operation that results in damage to an underground facility permitting the escape of any flammable, toxic, or corrosive gas or liquid shall notify the operator and police and fire departments immediately upon discovery of the damage and take any other action reasonably necessary to protect persons and property and to minimize the hazards until arrival of the operator's personnel or police and fire departments.

History. Acts 1987, No. 600, § 11; 1995, No. 727, § 9; 2015, No. 908, § 1.

Amendments. The 1995 amendment, in (b), substituted “operator and police and fire departments” for “operator, police, and fire departments” and deleted the comma following “damage”; and deleted former (c).

The 2015 amendment redesignated former (a) as (a)(1); rewrote (a)(1)(A); inserted “underground” in (a)(1)(B); and added (a)(2).

14-271-114. Operators of underground pipeline facilities.

In addition to the provisions of this chapter, all operators of underground pipeline facilities are required to comply with all applicable federal statutes and regulations pertaining to pipeline safety and damage prevention.

History. Acts 1995, No. 727, § 10.

14-271-115. No responsibility for nonmember facilities.

Neither the One Call Center, nor any entity operating the One Call Center, nor any member of the One Call Center shall be responsible for locating nonmember underground utility facilities, or for advising or otherwise warning of the possibility of the existence of underground utility facilities other than those owned or operated by members of the One Call Center.

History. Acts 1995, No. 727, § 11.

14-271-106. Permittees to comply.

Chapter 272 Rural Fire Departments

Subchapter 1 — Rural Fire Departments Study Committee

A.C.R.C. Notes. Acts 1991, No. 1032, § 4, provided, “The Rural Fire Department Study Commission shall submit its report and recommendations together with any proposed legislation to the Joint Interim Committee on Insurance and Commerce and the Joint Interim Committee on City, County and Local Affairs on or before September 1, 1992.”

Publisher's Notes. Due to the enactment of subchapter 2 by Acts 1999, No. 1507, the existing provisions of this chapter have been designated as subchapter 1.

Effective Dates. Acts 1997, No. 183, § 8: Feb. 17, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 10 of the First Extraordinary Session of 1995 abolished the Joint Interim Committee on Insurance and Commerce and in its place established the House Interim Committee and Senate Interim Committee on Insurance and Commerce; that various sections of the Arkansas Code refer to the Joint Interim Committee on Insurance and Commerce and should be corrected to refer to the House and Senate Interim Committees on Insurance and Commerce; that this act so provides; and that this act should go into effect immediately in order to make the laws compatible as soon as possible. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 1997, No. 250, § 258: Feb. 24, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 1211 of 1995 established the procedure for all state boards and commissions to follow regarding reimbursement of expenses and stipends for board members; that this act amends various sections of the Arkansas Code which are in conflict with the Act 1211 of 1995; and that until this cleanup act becomes effective conflicting laws will exist. Therefore an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governer [sic], it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 1997, No. 385, § 9: Mar. 6, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 10 of the First Extraordinary Session of 1995 abolished the original ten subject matter joint interim committees of the General Assembly and in their place established House interim committees and Senate interim committees; that as a result, various sections of the Arkansas Code that refer to the joint interim committees should now refer to the House and Senate interim committees; that this act so provides; and that this act should go into effect as soon as possible in order to make those sections of the Arkansas Code compatible. Therefore an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 1997, No. 1354, § 51: Apr. 14, 1997. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act affects the method of selection of alternate members of the Legislative Council and Legislative Joint Auditing Committee and that this act is immediately necessary for proper continuity and efficiency in State government. Therefore an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2015 (1st Ex. Sess.), Nos. 7 and 8, § 153: July 1, 2015. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the Arkansas Building Authority, the Arkansas Science and Technology Authority, the Department of Rural Services, and the Division of Land Surveys of the Arkansas Agriculture Department are inefficiently structured; that this inefficient structuring causes an excessive and unnecessary cost to the taxpayers of the this state; and that this act is essential to alleviating that financial burden. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2015.”

Identical Acts 2016 (3rd Ex. Sess.), Nos. 2 and 3, § 129: May 23, 2016. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the membership and duties of certain agencies, task forces, committees, and commissions and repeals other governmental entities; that these revisions and repeals of governmental entities impact the expenses and operations of state government; and that the provisions of this act should become effective as soon as possible to allow for implementation of the new provisions in advance of the upcoming fiscal year. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

14-272-101. [Expired.]

A.C.R.C. Notes. Identical Acts 2016 (3rd Ex. Sess.), Nos. 2 and 3, § 127, provided: “Sections of the Arkansas Code amended by this act that expire on or before September 30, 2017, may be removed from the Arkansas Code by the Arkansas Code Revision Commission after their respective expiration date.”

Publisher's Notes. This section, concerning the creation of the Rural Fire Departments Study Committee, expired by its own terms September 30, 2017. The section was derived from Acts 1991, No. 1032, § 1; 1993, No. 231, § 1; 1995, No. 489, § 1; 1997, No. 183, § 1; 1997, No. 385, § 2; 1997, No. 1264, § 1; 2001, No. 165, § 1; 2003, No. 198, § 1; 2015, No. 1032, § 1; 2015 (1st Ex. Sess.), No. 7, § 132; 2015 (1st Ex. Sess.), No. 8, § 132; 2016 (3rd Ex. Sess.), No. 2, § 28; 2016 (3rd Ex. Sess.), No. 3, § 28.

14-272-102. [Expired.]

A.C.R.C. Notes. Identical Acts 2016 (3rd Ex. Sess.), Nos. 2 and 3, § 127, provided: “Sections of the Arkansas Code amended by this act that expire on or before September 30, 2017, may be removed from the Arkansas Code by the Arkansas Code Revision Commission after their respective expiration date.”

Publisher's Notes. This section, concerning the members of the Rural Fire Departments Study Committee and their compensation, expired by its own terms September 30, 2017. The section was derived from Acts 1991, No. 1032, § 2; 1993, No. 231, § 2; 1997, No. 250, § 90; 1997, No. 1264, § 2; 1997, No. 1354, § 31; 2016 (3rd Ex. Sess.), No. 2, § 29; 2016 (3rd Ex. Sess.), No. 3, § 29.

14-272-103. [Expired.]

A.C.R.C. Notes. Identical Acts 2016 (3rd Ex. Sess.), Nos. 2 and 3, § 127, provided: “Sections of the Arkansas Code amended by this act that expire on or before September 30, 2017, may be removed from the Arkansas Code by the Arkansas Code Revision Commission after their respective expiration date.”

Publisher's Notes. This section, concerning a funding study of rural fire departments, expired by its own terms September 30, 2017. The section was derived from Acts 1991, No. 1032, § 3; 1997, No. 1264, § 3; 2015, No. 1032, § 2; 2016 (3rd Ex. Sess.), No. 2, § 30; 2016 (3rd Ex. Sess.), No. 3, § 30.

14-272-104. [Expired.]

A.C.R.C. Notes. Identical Acts 2016 (3rd Ex. Sess.), Nos. 2 and 3, § 127, provided: “Sections of the Arkansas Code amended by this act that expire on or before September 30, 2017, may be removed from the Arkansas Code by the Arkansas Code Revision Commission after their respective expiration date.”

Publisher's Notes. This section, concerning biennial reports of the Rural Fire Departments Study Committee, expired by its own terms September 30, 2017. The section was derived from Acts 1993, No. 231, § 3; 1997, No. 183, § 2; 1997, No. 385, § 3; 1997, No. 1264, § 4; 2016 (3rd Ex. Sess.), No. 2, § 31; 2016 (3rd Ex. Sess.), No. 3, § 31.

Subchapter 2 — Study of Rural Fire Departments and Their ISO Ratings

Effective Dates. Acts 2003, No. 1473, § 74: July 1, 2003. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act includes technical corrects to Act 923 of 2003 which establishes the classification and compensation levels of state employees covered by the provisions of the Uniform Classification and Compensation Act; that Act 923 of 2003 will become effective on July 1, 2003; and that to avoid confusion this act must also effective on July 1, 2003. Therefore, an emergency is declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2003.”

14-272-201, 14-272-202. [Repealed.]

Publisher's Notes. This subchapter, concerning the study of rural fire departments and their ISO ratings, was repealed by Acts 2003, No. 1473, § 30. The subchapter was derived from the following sources:

14-272-201. Acts 1999, No. 1507, § 1.

14-272-202. Acts 1999, No. 1507, § 2.

Subchapter 3 — Fire Department Services Agreements

A.C.R.C. Notes. Acts 2001, No. 1725, § 1, provided: “Legislative intent.

“(a) The General Assembly of the State of Arkansas does hereby recognize that: (1) Rural fire departments and other firefighting organizations and entities across the State of Arkansas do not possess proper and adequate firefighting equipment necessary to protect the health, safety and welfare of the citizens of the State of Arkansas; and (2) The State of Arkansas has no mechanism pursuant to which rural fire departments and other firefighting organizations and entities can generate reliable reoccurring revenue that can be used to fund the purchase of necessary firefighting equipment; and (3) The absence of necessary firefighting equipment has resulted in the loss of life, the loss of property and the assessment of excessive insurance ratings and premium costs that burden residents of rural portions of the State of Arkansas.

“(b) In remedying the foregoing, it is the intent of the General Assembly to provide a means by which volunteer, not-for-profit and other fire departments can develop a reoccurring revenue source which can be pledged to lenders and third parties as security for the repayment of loan proceeds used by fire departments to acquire fire trucks, equipment and related appurtenances.”

Acts 2001, No. 1725, § 6, provided:

“Provisions supplemental. The provisions of this act supersede all other provisions of the Arkansas Code which are in express contradiction hereof. To the extent that no express contradictions exist, then the powers and authority granted by this act supplement all other powers and authority otherwise granted to fire departments under the laws of the State of Arkansas.”

14-272-301. Definitions.

As used in this subchapter, unless the context clearly expresses otherwise:

  1. “Beneficiaries” means those persons or entities who have executed services agreements and who have paid and remain current in the payment of services availability fees to a fire department or fire departments that are recognized as providing firefighting services to the beneficiaries' property;
  2. “Fire department” means any fire protection district, improvement district, subordinate service district, other governmental entity or volunteer, not-for-profit, rural, or other organization, or entity of any nature that is involved in the provision of firefighting services;
  3. “Firefighting equipment” means all equipment, vehicles, improvements, and other real and personal property of every nature that might be used by a fire department in connection with the supplying of firefighting services, specifically including, without limitation, all fire trucks, lines, hoses, pumps, ladders, fire houses, office facilities, storage facilities, and other improvements of every nature;
  4. “Firefighting services” means the provision of all services of whatever nature which might be utilized in connection with the extinguishing of fires and the preservation of life and real and personal property;
  5. “Lenders” means those parties who extend funds or credit to fire departments for the purpose of acquiring, upgrading, leasing, accessing, or otherwise gaining the use and enjoyment of firefighting equipment, specifically including, without limitation, banks, savings associations, commercial lenders, indenture trustees, other lenders, or other parties of whatever nature who extend credit or financing to others;
  6. “Nonbeneficiaries” means those persons or entities who have not executed a services agreement or who have not paid or are not current in the payment of services availability fees to a fire department or fire departments recognized as being capable of providing firefighting services to the property of the nonbeneficiaries;
  7. “Services agreement” means a written agreement between a fire department and a beneficiary which shall address the following:
    1. That period of time during which the services agreement shall be effective;
    2. Provisions for the renewal of the services agreement for successive terms;
    3. The dollar amount of that services availability fee which the beneficiary shall pay annually to the fire department in consideration for the provision by the fire department to the beneficiary of firefighting services, along with any provisions that the fire department may specify which allow for the installment payment of the annual services availability fee;
    4. The manner in which the fire department might increase the services availability fee during the term of the services agreement;
    5. An explanation of the nature and extent of the firefighting services which are offered by the fire department; and
    6. Such other information as the fire department might specify and determine from time to time; and
  8. “Services availability fee” means the annual fee that is charged by fire departments to beneficiaries in consideration for the provision of firefighting services, with it being understood that the fire department may set varying services availability fees dependent upon the square footage of real property improvements, property type and usage, or other criteria identified by the fire department.

History. Acts 2001, No. 1725, § 2.

Research References

U. Ark. Little Rock L. Rev.

Survey of Legislation, 2001 Arkansas General Assembly, Regulated Industries, 24 U. Ark. Little Rock L. Rev. 595.

14-272-302. Services agreements, authority, pledge, and assignment.

  1. Any fire department may enter into services agreements with its beneficiaries.
    1. Fire departments are authorized and empowered to enter into loans, lease-purchase agreements, and other extensions of credit from lenders and are empowered to pledge and assign services agreements to lenders in order to collateralize and secure repayment of loans, lease-purchase agreements, and other extensions of credit that might be advanced by lenders to fire departments for the purpose of acquiring, improving, accessing, or otherwise gaining the use of fire equipment.
      1. Fire departments may additionally grant to lenders all mortgages, security interests, and other liens to secure and collateralize repayment of credit extended by lenders to fire departments.
      2. Notwithstanding any other applicable statute, rule, or regulation, the pledging and collateral assignment of services agreements, the encumbering of all other fire department assets, and the execution of all other debt-evidencing and debt-securing documents shall occur by means of a resolution which is duly adopted by the governing board or body of the fire department.

History. Acts 2001, No. 1725, § 3.

14-272-303. Firefighting services entitlement.

  1. Beneficiaries shall be entitled to receive all firefighting services specified in the services agreement.
    1. Should a fire department provide firefighting services to a nonbeneficiary, then the nonbeneficiary shall pay to the fire department a sum not to exceed five thousand dollars ($5,000) as consideration for the provision of firefighting services, with its being understood that the exact amount of the sum shall be specified by written resolution of the fire department in the services agreement.
    2. If any nonbeneficiary owing such a debt to a fire department fails to pay the debt in full within thirty (30) days after receipt of a written request for payment delivered by certified mail from the fire department, the fire department may initiate litigation against that nonbeneficiary to collect the amount owed to the fire department.

History. Acts 2001, No. 1725, § 4.

14-272-304. Payment of service availability fees.

  1. A fire department shall adopt written procedures pursuant to which the department's service availability fees shall be paid.
  2. If not paid within thirty (30) days after a due date, then a fire department shall have the right to initiate collection litigation against a delinquent beneficiary and shall have the right to receive a judgment in the amount of the delinquent service availability fee, plus all reasonable costs and fees.
  3. A fire department shall have the right to contract with third parties for the provision of accounting, invoicing, servicing, and related and unrelated services associated with the assessment, collection, and administration of service availability fees.

History. Acts 2001, No. 1725, § 5.

Chapters 273-280 [Reserved.]

[Reserved]

Subtitle 17. Public Health And Welfare Improvement Districts

Chapter 281 General Provisions

[Reserved]

Chapter 282 Ambulance Service Improvement Districts

Preambles. Acts 1991, No. 457 contained a preamble which read:

“Whereas, the present law regarding the establishment of ambulance service districts requiring the district boundaries to be coextensive in area with county or county judicial district boundaries is too restrictive to allow needed flexibility for the various quorum courts of the State to set the areas to be served by the proposed ambulance service district;

“Now therefore….”

Effective Dates. Acts 1975 (Extended Sess., 1976), No. 1221, § 19: Feb. 12, 1976. Emergency clause provided: “It has been found and is declared by the General Assembly of Arkansas that there are inadequate ambulance facilities and services in many rural areas, and that the value of real property in many areas is greatly diminished due to the lack of such facilities and services, and that there is an urgent need to relieve this condition. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health and safety, shall take effect and be in force from the date of its passage and approval.”

Acts 1987, No. 1011, § 19: Apr. 14, 1987. Emergency clause provided: “It is hereby found and determined by the General Assembly that because of the case Ricarte v. State, CR 86-31, a question has arisen over the validity of Act 1221 of the Extended Session of 1976; that this Act is a reenactment of the former law; and that the immediate passage of this Act is necessary to clarify the state of the law on this issue. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1991, No. 922, § 28: July 7, 1991. Emergency clause provided: “It is hereby found and determined by the Seventy-Eighth General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1991 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1991 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1991.”

Acts 2015, No. 346, § 2: Mar. 6, 2015. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that there are millions of acres of privately-owned timberland in this state; that private timberland owners pay a forest fire protection tax to the Arkansas Forestry Commission to assist with the provision of fire services for those timberlands; and that this act is immediately necessary to limit the amount of fees, assessments, and taxes a timberland owner pays for the same services. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

14-282-101. Purpose.

It is the purpose and intent of this chapter to:

  1. Authorize the establishment and prescribe the procedure for the establishment of improvement districts for the purpose of providing ambulance services to residents of the districts;
  2. Prescribe the procedure for assessing the property in the ambulance service improvement district to finance the services; and
  3. Support emergency medical services and ambulance operations that are necessary to protect the health, safety, and welfare of the residents of the ambulance service improvement district.

History. Acts 1975 (Extended Sess. 1976), No. 1221, § 1; A.S.A. 1947, § 20-2001; reen. Acts 1987, No. 1011, § 1; 2013, No. 1172, § 1.

A.C.R.C. Notes. This section was reenacted by Acts 1987, No. 1011, § 1. Acts 1987, No. 834 provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

Amendments. The 2013 amendment added subdivision designations (1) and (2); inserted “ambulance service improvement” in (2); and added (3).

14-282-102. Petition for improvement district.

  1. Upon the petition of a majority in value and area of the owners of real property in any designated area, it shall be the duty of the county court to lay off into an improvement district the territory described in the petition and to name three (3) or five (5) commissioners of the district.
  2. The purpose of the district shall be for the acquiring of appropriate vehicles and equipment and the maintaining and operating of ambulance services for the use and benefit of the property holders within the district, and it is realized that the ambulance services would be a benefit to all the real property located in the district.
  3. The petition for, and the court order creating, the district shall designate the maximum amount that may be expended for vehicles, equipment, personal services, and other expenses of providing ambulance services in the district during any one (1) year.
  4. Any number of identical petitions may be circulated. Identical petitions with identical names may be filed at any time until the county court acts.
      1. An ambulance service district that is composed of an area within a county as established by the quorum court of the county may be created by ordinance of the quorum court. The ordinance shall designate the area to be served. However, in no event shall the area include less than a whole precinct and all precincts must be contiguous. The ordinance shall also set forth the method the ambulance service district shall assess the persons residing therein or the property owners having property located therein.
      2. An assessment of up to five (5) mills may be levied by the quorum court in the ambulance service district area, provided that the assessment is approved by at least a majority of the qualified electors voting on the issue at an election called for that purpose.
      3. The quorum court shall establish the date of the election which may be the same date as the general election, and only the qualifying electors residing within the boundaries of the district shall be entitled to vote at such election. The cost of the election shall be borne by the county.
    1. The ordinance shall further specify that the matter shall be referred to the electors of the affected area not less than sixty (60) days and not more than ninety (90) days after the passage of the ordinance and before any taxes are levied, assessed, or collected.
    2. In the event the referred ordinance is approved, it shall be in full force and effect upon certification of the election results by the county election commission. An ambulance service district created by this procedure shall be exempt from the assessment procedures set out in this chapter. The taxes collected pursuant to the ordinance shall be administered by the county as an enterprise fund, but shall be levied and collected as county taxes.
    3. The provisions of this subsection shall not apply to existing nonprofit volunteer ambulance services that provide ambulance and paramedic services in a general but undefined area of the state and which have been in existence for more than five (5) years.

History. Acts 1975 (Extended Sess. 1976), No. 1221, §§ 2, 3; A.S.A. 1947, §§ 20-2002, 20-2003; reen. Acts 1987, No. 1011, §§ 2, 3; Acts 1989, No. 498, § 1; 1991, No. 457, § 1; 1991, No. 922, § 21; 2013, No. 1172, § 2.

A.C.R.C. Notes. This section was reenacted by Acts 1987, No. 1011, §§ 2, 3. Acts 1987, No. 834 provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

Amendments. The 2013 amendment inserted “or five (5)” in (a).

Case Notes

Taxation.

The intent of the legislature in adopting an alternative means of forming an ambulance service district by the vote of all eligible voters in the district, as prescribed by subsection (e), allows for the imposition of taxes upon both real and personal property. W. Carroll County Ambulance Dist. v. Johnson, 345 Ark. 95, 44 S.W.3d 284 (2001).

14-282-103. Notice of petition.

  1. It shall be the duty of the county clerk to give notice of the filing of the petition describing the territory to be affected and calling upon all persons who wish to be heard upon the question of the establishment of the district to appear before the county court on a day to be fixed in the notice.
  2. The notice shall be published one (1) time a week for two (2) consecutive weeks in some newspaper published and having a bona fide circulation in the county where the lands affected are situated.
  3. This notice may be in the following form:

“Notice is hereby given that a petition has been filed praying for the formation of an improvement district for the purpose of Said petition is on file at the office of the County Clerk of County, where it is open to inspection. All persons desiring to be heard on the question of formation of said district will be heard by the County Court at ..m., on the day of , 19 The following lands are affected: (Here give description of lands affected; the same may be described by using the largest subdivisions possible.) County Clerk”

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History. Acts 1975 (Extended Sess. 1976), No. 1221, § 3; A.S.A. 1947, § 20-2003; reen. Acts 1987, No. 1011, § 3.

A.C.R.C. Notes. This section was reenacted by Acts 1987, No. 1011, § 3. Acts 1987, No. 834 provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

Cross References. Notice on formation of improvement districts, § 14-86-301 et seq.

14-282-104. Hearing and appeal — Appointment of board of commissioners — Purpose of petition.

  1. On the day named in the notice, it shall be the duty of the county court to meet and to hear the petition and to determine whether those signing the petition constitute the majority in value and area.
    1. If the county court determines that a majority in value and area have petitioned for the establishment of the district, it shall enter its judgment laying off the district as defined in the petition and appointing the commissioners who are resident property holders in the district, all of whom shall be citizens of integrity and good business ability.
    2. If it finds that a majority has not signed the petition, it shall enter its order denying it.
    1. The commissioners shall serve without compensation and shall be appointed to serve for terms of one (1), two (2), and three (3) years, respectively, and for five-member commissions, terms of one (1), two (2), three (3), four (4), and five (5) years.
    2. The length of the term of each commissioner shall be stated in the order of the county court making the appointment.
    3. As the terms of the commissioners expire, the county court shall appoint successors to hold office for a term of three (3) years.
    4. The county court may reappoint a commissioner whose term is expiring.
    5. In case of vacancy on the board of commissioners after the commissioners have organized, the county court shall appoint some resident property holder as his or her successor, who shall qualify in like manner and within a like time.
    6. The commissioners shall serve until their successors are appointed and qualified.
  2. Any petitioner or any opponents of the petition may appeal from the judgment of the county court creating or refusing to create the district, but the appeal must be taken and perfected within thirty (30) days. If no appeal is taken within that time, the judgment creating the district shall be final and conclusive upon all persons.
  3. The commissioners are authorized to acquire such vehicles, equipment, and other facilities and to employ such personnel as they deem necessary to provide adequate ambulance services to the residents of the district.
  4. The purpose for which the district is to be formed shall be stated in the petition, and the judgment establishing the district shall give it a name which shall be descriptive of the purpose. The district shall also receive a number to prevent its being confused with other districts for similar purposes.

History. Acts 1975 (Extended Sess. 1976), No. 1221, §§ 2-4; A.S.A. 1947, §§ 20-2002 — 20-2004; reen. Acts 1987, No. 1011, §§ 2-4; 2013, No. 1172, § 3.

A.C.R.C. Notes. This section was reenacted by Acts 1987, No. 1011, §§ 2-4. Acts 1987, No. 834 provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

Amendments. The 2013 amendment added “and for five-member commissions, terms of one (1), two (2), three (3), four (4), and five (5) years” to the end of (c)(1).

14-282-105. Board of commissioners — Organization.

  1. Within thirty (30) days after their appointment, the commissioners shall take and file their oaths of office with the county clerk, in which they shall swear to support the Constitution of the United States and the Constitution of the State of Arkansas, to faithfully discharge their duties as commissioners and that they will not be interested, directly or indirectly, in any contract let by the board. Any commissioner failing to file the oath within the period shall be deemed to have declined the office, and the county court shall appoint some resident property holder as his successor who shall qualify in like manner within a like time.
  2. The board shall organize by electing one (1) of its members chairman, and it shall select a secretary.
  3. The board may also employ such personnel as it deems best and fix their compensation.
  4. Each improvement district shall be a body corporate, with power to sue and be sued, and it shall have a corporate seal.
  5. The board shall also select some solvent bank or trust company as the depository of its funds, exacting of the depository a bond in an amount equal to the amount of money likely to come into its hands.

History. Acts 1975 (Extended Sess. 1976), No. 1221, § 4; A.S.A. 1947, § 20-2004; reen. Acts 1987, No. 1011, § 4.

A.C.R.C. Notes. This section was reenacted by Acts 1987, No. 1011, § 4. Acts 1987, No. 834 provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

14-282-106. Board of commissioners — Liability.

No member of the board of improvement shall be liable for any damages unless it shall be made to appear that he acted with a corrupt and malicious intent.

History. Acts 1975 (Extended Sess. 1976), No. 1221, § 13; A.S.A. 1947, § 20-2013; reen. Acts 1987, No. 1011, § 13.

A.C.R.C. Notes. This section was reenacted by Acts 1987, No. 1011, § 13. Acts 1987, No. 834 provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

14-282-107. Formation of plans — Assessment generally.

  1. Upon the qualification of the commissioners, they shall form plans for the providing of ambulance improvements they intend to make and the property and equipment they intend to purchase.
  2. They shall thereupon appoint three (3) assessors to assess the annual benefits which will accrue to the real property within the district from the providing of ambulance services and shall fix their compensation. The assessors shall take an oath that they will well and truly assess all annual benefits that will accrue to the landowners of the improvement district by the providing of ambulance services.
  3. The assessors shall thereupon proceed to assess the annual benefits to the lands within the improvement district. They shall inscribe in a book each tract of land and shall extend opposite each tract of land the amount of annual benefits that will accrue each year to the land by reason of the services.
  4. In case of any reassessment, the reassessment shall be advertised and equalized in the same manner as provided in this section for making the original assessment. The owners of all property whose assessment has been raised shall have the right to be heard and to appeal from the decision of the assessors, as in the original assessment.
  5. The assessors shall place opposite each tract the name of the supposed owner, as shown by the last county assessment, but a mistake in the name shall not void the assessment, and the assessors shall correct errors which occur in the county assessment list.
  6. The commissioners shall have the authority to fill any vacancy in the position of assessor and the assessors shall hold their office at the pleasure of the board.

History. Acts 1975 (Extended Sess. 1976), No. 1221, § 5; A.S.A. 1947, § 20-2005; reen. Acts 1987, No. 1011, § 5.

A.C.R.C. Notes. This section was reenacted by Acts 1987, No. 1011, § 5. Acts 1987, No. 834 provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

14-282-108. Assessment — Notice and hearing of assessment.

  1. The assessment shall be filed with the county clerk of the county, and the secretary of the board shall thereupon give notice of its filing by publication one (1) time a week for two (2) weeks in a newspaper published and having a bona fide circulation in the county. This notice may be in the following form:
  2. On the day named by the notice, it shall be the duty of the assessors to meet at the place named as a board of assessors and to hear all complaints against the assessment and to equalize and adjust the assessment. Their determination shall be final unless suit is brought in the chancery court within thirty (30) days to review it. If the board is unable to hear all complaints between the hours designated, they shall adjourn over from day to day until all parties have been heard.

“Notice is hereby given that the assessment of annual benefits of District Number has been filed in the office of the County Clerk of County, where it is open for inspection. All persons wishing to be heard on said assessment will be heard by the assessors of said district in the office of the County Clerk between the hours of 1 p.m. and 4 p.m. , at , on the day of 19 ”

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History. Acts 1975 (Extended Sess. 1976), No. 1221, § 6; A.S.A. 1947, § 20-2006; reen. Acts 1987, No. 1011, § 6.

A.C.R.C. Notes. This section was reenacted by Acts 1987, No. 1011, § 6. Acts 1987, No. 834 provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

14-282-109. Assessment — Annual reassessment.

  1. The commissioners shall one (1) time a year order the assessors to reassess the annual benefits of the district, provided there have been improvements made or improvements destroyed or removed from one (1) or more tracts of land in the district, making it necessary to have the annual benefits revised.
  2. Whereupon, it shall be the duty of the assessors to reassess the benefits of the district, and the annual benefits assessed may be raised or lowered as conditions of the property change.
  3. However, the annual benefits extended against any piece of property shall not be increased from the annual benefits originally extended unless improvements are made to the land that will be benefited by the ambulance services provided by the improvement district.

History. Acts 1975 (Extended Sess. 1976), No. 1221, § 7; A.S.A. 1947, § 20-2007; reen. Acts 1987, No. 1011, § 7.

A.C.R.C. Notes. This section was reenacted by Acts 1987, No. 1011, § 7. Acts 1987, No. 834 provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

14-282-110. Assessment — Entry upon board records — Lien.

  1. The board of commissioners of the improvement district shall at the time that the annual benefit assessment is equalized, or at any time thereafter, enter upon its records an order which shall have all the force of a judgment, providing that there shall be assessed upon the real property of the district and collected annually, the annual benefit assessment set opposite each tract of land described. The annual benefit is to be paid by the owner of the real property in the improvement district, payable as provided in the order.
  2. The uncollected annual benefit assessment as extended shall be a lien upon the real property in the district against which it is extended from the time the assessment is levied. This lien shall be entitled to preference over all demands, executions, encumbrances, or liens whensoever created and shall continue until the assessment, with any penalty and costs that may accrue thereon, shall have been paid.
  3. Notice of the amount due shall be given to each landowner, if he fails to pay his assessment on or before the third Monday in April, at his last known address by mail.
    1. The remedy against the annual benefit assessment shall be by suit in chancery, and the suits must be brought within thirty (30) days from the time that the notice is mailed.
    2. On the appeal, the presumption shall be in favor of the legality of the annual benefit assessment.

History. Acts 1975 (Extended Sess. 1976), No. 1221, § 8; A.S.A. 1947, § 20-2008; reen. Acts 1987, No. 1011, § 8.

A.C.R.C. Notes. This section was reenacted by Acts 1987, No. 1011, § 8. Acts 1987, No. 834 provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

14-282-111. Assessment — Filing and collection.

  1. The original assessment record or any reassessment record shall be filed with the county clerk, whose duty it shall be to extend the annual benefit assessment annually upon the tax books of the county until the improvement district is dissolved. It shall then be the duty of the collector to collect each year the annual benefit assessment extended upon the book along with the other taxes, and the taxes shall be paid by the collector over to the depository of the improvement district at the same time that he pays over the county funds.
    1. If there is any change in the annual benefits assessed, a certified copy of the revised assessment shall be filed with the county clerk who shall extend the revised assessment annually upon the tax books until a new assessment is made, which shall be extended upon the tax books in like manner. The power to reassess and extend the assessment upon the tax books shall be a continuing power as long as the district continues to exist. It shall be the duty of the county collector to collect the taxes so extended.
    2. In lieu of filing the reassessment, the assessors may make the changes in the assessments in red ink on the assessment already on file, or the assessment record may contain many columns at the head of which the year shall be designated and, in the column the new annual benefits may be shown in red ink which will indicate any increase or decrease in the original annual benefits extended. When the change is made, a red ink line shall be drawn through the figures showing the original annual benefits extended.

History. Acts 1975 (Extended Sess. 1976), No. 1221, § 9; A.S.A. 1947, § 20-2009; reen. Acts 1987, No. 1011, § 9.

A.C.R.C. Notes. This section was reenacted by Acts 1987, No. 1011, § 9. Acts 1987, No. 834 provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

14-282-112. Assessment — Time for payment — Failure to pay.

  1. All annual benefits extended and levied under the terms of this chapter shall be payable between the third Monday in February and the third Monday in April of each year.
    1. If any annual benefit assessments levied by the board pursuant to this chapter are not paid at maturity, the collector shall not embrace the assessments in the taxes for which he shall sell the lands, but he shall report the delinquencies to the board of commissioners of the improvement district, who shall add to the amount of the annual benefit assessment a penalty of ten percent (10%).
    2. The board of commissioners shall enforce the collection by chancery proceedings in the chancery court of the county in the manner provided by §§ 14-121-426 — 14-121-432.
    3. The owner of property sold for taxes thereunder shall have the right to redeem it at any time within two (2) years from the time when his lands have been stricken off by the commissioner making the sale.

History. Acts 1975 (Extended Sess. 1976), No. 1221, § 10; A.S.A. 1947, § 20-2010; reen. Acts 1987, No. 1011, § 10.

A.C.R.C. Notes. This section was reenacted by Acts 1987, No. 1011, § 10. Acts 1987, No. 834 provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

14-282-113. Payments by district — Public proceedings and transactions — Filing of report.

  1. The depository shall pay out no money except upon the order of the board and upon a voucher check signed by at least two (2) of the commissioners. Every voucher check shall state upon its face to whom payable, the amount, and the purpose for which it is used. All voucher checks shall be dated and shall be numbered consecutively in a record to be kept by the board of the number and amount of each.
  2. All proceedings and transactions of the board shall be a matter of public record and shall be open to the inspection of the public.
  3. The board of commissioners shall file with the county clerk in January of each year a certified itemized report showing all moneys received, the date of receipt, the source from which received, all moneys paid out, date paid, to whom paid, and for what purpose during the preceding year, together with an itemized list of all delinquent taxes showing owner, description of property, years for which the tax is delinquent, and amount of total delinquency.

History. Acts 1975 (Extended Sess. 1976), No. 1221, § 11; A.S.A. 1947, § 20-2011; reen. Acts 1987, No. 1011, § 11.

A.C.R.C. Notes. This section was reenacted by Acts 1987, No. 1011, § 11. Acts 1987, No. 834 provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

14-282-114. Issuance of negotiable notes.

  1. In order to acquire equipment and to do the work, the board may issue the negotiable notes of the improvement district signed by the members of the board and bearing a rate of interest not exceeding six percent (6%) per annum and may pledge and mortgage a portion of future annual benefit assessments as collected for the payment thereof.
  2. Any petitions for the creation of a district and the court order creating a district, shall limit the total amount of notes that may be outstanding at any one (1) time to twenty thousand dollars ($20,000).
  3. The improvement district shall have no authority to issue bonds.

History. Acts 1975 (Extended Sess. 1976), No. 1221, § 12; A.S.A. 1947, § 20-2012; reen. Acts 1987, No. 1011, § 12.

A.C.R.C. Notes. This section was reenacted by Acts 1987, No. 1011, § 12. Acts 1987, No. 834 provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

14-282-115. Dissolution of district.

  1. The improvement district shall continue to exist for the purpose of operating and maintaining ambulance services until such time as the owners of a two-thirds (2/3) majority in value of the real property within the district petition the county court for dissolution of the improvement district.
  2. Publication of the petition for dissolution, as provided for in creating the improvement district, shall be made. If the county court finds that a two-thirds (2/3) majority in value of the real property in the district have petitioned for the dissolving of the district, the district shall be dissolved.
  3. Parties for or against the dissolution shall have the same right of appeal as in the creation of the district.

History. Acts 1975 (Extended Sess. 1976), No. 1221, § 14; A.S.A. 1947, § 20-2014; reen. Acts 1987, No. 1011, § 14.

A.C.R.C. Notes. This section was reenacted by Acts 1987, No. 1011, § 14. Acts 1987, No. 834 provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

14-282-116. Advancement on docket — Appeals.

  1. All cases involving the validity of the districts or the annual benefit assessments and all suits to foreclose the lien of annual benefit assessments shall be deemed matters of public interest, and shall be advanced and disposed of at the earliest possible moment.
  2. All appeals therefrom must be taken and perfected within thirty (30) days.

History. Acts 1975 (Extended Sess. 1976), No. 1221, § 15; A.S.A. 1947, § 20-2015; reen. Acts 1987, No. 1011, § 15.

A.C.R.C. Notes. This section was reenacted by Acts 1987, No. 1011, § 15. Acts 1987, No. 834 provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

14-282-117. Fees of county collector and county clerk.

The collector of taxes in any county, in collecting annual benefit assessments in any district created under this chapter, shall deduct one percent (1%) of the annual benefit assessments or taxes so collected and retain one-half of the one percent (½ of 1%) as the fee of the collector for collecting the assessments or taxes and pay over the remaining one-half (½) of the one percent (1%) of the assessments or taxes collected to the county clerk of the county as the fee of the county clerk for extending on the assessment records of the county the annual benefit assessments or taxes.

History. Acts 1975 (Extended Sess. 1976), No. 1221, § 16; A.S.A. 1947, § 20-2016; reen. Acts 1987, No. 1011, § 16.

A.C.R.C. Notes. This section was reenacted by Acts 1987, No. 1011, § 16. Acts 1987, No. 834 provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

Chapter 283 Mosquito Abatement Districts

Effective Dates. Acts 1979, No. 530, § 20: Mar. 22, 1979. Emergency clause provided: “It is hereby found and determined by the General Assembly that there is urgent need for legislation to grant authority to establish mosquito abatement districts in certain areas of the State and to provide a procedure for financing the activities of such districts; that this Act is designed to grant such authority and to prescribe the procedure therefor and to authorize such districts to issue bonds to fund the activities of the district; and that this Act should be given effect immediately to enable the electors in various areas to immediately take appropriate steps to establish such districts. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 2009, No. 1480, § 117: Apr. 10, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act makes various revisions to Arkansas election laws that are designed to improve the administration of elections and special elections and that these revisions should be implemented as soon as possible so that the citizens of this state may benefit from improved election procedures. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

14-283-101. Petition for special election.

  1. When petitions are filed with the county court of any county containing the signatures of ten percent (10%) or more of the qualified electors of all or any defined part of any county or all or any defined part of any city, as determined by the number of votes cast by the qualified electors of the county, city, or designated portion thereof, for all candidates for Governor at the last preceding general election, requesting the establishment of a mosquito abatement district in the county or a designated portion of the county or in the city or designated portion of the city and requesting that assessed benefits be made on the property located in the district to finance the operation of the district, the county court shall call a special election in accordance with § 7-11-201 et seq. in the county, city, or designated area of the city to determine whether a mosquito abatement district shall be established for the area.
  2. Petitions filed pursuant to subsection (a) of this section shall specifically define the area proposed to be included in a mosquito abatement district and shall specify the maximum assessed benefits or taxes which may be levied against property within the district for the support of the district. In no event shall the assessed benefits in any district exceed an amount equal to one percent (1%) of the assessed valuation of real property in the district.
  3. The quorum court of the county may on its own motion enact an ordinance directing the county court to call a special election in accordance with § 7-11-201 et seq. in the county, city, or designated area of the city to determine whether a mosquito abatement district shall be established for the area.

History. Acts 1979, No. 530, §§ 1, 2; A.S.A. 1947, §§ 82-1201, 82-1202; Acts 1989, No. 661, § 1; 2007, No. 1049, § 73; 2009, No. 1480, § 92.

Amendments. The 2009 amendment substituted “§ 7-11-201 et seq.” for “§ 7-5-103(b)” in (a) and (c).

14-283-102. Procedures for special elections.

  1. The special election called by the county court to submit the question of the establishment and financing of a mosquito abatement district to the electors of the proposed district shall be held in accordance with § 7-11-201 et seq. within ninety (90) days after the proclamation calling the election.
  2. At the election, the question of establishing and financing the district shall be placed on the ballot in substantially the following form:

“FOR the establishment of a mosquito abatement district in (county), (city), (designated area) and the establishment of assessed benefits on real property in the district in an amount not to exceed ten percent (10%) of the assessed valuation of real property in the district, to finance the district AGAINST the establishment of a mosquito abatement district in (county), (city), (designated area) and the establishment of assessed benefits on real property in the district in an amount not to exceed ten percent (10%) of the assessed valuation of real property in the district to finance the district

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History. Acts 1979, No. 530, § 3; A.S.A. 1947, § 82-1203; Acts 2005, No. 2145, § 52; 2007, No. 1049, § 74; 2009, No. 1480, § 93.

Amendments. The 2005 amendment redesignated former (a) as present (a)(1); and added (a)(2).

The 2009 amendment substituted “§ 7-11-201 et seq.” for “§ 7-5-103(b)” in (a).

14-283-103. Board of commissioners — Appointment.

  1. If at such election a majority of the qualified electors voting on the question vote “FOR” the establishment of the proposed mosquito abatement district and the levy of assessed benefits to support the district, the county court shall enter an order establishing the district as described in the petitions and shall appoint five (5) qualified electors of the district as a board of commissioners for the district. Two (2) members of the commission shall be appointed for terms of two (2) years and three (3) members shall be appointed for terms of three (3) years.
  2. All successor members shall be appointed by the county court for terms of three (3) years.
  3. Vacancies occurring on the board because of resignation or otherwise shall be filled by the county court for the unexpired term.
  4. The members of the board shall serve without compensation, but shall be entitled to actual expenses incurred in attending meetings in an amount not to exceed fifty dollars ($50.00) per month for each member of the board.

History. Acts 1979, No. 530, § 4; A.S.A. 1947, § 82-1204.

14-283-104. Board of commissioners — Power and authority.

The board of commissioners of any district created pursuant to this chapter shall have the power and authority to:

  1. Execute contracts and other instruments for and in behalf of the district;
  2. Cooperate with any other mosquito abatement district or any political subdivision or agency of this state or the United States in carrying out the purposes of the district;
  3. Establish rules and regulations for the transaction of the district's business and for carrying out the purposes of the district;
  4. Make assessments of benefits against real property in the district and provide for the collection of the assessments and issue bonds as provided in this chapter to finance the district and its purposes; and
  5. Do any and all other actions necessary or desirable to enable the board to carry out its responsibilities and to accomplish the purposes of the district.

History. Acts 1979, No. 530, § 7; A.S.A. 1947, § 82-1207.

14-283-105. Board of commissioners — Proceedings — Offices.

    1. The board shall annually choose from among its members a chairman and a secretary-treasurer.
    2. The chairman and secretary-treasurer shall furnish bond conditioned upon faithful performance of their duties in the amount of five thousand dollars ($5,000) each. The cost of securing and maintaining the bonds shall be paid from funds of the district.
    1. The board shall employ a director who shall have such training, experience, and qualifications as may be prescribed by the State Board of Health. The board may employ such other employees as it deems necessary to carry out the purposes of the district.
    2. Employees of the board shall have such responsibilities and receive such compensation as may be prescribed by the board.
  1. The county in which any district is located shall cooperate with and assist the board by providing suitable office space and meeting facilities for the board and its staff.
  2. The board shall meet at least quarterly and at such other times as it may deem necessary to properly carry out its responsibilities.
    1. Meetings shall be called by the chairman or a majority of the members of the board.
    2. Three (3) members of the board shall constitute a quorum and any substantive action of the board shall require an affirmative vote of at least three (3) members of the board.
  3. The Director of the Department of Health shall be an ex officio member of the board and shall serve without compensation. He or his representative shall cooperate with and assist the board by furnishing the board with such surveys, maps, information, and advice as may be helpful to the board in carrying out its responsibilities and to assist in such other manner as may be reasonably requested by the board.

History. Acts 1979, No. 530, §§ 5, 6; A.S.A. 1947, §§ 82-1205, 82-1206.

14-283-106. Preparation of plans — Assessors and assessments generally.

  1. As soon as is practical after its establishment, the board shall prepare plans for providing mosquito abatement services and for acquiring the property and equipment necessary to carry out the purposes of the district.
  2. The county assessors shall assess the annual benefits which will accrue to the real property within the district from the providing of mosquito abatement services.
  3. The original assessment of benefits and any reassessment shall be advertised and equalized in the same manner as provided in this chapter, and owners of all property whose assessment has been raised shall have the right to be heard and to appeal from the decision of the assessor, as provided in this chapter.
  4. The assessor shall place opposite each tract the name of the supposed owner, as shown by the last county assessment, but a mistake in the name shall not void the assessment, and the assessor shall correct errors which occur in the county assessment list.
  5. The assessments levied under this chapter shall be collected by the county collector in the same manner as property taxes.

History. Acts 1979, No. 530, § 8; A.S.A. 1947, § 82-1208; Acts 1989, No. 661, § 2.

14-283-107. Assessment — Notice and hearing.

  1. The assessment shall be filed with the county clerk of the county, and the secretary of the board shall thereupon give notice of its filing by publication one (1) time a week for two (2) weeks in a newspaper published and having a bona fide circulation in the county. This notice may be in the following form:
  2. On the day named by the notice, it shall be the duty of the assessors to meet, at the place named, as a board of assessors, to hear all complaints against the assessment, and to equalize and adjust the assessments. Their determination shall be final unless suit is brought in the chancery court within thirty (30) days to review it. If the board is unable to hear all complaints between the hours designated, they shall adjourn over from day to day until all parties have been heard.

“Notice is hereby given that the assessment of annual benefits of District Number has been filed in the office of the County Clerk of County, where it is open for inspection. All persons wishing to be heard on said assessment will be heard by the assessors of said district in the office of the county clerk between the hours of 1 p.m. and 4 p.m. , at , on the day of , 19 ”

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History. Acts 1979, No. 530, § 9; A.S.A. 1947, § 82-1209.

14-283-108. Assessments — Annual reassessments.

  1. The commissioners shall one (1) time a year order the assessors to reassess the annual benefits of the district, provided there have been improvements made or improvements destroyed or removed from one (1) or more tracts of land in the district, making it necessary to have the annual benefits revised.
    1. Whereupon, it shall be the duty of the assessors to reassess the benefits of the district, and the annual benefits assessed may be raised or lowered as conditions of the property change.
    2. However, the annual benefits extended against any piece of property shall not be increased from the annual benefits originally extended unless improvements are made to the land that will be benefited by the mosquito abatement services provided by the district.

History. Acts 1979, No. 530, § 10; A.S.A. 1947, § 82-1210.

14-283-109. Assessment — Filing and collection.

  1. The original assessment record or any reassessment record shall be filed with the county clerk, whose duty it shall be to extend the annual benefit assessment annually upon the tax books of the county until the district is dissolved.
  2. It shall then be the duty of the collector to collect each year the annual benefit assessment extended upon the book along with the other taxes, and the taxes shall be paid over by the collector to the depository of the district at the same time that he pays over the county funds.
    1. If there is any change in the annual benefits assessed, a certified copy of the revised assessment shall be filed with the county clerk who shall extend the revised assessment annually upon the tax books until a new assessment is made, which shall be extended upon the tax books in a similar manner. The power to reassess and extend the assessment upon the tax books shall be a continuing power as long as the district continues to exist. It shall be the duty of the county collector to collect the taxes so extended.
    2. In lieu of filing the reassessment, the assessors may make the changes in the assessments in red ink on the assessment already on file, or the assessment record may contain many columns at the head of which the year shall be designated and, in the column, the new annual benefits may be shown in red ink which will indicate any increase or decrease in the original annual benefits extended. When the change is made, a red ink line shall be drawn through the figures showing the original annual benefits extended.

History. Acts 1979, No. 530, § 11; A.S.A. 1947, § 82-1211.

14-283-110. Assessment — Time for payment — Failure to pay.

  1. All annual benefits extended and levied under the terms of this chapter shall be payable at the time ad valorem taxes are payable, and if any annual benefit assessments levied by the board pursuant to this chapter are not paid when due, the collector shall not embrace the assessments in the taxes for which he shall sell the lands, but he shall report the delinquencies to the board of commissioners of the district. The board shall add to the amount of the annual benefit assessment a penalty of ten percent (10%).
  2. The board of commissioners shall enforce the collection by chancery proceedings in the chancery court of the county in the manner provided by §§ 14-121-426 — 14-121-432.
  3. The owner of property sold for taxes thereunder shall have the right to redeem it at any time within two (2) years from the time when his lands have been stricken off by the commissioner making the sale.

History. Acts 1979, No. 530, § 12; A.S.A. 1947, § 82-1212.

14-283-111. Expenditures — Public proceedings and transactions — Filing of report.

  1. Funds of the district shall be expended only upon the order of the board and upon a voucher check signed by the chairman and secretary-treasurer of the board.
    1. Every voucher check shall state upon its face to whom payable, the amount, and the purpose for which it is used.
    2. All voucher checks shall be dated and shall be numbered consecutively in a record to be kept by the board of the number and amount of each.
  2. All proceedings and transactions of the board shall be a matter of public record and shall be open to the inspection of the public.
  3. The board shall file with the county clerk in January of each year a certified itemized report showing all moneys received, the date of receipt, and the source from which received; and all moneys paid out, date paid, to whom paid, and for what purpose, during the preceding year, together with an itemized list of all delinquent taxes showing owner, description of property, years for which the tax is delinquent, and amount of total delinquency.

History. Acts 1979, No. 530, § 13; A.S.A. 1947, § 82-1213.

14-283-112. Bonds and certificates of indebtedness generally.

  1. The board shall have the authority to issue negotiable bonds or certificates of indebtedness to secure funds for the expenses of the district including office supplies and salaries, the purchase of equipment, facilities, chemicals, and such other items as may be necessary to carry out the purposes of the district.
    1. Bonds issued by the board shall be for a term of not more than twenty (20) years and shall bear interest at a rate not to exceed ten percent (10%) per annum.
    2. To secure the bonds, the board may pledge all or a portion of the benefit assessed against real property in the district.
  2. Bonds of the districts shall be authorized by resolution of the board and may be coupon bonds, payable to bearer, or may be registrable as to principal only or as to principal and interest and may be made exchangeable for bonds of another denomination; may be in such form and denomination; may have such date or dates; may be stated to mature at such times; may bear interest payable at such times and at such rate or rates, provided that no bond may bear interest at a rate exceeding ten percent (10%) per annum; may be payable at such places within or without the State of Arkansas; may be made subject to such terms of redemption in advance of maturity at such prices; and may contain such terms and conditions, all as the board shall determine.
    1. The bonds shall have all the qualities of negotiable instruments under the laws of the State of Arkansas, subject to provisions as to registration, as set forth above.
    2. The authorizing resolution may contain any of the terms, covenants, and conditions that are deemed desirable by the board including, without limitation, those pertaining to the maintenance of various funds and reserves, the nature and extent of the security, the issuance of additional bonds and the nature of the lien and pledge, parity or priority, in that event, the custody and application of the proceeds of the bonds, the collection and disposition of revenues, the investing and reinvesting in securities specified by the board of any moneys during periods not needed for authorized purposes, and the rights, duties, and obligations of the district, the board, and of the holders and registered owners of the bonds.
  3. The authorizing resolution may provide for the execution of a trust indenture by the district with a bank or trust company within or without the State of Arkansas. The trust indenture may contain any terms, covenants, and conditions that are deemed desirable by the board including, without limitation, those pertaining to the maintenance of various funds and reserves, the nature and extent of the security, the issuance of additional bonds and the nature of the lien and pledge, parity or priority, in that event, the custody and application of the proceeds of the bonds, the collection and disposition of assessments and of revenues, the investing and reinvesting in securities specified by the board of any moneys during periods not needed for authorized purposes, and the rights, duties, and obligations of the board and the holders and registered owners of the bonds.
  4. The bonds shall be sold at public sale on sealed bids.
    1. Notice of the sale shall be published one (1) time a week for at least two (2) consecutive weeks in a newspaper having a general circulation throughout the State of Arkansas, with the first publication to be at least twenty (20) days prior to the date of sale and may be published in such other publications as the district may determine.
    2. The bonds may be sold at such price as the board may accept including sale at a discount, but in no event shall any bid be accepted which results in a net interest cost, which is determined by computing the aggregate interest cost from date to maturity at the rate or rates bid and deducting any premium or adding any amount of any discount, in excess of the interest cost computed at par for bonds bearing interest at the rate of ten percent (10%) per annum.
    3. The award, if made, shall be to the bidder whose bid results in the lowest net interest cost.
    1. The bonds shall be executed by the manual or facsimile signature of the chairman of the board and by the manual signature of the secretary-treasurer of the board.
    2. The coupons attached to the bonds shall be executed by the facsimile signature of the chairman of the board.
    3. In case any of the officers whose signatures appear on the bonds or coupons shall cease to be officers before the delivery of the bonds or coupons, their signatures shall, nevertheless, be valid and sufficient for all purposes.
  5. The district shall adopt and use a seal in the execution and issuance of the bonds, and each bond shall be sealed with the seal of the district.

History. Acts 1979, No. 530, § 14; A.S.A. 1947, § 82-1214.

14-283-113. Bonds — Security — Liability of board for bonds and contracts.

    1. It shall be plainly stated on the face of each bond that it has been issued under the provisions of this chapter, that the bonds shall be obligations only of the district, and that in no event shall they constitute any indebtedness for which the faith and credit of the state or any county or municipality or any of the revenues of the state or any county or municipality are pledged.
    2. No member of the board shall be personally liable on the bonds or for any damages sustained by anyone in connection with any contracts entered into in carrying out the purpose and intent of this chapter unless he shall have acted with corrupt intent.
    1. The principal of, interest on, and paying agent's fees in connection with the bonds shall be secured by a lien on, and pledge of, and shall be payable from the assessments levied against the real property within the district.
    2. The right to issue subsequent issues of bonds can, if the district so determines, be reserved in any authorizing resolution or trust indenture on either a parity or subordinate lien basis and upon such terms and conditions as the district may determine and specify in the particular authorizing resolution or trust indenture.

History. Acts 1979, No. 530, § 15; A.S.A. 1947, § 82-1215.

14-283-114. Bonds — Refunding.

  1. Bonds may be issued for the purpose of refunding any bonds issued under this chapter.
  2. Refunding bonds may be either sold or delivered in exchange for the bonds being refunded. If sold, the proceeds may be either applied to the payment of the bonds being refunded or deposited in trust and there maintained in cash or investments for the retirement of the bonds being refunded, as shall be specified by the district in the resolution or trust indenture securing the bonds.
  3. The resolution or trust indenture securing the refunding bonds may provide that the refunding bonds shall have the same priority on assessments or revenues pledged for their payment as was enjoyed by the bonds refunded.
  4. Refunding bonds shall be sold and secured in accordance with the provisions of this chapter pertaining to the sale and security of the bonds initially issued.

History. Acts 1979, No. 530, § 16; A.S.A. 1947, § 82-1216.

14-283-115. Bonds — Tax exemption.

Bonds issued under the provisions of this chapter, and the interest thereon, shall be exempt from all state, county, and municipal taxes. This exemption shall include income, inheritance, and estate taxes.

History. Acts 1979, No. 530, § 17; A.S.A. 1947, § 82-1217.

A.C.R.C. Notes. Language excluding property taxes from the exemption provided by this section was deleted pursuant to Ark. Const. Amend. 57, § 1 and § 26-3-302. Arkansas Const. Amend. 57, § 1 provides that the General Assembly may classify intangible personal property for assessment at lower percentages of value than other property and may exempt one or more classes of intangible personal property from taxation, or may provide for the taxation of intangible personal property on a basis other than ad valorem. Section 26-3-302 exempts all intangible personal property in this state from all ad valorem tax levies of counties, cities, and school districts in the state as of January 1, 1976.

14-283-116. Dissolution of district.

  1. A mosquito abatement district created pursuant to this chapter may be dissolved upon a vote of a majority of qualified electors of the district, and the question of dissolution of the district may be submitted to the electors in the same manner as is prescribed in this chapter for submitting the question of the establishment of the district.
  2. If any district having outstanding bonds or other indebtedness is dissolved, the assessed benefits being levied at the time of dissolution shall continue to be levied and collected until the outstanding bonds or other indebtedness are paid.
  3. No election on the question of dissolution of a mosquito abatement district may be held within the first three (3) years after the establishment of the district.

History. Acts 1979, No. 530, § 18; A.S.A. 1947, § 82-1218.

Chapter 284 Fire Protection Districts

A.C.R.C. Notes. References to “this chapter” in §§ 14-284-101 to 14-284-124 and subchapters 2 and 3 may not apply to § 14-284-125 which was enacted subsequently.

Subchapter 1 — General Provisions

A.C.R.C. Notes. References to “this subchapter” in §§ 14-284-101 to 14-284-124 may not apply to § 14-284-125 which was enacted subsequently.

Cross References. Fire training academy board, § 12-13-202.

Proceedings to correct errors or irregularities in formation of district, § 14-86-101 et seq.

Tort liability immunity, § 21-9-301 et seq.

Preambles. Acts 1939, No. 183 contained a preamble which read:

“Whereas, there are areas in the state, which are so built up, that the operation of a fire department would so reduce the insurance rates on the improved property as to more than offset the expense of maintaining and operating said fire department, and

“Whereas, it is not practical to do so with volunteer contributions, as some will pay and some will not and, therefore, there is a need for the right of a majority of landowners to create a district, which would not be authorized to sell bonds but merely authorized to extend an assessment annually, which would in all cases be less than the reduction in fire insurance rates obtained, and use this annual assessment to pay the expenses of operating the fire department, and

“Whereas, this bill does not permit the issuing of any bonds, and provides that the commissioners of the district are to be appointed by the County Court, and must be resident property holders of the districts, Therefore….”

Effective Dates. Acts 1939, No. 183, § 19: approved Mar. 9, 1939. Emergency clause provided: “This act, providing for the protection of property from fire, will also protect lives from the danger of fire, and from the danger of thoroughfares in bad condition, and this act is, therefore, necessary for the immediate preservation of the public safety, and an emergency is hereby declared, and this act shall take effect and be in force immediately after its passage.”

Acts 1975, No. 979, § 3: Apr. 9, 1975. Emergency clause provided: “It is hereby found and determined by the General Assembly that the present law relating to the issuance of interest bearing notes by fire protection districts is unduly restrictive and makes it almost impossible for fire protection districts to accomplish their purposes; that this Act is designed to increase the maximum limit on interest bearing notes a district may issue and also to increase the maximum rate of interest which such notes may bear; that this Act should be given effect immediately in order to permit fire protection districts to purchase the necessary equipment and facilities to provide adequate services to the property owners in such districts. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1977, No. 205, § 4: Feb. 21, 1977. Emergency clause provided: “It is hereby found and determined by the General Assembly that certain small incorporated towns in this State are desirous of acquiring a fire truck and other firefighting equipment and facilities to provide fire protection to the residents of such towns; that the most appropriate way for such small municipalities to raise funds for the purchase, maintenance and operation of firefighting equipment and facilities is through the formation of a fire protection district; that this Act is designed to specifically authorize certain such small incorporated towns to establish a fire protection district under the provisions of Act 183 of 1939, as amended, and should be given effect at the earliest possible date. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1992 (1st Ex. Sess.), No. 10, § 14: Mar. 4, 1992. Emergency clause provided: “It is hereby found and determined by the Seventy-Eighth General Assembly, meeting in First Extraordinary Session, that an appropriation to the Department of Finance and Administration is necessary in order to disburse funds collected after January 1, 1992, under the provisions of Arkansas Code §§ 14-284-401 et seq. and § 26-57-614, and that the creation of the Fire Protection Premium Tax Fund will allow those monies to be disbursed for the provision of adequate fire protection services in the most efficient manner. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1995, No. 426, § 7: Feb. 24, 1995. Emergency clause provided: “It is hereby found and determined by the General Assembly that fire protection is essential to the safety of the public and that the existing law needs to be clarified to permit fire protection districts to provide adequate protection to the public. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

14-284-101. Definitions.

  1. As used in this subchapter, unless the context otherwise requires, wherever the words “majority in value” are used, it shall be construed to mean a majority in assessed value as shown by the latest county assessment records for general taxes.
  2. As used in this chapter, unless the context otherwise requires, “contractor” means any person, firm, partnership, copartnership, association, corporation, or other organization, or any combination thereof, who, for a fixed price, commission, fee, or wage, attempts to or submits a bid to construct, or contracts or undertakes to construct, or assumes charge, in a supervisory capacity or otherwise, or manages the construction, erection, alteration or repair, or has or have constructed, erected, altered, or repaired, under his, their, or its direction, any fire station, building, or any other improvement or structure for the benefit or use of a district created under this chapter.

History. Acts 1939, No. 183, § 16; A.S.A. 1947, § 20-916; Acts 1995, No. 426, § 1.

Amendments. The 1995 amendment added (b).

Case Notes

Cited: Hannah v. Deboer, 311 Ark. 215, 843 S.W.2d 800 (1992).

14-284-102. Purpose of district.

The purpose of the district shall be the building, equipping, and operating of a fire station or stations equipped with a fire truck or fire trucks, fire hose, chemical fire extinguishers, and other equipment for extinguishing fires. The district may provide other emergency services, like hazardous and toxic materials response, search and rescue, emergency medical, ambulance, and patient transport services, and such other functions as may be assigned to or reasonably expected of a local fire services agency and which it is trained and qualified to perform.

History. Acts 1939, No. 183, § 1; 1973, No. 302, § 1; 1979, No. 486, § 1; A.S.A. 1947, § 20-901; Acts 1995, No. 426, § 2; 1997, No. 1093, § 1.

Amendments. The 1995 amendment inserted “or stations” in the first sentence; and added the last sentence.

The 1997 amendment rewrote the last sentence.

14-284-103. Petition generally.

  1. Upon the petition of majority in value of the owners of real property in any designated area, no part of which is more than three (3) miles, except as provided in subsection (e) of this section, from a lot or plot of ground not exceeding a square acre in area on which the fire station is located or is to be located, the location of which lot or plot of ground must be definitely fixed in the petition, and which area defined in the petition contains not less than one hundred (100) residences, exclusive of garages and other buildings, it shall be the duty of the county court to lay off into an improvement district the territory described in the petition and to name five (5) commissioners of the district who are resident property holders in the district.
  2. Portions of incorporated towns may be included in the districts, provided the town has no equipped fire fighting station.
  3. If any part of the district, as defined in the petition therefor or the court order establishing the district, shall be found to be more than three (3) miles from the designated location of the fire station, it shall not affect the validity of the district, but the portion of the district in excess of three (3) miles from the designated location of the fire station shall be excluded.
  4. However, any tract of land not exceeding three hundred thirty square feet (330 sq. ft.) which equals one-sixteenth (1/16) of a section in length and breadth, any part of which shall be within three (3) miles of the fire station of the district, may be included in the district.
  5. A fire protection district having a radius of five (5) miles may be created in any county having a population of not less than fifteen thousand three hundred (15,300) and not more than fifteen thousand five hundred (15,500) according to the 1970 Federal Decennial Census in the same manner and for the same purposes as provided in this subchapter for a fire protection district having a three-mile radius.
  6. The petition shall state the purpose or purposes for which the district is to be formed, and the judgment establishing the district shall give it a name which shall be descriptive of the purpose. The district shall also receive a number to prevent its being confused with other districts for similar purposes.

History. Acts 1939, No. 183, §§ 1, 2; 1973, No. 302, § 1; 1979, No. 486, § 1; A.S.A. 1947, §§ 20-901, 20-902.

14-284-104. Petition — Notice and hearing.

  1. Upon the filing of the petition, it shall be the duty of the county clerk to give notice of the filing thereof, describing the territory to be affected and calling upon all persons who wish to be heard upon the question of the establishment of the district to appear before the county court on a day to be fixed in the notice.
    1. The notice shall be published one (1) time a week for two (2) weeks in some newspaper published and having a bona fide circulation in the county where the lands affected are situated.
    2. This notice may be in the following form:
  2. Any number of identical petitions may be circulated, and identical petitions with additional names may be filed at any time until the county court acts.
  3. On the day named in the notice, it shall be the duty of the county court to meet and to hear the petition and to ascertain whether those signing the petition constitute a majority in value.
    1. If the county court determines that a majority in value have petitioned for the improvement, it shall enter its judgment laying off the district as defined in the petition and appointing the commissioners.
    2. If it finds that a majority has not signed the petition, the county court shall enter its order denying the petition.
  4. Any petitioner or any opponent of the petition may appeal from the judgment of the county court creating or refusing to create the district, but the appeal must be taken and perfected within thirty (30) days. If no appeal is taken within that time, the judgment creating the district shall be final and conclusive upon all persons.

“Notice is hereby given that a petition has been filed praying for the formation of an improvement district for the purpose of Said petition is on file at the office of the county clerk of County, where it is open to inspection. All persons desiring to be heard on the question of the formation of said district will be heard by the county court at m. , on the day of , 19 The following lands are affected: (Here give description of lands affected; the same may be described by using the largest subdivisions possible). County Clerk”

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History. Acts 1939, No. 183, § 2; A.S.A. 1947, § 20-902.

Cross References. Notice on formation of improvement districts, § 14-86-301 et seq.

14-284-105. Board of commissioners — Appointment — Qualifications.

  1. The board of commissioners shall be resident property holders in the district and shall be citizens of integrity and good business ability.
    1. The commissioners shall be appointed to serve for terms of one (1), two (2), three (3), four (4), and five (5) years respectively, and the length of the term of each commissioner shall be stated in the order of the county court making the appointment.
    2. As the terms of the commissioners expire, the county court shall appoint successors to hold office for a term of five (5) years. The county court may reappoint a commissioner whose term is expiring.
  2. In case of a vacancy on the board of commissioners after the commissioners have organized, the county court shall appoint some resident property holder as his successor who shall qualify in like manner and within a like time.
  3. The commissioners shall serve without compensation and until their successors are appointed and qualified.

History. Acts 1939, No. 183, §§ 1-3; 1973, No. 302, § 1; 1979, No. 486, § 1; A.S.A. 1947, §§ 20-901—20-903.

14-284-106. Board of commissioners — Proceedings — Officers — Employees — Selection of depository.

    1. Within thirty (30) days after their appointment, the commissioners shall take and file with the county clerk their oaths of office in which they shall swear to support the Constitution of the United States and the Constitution of the State of Arkansas, to discharge faithfully their duties as commissioners, and that they will not be interested, directly or indirectly, in any contract let by the board.
    2. Any commissioner failing to file the oath within that period shall be deemed to have declined the office. The county court shall appoint some resident property holder as his successor who shall qualify in like manner within a like time.
  1. The board shall organize by electing one (1) of its members chairman, and it shall select a secretary.
  2. The board may also employ fire fighters and organize a voluntary fire department, as it deems best, and fix the compensation for paid fire fighters.
  3. Each district shall be a body corporate with power to sue and be sued, and it shall have a corporate seal.
  4. The board shall also select some solvent bank or trust company as the depository of its funds.

History. Acts 1939, No. 183, § 3; A.S.A. 1947, § 20-903.

14-284-107. Board of commissioners — Liability.

No member of the board of improvement shall be liable for any damages unless it shall be made to appear that he had acted with a corrupt and malicious intent.

History. Acts 1939, No. 183, § 13; A.S.A. 1947, § 20-913.

14-284-108. Plans for improvement — Assessors and assessments generally.

  1. Immediately after their qualification, the commissioners shall form plans for the improvements they intend to make and the equipment they intend to purchase. To that end, they may employ an architect, if a fire station is to be built, and shall file a copy of the plans or specifications with the county clerk.
  2. They shall appoint three (3) assessors to assess the annual benefits which will accrue to the real property within the district from making the improvement and operation of the fire fighting equipment, and fix their compensation. The assessors shall take an oath that they will well and truly assess all annual benefits that will accrue to the landowners of the district by the making of the proposed improvement and the acquisition and operation of the fire fighting equipment.
  3. The assessors shall proceed to assess the annual benefits to the lands within the district, and shall inscribe in a book each tract of land and shall extend opposite each tract of land the amount of annual benefits that will accrue each year to the land by reason of building and equipping the fire station and operating the fire equipment for the extinguishing of fires, and the keeping in repair of the streets or roads liable to be traversed by the fire fighting equipment.
  4. In case of any reassessment, the reassessment shall be advertised and equalized in the same manner as provided in this section for making the original assessment. The owners of all property whose assessment has been raised shall have the right to be heard and to appeal from the decision of the assessors as in the original assessment.
  5. The assessors shall place opposite each tract the name of the supposed owner as shown by the last county assessment. However, a mistake in the name shall not vitiate the assessment, and the assessors shall correct errors which occur in the county assessment list.
  6. The assessors shall hold their office at the pleasure of the board, which can fill any vacancy in the position of assessors.

History. Acts 1939, No. 183, § 4; A.S.A. 1947, § 20-904; Acts 1991, No. 1144, § 1.

Cross References. Partition of assessments among several owners of single tract, § 14-86-601.

14-284-109. Assessment — Notice and hearing.

  1. The assessment shall be filed with the county clerk of the county, and the secretary of the board shall give notice of its filing by publication one (1) time a week for two (2) weeks in a newspaper published and having a bona fide circulation in the county. This notice may be in the following form:
  2. On the day named by the notice, it shall be the duty of the assessors to meet at the place named as a board of assessors and to hear all complaints against the assessment and to equalize and adjust the assessment. Their determination shall be final unless suit is brought in the circuit court within thirty (30) days to review it. If the board is unable to hear all complaints between the hours designated, they shall adjourn over from day to day until all parties have been heard.
    1. However, in cities of the first class that have two (2) or more full-time volunteer fire protection districts, the assessment is not final until reviewed by the governing body of the city and a resolution is passed that states the assessments have been reviewed.
    2. The city's governing body may return the assessments to the assessors with a request for further review of the assessments by the assessors.

“Notice is hereby given that the assessment of annual benefits of District Number has been filed in the office of the County Clerk of County, where it is open for inspection. All persons wishing to be heard on said assessment will be heard by the assessors of said district in the office of the county clerk between the hours of 1 p.m. and 4 p.m., at , on the day of , 20 ”

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History. Acts 1939, No. 183, § 5; A.S.A. 1947, § 20-905; Acts 2003, No. 1168, § 1.

Amendments. The 2003 amendment added (c).

14-284-110. Assessment — Annual reassessment.

  1. The commissioners shall one (1) time a year order the assessors to reassess the annual benefits of the district, provided there have been improvements made or improvements destroyed or removed from one (1) or more tracts of land in the district, making it necessary to have the annual benefits revised.
    1. It shall be the duty of the assessors to reassess the benefits of the district, and the annual benefits assessed may be raised or lowered as conditions of the property change or as requirements of the fire department change.
    2. However, the annual benefits extended against any piece of property shall not be increased from the annual benefits originally extended unless the original benefits were uniformly assessed against all classes of land in the amount of one dollar ($1.00) per parcel of vacant land and ten dollars ($10.00) per parcel of improved land and providing there have been material changes in value or character made from one (1) or more tracts of land in the district since the original assessment of benefits, making it necessary for the assessors to equitably reassess the annual benefits.

History. Acts 1939, No. 183, § 6; A.S.A. 1947, § 20-906; Acts 1993, No. 460, § 1.

Amendments. The 1993 amendment rewrote (b)(2).

14-284-111. Assessment — Order of levy — Lien.

    1. The board of commissioners of the district shall, at the same time that the annual benefit assessment is equalized or at any time thereafter, enter upon its records an order. This order shall have all the force of a judgment, providing that there shall be assessed upon the real property of the district, and collected annually, the annual benefit assessment set opposite each tract of land described, which annual benefit is to be paid by the owner of the real property in the district, payable as provided in the order.
    2. However, the commissioners shall, promptly after an entry of an order of levy of annual benefit assessment, publish one (1) time a week for two (2) consecutive weeks in some newspaper having general circulation in the district a notice setting forth the order of levy and warning all persons affected that the order of levy shall become final unless suit is brought to contest it within thirty (30) days of the date of first publication of the notice. No property owner shall be barred from contest of the levy within the thirty-day publication period.
    1. The uncollected annual benefit assessment as extended shall be a lien upon the real property in the district against which it is extended from the time the same is levied, shall be entitled to preference over all demands, executions, encumbrances, or liens whenever created, and shall continue until the assessment, with any penalty and costs that may accrue thereon, shall have been paid.
    2. Notice of the amount due shall be given, by mail at his last known address to each landowner who fails to pay his assessment on or before the third Monday in April.
    3. The remedy against the annual benefit assessment shall be by suit in chancery, and the suits must be brought within thirty (30) days from the time that the notice is mailed. On the appeal, the presumption shall be in favor of the legality of the annual benefit assessment.

History. Acts 1939, No. 183, § 7; 1961, No. 152, § 1; A.S.A. 1947, § 20-907.

14-284-112. Assessment — Filing and collection.

  1. The original assessment record, or any reassessment record, shall be filed with the county clerk, whose duty it shall be to extend the annual benefit assessment annually upon the tax books of the county until the district is dissolved.
  2. It shall then be the duty of the collector to collect each year the annual benefit assessment extended upon the book along with the other taxes, and the taxes shall be paid by the collector over to the depository of the district at the same time that he pays over the county funds.
    1. If there is any change in the annual benefits assessed, a certified copy of the revised assessment shall be filed with the county clerk who shall extend the revised assessment annually upon the tax books until a new assessment is made, which shall be extended upon the tax books in a similar manner. The power to reassess and extend the assessment upon the tax books shall be a continuing power as long as the district continues to exist. It shall be the duty of the county collector to collect the taxes so extended.
    2. In lieu of filing the reassessment, the assessors may make the changes in the assessments in red ink on the assessment already on file, or the assessment record may contain many columns, at the head of which the year shall be designated and, in the column, the new annual benefits may be shown in red ink which will indicate any increase or decrease in the original annual benefits extended. When the change is made, a red ink line shall be drawn through the figures showing the original annual benefits extended.

History. Acts 1939, No. 183, § 8; A.S.A. 1947, § 20-908.

14-284-113. Assessment — Time for payment — Failure to pay — Redemption.

    1. All annual benefits extended and levied under the terms of this subchapter shall be payable between the third Monday in February and the third Monday in April of each year.
    2. If any annual benefit assessments levied by the board in pursuance to this subchapter are not paid at maturity, the collector shall not embrace the assessments in the taxes for which he shall sell the lands, but he shall report the delinquencies to the board of commissioners of the district who shall add to the amount of the annual benefit assessment a penalty of ten percent (10%).
  1. The board of commissioners shall enforce the collection by chancery proceedings in the chancery court of the county in the manner provided by §§ 14-121-426 — 14-121-432.
  2. The owner of property sold for taxes thereunder shall have the right to redeem it at any time within two (2) years from the time when his lands have been stricken off by the commissioner making the sale.

History. Acts 1939, No. 183, § 9; A.S.A. 1947, § 20-909.

Cross References. Redemption, § 14-86-1501 et seq.

14-284-114. Expenditures — Filing of report.

  1. The depository shall pay out no money save upon the order of the board and upon a voucher check signed by at least two (2) of the commissioners. Every voucher check shall state upon its face to whom payable, the amount, and the purpose for which it is issued. All voucher checks shall be dated and shall be numbered consecutively in a record to be kept by the board of the number and amount of each.
    1. The board of commissioners shall file with the county clerk in January of each year a certified itemized report showing all moneys received, the date of receipt, and the source from which received. The report shall further show all moneys paid out, the date paid, to whom paid, and for what purpose during the preceding year, together with an itemized list of all delinquent taxes showing the owner, a description of the property, the years for which taxes are delinquent, and the amount of total delinquency.
    2. Copies of the report shall be made and furnished to the chief of the fire department, who shall keep the reports at the fire station to be handed out on request by property holders of the district.

History. Acts 1939, No. 183, § 10; A.S.A. 1947, § 20-910; Acts 1995, No. 426, § 3.

Amendments. The 1995 amendment deleted “Two hundred fifty (250)” preceding “Copies” in (b)(2).

14-284-115. Street and road maintenance.

  1. The board of commissioners may make the necessary repairs upon the streets or roads within the district.
    1. It is realized that the fire fighting apparatus must rush with great speed to the place of the fire and that holes or ruts in the streets or roads which it traverses may result in injury or death to fire fighters and in wrecking the fire fighting apparatus.
    2. Therefore, any district organized pursuant to this subchapter is authorized to spend a sum not exceeding two hundred fifty dollars ($250) per annum in maintaining the streets or roads in a safe condition.
    3. It is realized that the expenditure would be a benefit to all the real property in the district.
    4. The petition for and the court order creating the district shall designate the maximum amount that may be expended for labor and material in any year in maintaining the public thoroughfares of the district, but in no case shall the amount exceed two hundred fifty dollars ($250) annual expenditure.

History. Acts 1939, No. 183, §§ 1, 3; 1973, No. 302, § 1; 1979, No. 486, § 1; A.S.A. 1947, §§ 20-901, 20-903.

14-284-116. Awarding of contracts.

    1. All contractors shall be required to give bond for the faithful performance of contracts as may be awarded them, with good and sufficient sureties in an amount to be fixed by the board of commissioners.
    2. The board shall not remit or excuse the:
      1. Penalty or forfeiture of the bond; or
      2. Breaches of the bond.
    1. The board may appoint all necessary agents for carrying on the work and may fix their pay.
    2. The board shall pay a reasonable fee for legal services in organizing the district.
    1. The board may sell all unnecessary material and implements that may be on hand and which may not be necessary for the completion of the improvement under way or for its operation.
    2. The board may in general make all contracts in the conduct of the affairs of the district as may best serve the public interest.
    1. The board shall make no contract for the purchase of material or equipment costing ten thousand dollars ($10,000) or more except upon sealed bids opened in public.
    2. It shall be the duty of the secretary of the district to deliver a news item notice of intention to receive bids on certain equipment to the daily papers in the county and at least one (1) weekly paper.

History. Acts 1939, No. 183, § 11; A.S.A. 1947, § 20-911; Acts 1992 (1st Ex. Sess.), No. 10, § 2; 2005, No. 1224, § 1; 2007, No. 61, § 1.

Amendments. The 1992 (1st Ex. Sess.) amendment substituted “five hundred dollars ($500)” for “one hundred dollars ($100)” in the first sentence of (d).

The 2005 amendment, substituted “one thousand dollars ($1,000)” for “five hundred dollars ($500)” in (d)(1); and deleted “call on the telephone or notify in person not less than ten (10) property holders, not less than forty-eight (48) hours or more than one (1) week before the time of receiving the bids. The secretary shall also” following “secretary of the district to” in (d)(2).

Cross References. Contractors' bonds, § 22-9-401 et seq.

14-284-117. Issuance of notes.

    1. In order to acquire and maintain equipment and facilities and do the work of the fire protection district, the board of commissioners may issue the negotiable notes of the fire protection district signed by the members of the board and bearing a rate of interest not exceeding the maximum rate of interest under § 4-57-104, and the board may pledge and mortgage a portion of the future annual benefit assessments as collected for payment.
    2. The petition for the creation of a fire protection district in the court order creating the fire protection district shall limit the total amount of notes that may be outstanding at any time, but the limits may be increased to the maximum prescribed in subdivision (a)(3) of this section.
    3. Subject to Arkansas Constitution, Amendment 78, if applicable, a fire protection district created under this subchapter shall not have notes outstanding at any one time:
      1. In excess of one hundred fifty thousand dollars ($150,000); or
      2. With an annual amortized amount that exceeds two (2) times the available cash reserves of the fire protection district.
  1. A fire protection district shall not issue bonds.

History. Acts 1939, No. 183, § 12; 1975, No. 979, § 1; A.S.A. 1947, § 20-912; Acts 2009, No. 399, § 1; 2019, No. 739, § 1.

Amendments. The 2009 amendment in (a)(1) inserted “of commissioners” and “fire protection”; and substituted “one hundred fifty thousand ($150,000)” for “fifty thousand dollars ($50,000)” in (a)(3), and made minor stylistic changes.

The 2019 amendment, in (a)(1), inserted “and maintain”, “and facilities”, and “of the fire protection district”, and substituted “the maximum rate of interest under § 4-57-104” for “eight percent (8%) per annum”; in (a)(2), inserted “fire protection” twice and “subdivision (a)(3) of”, and deleted “by a vote of a majority in value of the owners of real property in the district” following “this section”; rewrote (a)(3) and (b); and made stylistic changes.

14-284-118. Dissolution.

  1. The district shall not cease to exist upon the completion of the improvement, but it shall continue to exist for the purpose of operating the fire fighting equipment and keeping it in repair until such time as the owners of a majority in value of the real property within the district petition the county court for dissolution of the district.
  2. Publication of the petition for dissolution, as provided for in creating the district, shall be made, and, if the county court finds that a majority in value of the real property in the district have petitioned for the dissolving of the district, the district shall be dissolved.
  3. Parties for or against the dissolution shall have the same right of appeal as in the creation of the district.

History. Acts 1939, No. 183, § 14; A.S.A. 1947, § 20-914.

14-284-119. Certain suits in public interest.

  1. All cases involving the validity of such districts or the annual benefit assessments and all suits to foreclose the lien of annual benefit assessments shall be deemed matters of public interest and shall be advanced and disposed of at the earliest possible moment.
  2. All appeals therefrom must be taken and perfected within thirty (30) days.

History. Acts 1939, No. 183, § 15; A.S.A. 1947, § 20-915.

14-284-120. Alteration of plans and specifications.

  1. The commissioners may at any time alter the plans and specifications, which shall be filed with the county court. Notice of the filing shall be given by publication for two (2) weeks in some newspaper issued and having a bona fide circulation in the county.
  2. If by reason of a change of plans the board of commissioners deems that the assessment of benefits has become inequitable, it shall direct the assessors to make a reassessment. If any property owner deems that by reason of the change of plans his assessment has become inequitable, he may, within two (2) weeks after the last publication of the notice, petition the board to order a reassessment. The decision of the board upon his petition shall be final unless an appeal is taken within ten (10) days to the county court. In case of a reassessment, the reassessment shall be filed, advertised, and equalized as provided for in the original assessment.

History. Acts 1939, No. 183, § 16; A.S.A. 1947, § 20-916.

14-284-121. Fee of collector and county clerk.

The collector of taxes in any county, in collecting annual benefit assessments in any district created under this subchapter or in collecting taxes in any improvement district created under Acts 1921, No. 660 [repealed] or Acts 1923, No. 126 [superseded], shall deduct one percent (1%) of the annual benefit assessments or taxes so collected, retain one-half of one percent (½ of 1%) as the fee of the collector for collecting the assessments or taxes, and pay over the remaining one-half of one percent (½ of 1%) of the assessments or taxes collected to the county clerk of the county as the fee of the county clerk for extending on the assessment records of the county the annual benefit assessments or taxes.

History. Acts 1939, No. 183, § 17; A.S.A. 1947, § 20-917.

14-284-122. Authority to contract with other governmental entities to provide fire protection services.

Fire protection improvement districts or fire protection districts organized under this subchapter are authorized to contract with a city, town, county, the state, the federal government, or an existing fire protection improvement district or fire protection district for the provision of fire protection services.

History. Acts 1983, No. 500, § 1; A.S.A. 1947, § 20-949.

14-284-123. Formation in certain towns.

  1. The real property owners in any incorporated town in this state having a population of not less than four hundred twenty-five (425) persons nor more than four hundred thirty-five (435) persons according to the 1970 Federal Decennial Census are authorized to form a fire protection district under the provisions of this subchapter for the purpose of acquiring, maintaining, and operating fire fighting equipment and facilities to provide fire protection to the residents of the incorporated town.
  2. A fire protection district formed pursuant to the authority granted in this section shall be formed in the manner and for the purposes prescribed in this subchapter and shall have all powers, authority, and responsibility of other fire protection districts created under it.

History. Acts 1977, No. 205, §§ 1, 2; A.S.A. 1947, §§ 20-901.1, 20-901.2.

14-284-124. Consolidation — Conditions and procedures.

    1. Fire protection districts organized under this subchapter may consolidate if:
      1. The districts are geographically contiguous;
      2. Located in the same county; and
      3. No parcel of land in the new district will be more than three (3) miles from an existing fire station.
      1. Consolidation of fire protection districts may be initiated upon the adoption of a resolution for consolidation by the board of directors of each district.
        1. Upon adopting a resolution, each fire protection district shall hold a public hearing to be held in the district no sooner than twenty (20) days and no later than forty-five (45) days following the adoption of the resolution.
          1. Each district shall publish notice of its hearing in a newspaper of general circulation in the district once a week for two (2) consecutive weeks.
          2. The notice shall include the date, time, place, and purpose of the hearing.
        1. Following the hearing, the commissioners of the district shall vote on a resolution finding that consolidation of the districts is in the best interest of the landowners of the district.
        2. If the resolution is adopted by the board of commissioners, a copy of the resolution shall be sent to the county court in the county where the district is located.
        1. Upon receiving a resolution from each district to be consolidated, the county court shall order the districts consolidated and shall name five (5) commissioners of the new district.
        2. The new commissioners shall be appointed pursuant to § 14-284-105.
    1. In cities of the first class that have two (2) or more full-time volunteer fire protection districts, the governing body of the city may refer to the voters in the fire protection districts the option to consolidate the districts.
    2. If a majority of the voters in each district vote in favor of consolidation, the districts shall consolidate as set forth in subsections (c)-(e) of this section.
      1. Any fire protection district which is formed by the consolidation of two (2) or more fire protection districts shall consolidate all assets held by it arising from any of the districts and shall also assume all liabilities of the districts.
      2. The assets may be used by the district for any purpose allowed by law, and the liabilities of the district may be paid with funds arising from any source.
    1. All the provisions, rights, securities, pledges, covenants, and limitations contained in the instrument creating a liability shall not be affected by the consolidation, but shall apply with the same force and effect as provided in the original creation of liability.
    1. The existing assessments of each district consolidated into the new district shall remain in force until the end of the year in which the districts are consolidated.
    2. The commissioners shall order the assessors to reassess the annual benefits of the new district for the following year.
    1. A consolidated fire protection district shall not have notes outstanding at any one (1) time in excess of one hundred thousand dollars ($100,000).
    2. The limitation of the excess outstanding note balance under subdivision (e)(1) of this section shall not apply to a consolidation of fire protection districts in a city of the first class that has two (2) or more full-time volunteer fire protection districts that have received funding from the city.

History. Acts 1995, No. 286, § 1; 2003, No. 1168, § 2; 2005, No. 438, § 1.

Amendments. The 2003 amendment added (e)(2).

The 2005 amendment inserted present (b); and redesignated the remaining subsections accordingly.

14-284-125. Boundaries of overlapping districts.

The State Forestry Commission shall have authority to adjust the boundaries of fire protection districts having overlapping boundaries. The commission shall adjust the boundaries of overlapping fire districts upon the request of either district. The commission shall adjust the boundaries so that each district receives approximately fifty percent (50%) of the area that is within the boundaries of both districts.

History. Acts 1997, No. 1178, § 2.

A.C.R.C. Notes. References to “this subchapter” in §§ 14-284-101 to 14-284-124 may not apply to this section which was enacted subsequently.

References to “this chapter” in §§ 14-284-101—14-284-124 and subchapters 2 and 3 may not apply to this section which was enacted subsequently.

Cross References. Functions, powers, and duties of Commission, § 15-31-106.

Subchapter 2 — Fire Protection Districts Outside of Cities and Towns

Effective Dates. Acts 1979, No. 35, § 23: Feb. 2, 1979. Emergency clause provided: “It is hereby found and determined by the General Assembly that many rural areas of this State do not have the availability of fire protection services, which poses a constant threat to the life, safety, and property of thousands of families in this State; that the passage of laws to encourage counties and/or local fire protection districts to organize their efforts to develop and operate fire protection services is necessary to encourage and make it possible for local districts to establish and operate fire protection services, and that the immediate passage of this Act is necessary to establish the legal structure for the creation of such fire protection districts and/or programs. Therefore, an emergency is hereby declared to exist, and this Act, being necessary for the immediate preservation of the public peace, health, and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1981, No. 425, § 54: Mar. 11, 1981. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 1991, No. 801, § 5: Mar. 26, 1991. Emergency clause provided: “It is hereby found and determined by the General Assembly that the present law pertaining to the establishment of service area for fire protection districts inappropriately also refers to nonprofit fire protection corporations; that the law should be modified to provide that the quorum court may establish the service area of fire protection districts; that this Act so provides; and that this Act should go into effect immediately in order to clarify the power of the quorum courts as soon as possible. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1993, No. 811, § 2: on and after Dec. 31, 1993.

Acts 1995, No. 828, § 5: Mar. 29, 1995. Emergency clause provided: “It is found and determined by the General Assembly that the provisions of this act need to be invoked to prevent undue interference with the operations of fire protection districts and the fiscal operations of county and municipal governments of Arkansas. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 2009, No. 1480, § 117: Apr. 10, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act makes various revisions to Arkansas election laws that are designed to improve the administration of elections and special elections and that these revisions should be implemented as soon as possible so that the citizens of this state may benefit from improved election procedures. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2015, No. 346, § 2: Mar. 6, 2015. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that there are millions of acres of privately-owned timberland in this state; that private timberland owners pay a forest fire protection tax to the Arkansas Forestry Commission to assist with the provision of fire services for those timberlands; and that this act is immediately necessary to limit the amount of fees, assessments, and taxes a timberland owner pays for the same services. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2019, No. 1077, § 7: Apr. 17, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that fire protection districts provide critical public safety functions often not available from local governmental units; that funding sources for these fire protection districts are limited; and that this act is immediately necessary because without securing better funding, many fire protection districts will be unable to continue providing public safety functions at expected levels. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto”.

14-284-201. Applicability.

    1. Fire protection districts established under this subchapter shall cover only territory within the county, or within the defined district, outside the corporate limits of cities and towns.
      1. However, if any city or town within the district does not have an organized or volunteer fire department and desires to be included within the fire protection district, upon the adoption of an ordinance by the governing body of the city or town, addressed to the county judge and quorum court, the area covered by the fire protection district shall be extended to provide fire protection within the city limits of the city or town by ordinance adopted by the quorum court.
      2. A limited fire protection district shall be established by county ordinance upon the petition adopted by ordinance addressed to the county judge and quorum court from a city or town fire department that serves an area outside the city or town for the purpose of contracting for the collection of assessments under this subchapter.
  1. A fire protection district under this subchapter shall be established for fire protection in rural areas for buildings, structures, and other man-made improvements and may provide other emergency services, including hazardous and toxic materials response, search and rescue services, emergency medical services, ambulance services, patient transport services, and other functions as may be assigned.
  2. This subchapter does not relieve the Arkansas Forestry Commission of responsibility for providing fire protection for forest lands.

History. Acts 1979, No. 35, § 3; A.S.A. 1947, § 20-925; Acts 1997, No. 1093, § 2; 2019, No. 1077, § 2.

Amendments. The 1997 amendment inserted the present second sentence in (b).

The 2019 amendment inserted designation (a)(2)(A); substituted “shall” for “may” in (a)(2)(A); added (a)(2)(B); redesignated (b) as (b) and (c); rewrote (b); in (c), substituted “This subchapter does not” for “Nothing in this subchapter shall be construed to”; and made stylistic changes.

Case Notes

Purpose.

The purpose of this section is to prevent duplication of fire districts and to provide fire protection in rural areas where none exists; therefore, it excludes cities which have fire departments, regardless of whether they finance or own the department. Cox v. Commissioners of Maynard Fire Improv. Dist. No. 1, 287 Ark. 173, 697 S.W.2d 104 (1985).

14-284-202. Provisions supplemental.

The provisions of this subchapter are supplemental to any other laws and procedures for the establishment, funding, and operation of fire protection districts and shall not be construed to modify, amend, supersede, or otherwise affect other laws and procedures.

History. Acts 1979, No. 35, § 21; A.S.A. 1947, § 20-943.

14-284-203. Methods of establishment.

Fire protection districts may be established to serve all or any defined portion of any county in any of the following ways:

  1. By ten percent (10%) of the qualified electors in the proposed district's petitioning the quorum court to hold a public hearing and to form a district, and by the quorum court's adopting an ordinance calling for notice and a public hearing within the district;
  2. By the county court pursuant to an election of the qualified electors of the proposed district initiated, called, and conducted as provided in this subchapter; or
  3. By the county court pursuant to a resolution of a suburban improvement district, approved by unanimous vote of its board of commissioners, to convert to a fire protection district to be administered under this subchapter.

History. Acts 1979, No. 35, § 1; A.S.A. 1947, § 20-923; Acts 1997, No. 323, § 2; 2001, No. 1205, § 1.

Amendments. The 1997 amendment substituted “any of the following” for “either of the following” in the introductory language; added (3); and made related changes in (1) and (2).

The 2001 amendment substituted the present (1) for the former, which read: “By the quorum court by ordinance enacted after notice and public hearing.”

Case Notes

Notice Requirement.

This section, which refers to an ordinance “enacted after notice,” is general and merely introductory, but § 14-284-204, which contemplates that the passage of the ordinance should precede public notice and hearing, is specific and controls; accordingly, only the notice required in subsection (a) of § 14-284-204 is necessary prior to public hearing and no notice is required prior to enactment of the ordinance creating the district. Langford v. Brand, 274 Ark. 426, 626 S.W.2d 198 (1981).

Cited: Bailey v. Harris Brake Fire Protection Dist., 287 Ark. 268, 697 S.W.2d 916 (1985); Hannah v. Deboer, 311 Ark. 215, 843 S.W.2d 800 (1992).

14-284-204. Establishment by petition and adoption of ordinance.

      1. If petitions containing a description of the territory for a proposed fire protection district, along with an accurate map of the proposed fire protection district boundaries, and containing the signatures of ten percent (10%) or more of the qualified electors within the proposed fire protection district are filed with the county quorum court of a county in which the proposed fire protection district is to be located to request a public hearing and the establishment of a fire protection district in the county, then the county quorum court or quorum courts, if the proposed fire protection district is located in more than one (1) county, shall conduct a public hearing to determine the support for the proposed fire protection district.
        1. A petition shall be certified by the quorum court within sixty (60) days of receipt of the petition under subdivision (a)(1)(A) of this section.
        2. The quorum court shall respond in writing to the petitioners within the sixty-day period under subdivision (a)(1)(B)(i) of this section if there are issues or questions the quorum court would like addressed in the petition, but in no event shall the quorum court delay the sixty-day period under subdivision (a)(1)(B)(i) of this section.
      1. The quorum court shall set the time for the hearing to be held not less than thirty (30) days nor more than sixty (60) days after the petitions are certified and shall set the place for the hearing to be held within the boundaries of the proposed fire protection district.
      2. When a time and place for the hearing are set, the quorum court shall publish notice of the hearing in a newspaper of general circulation in the county.
      1. Before setting the initial hearing on the adoption of an ordinance to establish a fire protection district, petitions filed with the county quorum court shall be sent to the county clerk of the county where the proposed fire protection district is to be located.
      2. It shall be the duty of the county clerk or clerks, as the case may be, to determine the sufficiency of the signatures and to certify the sufficiency in writing to the quorum court.
      3. The petitions shall indicate the elector's name, address, and signature and shall contain a verification of the signatures pursuant to § 7-9-109.
    1. After the petitions are certified and the initial public hearing held, the county quorum court shall adopt an ordinance to establish the fire protection district, to levy assessments on property or the landowners, or both, and to call for a public hearing on the ordinance.
    2. The ordinance shall set the time and place for a public hearing on the ordinance to be held within the boundaries of the proposed fire protection district.
      1. When an ordinance is adopted by the quorum court establishing a fire protection district, the quorum court shall publish notice of the adoption of the ordinance in a newspaper of general circulation in the county.
      2. The notice shall include a copy of the ordinance and shall prescribe a time and place within the proposed district for a public hearing on the ordinance.
      1. A public hearing shall be held at some large public facility within the boundaries of the proposed district at least sixty (60) days and not more than ninety (90) days after the date of publication of the notice.
      2. If at the hearing a majority of the qualified electors in the proposed district appear in person to oppose the establishment of the district or if petitions opposing the establishment of the district and containing the signatures of a majority of the qualified electors in the proposed district are filed at or before the public hearing, the ordinance creating the district shall be void.
        1. If a majority of the qualified electors of the proposed district do not object to the establishment of the district in person or by petition within the time prescribed in this subsection, the ordinance shall be valid and the district shall be established.
        2. The board of commissioners for the district shall be appointed and serve, and the levy of assessed benefits to support the district may be made, in the same manner as is provided in this subchapter for fire protection districts established pursuant to a vote of the electors.
    1. A fire protection district established by ordinance of the quorum court without a vote of the electors of the district shall have no authority to issue bonds and to pledge assessed benefits of the district to secure bonds, unless the question of the issuance of bonds by the district is first submitted to, and approved by, a majority of the qualified electors of the district voting on the issue.
    2. The question of the issuance of bonds by a fire protection district established by ordinance of the quorum court may be submitted to the electors of the district at an election called by the county court either at the request of the board of commissioners of the district or upon petition signed by ten percent (10%) of the electors of the district as determined by the number of votes cast by the electors of the district for all candidates for Governor at the last preceding general election.

History. Acts 1979, No. 35, § 2; A.S.A. 1947, § 20-924; Acts 2001, No. 1205, § 2; 2019, No. 1077, § 3.

Amendments. The 2001 amendment added present (a) and (b); redesignated former (a)(1) and (a)(2) as present (c)(1)(A), (c)(1)(B) and (c)(2)(A) through (c)(2)(C); redesignated former (b) as present (d); inserted “within the proposed district” in (c)(1)(B), in (c)(2)(A), inserted “at some large public facility with the boundaries of the proposed district,” substituted “sixty (60) days” for “thirty (30) days,” and substituted “ninety (90) days” for “sixty (60) days”; substituted “this subsection” for “subsection (a)” in (c)(2)(C)(i); and made minor punctuation changes.

The 2019 amendment added (a)(1)(B) and redesignated former (a)(1) as (a)(1)(A); substituted “to request” for “and requesting” in (a)(1)(A); substituted “shall” for “may” in (b)(1); and made stylistic changes.

Case Notes

Notice Requirement.

Section 14-284-203, which refers to an ordinance “enacted after notice,” is general and merely introductory, but this section, which contemplates that the passage of the ordinance should precede public notice and hearing, is specific and controls; accordingly, only the notice required in subsection (a) of this section is necessary prior to public hearing and no notice is required prior to enactment of the ordinance creating the district. Langford v. Brand, 274 Ark. 426, 626 S.W.2d 198 (1981).

14-284-205. Establishment by election.

  1. When petitions are filed with the county court of any county wherein the fire protection district to be established is located in a single county or if the fire protection district is to be located in more than one (1) county and the petitions are filed with the county courts of all counties wherein the fire protection district is to be established, and the petitions contain the signatures of ten percent (10%) or more of the qualified electors within the proposed fire protection district boundaries, as determined by the number of votes cast by the qualified electors within the proposed fire protection district boundaries for all candidates for Governor at the last preceding general election, requesting the establishment of a fire protection district in the county or a designated portion thereof and requesting that assessments be made on the property or assessments be made on the landowners, or assessments be made both on the property and the landowners located in the district to finance the operation of the district, the county court, or county courts if the fire protection district is located in more than one (1) county, shall call a special election in accordance with § 7-11-201 et seq. within the proposed fire protection district to determine whether a fire protection district shall be established for the area.
    1. The county court or county courts, if the proposed fire protection district is located in more than one (1) county, shall call a special election in accordance with § 7-11-201 et seq. to submit the question of the establishment and financing of a fire protection district to the electors of a proposed district.
    2. The special election shall be held within ninety (90) days after the filing of the petitions requesting the election.
    3. If the proposed fire protection district is located within more than one (1) county, the county courts shall set the date of the election on the same date and set the places of the election within the proposed fire protection district boundaries.
    4. At the election, the question of establishing and financing the district shall be placed on the ballot in substantially the following form:

“FOR the establishment of a fire protection district in (county), (designated area), and the levy of assessed benefits on real property in the district to finance the district

AGAINST the establishment of a fire protection district in (county), (designated area), and the levy of assessed benefits on real property in the district to finance the district

History. Acts 1979, No. 35, §§ 2, 5; A.S.A. 1947, §§ 20-924, 20-927; Acts 1995, No. 766, § 1; 2005, No. 2145, § 53; 2007, No. 1049, § 75; 2009, No. 1480, § 94.

Amendments. The 1995 amendment rewrote this section.

The 2005 amendment added the subdivision (b)(1), (b)(2)(A), (3) and (4) designations and added (b)(2)(B).

The 2009 amendment substituted “§ 7-11-201 et seq.” for “§ 7-5-103(b)” in (a) and (b)(1).

Case Notes

Notice.

Where there was no prejudice resulting from failure to follow statutory form of notice on support petition circulated for signatures of property owners which would be affected by the creation of a Fire Protection District, election approving the district was upheld. Hannah v. Deboer, 311 Ark. 215, 843 S.W.2d 800 (1992).

14-284-206. Definition of area in petition.

  1. Petitions filed under § 14-284-203 shall specifically define the area proposed to be included in a fire protection district and shall specify the maximum assessed benefits that may be levied against property within the district for the support of the district.
  2. The maximum assessed benefits may be reassessed using the procedures under this subchapter.

History. Acts 1979, No. 35, § 4; A.S.A. 1947, § 20-926; Acts 2015, No. 1234, § 1.

Amendments. The 2015 amendment inserted designation (a); in (a), substituted “under” for “pursuant to” and “that may” for “which may”; and added (b).

14-284-207. Quorum court to establish fire protection service area — Furnishing of maps.

    1. The quorum court of each county wherein is located a fire protection district formed for fire protection purposes shall establish the service area of the fire protection districts to not exceed a radius of five (5) miles from each fire station.
    2. For the purpose of this subsection, five (5) miles means a distance of five (5) miles by straight line, not road or highway miles.
  1. The quorum courts shall furnish the fire protection organizations with a map indicating their service area.

History. Acts 1985, No. 160, § 2; A.S.A. 1947, § 20-925.1; Acts 1991, No. 801, § 1; 1991, No. 958, § 1; 1991, No. 1028, § 1.

14-284-208. Order for establishment — Board of commissioners — Appointment — Compensation.

    1. If at an election a majority of the qualified electors voting on the question vote “FOR” the establishment of the proposed fire protection district and the levy of assessed benefits to support the district or if an ordinance of the quorum court establishing a district is sustained or if the board of commissioners of a suburban improvement district votes unanimously to convert to a fire protection district, the county court shall enter an order establishing the district as described in the petitions or ordinance and shall appoint five (5) qualified electors of the district as a board of commissioners for the district, unless it is otherwise provided for by law.
      1. Two (2) members of the commission shall be appointed for terms of two (2) years and three (3) members of the commission shall be appointed for terms of three (3) years.
      2. All successor members shall be appointed by the county court for terms of three (3) years.
      3. All appointments shall be subject to confirmation by the quorum court of the county.
  1. The members of the boards of commissioners of fire protection districts formed after July 3, 1989, or converted from suburban improvement districts, under this subchapter shall be elected at a public meeting called by the county court. The commissioners shall be elected by the qualified electors residing within the district.
  2. Vacancies occurring on the board because of resignation, removal, or otherwise shall be filled by the county court for the unexpired term.
  3. The members of the board shall serve without compensation but shall be entitled to actual expenses incurred in attending meetings in an amount not to exceed fifty dollars ($50.00) per month for each member of the board as authorized by the quorum court of the county.
  4. Members of the board may be removed from office by the county court for good cause shown.
    1. If the district includes territory from more than one (1) county, the board of commissioners shall be composed of seven (7) members.
    2. The members of the board of commissioners of multicounty fire protection districts formed after July 3, 1995, under this subchapter shall be residents of the fire protection district and elected at a public meeting as agreed upon by the county courts in order to establish the time of the meeting and the place of the meeting being within the district. The commissioners shall be elected by the qualified electors residing within the district.
    3. The members of the board of commissioners shall serve staggered terms.
    4. Vacancies occurring on the board due to resignation, removal, or otherwise shall be filled by the remaining board members for the unexpired term.
        1. Members of the board may be removed by a special election to be held within ninety (90) days after the presentation of a special election removal petition signed by ten percent (10%) of the assessed landowners or the assessed per parcel or per acre owners, with the removal of the board member to be determined by the majority votes of the votes cast in person by the assessed landowners or the assessed per parcel or per acre property owners.
        2. Each assessed landowner or assessed parcel or acre property owner shall have one (1) vote per paid assessment.
      1. The election for the removal of board members shall be held at a meeting at a designated location within the fire protection district.

History. Acts 1979, No. 35, § 6; A.S.A. 1947, § 20-928; Acts 1989, No. 648, § 1; 1991, No. 350, §§ 1, 2; 1995, No. 766, § 2; 1997, No. 323, § 3; 2005, No. 2145, § 54; 2007, No. 1049, § 76; 2009, No. 765, § 1.

A.C.R.C. Notes. As originally amended by Acts 1995, No. 766, § 2, subdivision (f)(3) ended:

“with four (4) members of the initial board serving three (3) years and three (3) members of the initial board serving two (2) years and the term of each initial board member shall be determined by the drawing of straws with the three (3) shortest straws drawn by the initial board members determining their initial term to be two (2) years.”

Publisher's Notes. Acts 1991, No. 350, § 1, provided, in part, that the initial members of the board of commissioners for fire protection districts appointed pursuant to subsection (f) of this section “shall determine their terms by lot so that two (2) members have a term of one (1) year, two (2) members have a term of two (2) years and three (3) members have a term of three (3) years.”

Acts 1991, No. 350, § 2, provided, in part, that the initial term of service of the additional members of the board of commissioners for fire department districts appointed pursuant to subdivision (f)(2) of this section “shall be made in such a manner that the terms of service of at least two (2) commissioners expire each year.”

Amendments. The 1995 amendment substituted “from more than one (1) county” for “from two (2) counties” in (f)(1); deleted former (f)(1)(A)-(C); rewrote (f)(2); and added (f)(3)-(5).

The 1997 amendment, in (a), inserted “or if the board of commissioners of a suburban improvement district votes unanimously to convert to a fire protection district” following “a district is sustained”; added “unless it is otherwise provided for by law” to the end; and made a minor punctuation change; and inserted “or converted from suburban improvement districts” following “districts formed after July 3, 1989” in (b).

The 2005 amendment redesignated former (f)(5)(B) as present (f)(5)(B)(i); and added (f)(5)(B)(ii).

The 2009 amendment inserted “or per-acre” in two places in (f)(5)(A)(i), and inserted “or acre” in (f)(5)(A)(ii).

14-284-209. Board of commissioners — Officers and employees.

  1. The board shall annually choose from among its members a chairman and a secretary-treasurer. The chairman and secretary-treasurer shall furnish bonds, conditioned upon faithful performance of their duties, in the amount of five thousand dollars ($5,000) each. The cost of securing and maintaining the bonds shall be paid from funds of the district.
  2. The board may employ a director and such other employees as it deems necessary to carry out the purposes of the district. Employees of the board shall have such responsibilities and receive such compensation, if any, as may be prescribed by the board.

History. Acts 1979, No. 35, § 7; A.S.A. 1947, § 20-929.

14-284-210. Board of commissioners — Proceedings — Meeting and office space.

  1. The county in which any district is located shall cooperate with and assist the board by providing suitable office space and meeting facilities for the board and its staff if facilities and space are available.
  2. The board shall meet at least quarterly and at such other times as it may deem necessary to properly carry out its responsibilities.
  3. Meetings shall be called by the chairman or a majority of the members of the board.
  4. Three (3) members of the board shall constitute a quorum, and any substantive action of the board shall require an affirmative vote of at least three (3) members.

History. Acts 1979, No. 35, § 8; A.S.A. 1947, § 20-930.

14-284-211. Board of commissioners — Power and authority.

The board of commissioners of any district created pursuant to this subchapter shall have the power and authority to:

  1. Execute contracts and other instruments for and in behalf of the district;
  2. Cooperate with any other fire protection district, municipal fire department, or any political subdivision or agency of this state or the United States in carrying out the purposes of the district;
  3. Establish rules and regulations for the transaction of the district's business and for carrying out the purposes of the district;
  4. Make assessments of benefits against real property in the district benefited by fire protection services of the district and provide for the collection of the assessments;
  5. Issue bonds as provided in this subchapter to finance the district and its purposes. However, districts established by ordinance of the quorum court shall have no authority to issue bonds unless the question is first submitted to and approved by the electors of the district as provided in §§ 14-284-204 and 14-284-205; and
  6. Do any and all other actions necessary or desirable to enable the board to carry out its responsibilities and to accomplish the purposes of the district.

History. Acts 1979, No. 35, § 9; A.S.A. 1947, § 20-931.

14-284-212. Preparation of plans — Assessors and assessments generally.

  1. As soon as is practical after its establishment, the board shall prepare plans for providing fire protection services and for acquiring the property and equipment necessary to carry out the purposes of the district.
  2. They shall thereupon appoint three (3) assessors to assess the annual benefits which will accrue to the real property within the district from the providing of fire protection services and shall fix their compensation. The assessors shall take an oath that they will well and truly assess all annual benefits that will accrue to the protected landowners of the district by the providing of fire protection services.
  3. The assessors shall thereupon proceed to assess the annual benefits to the lands within the district and shall inscribe in a book each tract of land and extend opposite the inscription of each tract of land the amount of annual benefits that will accrue each year to that land by reason of the services.
  4. The original assessment of benefits and any reassessment shall be advertised and equalized in the same manner as provided in this subchapter, and owners of all property whose assessment has been raised shall have the right to be heard and to appeal from the decision of the assessors, as hereinafter provided.
  5. The assessors shall place opposite each affected tract the name of the supposed owner as shown by the last county assessment, but a mistake in the name shall not void the assessment, and the assessors shall correct errors which occur in the county assessment list.
  6. The commissioners shall have the authority to fill any vacancy in the position of assessor, and the assessors shall hold office at the pleasure of the board.
      1. The elected board of commissioners of a fire protection district formed after July 3, 1995, under this subchapter may assess a flat fee per parcel of land or per acre of land located within the district or assess a flat fee per landowner who owns land located within the district, as an alternative to assessing benefits.
      2. The elected board of commissioners of a fire protection district formed after July 3, 1995, under this subchapter may establish a different flat fee for the classification of property as commercial property other than for residential property and a different flat fee for the classification of property as unimproved property.
      3. The elected board of commissioners may determine if a parcel of property or acre is to be classified as commercial, residential, or unimproved property.
      4. If the elected board of commissioners of a fire protection district formed after July 3, 1995, under this subchapter assesses the flat fee per landowner and also establishes different flat fee classifications per parcel or per acre, and if a landowner owns more than one (1) parcel or one (1) acre of property within the fire district with different flat fee classifications, the landowner is to be annually assessed one (1) time the highest flat fee classification assessment.
      1. If the elected board of commissioners of a fire protection district formed after July 3, 1995, under this subchapter assesses an increase in the flat fee per parcel or per acre classification or an increase in the assessment per landowner or an increase in the assessment for both parcel or acre classification and landowner, the increased assessment must be approved in an election by a majority vote of the votes cast in person by the assessed landowners or the assessed per parcel or per acre property owners.
      2. The election called by the elected board of commissioners for an increase in the flat fee assessment shall be held within ninety (90) days after the board of commissioners' meeting that approves the assessment increase.
      3. Notice of the election must be published at least three (3) times by insertion in a newspaper of general circulation within the fire protection district and by a public notice posted at the fire stations within the fire protection district.
      4. The election for the assessment increase shall be held at a designated location within the fire protection district.
      5. Each assessed landowner or assessed parcel or acre property owner shall have one (1) vote per paid assessment.
        1. On and after March 6, 2015, the elected board of commissioners of a fire protection district shall assess timberland at a rate not to exceed twenty-five percent (25%) of the forest fire protection tax under § 26-61-103.
        2. The current assessment rate on timberland in effect on March 6, 2015, may stay the same but shall not be increased beyond the rate under this subdivision (g)(3).
      1. As used in this section, “timberland” means the same as defined in § 26-61-102.

History. Acts 1979, No. 35, § 10; A.S.A. 1947, § 20-932; Acts 1989, No. 648, § 2; 1995, No. 766, § 3; 2009, No. 765, § 2; 2015, No. 346, § 1.

Amendments. The 1995 amendment rewrote (g); and made stylistic changes.

The 2009 amendment inserted “or per acre of land” and inserted “as an alternative to assessing benefits” in (g)(1)(A), inserted “or acre” in (g)(1)(C), (g)(2)(A), and (g)(2)(E), inserted “or per acre” and “or one (1) acre” in (g)(1)(D), inserted “or per acre” in two places in (g)(2)(A), and made a minor stylistic change.

The 2015 amendment added (g)(3).

Case Notes

Flat Tax.

Where the county ordinance does not provide for an assessment of benefits and a corresponding tax and instead provides a flat tax rate, the ordinance is clearly contrary to this section and must be voided. Cox v. Commissioners of Maynard Fire Improv. Dist. No. 1, 287 Ark. 173, 697 S.W.2d 104 (1985).

14-284-213. Assessments — Notice and hearing.

  1. The assessment or reassessment shall be filed with the county clerk of the county, and the secretary of the board shall thereupon give notice of its filing by publication once a week for two (2) weeks in a newspaper having a bona fide circulation in the county. This notice may be in the following form:
  2. On the day named by the notice, it shall be the duty of the assessors to meet as a board of assessors at the place named to hear all complaints against the assessment or reassessment and to equalize and adjust the same. Their determination shall be final unless suit is brought in the chancery court within thirty (30) days to review it. If the board is unable to hear all complaints between the hours designated, they shall adjourn over from day to day until all parties have been heard.

“Notice is hereby given that the assessment of annual benefits of District Number has been filed in the office of the County Clerk of County, where it is open for inspection. All persons wishing to be heard on said assessment will be heard by the assessors of said district in the office of the County Clerk between the hours of 1 p.m. and 4 p.m., at , on the day of , 19 ”

Click to view form.

History. Acts 1979, No. 35, § 11; A.S.A. 1947, § 20-933.

14-284-214. Assessments — Annual reassessments.

  1. The board of commissioners shall once a year order the assessors to reassess the annual benefits of protected property in the fire protection district if there have been improvements made or improvements destroyed or removed from one (1) or more tracts of land in the fire protection district, making it necessary to have the annual benefits revised.
      1. Whereupon, it shall be the duty of the assessors to reassess the benefits of the fire protection district, and the annual benefits assessed may be raised or lowered as fire protection services benefiting the property change.
      2. If the annual benefits assessed exceed one hundred dollars ($100) per parcel, the quorum court of the county in which the fire protection district lies shall review and approve or disapprove the reassessment.
    1. If the board of commissioners determines that there have been no significant changes in improvements on the lands in the fire protection district, the board of commissioners may direct that assessed benefits remain the same as the benefits assessed the preceding year.

History. Acts 1979, No. 35, § 12; A.S.A. 1947, § 20-934; Acts 2019, No. 1077, § 4.

Amendments. The 2019 amendment added (b)(1)(B) and redesignated former (b)(1) as (b)(1)(A); inserted “board of” in (a); inserted “fire protection” twice in (a), in (b)(1)(A), and in (b)(2); and in (b)(2), substituted “board of commissioners determines” for “commissioners determine”, and substituted “fire protection district, the board of commissioners” for “district, they”.

14-284-215. Assessments — Filing and collection.

  1. The original benefit assessment or flat fee assessment or any reassessment shall be filed with the county clerk of each county within which the district is located, and it shall be the duty of the county clerk to extend the annual benefit assessment or flat fee assessment annually upon the tax books of each county for the property within the fire protection district as located within that county until the district is dissolved.
  2. It is the duty of the collector each year to collect the annual benefit assessment, flat fee assessment, or reassessment so extended, along with the other taxes.
    1. The collector shall deduct three percent (3%) of the assessments collected, shall retain one-half (½) thereof as his fee for collecting the benefits, and shall pay over the remaining one-half (½) of this amount to the clerk of the county, or to the appropriate county official who extended the assessment, as his fee for extending the assessments on the assessment records.
    2. The collector shall remit the remainder of the assessments collected to the secretary-treasurer of the district at the same time the collector remits tax collections to the county treasurer.
    3. Upon receipt of the assessed benefits, the secretary-treasurer of the district shall execute a receipt for the funds, deliver it to the county collector, and shall deposit the funds so received in a bank or banks that are located within the district or a bank or banks designated by the board of commissioners if no bank or banks are located within the district, with said funds to be used solely and exclusively for district purposes.
    1. If there is any change in the annual assessments, a certified copy of the revised assessment shall be filed with the county clerk, who shall extend the revised assessment annually upon the tax books until a new assessment is made, which shall be extended upon the tax books in like manner. The power to reassess and extend the assessment upon the tax books shall be a continuing power as long as the district continues to exist. It shall be the duty of the county collector to collect the taxes so extended.
    2. In lieu of filing the reassessment, the assessors may make the changes in the assessment in red ink on the assessment already on file, or the assessment record may contain many columns, at the head of which the year shall be designated, and, in the corresponding column, the new annual assessment may be shown in red ink which will indicate any increase or decrease in the original annual assessment extended. When the change is made, a red ink line shall be drawn through the figures showing the previous annual assessment extended.

History. Acts 1979, No. 35, § 13; A.S.A. 1947, § 20-935; Acts 1993, No. 811, § 1; 1995, No. 766, § 4.

Publisher's Notes. Acts 1993, No. 811, § 2 provided:

“The provisions of this act shall be in effect on and after December 31, 1993.”

Amendments. The 1993 amendment, in (b)(1), substituted “three percent (3%)” for “one percent (1%)” and added “or to the appropriate county official who extended the assessment”.

The 1995 amendment rewrote this section.

14-284-216. Assessments — Time for payment — Failure to pay.

      1. All annual assessments extended and levied under this subchapter are payable at the time ad valorem real property taxes are payable.
      2. The county shall list the fire protection district assessments as an involuntary collection beginning with the next ad valorem real property tax statement.
    1. A property owner shall pay the assessments under this subchapter as a prerequisite to paying his or her ad valorem real property taxes.
    2. The collector shall report delinquent assessments annually to the board of commissioners of the fire protection district for informational purposes.
      1. The collector shall add to the amount of the delinquent assessment a penalty of ten percent (10%) and shall collect the delinquent assessment in the same manner as delinquent ad valorem real property taxes.
        1. The collector may certify delinquent assessments for collection after January 1 each year.
        2. A delinquent assessment that existed before January 1, 2020, is deemed uncollectible.
  1. The board of commissioners shall enforce the collection by proceedings in the circuit court of the county in the manner provided by §§ 14-121-426 — 14-121-432.
    1. The collector may retain in reserve up to ten percent (10%) of monthly remittances to a fire protection district for a period of no more than sixty (60) days.
    2. The reserve shall be refunded at the end of the sixty (60) days without interest, and the reserve fund may accompany a dues remittance payment.

History. Acts 1979, No. 35, § 14; A.S.A. 1947, § 20-936; 1995, No. 766, § 5; 2011, No. 264, § 1; 2019, No. 1077, § 5.

Amendments. The 1995 amendment substituted “assessments” for “benefits” in (a); and made stylistic changes.

The 2011 amendment subdivided (a) into (a)(1) and (2); added (a)(3) and (4); in (a)(2), substituted “of commissioners under” for “pursuant to” and deleted “but the collector shall report the delinquencies to the board of commissioners, who shall add to the amount of the annual assessment a penalty of ten percent (10%)” at the end; in (b), deleted “chancery” following “collection by” and substituted “circuit” for “chancery”; and added (c).

The 2019 amendment rewrote (a).

14-284-217. Expenditures — Public proceedings and transactions — Filing of report.

  1. Funds of the district shall be expended only upon the order of the board and upon a voucher check signed by the chairman and secretary-treasurer of the board. Every voucher check shall state upon its face to whom it is payable, the amount, and the purpose for which it is used. All voucher checks shall be dated and shall be numbered consecutively in a record to be kept by the board of the number and amount of each.
  2. All proceedings and transactions of the board shall be a matter of public record and shall be open to the inspection of the public.
  3. The board shall file with the county clerk in January of each year a certified itemized report showing all moneys received, the date of receipt, and the source from which received. The report shall further show all moneys paid out, the date paid, to whom paid, and for what purpose during the preceding year, together with an itemized list of all delinquent taxes, showing the owner, a description of the property, the years for which taxes are delinquent, and the amount of total delinquency.

History. Acts 1979, No. 35, § 15; A.S.A. 1947, § 20-937.

14-284-218. Bonds and certificates of indebtedness generally.

  1. The board of any fire protection district established pursuant to a vote of the electors as authorized in this subchapter, and the board of any fire protection district established by ordinance of the quorum court when so authorized by a vote of electors in the district as authorized in this subchapter, and the board of fire protection district converted from a suburban improvement district shall have the authority to issue negotiable bonds or certificates of indebtedness to secure funds for the expenses of the district, including office supplies and salaries and the purchase of land, buildings, equipment, facilities, chemicals, and such other items as may be necessary to carry out the purposes of the district.
    1. Bonds issued by the board shall be for a term of not more than twenty (20) years.
    2. To secure the bonds, the board may pledge all or a portion of the benefits assessed against benefited real property in the district.
  2. Bonds of the district shall be authorized by resolution of the board and may be coupon bonds, payable to bearer, or may be registrable as to principal only or as to principal and interest, and may be made exchangeable for bonds of another denomination, may be in such form and denomination, may have such date or dates, may be stated to mature at such times, may bear interest payable at such times and at such rate or rates, may be payable at such places within or without the State of Arkansas, may be made subject to such terms of redemption in advance of maturity at such prices, and may contain such terms and conditions, all as the board shall determine. The bonds shall have all the qualities of negotiable instruments under the laws of the State of Arkansas, subject to provisions as to registration, as set forth above.
    1. The authorizing resolution may contain any of the terms, covenants, and conditions that are deemed desirable by the board, including, without limitation, those pertaining to the maintenance of various funds and reserves, the nature and extent of the security, the issuance of additional bonds and the nature of the lien and pledge, whether parity or priority, in that event, the custody and application of the proceeds of the bonds, the collection and disposition of revenues, the investing and reinvesting in securities specified by the board of any moneys during periods not needed for authorized purposes, and the rights, duties, and obligations of the district, the board, and the holders and registered owners of the bonds.
    2. The authorizing resolution may provide for the execution by the district of a trust indenture with a bank or trust company within or without the State of Arkansas. The trust indenture may contain any terms, covenants, and conditions that are deemed desirable by the board, including, without limitation, those pertaining to the maintenance of various funds and reserves, the nature and extent of the security, the issuance of additional bonds and the nature of the lien and pledge, whether parity or priority, in that event, the custody and application of the proceeds of the bonds, the collection and disposition of assessments and of revenues, the investing and reinvesting, in securities specified by the board, of any moneys during periods not needed for authorized purposes, and the rights, duties, and obligations of the board and the holders and registered owners of the bonds.
  3. The bonds shall be sold at public sale on sealed bids or may be sold and negotiated in any market either at a public or private sale, as may be determined by the board.
    1. If the bonds are sold at public sale on sealed bids, notice of the sale shall be published one (1) time a week for at least two (2) consecutive weeks in a newspaper having a general circulation throughout the State of Arkansas, with the first publication to be at least twenty (20) days prior to the date of sale, and may be published in such other publications as the director may determine.
    2. The bonds may be sold at such price as the board may accept, including sale at a discount.
    3. The award, if made on sealed bids, shall be to the bidder whose bid results in the lowest net interest cost.
    1. The bonds shall be executed by the manual signature of either the chairman or secretary-treasurer of the board or by the manual signature of an officer of the trustee for the bonds if the trustee certifies in writing to the authenticity of the bonds. The coupons attached to the bonds shall be executed by the facsimile signature of the chairman of the board.
    2. In case any of the officers whose signatures appear on the bonds or coupons shall cease to be officers before the delivery of the bonds or coupons, their signatures shall, nevertheless, be valid and sufficient for all purposes.
  4. The district shall adopt and use a seal in the execution and issuance of the bonds, and each bond shall be sealed with the seal of the district.

History. Acts 1979, No. 35, § 16; 1981, No. 425, § 29; A.S.A. 1947, § 20-938; Acts 1997, No. 323, § 4.

Amendments. The 1997 amendment, in (a), inserted “and the board of fire protection district converted from a suburban improvement district” preceding “shall have the authority,” and made a minor punctuation change.

14-284-219. Bonds — Security — Liability of board for bonds and contracts.

  1. It shall be plainly stated on the face of each bond that it has been issued under the provisions of this subchapter, that the bonds shall be obligations only of the district, and that in no event shall they constitute any indebtedness for which the faith and credit of the state or any county or municipality, or any of the revenues of the state or any county or municipality, are pledged.
  2. No member of the board shall be personally liable on the bonds or for any damages sustained by anyone in connection with any contracts entered into in carrying out the purposes and intent of this subchapter unless he shall have acted with corrupt intent.
    1. The principal of, interest on, and paying agent's fees in connection with the bonds shall be secured by a lien on and pledge of, and shall be payable from, the assessments levied against the benefited real property within the district.
    2. The right to issue subsequent issues of bonds, if the district so determines, can be reserved in any authorizing resolution or trust indenture on either a parity or subordinate lien basis and upon such terms and conditions as the district may determine and specify in the particular authorizing resolution or trust indenture.

History. Acts 1979, No. 35, § 17; A.S.A. 1947, § 20-939.

14-284-220. Bonds — Refunding of obligations.

  1. Bonds may be issued for the purpose of refunding any bonds issued under this subchapter.
  2. Refunding bonds may be either sold or delivered in exchange for the bonds being refunded.
  3. If sold, the proceeds may be either applied to the payment of the bonds being refunded or deposited in trust and there maintained in cash or investments for the retirement of the bonds being refunded, as shall be specified by the district in the resolution or trust indenture securing the bonds.
  4. The resolution or trust indenture securing the refunding bonds may provide that the refunding bonds shall have the same priority on assessments or revenues pledged for their payment as was enjoyed by the bonds refunded.
  5. Refunding bonds shall be sold and secured in accordance with the provisions of this subchapter pertaining to the sale and security of the bonds initially issued.

History. Acts 1979, No. 35, § 18; A.S.A. 1947, § 20-940.

14-284-221. Bonds — Tax exemption.

Bonds issued under the provisions of this subchapter and the interest thereon shall be exempt from all state, county, and municipal taxes, including ad valorem, income, inheritance, and estate taxes.

History. Acts 1979, No. 35, § 19; A.S.A. 1947, § 20-941.

14-284-222. Dissolution.

  1. A fire protection district created pursuant to this subchapter may be dissolved upon a vote of a majority of qualified electors of the district, and the question of dissolution of the district may be submitted to the electors in the same manner as is prescribed in this subchapter for submitting the question of the establishment of the district.
  2. However, if any district having outstanding bonds or other indebtedness is dissolved, the assessed benefits being levied at the time of dissolution shall continue to be levied and collected until the outstanding bonds or other indebtedness are paid.
  3. No election on the question of dissolution of a fire protection district may be held within the first three (3) years after the establishment of the district.

History. Acts 1979, No. 35, § 20; A.S.A. 1947, § 20-942.

14-284-223. Authority to contract with other governmental entities to provide fire protection services.

Fire protection improvement districts or fire protection districts organized under this subchapter are authorized to contract with a city, town, or county, the state, the federal government, or an existing fire protection improvement district or fire protection district for the provision of fire protection services.

History. Acts 1983, No. 500, § 1; A.S.A. 1947, § 20-949.

14-284-224. Petition to annex territory to an existing district — Special election.

      1. When petitions are filed with the board of commissioners of a fire protection district created pursuant to this subchapter containing the signatures of at least ten percent (10%) of qualified electors of a portion of the unincorporated area of the county, as determined by the number of votes cast by the qualified electors of that portion of the county for all candidates for Governor at the last preceding general election, requesting the annexation of the territory to an existing fire protection district created under this subchapter and requesting that assessed benefits be made on the property located within the area to be annexed to help finance the operation of the district, the board of commissioners shall conduct a public hearing on the petition.
      2. If the board determines the annexation to be desirable, the board shall notify the quorum court, and the quorum court may at its discretion call a special election within the area of the existing fire protection district and the area proposed to be annexed to determine whether the annexation should occur.
    1. No annexation shall occur except pursuant to an election under subsection (b) of this section or by ordinance under subsection (d) of this section.
    1. The special election called by the quorum court to submit the question of the annexation and financing of the fire protection district to the electors of the district and the area to be annexed shall be held no later than ninety (90) days after the proclamation of a special election in accordance with § 7-11-201 et seq.
    2. At the election, the question of annexing the area to the district and the financing of the district shall be placed on the ballot in substantially the following form:
  1. If a majority of those voting at the election who reside within the area to be annexed and a majority of those voting at the election who reside within the existing district vote in favor of the annexation, the area shall be deemed annexed and shall become a part of the fire protection district and governed accordingly.
    1. As an alternative to an election on the annexation issue, if the board of commissioners of a fire protection district is in favor of the annexation, the board may refer the petitions to the county quorum court that may then accomplish the annexation by enactment of a county ordinance providing for the annexation.
        1. However, the ordinance shall not go into effect until sixty (60) days after its enactment.
        2. During that time, if petitions calling for a referendum on the ordinance are presented to the quorum court and the petitions are signed by the number prescribed in subsection (a) of this section, the quorum court shall call a special election in accordance with § 7-11-201 et seq. on the issue of the annexation.
      1. The election shall be conducted as prescribed in subsection (b) of this section.
      2. Unless at least a majority of those voting at the election who reside within the area to be annexed and a majority of those voting at the election who reside within the existing district vote in favor of the annexation, the annexation shall not occur.
    2. If the petitions are filed within sixty (60) days after enacting the ordinance, the ordinance shall not go into effect until and unless the annexation is approved at the election provided for in this section.
  2. An attempt at annexation under this section, whether successful or not, shall in no way reduce the bonding authority of the fire protection district, nor shall the failure of the attempt at annexation have any effect on the existing fire protection district.
  3. No area shall be annexed under this section if it is located within the service area of another fire protection district or a nonprofit fire protection corporation.

“FOR the annexation of (description of area to be annexed), and the levy of assessed benefits on real property within the area to be annexed to help finance the district

AGAINST the annexation of (description of area to be annexed), and the levy of assessed benefits on real property within the area to be annexed to help finance the district

History. Acts 1991, No. 1028, § 2; 2005, No. 2145, § 55; 2007, No. 1049, § 77; 2009, No. 1480, § 95.

Amendments. The 2005 amendment added the (b)(1)(A) designation and added (b)(1)(B).

The 2009 amendment substituted “§ 7-11-201 et seq.” for “§ 7-5-103(b)” in (b)(1) and (d)(2)(A)(ii).

14-284-225. Assessment — When annexed into a municipality.

No property located within the bounds of a municipality shall be assessed, taxed, or required to pay fees to any fire protection district after March 29, 1995, unless:

  1. There is a mutual, formal agreement between the municipality and the fire protection district to provide fire protection services to the property; or
  2. Bonded indebtedness for fire protection equipment or facilities was incurred by the fire protection district prior to the date of annexation of such property and the indebtedness incurred before annexation has not been retired.

History. Acts 1995, No. 828, § 1.

14-284-226. Conversion to fire protection district.

  1. The governing body of a fire department that seeks to become a fire protection district shall make the request by petition to the quorum court of the county, or counties if the fire department serves more than one (1) county.
      1. Upon the request by petition in subsection (a) of this section, the quorum court shall grant the petition to convert the fire department to a fire protection district within sixty (60) days of receipt of the petition.
      2. The quorum court shall respond in writing to the fire department within the sixty-day period under subdivision (b)(1)(A) of this section if there are issues or questions the quorum court would like addressed in the petition, but in no event shall the quorum court delay the sixty-day period under subdivision (b)(1)(A) of this section.
    1. The fire protection district assessments shall be listed annually beginning with the next ad valorem real property tax statement and collected under § 14-284-216.

History. Acts 2017, No. 703, § 1; 2019, No. 1077, § 6.

Amendments. The 2019 amendment added “The governing body of” in (a); and rewrote (b).

Subchapter 3 — Rural Fire Protection Service

Effective Dates. Acts 1979, No. 36, § 7: Feb. 2, 1979. Emergency clause provided: “It is hereby found and determined by the General Assembly that large areas of this State are without fire protection and this poses a constant threat and peril to the property, lives, and safety of thousands of citizens of this State who live in rural areas or small cities and towns which are without adequate fire protection, and that the immediate passage of this Act is necessary to establish a program whereby the State Forestry Department may establish a Rural Fire Protection Service and provide leadership for the establishment of fire protection services in rural areas and small cities and towns which do not have full-time organized fire departments, and to implement a program of converting surplus vehicles into firefighting equipment to be made available to said communities, and to make loan funds available to assist said communities in obtaining the necessary firefighting equipment, and that the immediate passage of this Act is necessary to accomplish said purposes and to protect and preserve the lives, safety, and property of citizens of this State. Therefore, an emergency is hereby declared to exist, and this Act, being necessary for the immediate preservation of the public peace, health, and safety, shall be in full force and effect from and after its passage and approval.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

14-284-301. Definition.

As used in this subchapter, unless the context otherwise requires, the term “rural fire protection district” shall include any city or town which does not have a full-time organized fire department or in which seventy-five percent (75%) or more of the fire fighters employed by the fire department are volunteer fire fighters.

History. Acts 1979, No. 36, § 1; A.S.A. 1947, § 20-944.

14-284-302. Applicability.

The benefits of the provisions of this subchapter shall be available to rural fire protection districts and services operated not-for-profit providing fire protection services to property owners in areas outside the limits of incorporated cities or towns and to areas partially or totally within the boundaries of cities or incorporated towns in this state which do not have a full-time organized fire department or in which seventy-five percent (75%) or more of the fire fighters employed by the fire department are volunteer fire fighters.

History. Acts 1979, No. 36, § 1; A.S.A. 1947, § 20-944.

14-284-303. Establishment.

  1. There is established within the Arkansas Forestry Commission a Rural Fire Protection Service, which shall be assigned to separate divisional status or as a program or section within an existing division of the Arkansas Forestry Commission, as determined by the Arkansas Forestry Commission.
  2. The Arkansas Forestry Commission shall provide, through the Rural Fire Protection Service, a program designed to encourage and aid localities in the establishment, development, and operation of fire protection districts and programs in rural areas which do not have available the benefits of an organized or voluntary fire fighting service and to assist existing organized or volunteer fire fighting services.

History. Acts 1979, No. 36, § 1; A.S.A. 1947, § 20-944.

14-284-304. Powers and duties.

The Rural Fire Protection Service of the Arkansas Forestry Commission shall have the following powers, functions, and duties to be performed under appropriate policies and rules promulgated by the Arkansas Forestry Commission:

  1. To develop rural fire protection plans for the providing of fire protection services in the various rural areas of this state which do not have available the benefits or services of an organized or voluntary firefighting program, and to assist existing organized or volunteer firefighting services;
  2. To encourage the establishment of rural fire protection districts and to promulgate reasonable and necessary rules that rural communities must meet in order to become eligible to secure firefighting vehicles and equipment through the Arkansas Forestry Commission;
  3. To cooperate with and assist the Arkansas Fire Training Academy in developing training programs designed to instruct and train firefighters employed or used by rural fire protection districts in the suppression of fires, and to especially establish training programs designed to prepare rural firefighters in the methods of handling firefighting problems encountered in rural areas;
  4. To provide leadership and to cooperate with the Division of Emergency Management, the State Fire Marshal's office, and the Arkansas Fire Training Academy in coordinating the efforts of these agencies with the efforts and services of rural fire protection districts for the purpose of coordinating and making maximum use of the services and resources of this state in providing rural fire protection services in this state;
  5. To establish a program to obtain by acquisition, donation, transfer, loan, or purchase, vehicles and other properties which are suitable for repair, refurbishing, and renovation, to be used as fire trucks or other firefighting equipment, and to acquire the necessary tanks, pumps, water hoses, and other equipment to convert and adapt the equipment for firefighting purposes, and to make the equipment available to rural fire protection districts, under appropriate rules and eligibility standards promulgated by the Arkansas Forestry Commission, to be used by rural fire protection districts in the suppression of fires;
  6. To provide technical assistance and guidance to rural fire protection districts, to cooperate with and assist persons interested in the creation of the districts in the collection of data and providing other resources or technical assistance to aid rural property owners in efforts to establish rural fire protection services, and to provide technical advice and assistance to rural fire protection districts to enable the districts to obtain and operate the necessary equipment and training and operating procedures to function efficiently as a rural fire protection district;
  7. To contract with public and private sources, including the Division of Correction, for providing mechanical, painting, body work, or other repair services relative to the conversion, painting, and adaptation of vehicles being converted into fire protection vehicles, and to reimburse for the cost of the services;
  8. To promulgate appropriate rules and forms for the administration of the Rural Fire Protection Revolving Fund, which shall consist of moneys made available for it to be used by the Arkansas Forestry Commission in defraying the initial cost of equipment, repair, furnishing, and adaptation of vehicles as fire trucks, or other firefighting equipment, with the cost to be reimbursed to the Arkansas Forestry Commission upon the vehicle's being made available to a rural fire protection district or similar rural firefighting agency which operates not for profit, and, in addition, to make loans, as provided in this subchapter, to rural fire protection districts to provide a portion of the moneys required to enable the districts to acquire vehicles and equipment from the Arkansas Forestry Commission; and
  9. To perform such other functions and duties which may be necessary to enable the Arkansas Forestry Commission to provide a program of comprehensive services to encourage the development and availability of rural fire protection services throughout this state.

History. Acts 1979, No. 36, § 2; A.S.A. 1947, § 20-945; Acts 1993, No. 1095, § 1; 1999, No. 646, § 55; 2015, No. 697, § 1; 2019, No. 315, § 1042; 2019, No. 910, § 847.

Publisher's Notes. Acts 1999, No. 646, § 1, provided: “The State Office of Emergency Services shall hereafter be known as the ‘Arkansas Department of Emergency Management’. Any provisions of the Arkansas Code not corrected by this act shall be corrected by the Arkansas Code Revision Commission to reflect the title ‘Arkansas Department of Emergency Management’ instead of ‘State Office of Emergency Services’ or any similar titles that now apply to the State Office of Emergency Services.”

Amendments. The 1993 amendment substituted “Arkansas Fire Training Academy” for “State Fire Training Academy” in (3) and (4); substituted “by acquisition, donation, transfer, loan, or purchase” for “federal surplus” in (5); deleted “surplus” following “and adaptation of” in (7) and (8); and made other minor changes.

The 1999 amendment substituted “Arkansas Department of Emergency Management” for “Office of Emergency Services of this state” in (4).

The 2015 amendment, in (7), inserted “public and private sources including” and deleted “the Department of Correction” following “reimburse.”

The 2019 amendment by No. 315 substituted “policies and rules” for “policies, rules, and regulations” in the introductory language; deleted “and regulations” following “rules” in (2) and (5); and deleted “regulations” following “rules” in (8).

The 2019 amendment by No. 910 substituted “Division of Correction” for “Department of Correction” in (7).

14-284-305. Rural Fire Protection Revolving Fund generally.

  1. There is created and established on the books of the Treasurer of State, the Auditor of State, and the Department of Finance and Administration the “Rural Fire Protection Revolving Fund”, into which shall be transferred or deposited the moneys to be provided by law for the fund, to be used as a revolving fund by the Arkansas Forestry Commission for:
    1. The acquisition by the Arkansas Forestry Commission of vehicles and for the payment of charges for labor, equipment, and materials necessary to convert the vehicles into firefighting vehicles suitable for rural fire protection service, and to make reimbursement to the fund upon making the vehicles available to rural fire protection districts, as provided by law; and
      1. Making loans to rural fire protection districts which apply therefor and which are qualified under rules promulgated by the Arkansas Forestry Commission as qualified rural fire protection districts.
      2. The loans shall be used by qualified rural fire protection districts to provide moneys required to pay not more than seventy-five percent (75%) of the cost of acquiring, repairing, renovating, or equipping firefighting vehicles which have been converted and adapted by the Arkansas Forestry Commission for rural fire protection use.
      3. However, the moneys loaned to a rural fire protection district from the fund shall be used exclusively to defray a portion of the cost of acquiring the firefighting equipment from the Arkansas Forestry Commission.
      4. The Arkansas Forestry Commission may establish a reasonable rate of interest to be charged on loans made from the revolving fund.
  2. All revenues received by the Arkansas Forestry Commission from the furnishing of firefighting vehicles or equipment to rural fire protection districts, or to other eligible nonprofit organizations which are eligible to purchase the equipment from the Arkansas Forestry Commission, and all moneys received by the Arkansas Forestry Commission upon repayment of loans made from the fund shall be deposited into the State Treasury as nonrevenue receipts and shall be credited by the Treasurer of State to the fund, to be used for the purposes of the fund as set forth by law.

History. Acts 1979, No. 36, § 4; A.S.A. 1947, § 20-947; Acts 1993, No. 1095, § 2; 2019, No. 315, § 1043.

Amendments. The 1993 amendment, in (a)(1), deleted “surplus” following “Arkansas Forestry Commission of” and deleted “surplus” following “necessary to convert the”; added “acquiring” in (a)(2)(A); and made minor punctuation changes.

The 2019 amendment deleted “and regulations” following “rules” in the introductory language of (a)(2) [now (a)(2)(A)].

14-284-306. Acquisition and renovation of equipment.

  1. The Arkansas Forestry Commission may provide through existing facilities, or such expanded facilities as may be required therefor, a program of acquisition of vehicles which are suitable for conversion to fire fighting equipment, and may repair, refinish, and equip the vehicles for use as fire fighting equipment, including the acquisition and furnishing of tanks, pumps, hoses, and other equipment necessary for fire fighting purposes, and, upon renovation thereof, may make them available to a rural fire protection district or other rural fire protection district or service which operates not for profit, and recover the cost of acquisition and repair or refurbishing of the vehicle, plus a nominal charge to cover departmental overhead for the services performed.
  2. All moneys acquired from the recovery of the cost of the fire fighting equipment by the Arkansas Forestry Commission shall be deposited as nonrevenue receipts in the Rural Fire Protection Revolving Fund in the State Treasury.

History. Acts 1979, No. 36, § 3; A.S.A. 1947, § 20-946; Acts 1993, No. 1095, § 3.

Amendments. The 1993 amendment deleted “surplus” following “a program of acquisition of” in (a); and made other minor changes.

14-284-307. Loans for purchase of vehicles and equipment.

  1. Rural fire protection districts organized under the laws of this state which operate not-for-profit or any other rural fire protection agency, service, or program which provides rural fire protection to its members or to the public not-for-profit shall be eligible to purchase firefighting vehicles and equipment from the Arkansas Forestry Commission, if the vehicles and equipment are available, to be used for rural fire protection services.
  2. The Arkansas Forestry Commission may make loans to eligible rural fire protection districts and other qualified districts, services, or programs which provide fire protection to rural areas not-for-profit, who may apply to the Arkansas Forestry Commission, upon forms and in accordance with rules promulgated by the Arkansas Forestry Commission, for loans not to exceed seventy-five percent (75%) of the cost of acquiring rural fire protection vehicles or equipment.
  3. The loans shall be for such period as may be approved by rule of the Arkansas Forestry Commission, and in no event may any loan be for more than three (3) years.
  4. The Arkansas Forestry Commission is authorized to establish a system of priorities for determining eligibility for the acquisition of firefighting vehicles renovated by the department which are available for sale to rural fire protection districts and may also establish a system of priorities for eligibility for loans from the Rural Fire Protection Revolving Fund for a portion of the moneys needed to acquire the vehicles by rural fire protection districts.

History. Acts 1979, No. 36, § 5; A.S.A. 1947, § 20-948; Acts 1993, No. 1095, § 4; 2019, No. 315, § 1044.

Amendments. The 1993 amendment substituted “three (3)” for “two (2)” in (c).

The 2019 amendment deleted “and regulations” following “rules” in (b); and substituted “rule” for “regulation” in (c).

Subchapter 4 — Insurance Premium Taxes

A.C.R.C. Notes. References to “this subchapter” in §§ 14-284-40114-284-409 and 14-284-411 may not apply to § 14-284-410 which was enacted subsequently.

Effective Dates. Acts 1992 (1st Ex. Sess.), No. 10, § 14: Mar. 4, 1992. Emergency clause provided: “It is hereby found and determined by the Seventy-Eighth General Assembly, meeting in First Extraordinary Session, that an appropriation to the Department of Finance and Administration is necessary in order to disburse funds collected after January 1, 1992, under the provisions of Arkansas Code §§ 14-284-401 et seq. and § 26-57-614, and that the creation of the Fire Protection Premium Tax Fund will allow those monies to be disbursed for the provision of adequate fire protection services in the most efficient manner. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Cross References. Dues for volunteer fire departments, § 14-20-108.

14-284-401. Legislative findings.

It is hereby found and determined by the General Assembly of the State of Arkansas that additional funding is needed to improve the fire protection services in this state. It is further found and determined that the public policy of this state is to provide adequate fire protection services for property of citizens through the use of properly trained and equipped fire fighters, and that the provisions of § 26-57-614 and this subchapter, are necessary in furtherance of the public health and safety.

History. Acts 1991, No. 833, § 1.

Publisher's Notes. Acts 1991, No. 833, § 1 is also codified as § 26-57-614(a).

14-284-402. Construction.

The provisions of § 26-57-614 and this subchapter are intended to be supplemental to current provisions of Arkansas law, and shall not be construed as repealing or superseding any other laws applicable thereto.

History. Acts 1991, No. 833, § 8.

Publisher's Notes. Acts 1991, No. 833, § 8 is also codified as § 26-57-614(f).

14-284-403. Apportionment of funds.

    1. These premium tax moneys are assessed for disbursement from the Fire Protection Premium Tax Fund, § 19-6-468, by the Department of Finance and Administration to the counties in the following percentages:
      1. The moneys shall be apportioned by each quorum court to the districts and municipalities within the county based upon population unless the county intergovernmental cooperation council notifies the quorum court of the fire protection needs of the districts and municipalities, in which case the moneys shall be apportioned by the quorum court based on those needs.
      2. The moneys shall be distributed to municipalities and those certified departments in districts that are in compliance with this subchapter, § 20-22-801 et seq., and § 6-21-106.
      3. Fire departments that are not certified by the Office of Fire Protection Services under § 20-22-801 et seq. shall also be eligible to receive moneys disbursed under this section so long as all moneys received are spent directly on equipment, training, capital improvements, insurance for buildings, utility costs, or other expenditures necessary for upgrading the service provided by the department.
        1. An inactive fire department, as determined by the county judge, is not eligible to receive moneys disbursed under this section.
        2. Any moneys allocated by the county intergovernmental cooperation council and any moneys that would have been apportioned to an inactive fire department based upon population shall be disbursed by the quorum court to the active departments based upon fire protection needs.
        3. If a quorum court has passed a resolution that reallocates the moneys remaining after the disbursement of moneys under this section, then the moneys shall be reallocated based upon the quorum court resolution.
  1. Disbursements shall be made on forms prescribed by the Department of Finance and Administration.
  2. A county treasurer shall not collect the treasurer's commission provided in § 21-6-302 on any of the premium tax moneys disbursed from the Fire Protection Premium Tax Fund.
  3. Premium tax moneys are state moneys and are only pass-through moneys for county government not subject to county appropriation or county claims processes.
    1. There is created in each county a fund in the office of the county treasurer to be known as the “county fire protection premium tax fund”.
    2. Premium tax moneys received by the county treasurer shall be credited to the county fire protection premium tax fund and disbursed by the county treasurer to the appropriate fire department based on the apportionment by the quorum court under subdivision (a)(2)(A) of this section.

Arkansas County — 0.78%, Ashley County — 1.39%, Baxter County — 1.78%, Benton County — 3.86%, Boone County — 1.46%, Bradley County — 0.52%, Calhoun County — 0.51%, Carroll County — 0.97%, Chicot County — 0.51%, Clark County — 1.13%, Clay County — 1.10%, Cleburne County — 1.11%, Cleveland County — 0.66%, Columbia County — 1.24%, Conway County — 1.04%, Craighead County — 2.91%, Crawford County — 1.98%, Crittenden County — 1.32%, Cross County — 0.84%, Dallas County — 0.45%, Desha County — 0.71%, Drew County — 0.80%, Faulkner County — 2.30%, Franklin County — 0.97%, Fulton County — 0.84%, Garland County — 3.12%, Grant County — 1.13%, Greene County — 1.39%, Hempstead County — 1.89%, Hot Spring County — 1.46%, Howard County — 0.75%, Independence County — 1.90%, Izard County — 0.91%, Jackson County — 0.95%, Jefferson County — 2.32%, Johnson County — 1.05%, Lafayette County — 0.71%, Lawrence County — 0.96%, Lee County — 0.73%, Lincoln County — 1.12%, Little River County — 0.77%, Logan County — 1.06%, Lonoke County — 1.70%, Madison County — 0.95%, Marion County — 1.00%, Miller County — 1.44%, Mississippi County — 1.77%, Monroe County — 0.53%, Montgomery County — 0.66%, Nevada County — 0.58%, Newton County — 0.67%, Ouachita County — 1.37%, Perry County — 0.62%, Phillips County — 1.12%, Pike County — 0.87%, Poinsett County — 1.14%, Polk County — 1.01%, Pope County — 1.73%, Prairie County — 0.83%, Pulaski County — 5.99%, Randolph County — 0.96%, St. Francis County — 1.45%, Saline County — 3.00%, Scott County — 0.59%, Searcy County — 0.73%, Sebastian County — 2.06%, Sevier County — 0.82%, Sharp County — 1.30%, Stone County — 0.77%, Union County — 2.01%, Van Buren County — 1.18%, Washington County — 3.46%, White County — 2.71%, Woodruff County — 0.47%, and Yell County — 1.11%.

History. Acts 1991, No. 833, § 3; 1992 (1st Ex. Sess.), No. 10, § 4; 2005, No. 435, § 1; 2007, No. 538, § 2; 2011, No. 880, § 1; 2013, No. 91, § 1; 2015, No. 79, § 1.

Amendments. The 1992 (1st Ex. Sess.) amendment substituted “Fire Protection Premium Tax Fund” for “Rural Fire Protection Revolving Fund” in the introductory language of (a)(1); and added the last sentence in (a)(2).

The 2005 amendment added (c).

The 2011 amendment inserted (a)(2)(D).

The 2013 amendment substituted “moneys” for “funds” in (a)(2)(B); and inserted “insurance for buildings, utility costs” in (a)(2)(C).

The 2015 amendment added (d) and (e).

14-284-404. Use of funds.

    1. The funds shall be used:
      1. To defray training expenses of firefighters at the Arkansas Fire Training Academy and fire training centers certified by the Arkansas Fire Protection Services Board;
      2. For the purchase and improvement of, or for pledging as security for a period of not more than ten (10) years in the financing of the purchase and improvement of, firefighting equipment and initial capital construction or improvements of fire departments;
      3. For insurance for buildings; or
      4. For utility costs.
    2. Municipalities, fire departments, and districts must expend or allocate for expenditure all funds received under this subchapter on or before the expiration of twelve (12) months from the date of receipt.
    3. Any excess or surplus funds that are not expended or allocated for expenditure within each twelve-month period shall be remitted to the fund no later than sixty (60) days following the expiration of each twelve-month period.
  1. Equipment funded under this section shall be used by the municipalities and departments located in fire protection districts that have been duly formed or established under the provisions of § 14-284-201 et seq.

History. Acts 1991, No. 833, § 3; 2013, No. 91, § 2.

Amendments. The 2013 amendment deleted “to defray training expenses and for purchase and improvement of equipment” at the end of the section heading; in (a)(1), substituted “The” for “Such,” inserted the (a)(1)(A) and (a)(1)(B) designations, and added (a)(1)(C) and (a)(1)(D); deleted “the provisions of” preceding “this subchapter” in (a)(2); substituted “each” for “such” twice in (a)(3); and substituted “Equipment funded under this section” for “Such equipment” in (b).

14-284-405. Payment to rural volunteer fire departments.

  1. No rural volunteer fire department or district shall receive payments or disbursements from the Fire Protection Premium Tax Fund unless the county quorum court and the board of commissioners of the fire protection district designate the current county fire service coordinator or designate a county fire service coordinator who shall be responsible for seeing that standard guidelines established by the Arkansas Fire Protection Services Board pursuant to § 20-22-801 et seq., are followed.
  2. No funds shall be paid to any certified rural volunteer fire department or fire protection district until a written proposal stating the following information has been approved by the quorum court and the Arkansas Fire Protection Services Board:
    1. Amount of funds requested;
    2. Purpose for which funds will be expended;
    3. Plans for training of fire fighters; and
    4. Anticipated time of completion of project.
    1. Rural volunteer fire departments and fire protection districts shall supply such statistical and operational information to the Arkansas Fire Protection Services Board and quorum court as required.
    2. The quorum court of each county shall file reports on January 15 annually with the State Auditor and Department of Finance and Administration stating how such funds were expended during the preceding twelve (12) months.
    3. Each rural volunteer fire department and fire protection district which receives such funds shall file reports on December 1 annually with the quorum court stating how such funds were expended during the preceding twelve (12) months.
    4. If any quorum court, rural volunteer fire department, or fire protection district fails to make such reports, the fire department or district shall not be eligible for new or additional funds until the reports are filed.
    5. Any rural fire department or district which fails to expend funds in due compliance with the provisions of this subchapter shall not be eligible for new or additional funds from the Fire Protection Premium Tax Fund until the department or district reimburses the fund in the exact amount of those moneys improperly retained or expended.

History. Acts 1991, No. 833, § 3; 1992 (1st Ex. Sess.), No. 10, §§ 5, 6.

Amendments. The 1992 (1st Ex. Sess.) amendment substituted “Fire Protection Premium Tax Fund” for “Rural Fire Protection Revolving Fund” in (a) and (c)(5).

14-284-406. Areas with no rural volunteer fire department or fire protection district — Areas in two or more counties.

    1. Pursuant to § 14-284-201(a)(2)(A), in any area in any county in which there is no rural volunteer fire department or fire protection district which qualifies for funds under the provisions of this subchapter, the quorum court is authorized, in its discretion and with the approval of the Arkansas Fire Protection Services Board, to designate any unincorporated area of the county to be served by a municipal fire department, if approved by the governing authorities of the municipality.
      1. In addition to funds the municipality is otherwise entitled to under this subchapter, the municipality serving any such designated area shall receive the funds that the rural volunteer fire department or fire protection district would have been eligible to receive.
      2. The funds shall be used by the municipality to provide training, to purchase equipment necessary to provide fire protection in the designated unincorporated area in compliance with this subchapter, to purchase insurance for buildings, or to pay utility costs.
    1. No municipality shall receive funds under this subchapter unless it is willing to provide fire protection through mutual aid agreements in areas within five (5) miles of its corporate limits.
    2. A municipality shall not be required to respond when, in the opinion of proper municipal authorities, its municipal property or fire classification rating would be jeopardized.
    1. A rural volunteer fire department or fire protection district that qualifies for funds under this subchapter and that provides fire protection services in two (2) or more counties shall be eligible to receive moneys from each of the counties under § 14-284-403(a)(2).
    2. The county quorum court of each county shall apportion the funds to the fire departments or districts eligible under this subsection in accordance with § 14-284-403(a)(2).

History. Acts 1991, No. 833, § 3; 2003, No. 200, § 1; 2013, No. 91, § 3.

Amendments. The 2003 amendment added “Areas in two (2) or more counties” in the section heading; added the subdivision designations in (a)(2) and (b); added (c); and made stylistic changes.

The 2013 amendment substituted “that” for “which” in (a)(2)(A); and added “to purchase insurance for buildings, or to pay utility costs” in (a)(2)(B).

14-284-407. Fire protection services organization of volunteer fire department or district after January 1, 1992.

Nothing in this subchapter shall be construed to prevent the organization of a volunteer fire department or district pursuant to the provisions of Arkansas law. If such a volunteer fire department or district is organized after January 1, 1992, the Department of Finance and Administration shall distribute funds provided by § 26-57-614 and this subchapter upon due compliance by the volunteer fire department and district with the eligibility requirements of this subchapter and §§ 20-22-80120-22-809.

History. Acts 1991, No. 833, § 4.

14-284-408. Direct contributions — Provision of water.

  1. Nothing in this subchapter shall be construed to prevent quorum courts and governing bodies of municipalities from contributing funds directly to any volunteer fire department or district serving such county or municipality.
  2. Nothing in this subchapter shall be construed to prevent county, municipal, or local water utilities or associations from contributing water free of charge for fire fighting and training activities to volunteer fire departments and districts.

History. Acts 1991, No. 833, §§ 5, 6.

14-284-409. Maintenance of real property of rural volunteer fire department.

The county judge of any county is hereby authorized and empowered, in his or her discretion, to grade, gravel, pave, and maintain real property of a rural volunteer fire department, including roads or driveways, as necessary for the effective and safe operation of the rural volunteer fire department.

History. Acts 1991, No. 833, § 7; 2003, No. 102, § 1.

Amendments. The 2003 amendment substituted “county judge” for “quorum court”; deleted the former last sentence; and made minor stylistic changes.

14-284-410. Certification of fire department required.

No fire department shall receive funds under this subchapter after January 1, 1998, unless the fire department is certified by the Arkansas Fire Protection Services Board.

History. Acts 1993, No. 1208, § 1; 1995, No. 1112, § 1.

A.C.R.C. Notes. References to “this subchapter” in §§ 14-284-40114-284-409 and 14-284-411 may not apply to this section which was enacted subsequently.

Amendments. The 1995 amendment substituted “January 1, 1998” for “January 1, 1996.”

14-284-411. Mayor — When member of county intergovernmental cooperation council.

For the purposes of this subchapter, the mayor of any city or incorporated town whose fire protection district extends into an adjoining county shall be a member of the county intergovernmental cooperation council of the adjoining county.

History. Acts 1995, No. 1147, § 2.

A.C.R.C. Notes. Acts 1995, No. 1147, § 1, provided:

“The General Assembly finds that in some instances, local fire departments have been unable to receive their share of state turn-back funds available to fire departments because county intergovernmental cooperation councils have failed to make distribution of the funds to the fire departments. Therefore, while a local fire department is required to provide services to the entire fire district, it does not have the funds to assist it in providing the services.”

Cross References. County intergovernmental cooperation councils, § 14-27-101 et seq.

14-284-412. Washer-extractor requirements.

  1. To be eligible for funding under this subchapter, a fire department shall have access to a washer-extractor capable of one hundred gravitational force (100 g-force) of spin installed by January 1, 2022, as certified by the county fire coordinator, except as provided under subsections (c) and (d) of this section.
  2. Funding withheld under subsection (a) of this section is not subject to redistribution under this subchapter and shall be released upon certification of installation under subsection (a) of this section.
    1. A fire department may enter into a written interlocal agreement with another fire department in the state that has met the requirements of subsection (a) of this section to be in compliance with this section.
    2. The written interlocal agreement under subdivision (c)(1) of this section shall address access to the washer-extractor and require reasonable notification for the access.
  3. To meet the requirements of this section, an intergovernmental council of a county may purchase a washer-extractor to be used by all fire departments in the county and installed at a central location in the county chosen by the county fire coordinator.

History. Acts 2017, No. 962, § 1.

Chapter 285 Municipal Recreation Improvement Districts

14-285-101. Definition.

For the purposes of this act, “municipal recreation improvement district” means a municipal improvement district formed under Acts 1881, No. 84, as amended, or Acts 1929, No. 64, as amended, for the sole purpose of acquiring, constructing, operating, or maintaining a recreational facility.

History. Acts 1985, No. 179, § 1; A.S.A. 1947, § 20-150.

Publisher's Notes. Acts 1881, No. 84, referred to in this section, is codified as §§ 14-88-101, 14-88-202, 14-88-204, 14-88-302, 14-88-303, 14-88-30514-88-308, 14-88-311, 14-88-403, 14-88-502, 14-89-201, 14-89-1001, 14-89-1002, 14-90-101, 14-90-201, 14-90-302, 14-90-403, 14-90-701, 14-90-80114-90-805, 14-90-902, 14-90-903, 14-90-916, 14-90-100114-90-1003, 14-90-1005, 14-90-1006, 14-90-110114-90-1106, 14-90-1108, 14-90-120114-90-1204, 14-90-1302, 14-90-1303, 14-91-101, 14-91-10414-91-107, 14-91-201, and 14-235-30114-235-305.

Acts 1929, No. 64 is codified as §§ 14-88-203, 14-88-205, 14-88-207, 14-88-210, 14-88-301, 14-88-407, 14-88-504, 14-89-201, 14-90-601, 14-90-602, 14-90-701, 14-90-801, 14-90-803, 14-90-804, 14-91-101, 14-91-102, 14-91-401, and 14-91-50114-91-503.

Meaning of “this act”. Acts 1985, No. 179, codified as §§ 14-88-406, 14-285-10114-285-103.

14-285-102. Time and manner of payment of annual installments.

  1. Payment of the annual installments of the assessments of benefits by municipal recreation improvement districts located within second class cities shall be due on the same dates as ad valorem real property taxes and the annual installments shall be collected by the county collector at the same time and in the same manner as the collection of ad valorem real property taxes.
  2. If the annual installments are delinquent at the time the realty subject to a lien for delinquent annual installments is sold for delinquent taxes, the State Land Commissioner shall recover the delinquent annual installments at the time of the sale thereby relieving the district of the requirement of instituting a civil action for foreclosure.
  3. Therefore, any questions arising regarding the interpretation of any provision of this act shall be resolved in such manner as will result in the implementation of the legislative intent expressed above.

History. Acts 1985, No. 179, § 2; A.S.A. 1947, § 20-151.

Meaning of “this act”. See note to § 14-285-101.

14-285-103. Collection of annual installments.

  1. The county collector of each county wherein is located all or part of a municipal recreation improvement district formed in a second class city shall collect the annual installments of the assessment of benefits by the district and the amount shall be collected along with and at the same time as ad valorem real property taxes.
  2. The county collector shall not accept payment of ad valorem real property taxes unless accompanied by payment of annual installments of the assessments by the municipal recreation improvement districts.
  3. All municipal recreation improvement districts shall report their assessments of benefits to the county collectors at such time and in such manner as required by the county collectors.
  4. A municipal recreation improvement district may enforce collection of a delinquent assessment by a proceeding in the circuit court of the county in the manner as provided for municipal property owners' improvement districts under § 14-94-122.

History. Acts 1985, No. 179, § 3; A.S.A. 1947, § 20-152; Acts 2007, No. 152, § 1.

14-285-104. Withdrawal.

  1. If a municipal recreation improvement district is composed of two (2) noncontiguous areas, one (1) of which lies outside the boundaries of the municipality, then the separate area which is located outside the boundaries of the municipality may withdraw from the district if no recreational facilities have been installed in the area.
    1. The area may withdraw from the district by a petition filed with the municipal clerk. The petition shall be signed by both a majority of the landholders in the area to be removed and the owners of a majority of the land in the area.
    2. The area shall be removed from the district and the boundaries of the district revised accordingly, upon the clerk determining the sufficiency of the petition.
  2. The landowners in an area that withdraws from a municipal recreation district pursuant to this section shall continue to pay the assessments of the district until all bonds existing at the time the petition is filed are repaid.
  3. The landowners in an area that withdraws pursuant to this section shall pay all assessments made prior to the withdrawal from the district.

History. Acts 1991, No. 413, § 1.

14-285-105. Release.

  1. In a municipal recreation improvement district which is composed of two (2) noncontiguous areas, one (1) of which lies outside the boundaries of the municipality, the separate area which is located outside the boundaries of the municipality shall be deemed to be released from the municipal recreation district if the area meets the criteria of this section. The release shall become effective October 13, 1993. However, if, before the release becomes effective, a majority of the landholders in the separate area file a petition with the district seeking to remain in the district, then the area shall not be released from the district.
  2. To be eligible for release from the district, the following criteria must be met:
    1. The area lies at least one (1) mile outside the boundaries of the municipality;
    2. The municipal recreation improvement district has been in existence for at least ten (10) years; and
    3. The municipal recreation improvement district does not have recreation facilities located in the area.
  3. Upon the release of an area, any unpaid taxes assessed shall be forgiven. This section shall not be construed to require any municipal recreation improvement district to refund any taxes paid on property located in areas released from the district in accordance with this section.

History. Acts 1993, No. 394, § 1.

Chapter 286 Fire Ant Abatement Districts

Cross References. Fire Ant Advisory Board, § 2-16-701 et seq.

Effective Dates. Acts 1997, No. 590, § 20: Mar. 17, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that there is an urgent need for legislation to grant the authority to establish Red Imported Fire Ant abatement districts in certain areas of this state and to provide a procedure for financing the activities of such districts; that this act is designed to grant such authority and to prescribe the procedure therefor and to authorize such districts to issue bonds to fund the activities of the district; and that this act should be given immediate effect to enable the electors in various areas of this state to immediately take appropriate steps to establish such districts. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2009, No. 1480, § 117: Apr. 10, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act makes various revisions to Arkansas election laws that are designed to improve the administration of elections and special elections and that these revisions should be implemented as soon as possible so that the citizens of this state may benefit from improved election procedures. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

14-286-101. Definitions.

For purposes of this subchapter:

  1. “Red Imported Fire Ant” means solenopsis invicta.
  2. “Board” means the board of commissioners of each red imported fire ant abatement district.

History. Acts 1997, No. 590, § 1.

14-286-102. Elections — Calling elections.

  1. The county board of commissioners shall call a special election in the county, city, or designated area of the city to determine whether a red imported fire ant abatement district shall be established for the area upon the filing of petitions with the county court of any county containing the signatures of ten percent (10%) or more of the qualified electors of all or any defined part of any county, or all or any defined part of any city, as determined by the total number of votes cast for Governor at the last general election by the qualified electors of the county, city, or designated portion thereof, requesting the establishment of a red imported fire ant abatement district in the county or a designated portion of the county or in the city or designated portion of the city and requesting that assessed benefits be made on the property located in the district to finance the operation of the district.
  2. Petitions filed pursuant to subsection (a) of this section shall specifically define the area proposed to be included in the red imported fire ant abatement district and shall specify the maximum assessed benefits which may be levied against property within the district for the support of the district. In no event shall the assessed benefits in any district exceed an amount equal to one percent (1%) of the assessed valuation of real property in the district.
  3. The quorum court of the county may on its own motion enact an ordinance directing the county court to call a special election in the county, city, or designated area of the city to determine whether a red imported fire ant abatement district shall be established for the area.

History. Acts 1997, No. 590, § 2.

14-286-103. Elections — Time — Ballots.

  1. The special election called by the county court to submit the question of the establishment and financing of a red imported fire ant abatement district to the electors of the proposed district shall be held in accordance with § 7-11-201 et seq. no later than ninety (90) days after the proclamation of the election.
  2. At the election, the question of establishing and financing the district shall be placed on the ballot in substantially the following form:

“FOR the establishment of a Red Imported Fire Ant (Solenopsis invicta) abatement district in County, (city), (designated area) and the establishment of assessed benefits on real property in the district in an amount not to exceed one percent (1%) of the assessed valuation of real property in the district to finance the district

AGAINST the establishment of a Red Imported Fire Ant (Solenopsis invicta) abatement district in County, (city), (designated area) and the establishment of assessed benefits on real property in the district in an amount not to exceed one percent (1%) of the assessed valuation of real property in the district to finance the district

History. Acts 1997, No. 590, § 3; 2005, No. 2145, § 56; 2007, No. 1049, § 78; 2009, No. 1480, § 96.

Amendments. The 2005 amendment redesignated former (a) as present (a)(1); and added (a)(2).

The 2009 amendment substituted “§ 7-11-201 et seq.” for “§ 7-5-103(b)” in (a).

14-286-104. Boards — District established — Members.

  1. Upon approval by the voters of the red imported fire ant abatement district and the levy of assessed benefits to support the district, the county court shall enter an order establishing the district as described in the petitions and shall appoint five (5) qualified electors of the district as a board of commissioners for the district. Two (2) members of the commission shall be appointed for terms of two (2) years and three (3) members shall be appointed for terms of three (3) years.
  2. All successor members shall be appointed by the county court for terms of three (3) years.
  3. Vacancies occurring on the board for reasons other than the expiration of a term shall be filled by the county court for the unexpired term.
  4. The members of the board shall serve without compensation, but shall be entitled to actual expenses incurred in attending meetings in an amount not to exceed fifty dollars ($50.00) per day for each member of the board.

History. Acts 1997, No. 590, § 4.

14-286-105. Boards — Officers — Director — Employees — Functions — Cooperation of county.

    1. The board shall annually choose from among its members a chairman and a secretary-treasurer.
    2. The chairman and secretary-treasurer shall furnish bonds conditioned upon faithful performance of their duties in the amount of five thousand dollars ($5,000) each. The cost of securing and maintaining the bonds shall be paid from funds of the district.
    1. The board shall employ a director who shall have such training, experience, and qualifications as may be prescribed by the Cooperative Extension Service, and an entomologist associated with the University of Arkansas system. The board may employ such other employees as it deems necessary to carry out the purposes of the district.
    2. Employees of the board shall have such responsibilities and receive such compensation as may be prescribed by the board.
  1. The county in which any district is located shall cooperate with and assist the board by providing suitable office space and meeting facilities for the board and its staff.
  2. The board shall meet at least quarterly and at such other times as it may deem necessary to properly carry out its responsibilities.
    1. Meetings shall be called by the chairman or a majority of the members of the board.
    2. Three (3) members of the board shall constitute a quorum and any substantive action of the board shall require an affirmative vote of at least three (3) members of the board.
  3. A Cooperative Extension Services specialist involved in fire ant education and/or the county agent chairman shall serve as ex officio members of the board and shall serve without compensation. The Cooperative Extension Services specialist, the county agent or their representatives shall cooperate with and assist the board by furnishing the board with such surveys, maps, information, and advice as may be helpful to the board in carrying out its responsibilities and to assist in such other manner as may be reasonably requested by the board.
  4. The board shall be responsible for approving materials used in the red imported fire ant abatement district and shall be responsible for certifying applicators using those materials.

History. Acts 1997, No. 590, § 5.

14-286-106. Boards — Annual report.

Any county or city creating a red imported fire ant abatement district will be responsible to the Fire Ant Advisory Board. The board of commissioners of each red imported fire ant abatement district shall submit to the Fire Ant Advisory Board an annual report of any abatement program initiated including information regarding the techniques used, their effectiveness, and any problems encountered in the program, the cost of such techniques, and moneys collected.

History. Acts 1997, No. 590, § 6.

14-286-107. Boards — Plans for abatement — Appointment of assessors — Assessments.

  1. As soon as is practical after its establishment, the board shall prepare plans for providing red imported fire ant abatement services and for acquiring the property and equipment necessary to carry out the purposes of the district.
  2. The board shall thereupon appoint three (3) assessors to assess the annual benefits which will accrue to the real property within the district as a result of the red imported fire ant abatement services and shall fix their compensation.
    1. The assessors shall take an oath that they will assess all annual benefits that will accrue to the landowners of the district as a result of the red imported fire ant abatement services.
    2. The assessors shall thereupon proceed to assess the annual benefits to the lands within the district. They shall inscribe in a book each tract of land and shall extend opposite each tract of land the amount of annual benefits that will accrue each year to the land by reason of the services.
  3. The original assessment of benefits and any reassessment shall be advertised and equalized in the manner provided in this subchapter, and owners of all property whose assessments have been raised shall have the right to be heard and to appeal from the decision of the assessors, as provided in this subchapter.
  4. The assessors shall place opposite each tract the name of the owner, as shown by the last county assessment, but a mistake in the name shall not void the assessment, and the assessors shall correct errors which occur in the county or district assessment list.
  5. The commissioners shall have the authority to fill any vacancy in the position of assessor, and the assessors shall hold their office at the pleasure of the board.

History. Acts 1997, No. 590, § 7.

14-286-108. Assessments — Filing — Notice — Complaints.

  1. The assessment shall be filed with the county clerk of the county in which the property is located, and the secretary of the board shall thereupon give notice of its filing by publication one (1) time a week for two (2) weeks in a newspaper of general circulation in the county. The notice shall be in the following form:
  2. On the day named by the notice, it shall be the duty of the assessors to meet, at the place named, as a board of assessors, to hear all complaints against the assessment, and to equalize and adjust the assessments. The determination shall be final unless suit is brought in the chancery court within thirty (30) days after the original determination by the assessors. If the board is unable to hear all complaints submitted between the hours designated in this subsection, the assessors shall adjourn over from day to day until all parties have been heard.

“Notice is hereby given that the assessment of annual benefits of District Number has been filed in the office of the County Clerk of where it is open for inspection. All persons wishing to be heard regarding the assessment will be heard by the assessors of the district in the office of the county clerk between the hours of one (1:00) p.m. and four (4:00) p.m., at on the , 19

History. Acts 1997, No. 590, § 8.

14-286-109. Assessments — Reassessments.

  1. The commissioners shall one (1) time a year order the assessors to reassess the annual benefits of the district, provided there have been improvements made or improvements destroyed or removed from one (1) or more tracts of land in the district, making it necessary to have the annual benefits revised.
    1. Whereupon, it shall be the duty of the assessors to reassess the benefits of the district, and the annual benefits assessed may be raised or lowered as conditions of the property change.
    2. However, the annual benefits extended against any piece of property shall not be increased from the annual benefits originally extended unless improvements are made to the land that will be benefited by the red imported fire ant abatement services provided by the district.

History. Acts 1997, No. 590, § 9.

14-286-110. Assessments — Duties of county clerk and county collector.

  1. The original assessment record or any reassessment record shall be filed with the county clerk, whose duty it shall be to extend the annual benefit assessment annually upon the tax books of the county until the district is dissolved.
  2. It shall then be the duty of the county collector to collect each year the annual benefit assessment extended upon the book along with the other taxes, and the taxes shall be paid over by the collector to the depository of the district at the same time the collector pays over the county funds.
    1. If there is any change in the annual benefits assessed, a certified copy of the revised assessment shall be filed with the county clerk who shall extend the revised assessment annually upon the tax books until a new assessment is made, which shall be extended upon the tax books in a similar manner. The power to reassess and extend the assessment upon the tax books shall be a continuing power as long as the district continues to exist. It shall be the duty of the county collector to collect the taxes so extended.
    2. In lieu of filing the reassessment, the assessors may make the changes in the assessment in red ink on the assessment already on file, or the assessment record may contain many columns at the head of which the year shall be designated and, in the column, the new annual benefits may be shown in red ink which will indicate any increase or decrease in the original annual benefits extended. When the change is made, a red ink line shall be drawn through the figures showing the original annual benefits extended.

History. Acts 1997, No. 590, § 10.

14-286-111. Expenditures — Public records.

  1. Funds of the district shall be expended only upon the order of the board and upon a voucher check signed by the chairman and secretary/treasurer of the board.
    1. Every voucher check shall state upon its face to whom the amount is payable, and the purpose for which it is issued.
    2. All voucher checks shall be dated and shall be numbered consecutively in a record to be kept by the board of the number and amount of the check.
  2. All proceedings and transactions of the board shall be a matter of public record and shall be open to the inspection of the public.
  3. The board shall file with the county clerk in January of each year a certified itemized report showing all moneys received, the date of receipt, and the source from which received; and all moneys paid out, date paid, to whom paid, and for what purpose, during the preceding year, together with an itemized list of all delinquent assessments showing owner, description of property, years for which the assessment is delinquent, and the amount of the total delinquency.

History. Acts 1997, No. 590, § 11.

14-286-112. Bonds — Authority — Requirements generally.

  1. The board shall have the authority to issue negotiable bonds or certificates of indebtedness to secure funds for the expenses of the district including office supplies and salaries, the purchase of equipment, facilities, chemicals, and such other items as may be necessary to carry out the purposes of the district.
    1. Bonds issued by the board shall be for a term not more than twenty (20) years and shall bear interest at a rate not to exceed the constitutional maximum.
    2. To secure the bonds, the board may pledge all or a portion of the benefit assessed against real property in the district.
  2. Bonds of the districts shall be authorized by resolution of the board and may be registrable as to principal only or as to principal and interest and may be made exchangeable for bonds of another denomination; may be in such form and denomination; may have such date or dates; may be stated to mature at such times; may bear interest payable at such times and at such rate or rates, provided that no bond may bear interest at a rate exceeding the constitutional maximum; may be payable at such places within or without the State of Arkansas; may be made subject to such terms of redemption in advance of maturity at such prices; and may contain such terms and conditions, as the board shall determine.
    1. The bonds shall have all the qualities of negotiable instruments under the laws of the State of Arkansas, subject to provisions as to registration as set forth in this subchapter.
    2. The authorizing resolution may contain any of the terms, covenants and conditions that are deemed desirable by the board including, without limitation, those pertaining to the maintenance of various funds and reserves, the nature and extent of the security, the issuance of additional bonds and the nature of the lien and pledge, parity or priority, in that event, the custody and application of the proceeds of the bonds, the collection and disposition of revenues, the investing and reinvesting in securities specified by the board of any moneys during the periods not needed for the authorized purposes, and the rights, duties, and obligations of the district, the board, and of the holders and registered owners of the bonds.
  3. The authorizing resolution may provide for the execution of a trust indenture by the district with a bank or trust company within or without the State or Arkansas. The trust indenture may contain any terms, covenants, and conditions that are deemed desirable by the board including, without limitation, those pertaining to the maintenance of various funds and reserves, the nature and extent of the security, the issuance of additional bonds and the nature of the lien and pledge, parity or priority, in that event, the custody and application of the proceeds of the bonds, the collections and disposition of assessments and of revenues, the investing and reinvesting in securities specified by the board of any moneys during the periods not needed for authorized purposes, and the rights, duties, and obligations of the board and the holders and registered owners of the bonds.
  4. The bonds shall be sold at a public sale through sealed bids.
    1. Notice of the sale shall be published one (1) time a week for at least two (2) consecutive weeks in a newspaper having a general circulation throughout the State of Arkansas, with the first publication to be at least twenty (20) days prior to the date of sale and may be published in such other publications as the district may determine.
    2. The bonds may be sold at such price as the board may accept including sale at a discount, but in no event shall any bid be accepted which results in a net interest cost, which is determined by computing the aggregate interest cost from the date to maturity at the rate or rates bid and deducting any premium or adding any amount of any discount, in excess of the interest cost computed at par for bonds bearing interest at the maximum rate prescribed by the Arkansas Constitution.
    3. The award, if made, shall be to the bidder whose bid results in the lowest net interest cost.
    1. The bonds shall be executed by the manual or facsimile signature of the chairman of the board and by the manual signature of the secretary/treasurer of the board.
    2. In case any of the officers whose signature appears on the bonds shall cease to be officers before the delivery of the bonds, their signatures shall, nevertheless, be valid and sufficient for all purposes.
  5. The district shall adopt and use a seal in the execution and issuance of the bonds, and each bond shall be sealed with the seal of the district.

History. Acts 1997, No. 590, § 12.

14-286-113. Bonds — Limits on liability — Payment.

    1. It shall be plainly stated on the face of each bond that it has been issued under the provisions of this subchapter, that the bonds shall be obligations only of the district, and that in no event shall they constitute any indebtedness for which the faith and credit of the state or any county or municipality or any of the revenues of the state or any county or municipality are pledged.
    2. No member of the board shall be personally liable on the bonds or for any damages sustained by anyone in connection with any contracts entered into in carrying out the purpose and intent of this subchapter, unless the board member has not acted as a reasonably prudent person would.
    1. The principal of, interest on, and paying agent's fees in connection with the bonds shall be secured by a lien on, and pledge of, and shall be payable from the assessments levied against the real property within the district.
    2. The right to issue subsequent issues of bonds can, if the district so determines, be reserved in any authorizing resolution or trust indenture on either a parity or subordinate lien basis and upon such terms and conditions as the district may determine and specify in the particular authorizing resolution or trust indenture.

History. Acts 1997, No. 590, § 13.

14-286-114. Bonds — Refunding bonds.

  1. Bonds may be issued for the purpose of refunding any bonds issued under this subchapter.
  2. Refunding bonds may be either sold or delivered in exchange for the bonds being refunded. If sold, the proceeds may be either applied to the payment of the bonds being refunded or deposited in trust and there be maintained in cash or investments for the retirement of the bonds being refunded, as shall be specified by the district in the resolution or trust indenture securing the bonds.
  3. The resolution or trust indenture securing the refunding bonds may provide that the refunding bonds shall have the same priority on assessments or revenues pledged for their payment as possessed by the bonds refunded.
  4. Refunding bonds shall be sold and secured in accordance with the provisions of this subchapter pertaining to the sale and security bonds.

History. Acts 1997, No. 590, § 14.

14-286-115. Bonds — Tax exemptions.

Bonds issued under the provisions of this subchapter, and the interest thereon, shall be exempt from all state, county, and municipal taxes. This exemption shall include income, inheritance, and estate taxes.

History. Acts 1997, No. 590, § 15.

14-286-116. Dissolution of district.

  1. A red imported fire ant abatement district created under this subchapter may be dissolved upon a vote of a majority of the qualified electors of the district, and the question of dissolution of the district may be submitted to the electors in the same manner as is prescribed in this subchapter submitting the question of the establishment of the district.
  2. If any district having outstanding bonds or other indebtedness is dissolved, the assessed benefits being levied at the time of dissolution shall continue to be levied and collected until the outstanding bonds or their indebtedness are paid.
  3. No election on the question of dissolution of a red imported fire ant abatement district may be held within the first three (3) years after the establishment of the district.

History. Acts 1997, No. 590, § 16.

Chapter 287 Municipal Management Districts

Cross References. Fire Ant Advisory Board, § 2-16-701 et seq.

14-287-101. Authority to create.

Cities may enact by ordinance a process to create a municipal management district to manage, develop, construct, and maintain public works and enhancement projects in areas of municipalities.

History. Acts 1999, No. 230, § 1.

14-287-102. Petition to create.

Before a municipal management district can be created, a petition must be submitted to the governing body of the municipality that includes the following:

  1. A resolution to the governing body in support of the creation of the district and signed by at least ninety percent (90%) of the property owners within the district representing at least ninety percent (90%) of the appraised property value within the district and at least ninety percent (90%) of the privately held land area within the district;
  2. The boundaries of the proposed district;
  3. The specific purposes for which the district will be created;
  4. The general nature of the work, projects, or services proposed to be provided;
  5. The method of establishing assessments for the district;
  6. A project cost estimate which shall not exceed two million dollars ($2,000,000); and
  7. A budget for operating and paying for improvements.

History. Acts 1999, No. 230, § 2.

14-287-103. Maximum size of district.

The municipal management district will be limited to a maximum of one (1) square mile.

History. Acts 1999, No. 230, § 3.

14-287-104. Municipal management district commission.

  1. The mayor will appoint two (2) members of the governing authority and three (3) residents or owners of property in the district to serve on the municipal management district commission.
  2. Terms of the commissioners will be decided by local ordinance, not to exceed five (5) years.
  3. No commission member shall receive compensation.
  4. The commission may retain legal counsel and staff assistance may be provided by the municipality.
  5. Upon termination of the district, the municipality shall accept maintenance responsibility for the improvements.
  6. The life of the district shall not exceed ten (10) years, at which time all improvements, debts, and charges will be paid in full.

History. Acts 1999, No. 230, § 4.

14-287-105. Rates and other fees — Annual audit.

  1. Municipal management districts may establish and maintain reasonable and nondiscriminatory rates, fares, tolls, charges, assessments, rents, or other fees or compensation for the use of the improvements constructed, operated, or maintained by the district.
  2. The district shall be audited by a certified public accountant each year with the audit findings being published in a daily newspaper with a circulation which includes the district.

History. Acts 1999, No. 230, § 5.

Chapters 288-295 [Reserved.]

[Reserved]

Subtitle 18. Roadways, Bridges, And Parking Generally

Chapter 296 General Provisions

14-296-101. Maintenance of roads where public use acquired through adverse possession.

If the public obtains the right to use a road through adverse possession, the municipality or county in which the road is located shall have the authority to maintain the road.

History. Acts 1991, No. 879, § 1.

Chapter 297 County Highway Commission

14-297-101 — 14-297-113. [Repealed.]

Publisher's Notes. This chapter was repealed by Acts 1987, No. 158, § 2. The chapter was derived from the following sources:

14-297-101. Acts 1939, No. 379, § 6; A.S.A. 1947, § 76-806.

14-297-102. Acts 1939, No. 379, § 1; A.S.A. 1947, § 76-801.

14-297-103. Acts 1939, No. 379, §§ 1-4, 14; A.S.A. 1947, §§ 76-801 — 76-804, 76-814.

14-297-104. Acts 1939, No. 379, § 7; A.S.A. 1947, § 76-807.

14-297-105. Acts 1939, No. 379, § 3; A.S.A. 1947, § 76-803.

14-297-106. Acts 1939, No. 379, § 13; A.S.A. 1947, § 76-813.

14-297-107. Acts 1939, No. 379, § 9; A.S.A. 1947, § 76-809.

14-297-108. Acts 1939, §§ 6, 10; A.S.A. 1947, §§ 76-806, 76-810.

14-297-109. Acts 1939, No. 379, § 3; A.S.A. 1947, § 76-803.

14-297-110. Acts 1939, No. 379, § 8; A.S.A. 1947, § 76-808.

14-297-111. Acts 1939, No. 379, § 5; A.S.A. 1947, § 76-805.

14-297-112. Acts 1939, No. 379, § 11; A.S.A. 1947, § 76-811.

14-297-113. Acts 1939, No. 379, § 12; A.S.A. 1947, § 76-812.

Chapter 298 Establishment, Alteration, And Vacation Of County Roads

Cross References. Power of county judge to operate system of county roads, Ark. Const., Amend. No. 55, § 3.

Preambles. Acts 1923, No. 611 contained a preamble which read:

“Whereas, the existing law regulating the opening of public roads on petition of interested property holders is the same as when created in 1871; and

“Whereas, in 1871 when the existing laws were created our counties in most instances were much larger than the area of the present counties and the county judges were not as familiar with all parts of their respective counties as is the case at present, and, too, the automobile has so changed the importance of public roads that today a large part of a county judge's time is devoted to the question of roads and the county judge is more or less familiar with the needs of roads in all sections; and

“Whereas, there is a need for a simpler method of making application to the County Court for the opening of a public road than is prescribed in Act No. 26 of the Acts of 1871, whereby it is necessary to have viewers and to go through a very long procedure, which in the end leaves the matter to the County Court; and

“Whereas, the amendment, as herein provided, to said Act No. 422 of the Acts of 1911 does not repeal any part of Act No. 26 of the Acts of 1871 but simply provides for the additional procedure in the matter, so that either may be followed….”

Effective Dates. Acts 1871, No. 26, § 74: effective on passage.

Acts 1897 (Ex. Sess.), No. 10, § 3: effective on passage.

Acts 1899, No. 202, § 2: effective on passage.

Acts 1907, No. 427, § 2: effective on passage.

Acts 1911, No. 422, § 2: approved May 31, 1911. Emergency clause provided: “This Act being necessary for the public peace, health and safety shall take effect from and after its passage.”

Acts 1949, No. 181, § 3: Feb. 28, 1949. Emergency clause provided: “Whereas, the United States Government is now constructing a number of flood-control projects in the State of Arkansas, necessitating the abandonment and relocation of certain county roads located in these projects, an emergency is hereby declared to exist, and this act being necessary for immediate preservation of the public peace, health and safety, shall take effect and be in full force from and after its passage and approval.”

Acts 1963, No. 185, § 4: approved Mar. 7, 1963. Emergency clause provided: “It has been found and is hereby declared by the General Assembly that property ownerships and highway and road rights-of-way have been left clouded due to the uncertain status of certain County Court Condemnation Orders; that there is urgent need to clear up such uncertainties; therefore this Act being necessary to the public peace, health, and safety of the people of Arkansas, an emergency is hereby declared to exist and this Act shall be in full force and effect from and after its passage.”

Acts 1965, No. 387, § 5: Mar. 19, 1965. Emergency clause provided: “It is hereby found and determined by the General Assembly that the provisions of law relative to notice to landowners in instances where condemnations of private property for highway purposes is affected in the County Court are unclear, and that such want of clarity has resulted in confusion of land titles and unnecessary litigation arising from such condemnations, and that the immediate passage of this Act is necessary in order to correct said situation. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Research References

ALR.

Construction contractor's liability for injuries to third persons by materials or debris on highway during course of construction or repair. 3 A.L.R.4th 770.

Liability of governmental entity for injury, resulting from defect or obstruction in shoulder of street or highway. 19 A.L.R.4th 532.

Damages resulting from temporary conditions incident to public improvements or repairs as compensable taking. 23 A.L.R.4th 674.

State or local governmental unit's liability for injury to private highway construction worker based on its own negligence. 29 A.L.R.4th 1188.

Towing, impounding, or destruction of motor vehicles parked or abandoned on streets and highways. 32 A.L.R.4th 728.

Personal injury liability of civil engineer for negligence in highway or bridge construction or maintenance. 43 A.L.R.4th 911.

14-298-101. Powers of county court.

All public roads and highways shall be laid out, opened, and repaired agreeably to the provisions of this chapter. The county court of each county in this state shall have full power and authority to make and enforce all orders necessary as well for establishing and opening new roads as for changing and vacating any public road or part thereof.

History. Acts 1871, No. 26, § 2, p. 56; C. & M. Dig., § 5226; Pope's Dig., § 6941; A.S.A. 1947, § 76-901.

Research References

Ark. L. Notes.

Foster, The County Road Quagmire: How to Establish the Existence of a County Road and Other Ingress, Egress Conundrums, 2008 Ark. L. Notes 33.

Case Notes

County Roads.

County road held not created. Ark. Game & Fish Comm'n v. Lindsey, 292 Ark. 314, 730 S.W.2d 474 (1987).

Jurisdiction.

Special act creating road improvement district and providing that improvement should be made on road then laid out or which might be laid out by county court or with charges approved by county court did not infringe the constitutional jurisdiction of county court. Bush v. Delta Road Imp. Dist., 141 Ark. 247, 216 S.W. 690 (1919).

Before a village became an incorporated town, the county court had jurisdiction to vacate an old county road and open a new road. Stumpff v. Louann Provision Co., 173 Ark. 192, 292 S.W. 106 (1927).

Cited: Oliver v. Washington County, 328 Ark. 61, 940 S.W.2d 884 (1997).

14-298-102. Notice prerequisite to petition for county road.

  1. Previous to any petition being presented for a county road, or for the alteration or vacation of a county road, notice thereof shall be given by publication in some newspaper, published in the county, if one exists.
  2. If there is no newspaper published in the county, then notice shall be given by advertisements set up in three (3) public places in each township through or into which any part of the road is designed to be laid out, altered, or vacated, stating the time when the petition is to be presented and the substance thereof. Notice shall be duly authenticated and presented with the petition to the county court.

History. Acts 1871, No. 26, § 45, p. 56; C. & M. Dig., § 5230; Pope's Dig., § 6945; A.S.A. 1947, § 76-904.

Case Notes

Failure to Give Notice.

A judgment of the county court opening a road over a railroad right-of-way was not invalid because the petition was presented before notice was given that the application would be made for the road, where the court did not act upon the petition until the notice had been properly authenticated and filed. Kansas City S. Ry. v. Sevier County, 171 Ark. 900, 286 S.W. 1035 (1926).

14-298-103. Application by petition — Bond.

  1. All applications for laying out, viewing, reviewing, altering, or vacating any county road shall be by petition to the county court, signed by at least ten (10) freeholders of the county.
  2. One (1) or more of the signers to the petition shall enter into bond, with sufficient security, payable to the State of Arkansas for the use of the county. This bond shall be conditioned that the persons making the application for a view, review, alteration, or vacation of any road shall pay into the treasury of the county the amount of all costs and expenses accruing on the view, review, alteration, or vacation. In case the prayer of the petitioners shall not be granted, or when the proceedings had in pursuance thereof shall not be finally confirmed and established, and, on neglect or refusal of the persons so bound, after a liability shall have accrued, to pay into the treasury, according to the tenor of the bond, all costs and expenses that shall have accrued, the county clerk shall deliver the bond to the prosecuting attorney of the circuit, whose duty it shall be to collect and pay over the bond to the county treasury.
  3. In all cases of contest, the court having jurisdiction of the case shall have power to render judgment for costs, according to justice, between the parties.

History. Acts 1871, No. 26, § 43, p. 56; C. & M. Dig., § 5228; Pope's Dig., § 6943; A.S.A. 1947, § 76-902.

Publisher's Notes. This section may be superseded by § 14-298-120.

Case Notes

Signatures.

One contesting the establishment of a road was in no position to complain because the bond was signed by only two signers but not by a surety, as the bond was given to protect the county for costs and expenses incident to the view. Kansas City S. Ry. v. Sevier County, 171 Ark. 900, 286 S.W. 1035 (1926).

Where a petition to open a county road is not signed by 10 freeholders of the county as required by this section, the county court does not acquire jurisdiction of the proceeding. First Pyramid Life Ins. Co. v. Reed, 247 Ark. 1003, 449 S.W.2d 178 (1970).

Where only six freeholders signed a petition to vacate a county road, rather than the 10 required by the statute, the county court did not have jurisdiction to vacate the road and, therefore, the judgment was reversed, even though the appeal was untimely. Perry v. Lee County, 71 Ark. App. 47, 25 S.W.3d 443 (2000).

14-298-104. Contents of petition.

All petitions for laying out, altering, or vacating any county road shall specify the place of beginning, the intermediate points, if any, and the place of termination of the road.

History. Acts 1871, No. 26, § 44, p. 56; C. & M. Dig., § 5229; Pope's Dig., § 6944; A.S.A. 1947, § 76-903.

Publisher's Notes. This section may be superseded by § 14-298-120.

Case Notes

Description of Road.

In the location or establishment of the road, all portions of it do not need to conform with perfect exactitude to the description called for in the petition, but the court may vary from the line to avoid unnecessary inconvenience, unreasonable costs, or for other justifiable reasons. Wallace v. Desha County, 194 Ark. 848, 109 S.W.2d 950 (1937).

Where county court finds it proper to grant petition, it should establish the road substantially as called for in the petition, but if only a part of the road may be proper, that part should be substantially on the section lines described in the petition. Wallace v. Desha County, 194 Ark. 848, 109 S.W.2d 950 (1937).

Items Included.

The map or plans, specifications, and estimate of costs must be regarded as a part of the petition for organization of a road district for the purpose of determining whether a proposed improvement is certainly and definitely described. Tarvin v. Road Improv. Dist., 137 Ark. 354, 209 S.W. 81 (1919).

14-298-105. Appointment of viewers — Duties.

  1. On presentation of the petition and proof of notice of publication as set out in § 14-298-102 and if the county court is satisfied that proper notice has been given in accordance with the provisions of this chapter, the court shall appoint three (3) disinterested citizens of the county as viewers, who shall also:
    1. Be a jury to assess and determine the compensation to be paid in money for the property sought to be appropriated, without deduction for benefits to any property of the owners; and
    2. Assess and determine what damages each owner of the lands over which the road is to run shall suffer by the opening and construction of the road.
  2. The county court shall issue its order directing the viewers to proceed on a day to be named in the order to view, survey, and lay out or alter the road and also determine whether the public convenience requires that the road, or any part thereof, shall be established.

History. Acts 1871, No. 26, §§ 46, 48, p. 56; C. & M. Dig., §§ 5231, 5233; Pope's Dig., §§ 6946, 6948; A.S.A. 1947, §§ 76-905, 76-907; Acts 2005, No. 1200, § 1.

Publisher's Notes. This section may be superseded by § 14-298-120.

Amendments. The 2005 amendment deleted “or, on their failing to meet on that day, within five (5) days thereafter” preceding “to view” in (b).

14-298-106. Surveyors.

  1. The viewers may call to their assistance a competent surveyor to assist them in laying out and surveying or altering any road they may be ordered by the county court to view, survey, and lay out or alter.
  2. It shall be the duty of every surveyor, when called on by any viewer or reviewers, to survey any road they may be required to view or review, lay out, establish, or alter and to furnish all courses, bearings, distances, plats, and surveys of roads required by them to be laid out, established, or altered, as viewers or reviewers, when demanded by them.

History. Acts 1871, No. 26, §§ 47, 63, p. 56; C. & M. Dig., §§ 5232, 5242; Pope's Dig., §§ 6947, 6957; A.S.A. 1947, §§ 76-906, 76-920.

Publisher's Notes. This section may be superseded by § 14-298-120.

Cross References. County surveyor to accompany viewers and reviewers to run or measure proposed roads, § 14-15-702.

14-298-107. [Repealed.]

Publisher's Notes. This section, concerning penalty for neglect or refusal of viewers, reviewers, or surveyors to perform duties, was repealed by Acts 2005, No. 1200, § 2. The section was derived from Acts 1871, No. 26, § 62, p. 56; C. & M. Dig., § 5245; Pope's Dig., § 6960; A.S.A. 1947, § 76-921.

14-298-108. Notices to landowners and viewers.

  1. It shall be the duty of one (1) of the petitioners to give at least thirty (30) days' notice in writing to:
    1. The owner or his or her agents, if residing within the county, or if the owner is an incapacitated person as defined by § 28-65-104, then to the guardian of that person, if a resident of the county, through whose land the road is proposed to be laid out and established; and
    2. The viewers named in the order of the county court of the time and place of meeting as specified in the order.
      1. It is further made the duty of the principal petitioner, if the road is proposed to be laid out on or through any land owned by nonresidents of the county, to cause notice to the nonresidents of the county to be served as provided by the Arkansas Rules of Civil Procedure, and if service is not obtained, then the notice shall be published one (1) time per week for two (2) consecutive weeks in some newspaper of general circulation published in the county.
      2. If there is no newspaper published in the county, then notice shall be given to the nonresident by posting a notice of the time and place of meeting of the viewers as specified in the order of the county court.
    1. The substance of the petition for the road shall also be posted upon the door of the office of the clerk of the county court for at least two (2) weeks before the time fixed for the meeting of the viewers.

History. Acts 1871, No. 26, § 49, p. 56; C. & M. Dig., § 5234; Pope's Dig., § 6949; A.S.A. 1947, § 76-908; Acts 2005, No. 1200, § 3.

Publisher's Notes. This section may be superseded by § 14-298-120.

Amendments. The 2005 amendment substituted “thirty (30) days' notice” for “five (5) days' notice” in (a); substituted “an incapacitated person as defined by § 28-65-104” for “a minor, idiot, or insane person” in (a)(1); and substituted “served as provided … general circulation” for “published for two (2) consecutive weeks in some newspaper” in (b)(1)(A).

Case Notes

Failure to Give Notice.

A judgment of the county court establishing a public road cannot be set aside on certiorari because the owners of the land taken for the road had no notice of the meeting of the viewers appointed by the court to lay out the road and because the viewers met on a day prior to the day designated by the court for them to meet. Lonoke County v. Lee, 98 Ark. 345, 135 S.W. 833 (1911).

The fact that a landowner had no notice of the meeting of the viewers for the assessment of damages is an irregularity which does not affect the jurisdiction of the county court and does not render its judgment void. Polk v. Road Improv. Dist., 123 Ark. 334, 185 S.W. 453 (1916).

Consent of landowner must be obtained where no notice was given. Nevius v. Reed, 176 Ark. 903, 5 S.W.2d 327 (1928).

Waiver of Notice.

The fact that a landowner filed exception to the report of the viewers who were laying out a road on his land was not a waiver of his right to notice. Nevius v. Reed, 176 Ark. 903, 5 S.W.2d 327 (1928).

Cited: Johnson v. West, 89 Ark. 604, 117 S.W. 770 (1909).

14-298-109. Viewing, surveying, and laying out road.

It shall be the duty of the viewers to meet at the time and place specified in the order. After taking an oath or affirmation to faithfully and impartially discharge the duties of their appointments, respectively, they shall take to their assistance two (2) suitable persons as chain carriers and one (1) person as marker and proceed to view, survey, and lay out or alter the roads as prayed for in the petition, or as near the same as in their opinion a good road can be made with reasonable expense, taking into consideration the ground, convenience, and inconvenience and expense which will result to individuals as well as to the public if the road is established, or any part thereof, or altered as prayed for. In laying out or altering or establishing public highways, the highways shall be located as near as practicable on section and subdivision lines.

History. Acts 1871, No. 26, § 50, p. 56; 1899, No. 202, § 1, p. 364; C. & M. Dig., § 5235; Pope's Dig., § 6950; A.S.A. 1947, § 76-909; Acts 2005, No. 1200, § 4.

Publisher's Notes. This section may be superseded by § 14-298-120.

Amendments. The 2005 amendment deleted “or within five (5) days thereafter” at the end of the first sentence.

Case Notes

Liability of Viewers.

A road overseer who, in pursuance of a valid order of the county court opening a road, entered upon another's land and removed a fence was not liable for injury to personal property caused by stock entering the premises. Cockrum v. Williamson, 53 Ark. 131, 13 S.W. 592 (1891).

14-298-110. Determination of road width.

    1. The viewers shall report what width the road should be to promote public convenience.
    2. However, the county courts shall have power to determine what shall be the width of each road in their respective counties.
  1. The presumed width of a public road shall be fifty feet (50'), providing a minimum of twenty-five feet (25') of right-of-way on either side of the center line.

History. Acts 1871, No. 26, § 48, p. 56; C. & M. Dig., § 5233; Pope's Dig., § 6948; A.S.A. 1947, § 76-907; Acts 2005, No. 1200, § 5.

Publisher's Notes. This section may be superseded by § 14-298-120.

Amendments. The 2005 amendment added (b).

14-298-111. Assessment of damages.

The viewers shall assess and determine the damages sustained by any person through whose premises the road is proposed to be established, mentioning the damages to each tract separately.

History. Acts 1871, No. 26, § 51, p. 56; C. & M. Dig., § 5236; Pope's Dig., § 6951; A.S.A. 1947, § 76-910.

Publisher's Notes. This section may be superseded by § 14-298-120.

Case Notes

Judicial Review.

Court may review assessment of damages by viewers. Nemeier v. Bramlett, 103 Ark. 209, 146 S.W. 486 (1912).

Railroads.

The viewers are required to assess the damages suffered by a railroad company by the establishment of a public road across its right-of-way. St. Louis Sw. Ry. v. Royall, 75 Ark. 530, 88 S.W. 555, 88 S.W. 555 (1905).

14-298-112. Report of viewers — Contents.

Viewers shall make and sign a report in writing, stating:

  1. Their opinion in favor of or against the establishment, alteration, or vacation of a road, or any part thereof, and set forth the reason for their opinion;
  2. The commencement and termination, courses, and distances of the road, so that the road can be readily formed and located;
  3. The value of the property sought to be appropriated for the establishment of the road; and
  4. The amount of damages, if any, and to whom, which by them have been assessed and which would accrue by the establishing and opening of the road.

History. Acts 1871, No. 26, § 52, p. 56; C. & M. Dig., § 5237; Pope's Dig., § 6952; A.S.A. 1947, § 76-911.

Publisher's Notes. This section may be superseded by § 14-298-120.

14-298-113. Proceedings on report — Compensation and damages.

  1. The county court, on receiving the reports of the viewers as set out in § 14-298-112, shall cause the report to be available to all parties and shall cause a hearing to be held in which the report is read publicly.
  2. If no legal objection is made to the reports by the parties and the court is satisfied that the road, or any part thereof, will be of sufficient importance to the public to cause the damages and the compensation that have been assessed as set out in § 14-298-111 to be paid by the county, and that the amount so assessed is reasonable and just, and the report of the viewers being favorable thereto, the court shall order the damages to be paid to the persons entitled thereto from the county treasury, and thenceforth the road shall be considered a public road.
  3. If the court is of the opinion that the road is not of sufficient public utility for the county to pay the compensation and damages assessed as set out in § 14-298-111 and the petitioners refuse to pay the compensation and damages, then the road shall not be declared a public highway or road and the costs accruing by reason of the application shall be paid by the petitioners, as provided in § 14-298-103. If the report of the viewers is against the proposed road or alteration, or if the road is not of sufficient public utility, in the opinion of the court, then no further proceedings shall be had thereon and the obligors in the bond securing costs and expenses shall be liable for the full amount of the costs and expenses.

History. Acts 1871, No. 26, § 53; C. & M. Dig., § 5238; Pope's Dig., § 6953; A.S.A. 1947, § 76-912; Acts 2005, No. 1200, § 6.

Publisher's Notes. This section may be superseded by § 14-298-120.

Amendments. The 2005 amendment inserted the subdivision (a) designation; substituted “available to all parties and shall cause a hearing to be held in which the report is read publicly” for “read publicly on the second day of the session” in (a); redesignated former (1) and (2) as present (b) and (c); and inserted “by the parties” in (b).

Case Notes

Costs and Expenses.

In proceeding to establish county road where judgment was entered against petitioners for the costs and damages instead of county, judgment could be corrected by nunc pro tunc entry if result of clerical error, but even if not error petitioners could not complain since if petitioners do not pay, or are unwilling to do so, the court might declare such road not a public highway and adjudge all costs against petitioners. Cain v. Littrell, 202 Ark. 387, 150 S.W.2d 630 (1941).

Description of Road.

County court should establish the road substantially as called for in the petition, and if only a part of the road may be proper, that part should be substantially on the section lines described in the petition. Wallace v. Desha County, 194 Ark. 848, 109 S.W.2d 950 (1937).

In the location or establishment of the road, all portions of it do not need to conform with perfect exactitude to the description called for in the petition, but the court may vary from the line to avoid unnecessary inconvenience, unreasonable costs, or for other justifiable reasons. Wallace v. Desha County, 194 Ark. 848, 109 S.W.2d 950 (1937).

County court's order establishing road, approved by the circuit court on appeal, was void where it was so indefinite as to the description of location of the roadway that it could not be found. Wallace v. Desha County, 194 Ark. 848, 109 S.W.2d 950 (1937).

Judicial Review.

Court may review assessment of damages by viewers. Nemeier v. Bramlett, 103 Ark. 209, 146 S.W. 486 (1912).

In proceedings looking to the establishment of public roads, the report of the viewers cannot be considered until the succeeding term of the county court after the term at which the viewers are appointed. Rust v. Kocourek, 130 Ark. 39, 196 S.W. 938 (1917).

Rights of Landowners.

The owner of land through which a public road had been laid out had no right to obstruct it, though no compensation had been made to him; he should have resisted the application for it in the county court, or resorted to proper means to have it vacated. Draper v. Mackey, 35 Ark. 497 (1880).

For establishment of road, determination by court of controversy as to ownership of coterminous lands held by some of the parties to the proceeding under the statute of limitations was not necessary. Wallace v. Desha County, 194 Ark. 848, 109 S.W.2d 950 (1937).

14-298-114. Order opening road.

After any road has been established and declared a public road, the county court shall issue an order declaring the road to be opened and the order shall be filed of record with the county clerk.

History. Acts 1871, No. 26, § 54, p. 56; C. & M. Dig., § 5239; Pope's Dig., § 6954; A.S.A. 1947, § 76-913; Acts 2005, No. 1200, § 7.

Publisher's Notes. This section may be superseded by § 14-298-120.

Amendments. The 2005 amendment substituted “public road” for “public highway” and “declaring the road” for “to the overseer of the proper road district directing the road,” and inserted “and the order shall be filed of record with the county clerk.”

14-298-115. Review.

  1. After the viewers of any county road shall have made return in favor of the road and before the road has been established, any citizen of the county whose lands are affected by the road may apply by petition to the county court for a review of the road, as provided in § 14-298-103.
  2. The court, on being satisfied from the petition that a review should be granted, shall appoint three (3) disinterested freeholders of the county to review the road and issue their order to the reviewers directing them to meet at a time and place therein specified. After taking the oath required of viewers, they shall proceed to examine the route surveyed for the road by the former viewers and make a report in writing to the court stating their opinion in favor of or against the establishment of the road, or any part thereof, and their reasons therefor.
  3. The petitioners for review shall give at least thirty (30) days' notice to the principal petitioner for the road of the time and place of meeting of the reviewers.
  4. If a review is granted, then no further proceedings shall be had until the reviewers have reported their action to the court.
    1. If the report of the reviewers is in favor of the road, the road shall be established, recorded, and opened, and the persons bound for the review shall pay into the county treasury the amount of the costs of the review.
    2. If the report is against the establishment of the road, no further proceedings shall be had about the road before the court, and the persons executing the first bond shall pay into the county treasury the costs and expenses of the views, survey, and review of the road.

History. Acts 1871, No. 26, § 55, p. 56; C. & M. Dig., § 5240; Pope's Dig., § 6955; A.S.A. 1947, § 76-914; Acts 2005, No. 1200, § 8.

Publisher's Notes. This section may be superseded by § 14-298-120.

Amendments. The 2005 amendment deleted “or within five (5) days thereafter” at the end of the first sentence in (b); and substituted “thirty (30) days' notice” for “five (5) days' notice” in (c).

14-298-116. Appeal to circuit court.

    1. An appeal from the final decision of the county court for a new county road or for vacating, altering, or reviewing any county road shall be allowed to the circuit court.
    2. Notice of the appeal shall be given within thirty (30) days from the date the order of the county court is filed of record with the county clerk.
  1. The appellant, within thirty (30) days following the decision, shall enter into bond, with good and sufficient security, to be approved by the clerk of the county court, for the payment of all costs and expenses arising from the appeal.
  2. Incapacitated persons, as defined by § 28-65-104, or their guardians may appeal without giving bond.
  3. The circuit court may order another view or review of the road or make other orders as justice of the case demands.
  4. The county court, after notice of appeal has been given, shall not issue any order in the premises until after thirty (30) days have expired from the time of making the decision appealed from.
  5. If the appeal has not been perfected agreeably to the provisions of this chapter, the clerk shall issue the order for the opening of the road.
  6. The decisions of the circuit court on petitions for roads taken into the county by appeal shall be recorded in the record of the county court from which the appeal is taken.

History. Acts 1871, No. 26, § 56, p. 56; C. & M. Dig., § 5241; Pope's Dig., § 6956; A.S.A. 1947, § 76-915; Acts 2005, No. 1200, § 9.

Publisher's Notes. This section may be superseded by § 14-298-120.

Amendments. The 2005 amendment substituted “shall be given within thirty (30) days from the date the order of the county court is filed of record with the county clerk” for “is given by the appellant during the same term of the county court at which the decision was made” in (a)(2); substituted “thirty (30) days” for “ten (10) days” in (b) and (e); and substituted “Incapacitated persons, as defined by § 28-65-104” for “Minors, idiots, and lunatics” in (c).

Case Notes

Applicability.

This section was not repealed by the general law regulating appeals. Baugher v. Rudd, 53 Ark. 417, 14 S.W. 623 (1890); Ward v. Wilson, 127 Ark. 266, 191 S.W. 917 (1917).

Where road is extended under provisions of § 14-298-121, the general statute for appeals governs and not this section. Carter v. Randolph County, 146 Ark. 221, 225 S.W. 297 (1920).

Bond.

Appeal was not invalidated because bond was signed by appellants only, nor because it was approved by the judge instead of by the clerk. Nemeier v. Bramlett, 103 Ark. 209, 146 S.W. 486 (1912).

Perfection of Appeals.

Where there is delay after the first day of the term in the filing of the transcript, it becomes a matter of discretion with the trial court whether the appeal may be prosecuted, and it should be dismissed in the absence of a satisfactory explanation of the delay. Briner v. Holleman, 115 Ark. 213, 170 S.W. 1010 (1914).

Quashing of Proceedings.

A writ of certiorari to quash proceedings in the county court for the building of a new road asked upon the ground that the record failed to show that 10 freeholders of the county petitioned for the road would be denied where the applicant waited nearly a year before applying for the writ and where the evidence dehors the record showed that at least 10 of the petitioners for the road were freeholders of the county. Johnson v. West, 89 Ark. 604, 117 S.W. 770 (1909).

14-298-117. Vacation of road.

    1. When any county road or any part of any county road is considered useless, any ten (10) citizens residing in that portion of the county may make application by petition agreeable to § 14-298-124 to the county court to vacate the road, setting forth in the petition the reason why the road ought to be vacated.
    2. The petition shall be publicly read by the county court at the hearing on the petition, with the proof of notice and publication required by this chapter.
  1. If no objections are made and filed, the county court may declare the road vacated, or any part thereof that it may deem necessary.
  2. If objection is made in writing, the county court shall appoint three (3) viewers to view the road who shall proceed, after taking the oath or affirmation required by this chapter, to view the road as aforesaid and make a written report of their opinion thereon, and their reason for the opinion, to the county court. If the viewers shall report in favor of vacating the road, or any part thereof, the court, if it deems the report reasonable and just, may declare the road, or any part thereof, vacated, agreeable to the report of the viewers.
  3. The costs thereof and expenses incident thereto shall be paid by the petitioners unless the county court shall order the costs and expenses paid out of the county treasury.

History. Acts 1871, No. 26, § 58, p. 56; C. & M. Dig., § 5247; Pope's Dig., § 6966; A.S.A. 1947, § 76-918; Acts 2005, No. 1200, § 10.

Amendments. The 2005 amendment, in (a)(2), substituted “by the county court at the hearing on petition” for “at a regular session of the county court” and deleted the former last sentence.

Case Notes

Grounds.

The court cannot arbitrarily vacate a road without finding it has become useless. Hill v. McClintock, 175 Ark. 1059, 1 S.W.2d 564 (1928).

Procedures Required.

Where a county court regularly made an order vacating an old road and establishing a new public highway in lieu thereof, it could not, at a subsequent term, vacate the order and reestablish the old road, without the notice, petition, and review prescribed by law. Reiff v. Conner, 10 Ark. 241 (1849) (decision under prior law).

In a proceeding to vacate a road, failure to give notice of the proceeding and failure to appoint viewers renders the order vacating the road erroneous. Hill v. McClintock, 175 Ark. 1059, 1 S.W.2d 564 (1928).

Because any person could object to a petition to vacate a county road pursuant to subsection (c) of this section, a judge who was not a resident of the county where the road was located could object; the judge also was permitted to appeal from a decision vacating the road because the judge was a party to the proceedings to vacate the road and was aggrieved by the ruling. Brown v. Hicks, 2011 Ark. 41, 378 S.W.3d 689 (2011).

Reversion to Landowners.

Where a road is established by limitation or prescription and the road is a paved roadway with center line markings which appears to be a regularly-traveled through highway, the responsibility for the land does not involuntarily and without notice revert to the abutting or preceding landowners simply because of an alleged de facto “abandonment” and non-use of a road for a continuous period of seven years. Lacey v. Bekaert Steel Wire Corp., 619 F. Supp. 1234 (W.D. Ark. 1985), aff'd, 799 F.2d 434 (8th Cir. 1986).

Cited: Reding v. Wagner, 350 Ark. 322, 86 S.W.3d 386 (2002).

14-298-118. Compensation.

  1. All persons required to render services under the provisions of this chapter as viewers or reviewers, chain carriers, markers, or surveyors shall be paid reasonable costs and expenses based upon the current market rate out of the registry of the court for each day necessarily employed, and payments are to be charged as costs and expenses against a petitioner.
  2. The amount due to each person and the number of days employed shall be certified under oath by the viewers or reviewers, as the case may be.
  3. The county shall be reimbursed for the payment so made and for all other necessary expenses incident to the proceedings, by a petitioner, as hereinbefore provided.
  4. The county clerk shall receive fees he or she may be entitled to by law, to be taxed as costs and paid as provided in this section.

History. Acts 1871, No. 26, § 64, p. 56; C. & M. Dig., § 5243; Pope's Dig., § 6958; A.S.A. 1947, § 76-922; Acts 2005, No. 1200, § 11.

Amendments. The 2005 amendment rewrote (a).

14-298-119. Limitation on damages for land taken.

No part of this chapter shall be so construed as to entitle any person whose lands, or any part thereof, may be appropriated under this chapter to a public highway to any further compensation and damages than the value of property appropriated and damages sustained by the owner thereof by reason of a road being established on and over the property, over and above such value.

History. Acts 1871, No. 26, § 71, p. 56; C. & M. Dig., § 5244; Pope's Dig., § 6959; A.S.A. 1947, § 76-923.

Publisher's Notes. This section may be superseded by § 14-298-120.

14-298-120. Opening, changing, and classifying roads by order of county court.

    1. The county courts shall have power to:
      1. Open new roads;
      2. Make changes in old roads, as they deem necessary and proper; and
      3. Classify the roads and bridges in their respective counties for the purposes of this section and § 27-67-212.
      1. When the change shall be made or any new road opened, the road shall be located on section lines as nearly as may be, taking into consideration the conveniences of the public travel, contour of the country, etc.
      2. Roads hereafter established or opened as public roads shall not be less than fifty feet (50') wide, providing a minimum of twenty-five feet (25') of right-of-way on either side of the center line.
    2. An appropriate order of the county court shall be made and entered of record therefor.
    1. Any five (5) or more interested landowners may petition the county court for the opening of any road as a public road.
    2. The petition shall give the starting point and terminus of the road, as well as intermediate points, and such other description or plat as will permit the location of the road by the county surveyor.
      1. The petition shall be accompanied by a bond signed by at least one (1) of the petitioners and by other good and sufficient sureties.
      2. The bond shall provide for reimbursing the county for any claims that may be sustained against the county for lands taken by opening of the road.
    1. The petitioners shall cause notice to be served upon the landowners as provided by the Arkansas Rules of Civil Procedure.
    1. On filing the petition, the county court shall set a date for the hearing.
    2. If service is not obtained, then by one (1) insertion for two (2) weeks at least thirty (30) days before the hearing in some newspaper having a general circulation in the county, the county clerk shall publish a notice as to the filing of the petition, naming the day on which the county court will hear the parties and those for and those against the opening of the road.
  1. On the day named, the county court shall hear those for and against the opening of the petitioned road and shall grant or deny the prayer of the petitioners as may be deemed wise and expedient by the court and shall make and cause to be entered an appropriate court order either laying out or changing the road or denying the petition.
  2. Upon the entry of the foregoing order of the county court, the clerk of the court within ten (10) days shall cause a copy of the order to be served upon each of the owners of record of any lands affected by the order. The service shall be in the form and manner provided by law for service in civil actions.
  3. Upon return to be made by the sheriff showing service of the order upon any landowner, the clerk shall note in the records of the county court the record of the service, showing the date thereof and the person served, which shall be and become a part of the permanent records of the court.
  4. Upon the entry of the order by the county court, the records shall constitute valid constructive notice to all subsequent purchasers of the lands and all other persons acquiring or holding the lands by or through the landowners affected.
  5. If the owner of the land over which any road shall hereafter be so laid out by the court shall refuse to give a right-of-way therefor, then the owner shall have the right to present his or her verified claim to the county court for damages the owner may claim by reason of the road's being laid out on his or her land.
  6. If the owner is not satisfied with the amount allowed by the court, he or she shall have the right to appeal, as now provided by law from judgments of the county court.
  7. However, no claim shall be presented for such damages after twelve (12) months from the date of the service of the order as provided in this section. When the order is made and entered of record laying out or changing any road, the county court or judge thereof shall have the right to enter upon the lands of the owner and proceed with the construction of the road. All damages allowed under this section shall be paid out of any funds appropriated for roads and bridges, and if no funds are so appropriated, then damages shall be paid out of the general revenue fund of the county.
  8. This section and § 27-67-212 shall be cumulative to all existing laws and parts of laws, and shall not be construed as to repeal any existing laws or parts of laws, unless they are in conflict herewith, and then only to the extent of the conflict.

History. Acts 1965, No. 387, §§ 1, 2, 4; A.S.A. 1947, §§ 76-926, 76-927, 76-928n; Acts 2005, No. 1200, § 12.

Amendments. The 2005 amendment rewrote present (a)(2)(B); redesignated former (c) as present (c)(1); added (c)(2); deleted “which date shall not be more than thirty (30) days from the filing thereof” from the end of present (d)(1); and rewrote present (d)(2).

Cross References. Classification of roads, § 14-299-101.

Case Notes

Construction.

A county judge's executive authority, under Ark. Const. Amend. 55, § 3, and under this section, to make changes in the routes of old county roads is not negated by § 14-298-117; § 14-298-117 is merely a procedure whereby any ten citizens may make application by petition asking the county judge to vacate a road, and it in no way conflicts with this section. Reding v. Wagner, 350 Ark. 322, 86 S.W.3d 386 (2002).

Purpose.

This section corrected landowner notice defects of § 14-298-121 in condemnation proceedings. Greig v. Crawford County, 256 Ark. 202, 506 S.W.2d 523 (1974); Arkansas State Hwy. Comm'n v. Dotson, 301 Ark. 54, 781 S.W.2d 459 (1989).

In accord with bound volume. Arkansas State Hwy. Comm'n v. Dotson, 301 Ark. 54, 781 S.W.2d 459 (1989).

Claims for Damages.

This section allows one year to file claim for condemnation damages. Greig v. Crawford County, 256 Ark. 202, 506 S.W.2d 523 (1974).

Making the date of taking the same as the date of the condemnation order did not conflict with this section where the landowners filed a claim for damages within 12 months of the entry of the order, but it had not been shown when they received notice. Greig v. Crawford County, 256 Ark. 202, 506 S.W.2d 523 (1974).

The statute of limitations on damages for the taking by the State Highway Commission of a fee title to a road crossing had not begun to run as no legal notice was sent to the owner and the commission's entrance on the land was not notice to the owner, since there was a prior easement on the land which the owner knew about and the commission's entrance upon the land was consistent with the easement. Arkansas State Hwy. Comm'n v. Coffelt, 257 Ark. 770, 520 S.W.2d 294 (1975).

County Roads.

County road held not created. Ark. Game & Fish Comm'n v. Lindsey, 292 Ark. 314, 730 S.W.2d 474 (1987).

Trial court properly awarded an injunction to a partnership in its action for the removal of a large flower box that homeowners placed on the eastern end of a road in a subdivision because nothing that the trial court did invaded the county judge's province; the trial court declared, as it had the authority to do, that the homeowners could not obstruct a public road and interfere with the partnership's access to its property. Jones v. Juanita S. Wood Family Ltd. P'ship, 95 Ark. App. 326, 236 S.W.3d 573 (2006).

Petition by Highway Commission.

While this section gives the county court the power to condemn land on its own motion and upon petition of interested landowners, it does not permit a petition of the State Highway Commission to be acted on by the county court. Arkansas State Hwy. Comm'n v. Dotson, 301 Ark. 54, 781 S.W.2d 459 (1989).

Where the record contained no petition to condemn land by the State Highway Commission to the county court, and the recitation by the county court order that there was such a petition was apparently a reference to action by the commission to “call upon” the county to act as permitted in § 27-67-212(a), the county was the condemning authority, and the commission was not a party. Arkansas State Hwy. Comm'n v. Dotson, 301 Ark. 54, 781 S.W.2d 459 (1989).

Cited: Gipson v. Brand, 252 Ark. 1136, 482 S.W.2d 630 (1972); Oliver v. Washington County, 328 Ark. 61, 940 S.W.2d 884 (1997).

14-298-121. Opening or altering roads in counties voting for road tax generally.

    1. The county courts shall have power to:
      1. Open new roads;
      2. Make changes in old roads as they may deem necessary and proper; and
      3. Classify the roads and bridges in their respective counties for the purpose of this chapter.
      1. When the change is made or any new road is opened, the road shall be located on section lines as nearly as may be, taking into consideration the conveniences of the public travel, contour of the country, etc.
      2. Roads hereafter established or opened as public roads shall not be less than fifty feet (50') wide, providing a minimum of twenty-five feet (25') of right-of-way on either side of the center line.
    2. An appropriate order of the county court shall be made and entered of record.
    1. Any five (5) or more interested landowners may petition the county court for the opening of any road as a public road.
    2. The petition shall give the starting point and terminus of the road, as well as intermediate points, and other description or plat that permits the location of the road by the county surveyor.
    1. The petition shall be accompanied by a bond signed by at least one (1) of the petitioners and by other good and sufficient sureties.
    2. The bond shall provide for reimbursing the county for any claims that may be sustained against the county for lands taken by opening of the road.
    1. On filing the petition, the county court shall set a date for the hearing.
      1. It shall be the duty of one (1) of the petitioners to give at least thirty (30) days' notice in writing to the owners as required by § 14-298-108.
      2. If service is not obtained, then by one (1) insertion for two (2) weeks in some newspaper published and having a general circulation in the county, the county clerk shall publish a notice as to the filing of the petition and naming the day on which the county court will hear the parties and those for and against the opening of the road.
  1. On the day named, the county court shall hear those for and against the opening of the petitioned-for road and shall grant or deny the prayer of the petitioners as they may be deemed wise and expedient by the court and shall make and cause to be entered an appropriate court order either laying out the road or denying the petition.
  2. If the owner of the land over which any road shall hereafter be so laid out by the court shall refuse to give a right-of-way therefor or to agree upon the damages therefor, then that owner shall have the right to present his or her verified claim to the county court for such damages as the owner may claim by reason of the road being laid out on his or her land, and if the owner is not satisfied with the amount allowed by the court, the owner shall have the right to appeal as now provided by law from judgments of the county court.
    1. However, no claim shall be presented for the damages after twelve (12) months from the date of the order laying out or changing any road.
    2. When the order is made and entered of record laying out or changing any road, the county court or county judge shall have the right to enter upon the lands of the owner and proceed with the construction of the road.
    3. All damages allowed under this chapter shall be paid out of any funds appropriated for roads and bridges, and if no such funds exist, then damages shall be paid out of the general revenue fund of the county.

History. Acts 1899, No. 200, § 4, p. 347; 1911, No. 422, § 1; C. & M. Dig., § 5249; Acts 1923, No. 611, § 1; Pope's Dig., § 6968; A.S.A. 1947, § 76-917; Acts 2005, No. 1200, § 13.

Publisher's Notes. This section may be superseded by § 14-298-120.

Amendments. The 2005 amendment rewrote present (a)(2)(B); deleted “which date shall not be more than thirty (30) days from the filing thereof” from the end of present (d)(1); rewrote present (d)(2); in (f), substituted “the owner” for “he” three times and inserted “or her”; and deleted former (h).

Case Notes

Constitutionality.

There is no requirement in the Arkansas Constitution with respect to the state taking property for strictly public use that there shall be a hearing on the question of necessity or that notice of the taking must be given. Sloan v. Lawrence County, 134 Ark. 121, 203 S.W. 260 (1918).

In the establishment of new roads, county courts cannot disregard an applicable provision of the Arkansas Constitution, including the provision against the taking of property without compensation or the provisions of Ark. Const., Amend. No. 11. Casey v. Douglas, 173 Ark. 641, 296 S.W. 705 (1927); Independence County v. Lester, 173 Ark. 796, 293 S.W. 743 (1927).

This section is not invalid as providing for a taking of private property by an order of the county court for a public road without notice to the interested landowner or a determination of the necessity therefor. Sloan v. Lawrence County, 134 Ark. 121, 203 S.W. 260 (1918); Crawford County v. Simmons, 175 Ark. 1051, 1 S.W.2d 561 (1928); State Life Ins. Co. v. Arkansas State Hwy. Comm'n, 202 Ark. 12, 148 S.W.2d 671 (1941).

Power of the county to provide for payment of compensation to landowner whose land is condemned for highway purposes is limited by Ark. Const., Amend. No. 10, which prohibits making of such payment except from current revenues coming in during the year in which the order of condemnation is entered, or possibly during the year in which the land is actually taken, and such amendment must be read in connection with Ark. Const., Art. 2, § 22, which prohibits taking of private property for public use without just compensation. Lee County v. Holden, 82 F. Supp. 353 (E.D. Ark. 1949).

In General.

The 1923 amendment had the effect to leave the law, so far as it relates to the excepted counties, as though no amendment had been made to the section. Casey v. Douglas, 173 Ark. 641, 296 S.W. 705 (1927).

Entry upon land condemned for highway purposes affords the proprietor an opportunity to exact payment or to require a guaranteeing deposit; if there is neither payment nor deposit, resort may be had to injunction, but should the proprietor stand by and permit the land to be occupied and the improvement to proceed until substantial road work has been done, he is relegated to the county's credit, the demand is against revenues for the year possession is taken, and the claim is one to be paid on a parity with others recognized by law as contractual, and it is inferior to claims arising from the performance of indispensable services. Miller County v. Beasley, 203 Ark. 370, 156 S.W.2d 791 (1941).

Appeals.

A landowner affected by an order to lay out a road has a right to appeal from such an order. Burns v. Harrington, 162 Ark. 162, 257 S.W. 729 (1924).

Appeal from a decision under this section is to the circuit court. Greig v. Crawford County, 256 Ark. 202, 506 S.W.2d 523 (1974).

Authority to Condemn Land.

In a proceeding to establish a new road, the circuit court can exercise no greater power or authority than was within the jurisdiction of the county court. Casey v. Douglas, 173 Ark. 641, 296 S.W. 705 (1927).

A county court's order condemning land for state highway purposes was not void for failing to state that the proposed changes in the highway were practicable and would be for the best interest of the county and were of sufficient importance to the public to warrant payment for land taken. Washington County v. Broyles, 179 Ark. 733, 17 S.W.2d 872 (1929).

Action to condemn is a proceeding in rem and, following county court's orders condemning property and disallowing claim for compensation for reason of insufficient funds, chancery court had jurisdiction to restrain all persons from entering the property even though the State Highway Commission was not served with process, landowner being not limited to remedy by appeal to circuit court and injunction being not a collateral attack on the judgment of the county court. Arkansas State Hwy. Comm'n v. Hammock, 201 Ark. 927, 148 S.W.2d 324 (1941).

Provision for opening road by petition is additional method, and county court may open a new road without petition. Prewitt v. Warfield, 203 Ark. 137, 156 S.W.2d 238 (1941).

The action of taking land is not completed when the judgment of condemnation is rendered; it requires an order of condemnation followed by entry upon the land. Miller County v. Beasley, 203 Ark. 370, 156 S.W.2d 791 (1941).

—Hearing.

In condemning property for highway purposes, a hearing upon the question of necessity is not essential. Arkansas State Hwy. Comm'n v. Hammock, 201 Ark. 927, 148 S.W.2d 324 (1941).

—Notice.

Where the county court ordered the widening of a public road and condemned a strip of private property for such purpose, the recording of the court order and the actual taking of the property thereunder were, in the very nature of things, actions of such publicity as to constitute notice, and the property owner was given 12 months within which to apply to the county court for an allowance of compensation, when a hearing would then be given on that question. Sloan v. Lawrence County, 134 Ark. 121, 203 S.W. 260 (1918).

This section is ostensibly defective in that it makes no provision for the giving of notice to the landowner whose property is being taken, notice being essential as the landowner is entitled to a hearing upon the issue of compensation. Actual entry upon the land, while not being notice of the extent to which the land is being taken, supplies the required notice to the landowner; however, the right to compensation is lost if the owner fails to file his claim within one year after the entry. Arkansas State Hwy. Comm'n v. Cook, 233 Ark. 534, 345 S.W.2d 632 (1961); Arkansas State Hwy. Comm'n v. Montgomery, 237 Ark. 857, 376 S.W.2d 662 (1964) (decisions prior to § 14-298-120).

The burden is on the State Highway Commission claiming under a county court order to show that the affected landowner had notice of the order. Arkansas State Hwy. Comm'n v. Jerry, 241 Ark. 591, 408 S.W.2d 864 (1966).

Notice is essential because the landowner is entitled to a hearing upon the issue of compensation. Arkansas State Hwy. Comm'n v. Cordes Motors, Inc., 315 Ark. 285, 867 S.W.2d 178 (1993).

Notice by widening a road at one place does not constitute a notice of taking on the same road at another place. Arkansas State Hwy. Comm'n v. Cordes Motors, Inc., 315 Ark. 285, 867 S.W.2d 178 (1993).

Proof of notice requires a showing of either a prior filing of a claim for compensation, or an actual entry on the land that constitutes a substantial invasion; an entry that is physical and visible and would alert an ordinary person to the fact that the government is exercising dominion over the property. Arkansas State Hwy. Comm'n v. Cordes Motors, Inc., 315 Ark. 285, 867 S.W.2d 178 (1993).

The burden is on the condemnor to prove notice; however, proof that notice was given to an owner will constitute notice to all subsequent owners. Arkansas State Hwy. Comm'n v. Cordes Motors, Inc., 315 Ark. 285, 867 S.W.2d 178 (1993).

—Parties.

Where the county court makes an order establishing a road through certain lands, a citizen and taxpayer owning lands taken by the road may make himself a party to the proceeding and appeal from the orders of the court. McMahan v. Ruble, 135 Ark. 83, 204 S.W. 746 (1918).

State is real party in interest in action filed by State Highway Commission for condemnation of land for highway, though this section makes it a duty on the county to provide for compensation for the land taken, as real test in determination as to whether state is a real party in interest is not necessarily the financial interest involved on the part of the state, but whether the state gets the benefit of the decree of condemnation, and since highway is for the benefit of the state as a whole, the state is the real party in interest. Lee County v. Holden, 82 F. Supp. 353 (E.D. Ark. 1949).

Compensation for Damages.

An order condemning land to open up a highway to connect an established road with a proposed private toll-bridge is not for the benefit of the bridge company but for the benefit of the public, and the county is responsible for the compensation found to be due owners for the right-of-way for the public road. McClintock v. Bovay, 163 Ark. 388, 260 S.W. 395 (1924).

Condemnation of lands for highway purposes by the county court creates ipso facto a valid claim for compensation in favor of the landowner against the county. Independence County v. Lester, 173 Ark. 796, 293 S.W. 743 (1927).

An order of the county court for a change in a road was not void as a taking of private property for public use without compensation, since payment for taking private property need not precede the taking of the property. Crawford County v. Simmons, 175 Ark. 1051, 1 S.W.2d 561 (1928).

Judgment of the county and circuit courts attempting to condemn and take lands for new road in the face of undisputed evidence that there was not, and there would not be for a number of years, money to pay for the lands was an attempt to take private property for public use without compensation. Dowdle v. Raney, 201 Ark. 836, 147 S.W.2d 42 (1941).

County court had no right to condemn property and at the same time disallow compensation by reason of insufficient funds with which to pay the landowner's claim. Arkansas State Hwy. Comm'n v. Hammock, 201 Ark. 927, 148 S.W.2d 324 (1941).

This section imposes upon the county the duty of paying compensation for lands condemned for highway purposes. Lee County v. Holden, 82 F. Supp. 353 (E.D. Ark. 1949).

The enjoinment of the State Highway Commission from enlarging an existing right-of-way without compensating the abutting landowners is proper. Arkansas State Hwy. Comm'n v. Cook, 236 Ark. 251, 365 S.W.2d 463 (1963).

In the state's exercise of its right of eminent domain without notice to the landowner, the individual's right to his day in court is on the question of compensation for the property taken and not its appropriation. Ark. State Hwy. Comm'n v. Scott, 238 Ark. 883, 385 S.W.2d 636 (1965).

An actual taking of land is not necessary to be entitled to damages. A land-taking without proper notice, even though the land is not used, gives rise to an action for damages. Greig v. Crawford County, 256 Ark. 202, 506 S.W.2d 523 (1974).

If the landowner in a condemnation suit pursues the issue of damages, he does not thereby waive the right to challenge the validity of the order. Greig v. Crawford County, 256 Ark. 202, 506 S.W.2d 523 (1974).

—Allowance of Damages.

Where the owner of land taken for a public highway conveyed the land and assigned his claim for damages to the grantee, the latter could recover the damages. Johnson v. Washington County, 179 Ark. 1116, 20 S.W.2d 179 (1929).

Claim for damage for taking land for public use must be paid out of the road and bridge fund, if there is sufficient money in the fund to do so; otherwise the county court is authorized to use the money in the general revenue fund. Washington County v. Day, 197 Ark. 1081, 126 S.W.2d 602 (1939).

Landowners could not be required to accept a warrant in payment of their judgment for taking their lands for public purposes on a fund which showed a large net deficit, but they could require that a warrant be issued payable out of an available fund containing a net balance sufficient to pay their adjudicated claim. Washington County v. Day, 197 Ark. 1081, 126 S.W.2d 602 (1939).

Payment for lands taken for highway purposes or damaged incidentally must be from revenues of the fiscal year in which the obligation accrues. Miller County v. Beasley, 203 Ark. 370, 156 S.W.2d 791 (1941).

Where the State Highway Commission secured an order in the circuit court condemning land for highway purposes and landowner continued to occupy the land, planting a crop, and many months thereafter the commission took possession of the land and constructed the highway thereby destroying the crop, the damage of the landowner for normal and natural use of his land was to be calculated as of the date of actual entry rather than as of date of the county court order. State Hwy. Comm'n v. Holden, 217 Ark. 466, 231 S.W.2d 113 (1950).

Damage to contiguous land in a condemnation action was held to be a question for the jury, and it is error to inform jury that damages cannot accrue upon land not actually taken by condemnation. Greig v. Crawford County, 256 Ark. 202, 506 S.W.2d 523 (1974).

—Disallowance of Claims.

Property owner enjoined by decree from interfering with land condemned for highway purpose, whose claim for damages was disallowed by the county court, having a complete and adequate remedy by appeal, could not maintain an action for damages in circuit court. Arkansas State Hwy. Comm'n v. Means, 192 Ark. 628, 93 S.W.2d 314 (1936).

Attempt by county court to appropriate lands for new road by allowing the owners damages in the sum of one and one-half times the assessed value of the lands was an arbitrary allowance contrary to this section. Dowdle v. Raney, 201 Ark. 836, 147 S.W.2d 42 (1941).

—Time Limitation.

Where the county court, without notice to landowners, entered an order in June, 1924 condemning land for a public road but made no attempt until January, 1926 to put the order into effect, at which time the road was surveyed and laid out, claims of landowners for damages filed in April, 1926 were not barred by the one-year limitation, since the owners were not charged with notice of the order of condemnation until the county took their property. Greene County v. Hayden, 175 Ark. 1067, 1 S.W.2d 803 (1928).

Although order was dated March 17, 1928, where it was not filed with clerk until September 28, 1928, landowner had one year from the latter date to file a claim for damages. Hempstead County v. Gilbert, 182 Ark. 280, 31 S.W.2d 297 (1930).

In resolving the question as to whether a claim against the county for damages occasioned by the widening of the roadbed of a highway would be barred by the one-year statute of limitations where on April 10, 1956, the county court entered an order condemning the right-of-way and in April or May of 1956 plaintiffs' land was actually entered on and the entire work completed approximately in September of 1957, but plaintiffs did not file their claim until November 19, 1957, the argument that the statute of limitations did not begin to run until the extent of plaintiff's damages could be ascertained would not be pertinent, since the extent of eventual loss was demonstrated early in May of 1956, the plans of the highway commission being detailed, and even the physical grading being completed more than a year before the claim was filed, the insurmountable obstacles necessary to justify a rule indefinitely postponing a running of limitations thus not being present. Hot Spring County v. Fowler, 229 Ark. 1050, 320 S.W.2d 269 (1959).

The fact that a county judge advised a party to wait until a highway was completed before trying to settle for the damage to be done, stating further his belief that there would be plenty of time to settle after the road was completed, was insufficient to give rise to an estoppel, the judge not promising the county would not plead the statute of limitations and the judge not being able by a casual conversation in the street to bind the county. Hot Spring County v. Fowler, 229 Ark. 1050, 320 S.W.2d 269 (1959).

The burden of proving actual notice to a landowner is on the State Highway Commission when there is no payment of compensation or publication of notice, and this burden is not met by evidence of ditching and fencing when such evidence does not indicate where the ditches or fences were, for improving and paving an existing road is insufficient to put adjoining landowners on notice that additional lands were taken so as to start the one year statute of limitations for filing claims for taking lands by condemnation. Arkansas State Hwy. Comm'n v. Dean, 236 Ark. 484, 367 S.W.2d 107 (1963).

Ditching and laying tile by the State Highway Commission within a 5½-foot strip belonging to landowners was such an entry as would constitute notice of the taking of the property, and was not merely a temporary interruption of proprietary use as alleged by the landowners, so as to commence the running of the one-year statutory limitation for filing claims for just compensation. Arkansas State Hwy. Comm'n v. Montgomery, 237 Ark. 857, 376 S.W.2d 662 (1964).

In the absence of any notice of the condemnation the 12 months from the date of the order of taking for the landowner to file his claim means 12 months from the actual entry on the land. Arkansas State Hwy. Comm'n v. Gladden, 238 Ark. 988, 385 S.W.2d 934 (1965).

Where record affirmatively shows, that landowners knew their land was being taken for highway purposes more than 12 months before the claim was filed, their claim was properly barred by the statute of limitations. Runyan v. Clark County, 240 Ark. 543, 400 S.W.2d 651 (1966).

Although a landowner has one year in which to protest the taking of his land for value by the state, the year does not begin to run until he is served with notice by legal process or until an entry is made by the condemning agent. Arkansas State Hwy. Comm'n v. French, 246 Ark. 665, 439 S.W.2d 276 (1969).

The one year statute of limitation is not set in motion until the landowner has notice or knowledge of the order condemning the property. Arkansas State Hwy. Comm'n v. Marlar, 247 Ark. 710, 447 S.W.2d 329 (1969).

This section allows one year to file claim for condemnation damages. Greig v. Crawford County, 256 Ark. 202, 506 S.W.2d 523 (1974).

County Roads.

County road held not created. Ark. Game & Fish Comm'n v. Lindsey, 292 Ark. 314, 730 S.W.2d 474 (1987).

Cited: Crawford County v. Simmons, 175 Ark. 1051, 1 S.W.2d 561 (1928); State Life Ins. Co. v. Arkansas State Hwy. Comm'n, 202 Ark. 12, 148 S.W.2d 671 (1941); Hot Spring County v. Bowman, 229 Ark. 790, 318 S.W.2d 603 (1958); Borden v. Armstrong, 240 Ark. 1050, 403 S.W.2d 731 (1966); Arkansas State Hwy. Comm'n v. Dotson, 301 Ark. 54, 781 S.W.2d 459 (1989); Dotson v. Madison County, 311 Ark. 395, 844 S.W.2d 371 (1993); Oliver v. Washington County, 328 Ark. 61, 940 S.W.2d 884 (1997).

14-298-122. Opening or altering roads in counties voting for road tax — Notice by actions.

  1. The purpose of this section is to establish a rule defining what actions have supplied the requisite notice to affected landowners of the condemnation of their property by county court orders effected pursuant to § 14-298-121.
  2. Entry and notice shall mean:
    1. Any construction work performed on a road, street, or highway where the right-of-way thereof condemned by the county court is on a new location was entry and was notice of the existence of the condemnation order, from the date of performance of the work, to the person owning, prior to the court order, the property entered upon;
    2. Where the right-of-way condemned by a county court order included an existing road, street, or highway, construction work on the right-of-way which was more than the mere resurfacing or reconditioning of the existing road, street, or highway, was entry and was notice of the existence of the condemnation order to the person owning, prior to the court order, the property entered upon.

History. Acts 1963, No. 185, §§ 1, 2.

Case Notes

Prior to Court Order.

Contention that words “prior to the court order” as contained in subdivision (b)(2) applied only to person owning land before entry of court order but who disposed of land before order was made was without merit as being unreasonable so as to make this section meaningless. Arkansas State Hwy. Comm'n v. Triplett, 239 Ark. 354, 389 S.W.2d 439 (1965).

Cited: Oliver v. Washington County, 328 Ark. 61, 940 S.W.2d 884 (1997).

14-298-123. Replacement of washed-out road.

  1. When any county road may be injured or destroyed by the washing of any lake, river, or creek, the judge of the county court shall be notified by any witness in writing of the nature and extent of the injury.
  2. If the judge shall be satisfied that the road has been injured or destroyed to such extent as to inconvenience the traveling public, the judge shall appoint three (3) viewers. They may, if in their judgment it is necessary, take with them a competent surveyor and proceed to view and survey a new road upon such ground as will accommodate the traveling public.
  3. The viewers shall determine the compensation to be allowed the owners of the property sought to be appropriated, at its true value, and the damages occasioned by the new road and shall make a report of their doings in the manner pointed out in this chapter as the duties of viewers of new roads.
  4. Appeals may be taken from the appointment and orders of the judge and from the assessment allowed by the viewers as a jury to the owners of the property, in the manner provided by this chapter, within the time allowed by law, after the first regular term of the court thereafter held.
  5. The appointment of viewers and order of the judge provided in this chapter shall be recorded in the records of the court.
  6. The county court shall be governed in the reception, approving, and recording of the report of viewers, in all respects, as is prescribed in the case of new roads, except no notice of the destruction or injury to the road shall be required except as required by this section.
  7. All costs, damages, and expenses arising under the provisions of this section shall be paid out of the county treasury on the warrant of the county clerk.

History. Acts 1871, No. 26, § 59, p. 56; C. & M. Dig., § 5248; Pope's Dig., § 6967; A.S.A. 1947, § 76-919; Acts 2005, No. 1200, § 14.

Publisher's Notes. This section may be superseded by § 14-298-120.

Amendments. The 2005 amendment substituted “the judge of the county court shall be notified by any witness” for “it shall be the duty of the overseer of the road district in which the injury or destruction may occur to immediately notify the judge of the county court” in (a).

Case Notes

Claims by Landowners.

Fact that public road was destroyed did not give landowner over whose land public traveled after the destruction a basis of claim against the county where county court did not establish a road over the landowner's land. Craig v. Greenwood Dist., 91 Ark. 274, 121 S.W. 280 (1909).

14-298-124. Altering public roads on private land.

    1. If any person through whose land a public road is or may be established shall be desirous of turning the road through any other part of his or her land, that person shall apply by petition to the county court to permit him or her to turn the road through any other part of his or her land on as good ground and without increasing the distance to the injury of the public.
    2. Upon presentation of the petition, the person shall present a supporting affidavit to the effect that the proposed change will not materially increase the distance to the injury of the public, together with opinions by supporting affidavits in writing as to the utility or practicability of the alteration.
  1. The court shall declare the new road a public highway if:
    1. The court finds that the prayer of the petition is reasonable and the alteration will not place the road on worse ground or increase the distance to the injury of the public;
    2. The court is satisfied that the new road will be opened by the petitioner, a legal width and, in all respects made as good as the old road was for the convenience of travelers; and
    3. In the opinion of the court, the petition shall be just and reasonable.
  2. A person desiring the alteration provided in this section shall pay all the cost incident to the proceedings, and no damages shall be allowed to any petitioner under the provisions of this section by reason of any such change to any petitioner.

History. Acts 1871, No. 26, § 57, p. 56; 1897 (Ex. Sess.), No. 10, §§ 1, 2, p. 33; 1907, No. 427, § 1, p. 1147; C. & M. Dig., § 5246; Pope's Dig., § 6965; A.S.A. 1947, § 76-916; Acts 2005, No. 1200, § 15.

Publisher's Notes. This section may be superseded by §§ 14-298-120 or 14-297-101 et seq.

Amendments. The 2005 amendment, in present (a)(2), substituted “supporting affidavit” for “certificate from the overseer of the road, endorsed by the approval of a majority of the road hands working under the overseer” and “opinions by supporting affidavits” for “their opinions”; redesignated former (b)(1) and (b)(1)(A)-(C) as present (b) and (b)(1)-(3); substituted “The court finds” for “The certificate of the overseer shall show to the court” in present (b)(1); and deleted former (b)(2).

Case Notes

Authority to Change.

One cannot change a public road across his land without authority of the county court. McKibbin v. State, 40 Ark. 480 (1883).

County Roads.

County road held not created. Ark. Game & Fish Comm'n v. Lindsey, 292 Ark. 314, 730 S.W.2d 474 (1987).

Cited: Ark. State Hwy. Comm'n v. Scott, 238 Ark. 883, 385 S.W.2d 636 (1965).

14-298-125. Federal authority.

  1. The county court of each county in the State of Arkansas is authorized to grant the United States of America the right to close, inundate, destroy, relocate, alter, or appropriate any county highway in the county in connection with the construction, development, operation, or maintenance of any flood control or other public project being constructed, operated, developed, or maintained by the United States of America, upon such terms and conditions and for such consideration as the county court may determine to be just and proper.
  2. The county court of each county of the State of Arkansas shall have power to execute any and all contracts, deeds, easements, and other instruments of conveyance as may be required in or convenient to the exercise of the powers granted in this section.

History. Acts 1949, No. 181, §§ 1, 2; A.S.A. 1947, §§ 76-924, 76-925.

Chapter 299 Maintenance And Repair Of County Highways

Research References

ALR.

Governmental liability to advertiser arising from obstruction of public view of sign on account of growth of vegetation in public way. 21 A.L.R.4th 1309.

Damages resulting from temporary conditions incident to public improvements or repairs as compensable taking. 23 A.L.R.4th 674.

State or local governmental unit's liability for injury to private highway construction worker based on its own negligence. 29 A.L.R.4th 1188.

Personal injury liability of civil engineer for negligence in highway or bridge construction or maintenance. 43 A.L.R.4th 911.

Subchapter 1 — General Provisions

14-299-101. Classification of roads.

All public roads and highways running most centrally through the county and most used by the public shall be designated as first-class roads and all other public roads and highways as second-class roads.

History. Acts 1899, No. 200, § 10, p. 347; C. & M. Dig., § 5225; Pope's Dig., § 6939; A.S.A. 1947, § 76-1020.

14-299-102. Roadwork priority according to classification.

All roads of the first class shall be first worked, and then the second-class roads shall be worked as the court may class and order.

History. Acts 1899, No. 200, § 10, p. 347; C. & M. Dig., § 5225; Pope's Dig., § 6939; A.S.A. 1947, § 76-1020.

Subchapter 2 — Voluntary Agreements for Road Improvements

14-299-201. Filing the agreement — Contents.

Whenever the landowners of one (1) or more adjoining townships in any county or in a certain described portion thereof, amounting to three-fourths (¾) of the number of landowners in the territory described in the petition, shall file with the county court of the county a written statement and agreement signed by the landowners wherein they represent to the court that they have voluntarily agreed among themselves to improve certain county roads or parts thereof in the township or in the area described in the agreement, by contributing in cash the necessary funds therefor, and that the costs of the proposed improvements shall not exceed a total sum to be stated in the agreement, and that the costs shall be paid pro rata by the signers of the agreement in the proportion that the assessed value of their land shall bear to the total cost of the improvements, then the statement and agreement shall be spread in full upon the records of the county court. Thereafter, each and every owner and signer of the agreement shall be bound by the terms of the agreement and shall be personally liable for his proportionate part of the costs of the improvement as set out in this section.

History. Acts 1949, No. 294, § 1; A.S.A. 1947, § 76-1030.

14-299-202. Signer's failure to pay pro rata costs.

If any signer of the agreement fails to pay his part of the costs according to the terms of the agreement, the board of commissioners created in § 14-299-204 is authorized to bring suit against the owner, his successors, and assigns for the recovery of the amount due. Until that amount is paid, it shall constitute a lien upon the land of the delinquent owner in the township or area affected.

History. Acts 1949, No. 294, § 1; A.S.A. 1947, § 76-1030.

14-299-203. Liability of all area landowners.

When any such agreement has been entered of record by the county court as directed in §§ 14-299-201 and 14-299-202, then all the owners of land in the township or in the area affected, whether they have signed the statement and agreement or not, shall become liable to pay their proportionate part of the costs of the improvement to the same extent, in the same manner, and subject to the same procedure to collect the costs, as applies to the signers of the agreement.

History. Acts 1949, No. 294, § 2; A.S.A. 1947, § 76-1031.

14-299-204. Board of commissioners — Determination of cost.

  1. The statement and agreement referred to in §§ 14-299-201 and 14-299-202 must contain the names of three (3) of the signers thereto who shall constitute a board of commissioners to have supervision, direction, and control of the improvement. It shall be their duty to see that the improvement is properly made.
  2. The board of commissioners shall first determine the cost of the proposed improvement and then shall calculate and determine the pro rata cost of each landowner. Each landowner shall be required to pay that amount to the board of commissioners within sixty (60) days after having been notified in writing by the board of the amount of his payment.
  3. If the improvement cannot be completed for the sum first determined by the board of commissioners and if the total cost as first determined by the board shall be less than the total amount of the cost of the improvement fixed in the agreement referred to in § 14-299-203, then the board is authorized to require additional pro rata payment from the various landowners for the purpose of completing the improvement. In no event shall the total cost of the improvement exceed the amount fixed in the agreement.

History. Acts 1949, No. 294, § 3; A.S.A. 1947, § 76-1032.

14-299-205. Financing by landowners.

  1. It is the purpose and intent of this subchapter that:
    1. No bonds shall be issued by the board of commissioners;
    2. No money shall be borrowed and no interest shall be paid, but the entire cost of the improvement shall be paid by the cash payments from the landowners as provided for in this subchapter;
    3. Seventy-five percent (75%) of the total amount of payments due to be made by the various landowners shall be paid to the board of commissioners before the improvements provided for in this subchapter shall be begun.
  2. It is not the purpose of this subchapter to impair the power and authority given the county court by the Constitution and laws of this state over roads and highways of the county.

History. Acts 1949, No. 294, § 4; A.S.A. 1947, § 76-1033.

Chapter 300 County Bridges

Research References

ALR.

Liability of governmental entity for injury or death resulting from design, construction, or failure to warn of narrow bridge. 2 A.L.R.4th 635.

Personal injury liability of civil engineer for negligence in highway or bridge construction or maintenance. 43 A.L.R.4th 911.

Subchapter 1 — General Provisions

Effective Dates. Acts 1899, No. 204, § 2: effective on passage.

14-300-101. Purchase of private bridges by county.

Where a bridge across any stream in this state is owned by private parties and the bridge is, in the opinion of the county court of the county in which it is situated, a public necessity or convenience, the county court is empowered and authorized to purchase the bridge when an appropriation has been made therefor by the quorum court.

History. Acts 1899, No. 204, § 1, p. 388; C. & M. Dig., § 832; Pope's Dig., § 969; A.S.A. 1947, § 76-1517.

14-300-102. Purchase of surplus bridge material by county — Definition.

  1. As used in this section, “surplus bridge material” means a general contractor's excess or unused bridge steel or other scrap items remaining after completion of a contract for the construction, improvement, rehabilitation, or replacement of a bridge on a state highway or county road.
    1. When a general contractor is awarded a contract for the construction, improvement, rehabilitation, or replacement of a bridge on a state highway or county road, the county judge of the county in which the bridge is located may notify the general contractor in writing no later than thirty (30) days after the contractor is issued a work order on the project that the county requests to purchase all or any portion of the surplus bridge material at the salvage value price.
    2. This section does not prevent a general contractor from retaining surplus bridge material for the general contractor's own purposes.
    3. A general contractor does not have a duty to notify the county judge of a bridge construction project the general contractor undertakes in a county.
    1. If a general contractor elects to sell the surplus bridge material for salvage and the county has given notice under subsection (b) of this section, then the county has a right of first refusal to purchase all or any portion of the surplus bridge material for the salvage value price.
    2. The county judge shall tender the county's written offer to purchase all or any portion of the surplus bridge material at salvage value price.
    1. The purchase by the county of surplus bridge material is “as is”, and the county shall hire an engineer to inspect any surplus bridge material it acquires under this section to determine if the surplus bridge material is suitable for the county's intended use.
    2. The general contractor does not have a responsibility to inspect or otherwise render an opinion as to the condition, state, or suitability of the surplus bridge material for the county's intended use.
  2. This section does not create a cause of action, and a cause of action shall not be available, in negligence or otherwise, against a general contractor for the surplus bridge material purchased by the county under this section.
  3. The county shall retrieve and transport the surplus bridge material it acquires under this section within thirty (30) days after the election by the general contractor to sell the surplus bridge material at salvage value price under subdivision (c)(1) of this section unless otherwise agreed by the parties.

History. Acts 2015, No. 232, § 1.

Subchapter 2 — Building Bridges

Effective Dates. Acts 1875, No. 126, § 8: effective on passage.

14-300-201. Classification of bridges on public roads.

The bridges on the public roads of this state shall be divided into three (3) classes:

  1. Bridges over sixty feet (60') in length, exclusive of abutments, shall be bridges of the first class;
  2. Bridges of not less than thirty feet (30') nor more than sixty feet (60') in length, exclusive of abutments, shall comprise the second class; and
  3. All bridges less than thirty feet (30') in length shall comprise the third class.

History. Acts 1875, No. 126, § 1, p. 258; C. & M. Dig., § 825; Pope's Dig., § 962; A.S.A. 1947, § 76-1509.

14-300-202. [Repealed.]

Publisher's Notes. This section, concerning bridge building methods, was repealed by Acts 2013, No. 326, § 1. The section was derived from Acts 1875, No. 126, § 2, p. 258; C. & M. Dig., § 826; Pope's Dig., § 963; A.S.A. 1947, § 76-1510.

14-300-203. [Repealed.]

Publisher's Notes. This section, concerning building bridges of first class, was repealed by Acts 2013, No. 326, § 2. The section was derived from Acts 1875, No. 126, § 3, p. 258; C. & M. Dig., § 827; Pope's Dig., § 964; A.S.A. 1947, § 76-1511.

14-300-204. [Repealed.]

Publisher's Notes. This section, concerning bridge building contractor bonds, was repealed by Acts 2013, No. 326, § 3. The section was derived from Acts 1875, No. 126, § 4, p. 258; C. & M. Dig., § 828; Pope's Dig., § 965; A.S.A. 1947, § 76-1512.

14-300-205. [Repealed.]

Publisher's Notes. This section, concerning building bridges of second class, was repealed by Acts 2013, No. 326, § 4. The section was derived from Acts 1875, No. 126, § 5, p. 258; C. & M. Dig., § 829; Pope's Dig., § 966; A.S.A. 1947, § 76-1513.

14-300-206. [Repealed.]

Publisher's Notes. This section, concerning building bridges of third class, was repealed by Acts 2013, No. 326, § 5. The section was derived from Acts 1875, No. 126, § 6, p. 258; C. & M. Dig., § 830; Pope's Dig., § 967; A.S.A. 1947, § 76-1514.

14-300-207. [Repealed.]

Publisher's Notes. This section, concerning building bridges in counties voting for three-mill road tax, was repealed by Acts 2013, No. 326, § 6. The section was derived from Acts 1899, No. 200, § 11, p. 347; C. & M. Dig., § 5266; Pope's Dig., § 6994; A.S.A. 1947, § 76-1515.

14-300-208. [Repealed.]

Publisher's Notes. This section, concerning persons required to work on bridges, was repealed by Acts 2013, No. 326, § 7. The section was derived from Acts 1875, No. 126, § 7, p. 258; C. & M. Dig., § 831; Pope's Dig., § 968; A.S.A. 1947, § 76-1516.

Subchapter 3 — Highway Bridges Over Navigable Streams

Effective Dates. Acts 1891, No. 16, § 5: effective on passage.

Case Notes

Constitutionality.

So much of this subchapter as provides for a letting of the contract by a plan of advertising for specifications and bids together is unconstitutional. Fones Hdwe. Co. v. Erb, 54 Ark. 645, 17 S.W. 7 (1891).

14-300-301 — 14-300-305. [Repealed.]

Publisher's Notes. These sections, concerning highway bridges over navigable streams, were repealed by Acts 2013, No. 326, § 8. The sections were derived from the following sources:

14-300-301. Acts 1891, No. 16, § 5, p. 14; C. & M. Dig., § 838; Pope's Dig., § 974; A.S.A. 1947, § 76-1522.

14-300-302. Acts 1891, No. 16, § 1, p. 14; C. & M. Dig., § 834; Pope's Dig., § 970; A.S.A. 1947, § 76-1518.

14-300-303. Acts 1891, No. 16, § 2, p. 14; C. & M. Dig., § 835; Pope's Dig., § 971; A.S.A. 1947, § 76-1519.

14-300-304. Acts 1891, No. 16, § 3, p. 14; C. & M. Dig., § 836; Pope's Dig., § 972; A.S.A. 1947, § 76-1520.

14-300-305. Acts 1891, No. 16, § 4, p. 14; C. & M. Dig., § 837; Pope's Dig., § 973; A.S.A. 1947, § 76-1521.

Chapter 301 Municipal Streets Generally

Research References

ALR.

Liability of governmental entity for injury, resulting from defect or obstruction in shoulder of street or highway. 19 A.L.R.4th 532.

Governmental liability to advertiser arising from obstruction of public view of sign on account of growth of vegetation in public way. 21 A.L.R.4th 1309.

State or municipal towing, impounding, or destruction of motor vehicles parked or abandoned on streets or highways. 32 A.L.R.4th 728.

Towing, impounding, or destruction of motor vehicles parked or abandoned on streets and highways. 32 A.L.R.4th 728.

Private improvement of land dedicated but not used as street as estopping public rights. 36 A.L.R.4th 625.

Am. Jur. 56 Am. Jur. 2d, Mun. Corp., § 481.

C.J.S. 64 C.J.S., Mun. Corp., § 1653 et seq.

Subchapter 1 — General Provisions

Cross References. General power to establish and improve streets and property, § 14-54-601 et seq.

Local government reserve funds, § 14-73-101 et seq.

Effective Dates. Acts 1875, No. 1, § 95: effective on passage.

Acts 1901, No. 179, § 2: effective on passage.

Acts 1903, No. 126, § 2: effective on passage.

Acts 1907, No. 301, § 2: effective on passage.

Acts 1907, No. 426, § 2: effective on passage.

Acts 1909, No. 136, § 2: effective on passage.

Acts 1917, No. 399, § 2: approved Mar. 24, 1917. Emergency clause provided: “This act, being necessary for the immediate preservation of the public peace, health and safety, shall take effect and be in force on and after its passage.”

Acts 1927, No. 40, § 5: approved Mar. 1, 1927. Emergency clause provided: “It is now determined and hereby declared that the existence of offsets in certain cities within the operation of this act is preventing the improvement of said streets and the property abutting thereon and is retarding the growth of the community in the vicinity thereof and creating unsanitary conditions and that, therefore, this act is necessary for the immediate preservation of the public peace, health and safety and an emergency is hereby declared and this act shall take effect and be in force from and after its passage.”

Acts 1931, No. 210, § 2: approved Mar. 26, 1931. Emergency clause provided: “It appearing that throughout the State there are alleys and other passageways, which are not needed or extensively used for travel and which, if closed, would be used for building purposes and the public welfare would be promoted, an emergency is declared and this act is found to be necessary for the public health, peace and safety and it shall take effect and be in force from and after its passage.”

Acts 1943, No. 40, § 3: approved Feb. 10, 1943. Emergency clause provided: “This act being necessary for the public health, peace and dignity of the State of Arkansas shall take effect and be in full force from and after its passage.”

Acts 1981, No. 479, § 3: Mar. 13, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that cities routinely cut and repair curbs in business districts and that it would not result in increased costs if such curb repairs were performed in such manner as to allow access for wheelchairs; and that this Act is immediately necessary to provide the same. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

14-301-101. City council — Powers and duties.

The city council shall:

  1. Have the care, supervision, and control of all the public highways, bridges, streets, alleys, public squares, and commons within the city; and
  2. Cause those public highways, bridges, streets, alleys, public squares, and commons to be kept open and in repair, and free from nuisance.

History. Acts 1875, No. 1, § 7, p. 1; C. & M. Dig., § 7607; Pope's Dig., § 9702; A.S.A. 1947, § 19-3801.

Case Notes

In General.

The city council has the power to supervise and control the streets and sidewalks of the city with authority to remove any structure encroaching upon the streets. State ex rel. Latta v. City of Marianna, 183 Ark. 927, 39 S.W.2d 301 (1931).

A city has the power and duty to make reasonable provisions for the safety of persons and property using its streets by the enactment of ordinances, resolutions, or bylaws looking to that end, and the city council or commission or other municipal authorities have a wide discretion on such matters. City of Ft. Smith v. Van Zandt, 197 Ark. 91, 122 S.W.2d 187 (1938).

The city council has the care, supervision, and control of all the streets, alleys, and public places within the city and may enjoin the construction and maintaining of anything which will constitute a nuisance on public property within the city. Arkansas-Missouri Power Corp. v. City of Rector, 164 F.2d 938 (8th Cir. 1947).

County Court Jurisdiction.

This section does not take jurisdiction over streets from the county court for three distinct reasons: first, the constitution gives jurisdiction to the county court (Ark. Const., Art. 7, § 28); second, no other court is given jurisdiction by the constitution to exercise the power of eminent domain to create a road, and neither the constitution nor § 27-66-401 limits applicability of a road creation proceeding to the unincoprorated geographic areas of a county; and third, there is no real conflict between the county court's jurisdiction to exercise the power of eminent domain to give the owner of a landlocked tract a private roadway out of his land and a statute giving municipalities the control and supervision of city streets. Yates v. Sturgis, 311 Ark. 618, 846 S.W.2d 633 (1993).

The separation of powers doctrine was not violated by allowing the county court to exercise jurisdiction over roads within city. Yates v. Sturgis, 311 Ark. 618, 846 S.W.2d 633 (1993).

Dividing Curbs.

Resolution authorizing construction of dividing curb along center of boulevard, making it a four lane highway and permitting crossings only at street intersections was held not arbitrary, unreasonable, or discriminatory against owner of tourist camp in center of a long block whose prospective customers would be prevented from turning to the left into his property but would have to drive to the next intersection and return. City of Ft. Smith v. Van Zandt, 197 Ark. 91, 122 S.W.2d 187 (1938).

Gas Stations.

There is no limitation on the power of the city council to prohibit by ordinance the maintenance of gasoline filling stations or any other automobile service stations upon the streets within the fire limits of the city. Sander v. City of Blytheville, 164 Ark. 434, 262 S.W. 23 (1924).

Liability for Personal Injuries.

A city acts as government agency in its management and control of the streets and highways within its limits and is not liable to an individual for injuries sustained by reason of its negligence in keeping them in repair. Holt v. City of Texarkana, 168 Ark. 847, 271 S.W. 960 (1925).

Limitations on City.

A city cannot devote a street to uses and purposes foreign to that for which it was dedicated. City of Osceola v. Haynie, 147 Ark. 290, 227 S.W. 407 (1921).

Abutting owners of real property have a right to enjoin the council from permitting any permanent encroachment on the streets of the city where they allege and prove special injury. Lincoln v. McGehee Hotel Co., 181 Ark. 1117, 29 S.W.2d 668 (1930).

Parking Meters.

Municipality did not abuse its discretion in enacting ordinance for establishing of parking meters in front of person's business even though person was deprived of suitable loading and unloading space. City of Marianna v. Gray, 220 Ark. 468, 248 S.W.2d 379 (1952).

The power granted by this section did not extend to a strip of county-owned ground around the courthouse and adjacent to the streets so as to permit the city to retain all the income from parking meters maintained by it on the strip in violation of a lease of the strip from the county in which the city agreed to give the county one-half of such income. Harrison v. Boone County, 238 Ark. 113, 378 S.W.2d 665 (1964).

Repairs.

A city council has authority to make contracts for patching material and for labor to do repair work on the streets. Connelly v. Lawhon, 180 Ark. 964, 23 S.W.2d 990 (1930).

Trucks.

Cities have the power to pass ordinances regulating the use of streets by trucks. House v. City of Texarkana, 225 Ark. 162, 279 S.W.2d 831 (1955).

Statutory provisions relating to motor vehicles did not repeal or supersede this section or affect the authority of city to regulate the use of streets by trucks. House v. City of Texarkana, 225 Ark. 162, 279 S.W.2d 831 (1955).

Cited: City of Little Rock v. Linn, 245 Ark. 260, 432 S.W.2d 455 (1968); Lacey v. Bekaert Steel Wire Corp., 619 F. Supp. 1234 (W.D. Ark. 1985).

14-301-102. Dedication of streets.

No street or alley which shall be dedicated to public use by the proprietor of ground in any city shall be deemed to be a public street or alley, or to be under the care or control of the city council, unless the dedication shall be accepted and confirmed by an ordinance specially passed for that purpose.

History. Acts 1875, No. 1, § 7, p. 1; C. & M. Dig., § 7608; Pope's Dig., § 9703; A.S.A. 1947, § 19-3802.

Case Notes

Acceptance.

Where the owners of land laid out a town or an addition to a city or town upon it, platting it into blocks and lots intersected by streets and alleys, and thereafter sold lots by reference to the plat, they will be held to have dedicated the streets and alleys to the public use irrevocably, and the municipality may accept at any time and assume control over the streets and alleys. City of Stuttgart v. John, 85 Ark. 520, 109 S.W. 541 (1908).

Where land was platted, the streets dedicated, lots sold by reference to the plats, and the public has used the streets for many years, the question of the city's acceptance of dedication is not important, as the dedication of it as a public way has become irrevocable, and the city can accept it at any time. Bushmiaer v. City of Little Rock, 231 Ark. 848, 333 S.W.2d 236 (1960).

The control and supervision of streets within a municipality is given to the executive and legislative branches of the municipality; no street within the city may be dedicated to the city until accepted and confirmed by a municipal ordinance specially passed for that purpose. Yates v. Sturgis, 311 Ark. 618, 846 S.W.2d 633 (1993).

A city does not have to accept the control and supervision and concurrent cost of maintenance of a city street unless it chooses to do so. Yates v. Sturgis, 311 Ark. 618, 846 S.W.2d 633 (1993).

Order that quieted title in favor of landowners was reversed as lots were sold with the reference to the dedication of easements and lot owners title being subject to public uses; thus, dedication became irrevocable upon sale of lots even if the city did not confirm or accept the dedication by ordinance, as required by this section. City of Cabot v. Brians, 93 Ark. App. 77, 216 S.W.3d 627 (2005).

Prescription.

Streets established by prescription need not be accepted. Waring v. City of Little Rock, 62 Ark. 408, 36 S.W. 24 (1896).

Where a street has been dedicated to the public by the owner, it is not necessary to show acceptance by the public to prove a continuous use by the public for a time sufficient to constitute a way by prescription. Brewer v. City of Pine Bluff, 80 Ark. 489, 97 S.W. 1034 (1906).

14-301-103. Building and repair of bridges.

Each city of the first and second class and incorporated town in this state shall have the power to build, construct, and keep in repair any bridge within the corporate limits thereof at the exclusive expense of that municipal corporation.

History. Acts 1901, No. 179, § 1, p. 333; C. & M. Dig., § 7563; Pope's Dig., § 9637; A.S.A. 1947, § 19-3803.

Case Notes

Boundary Line Bridge.

A city had power to bind itself to pay half of the cost of a bridge which constituted its boundary line notwithstanding that half of the bridge would be without the city limits. Greene County v. City of Paragould, 172 Ark. 1145, 292 S.W. 153 (1927).

Improvement Districts.

The whole of a city may be included in one improvement district for the construction of a public bridge. Ferguson v. McLain, 113 Ark. 193, 168 S.W. 127 (1914).

Indemnification.

Alleged contract by city to pay claims against county for damages to real estate by reason of construction of underpass in the city was held not ultra vires nor unconstitutional for involving appropriation of money in the construction of a state highway. City of Fordyce v. Dallas County, 195 Ark. 552, 113 S.W.2d 500 (1938).

14-301-104. Opening or improving street or highway — Delinquent tax.

  1. No street or highway shall be opened, straightened, or widened, nor shall any other improvement be made which will require proceedings to condemn private property, without the concurrence in the bylaw, ordinance, or resolution directing the condemnation of two-thirds (2/3) of the whole number of members elected to council.
  2. The concurrence of a like majority shall be required to direct any improvement or repair of a street or highway, the cost of which is to be assessed on the owners of the property, unless one-half (½) of the owners to be charged shall petition in writing therefor.
  3. The council of any incorporated city or town may order the clerk, or other proper officer of the council, to certify under his official seal any delinquent tax which is assessed by the city or town, for opening or grading, or otherwise improving any street or alley in the city or town, to the clerk of the proper county.
  4. The clerk is required to place the tax so certified on the tax book of his county, in a separate column, and it shall be collected in a like manner as state and county taxes.

History. Acts 1875, No. 1, §§ 30, 70, p. 1; C. & M. Dig., §§ 4007, 7566, 7583; Pope's Dig., §§ 5009, 9640, 9662; A.S.A. 1947, §§ 19-3809, 19-3810.

Case Notes

Approval by Council.

A resolution authorizing the condemnation of land passed unanimously by all of the members of council is valid. Young v. Gurdon, 169 Ark. 399, 275 S.W. 890 (1925).

Condemnation Procedure.

In condemnation of private property for public use, no one has a vested right in any given mode of procedure, and all that the landowner may require is that a form of procedure may be given him with a right of review in the courts and that a reasonable and adequate means of payment for the property shall be provided. Cannon v. Felsenthal, 180 Ark. 1075, 24 S.W.2d 856 (1930).

14-301-105. Grading streets or alleys — Assessment and recovery of damages.

  1. In all cases where any municipal corporation shall be liable for the payment of damages to the owner or occupant of any lots or grounds, by reason of the grading of any streets or alleys, or public grounds, or part thereof, the damages shall be ascertained and assessed by three (3) disinterested reputable freeholders of the city who shall be appointed as follows:
    1. One (1) by the city or town council;
    2. One (1) by the owner of the property injured; and
    3. The persons thus appointed shall choose the third person.
  2. The assessors thus appointed, before entering on their duties, shall take an oath or affirmation, before some officer authorized to administer oaths, that they will well and truly, to the best of their knowledge and ability, appraise the damages which the claimant may or shall have suffered by reason of the grading, and for which the city is liable. This oath shall be filed in the office of the city clerk, and the assessors shall, within thirty (30) days after their appointment, make the assessment, and file it in the city clerk's office, where it shall be subject to the inspection of all claimants for damages. The damages assessed by them shall be by them paid out of the city treasury or tendered to the party in whose favor the damages were assessed.
  3. If the claimant refuses to appoint, the council shall appoint all three (3) of the assessors.
  4. If any person shall neglect or refuse to accept the amount so assessed, as provided in this section, and shall prosecute the city, and if by suit for damages he shall not recover more than the amount allowed by the assessors, the party so prosecuting shall pay all costs of suit.
  5. No claimant for damages shall commence any suit for damages on account of the grading or improvement until he shall have filed a claim for greater damages with the city clerk at least thirty (30) days before the commencement of the suit.
  6. No suit shall be commenced until after the assessors shall have been appointed and made return of their assessment as herein provided, nor for thirty (30) days thereafter.
  7. The city or town council, within three (3) days after the claimant shall have notified them in writing that he has appointed his assessors, shall appoint one (1) assessor on the part of the city. They shall, within five (5) days thereafter, select the third assessor and qualify him as provided in this section.

History. Acts 1875, No. 1, §§ 77, 78, p. 1; C. & M. Dig., §§ 7573-7575; Pope's Dig., §§ 9649-9651; A.S.A. 1947, §§ 19-3811, 19-3812.

Research References

Ark. L. Rev.

Expansion of Municipal Corporation Tort Liability — A Legislative Responsibility, 14 Ark. L. Rev. 313.

Case Notes

Change in Grade Line.

A municipal corporation will be liable for damages sustained by an abutting property owner caused by a change in the established grade line of the street, but the mere establishment of a grade line is not a change in the grade line, and the city's liability is contingent on the fact that a change in the grade line has been made. Red v. Little Rock Ry. & Elec. Co., 121 Ark. 71, 180 S.W. 220 (1915)Limited byHot Spring County v. Bowman, 229 Ark. 790, 318 S.W.2d 603 (1958).

Damages Allowed.

The owner of property abutting on a street in a city or incorporated town is entitled to recover compensation for damages done to the property in lowering the grade of the street. Dickerson v. Town of Okolona, 98 Ark. 206, 135 S.W. 863 (1911).

Where abutting owners have made improvements with reference to established grades of the streets, if the grade is thereafter changed to the owners' damage, the city is liable therefor. Eickhoff v. City of Argenta, 120 Ark. 212, 179 S.W. 367 (1915)Limited byHot Spring County v. Bowman, 229 Ark. 790, 318 S.W.2d 603 (1958).

—Evidence.

In an action against a city to collect the award of arbitrators for the overflow of plaintiff's property, the evidence was held sufficient to warrant a verdict in favor of the plaintiff. City of Jonesboro v. Pribble, 112 Ark. 554, 166 S.W. 576 (1914).

—Set-offs.

A city could not set off special benefits resulting to plaintiff's property against damages which resulted from the construction of the embankment. Van Buren v. Smith, 175 Ark. 697, 300 S.W. 397 (1927).

14-301-106. Sidewalks, curbing, and guttering in cities of the first class — Exceptions.

  1. In order to better provide for the public welfare, safety, comfort, and convenience of the inhabitants of cities of the first class, the council of any city of the first class, by ordinance, resolution, or order, shall have the power to:
    1. Compel the owners of any property abutting its streets or public squares to build, rebuild, maintain, and repair foot pavements or sidewalk improvements, curbing, and guttering there along and to designate the kind of sidewalk, curbing, and guttering improvements to be made, the kind of material to be used, the specifications to be followed, and the time within which such improvement is required to be completed; and
    2. Provide that:
      1. If the owner of the property shall fail or refuse to comply with the provisions thereof, in the manner and within the time therein prescribed, the cities may contract with some suitable person for the construction, reconstruction, or repair of the sidewalk, curbing, or guttering, on the best terms that can be made and in the manner to be prescribed in the ordinance, resolution, or order after giving reasonable notice to the owner or agent in charge of the property of an intention to do so; and
      2. The cities may pay that person for so constructing, reconstructing, or repairing the sidewalk, curbing, or guttering and to provide that the amount so paid by the cities, together with a six percent (6%) penalty added thereto, shall constitute a charge against the owner of the property and shall be a lien on the property from the date of the commencement of the work, the charge and lien to be assignable by the city, the charge to be recovered in an ordinary suit against the owner by the city or its assignee, or the lien to be foreclosed by the city or its assignee by suit in equity in the courts having jurisdiction of suits for the enforcement of liens upon real property, for the condemnation and sale of the property for the payment of the sums so paid by the city, together with the interest, penalty, and cost of suit, the suit in equity to be brought in the manner and under the terms now provided by law for the foreclosure of property by improvement districts, so far as applicable.
  2. Nothing contained in this section shall be construed as repealing § 14-54-104 or as preventing cities of the first class from proceeding in any other manner provided by existing laws.

History. Acts 1909, No. 136, § 1, p. 419; C. & M. Dig., § 7748; Pope's Dig., § 9944; A.S.A. 1947, § 19-3806; Acts 1995, No. 555, § 1.

Amendments. The 1995 amendment repealed (c).

Cross References. General powers over sidewalks, cities of first class, § 14-54-104.

Research References

Ark. L. Rev.

Real Property — Mechanics' Lien on a Public Street, 22 Ark. L. Rev. 203.

Case Notes

Liability of Property Owner.

The duty imposed by this section is enforceable solely by the city, and breach of it does not create a liability of the property owner to one who is injured as a result of the defective condition of the sidewalk. Epps v. Remmel, 237 Ark. 391, 373 S.W.2d 141 (1963).

Cited: City of Little Rock v. Linn, 245 Ark. 260, 432 S.W.2d 455 (1968).

14-301-107. Sidewalks and curbing in towns and in cities of the first and second class.

  1. In order to better provide for the public welfare, safety, comfort, and convenience of the inhabitants of cities of the first and second class and of incorporated towns, the council of any such city or town, by ordinance, resolution, or order, shall have the power to:
    1. Compel the owners of any property abutting its streets or public squares to build, rebuild, maintain, and repair foot pavements or sidewalk improvements and curbing and to designate the kind of sidewalks and curbing improvements to be made, the kind of material to be used, the specifications to be followed, and the time within which the improvement is required to be completed; and
    2. Provide that:
      1. If the owner of any property shall fail or refuse to comply with the provisions thereof, in the manner and within the time therein prescribed, the cities and towns may contract with some suitable person for the construction, reconstruction, or repair of the sidewalk or curbing, on the best terms that can be made and in the manner prescribed in the ordinance, resolution, or order after giving reasonable notice to the owner or the agent in charge of the property of an intention to do so; and
      2. The cities and towns may pay that person for so constructing, reconstructing, or repairing the sidewalks and curbing and that the amount so paid by the cities and towns, together with six percent (6%) penalty added thereto, shall constitute a charge against the owner of the property and shall be a lien on the property from the date of the commencement of the work with the charge and lien to be assignable by the city and town and the charge to be recovered in an ordinary suit against the owner by the city or town or its assignee or the lien to be foreclosed by the city or town or its assignee by suit in equity in the courts having jurisdiction of suits for the enforcement of liens upon real property, for the condemnation and sale of the property for the payment of the sums so paid by the city or town, together with the interest, penalty, and cost of suit, the suit in equity to be brought in the manner and under the terms now provided by law for the foreclosure of property by improvement districts, so far as applicable.
  2. Nothing herein contained shall be construed as repealing § 14-54-104, or as preventing the cities and towns from proceedings in any manner provided by existing laws.

History. Acts 1903, No. 126, § 1, p. 211; 1917, No. 399, § 1, p. 1864; C. & M. Dig., § 7546; Pope's Dig., § 9620; A.S.A. 1947, § 19-3807.

Cross References. General powers over sidewalks in cities of first and second class, §§ 14-54-104, 14-54-105.

Research References

Ark. L. Rev.

Real Property — Mechanics' Lien on a Public Street, 22 Ark. L. Rev. 203.

Case Notes

Appeals.

An appeal from a decree enforcing a lien in favor of a city for the construction of a sidewalk would be dismissed where the transcript was not filed in the Supreme Court within 20 days after the decree appealed from was rendered. Crandell v. Harrison, 105 Ark. 110, 150 S.W. 560 (1912).

Curbs.

Cities and towns are authorized to require property owners to construct and repair the curbing as part of the sidewalk. Brizzolara v. City of Ft. Smith, 87 Ark. 85, 112 S.W. 181 (1908).

Designation of Materials.

An ordinance was not void because it failed to designate the material of which the sidewalks should be made where that defect was supplied by a subsequent resolution designating that they should be made of cement. Gregg v. City of Stuttgart, 88 Ark. 597, 115 S.W. 394 (1909).

Liability for Injuries.

A municipal corporation will not be liable in damages for an injury to pedestrian who fell from sidewalk which was laid at a higher level than the curb. Birchfield v. Diehl, 126 Ark. 115, 189 S.W. 845 (1916).

The duty imposed by this section is enforceable solely by the city, and breach of it does not create a liability of the property owner to one who is injured as a result of the defective condition of the sidewalk. Epps v. Remmel, 237 Ark. 391, 373 S.W.2d 141 (1963).

Life Tenants.

A life tenant may not refuse to build or repair a sidewalk, refuse to pay for it when constructed by the city, suffer the city to foreclose its lien for the cost of such construction, and then buy the property at the foreclosure sale and so extinguish the title of the remaindermen. Holliday v. Phillips Petroleum Co., 275 F. Supp. 686 (E.D. Ark. 1967).

Rebuilding.

This section is valid under the police power of the state, and a city may compel an abutting owner to rebuild a sidewalk where he already has one in front of his premises. City of Malvern v. Cooper, 108 Ark. 24, 156 S.W. 845 (1913).

Cited: City of Little Rock v. Linn, 245 Ark. 260, 432 S.W.2d 455 (1968).

14-301-108. Wheelchair access.

In any instance where a city of the first class, city of the second class, or incorporated town repairs or constructs a street curb at a corner or intersection in a business district, that city or town shall repair or construct the curb in such manner as to provide access to wheelchairs.

History. Acts 1981, No. 479, § 1; A.S.A. 1947, § 19-3807.1.

14-301-109. Public foot-walk required over railroad tracks near depot.

The council of any city of the first or second class or of any incorporated town shall have and is vested with authority and power to require by ordinance any railroad company that has or maintains a passenger depot in the city or incorporated town in this state to construct and to maintain a public footwalk over and across its right-of-way, switches, sidetracks, and main track to its passenger depot from either or both sides of any street abutting on its right-of-way and lying opposite its passenger depot, in cases where walks have already been constructed, or required to be constructed to the right-of-way. The walks are to be uniform in kind and width with the walks with which they connect, and are to designate the width thereof, and the material of which the walk shall be constructed and maintained, and are to provide and assess penalties, fines, and forfeitures for the violation of any such ordinances.

History. Acts 1907, No. 301, § 1, p. 726; C. & M. Dig., § 7547; Pope's Dig., § 9621; A.S.A. 1947, § 19-3808.

Case Notes

Liability for Breach of Duty.

The defendant's track crossed a street in a certain town which street was extensively used by pedestrians as well as vehicles; it was the duty of the defendant to maintain a crossing in good repair the entire width of the street, including the sidewalks on either side of the street, and it would be liable in damages for an injury resulting to a pedestrian from a breach of that duty. Chicago, R.I. & P. Ry. v. Redding, 124 Ark. 368, 187 S.W. 651 (1916).

Width of Crossing.

In constructing and maintaining crossings over public roads and streets, railroad companies must anticipate the reasonable demands of the public, and where the traffic requires it, the crossing must be made available for the entire width of the road or street. Chicago, R.I. & P. Ry. v. Redding, 124 Ark. 368, 187 S.W. 651 (1916).

14-301-110. Straightening or abandoning streets in cities of over 15,000 inhabitants.

  1. Every city which has a population of more than fifteen thousand (15,000) inhabitants as shown by the last federal census shall have the right in all cases where a street contains offsets and sufficient property is dedicated to the offsets to:
    1. Straighten the street and eliminate any one (1) or more of the offsets;
    2. Abandon, with the consent of the abutting property owners and any other persons directly interested, such part of the property formerly used as a street which shall not be within the line of the street as straightened.
  2. When any person owning property abutting any part of the property proposed to be abandoned as a street shall present to the city council his petition praying that any property be abandoned as a street, the city council shall by resolution direct the city clerk to give notice by a publication one (1) time a week for two (2) weeks in some newspaper published in the county in which the city may lie. To advise the property owners affected that on a day named in the notice the council will hear the petition and determine whether the property should be abandoned as a street and whether all abutting property owners and other persons directly interested have consented to the abandonment. At the meeting named in the notice, all property owners affected shall be heard before the council, which shall determine whether the property should be abandoned and whether all abutting property owners and other persons directly interested have consented to the abandonment. The determination and finding of the council shall be conclusive unless within thirty (30) days thereafter suit is brought to review its action in the chancery court of the county where the city lies. In determining whether all abutting property owners and other persons directly interested have consented to the abandonment, the council and the chancery court shall be guided by the record of deeds in the office of the recorder of the county and shall not consider any unrecorded instrument.
  3. If the council finds that the property should be abandoned as a street and that all abutting property owners and other persons directly interested have consented to the abandonment, the finding shall be expressed in an ordinance which shall have all of the force and effect of a judgment. Thereupon, the absolute ownership of the property abandoned shall vest in the owners of the fee simple title to the property free from the former easement of the city therein for public use as a street.

History. Acts 1927, No. 40, §§ 1-3, p. 117; Pope's Dig., §§ 10028-10030; A.S.A. 1947, § 19-3813 — 19-3815.

Research References

Ark. L. Rev.

Real Property — Mechanics' Lien on a Public Street, 22 Ark. L. Rev. 203.

Case Notes

Applicability.

This section relates only to cities having population of more than 15,000 inhabitants; therefore it afforded no ground for dismissal of action to enjoin enforcement of ordinance for closing of a street in city with population of 10,076. Stephens v. City of Springdale, 233 Ark. 865, 350 S.W.2d 182 (1961).

14-301-111. Abandonment suits involving public interest.

All suits which involve the right of any city to abandon any such property as a street or the unqualified and absolute fee simple ownership of the property free from the public easement therein for use as a street shall be deemed suits involving the public interest and shall be advanced in all courts and heard at the earliest practicable moment.

History. Acts 1927, No. 40, § 4, p. 117; Pope's Dig., § 10031; A.S.A. 1947, § 19-3816.

14-301-112. Abandonment of unnecessary alleys in cities of the first class — Utilities as property owners.

  1. Whenever the city council of any city of the first class shall find and determine that any alley or other passageway across any particular block within the city is not needed for highway purposes and that the welfare of the city will be enhanced or promoted by the closing and abandoning of the alley or passageway, the city council shall have authority, acting by and through its mayor and city clerk and pursuant to resolution of the council, to join in a written agreement with the owners of all the real estate of the block to close and abandon the alley or passageway.
  2. Upon the proper execution and acknowledgment of the instrument and the filing of it in the office of the proper circuit clerk and recorder, the title to the alley or passageway so abandoned shall vest in the owners of the real estate adjacent thereto, each adjacent owner taking title to the middle of the alley or passageway.
  3. Express authority is granted and conferred upon cities of the first class to close and abandon alleys or other passageways in this manner.
  4. However, any owner of property in the vicinity of the alley, feeling aggrieved by the action, may file suit within thirty (30) days after the filing of the instrument in the office of the circuit clerk and recorder to have the court determine whether he has been especially damaged by the action.
  5. Any person, firm, or corporation which has erected or installed any conduit, pipe, cable, pole, or overhead wire along or across any such alley or passageway shall be considered a property owner whose consent to the closing of the alley or passageway must be secured as provided in this section.

History. Acts 1931, No. 210, § 1; Pope's Dig., § 10032; A.S.A. 1947, § 19-3817.

Case Notes

Applicability.

This section relates only to alleys or other passageways across a block; therefore it afforded no ground for dismissal of action to enjoin enforcement of ordinance for closing of a street. Stephens v. City of Springdale, 233 Ark. 865, 350 S.W.2d 182 (1961).

14-301-113. Prohibition on adverse possession of alleys, streets, or public parks — Validity of prior deeds.

  1. No title or right of possession to any alley, street, or public park, or any portion thereof, in any city or incorporated town in this state shall or can be acquired by adverse possession or adverse occupancy thereof. The right of the public or of any city or incorporated town in this state or of the authorities of any such city or incorporated town to open or have opened any alley, street, or public park, or parts thereof, shall not be defeated in any action or proceeding by reason or because of adverse possession or adverse occupancy of the alley, street, or public park or any portion thereof where such adverse possession or occupancy commenced after the passage of this section.
  2. However, all deeds or conveyances to any portion of any lands dedicated to public use as a street or thoroughfare in any city of the first or second class made by authority of the city council of the city during and prior to the year 1924 shall be confirmed and validated, subject, however, to the payment of any purchase money that may be due and owing therefor. No such deed or conveyance made as aforesaid shall be impeached on the ground that it was made without authority of law. No such deed or conveyance shall be valid if any street or boulevard is thereby reduced in width to less than fifty feet (50').

History. Acts 1907, No. 426, § 1, p. 1147; C. & M. Dig., § 7570; Acts 1927, No. 204, § 1; Pope's Dig., § 9646; A.S.A. 1947, § 19-3831.

Publisher's Notes. In reference to the term “passage of this section”, Acts May 28, 1907, No. 426 was signed by the Governor on May 28, 1907, and § 2 provided that the act was to take effect “from and after its passage”. However, this effective date would be invalid under decisions in Arkansas Tax Comm. v. Moore, 103 Ark. 49, 145 S.W. 199 (1912) and Cunningham v. Walker, 198 Ark. 928, 132 S.W.2d 24 (1939).

Research References

Ark. L. Rev.

Exemptions Under the Statute of Limitations for Adverse Possession, 6 Ark. L. Rev. 37.

Adverse Possession Against the United States — A Treasure for Trespassers, 26 Ark. L. Rev. 467.

Case Notes

In General.

Title to streets cannot be acquired by adverse possession. City of Magnolia v. Burton, 213 Ark. 157, 209 S.W.2d 684 (1948).

The municipality is a creature of the state, and because of legislation as to the impossibility of adverse possession of streets, a municipality now occupies, insofar as the streets and public parkways are concerned, the same status as the state occupies, the rule of constructive eviction — when title is in the sovereign — applying when title is in the city. Wood v. Setliff, 229 Ark. 1007, 320 S.W.2d 655 (1959).

In an action seeking to enjoin the city from widening a street, without a showing of actual title of record or by the monuments referred to on the plats, owners could only rely upon adverse possession or laches, neither of which applied, as no title or right of possession to any alley, street, or public park, or any portion thereof, in any city or incorporated town can be acquired by adverse possession or adverse occupancy. Bushmiaer v. City of Little Rock, 231 Ark. 848, 333 S.W.2d 236 (1960).

Applicability.

Prior to the enactment of this section, there was no statute exempting incorporated cities and towns from the running of the statute of limitations as to streets and alleys, and its operation is limited to adverse possession or occupancy commenced or begun after its passage. Hoxie v. Gibson, 150 Ark. 432, 234 S.W. 490 (1921).

Adverse possession of an alley in a city by the owner and his grantors for more than the statutory period prior to the enactment of this section barred the city and public from asserting any right to open up and use it without condemnation, even if there was an original dedication. City of Little Rock v. Galloway, 162 Ark. 329, 258 S.W. 356 (1924).

Prior to this section, seven years' adverse possession would convey title in a city of the second class. City of Fordyce v. Hampton, 179 Ark. 705, 17 S.W.2d 869 (1929)Criticized byPyron v. Blanscet, 218 Ark. 696, 238 S.W.2d 636 (Ark. 1951).

Prior to this section, towns were subject to the statute of limitations on recovering property in adverse possession. City of Searcy v. Roberson, 256 Ark. 1081, 511 S.W.2d 627 (1974).

Abandonment of Public Easement.

Where public used section of unplatted land as an alley for many years, but owner of land erected a gate across the alley and maintained it for 17 years, failure of the public to object to erection of gate created an abandonment of public easement, where unplatted land was never dedicated to the public by the original owner. Kennedy v. Crouse, 214 Ark. 830, 218 S.W.2d 375 (1949).

Abatement of Encroachment.

Where city was not a party to action to compel removal of fence from an alley, an abutting landowner was not entitled to seek abatement of the fence in his own right, except on allegation and proof that he had suffered special damage as a result of the encroachment, which was not common to the public in general. Hicks v. Flanagan, 30 Ark. App. 53, 782 S.W.2d 587 (1990).

Conveyance of Property.

A decree enjoining the defendant's predecessor in title from enclosing or obstructing an alley adjacent to defendant's lot was held to bind the defendant and prevent him from acquiring title by adverse possession through possession of such predecessor, since the decree is binding upon the parties and on persons in privity with them. Langford v. Griffin, 179 Ark. 574, 17 S.W.2d 296 (1929).

Action filed for breach of warranty a few days prior to date of deed alleging that a considerable portion of the property described in the deed was at the time of conveyance and at all times thereafter a public street or parkway was timely, the warranty being breached as of the date of conveyance. Wood v. Setliff, 229 Ark. 1007, 320 S.W.2d 655 (1959).

Dedication.

When the first lot was sold in reference to a plat recorded and dedicated in 1917, the streets became irrevocably dedicated and this section and § 22-1-201 prohibiting adverse possession of public property, which were enacted prior to defendants' purchase of their property, prohibit defendants from adversely possessing the street. Mathis v. Brashear, 34 Ark. App. 194, 807 S.W.2d 666 (1991).

Statute of Limitations.

Where the owner of land dedicates street and alleys to a city or town and thereafter remains in possession of the premises conveyed, he is presumed to hold it in subordination to the title conveyed unless there is affirmative evidence of a contrary intention; and where his occupancy and use are not manifestly inconsistent with the right of his grantee, notice of the hostility of his claim must be brought home to the municipality before the statute of limitations begins to run. City of Stuttgart v. John, 85 Ark. 520, 109 S.W. 541 (1908).

While the state, in the exercise of its sovereign powers, is not barred by the statute of limitations, the public itself, in the assertion of its rights through other agencies, is barred by the statute of limitations where there are no limitations in its favor. Town of Madison v. Bond, 133 Ark. 527, 202 S.W. 721 (1918).

Where an incorporated town ceased to elect officers or to exercise its functions as such, this fact would not bar the running against it of the statute of limitations as to one occupying adversely a portion of a public street, since, in spite of the nonuser of the corporate franchise, the town still existed and it possessed the right to sue. Town of Madison v. Bond, 133 Ark. 527, 202 S.W. 721 (1918).

Cited: Neyland v. Hunter, 282 Ark. 323, 668 S.W.2d 530 (1984).

14-301-114. Validation of pre-1960 conveyances of streets, etc. — Prohibition on impeaching deed.

  1. All deeds or conveyances of any street, alley, or public ground, or any portion of streets, alleys, or public grounds, executed by any city of the first class, city of the second class, or incorporated town in the State of Arkansas, conveying all or any portion of the street, alley, or public ground which before the making of the deed had been dedicated to public use, and made by authority of the city or town council of the city or incorporated town named as grantor in the deed, prior to 1960, shall be validated.
  2. No such deed made as set forth in subsection (a) of this section shall be impeached or its validity brought in question on the ground that the deed was made without authority of law. However, this section shall not change the effect of any judgment or decree rendered by any court of this state before the passage of this section in any cause wherein the validity of the deed has been brought in question, nor shall this section be pleaded in any action now pending in any of the courts of this state wherein the validity of any deed executed by any city or town of the type referred to in subsection (a) of this section is a matter of litigation.

History. Acts 1967, No. 201, §§ 1, 2; A.S.A. 1947, §§ 19-3834, 19-3835; Acts 2017, No. 878, § 17.

Publisher's Notes. As to prior validating act for deeds prior to 1950, Acts 1955, No. 16.

Amendments. The 2017 amendment substituted “city or town council” for “city council or board of aldermen” in (a).

Research References

Ark. L. Rev.

Validation of Certain Deeds, 9 Ark. L. Rev. 414.

14-301-115. Validation of pre-1925 conveyances of land for streets.

  1. All deeds or conveyances to any portion of any lands dedicated to public use as a street or thoroughfare to any incorporated town, made by authority of the city council to individuals prior to and during the year 1924, shall be and are confirmed and validated.
  2. No such deed or conveyance made as aforesaid shall be impeached on the ground that it was made without authority of law.

History. Acts 1943, No. 40, §§ 1, 2; A.S.A. 1947, §§ 19-3832, 19-3833.

Subchapter 2 — Street Improvements

Research References

ALR.

Damages resulting from temporary conditions incident to public improvements or repairs as compensable taking. 23 A.L.R.4th 674.

14-301-201. Provisions supplemental.

The procedure prescribed in this subchapter for the construction of street improvements and the financing thereof shall be supplemental to all other laws of this state with respect thereto and shall not be construed to amend, repeal, or otherwise affect those laws.

History. Acts 1967, No. 252, § 7; A.S.A. 1947, § 19-3842.

14-301-202. Street improvement studies — Resolution of findings and determinations.

  1. When the governing body of any city or incorporated town in this state shall deem it desirable to enter into a street improvement program in the city or town or any defined areas thereof, the governing body of the city or town may cause studies to be made of:
    1. The needs for street improvements including grading, paving, curbing, guttering, drainage, and storm sewers in the city or town or the designated areas thereof; and
    2. The approximate cost of the improvements, the means available for financing the improvements, the portion thereof which the municipality is willing and able to pay, taking into account any funds available to the city for street improvements including federal funds and the approximate assessment which would be made against each lot or parcel of property in the defined area to reimburse the city for the cost of the improvements to be borne by the property owners in the area.
  2. Upon the completion of the study and determination as provided for in this section, the governing body of the municipality may adopt a resolution setting forth the findings and determinations and agreeing to make the improvements and pay for the improvements out of funds available to the municipality for those purposes, provided the property owners in the municipality or defined areas thereof agree to repay the municipality the cost of the improvements or a prescribed percentage of the cost through uniform, ad valorem, according to value assessed benefits upon each lot or parcel of property in the municipality or defined areas thereof. The governing body of the municipality shall cause the resolution to be published one (1) time in a newspaper of general circulation in the municipality.

History. Acts 1967, No. 252, § 1; A.S.A. 1947, § 19-3836.

14-301-203. Petition to undertake improvements — Notice — Special meeting.

  1. If, within sixty (60) days after the adoption and publication of the resolution by the governing body of the municipality, petitions are filed with the clerk or recorder of the municipality containing the signatures of a majority in value of the real property owners in the municipality or the defined areas thereof requesting that the improvements be undertaken and financed in the manner as stated in the resolution adopted by the governing body of the municipality as authorized in § 14-301-202, the clerk or recorder shall set a date and place for a public hearing on the sufficiency of the petitions.
  2. Notice of the public hearing shall be published one (1) time in a newspaper of general circulation in the municipality not less than five (5) days prior to the date fixed for the hearing.
  3. The governing body of the municipality may hold a special meeting for the purpose of conducting the hearing.

History. Acts 1967, No. 252, § 2; A.S.A. 1947, § 19-3837.

14-301-204. Hearing on petition — Assessments.

  1. At the time and place stated in the notice, the governing body of the municipality shall meet and hear all owners of real property of the designated areas in the municipality who wish to be heard on the question of whether the petitions contain the signatures of a majority in value of the real property owners of the designated areas in the municipality and shall make a finding and ruling as to whether the petitions contain the signatures of a majority in value of the real property owners and shall publish the finding one (1) time in a newspaper of general circulation in the municipality.
  2. The finding and ruling of the governing body of the municipality with respect to the sufficiency of the petitions shall be final and conclusive unless questioned by action filed in the chancery court of the county in which the municipality is located within thirty (30) days after the date of publication of the findings.
  3. If the governing body of the municipality determines that the petitions and signatures on the petition are sufficient, it shall cause an assessment to be made against each lot or parcel of real property in the municipality or the designated areas, based upon the cost of the improvements to be borne by the property owners in the district and the benefits accruing to each lot and parcel of property because of the improvements, with the assessments on property in the municipality or designated areas to be ad valorem, according to value of benefits, and uniform.
  4. A copy of the assessed benefits shall be filed with the city clerk or recorder.
  5. Notice that the assessed benefits have been filed with the city clerk or recorder shall be published once in a newspaper of general circulation in the municipality, and the assessments shall be final and conclusive unless questioned by action filed in the chancery court within thirty (30) days after the date of publication of notice of the filing of the assessed benefits.

History. Acts 1967, No. 252, § 3; A.S.A. 1947, § 19-3838.

14-301-205. Payment.

  1. The assessments on the real property in the district shall be payable to the city or town collector in the manner and within the time prescribed by the governing body of the municipality.
  2. Property owners may be given the option to pay the amount of the assessments in one (1) lump sum payment, or to pay the amount of the assessment in installments, within a time and at a rate of interest prescribed by the governing body of the municipality.

History. Acts 1967, No. 252, § 4; A.S.A. 1947, § 19-3839.

14-301-206. Lien of assessment.

  1. The assessment against each lot or parcel of property shall constitute a lien on the property in favor of the municipality.
  2. When any annual assessed benefit against any lot or parcel of property has not been paid for two (2) years from the date due, the delinquent assessment plus a ten percent (10%) penalty shall be certified by the mayor to the county clerk. The clerk shall place the assessment and penalty on the tax book as delinquent taxes, which shall be collected accordingly. The amount, when so collected, shall be paid to the city by the collector.

History. Acts 1967, No. 252, § 5; A.S.A. 1947, § 19-3840.

14-301-207. Disposition of assessments collected.

All funds derived from assessments upon real property under the provisions of this subchapter shall be funds of the municipality, shall at all times be kept separate and apart from other funds of the municipality, and shall be used solely to reimburse the municipality for expenses incurred in making the study and survey provided for in § 14-301-202 and for funds expended by the municipality for the street improvements made pursuant to the provisions of this subchapter.

History. Acts 1967, No. 252, § 6; A.S.A. 1947, § 19-3841.

Subchapter 3 — Vacating Streets and Alleys for Public Use Generally

Effective Dates. Acts 1945, No. 17, § 9: approved Feb. 6, 1945. Emergency clause provided: “Whereas, uncertainty now exists as to the power of cities and towns to vacate streets and alleys and the exercise of such power is necessary for the proper administration of municipal affairs, it is found that this act is necessary for the immediate preservation of the public peace, health and safety, and an emergency is hereby declared and this Act shall be in full force and effect from and after its passage.”

Acts 1947, No. 88, § 3: Feb. 18, 1947. Emergency clause provided: “The General Assembly of the State of Arkansas finds and declares that numerous uncertainties in the application of Section 2 of Act 17 of the Acts of the General Assembly for 1945 have arisen and will continue to arise because of the antiquity of the proof required thereunder, therefore an emergency is hereby declared to exist, and this act, being necessary for the immediate preservation of the public peace, health and safety, shall take effect and be in full force from and after the date of its passage and approval.”

Acts 1949, No. 98, § 4: Feb. 16, 1949. Emergency clause provided: “The General Assembly of the State of Arkansas finds and declares that numerous uncertainties in the application of Section 2 of Act 17 of the Acts of the General Assembly of 1945 have arisen and will continue to arise because of the antiquity of the proof required thereunder, therefore an emergency is hereby declared to exist, and this Act, being necessary for the immediate preservation of the public peace, health and safety shall take effect and be in full force from and after the date of its passage and approval.”

Case Notes

Construction.

This subchapter does not repeal subdivision (2) of § 14-54-104. Cernauskas v. Fletcher, 211 Ark. 678, 201 S.W.2d 999 (1947).

14-301-301. Power and authority to vacate.

  1. Cities of the first and second class and incorporated towns are given power and authority to vacate public streets and alleys within the cities and towns under the conditions and in the manner herein provided.
  2. In all cases where the owner of property within a city or town shall have dedicated, or may hereafter dedicate, a portion of the property to the public use as streets or alleys by platting the property and causing the plat to be filed for record, as provided by law, and any street or alley, or section thereof, shown on the plat so filed shall not have been actually used by the public as a street or alley for a period of five (5) years and in all cases where all property abutting any street or alley, or section thereof, is owned by any educational institution or college, whether the property shall have been actually used by the public as a street or alley for a period of five (5) years or not, the city or town council shall have power to vacate and abandon the street or alley, or any portion thereof, by proceeding in the manner set forth in this subchapter.

History. Acts 1945, No. 17, §§ 1, 2; 1947, No. 88, § 1; 1949, No. 98, § 1; A.S.A. 1947, §§ 19-3824, 19-3825.

Case Notes

Applicability.

This section has no applicability to the vacation of streets or alleys which have not been dedicated to public use by the owner of the property by platting the property and causing the plat to be filed for record as prescribed. Cernauskas v. Fletcher, 211 Ark. 678, 201 S.W.2d 999 (1947).

This section relates to streets that have not been used for five years; therefore, it afforded no ground for dismissal of action to enjoin enforcement of ordinance for closing of street that was being used and had been used for 50 years. Stephens v. City of Springdale, 233 Ark. 865, 350 S.W.2d 182 (1961).

This section does not affect the power of a city to vacate and close a portion of a street under the authority of § 14-54-104. Brooksher v. Jones, 238 Ark. 1005, 386 S.W.2d 253 (1965).

Where the alley had never been platted, filed of record, or dedicated to the city and the written consent of the abutter had not been obtained as provided in § 14-301-303, the city had no authority to close an alley under this section; therefore, the 30-day statute of limitations in § 14-301-305 was not applicable to this ordinance. Jones v. American Home Life Ins. Co., 293 Ark. 330, 738 S.W.2d 387 (1987).

Educational Institution.

The city had power to vacate two block-long sections of streets and a block-long section of alley where all the land abutting the sections of streets and alley was owned by a bishop who operated a church and school thereon. City of Little Rock v. Linn, 245 Ark. 260, 432 S.W.2d 455 (1968).

Proper Authority.

Trial court did not err in deciding that § 14-54-303 was controlling for the town to vacate a street, because an incorporated town's ability to vacate a street under § 14-54-303 was independent, and §§ 14-301-301 to 14-301-303 had no application when an incorporated town used its authority under § 14-54-303. Riley v. Town of Higginson, 2009 Ark. App. 294, 307 S.W.3d 34 (2009).

Cited: Ellington v. Remmel, 226 Ark. 569, 293 S.W.2d 452 (1956); Kemp v. Simmons, 244 Ark. 1052, 428 S.W.2d 59 (1968); City of Little Rock v. Linn, 245 Ark. 260, 432 S.W.2d 455 (1968); Lacey v. Bekaert Steel Wire Corp., 619 F. Supp. 1234 (W.D. Ark. 1985); Thomas v. City of Little Rock, 52 Ark. App. 24, 914 S.W.2d 328 (1996).

14-301-302. Petition to vacate — Notice of hearing.

  1. The owners of any property abutting upon a street or alley referred to in § 14-301-301, may file a petition with the city or town council requesting the council to vacate the street or alley, or a portion thereof.
  2. The petition shall designate the street or alley, or a portion thereof, to be vacated, and there shall be filed with the petition a certified or photostatic copy of the portion of the plat filed in the office of the county recorder which shows the street or alley to be vacated, together with the lot and block numbers of each lot which abuts upon the street or alley to be vacated.
  3. At the next regular or special meeting of the council, the council shall, by resolution, fix a day for the hearing of the petition and shall direct the city clerk or town recorder to give notice of the meeting by publication once a week for two (2) consecutive weeks in some newspaper published in the county and having a general circulation in the city or town.
  4. The notice shall:
    1. State the names of the persons who sign the petition;
    2. State the name of the street or alley, or the portion thereof, to be vacated. If the street or alley is not named on the plat, the notice shall identify the street or alley by the abutting lot or block numbers; and
    3. Advise all persons that on a certain day named in the notice, the council will hear and determine whether the street or alley shall be vacated.

History. Acts 1945, No. 17, § 3; A.S.A. 1947, § 19-3826.

Case Notes

Proper Authority.

Trial court did not err in deciding that § 14-54-303 was controlling for the town to vacate a street, because an incorporated town's ability to vacate a street under § 14-54-303 was independent, and §§ 14-301-301 to 14-301-303 had no application when an incorporated town used its authority under § 14-54-303. Riley v. Town of Higginson, 2009 Ark. App. 294, 307 S.W.3d 34 (2009).

Cited: Ellington v. Remmel, 226 Ark. 569, 293 S.W.2d 452 (1956).

14-301-303. Hearing — Written consent of abutting owners.

At the meeting of the council as designated in the notice, any property owner affected by the petition shall be heard. The council shall then determine whether, from the standpoint of public interest and welfare, the street or alley should be vacated as proposed in the petition. However, no street or alley, or any portion thereof, shall be abandoned or vacated unless there has been filed with the council the written consent of the owners of all lots abutting on the street or alley, or the portion thereof, to be vacated.

History. Acts 1945, No. 17, § 4; A.S.A. 1947, § 19-3827.

Case Notes

Abutting Property Owners.

In litigation involving the closing of an alley where the procedure was instituted under this section, which necessitated the written consent of the owners of all abutting lots, while the written consent of those owners actually abutting the two ends of the alley had been obtained, from the practical standpoint upon both ends of the alley being closed, the entire alley would become closed, and therefore, all abutting property owners not having given their consent, the petitioners had to fail. Roberts v. Pace, 230 Ark. 280, 322 S.W.2d 75 (1959).

This section did not repeal § 14-54-104, and the failure of parties to secure the closing of an alley under the procedure set out in this section, requiring the consent of the abutting property owners, would not be res judicata of any future litigation between the same parties instigated under § 14-54-104, the procedure there involving the closing of an alley in order to better provide for the public welfare of the inhabitants of the city. Roberts v. Pace, 230 Ark. 280, 322 S.W.2d 75 (1959).

Where the alley had never been platted, filed of record, or dedicated to the city and the written consent of the abutter had not been obtained as provided in this section, the city had no authority to close alley under § 14-301-301; therefore, the 30-day statute of limitations in § 14-301-305 was not applicable to this ordinance. Jones v. American Home Life Ins. Co., 293 Ark. 330, 738 S.W.2d 387 (1987).

Whether the appellants were the owners of abutting property was an issue of material fact that should have been tried, and the chancellor erred in dismissing the appellants' complaint where (1) the appellants owned the property that abutted the north end of a street and the appellees owned the property that abutted the south end of the street, (2) the appellees sought to have the south 10 feet of the street vacated and abandoned, and (3) although the appellants' ingress and egress would not be blocked by the closing, the portion of the street abutting their property would be been narrowed, which they claimed would have an adverse effect on the use of their property. Holliman v. Liles, 72 Ark. App. 169, 35 S.W.3d 369 (2000).

Proper Authority.

Trial court did not err in deciding that § 14-54-303 was controlling for the town to vacate a street, because an incorporated town's ability to vacate a street under § 14-54-303 was independent, and §§ 14-301-301 to 14-301-303 had no application when an incorporated town used its authority under § 14-54-303. Riley v. Town of Higginson, 2009 Ark. App. 294, 307 S.W.3d 34 (2009).

Cited: Ellington v. Remmel, 226 Ark. 569, 293 S.W.2d 452 (1956); Thomas v. City of Little Rock, 52 Ark. App. 24, 914 S.W.2d 328 (1996).

14-301-304. Ordinance vacating street or alley.

  1. If the council shall find by a majority vote of its members that the petition should be granted, either in whole or in part, the decision of the council shall be incorporated in an ordinance to that effect which shall be substantially as follows:

“Whereas, a petition was duly filed with the City (or Town) Council of the City (or Town) of , Arkansas, on the day of , 19 , asking the City (or Town) Council to vacate and abandon all that portion of the street (or alley) designated on the plat of the Addition to the City (or Town) now appearing of record in plat book , page , in the office of the recorder of County, beginning at and ending at . “Whereas, after due notice as required by law, the council has, at the time and place mentioned in the notice, heard all persons desiring to be heard on the question and has ascertained that the street (or alley) or the portion thereof, hereinbefore described, has heretofore been dedicated to the public use as a street (or alley) herein described; has not been actually used by the public generally for a period of at least five (5) years subsequent to the filing of the plat; that all the owners of the property abutting upon the portion of the street (or alley) to be vacated have filed with the council their written consent to the abandonment; and that public interest and welfare will not be adversely affected by the abandonment of the street (or alley). “Now, therefore, be it ordained by the City (or Town) Council of the City (or Town) of , Arkansas: “Section 1. The City (or Town) of , Arkansas, releases, vacates, and abandons all its rights, together with the rights of the public generally, in and to the street (or alley) designated as follows: “(Here will be designated the street or alley to be abandoned by reference to the official plat.) “Section 2. A copy of the ordinance duly certified by the city clerk or town recorder shall be filed in the office of the recorder of the county and recorded in the deed records of the county. “Section 3. This ordinance shall take effect and be in force from and after its passage.”

Click to view form.

History. Acts 1945, No. 17, § 5; A.S.A. 1947, § 19-3828.

Case Notes

Cited: Ellington v. Remmel, 226 Ark. 569, 293 S.W.2d 452 (1956); Jones v. American Home Life Ins. Co., 293 Ark. 330, 738 S.W.2d 387 (1987).

14-301-305. Suit to reject ordinance — Evidence of consent.

  1. The determination, findings, and ordinance of the council shall be conclusive unless, within thirty (30) days after the passage of the ordinance, suit is brought to reject the ordinance in the chancery court of the county where the city or town is located.
  2. In determining whether all abutting property owners have consented to the abandonment, the council and chancery court shall be limited by the record of deeds in the office of the recorder of the county and shall not consider unrecorded instruments.

History. Acts 1945, No. 17, § 6; A.S.A. 1947, § 19-3829.

Case Notes

Abutting Property Owners.

In litigation involving the closing of an alley where the procedure was instituted under § 14-301-303, which necessitated the written consent of the owners of all abutting lots, while the written consent of those owners actually abutting the two ends of the alley had been obtained, from the practical standpoint upon both ends of the alley being closed, the entire alley would become closed, and therefore, all abutting property owners not having given their consent, the petitioners had to fail. Roberts v. Pace, 230 Ark. 280, 322 S.W.2d 75 (1959).

Nonabutting Owners.

Where nonabutting owners could not show special and peculiar injury suffered in connection with the closing of a street in which city had only an easement, the nonabutting owners did not have standing to challenge city ordinance vacating and abandoning the street. Freeze v. Jones, 260 Ark. 193, 539 S.W.2d 425 (1976).

Ordinances Upheld.

Where city board of directors found that traffic on a portion of a street had declined and that closing of this portion of the street would not work a hardship on many people, and where owners of abutting property consented to closing of the street, an ordinance adopted by the board of directors vacating and abandoning the street was not ultra vires. Freeze v. Jones, 260 Ark. 193, 539 S.W.2d 425 (1976).

Res Judicata.

Where only issue in prior suit to enjoin city from enforcing ordinance adopted under the authority of this subchapter purporting to close certain streets was the validity of such ordinance, authority of city to adopt ordinance under § 14-54-104 relocating portions of such streets was not res judicata in proceeding to enjoin enforcement of second ordinance. Risser v. City of Little Rock, 225 Ark. 318, 281 S.W.2d 949 (1955), cert. denied, Risser v. Little Rock, 350 U.S. 965, 76 S. Ct. 433 (1956), overruled in part, Parish v. Pitts, 244 Ark. 1239, 429 S.W.2d 45 (1968).

This section did not repeal § 14-54-104, and the failure of parties to secure the closing of an alley under the procedure set out in § 14-301-303, requiring the consent of the abutting property owners, would not be res judicata of any future litigation between the same parties instigated under § 14-54-104, the procedure there involving the closing of an alley in order to better provide for the public welfare of the inhabitants of the city. Roberts v. Pace, 230 Ark. 280, 322 S.W.2d 75 (1959).

Decision concerning the validity of one ordinance under § 14-301-301 regarding the closing of an alley was not res judicata with respect to the validity of second ordinance enacted pursuant to § 14-54-104. Jones v. American Home Life Ins. Co., 293 Ark. 330, 738 S.W.2d 387 (1987).

Statute of Limitations.

Where the alley had never been platted, filed of record, or dedicated to the city and the written consent of the abutter had not been obtained as provided in § 14-301-303, the city had no authority to close this alley under § 14-301-301; therefore, the 30-day statute of limitations in this section was not applicable to this ordinance. Jones v. American Home Life Ins. Co., 293 Ark. 330, 738 S.W.2d 387 (1987).

If the statutory conditions have not been met when a city council passes an ordinance that closes a portion of a street, then the 30 day statute of limitations does not apply. Holliman v. Liles, 72 Ark. App. 169, 35 S.W.3d 369 (2000).

Cited: Ellington v. Remmel, 226 Ark. 569, 293 S.W.2d 452 (1956); City of Little Rock v. Linn, 245 Ark. 260, 432 S.W.2d 455 (1968).

14-301-306. Ownership of street or alley vesting in abutting owners — Pending suits unaffected.

  1. Upon the adoption of the ordinance, the absolute ownership of the property abandoned by the city or town shall vest in the owners of the real estate abutting thereon. Each such abutting owner shall take title to the center line of the street or alley so abandoned, and the ownership shall be free from the easement of the city or town for public use as a street or alley.
  2. This subchapter shall not affect suits now pending in any of the courts of this state.

History. Acts 1945, No. 17, § 7; A.S.A. 1947, § 19-3830.

Case Notes

Vesting of Ownership.

Where a street right-of-way has been dedicated by the filing of a plat and the easement has been accepted by the city, the ownership of the fee in the right-of-way remains in the abutting owners, so that when the city vacates the street it cannot be sold by the city nor devoted to another public use. Freeze v. Jones, 260 Ark. 193, 539 S.W.2d 425 (1976).

This section does not automatically vest the fee to an abandoned highway in the owners of the properties on each side of the alley; whether a property owner's reversionary interest, upon abandonment of a highway, extends to the center of the highway or to the entire highway depends upon whether he or she contributed land on one side of the highway only or on both sides. Kralicek v. Chaffey, 67 Ark. App. 273, 998 S.W.2d 765 (1999).

Cited: Ellington v. Remmel, 226 Ark. 569, 293 S.W.2d 452 (1956).

Subchapter 4 — Closure of Alleys to Build Schools, Hospitals, Orphanages, or Churches

Effective Dates. Acts 1923 (1st Ex. Sess.), No. 30, § 7: approved Oct. 23, 1923. Emergency clause provided: “This act being necessary for the immediate preservation of the public peace, health and safety, an emergency is hereby declared to exist and this act shall be in force from and after its passage.”

14-301-401. Closure authority.

When, in the opinion of a majority of the members of any city or town council in any of the cities of the first or second class or any incorporated towns of this state, it shall be necessary and desirable to use the land which is or may be dedicated for the use of the general public as an alley through or across any part of any block in the city or town, upon which to build any public school, hospital, orphanage, or church building, or any addition to the buildings as may be built, it shall be lawful for the city or town council, by ordinance duly enacted, to vacate and close the alley, or any part thereof, thereby cancelling and rescinding the rights of the general public and the owners of real property abutting upon the alley to use the property as an alley. However, the procedure for vacating and closing an alley or any part thereof shall be as set out in this subchapter.

History. Acts 1923 (1st Ex. Sess.), No. 30, § 1; Pope's Dig., § 9603; A.S.A. 1947, § 19-3818.

Case Notes

Closings Justified.

Where a bishop owned all the real estate abutting portions of two streets and an intersecting alley sought to be closed and desired to close them to permit the construction of additional facilities for a church school operated by him on such abutting lands, nearby streets and alleys could readily carry all the traffic diverted from those to be closed, and the inconvenience to neighboring property owners would be slight, the closing of the portions of streets and alley as petitioned was justified. City of Little Rock v. Linn, 245 Ark. 260, 432 S.W.2d 455 (1968).

14-301-402. Petition of property owners to close alley — Notice.

When any person files with the city clerk or recorder of any city of the first or second class or any incorporated town in this state a petition signed by ten (10) or more persons claiming to be owners of real property in the city or town and including a majority of the owners of real property abutting upon any alley running through or across any part of any block in the city, with this petition stating that the land embraced in the alley or any part thereof is needed for the purpose of building on the lands any public school, hospital, orphanage, or church building, or any addition to those buildings, and praying that the alley be vacated as a whole or in part and, if not as a whole, describing specifically the part of the alley desired to be vacated, then it shall be the duty of the city clerk or recorder to give notice of the filing of the petition by publication in some newspaper published in the city or town, by one (1) insertion. If no newspaper is published therein, notice shall be given by publication of the notice, by one (1) insertion, in any newspaper published in the county and shall call upon the owners of real property abutting upon the alley and upon all other persons, firms, and corporations, to appear before the council of the city or town at its next regular meeting to be held after ten (10) days from the date of the notice and show cause, if any they can, why the petition should not be granted and the alley vacated.

History. Acts 1923 (1st Ex. Sess.), No. 30, § 2; Pope's Dig., § 9604; A.S.A. 1947, § 19-3819.

14-301-403. Hearing — Closure ordinance.

On the day named in the notice provided for in § 14-301-402 of this subchapter, the city or town council shall hear the petition and the protests and objections of all persons, firms, or corporations desiring to object to or protest against the closing and vacating of the alley, and if a majority of the city or town council finds that the petition is signed by ten (10) or more owners of real property in the city or town, including a majority of the owners of real property abutting upon the alley, and that it is desirable or necessary to close the alley for any of the purposes mentioned in § 14-301-401, then the city or town council shall, by ordinance, vacate and close the alley or such part thereof as may be described in the petition. Thereafter, the right of the general public and of the owners of real property abutting upon the alley to use the lands embraced therein and described in the petition as an alley shall be forever cancelled and barred, and the title to the lands embraced in the alley shall be forever free of the right of all persons to use the lands as an alley. However, no protest or objection to the closing of the alley shall be considered by the council or by any court on appeal unless the protest or objection shall be in writing and shall be filed before or at the hearing provided for in this section.

History. Acts 1923 (1st Ex. Sess.), No. 30, § 3; Pope's Dig., § 9605; A.S.A. 1947, § 19-3820.

Research References

Ark. L. Rev.

Case Note, Lost in Translation: Combs v. City of Springdale, An Overview of the Ins and Outs of Appeals Procedure for Administrative Decisions by Local Governments, 61 Ark. L. Rev. 351.

14-301-404. Appeal — Bond.

  1. Any person, firm, or corporation aggrieved by the finding of any council of any city or town upon any petition named in this subchapter shall have the right to appeal to the circuit court of the county in which the city or town is located, upon the filing of a good and sufficient bond for all costs of the appeal and an affidavit setting forth that the appeal is not taken for delay but that justice may be done the party appealing. The bond and affidavit shall be filed within ten (10) days after the hearing provided for in § 14-301-402, and not thereafter, but the appeal shall not operate to delay the construction of any building of any public school, hospital, orphanage, or church unless the parties taking the appeal shall enter into bond for the diligent prosecution of the appeal and guaranteeing the payment of all damages that may result from the delay in the construction of the buildings during the time the appeal shall be pending. The bond is to be filed with the city clerk or recorder of the city or town council from the finding of which the appeal shall be taken.
  2. Upon all appeals, the case shall be heard de novo by the circuit judge sitting as a jury. If the court shall find that the lands embraced in the alley or any part of the alley described in the petition are needed for the construction of any of the buildings described in § 14-301-401, that the petition is signed by ten (10) or more owners of real property in the city or town where the alley lies, and that the petition is also signed by a majority of the owners of real property abutting the alley, it shall be the duty of the court to dismiss the appeal; otherwise, the court shall declare the ordinance passed by the city or town council to be void and of no effect and shall enter an order accordingly.

History. Acts 1923 (1st Ex. Sess.), No. 30, §§ 4, 6; Pope's Dig., §§ 9606, 9608; A.S.A. 1947, §§ 19-3821, 19-3823.

14-301-405. Transcripts.

  1. Upon the filing of any bond and affidavit for appeal with the city clerk or recorder, as provided in this subchapter, the city clerk or recorder shall immediately prepare a certified transcript of the record in the case. The transcript shall include copies of the original petition, the bond and affidavit for appeal and the ordinance enacted by the city or town council upon the petition closing and vacating the alley. The recorder or clerk shall certify the transcript, affixing to the certificate of the transcript the seal of the city or town council and shall file the transcript with the circuit clerk of the county. The appeal shall stand for trial upon the first day thereafter that the circuit court shall meet in regular or adjourned session.
  2. The appeal, upon motion of any of the parties interested therein, shall be advanced and heard ahead of any and all other cases, such matters being of great public interest and importance. Upon notice by any interested party requiring him to do so, the city clerk or recorder shall file with the circuit clerk any or all of the original papers in such matters.

History. Acts 1923 (1st Ex. Sess.), No. 30, § 5; Pope's Dig., § 9607; A.S.A. 1947, § 19-3822.

Chapter 302 Municipal Street And Parking Revenue Bond Act

Effective Dates. Acts 1967, No. 317, § 14: Mar. 13, 1967. Emergency clause provided: “It is hereby found and declared that there is an immediate need for many municipalities in this State to accomplish street and parking projects and that the public health, safety and welfare of the citizens of this State are jeopardized because the municipalities involved do not have funds available to accomplish the projects and cannot issue bonds to accomplish the projects. The authority conferred by this act will make it possible for municipalities to proceed with the accomplishment of the needed projects and prompt action is necessary so that necessary planning can be undertaken and completed and the work undertaken as soon as possible. Therefore, it is declared, for these reasons, that an emergency exists and this act, being essential to the preservation of the public peace, health and safety shall take effect and be in force from and after its passage and approval.”

Acts 1970 (Ex. Sess.), No. 29, § 4: Mar. 13, 1970. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 1975, No. 225, § 26: became law without Governor's signature, Feb. 19, 1975. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this state and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this act. Therefore, an emergency is declared to exist and this act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 1977, No. 476, § 3: became law without Governor's signature, Mar. 16, 1977. Emergency clause provided: “It is hereby found and determined by the General Assembly that clarification is needed with regard to the distribution, dedication and/or use of municipal highway turnback revenues pledged to accomplish street and parking projects. To make it possible for municipalities to proceed with the accomplishment of the needed projects and to insure that no default in bond payments will occur, prompt action is necessary. Therefore, it is declared, for these reasons, that an emergency exists and this Act, being essential to the preservation of the public peace, health and safety shall take effect and be in force from and after its passage and approval.”

Acts 1981, No. 425, § 54: Mar. 11, 1981. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

14-302-101. Title.

This chapter may be referred to and cited as the “Municipal Street and Parking Revenue Bond Act.”

History. Acts 1967, No. 317, § 1; A.S.A. 1947, § 13-1701.

Cross References. Local Government Bond Act of 1985, § 14-164-301 et seq.

14-302-102. Purpose and construction.

  1. This chapter shall be construed liberally.
  2. All acts and activities of the municipality performed pursuant to the authority of this chapter are legislatively determined and declared to be essential governmental functions.
  3. In this regard it is determined and declared that this chapter is the sole authority necessary for the performance of the acts authorized by this chapter including, without limitation, the issuance of bonds.
  4. There is conferred upon the municipalities of this state the authority to take such action and to do or cause to be done such things as shall be necessary or desirable to accomplish and implement the purposes and intent of this chapter according to the import hereof.

History. Acts 1967, No. 317, § 11; A.S.A. 1947, § 13-1711.

14-302-103. Chapter cumulative.

The provisions of this chapter shall be cumulative, insofar as the authority conferred and the subject matter dealt with is concerned, to all other laws dealing with the accomplishing of similar work to that embodied in street and parking projects dealt with in this chapter and to the financing and operation thereof by municipalities or agencies or authorities of municipalities.

History. Acts 1967, No. 317, § 13; A.S.A. 1947, § 13-1711n.

14-302-104. Definitions.

As used in this chapter, unless the context otherwise requires:

  1. “Bonds” means bonds issued under the authority of this chapter;
  2. “Municipalities” means first-class cities, second-class cities, and incorporated towns;
  3. “Street and parking revenues” means special revenues specified in § 14-302-110.

History. Acts 1967, No. 317, §§ 2, 3, 6; A.S.A. 1947, §§ 13-1702, 13-1703, 13-1706.

14-302-105. Power of municipalities over street and parking projects.

Municipalities are authorized and empowered to acquire, by purchase or exercise of eminent domain:

  1. Sites and rights-of-way to construct, reconstruct, widen, extend, and maintain streets, alleys, and roadways of every nature including, without limitation, bridges, tunnels, overpasses, underpasses, interchanges, entrance plazas, approaches, access roads, and any other work of whatever nature incidental thereto; and
  2. Sites and rights-of-way to construct, reconstruct, widen, extend, and maintain and operate off-street parking facilities, sometimes collectively referred to in this chapter as “street and parking projects.”

History. Acts 1967, No. 317, § 2; A.S.A. 1947, § 13-1702.

14-302-106. Authority to issue bonds — Costs.

  1. Municipalities are authorized and empowered to issue revenue bonds from time to time in principal amounts sufficient to pay the costs of street and parking projects as they are defined in subsection (c) of this section.
  2. More than one (1) street or parking project, or combination thereof, may be involved as to any issue of revenue bonds hereunder. There may be more than one (1) issue for a particular street or parking project, or combination thereof, or there may be one (1) issue sold and delivered in series.
  3. The costs of a street or parking project, or combination thereof, as the case may be, may include all costs incurred in connection with the accomplishing of the project, an amount covering interest in bonds during construction and for a period up to one (1) year thereafter, any amounts determined to be desirable by the municipality for funding debt service and maintenance reserves, and all expenses incurred in connection with the authorization and issuance of bonds.

History. Acts 1967, No. 317, § 3; A.S.A. 1947, § 13-1703.

14-302-107. Issuance of bonds — Sale.

  1. Bonds shall be authorized by ordinance of the governing body of the municipality.
  2. They may be coupon bonds, payable to bearer, or may be registrable as to principal only, with interest coupons, or may be registrable as to both principal and interest without coupons, and may be made exchangeable for bonds of another denomination, which bonds of another denomination may in turn be either coupon bonds, payable to bearer, or bonds registrable as to principal only with coupons, or bonds registrable as to both principal and interest without coupons. The bonds may be in such form and denominations; the bonds may have such date or dates; the bonds may mature at such time or times and in such amount or amounts, provided that no bonds may mature more than forty (40) years from date; the bonds may bear interest payable at such times and at such rate or rates; the bonds may be payable at such place or places within or without the State of Arkansas; the bonds may be subject to such terms of redemption in advance of maturity at such prices, including such premiums; and the bonds may contain such other terms and provisions, all as the municipality issuing the bonds shall determine.
  3. The authorizing ordinance may contain any other terms, covenants, and conditions that are deemed desirable by the municipality including, without limitation:
    1. Provisions controlling the priority between and among successive issues;
    2. Those pertaining to the custody and application of bond proceeds, the maintenance and investment of various funds and reserves;
    3. The nature and extent of the security;
    4. The rights, duties, and obligations of the municipality and of the holders and registered owners of the bonds.
  4. Bonds may be sold in the manner the municipality involved may determine to be in its best interest and may be sold for such price including, without limitation, sale at a discount. The bonds may be sold with the privilege of conversion upon terms and conditions as the municipality involved shall specify, but in no event shall the municipality involved receive less or pay more than it would receive and pay if the bonds were not converted.

History. Acts 1967, No. 317, § 4; 1970 (Ex. Sess.), No. 29, § 1; 1975, No. 225, § 7; 1981, No. 425, § 7; A.S.A. 1947, § 13-1704.

14-302-108. Execution of bonds and coupons — Seal.

  1. Bonds shall be executed by the manual or facsimile signature of the mayor of the municipality and by the manual signature of the clerk or recorder of the municipality.
  2. Coupons attached to the bonds shall be executed by the facsimile signature of the mayor.
  3. In case any of the officers whose signatures appear on the bonds or coupons shall cease to be such officer before the delivery of the bonds or coupons, their signatures shall nevertheless be valid and sufficient for all purposes.
  4. The bonds shall be sealed with the seal of the municipality issuing the bonds.

History. Acts 1967, No. 317, § 5; A.S.A. 1947, § 13-1705.

14-302-109. Bonds as special obligations payable from street and parking revenues.

  1. The bonds shall not be general obligations of the municipality involved but shall be special obligations payable solely from the revenues specified in § 14-302-110.
  2. The principal of and interest on all bonds issued under the authority of this chapter shall be secured solely by a pledge of, and shall be payable solely from, street and parking revenues.
  3. The ordinance authorizing the issuance of bonds together with this chapter shall constitute a contract by and between the municipality and the holders and registered owners of all bonds issued by the municipality under the authority of this chapter, which contract, and all covenants, agreements, and obligations therein, shall be promptly performed in strict compliance with the terms and provisions of the contract. The contract and all rights of the holders and registered owners of the bonds and the obligations of the municipality may be enforced by mandamus or any other appropriate proceeding at law or in equity.
  4. It shall be plainly stated on the face of each bond that it has been issued under the provisions of this chapter.

History. Acts 1967, No. 317, § 6; A.S.A. 1947, § 13-1706.

Case Notes

Cited: Daniels v. City of Ft. Smith, 268 Ark. 157, 594 S.W.2d 238 (1980).

14-302-110. Use of street and parking revenues for the payment of bonds issued.

The municipality involved may pledge and use all or any part of the following street and parking revenues for the payment of bonds issued by it as follows:

  1. In the case of a parking project or of a street and parking project, the municipality is authorized to fix charges for the use of the off-street parking facilities and to pledge to, and use the net revenues derived therefrom for, the payment of the principal of and interest on the bonds. In that event, the municipality shall include a covenant in its contract with the bondholders that it will always operate the off-street parking facilities as a revenue-producing undertaking so long as any bonds issued by it under the authority of this chapter shall be outstanding, and that it will fix and collect charges for the use of the off-street parking facilities which will produce revenues at least sufficient to provide for the payment of any operation and maintenance expenses of the off-street parking facilities and leave a balance of funds which, together with other street and parking revenues specified in this section which it may pledge, will provide for the payment of the principal of, interest on, and paying agent's fees in connection with the bonds as they become due, and for the maintenance, at the required level, of a debt service reserve, if one is provided for.
    1. In the case of a street project or of a street and parking project, the municipality is authorized to pledge and use all, or any part, of the net parking meter revenues derived from any or all parking meters in the municipality. As used in this section, “net parking meter revenues” means gross revenues derived from the operation of the parking meters, less the total of the following:
      1. The amounts, if any, required to be paid on a current basis on any indebtedness incurred in the acquisition of the parking meters;
      2. The amounts of the costs of operating and maintaining the parking meters; and
      3. If there are outstanding bonds to which a pledge of parking meter revenues has been made, the amounts required to be used for the timely payment of the principal, interest, and paying agent's fees on the outstanding bonds and for the maintenance at the required levels of any reserves or other funds specified in the authorizing ordinance or in the pledge securing the outstanding bonds.
    2. In the event net parking meter revenues are pledged and used, as authorized in this section, the municipality shall include a covenant in the contract with the bondholders that it will always operate its parking meters as a revenue-producing undertaking so long as any bonds issued by it under the authority of this chapter shall be outstanding and that it will fix and collect parking meter revenues in such amounts that net parking meter revenues, together with any other street and parking revenues specified in this section which it may pledge, will provide for the payment of the principal, interest, and paying agent's fees in connection with the bonds as the bonds become due, and for the maintenance, at the required level, of a debt service reserve, if one is provided for.
  2. In the case of a street project or a parking project, or of a combination thereof, the municipality is authorized to pledge and use all, or any part, of the amounts at any time received from the Treasurer of State as municipal aid derived from the Arkansas Highway Revenue Distribution Law, as from time to time amended, § 27-70-201 et seq., or under any law replacing or intended as a substitute therefor which specifies the distribution of motor fuel taxes and motor vehicle registration and licensing fees. The treasurer of any municipality which shall have so pledged its municipal aid turnback for the bond payments pursuant to an executed bond ordinance shall withhold each month from the municipal aid turnback transfer for deposit in a special account within the municipality's street fund an amount sufficient to meet the current month's payment for the principal of, interest on, and paying agent's fees therefor. This payment shall be paid directly to the trustee, or other custodian of street and parking revenues, designated in the authorizing bond ordinance. So long as any bonds issued under the authority of this chapter shall be outstanding, if any changes are made by the General Assembly in municipal highway turnback revenues, or in the applicable highway revenue distribution law, the changes must be such that substantially the same amount of municipal highway turnback revenues pledged to outstanding bonds will be received by the municipality involved as would have been received had there been no changes.

History. Acts 1967, No. 317, § 7; 1977, No. 476, § 1; A.S.A. 1947, § 13-1707.

14-302-111. Refunding bonds.

  1. Revenue bonds may be issued for the purpose of refunding any bonds issued under the authority of this chapter.
  2. The refunding bonds may be combined into a single issue with revenue bonds issued for a street and parking project.
  3. Refunding bonds may either be sold or delivered in exchange for the bonds being refunded.
  4. If sold, the proceeds may be either applied to the payment of the bonds being refunded or deposited in trust and there maintained in cash or investments for the retirement thereof, as shall be specified by the municipality in the ordinance authorizing and securing the refunding bonds.
  5. The ordinance authorizing the refunding bonds may provide that the refunding bonds shall have the same priority of lien on street and parking revenues pledged for their payment as was enjoyed by the bonds refunded. Refunding bonds shall be sold and secured in accordance with the provisions of this chapter pertaining to the sale and security of revenue bonds.

History. Acts 1967, No. 317, § 8; A.S.A. 1947, § 13-1708.

14-302-112. Revenue bonds made securities.

  1. Revenue bonds issued under the authority of this chapter are made securities in which insurance companies, trust companies, banks, investment companies, executors, administrators, trustees, and other fiduciaries may properly and legally invest funds including capital in their control or belonging to them.
  2. The bonds are made securities which may properly and legally be deposited with, and received by, any state or municipal officer or any agency or political subdivision of this state for any purpose for which the deposit of bonds or obligations of this state is now or may hereafter be authorized by law.
  3. Any municipality or county; any board, commission, or other authority established by any such municipality or county; or the boards of trustees, respectively, of any retirement fund or retirement system created by or pursuant to authority conferred by the General Assembly may, in its discretion, invest any of its funds not immediately needed for its purposes in bonds issued under the authority of this chapter. Bonds issued under the authority of this chapter shall be eligible to secure the deposit of public funds.

History. Acts 1967, No. 317, § 9; A.S.A. 1947, § 13-1709.

14-302-113. Bonds — Tax exemption.

The principal of, and interest on, bonds issued under the authority of this chapter shall be exempt from all state, county, and municipal taxes. This exemption shall include income, inheritance, and estate taxes.

History. Acts 1967, No. 317, § 10; A.S.A. 1947, § 13-1710.

A.C.R.C. Notes. Language excluding property taxes from the exemption provided by this section was deleted pursuant to Arkansas Constitution, Amendment 57, § 1 and § 26-3-302. The Arkansas Constitution, Amendment 57, § 1 provides that the General Assembly may classify intangible personal property for assessment at lower percentages of value than other property and may exempt one or more classes of intangible personal property from taxation, or may provide for the taxation of intangible personal property on a basis other than ad valorem. Section 26-3-302 exempts all intangible personal property in this state from all ad valorem tax levies of counties, cities, and school districts in the state as of January 1, 1976.

Chapter 303 Municipal Tollway Authority Act

Subchapter 1 — General Provisions

Effective Dates. Acts 1968 (1st Ex. Sess.), No. 33, § 23: Feb. 20, 1968. Emergency clause provided: “It is hereby found and declared that the construction and operation of tollway projects, as authorized by this Act, are required for the public health, safety and welfare because of the increase of commerce and vehicular travel essential to individual, city and state progress and prosperity; that moneys now available are insufficient to permit the construction of tollway projects that can be constructed under the authority of this Act; and that realization of the public benefits sought to be accomplished by this Act depend upon the prompt undertaking of the acts authorized hereby. Therefore, it is declared, for these reasons, that an emergency exists and this Act being essential for the preservation of the public peace, health and safety shall take effect and be in force from and after its passage and approval.”

14-303-101. Title.

This chapter may be referred to and cited as the “Arkansas Municipal Tollway Authority Act.”

History. Acts 1968 (1st Ex. Sess.), No. 33, § 1; A.S.A. 1947, § 76-2601.

14-303-102. Construction.

  1. This chapter shall be construed liberally.
  2. All acts and activities of an authority performed pursuant to the powers of this chapter are determined and declared by the General Assembly to be essential governmental functions. In this regard, it is determined and declared that this chapter is the sole authority necessary for the performance of the acts authorized in this chapter including, without limitation, the issuance of bonds. Specifically, it shall not be necessary for the city involved to take any action with reference to any matters concerning which authority is conferred upon an authority including, without limitation, the issuance of revenue bonds. To this end, there is conferred upon authorities created pursuant to the provisions of this chapter the power to take action and do or cause to be done anything necessary or desirable to accomplish and implement the purposes and intent of this chapter according to the import hereof with the action taken by an authority or the things done or caused to be done by an authority pursuant to the provisions of this section being determined and declared to be ministerial rather than legislative in nature.

History. Acts 1968 (1st Ex. Sess.), No. 33, § 21; A.S.A. 1947, § 76-2621.

14-303-103. Definitions.

As used in this chapter, unless the context otherwise requires:

  1. “Authority” means any municipal tollway authority created pursuant to the provisions of this chapter;
  2. “Project” or “tollway project” means any expressway constructed under the provisions of this chapter by an authority including, without limitation, lands, rights-of-way, bridges, tunnels, overpasses, underpasses, interchanges, entrance plazas, approaches, toll houses, service stations, administration buildings, storage buildings, and other buildings and facilities which the authority involved may deem necessary or desirable for the operation of a tollway project, together with all property, rights, easements, rights-of-way, and interest that may be acquired by an authority for or in connection with the construction or operation of a tollway project. Each tollway project shall be separately designated by appropriate name or number and may be constructed, reconstructed, or extended in sections and stages as the authority may determine from time to time;
  3. “Costs” or “project costs” embraces all direct and indirect costs incurred in connection with the acquisition of rights-of-way for, and constructing and equipping, tollway project. This shall include, without limitation, the cost of the acquisition of all lands, rights-of-way, property, rights, easements, and interest acquired by an authority; the cost of demolishing or removing buildings or structures on the land so acquired; the cost of acquiring any lands to which the buildings or structures may be moved; the cost of all machinery and equipment, financing charges, interest prior to and during construction, and, for a period of not exceeding two (2) years after construction, the funding of a debt service reserve if determined to be necessary by the authority involved; the cost of traffic estimates,engineering fees, legal fees, plans, specifications, surveys, estimates of cost and revenues, any other expenses or expenditures necessary or incidental to determining the feasibility or practicability of a tollway project, administration expense, and any other expense, cost, or expenditure necessary or incidental to the construction of a tollway project, the financing of the construction, and the placing of the tollway project into operation. Any obligation, expense, or expenditure incurred or made by the State Highway Commission with state or federal funds, or any other state or United States agency or department with the authority or approval, prior or subsequent, of an authority for matters pertaining to a tollway project including, without limitation, construction, traffic surveys, boring, preparation of plans and specifications, engineering services, and any other expenses, costs, or expenditures of whatever nature shall be regarded as a part of the costs of a tollway project and shall be reimbursed to the State Highway Commission or other agency or department of the state or United States out of the proceeds of revenue bonds hereafter authorized, or out of any other available funds of an authority;
  4. “Public roads” or “public highways” means all public highways and roads which at any time are part of the state highway system, and all roads and highways which are part of the county road system of the State of Arkansas, and all streets and roadways maintained by any municipality, improvement district, or political subdivision in the State of Arkansas;
  5. “Bonds,” “tollway revenue bonds,” or “revenue bonds” means revenue bonds of an authority authorized under and issued pursuant to the authority conferred by this chapter;
  6. “Owner” means all individuals, partnerships, associations, corporations, or organizations having any title or interest in any property, rights, easements, or interest authorized to be acquired by and under the authority conferred by this chapter;
  7. “Revenues” embraces all tolls, rentals, gasoline tax revenues, gifts, grants, moneys, charges, and other funds and property of whatever nature coming into the possession of, or under the control of, the authority by virtue of this chapter except the proceeds derived from the sale of revenue bonds issued under the provisions of this chapter.

History. Acts 1968 (1st Ex. Sess.), No. 33, § 8; A.S.A. 1947, § 76-2608.

14-303-104. Tollway projects declared public properties — Ad valorem tax exemption.

All tollway projects, and all the properties thereof, are legislatively determined and declared to be public properties used exclusively for public purposes and the legislative intent is that tollway projects, and all properties thereof, shall be exempt from ad valorem taxes under and pursuant to the provisions of Arkansas Constitution, Article 16, Section 5.

History. Acts 1968 (1st Ex. Sess.), No. 33, § 18; A.S.A. 1947, § 76-2618.

Subchapter 2 — Municipal Tollway Authorities

Effective Dates. Acts 1968 (1st Ex. Sess.), No. 33, § 23: Feb. 20, 1968. Emergency clause provided: “It is hereby found and declared that the construction and operation of tollway projects, as authorized by this Act, are required for the public health, safety and welfare because of the increase of commerce and vehicular travel essential to individual, city and state progress and prosperity; that moneys now available are insufficient to permit the construction of tollway projects that can be constructed under the authority of this Act; and that realization of the public benefits sought to be accomplished by this Act depend upon the prompt undertaking of the acts authorized hereby. Therefore, it is declared, for these reasons, that an emergency exists and this Act being essential for the preservation of the public peace, health and safety shall take effect and be in force from and after its passage and approval.”

14-303-201. Creation and members.

  1. Any city of the first class may by ordinance create a municipal tollway authority, herein sometimes referred to as “the authority,” composed of five (5) citizens who are qualified electors of the city involved.
  2. The ordinance creating the authority shall appoint the members of the authority. Of those first appointed, one (1) shall serve for a term of one (1) year, one (1) shall serve for a term of two (2) years, one (1) shall serve for a term of three (3) years, one (1) shall serve for a term of four (4) years, and one (1) shall serve for a term of five (5) years. These terms shall be determined by lot at the first meeting of the authority. Upon the expiration of the respective terms, successor members of the authority shall be appointed by the remaining members, subject to approval of the governing body of the city involved, with each such appointee to serve for a term of five (5) years.
  3. In the event of a vacancy occurring on the authority, the remaining members of the authority, subject to the approval of the governing body of the city involved, shall appoint a member to serve the unexpired term.
  4. All members of the authority shall file the oath required by law in the State of Arkansas for public officials.
  5. Any member of the authority may be removed only for cause by the governing body of the city involved after a hearing of which the member proposed to be removed is given reasonable notice and an opportunity to be heard.
  6. Members of the authority shall receive no pay for their services but shall be entitled to actual expenses incurred in the performance of their duties as members of the authority.

History. Acts 1968 (1st Ex. Sess.), No. 33, §§ 2-4; A.S.A. 1947, §§ 76-2602 — 76-2604.

14-303-202. Organization.

  1. The authority shall elect from among its members a chairman and a secretary who shall serve for such terms as the authority shall determine.
  2. The secretary shall be the authority's disbursing agent and executive officer. The secretary shall furnish bond, with a corporate surety, in the penal sum of fifty thousand dollars ($50,000) on the condition that he will faithfully perform his powers, functions, and duties, and properly handle all funds received and disbursed by him and account therefor. The premium on the bond shall be a proper charge against funds of the authority.

History. Acts 1968 (1st Ex. Sess.), No. 33, §§ 6, 7; A.S.A. 1947, §§ 76-2606, 76-2607.

14-303-203. Meetings.

  1. Meetings of the authority shall be held on call by the chairman or by any three (3) or more members, upon reasonable advance notice to each member, at such places as may suit the authority's convenience.
  2. A quorum for the transaction of business at any meeting shall consist of not less than three (3) members, and the affirmative vote of three (3) members shall be requisite for the authorizing or approving of any action or the passage or adoption of any motion or resolution.

History. Acts 1968 (1st Ex. Sess.), No. 33, § 6; A.S.A. 1947, § 76-2606.

14-303-204. Powers and duties.

An authority is authorized and empowered to:

  1. Acquire, by purchase or exercise of eminent domain, sites, and rights-of-way for and to construct, reconstruct, extend, maintain, repair, and operate tollway projects as defined in this chapter at such locations within the city involved as it shall determine and, in accordance with such design and construction standards as it shall determine, subject to the approval of the State Highway Commission. In this connection, an authority is authorized to acquire, and the State Highway Commission is authorized to convey to an authority, with this to constitute the sole authority required notwithstanding the provisions of any other laws pertaining to the disposition of state property, for inclusion in a tollway project any portion of a public highway, including necessary lands and interest therein, constructed or under construction, upon such terms and for such consideration as the State Highway Commission and the authority may agree upon. Projects shall be constructed in accordance with applicable laws pertaining to competitive bidding, contracting, performance, and payment bonds, and other matters applicable to street construction, which laws, as they may be amended or changed from time to time are incorporated by reference;
  2. Apply for, receive, accept, and use any moneys and properties from agencies of the United States Government, from any state or other governmental agency, from any public or private corporation, agency, or organization of any nature, and from any individual or group of individuals;
  3. Invest and reinvest any of its moneys;
  4. Establish accounts in one (1) or more banks, and, from time to time, make deposits into, and withdrawals from, such accounts;
  5. Contract and be contracted with;
  6. Obtain the necessary funds for financing the objects specified in this section including, without limitation, the proceeds of the sale of revenue bonds authorized by this chapter;
  7. Purchase, lease, or rent, and receive bequests or donations of, and sell or barter any real, personal or mixed property, or convert into money any property bequeathed or donated to it not needed or which cannot be used in the form received;
  8. Fix and revise from time to time, and charge and collect, tolls for transit over each tollway project constructed by it;
  9. Establish rules for the use of each tollway project;
  10. Employ consulting engineers, attorneys, accountants, construction and financial experts, superintendents, and such other employees and agents as may be necessary in its judgment and fix their compensation;
  11. Take such other action, not inconsistent with law, as may be necessary or desirable to carry out the powers and authority conferred by this chapter and carry out the intent and purposes of this chapter.

History. Acts 1968 (1st Ex. Sess.), No. 33, § 5; A.S.A. 1947, § 76-2605; Acts 2019, No. 315, § 1045.

Amendments. The 2019 amendment deleted “and regulations” following “rules” in (9).

Subchapter 3 — Construction of Tollway Projects

Effective Dates. Acts 1968 (1st Ex. Sess.), No. 33, § 23: Feb. 20, 1968. Emergency clause provided: “It is hereby found and declared that the construction and operation of tollway projects, as authorized by this Act, are required for the public health, safety and welfare because of the increase of commerce and vehicular travel essential to individual, city and state progress and prosperity; that moneys now available are insufficient to permit the construction of tollway projects that can be constructed under the authority of this Act; and that realization of the public benefits sought to be accomplished by this Act depend upon the prompt undertaking of the acts authorized hereby. Therefore, it is declared, for these reasons, that an emergency exists and this Act being essential for the preservation of the public peace, health and safety shall take effect and be in force from and after its passage and approval.”

14-303-301. Prerequisites to undertaking project.

No tollway project shall be undertaken unless and until the tollway project involved shall have been thoroughly studied with respect to traffic, engineering, costs, and financing, and unless the authority involved makes, by resolution entered in the records of that authority, a determination based upon the study that:

  1. Sufficient public funds for construction of the proposed tollway are not available; and
  2. The construction of the proposed tollway can be financed wholly through the investment of private funds in revenue bonds.

History. Acts 1968 (1st Ex. Sess.), No. 33, § 9; A.S.A. 1947, § 76-2609.

14-303-302. Surveys, etc., on private lands.

  1. An authority, and its authorized agents and employees, may enter upon any lands, waters, and premises for the purposes of making such surveys, soundings, drillings, and examinations as they may deem necessary or desirable for the purposes of carrying out the authority conferred by this chapter. Such entries shall not be deemed trespasses, nor shall such entries for such purposes be deemed entries under any condemnation proceedings which may then be pending.
  2. An authority shall make reimbursement to the owners for any actual damage resulting to the lands, waters, and premises as a result of such activities, and reimbursements shall be part of the project costs.

History. Acts 1968 (1st Ex. Sess.), No. 33, § 10; A.S.A. 1947, § 76-2610.

14-303-303. Eminent domain.

  1. The power of eminent domain is expressly conferred upon authorities, created pursuant to the provisions of this chapter.
  2. In the event that any lands, or interest therein, determined by an authority to be necessary for any tollway project cannot be acquired by negotiation, the authority involved is empowered to institute condemnation proceedings for the acquisition of the lands, or the interest therein, desired by it.
  3. The condemnation proceedings under the power of eminent domain may be exercised in the manner now provided for taking private property for rights-of-way for railroads as provided by §§ 18-15-1202 — 18-15-1207, as amended, or in the manner provided by §§ 18-15-301 — 18-15-307, as amended, or pursuant to any other statutory provisions now in force or hereafter enacted for the exercise of the power of eminent domain by the State of Arkansas, or by any of its officers, agencies, or departments, or by political subdivisions of the State of Arkansas.
  4. Title to, and all interest in, lands acquired by an authority, by purchase or by condemnation, shall be taken in the name of the authority involved.

History. Acts 1968 (1st Ex. Sess.), No. 33, § 10; A.S.A. 1947, § 76-2610.

14-303-304. Grade separations — Lines and grades.

In connection with the construction of any tollway project, an authority is authorized to construct grade separations at intersections of any tollway project with public highways and to change and adjust the lines and grades of public highways so as to accommodate the lines and grades to the design of the grade separation. The cost of the grade separations and any damages incurred in connecting and adjusting the lines and grades of public highways shall be ascertained and paid by the authority involved as part of the costs of the tollway project involved.

History. Acts 1968 (1st Ex. Sess.), No. 33, § 10; A.S.A. 1947, § 76-2610.

14-303-305. Approval required to change highway location.

An authority shall not change the location of any portion of a public highway which is a part of the state highway system without the prior approval of the State Highway Commission, nor a public highway subject to the exclusive jurisdiction of a county court without the prior approval of the county court involved.

History. Acts 1968 (1st Ex. Sess.), No. 33, § 10; A.S.A. 1947, § 76-2610.

14-303-306. Highway vacation or relocation.

Any public highway affected by the construction of a tollway project may be vacated or relocated by an authority in the manner provided by law for the vacation or relocation of public roads. Any damages awarded on account thereof shall be paid by the authority involved as part of the project costs.

History. Acts 1968 (1st Ex. Sess.), No. 33, § 10; A.S.A. 1947, § 76-2610.

14-303-307. Relocation or removal of tollway facilities.

Whenever an authority shall determine that it is necessary for transmission facilities, including tracks, pipes, mains, conduits, cables, wires, towers, poles, and other equipment and appliances of whatever nature existing or used in connection with public and private utilities, pipeline companies, or pipeline operators which now are, or hereafter may be, located in, on, along, over, or under any tollway project, to be relocated in the tollway project, or to be removed from the tollway project, the owner or operator of the transmission facilities shall relocate or remove the transmission facilities in accordance with the order of the authority involved. However, the cost and expenses of the relocation or removal, including the cost of installing the facilities in new locations, and the cost of any lands, or any rights or interest in lands and any other rights acquired to accomplish the relocation or removal, shall be ascertained and paid by the authority involved as part of the project costs.

History. Acts 1968 (1st Ex. Sess.), No. 33, § 10; A.S.A. 1947, § 76-2610.

Subchapter 4 — Tollway Project Revenues

Cross References. Turnpike gasoline tax revenues, § 27-71-301 et seq.

Effective Dates. Acts 1968 (1st Ex. Sess.), No. 33, § 23: Feb. 20, 1968. Emergency clause provided: “It is hereby found and declared that the construction and operation of tollway projects, as authorized by this Act, are required for the public health, safety and welfare because of the increase of commerce and vehicular travel essential to individual, city and state progress and prosperity; that moneys now available are insufficient to permit the construction of tollway projects that can be constructed under the authority of this Act; and that realization of the public benefits sought to be accomplished by this Act depend upon the prompt undertaking of the acts authorized hereby. Therefore, it is declared, for these reasons, that an emergency exists and this Act being essential for the preservation of the public peace, health and safety shall take effect and be in force from and after its passage and approval.”

14-303-401. Powers of authority.

  1. An authority is authorized to fix, revise, charge, and collect tolls for the use of each tollway project and the different parts or sections thereof; to contract with any person, partnership, association, corporation, or organization desiring the use of any part thereof, including the right-of-way adjoining the paved portion, for placing thereon telephone, telegraph, electric light or power lines, and other facilities, or for any other purpose; and to fix the terms, conditions, rents, and rates of charges for such use. However, public utilities, rural cooperatives, political subdivisions, and pipeline companies may construct and maintain crossings of tollway projects with their facilities, without charge, if the facilities are constructed and maintained in compliance with reasonable requirements of public safety, and all costs of restoring the projects to as good a condition as they were before being disturbed, are paid by the owner of the facilities.
  2. The tolls charged by an authority shall not be subject to supervision or regulation by the city involved or by any other commission, board, bureau, agency, or political subdivision of the State of Arkansas.

History. Acts 1968 (1st Ex. Sess.), No. 33, § 11; A.S.A. 1947, § 76-2611.

14-303-402. Deposit of revenues.

The tolls and all other revenues derived from the tollway project involved, sometimes collectively referred to as “tollway project revenues,” shall be deposited, as and when received, into special accounts of the authority in those depository banks or trust companies as may be designated from time to time by the authority, with the accounts to be appropriately designated to indicate the particular tollway project involved.

History. Acts 1968 (1st Ex. Sess.), No. 33, § 11; A.S.A. 1947, § 76-2611.

14-303-403. Use of revenues.

  1. The tollway project revenues are to be used solely as authorized in this chapter.
  2. The tollway project revenues shall be used:
    1. To pay the reasonable expenses of maintenance, repair, and operation of the tollway project involved, including, without limitation, reimbursing of any state or United States agency or department for expenses paid or incurred for maintenance, repair, or operation of the tollway project involved;
    2. To pay the principal of, and interest on, all revenue bonds issued for financing the cost of the tollway project involved as the principal and interest become due, including the original issue or issues, bonds issued for reconstruction and extension, and refunding bonds, as in this chapter authorized;
    3. For the creation of such maintenance and debt service reserves as the authority involved may determine and specify in the trust indenture securing the revenue bonds involved; and
    4. For the redemption of bonds prior to maturity, if provision is made for redemption, all as shall be specified in detail in the trust indenture securing the revenue bonds involved.

History. Acts 1968 (1st Ex. Sess.), No. 33, § 11; A.S.A. 1947, § 76-2611.

14-303-404. Pledge of revenues to pay off bonds.

  1. The pledge of tollway project revenues to the payment of the principal of and interest on the revenue bonds shall be valid and binding from the time the pledge is made.
  2. The tollway project revenues so pledged shall immediately be subject to the lien of the pledge without any physical delivery thereof or further act.
  3. The lien of the pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against an authority, irrespective of whether the parties have notice thereof.
  4. Neither the resolution of an authority, nor any trust indenture by which a pledge is created, need be filed or recorded in any office or other place except in the records of the authority involved, and in the office of the circuit clerk and ex officio recorder of the county in which the city involved is located.

History. Acts 1968 (1st Ex. Sess.), No. 33, § 11; A.S.A. 1947, § 76-2611.

14-303-405. Turnpike gasoline tax revenues.

  1. Reference is made to Acts 1967, No. 43 [repealed], and particularly to § 12 of Acts 1967, No. 43 [repealed].
  2. It is intended and is provided that any tollway project hereunder shall participate in “turnpike gasoline tax revenues” to the same extent as though the tollway project hereunder were a turnpike project under § 12 of that act.

History. Acts 1968 (1st Ex. Sess.), No. 33, § 11; A.S.A. 1947, § 76-2611.

Subchapter 5 — Tollway Revenue Bonds

Effective Dates. Acts 1968 (1st Ex. Sess.), No. 33, § 23: Feb. 20, 1968. Emergency clause provided: “It is hereby found and declared that the construction and operation of tollway projects, as authorized by this Act, are required for the public health, safety and welfare because of the increase of commerce and vehicular travel essential to individual, city and state progress and prosperity; that moneys now available are insufficient to permit the construction of tollway projects that can be constructed under the authority of this Act; and that realization of the public benefits sought to be accomplished by this Act depend upon the prompt undertaking of the acts authorized hereby. Therefore, it is declared, for these reasons, that an emergency exists and this Act being essential for the preservation of the public peace, health and safety shall take effect and be in force from and after its passage and approval.”

14-303-501. Issuance generally.

  1. An authority is authorized and empowered to issue from time to time tollway revenue bonds in principal amounts sufficient to pay the costs of a tollway project.
  2. No more than one (1) tollway project may be involved as to any issue of tollway revenue bonds hereunder, but for a tollway project there may be more than one (1) issue of bonds, or there may be one (1) issue sold and delivered in series.
  3. There may also be a subsequent issue or subsequent issues of bonds for all or any of the following purposes:
    1. Completing the construction of a tollway project;
    2. Reconstruction work on a tollway project when the amount involved is such that it cannot be handled as an item of maintenance and repair out of all tollway project revenues; or
    3. The extension of a tollway project, subject in each instance to such conditions as to the available and estimated tollway project revenues and other conditions, to insure the prompt payment of the principal and interest of subsequent bond issues, as the authority involved shall determine and specify in its resolution authorizing, or in the trust indenture securing, the bonds. In all instances, priority between and among issues and successive issues shall be controlled by the resolution of the authority authorizing the issuance of bonds or by the trust indenture securing the bonds. Tollway revenue bonds shall have all the qualities of negotiable instruments under the laws of the State of Arkansas.

History. Acts 1968 (1st Ex. Sess.), No. 33, § 12; A.S.A. 1947, § 76-2612.

14-303-502. Authorizing resolution.

  1. Tollway revenue bonds shall be authorized by resolution of the authority involved.
  2. They may be coupon bonds payable to bearer; may be registrable as to principal only with interest coupons; or may be registrable as to both principal and interest without coupons; and may be made exchangeable for bonds of another denomination, which bonds of another denomination may in turn be either coupon bonds payable to bearer, bonds registrable as to principal only with coupons, or bonds registrable as to both principal and interest without coupons. The bonds may be in such form and denominations; the bonds may have such date or dates; the bonds may mature at such time or times; the bonds may bear interest payable at such times and at such rate or rates, provided that no bonds may bear interest at a rate exceeding seven percent (7%) per annum; the bonds may be payable at such place or places within or without the State of Arkansas; the bonds may be subject to such terms of redemption in advance of maturity at such prices, including such premiums; and the bonds may contain such terms and provisions, all as the authority involved shall determine.
  3. The authorizing resolution may contain any other terms, covenants, and conditions that are deemed desirable by the authority involved including, without limitation, those pertaining to the custody and application of bond proceeds, the maintenance of various funds and reserves, the nature and extent of the security, and the rights, duties, and obligations of the authority involved and of the holders and owners of the bonds.

History. Acts 1968 (1st Ex. Sess.), No. 33, § 12; A.S.A. 1947, § 76-2612.

14-303-503. Trust indenture.

  1. The resolution of an authority authorizing the issuance of bonds may provide for the execution, by the authority involved with a bank or trust company within or without the State of Arkansas, of a trust indenture.
  2. The trust indenture may control the priority between successive issues and may contain any other terms, covenants, and conditions that are deemed desirable including, without limitation, those pertaining to the custody and application of the proceeds of bonds, the collection and disposition of tollway project revenues, the maintenance of various funds and reserves, the nature and extent of the security, the rights, duties, and obligations of the authority involved, and the trustee for the holders and owners of the bonds, and the rights of the holders and owners of the bonds.

History. Acts 1968 (1st Ex. Sess.), No. 33, § 12; A.S.A. 1947, § 76-2612.

14-303-504. Sale — Limitations.

  1. Bonds issued under the authority of this chapter shall be sold at public sale or at private sale, upon the written approval of the State Securities Commissioner based on his finding that a private sale will be in the best interest of the authority involved.
  2. Any sale of the bonds will be for a price including, without limitation, sale at a discount, and in a manner the authority involved may determine, but in no event shall the authority involved pay more than seven percent (7%) interest on the amount received, computed with relation to the absolute maturity of the bonds in accordance with the Standard Tables of Bond Values.
  3. Supplemental and dual coupons shall not be permitted, and the bonds shall not be subject to conversion.

History. Acts 1968 (1st Ex. Sess.), No. 33, § 12; A.S.A. 1947, § 76-2612.

14-303-505. Execution.

  1. Bonds shall be executed by the manual or facsimile signature of the chairman and by the manual signature of the secretary of the authority involved.
  2. Coupons attached to the bonds shall be executed by the facsimile signature of the chairman. In case any of the officers whose signatures appear on the bonds or coupons shall cease to be officers before the delivery date of the bonds or coupons, their signatures shall nevertheless be valid and sufficient for all purposes.
  3. Each authority shall adopt and use a seal in the execution and issuance of bonds, and each bond shall be sealed with the seal of the authority involved.

History. Acts 1968 (1st Ex. Sess.), No. 33, § 12; A.S.A. 1947, § 76-2612.

14-303-506. Obligation and liability.

  1. It shall be plainly stated on the face of each bond that it has been issued under the provisions of this chapter, and the bonds issued hereunder shall be obligations only of the authority involved. In no event shall they constitute an indebtedness of the State of Arkansas or of the city involved within the meaning of any constitutional or statutory limitation or for which the faith and credit of the state or the city are pledged.
  2. No member of an authority shall be personally liable on the bonds or for any damages sustained by anyone in connection with any contracts entered into in carrying out the purposes and intent of this chapter unless that member shall have acted with a corrupt intent.

History. Acts 1968 (1st Ex. Sess.), No. 33, § 13; A.S.A. 1947, § 76-2613.

14-303-507. Security and payment of bonds.

  1. The principal of, and interest on, all revenue bonds issued under the authority of this chapter shall be secured solely by a pledge of, and shall be payable solely from, tollway project revenues.
  2. They shall not be secured by a statutory or forecloseable mortgage lien on the tollway project, or any of the facilities, of or in connection with, the tollway project.
  3. Each resolution authorizing the issuance of bonds, each trust indenture executed and delivered to secure the bonds, and this chapter shall constitute a contract by and between the authority involved and the holders and owners of the bonds issued under this chapter. This contract and all covenants, agreements, and obligations therein, including, without limitation, an obligation on the part of the authority involved to always operate the tollway project as a revenue producing undertaking so long as any bonds are outstanding, to properly maintain the tollway project, and to charge and collect tollway project revenues in required amounts, all as specified in detail in the resolution, the trust indenture, and in this chapter shall be promptly performed in strict accordance with the terms and provisions of the contract. The contract, all rights of the trustee and of the holders and owners of the bonds, and the obligations of the authority may be enforced by mandamus or any other appropriate proceeding at law or in equity.

History. Acts 1968 (1st Ex. Sess.), No. 33, § 14; A.S.A. 1947, § 76-2614.

14-303-508. Default — Receiver.

  1. In the event of a default in the payment of the principal of, or interest on, any revenue bonds issued under this chapter, any court having jurisdiction may appoint a receiver to take charge of the tollway project involved.
  2. The receiver shall have the power to:
    1. Operate and maintain the tollway project involved;
    2. Charge and collect tolls sufficient to provide for the costs of the receivership and operating expenses of the tollway project;
    3. Provide for the payment of the principal of and interest on the revenue bonds;
    4. Apply the revenues derived from the tollway project in conformity with this chapter and in conformity to the resolution and indenture authorizing and securing the bonds.
  3. When the default has been cured, the receivership shall cease and the tollway project returned to the authority involved.
  4. The relief afforded by this section shall be construed to be in addition and supplemental to the remedies that may be afforded the trustee for the bondholders and the holders and owners of the bonds in the resolution and indenture authorizing and securing the bonds.

History. Acts 1968 (1st Ex. Sess.), No. 33, § 14; A.S.A. 1947, § 76-2614.

14-303-509. Refunding bonds.

  1. Revenue bonds may be issued for the purpose of refunding any bonds issued under the authority of this chapter.
  2. Such refunding bonds may be combined into a single issue with revenue bonds issued for the purpose of completing, reconstructing, or extending the tollway project.
  3. Refunding bonds may either be sold or delivered in exchange for the bonds being refunded. If sold, the proceeds may be either applied to the payment of the bonds being refunded or deposited in trust and there maintained in cash or investments for the retirement thereof, as shall be specified by the authority in the trust indenture securing the refunding bonds.
  4. The resolution authorizing and the trust indenture securing the refunding bonds may provide that the refunding bonds shall have the same priority of lien on tollway project revenues pledged for their payment as was enjoyed by the bonds refunded thereby.
  5. Refunding bonds shall be sold and secured in accordance with the provisions of this chapter pertaining to the sale and security of revenue bonds.

History. Acts 1968 (1st Ex. Sess.), No. 33, § 15; A.S.A. 1947, § 76-2615.

14-303-510. Revenue bonds made securities.

  1. Revenue bonds issued under the authority of this chapter are made securities in which all insurance companies, trust companies, banks, investment companies, executors, administrators, trustees, and other fiduciaries may properly and legally invest funds, including capital in their control or belonging to them.
  2. The revenue bonds are made securities which may properly and legally be deposited with, and received by, any state or municipal officer or any agency or political subdivision of this state for any purpose for which the deposit of bonds or obligations of this state is now or may hereafter be authorized by law.
  3. Any municipality or county; any board, commission, or other authority established by any such municipality or county, or the boards of trustees, respectively, of any retirement fund or retirement system created by, or pursuant to, authority conferred by the General Assembly may, in its discretion, invest any of its funds not immediately needed for its purposes in bonds issued under the authority of this chapter. Bonds issued under the authority of this chapter shall be eligible to secure the deposit of public funds.

History. Acts 1968 (1st Ex. Sess.), No. 33, § 16; A.S.A. 1947, § 76-2616.

14-303-511. Bonds — Tax exemption.

The principal of, and interest on, bonds issued under the authority of this chapter shall be exempt from all state, county, and municipal taxes. This exemption shall include income, inheritance, and estate taxes.

History. Acts 1968 (1st Ex. Sess.), No. 33, § 17; A.S.A. 1947, § 76-2617.

A.C.R.C. Notes. Language excluding property taxes from the exemption provided by this section was deleted pursuant to Arkansas Constitution, Amendment 57, § 1 and § 26-3-302. The Arkansas Constitution, Amendment 57, § 1 provides that the General Assembly may classify intangible personal property for assessment at lower percentages of value than other property and may exempt one or more classes of intangible personal property from taxation, or may provide for the taxation of intangible personal property on a basis other than ad valorem. Section 26-3-302 exempts all intangible personal property in this state from all ad valorem tax levies of counties, cities, and school districts in the state as of January 1, 1976.

14-303-512. Authority to operate project after completion of payments.

  1. Except as provided in this section, when the principal of, and interest on, all bonds issued under the authority of this chapter in connection with a particular tollway project shall have been paid, or the required provision made for their payment, and upon resolution of the authority involved filed with the city clerk of the city involved, that tollway project shall be and become part of the city's street system and shall thereafter be operated by the city free of tolls and charges.
  2. At the time of the final payment of principal and interest, or the making of adequate provision therefor, of outstanding revenue bonds with reference to a particular tollway project, the authority involved may determine and declare, by resolution entered in its records, that the tollway project involved is not to become part of the city street system, but is to continue to be operated. The tollway project revenues derived therefrom over and above expenses of maintenance, repair, and operation are to be pledged to and used for the payment of revenue bonds issued for financing the cost of another tollway project. However, no such pledge or use of tollway revenues for the payment of the principal and interest of bonds for any other tollway project shall be undertaken until the principal and interest of all outstanding bonds of the tollway project involved shall have been fully paid, or the required provision made for their payment.

History. Acts 1968 (1st Ex. Sess.), No. 33, § 19; A.S.A. 1947, § 76-2619.

14-303-513. Studies of proposed projects — Expenses.

  1. An authority and the State Highway Commission are authorized to enter into arrangements or to enter into agreements, as may be determined by them to be necessary or desirable for:
    1. The investigation and study of any proposed tollway project;
    2. The use of State Highway Commission engineering and other forces, including consulting engineers and traffic engineers;
    3. The purpose of effecting such study; or
    4. The obtaining and use of outside engineering and traffic and other expert studies; all as may be necessary or desirable in connection with a proposed tollway project, with all expenses in connection therewith, which are paid by the State Highway Commission, to be deemed part of the project costs.
  2. Upon the sale of bonds all such expenses incurred by the State Highway Commission are to be reimbursed to that commission out of the proceeds of the bonds.

History. Acts 1968 (1st Ex. Sess.), No. 33, § 20; A.S.A. 1947, § 76-2620.

Chapter 304 Parking Authorities

Research References

ALR.

Loss of automobile left at parking lot or garage. 13 A.L.R.4th 362.

Damage to automobile left in parking lot or garage. 13 A.L.R.4th 442.

Parking facility proprietor's liability for criminal attack on patron. 49 A.L.R.4th 1257.

Subchapter 1 — General Provisions

Cross References. Local government reserve funds, § 14-73-101 et seq.

Effective Dates. Acts 1949, No. 468, § 12: Mar. 29, 1949.

14-304-101. Declaration of policy.

The General Assembly determines and declares that:

  1. Excessive curb parking of motor vehicles on roads and streets in the cities and towns of the State of Arkansas and the lack of adequate off-street parking facilities create congestion, obstruct the free circulation of traffic, diminish property values, and endanger the health, safety, and general welfare of the public;
  2. The provision of conveniently located off-street parking facilities is therefore necessary to alleviate those conditions; and
  3. The establishment of public off-street automobile parking facilities is deemed to be a proper public or municipal purpose.

History. Acts 1949, No. 468, § 1; A.S.A. 1947, § 19-4901.

14-304-102. Definitions.

As used in this chapter, unless the context otherwise requires:

  1. “Automobile” means and includes any vehicle which is self-propelled, including, but not limited to, passenger cars, trucks, vans, and buses; and
  2. “Public off-street automobile parking facilities” means accommodations provided, with or without charge, by public authority for the parking of automobiles off the street or highway and open to public use and may:
    1. Consist of lots, garages, or other structures and accessories; and
    2. Be surface facilities or facilities above or below the ground.

History. Acts 1949, No. 468, § 2; A.S.A. 1947, § 19-4902; Acts 1993, No. 832, § 1.

14-304-103. Creation.

The city council or other governing body of cities and towns is authorized to create a parking authority within its jurisdiction for the purpose of establishing public off-street automobile parking facilities.

History. Acts 1949, No. 468, § 3; A.S.A. 1947, § 19-4903.

14-304-104. Members.

  1. The parking authority shall consist of five (5) members.
  2. The members shall be appointed by the mayor and approved by the council or other legislative body of the city creating the authority, and they shall be qualified electors residing in the city or incorporated town. They cannot hold any elective office of the city, county, or state.
  3. The members of the authority shall be appointed for periods of one (1), two (2), three (3), four (4), and five (5) years, respectively, so that the term of one (1) member shall expire each year after the creation of the authority.
  4. Upon the termination of office of each member, his successor shall be appointed for a term of five (5) years and shall serve until his successor shall have been appointed and qualified.
  5. The members of the authority shall receive no compensation for their services.

History. Acts 1949, No. 468, § 3; A.S.A. 1947, § 19-4903.

14-304-105. Personnel.

  1. The authority shall have authority to employ such persons as it deems necessary in furtherance of its duties hereunder.
  2. The employees authorized by this chapter shall be chosen by the civil service commission of the respective city or town in the manner now required by law.

History. Acts 1949, No. 468, §§ 3, 11; A.S.A. 1947, §§ 19-4903, 19-4911.

14-304-106. Authority to establish and supervise facilities — Prohibitions.

  1. The parking authority of the cities and towns, acting alone or in cooperation with other parking authorities or with any federal or state agency, is authorized to:
    1. Plan, design, locate, finance, acquire, and own property for, and construct, alter, enlarge, use, maintain, operate, and lease off-street automobile parking facilities wherever and to the extent that the facilities are deemed necessary within its respective jurisdiction; and
    2. Supervise and control all other matters pertaining to the parking of vehicles.
  2. However, the sale, storage, or dispensing of any product used in or for the servicing of motor vehicles shall not be permitted on or in connection with parking facilities.

History. Acts 1949, No. 468, § 4; A.S.A. 1947, § 19-4904.

14-304-107. Authority to contract.

  1. Any municipal parking authority created pursuant to the provisions of this chapter, is authorized to enter into contracts with any other public agency or with any private person or firm for the operation, maintenance, and management of any one (1) or more off-street automobile parking facilities established by the authority.
  2. Any contract shall be for such term, not to exceed twenty (20) years, and may contain such provisions as shall be approved by the parking authority.
  3. The contract shall be an obligation only of the authority, payable solely from revenues derived from parking facilities under the jurisdiction of the authority, and shall not constitute an obligation or indebtedness of the municipality within the meaning of any constitutional or statutory limitations.
  4. All such contracts entered into prior to June 28, 1985, are ratified and confirmed.

History. Acts 1985, No. 878, § 1; A.S.A. 1947, § 19-4914.

14-304-108. Planning, designing, and locating facilities.

  1. The parking authority, after a thorough investigation of the parking problem within its jurisdiction, shall formulate for public presentation a master plan of automobile parking facilities as a guide for the further provision for parking facilities, properly integrated with present and proposed traffic facilities, subject to alteration as necessary.
  2. A program of construction and method of financing shall likewise be formulated.
  3. The parking authority is authorized to so design and locate any off-street automobile parking facilities as to best serve the public purpose for which such facilities are intended.
  4. Such facilities may consist of:
    1. Lots, improved or unimproved;
    2. Single or multi-level garages; or
    3. Other structures and accessories.

History. Acts 1949, No. 468, §§ 5, 6; A.S.A. 1947, §§ 19-4905, 19-4906.

14-304-109. Acquisition of property and property rights.

For the purpose of this chapter, the parking authority is authorized to acquire private or public, real or personal property and property rights, above, at, or below the surface of the earth necessary for off-street automobile parking facilities by purchase, eminent domain, gift, lease, or otherwise.

History. Acts 1949, No. 468, § 8; A.S.A. 1947, § 19-4908.

14-304-110. Construction of facilities.

  1. The parking authority is authorized to construct or cause to be constructed public off-street automobile parking facilities above, at, or below the surface of the earth including buildings, structures, equipment, entrances, exits, fencing, and all other accessories necessary or desirable for the safety or convenience of motorists using the facilities.
  2. The contracts for any of the above are to be awarded to the lowest responsible bidder in the same manner as contracts are authorized by law to be awarded in connection with highways or streets within the jurisdiction of the respective parking authority.

History. Acts 1949, No. 468, § 9; A.S.A. 1947, § 19-4909.

14-304-111. Records and reporting.

Every parking authority shall maintain proper accounting and financial records of all transactions and provide and file annual financial statements with the city clerk.

History. Acts 1949, No. 468, § 10; A.S.A. 1947, § 19-4910.

Subchapter 2 — Revenue Bonds

14-304-201 — 14-304-210. [Repealed.]

Publisher's Notes. This subchapter was repealed by Acts 1997, No. 214, § 1. The subchapter was derived from the following sources:

14-304-201. Acts 1949, No. 468, § 7; 1970 (Ex. Sess.), No. 33, § 1; A.S.A. 1947, § 19-4907.

14-304-202. Acts 1949, No. 468, § 7; 1970 (Ex. Sess.), No. 33, § 1; 1975, No. 225, § 5; 1981, No. 425, § 5; A.S.A. 1947, § 19-4907.

14-304-203. Acts 1949, No. 468, § 7; 1970 (Ex. Sess.), No. 33, § 1; A.S.A. 1947, § 19-4907.

14-304-204. Acts 1949, No. 468, § 7; 1970 (Ex. Sess.), No. 33, § 1; A.S.A. 1947, § 19-4907.

14-304-205. Acts 1949, No. 468, § 7; 1970 (Ex. Sess.), No. 33, § 1; A.S.A. 1947, § 19-4907.

14-304-206. Acts 1949, No. 468, § 7; 1970 (Ex. Sess.), No. 33, § 1; A.S.A. 1947, § 19-4907.

14-304-207. Acts 1949, No. 468, § 7; 1970 (Ex. Sess.), No. 33, § 1; A.S.A. 1947, § 19-4907.

14-304-208. Acts 1949, No. 468, § 7; 1970 (Ex. Sess.), No. 33, § 1; A.S.A. 1947, § 19-4907.

14-304-209. Acts 1949, No. 468, § 7; 1970 (Ex. Sess.), No. 33, § 1; A.S.A. 1947, § 19-4907.

14-304-210. Acts 1949, No. 468, § 7; 1970 (Ex. Sess.), No. 33, § 1; A.S.A. 1947, § 19-4907.

Chapter 305 Arkansas Unpaved Roads Program Act

Effective Dates. Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

14-305-101. Title.

This chapter shall be known as the “Arkansas Unpaved Roads Program Act”.

History. Acts 2015, No. 898, § 1.

14-305-102. Legislative findings and intent.

  1. The General Assembly finds that:
    1. Unpaved roads in the state are the transportation backbone for rural communities and for many economic sectors in Arkansas, including timber, agriculture, ranching, and energy;
    2. Unpaved roads provide access to the public to hunting, fishing, boating, hiking, and other recreational and tourist activities;
    3. Public access is vital to the economy, tourism, and public enjoyment of natural resources in the state; and
    4. The erosion of unpaved roads can have negative effects on the state's economy, tourism, and natural resources.
  2. The General Assembly intends to support the creation of the Arkansas Unpaved Roads Program, which will:
    1. Combine the resources of public and private organizations;
    2. Provide incentives for the maintenance of select low-volume, unpaved public roads maintained by counties in Arkansas for the purpose of maintaining and improving the health of the state's economy and natural resources;
    3. Use a public-private partnership arrangement to assist counties in funding unpaved road projects; and
    4. Provide funding for demonstration, training, promotion, and use of best management practices in construction and maintenance of rural unpaved roads adjacent to or near lakes, rivers, or streams.

History. Acts 2015, No. 898, § 1.

14-305-103. Definitions.

As used in this chapter:

  1. “Best management practices” means practices for the construction and maintenance of unpaved roads that are broadly accepted by road engineers and maintenance professionals as the most effective approaches to managing unpaved roads that minimize sediment impacts to adjacent water bodies and aquatic habitats; and
  2. “Unpaved road project” means a project that has as its purpose the reduction of erosion and sedimentation by:
    1. Providing better drainage to an eroding unpaved public road maintained by a county;
    2. Stabilizing erodible ditches and drainage outlets for an unpaved public road maintained by a county;
    3. Creating a more durable driving surface for an unpaved public road maintained by a county; or
    4. A combination of the activities described in subdivisions (2)(A)-(C) of this section.

History. Acts 2015, No. 898, § 1.

14-305-104. Arkansas Unpaved Roads Program.

The Arkansas Unpaved Roads Program is established to help provide funding for unpaved road projects throughout the state using best management practices.

History. Acts 2015, No. 898, § 1.

14-305-105. Application process — Criteria for selection.

    1. After completing training in best management practices, a county may submit an application to receive funding for an unpaved road project to the Arkansas Natural Resources Commission.
    2. The Arkansas Natural Resources Commission shall:
      1. Determine which of the proposed unpaved road projects to fund based on the criteria and requirements stated in this chapter; and
      2. Create an advisory committee to assist the Arkansas Natural Resources Commission in evaluating applications and determining which proposed unpaved road projects to fund.
  1. A county applying for funding for an unpaved road project shall submit an application to the Arkansas Natural Resources Commission that includes the following:
    1. A brief description of the maintenance needs to be addressed by the unpaved road project;
    2. A cost estimate for the unpaved road project;
    3. A proposed work schedule for the unpaved road project;
    4. The basis for successful completion of the unpaved road project with citation to the relevant feature contained in subsection (c) of this section;
    5. A plan for using best management practices;
    6. A description of the unpaved road project site, including without limitation a site map; and
    7. Any other information requested by the Arkansas Natural Resources Commission.
  2. The proposed unpaved road project shall be located in a watershed area with at least one (1) of the following features, listed in order of priority:
    1. An aquatic species that the United States Government has listed as a threatened, endangered, or candidate species;
    2. A water body that has been determined to be impaired as a result of turbidity or sediment;
    3. A drinking water source;
    4. An interstate water body;
    5. A species that the Arkansas State Game and Fish Commission has declared is of greatest conservation need;
    6. An agricultural or pasture land use; or
    7. A forestry land use.
  3. The proposed unpaved road project shall not include the paving or chipping and sealing of a dirt or gravel road.
  4. The Arkansas Natural Resources Commission shall evaluate and prioritize each proposed unpaved road project based on the characteristics of the road contributing to erosion.

History. Acts 2015, No. 898, § 1; 2019, No. 910, §§ 44, 45.

Amendments. The 2019 amendment substituted “Arkansas Natural Resources Commission” for “Rural Services Division of the Arkansas Economic Development Commission” in (a)(1); and substituted “commission” for “division” throughout (a)(2), (b), and (e).

14-305-106. Funding of unpaved road projects.

    1. Donations from private entities and funding or in-kind goods and services committed by the county proposing the unpaved road project shall equal at least fifty percent (50%) of the estimated total costs of the proposed unpaved road project.
    2. In-kind goods and services committed by the county may include without limitation labor, equipment use, materials, and services.
  1. The Arkansas Natural Resources Commission may award a grant to a county using funds available in the Arkansas Unpaved Roads Program Fund for up to fifty percent (50%) of the estimated total costs of a proposed unpaved road project.
  2. At least four percent (4%) of the funding obtained from the commission under this chapter shall be used to evaluate and assess the unpaved road project.

History. Acts 2015, No. 898, § 1; 2019, No. 910, § 46.

Amendments. The 2019 amendment substituted “Arkansas Natural Resources Commission” for “Rural Services Division of the Arkansas Economic Development Commission” in (b); and substituted “commission” for “division” in (c).

14-305-107. Completion of unpaved road projects.

  1. A grant awarded to a county under this chapter shall be applied only to work completed on an unpaved road project after the unpaved road project has been approved for a grant.
    1. If an unpaved road project that has been approved for a grant is not completed within one (1) year of the award of the grant, the county shall refund the full grant amount to the Arkansas Natural Resources Commission.
    2. However, for good cause shown, the Director of the Arkansas Natural Resources Commission may allow one (1) extension for a county that is unable to complete its unpaved road project within the period stated in subdivision (b)(1) of this section.
  2. A county shall:
    1. Comply with the standards set by the commission for the completion of an unpaved road project to ensure that the unpaved road project is conducted in a manner that is not harmful to the state or the environment; and
    2. Report on the progress of the unpaved road project in the manner and at the times determined by the commission.

History. Acts 2015, No. 898, § 1; 2019, No. 910, § 47.

Amendments. The 2019 amendment substituted “Arkansas Natural Resources Commission” for “Rural Services Division of the Arkansas Economic Development Commission” in (b)(1); substituted “Director of the Arkansas Natural Resources Commission” for “Director of the Arkansas Economic Development Commission” in (b)(2); and substituted “commission” for “division” in (c)(1) and (c)(2).

14-305-108. Records.

A county that receives a grant under this chapter shall:

  1. Maintain a separate accounting of the grant funds received under this chapter;
  2. Maintain all records related to the unpaved road project that is the subject of the grant awarded under this chapter for three (3) years from the date the unpaved road project is completed; and
  3. Allow inspection by the Arkansas Natural Resources Commission of the records described in subdivisions (1) and (2) of this section.

History. Acts 2015, No. 898, § 1; 2019, No. 910, § 48.

Amendments. The 2019 amendment substituted “Arkansas Natural Resources Commission” for “Rural Services Division of the Arkansas Economic Development Commission” in (3).

14-305-109. Support of Arkansas Unpaved Roads Program.

  1. The following agencies and entities have pledged their support for the Arkansas Unpaved Roads Program and are encouraged to provide funding for unpaved road projects under this chapter:
    1. The Arkansas Association of Conservation Districts;
    2. The Arkansas Forestry Commission;
    3. The Arkansas State Game and Fish Commission;
    4. The Arkansas Natural Resources Commission;
    5. County judges;
    6. The Natural Resources Conservation Service;
    7. The Center for Training Transportation Professionals at the University of Arkansas at Fayetteville; and
    8. The United States Fish and Wildlife Service.
  2. Additional agencies and private entities are encouraged to join the entities listed in subsection (a) of this section in supporting and funding unpaved road projects in the state.
  3. Any funds received from agencies and entities in support of the Arkansas Unpaved Roads Program shall be deposited into the Arkansas Unpaved Roads Program Fund.

History. Acts 2015, No. 898, § 1.

14-305-110. Rules.

The Arkansas Natural Resources Commission shall promulgate rules to implement and administer this chapter, including without limitation rules regarding:

  1. The application process;
  2. The creation and administration of an advisory committee to assist the commission in evaluating applications and making funding determinations;
  3. The disbursement of grant funds;
  4. The reporting required by counties that receive grant funds under this chapter;
  5. The evaluation and assessment of unpaved road projects approved for grants;
  6. The expenses that are eligible for grant funds; and
  7. The standards a county is required to meet in completing an unpaved road project.

History. Acts 2015, No. 898, § 1; 2019, No. 910, § 49.

Amendments. The 2019 amendment substituted “Arkansas Natural Resources Commission” for “Rural Services Division of the Arkansas Economic Development Commission” in the introductory language; and substituted “commission” for “division” in (2).

Chapters 306-314 [RESERVED.]

[Reserved]

Subtitle 19. Roadways, Bridges, and Parking Improvement Districts

Chapter 315 General Provisions

[Reserved]

Chapter 316 Road Improvement Districts Generally

Subchapter 1 — General Provisions

Preambles. Acts 1925, No. 203 contained a preamble which read:

“Whereas, the wisdom of avoiding railroad grade crossings is becoming more and more apparent; and

“Whereas, the United States Government refuses to give aid to sections of roads that have dangerous railroad crossings that could, in the opinion of the Government engineers be avoided by slight changes in route, which sometimes cause slight additions to the length of the road, which extra cost if any, would in most cases be far more than offset by federal aid not otherwise obtainable; and

“Whereas, railroad companies realize fully the importance of avoiding grade crossings and are very frequently willing to make cash donations to the district to enable the district to make such changes or additions as will enable the traveling public to avoid dangerous grade crossings; and

“Whereas, in most road and highway districts the commissioners are given expressed authority to change and alter the route of the road, but in some districts no such authority is given the Board of Commissioners to alter the route; and

“Whereas, such authority in a limited degree should be extended to all road districts which have not completed their work….”

Effective Dates. Acts 1921, No. 223, § 2: approved Mar. 3, 1921. Emergency clause provided: “This act being necessary for the immediate preservation of the public peace, health and safety, an emergency is hereby declared, and it shall take effect and be in force immediately after its passage.”

Acts 1923 (1st Ex. Sess.), No. 53, § 2: Oct. 30, 1923. Emergency declared.

Acts 1925, No. 203, § 3: Mar. 25, 1925. Emergency declared.

Acts 1927, No. 137, § 3: approved Mar. 10, 1927. Emergency clause provided: “This act being necessary for the immediate preservation of the public peace, health and safety an emergency is hereby declared to exist in this, that the purchasers of bonds herein referred to may, in some instance, question the acts and proceedings of road commissioners of various districts throughout the State in issuing and causing to be issued bonds as aforesaid, thereby depressing the sale price of said bonds to the great injury of the people of the State of Arkansas, and this act shall take effect and be in force from and after its passage.”

Acts 1939, No. 74, § 3: Feb. 11, 1939. Emergency declared.

Acts 1945, No. 23, § 4: approved Mar. 20, 1945. Emergency clause provided: “Whereas, the title to lands within the limits of previous road improvement districts in the state is clouded by many unsatisfied liens of assessed benefits and mortgages although all debts of such improvement districts have been paid, making it impossible for owners to give a good title to such lands; and, whereas, it is unjust that such conditions continue, and this act being necessary for the immediate preservation of the public peace, health and safety, an emergency is hereby declared to exist and this act shall be in full force and effect from and after its passage.”

Acts 1945, No. 199, § 5: approved Mar. 7, 1945. Emergency clause provided: “It has been found and it is hereby determined by the General Assembly that some road improvement districts of the State are paying interest rates on their outstanding bonds which have not been refunded by state bonds or on judgments on such bonds higher than those at which they might be refunded; that unprecedentedly low interest rates now prevail which have created a market advantageous to the issuance of refunding bonds; that the duration of said low interest rates is uncertain for the reason that Congress may shortly enact a statute taxing the interest upon future issues of such bonds which would render the refunding of the outstanding bonds impracticable, if not impossible; that such road improvement districts should take advantage of the present favorable market and their failure to do so would result in great financial detriment to taxpayers; that for said reasons it is hereby declared necessary for the preservation of the public peace, health and safety, that this act shall become effective without delay. An emergency therefore exists and this act shall take effect and be in force from and after its passage.”

Acts 1949, No. 317, § 4: approved Mar. 19, 1949. Emergency clause provided: “Whereas, the title to many tracts of land within the limits of previous road improvement districts in this state are clouded making it impossible for the owners to give good title thereto; and, whereas, it is unjust this condition continue, and this act being necessary for the immediate preservation of the peace, health and safety, an emergency is hereby declared to exist and this act shall be in full force and effect from and after its passage.”

Case Notes

Construction.

Section 14-86-1101 et seq., relating to the collection of delinquent highway improvement taxes, does not outline the method of procedure to foreclose liens for taxes, and does not impliedly repeal this subchapter. Beasley v. Hornor, 173 Ark. 295, 292 S.W. 130 (1927).

Applicability.

This subchapter is valid, and applies to sales made after its passage, even in districts created before. Northern Rd. Imp. Dist. v. Meyerman, 169 Ark. 383, 275 S.W. 762 (1925).

14-316-101. Road improvement tax generally.

  1. All taxes levied by road improvement districts in this state, whether organized under general or special laws, shall be payable between the first Monday in January and April 10 of each year.
  2. This section shall not apply to Greene County.

History. Acts 1921, No. 223, § 1; Pope's Dig., § 13825; A.S.A. 1947, § 76-1218.

14-316-102. Bonds of road improvement districts validated.

  1. All acts and proceedings of commissioners of road improvement districts heretofore organized in the State of Arkansas under the general road law, commonly known as the Alexander Road Law, or under special acts, where bonds have been issued for the purpose of paying valid indebtedness of the districts and where the bonds have been delivered prior to January 1, 1927, are declared to be valid acts and proceedings as if all proceedings and formalities required by law had been fully complied with.
  2. All bonds so issued by the districts in payment of valid indebtedness thereof are valid and binding obligations upon the districts under all laws of this state as if all proceedings and formalities pertaining to the issuance of the bonds as required by law had been fully complied with.
  3. However, this section shall not affect or make valid any fraudulent acts on the part of commissioners of those districts and shall not validate any fraudulent issuance of bonds by the districts.

History. Acts 1927, No. 137, § 1; Pope's Dig., § 6539; A.S.A. 1947, § 76-1223.

14-316-103. Funding and refunding outstanding bonded indebtedness.

  1. Any road improvement districts of this state, whether organized and created under general law or by special act of the General Assembly, shall have power to fund and refund its outstanding valid bonded indebtedness or judgments on its bonded indebtedness and accrued matured interest thereon on such terms as the commissioners or directors of the districts shall deem for the best interest of the districts and, to that end, may issue the negotiable bonds of the districts, with interest coupons attached.
    1. The commissioners or directors of the districts may exchange new bonds for the outstanding bonds, including accrued matured interest coupons, or may issue and sell the new bonds and use the proceeds thereof to pay the outstanding bonds or judgments and accrued interest thereon.
    2. The refunding bonds shall not be issued in a greater amount than is necessary to pay the outstanding bonds or judgments and accrued interest thereon to the date of the refunding bonds, plus printing, trustee, legal, and other necessary expenses incurred in connection with the issuance of the refunding bonds.
    3. No refunding bonds shall bear a greater rate of interest than three percent (3%) per annum, nor shall they be disposed of at less than par. However, bonds bearing a lower rate of interest than three percent (3%) per annum may be sold at a discount on a basis whereby the district shall not be required to pay approximately more than if the bonds had been sold at par bearing three percent (3%) interest.
    4. All such refunding bonds:
      1. Shall be negotiable instruments and may have coupons evidencing interest, payable at annual or semiannual periods;
      2. Shall have all the rights of security, including liens on assessment of benefits and levy of taxes on the lands, together with all remedies for their collection that are provided for the bonds to be refunded or the bonds on which the judgments to be refunded are based; and
      3. May be further secured by a pledge and mortgage of the assessment benefits and taxes in the district, to be executed by the directors or commissioners.

History. Acts 1945, No. 199, §§ 1, 2; A.S.A. 1947, §§ 76-1221, 76-1222.

14-316-104. Allotment of funds where improvement districts embrace lands in more than one county.

In those situations where the boundaries of a road improvement district embrace lands in more than one (1) county and any of the counties have available funds, either directly from the State Treasury or by action of the quorum court, to apply on the bonded indebtedness of road improvement districts in that county, the basis of ascertaining the proportion of the bonded indebtedness owing by the road improvement district that should be considered in allotting funds to road improvement districts in that county shall be the relation that the assessment of benefits in that county bears to the assessment of benefits in the road improvement district. The percentage that the assessment of such benefits in any of such counties is of the entire assessment of benefits in such district shall be the percentage of the bonds of such district entitled to allotments in that county.

History. Acts 1923 (1st Ex. Sess.), No. 53, § 1; Pope's Dig., § 13895; A.S.A. 1947, § 76-1217.

14-316-105. Cancellation of records of unsatisfied liens when there are no unsatisfied obligations.

  1. Whenever it shall appear to the chancery court of any county, upon the petition of any interested person, that there is of record any unsatisfied lien by virtue of any assessment of benefits or mortgage created under the authority of any general or special road improvement district laws of this state, and that all assessments, bonds, or other obligations of the road improvement district, to secure the payment thereof, have been paid; or that such improvement has been completed or abandoned without the issuance of bonds and there are no unpaid obligations of that district, but there remains of record the unsatisfied lien of assessment of benefits against the lands within that district, the chancery court shall, if it finds the allegations of the petition to be true, enter an order cancelling the unsatisfied liens of assessment and setting aside any judgment theretofore rendered in the court for foreclosure of any delinquent assessments, penalties, and costs then remaining unsatisfied. The court shall also have the power to cancel, set aside, and hold for naught any title held by any district coming under the terms and provisions of this section.
  2. Upon the rendition of the order or decree by the chancery court, the circuit clerk or chancery clerk, as the case may be, is empowered and directed to enter upon the proper record in his office a satisfaction of the mortgage, delinquent assessment of benefits, or other court order or instrument creating a lien against the lands within the district, and a release of the lien thereunder.

History. Acts 1945, No. 237, §§ 1, 2; A.S.A. 1947, §§ 76-1219, 76-1220.

14-316-106. Cancellation of assessment liens when roads are taken by state or no bonds were issued.

All liens are cancelled when:

  1. There is of record an unsatisfied lien by virtue of an assessment, pledge, or mortgage, delinquent record, or decree of foreclosure made or created under a general or special law relating to a road improvement district of this state or bridge improvement district of which all bonds and other obligations of the district have been paid, and the district has been completely absorbed or taken over by the state or by the Arkansas Department of Transportation; or
  2. The improvements have been completed or abandoned without the issuance of bonds, there are no outstanding obligations of the district, and there remains of record an assessment of benefits lien against the lands of the district.

History. Acts 1949, No. 317, § 1; A.S.A. 1947, § 76-1224; Acts 2017, No. 707, § 28.

Amendments. The 2017 amendment, in (1), substituted “an unsatisfied lien by virtue of an assessment” for “any unsatisfied lien by virtue of any assessment”, substituted “a general” for “authority of any general”, and substituted “Arkansas Department of Transportation” for “Arkansas State Highway and Transportation Department”.

14-316-107. Cancellation of district-acquired delinquent tax title.

In the event there has been a sale to the district of any lands for delinquent taxes and some manner of title is still held by the district, the title so acquired is divested out of the district, cancelled, and held for naught. The title shall in no wise constitute a lien on the property or a cloud on the title to the property.

History. Acts 1949, No. 317, § 2; A.S.A. 1947, § 76-1225.

14-316-108. Road and school district boundaries to be coextensive.

When any road district in the State of Arkansas dissects any school district in this state wherein the lands and property of a majority of the property owners in the school district lie in an adjoining road district but in the same school district, the boundary lines of the road district so dissecting shall follow and be the same as the boundary lines of the school district.

History. Acts 1939, No. 74, § 1; A.S.A. 1947, § 76-1216.

14-316-109. Route change to avoid dangerous railroad crossing.

  1. In road and highway districts where the act creating the district, and amendments thereto, do not permit a change in plans of the district or where by act of the General Assembly the roads to be built are specifically defined or otherwise limited, and where the road is not completed and a minor change in route or an addition to the road would enable the traveling public to avoid a dangerous railroad grade crossing, the board of commissioners is authorized to make the minor changes in route or to make an addition to the roads to be built that will enable the traveling public to avoid a dangerous grade crossing. If the change in route or addition to the road is not planned over existing public roads, then the change or addition shall only be made with the approval of the county court. The commissioners shall then lay out a public road over the proposed route if the court approves the change or addition.
  2. If it is necessary to increase the assessed benefits or to increase the annual levy of any district, both in acreage and assessed valuation of property, in order to make a change in route or addition to a road in order to enable the traveling public to avoid a dangerous grade crossing, then the change shall only be made with the consent of a majority of the landowners of the district.

History. Acts 1925, No. 203, §§ 1, 2; Pope's Dig., §§ 6537, 6538; A.S.A. 1947, §§ 76-1214, 76-1215.

Case Notes

Minor Changes.

Changes in the route of a road to be improved under former statute had to be consistent with the original improvement plans. Wilson v. Rambo, 180 Ark. 226, 21 S.W.2d 158 (1929) (decision under prior law).

Where a proposed road improvement traversed the entire county, changes in the improvement which would eliminate two right angles in a city and shorten the distance 400 or 500 feet were not material and were within the power of the road improvement commissioners. Wilson v. Rambo, 180 Ark. 226, 21 S.W.2d 158 (1929) (decision under prior law).

Subchapter 2 — Collection and Disposition of Taxes Generally

Publisher's Notes. As to applicability of certain laws to municipal improvement districts existing prior to July 1, 1952, see §§ 14-90-102 and 14-90-103.

Acts 1927, No. 112, § 18, provided that the act applied only to road improvement districts affected by Acts 1927, No. 11.

Cross References. Payment of improvement district taxes with bonds of district, § 14-86-803.

Effective Dates. Acts 1927, No. 112, § 21: approved Mar. 4, 1927. Emergency clause provided: “It is ascertained and hereby declared that the handling of road revenues as provided in this act is essential to the maintenance and hasty repair of the public roads of the state; that the defective condition of the public roads referred to in this act is a standing menace to the traveling public, endangering their safety, and that the immediate operation of this act is essential for the protection of the public safety; and an emergency is therefore declared, and this act shall take effect and be in force from and after its passage.”

Acts 1939, No. 32, § 3: approved Feb. 2, 1939. Emergency clause provided: “Because of a great waste in road district affairs and because there is a great number of needed roads within said improved road districts such as farm-to-market roads which are in dire need of repair and of the increase in benefits to free holders within said improved districts, and this act being essential for the protection of public safety an emergency is therefore declared to exist, and this act shall take effect and be in force from and after its passage.”

14-316-201. Penalty and enforcement.

  1. Any commissioner, officer, agent, or employee of any district who shall wilfully fail or refuse to comply with, or who shall knowingly violate, any of the provisions of this subchapter, shall be guilty of a misdemeanor, and shall be punished by a fine of not less than one hundred dollars ($100) nor more than five hundred dollars ($500).
  2. The provisions of this subchapter may be enforced by mandamus at the instance of the State Highway Commission or of any interested landowner.

History. Acts 1927, No. 112, §§ 15, 20; A.S.A. 1947, § 76-1213.

14-316-202. Examination of records by commission — Liability for wrongful use of funds.

  1. The State Highway Commission:
    1. Shall have authority to examine the books, records, and accounts of road districts and to have them audited; and
    2. May take any other steps necessary to ascertain the exact status and assets of a road district.
  2. Any commissioner, officer, agent, or employee of a road district wrongfully using or permitting the wrongful use of district funds shall be personally liable therefor. The Attorney General, at the request of the commission, shall prosecute the necessary suit, in the name of the district, to enforce that liability.

History. Acts 1927, No. 112, § 3; A.S.A. 1947, § 76-1202.

Case Notes

Cited: State ex rel. Holt v. Little Rock-Highland Paving Dist., 199 Ark. 430, 133 S.W.2d 878 (1939).

14-316-203. Districts with roads wholly within the state highway system — Annual report.

  1. On or before January 10 of each year, the commissioners of road districts whose roads, exclusive of any portion within the corporate limits of any city or town of more than two thousand five-hundred (2,500) inhabitants, are wholly included in the state highway system shall file a report with the State Highway Commission showing:
    1. The cash on hand, the amount of delinquent taxes, and all other assets; and
    2. All receipts and disbursements during the previous year.
  2. The report shall state the date of each voucher drawn, the amount, to whom payable, and for what purpose issued.

History. Acts 1927, No. 112, § 2; A.S.A. 1947, § 76-1201.

Case Notes

Cited: State ex rel. Holt v. Little Rock-Highland Paving Dist., 199 Ark. 430, 133 S.W.2d 878 (1939); Parkin Rd. Imp. Dist. v. English, 199 Ark. 702, 136 S.W.2d 190 (1940).

14-316-204. Remission of funds for paying bonded indebtedness and interest.

  1. When directed by the State Highway Commission, the commissioners of road districts referred to in § 14-316-203 shall remit all funds on hand from any and all sources, or so much thereof as may be necessary, to the bank or trust company named as payee in the deed of trust securing the bonds of the district, for the purpose of paying the bonds and interest as they mature, to the extent of the funds. However, the districts may retain sufficient amounts of the funds on hand to take care of existing contracts.
  2. In making the allotment provided for in section 3 of Act No. 11, approved February 4, 1927, [superseded], the commission shall only allot to the districts referred to in § 14-316-203 having funds on hand in an amount which, when added to the funds, will be sufficient to meet the maturing bonds and interest of the district, with the paying charge on that amount.

History. Acts 1927, No. 112, § 4; A.S.A. 1947, § 76-1203.

Case Notes

Toll Bridges.

Where bridge was made part of state highway system, surplus collected from tolls was part of the assets of the district which was to be paid to state. Red River Bridge Dist. v. State ex rel. State Hwy. Comm'n, 201 Ark. 365, 144 S.W.2d 723 (1940).

14-316-205. Districts with roads not wholly within state highway system — Tax levy — Sale of certificates of indebtedness — Saving clause.

With the approval of the county court, the commissioners in each district whose roads are not wholly included in the state highway system may annually, as necessary, levy a tax not to exceed one percent (1%) on the assessed benefits in the district for the purpose of constructing, repairing, and maintaining roads within the district which are not included in the state highway system. For that purpose, in order not to delay such necessary work, the road improvement district may issue and sell certificates of indebtedness, bearing interest at a rate not exceeding six percent (6%) per annum and for an amount not exceeding one (1) annual tax. These certificates shall be negotiable, shall mature and be made payable within one (1) year after their issuance, and shall constitute a lien and charge against the funds of the district. This section shall not repeal Acts 1923, No. 180, § 1.

History. Acts 1927, No. 112, § 9; 1939, No. 32, § 1; A.S.A. 1947, § 76-1206.

Publisher's Notes. Acts 1923, No. 180 referred to in this section, is a special act dealing with the Wilmot Road District.

Case Notes

Approval of County Court.

Where no approval was had of the county court as required by this section, chancery court could not levy a tax for the purpose of enforcing claims in connection with maintenance of roads. Parkin Rd. Imp. Dist. v. English, 199 Ark. 702, 136 S.W.2d 190 (1940).

Special Acts.

This section amends Acts 1923, No. 620 creating St. Francis Improvement District No. 12, by limiting the amount which may be assessed against lands not to exceed one percent on the assessed benefit, but does not repeal such law. Turley v. Owen, 188 Ark. 1067, 69 S.W.2d 882 (1934).

Cited: Trice v. Arkansas State Hwy. Comm'n, 186 Ark. 100, 52 S.W.2d 650 (1932).

14-316-206. Maintenance of roads not wholly within the state highway system — Use of funds — Cooperation with State Highway Commission — Annual report.

  1. The commissioners of districts whose roads are not wholly included in the state highway system shall, with the approval of the county court of the county in which the greater portion of the lands of the district are situated, or with the approval of the State Highway Commission, use the funds and revenues of the district for the repair and maintenance and completion of construction of the roads not included in the state highway system, and for other lawful expenses.
    1. The approval of the county court or of the State Highway Commission shall not be necessary in paying out funds in compliance with valid contracts now in existence.
    2. In districts in which the mileage of the roads constructed and included in the state highway system and on which the state has done maintenance work is more than the mileage of the roads constructed and not so included and previously maintained by the district, one-half (½) of the cash on hand on January 1, 1927, and one-half (½) of the delinquent taxes due before January 1, 1927, thereafter collected, and one-half (½) of all other assets, except equipment, shall be used as provided in § 14-316-204. In making the allotment provided for in Acts 1927, No. 11, § 3 [superseded], the commission shall only allot to the district an amount which, when added to such funds, will be sufficient to meet the maturing bonds and interest of the district, with the paying charge on that amount.
  2. The commissioners of such districts shall have the right to call on the State Highway Commission for the advice and services of state highway engineers. If the commission shall deem it inexpedient to furnish the services, the districts may, with the consent of the county court or of the State Highway Commission, employ engineers. The compensation of those engineers shall be fixed by the court or the commission consenting to the employment.
  3. On or before January 10 of each year, the commissioners of such districts shall file with the county court a report, duly sworn to by them, showing the items enumerated in § 14-316-203. All districts which are required by subsection (a)(2) of this section to pay one-half (½) of their cash, collections, and other assets on maturing bonds and interest of the district shall file a certified report, as provided in § 14-316-203, both with the county court and the State Highway Commission.
  4. The State Highway Commission shall have like authority, and the commissioners, officers, agents, and employees of such districts shall be under a like personal liability, enforceable in like manner, as to that provided in § 14-316-202.

History. Acts 1927, No. 112, § 5; A.S.A. 1947, § 76-1211.

Case Notes

Engineers.

Where a contract employing the state highway engineer as the engineer of a road improvement district was invalid as against public policy, it was immaterial that the contract stipulated that it should not become effective until he executed a bond and that the bond was not executed until after his successor as state highway engineer had qualified. Carter v. Bradley County Road Improv. Dist., 155 Ark. 288, 246 S.W. 9 (1922) (decision under prior law).

Funds.

This section does not require a road improvement district which is wholly outside the state highway system to turn over the funds on hand to the State Highway Commission. State ex rel. Holt v. Little Rock-Highland Paving Dist., 199 Ark. 430, 133 S.W.2d 878 (1939).

This section requires an annual approval of the use of funds for maintenance of roads, and such approval, though once granted, would not suffice to authorize payments arising in connection with the improvement of such roads four years subsequently thereto. Parkin Rd. Imp. Dist. v. English, 199 Ark. 702, 136 S.W.2d 190 (1940).

14-316-207. Payment of outstanding indebtedness and bonds by funds derived from taxes.

  1. Funds derived from taxes in road improvement districts shall be used by each district to pay its bonds, interest, and other valid and outstanding indebtedness which matured prior to January 1, 1927. The balance, if any, shall be used to pay bonds and interest maturing after January 1, 1927, or for construction, repairs, and maintenance, subject to the restrictions set forth in this subchapter which are intended to govern the expenditure of those funds.
  2. In the event any road district has valid and outstanding indebtedness existing prior to January 1, 1927, or maturing thereafter, not evidenced by bonds or interest coupons and which is not taken over by the state by virtue of Acts 1927, No. 11 [superseded], and the districts have no funds on hand with which to pay the indebtedness, the commissioners of the road district may levy a tax from year to year upon the lands in the district sufficient to pay the valid outstanding indebtedness. Upon payment of the indebtedness as provided in this section, any balance or surplus shall be handled in accordance with the further provisions of this subchapter, provided such districts are authorized to refund any such indebtedness.

History. Acts 1927, No. 112, § 1; A.S.A. 1947, § 76-1205.

Case Notes

Purpose.

The purpose of this section is to require all improvement districts to collect all taxes delinquent prior to January 1, 1927, and for state to pay only such bonds or interest as mature after that date. Northcutt v. North Arkansas Highway Improv. Dist., 174 Ark. 315, 295 S.W. 48 (1927).

Source of Payment.

Bond and interest payments made in January and February of 1927 were not to be made from state highway funds. State ex rel. Attorney Gen. v. Broadaway, 192 Ark. 634, 93 S.W.2d 1248 (1936).

Cited: State ex rel. Holt v. Little Rock-Highland Paving Dist., 199 Ark. 430, 133 S.W.2d 878 (1939); Parkin Rd. Imp. Dist. v. English, 199 Ark. 702, 136 S.W.2d 190 (1940).

14-316-208. Tax collection prohibited except to pay bonds and interest.

Except taxes delinquent on January 1, 1927, no taxes shall be extended or collected by any district whose roads are wholly included in the state highway system except to pay bonds and interest which became due prior to January 1, 1927, or for other liabilities, unless it becomes necessary to extend and collect taxes to pay bonds and interest maturing after January 1, 1927.

History. Acts 1927, No. 112, § 7; A.S.A. 1947, § 76-1204.

14-316-209. Use of funds — County road tax vested in county — Repayment of advances.

  1. Road districts shall be permitted to use funds that are on hand to pay valid outstanding debts of the district existing at the date of the passage of this subchapter.
  2. Any part or portion of the three (3) mill county road tax by authority of law vested in or given to any particularly designated rural road improvement district shall be vested in the county in which the tax originates. It shall constitute a part of the public county road funds of that county. In special road improvement districts in counties to which funds have been advanced for use in completing any unfinished road, the improvement of which is authorized by the law creating the district, the board of commissioners of any such improvement district or any receiver in charge thereof is authorized and directed to repay the sums of money so advanced to any person advancing that amount out of any fund on hand which is not necessary for the payment of bonds of the district maturing prior to January 1, 1927, and accrued interest thereon.

History. Acts 1927, No. 112, § 11; A.S.A. 1947, § 76-1212.

Publisher's Notes. In reference to the term “date of passage of this subchapter,” Acts 1927, No. 112 was signed by the Governor and became effective on March 4, 1927.

Subchapter 3 — Collection of Delinquent Assessments

Publisher's Notes. As to applicability of certain laws to municipal improvement districts existing prior to July 1, 1952, see §§ 14-90-102 and 14-90-103.

Effective Dates. Acts 1939, No. 56, § 4: Feb. 9, 1939. Emergency clause provided: “Whereas, much confusion now exists as to the proper procedure for the enforcement of collection of delinquent road improvement district and road maintenance district taxes and by reason of which a large number of citizens in this State will be materially damaged in their property rights, an emergency is hereby declared because of such act, and this act being necessary for the immediate preservation of the public peace, health and safety, it shall be effective immediately upon its passage and approval.”

14-316-301. Construction.

This subchapter shall be liberally construed to give the assessment and tax list the effect of bona fide mortgages for a valuable consideration, and to give a first lien upon the lands and real property as against all persons, firms, or corporations having an interest therein.

History. Acts 1939, No. 56, § 3; A.S.A. 1947, § 76-1209.

14-316-302. Enforcement proceedings generally.

  1. If the assessments of road improvement districts and road maintenance districts as certified by the county tax collector shall not be paid by the time fixed by law for the payment of county taxes, which for the purpose of this subchapter shall be between the first Monday in January and April 10 of each year, a penalty of twenty-five percent (25%) is attached for the delinquency, and the board of commissioners shall institute proceedings in the chancery court for the county to enforce the collection of the delinquency.
  2. The court shall give judgment against the lands and the real property for the amount of the taxes, the penalty of twenty-five percent (25%), and interest on the taxes and penalty from the expiration of the time for their payment to the collector at the rate of six percent (6%) per annum, and for all costs of the proceeding.
  3. The judgment shall provide for the sale of the delinquent lands for cash by a commissioner of the court after advertisement as set forth in § 14-316-303.
  4. The proceedings and judgment shall be in the nature of a proceeding in rem, and it shall be immaterial that the ownership of the lands is incorrectly alleged in the proceedings. The judgment shall be enforced wholly against the lands and not against any other property of the defendant.
  5. All or any part of the delinquent lands or real property within the district may be included in one (1) suit instituted for the collection of the delinquent taxes, penalty, and costs.

History. Acts 1939, No. 56, § 1; A.S.A. 1947, § 76-1207.

Cross References. Remission of delinquent penalties in excess of 10 percent, § 14-86-1002.

Suit for collection of delinquent taxes, § 14-86-1106.

14-316-303. Notice.

  1. For two (2) consecutive weeks before judgment is entered for the sale of the lands, weekly notice of the pendency of the suit shall be given by publication in some newspaper in the county having a general circulation therein.
  2. Notice may be in the following form:
  3. The complaint above referred to need not allege minor details of organization of the district or the manner of making or levying the assessments or benefits, but it may allege generally the organization of the district and that the taxes sought to be foreclosed are past due and unpaid.

“NOTICE” (Name of district vs. delinquent lands in the district) “All persons, firms, or corporations having or claiming any interest in any of the following described lands or real property are notified that an action is pending in the Chancery Court of County, Arkansas, to enforce the collection of certain road improvement and road maintenance taxes on the following list of lands and real property, each supposed owner's name having been set opposite his, her, or its property, together with the total amount severally due from each, to wit: (then shall follow a list of the supposed owners with a description of the lands and the amounts due thereon, respectively, as aforesaid). “All persons, firms, or corporations interested in the property are notified that they are required by law to appear within four (4) weeks and make defense to the suits or same will be taken for confessed and final judgment shall be entered directing the sale of the lands for the purpose of collecting the taxes, together with all the interest, penalty, and costs allowed by law. Clerk of Chancery Court.”

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History. Acts 1939, No. 56, § 1; A.S.A. 1947, § 76-1207.

14-316-304. Trial procedures.

  1. Suits for delinquent assessments shall be conducted in the name of the district and in accordance with the practice and procedure of the chancery courts of this state, except as herein otherwise provided, but neither attorneys ad litem, guardians ad litem, nor any other provisions of § 16-65-403 shall be required, and the suits may be disposed of on oral testimony as in ordinary suits at law.
  2. However, no informality or irregularity in holding any meeting provided for in this subchapter, or in any description, valuation, or assessment of the property, or in the name of the owner, number of acres, or manner of assessment, shall be a valid defense to the action.

History. Acts 1939, No. 56, § 3; A.S.A. 1947, § 76-1209.

14-316-305. Decree — Sale of delinquent lands.

  1. At the first regular or adjourned term of the chancery court after the notice has been published for three (3) consecutive weeks and not earlier than five (5) days after the last insertion of the notice, the suit shall stand for trial unless a continuance is granted to a delinquent for some good cause shown, in the discretion of the court. The continuance shall not affect the court's duty to proceed with the delinquents as to whom no continuance was granted.
  2. In all cases where the notice has been published as provided in subsection (a) of this section and no answer has been filed, or where answer is filed and the cause decided for the plaintiff, the chancery court by its decree shall grant the relief prayed for in the complaint, shall tax as part of the cost a reasonable attorney's fee for the plaintiff, and shall direct the commissioner to sell the land described in the complaint at the front door of the county courthouse to the highest and best bidder for cash in hand, after having first advertised the sale, such advertisement to include all lands embraced in the decree, for two (2) weeks consecutively in some newspaper published in the county.
  3. If all lands are not sold on the day advertised, the sale shall be continued from day to day until completed.
  4. The commissioner shall by proper deed convey title to the purchaser as against all others whomsoever, saving to infants and insane persons having no guardians and curators, the rights they now have by law to appear and except to the proceedings within twelve (12) months after their disabilities have ended.
  5. The commissioner conducting the sale shall be allowed a reasonable fee, to be fixed by the chancery court, which shall be taxed as costs in the case.
  6. The commissioner shall keep an accurate list of all lands sold and shall account to the board of commissioners for all money derived from the sale of delinquent lands.

History. Acts 1939, No. 56, § 2; A.S.A. 1947, § 76-1208.

14-316-306. Bidding by district — Conveyance of indefeasible title.

In any case where property is offered for sale by the commissioner as provided in § 14-316-305 and the sum of the taxes, together with the interest, costs, and penalty, is not bid for the property, the commissioner shall bid therefor, in the name of the district, the whole amount due as aforesaid, and shall execute his deed therefor, as in other cases under this subchapter, conveying the property to the district. All deeds, when executed in conformity with the provisions of this subchapter and recorded, shall be as evidence in all cases showing an indefeasible title in the purchaser, unassailable either at law or in equity.

History. Acts 1939, No. 56, § 4; A.S.A. 1947, § 76-1210.

14-316-307. Right of redemption.

  1. At any time within three (3) years after the rendition of the final decree by the chancery court provided for in § 14-316-305, the owner of the property may file his petition in the court alleging the payment of taxes for the year for which the lands were sold. Upon the establishment of that fact, the court shall vacate and set aside the decree as to that particular property.
  2. Any owner of real property shall have the same right to redeem any and all property sold at the sale within one (1) year thereafter.

History. Acts 1939, No. 56, § 4; A.S.A. 1947, § 76-1210.

Cross References. Redemption, § 14-86-1501 et seq.

Chapter 317 Rural Road Improvement Districts

Cross References. Districts with roads not wholly within state highway system, § 14-316-205.

Tort liability immunity, § 21-9-301 et seq.

Effective Dates. Acts 1955, No. 367, § 27: approved Mar. 24, 1955. Emergency clause provided: “It is hereby ascertained and declared that many areas in the counties of this State that do not lie adjacent to cities with a population of five thousand or more, as said adjacency is defined by Act 41 [§§ 20-701—20-727] of the 1941 Acts of the General Assembly of the State of Arkansas, are unable to provide themselves with adequately improved roads, highways and streets; that many of the counties of this state are financially unable to properly improve the roads, highways and streets in these areas; that the citizens residing and owning land in these areas are in dire need of improved roads, highways and streets; and that the improvement of said roads, highways and streets is necessary to the health, safety, and welfare of the citizens residing in said areas; and for these reasons it is hereby ascertained and declared that an emergency exists; and this Act being necessary for the preservation of the public peace, health, and safety, shall take effect and be in force from and after its passage.”

Acts 1971, No. 336, § 4: Mar. 22, 1971. Emergency clause provided: “It has been found and it is hereby declared by the General Assembly of the State of Arkansas that existing law pertaining to the formation of rural road and street improvement districts for territory lying in more than one county should be clarified in order that needed districts may be properly and expeditiously established; that it is essential to the continued growth and welfare of this State and her inhabitants that the provisions of this Act be immediately available to interested parties; and that the immediate effectiveness of this Act is the only means by which these public purposes can be accomplished. Therefore an emergency is declared to exist and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1981, No. 425, § 54: Mar. 11, 1981. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Case Notes

Assessments Based on Benefits.

This chapter requires that assessments be made in relation to benefits derived, and makes no mention of the ability of the beneficiaries to pay. Where the record shows that the landowners would receive all the benefits and enhancement of the values of their properties as reflected by the report of the district assessor, there is no merit in a contention that the assessments were confiscatory. Borden v. Armstrong, 240 Ark. 1050, 403 S.W.2d 731 (1966).

14-317-101. Definition.

As used in this chapter, unless the context otherwise requires, “lands” or “real property” shall be construed to embrace all property subject to taxation for the purposes of this chapter.

History. Acts 1955, No. 367, § 4; A.S.A. 1947, § 20-1204.

14-317-102. Violations.

It shall not be lawful for the board of the district, or any officer, member, or agent thereof, to pledge or deposit any bond or coupon issued under the provisions of this chapter as security for payment of any borrowed money or any debt or obligation of the board, or any person, firm, or corporation whatever, nor shall it be lawful for the board of the district, or any officer, member, or agent thereof, to appropriate or use any money arising from the sale of any bond or bonds authorized to be issued under this chapter to any use or purpose whatever other than is herein specified and expressly directed. Any officer, member, or agent of the board of the district who shall violate any of the provisions of this section shall be deemed guilty of a felony and upon conviction shall be punished by imprisonment in the penitentiary for not less than one (1) year nor more than five (5) years.

History. Acts 1955, No. 367, § 19; A.S.A. 1947, § 20-1219.

14-317-103. Petition for district formation — In general.

    1. Whenever a two-thirds (2/3) majority in value, acreage, or number of landowners within a proposed road improvement district shall petition the county court to establish a road improvement district to embrace a certain region which it is intended shall be embraced within the boundaries of the district, it shall be the duty of the county court:
      1. To lay off into a road improvement district the territory described in the petition for the purpose of grading, draining, graveling, paving, curbing, and guttering roads, highways, and streets as set forth in the petition; and
      2. To name as commissioners of the district the persons whose names appear in the petition, provided they are property owners in the district, if the petition contains the names and if not, three (3) property owners of the district of integrity and good business ability.
    2. All or portions of incorporated towns or cities may be included in the districts, provided that the area of the district located within the incorporated towns or cities shall be less than a majority of the area of the entire district and provided further that no incorporated town or city or portion thereof shall be included in the district unless it shall be found that a two-thirds (2/3) majority in value of the owners of real property within the affected area of the incorporated town or city, irrespective of a majority elsewhere in the district, have petitioned for formation of the district.
    1. If land in more than one (1) county is embraced in the proposed district, the petition shall be addressed to the circuit court for the county in which the largest portion of the lands lie and all proceedings shall be had in that circuit court. In cases where the district contains lands in more than one (1) county, the words “county court” or “county judge” as used in this chapter shall be construed to mean “circuit court” or “circuit judge,” and the words “county clerk” to mean “circuit clerk,” unless the context clearly indicates to the contrary. All notices in that event shall be published in newspapers published and having a bona fide circulation in each county in which the district embraces land.
    2. If land in more than one (1) county is embraced in the proposed district, the commissioners of the district shall be selected so as to name at least one (1) property holder in the affected territory of each county in which the district embraces land. However, if the district embraces land in more than three (3) counties, the commissioners of the district shall be selected so that not more than one (1) commissioner shall be a property holder in the territory of any county in which the district embraces land.

History. Acts 1955, No. 367, § 1; 1963, No. 534, § 1; 1971, No. 336, § 1; A.S.A. 1947, § 20-1201.

14-317-104. Notice of petition.

  1. Upon the filing of the petition, it shall be the duty of the county clerk to give notice of the filing thereof, describing the territory to be affected and calling upon all persons who wish to be heard upon the question of the establishment of the district, to appear before the county court on a day to be fixed in the notice.
  2. The notice shall be published once a week for two (2) weeks in some newspaper published and having a bona fide circulation in the district where the lands affected are situated.
  3. This notice may be in the following form:

“Notice is given that a petition has been filed praying for the formation of a road improvement district for the purpose of The petition is on file at the office of the County Clerk of County, where it is open to inspection. All persons desiring to be heard on the question of the formation of the district will be heard by the county court on the day of , 19 The following lands are affected: (Here give description of lands affected; the same may be described by using the largest subdivision possible). County Clerk.”

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History. Acts 1955, No. 367, § 2; 1963, No. 534, § 2; A.S.A. 1947, § 20-1202.

14-317-105. Circulation of identical petitions.

Any number of identical petitions may be circulated, and identical petitions with additional names may be filed at any time until the county court acts.

History. Acts 1955, No. 367, § 2; 1963, No. 534, § 2; A.S.A. 1947, § 20-1202.

14-317-106. Hearing on petition — Appeal.

  1. On the day named in the notice, it shall be the duty of the county court to meet and to hear the petition and to ascertain whether those signing the petition constitute a two-thirds (2/3) majority in value, acreage, or number of landowners within the proposed road improvement district.
    1. If the county court determines that a two-thirds (2/3) majority in value, acreage, or number of landowners within the proposed road improvement district have petitioned for the improvement, it shall enter its judgment laying off the district as defined in the petition and appointing the commissioners named in the petition, if commissioners are named therein and are property holders in the district.
    2. If it fails to find that a two-thirds (2/3) majority in either value, acreage, or number of landowners within the proposed road improvement district have signed the petition, it shall enter its order denying the petition.
  2. If any part of the proposed district shall be located within the corporate limits of an incorporated town or city, the county court shall make a separate finding on the question of two-thirds (2/3) majority in that incorporated town or city.
    1. If the court finds that a two-thirds (2/3) majority in value in the portion of each incorporated town or city that is included in the proposed district, as well as two-thirds (2/3) majority in value, acreage, or number of landowners of rural lands affected, have petitioned for the improvement, it shall enter its judgment laying off the district as defined in the petition and appoint the commissioners named in the petition, if commissioners are named therein and are property holders in the district.
    2. If it fails to find that a two-thirds (2/3) majority in value of the area affected by the proposed district in any incorporated town or city affected or a two-thirds (2/3) majority in either value, acreage, or number of landowners of the lands affected outside of an incorporated town or city has signed the petition, it shall enter its order denying the petition.
  3. Any petitioner or any opponent of the petitioner may appeal from the judgment of the county court creating or refusing to create the district, but the appeal must be taken and perfected within thirty (30) days. If no appeal is taken within that time, the judgment creating the district shall be final and conclusive upon all persons.
  4. The petition shall state the specific purposes for which the district is to be formed. The judgment establishing the district shall give it a name which shall be descriptive of the purpose. The district shall also receive a number to prevent its being confused with other districts for similar purposes.

History. Acts 1955, No. 367, § 2; 1963, No. 534, § 2; A.S.A. 1947, § 20-1202.

14-317-107. District as body corporate.

Each district shall be a body corporate with power to sue and to be sued, and it shall have a corporate seal.

History. Acts 1955, No. 367, § 3; A.S.A. 1947, § 20-1203.

14-317-108. Commissioners' oath.

  1. Within thirty (30) days after their appointment, the commissioners shall take and file their oath of office with the county clerk. In their oath they shall swear that they will support the Constitution of the United States and the Constitution of the State of Arkansas, that they will discharge faithfully their duties as commissioners, and that they will not be interested, directly or indirectly, in any contract let by the board.
  2. Any commissioner failing to file such oath within the thirty-day period shall be deemed to have declined the office, and the county court shall appoint some property holder as his successor, who shall qualify in like manner within a like time.

History. Acts 1955, No. 367, § 3; A.S.A. 1947, § 20-1203.

14-317-109. Board organization — Vacancy.

  1. The board of commissioners shall organize by electing one of its members chairman, and it shall select a secretary.
  2. It may also employ such agents, servants, engineers, and attorneys as it deems best and fix their compensation and the compensation of the secretary.
  3. In case of a vacancy on the board of commissioners, after the commissioners have organized, the remaining commissioners shall select the successor, who shall be a property holder in the district. The person so selected shall qualify by taking the oath of office as prescribed for the original commissioners.

History. Acts 1955, No. 367, § 3; A.S.A. 1947, § 20-1203.

14-317-110. Liability of board members.

No member of the board of improvement shall be liable for any damages unless it shall be made to appear that he has acted with a corrupt and malicious intent.

History. Acts 1955, No. 367, § 16; A.S.A. 1947, § 20-1216.

14-317-111. Depository.

The board shall select some solvent bank or trust company as the depository of its funds, exacting of the depository a bond in an amount equal to the amount of money likely to come into its hands.

History. Acts 1955, No. 367, § 3; A.S.A. 1947, § 20-1203.

14-317-112. Eminent domain.

All districts organized under this chapter shall have the right of eminent domain in order that they may carry out the purpose of their creation. This right shall be exercised in the same manner as in the case of railroads, telegraph, and telephone companies, but without the necessity of making a deposit of money before entering into possession of the property condemned.

History. Acts 1955, No. 367, § 23; A.S.A. 1947, § 20-1223.

Case Notes

In General.

A road improvement district has the power of eminent domain under the provisions of this section. Borden v. Armstrong, 240 Ark. 1050, 403 S.W.2d 731 (1966).

Reports Not Required.

This section does not require that engineering reports have to be filed by the commission with the county clerk, nor is it necessary to file a report or give information to the landowners as to the nature and type of bonds to be sold by the district. Borden v. Armstrong, 240 Ark. 1050, 403 S.W.2d 731 (1966).

14-317-113. Sale of acquired lands.

Any land that may be acquired by any district organized under this chapter may be sold by the commissioners for the price and on the terms they deem best.

History. Acts 1955, No. 367, § 26; A.S.A. 1947, § 20-1225.

14-317-114. Bonds generally.

  1. All bonds issued by the commissioners under the terms of this chapter shall be secured by a lien on all lands in the district. The board of commissioners shall see to it that a tax is levied annually and collected under the provisions of this chapter, so long as may be necessary to pay any bond issued or obligation contracted under its authority, and the making of the assessment or levy and collection may be enforced by mandamus.
  2. If any bond or interest coupon on any bond issued by the board is not paid within thirty (30) days after its maturity, it shall be the duty of any court of competent jurisdiction, on application of any holder of the bond or interest coupon so overdue, to appoint a receiver to collect the taxes aforesaid and an assessor to reassess the benefits, if necessary. The proceeds of the taxes and collections shall be applied after payment of costs, first to overdue interest, and then to payment pro rata of all bonds issued by the board which are then due and payable. The receiver may be directed by suit to foreclose the lien of the taxes on the lands, and the suits so brought by the receiver shall be conducted in all matters as suits by the board as hereinbefore provided and with like effect, and the decree and deeds therein shall have the same presumption in their favor. However, when all the sums have been paid, the receiver shall be discharged and the affairs of the district conducted by the board of commissioners as hereinbefore provided.

History. Acts 1955, No. 367, § 18; A.S.A. 1947, § 20-1218.

14-317-115. Plans for improvement — Assessor.

  1. Immediately after their qualification, the commissioners shall form plans for the improvement. To that end they may employ such engineers, attorneys, and other assistants as they find necessary and shall file a copy thereof with the county clerk.
    1. They shall thereupon appoint an assessor to assess the benefits which will accrue to the real property within the district from the making of the improvement.
    2. The assessor shall take an oath that he will well and truly assess all benefits that will accrue to the landowners of the district by the making of the proposed improvement.
    3. He shall thereupon proceed to assess the lands within the district and shall inscribe in a book each tract of land. He shall place in one (1) column his valuation of each tract or parcel of land before the improvement is made, which column may be marked “Assessed Value of Land before Improvements Are Made,” and in another column he shall place what he thinks will be the value of each tract or parcel of land after the improvement is made, which column may be marked “Assessed Value of Land after Improvements Are Made.” If the “Assessed Value of Land after Improvements Are Made” is greater than the “Assessed Value of Land before the Improvements Are Made,” as assessed by the assessor for the district, then the difference between the two (2) shall be the assessed benefits that will accrue to each tract by reason of the improvement, but if the “Assessed Value of Land after Improvements Are Made” is less than the “Assessed Value of Land before Improvements Are Made,” as assessed by the assessor for the district, then the difference between the two (2) shall be the assessed damages that will accrue to the particular parcel or tract of land by reason of the improvement. The assessor shall enter such assessment of benefits or damages opposite the description of each piece of property in appropriate columns, one (1) of which may be marked “Assessed Benefits,” and the other may be marked “Assessed Damages,” and in another column the assessor shall show the estimate of the probable cost to the landowner, which may be marked “Estimated Cost.”
    4. His assessment shall embrace all the lands and improvements on real estate that will be benefited by the making of the improvement.
    5. The assessor shall place opposite each tract the name of the supposed owner, as shown by the last county assessment, but a mistake in the name shall not vitiate the assessment, and the assessor shall correct errors which occur in the county assessment list.
    6. The assessor shall also assess all damages that will accrue to any landowner by reason of the proposed improvement, including all injury to lands taken or damaged.
    7. Where he returns no such damages to any tract of land, it shall be deemed a finding by him that no damages will be sustained.
    8. When the board shall make the levy of taxes, it shall be the duty of the assessor to extend the amount levied and set that amount opposite each benefit assessed in a column marked “Annual Collection.”
    9. The assessor shall hold his office at the pleasure of the board, which can fill any vacancy in the position of assessor.

History. Acts 1955, No. 367, §§ 4, 9; A.S.A. 1947, §§ 20-1204, 20-1209.

14-317-116. County clerk — Collector.

  1. It shall be the duty of the county clerk of the county to extend taxes annually upon the tax books of the county until the levy is exhausted, and for his services he shall receive a commission of one and one-half percent (1½%) of the amount so extended.
  2. It shall then be the duty of the collector to collect each year the taxes extended upon the books along with the other taxes until the entire levy is exhausted. For his services in making the collections, the collector shall receive a commission of one and one-half percent (1½%), and the taxes shall be paid by the collector to the depository of the district at the same time he pays over the county funds.
  3. In counties operating under the unit tax ledger system, the tax collector shall receive a commission of one and one-half percent (1½%) for extending the taxes and a commission of an additional one and one-half percent (1½%) for collecting the taxes. County clerks and tax collectors are authorized to employ additional deputies to do the additional work imposed by the terms of this chapter.
  4. No property owner shall be required to pay the improvement taxes herein provided as a prerequisite to paying his general taxes.

History. Acts 1955, No. 367, § 9; A.S.A. 1947, § 20-1209.

14-317-117. Alteration of plans.

  1. The commissioners may at any time alter the plans and specifications.
  2. The changed plans, with the accompanying specifications, shall be filed with the county court. Notice of filing shall be given by publication for two (2) weeks in some newspaper issued and having a bona fide circulation in the county.
  3. If, by reason of the change of plans, the board of commissioners deems that the assessment of benefits has become inequitable, it shall direct the assessor to make a reassessment.
  4. If any property owner deems that by reason of the change of plans his assessment has become inequitable, he may, within two (2) weeks after the last publication of notice, petition the board to order a reassessment. The decision of the board upon his petition shall be final unless an appeal is taken within ten (10) days to the county court.
  5. In case of reassessment, the reassessment shall be filed, advertised, and equalized as provided for in the original assessment.
  6. Wherever the words “two-thirds (2/3) majority in value” are used herein, it shall be construed to mean a two-thirds (2/3) majority in assessed value as shown by the latest county assessment records for general taxes.

History. Acts 1955, No. 367, § 22; A.S.A. 1947, § 20-1222.

14-317-118. Signatures prerequisite to levy — Five year freeze on assessment increase.

  1. Road and street improvement districts formed after July 4, 1983, under the provisions of this chapter shall be subject to the provisions of this section in addition to other provisions of this chapter and all other applicable laws.
  2. When the initial assessment of benefits by the districts has been determined, the petition for formation of the districts shall once again be reviewed by the authority initially reviewing the petition, and, if upon review, it does not appear that persons who would be liable for at least fifty-one percent (51%) of the initial assessed benefits have signed the petition, then the assessment shall not be levied until additional signatures are obtained on the petition which would represent the approval of persons who would be liable for at least fifty-one percent (51%) of the assessments.
  3. Furthermore, the first assessment of benefits by the districts shall not be increased for a period of five (5) years subsequent to the first levy.
  4. Thereafter, the assessment of benefits shall be as otherwise provided by law.

History. Acts 1983, No. 428, § 1; A.S.A. 1947, § 20-1204.1.

14-317-119. Assessment order — Lien — Remedy.

  1. The board of commissioners of the district shall at the same time that the assessment of benefits is equalized, or at any time thereafter, enter upon its records an order, which shall have all the force of a judgment, providing that there shall be assessed upon the real property of the district a tax sufficient to pay the estimated cost of the improvement with ten percent (10%) added for unforeseen contingencies. This tax is to be paid by the real property in the district in the proportion to the amount of the assessment of benefits thereon and is to be paid in annual installments, payable not to exceed ten percent (10%) for any one year, as provided in the order.
  2. The tax so levied shall be a lien upon all the real property in the district from the time the tax is levied and shall be entitled to preference over all demands, executions, encumbrances, or liens whensoever created, and shall continue until the assessment, with any penalty costs that may accrue thereon, shall have been paid.
  3. The remedy against the levy of taxes shall be by suit in chancery, and the suit must be brought within thirty (30) days from the time that the levy was made, and on the appeal the presumption shall be in favor of the legality of the tax.

History. Acts 1955, No. 367, § 7; A.S.A. 1947, § 20-1207.

14-317-120. Filing assessments — Notice — Hearing.

  1. The assessment shall be filed with the county clerk of the county where the land lies.
  2. The secretary of the board shall thereupon give notice of its filing by publication one (1) time a week for two (2) weeks in a newspaper publishing and having a bona fide circulation in the district.
  3. This notice may be in the following form:
  4. On the day named in the notice, it shall be the duty of the commissioners and assessor to meet together at the place named as a board of equalization and to hear all complaints against the assessment and to equalize and adjust the assessment. Their determination shall be final unless suit is brought in the chancery court within thirty (30) days to review it.

“Notice is hereby given that the assessment of benefits and damages of District Number has been filed in the office of the County Clerk of County, and where it is open to inspection. All persons wishing to be heard on said assessment will be heard by the commissioners and the assessor of the district between the hours of 10 a. m. and 4 p. m. at , in the city of , Arkansas, on the day of , 19 . Secretary.”

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History. Acts 1955, No. 367, § 5; 1963, No. 534, § 3; A.S.A. 1947, § 20-1205.

14-317-121. Interest on assessment.

The assessment of the benefits shall bear interest at the rate of six percent (6%) per annum from the time it is equalized, but the interest need not be calculated until it is necessary to do so to avoid exceeding the total amount of benefits and interest, or the interest may be first collected.

History. Acts 1955, No. 367, § 8; A.S.A. 1947, § 20-1208.

14-317-122. Reassessment.

  1. The commissioners, not more often than once a year, may require the assessor to reassess the benefits in the district. In the event the district shall have incurred any indebtedness or issued bonds, the total amount of assessed benefits shall never be diminished.
  2. The reassessment shall be made, advertised, and equalized in the same manner as provided herein for making the original assessment.

History. Acts 1955, No. 367, § 6; A.S.A. 1947, § 20-1206.

14-317-123. Additional levies for payment of bonds.

If the tax first levied shall prove insufficient to pay the bonds, both the principal and interest, issued by the board of commissioners on account of the improvement, as hereinbefore provided, as the improvement shall become due and payable, they shall from time to time make further levies upon the property previously assessed for sums sufficient to complete the improvement and to pay the bonds and interest, which shall be extended and collected in the same manner as the first levy. However, the total levy shall in no case exceed the value of the benefits assessed on the property with interest, and the performance of the duties may be enforced by mandamus at the instance of any person or board interested.

History. Acts 1955, No. 367, § 10; A.S.A. 1947, § 20-1210.

14-317-124. Payment of levies — Delinquency.

All taxes levied under the terms of this chapter shall be payable in installments at the same time as other state, county, and city taxes are now paid. If any taxes levied by the board in pursuance to this chapter are not paid at maturity, the collector shall not embrace such taxes in the taxes for which he shall sell the lands, but he shall report the delinquencies to the board of commissioners of the district, who shall add to the amount of the tax a penalty of twenty-five percent (25%). The board of commissioners shall enforce the collection by chancery proceedings in the chancery court of the county, in the manner provided by §§ 14-121-42614-121-432. But the owner of the property sold for taxes thereunder shall have the right to redeem it at any time within two (2) years from the time when his lands have been stricken off by the commissioner making the sale.

History. Acts 1955, No. 367, § 11; A.S.A. 1947, § 20-1211.

14-317-125. Warrants.

  1. The depository shall pay out no money save upon the order of the board and upon a warrant signed by at least two (2) of the commissioners.
  2. Every warrant shall state upon its face to whom it is issued and the amount and the purpose for which it is issued.
  3. All warrants shall be dated and shall be numbered consecutively, in a record to be kept by the board of the number and amount of each. No warrant shall be paid unless there are in the treasury funds enough to pay all outstanding warrants bearing a lower number.
  4. No warrants shall be increased by reason of any depreciation in the market value thereof, nor shall any contract or warrant be made payable or paid in anything but currency.

History. Acts 1955, No. 367, § 12; A.S.A. 1947, § 20-1212.

14-317-126. Priority of actions — Appeals.

  1. All cases involving the validity of rural road and street improvement districts or the assessment of benefits and all suits to foreclose the lien or taxes shall be deemed matters of public interest and shall be advanced and disposed of at the earliest possible moment.
  2. All appeals therefrom must be taken and perfected within thirty (30) days.

History. Acts 1955, No. 367, § 20; A.S.A. 1947, § 20-1220.

14-317-127. Powers of board.

  1. The board of commissioners may appoint all necessary agents for carrying on the work and may fix their pay and shall pay a reasonable fee for legal services in organizing the district and for circulating petitions.
  2. The board may sell all unnecessary material and implements that may be on hand and which may not be necessary for the completion of the improvement under way, or which may have been completed, and may in general make all contracts in the prosecution of the work as may best subserve the public interest.

History. Acts 1955, No. 367, § 13; A.S.A. 1947, § 20-1213.

14-317-128. Negotiable notes or bonds — Mortgages.

  1. In order to meet preliminary expenses and to do the work, the board may issue the negotiable notes or bonds of the district signed by the members of the board and bearing a rate or rates of interest approved by the board and may pledge and mortgage all assessments for the payment thereof.
  2. It may also issue to the contractors who do the work negotiable evidences of debt-bearing interest at a rate or rates provided in the resolution authorizing their issuance and secure the negotiable evidences of debt in the same manner as set out in subsection (a) of this section.
  3. No bonds issued under the terms of this chapter shall run for more than thirty (30) years, and all issues of bonds may be divided so that a portion thereof may mature each year as the assessments are collected or they may all be made payable at the same time, with proper provision for a sinking fund.
  4. The bonds shall not be sold for less than par without the unanimous vote of the board.

History. Acts 1955, No. 367, § 15; 1981, No. 425, § 24; A.S.A. 1947, § 20-1215.

14-317-129. Contractors' bonds.

All contractors shall be required to give bond for the faithful performance of the contracts awarded them, with good and sufficient sureties, in an amount to be fixed by the board. The board shall not remit or excuse the penalty or forfeiture of the bond or the breaches thereof.

History. Acts 1955, No. 367, § 13; A.S.A. 1947, § 20-1213.

14-317-130. Estimate of work completed — Payment of contractors.

It shall be the duty of the board to have the amount of work done by any contractor estimated from time to time, as may be desirable by the engineer selected by the board. The board shall draw its warrants in favor of the contractor for not more than ninety percent (90%) of the amount of work so reported, reserving the remainder until it has been ascertained that the work is completed according to contract and is free from liens.

History. Acts 1955, No. 367, § 14; A.S.A. 1947, § 20-1214.

14-317-131. Preliminary expenses after failure to make improvement.

In case for any reason the improvement contemplated by any district organized under this chapter is not made, the preliminary expense shall be a first lien upon all the land in the district and shall be paid by a levy of a tax thereon upon the assessed value for county and state taxation, which levy shall be made by the chancery court of the county and shall be collected by a receiver to be appointed by the court.

History. Acts 1955, No. 367, § 21; A.S.A. 1947, § 20-1221.

14-317-132. District's continued existence — Levies for repair.

  1. The district shall not cease to exist upon the completion of the improvement, but the district shall continue to exist for the purpose of preserving it and keeping it in repair.
  2. To this end, the commissioners may from time to time make such additional levies based upon the assessment of benefits as may be necessary for that purpose, and the amount of the total levies shall not exceed the assessed benefits and interest thereon.

History. Acts 1955, No. 367, § 17; A.S.A. 1947, § 20-1217.

14-317-133. Disposition of funds.

  1. The county court is authorized:
    1. To turn over to any road or street improvement district organized under this chapter such proportion of the road tax, as may be just and equitable, or any portion of the automobile or gasoline tax turnback fund; and
    2. To contribute the funds in money or scrip to the expense of the improvement from the general revenue of the county as it may deem appropriate.
  2. Any such district is authorized to receive any part of the funds that may be set aside by the United States Government for the improvement of public roads, and any that may hereafter be set aside by the government of this state for aid in the improvement of public roads.
  3. The commissioners of the district and the Arkansas Department of Transportation may secure any of the federal funds for the districts as an improvement of a part of the public roads of the state in which this state has an interest.

History. Acts 1955, No. 367, § 25; A.S.A. 1947, § 20-1224; Acts 2017, No. 707, § 29.

Amendments. The 2017 amendment, in (c), substituted “Arkansas Department of Transportation” for “Arkansas State Highway and Transportation Department” and substituted “may” for “are authorized and directed to take such action as may be necessary to”.

14-317-134. Changing assessment of benefits when property is transferred.

    1. When any owner of real property located in a road improvement district created under this chapter notifies any member of the board of directors of the improvement district by certified mail, return receipt requested, that the property owner has transferred ownership of all or any part of the property, the board shall instruct the county official in possession of the tax books of the county within thirty (30) calendar days after the notice was mailed as to:
      1. The change of ownership; and
      2. If the property was divided, the amount of assessment of benefits levied against each resulting portion of the property.
        1. At the same time the real property owner notifies a board member under subdivision (a)(1) of this section, the property owner shall also notify the county clerk of the county in which the property is located.
        2. The notice shall indicate the identity of the board member notified and the date the notice is mailed.
      1. If the county clerk is not in possession of the tax books of the county when the notice is received, the county clerk shall forward the notice to the county official in possession of the tax books of the county.
  1. If the county official in possession of the tax books of the county does not receive instructions from the improvement district board as required under subsection (a) of this section, the county official may reapportion the assessment of benefits in an equitable manner and change the tax books of the county to reflect the change in ownership.

History. Acts 2001, No. 79, § 1.

Chapter 318 Improvement Districts For Acquiring Rights-of-way

Effective Dates. Acts 1938 (Ex. Sess.), No. 23, § 22: approved Apr. 1, 1938. Emergency clause provided: “It is ascertained and hereby declared that the immediate operation of this act is necessary for the safety of persons using the highways of this State, and it is therefore declared that an emergency exists, and that this act shall take effect and be in force immediately upon its passage.”

14-318-101. Definition.

As used in this chapter, unless the context otherwise requires, “adjacent lands” mean all lands within ten (10) miles of any city or incorporated town.

History. Acts 1938 (Ex. Sess.), No. 23, § 19; A.S.A. 1947, § 76-1420.

14-318-102. Enforcement.

The commissioners and all other officers having duties to perform under this chapter may be required to perform their duties either by mandamus or by mandatory injunction in a suit brought by any interested party.

History. Acts 1938 (Ex. Sess.), No. 23, § 15; A.S.A. 1947, § 76-1416.

Research References

Ark. L. Rev.

Mandamus to Review Administrative Action in Arkansas, 11 Ark. L. Rev. 352.

14-318-103. Petition by landowners.

When a petition, signed by ten (10) owners of real property within the limits of a district proposed to be organized for the purpose of procuring a right-of-way for any highway, viaduct, or underpass which the Government of the United States, or any of its agencies, proposes to construct and for the purpose of paying the damages caused by such improvement, the petition describing the property which will be benefited by the making of the improvement, is presented to the county court or county judge, it shall be the duty of the county court to meet immediately and to enter an order upon its record, reciting the filing of the petition and fixing a day for hearing of those who favor the formation of the district and those opposed thereto.

History. Acts 1938 (Ex. Sess.), No. 23, § 1; A.S.A. 1947, § 76-1401.

14-318-104. Notice of petition.

  1. It shall be the duty of the county clerk to give notice of the filing of the petition describing the territory to be affected and calling upon all persons who wish to be heard upon the question of the establishment of the district to appear before the county court on a day to be fixed in the notice.
  2. The notice shall be published once a week for two (2) weeks in some newspaper published and having a bona fide circulation in the county where the lands affected are situated. The last publication of notice is to be at least seven (7) days before the day fixed for the hearing.
  3. This notice may be in the following form:

“Notice is hereby given that a petition has been filed praying for the formation of an improvement district for the purpose of The petition is on file at the office of the County Clerk of County, where it is open to inspection. All persons desiring to be heard on the question of the formation of the district will be heard by the county court on the day of , 19 The following lands are affected: (Here give description of lands affected. Lands may be described by using the largest subdivisions possible). County Clerk.”

Click to view form.

History. Acts 1938 (Ex. Sess.), No. 23, § 2; A.S.A. 1947, § 76-1403.

14-318-105. Hearing on petition — Appeal.

  1. On the day named in the notice, it shall be the duty of the county court to meet and to hear all persons who favor the formation of the district or oppose its formation.
    1. If the court finds that the organization of the district would be to the benefit of the territory described in the petition and to the public interest, it shall enter its judgment creating the district.
    2. If it finds that the organization of the district would not be beneficial to the real property in the district or to the public interest, it shall enter its judgment refusing to establish the district.
  2. The district may embrace a portion of any city or incorporated town that would be specially benefited by the making of the improvement, but the territory outside of the town and within the district must exceed in area that portion which is within the city or incorporated town.
  3. Any petitioner or any opponent of the petition may appeal from the judgment of the county court creating or refusing to create the district; but the appeal must be taken within thirty (30) days. If no appeal is taken within that time, the judgment creating the district shall be final and conclusive upon all persons.
  4. Any judgment creating a district shall appoint three (3) commissioners, who shall be owners of real property within the district. The judgment shall give a name to the district which shall be descriptive of its purpose, and it shall also receive a number to prevent its being confused with other districts for similar purposes.

History. Acts 1938 (Ex. Sess.), No. 23, § 2; A.S.A. 1947, § 76-1403.

14-318-106. District as body corporate.

Each district shall be a body corporate with power to sue and to be sued, and it shall have a corporate seal.

History. Acts 1938 (Ex. Sess.), No. 23, § 3; A.S.A. 1947, § 76-1404.

14-318-107. Commissioners' oath.

Within thirty (30) days after their appointment, the commissioners shall take and file their oath of office with the county clerk. In this oath they shall swear that they will support the Constitution of the United States and the Constitution of the State of Arkansas, that they will discharge faithfully their duties as commissioners, and that they will not be interested, directly or indirectly, in any contract let by the board. Any commissioner failing to file such oath within this period shall be deemed to have declined the office. The county court shall appoint some property holder as his successor, who shall qualify in like manner within a like time.

History. Acts 1938 (Ex. Sess.), No. 23, § 3; A.S.A. 1947, § 76-1404.

14-318-108. Board organization — Vacancy.

  1. The board shall organize by electing one (1) of its members chairman, and it shall select a secretary. It may also employ such agents, servants, engineers, and attorneys as it deems best and fix their compensation and the compensation of the secretary.
  2. In case of a vacancy on the board of commissioners, after the commissioners have organized, the remaining commissioners shall select the successor, who shall be a property holder in the district. The person so selected shall qualify by taking the oath of office as prescribed for the original commissioners.

History. Acts 1938 (Ex. Sess.), No. 23, § 3; A.S.A. 1947, § 76-1404.

14-318-109. Liability of board members.

No member of the board of improvement shall be liable for any damages unless it shall be made to appear that he had acted with a corrupt and malicious intent.

History. Acts 1938 (Ex. Sess.), No. 23, § 13; A.S.A. 1947, § 76-1414.

14-318-110. Depository.

The board shall also select some solvent bank or trust company as the depository of its funds, exacting of the depository a bond in an amount equal to the amount of money likely to come into its hands.

History. Acts 1938 (Ex. Sess.), No. 23, § 3; A.S.A. 1947, § 76-1404.

14-318-111. Eminent domain.

All districts organized under this chapter shall have the right of eminent domain in order that they may carry out the purposes of their creation. This right shall be exercised in the same manner as in the case of railroads, telegraph, and telephone companies, but shall be without the necessity of making a deposit of money before entering into possession of the property condemned.

History. Acts 1938 (Ex. Sess.), No. 23, § 20; A.S.A. 1947, § 76-1421.

Cross References. Eminent domain by railroad, telegraph, and telephone companies, § 18-15-1201 et seq.

14-318-112. Procurement and filing of plans for rights-of-way.

Immediately after their qualifications, the commissioners shall procure from the Government of the United States, or any of its agencies, the plans for the improvement. They shall file the plans with the county clerk along with a statement of the obligation which the district will assume for the procurement of the necessary rights-of-way, and for paying all damages that may be caused by the making of the improvement.

History. Acts 1938 (Ex. Sess.), No. 23, § 4; A.S.A. 1947, § 76-1405.

14-318-113. Assessor.

  1. The commissioners shall thereupon appoint an assessor to assess the benefits which will accrue to the real property within the district from the making of the improvement and the damages which will be caused thereby. The assessor shall take an oath that he will well and truly assess all benefits that will accrue to the landowners of the district by the making of the proposed improvement.
  2. He shall thereupon proceed to assess the lands within the district, and shall inscribe in a book each lot, block, and tract of land within the district. He shall put opposite each tract the assessment of the benefits and damages which will accrue to the lots, blocks, and tracts of land by reason of the improvement.
  3. His assessment shall embrace not merely the lands, but all railroads, tramroads, telegraph, telephone, and pipelines and other improvements on real property that will be benefited by the making of the improvement.
  4. The assessor shall place opposite each tract the name of the supposed owner as shown by the last county assessment. However, a mistake in the name shall not vitiate the assessment, and the assessor may correct errors which occur in the county assessment list.
  5. The assessor shall also assess all damages that will accrue to any landowner by reason of the proposed improvement, including all injury to lands taken or damaged. Where the assessor returns no such damages as to any tract or parcel of land, it shall be deemed a finding by him that no damages will be sustained.
  6. When the board shall make the levy of taxes, it shall be the duty of the assessor to extend the amount levied and set the amount opposite each benefit assessed in a column marked “Annual Collection.”
  7. The assessor shall hold his office at the pleasure of the board, which can fill any vacancy in the position of assessor.

History. Acts 1938 (Ex. Sess.), No. 23, §§ 4, 9; A.S.A. 1947, No. 23, §§ 76-1405, 76-1410.

14-318-114. Duties of the county clerk and the collector.

  1. It shall be the duty of the county clerk of the county to extend the taxes annually upon the tax books of the county until the levy is exhausted. For his services he shall receive a commission of one-half of one percent (½ of 1%) of the amount so extended.
  2. It shall then be the duty of the collector to collect each year the taxes extended upon the book along with the other taxes until the entire levy is exhausted. For his services in making such collections, the collector shall receive a commission of one-half of one percent (½ of 1%), and the taxes shall by the collector be paid over to the depository of the district at the same time that he pays over the county funds.
  3. If any collector shall fail to collect the improvement tax along with the other taxes, he shall be subject to a penalty of twenty-five dollars ($25.00) for each instance in which he shall collect from an individual the other taxes and omit the improvement tax, unless the improvement tax has been enjoined by a court of competent jurisdiction to be recovered in a suit brought by the commissioners to the use of the district; and the county clerk shall be subject to a like penalty for each tract of land that he omits from the tax books.

History. Acts 1938 (Ex. Sess.), No. 23, § 9; A.S.A. 1947, § 76-1410.

14-318-115. Assessment order — Lien — Remedy.

  1. The board of commissioners of the district shall, at the same time that the assessment of benefits is equalized or at any time thereafter, enter upon its records an order, which shall have all the force of a judgment, providing that there shall be assessed upon the real property of the district a tax sufficient to pay the estimated cost of the improvement with ten percent (10%) added for unforeseen contingencies. This tax is to be paid by the real property in the district in proportion to the amount of the assessment of benefits thereon and is to be paid in annual installments, payable not to exceed ten percent (10%) for any one (1) year, as provided in the order.
  2. The tax so levied shall be a lien upon all the real property in the district from the time the tax is levied and shall be entitled to preference over all demands, executions, encumbrances, or liens whensoever created. It shall continue until the assessment, with any penalty and costs that may accrue thereon, shall have been paid.
  3. The remedy against the levy of taxes shall be by suit in chancery, and the suit must be brought within thirty (30) days from the time that the levy was made. On such appeal the presumption shall be in favor of the legality of the tax.
  4. The levy shall be only for an amount sufficient to pay for the rights-of-way required for the improvement and to pay all damages caused by its construction or to pay the bonds which may be issued by the district with the interest thereon and its necessary operating expenses.

History. Acts 1938 (Ex. Sess.), No. 23, § 7; A.S.A. 1947, § 76-1408.

14-318-116. Filing assessments — Notice — Hearing.

  1. The assessment shall be filed with the county clerk of the county and the secretary of the board shall thereupon give notice of its filing by publication once a week for two (2) weeks in a newspaper published and having a bona fide circulation in the county.
  2. This notice may be in the following form:
  3. On the day named in the notice, it shall be the duty of the commissioners and assessor to meet together at the place named as a board of equalization and to hear all complaints against the assessment and to equalize and adjust the assessment. Their determination shall be final unless suit is brought in the chancery court within thirty (30) days to review it.

“Notice is hereby given that the assessment of benefits and damages of District Number has been filed in the office of the County Clerk of County, and where it is open to inspection. All persons wishing to be heard on the assessment will be heard by the commissioners and the assessor of the district between the hours of 10 a. m. and 4 p. m., at , in the City of , Arkansas, on the day of , 19 . Secretary.”

Click to view form.

History. Acts 1938 (Ex. Sess.), No. 23, § 5; A.S.A. 1947, § 76-1406.

14-318-117. Interest on assessment.

The assessment of the benefits shall bear interest at the rate of six percent (6%) per annum from the time it is equalized, but the interest need not be calculated until it is necessary to do so to avoid exceeding the total amount of benefits and interest, or the interest may be first collected.

History. Acts 1938 (Ex. Sess.), No. 23, § 8; A.S.A. 1947, § 76-1409.

14-318-118. Reassessment of benefits.

The commissioners may, not more often than once a year, require the assessor to reassess the benefits in the district. In the event the district shall have incurred any indebtedness or issued bonds, the total amount of assessed benefits shall never be diminished. The reassessment shall be made, advertised, and equalized in the same manner as provided herein for making the original assessment.

History. Acts 1938 (Ex. Sess.), No. 23, § 6; A.S.A. 1947, § 76-1407.

14-318-119. Time for payment of tax — Collection of delinquent taxes — Right of redemption.

  1. All taxes levied under the terms of this chapter shall be payable between the first Monday in January and April 10 of each year. If any taxes levied by the board in pursuance to this chapter are not paid at maturity, the collector shall not embrace the taxes in the taxes for which he shall sell the lands, but he shall report the delinquencies to the board of commissioners of the district, who shall add to the amount of the tax a penalty of twenty-five percent (25%).
  2. The board of commissioners shall enforce the collection by chancery proceedings in the chancery court of the county, in the manner provided by §§ 14-121-426 — 14-121-432, but the owner of property sold for taxes thereunder shall have the right to redeem it at any time within two (2) years from the time when his lands have been stricken off by the commissioner making the sale.

History. Acts 1938 (Ex. Sess.), No. 23, § 11; A.S.A. 1947, § 76-1412.

14-318-120. Payment of improvement taxes with general taxes.

No property owner shall be allowed to pay his general taxes without paying the improvement taxes herein provided for.

History. Acts 1938 (Ex. Sess.), No. 23, § 9; A.S.A. 1947, § 76-1410.

14-318-121. Additional levies in event of deficiency — Mandamus.

  1. If the tax first levied shall prove insufficient to pay the bonds, both the principal and interest, issued by the board of commissioners on account of such improvement, as hereinafter provided, as the bonds shall become due and payable, the board shall from time to time make further levies upon the property previously assessed for sums sufficient to complete the improvement and to pay such bonds and interest. Any such levies shall be extended and collected in the same manner as the first levy.
  2. However, the total levy shall in no case exceed the value of the benefits assessed on the property with interest, and the performance of the duties may be enforced by mandamus at the instance of any person or board interested.

History. Acts 1938 (Ex. Sess.), No. 23, § 10; A.S.A. 1947, § 76-1411.

Research References

Ark. L. Rev.

Mandamus to Review Administrative Action in Arkansas, 11 Ark. L. Rev. 353.

14-318-122. Commissioners' warrant.

  1. The depository shall pay out no money save upon the order of the board and upon a warrant signed by at least two (2) of the commissioners.
  2. Every warrant shall state upon its face to whom, the amount, and the purpose for which it is issued.
  3. All warrants shall be dated and shall be numbered consecutively, in a record to be kept by the board of the number and amount of each. No warrant shall be paid unless there are in the treasury funds enough to pay all outstanding warrants bearing a lower number.
  4. No warrant shall be increased by reason of any depreciation in the market value thereof, nor shall any contract or warrant be made payable or paid in anything but currency.

History. Acts 1938 (Ex. Sess.), No. 23, § 12; A.S.A. 1947, § 76-1413.

14-318-123. Negotiable notes or bonds — Preliminary expenses and work.

  1. In order to meet preliminary expenses and to do the work, the board may issue the negotiable notes or bonds of the district, signed by the members of the board and bearing a rate of interest not exceeding six percent (6%) per annum. The board may pledge and mortgage all assessment of benefits for the payment thereof.
  2. No bonds issued under the terms of this chapter shall run for more than thirty (30) years, and all issues of bonds may be divided so that a portion thereof may mature each year as the assessments are collected or they may all be made payable at the same time with proper provisions for a sinking fund.
  3. The bonds shall not be sold for less than par value without the unanimous vote of the board.

History. Acts 1938 (Ex. Sess.), No. 23, § 14; A.S.A. 1947, § 76-1415.

14-318-124. Payment of preliminary expenses after failure to make improvement.

In case for any reason the improvement contemplated by any district organized under this chapter is not made, the preliminary expense shall be a first lien upon all the land in the district and shall be paid by a levy of a tax thereon upon the assessed value for county and state taxation, which levy shall be made by the chancery court of the county and shall be collected by a receiver to be appointed by the court.

History. Acts 1938 (Ex. Sess.), No. 23, § 18; A.S.A. 1947, § 76-1419.

14-318-125. Misuse of bonds or money arising from sale of bonds — Penalties.

  1. It shall not be lawful for the board of the district or any officer, member, or agent thereof to pledge or deposit any bond or coupon issued under the provisions of this chapter as security for payment of any borrowed money or any debt or obligation of the board or any person, firm, or corporation whatever; nor shall it be lawful for the board of the district or any officer, member, or agent thereof to appropriate or use any money arising from the sale of bonds authorized to be issued under this chapter to any use or purpose whatever other than is herein specified and expressly directed.
  2. Any officer, member, or agent of the board of the district who shall violate any of the provisions of this section shall be deemed guilty of a felony and upon conviction shall be punished by imprisonment in the penitentiary for not less than one (1) year nor more than five (5) years.

History. Acts 1938 (Ex. Sess.), No. 23, § 16; A.S.A. 1947, § 76-1417.

14-318-126. Priority of actions — Appeals.

All cases involving the validity of the districts or the assessments of benefits and all suits to foreclose the lien of taxes shall be deemed matters of public interest and shall be advanced and disposed of at the earliest possible moment. All appeals therefrom must be taken and perfected within thirty (30) days.

History. Acts 1938 (Ex. Sess.), No. 23, § 17; A.S.A. 1947, § 76-1418.

Chapter 319 County Bridge Improvement Districts

Effective Dates. Acts 1873, No. 31, § 30: effective on passage.

Acts 1927, No. 38, § 3: approved Mar. 1, 1927. Emergency clause provided: “It is hereby ascertained and declared that by reason of the want of repairs upon numerous bridges constructed by bridge improvement districts, and by reason of the defective condition of the approaches thereto, the safety of the traveling public is imperiled, and it is therefore ascertained and declared that an emergency exists, requiring that this act be put into immediate operation for the public safety, and it is therefore enacted that this act shall take effect and be in force immediately upon its passage.”

Acts 1935, No. 125, § 2: Mar. 19, 1935. Emergency declared.

Acts 1938 (Ex. Sess.), No. 3, § 3: Mar. 25, 1938. Emergency clause provided: “Whereas, the continued operations of toll bridges in this State is forcing a great amount of tourist trade and traffic from the State of Arkansas, and

“Whereas, the Federal Government refuses to lend Federal aid on any road leading to a toll bridge, and

“Whereas, the collection of tolls is working a hardship on the citizens of this State, and

“Whereas, the State of Arkansas needs the additional revenue that would accrue from a large tourist traffic, in order to meet Federal funds in the building of roads, an emergency is therefore declared and this act shall be in full force and effect from and after its passage and approval.”

Acts 1939 (Ex. Sess.), No. 5, § 3: approved Aug. 18, 1939. Emergency clause provided: “Many Counties now have adopted salary bills for its officers including Circuit Clerks and these require the prompt collection, payment and settlement of all costs, fees and emoluments of office by such Clerk, and the institution and pending of legal proceedings in the Courts of this state for the collection of delinquent assessments in Bridge Improvement District cases necessitate the issuance of summons against the defendants in such proceedings and require the Circuit Clerk to issue such original summons separately against numerous defendants, and it is therefore found and declared that an emergency exists and this act shall be in force from and after its passage and shall apply to all such pending suits.”

14-319-101. Powers of county court — Organization of improvement districts.

  1. When a bridge is necessary over any stream, the county court is authorized to contract for the building and keeping the bridge in repair, and, when it shall be necessary, over any stream which divides one (1) county from another, the county court of each county shall join in the agreement and make contracts for building and keeping the bridge in repair. The cost thereof shall be defrayed by both counties, in such proportions as the county courts of the counties may agree upon, having due regard for the assessed value of the real estate and personal property in and the benefits to accrue to the people of each county.
  2. When any bridge may be deemed necessary, authority is given to organize a bridge improvement district. The bridge improvement district, when organized, may issue bonds and proceed to sell and dispose of the bonds and construct the bridge. In the organization of the bridge improvement district, the district shall be organized in the manner and under the laws of the State of Arkansas as now provided for the organization of drainage districts, and all the procedures now provided by law for the organization of drainage districts shall apply to the organization of the bridge improvement district as fully and completely as if set out in this chapter.

History. Acts 1873, No. 31, § 16, p. 53; 1907, No. 44, § 1, p. 110; C. & M. Dig., § 824; Acts 1935, No. 125, § 1; Pope's Dig., § 961; A.S.A. 1947, § 76-1501.

Case Notes

Interstate Agreements.

Where portion of bridge that was across and over state lines was in Arkansas and subject to the jurisdiction of the county court and the other portion was in other state subject to its jurisdiction and both parties had entered into contracts with each other and bridge company to maintain the roadways of the bridge continuously open for the use of the public, the county court could not order the dismantling of its portion of the bridge without notice to the other party to the contract with an opportunity for a hearing on the right to destroy. City of Memphis v. Ingram, 195 F.2d 338 (8th Cir. 1952).

Cited: Board of Dirs. v. Collier, 104 Ark. 425, 149 S.W. 66 (1912); Mullins v. City of Little Rock, 113 Ark. 590, 168 S.W. 1074 (1914).

14-319-102. Bonds — Default.

    1. Any district organized under the laws of this state or created by special act for the purpose of building a bridge over a nonnavigable stream may issue its negotiable bonds bearing interest at a rate of interest not exceeding six percent (6%) per annum, for the purpose of raising money with which to construct approaches to the bridges, or to make repairs on the approaches and bridges, or to fund its debts, or any part thereof, or for any or all of these purposes.
    2. To secure the bonds, it may make a pledge and mortgage of its assessment of benefits and revenues.
    1. If any bond or interest coupon on any bond issued by the board of commissioners or directors of the district is not paid within thirty (30) days after its maturity, it shall be the duty of any court of competent jurisdiction, on the application of the holder of any such bond or interest coupon so overdue, or of the trustee named in the pledge or mortgage made for the security of the bonds, to appoint a receiver to collect the taxes of the bridge improvement district and an assessor to reassess the benefits, if necessary.
    2. The proceeds of the taxes and collection shall be applied, after the payment of costs, first to the overdue interest and then to the payment pro rata of all bonds issued by the board which are then due and payable.
    3. The receiver may be directed by suit to foreclose the lien of taxes on the lands, and the suits so brought by the receiver shall be conducted in all matters as suits by the board, as provided in the act creating the district, and with like effect.
    4. The receiver shall be authorized to have the taxes collected, as far as possible, by spreading the taxes upon the tax books of the county or counties where the district is situated.
    5. The decrees and deeds in such suits shall have the same presumption in their favor as in the case of suits brought by the board.
    6. When all of the delinquent sums shall have been paid, the receiver shall be discharged and the affairs of the district conducted by its board of commissioners or directors.

History. Acts 1927, No. 38, §§ 1, 2; Pope's Dig., §§ 6533, 6534; A.S.A. 1947, §§ 76-1502, 76-1503.

14-319-103. Suits to collect taxes — Costs and fees for summons.

  1. Wherever legal proceedings are commenced or are now pending against property owners who have failed to pay required assessments made against them in any bridge improvement district in this state and summons is or has been issued against the property owners, the circuit clerk issuing the summons shall be required to collect and account for the cost, fees, and the taxes now provided by law for each and every original summons so issued, whether the summons is against one (1) defendant or several defendants.
  2. As used in this section, “original summons” includes every summons issued by the clerk against one (1) defendant or several defendants in the proceedings, whether the summons is a duplicate summons issued for the officer to make his return for service upon, and includes the name of only one (1) or all defendants and whether issued concurrently or consecutively, provided that the original summons shall not be construed to include the copy to be left with the defendant or posted upon his property by the officer serving it.

History. Acts 1939 (Ex. Sess.), No. 5, §§ 1, 2; A.S.A. 1947, §§ 76-1504, 76-1505.

Publisher's Notes. As to the duties of the circuit clerk, see § 14-86-1001.

Cross References. Suit for collection of taxes, § 14-86-1208.

14-319-104. Unencumbered bridges — Prohibition on collection of tolls.

  1. All bridges in districts where there has been sufficient money collected to pay all outstanding lawful indebtedness of the district are declared free, and they shall become the sole property of the State of Arkansas and shall be maintained by the Arkansas Department of Transportation as is now provided by law.
  2. It shall be unlawful for the commissioners of any bridge district in this state to collect any tolls for the use of any bridge where the bridge district has sufficient money already collected to pay all the lawful outstanding indebtedness of the bridge district.
  3. Any commissioner, agent, or employee of any bridge district in this state which has sufficient tolls collected to pay all outstanding lawful indebtedness of the district who shall collect any tolls in violation of the provisions of this section shall be deemed guilty of a misdemeanor and on conviction shall be punished by a fine not to exceed one hundred dollars ($100). Each day on which tolls are unlawfully collected shall constitute a separate offense.

History. Acts 1938 (Ex. Sess.), No. 3, §§ 1-3; A.S.A. 1947, §§ 76-1506 — 76-1508; Acts 2017, No. 707, § 30.

Amendments. The 2017 amendment substituted “Arkansas Department of Transportation” for “Arkansas State Highway and Transportation Department” in (a).

Case Notes

Surplus Funds.

Where state took over bridge built by district and the bridge was maintained, operated, and controlled by the State Highway and Transportation Department as part of the highway system, surplus funds held by the commissioners of the district in excess of district's indebtedness was properly ordered covered into the state treasury, since state had assumed the obligation of maintaining and operating the bridge, obligation was being performed and it must be assumed would continue to be performed, the return of the tolls would be impossible, and surplus was a part of the assets of the district to which the state took title; but order should not limit use of fund to maintenance of bridge, there being a presumption that the state will perform its obligation to maintain the bridge out of funds appropriated and available for that purpose. Red River Bridge Dist. v. State ex rel. State Hwy. Comm'n, 201 Ark. 365, 144 S.W.2d 723 (1940).

14-319-105. Title to bridges and property of bridge improvement districts vested in State Highway Commission — Prior vesting ratified.

  1. The titles of the bridges and to all other real, personal, and mixed properties of bridge improvement districts which either are no longer under control by their commissioners by reason of the assumption heretofore of both the maintenance and control of their bridges by the State Highway Commission pursuant to the provisions of § 27-67-101, § 27-67-201, or any other law, or which have heretofore fully discharged the principal and interest of their bonds and other indebtedness in part to the state aid received by them are divested out of the districts and of any political subdivisions of the state to which title may have nominally passed and fully and finally vested in the State Highway Commission. All such divestitures and vestings of title as may have heretofore occurred, either actually or ostensibly by reason of the assumption of both the maintenance and control of the bridges by the State Highway Commission, are fully ratified and confirmed as of the dates when they respectively occurred or ostensibly occurred. But all such divestitures and vestings, both actual or nominal and prospective, shall not extend to the titles to lands within the districts which were acquired by the districts through foreclosure of their liens thereon and were not subsequently disposed of, nor to the liens for delinquent assessments due the districts, and all such titles to lands so acquired and all such delinquent assessments are fully and finally cancelled.
  2. All funds on hand with the districts shall be paid over to the Treasurer of State for deposit as a nonrevenue receipt into the fund from which the Arkansas Department of Transportation is maintained, and there used for the same purposes for which other moneys in the fund may be used.

History. Acts 1953, No. 147, § 1; A.S.A. 1947, § 76-1523; Acts 2017, No. 707, § 31.

Amendments. The 2017 amendment, in (b), deleted “promptly” preceding “paid” and substituted “Arkansas Department of Transportation” for “Arkansas State Highway and Transportation Department”.

Chapter 320 Interstate Bridge Districts

Effective Dates. Acts 1951, No. 381, § 23: Mar. 20, 1951. Emergency clause provided: “Since the demands of transportation over and across interstate bridges are such that the facilities to be obtained through this act are of immediate need, an emergency exists within the meaning of the constitution, this act being necessary for the immediate preservation of the public health, peace and safety, and this act shall, therefore, be in full force and effect from and after its passage and approval by the Governor.”

14-320-101. Scope.

The terms and provisions of this chapter shall only be applicable for the creation of bridge districts for the construction, operation, and maintenance of interstate bridges and approaches thereto over and across the navigable rivers where the river forms a state boundary. Bridges to be constructed under the terms and provisions of this chapter can be constructed within or without the boundaries or territorial limits of the district.

History. Acts 1951, No. 381, § 20; A.S.A. 1947, § 76-2020.

14-320-102. Board of commissioners.

  1. When the circuit court has established the bridge district, it shall appoint five (5) owners of real property within the district to act as commissioners.
  2. Each commissioner shall take the oath of office required by the Arkansas Constitution, Article 19, Section 20, and shall also swear that he will not, directly or indirectly, be interested in any contract made by the board of commissioners and that he will well and truly assess all benefits resulting from the improvement. Any commissioner failing to take the oath within thirty (30) days after his appointment shall be deemed to have declined, and his place shall be filled by the circuit court, if in session, if not, by the circuit judge.
  3. All vacancies on the board shall be filled by the circuit court or the circuit judge in vacation; but if a majority, in number or value, of the owners of real property in the district shall petition for the appointment of particular persons as commissioners, it shall be the duty of the circuit court or circuit judge to appoint the persons so designated.
  4. The board shall select from its members a chairman, vice chairman, secretary, and treasurer. A majority of the members of the board shall constitute a quorum.
  5. The circuit judge shall remove any member of the board upon petition signed by a majority, in number or value, of the owners of real property in the district.
  6. The commissioners herein provided for shall receive the sum of ten dollars ($10.00) each for every day or fraction thereof in which they are called upon to attend meetings of the board, together with their necessary traveling expenses.

History. Acts 1951, No. 381, §§ 3, 4; A.S.A. 1947, §§ 76-2003, 76-2004.

14-320-103. Employment of personnel.

The board of commissioners shall have the power to employ engineers, attorneys, auditors, manager, or superintendent, and such other employees as may be necessary for the orderly functioning of the district and to fix their respective compensation.

History. Acts 1951, No. 381, § 5; A.S.A. 1947, § 76-2005.

14-320-104. Plans — Map and specifications.

  1. As soon as the board of commissioners shall have formed plans for the bridge and the approaches thereto, and shall have ascertained the cost thereof, it shall file the plans with the circuit clerk.
  2. The plans shall be accompanied by a map showing the location of the bridge and the approaches thereto, together with specifications fully describing the construction and character of the improvement to be made.

History. Acts 1951, No. 381, § 6; A.S.A. 1947, § 76-2006.

14-320-105. Petition for district establishment — Contents and signatures.

  1. When twenty-five (25) or more owners of real property within a proposed district shall petition the circuit court of the county in which the largest portion of the lands of the proposed district are situated to establish a bridge district to construct, maintain, and operate an interstate bridge and the approaches thereto embracing their property, the petition describing the region or area to be embraced within the district, and describing generally the location of the bridge, the proposed plan of financing the construction, maintenance, and operation of the bridge, together with a general idea of its character and expenses, accompanied by a certificate or resolution from the State Highway Commission showing the need and necessity for the construction of the bridge, then it shall be the duty of the circuit court to enter upon its records an order fixing a day and date for a hearing on the petition to determine whether or not the petition should be granted or denied.
  2. The petitions provided for herein may be signed by any person, firm, or corporation owning real property therein. Guardians may sign for their wards, and trustees, executors, and administrators may sign for the estates they represent.

History. Acts 1951, No. 381, §§ 1, 2; A.S.A. 1947, §§ 76-2001, 76-2002.

14-320-106. Petition — Notice, hearing, and appeal.

  1. The circuit clerk shall thereupon give notice by publication for two (2) weeks in some newspaper published and having a general circulation in the counties within which the lands of the proposed district are situated, calling upon all persons owning property therein to appear before the court on the day and date fixed by the court to show cause in favor of or against the establishment of the district.
  2. At the time named in the notice, the circuit court, or the judge thereof in vacation, shall meet and hear all property owners within the proposed district who wish to appear and advocate or resist the establishment of the district. If it is deemed to the best interest of the owners of real property within the district that the district shall be created under the terms of this chapter, the court shall enter an order of record establishing the real property as an interstate bridge district which shall be subject to all the terms and provisions of this chapter.
  3. If upon the hearing provided for in subsection (b) of this section petitions are presented to the circuit court signed by a majority, either in number or in value, of the owners of real property within the proposed district praying that the improvement be made, it shall thereupon be the duty of the circuit court to make an order establishing the district without further inquiry. If no such petitions are filed, it shall be the duty of the circuit court to investigate as provided in the preceding section and to establish the district if it is of the opinion that the establishment thereof will be to the advantage of the owners of real property therein.
  4. Any landowner feeling himself aggrieved by the order of the court shall have the right of appeal within thirty (30) days from the date the order was entered.

History. Acts 1951, No. 381, §§ 1, 2; A.S.A. 1947, §§ 76-2001, 76-2002.

14-320-107. Assessment of lands — Procedure.

  1. The board of commissioners shall proceed to assess the lands within the district and shall inscribe in a book the description of each tract, piece, and parcel of land and assess the benefits to accrue to each tract, piece, and parcel of land by reason of such improvement and shall enter the assessment of benefits opposite the description thereof.
  2. The assessment shall embrace not merely the lands, but all public and corporate roads, railroads, tramroads, and other improvements on the lands that will be benefited by the improvement.
  3. They shall place opposite each tract, piece, and parcel of land the supposed name of the owner as shown by the last general assessment, but a mistake in name shall not vitiate the assessment. They may correct evident errors which occur in the county assessment list.

History. Acts 1951, No. 381, § 7; A.S.A. 1947, § 76-2007.

14-320-108. Notice and filing of assessment — Hearing and appeal.

  1. When the assessment of benefits is completed, the board of commissioners shall subscribe the assessment and file it with the circuit clerk where it shall be kept and preserved as a public record.
  2. Upon the filing of the assessment of benefits, the circuit clerk shall give notice of filing by publication for two (2) weeks in some newspaper having a bona fide circulation in the counties in which the lands of the district are situated.
  3. The notice shall give a description of the lands assessed, and the owners of the lands may appear, if they desire, before the circuit court on a day therein named and present complaints, if they have any, against the assessment of any lands in the district.
  4. Any owner of real property within the district who conceives himself to be aggrieved by the assessment of benefits or deems the assessment of any lands to be inequitable shall present his complaint to the circuit court at the first regular, adjourned, or special session held more than ten (10) days after publication of the notice. The circuit court shall consider the complaint and enter its findings thereon, either confirming the assessment or increasing or diminishing it.
  5. Its findings shall have the force and effect of a judgment, from which an appeal may be taken within twenty (20) days, either by the property owners or by the board of commissioners of the district.

History. Acts 1951, No. 381, § 8; A.S.A. 1947, § 76-2008.

14-320-109. Paying the assessment.

  1. When the assessment of benefits has been made and filed, as provided herein, the property owner shall have the right to pay such assessment of benefits in full within sixty (60) days thereafter, but, if he does not avail himself of this privilege, the assessment of benefits shall bear interest at the rate of six percent (6%) per annum.
  2. The interest need not be computed until necessary to be sure the collections have not exceeded the total amount of the benefits so levied.

History. Acts 1951, No. 381, § 8; A.S.A. 1947, § 76-2008.

14-320-110. Determination of construction costs.

  1. The circuit court, in determining the question of whether the cost of the improvement exceeds the benefits, shall be required to take into consideration only the amount that the district will be required to pay for the cost of the improvement. It shall credit against the total cost of the bridge and approaches thereto any and all grants or allocations of money made by the federal government through the Federal Highway Administration, grants of state aid made by the State Highway Commission, state aid made by the state or highway commission of any adjoining state, aid and grants from any county, city, or town of this state or adjoining state, and the annual amounts to be received by the district from tolls collected as provided in this chapter, and other financial assistance the district may receive from any other sources whatsoever.
  2. The interest to accrue on account of the issuance of bonds by the district shall not be construed as a part of the cost of construction.

History. Acts 1951, No. 381, § 9; A.S.A. 1947, § 76-2009.

14-320-111. Levy of tax.

    1. The circuit court shall, at the time the assessment of benefits is filed or at any subsequent time when called upon by the commissioners of the district, enter upon its records an order which shall have the force of a judgment, providing that there shall be assessed upon the real property of the district a tax sufficient to pay the district's proportionate part of the estimated cost of the improvement with ten percent (10%) added for unforeseen contingencies.
    2. This tax shall be paid by the real property owners in the district in the proportion to the amount of the assessment of benefits thereon and shall be paid in annual installments not to exceed twenty-five percent (25%) for any one (1) year as provided in the order.
    3. The tax so levied shall be a lien upon all the real property in the district from the time the tax is levied by the circuit court and shall be entitled to preference over all demands, executions, incumbrances, or liens whensoever created and shall continue until the assessment with penalty and costs that may accrue thereon have been paid.
    4. The remedy against the assessment of taxes shall be by appeal, and the appeal must be taken within twenty (20) days from the time the assessment has been made by the circuit court, and on appeal the presumption shall be in favor of the validity of the tax.
  1. If the commissioners do not deem it to the advantage of the district to proceed immediately with the construction of the improvement upon the filing and confirmation of the assessment of benefits, then they may report to the circuit court the rate of taxation necessary to be levied to pay the preliminary expenses of the district. They shall petition the court to continue the actual construction of the improvement to a more advantageous time, and thereupon it shall be the duty of the court to make a levy of taxes upon the real property in the district sufficient to pay the preliminary expenses with ten percent (10%) added for unforeseen contingencies, and shall continue the actual construction of the improvement to a more advantageous time.

History. Acts 1951, No. 381, § 10; A.S.A. 1947, § 76-2010.

14-320-112. Collection of taxes — Delinquency.

  1. The amount of taxes provided for in this chapter shall be annually extended upon the tax books of the county by the county clerk. The tax shall be collected by the collector of the county along with other taxes. For his services in making the collection, the collector shall receive the same compensation he now receives or may hereafter receive, as fixed by law, for the collection of state and county taxes. The taxes so collected shall be paid over by the collector to the board of commissioners of the district at the same time as he is required to make settlement with the county treasurer for general taxes.
  2. All taxes levied under the terms of this chapter shall be payable at the same time and in the same manner as state and county taxes. If any taxes levied by the circuit court in pursuance to this chapter are not paid as aforesaid, the collector shall certify the delinquents, together with a penalty of twenty-five percent (25%), to the clerk of the chancery court in the same manner as provided by §§ 14-86-1101, 14-86-1102, and 14-86-1104 — 14-86-1106 and acts amendatory thereto.
  3. The board of commissioners shall enforce the collection of delinquent tax, penalty, and costs by chancery proceedings in a court of the county in which the lands are situated in accordance with the same procedure as now prescribed for the foreclosure of delinquent taxes due drainage districts as set forth in §§ 14-121-426 — 14-121-432.

History. Acts 1951, No. 381, § 11; A.S.A. 1947, § 76-2011.

14-320-113. Additional tax levy.

If the tax first levied shall prove insufficient to complete the improvement or to pay the bonds, both principal and interest, issued by the board of commissioners for the improvement, as provided in this chapter, as the principal and interest shall become due and payable, then the board of commissioners shall from time to time report the amount of deficiency to the circuit court. It shall thereupon make levies upon the property previously assessed for sums sufficient to complete the improvement and to pay the bonds and interest in the same manner as the first levy.

History. Acts 1951, No. 381, § 12; A.S.A. 1947, § 76-2012.

14-320-114. Borrowing money — Bond issues.

In order to carry out the purposes for which the district is organized and created, the board of commissioners may borrow money at a rate of interest not exceeding six percent (6%) per annum and issue negotiable bonds therefor signed by the chairman or vice chairman and secretary when so authorized by the board of commissioners and may pledge all assessments of benefits for the repayment thereof. No bonds issued under the terms of this chapter shall run for more than thirty (30) years, and all issues of bonds may be divided so that a portion thereof may mature each year as the assessments are collected.

History. Acts 1951, No. 381, § 13; A.S.A. 1947, § 76-2013.

14-320-115. Lien of bonds — Tax levy — Default.

  1. All bonds issued by the board of commissioners shall be secured by a lien on all lands, railroads, and tramroads in the district. The board of commissioners shall be required to levy a tax annually and to collect the tax under the provisions of this chapter so long as it is necessary and required to pay any bonds issued or obligations contracted under the authority granted in this subchapter. The making of such levy of tax on the assessment of benefits and collection thereof may be enforced by mandamus.
  2. If any bond or interest coupon on any bond issued by the board of commissioners is not paid within thirty (30) days after its maturity, it shall be the duty of the chancery court of the proper county, upon application of any holder of the bond or interest coupon so overdue and unpaid, to appoint a receiver or to appoint the board of commissioners as receiver of the court to collect the taxes aforesaid. The proceeds of the taxes so collected shall be applied after payment of cost, first to the overdue interest and then to the payment, pro rata, of all bonds issued by the board of commissioners which are then due and payable. The receiver or board of commissioners may be directed by suit to foreclose the lien of the taxes on the lands, and the suits so brought by the receiver or board of commissioners shall be conducted in all matters as suits are conducted as hereinbefore provided and with like effect. The decrees and deeds in this chapter shall have the same presumption in their favor. However, when all sums have been paid, the receiver or board of commissioners shall be discharged as the receiver, and the affairs of the district shall thereafter be conducted by the board of commissioners as provided in this chapter.

History. Acts 1951, No. 381, § 14; A.S.A. 1947, § 76-2014.

14-320-116. Revenue bonds — Tax levy when tolls insufficient.

  1. If the board of commissioners shall have ascertained that the construction, maintenance, and operation of the interstate bridge can be financed in whole or in part by the issuance of revenue bonds payable from the tolls so charged and collected, then the board of commissioners is given and granted the full power and authority to issue revenue bonds for the part or portion which can be so financed, the bonds to be payable over a period of not exceeding thirty (30) years, and shall bear interest at a rate not exceeding six percent (6%) per annum.
  2. To secure the payment of the revenue bonds, together with the interest thereon, the board of commissioners is granted the power and authority to pledge all or any part or portion of the tolls charged and collected or to be collected therefrom as hereinafter provided, and as required to do so in order to finance the bonds. The board of commissioners shall have the right to pledge all or any part or portion of the assessment of benefits as additional security in the event the tolls collected are insufficient to pay the principal and interest of the bonded indebtedness.
  3. If it becomes necessary in order to obtain proper financing of the construction of the bridge, the board of commissioners is granted the power and authority to enter into contracts with the bond-holders or the trustees of the bond issues to guarantee and underwrite the payment of the principal and interest on the bonded indebtedness, and to obligate the board of commissioners and the district to levy or cause to be levied a sufficient tax against the assessment of benefits if the tolls collected in any year shall be insufficient to fully pay off the principal and interest on the bonded debt.
  4. In the event the tolls charged and collected are insufficient to pay the principal and interest of the bonded debt as it matures, then the board of commissioners is required to file a petition in the circuit court setting out the deficiency. Thereupon, the court shall levy a tax of a sufficient amount to make up the deficit with ten percent (10%) added for unforeseen contingencies.
  5. The board of commissioners and the circuit court may be required by mandamus to levy the tax in any proceedings instituted by the trustee or trustees of the bondholders or any individual bond-holder who may hold any unpaid bond or interest coupon. The right to require a levy of tax against the assessment of benefits shall be a continuing right which may be exercised by the trustees or bond-holders until the full amount of the principal and interest of the bonded debt has been paid.

History. Acts 1951, No. 381, § 15; A.S.A. 1947, § 76-2015.

14-320-117. Applicability of federal law.

All interstate bridges shall be constructed under the terms and provisions of the “General Bridge Act of 1946” and any act amendatory thereto.

History. Acts 1951, No. 381, § 16; A.S.A. 1947, § 76-2016.

U.S. Code. The General Bridge Act, referred to in this section, is codified as 33 U.S.C. §§ 525-533.

14-320-118. Tolls — Transfer of bridge to state.

  1. The board of commissioners is granted the right and power to construct, operate, and maintain the bridge as a toll bridge. It shall have the power to fix and determine, subject to the terms and provisions of the General Bridge Act, the tolls to be charged for transit over the bridge for motor-propelled vehicles, animals, foot passengers, pipelines, or other persons, firms, or corporations using the bridge, and the rates so prescribed shall be the legal rate or rates demanded and received for the transit.
  2. The rates for tolls may be increased or decreased by the board of commissioners, subject however, to the terms and provisions of the General Bridge Act of Congress.
  3. The board of commissioners shall make an annual report of all tolls collected to the trustees representing the bond-holders and to the State Highway Commission. One (1) copy of the report shall be filed with the clerk of the circuit court of the county in which the bridge is located.
  4. When the bonded indebtedness and all claims and liabilities have been fully paid and discharged, the bridge shall become a free bridge, and the board of commissioners shall thereupon convey all of its right, title, and interest in the bridge to the State of Arkansas. Thereafter, the State Highway Commission shall maintain and operate the bridge as a part of its highway system.
  5. The tolls so charged and collected for the use of the bridge shall be used as follows:
    1. To the payment of reasonable cost of maintaining, repairing, and operating the bridge and approaches thereto under economical management;
    2. To the payment of the principal and interest on the bonded indebtedness; and
    3. The balance, if any, to be placed in a sinking fund to be used for future maintenance and operation and the retirement of bond indebtedness.

History. Acts 1951, No. 381, § 17; A.S.A. 1947, § 76-2017.

U.S. Code. The General Bridge Act, referred to herein, is codified as 33 U.S.C. §§ 525-533.

14-320-119. Contracts with federal government, highway commission, local governments, or other states.

  1. For the purpose of carrying into effect the objects and purposes of this chapter, the board of commissioners shall have full power and authority to:
    1. Negotiate and enter into contracts with the federal government or any of its agencies, the State Highway Commission, or the state highway commission of any adjoining state where the bridge may be located;
    2. To contract with any counties, cities, or towns of the State of Arkansas and any adjoining state whereby the district may receive financial aid in the construction, maintenance, and operation of the bridge and approaches thereto;
    3. To contract for the joint ownership thereof and the means and manner of operating and maintaining the bridge and approaches thereto.
  2. The powers herein granted to the board of commissioners shall be broad and liberal powers to carry out the purposes of this chapter.

History. Acts 1951, No. 381, § 18; A.S.A. 1947, § 76-2018.

14-320-120. Acquisition of real property — Eminent domain.

  1. The board of commissioners acting for and on behalf of the district shall have the right, power, and authority to purchase, hold, and possess real estate necessary for the purposes for which the district was organized. In addition thereto, the district organized under this chapter shall have the right of eminent domain.
  2. If condemnation proceedings become necessary, such proceedings shall be instituted and conducted in the same manner as now provided by § 14-91-104.

History. Acts 1951, No. 381, § 19; A.S.A. 1947, § 76-2019.

Chapter 321 Viaduct Improvement Districts

Effective Dates. Acts 1923 (1st Ex. Sess.), No. 21, § 9: Oct. 15, 1923. Emergency declared.

14-321-101. Scope.

This chapter shall apply to all improvement districts created for the construction of a free viaduct connecting with a bridge over a navigable river.

History. Acts 1923 (1st Ex. Sess.), No. 21, § 1; Pope's Dig., § 6541; A.S.A. 1947, § 76-1301.

14-321-102. Commissioners.

In all viaduct districts described in § 14-321-101, commissioners shall be elected in the manner provided by the laws applying to such districts respectively.

History. Acts 1923 (1st Ex. Sess.), No. 21, § 8; Pope's Dig., § 6548; A.S.A. 1947, § 76-1307.

14-321-103. Limitations on bond issue — Interest.

  1. In all the viaduct improvement districts described in § 14-321-101, limitations on bonds that may be issued by a district shall not apply to interest on any bonds or borrowed money.
  2. If bonds are issued before the construction work is completed, limitations on the issuance of bonds to a part of the total cost of construction shall apply to the estimated total cost of construction as estimated by the engineer for the district and approved by the commissioners at the time the bonds are issued. Bonds may be issued from time to time on revisions of the estimates.

History. Acts 1923 (1st Ex. Sess.), No. 21, § 2; Pope's Dig., § 6542; A.S.A. 1947.

14-321-104. Bonds sold for less than par when carrying lower interest rate.

If any viaduct improvement district described in § 14-321-101, where it is or may be provided by law that the interest on bonds issued by the district shall not exceed six percent (6%) per annum, nor the bonds be sold for less than par, bonds bearing a lower rate of interest may be issued by the district and sold at less than par, provided that the proceeds of the sale of the bonds issued by the district shall not be less than the proceeds of the sale of six percent (6%) bonds at par.

History. Acts 1923 (1st Ex. Sess.), No. 21, § 3; Pope's Dig., § 6543; A.S.A. 1947, § 76-1303.

14-321-105. Plans to be submitted to county court.

The commissioners of the viaduct improvement districts described in § 14-321-101 shall submit their plans for the improvement to the county court in the county in which the viaduct is to be situated for its approval or disapproval. Appeals from the order of the court may be taken by the commissioners for the district, or any interested property owner, and shall be perfected within thirty (30) days from the time the order is entered of record.

History. Acts 1923 (1st Ex. Sess.), No. 21, § 4; Pope's Dig., § 6544; A.S.A. 1947, § 76-1304.

Case Notes

Cited: Hiter v. Harahan Viaduct Imp. Dist., 165 Ark. 351, 264 S.W. 863 (1924).

14-321-106. Assessment of benefits.

The assessment of benefits in any viaduct improvement district described in § 14-321-101 shall be made according to the actual benefits the lands will realize from the making and maintenance of the improvement. The commissioners or assessors in the district, in making the assessment of benefits, shall not be required to make them in zones of any form, or proportion them in circular zones of any particular width with reference to the viaduct. However, the commissioners or assessors are not prohibited from making their assessment of benefits on the basis of zones circular or in other form, if, in their opinion, this is the best basis on which to ascertain and fix the amount of the benefits to the several tracts and parcels of land in the district.

History. Acts 1923 (1st Ex. Sess.), No. 21, § 5; Pope's Dig., § 6545; A.S.A. 1947, § 76-1305.

14-321-107. Land in different counties — Assessment hearings in respective counties.

In any viaduct improvement district described in § 14-321-101 embracing lands in more than one (1) county, the hearing on the assessment of benefits as they affect the lands in each county shall be had at a place in each county as set forth in the notices of the hearing on the assessment of benefits.

History. Acts 1923 (1st Ex. Sess.), No. 21, § 6; Pope's Dig., § 6546; A.S.A. 1947, § 76-1306.

Chapter 322 Improvement Districts For City Streets

Effective Dates. Acts 1971, No. 581, § 5: Apr. 6, 1971. Emergency clause provided: “It has been found and it is hereby declared by the General Assembly of the State of Arkansas that certain of the laws of this State pertaining to the establishment of street improvement districts of the type governed by the members of the governing body of the municipality involved (specifically, Act 251 of 1967 and Act 252 of 1967) are not in conformity; that this lack of conformity has resulted in the delay of essential street improvements; and that only by the immediate effectiveness of this Act may these street improvements be completed. Therefore, it is declared, for these reasons, that an emergency exists and this Act being essential for the preservation of the public peace, health and safety shall take effect and be in force from and after its passage and approval.”

14-322-101. Chapter supplemental.

The procedure prescribed herein for the establishment of improvement districts in municipalities of this state shall be supplemental to all other laws of this state with respect to the establishment of municipal improvement districts and shall not be construed to amend, repeal, or otherwise affect those laws.

History. Acts 1967, No. 251, § 9; A.S.A. 1947, § 20-1509.

14-322-102. Street improvement studies — Resolution.

  1. When the governing body of any city or incorporated town in this state shall deem it desirable to enter into a street improvement program in that city or town or any defined portions thereof, the governing body of the city or town may cause studies to be made of the needs for street improvements including grading, paving, curbing, guttering, and drainage and storm sewers in the city or town or the designated areas thereof. The governing body may cause studies to be made of the approximate cost of the improvements and the approximate amount which would need to be assessed against each parcel of property to pay the cost of the proposed improvement.
  2. Upon the completion of the study and determination as provided for in this section, the governing body of the municipality shall adopt a resolution setting out the findings and determinations and shall cause the findings and determinations to be published one (1) time in a newspaper of general circulation in the municipality.

History. Acts 1967, No. 251, § 1; A.S.A. 1947, § 20-1501.

14-322-103. Filing of petition requesting improvement district.

If, within sixty (60) days after the adoption and publication of the resolution by the governing board of the municipality, petitions are filed with the clerk or recorder of the municipality containing the signatures of a majority in value, number, and area of the real property to be located within the proposed district as shown by the last county assessment in the municipality, or the designated areas requesting that an improvement district be created for the purpose of making the improvements, then the clerk or recorder shall set a date and place for a public hearing on the sufficiency of the petitions.

History. Acts 1967, No. 251, § 2; 1983, No. 735, § 1; A.S.A. 1947, § 20-1502.

14-322-104. Notice of hearing — Special meeting.

  1. Notice of the public hearing shall be published one (1) time in a newspaper of general circulation in the municipality, at least five (5) days prior to the date fixed for the hearing.
  2. The governing body of the municipality may hold a special meeting for the purpose of conducting the hearing.

History. Acts 1967, No. 251, § 2; 1983, No. 735, § 1; A.S.A. 1947, § 20-1502.

14-322-105. Hearing — Publication — Effect of ruling.

  1. At the time and place stated in the notice, the governing body of the municipality shall meet and hear all owners of real property in the proposed district who wish to be heard on the question of whether the petitions contain the signatures of a majority in value of the real property owners in the district. It shall make a finding and ruling as to whether the petitions contain the signatures of a majority in value of the real property owners and shall publish the finding one (1) time in a newspaper of general circulation in the municipality.
  2. The finding and ruling of the governing body of the municipality with respect to the sufficiency of the petitions shall be final and conclusive unless questioned by action filed in the chancery court of the county in which the municipality is located within thirty (30) days after the date of publication of the finding.
    1. If the governing body of the municipality determines that the petitions and signatures thereon are sufficient, it shall proceed to establish the proposed district by ordinance. The governing body of the municipality shall, by virtue of their offices, constitute a board of commissioners to make the assessments and carry out the improvements provided for in the ordinance. After the board of commissioners determines the amount of the initial proposed assessment of benefits, and prior to levying the benefits, the initial petition shall once again be presented to the governing body of the city or town and that governing body shall ascertain whether persons who would be liable for a majority of the assessed benefits proposed to be levied had signed the original petition for formation.
    2. If the municipal governing body determines that petitions and signatures are insufficient, then the assessments may not be levied until enough additional signatures of property owners within the boundaries of the proposed district are obtained on the petition so that persons who would be liable for more than fifty percent (50%) of the assessed benefits have signed the formation petition. When the petition is deemed adequate in that respect, the assessed benefits shall be levied, and the assessment shall continue annually for five (5) years and thereafter reassessments may occur as otherwise provided by law.

History. Acts 1967, No. 251, § 3; 1983, No. 735, § 2; A.S.A. 1947, § 20-1503.

14-322-106. Assessments — Filing, notice, and appeal.

  1. Upon the establishment of the district, the board shall cause an assessment to be made against each lot or parcel of real property in the district based upon the cost of the improvements and the benefits accruing to each lot and parcel of property, with all assessments on property in the district to be ad valorem, according to the value of the benefits and uniform.
  2. A copy of the assessed benefits shall be filed with the city clerk and county clerk.
  3. Notice that the assessed benefits have been filed with the city clerk and county clerk shall be published in a newspaper of general circulation in the municipality.
  4. The assessment of benefits against each parcel of property shall be final and conclusive unless questioned by action filed in the chancery court within thirty (30) days after the date of publication of notice of filing assessed benefits.

History. Acts 1967, No. 251, § 4; A.S.A. 1947, § 20-1504.

14-322-107. Payment generally.

  1. All assessments shall be payable in the manner and within the time prescribed by ordinance of the governing body of the municipality.
  2. Property owners may be given the option to pay the amount of the assessments in one (1) lump sum payment or to pay the amount of the assessments in installments, within the time and at the rate of interest prescribed by ordinance of the governing body of the municipality.

History. Acts 1967, No. 251, § 5; 1971, No. 581, § 1; A.S.A. 1947, § 20-1505.

14-322-108. Installment payments.

  1. All installments of assessments shall be paid in equal annual amounts as provided by ordinance of the governing body of the municipality.
  2. The ordinance shall provide that the first annual installment shall be collected by the county collector on a date fixed in the ordinance.
  3. The ordinance shall provide that the second and subsequent installments shall be paid at the time provided by law for paying the first installment of general taxes or shall provide for the payment thereof in quarterly installments, at the election of the property owner, along with the quarterly installments of general taxes.
  4. It shall be the duty of the county clerk to extend the installments on the tax books of the county, and the duty of county collector to collect the installments along with general taxes until the entire levy of the assessment is exhausted.

History. Acts 1967, No. 251, § 6; 1971, No. 581, § 2; A.S.A. 1947, § 20-1506.

14-322-109. Use of funds to pay off debt of improvement district.

  1. Any city or town in which an improvement district is established under this chapter may use any funds of the municipality available, including any federal funds, as may be determined by the governing body of the city or town, to make any annual payment of principal and interest or part thereof on bonds, certificates of indebtedness, or other negotiable evidences of debt issued by an improvement district created under this chapter.
  2. However, when the governing body of any such municipality shall pay the annual installment or any portion thereof on bonds issued by the district, the annual installments on assessments upon property in the district shall not be extended and collected for that year or shall be reduced proportionately as the case may be.
  3. Notice of the amount assessments shall be reduced shall be filed with the county clerk before November 1 of the year preceding the year assessments are collected.

History. Acts 1967, No. 251, § 6; 1971, No. 581, § 2; A.S.A. 1947, § 20-1506.

14-322-110. Fund-raising to finance improvements.

The board of commissioners of any improvement district established under the provisions of this chapter are authorized to issue bonds, certificates of indebtedness, or other negotiable evidences of debt to secure funds to finance the proposed improvements. All unpaid assessments upon real property in the district may be pledged to secure the bonds or other negotiable evidences of debt.

History. Acts 1967, No. 251, § 7; A.S.A. 1947, § 20-1507.

14-322-111. Use of funds.

All funds derived from assessments upon real property by a district established under the provisions of this chapter shall be funds of the district and not funds of the municipality. They shall at all times be kept separate and apart from funds of the municipality and shall be used solely for paying the cost of the contemplated improvements. However, such funds may be used to reimburse the municipality for expenses incurred in making the study and survey provided for in § 14-322-102.

History. Acts 1967, No. 251, § 8; A.S.A. 1947, § 20-1508.

Chapters 323-332 [RESERVED.]

[Reserved]

Subtitle 20. Public Transit Systems Generally

Chapter 333 General Provisions

Effective Dates. Acts 1883, No. 47, § 3: effective on passage.

14-333-101. Rights-of-way for railroads.

  1. The city council of any city of the first or second class and the town council of any incorporated town shall have power to grant to any railroad company a right-of-way through the streets of the city or town, with the right to establish and maintain depots and other necessary improvements in connection therewith.
  2. If any property is damaged, the railroad company shall be liable for the damage, which shall be assessed in the manner provided by law for assessing damages for the appropriation of the right-of-way through lands.

History. Acts 1883, No. 47, § 2, p. 69; 1899, No. 8, § 1, p. 6; C. & M. Dig., § 3983; Pope's Dig., § 4985; A.S.A. 1947, § 73-508.

Publisher's Notes. As to validation of previous grants, see Acts 1883, No. 47, § 1.

Case Notes

Landowners' Rights.

City could not grant right-of-way in street, the fee to which is in adjoining landowners; however, adjoining landowners could lose their rights by laches. Reichert v. St. Louis & S. F. R. Co., 51 Ark. 491, 11 S.W. 696 (1889).

—Damages.

City's consent to use of street as railroad right-of-way cannot impair adjoining landowner's right to damages. Hot Springs R.R. v. Williamson, 45 Ark. 429 (1885), aff'd, 136 U.S. 121, 10 S. Ct. 955, 34 L. Ed. 355 (1890).

Use as Street.

Where a municipal corporation grants to a railroad company a right-of-way along a street without abandoning its use as a street, the public has a right to use the street as well as the railroad company, and the rights of each in the street must be exercised with due regard to the rights of the other. St. Louis, Iron Mountain & S. Ry. v. Neely, 63 Ark. 636, 40 S.W. 130 (1897).

Cited: Hughes v. Arkansas & Okla. R.R., 74 Ark. 194, 85 S.W. 773 (1905).

Chapter 334 Public Transit Systems Generally

Cross References. Local government reserve funds, § 14-73-101 et seq.

Effective Dates. Acts 1981, No. 424, § 20: Mar. 11, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that there is currently no specific authority for the creation of public transit authorities through cooperative efforts of cities and counties, that it is essential to the well-being of the citizens of this State that public transit systems be made available to the individuals residing in the State, and that the immediate effectiveness of this Act is the only means by which this public purpose can be expeditiously accomplished; therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1981, No. 711, § 4: Mar. 24, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 424 of 1981 went into effect on March 11, 1981; that this Act is immediately necessary to make technical corrections in Act 424 of 1981; and this Act should go into effect immediately in order to make such corrections. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Research References

ALR.

Measure and elements of damages or compensation for condemnation of public transportation system. 35 A.L.R.4th 1263.

Case Notes

Cited: Salley v. Central Ark. Transit Auth., 326 Ark. 804, 934 S.W.2d 510 (1996).

14-334-101. Title.

This chapter may be cited as the “Public Transit System Act.”

History. Acts 1981, No. 424, § 1; A.S.A. 1947, § 20-2201.

14-334-102. Definitions.

As used in this chapter, unless the context otherwise requires:

  1. “Authority” means the public corporation created pursuant to § 14-334-103;
  2. “Capital costs” means the fixed expenses associated with initiating transit operations including, but not limited to, the purchase of land, vehicles, facilities, and equipment;
  3. “Chairman” or “chairman of the board” or “chairman of the board of the authority” means the presiding officer of the authority, as selected pursuant to § 14-334-107;
  4. “Public transit system” means a transit system owned and operated by any municipality, county, regional authority, state, or other governmental agency including school districts, and any transit system created or licensed by a government agency or managed by a private management firm under contract to the government agency owner. Excluded from the jurisdiction of any public transit system created by this chapter is any intercity bus transportation system subject to the rules of the Arkansas Department of Transportation and the regulations of the United States Surface Transportation Board;
  5. “Transit system” means the facilities, equipment, personnel, and procedures needed to provide and maintain public transportation services to the public;
  6. “Public transportation” means the transportation of persons within and through the authority; and
  7. “Improvement district” means a district as authorized pursuant to § 14-334-108(8) and for the purpose of upgrading and otherwise improving public transit, and their creation and operation shall, to the extent consistent with this chapter, be in accordance with the procedures established by law for the creation and operation of municipal improvement districts.

History. Acts 1981, No. 424, § 2; 1981, No. 711, § 1; A.S.A. 1947, § 20-2202; Acts 2019, No. 315, § 1046.

Amendments. The 2019 amendment, in the second sentence of (4), substituted “rules” for “regulations”.

14-334-103. Creation of authorities.

  1. Any combination of two (2) or more entities as defined in § 14-334-102(4), or portions of those entities, are authorized to create and establish one (1) or more authorities for the purpose of acquiring, owning, equipping, leasing, maintaining, licensing, and operating a public transit system.
  2. No entity shall participate in such an authority unless and until its governing body so provides and enters into an agreement with the other participating entities. This agreement shall establish the terms and conditions for the operation of the authority within the limitations provided in this chapter and such other laws of the State of Arkansas which may be applicable.
  3. To the extent that it is consistent with this chapter, the agreement shall specify the information provided for in § 25-20-104(c) of the Interlocal Cooperation Act, § 25-20-101 et seq.

History. Acts 1981, No. 424, § 3; A.S.A. 1947, § 20-2203.

14-334-104. Authority as public corporation.

  1. Each authority, when created, and the members thereof, shall constitute a public corporation and, as such, shall have perpetual succession, may contract and be contracted with, may sue and be sued, and may have and use a common seal.
  2. The exercise of the powers and performance of duties provided for in this chapter by each authority are declared to be public and governmental functions, exercised for a public purpose and matters of public necessity, conferring upon each authority governmental immunity from suit in tort.

History. Acts 1981, No. 424, § 4; A.S.A. 1947, § 20-2204.

Case Notes

Cited: Salley v. Central Ark. Transit Auth., 326 Ark. 804, 934 S.W.2d 510 (1996).

14-334-105. System authorized.

Each authority is authorized and empowered to acquire, own, equip, construct, lease, maintain, license, and regulate public and private public transportation and otherwise maintain a public transit system so located and operated to best serve the region in which it is located.

History. Acts 1981, No. 424, § 5; A.S.A. 1947, § 20-2205.

14-334-106. Systems declared public properties.

  1. All transit systems formed under this chapter, and all the properties thereof, are declared to be public properties used exclusively for public purposes.
  2. The legislative intent of this section is that these transit systems, and all properties thereof, shall be exempt from:
    1. Ad valorem taxes under and pursuant to the provisions of Arkansas Constitution, Article 16, § 5; and
    2. Motor vehicle registration fees levied by the state. However, a one dollar ($1.00) annual registration fee shall be charged on all vehicles used for public transit purposes by an authority.

History. Acts 1981, No. 424, § 15; A.S.A. 1947, § 20-2215.

14-334-107. Board of authority.

  1. Subject to such limitations as may be contained in the agreement provided for in § 14-334-103, the management and control of each authority, its property, operations, business, and affairs shall be governed by a board comprised of at least:
    1. A representative of the county judge of each participating county; and
    2. A representative for one (1) mayor from each participating county selected by the mayors within the participating county.
  2. In the event an authority is established by a single county, representatives of three (3) mayors shall be selected to serve with the representative of the county judge and one (1) citizen representative who holds no public office, who shall be selected by the county judge and mayors serving as described in this section, to form a board having a minimum of five (5) members.
    1. The members of the board shall serve as such throughout their terms in office.
    2. If any member of the board ceases, for any reason, to be a member, that member shall be replaced by the elected official succeeding the member or as may be provided further in the bylaws created under § 14-334-108(1).
  3. The members of the board shall be solely responsible for selecting the chairman of the board.
  4. All members of the board of each authority shall be qualified electors within the judicial boundaries of the authority which the members represent. They do not necessarily have to be bona fide residents of the area served by the authority.
    1. No member of the board of an authority shall receive any compensation, whether in form of salary, per diem allowance, or otherwise, for or in connection with his services as such a member.
    2. Each member shall, however, be entitled to reimbursement by the authority for any necessary expenditures in connection with the performance of his general duties as a member.

History. Acts 1981, No. 424, §§ 6-8; A.S.A. 1947, §§ 20-2206 — 20-2208.

14-334-108. Powers generally.

Each authority is given power and authority as follows:

  1. To make and adopt all necessary bylaws, rules, and regulations for its organization and operations not inconsistent with law;
  2. To elect officers, to appoint committees, and to employ and fix the compensation for personnel necessary for its operation;
  3. To enter into contracts with any person, governmental department, firm, or corporation, including both public and private corporations, and generally to do any and all things necessary or convenient for the purpose of acquiring, owning, equipping, leasing, licensing, constructing, maintaining, improving, extending, financing, operating, and governing a surface public transit system covering all publicly and privately owned public transportation service provided within its boundaries to best serve the region in which it is located;
  4. To delegate any authority given to it by law to any of its officers, committees, agents, or employees;
  5. To apply for, receive, and use grants-in-aid, appropriated funds, donations, and contributions from any source, including without limitation the United States Government and any agency thereof, the Arkansas Department of Transportation, and the State of Arkansas and any agency thereof, and to accept and use bequests, devises, gifts, and donations from any person, firm, or corporation;
  6. To acquire lands and hold title thereto in its own name;
  7. To acquire, own, hold, lease as lessor or as lessee, sell, encumber, dispose of, or otherwise deal in and with any facilities or real, personal, or mixed property, wherever located;
    1. To constitute the authority or a committee thereof as improvement district commissioners and to create and operate an improvement district, composed of the area encompassed within the jurisdictions of the participating governing bodies, upon the petition of persons claiming to be two-thirds (2/3) in value of the owners of real property in the area, as shown by the last county assessment.
    2. The improvement district shall be for the purpose of providing basic revenues to operate the authority or in conjunction with the payment of bond principal and interest and any other expenses incurred in the issuance of transit bonds as provided in this chapter.
    3. The creation and operation of such an improvement district shall, to the extent consistent with this chapter, be in accordance with the procedures established by the laws of this state for the creation and operation of municipal improvement districts;
  8. To borrow money and execute and deliver negotiable notes, mortgage bonds, other bonds, debentures, and other evidences of indebtedness therefor, and give such security therefor as shall be requisite, including giving a mortgage or deed of trust on its properties and facilities in connection with the issuance of mortgage bonds;
  9. To raise funds by the issuance and sale of revenue bonds in the manner and according to the terms set forth in this chapter;
  10. To expend its funds in the execution of the powers and authorities given in this section and to invest and reinvest any of its funds pending need therefor;
  11. To apply for, receive, and use loans, grants, donations, technical assistance, and contributions from any other regional or area transit authorities or commissions that may be established and any agency of the United States Government or the State of Arkansas;
  12. To enforce all rules, regulations, and statutes relating to the transit system;
  13. To plan, establish, develop, construct, enlarge, improve, maintain, equip, operate, and regulate the system and auxiliary services and facilities including, but not limited to, parking facilities or decks, and to protect and police the properties of the authority, in cooperation with the law enforcement agencies and officers having jurisdiction in the area where the facilities of the authority are located; and
  14. To take such other action, not inconsistent with law, as may be necessary or desirable to carry out the powers and authorities conferred by this section and the intent and purposes of it.

History. Acts 1981, No. 424, § 9; A.S.A. 1947, § 20-2209; Acts 2017, No. 707, § 32.

Amendments. The 2017 amendment, in (5), substituted “without limitation” for “but not limited to” and substituted “Arkansas Department of Transportation” for “Arkansas State Highway and Transportation Department”.

14-334-109. Issuance of revenue bonds.

    1. The authority is authorized and empowered to issue transit revenue bonds from time to time in principal amounts sufficient to pay capital costs of the system.
    2. There may be more than one (1) issue of bonds, or there may be one (1) issue sold and delivered in series.
    3. In all instances, priority between and among issues and successive issues shall be controlled by the authorizing resolution or by the trust indenture securing the bonds.
    4. Transit revenue bonds shall have all the qualities of negotiable instruments under the laws of the State of Arkansas, subject to the provisions of this chapter regarding registration.
    1. Transit revenue bonds shall be authorized by resolution of the authority, referred to as the “authorization resolution.”
      1. The bonds may be coupon bonds, payable to bearer, or may be registrable as to both principal and interest without coupons and may be made exchangeable for bonds of another denomination. The bonds of another denomination may in turn be coupon bonds payable to bearer, or bonds registrable as to principal only or as to principal and interest with coupons, or bonds registrable as to principal and interest without coupons.
      2. As the authority shall determine, the bonds may:
        1. Be in such form and denominations;
        2. Have such date or dates;
        3. Mature at such time or times;
        4. Bear interest payable at such time or times and at such rate or rates;
        5. Be payable at such places within or without the State of Arkansas;
        6. Be subject to such terms of redemption in advance of maturity at such prices, including such premiums; and
        7. Contain such terms and provisions.
    2. The authorizing resolution may contain any other terms, covenants, and conditions that are deemed desirable by the authority, including, without limitation, those pertaining to:
      1. The custody, investment, and application of bond proceeds;
      2. The maintenance of various funds reserves;
      3. The nature and extent of the security;
      4. The rights, duties, and obligations of the authority; and
      5. The rights, duties, and obligations of the holders and registered owners of the bonds.
    1. The authorizing resolution may provide for the execution by the authority with a bank or trust company, within or without the State of Arkansas, of a trust indenture, referred to as the “trust indenture.”
    2. The trust indenture may control the priority between and among successive issues and series and may contain any other terms, covenants, and conditions that are deemed desirable including, without limitation, those pertaining to:
      1. The custody and application of the proceeds of bonds;
      2. The collection and disposition of transit system revenues;
      3. The maintenance of various funds and reserves;
      4. The nature and extent of the security;
      5. The rights, duties, and obligations of the authority and the trustee for the holders or registered owners of the bonds; and
      6. The rights of the holders or registered owners of the bonds.
      1. Bonds issued under the authority of this chapter may be sold at public or private sale.
      2. If sold at public sale, the bonds shall be sold on sealed bids, and notice of the sale shall be published once in a newspaper having a general circulation throughout the State of Arkansas at least ten (10) days prior to the date of sale.
    1. In either case, the bonds may be sold at a price the authority may accept, including sale at a discount.
    2. The award at any public sale, if made, shall be to the bidder whose bid results in the lowest net interest cost.
        1. Bonds shall be executed by the manual or facsimile signature of the chairman of the board of the authority and by the manual signature of the secretary of the authority.
        2. Coupons attached to the bonds shall be executed by the facsimile signature of the chairman of the board of the authority.
      1. In case any of the officers whose signatures appear on the bonds or coupons shall cease to be such an officer before the delivery date of the bonds or coupons, their signatures shall nevertheless be valid and sufficient for all purposes.
    1. The authority shall adopt and use a seal in the execution and issuance of bonds, and each bond shall be sealed with the seal of the authority.

History. Acts 1981, No. 424, § 10; 1981, No. 711, § 2; A.S.A. 1947, § 20-2210.

14-334-110. Security for bonds.

  1. The principal of and interest on all bonds issued under the authority of this chapter may be secured by a pledge of, and shall be payable from, transit system revenues or liens on real and personal property of the authority.
    1. Each resolution authorizing the issuance of bonds, and this chapter, shall constitute a contract by and between the authority and the holders and registered owners of all bonds issued under the authority of this chapter.
    2. The contract and all covenants, agreements, and obligations therein, including, without limitation, an obligation on the part of the authority to properly maintain the transit system and to charge and collect transit system revenues in required amounts, all as specified in detail in the authorizing resolution, the trust indenture, and in this chapter, shall be promptly performed in strict accordance with the terms and provisions of the contract.
    3. The contract and all rights of the trustee and holders and registered owners of the bonds and the obligations of the authority may be enforced by mandamus or any other appropriate proceeding at law or in equity.

History. Acts 1981, No. 424, § 11; A.S.A. 1947, § 20-2211.

14-334-111. Refunding bond issue.

    1. Transit revenue bonds may be issued for the purpose of refunding any bonds issued under the authority of this chapter.
    2. Refunding bonds may be combined into a single issue with revenue bonds issued for the purpose of completing, reconstructing, or expanding the transit system.
    1. Refunding bonds may either be sold or delivered in exchange for the bonds being refunded.
    2. If sold, the proceeds may be either applied to the payment of the bonds being refunded or deposited in trust and there maintained in cash or investments for the retirement thereof, as shall be specified by the authority in the trust indenture securing the refunding bonds.
  1. The resolution authorizing and the trust indenture securing the refunding bonds may provide that the refunding bonds shall have the same priority of lien on transit system revenues pledged for their payment as was enjoyed by the bonds refunded thereby.
  2. Refunding bonds shall be sold and secured in accordance with the provisions of this chapter pertaining to the sale and security of revenue bonds.

History. Acts 1981, No. 424, § 12; A.S.A. 1947, § 20-2212.

14-334-112. Investment of revenue bonds.

  1. Revenue bonds issued under the authority of this chapter are made securities in which all insurance companies, trust companies, banks, investment companies, executors, administrators, trustees, and other fiduciaries may properly and legally invest funds, including capital in their control or belonging to them.
  2. These bonds are made securities which may properly and legally be deposited with and received by any state or municipal officer or any agency or political subdivision of this state for any purpose for which the deposit of bonds or obligations of this state is authorized by law.
  3. Any municipality or county, or any board, commission, or other authority duly established by any municipality or county, or the board of trustees, respectively, of any retirement fund or retirement system created by or pursuant to authority conferred by the General Assembly of the State of Arkansas, may, in its discretion, invest any of its funds not immediately needed for its purposes in bonds issued under the authority of this chapter.
  4. Bonds issued under the authority of this chapter shall be eligible to secure the deposit of public funds.

History. Acts 1981, No. 424, § 13; A.S.A. 1947, § 20-2213.

14-334-113. Bonds — Tax exemption.

The principal of and interest on bonds issued under the authority of this chapter shall be exempt from all state, county, and municipal taxes. This exemption shall include income, inheritance, and estate taxes.

History. Acts 1981, No. 424, § 14; A.S.A. 1947, § 20-2214.

14-334-114. Public and private contributions permitted.

  1. Contributions may be made to authorities from time to time by the various public and private entities and persons, firms, or corporations that shall desire to do so.
    1. In order to afford maximum opportunities for contributions, the agreement provided for under § 14-334-103 may:
      1. Be treated as a cooperative agreement under the provisions of the Interlocal Cooperation Act, § 25-20-101 et seq.;
      2. Contain language enabling the agreement to be treated as a formal compact under §§ 14-165-201 — 14-165-204, in which case the authority shall hold title to property in its powers and capacity as a public corporation rather than as a commission-trustee as provided in §§ 14-165-201 — 14-165-204; or
      3. Be treated as a less formal arrangement for the cooperative use of industrial development bond funds.
    2. All these treatments shall be to the end that the counties and municipalities may contribute to the authority funds derived from:
      1. General obligation bonds under Arkansas Constitution Amendments 13 and 49;
      2. Revenue bonds under § 14-164-201 et seq.;
      3. Other available sources; and
      4. Funds derived from a combination of sources.
    1. The entities defined in § 14-334-102(4) are authorized and empowered to contribute to the cost of acquiring, constructing, equipping, maintaining, and operating a transit system.
    2. These entities are authorized and empowered to transfer and convey to the authorities property of any kind acquired by the entities.

History. Acts 1981, No. 424, §§ 16, 17; A.S.A. 1947, §§ 20-2216, 20-2217.

Publisher's Notes. Pursuant to Arkansas Constitution, Amendment 62, Section 11, the provisions of Arkansas Constitution, Amendments 13 and 49 are repealed insofar as they are inconsistent with the provisions of Arkansas Constitution, Amendment 62.

14-334-115. Accounting for receipts and expenditures.

  1. All funds received by an authority shall be deposited in such banks as the authority may direct and shall be withdrawn therefrom in such manner as the authority may direct.
      1. Each authority shall keep a strict account of all its receipts and expenditures and shall, each quarter, make a quarterly report to the counties and municipalities which have made contributions.
      2. The report shall contain an itemized account of its receipts and disbursements during the preceding quarter.
    1. The report shall be made within sixty (60) days after the termination of the quarter.
  2. Within sixty (60) days after the end of each fiscal year, each authority shall cause an annual audit to be made by an independent certified public accountant. It shall file a copy of the resulting audit report, containing an itemized statement of its receipts and disbursements for the preceding year, with each of the governing bodies participating in the authority.
  3. The books, records, and accounts of each authority shall be subject to audit and examination by any proper public official or body in the manner provided by law.
  4. The agreement provided for in § 14-334-103 may also provide for each authority to furnish the participating governing bodies copies of its annual budget for examination and approval.

History. Acts 1981, No. 424, § 16; A.S.A. 1947, § 20-2216.

14-334-116. Workers' compensation for employees.

All employees of each authority who are eligible shall be deemed to be within the workers' compensation laws of Arkansas, and premiums on their compensation shall be paid by the authority as required by law.

History. Acts 1981, No. 424, § 18; A.S.A. 1947, § 20-2218.

Chapter 335 Electric And Street Railroads

Cross References. Authority over railroad crossings, § 23-12-301.

Frequency of service, § 23-12-104.

Effective Dates. Acts 1905, No. 331, § 3: effective on passage.

Acts 1915, No. 259, § 5: approved Mar. 25, 1915. Emergency declared.

Acts 1923, No. 680, § 6: approved Mar. 26, 1923. Emergency clause provided: “This act being necessary for the immediate preservation of the public health and safety, shall take effect and be in force from and after its passage.”

14-335-101. Authority to construct, operate, and maintain generally.

    1. The county court of any county in this state may grant to persons or corporations authority for the construction, maintenance, and operation, for a period of not exceeding fifty (50) years, of electric railroads or railways upon, over, along, and across any public road or highway in the county over which the court has jurisdiction.
    2. In granting this authority, the court may prescribe the terms and conditions on which these railroads or railways and their appurtenances shall be constructed, maintained, and operated upon, over, along, and across the roads or highways, and to grade an elevation at which they shall be maintained and operated.
    3. No such authority shall be granted except upon the filing with the court of:
      1. A petition setting forth the rights and privileges applied for, signed and verified by the persons or corporation desiring them; and
      2. The consents in writing of at least a majority of the owners in frontage of the lands abutting on the portions of the roads and highways to be occupied by the railroads or railways specified in the petition.
  1. In case any electric railroad or railway shall be located in part on a private right-of-way, then the owner of the electrical road or railway shall have the right to construct, maintain, and operate the electrical road or railway across any county road or highway which intersects the routes of the railway. However, the crossing shall be constructed and maintained at such grade and elevation as shall be prescribed by the county court having jurisdiction over the road or highway and in such manner as to cause no unnecessary damage.
    1. The owner of any electric railroad or railway occupying any county road or highway, or any portion thereof, as permitted by this section, shall keep the portion of the public road or highway occupied by its tracks and roadbed in good repair and condition.
    2. The county courts are directed to enforce the provisions of this subsection by proper proceedings with respect to all public roads and highways under their respective jurisdictions.
  2. Any authority previously granted by a county court or board of supervisors of any county in this state to construct, operate, and maintain electric railroads or railways upon, over, along, or across any county road or highway under the jurisdiction of the court or board is confirmed and declared to be valid and effectual according to its terms.

History. Acts 1915, No. 259, §§ 1-4; C. & M. Dig., §§ 5255-5258; Pope's Dig., §§ 6983-6986; A.S.A. 1947, §§ 73-1601 — 73-1604.

Case Notes

Cited: Missouri Pac. R.R. v. Stroupe, 237 Ark. 464, 373 S.W.2d 709 (1963).

14-335-102. Construction and maintenance of overhead wires.

  1. All street railway companies or corporations operating cars by electricity or by overhead wires shall construct and maintain their wires at a height of not less than twenty-two feet (22') above the top of the rail or the railroad track crossed by the street railway company.
  2. The wires of the street railway company shall be guarded or provided with fenders or guard wires to prevent the wires from coming in contact with the cars, track, or telegraph line along the track of the railroad company.

History. Acts 1905, No. 179, § 1, p. 465; C. & M. Dig., §§ 1762, 10240d; Pope's Dig., § 11067; A.S.A. 1947, § 73-1610.

14-335-103. Duty to pave between rails in first-class cities.

      1. It shall be the duty of every person, firm, or corporation operating any street railway on, along, or across any street or avenue in any city of the first class in the State of Arkansas, under and by virtue of any indeterminate permit issued by the Arkansas Transportation Commission, to pave between its rails and to the end of its ties whenever the portions of the streets or avenues adjacent to the portion of the street occupied by its ties and rail shall have been paved by the city, the county, or an improvement district.
      2. The space between the rails and to the end of the ties shall be paved by the person, firm, or corporation operating under the indeterminate permit, with the same class and character of material used by the city, county, or improvement district in paving the other portion of the street or avenue adjacent thereto.
    1. The work shall be done by the person, firm, or corporation holding the indeterminate permit in a good and workmanlike manner. The pavement so laid by the person, firm, or corporation holding the indeterminate permit shall be maintained by the person, firm, or corporation in as good condition as the remainder of the pavement laid on the street or avenue.
      1. In case the person, firm, or corporation operating the street railway under an indeterminate permit shall deem it advisable to use a different character of material for paving that portion of any street or avenue between its rails and to the end of its ties than that used on the remainder of the street, it may present a written petition to the city council or commission of the city asking permission to use some other character of material.
      2. The council or commission is authorized to grant the petition either by ordinance or resolution, if, in the judgment of the commission or council, the material set forth in the petition is of equal grade and durability to that used on the balance of the street or avenue.
  1. The tracks of any street railway and the paving provided for in subsection (a) of this section shall be laid and maintained to the grade established by the city.
  2. The circuit court of the county in which the city is located is given jurisdiction to enforce compliance with the provisions of subsection (a) of this section by mandamus upon the complaint of the city.
      1. Whenever the city, the county, or an improvement district shall have adopted final plans for the paving of any street or avenue occupied by railway track and shall have finally determined the material to be used, it may cause to be served upon the person, firm, or corporation operating the street railway a notice, in writing, stating the character of material to be used upon the balance of the street and directing the person, firm, or corporation to proceed with the work of paving between the rails to the end of its ties.
      2. In case the person, firm, or corporation shall fail to start paving within thirty (30) days, or to complete paving within a reasonable time, then the city, county, or improvement district, as the case may be, may cause the tracks of the street railway to be brought to grade and may construct the pavement between the rails and to the end of the ties.
    1. The amount expended by the city, county, or improvement district in paving the space between the rails and to the end of the ties, together with ten percent (10%) interest on the amount of the expenditure from the date thereof, may be recovered by it from the person, firm, or corporation holding an indeterminate permit in an ordinary action at law.
    2. The remedies provided for in this subsection are cumulative and are in addition to the remedy of mandamus provided for in subsection (c) of this section.
  3. The term “pavement” as used in this section shall include a proper foundation and all excavation, drainage, and other work necessary to properly pave the space between the rails and to the end of the ties.
  4. The provisions of this section shall not apply to Miller County.

History. Acts 1923, No. 680, §§ 1-5; Pope's Dig., §§ 1208-1212; A.S.A. 1947, §§ 73-1605 — 73-1609.

Case Notes

Constitutionality.

This section is constitutional. Ft. Smith Light & Traction Co. v. Board of Improv., 169 Ark. 690, 276 S.W. 1012 (1925), aff'd, 274 U.S. 387, 47 S. Ct. 595, 71 L. Ed. 1112 (1927).

14-335-104. Duty to heat streetcars in first-class cities.

  1. All persons, companies, or corporations operating any streetcar line for the transportation of passengers in any city of the first class in this state shall be required to keep every streetcar run by them for the transportation of passengers heated during the fall, winter, and spring seasons of each year so as to make them comfortable for all passengers on the cars.
  2. All persons, companies, or corporations failing to keep every streetcar operated by them heated as provided in this section shall be guilty of a misdemeanor and upon conviction shall be fined in any sum not less than twenty-five dollars ($25.00) nor more than fifty dollars ($50.00). Each day each car is not heated as provided in this section shall be counted as a separate offense within the provisions of this section.

History. Acts 1905, No. 331, §§ 1, 2, p. 787; C. & M. Dig., §§ 966, 967; Pope's Dig., §§ 1170, 1171; A.S.A. 1947, §§ 73-1612, 73-1613.

14-335-105. Duty to stop at railroad crossings.

  1. It shall be the duty of every street railway company or corporation operating a street railway crossing the tracks of a railroad company to bring its cars to a full stop at least ten feet (10') and not more than twenty feet (20') before reaching the tracks of the railroad company.
  2. It shall be the duty of the conductor, or some other employee of the street railway company, to go forward to the tracks of the railroad company to find out whether a train is approaching the crossing.

History. Acts 1905, No. 179, § 2, p. 465; C. & M. Dig., §§ 1763, 10240e; Pope's Dig., § 11068; A.S.A. 1947, § 73-1611.

Cross References. Stop for emergency vehicles, § 27-51-901.

Chapters 336-345 [RESERVED.]

[Reserved]

Subtitle 21. Public Transit Improvement Districts

Chapters 346-355 [RESERVED.]

[Reserved]

Subtitle 22. Airport Facilities Generally

Chapter 356 General Provisions

Effective Dates. Acts 1947, No. 44, § 2: approved Feb. 7, 1947. Emergency clause provided: “Whereas there are many municipal corporations in the State of Arkansas without signs displaying the names thereof; and whereas the displaying of such signs will materially aid in the guidance of aircraft in flight and will aid in the protection of aircraft travel; and this Act being necessary for the public peace, health and safety of the State of Arkansas, an emergency is hereby declared, and this Act shall be in full force and effect from and after its passage.”

Acts 1995, No. 438, § 5: Feb. 24, 1995. Emergency clause provided: “It is hereby found and determined by the General Assembly that there is urgent need to clarify current law relating to the use of airports owned and operated by municipalities, counties, and other public agencies as being exclusively public and relating to the exemption from ad valorem taxation of such airport property, and that the provisions of this act are designed to accomplish these purposes and are immediately needed. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

14-356-101. Display of air markers.

  1. All municipal corporations with a population, according to the last federal census, of one thousand (1,000) people or more, shall paint or prepare a conspicuous sign displaying the name of the municipality so as to be visible to persons traveling by air.
  2. The sign shall be for the guidance and protection of aircraft in flight.

History. Acts 1947, No. 44, § 1; A.S.A. 1947, § 74-124.

14-356-102. [Repealed.]

Publisher's Notes. This section, concerning use of airport property declared to be exclusively for public purposes, was repealed by Acts 2019, No. 383, § 25, effective July 24, 2019. The section was derived from Acts 1995, No. 438, § 1.

Chapter 357 County Airport Commissions

Research References

ALR.

Zoning regulations limiting use of property near airport as taking of property. 18 A.L.R.4th 542.

Airport operations or flight of aircraft as constituting taking or damaging of property. 22 A.L.R.4th 863.

Damages resulting from temporary conditions incident to public improvements or repairs as compensable taking. 23 A.L.R.4th 674.

14-357-101. Creation.

  1. Any county owning and operating an airport may, by appropriate action of the county court, create a commission for the purpose of operating and managing the airport and its related properties and facilities.
  2. The county court of any county desiring to avail itself of the benefits of this chapter shall enter an order creating an airport commission to be composed of seven (7) citizens who are qualified electors of the county.

History. Acts 1965, No. 384, §§ 1, 2; A.S.A. 1947, §§ 74-701, 74-702.

14-357-102. Appointment of commissioners.

  1. The first commissioners shall be appointed by the county court in the order creating the airport commission.
  2. Of the commissioners first appointed, one (1) shall serve for a term of one (1) year, one (1) shall serve for a term of two (2) years, one (1) shall serve for a term of three (3) years, one (1) shall serve for a term of four (4) years, one (1) shall serve for a term of five (5) years, one (1) shall serve for a term of six (6) years, and one (1) shall serve for a term of seven (7) years, to be determined by lot at the first meeting of the commission.
  3. Upon the expiration of the respective terms, successor commissioners shall be appointed by the remaining commissioners, subject to the approval of the county court, for a term of seven (7) years.
  4. In the event of a vacancy occurring on the commission, the remaining commissioners shall, subject to the approval of the county court, appoint a commissioner to serve the unexpired term.
  5. The commissioner shall file the oath required of public officials by law in the State of Arkansas.

History. Acts 1965, No. 384, § 3; A.S.A. 1947, § 74-703.

14-357-103. Removal of commissioners.

Any commissioner appointed under the provisions of this chapter may be removed only for cause by the county court after a hearing in which the commissioner proposed to be removed is given reasonable notice and an opportunity to appear.

History. Acts 1965, No. 384, § 4; A.S.A. 1947, § 74-704.

14-357-104. Compensation of commissioners.

The county court shall have authority to fix and prescribe the compensation, if any, to be paid to the commissioners.

History. Acts 1965, No. 384, § 3; A.S.A. 1947, § 74-703.

14-357-105. Authority of commissioners.

    1. The commissioners appointed under this chapter shall have full and complete authority to manage, operate, improve, extend, and maintain the airport and its related properties and facilities.
    2. The commissioners shall have full and complete charge of the airport and its related properties and facilities including, without limitation, the right to:
      1. Establish charges and fees for the services and facilities of the airport and to collect, handle, and disburse all revenues derived therefrom;
      2. Contract; and
      3. Employ and remove any and all assistants and employees of whatsoever nature, kind, or character and to fix, regulate, and pay their compensation.
  1. It is the intention of this chapter to vest in the commissioners unlimited authority to operate, manage, maintain, improve, and extend the county-owned airport and to have full and complete charge of it. However, the commissioners shall not have authority or power to sell, mortgage, or encumber the airport and its related properties and facilities.

History. Acts 1965, No. 384, § 5; A.S.A. 1947, § 74-705.

14-357-106. Rules and regulations.

    1. The commissioners shall adopt such rules and regulations as they deem necessary and expedient for the proper operation and management of the airport and its related properties and facilities.
    2. The commissioners shall have authority to alter, change, or amend these rules and regulations at their discretion.
    1. The commissioners shall comply with, or cause to be complied with, all civil air rules and regulations of the federal and state government as to air worthiness, certification, and operation of aircraft.
    2. The commissioners shall protect all the aerial approaches to the airport insofar as it comes within their jurisdiction to do so.

History. Acts 1965, No. 384, § 7; A.S.A. 1947, § 74-707; Acts 2019, No. 315, § 1047.

Amendments. The 2019 amendment inserted “rules and” in (b)(1).

14-357-107. Use of operational revenue.

All revenue derived from the operation of the airport, after paying the operating expenses and maintenance, may be set aside and used for additional improvements on the airport or for any lawful purpose.

History. Acts 1965, No. 384, § 6; A.S.A. 1947, § 74-706.

14-357-108. Records and reports.

    1. The commissioners shall keep a record of all revenues and expenditures of the airport and its related properties and facilities. They shall prepare and file an annual report of the financial affairs and conditions of the airport and its related properties and facilities.
    2. The report shall be filed in the office of the clerk of the county court and shall be subject to inspection by any interested person.
  1. The commissioners shall also furnish such other and further reports, data, and information as shall be requested by the county court.

History. Acts 1965, No. 384, § 8; A.S.A. 1947, § 74-708.

Chapter 358 County Airports

Effective Dates. Acts 1963, No. 188, § 4: Mar. 7, 1963. Emergency clause provided: “It is hereby found and determined by the general assembly that the rapid development and expansion of air transportation in the State is leading to the need for more and better airport facilities in the State and that such facilities are needed immediately to accommodate such expansion and to make flying safe for the public. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in effect from the date of its passage and approval.”

Research References

ALR.

Zoning regulations limiting use of property near airport as taking of property. 18 A.L.R.4th 542.

Operations or flight of aircraft as constituting taking or damaging of property. 22 A.L.R.4th 863.

Damages resulting from temporary conditions incident to public improvements or repairs as compensable taking. 23 A.L.R.4th 674.

14-358-101. Authorization.

Any county in this state may acquire, own, operate, and maintain an airport or flying field in that county and may make, build, and construct all improvements at the airport or flying field as may be deemed necessary for the proper operation thereof.

History. Acts 1963, No. 188, § 1; A.S.A. 1947, § 74-209.

14-358-102. Acquisition of property.

  1. Counties are authorized to acquire lands for airports or flying fields by gift, purchase, or by the exercise of the power of eminent domain, which is granted to counties for this purpose.
  2. The power of eminent domain granted to counties by this section shall be exercised in the same manner and procedure as is prescribed for the exercise of this power by railroads.

History. Acts 1963, No. 188, §§ 2, 3; A.S.A. 1947, §§ 74-210, 74-211.

Cross References. Eminent domain power of railroads, § 18-15-1201 et seq.

Chapter 359 Municipal Airport Commissions

A.C.R.C. Notes. References to “this chapter” in §§ 14-359-101 to 14-359-120 may not apply to § 14-359-121 which was enacted subsequently.

Effective Dates. Acts 1969, No. 308, § 5: Mar. 21, 1969. Emergency clause provided: “It is hereby found and determined by the General Assembly that certain cities of the second class in this State own and operate airports, or desire to own and operate airports, for the convenience of the public and to promote air commerce, and that the immediate passage of this act is necessary to enable such cities of the second class to establish an airport commission to be operated pursuant to the authority of Act 53 of 1949, and to enable cities of the second class establishing airport commissions to issue revenue bonds under the provisions of Act 175 of 1959, to finance improvements of airports. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1970 (Ex. Sess.), No. 62, § 4: Mar. 13, 1970. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health, and safety, shall be in effect from and after its passage and approval.”

Acts 1975, No. 225, § 26: became law without Governor's signature, Feb. 19, 1975. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the state of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 1981, No. 48, § 3: Feb. 12, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that Arkansas law prohibits elected and appointed government officials from serving on municipal airport commissions; that the appointment of such officials to municipal airport commissions would in many instances be in the best interests of the communities involved, and that this Act is immediately necessary to eliminate the existing restriction. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1981, No. 425, § 54: Mar. 11, 1981. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this state and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this act. Therefore, an emergency is declared to exist and this act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 2005, No. 674, § 3: Mar. 9, 2005. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that membership of a municipal airport commission in larger Arkansas cities is unnecessarily restricted; that increasing the number of commission members to that of commissions in smaller cities will better equip the commission to address the needs of the municipal airports; and that this act is immediately necessary in order to permit municipal airport commissions to begin the process of selecting additional members. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2011, No. 334, § 3: Mar. 18, 2011. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that some tolls and fees being charged by airports in the state are much higher than the local sales tax rate; that this is inequitable; and that this act is immediately necessary because there is a high potential for an illegal exaction lawsuit against these airports. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Research References

ALR.

Zoning regulations limiting use of property near airport as taking of property. 18 A.L.R.4th 542.

Airport operations or flight of aircraft as constituting taking or damaging of property. 22 A.L.R.4th 863.

Damages resulting from temporary conditions incident to public improvements or repairs as compensable taking. 23 A.L.R.4th 674.

14-359-101. Title.

This chapter shall be known as the “Airport Commission Act.”

History. Acts 1949, No. 53, § 1; A.S.A. 1947, § 74-501.

Case Notes

Cited: E.E. Terry, Inc. v. Helena & W. Helena, 256 Ark. 226, 506 S.W.2d 573 (1974).

14-359-102. Applicability.

This chapter shall apply to cities of the first class and of the second class or any group of cities jointly owning or operating a municipal airport.

History. Acts 1949, No. 53, § 2; 1969, No. 308, § 1; A.S.A. 1947, § 74-502.

Publisher's Notes. Acts 1969, No. 308, § 2, provided that the provisions of §§ 14-360-30114-360-313 shall be applicable to any city of the second class that may establish an airport commission as authorized in §§ 14-359-102, 14-359-103.

14-359-103. Authority to create.

Any city of the first class or of the second class owning and operating a municipal airport and its relative properties and facilities, or any city of the first class or second class desiring to own and operate a municipal airport, by appropriate action of its city council or other governing body, may create a commission for the purpose of operating and managing the airport and its relative properties and facilities.

History. Acts 1949, No. 53, § 2; 1969, No. 308, § 1; A.S.A. 1947, § 74-502.

Case Notes

Agency of City.

Airport commission created by city pursuant to this section was not a separate corporate entity, but was acting as agency of city in contract for construction of airport facilities adjacent to city, making city liable for indebtedness arising out of the transactions. L.C. Eddy, Inc. v. City of Arkadelphia, 303 F.2d 473 (8th Cir. 1962).

14-359-104. Creation of commission.

  1. Any city affected by and desiring to avail itself of the benefits of this chapter shall enact by a majority vote of the elected and qualified members of its city council an ordinance creating an airport commission to be composed of seven (7) citizens who are qualified electors of the state.
    1. At least one (1) of the members shall be fully experienced in aviation, holding some type of pilot aeronautical rating.
    2. If there is not any citizen experienced in aviation holding some type of pilot aeronautical rating who is available or willing to serve on the commission, then the city council may waive this requirement.
  2. No more than one (1) member of the commission may have financial dealings or interests in an aeronautical enterprise while a member of the commission.

History. Acts 1949, No. 53, § 3; 1981, No. 48, § 1; A.S.A. 1947, § 74-503; Acts 1997, No. 1078, § 1; 2005, No. 674, § 1; 2009, No. 568, § 1.

Amendments. The 2005 amendment deleted former (a)(2); redesignated former (a)(1) as present (a); and deleted “with a population of less than one hundred fifty thousand (150,000)” following “Any city” in present (a).

The 2009 amendment rewrote (c).

Case Notes

Cited: E.E. Terry, Inc. v. Helena & W. Helena, 256 Ark. 226, 506 S.W.2d 573 (1974).

14-359-105. Appointment of commissioners.

    1. The commissioners shall be appointed by the mayor and confirmed by a three-fourths vote of the elected and qualified members of the city council.
    2. In municipalities located in a metropolitan statistical area designated by the United States Bureau of the Census having a population of one million (1,000,000) or more according to the most recent federal decennial census, the commissioners shall be appointed by the mayor and confirmed by a simple majority vote of the elected and qualified members of the city council.
    1. The commissioners first appointed and confirmed shall serve terms of one (1), two (2), three (3), four (4), and five (5) years, with two (2) commissioners serving terms of four (4) years and two (2) commissioners serving terms of five (5) years. The terms shall be designated by the mayor.
    2. Upon the expiration of their respective terms, their successors shall be appointed by the mayor, subject to the approval of the council, for terms of five (5) years.
  1. The commissioners shall file the oath required by law in the State of Arkansas.
  2. For municipal airport commissions in existence on August 1, 1997, the initial terms of the two (2) new members shall be as follows:
    1. One (1) new member shall serve an initial term of four (4) years; and
    2. One (1) new member shall serve an initial term of five (5) years.
  3. For municipal airport commissions with five (5) members in existence on March 9, 2005, the initial terms of the two (2) new members shall be as follows:
    1. One (1) new member shall serve an initial term of four (4) years; and
    2. One (1) new member shall serve an initial term of five (5) years.

History. Acts 1949, No. 53, § 4; A.S.A. 1947, § 74-504; Acts 1997, No. 1078, §§ 2, 3; 2005, No. 674, § 2; 2009, No. 73, § 1.

Amendments. The 1997 amendment rewrote (b)(1); and added (d).

The 2005 amendment added (e).

The 2009 amendment added (a)(2).

14-359-106. Removal of commissioners.

Any commissioner appointed by the provisions of this chapter may be removed upon a three-fourths (¾) vote of the elected and qualified members of the city council.

History. Acts 1949, No. 53, § 5; A.S.A. 1947, § 74-505.

14-359-107. Salary of commissioners.

The city council shall have authority to fix and prescribe the salaries to be paid to the commissioners.

History. Acts 1949, No. 53, § 4; A.S.A. 1947, § 74-504.

14-359-108. Meetings of commission.

The commissioners shall meet at least monthly, but other meetings may be held at any time by the commission or upon the call of the mayor and city council.

History. Acts 1949, No. 53, § 15; A.S.A. 1947, § 74-515.

14-359-109. Authority of commissioners.

    1. The commissioners appointed under this chapter shall have full and complete authority to manage, operate, improve, extend, and maintain the municipal airport and its related properties and facilities.
    2. The commissioners shall have full and complete charge of the airport and its related properties and facilities, including the right to employ or remove any and all assistants and employees of whatsoever nature, kind, or character and to fix, regulate, and pay their salaries.
    1. It is the intention of this chapter to vest in the commissioners unlimited authority to operate, manage, maintain, improve, and extend the municipally owned airport and its related properties and facilities, and to have full and complete charge of it, including without limitation the authority to charge and collect tolls and fees from vehicles accessing or departing from the airport, to make reasonable tolls and fees in accordance with industry standards, and to make reasonable classifications of vehicles for this purpose.
      1. The tolls or fees levied for use of airport roads by private off-facility parking services at an airport located in a county with a population of at least three hundred sixty thousand (360,000) and in a city with a population of at least one hundred seventy-five thousand (175,000) according to the most recent federal decennial census shall not exceed the local sales tax rate of the municipality in which the airport is located.
      2. Private off-facility parking services shall have full access to drop off and pick up airport passengers and the same queuing access as all commercial shuttles, limos, taxi cabs, airport-owned vans or buses, and valet services.
      3. For an airport located in a county with a population of at least three hundred sixty thousand (360,000) and in a city with a population of at least one hundred seventy-five thousand (175,000) according to the most recent federal decennial census, tolls and fees fixed by the authority shall not be subject to supervision or regulation by any other commission, board, bureau, or agency of the State of Arkansas.

History. Acts 1949, No. 53, § 6; A.S.A. 1947, § 74-506; Acts 2011, No. 334, § 2.

Amendments. The 2011 amendment added “including without limitation ... for this purpose” at the end of (b)(1); and added (b)(2).

Case Notes

Immunity.

The Commission acts as an agency of the city with the power and authority to operate, manage, maintain, and improve the airport unless a statute explicitly provides otherwise; thus, the Commission is entitled to be treated as a municipality for immunity purposes. Four T's, Inc. v. Little Rock Mun. Airport Comm'n, 108 F.3d 909 (8th Cir. 1997).

A clearly articulated and affirmatively expressed state policy exists that grants the Commission unlimited authority to formulate and to impose concession fees on rental car companies that operate from the airport terminal; therefore, the Commission is entitled to state action immunity from antitrust liability. Four T's, Inc. v. Little Rock Mun. Airport Comm'n, 108 F.3d 909 (8th Cir. 1997).

Scope of Authority.

This section clearly and affirmatively grants the Commission unlimited authority to operate the airport, its facilities and related properties, which would include renting counter space and parking spaces and imposing concession fees. Four T's, Inc. v. Little Rock Mun. Airport Comm'n, 108 F.3d 909 (8th Cir. 1997).

14-359-110. Vesting of authority in commissioners.

  1. Upon the appointment of the commissioners as provided in this chapter, the mayor and city council shall execute such instruments and enact such measures as may be necessary to vest complete charge of the municipally owned airport and its related properties and facilities in the commissioners appointed.
  2. Upon their failure to do so, mandamus may be maintained against them, in any court of competent jurisdiction, by any taxpayer of the city where the airport and its related properties and facilities in question are located.

History. Acts 1949, No. 53, § 16; A.S.A. 1947, § 74-516.

14-359-111. Financing of improvements.

  1. All cities qualifying under this chapter are authorized to finance improvements of airport facilities as provided in any manner not inconsistent with the Arkansas Constitution and in accordance with any such finance method including, but not limited to, the issuance of bonds, borrowing money, and the allocation of other available municipal funds authorized cities of the first class in the necessary functions of municipal affairs.
  2. Bonds issued under the authority of this chapter shall bear interest at rate or rates as the ordinance authorizing their issuance may provide.

History. Acts 1949, No. 53, § 7; 1970 (Ex. Sess.), No. 62, § 1; 1975, No. 225, § 1; 1981, No. 425, § 1; A.S.A. 1947, § 74-507.

14-359-112. Eminent domain.

The city is expressly authorized to have all the rights of eminent domain as may be necessary and expedient for the proper operation and management of the municipal airport and its related properties and facilities as is granted by § 14-360-102.

History. Acts 1949, No. 53, § 8; A.S.A. 1947, § 74-508.

14-359-113. Zoning regulations.

The city is expressly authorized to put into effect zoning regulations necessary for the proper operation and management of the municipal airport and its related properties and facilities as provided by the Airport Zoning Enabling Act, § 14-363-201 et seq.

History. Acts 1949, No. 53, § 10; A.S.A. 1947, § 74-510.

14-359-114. Rules and regulations.

    1. The commissioners shall adopt such rules and regulations as they may deem necessary and expedient for the proper operation and management of the municipal airport and its related properties and facilities.
    2. The commissioners shall have authority to alter, change, or amend these rules and regulations at their discretion.
    1. The commissioners shall comply with, or cause to be complied with, all civil air rules and regulations of the federal and state government as to air worthiness, certification, and operation of aircraft.
    2. The commissioners shall protect all the aerial approaches to the airport insofar as it comes within their jurisdiction.

History. Acts 1949, No. 53, § 12; A.S.A. 1947, § 74-512; Acts 2019, No. 315, § 1048.

Amendments. The 2019 amendment inserted “rules and” in (b)(1).

14-359-115. Additional powers of commissioners.

  1. The commissioners shall, in addition to the other powers enumerated in this chapter, have such other and further powers as are by law given to the city council of any city.
  2. The commissioners shall be governed by all existing statutes pertaining to the duties of city councils.

History. Acts 1949, No. 53, § 11; A.S.A. 1947, § 74-511; Acts 1993, No. 403, § 8.

14-359-116. Estimate of funds required.

The board of commissioners shall submit to the city, annually before the city prepares its budget, the amount of funds necessary for maintenance, operation, and management of the municipal airport and its related properties and facilities above the estimated revenue and the funds remaining on hand.

History. Acts 1949, No. 53, § 14; A.S.A. 1947, § 74-514.

14-359-117. Use of operational revenue.

All revenue derived from the operation of the airport or flying field, after paying the operating expenses and maintenance, shall be set aside and used for additional improvements on the airport or for the retirement of bonds and interest thereon issued or advancement made for the purchase and improvement of the airport or flying field.

History. Acts 1949, No. 53, § 9; A.S.A. 1947, § 74-509.

14-359-118. Records and reports.

  1. The commissioners shall keep a record of all revenues and expenditures of the airport and its related properties and facilities and shall submit monthly reports to the mayor and city council.
      1. It shall be the duty of the airport commissioners to prepare and file an annual report of the financial affairs and conditions of the municipal airport and its related properties and facilities, annually by January 15 and the first Monday in February thereafter.
      2. The report shall be filed in the office of the clerk or recorder of the municipality and shall be subject to the inspection of any citizen of the state.
      1. The report shall set out a full detailed, complete, and correct statement of all receipts of every kind since the last report, showing the source thereof, and all disbursements of every kind showing date, amount, number, and purposes of each voucher, to whom issued, and the date cancelled, if cancelled.
      2. The report shall show:
        1. The full financial condition of the airport and its related properties and facilities;
        2. The status of its bonded debt, if any; and
        3. Every other detail necessary to a full and thorough understanding from the report of the actual financial condition of the municipal airport.
    1. The report shall be verified by the airport board of commissioners.
  2. The commissioners shall also furnish such other and further reports, data, and information as may be requested by the mayor or city council.

History. Acts 1949, No. 53, § 13; A.S.A. 1947, § 74-513.

14-359-119. Civil service not applicable.

The Civil Service Act shall not apply to the commissioners or employees of a municipally owned airport and its related properties and facilities.

History. Acts 1949, No. 53, § 17; A.S.A. 1947, § 74-517.

14-359-120. Pension and retirement plans.

  1. In any city of the first class, owning and operating a municipal airport and its related properties and facilities, by or through an airport board of commissioners, the commission is authorized to provide a plan for social security, old age pensions, or retirement pay for part or all employees of the airport and its related properties and facilities, under such plan as the commissioners may provide.
  2. If such a plan is not placed in effect, the seniority and retirement rights and benefits to which the airport personnel are entitled shall remain in full force and effect.

History. Acts 1949, No. 53, § 18; A.S.A. 1947, § 74-518.

14-359-121. Term of members.

For municipal airport commissions in existence on August 1, 1997, the initial term of the two (2) new members shall be as follows: one (1) new member shall serve an initial term of four (4) years; and one (1) new member shall serve an initial term of five (5) years.

History. Acts 1997, No. 1078, § 3.

A.C.R.C. Notes. References to “this chapter” in §§ 14-359-101 to 14-359-120 may not apply to this section which was enacted subsequently.

Chapter 360 Municipal Airports Generally

Research References

ALR.

Zoning regulations limiting use of property near airport as taking of property. 18 A.L.R.4th 542.

Airport operations or flight of aircraft as constituting taking or damaging of property. 22 A.L.R.4th 863.

Damages resulting from temporary conditions incident to public improvements or repairs as compensable taking. 23 A.L.R.4th 674.

U. Ark. Little Rock L.J.

Fifteenth Annual Survey of Arkansas Law, 15 U. Ark. Little Rock L.J. 427.

Subchapter 1 — General Provisions

Cross References. City-owned airports annexed to city, § 14-40-204.

Effective Dates. Acts 1929, No. 135, § 6: Mar. 14, 1929. Emergency clause provided: “Because of the rapid development of flying and the dangers incident thereto without adequate airports and flying fields an emergency is hereby declared to exist and this act being necessary for the preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1945, No. 39, § 2: Feb. 9, 1945. Emergency clause provided: “It is hereby found and determined as a fact that the obtaining of necessary and adequate air transportation for cities of the first class is dependent upon the prompt acquisition, enlargement, extension and improvement of airports or flying fields by such municipalities, and this act being therefore necessary for the immediate preservation of the public peace, health and safety, an emergency is hereby declared to exist, and this act shall be full force and effect from and after its passage and approval.”

14-360-101. Municipal airports authorized.

Cities of the first and second class and incorporated towns in the State of Arkansas may acquire and own airports or flying fields, which may be located either within or without the corporate limits of the cities or towns.

History. Acts 1929, No. 135, § 1; Pope's Dig., § 10037; Acts 1945, No. 18, § 1; A.S.A. 1947, § 74-201.

Case Notes

Eminent Domain.

The law of Arkansas gives one municipality eminent domain over land in another municipality. Cowger v. State, Dep't of Aeronautics, 307 Ark. 92, 817 S.W.2d 427 (1991).

14-360-102. Acquisition of property.

  1. The real property for municipal airports or flying fields may be acquired by gift, purchase, or by the exercise of the right of eminent domain, which is granted to cities for this purpose.
  2. The procedure for the exercise of the right of eminent domain shall be that prescribed by law for the exercise of this power by railroads.

History. Acts 1929, No. 135, § 2; Pope's Dig., § 10038; Acts 1945, No. 39, § 1; A.S.A. 1947, § 74-202.

Cross References. Eminent domain power of railroads, § 18-15-1201 et seq.

Case Notes

In General.

In the exercise of the right of eminent domain by a municipality in condemning land for an airport, the law exercised by railroads applies, and where the verdict rendered is excessive, the amount will be reduced or a new trial granted. Harrison v. Moss, 213 Ark. 721, 212 S.W.2d 334 (1948).

Eminent Domain.

The law of Arkansas gives one municipality eminent domain over land in another municipality. Cowger v. State, Dep't of Aeronautics, 307 Ark. 92, 817 S.W.2d 427 (1991).

Cited: City of Bryant v. Springhill Water & Sewer Servs., Inc., 295 Ark. 336A, 750 S.W.2d 61 (1988).

14-360-103. Improvements, operation, and maintenance.

  1. Cities are authorized to make, build, and construct all necessary improvements on their airports or flying fields.
  2. Cities are further authorized to operate and maintain their airports or flying fields.

History. Acts 1929, No. 135, § 3; Pope's Dig., § 10039; A.S.A. 1947, § 74-203.

Case Notes

Financing of Construction.

City may borrow money for construction of airport and pledge the earnings of the airport to repayment of loan and, if such earnings are insufficient, may transfer money from its general revenue fund to an airport fund for such payment, subject only to the provisions of Ark. Const., Amend. No. 10. Johnson v. Dermott, 189 Ark. 830, 75 S.W.2d 243 (1934).

14-360-104. Operation in another state.

Any city of the first class which is located at or near the boundary of another state may acquire, own, improve, and operate an airport or flying field located wholly or in part in the other state.

History. Acts 1929, No. 135, § 4; Pope's Dig., § 10040; A.S.A. 1947, § 74-204.

14-360-105. Use of operational revenue.

All revenue derived from the operation of a municipal airport or flying field, after paying the operating expenses and maintenance, shall be set aside and used for additional improvements on the airport, or for the retirement of bonds and interest thereon issued for the purchase and improvement of the airport or flying field.

History. Acts 1929, No. 135, § 5; Pope's Dig., § 10041; A.S.A. 1947, § 74-205.

Subchapter 2 — Joint Municipal Airports

Effective Dates. Acts 1939, No. 80, § 3: approved Feb. 14, 1939. Emergency clause provided: “It is ascertained and hereby declared that the number of airports in this State is wholly insufficient for the safety of those traveling by air; that more places where airplanes can land without danger are essential to the public safety; that for the public safety it is necessary to facilitate their construction; that by the passage of this act many cities and towns in Arkansas in close proximity to each other, which are otherwise financially unable to do so, could provide such airports and thereby add to the safety of the lives of the inhabitants of the State. Therefore an emergency is hereby declared to exist, and this act being necessary for the preservation of the public peace, health and safety, shall be in full force and effect immediately on its passage.”

Case Notes

Constitutionality.

The Arkansas Constitution does not prohibit two cities from owning property as tenants in common, and this subchapter being constitutional, cities have the authority to issue bonds and levy a tax to pay for the airport. Ragsdale v. Hargraves, 198 Ark. 614, 129 S.W.2d 967 (1939).

14-360-201. Authorization.

Any two (2) or more municipal corporations in the State of Arkansas may own and hold in joint tenancy, by gift or purchase, lands for use as airports or flying fields, which may be located either within or without their corporate limits, and may enter into contracts or agreements with each other, authorized by ordinances, for their joint operation, control, maintenance, improvement, and development.

History. Acts 1939, No. 80, § 1; A.S.A. 1947, § 74-206.

14-360-202. Administration.

The councils of municipal corporations shall provide, by ordinances, for a joint airport commission for the control and administration of joint airports or flying fields with such powers, including the fixing of proper charges for their use and the expenditure of the revenues therefrom, and to be composed of such numbers of members representing each municipal corporation, as the ordinances may provide.

History. Acts 1939, No. 80, § 2; A.S.A. 1947, § 74-207.

Subchapter 3 — Improvements

Preambles. Acts 1959, No. 175 contained a preamble which read, “Whereas, Municipal Airport Commissions are in need of additional funds for the proper operation, maintenance and development of airports under their jurisdiction, and sufficient funds are not available from the revenues derived from the ordinary operation of airports or from revenues derived from ordinary tax sources; and

“Whereas, Municipal airports often comprise lands located contiguous to and adjoining, but outside of, the actual flying field together with its appurtenant areas used for airport buildings and related airport facilities, which lands are presently lying idle but may be devoted to income producing uses by the Municipal Airport Commissions; and

“Whereas, the purpose of this Act is to enable the Municipal Airport Commissions to obtain an additional source of revenues for the operation, maintenance and development of airports under their jurisdiction by putting to revenue producing use lands under their jurisdiction which are not being used for the actual operation of the municipal airport or for uses incidental to such airport operation….”

Effective Dates. Acts 1959, No. 175, § 9: Mar. 4, 1959. Emergency clause provided: “It is hereby found and declared that the municipal airports are in need of funds for their proper operation, maintenance and development and that sufficient funds are not available from the revenues derived from the ordinary operation of the airport or from funds furnished by municipalities obtained from ordinary tax sources, and therefore additional sources of obtaining revenues are immediately necessary. It is, therefore, declared that an emergency exists and this Act being necessary for the public peace, health and safety, shall take effect and be in force from and after its passage and approval.”

Acts 1970 (Ex. Sess.), No. 34, § 4: Mar. 13, 1970. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health, and safety, shall be in effect from and after its passage and approval.”

Acts 1975, No. 301, § 6: Mar. 3, 1975. Emergency clause provided: “It has been found and it is hereby declared by the General Assembly of the State of Arkansas that some Arkansas municipalities prefer to operate their municipal airports other than through an airport commission and that there is no valid reason why they should be restricted in that regard, that the inability, under existing law, of municipalities to convey mortgage liens as security for the payment of airport revenue bonds issued for the purpose of constructing industrial or similar improvements restricts severely the ability of municipalities to finance such improvements, that the conveyance of mortgage liens is customary in connection with the issuance of bonds for such purposes and that it is essential to the continued economic and industrial development of the State of Arkansas that immediate provision be made for the adequate security of bonds issued for such purposes. Therefore, an emergency is declared to exist and this Act, being immediately necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 1981, No. 425, § 54: Mar. 11, 1981. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

14-360-301. Authority granted cumulative.

The authority granted by this subchapter shall be cumulative and granted in addition to any authority previously granted by other acts, specifically including but not limited to all authority granted by Acts 1949, No. 53, known as the “Airport Commission Act”.

History. Acts 1959, No. 175, § 5; A.S.A. 1947, § 74-523.

14-360-302. Authority to erect.

Any city owning a municipal airport is authorized and empowered to erect and construct buildings, structures, and other improvements, whether or not they are essential to, connected with, or incidental to the operation of the airport and airport facilities, upon municipal airport property, that is, upon lands which are managed and operated by the city, by its governing body, or through its airport commission or other designated municipal agency in conjunction with, or as a part of, the municipal airport.

History. Acts 1959, No. 175, § 1; 1975, No. 301, § 1; A.S.A. 1947, § 74-519.

Case Notes

Leases to Private Businesses.

Although it is convenient for patrons of the airport to have certain private businesses located on airport property, their primary purposes are private, and, consequently, the tracts leased from the airport by the private businesses are not exempt from ad valorem county taxation. City of Little Rock v. McIntosh, 319 Ark. 423, 892 S.W.2d 462 (1995).

14-360-303. Recommendation by commission.

The authority granted by this subchapter to a city may be exercised by the governing body of the city, in its discretion, only after it has received the recommendation of its airport commission in the form of a resolution of the airport commission.

History. Acts 1959, No. 175, § 2; A.S.A. 1947, § 74-520.

14-360-304. Operation after completion.

The airport commission is authorized and empowered to operate the buildings, structures, or other improvements, after the completion thereof, including, without limiting the generality of this grant, the execution of lease agreements covering the leasing of space therein in such form, for such terms, with such provisions, for such amounts, and with such parties including, but not limited to, governmental agencies and private businesses of any nature, whether or not they are essential to, connected with, or incidental to the operation of the airport and airport facilities, as the commission shall determine.

History. Acts 1959, No. 175, § 3; A.S.A. 1947, § 74-521.

Case Notes

Taxation.

Although it is convenient for patrons of the airport to have certain private businesses located on airport property, their primary purposes are private, and, consequently, the tracts leased from the airport by the private businesses are not exempt from ad valorem county taxation. City of Little Rock v. McIntosh, 319 Ark. 423, 892 S.W.2d 462 (1995).

14-360-305. Borrowing of funds and revenue bonds — Authorization to contract.

A city is authorized and empowered to enter into the necessary contracts for the borrowing of all funds that it may determine will be required in connection with the financing of the structures, buildings, or other improvements or the construction of extensions, additions, or improvements thereto, after the original construction is completed, including architectural, engineering, legal, or other similar expenses.

History. Acts 1959, No. 175, § 4; 1970 (Ex. Sess.), No. 34, § 1; 1975, No. 301, § 2; 1981, No. 425, § 41; A.S.A. 1947, § 74-522.

14-360-306. Borrowing of funds and revenue bonds — Issuance.

  1. In evidence of any loan of funds, the city is authorized and empowered to issue its negotiable coupon revenue bonds.
    1. The bonds shall be authorized by ordinance duly enacted by the governing body of the city and shall be executed by its mayor and city clerk.
    2. In case any of the officers whose signatures appear on the bonds or coupons shall cease to be officers before the delivery of the bonds or coupons, the signatures shall nevertheless be valid and sufficient for all purposes.
  2. As the ordinance may provide, the bonds may:
    1. Be issued in one (1) or more series;
    2. Bear such date or dates;
    3. Mature at such time or times, not exceeding forty (40) years from their respective dates;
    4. Bear interest at such rate or rates;
    5. Be in such form;
    6. Be executed in such manner;
    7. Be payable in such medium of payment, at such place or places;
    8. Be subject to such terms of redemption;
    9. Be registrable as to principal only; and
    10. Contain such terms, covenants, and conditions as the ordinance may provide. Priority between and among successive issues may be controlled by the ordinance, and the ordinance may provide for the maintenance of any adequate reserve for contingencies.
  3. The bonds may be sold for such price and in such manner as the city may determine by ordinance duly adopted by its governing body.
  4. The coupons attached to the bonds may be executed by the facsimile signature of the mayor of the city.
  5. The bonds may be sold with the privilege of conversion into an issue bearing other rate or rates of interest but only on the condition that the city receive no less and pay no more than it would receive and pay if the bonds were not converted, and the conversion shall be subject to the approval of the city.
  6. The bonds shall have all the qualities and incidents of negotiable instruments under the commercial paper laws of the state.

History. Acts 1959, No. 175, § 4; 1970, (Ex. Sess.), No. 34, § 1; 1975, No. 301, § 2; 1981, No. 425, § 41; A.S.A. 1947, § 74-522.

14-360-307. Borrowing of funds and revenue bonds — Payment and indebtedness.

  1. The bonds and interest thereon shall be payable solely from and secured by a pledge of the gross revenues derived from the operation or the lease of the buildings, structures, or other improvements, or other revenues obtained from the operation of the airport.
  2. The pledge shall be subject to the restriction that the municipality shall never in any fiscal year be bound beyond an amount that would, together with the other expenditures and contracts of the municipality, call for a payment or payments in that fiscal year in excess of the total revenue for the municipality for that fiscal year, so that the municipality shall never at any time by its contract or pledge of gross revenues and rentals violate the provisions of Arkansas Constitution, Amendment 10.
  3. The bonds shall, in no event, constitute an indebtedness of the municipality within the meaning of any constitutional provisions or limitations.

History. Acts 1959, No. 175, § 4; 1970, (Ex. Sess.), No. 34, § 1; 1975, No. 301, § 2; 1981, No. 425, § 41; A.S.A. 1947, § 74-522.

14-360-308. Borrowing of funds and revenue bonds — Statements on bonds.

It shall be plainly stated upon the face of each bond that it has been issued under the provisions of this subchapter and that it does not constitute an indebtedness of the municipality within any constitutional or statutory limitation.

History. Acts 1959, No. 175, § 4; 1970, (Ex. Sess.), No. 34, § 1; 1975, No. 301, § 2; 1981, No. 425, § 41; A.S.A. 1947, § 74-522.

14-360-309. Borrowing of funds and revenue bonds — Performance required.

  1. Subject to such restrictions as may be contained in the ordinance authorizing the issuance of the bonds issued under this subchapter or other contract with the bondholders as well as such restrictions contained in contracts with the bondholders of other prior issues, any holder of bonds issued under the provisions of this subchapter or of any coupon representing interest accrued thereon may, by proper suit, compel the performance of the duties of the officials of the issuing city or its airport commission set forth in this subchapter.
  2. If there is default in the payment of the principal of or interest upon any of the bonds, any court having jurisdiction in any proper action may appoint a receiver to operate the buildings, structures, or other improvements authorized by this subchapter on behalf of the city or its airport commission with power to operate or lease them in order to obtain funds for the payment of the bonds and interest thereon, and for the payment of the operation and maintenance expenses, and to apply the income and revenues in conformity with this subchapter and the ordinance providing for the issuance of the bonds.
  3. Any covenants and agreements entered into by the city shall be binding in all respects upon successive governing bodies of the city and the airport commission and its successors in accordance with the terms of such covenants and agreements.

History. Acts 1959, No. 175, § 4; 1970, (Ex. Sess.), No. 34, § 1; 1975, No. 301, § 2; 1981, No. 425, § 41; A.S.A. 1947, § 74-522.

14-360-310. Borrowing of funds and revenue bonds — Mortgage lien.

  1. Anything herein to the contrary notwithstanding, the ordinance authorizing issuance of the bonds may impose a foreclosable mortgage lien upon the buildings, structures, or other improvements constructed under the authority of this subchapter and upon the lands upon which such improvements are located.
  2. The nature and extent of the mortgage lien may be controlled by the ordinance including, without limitation, provisions pertaining to the release of all, or part of, the lands or improvements from the mortgage lien and the priority of mortgage liens in the event of successive bond issues.
  3. Subject to such terms, conditions, and restrictions as may be contained in the ordinance, any holder of bonds issued under the authority of this subchapter or of any coupon attached thereto may, either at law or in equity, enforce the mortgage lien and may, by proper suit, compel the performance of the duties of the officials of the city or its airport commission, as set forth in this subchapter and as set forth in the ordinance authorizing the bonds.

History. Acts 1959, No. 175, § 4; 1970, (Ex. Sess.), No. 34, § 1; 1975, No. 301, § 2; 1981, No. 425, § 41; A.S.A. 1947, § 74-522.

14-360-311. Borrowing of funds and revenue bonds — Refunding bonds.

  1. The city may issue bonds under this subchapter for the purpose of refunding, at a rate or rates of interest not exceeding the maximum rate otherwise authorized in this section, any obligations of the city theretofore issued under this subchapter or under other authority or may authorize and deliver a single issue of bonds under this subchapter in part for the purpose of refunding such obligations and in part for the purpose of erecting and constructing buildings, structures, and other improvements authorized by this subchapter, or extensions, additions, or improvements thereto.
    1. When bonds are issued under this section for refunding purposes, the bonds may either be sold or delivered in exchange for the outstanding obligations.
    2. If sold, the proceeds may be either applied to the payment of the obligations refunded or deposited in escrow for the retirement thereof.
  2. All bonds issued under this subsection shall in all respects be authorized, issued, and secured in the manner provided for other bonds issued under this subchapter and shall have all the attributes of such bonds.
  3. The city may provide that any refunding bonds shall have the same priority of lien on the revenues pledged for their payment as was enjoyed by the obligations thereby refunded.

History. Acts 1959, No. 175, § 4; 1970, (Ex. Sess.), No. 34, § 1; 1975, No. 301, § 2; 1981, No. 425, § 41; A.S.A. 1947, § 74-522.

14-360-312. Borrowing of funds and revenue bonds — Exemption from certain taxes.

  1. Bonds issued under the provisions of this subchapter shall be exempt from all state, county, and municipal taxes.
  2. This exemption shall include income taxation and inheritance taxation.

History. Acts 1959, No. 175, § 4; 1970 (Ex. Sess.), No. 34, § 1; 1975, No. 301, § 2; 1981, No. 425, § 41; A.S.A. 1947, § 74-522.

A.C.R.C. Notes. Language excluding property taxes from the exemption provided by this section was deleted pursuant to Arkansas Constitution, Amendment 57, § 1, and § 26-3-302. The Arkansas Constitution, Amendment 57, § 1, provides that the General Assembly may classify intangible personal property for assessment at lower percentages of value than other property and may exempt one or more classes of intangible personal property from taxation, or may provide for the taxation of intangible personal property on a basis other than ad valorem. Section 26-3-302 exempts all intangible personal property in this state from all ad valorem tax levies of counties, cities, and school districts in the state as of January 1, 1976.

14-360-313. Use of operational revenue.

Subject to such restrictions as may be contained in the ordinance authorizing the issuance of the bonds issued under this subchapter or other contract with the bondholders, as well as restrictions contained on contracts with the bondholders of other prior issues, all revenues derived from the operation and the lease of buildings, structures, or other improvements in excess of those required for payment of and interest upon the bonds, plus any reserve for contingencies, plus those funds required for operation and maintenance expenses for the buildings, structures, or other improvements, shall be used by the airport commission only for the purpose of expansion, maintenance, or operation of the airport or any of its facilities, buildings, or other improvements. This may include the payment of principal of and interest upon other bonds issued under this subchapter, or of other prior issues, and for no other purpose.

History. Acts 1959, No. 175, § 5; A.S.A. 1947, § 74-523.

Chapter 361 Airports In Border Municipalities

Effective Dates. Acts 1953, No. 128, § 23: approved Feb. 23, 1953. Emergency clause provided: “It has been found and is declared by the General Assembly that the present laws of this State dealing with aeronautics are inadequate; further, that this great industry is growing to immense proportions, and the further fact that the public welfare will best be served by the passage of this Act, therefore, an emergency is hereby declared to exist, and this Act being necessary for the preservation of the public peace, health and safety, shall take effect and be in full force from and after its passage.”

Acts 1970 (Ex. Sess.), No. 42, § 4: Mar. 13, 1970. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 1975, No. 225, § 26: became law without Governor's signature, Feb. 19, 1975. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this state and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 1981, No. 425, § 54: Mar. 11, 1981. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Research References

ALR.

Zoning regulations limiting use of property near airport as taking of property. 18 A.L.R.4th 542.

Airport operations or flight of aircraft as constituting taking or damaging of property. 22 A.L.R.4th 863.

Damages resulting from temporary conditions incident to public improvements or repairs as compensable taking. 23 A.L.R.4th 674.

14-361-101. Title.

This chapter may be cited as the “Municipal Airports Act.”

History. Acts 1953, No. 128, § 22; A.S.A. 1947, § 74-620.

14-361-102. Definitions.

As used in this chapter, unless the context otherwise requires:

  1. “Airport” means any area of land or water which is used, or intended for use, for the landing and takeoff of aircraft and any appurtenant areas which are used, or intended for use, for airport buildings or other airport facilities or rights-of-way, together with all airport buildings and facilities located thereon;
  2. “Air navigation facility” means any facility, other than one owned and operated by the United States, used in, available for use in, or designed for use in aid of air navigation, including any structures, mechanism, lights, beacons, markers, communicating systems, or other instrumentalities or devices used or useful as an aid, or constituting an advantage or convenience, to the safe taking off, navigation, and landing of aircraft or the safe and efficient operation or maintenance of an airport and any combination of any or all of these facilities;
  3. “Airport hazard” means any structure, object of natural growth, or use of land which obstructs the airspace required for the flight of aircraft in landing or taking off at an airport or is otherwise hazardous to the landing or taking off of aircraft;
  4. “Municipality” means any municipality of the first or second class, the city limits of which are within five (5) miles of a boundary line of this state; and
  5. “Person” means any individual, firm, partnership, corporation, company, association, joint-stock association, or body politic and includes any trustee, receiver, assignee, or other similar representative thereof.

History. Acts 1953, No. 128, § 1; A.S.A. 1947, § 74-601.

14-361-103. Construction.

  1. This chapter shall be interpreted and construed so as to make uniform so far as possible the laws, rules, and regulations of this state and other states and of the United States Government having to do with the subject of municipal airports.
  2. This chapter is cumulative of and in addition to all laws of the State of Arkansas on this subject.

History. Acts 1953, No. 128, §§ 19, 21; A.S.A. 1947, §§ 74-619, 74-619n; Acts 2019, No. 315, § 1049.

Amendments. The 2019 amendment inserted “rules” in (a).

Case Notes

Cited: Kirksey v. City of Fort Smith, 227 Ark. 630, 300 S.W.2d 257, 66 A.L.R.2d 627 (1957).

14-361-104. Powers of municipalities generally.

  1. Establishment, Operation, and Land Acquisition. Every municipality as defined in § 14-361-102 is authorized, out of any appropriations or other moneys made available for such purposes, to plan, establish, develop, construct, enlarge, improve, maintain, equip, operate, regulate, protect, and police airports and air navigation facilities, either within or without the territorial limits of the municipality and within or without the territorial boundaries of this state, including the construction, installation, equipment, maintenance, and operation at such airports of buildings and other facilities for the servicing of aircraft or for the comfort and accommodation of air travelers, and the purchase and sale of supplies, goods, and commodities as an incident to the operation of its airport properties. For such purposes, the municipality may use any available property that it may own or control and may, by purchase, gift, devise, lease, eminent domain proceedings, or otherwise, acquire real or personal property or any interest therein, including easements in airport hazards or land outside the boundaries of an airport or airport site, as are necessary to permit safe and efficient operation of the airport or to permit the removal, elimination, obstruction-marking of obstructions, lighting of airport hazards, or to prevent the establishment of airport hazards.
  2. Acquisition of Existing Airports. The municipality may, by purchase, gift, devise, lease, proceedings, or otherwise, acquire existing airports and navigation facilities. However, it shall not acquire or take over any airport or air navigation facility owned or controlled by another municipality or public agency of this or any other state without the consent of the municipality or public agency.
  3. Establishment of Airport on Public Waters and Reclaimed Lands. For the purposes of this chapter, a municipality may establish or acquire and maintain, within or bordering upon the territorial limits of the municipality, airports in, over, and upon any public waters of this state, any submerged lands under public waters, and any artificial or reclaimed lands which, before the artificial making or reclamation thereof, constituted a portion of the submerged lands under public waters and may construct and maintain terminal buildings, landing floats, causeways, roadways, and bridges for approaches to or connecting with any such airport, and landing floats and breakwaters for the protection thereof.
  4. Limitation on Design and Operation of Air Navigation Facilities. All air navigation facilities established or operated by municipalities shall be supplementary to and coordinated in design and operation with those established and operated by the federal and state governments.

History. Acts 1953, No. 128, § 2; A.S.A. 1947, § 74-602.

Cross References. Acquisition of airports outside of state, § 14-360-104.

Case Notes

Operation and Maintenance.

The operation and maintenance of a municipal airport by a city constitutes a governmental and not a proprietary function. Kirksey v. City of Fort Smith, 227 Ark. 630, 300 S.W.2d 257, 66 A.L.R.2d 627 (1957).

A municipal corporation is not liable for a tort committed in connection with the operation and maintenance of its airport. Kirksey v. City of Fort Smith, 227 Ark. 630, 300 S.W.2d 257, 66 A.L.R.2d 627 (1957).

14-361-105. Supplementary powers.

In addition to the general and special powers conferred by this chapter, every municipality is authorized to exercise such powers as are necessarily incidental to the exercise of the conferred general and special powers.

History. Acts 1953, No. 128, § 17; A.S.A. 1947, § 74-617.

14-361-106. Functions — Public and governmental.

  1. The acquisition of any land or interest therein pursuant to this chapter, the planning, acquisition, establishment, development, construction, improvement, maintenance, equipment, operation, regulation, protection, and policing of airports and air navigation facilities, including the acquisition or elimination of airport hazards, and the exercise of any other powers granted in this chapter to municipalities and public agencies thereof, to be severally or jointly exercised, are declared to be public and governmental functions, exercised for a public purpose, and matters of public necessity. In the case of any municipality, they are declared to be municipal functions and purposes as well as public and governmental.
  2. All land and other property and privileges acquired and used by or on behalf of any municipality or other public agency in the manner and for the purposes enumerated in this chapter shall be acquired and used for public and governmental purposes and as a matter of public necessity and for municipal purposes.

History. Acts 1953, No. 128, § 15; A.S.A. 1947, § 74-615.

Research References

Ark. L. Rev.

Expansion of Municipal Corporation Tort Liability — A Legislative Responsibility, 14 Ark. L. Rev. 313.

Case Notes

Maintenance and Operation.

The maintenance and operation of a municipal airport is in the interest of the public generally, and it is within the province of the legislature to determine that it constitutes a governmental function. Kirksey v. City of Fort Smith, 227 Ark. 630, 300 S.W.2d 257, 66 A.L.R.2d 627 (1957).

14-361-107. Operation and use privileges.

  1. Under Municipal Operation. In operating an airport or air navigation facility owned, leased, or controlled by a municipality, the municipality, except as may be limited by the terms and conditions of any grant, loan, or agreement pursuant to § 14-361-117, may enter into contracts, leases, and other arrangements with any persons:
    1. Granting the privilege of using or improving the airport or air navigation facility, or any portion or facility thereof, or space therein for commercial purposes;
    2. Conferring the privilege of supplying goods, commodities, things, services, or facilities at that airport or air navigation facility; or
      1. Making available services to be furnished by the municipality or its agents at that airport or navigation facility.
      2. In each case, the municipality may establish the terms and conditions and fix the charges, rentals, or fees for the privileges or services, which shall be reasonable and uniform for the same class of privilege or service and shall be established with due regard to the property and improvements used and the expenses of operation to the municipality.
  2. Under Other Operation. Except as may be limited by the terms and conditions of any grant, loan, or agreement pursuant to § 14-361-117, a municipality, by contract, lease, or other arrangement, upon a consideration fixed by it, may grant to any qualified person, for a term not to exceed forty (40) years, the privilege of operating as agent of the municipality, or otherwise, any airport owned or controlled by the municipality. No person shall be granted any authority to operate the airport other than a public airport or to enter into any contracts, leases, or other agreements in connection with the operation of the airport which the municipality might not have undertaken under subsection (a) of this section.

History. Acts 1953, No. 128, § 4; A.S.A. 1947, § 74-604; Acts 1997, No. 334, § 1.

14-361-108. Contracts.

A municipality may enter into any contracts necessary to the execution of the powers granted it and for the purposes provided by this chapter.

History. Acts 1953, No. 128, § 13; A.S.A. 1947, § 74-613.

14-361-109. Disposal of property.

  1. Except as may be limited by the terms and conditions of any grant, loan, or agreement pursuant to § 14-361-117, every municipality may, by sale, lease, or otherwise, dispose of any airport, air navigation facility, or other property, or portion thereof or interest therein, acquired pursuant to this chapter.
    1. Disposal by sale, lease, or otherwise shall be in accordance with the laws of this state, or provisions of the charter of the municipality, governing the disposition of other property of the municipality.
    2. In the case of disposal to another municipality or agency of the state or federal government for aeronautical purposes incident thereto, the sale, lease, or other disposal may be effected in such manner and upon such terms as the governing body of the municipality may deem in the best interest of the municipality.

History. Acts 1953, No. 128, § 3; A.S.A. 1947, § 74-603.

14-361-110. Delegation of authority.

Any authority vested by this chapter in a municipality, or in the governing body thereof, for the planning, establishment, development, construction, enlargement, improvement, maintenance, equipment, operation, regulation, protection, and policing of airports or other air navigation facilities established, owned, or controlled or to be established, owned, or controlled by the municipality may be vested by resolution of the governing body of the municipality in an officer or board or other municipal agency whose powers and duties shall be prescribed in the resolution. However, the expense of such planning, establishment, development, construction, enlargement, improvement, maintenance, equipment, operation, regulation, protection, and policing shall be a responsibility of the municipality.

History. Acts 1953, No. 128, § 6; A.S.A. 1947, § 74-606.

14-361-111. Jurisdiction and regulation.

  1. Scope.
      1. A municipality, which has established or acquired an airport or air navigation facility is authorized to adopt, amend, and repeal such reasonable ordinances, resolutions, rules, regulations, and orders as it shall deem necessary for the management, government, and use of the airport or air navigation facility under its control, whether situated within or without the territorial limits of the municipality.
        1. For the enforcement of them, the municipality, by ordinance or resolution as may by law be appropriate, may appoint airport guards or police, with full police powers, and fix penalties, within the limits prescribed by law, for the violation of the ordinances, resolutions, rules, regulations, and orders.
        2. The penalties shall be enforced in the same manner in which penalties prescribed by other ordinances or resolutions of the municipality are enforced.
    1. To the extent that an airport or other air navigation facility controlled and operated by a municipality is located outside the territorial limits of the municipality, it shall, subject to federal and state laws, rules, and regulations, be under the jurisdiction and control of the municipality controlling or operating it, and no other municipality shall have any authority to charge or exact a license fee or occupation tax for operations thereon.
  2. Conformity to Federal and State Law. No ordinance, resolution, rule, regulation, or order adopted by a municipality pursuant to this chapter shall be inconsistent with, or contrary to, any act of the Congress of the United States or laws of this state, or to any regulations promulgated or standards established pursuant to them.

History. Acts 1953, No. 128, § 7; A.S.A. 1947, § 74-607.

14-361-112. Zoning.

Nothing contained in this chapter shall be construed to limit any right, power, or authority of a municipality to regulate airport hazards by zoning.

History. Acts 1953, No. 128, § 18; A.S.A. 1947, § 74-618.

14-361-113. Liens.

To enforce the payment of any charges for repairs or improvements to, or storage or care of, any personal property made or furnished by the municipality or its agents, in connection with the operation of an airport or air navigation facility owned or operated by the municipality, the municipality shall have liens on the property, which shall be enforceable by the municipality as provided by law.

History. Acts 1953, No. 128, § 5; A.S.A. 1947, § 74-605.

14-361-114. Issuance of bonds.

    1. The cost of planning, acquiring, establishing, developing, constructing, enlarging, improving, or equipping an airport or air navigation facility, or the site therefor, including buildings and other facilities incidental to the operation thereof, and the acquisition or elimination of airport hazards may be paid for, wholly or partly, from the proceeds of the sale of bonds of the municipality, as the governing body of the municipality shall determine.
      1. For these purposes, a municipality may issue general or special obligation bonds, revenue bonds, or other forms of bonds, secured or unsecured, including refunding bonds.
        1. All bonds issued by a municipality pursuant to this chapter which are payable, as to principal and interest, solely from the revenues of an airport or air navigation facility shall so state on their face.
        2. In any suit, action, or proceeding involving the security, or the validity or enforceability, of any bonds issued by a municipality, which bonds state on their face that they were issued pursuant to the provisions of this chapter and for a purpose or purposes authorized to be accomplished by this chapter, the bonds shall be conclusively deemed to have been issued pursuant to this chapter for such purposes.
  1. Bonds issued under the authority of this chapter shall bear interest at a rate or rates as the ordinances authorizing their issuance may provide.

History. Acts 1953, No. 128, § 9; 1970 (Ex. Sess.), No. 42, § 1; 1975, No. 225, § 2; 1981, No. 425, § 2; A.S.A. 1947, § 74-609.

14-361-115. Validation of prior actions.

  1. Any acquisition of property previously made, within or without the limits of any municipality of the state, for the purposes authorized by this chapter, and any other action heretofore taken by a municipality in the furtherance of these purposes including, but not limited to, the making of appropriations, the expenditure of money, the incurring of debts, the acceptance and disbursement of federal, state, or other grants or loans, the issuance and payment of bonds, or the execution of leases and contracts, which acquisition or action would have been authorized had this chapter been in effect at the time of the acquisition or action, is ratified and made valid.
  2. All bonds previously issued in furtherance of purposes authorized by this chapter and actions ratified by this section are confirmed as legal obligations of the municipality, and without prejudice to the general powers granted to the municipality by this chapter, the municipality is authorized to issue further bonds for these purposes up to the limit fixed in the original authorization therefor, which bonds shall be legal obligations in accordance with their terms.

History. Acts 1953, No. 128, § 10; A.S.A. 1947, § 74-610.

14-361-116. Disposition of revenues.

  1. The revenues obtained by a municipality from the ownership, control, or operation of any airport or air navigation facility, including proceeds from the sale of any airport or portion thereof or air navigation facility property, shall be deposited in a special fund to be called the “ Airport Fund.”
  2. The revenues shall be appropriated solely to, and used by the municipality for, the purposes authorized by this chapter.

History. Acts 1953, No. 128, § 11; A.S.A. 1947, § 74-611.

14-361-117. Federal and state aid.

  1. Acceptance Authorized, Conditions.
    1. Every municipality is authorized to accept, receive, receipt for, disburse, and expend federal and state moneys and other moneys, public or private, made available by grant or loan, or both, to accomplish, in whole or in part, any of the purposes of this chapter.
      1. All federal moneys accepted under this section shall be accepted and expended by the municipality upon such terms and conditions as are prescribed by the United States and as are consistent with state law.
      2. All state moneys accepted under this section shall be accepted and expended by the municipality upon such terms and conditions as are prescribed by the state.
    2. Unless otherwise prescribed by the agency from which the moneys were received, the chief financial officer of the municipality shall, on its behalf, deposit all moneys received pursuant to this section and shall keep them, in separate funds designated according to the purposes for which the moneys were made available, in trust for these purposes.
  2. Aeronautics Commission as Agent.
        1. A municipality is authorized to designate the Arkansas Department of Aeronautics as its agent to accept, receive, receipt for, and disburse federal and state moneys and other moneys, public or private, made available by grant or loan, or both, to accomplish, in whole or in part, any of the purposes of this chapter and to designate the commission as its agent in contracting for and supervising the planning, acquisition, development, construction, improvement, maintenance, equipment, or operation of any airport or other air navigation facility.
        2. All contracts made, let, or awarded by the department, acting as agent of a municipality under authority of this section, shall be made, let, or awarded pursuant to the laws governing the making of contracts by or on behalf of the state.
      1. The municipality may enter into an agreement with the department prescribing the terms and conditions of the agency in accordance with such terms and conditions as are prescribed by the United States, if federal money is involved, and in accordance with the applicable laws of this state.
      1. All federal moneys shall be accepted and transferred or expended by the commission upon such terms and conditions as are prescribed by the United States.
      2. All moneys received by the department pursuant to this subsection shall be deposited in the State Treasury and, unless otherwise prescribed by the agency from which the moneys were received, shall be kept in separate funds designated according to the purposes for which the moneys were made available and held by the state in trust for these purposes.

History. Acts 1953, No. 128, § 12; A.S.A. 1947, § 74-612.

14-361-118. Joint operations — Authorization.

    1. For the purposes of this section and §§ 14-361-119 — 14-361-122, unless the context otherwise requires, the term “public agency” includes municipality, as defined in this chapter, any agency of the state government and of the United States, and any municipality, political subdivision, and agency of another state; and
    2. The term “governing body” means the governing body of the municipality, and the head of the agency if the public agency is other than a municipality.
    1. All powers, privileges, and authority granted to any municipality by this chapter may be exercised and enjoyed jointly with any public agency of any other state or of the United States to the extent that the laws of such other state or of the United States permit such joint exercise or enjoyment.
    2. If not otherwise authorized by law, any agency of the state government, when acting jointly with any municipality, may exercise and enjoy all of the powers, privileges, and authority conferred by this chapter upon a municipality.

History. Acts 1953, No. 128, § 14; A.S.A. 1947, § 74-614.

14-361-119. Joint operations — Agreements.

  1. Any two (2) or more public agencies may enter into agreements with each other for joint action pursuant to the provisions of this chapter, and any two (2) or more municipalities are specially authorized to make such agreement or agreements as they may deem necessary for the joint acquisition and operation of airports and air navigation facilities.
    1. Concurrent action by ordinance, resolution, or otherwise of the governing bodies of the participating public agencies shall constitute joint action.
    2. Each such agreement shall specify:
      1. Its duration;
      2. The proportionate interest which each public agency shall have in the property;
      3. Facilities and privileges involved;
      4. The proportion to be borne by each public agency of preliminary costs and costs of acquisition, establishment, construction, enlargement, improvement, and equipment of the airport or air navigation facility;
      5. The proportion of the expenses of maintenance, operation, regulation, and protection thereof to be borne by each; and
      6. Such other terms as are required by the provisions of this section.
    3. The agreement may also provide for:
      1. Amendments thereof, and conditions and methods of termination of the agreement;
      2. The disposal of all or any of the property, facilities, and privileges jointly owned, prior to or upon the property, facilities, and privileges, or any part thereof, ceasing to be used for the purposes provided in this chapter, or upon termination of the agreement;
      3. The distribution of the proceeds received upon any such disposal, and of any funds or other property jointly owned and undisposed of;
      4. The assumption or payment of any indebtedness arising from the joint venture which remains unpaid upon the disposal of all assets or upon a termination of the agreement; and
      5. Such other provisions as may be necessary or convenient.

History. Acts 1953, No. 128, § 14; A.S.A. 1947, § 74-614.

14-361-120. Joint operations — Joint boards.

    1. Public agencies acting jointly pursuant to this section shall create a joint board which shall consist of members appointed by the governing body of each participating public agency.
    2. The number to be appointed, their term, and compensation, if any, shall be provided for in the joint agreement.
  1. Each joint board shall organize, select officers for terms to be fixed by the agreement, and adopt and amend, from time to time, rules for its own procedure.
  2. The joint board shall have power to plan, acquire, establish, develop, construct, enlarge, improve, maintain, equip, operate, regulate, protect, and police any airport or air navigation facility or airport hazard to be jointly acquired, controlled, and operated, and the board may exercise, on behalf of its constituent public agencies, all the powers of each with respect to the airport, air navigation facility, or airport hazard, subject to the limitations of § 14-361-121.

History. Acts 1953, No. 128, § 14; A.S.A. 1947, § 74-614.

14-361-121. Joint operations — Limitations on joint boards.

  1. Expenditures. The total expenditures to be made by the joint board for any purpose in any calendar year shall be determined by a budget approved by the governing bodies of its constituent public agencies on or before the preceding December 1.
  2. Acquisitions Beyond Sums Allotted. No airport, air navigation facility, airport hazard, or real or personal property, the cost of which is in excess of sums therefor fixed by the joint agreement or allotted in the annual budget, may be acquired by the joint board without the approval of the governing bodies of its constituent public agencies.
  3. Eminent Domain.
    1. Eminent domain proceedings under this section may be instituted only by authority of the governing bodies of the constituent public agencies of the joint board.
    2. If so authorized, these proceedings shall be instituted in the names of the constituent public agencies jointly, and the property so acquired shall be held by the public agencies as tenants in common until conveyed by them to the joint board.
  4. Disposal of Real Property. The joint board shall not dispose of any airport, air navigation facility, or real property under its jurisdiction except with the consent of the governing bodies of its constituent public agencies. However, the joint board may, without such consent, enter into the contract, lease, or other arrangements contemplated by § 14-361-107.
  5. Police Regulations. Any resolutions, rules, regulations, or orders of the joint board dealing with subjects authorized by § 14-361-111 shall become effective only upon approval of the governing bodies of the constituent public agencies provided that, upon such approval, the resolutions, rules, regulations, or orders of the joint board shall have the same force and effect in the territories or jurisdictions involved as the ordinances, resolutions, rules, regulations, or orders of each public agency would have in its own territory or jurisdiction.

History. Acts 1953, No. 128, § 14; A.S.A. 1947, § 74-614.

14-361-122. Joint operations — Joint fund.

    1. For the purpose of providing a joint board with moneys for the necessary expenditures in carrying out the provisions of this section and §§ 14-361-118 — 14-361-121, a joint fund shall be created and maintained, into which shall be deposited the share of each of the constituent public agencies as provided by the joint agreement.
    2. Each of the constituent public agencies shall provide its share of the fund from sources available to each.
    1. Any federal, state, or other contributions or loans, and the revenues obtained from the joint ownership, control, and operation of any airport or air navigation facility under the jurisdiction of the joint board, shall be paid into the joint fund.
    2. Disbursements from the fund shall be made by order of the board, subject to the limitations prescribed in § 14-361-121.

History. Acts 1953, No. 128, § 14; A.S.A. 1947, § 74-614.

14-361-123. Levy of special tax.

In addition to and exclusive of any taxes which may be levied for the interest and sinking fund of any bonds, notes, or time warrants issued under authority of this chapter or any other act of the General Assembly authorizing municipalities to issue such bonds, notes, or warrants for airport purposes, the governing body of any municipality may levy and collect a special tax for the purpose of improving, operating, maintaining, and conducting an airport or air navigation facility, or for any other purpose falling within the purview of this chapter. However, the total of the special tax, together with all other taxes levied by the municipality, shall not exceed the limit placed on the municipal taxes by Arkansas Constitution, Article 14, § 4, nor exceed the limits of indebtedness placed upon municipalities by the constitution and laws of this state.

History. Acts 1953, No. 128, § 8; A.S.A. 1947, § 74-608.

14-361-124. Tax exemptions.

  1. Any property in this state acquired by a municipality for airport purposes pursuant to the provisions of this chapter and any income derived by the municipality from the ownership, operation, or control thereof, shall be exempt from taxation to the same extent as other property used for public purposes.
  2. Any municipality is authorized to exempt from municipal taxation any property acquired within its boundaries by a public agency of another state for airport purposes and any income derived from the property, to the extent that the other state authorizes similar exemptions from taxation to municipalities of this state.

History. Acts 1953, No. 128, § 16; A.S.A. 1947, § 74-616.

Case Notes

Leases to Private Businesses.

Although it is convenient for patrons of the airport to have certain private businesses located on airport property, their primary purposes are private, and, consequently, the tracts leased from the airport by the private businesses are not exempt from ad valorem county taxation. City of Little Rock v. McIntosh, 319 Ark. 423, 892 S.W.2d 462 (1995).

Cited: Kirksey v. City of Fort Smith, 227 Ark. 630, 300 S.W.2d 257, 66 A.L.R.2d 627 (1957).

Chapter 362 Regional Airports

Publisher's Notes. Because of the enactment of subchapter 2 of this chapter by Acts 2003, No. 1175, § 1, the existing provisions of this chapter have been designated as subchapter 1.

Subchapter 1 — General Provisions

Publisher's Notes. Because of the enactment of subchapter 2 of this chapter by Acts 2003, No. 1175, the existing provisions of this chapter have been designated as subchapter 1.

Effective Dates. Acts 1968 (1st Ex. Sess.), No. 17, § 22: Feb. 15, 1968. Emergency clause provided: “It is hereby found and determined by the General Assembly that there is currently no specific authority for the creation of regional airports through cooperative efforts of cities and counties, and that the existing general statutes under which such airports might be created have produced confusion as to the extent of their applicability in these circumstances; that the passage of this act will make it possible to provide the necessary airport facilities on a regional basis to meet the air travel needs of the public. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety, shall be in effect from the date of its passage and approval.”

Acts 1970 (Ex. Sess.), No. 63, § 4: Mar. 13, 1970. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1973, No. 426, § 10: Mar. 22, 1973. Emergency clause provided: “It has been found and it is hereby declared by the General Assembly that it is immediately necessary that Regional Airport Authorities of this State be authorized to levy and collect the tax authorized to be levied and collected by this Act if they are to complete the construction and equipment of facilities and properties which are essential to their growth and development and to the growth and development of the economy of the State of Arkansas and the economic welfare of her inhabitants. Therefore, an emergency is declared to exist and this Act, being immediately necessary for the preservation of the public peace, health and safety, shall be in full force and effect upon its passage and approval.”

Acts 1975, No. 225, § 26: became law without Governor's signature, Feb. 19, 1975. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this state and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this act. Therefore, an emergency is declared to exist and this act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 1981, No. 425, § 54: Mar. 11, 1981. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the financing of the public improvements to which this Act pertains is not feasible under existing maximum interest rate limitations, that the accomplishment of these public improvements is essential to the continued development of this State and the continued improvement of the economic conditions of her people, and that these public improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval.”

Acts 1992 (1st Ex. Sess.), Nos. 56 and 63, § 18: Mar. 19, 1992, and Mar. 20, 1992, respectively. Emergency clause provided: “It is hereby found and determined that there is an immediate need to facilitate the acquisition and operation of major airport facilities by regional airport authorities for the purpose of securing a developing industry within the State of Arkansas. Therefore, an emergency is hereby declared to exist, and this act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1997, No. 1245, § 6: Apr. 9, 1997. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act clarifies the definition of ‘governing body’ as used in the Revenue Bond Act of 1987 and that this act is immediately necessary to clarify the law and to avoid undue hardship and potential economic loss to governing bodies. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 1999, No. 1349, § 7: Apr. 12, 1999. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly that the current laws relating to the authority and responsibilities of regional airport authorities are unduly restrictive and render such authorities incapable of carrying out their responsibilities as prescribed by law; that this act is designed to clarify and expand the powers of such authorities and to thereby enable them to effectively and efficiently carry out their legal responsibilities and should be given effect immediately. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 1999, No. 1420, § 5: Apr. 13, 1999. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly that present law is unclear as to the authority of municipalities to annex regional airport property; that the ownership and control of regional airports should remain with the regional airport authorities; that this act clarifies the law; and that this act should go into effect as soon as possible in order to prevent litigation and detrimental outcomes. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2011, No. 334, § 3: Mar. 18, 2011. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that some tolls and fees being charged by airports in the state are much higher than the local sales tax rate; that this is inequitable; and that this act is immediately necessary because there is a high potential for an illegal exaction lawsuit against these airports. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Research References

ALR.

Zoning regulations limiting use of property near airport as taking of property. 18 A.L.R.4th 542.

Airport operations or flight of aircraft as constituting taking or damaging of property. 22 A.L.R.4th 863.

Damages resulting from temporary conditions incident to public improvements or repairs as compensable taking. 23 A.L.R.4th 674.

14-362-101. Title.

This chapter may be cited as the “Regional Airport Act.”

History. Acts 1968 (1st Ex. Sess.), No. 17, § 1; 1973, No. 426, § 1; A.S.A. 1947, § 74-216.

14-362-102. Definitions.

As used in this chapter, unless the context otherwise requires:

  1. “Authority” means any authority created under the provisions of this chapter;
  2. “Construct” means to acquire or build, in whole or in part, in such manner and by such method, including contracting therefor, and if the latter, by negotiation or bids upon such terms and pursuant to such advertising, as the authority shall determine to be in the public interest and necessary under the circumstances existing at the time to accomplish the purposes of and authorities set forth in this chapter;
  3. “County” means any county in this state;
  4. “Equip” means to install or place on or in any building or structure equipment of any and every kind, whether or not affixed, including without limiting the generality of the foregoing, building service equipment, fixtures, heating equipment, air conditioning equipment, machinery, furniture, furnishings, and personal property of every kind;
  5. “Facilities” or “property” or “properties” means any real property, personal property, or mixed property of any and every kind that can be used, or that will be useful, to accomplish the purposes of, and powers set forth in, this chapter including, without limiting the generality of the foregoing, rights-of-way, roads, streets, utilities, materials, equipment, fixtures, machinery, furnishings, furniture, instrumentalities, and other real, personal, or mixed property of every kind;
  6. “Governing body” means the council, board of directors, or city commission of any municipality or the county court of any county;
  7. “Lease” means to lease for such rentals, for such period or periods, and upon such terms and conditions as the authority shall determine, including, without limiting the generality of the foregoing, the granting of such renewal or extension options for such rentals, for such periods, and upon such terms and conditions as the authority shall determine and the granting of such purchase options for such prices and upon such terms and conditions as the authority shall determine;
  8. “Major airport facility” means a public airport with an active runway at least seven thousand feet (7,000') long;
  9. “Municipality” or “municipal corporation” means a city of the first class, a city of the second class, or an incorporated town;
  10. “Sell” means to sell for such price, in such manner, and upon such terms as the authority shall determine including, without limiting the generality of the foregoing, private or public sale; and if public, pursuant to such advertisement as the authority shall determine, sale for cash or credit payable in lump sum, or in installments over such period as the authority shall determine; and if on credit, with or without interest and at such rate or rates as the authority shall determine; and
  11. “State” means the State of Arkansas.

History. Acts 1968 (1st Ex. Sess.), No. 17, § 1; 1973, No. 426, § 1; 1981, No. 425, § 3; A.S.A. 1947, § 74-216; Acts 1992 (1st Ex. Sess.), No. 56, § 1; 1992 (1st Ex. Sess.), No. 63, § 1.

14-362-103. Establishment of authorities.

    1. Any two (2) or more municipalities, any two (2) or more contiguous counties, or any one (1) or more municipalities together with any one (1) or more contiguous counties, are authorized to create and establish an authority as prescribed in this chapter for the purpose of acquiring, equipping, constructing, maintaining, and operating regional airports.
    2. No county or municipality shall participate in such authority unless and until its governing body so provides by ordinance and enters into an agreement with the other participating governmental units establishing the terms and conditions for the operation of the authority within the limitations provided in this chapter and such other laws of the State of Arkansas as may be applicable.
  1. The state may join in the creation and establishment of any authority if the regional airport to be acquired, equipped, constructed, maintained, or operated is a major airport facility. The state shall not participate in any authority unless and until the Governor so provides by proclamation and enters into the agreement with the other participating governmental units. The agreement with the other participating governmental units shall be executed by the Governor.
  2. To the extent that it is consistent with this chapter, the agreement shall specify the information provided for in § 25-20-104(c).
  3. The agreement shall be filed with the Secretary of State.

History. Acts 1968 (1st Ex. Sess.), No. 17, § 2; 1973, No. 426, § 2; A.S.A. 1947, § 74-217; Acts 1992 (1st Ex. Sess.), No. 56, § 2; 1992 (1st Ex. Sess.), No. 63, § 2.

Publisher's Notes. Acts 1992 (1st Ex. Sess.), Nos. 56 and 63, § 14, provided:

“Any existing regional airport authority previously created in conformance with the provisions then contained in the Regional Airport Act may continue as originally organized notwithstanding the provisions of this act.”

Cross References. Multicounty Airport and Riverport Financing Act, § 26-81-101 et seq.

14-362-104. Authority as public corporation.

  1. Each authority when created, and the members thereof, shall constitute a public corporation and, as such, shall have perpetual succession, may contract and be contracted with, sue and be sued, and have and use a common seal.
  2. The exercise of the powers and performance of duties provided for in this chapter by each authority and its officers, agents, and employees are declared to be public and governmental functions, exercised for a public purpose and matters of public necessity, conferring upon each authority governmental immunity from suit in tort.

History. Acts 1968 (1st Ex. Sess.), No. 17, § 3; A.S.A. 1947, § 74-218.

14-362-105. Appointment of board.

  1. Subject to such limitations as may be contained in the agreement provided for in § 14-362-103, the management and control of each authority and its property, operations, business, and affairs shall be lodged in a board of not less than six (6) nor more than twenty-four (24) persons who shall be appointed for terms of six (6) years each as hereinafter provided.
  2. The number of members that each of the participating governmental units is entitled to appoint to the board shall be set forth in the agreement provided for in § 14-362-103. However, each of the participating governmental units shall be entitled to appoint at least one (1) member to the board and, if the state is a participant in the authority, the state shall be entitled to appoint a majority of the members of the board. Appointments shall be made by the mayor of each participating municipality, the county judge of each participating county, and the Governor.
  3. The members of the authority shall have staggered terms, as provided in the agreement establishing the authority, as follows: One-third (1/3) of the members for six-year terms; one-third (1/3) of the members for four-year terms; and one-third (1/3) of the members for two-year terms. Thereafter, all appointments shall be for six-year terms.
  4. All members of the board appointed by the participating municipalities and counties shall be bona fide residents and qualified electors of the county or municipality which the members represent. All members of the board appointed by the state shall be bona fide residents of the state.

History. Acts 1968 (1st Ex. Sess.), No. 17, §§ 5, 7; A.S.A. 1947, §§ 74-220, 74-222; Acts 1992 (1st Ex. Sess.), No. 56, § 3; 1992 (1st Ex. Sess.), No. 63, § 3.

14-362-106. Vacancy on board.

  1. If any member of an authority dies, resigns, is removed, or for any other reason ceases to be a member of the authority, the mayor, the county judge, or the Governor, as appropriate to the governmental unit which the member represented, shall appoint another person to fill the unexpired portion of the term of the member.
  2. A member of the authority once qualified shall not be removed during his or her appointment except for cause by the mayor, the county judge, or the Governor, as appropriate, which appointed him or her, or upon such other conditions as shall be set forth in the agreement establishing the authority.

History. Acts 1968 (1st Ex. Sess.), No. 17, § 6; A.S.A. 1947, § 74-221; Acts 1992 (1st Ex. Sess.), No. 56, § 4; 1992 (1st Ex. Sess.), No. 63, § 4.

14-362-107. Compensation prohibited — Reimbursement of expenses.

  1. No member of the board of an authority shall receive any compensation, whether in form of salary, per diem allowance, or otherwise, for or in connection with his services as a member.
  2. Each member shall, however, be entitled to reimbursement by the authority for any necessary expenditures in connection with the performance of his general duties as a member.

History. Acts 1968 (1st Ex. Sess.), No. 17, § 8; A.S.A. 1947, § 74-223.

14-362-108. Facilities authorized.

Each authority is authorized and empowered to acquire, equip, construct, maintain, and operate a regional airport or landing field and appurtenant facilities so located to best serve the region in which they are located. Each authority in which the state is a participant is further authorized and empowered to acquire, equip, construct, maintain, and operate industrial, warehouse, distribution, and related types of facilities, including education, training, office and support facilities, located at a major airport facility for the purpose of securing and developing industry within the state.

History. Acts 1968 (1st Ex. Sess.), No. 17, § 4; A.S.A. 1947, § 74-219; Acts 1992 (1st Ex. Sess.), No. 56, § 5; 1992 (1st Ex. Sess.), No. 63, § 5.

14-362-109. Powers of authority generally.

Each authority is given power and authority as follows:

  1. To make and adopt all necessary bylaws, rules, and regulations for its organization and operations not inconsistent with law;
  2. To elect its own officers, to appoint committees, and to employ and fix the compensation for personnel necessary for its operation;
  3. To enter into contracts with any person, governmental department, firm, or corporation, including both public and private corporations, and generally to do any and all things necessary or convenient for the purpose of acquiring, equipping, constructing, maintaining, improving, extending, financing, and operating a public airport to best serve the region in which it is located;
  4. To delegate any authority given to it by law to any of its officers, committees, agents, or employees;
  5. To apply for, receive, and use grants-in-aid, donations, and contributions from any source, including, but not limited to, the United States Government or any agency thereof and the State of Arkansas or any agency thereof and to accept and use bequests, devises, gifts, and donations from any person, firm, or corporation;
  6. To acquire lands and hold title to those lands in its own name;
  7. To acquire, own, hold, lease as lessor or as lessee, sell, encumber, dispose of, or otherwise deal in and with any facilities or real, personal, or mixed property, wherever located;
  8. To borrow money and execute and deliver negotiable notes, mortgage bonds, other bonds, debentures, and other evidences of indebtedness, and give such security therefor as shall be requisite, including giving a mortgage or deed of trust on its airport properties and facilities in connection with the issuance of mortgage bonds;
  9. To raise funds by the issuance and sale of revenue bonds in the manner and according to the terms set forth in this chapter;
  10. To expend its funds in the execution of the powers and authorities given in this chapter and to invest and reinvest any of its funds pending need therefor;
  11. To apply for, receive, and use loans, grants, donations, technical assistance, and contributions from any regional or area commissions that may be established and any agency of the United States Government or the State of Arkansas;
    1. To constitute the authority or a committee of the authority as improvement district commissioners and to create and operate an improvement district composed of the area encompassed within the jurisdictions of the participating governing bodies upon the petition of persons claiming to be two-thirds (2/3) in value of the owners of real property in the area, as shown by the last county assessment.
    2. The improvement district shall be for the purpose of financing the construction, reconstruction, or repair of the regional airport and its facilities.
    3. The creation and operation of an improvement district shall be, to the extent consistent with this chapter, in accordance with the procedures established by the laws of this state for the creation and operation of municipal improvement districts;
    1. To enforce all rules, regulations, and statutes relating to its airports, including airport zoning regulations.
    2. In this connection, the authority is empowered and authorized to exercise the powers and privileges of the signatory parties under the Airport Zoning Enabling Act, § 14-363-201 et seq., and the board of directors of the authority is designated by the signatory parties as the zoning board for the purposes and powers under these provisions;
  12. To levy and collect a tax on aviation fuel sold at an airport or airports of the authority;
  13. To plan, establish, develop, construct, enlarge, improve, maintain, equip, operate, and regulate its airports and auxiliary services and facilities and to establish minimum building codes and regulations;
    1. To protect and police the airports of the authority, in cooperation with the law enforcement agencies and officers having jurisdiction in the area where the facilities of the authority are located, and to appoint one (1) or more persons to be designated by the authority as an authority law enforcement officer to aid and supplement the law enforcement agencies of this state in the protection of the persons and property of the authority, the authority's passengers, and the authority's employees.
      1. Each authority law enforcement officer shall have and exercise throughout the property of the authority the power to make arrests for the violations of any law on the property of the authority and to arrest persons, whether on or off the authority's property, for the violation of any law on the authority's property, under the same conditions under which other law enforcement officers or other peace officers may by law make arrests and shall have the authority to carry weapons for the reasonable purposes of the office of authority law enforcement officers.
      2. However, each authority law enforcement officer is eligible for certification by the Arkansas Commission on Law Enforcement Standards and Training and is also subject to the same certification standards as other law enforcement officers, including time limits for certification after being hired;
    1. To promulgate rules and regulations and to amend or change them from time to time as shall be deemed necessary, providing for the operation and parking of motor vehicles upon the grounds, streets, drives, and alleys under its control, including, but not limited to, regulations:
      1. Limiting the rate of speed;
      2. Assigning parking spaces and designating parking areas and their uses and collecting rent for those spaces;
      3. Prohibiting parking as it deems necessary;
      4. Removing vehicles parked in violation of authority rules and regulations or ordinances, at the expense of the violator, who shall pay the expense before the vehicle is released; and
      5. Collecting, under an established system, administrative charges for violations of authority rules and regulations governing motor vehicles, their operation, and parking.
    2. However, an administrative finding of violation may be appealed to the appropriate municipal court where the matter shall be heard de novo.
    3. Rules and regulations, together with any amendments thereto, which from time to time may be adopted by an authority for the regulation of operation and parking of motor vehicles shall be recorded in the official minutes of the authority board and shall be printed with copies available at convenient locations in the terminal building.
    4. Speed limits shall be posted at reasonable intervals, and traffic and parking directions and prohibitions shall be indicated by signs.
      1. From and after the promulgation of the rules and regulations, it shall be unlawful for any person to operate or to park a motor vehicle in violation thereof.
      2. Any person violating or refusing to comply with the rules and regulations shall be subjected to a reasonable administrative charge stated in the promulgated rules and regulations.
      1. Persons violating authority rules and regulations promulgated under this section, at the option of the authority law enforcement officer, shall be charged under the authority's system of charges or summoned to appear before any court of competent jurisdiction to be dealt with according to law.
      2. A person adversely affected by any administrative determination as described shall have a right to appeal therefrom to the appropriate municipal court where the matter shall be heard de novo.
    5. Any fines, penalties, and forfeitures imposed by any court pursuant to this section shall be paid into the airport authority treasury for airport authority purposes, and any court costs imposed and collected shall be disbursed pursuant to § 16-10-305;
  14. To plan, establish, develop, construct, enlarge, improve, and maintain intermodal access roads providing service to the airport, together with related auxiliary services and facilities;
      1. To fix, revise, charge, and collect tolls, access fees, ground transportation fees, or other fees for vehicular use of any roads or other facilities owned by or providing service to the airport and to contract with any person, partnership, association, corporation, or organization desiring the use of any part of those roads, including the right-of-way adjoining the paved portion for placing their own telephone, telegraph, electric, light, or power lines, motor fuel service stations, garages, restaurants, and other facilities or for any other purpose, and to fix the terms, conditions, rents, and rates of charges for that use.
      2. However, public utilities, rural cooperatives, political subdivisions, and pipeline companies may construct and maintain crossings of roads with their facilities, without charge, if the facilities are constructed and maintained in compliance with reasonable requirements of public safety and all costs of restoring the project to as good a condition as it was before being disturbed are paid by the owners of the facilities.
      1. The tolls and fees may be charged and collected from vehicles accessing or departing from the airport, and the authority is empowered to make reasonable tolls and fees in accordance with industry standards and to make reasonable classifications of vehicles for this purpose.
        1. The tolls or fees levied for use of airport roads by private off-facility parking services at an airport located in a county with a population of at least three hundred sixty thousand (360,000) and in a city with a population of at least one hundred seventy-five thousand (175,000) according to the most recent federal decennial census shall not exceed the local sales tax rate of the municipality in which the airport is located.
        2. Private off-facility parking services shall have full access to drop off and pick up airport passengers and the same queuing access as all commercial shuttles, limos, taxi cabs, airport-owned vans or buses, and valet services.
    1. For an airport located in a county with a population of at least three hundred sixty thousand (360,000) and in a city with a population of at least one hundred seventy-five thousand (175,000) according to the most recent federal decennial census, tolls and fees fixed by the authority shall not be subject to supervision or regulation by any other commission, board, bureau, or agency of the State of Arkansas;
    1. To levy and collect a tax in an amount not to exceed the maximum amount per passenger allowed by the United States Government on the boarding or disembarking of aircraft at the airport or airports of the authority.
    2. The tax shall be levied upon and collected from the passengers boarding or disembarking from the aircraft or the airlines operating the aircraft, and the authority is empowered to make reasonable classifications of passengers for this purpose;
  15. To receive real and personal property from the United States for airport and related purposes by donation, purchase, lease, or otherwise, subject to such conditions and requirements relating thereto as the United States Government may require and to which the authority may agree;
  16. To apply to the proper authorities of the United States Government pursuant to appropriate law for the right to establish, operate, and maintain foreign trade zones within the area of jurisdiction of the member municipalities or counties, or both, and to establish, operate, and maintain those foreign trade zones;
  17. To promote, advertise, and publicize the authority and its facilities, to provide information to shippers, operators, and other commercial interests, and to represent and promote the interests of the authority; and
  18. To take such other action, not inconsistent with law, as may be necessary or desirable to carry out the powers and authorities conferred by this chapter and the intent and purposes of it.

History. Acts 1968 (1st Ex. Sess.), No. 17, § 9; 1973, No. 426, §§ 3-6; A.S.A. 1947, § 74-224; Acts 1992 (1st Ex. Sess.), No. 56, § 6; 1992 (1st Ex. Sess.), No. 63, § 6; 1997, No. 1245, § 1; 1999, No. 1349, § 1; 2001, No. 772, § 1; 2011, No. 334, § 1; 2017, No. 497, § 22.

Amendments. The 2011 amendment inserted (19)(B)(ii); and substituted “For an airport located in a county with a population of at least three hundred sixty thousand (360,000) and in a city with a population of at least one hundred seventy-five thousand (175,000) according to the most recent federal decennial census” for “The” in (19)(C).

The 2017 amendment, in (16)(B)(ii), substituted “However” for “Provided, however”, “is” for “shall be”, “Arkansas Commission on Law Enforcement Standards and Training” for “Arkansas Law Enforcement Training Academy”, and “is also” for “shall also be”.

14-362-110. Issuance of revenue bonds — Authorization.

  1. Authorities are authorized to use any available revenues for the accomplishment of the purposes and the implementation of the powers authorized by this chapter, including the proceeds of revenue bonds issued from time to time pursuant to the provisions of this chapter, either alone or together with other available funds and revenues.
  2. The amount of each issue of bonds issued may be sufficient to pay:
    1. The costs of accomplishing the purposes for which it is being issued;
    2. The cost of issuing the bonds;
    3. The amount necessary for a reserve, if it is determined to be desirable in favorably marketing the bonds;
    4. The amount, if any, necessary to provide for debt service on the bonds until revenues for the payment thereof are available; and
    5. Any other costs and expenditures of whatever nature incidental to the accomplishment of the specified purposes.

History. Acts 1968 (1st Ex. Sess.), No. 17, § 10; 1970 (Ex. Sess.), No. 63, § 1; 1973, No. 426, § 7; 1975, No. 225, § 3; 1981, No. 425, § 3; A.S.A. 1947, § 74-225.

14-362-111. Issuance of revenue bonds — Resolution of authority — Nature of bonds.

  1. The issuance of revenue bonds shall be by resolution of the authority.
  2. The bonds of each issue may:
    1. Be coupon bonds payable to bearer or may be registrable as to principal only or as to both principal and interest;
    2. Be in such form and denominations;
    3. Be made payable at such places within or without the state;
    4. Be issued in one (1) or more series;
    5. Bear such date or dates;
    6. Mature at such time or times, not exceeding forty (40) years from their respective dates;
    7. Bear interest at such rate or rates;
    8. Be payable in such medium of payment;
    9. Be subject to such terms of redemption; and
    10. Contain such terms, covenants, and conditions as the resolution authorizing their issuance may provide including, without limitation, those pertaining to:
      1. The custody and application of the proceeds of the bonds;
      2. The collection and disposition of revenues;
      3. The maintenance and investment of various funds and reserves;
      4. The imposition and maintenance of rates and charges for the use of airport facilities;
      5. The nature and extent of the security;
      6. The rights, duties, and obligations of the authority and the trustee for the holders and registered owners of the bonds; and
      7. The rights of the holders and registered owners of the bonds.
    1. There may be successive bond issues for the purpose of financing the same project. There may also be successive bond issues for financing the cost of reconstructing, replacing, constructing additions to, extending, improving, and equipping projects already in existence, whether or not originally financed by bonds issued under this chapter, with each successive issue to be authorized as provided by this chapter.
    2. Priority between and among issues and successive issues as to security, the pledge of revenues and lien on and security interest in the land, buildings, and facilities involved, may be controlled by the resolutions authorizing the issuance of bonds under this chapter.
  3. Subject to the provisions of this section and §§ 14-362-110 and 14-362-112 — 14-362-118, pertaining to registration, the bonds shall have all the qualities of negotiable instruments under the laws of the State of Arkansas.

History. Acts 1968 (1st Ex. Sess.), No. 17, § 10; 1970 (Ex. Sess.), No. 63, § 1; 1973, No. 426, § 7; 1975, No. 225, § 3; 1981, No. 425, § 3; A.S.A. 1947, § 74-225.

14-362-112. Issuance of revenue bonds — Indenture.

  1. The resolution authorizing the bonds may provide for the execution by the authority of an indenture which defines the rights of the holders and registered owners of the bonds and provides for the appointment of a trustee for the holders and registered owners of the bonds.
  2. Indenture may control the priority between successive issues and may contain any other terms, covenants, and conditions that are deemed desirable, including, without limitation, those pertaining to:
    1. The custody and application of the proceeds of the bonds;
    2. The collection and disposition of revenues;
    3. The maintenance of various funds and reserves;
    4. The imposition and maintenance of rates and charges for the use of airport facilities;
    5. The nature and extent of the security;
    6. The rights, duties, and obligations of the authority and the trustee; and
    7. The rights of the holders and registered owners of the bonds.

History. Acts 1968 (1st Ex. Sess.), No. 17, § 10; 1970 (Ex. Sess.), No. 63, § 1; 1973, No. 426, § 7; 1975, No. 225, § 3; 1981, No. 425, § 3; A.S.A. 1947, § 74-225.

14-362-113. Issuance of revenue bonds — Price and manner sold.

The bonds may be sold for such price, including sale at a discount, and in such manner as the authority may determine by resolution.

History. Acts 1968 (1st Ex. Sess.), No. 17, § 10; 1970 (Ex. Sess.), No. 63, § 1; 1973, No. 426, § 7; 1975, No. 225, § 3; 1981, No. 425, § 3; A.S.A. 1947, § 74-225.

14-362-114. Issuance of revenue bonds — Execution.

    1. The bonds shall be executed by the manual or facsimile signatures of the chair and secretary of the authority.
    2. In case any of the officers whose signatures appear on the bonds or coupons shall cease to be such officers before the delivery of the bonds or coupons, their signatures shall nevertheless be valid and sufficient for all purposes.
  1. The coupons attached to the bonds may be executed by the facsimile signature of the chair of the authority.

History. Acts 1968 (1st Ex. Sess.), No. 17, § 10; 1970 (Ex. Sess.), No. 63, § 1; 1973, No. 426, § 7; 1975, No. 225, § 3; 1981, No. 425, § 3; A.S.A. 1947, § 74-225; Acts 1992 (1st Ex. Sess.), No. 56, § 7; 1992 (1st Ex. Sess.), No. 63, § 7.

14-362-115. Issuance of revenue bonds — Obligation of authority.

  1. The revenue bonds issued under this chapter shall be obligations only of the authority and shall not be general obligations of any county, municipality, or the state.
    1. In no event shall the revenue bonds constitute an indebtedness of any county, municipality, or the state within the meaning of any constitutional or statutory limitation.
    2. It shall be plainly stated on the face of each bond that it has been issued under the provisions of this chapter and that it does not constitute an indebtedness of any county, municipality, or the state within any constitutional or statutory limitation.
  2. The principal of and interest on the bonds may be secured, to the extent set forth in the resolution or indenture securing the bonds, by a pledge of and payable from all or any part of revenues derived from the use of the facilities of the authority, including, without limitation:
    1. Revenues derived from rates and charges imposed and maintained for the use of the facilities of the authority;
    2. Revenues derived from taxes levied under §§ 14-362-109(14) and 14-362-109(20);
    3. Lease rentals under leases or payments under security agreements or other instruments entered into under this chapter; and
    4. Revenues derived from tolls imposed upon vehicles utilizing intermodal access roads providing service to the airport and revenues derived from related auxiliary services and facilities.

History. Acts 1968 (1st Ex. Sess.), No. 17, § 10; 1970 (Ex. Sess.), No. 63, § 1; 1973, No. 426, § 7; 1975, No. 225, § 3; 1981, No. 425, § 3; A.S.A. 1947, § 74-225; Acts 1992 (1st Ex. Sess.), No. 56, § 8; 1992 (1st Ex. Sess.), No. 63, § 8; 1999, No. 1349, § 2.

14-362-116. Issuance of revenue bonds — Refunding bonds.

    1. Revenue bonds may be issued under this chapter for the purpose of refunding any obligations issued under this chapter.
    2. The refunding bonds may be combined with bonds issued into a single issue.
    1. When bonds are issued under this section for refunding purposes, the bonds may either be sold or delivered in exchange for the outstanding obligations.
    2. If sold, the proceeds may be either applied to the payment of the obligations refunded or deposited in escrow for the retirement of them.
    1. All refunding bonds issued under this chapter shall, in all respects, be authorized, issued, and secured in the manner provided for other bonds issued under this chapter and shall have all the attributes of these bonds.
    2. The resolution under which these refunding bonds are issued may provide that any of the refunding bonds shall have the same priority of lien on the revenues pledged for their payment as was enjoyed by the obligations refunded by them.

History. Acts 1968 (1st Ex. Sess.), No. 17, § 10; 1970 (Ex. Sess.), No. 63, § 1; 1973, No. 426, § 7; 1975, No. 225, § 3; 1981, No. 425, § 3; A.S.A. 1947, § 74-225.

14-362-117. Issuance of revenue bonds — Mortgage lien.

  1. The resolution or indenture securing the bonds may impose a forecloseable mortgage lien upon or security interest in the facilities of the authority, or any portion thereof, and the extent of the mortgage lien or security interest may be controlled by the resolution or indenture including, without limitation, provisions pertaining to the release of all or part of the facilities subject to the mortgage lien or security interest in the event of successive issues of bonds.
  2. Subject to the terms, conditions, and restrictions contained in the resolution or indenture, any holder of any of the bonds, or of any coupon attached thereto, or a trustee on behalf of the holders may, either at law or in equity, enforce the mortgage lien or security interest and may, by proper suit, compel the performance of the duties of the officials of the authority set forth in this chapter and set forth in the resolution or indenture.

History. Acts 1968 (1st Ex. Sess.), No. 17, § 10; 1970 (Ex. Sess.), No. 63, § 1; 1973, No. 426, § 7; 1975, No. 225, § 3; 1981, No. 425, § 3; A.S.A. 1947, § 74-225.

14-362-118. Issuance of revenue bonds — Default.

    1. In the event of a default in the payment of the principal of or interest on any bonds issued under this chapter any court having jurisdiction may appoint a receiver to take charge of any facilities upon or in which there is a mortgage lien or security interest securing the bonds in default.
    2. The receiver shall have the power to operate and maintain the facilities in receivership and to charge and collect rates and rents sufficient to provide for the payment of any costs of receivership and operating expenses of the facilities in receivership and to apply the revenues derived from the facilities in receivership in conformity with this chapter and the resolution or indenture securing the bonds in default.
    3. When the default has been cured, the receivership shall be ended and the facilities returned to the authority.
  1. The relief provided for in this section shall be construed to be in addition and as supplemental to the remedies that may be provided for in the resolution or indenture securing the bonds and shall be so granted and administered as to accord full recognition to priority rights of bondholders as to the pledge of revenues from, mortgage lien on, and security interest in facilities as specified in and fixed by the resolution or indenture securing successive issues of bonds.

History. Acts 1968 (1st Ex. Sess.), No. 17, § 10; 1970 (Ex. Sess.), No. 63, § 1; 1973, No. 426, § 7; 1975, No. 225, § 3; 1981, No. 425, § 3; A.S.A. 1947, § 74-225.

14-362-119. Agreements to obtain funds.

Each authority may, in connection with obtaining funds for its purposes, enter into any agreement with any person, firm, or corporation including the federal government, or any agency or subdivision thereof, containing such provisions, covenants, terms, and conditions as the authority may deem advisable.

History. Acts 1968 (1st Ex. Sess.), No. 17, § 11; A.S.A. 1947, § 74-226.

14-362-120. Acquisition of property.

Whenever it shall be deemed necessary by an authority, in connection with the exercise of its powers conferred in this chapter, to take or acquire any lands, structures, buildings, or other rights, either in fee or as easements, for the purposes set forth in this chapter, the authority may purchase them directly or through its agents from the owners thereof, or failing to agree with the owners, the authority may exercise the power of eminent domain in the manner provided for condemnation proceedings under §§ 14-358-101, 14-358-102, and 14-360-102, and these purposes are declared to be public uses for which private property may be taken or damaged.

History. Acts 1968 (1st Ex. Sess.), No. 17, § 12; A.S.A. 1947, § 74-227.

Case Notes

Attorney's Fees.

Trial court erred in awarding attorney's fees to a lessee in an airport eminent domain proceeding brought under this section because § 18-15-605(b) applied only to municipal corporations and other corporations that supplied water to cities, towns, or rural areas. Delta Reg'l Airport Auth. v. Gunn, 2011 Ark. App. 701, 386 S.W.3d 693 (2011).

14-362-121. Exemption from taxation.

  1. Each authority shall be exempt from the payment of any taxes or fees to the state, or any subdivision thereof, or to any office or employee of the state, or of any subdivision thereof.
    1. The property of each authority shall be exempt from all local and municipal taxes.
    2. Bonds, notes, debentures, and other evidence of indebtedness of the authority are declared to be issued for a public purpose and to be public instrumentalities and, together with interest thereon, shall be exempt from taxes.

History. Acts 1968 (1st Ex. Sess.), No. 17, § 13; A.S.A. 1947, § 74-228.

Case Notes

Construction.

This section means that an airport authority will be exempt from paying ad valorem taxes when the land is used solely for public purposes. City of Little Rock v. McIntosh, 319 Ark. 423, 892 S.W.2d 462 (1995).

Leases to Private Businesses.

Although it is convenient for patrons of the airport to have certain private businesses located on airport property, their primary purposes are private, and, consequently, the tracts leased from the airport by the private businesses are not exempt from ad valorem county taxation. City of Little Rock v. McIntosh, 319 Ark. 423, 892 S.W.2d 462 (1995).

14-362-122. Use of surplus funds.

  1. If an authority should realize a surplus, whether from operating the airport or leasing it for operation, over and above the amount required for the maintenance, improvement, and operation of the airport and for meeting all required payments on its obligations, it shall set aside the reserve for future operations, improvements, and contingencies as it shall deem proper and shall then apply the residue of the surplus, if any, to the payment of any recognized and established obligations not then due.
    1. After all the recognized and established obligations have been paid and discharged in full, at the end of each fiscal year the authority shall set aside the reserve for future operations, improvements, and contingencies as prescribed in subsection (a) of this section and then pay the residue of the surplus, if any, to the counties, municipalities, and the state in direct proportion to their financial contribution.
    2. No such distribution of the residue of the surplus shall violate United States law or the terms of any deed, grant agreement, or other agreement with the United States.

History. Acts 1968 (1st Ex. Sess.), No. 17, § 15; A.S.A. 1947, § 74-230; Acts 1992 (1st Ex. Sess.), No. 56, § 9; 1992 (1st Ex. Sess.), No. 63, § 9.

14-362-123. Public and private contributions.

  1. Contributions may be made to authorities from time to time by the counties and municipalities and persons, firms, or corporations that shall desire to do so.
  2. In order to afford maximum opportunities for contributions, the agreement provided for under § 14-362-103 may be treated as a cooperative agreement under the provisions of the Interlocal Cooperation Act, § 25-20-101 et seq., and may contain language enabling the agreement to be treated as a formal compact under §§ 14-165-201 — 14-165-204 in which case the authority shall hold title to property in its powers and capacity as a public corporation rather than as a commission-trustee as provided in §§ 14-165-201 — 14-165-204, or may be treated as a less formal arrangement for the cooperative use of industrial development bond funds, all to the end that the counties and municipalities may contribute to the authority funds derived from general obligation bonds under the Arkansas Constitution, Amendments No. 13 and 49, from revenue bonds under §§ 14-164-201 — 14-164-206 and 14-164-208 — 14-164-223 from other available sources, and may contribute funds derived from a combination of these sources.

History. Acts 1968 (1st Ex. Sess.), No. 17, § 16; A.S.A. 1947, § 74-231.

Publisher's Notes. Pursuant to Ark. Const., Amend. No. 62, § 11, the provisions of Ark. Const., Amend. Nos. 13 and 49 are repealed insofar as they are inconsistent with the provisions of Ark. Const., Amend. No. 62.

14-362-124. Accounts and reports.

    1. All funds received by an authority shall be deposited in such banks as the authority may direct and shall be withdrawn therefrom in such manner as the authority may direct.
      1. Each authority shall keep strict account of all of its receipts and expenditures and each quarter shall make a report to the counties and municipalities which have made contributions.
        1. The report shall contain an itemized account of its receipts and disbursements during the preceding quarter.
        2. The report shall be made within sixty (60) days after the termination of the quarter.
      1. Within one hundred fifty (150) days after the end of each fiscal year, each authority shall cause an annual audit to be made by an independent certified public accountant and shall file a copy of the resulting audit report with each of the governing bodies participating in the authority.
      2. This audit shall contain an itemized statement of its receipts and disbursements for the preceding year.
    1. The books, records, and accounts of each authority shall be subject to audit and examination by any proper public official or body in the manner provided by law.
  1. The agreement provided for in § 14-362-103 may also provide for each authority to furnish the participating governing bodies copies of its annual budget for examination and approval.

History. Acts 1968 (1st Ex. Sess.), No. 17, § 16; A.S.A. 1947, § 74-231; Acts 1999, No. 1349, § 3; 2001, No. 772, § 2.

14-362-125. County, municipal, and state authority.

  1. Counties, municipalities, and the state are authorized and empowered to appoint members of the authorities and to contribute to the cost of acquiring, constructing, equipping, maintaining, and operating the regional airports and appurtenant facilities.
  2. Counties, municipalities, and the state are authorized and empowered to transfer and convey to the authorities property of any kind acquired by the counties, municipalities, and the state for airport purposes.

History. Acts 1968 (1st Ex. Sess.), No. 17, § 17; A.S.A. 1947, § 74-232; Acts 1992 (1st Ex. Sess.), No. 56, § 10; 1992 (1st Ex. Sess.), No. 63, § 10.

14-362-126. Lease of facilities.

  1. Each authority may lease its airport and all or any part of its appurtenances and facilities to any available lessee at such rental and upon such terms and conditions as the authority shall deem proper.
  2. Leases shall be for some purpose associated with airport activities.

History. Acts 1968 (1st Ex. Sess.), No. 17, § 14; A.S.A. 1947, § 74-229.

14-362-127. Sale of assets.

  1. In the event the board shall so determine, any authority may sell all or any part of its properties and assets and distribute the proceeds among the participating municipalities, counties, and the state in the proportion each unit contributed to the authority's funds or otherwise in the manner set forth in the agreement establishing the authority, provided no authority in which the state is a participant shall sell all or substantially all of its properties or assets without the consent of the Governor.
  2. No sale of properties or assets and no distribution of proceeds of such sale shall be done in a manner which violates United States law or the terms of any deed, grant agreement, or other agreement with the United States.

History. Acts 1968 (1st Ex. Sess.), No. 17, § 18; A.S.A. 1947, § 74-233; Acts 1992 (1st Ex. Sess.), No. 56, § 11; 1992 (1st Ex. Sess.), No. 63, § 11.

14-362-128. Workers' compensation.

All employees of each authority who are eligible shall be deemed to be within the workers' compensation laws of Arkansas, and premiums on their compensation shall be paid by the authority as required by law.

History. Acts 1968 (1st Ex. Sess.), No. 17, § 19; A.S.A. 1947, § 74-234.

Cross References. Workers' Compensation, § 11-9-101 et seq.

14-362-129. Existing authorities.

Any existing regional airport authority, de facto or de jure, previously created, or attempted to have been created, under the acts of Arkansas, or in any other manner created under color of law, having been created substantially in conformance with the provisions contained in this chapter is declared to be a body corporate and public as fully and to all intents and purposes as if created under this chapter. All acts and deeds heretofore done by any member or officer of the authority or of the governing bodies participating in the authority and any agreement between participating bodies creating the authority are cured, validated, and confirmed and shall have the full force and effect as if done pursuant to this chapter.

History. Acts 1968 (1st Ex. Sess.), No. 17, § 20; A.S.A. 1947, § 74-235.

14-362-130. Authorized investors.

Any municipality, or any board, commission, or other authority duly established by ordinance of any municipality, or the boards of trustees, respectively, of the firemen's relief and pension fund and the policemen's pension and relief fund of any such municipality, or the board of trustees of any retirement system created by the General Assembly may, in its discretion, invest any of its funds not immediately needed for its purposes, in bonds issued under the provisions of this chapter, and bonds issued under the provisions of this chapter shall be eligible to secure the deposit of public funds.

History. Acts 1992 (1st Ex. Sess.), No. 56, § 12; 1992 (1st Ex. Sess.), No. 63, § 12.

14-362-131. Construction.

  1. This chapter shall be liberally construed to accomplish its intent and purposes and shall be the sole authority required for the accomplishment of its purpose.
  2. To this end:
    1. It shall not be necessary to comply with the general provisions of other laws dealing with public facilities, their acquisition, construction, leasing, encumbering, or disposition; and
    2. Section 15-5-303 shall not apply.

History. Acts 1992 (1st Ex. Sess.), No. 56, § 13; 1992 (1st Ex. Sess.), No. 63, § 13.

14-362-132. Exemption from annexation and municipal regulation — Definition.

  1. For purposes of this section, “authority” means an authority created with members from two (2) or more counties and three (3) or more cities, and the property of the authority shall be defined as the real property owned in fee simple title by the authority or property acquired in fee simple title by the authority in the future which is acquired for aviation purposes.
    1. The property and operations of an authority shall be exempt from the enactment of any rules, regulations, ordinances, permit requirements, and enforcement by a municipality.
    2. A municipality may enact and collect a sales tax, a liquor tax, and a hotel, motel, and restaurant tax on the operations located on the property of the authority, but other taxes or fees enacted by a municipality pertaining to the property or operations of the authority shall require the approval of a majority vote of the board of directors of the authority.
  2. If a municipality in which the property of an authority is located merges with or is annexed or consolidated by another municipality, an authority may de-annex from the municipality upon a majority vote of the board of directors of the authority.

History. Acts 1999, No. 1420, § 1; 2007, No. 167, § 1.

Subchapter 2 — Contracts for Effective Bond Interest Rates

Effective Dates. Acts 2003, No. 1175, § 2: Apr. 8, 2003. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that there is an immediate need to facilitate the issuance of revenue bonds by authorities, including the ability of authorities to enter into contracts to achieve a desirable interest rate on the bond. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

14-362-201. Definitions.

As used in this subchapter:

  1. “Authority” means any authority created under the provisions of § 14-362-103;
  2. “Bond” means a revenue bond;
  3. “Contract for effective interest rates” means any contract to achieve a desirable effective interest rate, including, but not limited to:
    1. An investment contract;
    2. A funding agreement;
    3. An interest rate swap agreement;
    4. A currency swap agreement;
    5. A forward payment conversion agreement;
    6. A futures contract;
    7. A contract providing for payments based on levels of or changes in interest rates;
    8. A contract to exchange cash flows or a series of payments; or
    9. A contract, including options, puts or calls, issued to hedge payment rate, spread, or similar interest rate exposure; and
  4. “Revenue bond” means a revenue bond issued by, or on behalf of, an authority under the Arkansas Constitution and under an act of the General Assembly, including all bonds, notes, certificates, or other instruments or evidences of indebtedness which constitute a revenue bond as defined in Arkansas Constitution, Amendment 65.

History. Acts 2003, No. 1175, § 1.

14-362-202. Contracts authorized.

  1. In connection with revenue bonds issued by an authority, the authority may enter into a contract for effective interest rates.
  2. A contract for effective interest rates may be entered into at the time the bonds are issued or at any time while the bonds are outstanding.
  3. A contract for effective interest rates may also be entered into by authorities in connection with an agreement that secures bonds or provides liquidity for the bonds.
    1. A contract for effective interest rates shall be made upon the terms and conditions established by the governing body of the authority.
    2. The contract may include terms permitting the authority to pay to or receive from a person or entity any loss of benefits under the contract upon an early termination or a default under the contract.

History. Acts 2003, No. 1175, § 1.

14-362-203. Payments and revenues.

  1. Payments required to be made by an authority under a contract for effective interest rates under this subchapter shall be payable from the same revenue source or sources from which the related bonds are payable.
  2. Revenues derived by an authority from a contract for effective interest rates shall be used for one (1) or more of the following purposes:
    1. The payment of the bond principal, bond premium, interest on the related bonds, or for amounts held in reserve for the bond payment;
    2. The payment of the authority's obligations under the contract; or
    3. Any purpose for which the related bonds were or could have been issued if the contract is authorized by the governing body of the authority in the same manner as the issuance of bonds.

History. Acts 2003, No. 1175, § 1.

14-362-204. Supplemental.

This subchapter is supplemental to all other provisions of state law governing the issuance of bonds by authorities and the investment of the bond proceeds.

History. Acts 2003, No. 1175, § 1.

Chapter 363 Airport Zoning

Research References

ALR.

Zoning regulations limiting use of property near airport as taking of property. 18 A.L.R.4th 542.

Airport operations or flight of aircraft as constituting taking or damaging of property. 22 A.L.R.4th 863.

Damages resulting from temporary conditions incident to public improvements or repairs as compensable taking. 23 A.L.R.4th 674.

Subchapter 1 — General Provisions

[Reserved]

Subchapter 2 — Zoning by Cities

Effective Dates. Acts 1941, No. 116, § 11: Mar. 6, 1941. Emergency clause provided: “It is ascertained and declared that airports in all sections of the State are needed in connection with the National Defense Program and that the use of said airports is and has been handicapped by lack of proper zoning of property adjacent thereto; and that an emergency exists; and the existence of this emergency is hereby declared, and for the immediate preservation of the public peace, health and safety, this Act shall be in full force and effect immediately upon its passage and approval.”

14-363-201. Title.

This subchapter shall be known and may be cited as the “Airport Zoning Enabling Act.”

History. Acts 1941, No. 116, § 10; A.S.A. 1947, § 74-308.

14-363-202. Definitions.

As used in this subchapter, unless the context otherwise requires:

  1. “Airport” means any area of land usable for the landing and taking off of airplanes;
  2. A city is “served” by an airport if the airport is used for private flying or otherwise as a point of arrival or departure by air by persons residing or having their place of business in the city;
  3. An airport is of the “public utility class” if it is available to the general public for private flying or otherwise as a point of arrival or departure by air;
  4. “Person” means any individual, firm, copartnership, public or private corporation, company, association, joint-stock association, or body politic and includes any trustee, receiver, assignee, or other similar representative thereof; and
  5. “Structure” means any object constructed or installed by man including, but without limitation, buildings, towers, smokestacks, and overhead transmission lines.

History. Acts 1941, No. 116, § 1; A.S.A. 1947, § 74-301.

14-363-203. Penalties and enforcement.

  1. Penalties of fines and imprisonment for violations of any regulation, order, or ruling promulgated or made pursuant to this subchapter may be prescribed in any airport zoning regulations that may be promulgated under authority of this subchapter.
  2. In addition, any city, or board, commission, or agency thereof, authorized to administer and enforce zoning regulations promulgated pursuant to this subchapter may institute, in any court of competent jurisdiction, an appropriate action or proceeding to prevent, restrain, correct, or abate any violation of zoning regulations, or any order or ruling made in connection with their administration or enforcement. The court shall adjudge then to the plaintiff such relief, by way of injunction, which may be mandatory or otherwise, as may be proper under all the facts and circumstances of the case, in order fully to carry out and effectuate the purposes of this subchapter and of the regulations adopted and orders and rulings made pursuant to authority given in this section.

History. Acts 1941, No. 116, § 7; A.S.A. 1947, § 74-307.

14-363-204. Promulgation, administration, and enforcement of regulations.

    1. In order to protect airport approaches against obstruction, to protect the life and property of users of airports of the public utility class and of occupiers of land in their vicinity, to encourage and foster the use of airports, to safeguard the public investment therein, and to promote the public health, safety, and general welfare, all cities, of whatever class, are given the power to promulgate, administer, and enforce, in the manner and upon the conditions prescribed in this section, zoning regulations with respect to any airports of the public utility class by which they may be served, whether owned by them or not, dividing the area surrounding such airports into zones and limiting the height of all existing and future structures and objects of natural growth therein.
    2. Where an airport serves more than one (1) city, this power shall be vested in the commission vested with control and administration of the airport as provided by the statutes of the State of Arkansas and ordinances adopted pursuant to them.
    1. In promulgating airport zoning regulations under authority of this subchapter, the city or agency thereof promulgating the regulations shall prescribe such zone and height limits as it considers reasonably necessary and calculated to insure airport approaches and turning space adequate for all flying operations expected to be conducted at the airport in question.
    2. The limits shall not be more exacting than is justified taking into account, among other considerations, the terrain in the vicinity of the airport, the height of existing structures and objects of natural growth above the level of the airport, and the possibility of lowering or removing existing obstructions.
    3. The area zones shall in no case extend more than five (5) miles from the airport.
    4. The zone and height limits shall in no case be more exacting than is necessary to conform to the current airport approach and turning space standards of the Federal Aviation Administration, or such other agency of the federal government as may be concerned with the development of civil aeronautics.
    1. Any city upon which this power is conferred may promulgate, administer, and enforce airport zoning regulations even though all or a part of the airport in question, or all or a part of the area to be zoned, is located outside its corporate limits and within the territory of another political subdivision.
    2. In all such cases, the political subdivision having within its territorial limits all or a portion of an airport, or all or a portion of its zones, but not vested with this power shall not promulgate any regulations of any kind that would conflict or interfere with the airport zoning regulations promulgated by the city authorized by this section to do so, or in any way hinder or interfere with the enforcement of this regulation.
  1. The governing body of any city may delegate the power to promulgate, administer, and enforce airport zoning regulations granted by this subchapter to any zoning board or planning commission under its jurisdiction and may, if it so desires, authorize one (1) agency to determine and promulgate the regulations and another to administer and enforce them.

History. Acts 1941, No. 116, § 2; A.S.A. 1947, § 74-302.

Case Notes

Unreasonable Regulation.

Where there was no evidence to justify the conclusion that airport served a nearby city, or the inhabitants thereof, or that it was necessary to promote their safety or general welfare, a city ordinance zoning lands adjacent to air strip was an unreasonable and arbitrary exercise of police power. State ex rel. Publicity & Parks Comm'n v. Earl, 233 Ark. 348, 345 S.W.2d 20 (1961).

14-363-205. Lawful nonconforming uses.

  1. In order to eliminate or mitigate existing hazards to landing and taking off at airports of the public utility class, to improve and make safer such airports, and to permit public use of the obstructed air space needed for such use, all cities granted the power to promulgate, administer, and enforce airport zoning regulations, by § 14-363-204, are given the power to acquire, by purchase, grant, or condemnation, such estate or interest in any structure or object of natural growth, existing at the time of adoption of zoning regulations pursuant to this subchapter, which does not conform to the height limitations of the regulations and for which a permit has been granted in accordance with § 14-363-206(a), as is necessary to permit lowering or removal of the structure or object of natural growth to the extent necessary to conform to the height limits.
  2. In cases of imminent danger to the health, safety, and general welfare of the public, the city shall have the power to take immediate steps as are necessary to remove the danger. A hearing shall thereafter be held to determine what compensation, if any, should be made to the owner of the structure or object of natural growth causing the danger.

History. Acts 1941, No. 116, § 4; A.S.A. 1947, § 74-304.

14-363-206. Permits and variances.

  1. Permits for Continuance of Nonconforming Uses.
    1. The owner of any structure or object of natural growth existing at the time of the adoption of airport zoning regulations under authority of this subchapter which does not conform to the regulations shall be granted a permit authorizing continuance of the nonconforming use upon application made by him to the board, commission, or agency authorized to administer and enforce the regulations.
    2. If the application is not made within ninety (90) days of the effective date of the regulations in question, the board, commission, or agency shall, by appropriate action, compel the owner of the nonconforming structure or object of natural growth, at his own expense, to lower or remove the object to the extent necessary to conform to the regulations.
  2. Permits for Change and Repair of Nonconforming Uses.
      1. Before any existing nonconforming structure or object of natural growth for which a permit has been issued in accordance with subsection (a) may be altered or repaired, rebuilt, allowed to grow higher, or replanted, a permit must be secured from the board, commission, or agency authorized to administer and enforce the regulations authorizing that change or repair.
        1. No permit shall be granted that would permit the structure or object of natural growth in question to be made higher or become a greater hazard to air navigation than it was when the permit for its continuance was granted under subsection (a).
        2. Where the structure or object of natural growth has been more than fifty percent (50%) torn down or destroyed, whether voluntarily or by act of God or otherwise, or has become more than fifty percent (50%) deteriorated or decayed, no permit shall be granted that would permit the structure or object of natural growth to exceed the applicable height limit prescribed by the zoning regulations. Instead, in all such cases of fifty percent (50%) destruction, deterioration, or decay, whether application is made for a permit for repair or not, the board or agency shall, by appropriate action, compel the owner of the nonconforming structure or object of natural growth, at his own expense, to lower or remove the object to the extent necessary to conform to the height limit.
    1. Except as indicated, all applications for permits for change or repair of nonconforming uses shall be granted.
  3. Permits for All Uses. Where advisable to facilitate the enforcement of zoning regulations adopted pursuant to this subchapter, a system for the granting of permits for all uses and structures within the zoned area may be established.
  4. Variances.
    1. Any person desiring to erect any structure or increase the height of any structure or permit the growth of any object of natural growth, in excess of height limits prescribed under authority of this subchapter, must apply to the board, commission, or agency authorized to consider these applications for a variance from the zoning regulations in question.
    2. Variances shall be allowed upon a showing of practical difficulty or unnecessary hardship, together with a showing that the structure or object of natural growth in question will not constitute an undue hazard to aircraft operations at the airport.
  5. Obstruction Marking and Lighting. In granting any application for any permit or variance in accordance with this section, the board, commission, or agency authorized to do so may, if it deems the action advisable to effectuate the purposes of this subchapter, so condition the permit or variance as to require the owner of the structure or object of natural growth in question to install and maintain obstruction marking or lighting.
  6. Exhaustion of Remedies. No person desiring to continue a nonconforming use, to change or repair a nonconforming use, to take any action requiring a variance under subsection (d), or to take any other action covered by this section shall initiate any action in the courts unless and until he has exhausted the remedies provided by this section.

History. Acts 1941, No. 116, § 3; A.S.A. 1947, § 74-303.

14-363-207. Public hearings.

  1. In all cases of applications for permits and variances as provided for in § 14-363-206, a public notice shall be published in the manner prescribed by law for publication of legal notices of a public hearing upon the application in question.
  2. A public hearing shall be held at which any person having an interest in the proceedings shall have an opportunity to offer evidence for or in opposition to the application in question.
  3. Written findings of fact and conclusions of law shall be made by the board, commission, or agency authorized to consider the application, based upon the evidence offered at the public hearing.

History. Acts 1941, No. 116, § 5; A.S.A. 1947, § 74-305.

14-363-208. Judicial review.

  1. Any person aggrieved by any zoning regulations adopted pursuant to this subchapter, or by any order or ruling upon an application for a permit or variance, may within thirty (30) days appeal to the circuit court of the county within which the structure or object of natural growth in question is located.
  2. After such notice as the court shall direct to the parties interested, including all political subdivisions served by the airport affected and the city promulgating the zoning regulations in question, a hearing may be had before the court at an early and convenient time and place fixed by it.
    1. The court may annul, affirm, or alter the regulations, order, or ruling complained of if it finds that the applicable rules of law so require.
    2. Any findings of fact made by the board, commission, or agency authorized by substantial evidence shall be accepted by the court as conclusive.
  3. Appeals from the circuit court shall be in accordance with the laws governing appeals.

History. Acts 1941, No. 116, § 6; 1985, No. 257, § 7; A.S.A. 1947, § 74-306.

Subchapter 3 — United States Airports

Preambles. Acts 1955, No. 401 contained a preamble which read:

“Whereas, flight hazards constitute a danger to the lives and property of persons living near United States airports; and

“Whereas, the unregulated use of land in the vicinity of the United States airports imperils the utility of such airports….”

Effective Dates. Acts 1955, No. 401, § 9: Mar. 29, 1955. Emergency clause provided: “It has been found and is declared by the General Assembly of the State of Arkansas that flight hazards exist which are a constant danger to occupants near United States airports, and that the utility of the airports is impaired by nonconforming structures and that the enactment of the foregoing provisions will preclude the existing conditions. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health and safety, shall take effect and be in force from the date of its approval.”

14-363-301. Definitions.

As used in this subchapter, unless the context otherwise requires:

  1. “United States airport” means any United States airport owned or operated by the federal government, any part of which is located within the State of Arkansas;
  2. “County” means a county within whose borders there is any part of a United States airport;
  3. “City” means any city whose territorial limits are within fifty thousand feet (50,000') from any United States airport;
  4. “Person” means any individual, firm, copartnership, public or private corporation, company, association, joint-stock association, or body politic and includes any trustee, receiver, assignee, or other similar representative thereof; and
  5. “Structure” means any object constructed or installed by man including, but without limitation, buildings, towers, smokestacks, and overhead transmission lines.

History. Acts 1955, No. 401, § 1; A.S.A. 1947, § 74-313.

14-363-302. Penalty.

  1. Any person who violates a provision of this subchapter or a regulation promulgated pursuant thereto shall be fined in any sum not less than twenty-five dollars ($25.00) nor more than one thousand dollars ($1,000).
  2. Each day a violation continues is a separate offense.

History. Acts 1955, No. 401, § 7; A.S.A. 1947, § 74-319.

14-363-303. Promulgation and enforcement of regulations.

  1. All counties and cities of any class and towns are empowered to promulgate and enforce zoning regulations with respect to United States airports in the manner provided in this section by dividing the area surrounding the airports into zones and limiting the height of all existing and future structures and objects of natural growth therein.
    1. Cities and towns within fifty thousand feet (50,000') of a United States airport are empowered to promulgate and enforce zoning regulations within their respective city limits only.
    2. Counties are empowered to promulgate and enforce zoning regulations in the area thereof within fifty thousand feet (50,000') of a United States airport which is not within the limits of a city or town.
  2. Zoning regulations promulgated for the benefit of United States airports shall conform to and be consistent with United States Air Force standards and specifications and such waivers of the zoning regulations as may be made by the United States Government.
  3. The governing body of any county, city, or town may delegate the power to promulgate, administer, and enforce airport zoning regulations granted by this subchapter to any zoning board or planning commission under its jurisdiction, and it may authorize one (1) agency to promulgate the regulations and another to administer and enforce them.
    1. In counties not having a county planning board, the board shall promulgate the regulations contemplated in this section in accordance with the procedure prescribed by §§ 14-17-201, 14-17-202, 14-17-204 — 14-17-209, and 14-17-211.
    2. In counties not having a county planning board, the county judge, along with four (4) residents of the county to be selected by the judge, shall compose a board to be known as the “county airport planning board.” This board shall promulgate the regulations contemplated in accordance with the procedure prescribed in §§ 14-17-201, 14-17-202, 14-17-204 — 14-17-209, and 14-17-211.
  4. A county, city, or town is entitled to the remedy of either affirmative or negative injunction to enforce its regulations.

History. Acts 1955, No. 401, §§ 2, 7; 1985, No. 257, § 8; A.S.A. 1947, §§ 74-314, 74-319.

14-363-304. Lawful nonconforming uses.

  1. In order to eliminate or mitigate existing hazards to landing and taking off at United States airports, to improve and make safer such airports, and to permit use of the obstructed air space needed, all counties, cities, towns, or any agency thereof, granted the power to promulgate and enforce airport zoning regulations are empowered to acquire, by purchase, grant, or condemnation, such estate or interest in any structure or object of natural growth, existing at the time of adoption of zoning regulations pursuant to this subchapter which does not conform to the height limitations of the regulations and for which no permit has been granted in accordance with § 14-363-305, as is necessary to permit lowering or removal of the structure or object of natural growth to the extent necessary to conform to the height limits.
  2. In cases of imminent danger to the health, safety, and general welfare of the public, the county, city, or town is empowered to take such immediate steps as are necessary to remove the danger. A hearing shall thereafter be held to determine what compensation, if any, should be made to the owner of the structure or object of natural growth causing the danger.

History. Acts 1955, No. 401, § 4; A.S.A. 1947, § 74-316.

14-363-305. Permits and variances.

  1. Permits for Continuance of Nonconforming Uses.
    1. The owner of any structure or object of natural growth existing at the time of the adoption of airport zoning regulations under authority of this subchapter which does not conform to the regulations may be granted a permit authorizing continuance of the nonconforming use upon application made by him to the board, commission, or agency authorized to administer and enforce the regulations.
    2. If the application is not made within ninety (90) days of the effective date of the regulations in question, the board, commission, or agency may, by appropriate action, compel the owner of the nonconforming structure or object of natural growth to lower or remove the object to the extent necessary to conform to the regulations.
  2. Permits for Change and Repair of Nonconforming Uses.
      1. Before any existing nonconforming structure or object of natural growth for which a permit has been issued in accordance with subsection (a) of this section may be altered, repaired, rebuilt, allowed to grow higher, or replanted, a permit must be secured from the board, commission, or agency authorized to administer and enforce the regulations authorizing the change or repair.
        1. No permit shall be granted that would permit the structure or object of natural growth in question to be made higher or become a greater hazard to air navigation than it was when the permit for its continuance was granted under subsection (a) of this section.
        2. Where the structure or object of natural growth has been more than fifty percent (50%) torn down or destroyed, whether voluntarily, by act of God, or otherwise, or has become more than fifty percent (50%) deteriorated or decayed, no permit shall be granted that would permit the structure or object of natural growth to exceed the applicable height limit prescribed by the zoning regulations; instead, in all cases of fifty percent (50%) destruction, deterioration, or decay, whether application is made for a permit for repair or not, the board or agency shall by appropriate action compel the owner of the nonconforming structure or object of natural growth to lower or remove the object to the extent necessary to conform to the height limit.
    1. Except as indicated, all applications for permits for change or repair of nonconforming uses shall be granted.
  3. Permits for All Uses. Where advisable to facilitate the enforcement of zoning regulations adopted pursuant to this subchapter, a system for the granting of permits for all uses and structures within the zoned area may be established.
  4. Variances.
    1. Any person desiring to erect any structure or increase the height of any structure or permit the growth of any object of natural growth, in excess of height limits prescribed under authority of this subchapter, must apply to the board, commission, or agency authorized to consider these applications for a variance from the zoning regulations in question.
    2. Variances shall be allowed upon a showing of practical difficulty or unnecessary hardship, together with a showing that the structure or object of natural growth in question will not constitute an undue hazard to aircraft operations at the airport.
  5. Obstruction Marking and Lighting. In granting any application for any permit or variance in accordance with this section, the board, commission, or agency authorized to do so may, if it deems the action advisable to effectuate the purposes of this subchapter, so condition the permit or variance as to require the owner of the structure or object of natural growth in question to install and maintain obstruction marking or lighting.
  6. Exhaustion of Remedies. No person desiring to continue a nonconforming use, to change or repair a nonconforming use, to take any action requiring a variance under subsection (d) of this section, or to take any other action covered by this section shall initiate any action in the courts unless and until he has exhausted the remedies provided by this section.

History. Acts 1955, No. 401, § 3; A.S.A. 1947, § 74-315.

Meaning of “this act”. See note to § 14-363-301.

14-363-306. Public hearings.

  1. In all cases of applications for permits and variances as provided for in § 14-363-305, a public notice shall be published in the manner prescribed by law for publication of legal notices of a public hearing upon the application in question.
  2. A public hearing shall be held at which any person having an interest in the proceedings shall have an opportunity to offer evidence for or in opposition to the application in question.
  3. Written findings of fact and conclusions of law shall be made by the board, commission, or agency authorized to consider the application, based upon the evidence offered at the public hearing.

History. Acts 1955, No. 401, § 5; A.S.A. 1947, § 74-317.

14-363-307. Judicial review.

  1. Any persons aggrieved by any zoning regulations adopted pursuant to this subchapter or by any order or ruling upon an application for a permit or variance may, within thirty (30) days thereof, appeal to the circuit court of the county within which the structure or object of natural growth in question is located.
  2. After such notice as the court shall direct to the parties interested, including all political subdivisions affected, a hearing shall be held before the court at a time and place fixed by it.
    1. By its decree, the court may annul, affirm, or alter the regulations, order, or ruling complained of if it finds that the applicable rules of law so require.
    2. In all cases, any findings of fact that may have been made by the board, commission, or agency founded upon substantial evidence shall be accepted by the courts as conclusive.

History. Acts 1955, No. 401, § 6; A.S.A. 1947, § 74-318.

Research References

Ark. L. Rev.

Case Note, Lost in Translation: Combs v. City of Springdale, An Overview of the Ins and Outs of Appeals Procedure for Administrative Decisions by Local Governments, 61 Ark. L. Rev. 351.

Chapter 364 Tax On Aviation Fuel

14-364-101. Levy of tax — Exception.

  1. The airport commission of any city or county, by and with the approval of the governing body of the city or county, may, by a majority vote of the membership of the commission, levy and collect a tax of one cent (1¢) per gallon on all aviation fuel sold at the airport operated and managed by the commission.
  2. This section and § 14-364-102 shall not apply to commercial scheduled airline carriers or agricultural flying.

History. Acts 1965, No. 159, § 1; A.S.A. 1947, § 74-212.

Cross References. Levy of tax by regional airport authority, § 14-362-109.

14-364-102. Use of revenues.

All revenues derived from a tax levied upon aviation fuel as authorized in § 14-364-101 shall be set aside and used for the operation and maintenance of the airport for the construction of facilities at the airport or to retire bonds issued for the purchase or the improvement of the airport.

History. Acts 1965, No. 159, § 2; A.S.A. 1947, § 74-213.

Chapters 365-374 [RESERVED.]

[Reserved]

Subtitle 23. Airport Facilities Improvement Districts

Chapters 375-384 [RESERVED.]

[Reserved]

Subtitle 24. Fencing And Livestock Districts

Chapter 385 General Provisions

[Reserved]

Chapter 386 Fencing Districts

Subchapter 1 — General Provisions

Effective Dates. Acts 1891, No. 158, § 28: effective on passage.

Acts 1893, No. 13, § 2: effective on passage.

Acts 1893, No. 17, § 2: effective on passage.

Acts 1897 (Ex. Sess.), No. 28, § 8: effective on passage.

Acts 1901, No. 153, § 2: effective on passage.

Acts 1911, No. 238, § 4: effective on passage.

Acts 1929, No. 15, § 4: approved Feb. 6, 1929. Emergency clause provided: “It is hereby ascertained and declared that until this act takes effect numerous fencing districts will maintain portions of their boundary fences at considerable expenses though no necessity therefor exists and that the law with reference to the enforcement of penalties provided for violation of fencing district or no fence districts acts and with reference to the rights and remedies of persons suffering from depredation of animals in fencing districts or no fence districts will be in an unsettled condition and that this act is necessary for the immediate preservation of public peace, health and safety. “An emergency is hereby declared to exist and this act shall take effect and be in force from and after its passage.”

Acts 1933, No. 147, § 3: Mar. 24, 1933. Emergency clause provided: “Whereas, the present method of collecting delinquent assessments in no fence districts is so ineffective that many districts are being threatened with receiverships an emergency is hereby declared and this act being necessary for the preservation of the public peace, health and safety it shall be in full force and effect from and after its passage and approval.”

Acts 1941, No. 466, § 4: became law without Governor's signature, Apr. 3, 1941. Emergency clause provided: “It is hereby determined and declared that there are many no fence districts in this state which adjoin each other; and that except for the passage of this act, the property owners of this state will have to unnecessarily expend large sums of money in the construction and maintenance of boundary fences which are not needed. An emergency is, therefore, declared to exist, and this act being necessary for the immediate preservation of the public peace, health and safety, shall take effect and be in full force from and after the date of its passage and approval.”

Acts 1943, No. 163, § 2: Mar. 4, 1943. Emergency clause provided: “It is hereby determined and declared that there are many no fence districts in this State which adjoin each other; and that except for the passage of this act, the property owners of this State will have to unnecessarily expend large sums of money in the construction and maintenance of boundary fences which are not needed. An emergency is, therefore, declared to exist, and this act being necessary for the immediate preservation of the public peace, health and safety, shall take effect and be in full force from and after the date of its passage and approval.”

14-386-101. Definition.

As used in this chapter, unless the context otherwise requires, “land” has the same meaning and signification as are attached to the words “real property” in the act providing for the collection of state, county, and city revenue.

History. Acts 1891, No. 158, § 8, p. 272; C. & M. Dig., § 4666; Pope's Dig., § 5754; A.S.A. 1947, § 78-1310.

14-386-102. Penalty for leaving gates open, etc. — Damages.

  1. Any person who shall willfully leave open or unfastened any gate, bars, or other passway leading into a fencing district, or any person passing through a gate, bars, or other passway and finding the gates, bars, or other passway opened or unfastened and shall fail to close or fasten them, or who shall tear down the fence, or any part of it, or in any manner injure or destroy it, shall be guilty of a misdemeanor.
  2. Upon conviction, an offender shall be punished by a fine in any sum not less than one dollar ($1.00) nor more than fifty dollars ($50.00) and, in addition thereto, shall be liable to:
    1. The fencing board of the district so injured for double the amount of damages done to the fence; and
    2. Any person in double the amount of any damages caused him by such action.

History. Acts 1891, No. 158, § 27, p. 272; 1901, No. 153, § 1, p. 292; C. & M. Dig., § 4685; Pope's Dig., § 5774; A.S.A. 1947, § 78-1329.

14-386-103. Penalty for stock running at large — Damages.

  1. After any fencing district has been enclosed by a good and lawful fence, it shall be unlawful for any person who is the owner, or who has control of any kind of stock, to let them run at large in the district.
    1. Any person violating the provisions of this section shall be deemed guilty of a misdemeanor.
    2. Upon conviction, an offender shall be fined in any sum not less than one ($1.00) or more than fifty dollars ($50.00) and, in addition to the fine, shall be liable for double the amount of any damages that any person may sustain by reason of the stock running at large in the district, to be recovered by action before any court having competent jurisdiction.
  2. This section shall not prohibit any person from fencing his lands, or any part of them, separately and pasturing them.

History. Acts 1891, No. 158, § 26, p. 272; C. & M. Dig., § 4684; Pope's Dig., § 5772; A.S.A. 1947, § 78-1328.

Case Notes

Enclosure.

The construction of a fence around a fencing district is required only to the extent essential to the protection of the district from stock running at large, and where a fencing district is bounded on all sides by an adjacent fencing district already established, the construction of a fence is not required. Cranor v. Jenkins, 149 Ark. 154, 231 S.W. 883 (1921).

Liability.

Where fencing district is established and fence built, any person within the district is liable in damages for permitting animals to run at large even though lawful fence is not maintained and gates are down. Hill v. Gibson, 107 Ark. 130, 154 S.W. 203 (1913).

Presumptions.

In a prosecution of violations, the regularity of the formation of the district is presumed. Skiles v. State, 150 Ark. 300, 234 S.W. 721 (1921).

14-386-104. Establishment of fencing districts.

  1. The county court of any county in the state is authorized, empowered, and required, on the petition of two-thirds (2/3) of the landowners of any township, or any fractional part of them contiguous to each other, to form a fencing district and establish the boundaries of it in accordance with the petition.
  2. Each district shall be designated by number.

History. Acts 1891, No. 158, § 1, p. 272; 1893, No. 18, § 1, p. 22; A.S.A. 1947, § 78-1301.

14-386-105. Appointment of fencing board, etc.

      1. Immediately upon the formation of a fencing district, the county court shall appoint three (3) persons, and owners of land in it who shall compose the fencing board of the district.
      2. If the petition for the formation of such a district names the persons to be appointed as the board, the court shall appoint the persons named in the petition.
        1. Each member of the board shall, within ten (10) days after his appointment, take the oath of office required by Arkansas Constitution, Article 19, § 20 and that he will not, either directly or indirectly, be interested in any contract made by the board.
        2. The oath shall be filed in the office of the county clerk.
      1. If any member of the board shall fail to take the oath and file it in the office of the clerk within the time allowed in this section, he shall be taken to have declined the office and the court shall at once appoint another person having the like qualifications in his place, who shall take and file the oath of office within ten (10) days after his appointment.
    1. The board shall elect one of their number chairman.
      1. Vacancies that may occur after the board shall have organized shall be filled by appointments made by the remaining members.
      2. If all the places on the board become vacant, or if those appointed shall, after qualification, refuse or neglect to act, new members shall be appointed by the court as in the first instance.
    1. A majority of the board shall constitute a quorum for the transaction of business and the performance of the duties enjoined by this subchapter.
    2. The members of the board shall receive no compensation for their services.

History. Acts 1891, No. 158, §§ 2-6, p. 272; C. & M. Dig., §§ 4658-4662; Pope's Dig., §§ 5746-5750; A.S.A. 1947, §§ 78-1302 — 78-1306.

14-386-106. Appointment of collector and treasurer, etc.

      1. The fencing board shall appoint the collector and treasurer of the district, who shall take the oath of office required by § 14-386-105.
      2. The collector and treasurer shall execute bond to the chairman of the board, each in a sum at least equal to twice the amount of moneys which will probably come to their hands, with good and sufficient security, to be approved by the board, conditioned that:
        1. They will faithfully discharge the duties of their office; and
        2. They will account for and pay over all moneys that may come to their hands according to law and the order of the board for the district for which they were appointed.
    1. The same person may be treasurer or collector of one (1) or more districts of the county, but the moneys of the different districts shall be kept separately.
    1. The collector shall pay over to the treasurer on the first of each month all moneys received by him, deducting from them three percent (3%) for his services, and shall take duplicate receipts for them, one (1) of which he shall file with the board.
      1. The treasurer shall pay out no moneys save upon the order of the board and upon a warrant signed by the chairman of it.
      2. The treasurer shall be allowed a commission of one percent (1%) on all sums by him lawfully paid out.

History. Acts 1891, No. 158, §§ 21-24, p. 272; C. & M. Dig., §§ 4680-4683; Pope's Dig., §§ 5768-5771; A.S.A. 1947, §§ 78-1324 — 78-1327.

14-386-107. Plans for building fence.

    1. Immediately after their organization, fencing boards shall form plans for the building of a good and lawful fence and all necessary gates to enclose and protect the fencing district and shall procure estimates of the cost of it.
    2. For this purpose, the board may employ such engineers, surveyors, and other agents as may be needed, and may provide for their compensation, which, with all other necessary expenditures, shall be taken as a part of the cost of the fencing.
  1. If for any cause the improvement shall not be made, the cost shall be a charge upon the land in the district and shall be raised and paid by assessment in the manner prescribed in § 14-386-115.

History. Acts 1891, No. 158, § 7, p. 272; C. & M. Dig., § 4663; Pope's Dig., § 5751; A.S.A. 1947, § 78-1307.

Case Notes

Cited: Little Rock & Ft. S.R.R. v. Huggins, 64 Ark. 432, 43 S.W. 145 (1897); Stiewel v. Fencing Bd., 71 Ark. 17, 70 S.W. 308, 71 S.W. 247 (1902).

14-386-108. Openings and gates required.

A fencing board shall provide for openings and gates with good and convenient fastenings on all public highways or necessary roads, and at such other points along the enclosing fence as they may deem advisable, and shall have substantial blocks or stiles placed adjacent to the roads on each side of every gate or opening.

History. Acts 1891, No. 158, § 12, p. 272; 1893, No. 17, § 1, p. 21; C. & M. Dig., § 4664; Pope's Dig., § 5752; A.S.A. 1947, § 78-1309.

14-386-109. No boundary fences for adjoining districts.

  1. In all cases where two (2) or more fence or no-fence districts adjoin at one (1) or more points, it shall be unnecessary for the districts to construct or maintain a boundary fence at the points where the districts adjoin each other. The terms “fence district” and “no-fence district” shall mean any territory within which the running at large of stock or animals of any kind is prohibited, regardless of whether it is termed a fence district, a no-fence district, a stock law district, or any other name.
  2. In all such cases, all of the provisions of the law under which each of the adjoining districts is operating shall be applicable to the districts, despite the fact that there is no boundary fence at the point where the districts adjoin.

History. Acts 1941, No. 466, §§ 1, 2; 1943, No. 163, § 1; A.S.A. 1947, § 78-1356.

14-386-110. Removal of fence in adjoining districts.

  1. In any fencing district or no-fence district created, whether under a special act or the general laws of the State of Arkansas, where any such district shall be adjoined either before or after the construction of its boundary fence by any other fencing or no-fence district in the same or any other county, if a boundary fence shall have been constructed along such portion of the district's boundary prior to the organization of the other district, the commissioner or directors of the district shall have the right to tear down and remove the fence at all points where it shall be adjacent or contiguous to the other district and may dispose of the materials in the fence as, in their judgment, they may deem to be the best interest of the district.
  2. The penalties provided for allowing animals to run at large and the remedies offered for depredation of such animals and any and all other provisions of fencing districts or no-fence districts laws shall remain in full force and effect and shall not be deemed to be in any manner abrogated or nullified by reason of the fact that there may be no fence along the line between any two (2) fencing or no-fence districts.

History. Acts 1929, No. 15, §§ 1, 2; Pope's Dig., §§ 5784, 5785; A.S.A. 1947, §§ 78-1354, 78-1355.

14-386-111. Use of existing fences.

  1. If in the construction of the fence of a fencing district any owner of land in the district shall be found to have built a fence which may be profitably made a part of the general fence for the district, being as good as that required by the system determined upon by the fencing board, the board shall appraise the value of the fence made by the owner and shall allow its value as a set-off against the assessment against his land.
    1. In case the fence made by the owner shall be found to fail to meet the required standard, the board may allow the owner the value of the materials of it, insofar as they may be profitably used in perfecting the fence of the district, as a set-off against the assessment against his land.
    2. In such a case, the board shall issue to the owner a certificate showing the amount of the set-off allowed, which certificate shall be received by the collector for the amount named in it in lieu of money charged against the holder's land.

History. Acts 1891, No. 158, § 17, p. 272; C. & M. Dig., § 4676; Pope's Dig., § 5764; A.S.A. 1947, § 78-1318.

14-386-112. Navigable stream as lawful fence.

Where the boundary of any fencing district shall lie along the bank of a navigable stream, and any other watercourse flows into the stream across the boundary with such force as to render it impracticable to maintain watergaps, the distance from bank to bank of the watercourse shall be deemed and held to be a good and lawful fence as part of the fence enclosing the district.

History. Acts 1897 (Ex. Sess.), No. 28, § 7, p. 78; C. & M. Dig., § 4692; Pope's Dig., § 5781; A.S.A. 1947, § 78-1353.

14-386-113. Assessment not required.

If each landowner in a fencing district shall build and maintain his proportionate share of the fence required to make a good and lawful fence for the district in accordance with the plan determined upon by the fencing board, the assessment provided for in this chapter need not be made or collected.

History. Acts 1891, No. 158, § 17, p. 272; C. & M. Dig., § 4676; Pope's Dig., § 5764; A.S.A. 1947, § 78-1318.

14-386-114. Railroads subject to tax.

  1. Every railroad company, foreign or domestic, doing business in this state and having any part of its real property situated wholly or in part in any fencing district formed in this state, whether it is formed under general or special law, shall be required to pay taxes for the benefit of any such district.
  2. The tax required in this section shall be assessed by the county court, which assessment shall be based upon the last assessment made by the Assessment Coordination Division, and each parcel of land or right-of-way owned by the railroad, and situated in any such district, shall be subject to the tax.

History. Acts 1911, No. 238, §§ 1, 2; C. & M. Dig., §§ 4668, 4669; Pope's Dig., §§ 5756, 5757; A.S.A. 1947, §§ 78-1319, 78-1320.

A.C.R.C. Notes. The Assessment Coordination Division of the Public Service Commission was transferred by a Type 2 transfer as provided in § 25-2-105 to the Assessment Coordination Department pursuant to § 25-28-102(a).

14-386-115. Order of assessment.

    1. As soon as the fencing board shall have formed its plan and shall have ascertained the cost of the fencing, it shall report it to the county court, which shall at once, by order, assess the cost upon the land in the district, assessing each parcel of land according to its value as shown by the last county assessment on file in the office of the county clerk.
    2. In the case of land owned by railroad companies, the assessment shall be made according to the value of the land as shown by the last assessment made by the Assessment Coordination Division.
    1. If the estimated cost of the fencing shall exceed one percent (1%) of the assessed value of the land as indicated, then it shall be provided by the order that the assessment shall be paid in successive annual installments, so that no assessment shall in any one (1) year exceed one percent (1%) of the assessed value of the land for the fencing.
    2. The order shall fix the day in each year when the assessment for the year shall be paid, and the day fixed for the payment of the first installment shall not be later than sixty (60) days from the date of the order making the assessment.
  1. The order of the county court assessing the cost of fencing may be in the following form:

“Whereas, Two-thirds of the landowners of Fencing District No. have petitioned for the formation of said district, and,

Whereas, Said district has been formed and established by orders of this court on said petition and a fencing board for said district have been appointed and have qualified and have reported to the court an estimate of the cost of fencing said district, and,

Whereas, The estimated cost of said fencing is dollars, amounting to percent of the assessed value of said real property; therefore,

It is now ordered and adjudged by the court that all land situated in said district be assessed at the rate of percent upon the dollar of the said valuation, as the same appears by the assessment made by the assessor of this county, now on file in the county clerk's office, which assessment shall be paid on or before the day of , 20 , and such assessment shall be a charge against and lien upon the lands in said district from the date of said order.”

History. Acts 1891, No. 158, §§ 9, 10, 13, p. 272; 1893, No. 18, § 1, p. 22; 1911, No. 238, § 3; C. & M. Dig., §§ 4667, 4670, 4672; Pope's Dig., §§ 5755, 5758, 5760; A.S.A. 1947, §§ 78-1311, 78-1312, 78-1314.

Publisher's Notes. This section is being set out to correct a department name in subdivision (a)(2).

Case Notes

Presumption of Regularity.

A complaint which sought to collect an assessment of a fencing district which alleged that the assessment was levied by the board of commissioners and approved by the county court was not defective in failing to allege that the county court made the assessment, as it would be presumed, in the absence of a contrary showing, that the assessment was regularly made. Eagle v. Board of Comm'rs, 91 Ark. 378, 121 S.W. 340 (1909).

14-386-116. Publication of order — Contest.

  1. Within seven (7) days from the making of the order mentioned in § 14-386-115, the county clerk shall publish a copy of it in some newspaper published in the county one (1) time if a newspaper is published in the county; and if not, then by posting the copy at the courthouse door, and by posting not less than ten (10) copies of it in the district.
    1. Anyone who may feel aggrieved by the order may object to the assessment.
    2. A person shall commence legal proceedings for the purpose of trying the validity of the assessment within twenty (20) days after the date of publication, or else he shall be forever barred in all courts of law or equity from questioning the validity of the assessment and the lien created by it.

History. Acts 1891, No. 158, § 14, p. 272; C. & M. Dig., § 4673; Pope's Dig., § 5761; A.S.A. 1947, § 78-1315.

14-386-117. Delivery of assessment to collector.

  1. Immediately after making the order, the county clerk shall:
    1. Make out, at the expense of the fencing district, a copy of so much of the last assessment made by the county assessor as contains the description and valuation of the land situated in the district;
    2. Extend against each parcel of land on it the assessment made; and
    3. Deliver it, with his warrant attached to it, to the collector of the district within thirty (30) days from the making of the order.
  2. The warrant may be in the following form:

“State of Arkansas to the Collector of Fencing District No. : “You are hereby commanded to collect from the owners of land described in the annexed list the assessments thereon extended and to pay them to the treasurer of the district within sixty (60) days from this date. “Witness my hand and official seal of this day of , 19 ”

Click to view form.

History. Acts 1891, No. 158, § 15, p. 272; C. & M. Dig., § 4674; Pope's Dig., § 5762; A.S.A. 1947, § 78-1316.

14-386-118. Notice of assessment.

  1. The collector of a fencing district shall, immediately upon the receipt of the tax list, cause to be published in some newspaper published in the county, if there is one, a notice which may be in the following form:
  2. The notice shall also be published by posting ten (10) copies of it in the district.

“SPECIAL ASSESSMENT “The tax book for the collection of the special assessment upon the land in Fencing District No has been placed in my hands. All owners of land lying in this district are required to pay their assessment to me within thirty days from this date. If such payment is not made, action will be commenced at the end of that time for collection of said assessments and for legal penalties and costs.” “Given under my hand this day of , 19 . , Collector.”

Click to view form.

History. Acts 1891, No. 158, § 16, p. 272; C. & M. Dig., § 4675; Pope's Dig., § 5763; A.S.A. 1947, § 78-1317.

14-386-119. Proceedings upon nonpayment of assessment.

  1. If any assessment made under this subchapter shall not be paid within the time mentioned in the notice published by the collector of a fencing district:
    1. The collector shall add to it a penalty of twenty percent (20%) and shall at once return a list of the property on which the assessments have not been paid to the fencing board, as delinquent;
      1. The board shall straightway cause a complaint in equity to be filed in the court having jurisdiction of suits for the enforcement of liens upon real property, for the condemnation and sale of such delinquent land for the payment of the assessment, penalty, and costs of suit.
      2. In the complaint, it shall not be necessary to state more than the fact of the assessment and the nonpayment of it within the time required by law, without any other further statement of any step required to be taken by the court, the board, or any officer whatever, concluding with a request that the delinquent lands be charged with the amount of the assessment, penalty, and costs of suit and be condemned and sold for the payment of it.
    1. It shall not be necessary to exhibit with the complaint any copy of any order of court or other document or paper connected with the assessment and collection of moneys assessed under this subchapter; and
    2. It shall be no objection to any suit brought for this purpose that the lands of two (2) or more owners are joined in the same proceeding, as such a suit may be brought against one (1) or more owners.
    1. In these suits the same service shall be had on defendants, and the case shall proceed in the same manner as is provided by law in cases or suits for the collection of assessments for local improvements in cities of the first class, insofar as these proceedings can be made applicable.
    2. In case of sale, the owner shall have the same right of redemption by paying the amount of the purchase money and all assessments to the purchaser and twenty percent (20%) on it, within one (1) year from the date of sale.

History. Acts 1891, No. 158, §§ 18-20, p. 272; C. & M. Dig., §§ 4677-4679; Pope's Dig., §§ 5765-5767; A.S.A. 1947, §§ 78-1321 — 78-1323.

Case Notes

Attorney's Fees.

No attorney's fee is to be allowed in a suit to enforce an assessment. Eagle v. Board of Comm'rs, 91 Ark. 378, 121 S.W. 340 (1909).

Complaint.

A complaint which sought to collect an assessment of fencing district which alleged that the assessment was levied by board of commissioners and approved by the county court was not defective in failing to allege that the county court made the assessment, since it would be presumed that assessment was regularly made. Eagle v. Board of Comm'rs, 91 Ark. 378, 121 S.W. 340 (1909).

Foreclosure.

Foreclosing authorities must exercise good faith by endeavoring to ascertain names of owners of property. Meserve v. Edmonds, 223 Ark. 297, 265 S.W.2d 704 (1954).

Property owners are entitled to personal service in foreclosure proceedings. Meserve v. Edmonds, 223 Ark. 297, 265 S.W.2d 704 (1954).

Property owners should be made parties to foreclosure proceedings, and if not known, that fact should be alleged so that suit can proceed in rem as against unknown property owners. Meserve v. Edmonds, 223 Ark. 297, 265 S.W.2d 704 (1954).

Reimbursement.

Where the commissioners of a fencing district advanced their own funds for material to build the fence, although the fence was never completed for want of sufficient funds, the district was liable to reimburse them for the money paid out in constructing the fence. Eagle v. Board of Comm'rs, 91 Ark. 378, 121 S.W. 340 (1909).

14-386-120. Certifying delinquencies in no-fence district.

  1. In all instances where county collectors are charged with the collection of assessments in no-fence districts, they shall, in addition to certifying the list of delinquent assessments to the commissioners of the district, certify the list to the county clerk.
    1. It is the duty of the clerks to add delinquent assessments to any application for redemption of lands sold for state and county taxes.
    2. It is the duty of the county treasurers to collect the assessments and pay the collection to the commissioners of the district.

History. Acts 1933, No. 147, §§ 1, 2; Pope's Dig., §§ 13893, 13894; A.S.A. 1947, §§ 78-1362, 78-1363.

14-386-121. Annual repairs.

  1. The cost of keeping a fence in repair shall, from year to year, be ascertained, collected, and expended in the same manner as is provided in § 14-386-115 as to the cost of the original erection of the fence. However, the county court shall be authorized, on the petition of two-thirds (2/3) of the landowners of the district, to revoke the order that established the district.
  2. No order of revocation shall in any way interfere with or prevent the assessment and collection of all sums needed to pay all debts contracted by the fencing board prior to the order of revocation.

History. Acts 1891, No. 158, § 11, p. 272; C. & M. Dig., § 4671; Pope's Dig., § 5759; A.S.A. 1947, § 78-1313.

14-386-122. Control of fence construction.

  1. Fencing boards shall have control of the construction of the fence for their districts.
    1. The boards may advertise for proposals for doing any work by contract and may accept or reject any proposals.
      1. All contractors shall be required to give bond for the faithful performance of such contracts as may be awarded them, with good and sufficient securities in double the amount of the contract work.
      2. The bond shall be given to the board, and suits may be brought on it in the name of the board, but the sum recovered shall be for the use of the district for which the bond was given.

History. Acts 1891, No. 158, § 25, p. 272; C. & M. Dig., § 4665; Pope's Dig., § 5753; A.S.A. 1947, § 78-1308.

Subchapter 2 — Small Stock

Effective Dates. Acts 1899, No. 103, § 3: effective on passage.

Acts 1901, No. 155, § 3: effective on passage.

Acts 1907, No. 291, § 2: effective on passage.

Acts 1919 (1st Ex. Sess.), No. 688, § 2: Apr. 5, 1919. Emergency declared.

14-386-201. Penalty.

  1. Whenever a fencing district is established under the provisions of this subchapter, it shall be unlawful for any person owning or having control of stock that have been restrained from running at large to knowingly permit such stock to run at large within the territory comprising the district.
  2. Any person violating the provisions of subsection (a) of this section shall be deemed guilty of a misdemeanor and upon conviction shall be fined not less than ten dollars ($10.00) nor more than twenty-five ($25.00) dollars.

History. Acts 1901, No. 155, §§ 1, 2, p. 294; C. & M. Dig., § 4657; Pope's Dig., § 5745; A.S.A. 1947, §§ 78-1332, 78-1333.

Case Notes

In General.

This section provides a penalty for violation of this subchapter. Flowers v. State, 83 Ark. 208, 103 S.W. 384 (1907).

Cited: Cranor v. Jenkins, 149 Ark. 154, 231 S.W. 883 (1921).

14-386-202. Establishment of fencing districts.

    1. The county court of any county is authorized, empowered, and required, on the petition of a majority in land value, acreage, or number of landowners of any townships or any fractional part of them contiguous to each other, to form and establish a fencing district and establish the boundaries of it, in accordance with the petition.
    2. The court may change the boundaries of the district by adding new territory contiguous to it upon the application of a majority in land value, acreage, or number of landowners of the territory to be added.
    3. Each district shall be designated by number.
    1. The petitioners shall specify in their petition what stock they wish to restrain from running at large, and the county court shall make an order restraining the stock mentioned in the petition from running at large within the district.
    2. The district shall apply to such stock as are mentioned in the petition.

History. Acts 1899, No. 103, § 1, p. 166; 1907, No. 291, § 1, p. 688; C. & M. Dig., § 4655; Acts 1919, No. 688, § 1; A.S.A. 1947, § 78-1330.

Case Notes

In General.

Although enactment of this section was in the form of an amendment to § 14-386-104, the new matter included made it an independent and distinct law on the subject of fencing districts and authorized the establishment of districts against small stock as described in § 14-386-203. Flowers v. State, 83 Ark. 208, 103 S.W. 384 (1907).

Purpose.

A fencing district may be established by the county court for the purpose of keeping out small stock without complying with law governing fencing districts generally. Flowers v. State, 83 Ark. 208, 103 S.W. 384 (1907).

Appeals.

The question whether a fencing district was legally formed will not be considered on appeal if the appellant's abstract fails to set out the proceedings under which the district was formed. Eagle v. Board of Comm'rs, 91 Ark. 378, 121 S.W. 340 (1909).

Cited: Hill v. Gibson, 107 Ark. 130, 154 S.W. 203 (1913).

14-386-203. Lawful fence.

Whenever a fencing district is established as to small stock, such as hogs, sheep, goats, etc., four (4) barbed wires securely fastened to posts firmly set in the ground, not exceeding sixteen feet (16') apart, the bottom wire twenty inches (20") above the ground, the second wire ten inches (10") above the first, the third wire twelve inches (12") above the second, and the fourth wire twelve inches (12") above the third; or five (5) sound rails securely fastened to posts firmly set in the ground, the top rail four and one-half feet (4½') above the ground, and the others properly spaced beneath, shall be a lawful fence within the district.

History. Acts 1899, No. 103, § 2, p. 166; C. & M. Dig., § 4656; Pope's Dig., § 5744; A.S.A. 1947, § 78-1331.

Subchapter 3 — Additions or Consolidations

Effective Dates. Acts 1927, No. 83, § 4: Mar. 4, 1927. Emergency declared.

Acts 1933, No. 119, § 3: effective on passage.

14-386-301. Addition of adjacent area to fencing district.

  1. When any number of owners of either rural acreage or city or town land near or adjacent to any fencing district organized under and pursuant to the law shall present to the county court a petition, in writing, accompanied by a map giving description and setting forth such land as they desire to have enclosed in any such district embraced within the enclosure of the fence of the district, it shall be the duty of the court to give a notice by publication in some newspaper in the county for a period of not less than twenty (20) days of a hearing upon the petition, calling upon all persons whose lands or interest may be affected by the petition to appear and show cause, if any, why the request of the petitioner should not be granted.
  2. If upon the hearing, the court shall deem that owners of a majority in value or acreage of the land affected favor the petition and that the lands should be enclosed within the fencing district and protected by the enclosure or fences kept and maintained by the district, it shall be the duty of the court to make an order enclosing the lands in the district and to direct the commissioner of the district to make such alteration of the fences kept and maintained by the district as may be necessary to bring the lands within the enclosure.
    1. From the date of the order, all lands which shall become a part of the fencing district shall thereafter be liable for such charges, taxes, and assessments as are levied against other lands within the district.
      1. The lands so enclosed in the order shall be liable for any special assessments made by the commissioner of the district, to help defray the cost and expenses of making the alteration necessary to enclose the additional lands.
      2. The assessment shall be paid by the owners of the lands.

History. Acts 1927, No. 83, §§ 1-3, p. 225; Pope's Dig., §§ 5786-5788; Acts 1943, No. 41, § 1; A.S.A. 1947, §§ 78-1334 — 78-1336.

Case Notes

Constitutionality.

This section does not violate the provision of Ark. Const., art. 5, § 29. Norton v. No Fence Dist., 181 Ark. 560, 26 S.W.2d 878 (1930).

Assessments.

Assessments in the new territory should be made in the method prescribed by the statute authorizing the original district. Norton v. No Fence Dist., 181 Ark. 560, 26 S.W.2d 878 (1930).

Funds.

After new territory is annexed to fencing district, it becomes a part of the district and all the funds on hand at that time can be expended for any lawful purpose of the whole district. Barber v. Edwards, 200 Ark. 940, 141 S.W.2d 831 (1940).

Order of Court.

Order of county court annexing 15 square miles of territory to fencing district created by special act was valid against collateral attack. Barber v. Edwards, 200 Ark. 940, 141 S.W.2d 831 (1940).

Court's refusal to make order of annexation where petition contained a majority in acreage or value of the lands embraced for annexation was an abuse of discretion. Armstrong v. Bull, 201 Ark. 377, 144 S.W.2d 707 (1940).

Petitions.

Where two petitions were filed for annexation of territory to a certain district and the lands described in each petition were adjoining and adjoined to original district, it was not error to consolidate the petitions and have one hearing on both petitions. Norton v. No Fence Dist., 181 Ark. 560, 26 S.W.2d 878 (1930).

Second petition could be filed at any time subsequent to judgment dismissing first petition on ground that petitioners did not constitute a majority in value or acreage of the lands sought to be annexed, and parties to first petition could join other and additional parties in the second petition could join other and additional parties in the second petition. Armstrong v. Bull, 201 Ark. 377, 144 S.W.2d 707 (1940).

Dismissal of first petition to have land annexed to and included in a fencing district because petitioners did not constitute a majority in value or acreage of the lands sought to be annexed was not res judicata of subsequent petition embracing different and additional lands and landowners. Armstrong v. Bull, 201 Ark. 377, 144 S.W.2d 707 (1940).

14-386-302. Consolidation of fence or no-fence districts.

    1. All fence districts or no-fence districts created by special act or under § 14-386-202 in any county in the State of Arkansas may be consolidated under the management of one (1) board of commissioners by order of the county court.
    2. One (1) or either of the boards of the districts may be appointed as commissioners of the consolidated district, or the court may appoint three (3) other landowners of the district as commissioners.
  1. The consolidated district as provided in this section shall be governed by general statutes pertaining to fencing districts and all the power conferred in them is invested in the consolidated district and in its board of commissioners.

History. Acts 1933, No. 119, §§ 1, 2; A.S.A. 1947, §§ 78-1345, 78-1346.

Subchapter 4 — Enclosure by Other Districts

Effective Dates. Acts 1943, No. 16, § 10: approved Feb. 1, 1943. Emergency clause provided: “Whereas, due to the state of war now existing between the United States of America and various foreign countries, it is necessary that this state grow vast additional amounts of agricultural products; and it is impossible to obtain the proper materials for the construction of fences, an emergency has arisen, and does now exist and is hereby declared. Therefore, for said reasons, it is hereby declared necessary for the preservation of the public peace, health and safety that this act shall become effective without delay. An emergency therefore exists, and this act shall take effect and be in force from and after its passage.”

Acts 1943, No. 106, § 2: approved Feb. 24, 1943. Emergency clause provided: “Whereas, due to the state of war now existing between the United States of America and various foreign countries, it is necessary that this state grow vast additional amounts of agricultural products; and it is impossible to obtain the proper materials for the construction of fences, an emergency has arisen, and does now exist and is hereby declared. Therefore, for said reasons, it is hereby declared necessary for the preservation of the public peace, health and safety that this act shall become effective without delay. An emergency therefore exists, and this act shall take effect and be in force from and after its passage.”

14-386-401. Penalty for animals running at large — Damages.

  1. If a majority of the qualified electors voting in an election held under the provisions of this subchapter shall approve the creation of the proposed fencing district, the district shall be held and deemed to be enclosed by a good and lawful fence, and it shall be unlawful for any person who is the owner, or who has control, of any kind of stock to let them run at large in the district.
    1. Any person violating the provisions of this section shall be deemed guilty of a misdemeanor and upon conviction shall be fined in any sum not less than one dollar ($1.00) or more than fifty dollars ($50.00).
    2. In addition to the fine, an offender shall be liable for double the amount of any damages that any person may sustain by reason of his stock running at large in the district, to be recovered by action before any court of competent jurisdiction.
  2. This section shall not prohibit any person from fencing his lands, or any part of them separately, and pasturing them.

History. Acts 1943, No. 16, § 4; 1943, No. 106, § 1; A.S.A. 1947, § 78-1340.

14-386-402. Petition to establish district.

When any number of landowners owning land adjacent to any fencing district organized under and pursuant to the law shall present to the county court a petition, in writing, accompanied by a map, giving a description and setting forth what land they desire to have enclosed in such district, and where the lands as set forth and described in the petition are bounded or completely enclosed by existing fencing districts, no-fence districts, counties where a stock law is in effect, or navigable rivers, or combination of them, it shall be the duty of the court to give notice, by publication in some newspaper published in the county where the lands lie, of the filing of the petition and a description of all lands as set forth and contained in the description.

History. Acts 1943, No. 16, § 1; A.S.A. 1947, § 78-1337.

14-386-403. Submission to electors.

  1. The county court shall in the same publication prescribed by § 14-386-402 give notice of and cause an election to be held within thirty (30) days of the date of the filing of the petition, in the townships or parts of townships included in the petition, where the question of the creation of the proposed fencing district shall be submitted to the qualified electors living or owning land in the proposed district.
  2. The court shall designate a place in each township or parts of each township to be affected by the proposed district where the election shall be held and appoint and name the judges and clerks to conduct the election.

History. Acts 1943, No. 16, § 2; A.S.A. 1947, § 78-1338.

14-386-404. Manner of election.

  1. Except as provided for in this subchapter, all elections held under the provisions of this subchapter shall be held subject to and in accordance with the general election laws of this state.
  2. Ballots used in elections provided for in this subchapter shall be substantially in the following form:

“FENCING DISTRICT BALLOT “A petition has been filed in the County court of County to create and establish a fencing district within that part of county bounded and completely enclosed by (here insert the limits and boundaries as contained in the petition). If a majority of the qualified electors voting in this election approve of the proposed fencing district as described above, thirty (30) days after the date of this election, it shall be unlawful for any person or persons to permit stock to roam or run at large within such district. FOR the creation of the fencing district . AGAINST the creation of the fencing district

Click to view form.

History. Acts 1943, No. 16, § 3; A.S.A. 1947, § 78-1339.

14-386-405. Election results.

  1. After the county election commissioners have ascertained and declared the results of any election held under the provisions of this subchapter, it shall be the duty of the county court to cause the results to be printed in some newspaper published in the county where the lands lie.
  2. If the proposed district has been approved, the county court shall declare the proposed fencing district to be created.

History. Acts 1943, No. 16, § 6; A.S.A. 1947, § 78-1342.

14-386-406. Rejection of proposal.

If, at any election held under the provisions of this subchapter, a majority of the electors reject the proposed fencing district, no petition proposing to create or establish such a district with the same boundaries shall be filed within one (1) year from the date of the election at which the proposed district was rejected.

History. Acts 1943, No. 16, § 7; A.S.A. 1947, § 78-1343.

14-386-407. Payment of expenses.

All expenses incurred by any official or officer of any county in performance of duties defined by this subchapter and the costs of all elections held under the provisions of this subchapter shall be paid by the persons signing or filing the petition as provided in this subchapter, unless there is, in the opinion of the county judge, sufficient funds in the county general revenues, in which event the judge is empowered to pay all costs from these revenues, at his discretion.

History. Acts 1943, No. 16, § 5; A.S.A. 1947, § 78-1341.

14-386-408. Navigable river as lawful fence.

Where the boundary of any fencing district created under the provisions of this subchapter shall be a navigable river, the river shall be deemed and held to be a good and lawful fence, as part of the fence enclosing the remainder of the district.

History. Acts 1943, No. 16, § 8; A.S.A. 1947, § 78-1344.

Subchapter 5 — Status and Funding

Effective Dates. Acts 1935, No. 10, § 5: approved Feb. 4, 1935. Emergency clause provided: “It is hereby found and declared that as a result of the economic depression and adverse weather conditions, unemployment is rife throughout the State of Arkansas, and agriculture and industry in the area effected [affected] by this act are in great distress and are suffering from the lack of the public improvements contemplated by this act which cannot be properly financed without the assistance of this legislation; and that many sections of the State are in immediate need of the relief which is sought to be effected by the passage of this act. It is, therefore, found and declared that the immediate operation of this act is necessary for the preservation of the public peace, health and safety, and an emergency is accordingly hereby declared; and this act shall take effect and be in force from and after its passage.”

14-386-501. Construction.

This subchapter shall be liberally construed to the end that its purposes may be successfully accomplished.

History. Acts 1935, No. 10, § 4; A.S.A. 1947, § 78-1361.

14-386-502. Validation of existing districts.

The organization of all fencing districts created and established by order of any county court in the State of Arkansas, which have not been abandoned or dissolved by the judgment or order of any court of competent jurisdiction, are ratified and confirmed. All districts are declared to be legal entities in the nature of quasi-municipal corporations, public agencies with all powers and authorities vested in them by the provisions of §§ 14-386-10114-386-108, 14-386-111, 14-386-113, 14-386-11514-386-119, 14-386-121, 14-386-122, and all legislation supplementary thereto.

History. Acts 1935, No. 10, § 1; Pope's Dig., § 5789; A.S.A. 1947, § 78-1358.

Publisher's Notes. As to validation of elections in districts established by special acts, Acts 1927, No. 84, § 1.

Case Notes

Elections.

An election held under a local law on a different date from that specified in the law was not validated by Acts 1927, No. 84, since the legislature, being prohibited from passing local acts by constitutional amendment, could not make effective a void local act theretofore passed. Simpson v. Teftler, 176 Ark. 1093, 5 S.W.2d 350 (1928) (decision under prior law).

An order of the county court calling a stock-law election, not being signed by the qualified number of electors, was not validated by Acts 1927, No. 84. State v. Phillips, 176 Ark. 1141, 5 S.W.2d 362 (1928) (decision under prior law).

14-386-503. Money from federal government or private sector.

  1. All fencing districts are expressly authorized to accept grants of money from, and to borrow money from, the federal government, or from any federal agency, or from any private person, individual, or corporation, or from any other source, for the purpose of executing or carrying out the purposes for which the district was organized.
    1. Any district, or the fencing board of the district, for the purposes prescribed in subsection (a) of this section is expressly authorized and empowered to enter into and to execute the loan agreements and contracts with the lending agencies as the board may deem necessary or proper in connection with any grant or loan to the district.
    2. Any agreement or contract entered into by any district, or the board of any such district, is ratified, confirmed, and made binding, in all respects, upon any board and its successor, from time to time, and any contract shall be enforceable by an appropriate civil action in the courts of this state.

History. Acts 1935, No. 10, § 2; Pope's Dig., § 5790; A.S.A. 1947, § 17-1359.

14-386-504. Issuance of bonds, notes, etc.

    1. Any fencing district, or the fencing board of the district, for the purposes prescribed in § 14-386-503 is expressly authorized and empowered to issue its general obligation, negotiable bonds, notes, or certificates of indebtedness, in the corporate name of the district, or in the name of the board of any district, in form, denomination, rate of interest, amount, place of payment, date of retirement, terms of payment, or redemption, and with contract provisions required by the lending agency or approved by the board of any district.
    2. In no event shall any bonds or other evidences of indebtedness be sold by any such district, or the board of any such district, on any basis that will cost the borrower over the life of the obligation interest at more than six percent (6%) per annum.
    1. Any and all bonds, notes, or certificates of indebtedness issued by any district, or the board of any such district in its corporate capacity, shall be signed by the chairman and attested by the secretary of the board, in the name of, and for, the district.
      1. All bonds, notes, certificates of indebtedness, or other evidences of indebtedness issued under this subchapter shall:
        1. Be, and constitute, the general obligation of any district;
        2. Have the effect of negotiable paper;
        3. Not be invalid for any irregularity or defect in the proceedings for the issue or sale of them; and
        4. Be incontestable in the hands of bona fide purchasers or holders for value.
        1. Under no circumstances shall any such bond, note, or other evidence of indebtedness issued under this subchapter be held or construed to be an obligation of the State of Arkansas, nor shall the State of Arkansas, under any theory or upon any grounds, be liable or responsible for them.
        2. The bonds, notes, or other evidences of indebtedness, shall be solely and exclusively the general negotiable obligations of the district issuing them in its corporate capacity, or of the board for the district in its representative capacity, and without personal obligation or liability of either of the individual members of the board, and shall be secured by, and payable only from, the assets, property, securities, and revenues, matured or unmatured, of the district, authority for the mortgage, or pledge of which as security for the payment of them is expressly given.

History. Acts 1935, No. 10, § 3; Pope's Dig., § 5791; A.S.A. 1947, § 78-1360.

14-386-505. Disposition of surplus funds.

When any fencing district in this state has completed all of the contemplated improvements and has paid and discharged all of its obligations and has a surplus of funds on hand, not needed for repair or maintenance or the operation of the district, then, in such event, the board of directors of the district may, in their discretion, contribute so much of the surplus funds as they may determine to any public, charitable, educational, or general welfare purpose within the county in which the district is situated.

History. Acts 1949, No. 275, § 1; A.S.A. 1947, § 78-1364.

Subchapter 6 — Stock at Large

Publisher's Notes. Acts 1897 (Ex. Sess.), No. 28, § 6, contained a proviso which read:

“The provisions of this bill shall not apply to Independence County.”

14-386-601. Impounding of animals.

  1. Any person finding stock running at large in any fencing district may impound them.
  2. Immediately upon impounding the stock the impounder shall give notice to the owner or his agent, if known.

History. Acts 1897 (Ex. Sess.), No. 28, § 1, p. 78; C. & M. Dig., § 4686; Pope's Dig., § 5775; A.S.A. 1947, § 78-1347.

Case Notes

Fences.

Stock running at large may be impounded even though fence has never been constructed by district, where district is entirely enclosed by fences of other districts. Cranor v. Jenkins, 149 Ark. 154, 231 S.W. 883 (1921).

Running at Large.

Animals being closely pursued by their owners, in an effort to catch them, cannot be regarded as running at large within the meaning of this section. Flowers v. Huff, 133 Ark. 138, 202 S.W. 31 (1918).

14-386-602. Return to owner.

If the owner shall, within two (2) days after being notified, pay the reasonable charges for impounding, feeding, and caring for the stock, and also pay all damages to owners of crops caused by the stock, they shall be turned over to him.

History. Acts 1897 (Ex. Sess.), No. 28, § 2, p. 78; C. & M. Dig., § 4687; Pope's Dig., § 5776; A.S.A. 1947, § 78-1348.

14-386-603. Appointment of appraisers.

If the parties interested fail to agree upon the amount of the charges and damages, the secretary of the fencing board and the impounder shall each appoint an appraiser, and the appraisers shall adjust and fix the charges and damages, calling in a third party if they cannot agree.

History. Acts 1897 (Ex. Sess.), No. 28, § 3, p. 78; C. & M. Dig., § 4688; Pope's Dig., § 5777; A.S.A. 1947, § 78-1349.

14-386-604. Sale of impounded animals.

If the owner or agent fails to pay the charges and damages within two (2) days after notice, the impounder shall post written or printed notices in three (3) public places in the fencing district, describing the property and fixing a day for its sale at some public place in the district upon a day at least ten (10) days from the date of the notices, and shall sell the property at the time and place mentioned in the notices, at public outcry, to the highest bidder for cash in hand and within legal hours for judicial sales.

History. Acts 1897 (Ex. Sess.), No. 28, § 4, p. 78; C. & M. Dig., § 4689; Pope's Dig., § 5778; A.S.A. 1947, § 78-1350.

14-386-605. Disposition of excess money.

  1. After deducting the charges and damages as ascertained in § 14-386-603, the impounder shall pay the remainder to the treasurer of the fencing district, taking his receipt for it.
  2. The failure to pay the moneys to the treasurer by the impounder or other person claiming to be damaged by the stock shall be deemed theft and punished as such.

History. Acts 1897 (Ex. Sess.), No. 28, § 5, p. 78; C. & M. Dig., § 4690; Pope's Dig., § 5779; A.S.A. 1947, § 78-1351.

14-386-606. Duties of treasurer.

The treasurer of the fencing district shall keep, in the books of the district, an accurate account of all moneys so received by him, with the name of the depositor and the date of the receipt by him, being responsible upon his official bond for them, and shall pay over the moneys to the proper owner of the stock so sold, upon proof of his ownership.

History. Acts 1897 (Ex. Sess.), No. 28, § 6, p. 78; C. & M. Dig., § 4691; Pope's Dig., § 5780; A.S.A. 1947, § 78-1352.

Chapter 387 Stock Law Districts

Subchapter 1 — General Provisions

Effective Dates. Acts 1883, No. 57, § 17: effective on passage.

14-387-101. Payment of expenses.

  1. In no case shall the county be liable for any costs by reason of any county or subdivision availing or attempting to avail itself of this subchapter and subchapter 2 of this chapter.
  2. In all cases the whole expense shall be paid by the petitioners.

History. Acts 1883, No. 57, § 15, p. 81; C. & M. Dig., § 319; Pope's Dig., § 333; A.S.A. 1947, § 78-1427.

14-387-102. Lawful fence.

Whenever this subchapter and subchapter 2 of this chapter become operative in any county or subdivision, any fence within the county or subdivision shall be deemed a lawful fence that is made of post and wire or plank, where the top wire or plank shall be five feet (5') from the ground and the wire or plank sufficiently close to keep in the class of stock embraced within this subchapter or the order of the court made in pursuance of it.

History. Acts 1883, No. 57, § 14, p. 81; C. & M. Dig., § 318; Pope's Dig., § 332; A.S.A. 1947, § 78-1426.

14-387-103. Impounding stock running at large.

  1. If any stock forbidden to run at large under the provisions of this subchapter and subchapter 2 of this chapter shall enter the cultivated lands of another, without his consent, in any county or subdivision in which the provisions of this subchapter and subchapter 2 of this chapter have become operative, the owner, lessee, or person in lawful possession of the lands may impound the stock and detain them until his fees and all damages occasioned by the stock are paid.
  2. Whenever any stock is impounded under the provisions of this section, notice shall be given to the owner, if known, and the owner shall be entitled to their possession upon payment of fees and damages.

History. Acts 1883, No. 57, §§ 9, 10, p. 81; C. & M. Dig., §§ 313, 314; Pope's Dig., §§ 327, 328; A.S.A. 1947, §§ 78-1421, 78-1422.

Case Notes

Construction.

This section must be strictly construed. Busby v. Reid, 138 Ark. 63, 210 S.W. 625 (1919).

14-387-104. Fees for impounding.

Any person impounding stock under the provisions of this subchapter and subchapter 2 of this chapter shall be entitled to the following fees:

  1. Ten cents (10¢) per day per head for hogs;
  2. Ten cents (10¢) per day per head for goats; and
  3. Five cents (5¢) per day per head for sheep.

History. Acts 1883, No. 57, § 11, p. 81; C. & M. Dig., § 315; Pope's Dig., § 329; A.S.A. 1947, § 78-1423.

14-387-105. Assessment of damages.

  1. The damages done by impounded stock may be assessed by any three (3) disinterested householders of the county or subdivision, who shall first take an oath before some officer of the county authorized to administer oaths to view and assess the damages fairly and honestly.
  2. The assessment by the householders shall be final.

History. Acts 1883, No. 57, § 11, p. 81; C. & M. Dig., § 315; Pope's Dig., § 329; A.S.A. 1947, § 78-1423.

14-387-106. Sale of impounded stock generally.

  1. If the owner of impounded stock or his agent, after being notified of the impoundment, shall neglect to pay the fees and damages, the taker-up of the stock may sell them at public auction for cash, after first giving five (5) days' notice of the time, place, and terms of the sale, by:
    1. One (1) posted handbill on the courthouse door of the county; and
    2. A copy of the notice delivered to the owner of the stock, if known.
  2. The taker-up shall:
    1. Apply the proceeds, after deducting expenses of sale, to the satisfaction of his fees and damages; and
    2. Pay the balance to the owner of the stock.

History. Acts 1883, No. 57, § 12, p. 81; C. & M. Dig., § 316; Pope's Dig., § 330; A.S.A. 1947, § 78-1424.

14-387-107. Sale of stock when owner unknown.

  1. If no owner of impounded stock can be found, the taker-up may, after the expiration of five (5) days, make an affidavit before a justice of the peace describing the stock and that the owner is unknown to the affiant, which affidavit shall be delivered immediately by the justice to the clerk of the county court, to be kept in his office for inspection.
    1. After the filing of the affidavit, the taker-up may sell the stock as in cases where the owner is known, except that a copy of the notice posted is not to be delivered.
    2. If any sum remains after satisfying his fees and damages, the taker-up shall report it, under oath, to the clerk and pay the money over to the county treasurer to be paid, received, and disbursed as in the case of strays.

History. Acts 1883, No. 57, § 13, p. 81; C. & M. Dig., § 317; Pope's Dig., § 331; A.S.A. 1947, § 78-1425.

Subchapter 2 — Creation of District — Petition Method

Effective Dates. Acts 1883, No. 57, § 17: effective on passage.

14-387-201. Duty to order no running at large.

Upon the written petition of a majority of the qualified electors of any county bordering upon a navigable stream and having territory in cultivation subject to overflow, or any subdivision of a county consisting of not less than thirty-six (36) square miles, where the subdivision borders upon a navigable stream and contains territory in cultivation subject to overflow, being filed in the county court of the county, requesting an order to prevent the running at large of hogs, sheep, and goats within the county or subdivision, as the case may be, it shall be the duty of the court to make such an order when the petitioners have complied with this subchapter and subchapter 1 of this chapter.

History. Acts 1883, No. 57, § 1, p. 81; C. & M. Dig., § 305; Pope's Dig., § 319; A.S.A. 1947, § 78-1413.

Case Notes

Cited: Holt v. Howard, 206 Ark. 337, 175 S.W.2d 384 (1943).

14-387-202. Filing of petition.

  1. When the qualified electors of any county, or subdivision of a county consisting of not less than thirty-six (36) square miles, desire to avail themselves of the benefits of this subchapter and subchapter 1 of this chapter, they shall file their petition, signed by a majority of the qualified electors of the county or subdivision, in the county court of the county at a regular term of the court.
    1. The petition shall set forth, clearly, whether it is their intention to prevent the running at large of all animals mentioned in § 14-387-201 or only one (1) or more classes of them.
    2. If the petition is from the qualified electors of a subdivision, the subdivision shall be particularly described and its boundaries clearly designated.

History. Acts 1883, No. 57, §§ 2, 3, p. 81; C. & M. Dig., §§ 306, 307; Pope's Dig., §§ 320, 321; A.S.A. 1947, §§ 78-1414, 78-1415.

14-387-203. Deposit for costs, etc.

  1. The county court, after the filing of a petition pursuant to § 14-387-202 shall proceed no further with the matter until the petitioners, or some of them, deposit with the clerk of the court a sufficient amount of money to pay all the costs, fees, and expenses that may arise in making the order.
  2. Under the provisions of this subchapter, the amount so deposited shall be determined by the court, and the clerk's receipt for it shall be filed with the petition.

History. Acts 1883, No. 57, § 4, p. 81; C. & M. Dig., § 308; Pope's Dig., § 322; A.S.A. 1947, § 78-1416.

14-387-204. Notice of filing petition.

    1. After the filing of the petition as provided in § 14-387-202, the county court shall make an order directing the clerk to cause notice to be given immediately of the filing of the petition.
    2. The notice shall specify:
      1. The class of animals it is proposed shall not run at large; and
      2. If, for a subdivision of a county, the territory described in the petition.
    1. The notice shall be published in some newspaper published in the county, if there is one.
      1. If no newspaper is published in the county, the notice shall be posted at the courthouse door and at each voting precinct in the county, if the petition is for a county.
      2. If the petition is for a subdivision, then the notice shall be posted at three (3) of the most public places in the subdivision.

History. Acts 1883, No. 57, §§ 5, 6, p. 81; C. & M. Dig., §§ 309, 310; Pope's Dig., §§ 323, 324; A.S.A. 1947, §§ 78-1417, 78-1418.

Cross References. Publication of notices, § 16-3-101 et seq.

14-387-205. Order prohibiting stock running at large.

    1. At the next regular term of the county court after the filing of a petition under this subchapter, the court shall investigate the matter.
    2. If, on investigation, it appears that a majority of the qualified electors of the county or subdivision, as the case may be, signed the petition and that the notice provided for in § 14-387-204 was given, the court shall make an order prohibiting the running at large of such stock as may be described in the petition in the territory described or in the county, as the case may be, after January 1 after the order is made.
      1. Immediately after the making of the order, the clerk shall cause copies of it to be posted at every voting precinct in the county, if the order is made for the county.
      2. If the order is for a subdivision, then a copy of the order shall be posted in three (3) of the most public places in the subdivision.
    1. After January 1, it shall be unlawful to permit to run at large, within the limits designated, any animal of the class mentioned in the order.

History. Acts 1883, No. 57, §§ 7, 8, p. 81; C. & M. Dig., §§ 311, 312; Pope's Dig., §§ 325, 326; A.S.A. 1947, §§ 78-1419, 78-1420.

14-387-206. Setting aside of order.

    1. Whenever any county or subdivision has availed itself of this subchapter and subchapter 1 of this chapter, it shall be lawful for a majority of the qualified electors of the county or district, as the case may be, to petition the county court to set aside the order prohibiting the stock mentioned from running at large.
    2. The same notice shall be given and proceedings had as provided in this subchapter for obtaining the order.
  1. The court shall set aside the former order if, on investigation, it finds that:
    1. A majority of the qualified electors have petitioned for it; and
    2. The proper notice has been given.
  2. The petitioners shall pay all costs for having the order set aside.

History. Acts 1883, No. 57, § 16, p. 81; C. & M. Dig., § 320; Pope's Dig., § 334; A.S.A. 1947, § 78-1428.

Subchapter 3 — Creation of District — Election Method

Publisher's Notes. Acts 1915, No. 156, §§ 1-4, as amended, were repealed by Acts 1947, No. 368, § 6. The first four sections of the 1947 act (§§ 14-387-30114-387-303, 14-387-305) are similar to the repealed sections. However, Vangilder v. Faulk, 244 Ark. 688, 426 S.W.2d 821 (1968), held that, although Acts 1947, No. 368, § 6, repealed Acts 1915, No. 156, §§ 1-4, the reenactment of substantial portions of the 1915 act by the 1947 act neutralized the repeal and the 1947 act (§§ 14-387-10114-387-306) should be considered as amendatory of the 1915 act (§§ 14-387-70114-387-706).

Effective Dates. Acts 2009, No. 1480, § 117: Apr. 10, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act makes various revisions to Arkansas election laws that are designed to improve the administration of elections and special elections and that these revisions should be implemented as soon as possible so that the citizens of this state may benefit from improved election procedures. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Case Notes

In General.

Acts 1915, No. 156, was not invalid as an attempted delegation of legislative authority. Harrington v. White, 131 Ark. 291, 199 S.W. 92 (1917) (decision under prior law).

Since Acts 1915, No. 156, was local exempting 23 counties, all amendatory acts subsequent to 1926 were void. Johnson v. Simpson, 185 Ark. 1074, 51 S.W.2d 233 (1932) (decision under prior law).

Since § 14-387-703 is the only provision of the law authorizing the annexation of single townships to stock-law district, and since this subject matter is not covered by this subchapter, the legislature did not intend its repeal. Goggin v. Ratchford, 217 Ark. 180, 229 S.W.2d 130 (1950).

Local Initiated Acts.

Where the electors of a particular county had not exercised their option to put into effect the general stock law, an initiated act of the county prohibiting the running at large of livestock was not invalid as in conflict with a general law of the state. Smith v. Plant, 179 Ark. 1024, 19 S.W.2d 1022 (1929) (decision under prior law).

14-387-301. Order for election.

  1. Whenever twenty-five percent (25%) of the qualified electors of three (3) or more townships in any county in this state, as shown by the election returns for Governor at the last general election preceding the date of the petition, shall petition the county court for the privilege of voting on the question of restraining horses, mules, asses, cattle, goats, swine, and sheep, or any two (2) or more of these animals or the male species of them, from running at large, the court shall make an order for an election in the townships to be held at any general or special election for state or county officers.
  2. If petitioners file with their petition proper bond to be approved by the court conditioned to pay all the cost and expense of a special election, the court may call an election in accordance with § 7-11-201 et seq. at any time upon the filing of the petition by giving notice of it as provided by law for general elections if the petition contains twenty-five percent (25%) of the qualified electors residing within each township mentioned in the petition.

History. Acts 1947, No. 368, § 1; A.S.A. 1947, § 78-1401; Acts 2005, No. 2145, § 57; 2007, No. 1049, § 79; 2009, No. 1480, § 97; 2011, No. 778, § 5.

Amendments. The 2009 amendment substituted “§ 7-11-201 et seq.” for “§ 7-5-103(b)” in (b).

The 2011 amendment substituted “If petitioners file” for “If petitioners shall file” in (b).

Case Notes

Court Order.

Stock-law orders of county court, based on petitions making each township the unit instead of making three or more adjoining townships the unit, were void and subject to collateral attack. Fesler v. Eubanks, 143 Ark. 465, 220 S.W. 457 (1920) (decision under prior law).

The invalidity of a county court's order calling for a stock-law election in six townships, one of which was added by a petition not signed by the requisite number of qualified electors, was not cured by a chancery court decree restraining the holding of the election in such township, the chancery court having jurisdiction to restrain the election but not to cancel or amend the county court's order. State v. Phillips, 176 Ark. 1141, 5 S.W.2d 362 (1928) (decision under prior law).

After the jurisdictional requirements of filing the proper petition are met, the ordering of the election by the county court is merely a ministerial act. Goggin v. Ratchford, 217 Ark. 180, 229 S.W.2d 130 (1950).

Where voters filed a legal petition praying for a stock-law election and the court failed to act on the petition and order the election, but the election was advertised, called, and had, the election was not void for want of court order. Goggin v. Ratchford, 217 Ark. 180, 229 S.W.2d 130 (1950).

Notice.

A stock-law election was not invalid for failure to comply with a specific section of the election laws regarding notice where it was apparent that the great body of the electors had actual notice of the election. Whitaker v. Mitchell, 179 Ark. 993, 18 S.W.2d 1026 (1929) (decision under prior law).

Petition.

A petition containing the requisite number of signers for a stock-law election is a jurisdictional prerequisite to the exercise of the county court's jurisdiction to call the election which it cannot do on its own motion. State v. Phillips, 176 Ark. 1141, 5 S.W.2d 362 (1928) (decision under prior law).

Where the evidence showed that the petitions upon which the county court ordered an election had not been signed by 25 percent of the qualified electors in each township as required by this section, the election was invalid. Reamey v. Watt, 240 Ark. 893, 403 S.W.2d 102 (1966).

14-387-302. Form of ballot.

There shall be written or printed on each ballot voted at an election under this subchapter the following sentences:

“FOR restraining (insert the names of the animals mentioned in petition) from running at large .

“AGAINST restraining (insert the names of the animals named in the petition) from running at large

History. Acts 1947, No. 368, § 2; A.S.A. 1947, § 78-1402.

14-387-303. Result of election.

If a majority of the legal voters voting for and against the provisions of this subchapter at the election, whether general or special, shall vote to restrain the running at large of the animals named in the petition, the clerk of the county court shall:

  1. Enter on the record the result of the election;
  2. File the papers and terms of it in his or her office; and
    1. Immediately give notice of the result by publication in some newspaper published in the county and by causing notices to be posted in three (3) public places in each township affected by the election.
    2. If the vote shall be against restraining, publication and notice will not be required.

History. Acts 1947, No. 368, § 3; A.S.A. 1947, § 78-1403.

Case Notes

Majority Vote.

Majority of electors voting in proposed district controlled the creation and organization of the district, and townships where majority voted against formation of stock-law districts were not to be exempted. Sailer v. State, 192 Ark. 514, 92 S.W.2d 382 (1936) (decision under prior law).

Publication and Notice.

The burden was on the person seeking to invalidate the election to prove that publication was not made. Gregory v. Crutchfield, 209 Ark. 774, 192 S.W.2d 534 (1946) (decision under prior law).

Under former statute, the clerk was not required to both publish in a newspaper and to post in public places; either or the other was sufficient. Gregory v. Crutchfield, 209 Ark. 774, 192 S.W.2d 534 (1946) (decision under prior law).

14-387-304. Effect of approval.

When the required percent of the qualified electors and the required number of townships shall have petitioned the county court for the privilege of voting on the question of restraining the animals named in the petition from running at large, when the court shall have called an election as provided by this subchapter, when the majority of the legal electors in the townships shall have voted for enforcing the law restraining such animals from running at large, and when the provisions of this subchapter shall have been adopted as prescribed in it, then it shall be unlawful for any of the animals to be found running at large outside of the enclosure of the owner or keeper of it.

History. Acts 1947, No. 368, § 5; A.S.A. 1947, § 78-1412.

Case Notes

Cited: Wright v. Baxter, 216 Ark. 80, 216 Ark. 880, 227 S.W.2d 967 (1950).

14-387-305. Taking up of strays.

  1. Whenever the provisions of this subchapter shall have been adopted as provided in this subchapter, six (6) months thereafter it shall be unlawful for the owners of any of the animals named in the petition that has been submitted, voted upon, and adopted to permit them to run at large outside of the enclosure of the owner or keeper.
      1. If any of the animals shall be found running at large outside the enclosure of the owner or keeper, it shall be lawful for any person to restrain them immediately.
      2. The person shall, within three (3) days, notify the owner or keeper of the animals, in writing, if known, stating the amount of compensation for feeding and keeping the animals and the damage, if any, claimed, whereupon the owner or keeper of the animals shall pay to the taker-up of the animals a reasonable compensation for taking up, feeding, and caring for them and the actual damages sustained of him or her by them.
    1. If the owner or keeper of the animals is not known, they shall be deemed to be strays and shall be dealt with as provided by law with respect to taking up such property under the stray laws of this state.

History. Acts 1947, No. 368, § 4; A.S.A. 1947, § 78-1404.

Cross References. Stray laws, § 2-38-101 et seq.

Case Notes

Construction.

The right to impound stock running at large depends entirely upon statute conferring that right, and it must be strictly construed. Ermert v. Howe, 205 Ark. 78, 167 S.W.2d 144 (1943) (decision under prior law).

Animals at Large.

Whether the stock got out of an enclosure without the knowledge or permission of the owner is a question for the jury. Favre v. Medlock, 212 Ark. 911, 208 S.W.2d 439 (1948).

Damages.

Where statute making unlawful the running at large of cattle was put into effect by voters of the township, owner was not relieved of payment for damages done by this trespassing cattle simply because they escaped from his enclosure through no fault or lack of diligence on his part. Pool v. Clark, 207 Ark. 635, 182 S.W.2d 217 (1944) (decision under prior law).

Chancery court's finding of landowner's loss because of trespass by another's cattle was sustained. Crumbley v. Guthrie, 207 Ark. 875, 183 S.W.2d 47 (1944) (decision under prior law).

Judicial Notice.

Court should take judicial notice that by vote of the people, the terms of a stock law have been adopted. Crumbley v. Guthrie, 207 Ark. 875, 183 S.W.2d 47 (1944) (decision under prior law).

Owner's Right of Recovery.

Owner of impounded animal was entitled to recover it from purchaser at a sale which failed to comply with statutory provisions, and he was not required to make a tender of costs, damages, and expenses since suit was against purchaser whose title depended upon the validity of the sale. Ermert v. Howe, 205 Ark. 78, 167 S.W.2d 144 (1943) (decision under prior law).

At a sale of an animal under laws authorizing summary seizure and sale of animals running at large, purchaser was charged with notice of all defects of title and such gross irregularities as amount to lack of authority to sell, and it was for the purchaser to establish the validity of his title and show that the owner's title was legally divested. Ermert v. Howe, 205 Ark. 78, 167 S.W.2d 144 (1943) (decision under prior law).

Stray Laws.

The reference in former statute that strays shall be dealt with “under the stray laws of this state” did not violate Ark. Const., art. 5, § 23, prohibiting the extension of laws by reference. Harrington v. White, 131 Ark. 291, 199 S.W. 92 (1917) (decision under prior law).

14-387-306. Exemption of townships from district.

  1. A majority of the legal electors residing within the territory of any one (1) township included in the adoption shall have the right to file their petition with the court within sixty (60) days after the election showing cause why the township should not be included with the other townships where the adoption has been made.
    1. If the petitioners and qualified electors shall show good and valid reason why the territory of the townships should not be governed by the order and shall, before the filing of the petition, give fifteen (15) days' notice, by publication, of their intention of filing and presenting the petition, and shall set forth in the notice their reasons why the township and petitioners should be exempt from the order adopting the act, then the court shall hear the petition, together with any remonstrance to it.
    2. If the court should find that the township and the citizens of it should be exempt from the provisions of the adoption, and that no injury will be done to citizens residing within adjoining townships, then the court shall make an order exempting the township from the adoption.

History. Acts 1947, No. 368, § 5; A.S.A. 1947, § 78-1412.

Case Notes

Applicability.

Acts 1915, No. 156, § 11, as amended by Acts 1919, No. 258, § 2, was applicable only to a situation where the stock law was put into effect by procedure set forth in such acts, and did not apply to a stock law which became effective through initiative petition. Turnage v. Gibson, 211 Ark. 268, 200 S.W.2d 92 (1947) (decision under prior law).

Cited: Wright v. Baxter, 216 Ark. 80, 216 Ark. 880, 227 S.W.2d 967 (1950).

Subchapter 4 — Addition of Townships to District

Effective Dates. Acts 1929, No. 193, § 2: approved Mar. 27, 1929. Emergency clause provided: “In view of the fact that in many sections of the state the fences are destroyed, and the farmers are unable to replace them in time to protect the crops to be grown in 1929, an emergency is hereby declared to exist and this act being necessary for the public peace, health and safety, this act shall take effect and be in force from and after its passage.

14-387-401. Authority and procedure generally.

  1. In all counties in this state where a majority of the area of the county has been created into a stock law district, or where any portion of a county has been created into a stock law district, by an act of the General Assembly prohibiting the running at large of certain designated livestock within a prescribed area and providing penalties for it and the act provides that other townships may become attached to and made a part of the stock law district by a majority petition of qualified electors of their respective townships to the county judge, who shall declare the townships attached to the original territory described in the act, it shall be lawful for any township, or part of a township in the county, whether it is contiguous or adjoining the original stock law district or not, to be made a part of the stock law district and subject to all provisions of the original act, as to the kind of stock running at large in it and the penalties for violations of the original act, upon a majority of the qualified electors residing in the territory to be affected, and named or described in the petition, filing with the county clerk a petition, describing the township, or parts of it, and requesting that the territory described in it be made a part of the original stock law district theretofore created by the General Assembly for parts of the county.
    1. The county court of any such county, upon finding that the petition correctly described the territory or names the townships to be affected and contains a majority of the qualified electors residing in the territory to be affected, shall make an order naming the township and describing the part of any township included, if only a part of a township is to be included, naming the kind of livestock prohibited from running at large in it and declaring the territory described in the order to be a part of the original stock law district of the county and subject to all the provisions and penalties of the original act as fully as though described in the original act of the General Assembly.
      1. The order shall be effective from and after the date of the order.
        1. Notice of the order shall be given by publication of it in some newspaper published in the county.
        2. The costs of the order and publication shall be paid by petitioners.

History. Acts 1929, No. 193, § 1; Pope's Dig., § 339; A.S.A. 1947, § 78-1429.

Case Notes

Applicability.

This section applies only to districts where a majority of the area of the county has been created into stock-law district or to districts created by the legislature. Wright v. Badders, 181 Ark. 1124, 29 S.W.2d 671 (1930); Holt v. Howard, 206 Ark. 337, 175 S.W.2d 384 (1943).

Subchapter 5 — Exemption of Townships in District Including Entire County

Preambles. Acts 1949, No. 204 contained a preamble which read:

“Whereas, there is now in force in several counties in this State laws restraining the running at large of cattle, horses, mules, asses, hogs, sheep and goats within the entire county; and

“Whereas, there are many political townships within such counties where not more than ninety percent (90%) of the lands in such townships are improved or enclosed, and the residents of the such mountainous and hilly sections have been engaged in raising livestock in the open range and making a livelihood therefrom, and such enactment, in such township, causes such inhabitants a great loss and hardship;

“Therefore….”

Effective Dates. Acts 1949, No. 204, § 3: Mar. 1, 1949. Emergency clause provided: “Whereas, many owners of horses, mules, asses, cattle, hogs, sheep and goats, where local stock laws are in force, are now without means to build fences and restrain their livestock now running in the open range, and are not so located where it is possible to buy milk for their children daily without great loss of time in miles of travel, an emergency is found to exist and is hereby declared, and this Act shall take effect after its passage and approval.”

14-387-501. Authority and procedure generally.

  1. In any county in this state where any law has been enacted to restrain the running at large of horses, mules, asses, cattle, hogs, sheep, and goats, or any three (3) of these animals, by initiated local act, or otherwise, which includes the entire county, any political township in which no national or state highway or railroad traverses, and in which not more than fifteen percent (15%) of the lands within the township are improved or enclosed, a majority of the qualified electors of the political township may file, with the county court of the county, a petition showing good cause why the provisions of the local act should not be enforced, and that it would cause the inhabitants of the township great loss on account of being deprived of their ability to raise such livestock on unenclosed lands and the public range.
  2. The electors shall, before presenting the petition to the court, give fifteen (15) days' notice, by publication in some newspaper published in the county, where the act has been adopted, of the date on which the petition will be filed and presented to the court, setting forth in the notice the reasons why the township and petitioners should be exempted from the act, then the court shall hear the petition and any remonstrance that may be filed against it.
  3. If the court shall find, upon the hearing, that the requests of the petitioners to be exempt is reasonable, that not more than fifteen percent (15%) of the lands in the township are improved or enclosed, that the political township is not traversed by any national or state highway or railroads, and that the enforcement of any such local act would cause hardship and loss to the inhabitants of the township, and that it would cause no injury or injustice to the citizens of adjoining townships, then the court is empowered to enter an order exempting the residents of the township from the requirements, provisions, and penalties of such local act.

History. Acts 1949, No. 204, § 1; A.S.A. 1947, § 78-1430.

14-387-502. Effect of exemption.

  1. The livestock mentioned in § 14-387-501 shall be kept under such control and restraint as to prevent them from running at large in any other township in the county which has not been exempted as provided for in this subchapter.
  2. The owners or keepers of all such livestock as may be found running at large in any township not so exempted shall be subject to all the provisions of the act then in force in the county.

History. Acts 1949, No. 204, § 2; A.S.A. 1947, § 78-1431.

Subchapter 6 — Stock Marshals

Effective Dates. Acts 1953, No. 394, § 3: Mar. 28, 1953. Emergency declared.

14-387-601. Provisions cumulative.

This subchapter is cumulative of existing laws and shall not prevent any person from restraining the running at large of animals as provided by law.

History. Acts 1953, No. 394, § 2; A.S.A. 1947, § 78-1433.

14-387-602. Appointment.

The county judges of the respective counties, upon written petition signed by fifteen percent (15%) of the voters of the townships, are authorized and empowered to designate and appoint some competent person as stock marshal in any such townships within the county which have voted to restrain the running at large of livestock in them as provided in § 14-387-301 et seq.

History. Acts 1953, No. 394, § 1; A.S.A. 1947, § 78-1432.

14-387-603. Authority.

    1. Any person appointed stock marshal shall have authority to restrain and impound any animals found running at large outside the enclosures of the owner or keeper of it in any township which has voted to restrain the running at large of such animals, and shall be entitled to a reasonable fee for the taking up, feeding, and keeping of such animals.
    2. The stock marshal, within three (3) days, shall notify, in writing, the owner of the animals, if known, of the taking up of the animals, stating the amount due for the taking up, feeding, and keeping.
    1. The stock marshal shall have a lien upon any such animals found running at large and taken up by him for the taking up, feeding, keeping, and care of them.
        1. If the owner or keeper fails or refuses to pay for the taking up, feeding, keeping, and care of the animals within ten (10) days after the receipt of the written notice, the stock marshal shall sell them for cash, at public auction in the township where the animals were taken up, after first advertising the sale by at least three (3) written notices posted in the township where the animals were taken up.
        2. Any amount received from the sale of any animals in excess of the amount due for the taking up, feeding, keeping, and care of the animals shall be paid to the county treasurer.
      1. If the owner or keeper of the animals is not known, they shall be deemed to be strays and shall be dealt with as provided by § 14-387-107.

History. Acts 1953, No. 394, § 2; A.S.A. 1947, § 78-1433.

Subchapter 7 — Miscellaneous Provisions

Effective Dates. Acts 1921, No. 472, § 2: effective on passage.

Publisher's Notes. Acts 1915, No. 156, §§ 1-4, as amended, were repealed by Acts 1947, No. 368, § 6. The first four sections of the 1947 act (§§ 14-387-30114-387-303, 14-387-305) are similar to the repealed sections. However, Vangilder v. Faulk, 244 Ark. 688, 426 S.W.2d 821 (1968), held that, although Acts 1947, No. 368, § 6, repealed Acts 1915, No. 156, §§ 1-4, the reenactment of substantial portions of the 1915 act by the 1947 act neutralized the repeal and the 1947 act (§§ 14-387-30114-387-306) should be considered as amendatory of the 1915 act (§§ 14-387-70114-387-706).

14-387-701. Certain counties excepted.

Sections 14-387-301 — 14-387-306, and 14-386-701 — 14-386-706 shall not apply to Hot Spring, Montgomery, Sebastian, Sharp, Nevada, Izard, Van Buren, Calhoun, Marion, Howard, Cross, Cleveland, Monroe, Arkansas, St. Francis, Crittenden, Clark, Drew, Desha, Bradley, and Union counties.

History. Acts 1915, No. 156, § 11; 1919, No. 258, § 4; 1919, No. 451, § 1; C. & M. Dig., § 332; Acts 1921, No. 472, § 1; 1923, No. 5, § 1; Pope's Dig., § 347; A.S.A. 1947, § 78-1410.

Case Notes

Columbia County.

Columbia county was not exempted from the provisions of Acts 1915, No. 156 as it existed prior to amendment, because Acts 1919, No. 258, § 3 (repealed by Acts 1947, No. 368, § 6) exempted Columbia county from that act, such exemption applying only to the provisions of the 1919 act. Abney v. Warren, 143 Ark. 572, 219 S.W. 748 (1920).

14-387-702. Other provisions cumulative.

All laws and parts of laws that are in force shall be cumulative with §§ 14-387-30114-387-306, and 14-387-70114-387-706, except where existing laws are in direct conflict with §§ 14-387-30114-387-306, and 14-387-70114-387-706.

History. Acts 1915, No. 156, § 11; 1919, No. 258, § 4; 1919, No. 451, § 1; C. & M. Dig., § 332; Acts 1921, No. 472, § 1; 1923, No. 5, § 1; Pope's Dig., § 347; A.S.A. 1947, § 78-1410.

14-387-703. Adding townships to stock district.

Whenever three (3) or more townships shall have been formed into a unit for the purpose of restraining any stock as enumerated in § 14-387-301 and shall have been perfected in the way and manner as provided in this chapter, then any other township, or any group of townships, that would be a contiguous whole to the unit thus formed, may be attached to, and become a part of, the unit, in the same way and manner as provided for in this chapter in the first instance, by merely stating in the petition, in addition to the other requirements, that the petitioners wish their township attached to the unit, naming the townships in it.

History. Acts 1915, No. 156, § 10; C. & M. Dig., § 330; Pope's Dig., § 345; A.S.A. 1947, § 78-1411.

Case Notes

In General.

Since this section is the only provision of the law authorizing the annexation of single townships to stock-law district, and since this subject matter is not covered by § 14-387-301 et seq., the legislature did not intend its repeal. Goggin v. Ratchford, 217 Ark. 180, 229 S.W.2d 130 (1950).

Applicability.

This section is no authority for the annexation of contiguous territory to stock-law district created under a special act. Wright v. Raymer, 165 Ark. 146, 263 S.W. 385 (1924).

Proceeding in county court for annexation of territory to an existing district organized under Acts 1915, No. 156 is not authorized by § 14-387-401, which is applicable only to stock-law districts created by the legislature. Holt v. Howard, 206 Ark. 337, 175 S.W.2d 384 (1943).

Since this section is part of a special or local act, annexation can be effected only in counties covered by Acts 1915, No. 156, and such annexations can only be made to districts already in existence when § 14-387-301 et seq., was passed. Goggin v. Ratchford, 217 Ark. 180, 229 S.W.2d 130 (1950).

Detachment.

A township which has, on petition, been added to a stock-law district already formed, has no right to be detached and exempted from the operation of the law. Solomon v. Carroll, 175 Ark. 888, 1 S.W.2d 63 (1927).

14-387-704. Fence not required — Exception.

It shall not be necessary for any person to fence against any of the species of animals enumerated in the petition that has been adopted, and it shall be no defense to any action or proceedings brought or had that the party taking up stock did not have his lands enclosed with a lawful fence. However, nothing in this section shall be construed to lessen or interfere with the obligations of the railroads in this state to fence the right-of-way of the railroads as is provided for by law.

History. Acts 1915, No. 156, § 8; C. & M. Dig., § 328; Pope's Dig., § 343; A.S.A. 1947, § 78-1408.

14-387-705. Driving of animals permitted.

Nothing in §§ 14-387-30114-387-306, and 14-387-70114-387-706 shall be construed as to prevent owners or other persons from driving any of the species of animals enumerated in § 14-387-301 from one place to another, or along the public highway, the owners of animals being responsible for all damages that any person may sustain in consequence of the driving of stock.

History. Acts 1915, No. 156, § 9; C. & M. Dig., § 329; Pope's Dig., § 344; A.S.A. 1947, § 78-1409.

14-387-706. Damages and compensation for taking up strays.

  1. If the owner or keeper of the stock restrained and the taker-up or the person damaged by the stock cannot agree on the amount of damage, then either party may apply to any justice of the peace where the taker-up resides for the appointment of three (3) appraisers to assess the damages done, or what would be a reasonable compensation for the taking up, feeding, and keeping of the stock. Thereupon, it shall be the duty of the justice to issue notice to three (3) disinterested householders of the township to appear at such place in the township as he may designate and assess the damages or compensation as required in this section.
    1. The appraisers, or any two (2) of them so notified, shall take an oath that they will fairly and impartially assess the damages or compensation, or both, in the controversy, and they shall make out, sign, and deliver to each party a written statement of their findings as to damages and compensation.
      1. Upon the payment of the damages and compensation and the expenses of the controversy, the owner of the stock shall be entitled to take them away.
        1. If refused, the owner may maintain an action for them as in case of wrongful detention of property.
        2. In any such action, if it be shown to the satisfaction of the court trying the cause that the owner or keeper of the stock had, previous to the appointment of appraisers, tendered to the taker-up of the stock in legal currency of the United States the amount of damages awarded by the appraisers and that the taker-up of the stock refused to accept the tender so made, then the taker-up of the stock shall pay all costs incident to the appraisement made by the appraisers as prescribed in this section.
    1. The justice of the peace, the appraisers, and the witnesses, if any, shall be allowed the same fees as are allowed by law for similar services.
    2. The fees shall be paid by the owner of the stock before he is entitled to take the stock away.

History. Acts 1915, No. 156, §§ 5-7; 1919, No. 258, § 1; C. & M. Dig., §§ 325-327; Pope's Dig., §§ 340-342; A.S.A. 1947, §§ 78-1405 — 78-1407.